STRIDES PHARMA SCIENCE LIMITED — AGM Information 2022

Aug 18, 2022

==> picture [144 x 47] intentionally omitted <==

August 18, 2022

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001

Scrip Code: 532531

The National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051

Scrip Code: STAR

Dear Madam/ Sir,

Sub: Notice of the 31[st] Annual General Meeting and Annual Report for FY 2021-22

This is to inform you that the 31[st] Annual General Meeting (AGM) of the Company is scheduled to be held on Friday, September 9, 2022, at 12:30 hrs IST through Video Conference/ Other Audio-Visual Means.

As required under SEBI Listing Regulations, we are enclosing herewith Notice of the AGM and Annual Report for FY 2021-22 which is being sent through electronic mode to the Members of the Company.

A copy of the same is also available on the Company’s website www.strides.com

This is for your information and records.

Thanks & Regards, For Strides Pharma Science Limited,

Manjula Digitally signed by Manjula R R Date: 2022.08.18 14:38:03 +05'30'

Manjula Ramamurthy Company Secretary

Encl. As above

==> picture [509 x 55] intentionally omitted <==

==> picture [121 x 50] intentionally omitted <==

STRIDES PHARMA SCIENCE LIMITED

CIN: L24230MH1990PLC057062 Regd. Office: 201, ‘Devavrata’, Sector – 17, Vashi, Navi Mumbai – 400 703. Tel No.: +91 22 2789 2924/ 2789 3199 Corp. Office: ‘Strides House’, Bilekahalli, Bannerghatta Road, Bengaluru – 560 076. Tel No.: +91 80 6784 0000/ 6784 0290 Website: www.strides.com; Email: investors@strides.com

Dear Shareholders,

Sub: Invitation to attend the Thirty-First Annual General Meeting of the Company to be held on Friday, September 9, 2022

You are cordially invited to attend the Thirty-First Annual General Meeting (AGM) of the Company scheduled to be held on Friday, September 9, 2022 at 12:30 hrs IST through Video Conferencing (VC)/ Other Audio-Visual Means (OAVM). Notice convening the AGM is enclosed herewith.

To enable ease of participation, please find below key details regarding the meeting:

#	Particulars		Details
1.	Link for live webcast of the AGM & for participation through VC		https://emeetings.kfintech.com/
2.	Link for remote e-voting		https://evoting.kfintech.com/
3.	User Name & Password for VC		Shareholders may attend the AGM through VC by accessing the link https://emeetings.kfintech.com OR by using the remote e-voting credentials. Please refer the instructions of this Notice for further information.
4.	Cut-off date for e-voting		Friday, September 2, 2022
5.	Time period for remote e-voting		Starts from 09:00 hours IST on Monday, September 5, 2022 and; Ends on Thursday, September 8, 2022 at 17:00 hours IST.
6.	Link for Shareholders to temporarily update e-mail address		https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx

Page 1 of 21

==> picture [121 x 50] intentionally omitted <==

7.	Contact details of Registrar & Share Transfer Agent (RTA)	KFin Technologies Limited (formerly known as KFin Technologies Mr. Raju S.V, Dy. Vice President/ Mr. Mohan Kumar A, Manager Toll Free No.: 1800 309 4001 E-mail:einward.ris@kfintech.com;and	Private Limited) evoting@kfintech.com
8.	Helpline number for VC participation and e-voting
9.	Scrutinizer Details	Mr. Binoy Chacko (Membership No. FCS: 4792 and CP: 4221), Partner of M/s. Joseph and Chacko LLP, Company Secretaries, Bengaluru. Email: binoy@jandc.in
10.	Strides’ contact details	Email:investors@strides.com Tel No.: +91 80 6784 0732/ 0734

Best Regards,

For Strides Pharma Science Limited Sd/Manjula Ramamurthy Company Secretary

Date: May 24, 2022 Place: Bengaluru

Page 2 of 21

==> picture [121 x 50] intentionally omitted <==

STRIDES PHARMA SCIENCE LIMITED

CIN: L24230MH1990PLC057062 Regd. Office: 201, ‘Devavrata’, Sector – 17, Vashi, Navi Mumbai – 400 703. Tel No.: +91 22 2789 2924/ 2789 3199 Corp. Office: ‘Strides House’, Bilekahalli, Bannerghatta Road, Bengaluru – 560 076. Tel No.: +91 80 6784 0000/ 6784 0290 Website: www.strides.com; Email: investors@strides.com

NOTICE is hereby given that the Thirty-first Annual General Meeting (AGM) of the Shareholders of the Company will be held on Friday, September 9, 2022, at 12:30 hrs IST through Video Conference (VC)/ Other Audio-Visual Means (OAVM) to transact the following business:

ORDINARY BUSINESS

Item 1: Adoption of Audited Financial Statements for the Financial Year ended March 31, 2022

To receive, consider, approve and adopt:

• a) the Audited Standalone Financial Statements of the Company for the Financial Year ended March 31, 2022, together with the Reports of Board of Directors and Auditors thereon; &

• b) the Audited Consolidated Financial Statements of the Company for the Financial Year ended March 31, 2022, and the Report of Auditors thereon.

Item 2: Re-appointment of Mr. Badree Komandur, retiring director, as an Executive Director

Mr. Badree Komandur retires by rotation and being eligible, offers himself for re-appointment as an Executive Director of the Company.

Relevant details pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations) and Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India is annexed to this Notice.

Item 3: Re-appointment of M/s. B S R & Co. LLP as Statutory Auditors of the Company

It is proposed to re-appoint M/s. B S R & Co. LLP (“BSR”), Chartered Accountants, as Statutory Auditors of the Company for a second term of five years from the conclusion of the 31[st] AGM until the conclusion of the 36[th] AGM of the Company, on such remuneration as may be determined by the Board of Directors of the Company, in consultation with the Audit Committee and the Auditors.

To consider and if thought fit, to pass with or without modification, the following resolution as an Ordinary Resolution :

“RESOLVED that pursuant to the provisions of Section 139, 142 and other applicable provisions of the Companies Act, 2013 and the Rules made thereunder and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), and pursuant to the recommendations of the Audit Committee and Board of Directors, consent of the Shareholders of the Company be and is hereby accorded to re-appoint M/s. B S R & Co. LLP (Firm registration number101248W/W-100022) as Statutory Auditors of the Company for a second term of 5 (five) years commencing from the conclusion of the 31[st] Annual General Meeting (AGM) until the conclusion of the 36[th] AGM of the Company, at such remuneration and reimbursement of out-of-pocket expenses as recommended by the Audit Committee and as may be mutually agreed between the Board of Directors

Page 3 of 21

==> picture [121 x 50] intentionally omitted <==

of the Company and the Statutory Auditors, from time to time.

RESOLVED FURTHER that any Director or Company Secretary of the Company be and are hereby severally authorized to do all such acts, deeds, matters and things and to execute and deliver all such necessary documents for the purpose of giving effect to the aforesaid resolution.”

SPECIAL BUSINESS

Item 4: Remuneration payable to M/s. Rao, Murthy & Associates, Cost Auditors of the Company for the financial year ended March 31, 2022

To consider and if thought fit, to pass with or without modification, the following resolution as an Ordinary Resolution:

“RESOLVED that pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 other applicable provisions of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), M/s. Rao, Murthy & Associates, Cost Accountants (Firm Registration No.: 000065), appointed as Cost Auditors by the Board of Directors to audit the cost records of the Company for the financial year ended March 31, 2022, be paid a remuneration not exceeding Rs. 3.50 Lakhs plus out-of-pocket expenses and applicable taxes.

RESOLVED FURTHER that any Director or Company Secretary of the Company be and are hereby severally authorized to do all such acts, deeds, matters and things and to execute and deliver all such necessary documents for the purpose of giving effect to the aforesaid resolution.”

Place: Bengaluru Date: May 24, 2022

By Order of the Board For Strides Pharma Science Limited Sd/Manjula Ramamurthy Company Secretary

Page 4 of 21

==> picture [121 x 50] intentionally omitted <==

DISCLOSURE FOR ITEM 2 OF THE NOTICE UNDER REGULATION 36 OF THE SEBI LISTING REGULATIONS & SECRETARIAL STANDARD ON GENERAL MEETINGS

Item 2: Re-Appointment of Mr. Badree Komandur, retiring director, as an Executive Director

Relevant details pursuant to Regulation 36(3) of the SEBI Listing Regulations and Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India, is as under:

Name of the Director	Mr. Badree Komandur
DIN	07803242
Age	51 years
Date of first appointment on the Board	May 18, 2017
Brief resume, Qualification(s), Experience & Nature of expertise in specific function	Mr. Badree Komandur is the Executive Director - Finance & Group Chief Financial Officer of the Company and is associated with Strides since February 2010. He holds a degree in Commerce from the University of Madras and is a Member of the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI) and the Institute of Cost and Works Accountants of India (ICWAI). Badree has over 27 years of rich and comprehensive experience in Corporate Finance & Taxation, Treasury & Forex Management, Mergers & Acquisitions, Debt Syndication, Fund Raising, Governance and Investor Relations Management. Prior to joining Strides, Badree had over 15 years of experience working in varied sectors including Information Technology and Engineering. At Strides, Badree is also a Member of the Risk Management Committee.
Terms and conditions of Appointment or Reappointment	Badree was re-appointed as Executive Director – Finance & Group CFO of the Company at the Annual General Meeting held on August 20, 2020 for the second term of three years effective May 18, 2020, on the terms and conditions mentioned therein. Badree retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment as an Executive Director of the Company. Terms of re-appointment including remuneration shall be in line with the Shareholders approval of August 20, 2020.
Details of remuneration sought to be paid

Page 5 of 21

==> picture [121 x 50] intentionally omitted <==

Details of remuneration last drawn	During FY22, as Executive Director of Strides, Badree was paid a remuneration of Rs. 46,047,299/- comprising of:  Fixed Pay of Rs. 38,547,299/-; &  Variable pay of Rs. 7,500,000/- (relating to FY21).
Shareholding in Strides as at date of this Notice including shareholding as a beneficial owner	Direct Shareholding:25,000 equity shares representing 0.0278% of the paid-up equity share capital of the Company. Indirect shareholding:NIL
Relationship with other directors, Managers and Key Managerial Personnel of the Company	None
Number of Board & Committee Meetings attended during the FY22	Board Meetings: 9 out of 9; and Risk Management Committee Meetings: 2 out of 2
Membership/ Chairmanship of the Committees of Strides	Risk Management Committee – Member
Directorship held in other Companies in India as at date of this Notice	NIL
Other Membership/ Chairmanship of Committees of the Boards as at date of this Notice	NIL
Name of the listed entities from which appointee has resigned in the past three years	NIL

Page 6 of 21

==> picture [121 x 50] intentionally omitted <==

EXPLANATORY STATEMENT FOR ITEM 3 AND 4 OF THE NOTICE

(Pursuant to Section 102 of the Companies Act, 2013)

The following explanatory statement sets out all the material facts relating to the business mentioned under Items 3 and 4 of the accompanying Notice:

Item 3: Re-appointment of M/s. B S R & Co. LLP as Statutory Auditors of the Company

M/s. B S R & Co. LLP, Chartered Accountants (BSR), were appointed as Statutory Auditors of the Company at the Annual General Meeting (AGM) held on September 15, 2017 for a term of five years from the conclusion of the 26[th] AGM till the conclusion of the 31[st] AGM of the Company. Accordingly, BSR shall be completing their first term of five years at the forthcoming AGM of the Company.

In terms of Section 139(2) of the Companies Act, 2013, BSR is eligible for re-appointment as Statutory Auditors of the Company for a second term of five consecutive years.

About B S R & Co. LLP

B S R & Co. LLP is a member entity of B S R & Affiliates, a network registered with the Institute of Chartered Accountants of India (ICAI) and holds the ‘Peer Review’ certificate as issued by ICAI. BSR is a multi-disciplinary Audit Firm catering to various clients in diverse sectors viz., FMCG, Hospitality, Banking, IT, Biopharmaceuticals, Chemicals, Cement, Pharmaceuticals, Automotive, etc.

Proposal for Re-appointment

BSR audits other pharma companies and has team who has in-depth knowledge and understanding of the Pharma sector.

During their first term with Strides, they have seamlessly conducted the quarterly limited reviews and annual audit activities and deployed a pool of well qualified and experienced professionals for handling Strides’ audit activities. BSR also coordinates with the component auditors of other group entities in India and Overseas for ensuring timely closure of reviews and audit activities.

Considering the above and after evaluating various factors such as industry experience, competency of audit team, efficiency in conduct of audit, independence etc., the Board of Directors of the Company based on the recommendation of the Audit Committee, at its meeting held on May 24, 2022, proposed the re-appointment of BSR as the Statutory Auditors of the Company, for a second term of five years i.e., from the conclusion of the 31[st] AGM till the conclusion of the 36[th] AGM of the Company to be held in the year 2027, subject to the approval of the Shareholders of the Company.

The Company has received relevant consent and confirmations from BSR in this regard.

Remuneration payable to BSR by the Company and its subsidiaries on a consolidated basis for the financial year ended March 31, 2022 is Rs. 33.96 Million (excluding out-of-pocket expenses and applicable taxes).

For FY23, remuneration of BSR is expected to be at similar levels, with necessary increase based on the scope of work related to the Standalone and Consolidated Financial Statements of the Company and its subsidiaries.

Remuneration of BSR shall be as mutually agreed between the Company and the Auditors, subject to the approval of the Audit Committee and Board of Directors of the Company.

Page 7 of 21

==> picture [121 x 50] intentionally omitted <==

Board recommends passing of the proposed resolution as stated in Item 3 as an Ordinary Resolution and requests Shareholders’ approval for the same.

None of the Directors, Key Managerial Personnel, Promoters or their relatives are in any way concerned or interested, financially or otherwise, in this resolution except to the extent of their shareholding, if any in the Company.

Item 4: Remuneration payable to M/s. Rao, Murthy & Associates, Cost Auditors of the Company for the financial year ended March 31, 2022

Board of Directors of the Company, based on the recommendation of Audit Committee had approved the appointment of M/s. Rao, Murthy & Associates, Cost Accountants, (Firm Registration No.: 000065) as Cost Auditors of the Company for the financial year ended March 31, 2022 at a remuneration not exceeding Rs. 3.50 Lakhs plus out-of-pocket expenses and applicable taxes.

In accordance with the provisions of Section 148 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof) any remuneration payable to Cost Auditors has to be approved/ ratified by the Shareholders of the Company.

Accordingly, Board recommends passing of the proposed resolution as stated in Item 4 as an Ordinary Resolution and requests Shareholders’ approval for the same.

None of the Directors, Key Managerial Personnel, Promoters or their relatives are in any way concerned or interested, financially or otherwise, in this resolution except to the extent of their shareholding, if any in the Company.

Place: Bengaluru Date: May 24, 2022

By Order of the Board For Strides Pharma Science Limited Sd/Manjula Ramamurthy Company Secretary

---

Page 8 of 21

==> picture [121 x 50] intentionally omitted <==

NOTES

1. Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 with respect Items 3 and 4 forms part of the Notice.

Board of Directors of the Company on May 24, 2022, considered the special business under Item 4 as unavoidable and to be transacted at the AGM of the Company.

2. In view of continuing COVID-19 pandemic, the Ministry of Corporate Affairs (MCA), Government of India, vide its General Circular No. 14/ 2020 dated April 8, 2020, General Circular No. 17/ 2020 dated April 13, 2020, General Circular No. 20/ 2020 dated May 05, 2020, General Circular No. 02/2021 dated January 13, 2021, General Circular No. 20/ 2021 dated December 8, 2021, General Circular No. 2/ 2022 dated May 5, 2022 (collectively “ General Circulars ”) issued by the Ministry of Corporate Affairs (the “ MCA ”) and Securities Exchange Board of India (SEBI) vide its circular no. SEBI/ HO/ CFD/ CMD1/ CIR/ P/ 2020/ 79 dated May 12, 2020, circular no. SEBI/ HO/ CFD/ CMD 2/ CIR/ P/ 2021/ 11 dated January 15, 2021, and circular no. SEBI/ HO/ CFD/ CMD2/ CIR/ P/ 2022/ 62 dated May 13, 2022 (collectively “ SEBI Circulars ”) have permitted companies to conduct General Meetings through Video Conference (VC) or Other Audio Visual Means (OAVM), subject to compliance of various conditions mentioned therein.

3. In compliance with the provisions of the Companies Act, 2013 (“Act”), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“ SEBI Listing Regulations ”) and General Circulars and SEBI Circulars, AGM of the Company is being held through VC/ OAVM. Shareholders can attend and participate in the AGM through VC/ OAVM only.

In compliance with the MCA Circulars, Notice of the 31[st] AGM along with the Annual Report for FY22, are being sent only through electronic mode to those Shareholders whose email ids are registered with the Company/ Depositories/ Depository Participants/ RTA. The communication of assent/ dissent of the Shareholders shall only take place through remote e-voting system.

Shareholders may note that the Notice of the AGM shall also be available on the Company’s website www.strides.com and websites of the Stock Exchanges i.e., BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com respectively, and on the website of KFin Technologies Limited (Formerly known as KFin Technologies Private Limited) (“ KFintech/ RTA” ) at https://evoting.kfintech.com.

Shareholders who require print copy of the Annual Report may write to the RTA/ Company at einward.ris@kfintech.com or investors@strides.com.

Deemed venue for the AGM shall be Registered Office of the Company.

Company has appointed M/s. KFin Technologies Limited (Formerly known as KFin Technologies Private Limited), Registrars and Transfer Agents of the Company, to provide VC/ OAVM facility for AGM of the Company.

General instructions for accessing and participating in the AGM through VC/ OAVM Facility and voting through electronic means including remote e-voting is enclosed as Annexure 1.

4. AGM Live Webcast and two-way conference Facility

Pursuant to Regulation 44 of SEBI Listing Regulations and para 3 Clause A (III) of General Circular No. 14/ 2020 dated April 8, 2020 issued by MCA, Government of India, the Company has made arrangements for two-way live webcast of the proceedings of AGM.

Page 9 of 21

==> picture [121 x 50] intentionally omitted <==

Details of the webcast link shall be made available on the website of the Company at www.strides.com.

Facility for joining the AGM through VC/ OAVM shall be open 30 minutes before the scheduled time for commencement of AGM and shall be closed 30 minutes after such scheduled time.

5. In view of AGM being held by VC/ OAVM

• i) physical attendance of Shareholders has been dispensed with;

• ii) the facility for appointment of proxies by the Shareholders shall not be available for the AGM and hence Proxy Form and Attendance Slip are not annexed to this Notice;

• iii) Shareholders attending the AGM through VC shall be counted for the purpose of reckoning quorum under Section 103 of the Act; and

iv) route map for the location of the meeting is also not provided.

6. E-voting

In compliance with the provisions of Section 108 of the Act read with Relevant Rules, Secretarial Standard on General Meetings (“SS-2”), Regulation 44 of the SEBI Listing Regulations and MCA General Circulars, the facility for remote e-voting and e-voting in respect of the businesses to be transacted at the AGM is being provided by the Company through KFintech.

General instructions for accessing and participating in the AGM through VC/ OAVM Facility and voting through electronic means including remote e-voting is enclosed as Annexure 1 .

7. KYC Updation

To prevent fraudulent transactions, Shareholders are advised to exercise due diligence and notify the Company of any change in address or demise of any Shareholder as soon as possible.

Shareholders are also advised to not leave their demat account(s) dormant for long. Periodic statement of holdings should be obtained from the concerned Depository Participant(s) and holdings should be verified from time to time.

Non-Resident Indian Shareholders are requested to inform RTA/ respective Depository participants, immediately of any:

• a) Change in their residential status on return to India for permanent settlement; and

• b) 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.

Furnishing of PAN, KYC details and Nomination by holders of physical securities

SEBI has mandated the submission of the Permanent Account Number (PAN) by every participant in the securities market.

Shareholders holding shares in electronic form are, therefore, requested to submit their PAN to their Depository Participant(s).

Page 10 of 21

==> picture [121 x 50] intentionally omitted <==

Further, SEBI vide their Circular dated November 3, 2021 and December 14, 2021 has mandated furnishing of PAN, email address, mobile number, bank account details and nomination by holders of physical securities.

Effective January 1, 2022, RTA/ Company shall consider any service request such as transfer, transmission, issue of duplicate share certificates, renewal/ exchange of share certificates, consolidation of folios etc., only upon registration of the PAN, Bank details and Nomination.

Freezing of Folios without PAN, KYC details and Nomination

• a. From April 1, 2023 - Folios wherein any one of the said document/ details are not available shall be frozen and such folios shall not be eligible to lodge grievance or avail service request from the RTA and for receipt of dividend in physical mode. However, upon updation of documents/ details as detailed above, services from RTA shall resume.

• b. After December 31, 2025, the frozen folios shall be referred by RTA/ Company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/ or Prevention of Money Laundering Act, 2002.

Shareholders who have not updated their details as above are requested to furnish the documents/ details, as per the table below, to the Registrars & Transfer Agents M/s KFin Technologies Limited (Formerly known as KFin Technologies Private Limited) at their earliest convenience:

#	Particulars	Please furnish details in
1	PAN	Form No. ISR-1
2	Address
3	Email address
4	Mobile Number
5	Demat account details
6	Bank account details
7	Nomination details	Form: SH-13
8	Declaration to opt out nomination	Form: ISR-3

The aforesaid forms can be downloaded from the website of the Company and RTA at: https://www.strides.com/Shareholders_service_request.html and https://ris.kfintech.com/clientservices/isc/default.aspx#isc_download_hrd

You are requested to forward the duly filled in and executed documents along with the related proofs as mentioned in the respective forms to the following address:

KFin Technologies Limited (Formerly known as KFin Technologies Private Limited) , Unit: Strides Pharma Science Limited Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032 E-mail: einward.ris@kfintech.com

8. Transfer of Shares

In terms of the SEBI Listing Regulations, securities of listed companies can only be transferred in dematerialized form with effect from April 1, 2019.

Page 11 of 21

==> picture [121 x 50] intentionally omitted <==

Further, as an ongoing measure to enhance ease of dealing in securities by investors, SEBI vide its Circular of January 25, 2022, has mandated listed companies to issue securities in demat form only while processing service requests such as transfer, transmission, issue of duplicate share certificates, renewal/ exchange of share certificates, consolidation of folios etc.

In terms of the Circular,

1. Claimant/ Securities Holder shall submit their request in Form ISR-4 (hosted on website of Company and RTA) along with requisite documents and details;

2. RTA shall verify the request and documents submitted and thereafter issue a Letter of Confirmation (LoC) in lieu of physical securities certificates to the Claimant/ Securities Holder within 30 days of receipt of such request;

3. LoC shall be valid for a period of 120 days from the date of its issuance;

4. Claimant/ Securities Holder to make a request to the Depository Participant for dematerializing the said securities;

5. In case the Claimant/ Securities Holder fails to submit the demat request within the prescribed period, such shares shall be credited to the Suspense Escrow Demat Account of the Company.

9. Email Registration

Shareholders who have not registered their email IDs with the Depository Participants, are requested to register their email IDs with their Depository Participants in respect of shares held in electronic form and in respect of shares held in physical form, are requested to submit their request with their valid e- mail address to RTA in Form ISR-1 (form available on the website of the Company and RTA) to einward.ris@kfintech.com or investors@strides.com for receiving all the communications including notices, letters etc., in electronic mode from the Company.

10. Unclaimed Dividends and Transfer of Dividend and Shares to Investor Education & Protection Fund (IEPF)

In accordance with the provisions of Sections 124 and 125 of Companies Act, 2013 and Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends not encashed/ claimed within seven years from the date of declaration are to be transferred to the Investor Education and Protection Fund (IEPF) Authority.

The IEPF Rules mandate companies to transfer shares of Shareholders whose dividends remain unpaid/ unclaimed for a continuous period of seven years to the demat account of IEPF Authority. Shareholders whose dividend/ shares are transferred to the IEPF Authority can claim their shares/ dividend from the Authority.

In accordance with the IEPF Rules, Company had sent notices to all the Shareholders whose shares were due to be transferred to the IEPF Authority and simultaneously published newspaper advertisements.

In terms of the provisions of IEPF Rules, Rs. 1,07,64,053/- of unpaid/ unclaimed dividends and 6,440 shares were transferred during the FY22 to IEPF.

The Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on March 31, 2021, on the Company’s website.

Page 12 of 21

==> picture [121 x 50] intentionally omitted <==

11. Inspection of Documents

All documents referred to in the accompanying Notice of the AGM and the Explanatory Statement shall be available for inspection electronically. Shareholders seeking to inspect the above documents can send an email to investors@strides.com.

In addition, following documents shall also be available for inspection electronically:

• Certificate from the Secretarial Auditor relating to the Company’s Stock Options under SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

• Register of Directors and Key Managerial Personnel and their shareholding, and the Register of Contracts or Arrangements in which the Directors are interested, maintained under the Companies Act, 2013.

Members seeking to inspect the above documents can send an email to investors@strides.com

12. Scrutinizer for the AGM

Mr. Binoy Chacko (Membership No. FCS: 4792 and CP: 4221), Partner of M/s. Joseph and Chacko LLP, Company Secretaries, Bengaluru, has been appointed as the Scrutinizer to scrutinize the remote e-voting process and e-voting at the AGM in a fair and transparent manner.

Scrutinizer shall submit his report to the Chairman or the Company Secretary of the Company after the completion of scrutiny. Results of the Meeting along with Scrutinizer Report shall be declared by the Chairman or the Company Secretary of the Company on or before Tuesday, September 13, 2022 and shall also be placed on the Company’s website and on the website of KFintech at https://evoting.kfintech.com.

---

Page 13 of 21

Annexure 1

==> picture [121 x 50] intentionally omitted <==

General instructions for accessing and participating in the AGM through Video Conference/ Other Audio-Visual Means (VC/ OAVM) Facility and voting through electronic means including remote e-voting

I PROCEDURE FOR REMOTE E-VOTING

• 1) In compliance with the provisions of Section 108 of the Act, read with Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended from time to time, Regulation 44 of the SEBI Listing Regulations and in terms of SEBI circular no. SEBI/ HO/ CFD/ CMD/ CIR/ P/ 2020/ 242 dated December 9, 2020 in relation to e-voting Facility provided by Listed Entities, Shareholders are provided with the facility to cast their vote electronically, through the e-voting services provided by KFin Technologies Limited (Formerly, KFin Technologies Private Limited) (KFintech), on all the resolutions set forth in this Notice.

Instructions for e-voting is provided in Note 5 below.

• 2) Remote e-voting period commences on Monday, September 5, 2022 at 09:00 hrs IST and ends on Thursday, September 8, 2022 at 17:00 hrs IST.

Voting rights of the Shareholders shall be in proportion to their shares in the paid-up equity share capital of the Company as on the cut-off date, Friday, September 2, 2022 .

• 3) Pursuant to SEBI circular no. SEBI/ HO/ CFD/ CMD/ CIR/ P/ 2020/ 242 dated December 9, 2020 on “e-voting facility provided by Listed Companies”, e-voting process has been enabled for all the individual demat account holders , by way of single login credential, through their demat accounts/ websites of Depositories/ Depository Participants in order to increase the efficiency of the voting process. Shareholders are advised to update their mobile number and e-mail ID with their Depository Participants to access e-voting facility.

Individual Shareholders holding shares of the Company in physical form may obtain the login ID and password by sending a request at evoting@kfintech.com or einward.ris@kfintech.com.

However, if they are already registered with KFintech for remote e-voting, then they can use their existing User ID and password for casting the vote.

Non-individual Shareholders who are already registered with KFintech for remote e-voting, can use their existing User ID and password for casting their vote.

• 4) Cut-off date for dispatch of AGM Notice to the Shareholders is Friday, August 12, 2022.

In case of Individual Shareholders holding securities in demat mode and who acquires shares of the Company and becomes a shareholder of the Company after sending of the Notice and holding shares as of the cut-off date may follow steps mentioned in Item 5.1 below under “Login method for remote e-voting and joining virtual meetings for Individual Shareholders holding securities in demat mode.”

Non-individual Shareholders , who acquires shares of the Company and becomes a shareholder after sending of the Notice, may obtain the login ID and password by sending a request at einward.ris@kfintech.com or evoting@kfintech.com.

Page 14 of 21

==> picture [121 x 50] intentionally omitted <==

However, if they are already registered with KFintech for remote e-voting, then they can use their existing User ID and password for casting the vote.

• 5) The details of the process and manner for remote e-voting and e-AGM are explained herein below:

Step 1: Access to Depositories e-voting system in case of individual Shareholders holding shares in demat mode.

Step 2: Access to KFintech e-voting system in case of Shareholders holding shares in physical form and non-individual Shareholders in demat mode.

Step 3: Access to join virtual meetings (e-AGM) of the Company on KFintech system to participate e-AGM and vote at the AGM.

5.1) Details on Step 1 are mentioned below:

Login method for remote e-voting for Individual Shareholders holding securities in demat mode.

Individual Shareholders holding securities in demat mode with NSDL

1.	Users already registered for IDeAS facility (i) Visit URL: https://eservices.nsdl.com (ii) Click on the “Beneficial Owner” icon under “Login” under ‘IDeAS’ section. (iii) On the new page, enter User ID and Password. Post successful authentication, click on “Access to e-voting” (iv) Click on company name or e-voting service provider and you will be re-directed to e-voting service provider website for casting the vote during the remote e- voting period.
2.	Users not registered for IDeAS e-Services (i) To register click on link : https://eservices.nsdl.com (ii) Select “Register Online for IDeAS” or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp (iii) Proceed with completing the required fields. (iv) Follow steps given in point no. 1 above.
3.	Users may alternatively vote by directly accessing the e-voting website of NSDL (i) Open URL:https://www.evoting.nsdl.com/ (ii) Click on the icon “Login” which is available under ‘Shareholder/ Member’ section.

Page 15 of 21

==> picture [121 x 50] intentionally omitted <==

(iii) A new screen will open. You will have to enter your User ID (i.e. your sixteendigit demat account number held with NSDL), Password / OTP and a Verification Code as shown on the screen.

• (iv) Post successful authentication, you will be requested to select the name of the company and the e-voting Service Provider name, i.e., KFintech.

(v) On successful selection, you will be redirected to KFintech e-voting page for casting your vote during the remote e-voting period.

Individual Shareholders holding securities in demat mode with CDSL

1.	Users who have opted for Easi / Easiest (i) Visit URL:https://web.cdslindia.com/myeasi/home/login\ or URL:www.cdslindia.com (ii) Click on New System Myeasi (iii) Login with your registered user id and password. (iv) The user will see the e-voting Menu. The Menu will have links of ESP i.e. KFintech e-voting portal. (v) Click on e-voting service provider name to cast your vote.
2.	Users not registered for Easi/Easiest (i) Option to register is available at https://web.cdslindia.com/myeasi/Registration/EasiRegistration (ii) Proceed with completing the required fields. (iii) Follow the steps given in point no. 1 above.
3.	Users may alternatively vote, by directly accessing the e-voting website of CDSL (i) Visit URL:www.cdslindia.com (ii) Provide your demat Account Number and PAN No. (iii) System will authenticate user by sending OTP on registered Mobile & Email as recorded in the demat Account. (iv) After successful authentication, user will be provided links for the respective ESP, i.ee., KFintech where the e- Voting is in progress.

Page 16 of 21

==> picture [121 x 50] intentionally omitted <==

Individual Shareholders login through their demat accounts/ Website of Depository Participant

• (i) Shareholders may login using the login credentials of the demat account through their Depository Participants registered with NSDL /CDSL for e-voting facility.

• (ii) Once logged-in, Shareholders will be able to see e-voting option.

On clicking e-voting option, Shareholders will be redirected to NSDL / CDSL Depository site after successful authentication, wherein Shareholders can see e-voting feature.

• (iii) Click on options available against company name or e-voting service provider – KFintech and Shareholders will be redirected to e-voting website of KFintech for casting their vote during the remote e-voting period without any further authentication.

Important note

Shareholders who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot Password option available at above mentioned websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.

Login type		Helpdesk details
Securities held with NSDL		Please contact NSDL helpdesk by sending a request at evoting@nsdl.co.in;OR Call at toll free no.: 1800 1020 990and1800 22 44 30
Securities held with CDSL		Please contact CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia.com;OR Call at022-23058738or022-23058542-43

5.2) Details on Step 2 are mentioned below:

Login method for Shareholders holding shares in physical form and non-individual Shareholders in demat mode

• (A) Shareholders whose email IDs are registered with the Company/ Depository Participants (s), will receive an email from KFintech which will include details of E-Voting Event Number (EVEN), USER ID and password. They will have to follow the following process:

• i) Launch internet browser by typing the URL: https://evoting.kfintech.com/

• ii) Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN (E-Voting Event Number) xxxx, followed by folio number. In case of Demat account, User ID will be your DP ID and Client ID. However, if you are already registered with KFintech for e-voting, you can use your existing User ID and password for casting the vote.

Page 17 of 21

==> picture [121 x 50] intentionally omitted <==

• iii) After entering these details appropriately, click on “LOGIN”.

• iv) You will now reach password change Menu wherein you are required to mandatorily change your password. The new password shall comprise of minimum 8 characters with at least one upper case (A- Z), one lower case (a-z), one numeric value (0-9) and a special character (@,#,$, etc.,). The system will prompt you to change your password and update your contact details like mobile number, email ID etc. on first login. You may also enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly recommended that you do not share your password with any other person and that you take utmost care to keep your password confidential.

• v) You need to login again with the new credentials.

• vi) On successful login, the system will prompt you to select the “EVEN” i.e., “STRIDES PHARMA SCIENCE LIMITED - AGM” and click on “Submit”

• vii) On the voting page, enter the number of shares (which represents the number of votes) as on the Cut-off Date under “FOR/ AGAINST” or alternatively, you may partially enter any number in “FOR” and partially “AGAINST” but the total number in “FOR/ AGAINST” taken together shall not exceed your total shareholding as mentioned herein above. You may also choose the option ABSTAIN. If the Shareholders does not indicate either “FOR” or “AGAINST” it will be treated as “ABSTAIN” and the shares held will not be counted under either head.

• viii) Shareholders holding multiple folios/ demat accounts shall choose the voting process separately for each folio/ demat accounts.

• ix) Voting has to be done for each item of the notice separately. In case you do not desire to cast your vote on any specific item, it will be treated as abstained.

• x) You may then cast your vote by selecting an appropriate option and click on “Submit”.

• xi) A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have voted on the resolution (s), you will not be allowed to modify your vote. During the voting period, Shareholders can login any number of times till they have voted on the Resolution(s).

• xii) Corporate/ Institutional Shareholders (i.e. other than Individuals, HUF, NRI etc.) are also required to send scanned certified true copy (PDF Format) of the Board Resolution/ Authority Letter etc., authorizing its representative to attend the AGM through VC/ OAVM on its behalf and to cast its vote through remote e-voting. Together with attested specimen signature(s) of the duly authorised representative(s), to the Scrutinizer at email id: binoy@jandc.in with a copy marked to evoting@kfintech.com.

  • The scanned image of the above-mentioned documents should be in the naming format “Corporate Name_EVEN No.”

• (B) Shareholders whose email IDs are not registered with the Company/ Depository Participants(s), and consequently the Notice of AGM and e-voting instructions cannot be serviced, will have to follow the following process:

Page 18 of 21

==> picture [121 x 50] intentionally omitted <==

• i) Shareholders who have not registered their email address and in consequence, the Notice of AGM and e-voting instructions cannot be serviced, may temporarily get their email address and mobile number provided with KFintech, by accessing the link: https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx

Shareholders are requested to follow the process as guided to capture the email address and mobile number for sending the soft copy of the notice and e-voting instructions along with the User ID and Password. In case of any queries, Shareholders may write to einward.ris@kfintech.com.

• ii) Alternatively, Shareholders may send an e-mail request at the email id einward.ris@kfintech.com along with scanned copy of the signed copy of the request letter providing the email address, mobile number, self-attested PAN copy and Client Master copy in case of electronic folio and copy of share certificate in case of physical folio for sending the Notice of AGM and the e-voting instructions.

• iii) After receiving the e-voting instructions, please follow all steps above to cast your vote by electronic means.

5.3) Details on Step 3 are mentioned below:

Instructions for attending the AGM of the Company through VC/ OAVM and e-voting during the meeting.

• i) Shareholders shall be provided with a facility to attend the AGM through VC/ OAVM platform provided by KFintech. Shareholders may access the same at https://emeetings.kfintech.com/ by using the e-voting login credentials provided in the email received from the Company/ KFintech.

After logging in, click on the Video Conference tab and select the EVEN of the Company.

Click on the video symbol and accept the meeting etiquettes to join the meeting. Please note that the Shareholders 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 above.

• ii) Facility for joining the AGM through VC/ OAVM will be open 30 minutes before the scheduled time for commencement of AGM and shall be closed 30 minutes after such scheduled time.

• iii) Shareholders are encouraged to join the Meeting through Laptops/ Desktops with Google Chrome (preferred browser), Safari, Internet Explorer, Microsoft Edge, Mozilla Firefox 22.

• iv) Shareholders will be required to grant access to the webcam to enable VC/ OAVM. Further, Shareholders 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.

• v) Shareholders who have not cast their vote through remote e-voting shall be eligible to cast their vote through e-voting system available during the AGM. E-voting during the AGM is integrated with the VC/ OAVM platform. The Shareholders may click on the voting icon displayed on the screen to cast their votes.

Page 19 of 21

==> picture [121 x 50] intentionally omitted <==

vi) A shareholder can opt for only single mode of voting i.e., through remote e-voting or e-voting at the AGM.

If a shareholder cast votes by both modes, then voting done through remote e-voting shall prevail and voting at the AGM shall be treated as invalid.

• vii) Facility of joining the AGM through VC/ OAVM shall be available for at-least 1,000 Shareholders on first come first served basis.

• viii) However, the above restriction shall not be applicable to Shareholders holding 2% or more shareholding, Promoters, Institutional Investors, Directors, Key Managerial Personnel(s), the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors, Scrutinizers etc.

• ix) Institutional Shareholders are encouraged to attend and vote at the AGM through VC/ OAVM.

II OTHER INSTRUCTIONS

1) Speaker Registration

Shareholders who wish to speak during the meeting may register themselves as speakers for the AGM to express their views. They can visit https://emeetings.kfintech.com and login through the user id and password provided in the mail received from Kfintech.

On successful login, select ‘Speaker Registration’ which will be open from Monday, September 5, 2022 upto Wednesday, September 7, 2022.

Shareholders shall be provided a ‘queue number’ before the meeting. The Company reserves the right to restrict the speakers at the AGM to only those Shareholders who have registered themselves, depending on the availability of time for the AGM.

2) Post your Question

Shareholders who wish to post their questions prior to the meeting can do the same by visiting https://emeetings.kfintech.com.

Please login through the user id and password provided in the mail received from Kfintech.

On successful login, select ‘Post Your Question’ option.

• 3) In case of any query and/ or grievance, in respect of voting by electronic means, Shareholders may refer to the Help & Frequently Asked Questions (FAQs) and e-voting user manual available at the ‘Download’ section of https://evoting.kfintech.com or may contact to Mr. Raju S.V, Deputy Vice President/ Mr. Mohan Kumar A, Manager of KFin Technologies Limited, Selenium Building, Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032 or Email at einward.ris@kfintech.com or evoting@kfintech.com or call KFintech’s toll free No. 1-800-309-4001 for any further clarifications.

• 4) Only bonafide Shareholders of the Company whose names appear on the Register of Shareholders, will be permitted to attend the meeting through VC/ OAVM.

Page 20 of 21

==> picture [121 x 50] intentionally omitted <==

The Company reserves its right to take all necessary steps as may be deemed necessary to restrict non-Shareholders from attending the meeting.

• 5) Shareholders whose names appear in the Register of Shareholders/ list of Beneficial Owners as on Friday, September 2, 2022, being the cut-off date, are entitled to vote on the Resolutions set forth in this Notice.

In case of Joint Holders attending the AGM, only such Joint Holder who is named first in the order of names will be entitled to vote.

A person who is not a shareholder as on the cut-off date should treat this Notice for information purposes only.

Once the vote on a Resolution(s) is cast by the shareholder, the shareholder shall not be allowed to change it subsequently.

• 6) In case a person has become a Member of the Company after dispatch of AGM Notice but on or before the cut-off date for E-voting, he/ she may obtain the User ID and Password in the manner as mentioned below:

If the mobile number of the member is registered against Folio No./ DP ID Client ID, the member may send SMS: MYEPWD E-Voting Event Number + Folio No. or DP ID Client ID to 9212993399

Example for NSDL:

MYEPWD IN12345612345678

Example for CDSL:

MYEPWD 1402345612345678

Example for Physical:

MYEPWD XXXX1234567890

If e-mail address or mobile number of the member is registered against Folio No./ DP ID Client ID, then on the home page of https://evoting.kfintech.com /, the member may click “Forgot Password” and enter Folio No. or DP ID Client ID and PAN to generate a password.

Members who may require any technical assistance or support before or during the AGM are requested to contact KFintech at toll free number 1-800-309-4001 or write to them at evoting@kfintech.com.

• 7) Shareholders are requested to apply for consolidation of folios, in case their holdings are maintained in multiple folios.

---

Page 21 of 21

==> picture [72 x 72] intentionally omitted <==

==> picture [153 x 37] intentionally omitted <==

Strides Pharma Science Limited Annual Report 2021-22

==> picture [334 x 347] intentionally omitted <==

==> picture [37 x 358] intentionally omitted <==

Moving ahead with conviction

==> picture [37 x 167] intentionally omitted <==

==> picture [38 x 131] intentionally omitted <==

==> picture [37 x 129] intentionally omitted <==

==> picture [38 x 96] intentionally omitted <==

==> picture [38 x 61] intentionally omitted <==

==> picture [37 x 26] intentionally omitted <==

Non-financial highlights

Financial highlights

₹30,946 Million 12,000 tonnes Revenue CO2 emission reduced by purchasing solar power

₹43 Million EBITDA

₹24.03 Million CSR expenditure

Contents

Corporate Overview

Statutory Reports

2 Management Discussion and Analysis 38 4 Board’s Report 47 6 Corporate Governance Report 72 Business Responsibility Report 95 8 Financial Statements 10 Consolidated Financials 106 Standalone Financials 215 12 Equity history of the Company 302 14

About us Business model Geographic footprint

Performance Overview

Chairman and MD’s message CFO’s review

Growth Enablers

Strategic priorities Scale and portfolio Consistent innovation Advanced technologies Quality and compliance

18 20 22

Moving ahead with conviction

For faster recovery in the US, we have been de-risking the business from its acute-only strategy to a well-diversified player. In other regulated markets (ORM), including Europe, Australia, and other parts of the world, we aim to continue the growth momentum by focusing on new customer acquisitions and expanding into new geographies through strategic partnerships and portfolio expansion. Over the years, we have steadily increased our wallet share in emerging markets. We will continue to strengthen our presence in these regions through our cost leadership and selective portfolio expansion.

At Strides, there have been many learnings derived from a muted performance in FY 2021-22. Building on these perspectives, we implemented several course correction measures and are on track for a full recovery in FY 2022-23. We identified areas of concern and increased our focus on strengthening our fundamentals to face future challenges and a dynamic external environment.

While focusing on business growth, we are committed to creating sustainable value for all our stakeholders. Together, we are striding ahead with greater confidence in our ability to bounce back, make sustainable progress and usher a brighter future for the Company.

Sustainability at Strides

Environment 24 Social 26 Governance 34

Corporate information

36

Strides Pharma Science Limited

About us

Catering to diverse pharmaceutical needs

Over the last three decades, we have evolved into a leading global pharmaceutical company, manufacturing niche generic formulations in various dosage forms catering to a wide customer base across regulated and emerging markets.

Our products are available in a wide range of dosage forms, including Tablets, Soft Gelatin Capsules, Hard Capsules, Sachets, Liquids, Nasal Spray, Topicals, and Controlled Substances. Our people strengthen our mission to deliver high compliance and quality. Over the years, we have invested in continuous research and development and infrastructure to lay a solid foundation for the future.

==> picture [76 x 22] intentionally omitted <==

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

Revenue share
by regions
----- End of picture text -----

Business verticals

Emerging markets

Regulated markets

==> picture [402 x 260] intentionally omitted <==

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

Regulated markets Emerging markets
• Presence across the US, European • Focused markets of Africa with a
Union, UK, and South Africa portfolio of branded generics
• Strategic supplier in Australia to the • Catering to donor-funded
largest generic company, Arrotex programmes
under a preferred supply agreement
• One dedicated facility in Kenya
• Seven dedicated facilities
• WHO Pre-qualified Manufacturing
facility in Nairobi, Kenya
74% 26%
FY 2021-22 36% 38% FY 2021-22 10% 16%
80% 20%
FY 2020-21 32% 48% FY 2020-21 8% 12%
US Other regulated Institutional Africa
markets (ORMs)
----- End of picture text -----

Vision

To be the leading Indian pharma multinational with a reputation for the highest quality and integrity.

Mission

With a differentiated portfolio focused on attaining leadership, we will provide an unparalleled opportunity for our people and value creation opportunity for our stakeholders.

==> picture [374 x 81] intentionally omitted <==

==> picture [280 x 308] intentionally omitted <==

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

Annual Report 2021-22 | 03
----- End of picture text -----

02 |

Strides Pharma Science Limited

Business model

Generating sustainable value

At Strides, we focus on enhancing business growth while maximising the value we create for our stakeholders, making the best use of available resources and adapting our strategy in response to the macroeconomic prevailing.

~~Resources~~

Financial capital

We intend to continue creating sustainable value through efficient capital allocation

I 69,759 Million I 23,833 Million I 13,335 Million Balance sheet size Equity capital Net debt

Manufacturing assets

We have world-class manufacturing assets located in India [Bengaluru (two), Puducherry and Chennai], the US, Singapore, Italy, and Kenya.

8 5 Manufacturing plants US FDA-approved across 4 continents plants

Filing and approvals

Proactive filings for regulated and emerging markets with a consistent track record of approvals

Paperless

operations

Robust platforms for Product Lifecycle Management from initiation to filing track record of approvals

Strong compliance

Best-in-class, technology-led compliance

Global coverage

Fungibility of development dossiers across targeted markets

~~Value created for stakeholders~~

Shareholders and investors

We are committed to delivering competitive, profitable and sustainable returns

Employees

We constantly strive towards providing equal opportunities, ensuring capability building, training, and providing a safe work environment to all our employees.

Patients and end users

We have built strong go-to-market capabilities through our own front-end across key markets as we are committed to improving the lives of patients.

Communities

Development of intellectual property

Our strong expertise in Research and Development (R&D) is one of our key driving forces. We have built a large portfolio for our global market through best-in-class R&D capabilities in formulations, combined with knowledge of the regulatory environment.

274 GLOBAL R&D CENTRE Cumulative ANDAs filed IN INDIA

Human resources

Our talent pool is one of our most important assets. Our strong technical acumen and scientific capability are results of their collective efforts. This helps us deliver high compliance and quality.

4,200+

Integrated go-to-market approach

Diversified formats

Speed to market

Oral solids, Oral liquids, Topicals – liquids, creams and ointments, nasals, soft gels, sachets, and modified release dosage formats

Right first-time filings for faster approvals and go-to-market

Portfolio selection

Focus on difficult-to-develop and differentiated products

Scale and Consistent portfolio innovation Business enablers Information Quality and technologies compliance

Improving the lives of people is integral to our philosophy. We continue to bring change to people’s lives in and around our plant locations through our community interventions. As of the end of FY 2021-22, we have reached 12+ villages through the implementation of our various social development programmes.

Planet

We are focused on reducing our environmental footprint by implementing robust processes and following best practices in waste management, energy efficiency and climate change.

Global workforce

Annual Report 2021-22 | 05

04 |

Strides Pharma Science Limited

Geographic footprint

Fortifying presence across markets

Our extensive global footprint enables us to deliver products to 100+ countries. We are now focusing on strengthening our presence in existing markets with new product launches from the approved portfolio while also expanding into new regions in regulated and emerging markets.

100+ 8 Countries where State-of-the-art we operate manufacturing facilities

Approvals

US Food and Drug Administration Brazilian Health Surveillance ¿ ² (US FDA) Agency (ANVISA) UK Medicines and Healthcare Pharmaceuticals and Medical © Ã products Regulatory Agency Devices Agency, Japan (PMDA) (MHRA) Health Sciences Authority, � Ù World Health Organization (WHO) Singapore (HSA) Therapeutic Goods Administration, è Australia (TGA)

Manufacturing facilities

Our world-class manufacturing facilities are highly automated, resulting in greater compliance and consistent product quality:

New York, United States ¿ Nairobi, Kenya Ù Regulated Emerging 06 |

==> picture [56 x 135] intentionally omitted <==

==> picture [37 x 123] intentionally omitted <==

Milan, Italy Ã

==> picture [399 x 305] intentionally omitted <==

¿ Ã Ù è ² Bengaluru, India (1) è Bengaluru, India (2) Chennai, India ¿ Puducherry, India ¿ Ã è ² ©

Singapore ¿ è �

Annual Report 2021-22 | 07

Strides Pharma Science Limited

Chairman and MD’s Message

Focused on restoring growth

==> picture [384 x 358] intentionally omitted <==

Despite a difficult year, we have been seeing green shoots from Q4 FY 2022. As the Company’s founder and promoter, I acknowledge that we couldn’t deliver to our potential. It is simple to rationalise the challenges of the business environment, however accepting responsibility, fixing inadequacies, charting a new course, and moving forward are most important.

I am excited to return to Strides in an executive role, and we are committed to restoring the Company to its former health. We are working towards strengthening our fundamentals and developing strategies in response to the changing pharmaceutical landscape.

As we gear up for a faster recovery in FY 2022-23, we have devised a clear strategy that focuses on our global product supply. We implemented a number of capability-building programmes to help us improve our performance. Furthermore, we have established distinct strategic priorities for each key market.

Dear Shareholders,

organisation to stay resilient and focused on a sharp bounce back to cushion the business and add more value with our offerings.

I begin with the hope that this letter finds you and your loved ones at the top of your health and spirits. In every way, the global community, as well as businesses, have waded through a sea of change during the last two years. With a sinister Covid wave re-emerging in the country at the beginning of the year, widespread supply disruptions, commodity price rises, and the Russia-Ukraine conflict deepening, FY 2021-22 was a challenging year for several sectors, and the state of affairs was no different for the pharmaceutical industry and for Strides. That said, we have made exemplary efforts as an

The US remains a key focus market

Making sound decisions

We have seen improvement across our businesses since Q4 FY 2022, including the recovery of our US business. We are progressing further by integrating Chestnut Ridge operations in the US, which will help us achieve our target of over $250 Million in revenue from US operations in FY 2022-23. Given that we have over 150 products approved, we should be able to see sequential growth in the US, giving us room to grow the business from

We witnessed unusual price erosion and volume drops in the US, leading to a significant contraction in our gross margins. The other regulated markets delivered tepid growth due to Covid-related disruptions. Our Emerging Markets business witnessed growth as the region was not significantly impacted by the challenges peculiar to the regulated markets.

While the operating environment continues to evolve and is ambiguous, we remain optimistic and confident about delivering significant value to our stakeholders in the coming years.

Strides over the years. I reassure you that we will continue to uphold our core values of integrity, collaboration, and efficiency while creating sustainable value for all stakeholders. I am excited about the journey ahead, with the Board’s guidance and the advice and collaboration of my management colleagues, employees, partners, customers, and all of our stakeholders.

business growth. In Africa, we are focusing on scaling up our business by expanding our geographic footprint in the region and ensuring better penetration of existing markets through portfolio expansion.

there. We have plans to launch around 20 products per year from this fiscal. Our new domain additions, which include controlled substances, hormones, and nasal sprays, will help accelerate portfolio differentiation, thereby driving growth.

Road ahead

Scaling up ORMs

While the operating environment continues to evolve and is ambiguous, we remain optimistic and confident about delivering significant value to our stakeholders in the coming years. Warm regards We have made several changes Arun to our businesses, focusing on growth, improving cash flows, and debt reduction. In addition, the focus will be on efficient inventory management, improving capacity utilisation, and optimal capital allocation, thereby reducing under-recoveries.

Other regulated markets or ORM is an important part of our growth strategy, fuelled by our frontend in key markets and IP-led B2B partnerships in Europe, Australia, and other parts of the world. In these markets, our R&D investments will fast-track growth opportunities for the Rx and OTC portfolios, as several new products will be launched in FY 2022-23.

Market and portfolio expansion in emerging markets

We will also optimise our manufacturing network for better outcomes and aggressively focus on cost and debt reduction. We plan to reduce our gross debt by more than `1,000 crores in FY 2022-23, targeting Net Debt to EBITDA below 3x.

Our emerging market business includes African and institutional or access market verticals. The access market vertical has a relatively lower margin, but it is critical to reducing under-recoveries at our manufacturing sites, given the volumes. Our cost leadership and selective product portfolio expansion will drive institutional

Finally, I would like to thank everyone who has supported

Annual Report 2021-22 | 09

08 |

Strides Pharma Science Limited

CFO’s review

Charting a new course

Consistency and sustainability will be our mantra as we address issues of the present, past and future simultaneously. The conviction is very high at this point of time as we continue to work tirelessly to rebuild the company.

Dear Shareholders,

At the beginning of the year, I highlighted that market behaviour continues to be very challenging, with price and supply chain disruptions adding to downswing risks.

FY 2021-22 has not met our expectations in terms of performance across internal and external parameters, with price erosions, bloated cost structures, and long Cash to Cash (C2C) cycles resulting in negative operating leverage/cash flows. Significant negative operating cash flows resulted in the ballooning of debt and a downgrade in credit rating by ICRA. We adopted several liquidity measures, but the nosedive in performance resulted

in poor ratios on the balance sheet. For the first time, we reported an operating PAT loss. While the reasons can be attributed to many factors, we will be better prepared in the future for challenges to come.

We have taken several corrective actions, expected to reflect in our results H2 of FY 2022-23 onwards. This includes measures on PEG (Profitability - Efficiency - Growth). Seamless execution/ superior governance will enable it. Consistency and sustainability will be the focus and will pave the way for debt reduction and cash flow generation. I would like to dwell on a few of the targets.

From a revenue standpoint, we have set ourselves the US revenue target of US$250 Million driven by several new launches. We have initiated many cost management programmes to gain cost leadership in key molecules and improve the gross margins. On the workforce cost front, we are focusing on right-sizing the company and variable pay programme to drive accountability. From an operational cost point of view, we are resetting the entire cost base by reducing logistics costs, enhancing governance and tightening control on costs. All this will lead to the focus on absolute EBITDA growth and steady buildup. The green shoots of all our actions are visible as we get into the new year with promise.

we continue to work tirelessly to rebuild the company. Long-term growth and profitability will be our focus going forward.

• Improve all metrics of profitability/efficiency/growth, including superior ROCE by Q4 FY 2023

To sum up, the key priorities are as follows for the next year:

• Daily governance and review cadence is being strengthened to avoid surprises

• Engage actively with all investors and restore confidence through better demonstration of performance

I thank all the internal and

• external stakeholders for reposing faith in our Company and look forward to continued support.

• We are institutionalising all the important processes implementing strong controls

• Focus on launch of new products from approved ANDAs and get back to historical gross margins Warm regards Badree

• Cost management – Revisit all costs and get back to profitability

• Reset or exit some of the low • Balance sheet strengthening - margin P&Ls, which do not Light balance sheet from positively impact our margins FY 2022-23

• Liquidity challenges need to Consistency and sustainability be addressed during the year. will be our mantra as we address Once growth returns, superior the issues of past and present, and operating leverage and working prepare ourselves for the future, capital efficiencies are the focus simultaneously. The conviction is areas very high at this point of time as

Annual Report 2021-22 | 11

10 |

Strides Pharma Science Limited

Strategic priorities

Roadmap for accelerated recovery

Our newly formulated

three-year strategic road map called REACH, has been in play since last year, which enables Global Product Supply (GPS) to act as a key driver for our growth and add value to the stakeholder experience.

REACH stands for Respect for all human beings and our environment, Empowerment of our teams, Accountability that we all take, Customer focus, and Health of our patients, which embodies our long-term goals and vision based on our ICE values. Improving performance sustainably requires a clear purpose and articulated strategy linked to performance targets and capability-building objectives. Through REACH, we have already launched various capability-building programmes to move up the 45-degree zone with a dual focus on performance and capability.

GPS Pillars Quality & Enabling Cost Technology Environment, Regulatory Growth Leadership Leadership Health & Safety Compliance

==> picture [806 x 511] intentionally omitted <==

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

12 |
----- End of picture text -----

Developing leaders

An 18-month journey spread across five modules designed specifically for plant managers to enable their development as strong site leaders through action learning. We have completed two modules, and all plant heads have drafted their own action plan to outline the next course of action across plants. The programme aims to equip plant managers with various tools, with the first two modules focusing on business and financial acumen as well as strategy development.

Focus on operational efficiency

We have a focused operational excellence programme to improve plant efficiency and reliability while also developing our own Strides Production System. The pilot programme in our KRSG facility reduced throughput time to 50% of what it was at the start of the programme and change-over time to less than half of what it was. More importantly, it brought a shift in mindset, with shop floor operators thinking and acting in terms of minutes rather than shifts.

Strategy cascading

Using our 4-D (Direction, Dialogue, Deliver, and Develop) toolbox, we have created an interactive engagement series to cascade our overall strategy and goals down to the shop floor. We held more than 20 workshops last year, engaging in discussions on overall GPS goals, outcomes, and measurements. The response has been incredible, and it will be used to shape this year’s cascading of our recovery strategy.

Annual Report 2021-22 | 13

Strides Pharma Science Limited

Scale and portfolio

Broadening our customer base

As a global generic pharmaceutical company, we focus on expanding our portfolio and entering new geographies to reach more customers. We have achieved global scale while improving operational efficiencies and maintaining momentum in product launches across our core markets.

Key product approvals during FY 2021-22

Application

Product

An oral medication used for the treatment of high-risk adults with mild to Molnupriavir moderate COVID-19 Oseltamivir An oral medication used for the treatment of high-risk adults with mild to Phosphate moderate COVID-19

For the treatment of acute, uncomplicated influenza A and B in patients Oseltamivir two weeks of age and older who have been symptomatic for no more Phosphate than 48 hours. This will be also used for the treatment of prophylaxis of influenza A and B in patients of one year and older

Amantadine For the treatment of infection caused by various strains of influenza A virus. Hydrochloride This is also indicated in the treatment of parkinsonism and drug-induced Softgel Capsules extrapyramidal reactions

Used for the treatment and prevention of gout. It reduces inflammation which Oseltamivir causes pain, swelling and other symptoms of gout. Colchicine tablets are Phosphate indicated in adults and children four years or older for treatment of familial Mediterranean fever (FMF).

Stelis – An integrated global biopharmaceutical CDMO

formats. Stelis is poised to be among the leading biologics CDMO players in the world due to its scale and capacity. Its world-class cGMP manufacturing facilities in Bengaluru, India, have proven expertise in microbial, mammalian, and other technology platforms, enabling it to provide high-quality customer services.

Stelis began its journey as a Strides subsidiary and have since evolved into a Global biopharmaceutical contract development and manufacturing organisation (CDMO).

Stelis provides the full range of services from cell line technology transfer to clinical and commercial manufacturing, including the ability to convert drug substance into stable formulations with fill and finish

CDMO division

Product division

Through this division, Stelis provides a complete spectrum of services from cell line technology transfer to clinical and commercial manufacturing. Stelis operates three cutting-edge facilities with 900,000 square feet of Process Development (PD) and manufacturing space for mammalian, microbial, and other modalities.

Biolexis, the product division of Stelis, is developing a portfolio of leading products with low-cost, efficient processes. With its deep technical expertise, Biolexis is forming strong partnerships to commercialise high-quality and affordable products. This positions us to capitalise on emerging opportunities.

Stelis business model

• The first part of the CDMO contract typically includes the technology transfer, process development, process scale, and execution of Performance Qualification (PPQ) batches.

Manufacturing Services Agreements (MSA)

• Includes the base work required to secure the regulatory approval and, consequently, contract for manufacturing

• Typical revenue is $1-2m for drug products and $4-5m for drug substance.

• The second part of the CDMO contract includes the value of the business, secured through the commercial supplies of products developed for the partner under the MSA.

Commercial Sales Agreement(CSA)

• Typically, the duration of CSA would be 3-5 years and is secured by capacity commitment ensuring annuity of revenues.

• As more MSAs translate into CSAs, Stelis could scale up its business significantly, resulting in high profitability with no significant cost increase.

Annual Report 2021-22 | 15

14 |

Strides Pharma Science Limited

Scale and portfolio

FY 2021-22 updates for CDMO division

• The CDMO business of Stelis Biopharma delivered H 1.321.27 Million in revenues through MSA. Our MSAs in FY 2021-22 will drive a secured commercial services agreement (CSA) of H 6,762 Million starting FY 2023-24

• We received significant new orders for the drug product facility with continued traction for cartridges, high-speed vial fill-finish, and lyophilised vials.

• In 2022, the Company was audited by EMA, and in H1CY2022, it had inspections scheduled for USFDA and TGA, among others.

• Revenue performance was impacted by high

• unused facility costs as the operating cost included the cost of the new unit 3 facility, which currently does not generate commercial revenues.

• The Company reported a negative EBITDA, adjusting for the unabsorbed costs (Drug Substance block and unit 3 facility); else, it would have delivered a strong EBITDA performance.

FY 2021-22 updates for products division Biosimilar pipeline

• STLP001 (PTH) is nearing European Medicine Agency (EMA) approval as Stelis completes the facility inspection (EUGMP), which was one of the prerequisites for acceptance. The approval is expected within 2022, and Stelis has already partnered/licensed this product to different national champions across 20 countries.

• Insulin programmes continue to progress according to plan as Stelis readies itself for a phase 3 study for Insulin Glargine in 2022

• Development on track for the other pre-clinical programmes

In-licensed AmbiVax-CTM opportunity

• AmbiVax-CTM is a SARS-CoV-2-Fc fusion protein vaccine developed by Akston Biosciences, United States.

• The vaccine has been exclusively licensed to Stelis/Biolexis for 140+ global countries, including India, South-East Asia, LATAM, GCC, and Africa. Stability studies conducted have demonstrated thermostability at room temperature (High Temperature stable, no cold chain requirements)

• The vaccine was undergoing Emergency Use Authorisation (EUA) determining clinical trials in India. An interim analysis of this data shows no significant safety issues and a 91% seroconversion rate at Day 56.

• Volunteers in the bridging study had antibody titers that persisted at statistically significant high levels through six months, with serum taken from them showing protection against variants of concern.

• The results are under submission for a prime vaccine in India

Update on Sputnik Light Vaccine

• Last year, Stelis completed the technology transfer of the Sputnik Light vaccine from the Russian Gamaleya National Center of Epidemiology and Microbiology (Gamaleya), the IP holder of the vaccine.

• In November 2021, Stelis received its first order of 50 million doses of the Sputnik light vaccine to be exported to Russia.

• Against the 50 million doses to be shipped, Stelis has produced ~23 million doses retained as inventory with a long shelf life.

• Considering the geopolitical challenges regarding exports to Russia, the management continues to discuss with the Russian Direct Investment Fund (RDIF) to initiate exports to Russia and other markets where the vaccine could be exported.

==> picture [366 x 117] intentionally omitted <==

Annual Report 2021-22 | 17

16 |

Strides Pharma Science Limited

Consistent innovation

Innovation-led growth

At Strides, we are driven by research and development expertise and an innovation mindset that propel our ability to address emerging needs. This strength is reflected in our ability to successfully create our niche and differentiated product portfolio across dosage and technology platforms, supported by strong regulatory expertise.

Improving R&D infrastructure and project management processes.

We strengthened our digital and IT infrastructure during the year by integrating the product lifecycle management (PLM) software with instruments to enable data storage and analysis. These processes have enabled paperless operations in our laboratories.

We have enhanced our project management process by incorporating stage gate reviews and governance to ensure timely portfolio delivery. In new product development during FY 2021-22, we focused on difficult-to-make generics, enriching our basket of differentiated products and ensuring portfolio maximisation, wherein existing products were leveraged for other geographies with minimum efforts.

Road ahead

Going forward, we are targeting 20+ new launches per year across different geographies. Our lean structure will facilitate this and enable minimal R&D spend with significant productivity improvement. We will focus on consolidating our presence by developing limited competition products, leveraging our existing product portfolio to other geographies. Additionally, we will aim to enhance our existing source security and manufacturing robustness.

On the R&D front, our efforts are focused on accelerating access to safe, affordable and innovative medicines that serve patients worldwide.

We have capabilities across multiple dosage forms and have fostered development partnerships that complement our organic capability. Our expertise lies in potent compound development, novel drug delivery systems for solid orals [modified release tablets, powder for oral solution/suspension (PFOS) and capsules], oral liquids, nasal sprays, soft gelatin capsules, and ointment and creams for both regulated and emerging markets. Our product selection for development is focused on niche products characterised by complex formulations and technology across diverse therapeutic segments.

In FY 2021-22, we focused our product development efforts in niche dosage areas and targeted filings to limited competition opportunities. During the year, we received approval for 6 ANDAs and filed for 5 more. We have invested `1,000 Million in various innovation and development activities in FY 2021-22.

R&D dashboard

274 249 Cumulative Approved ANDA filings* ANDAs

*Filings, including recently acquired portfolio from Chestnut Ridge

Annual Report 2021-22 | 19

18 |

Strides Pharma Science Limited

Advanced technologies

Accelerating digital transformation

Technology is a mainstay of the Strides business. During the year, we increased our focus on technology adoption considering the challenges posed by the pandemic to optimise our processes, increase efficiency, and become more agile and resilient.

Digital manufacturing

The e-logbook kickstarted at the beginning of ‘Path2Digital,’ is now being rolled out across plants and functions. The benefits of achieving 100% Right First Time (RTF) are undeniably significant. Even though adoption was difficult at first, this is now a pull factor for manufacturing staff.

The Manufacturing Execution Process (MES), which has gained traction over the last two years, was put in place to improve efficiency. The objective is to make it efficient before scaling it up to the point where MES is used to manufacture most product types in our flagship plant.

Continued focus on cybersecurity

During the pandemic, the pharmaceutical and healthcare industries were among the main targets for cyber attackers, and they remain so today. As we move towards the digital, we focus more on strengthening our cybersecurity capabilities. Our ecosystem is fully integrated with industry-leading cyber security solutions. Aside from having tools and systems, we also focused on employee awareness and judgment regarding cyber security across the organisation. Cyber security training has been made mandatory for the entire workforce. Phishing simulations have improved employees’ ability to differentiate between genuine and malicious emails or links.

Moving towards the paperless lab

Across our manufacturing plants, analytical raw data sheets for semi-finished and finished goods are completely digital. Electronic lab notes (ELN) are commonly used in laboratories. The majority of logbooks in the quality control labs have been digitalised. A few more artifacts will be converted to digital this year, moving us closer to paperless labs.

Optimising supply chain

Mastering the virtual audit

During the pandemic, there were We were among India’s first shortages of medicines, vaccines, companies to use smart glasses and other healthcare consumables for virtual auditing. As virtual because many pharmaceutical auditing necessitates additional companies faced major supply skills, we trained key employees, chain challenges. We plan to including plant quality personnel, develop a digital control tower to to improve our virtual audit provide the supply chain with true setup. Regulatory and client digital fluency. Consequently, we auditors have praised the efforts will be able to perform accurate made in this regard at various demand forecasting, supply manufacturing plants. planning, and optimal inventory management.

Tech integrations at the newly acquired facility

In this era, one of the big challenges in the case of any M&A is technology synergies and amalgamation of different technology platforms. Last year with the acquisition of the Chestnut Ridge plant in the USA, we faced a similar challenge. Technology integration was done in three phases – Lift and Shift, Stabilise, and Enhance. While enhancement will continue to happen over a period of time, the technology operation has considerably smoothened.

Annual Report 2021-22 | 21

20 |

Strides Pharma Science Limited

Quality and compliance

Elevating quality benchmarks

Quality benchmarks and regulatory compliance remain our critical focus as the landscape continues to evolve in our core markets. To this end, we have automated our manufacturing facilities to a large extent to achieve greater accuracy, precision and global quality standards.

Ensuring high quality

We have established an agenda for people, processes, products, and technology to reinforce quality excellence across the organisation. We closely monitor the SOPs in place to ensure consistent meeting of our quality culture objectives. During FY 2021-22, we undertook the following initiatives:

• Continued to maintain our track record of regulatory approvals

• Engaged with external consultants for QMS assessment and improvements to strengthen systems and processes for greater maturity and compliance

• Rolled out ‘quality fabric’ programmes in our facilities, consisting of attributes such as proactiveness, responsiveness, and all-time compliance meticulously designed into the programme through people, products, processes, and facilities

• Increased corporate quality oversight on our global manufacturing sites and international business centres

• Undertook many efficiencies improvement programmes in manufacturing and laboratory, which significantly improved our overall cycle time

• Took initiatives to improve customer satisfaction through improvements in manufacturing and packaging lines

==> picture [365 x 238] intentionally omitted <==

• Expanded our serialisation project beyond the US and European regions to facilities that supply drug products to various other regions

• Introduced a comprehensive corporate process for the assessment on elemental impurity and nitrosamine impurities

• Completed the risk assessment for all applicable products, which helped us identify risks and take proper mitigation measures to safeguard product quality

Annual Report 2021-22 | 23

22 |

Strides Pharma Science Limited

Environment

Ensuring responsible business practices

Our sustainability approach goes beyond compliance requirements, and we work towards bringing down the negative impact of our operations on the ecosystem. We are driven by a passion for solving unmet patient needs across core markets by developing affordable and complex or specialty generics in a sustainable manner.

We aim to achieve net-zero by implementing measures to lower energy consumption, increase the use of renewable energy, reduce our carbon footprint, recycle wastewater, minimise potable water consumption, and focus on waste management, among others. We conduct regular internal and external audits to ensure compliance.

Environment management systems

ISO 14001:2015 is an internationally agreed standard that sets out the requirements for an environmental management system. It helps organisations improve their environmental performance through more efficient use of resources and waste reduction, gaining a competitive advantage and the trust of stakeholders. Strides believes that ISO14001 is a management tool to improve environmental performance. Of our plants in India, 2 are already ISO 14001:2015 certified by NQA, and in the coming years, there are plans to certify all the manufacturing sites to ISO 14001:2015 standards.

Energy consumption and renewable energy

We understand how important efficient electricity usage is, and we are moving towards more sustainable forms of energy. We have invested in rooftop solar panels. Currently, we have an installed capacity of 340 KWp as cleaner sources of electricity generation are pivotal in our fight against climate change. We generated 3,01,654 units from the solar panels saving around 214 tonnes of carbon in FY 2021-22 alone while enabling the reduction of 12,000 tonnes of CO2 by utilising 17 million units from buying green energy from solar power generators. We have plans to further reduce fossil fuel consumption and our carbon footprint by investing 1,900 KWHp from solar energy across our various sites.

Water and waste management

Water management

We have implemented a system to recycle wastewater and increase the water table around our plant sites through various methods, including rainwater harvesting ponds. We strive towards conserving as much water as possible through recycling and reusing the water we use.

Key interventions in FY 2021-22

• 1,00,903 KL of wastewater was treated by Wastewater Treatment Plants (WWTP) to reuse it for garden/lawn/utilities inside plant premises across all Indian sites

• 21,060 KL of water was recycled from steam condensate and reused for steam generation at KRSG and Puducherry

• 16,138 KL rainwater was collected and recharged by us to improve the groundwater level in and around the plant across sites

Operational waste

We use the finest quality raw materials and implement a precautionary approach to minimise waste/rejected batches to create safe, efficient, and affordable medicines while adhering to the highest compliance standards. We ensure the segregation of ‘hazardous’ and ‘non-hazardous’ wastes at the source and store them separately. We verify that third-party entities who treat the waste are authorised by regulatory agencies and audit their facilities regularly to ensure compliance with all waste treatment requirements. The waste storage areas are also audited for compliance with storage requirements.

Paper usage

We aspire to reach 100% digitisation across our sites and product portfolios in a few years. Our new initiative – e-Logbooks, will help strengthen our manufacturing operations, HR systems, and paperless R&D operations. We are minimising our paper usage through this and other initiatives by transitioning to digital platforms, reducing our paper consumption. In FY 2021-22, we converted many analog logbooks into digital logbooks.

Our flagship (KRSG) facility in Bengaluru, India

==> picture [305 x 206] intentionally omitted <==

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

Annual Report 2021-22 | 25
----- End of picture text -----

24 |

Strides Pharma Science Limited

Social – People

Nurturing a diversified and talented workforce

At Strides, we recognise that our employees are the driving force behind our growth and success. Our vision is to create a working environment that promotes their well-being while ensuring that every employee is treated with dignity, respect, and equality.

With a global team of 4,000+ employees (including temporary), we operate in a diverse and harmonious workplace with an open and transparent culture. We are dedicated to delivering a secure, productive, and flexible environment for our employees and providing them with unrivalled chances for personal and professional development.

2,647 372 Permanent Permanent women employees employees

Health and safety

At Strides, we prioritise employee health and safety to ensure a conducive workplace for our people. Our employee wellness initiatives include flexi-time for exercise, medical insurance, flexible work hours/work from home (for specific roles that can be performed remotely), maternal and paternal leave, and an employee wellness programme called ‘We Care.’ We also follow a wellness calendar.

We conduct regular safety training and mock drills to ensure that employees are adequately aware of contingency steps. Our health and safety approach includes:

• Safe working systems

• Use of personal protective equipment

• Emergency preparedness

==> picture [227 x 139] intentionally omitted <==

Covid-19 care

As a response to the pandemic, we undertook several initiatives to support our people:

• Provided financial support to secure honourable living for families of deceased employees due to Covid-19

• Facilitated in-house doctors for tele-consultation of affected employees and their families

• Maintained a coordinated approach among all site HRs and admin team to tackle any case related to Covid-19

• Provided vaccination reimbursement

1,559 Temporary/Contractual employees

• Operationalised a Covid Task Force, which meets on a weekly basis to monitor the dynamic situation and take necessary steps to ensure employee health and safety

Annual Report 2021-22 | 27

26 |

Strides Pharma Science Limited

Social – People

==> picture [242 x 177] intentionally omitted <==

Employee engagement

We also ensure the well-being of our employees through active engagement. We have several two-way communication platforms for employees to express themselves, ask questions, and learn more about the organisation. We recognise the employees’ union for pursuing the interests of its members while keeping an eye on overall business expectations. We currently have a management-recognised employee association representing ~20% of the workforce.

Seek App

Open House Meeting

Amber App

This is for bringing in greater awareness and engagement around quality. Through SEEK the employees are introduced to the concept and issues around quality. It provides an interactive platform to express views and opinions.

This is a two-way communication channel where the common concerns and issues among the employees are discussed. The employees can raise their concerns, give suggestions and express their grievances.

Amber was onboarded as an AI tool to understand employee sentiment and reach out to employees at various tenure milestones. It also gives data of disengaged employees.

Learning and development

Strides values and behaviors

L&D has been instrumental in driving the ICE values and behaviour immersion programme for leaders, managers, and employees across locations to raise awareness, relate to the business, and influence behaviour. The emphasis on embedding the values and behaviours included large-format employee engagement programmes as well as trainings. Under the auspices of the B.I.G Challenge, L&D used the SEEK tool to run campaigns, quizzes, and competitions to raise awareness. The programme witnessed 1,800 enthusiastic employees participating and was concluded with an awards ceremony.

With the pandemic compelling us to transition to remote working and adapt to a new normal that brought all planned learnings to a halt, we adopted newer digital methodologies to keep the learning momentum going. All physical learning events were virtually converted to short-burst learning content and delivery style to match the need as part of our mission to adopt digital transformation. With employees returning to work, the L&D team provided both in-person classroom trainings and virtual trainings for those who are still working remotely.

Skill development

==> picture [242 x 143] intentionally omitted <==

Strides Continuous Learning Programme (CLP)

It is an ongoing initiative that aims to reinforce our values, identify skill gaps, strengthen fundamental skills, and improve personal capabilities. The programme modules are digitally enabled by converting them into e-learning short burst modules of ~1 hour each to adapt to changing needs, improve mass audience scalability, and provide self-paced, anytime, anywhere access. This provided all employees with a new-age and quick learning experience through mobile learning at the click of a button.

Supervisory development programme

This was a specialised curriculum designed and developed for self-managed teams at the Chandapura unit to raise participants’ awareness of the role of supervisors in organisations. The programme’s objective is to prepare them to manage and engage team associates/members in a changing environment. To provide them with a platform to develop supervisory skills for people management.

Ignite - Manager Essentials Programme

While the organisation was on the right track with strong execution plans, great talent, inspiring leaders, and well-defined processes, it was critical to examine the missing track. Investing in our managers’ capability development has become a top priority in the organisation’s capability roadmap. A well-structured and well-thought-out design with a blended learning approach that includes a mix of online learning modalities as well as live facilitated sessions to promote self- and reflective learning among managers. This initiative was piloted among 43 managers at our R&D centre, with the goal of creating engaged and high-performing teams. This course is divided into three tracks: Foundation, Intermediate, and Advanced, with each track consisting of short-burst engaging modules that will be implemented in FY 2022-23.

PACE (Performance & Capability Enhancement)

PACE is our business skills suite, which includes key skills such as time management, planning and prioritisation, giving and receiving feedback, productivity hacks, interpersonal skills, MS Office tools, professional email writing skills, setting stretch goals, and six thinking hats. PACE is designed as a short, intense 2.5-hour programme that focuses on skill development through role plays, case studies, and discussions. These offerings are part of the monthly training calendar and are open to selfnomination and attendance by all employees. PACE is delivered through in-person and virtual classroom sessions.

Talent management

At Strides, we emphasise growth through continuous learning to help employees progress from individual contributors to team leaders, and then to senior leadership positions within the organisation. We select leaders who lead with ideas, have the necessary knowledge, are passionate about what they do, and excel at execution. All of our talent management programmes are geared to developing

this skill while also preparing employees to manage organisational growth.

Thus, to ensure the building of a resilient and efficient organisation in dynamic markets following the pandemic, we worked to identify critical roles and ensure robust talent management for those roles. Our talent management strategy is derived based on many factors mainly:

• Current talent pool

• Department-wise and role-wise proof of concepts

• Future business plans and value-based analysis of roles

• Recommendations from leaders on developing their teams

The organisation is committed to develop its talent through multiple programmes, including continuous learning programme, pathway programme and future leader programme. We strive to do the best to keep our employees happy and motivated through our rewards and recognition system, which is crucial for organisational success. Some of our recognition programmes include:

Strides recognition programme

V&B Champion (Individual Award)

For displaying ICE Values, Strides Behaviours and Quality Culture

Shooting Star (Individual Award)

For Creating Business Impact

Dream Team (Team Award)

Team that delivers the business impact by getting the WHAT & HOW right!

We periodically renew our HR strategies to enhance productivity and better engage with a diverse workforce across geographies. We equip our employees with opportunities to learn and apply the business concepts in day-to-day practice, thus enriching the quality of delivery.

Employee grievances

We follow the best international practices, which ensure the freedom of association, prohibition of child labour, protection of indigenous rights and prohibition of forced and compulsory labour. In FY 2021-22, we did not receive any complaint related to child labour, forced labour, involuntary labour, or discriminatory employment.

Annual Report 2021-22 | 29

28 |

Strides Pharma Science Limited

Social – Communities

Impacting lives for a better society

Our community development programme are an integral part of our sustainability strategy. Beyond compliance, we strive to create long-term value for communities by helping improve the standards of health, education, and employability.

Our CSR goals are aligned to UN SDGs

End poverty in all its form and everywhere

Ensure Healthcare and well-being for all at all ages

Quality education for all

Ensure availability and sustainable management of water and sanitation for all

==> picture [243 x 177] intentionally omitted <==

Healthcare

Arogyadhama –

State-of-the-art Specialty Health Center

This is a unique multi-specialty clinic in the rural setting of Suragajakkanahalli panchayat, which pioneers preventive, promotional, and curative services. Over the years, Arogyadhama has served over 7,700 patients and also offers specialist services such as ophthalmology, gynaecology, paediatrics, dental treatments, pharmacy, and day care.

Milestones of FY 2021-22

• Conducted leprosy survey in 10 villages covering 1,200 families

• Organised non-communicable disease camps in 5 villages, where 256 people were screened and administered regular medication to diabetic and hyper-tensive patients

• Conducted National Tuberculosis Control programme across 11 villages

• Arranged for well women camps – awareness on personal hygiene and health camp, which was much appreciated and through which 340 women benefitted

• Conducted derma camp for the green house workers, through which 70 people benefitted

• Organised HINI awareness camp across 9 villages covering 2,800 people

• Held immunisation drive for children, touching the lives of 48 children

• Collaborated with government PHC Haragadde for polio vaccine drive in 11 villages, covering 1,800 kids

• Relaunched school health programme across 15 schools, covering 980 students

• Supported the malnutrition in children camp at Chandapura and provided multivitamins to 45 children

• Extended a Covid vaccination centre where 1,546 people have been vaccinated so far

• Ran Covid vaccination camp across 11 villages in coordination with Haragadde PHC, with 9,100 people being vaccinated

• Undertook regular Covid survey across 10 villages in collaboration with Government PHC – no positive cases found in the last 6 months

• Built awareness on social distancing, personal hygiene and Covid appropriate behaviours in 12 villages

Annual Report 2021-22 | 31

30 |

Strides Pharma Science Limited

Social – Communities

==> picture [242 x 177] intentionally omitted <==

Atmospheric water generator

We discovered an alternative water source in the form of the atmospheric water generator. This technology generates water from air, which is then filtered and mineralised before reaching the user. There is no water waste and no use of groundwater, which protects groundwater levels.

A pilot project was launched in the village of Lingapura, Haragadde Panchayat. This is a self-sustaining model that provides 900 people in the village with 2,000 litres of water per day. It also employs a person with special needs. The Panchayat leaders and residents of Lingapura village have highly praised the project.

Siva Sakthi Sathya Sai Charitable Trust

This is a registered trust that was established to assist people with intellectual disabilities and senior citizens. The Trust operates a home in Sri Raja Rajeswari Nagar, Bengaluru, for 28 differently abled people. Strides Foundation stepped up to sponsor groceries and medicines for the inhabitants.

==> picture [242 x 177] intentionally omitted <==

==> picture [243 x 177] intentionally omitted <==

==> picture [242 x 177] intentionally omitted <==

Education

Employability

COVID-19 response

• Provided a 30-bed Covid Care Centre at Pondicherry University campus in collaboration with Solara and Puducherry governments

Vocational skill development

LeAPs

The Leadership Adoption Program for Schools (LeAPS) caters to people transformation and is further customisable for young students in government schools. During FY 2021-22, ~500 students from Haragadde Govt Primary and High School benefited from the ‘Taking Learning to Villages’ initiative. As schools were closed due to the pandemic, there was a disconnect between teachers, students, and learning. Teachers visited villages, met students, and conducted workshops for them near temples, marriage halls, and under banyan trees to revitalise the student-teacher bond.

Every year, we organise the Employment Empowerment Program, and have partnered with Swami Vivekananda Rural Community College (SVRCC) to widen our reach. This collaboration enabled the selection of 100 students who will be trained in a variety of job-related courses using a holistic approach to help them become responsible citizens.

• Facilitated ‘Oxygen on Wheels’, in collaboration with KSRTC for Government PHC Haragadde

• Distributed home isolation kits to Suragajakkanahalli Panchayat and Haragadde PHC

Skill development programme

• Donated ~11 lakh Paracetamol tablets to government PHC Haragadde, government hospitals Anekal and DKS trust

To empower the women of Muthanallur Village Panchayat and train them to earn a living, we established a Training Center in Muthanallur village by donating sewing machines, embroidery machines, interlock machines, cutting machines, and accessories to Siri Sanjeevini - Women Self Help Group (SHG). This initiative will assist in the upskilling of ~900 women in every batch in the village panchayat.

Infrastructure development

9,100 people

We recognise the value of education and will continue to focus our efforts on improving educational infrastructure to provide high-quality learning environment. We donated a laptop and accessories to the smart class at Dr. Ambedkar Government Law College in Puducherry.

vaccinated through vaccination drive by Arogyadhama at the Suragajakkanahalli village panchayat

==> picture [551 x 241] intentionally omitted <==

Annual Report 2021-22 | 33

32 |

Strides Pharma Science Limited

Governance

Prioritising transparency and integrity

Our Board provides invaluable direction and guidance to ensure the fulfillment of key growth objectives. It has collectively developed a comprehensive approach to corporate governance, which informs the strategic aspirations of the business.

Our Board has set up robust policies and procedures, including the code of conduct, Board diversity policy, dividend distribution policy, policy for determination of material events and information, remuneration policy, related party transaction policy, among others. This has helped us continue benchmarking ourselves against our principles and the global best practices to remain effective and efficient in governance monitoring. In our effort to keep ourselves updated with the ever-changing and dynamic ESG environment, we are periodically reviewing and amending these policies whenever necessary.

==> picture [216 x 236] intentionally omitted <==

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

Board values
Efficiency
n
boratio Integr
la it
l y
o
C
----- End of picture text -----

Integrity

We will follow the right practices and do the right thing

Collaboration

We will work together, understanding and supporting each other

Efficiency

We will do everything to deliver quicker, better results

Board of Directors

==> picture [159 x 129] intentionally omitted <==

==> picture [158 x 129] intentionally omitted <==

==> picture [159 x 129] intentionally omitted <==

Badree Komandur Dr. Kausalya Santhanam Executive Director - Finance & Independent Director Group Chief Financial Officer

Arun Kumar Executive Chairperson & Managing Director

==> picture [159 x 128] intentionally omitted <==

==> picture [158 x 128] intentionally omitted <==

==> picture [159 x 128] intentionally omitted <==

Deepak Vaidya Non-Executive Director

S. Sridhar Independent Director

Bharat. D. Shah Independent Director

==> picture [159 x 129] intentionally omitted <==

Leadership team

Badree Komandur Executive Director - Finance & Group Chief Financial Officer

Arun Kumar Executive Chairperson & Managing Director

Christoph Funke Chief Operations Officer

Umesh Kale Chief Quality Officer

Homi Rustam Khusrokhan Independent Director

Annual Report 2021-22 | 35

34 |

Corporate information

REGISTERED OFFICE

STATUTORY AUDITORS

201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703, India Tel.: +91 22 2789 2924/2789 3199 Email: corpcomm@strides.com Website: www.strides.com CIN: L24230MH1990PLC057062

BSR & Co. LLP

Embassy Golf Links Business Park, Pebble Beach, B Block, 3rd Floor, No. 13/2, Off Intermediate Ring Road, Bengaluru – 560 071, India

INTERNAL AUDITORS

Grant Thornton Bharat LLP 5th Floor, No: 65/2, Block A, Bagmane Tridib, Bagmane Tech Park, C V Raman Nagar, Bengaluru, Karnataka 560093, India

CORPORATE OFFICE

‘Strides House’, Bilekahalli Bannerghatta Road, Bengaluru - 560 076, India Tel.: +91 80 6784 0000/ 6784 0290

REGISTRAR & SHARE TRANSFER AGENT

R & D CENTRE

165/2, Bilekahalli Village, Begur, Hobli, Bengaluru South Taluk, JP Nagar 7th Phase, Bannerghatta Road, Bengaluru – 560 076, India

KFin Technologies Limited (formerly, KFin Technologies Private Limited) Selenium, Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad, Telangana – 500 032, India Toll Free Number: 1- 800-309-4001 Email id: - einward.ris@kfintech.com

BANKERS AND FINANCIAL INSTITUTIONS

Bank of Baroda Axis Bank Limited RBL Bank Limited IDFC First Bank Limited IndusInd Bank Limited Yes Bank Limited Karnataka Bank Limited SBM Bank (India) Limited Tata Capital Financial Services Ltd Aditya Birla Finance Ltd

Statutory Reports and Financial Statements

GLOBAL OFFICE

Singapore

Strides Pharma Global Pte Limited

3 Tuas South Avenue 4, Singapore – 637610

USA

Strides Pharma Inc

2 Tower Center Boulevard, Suite: 1102 East Brunswick, NJ 08816

United Kingdom

Strides Pharma UK Ltd

Unit 4, Metro Centre, Tolpits Lane, Watford, Hertfordshire, WD18 9SS, UK

Italy

Beltapharm SpA

20095 Cusano MIL, Via Stelvio, 66, Italy

Kenya

Universal Corporation Limited Club Road, Past Post Office, Plot No. 13777, P.O. Box 1748- 00902, Kikuyu Town, Kenya

South Africa

Trinity Pharma Proprietary Limited 106 16th Road, Midrand, Johannesburg, 1686

Canada

Strides Pharma Canada Inc

44 Chipman Hill, Suite 1000 Saint John, New Brunswick, E2L 2A9, Canada

Switzerland

Fairmed Healthcare AG

Industriestrasse 9, Zug

Statutory Reports

Management Discussion and Analysis 38 Board’s Report 47 Corporate Governance Report 72 Business Responsibility Report 95

Financial Statements

Consolidated Financials 106 Standalone Financials 215 Equity history of the Company 302

36 |

Strides Pharma Science Limited

Management discussion and analysis

Economic environment

According to the World Economic Outlook published in April 2022, global growth is predicted to slow, i.e., from 6.1% in 2021 to 3.6% in 2022.

World

The global economy, in the previous year, opened up with a note of optimism as the impact of covid-19 started to ease out. However, the pace of recovery was impacted by successive waves caused by newer variants and consequent supply chain disruptions across the world, driving crude and other material prices. The ongoing Russia-Ukrainian war further posed a significant risk impacting global supply chain dampening global economic recovery. Besides, the tightening of monetary policy by the US Fed towards the end of the year impacted the economic outlook.

With the pandemic still raging, a strong global health strategy is more important than ever. To lower the possibility of more deadly COVID-19 variations, global availability of immunizations, testing, and therapies are critical. This necessitates higher supply production for medications including vaccines, improved in-country delivery networks, and more equitable international distribution. Many nations’ monetary policies will need to tighten more to keep inflation pressures at bay, while fiscal policy will need to prioritize health and social investment while focusing support for the most vulnerable.

After a severe contraction in 2020 driven by the Covid -19 pandemic, the US economy rebounded sharply, albeit with the occasional spread of the virus caused by different variants. Monetary policy remained highly accommodative, but the announced tapering of government bond purchases is appropriate as the recovery becomes more firmly entrenched. Sustained pricing pressures will prompt a gradual increase in the federal funds rate, as already seen in 2021 and first half of 2022. Several pandemic-related fiscal measures announced in 2020 and early 2021 have largely been withdrawn. Earlier stimulus checks, supplementary unemployment benefit payments, and expanded benefit coverage have led to a substantial increase in accumulated savings expected to continue supporting economic recovery.

India

The rollout of vaccination and gradual opening of the economy provided silver linings to the Indian economy, which experienced degrowth in FY21 which was the first time in multiple decades. However, the spread of the delta variant, rising input prices, and then the Omicron variant did disrupted the pace of economic recovery. The country reported a growth of 9.2% during the year under review. The government continues to provide the impetus for growth through various incentives to push the manufacturing sector as well as commit higher outlays for the country’s infrastructure sector.

The accommodative stance taken by the RBI throughout the year under review helped the economy recover faster and boosted investments. The country reported robust GST Collections, with March 2022 reporting a record collection of ` 1.42 Lakh Crore. This was achieved through the waning impact of the Omicron variant, enhanced anti-evasion measures as well as a rate rationalization. Despite the short-term instability, India’s core economic fundamentals remain solid, and the impact on the long-term outlook will be minimal. The effects of growth-enhancing policies and schemes (such as production-linked incentives (PLI) and the government’s push toward self-reliance) and increased infrastructure spending is beginning to take effect and will result in a stronger multiplier effect on jobs and income, higher productivity, and increased efficiency— all of which will lead to faster economic growth.

The Eurozone was impacted to a great extent by the outbreak of the Delta and Omicron variants of the pandemic, leading to restrictions and disruptions in activities. Despite the challenges, the Eurozone reported strong growth. This performance largely reflects catch-up growth after the deep slump of 2020, but it is also evidence of a robust recovery of economic activities.

The economic performance of the emerging economies varied greatly during the past two years. Export of goods and services remained comparatively in a better position except tourism and allied activities, which continued to witnessed poor economic performance. Emerging market economies have witnessed a surge in inflation, driven primarily by higher commodity prices, supply chain disruptions, labor shortages, and demand for goods.

According to the FICCI Economic Outlook Survey, the country’s gross domestic product (GDP) is predicted to expand by 7.4% in the current fiscal year 2022-23.

The conflict in Eastern Europe between Ukraine and Russia has led to an increase in the prices of food, oil, and natural gas. The entire global economy has been impacted by the conflict and is expected to experience slower growth and faster inflation.

The threats to economic growth are continuing to rise. While the possibility of a pandemic is still there, the ongoing conflict between Russia and Ukraine is creating a substantial barrier to global recovery.

Industry developments

The pharmerging markets have reported a growth in spending at ~7.8% CAGR between 2017 and 2021 to reach US$354.2 Billion in 2021. Pharmerging countries, led by China, are increasingly allowing access to newer medications, frequently earlier and to a larger portion of their populations than previously.

Global Pharmaceutical Industry

The onset of the pandemic led to the global pharmaceutical industry facing several challenges. Despite the disruptions, the industry demonstrated immense determination in fighting off the pandemic. While vaccination was the core focus area for the industry worldwide, it also ensured a continued supply of critical medicines to keep the global healthcare system uninterrupted.

The COVID-19 disturbance had hampered the worldwide markets. Supply chain disruption, product releases, adoption, decreasing footfall at pharmacies and hospitals, and a slowdown in R&D activity were among the issues faced by the pharmaceutical business. Some of these headwinds have now started to ease with improved demand outlook. However, supply chain disruptions owing to covid waves and geopolitical risks around the Russia- Ukraine war continues to be a key risk.

The global medicine market was valued at US$1.4 trillion in 2021 and is expected to expand at a 3–6% CAGR through 2026, reaching around US$1.8 trillion in overall market size in 2026, including spending on COVID-19 vaccines. The primary variables influencing medicine spending and growth in developed countries are projected to be the adoption of novel medicines, countered by patent lifecycles and competition from generics and biosimilars. The most significant drivers of change in the use of medicines in pharmerging nations will continue to be substantial improvements in healthcare access.

Pharmaceutical and biopharmaceutical manufacturing will face various hurdles in 2022, ranging from formulation and delivery issues to skilled labor shortages and compressed schedules. Integration of sophisticated technologies is one possible answer to these problems. Challenges brought possibilities, especially in the pharmaceutical business, which is currently dealing with the aftermath of the COVID-19 pandemic and evolving under changing conditions. The upcoming opportunities have come in the form of Data analytics which will accelerate biotechnology innovation, and new operating models will bring muchneeded agility.

The pharmaceutical markets in the developed world grew at ~4.9% CAGR from 2017 to 2021 and are estimated to grow at about 2.5-5.5% CAGR by 2026. In developed countries, adopting new treatments, offset by patent to lifecycles and competition from generics and biosimilars, are expected to continue as the main factors influencing medicine spending and growth.

Global pharmaceutical industry growth:

==> picture [490 x 175] intentionally omitted <==

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

Forecast
5-Year
1,750 CAGRs
5-Year -1,780
1,800 5-Year CAGRs 3-6%
1,600
1,400 CAGRs 1,424 5.1%
3-6%
1,200 1,112 6.5%
1,000 0.1%
813
800 4.8% 5-8%
600 11.4% 7.8%
400
200 5.3% 4.3% 2-5%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Developed Pharmerging Lower Income
----- End of picture text -----

Source: IQVIA Market Prognosis, Sep 2021; IQVIA Institute, Nov 2021

The Generics Pharmaceutical market

The global generic drugs market reached a value of $ 320 Billion in 2021. At a CAGR of 7%, the market is estimated to reach $482.5 Billion by 2027.

Price deflation has largely countered growth from relevant patent expiry events, therefore, generics, including biosimilars, have had a minor impact on growth.

Annual Report 2021-22 | 39

38 |

Strides Pharma Science Limited

Global pharmaceutical market growth

Global pharmaceutical market growth
Region	2021	2017-2021 CAGR	2026	2022-2026 CAGR
Developed Pharmerging Lower income countries Global	1,344.9 354.2 19.0 1,423.5	4.9% 7.8% 0.1% 5.1%	$1,635–1,665 $470–500 $21–25 $1,750–1,780	2.5–5.5% 5–8% 2.5–5.5% 3–6%

Global pharmaceutical market 2025 – Product type

Region	Original brands	Non-original brands	Unbranded generics	Other
Developed Pharmerging Lower income countries Global	$930–960 $151–171 $7–9 $1,100–1,130	$134–154 $146–166 $9–13 $295–325	$92–112 $59–63 $1-2 $154–174	$53–57 $88–108 $1–5 $146–166

Top 20 therapy areas in 2025 in global spending (5-year CAGR forecast) (US$ Billion):

								5-Year CAGRs
	2026	Spending					2022-2026 Conts US$
Oncologics Immunology Antidiabetics Neurology Anticoagulants Cardiovascular Respiratory Pain Vaccines including COVID-19 HIV antivirals Antibacterials GI products Ophthalmology Vaccines ex COVID Dermatologics Lipid regulators Hospital solutions Anti-ulcerants Blood coagulation Traditional chinese med	05	16 19 20 22 23 25 26 26 37 41 45	70 71	87 87	151	173 178	306	9-12% 6-9% 6-9% 3-6% 8-11% 4-7% 5-8% 6-9% 3-6% 2-5% 4-7% 3-6% -1-2% 8-11% 5-8% 2-5% 1-4% 5-8% -1-2% -1-2%

predicted to add $15 Billion in growth over the next five years, almost the same as in the previous five years, despite a bigger impact of loss of exclusivity due to price deflation offsetting volume increases.

The US

The US Pharmaceutical market saw a ~3.5% CAGR from 2017-21 to reach US$580 Billion. This market is expected to grow at a 2%-5% CAGR to reach US$605- 699 Billion by 2026. Expenditure is likely to expand at a rate of 0–3% in the United States, while rising off-invoice discounts and rebates are expected to restrict spending growth over time. Aside from discounts and rebates, ongoing market dynamics surrounding the use of medicines, the adoption of newer treatments, the impact of patent expirations, and new generic or biosimilar competition will all contribute to historically slow market growth in the United States over the next five years.

Japan

The market has witnessed marginal decline of 0.5% from 2017-21 to reach US$85.4 Billion; and is projected to progress at around (-2)-1% CAGR to US$73-93 Billion by 2026. While the pandemic made 2020 a price-cutting year, the more modest rebound in 2021 included an off-cycle price-cut as well as the epidemic’s residual impacts on the market.

European Union (EU5)

Australia

The top five European Union (EU5) markets grew at a 4.8% CAGR from 2017-21 to reach US$209.7 Billion and is projected to grow at about 3-6% CAGR to US$245275 Billion by 2026. Medicine spending in the top five European markets is predicted to rise by $51 Billion over the next five years, up from $44 Billion in the previous five, but with significant adjustments in growth drivers. Generics, including biosimilars, are

The Australian market grew by 0.6% from 2017-21 to reach US$14.4 Billion and is projected to grow at around 2.5-5.5% CAGR to US$16-19 Billion by 2026.

China

The Chinese market grew by 6.1% between 2017-21 to reach US$169.4 Billion and is projected to grow at around 2.5-5.5% CAGR to US$190-220 Billion by 2026

. China’s growth continues to outpace the rest of the group, owing to a trend away from traditional Chinese medicine and toward original branded products. Over the next five years, government policies requiring annual updates to the national reimbursement drug list (NRDL) will result in a greater share of new original medicines being reimbursed, resulting in higher levels of spending, though these will generally be subject to lower negotiated net prices.

Africa

The pandemic has unearthed Africa’s vulnerabilities in ensuring access to vital drugs, vaccines, and health technologies. Close 95% of the continent’s medicine it uses is dependent on imports. Africa’s US$24 bn pharmaceutical market largely depend on companies outside the continent. It is expected that the market will reach a size of US$45-65 Billion by 2030. The optimism comes from rapid urbanisation, severe under penetration and an expected surge in income driven by growing economic activities in the continent.

Company overview

Strides Pharma Science Limited is a global pharmaceutical company headquartered in Bengaluru, India. The Company mainly operates in the regulated markets including key markets of US, Europe, Australia, South Africa. The company also has presence in the emerging markets largely in Africa where it has a branded business and is a prequalified supplier to donor-funded programmes though its institutional business. The Company’s global manufacturing sites are located in India (Chennai, Puducherry and two locations in Bengaluru), Singapore, Italy (Milan), Kenya (Nairobi), and the United States (New York). The Company focuses on “difficult to manufacture” products sold in over 100 countries

Our product portfolio includes a wide range of niche and technically complex pharmaceutical products, including a range of dosage forms such as, liquids, creams and ointments, soft gels, sachets, tablets, and modified release dosage formats. We are among the leading soft gelatin capsule manufacturers globally.

Regulated markets

Our regulated markets business vertical focuses on the regulated markets of the US, UK, other parts of Europe, , Nordics, DACH region, South Africa,. We are a strategic supplier to the Australian market with our preferred supplier contract with Australia’s pharmaceutical behemoth, Arrotex.

Our revenue from this business segment de-grew by 14%% y-o-y to 22,830 Million in FY 2021-22 from 26,636 Million in FY 2020-21. With over 73% of our consolidated revenues coming from this segment, it remains a key focus area for us.

US market

Our US business witnessed significant fall in revenues due to covid-related headwinds. The business saw drop in volumes and margin compression driven by heightened competitive intensity and higher channel inventory. However, our US business returned to sequential growth in the second half of FY 2021-22. During the year we successfully acquired the Chestnut Ridge site from Endo along with a basket of ~150 ANDAs. The acquisition added new domains to our portfolio including Controlled Substances, Hormones, Nasal Sprays and provides growth visibility in the near term through new launches from the combined portfolio. The Chestnut Ridge facility also completed a successful FDA inspect towards the end of FY22.

US business in FY 2021-22

₹ 11,650 274 249 Million Cumulative Cumulative Revenue ANDAs filed ANDAs approved

The US once again ranks first when it comes to being the world’s largest and most attractive pharmaceutical market. The US accounted for almost half of pharmaceutical sales globally in 2021. he US pharma market is forecasted to grow at 2%-5% CAGR till 2026. Our subsidiary, Strides Pharma Inc. runs the front-end business in the US by providing quality healthcare products to the market in prescriptions and private label Over The Counter (OTC). Going forward, our focus will be to expand our product offering through new launches in the US leveraging a vast portfolio of approved products available and we will continue with our relentless focus on supply commitments along with strong customer advocacy We believe we are on track to achieve our growth outlook for FY 2022-23 in the US market.

FY 2021-22 achievements

• Retained volume market share for key base molecules.

• Relentless focus on supply chain and customer advocacy

• Successful completion of Chestnut Ridge acquisition in the US with ~150 ANDAs in diversified dosage formats including Controlled Substances, Hormones, Nasal Sprays to further accelerate portfolio differentiation

• Diversification of product portfolio that now comprises of acute and chronic products

Strategy for future

Going forward, our key objective is to bounce back in the US markets with new product launches from the

Annual Report 2021-22 | 41

40 |

Strides Pharma Science Limited

approved portfolio to achieve $250m+ revenue in FY23. With 249 approved ANDAs and to launch ~20 products each year and have 100+ commercial products in the US in medium term. Further, we are focusing on cost improvement programmes (CIPs) through alternative API vendors and manufacturing network optimization to achieve improved COGS and operating margins.

Approved portfolio New domain additions comprising opportunity Controlled Substances, Hormones, Nasal Sprays to further accelerate portfolio differentiation

Leveraging Target to launch ~ 20 new products every partnership with year between Strides and Chestnut Ridge Chestnut Ridge portfolio in FY23 & 60+ launches over three years. Focus on stronger customer advocacy and superior supply execution to be a reliable partner for our channel partners

Tech transfer and Tech transfer of Chestnut Ridge products cost improvement to India for better cost arbitrage, programmes institutionalization of alternate vendor development programmes, and cost improvement programmes are key focus areas to stay competitive.

Gain market share Focus on increasing market share for existing products for existing products through cost competitiveness and supply reliability for partners

Other regulated markets

Other regulated markets for us include all regulated markets apart from the US. We have a strong presence in the UK, Europe, South Africa & Australia through our large and fungibility regulated market portfolio. Our regulated market witnessed steady performance across all our key markets despite high omicron case load. Our portfolio expansion is going to continue the growth momentum in the market.

Other regulated markets business highlights FY 2021-22

₹ 11,180 Million Revenue

UK

We cater to the UK market through our wholly owned subsidiary Strides Pharma UK limited. We have an established presence in the market through a strong connect with channel partners and we are approved supplier under NHS. The UK pharmaceutical market is one of the largest markets in the region and is expected to grow at a CAGR of 4%-7% from 2022-2026. We can capitalize on this growth by tapping into multiple

distribution channels for Rx and OTC products – Direct wholesalers, NHS supplies and Clinical commissioning groups (CCG) and expanding our product offering for the market. We have been a reliable supplier of highquality generics to Tier 1 & Tier 2 wholesalers in the retail sector as well as National Health Service (NHS) through Commercial Medicines Unit (CMU) tenders. We offer high-quality generics and heritage OTC brands in this market.

Europe

The pharmaceutical market in Europe is expected to grow at a CAGR of 3%-6% from 2022-2026. Due to Europe’s diverse macroeconomic regions, multi-cultural and multi-government structure, the pharmaceutical market is diverse and region-specific. Our portfolio maximisation strategy takes advantage of this market scenario primarily through market fungibility. Our presence in Europe, the Nordic countries, and the DACH region is steadily growing. We’re witnessing healthy traction across key frontend markets and partnership business in Europe.

Australia

We are a preferred long-term strategic supplier to Arrotex-the country’s pharmaceutical behemoth with 60% of the market share. Our partnership with Arrotex covers a wide range of products. The CAGR of the pharmaceutical market in Australia is expected to be 1.5%-4.5% till 2026, we have a dedicated plant in India to cater to the Australian market. We continue to put in efforts to expand our product portfolio for the market including off-patent molecules.

South Africa

South Africa is the largest pharma market in SubSaharan Africa. In order to enter the highly compliance driven market of South Africa, we acquired Trinity Pharma in FY 2017-18 in order to incubate its strategy on a combination of businesses. The South African pharma market is estimated to grow at a CAGR of 4.5%-7.5% till 2026. We are leveraging the distribution of products through pharmacy chains and mail order systems. We are focused on improving our IP landscape and participate in the local ARV and NonARV opportunities through a steady regional footprint by building a strong base with portfolio maximisation.

FY 2021-22 achievements

• Delivered steady growth in revenue from ORM despite challenges of the multiple waves of the pandemic

• Market expansion in Central and Eastern Europe (CEE) and the Mediterranean region through partnerships

• Strong order book visibility driven by focused customer advocacy

Strategy for future

• Base business • Prioritizing scaling up of partnership franchise in Europe and other geographies through strategic tieups and portfolio expansion

• Portfolio • Focus on several new launches and new customer acquisitions to deliver improved outcomes

• Research and • Accelerate portfolio maximization development opportunities through targeted R&D investments for Rx and OTC portfolio.

• • Plan to launch several new products to be in FY 2022-23

Emerging markets

This segment includes our operations in Africa and institutional business which represents over 26% of our consolidated revenues.

During FY 2021-22, our performance in emerging markets was driven by our institutional business with healthy procurement from our partners. The growth in this business was greatly benefitted from a healthy customer offtake. The business in Africa was impacted by high covid cases being reported by several countries. We are focusing on improving Medical Representative (MR) productivity in order to drive growth in our Africa business.

26%

Of consolidated revenues represented by emerging markets

Africa

Africa business in FY 2021-22

₹ 3,210 Million 16% YoY growth[150+ ] MR headcount Revenue

Africa is the first market where we initiated exports in the early 1990s, since then we have promised to cater to its unmet requirements. Our philosophy to conduct business activities is “In Africa for Africa”, we bolstered this with the acquisition of a WHO-approved facility under Universal Corporations in Kenya. Despite the continent being a very complex market to do business in, we have achieved a significant sales footprint in African countries. The continent demonstrates an industry-leading growth which is driven by increasing urbanisation and rapid expansion of primary health care capacity. We intend to capitalize this growth through our rich brand portfolio along with several of the product registrations in the pipeline. In order to attain a leadership position in key African market, we have already established brands like

Renerve, Unibrol, Combiart, Duotab & Vitafer in the management of Neuropathy, Malaria and Anaemia respectively. We also have a robust medical field force in Africa in order to extend our reach to a large pool of doctors. Improving the quality of life by providing therapeutically effective, high-quality medication to the people in the region is integral to our business activities in Africa. We are also focused on building a robustly branded generics portfolio for the treatment of chronic therapies – including Women’s health, CNS, Cardiovascular, Diabetes, Dermatology and Probiotics.

FY 2021-22 achievements

• Leveraged digital platforms to stay connected with pharmacies and doctors

• Established a PAN Africa presence with “In Africa, for Africa” strategy

• Local medical field force with coverage of 30,000 doctors

• Improved productivity for field force for a more profitable outcome for the business

Strategy for future

• We are focusing on scaling up Africa business through geographical expansion to new markets and better penetration of existing markets through portfolio expansion

• Focusing on improving MR productivity for the Africa business for a strong operating leverage

Institutional business

Institutional business in FY 2021-22

₹ 4,906

Million Revenue

With our purpose of bringing the best treatments at affordable costs to patients’ all over the world, we develop and manufacture drugs in the anti-retroviral, anti-malarial, and other infectious disease drug segments for our institutional business. We are one of the leading Indian suppliers of drugs for institutionally funded aid projects and global procurement agencies and we are at the forefront in the fight against these global pandemics.

Institutional business continuous to be of strategic importance to us as we are an approved supplier to Institutionally funded aid projects and Global Procurement Agencies like USAID, Global Fund, PEPFAR (The US President’s Emergency Plan for AIDS Relief), UNICEF, WHO, Pan American Health Organization (PAHO), United Nations Development Program (UNDP), Population Services International (PSI), Chemonics, PFSCM, amongst others. We supply our products to disease prone regions in Africa, Asia and Latin America with distribution to over 100 countries.

Annual Report 2021-22 | 43

42 |

Strides Pharma Science Limited

The manufacture of our Institutional range of products takes place at our world-class facilities inIndia and Kenya that comply with stringent regulatory standards and have regulatory approvals from the US-FDA, MHRA, TGA and WHO. Our WHO-approved manufacturing facility in Kenya is being used for global donor agencies and local government tenders in Africa. We are strengthening our R&D initiatives in order to develop next-generation products and we are also collaborating with agencies like UNITAID, Medicines Malaria Venture (MMV) and licensing agreements with Medicines Patent Pool (MPP), Gilead Life Sciences and Vive amongst others.

FY 2021-22 achievements

• Strong supply chain execution to meet supply obligations under donor funded programmes

• Started tech transfer of portfolio to our manufacturing site in Kenya for an “In Africa for Africa” market play

• Continued scale up of TLD franchise, one the largest ARV products

Strategy for future

Going forward, we are focusing on improving our wallet share in institutional business through our cost leadership and selective expansion of product portfolio.

Financials

Consolidated financial performance

==> picture [243 x 15] intentionally omitted <==

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

(` in Million)
----- End of picture text -----

Particulars	FY 22	FY 21
Revenue EBITDA Adjusted PAT/Loss	30,946 43 (3,550)	33,308 6,497 3,090

Key ratios (%)

==> picture [243 x 15] intentionally omitted <==

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

(number)
----- End of picture text -----

Particulars	FY 22	FY 21
Debtors’ turnover Inventory turnover Interest coverage Current ratio Debt equity EBITDA margin (%) Netproft margin(%)	2.65 1.27 0.98 1.14 1.18 0.10% -15%	3.25 1.34 4.72 1.11 0.76 19.50% 7%

A research-focused organisation

Our success in creating niche and differentiated products portfolio reflects our expertise in Research and Development. We have an integrated R&D Centre in Bangalore which has the capability to develop and file products for key regulated and emerging markets. Our R&D centre located in Bangalore is working towards building a global portfolio using latest technologies available in the pharmaceutical industry in our stateof-the-art R&D facility.

R&D at Strides is imbibed with continuous learning and innovation. We are actively engaging in the development of a wide range of dosage forms with special emphasis on novel drug delivery systems for solid orals (modified release tablets and capsules) and soft gelatin capsules for both Regulated and Emerging markets. In order to deliver sustainable growth, we are focusing our product selection on niche products characterized by complex formulations across diverse therapeutic segments. Constant endeavours of Strides to improve our R&D along with our strong formulation R&D capabilities combined with knowledge of the regulatory environment in Regulated markets have resulted in successful product registrations in several markets.

Strengthening the IT infrastructure

The availability of multiple vaccines within a year for tackling COVID-19 wouldn’t have been possible without the correct use of digital technology in extraordinary ways. A significant percentage of our volumes are manufactured using the programme for Manufacturing Execution System (MES), a typically multi-year initiative. MES system empowers our whole manufacturing operations to be GMP-compliant along with automatic capturing of data from different machines and instruments. We can generate electronic ‘Batch Manufacturing Records’ enabling us to quickly release the batches with ‘Review by Exception’ using MES. Electronic logbooks have enabled us to avoid documentation mistakes and ensure concurrent entries of all activities.

People management

Strides has a global team of around ~4,200 people working in diverse and harmonious work environment with an open and transparent culture. We pursue a merit-based recruitment, reward and recognitions policy and attract and retain the best talent. We put a lot of emphasis on growth through learning in order to motivate our people to align their goals with the organization goals.

Our top management connects with our global employee base during communication sessions that we conduct several times during the year as a part of our transparent organisational culture. In order to encourage two-way communication across the organisation, we have an app-based for employee feedback and governance.

We adhere to the highest standards of ethical, moral and legal conduct of business operations.

We have a Whistle Blower Policy which provides a mechanism for the Directors, employees and stakeholders of our Company to raise concerns on any violations of legal or regulatory requirements, incorrect or misrepresentation of any financial statements and reports, among others.

We conduct adequate trainings, workshops and awareness programmes against sexual harassment across the organization and we have also adopted a gender-neutral Prevention of Sexual Harassment (POSH) policy.

Quality compliance

Achieving high benchmarks in the compliance curve has always been Stride’s emphasis. Clearly defined agendas concerning people, processes, products and technologies is provided by our quality excellence programme. We train our people in advanced quality management through specific programmes, enabling the identification, reporting and rectification of quality concerns at Strides.

Enterprise Risk Management at Strides

We are operating in an uncertain environment for past two years due to the pandemic. However, it is a highly interconnected world with stringent regulatory oversight, rapidly evolving external environment, with increasing geopolitical tensions, environmental risks, supply chain disruptions and fast-paced technological evolution, that could have an impact across the value chain of the organisation. Strides continues to be on its journey of institutionalising its Enterprise-wide Risk Management (ERM) Programme to provide a holistic view of our risk exposures as well as to facilitate a risk informed decision-making, in the highly volatile and uncertain business environment.

The Board of Directors and the Senior Management are cognizant of the importance of equipping the organisation with the necessary framework and processes to navigate the complex and dynamic risk environment in the short term and the long term.

In its journey towards risk intelligence, a robust risk governance structure has been developed across the Group globally. The Board of Directors have constituted a Risk Management Committee (RMC). Further, to drive ERM process across the Group, a Group Risk Steering Committee has been constituted at the Senior Management level. It is also proposed to establish entity/ regional specific Steering Committees to monitor risks periodically at local business level.

At Strides, we acknowledge the fact that having a robust and pervasive risk-intelligent culture is essential for achieving Company’s objectives and build resilience for the future. We are consistently mapping various levels of risks inherent in our business strategies and operations. The central risk office led by Chief Risk Officer, assists RMC and Group Steering Committee in risk monitoring and reporting process. The CRO

regularly reports to the RMC and the Group Risk Steering Committee on the status of the potential risks based on the assessment of risks and the mitigation strategies. Employees are also being kept abreast with the leading risk management practices through training programmes and workshops.

Risk Management Framework and Process

The Company has adopted a combination of a bottomup and top-down approach to drive ERM across the business units and subsidiaries. The process includes identification and regular assessment of risks by respective business heads/risk owners across the Company and planning of mitigation strategies in a structured manner. At the Organizational level, the leadership team identifies and assesses long-term and strategic risks for the Company. Risks are consolidated under major risk themes at the enterprise level to create focus areas and prioritise mitigation strategies. The ERM process is integrated with core processes such as Strategy and Planning, Mergers & Acquisitions and Internal Audit.

We acknowledge that risk management is a dynamic and ever evolving concept and hence, it is important to revisit the policies, framework, and processes periodically to ensure that they remain adequate and relevant. At Strides, we review our risk management framework on a regular basis to not only align with the changing regulatory requirements but more importantly to increase the maturity and resilience of the Company’s risk response mechanism. Recent changes in the framework have been made to bring in the following enhancements:

• Leveraging data and technology to anticipate and measure risks

• Data-driven key risk indicator monitoring for enhanced risk monitoring and reporting

• Ingraining risk-based decision making and implementing mechanisms to reward best practices

• Integration of the ERM framework with the Environment, Social and Governance (ESG) practices of the Group

• Extending the risk management practices beyond risk mitigation, to planning for business continuity mechanisms

While risks can never be completely eliminated, we believe that these changes will improve our organizational maturity and preparedness for managing unforeseen risks as well respond to various crisis scenarios.

Annual Report 2021-22 | 45

44 |

Strides Pharma Science Limited

Key Risks in the Business:

We regularly review our key risk areas, and the leadership retains the responsibility for determining the nature and extent of significant risks and drawing out commensurate mitigation and response plans. We set out below our principal risks identified

1. Ensuring Business Continuity

2. Workforce Health and safety

3. Product Quality and Efficacy

4. Supply Chain Disruptions and Increasing input costs

5. Price-erosion and competition in the Regulated Markets

6. Cyber-security and Data Privacy regulations

7. Environment, Health and Safety (EHS) Risks

8. Regulatory and Compliance Management

As the organization focusses on business growth, we are committed to step up our investments in resources, tools and technologies to make our risk-mitigation processes more data driven and objective. These capabilities will help us build and equip our business with capabilities to sense and respond to emerging risks across our organizational ecosystem in a timely and effective manner.

“Dealing with risks and managing uncertainties is a key mantra and an essential skill for any organization today. Our reputation as an organisation is measured by our resilience to respond to uncertainties. Strides is committed to minimising risks and maximising performance through increased awareness and maturity towards risk management. A robust Enterprise Risk Management blueprint is vital to enable business and operations to take risk-informed decisions, manage crisis scenarios and build a risk-aware culture” - Sormistha Ghosh, Group General Counsel & Chief Risk Officer

Internal control systems and adequacy

The Company’s advanced IT infrastructure ensures adequate internal controls over business processes and practices. This internal control system provides reasonable assurance about the integrity and reliability of financial statements. Moreover, the Company has an active in-system audit programme, supported by Grant Thornton, which regularly encompasses various operations consistently. Our Audit Committee reviews internal audit observations regularly.

Board’s Report

Dear Shareholders,

On behalf of the Board of Directors of the Company, it gives us pleasure in presenting the 31st Board’s Report, along with the Audited Financial Statements (Consolidated & Standalone) for the financial year ended March 31, 2022.

1. Financial performance

The Company has prepared the consolidated and standalone financial statements for the financial year ended March 31, 2022, in accordance with the Indian Accounting Standards (Ind AS) as prescribed under the Companies Act, 2013.

Key highlights of financial performance of the Company for the financial year ended March 31, 2022 as compared to previous year is provided below:

==> picture [476 x 16] intentionally omitted <==

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

(Figures in Million)
----- End of picture text -----

Particulars	Particulars	Consolid	ated Basis	Standalone Basis
		FY 2021-22	FY 2020-21	FY 2021-22 FY 2020-21
		INR USD INR USD***		INR USD INR USD***
1.1 **1.2 **	Financial Continuing Operations Income Operating Proft (EBITDA) Net Proft (PAT) Other Equity Non-Controlling Interest Profts Operating Proft (EBITDA) Less: Finance Cost Depreciation & Amortization Exceptional Items(gain)/loss	32,022.38 421.74 33,672.97 460.34 1,118.82 14.73 6,862.57 93.82 (4,742.50) (62.46) 2,437.88 33.33 22,694.38 298.89 26,869.80 367.33 240.88 3.17 373.41 5.10 1,118.82 14.73 6,862.57 93.82 1,767.44 23.28 1,500.65 20.52 2,330.14 30.69 2,062.87 28.20 2,438.25 32.11(433.53) (5.93)		21,024.88 276.90 19,465.62 266.11 2,001.15 26.36 2,763.16 37.77 1,801.88 23.73 782.40 10.70 33,168.93 436.84 31,583.77 431.78 2,001.15 26.36 2,763.16 37.77 742.41 9.78 653.39 8.93 1,043.66 13.75 993.42 13.58 - - - -
	Proft Before Tax	(5,417.01) (71.34) 3,732.58 51.03		215.08 2.83 1,116.35 15.26
	Share of proft / (loss) of joint ventures and associates	(1,108.12) (14.59) (978.19) (13.37)
	Proft Before Tax	(6,525.13) (85.94) 2,754.39 37.65		215.08 2.83 1,116.35 15.26
	Less: Tax Expenses /(Beneft)	(1,782.63) (23.48) 316.51 4.33		(1,586.80) (20.90) 333.95 4.57
	Proft After Tax	(4,742.50) (62.46) 2,437.88 33.33		1,801.88 23.73 782.40 10.70
	Proft/ (Loss) from Discontinued operations	- - 139.41 1.91		- - - -
	Total Proft	(4,742.50) (62.46) 2,577.29 35.23		1,801.88 23.73 782.40 10.70
	Other Comprehensive Income Items that will not be reclassifed to proft/ (loss) (Net of Tax) Items that may be reclassifed to proft/(loss) (Net of Tax)	(67.68) (0.89) 90.38 1.24 557.67 7.34 75.17 1.03		(1.63) (0.02) (15.19) (0.21) (38.58) (0.51) 254.44 3.48
	Total Other Comprehensive Income(Net of Tax)	489.99 6.45 165.55 2.26		(40.21) (0.53) 239.25 3.27
	Total Comprehensive income	(4,252.51) (56.01) 2,742.84 37.50		1,761.67 23.20 1,021.65 13.97
	Dividend on Equity Shares Final Dividend(includingtaxes)	- -(179.14) (2.45)		- - -(179.14) (2.45)

• Notes:

• 1 USD = `75.93 (Exchange Rate as on March 31, 2022)

• ** 1 USD = `73.15 (Exchange Rate as on March 31, 2021)

Annual Report 2021-22 | 47

46 |

Strides Pharma Science Limited

2. Company’s performance

FY22 has been a challenging year for the pharma industry and, particularly for Strides, given the significant headwinds.

We have witnessed unusual price erosion and volume drops in the Regulated Markets, leading to significant compression in our gross margins. The business was also impacted due to Covid-led disruptions in the first half of the financial year.

On a consolidated level, we reported a muted financial performance during the year. The Company’s operating performance was impacted by increase in raw material prices with disruption in the global supply chain and a significant increase in the cost of operations during the year. The Company’s logistics and warehousing costs were 10% of sales in FY22 versus 6% in FY21.

Regulated Markets

The Regulated Markets vertical comprising businesses in the US and Other Regulated Markets, including the UK, the EU, Canada, Australia, and South Africa, witnessed a revenue decline of 8% during the year. Business performance of this market was impacted by a significant fall in the US market revenues owing to Covid-related headwinds, leading to drop in volumes and margin compression on account of heightened competitive intensity and higher channel inventory.

Other Regulated Markets had a tepid growth impacted by Covid during the first half; however, in the last quarter, the business witnessed a strong rebound.

US business

The US business contributed `11,650 Million (38%) to the consolidated revenues of FY22, registering 27% de-growth over the last year. The business was significantly impacted by Covid-led challenges in the market, leading to a lower prescription rate for the products. The US business environment is constantly evolving post-Covid, with select products recouping both volume and price, while several other products continue to face price intensity and lower volume pick-up. While the Company believes the ambiguity will continue in the near term, given that Covid’s future impact is unknown, it stays confident to navigate the evolving environment and meet a revenue target of over $250 Million for the US market in FY23.

Other Regulated Markets

Other Regulated Markets delivered 4% y-o-y growth in FY22. It contributed `11,180 Million (36%) to the consolidated revenues of FY22. While the business delivered a moderate performance, the results were impacted by Covid-led disruption for 3-4 months during the year. During the year,

the Company focused on several new launches and new customer acquisitions across the markets to deliver improved outcomes.

Other Regulated Market business is a significant part of the Company’s growth strategy driven by frontend presence in key markets and IP-led B2B partnerships in Europe, Australia and other parts of the world. The Company has committed R&D investments to fast-track portfolio maximization opportunities for Rx and OTC portfolios and several new products to be launched in FY23.

Emerging Markets

Emerging Market business includes African operations (except South Africa) and Institutional Business (i.e., Access Markets). This business saw a steady performance in FY22, contributing `8,116 Million (26%) to FY22 consolidated revenues. The Africa business scale-up continues to be driven by expanding geographical footprint in the region and better penetration of existing markets through portfolio expansion. While the Institutional Business is a low-margin business, it is critical in reducing under-recoveries, while the regulated markets volumes ramp up. Growth in this business will continue to be driven by improved wallet share in the products through cost leadership and selective expansion of the product portfolio.

Research & Development (R&D)

During the year, R&D investments of the Company were at `970 Million. The Company has an ANDA basket of a wide range of dosage formats and a mix of acute and chronic products that will help diversify product offerings and render stability to the portfolio.

The Company has 274 ANDAs, including 249 approved ANDAs, which provides substantial growth visibility in the near term for the US business and an opportunity to launch new products for the other global markets.

On a go-forward basis, the Company targets optimizing R&D investment for the US as it unlocks value from the large basket of approved products. The Company is shifting its R&D focus to other regulated markets and other geographies by leveraging the vast portfolio already approved. The Company’s focus on cost improvements will significantly lead the new launches to achieve an improved price point for the commercial launch.

Outlook

Considering the evolving business environment, Company has made several changes to its business with a focus on growth. Growth across the markets will be driven by portfolio expansion, leveraging Company’s approved portfolio and new customer acquisitions for its IP-led B2B business. The Company will aggressively focus on cost reduction

and reduction of gross debt by over `10 Billion in FY23 (which will bring our Net Debt to EBITDA ratio below 3x).

While the operating environment continues to evolve and is ambiguous, the Company stays confident of a bounce-back in FY23 to deliver significant value for our stakeholders in the coming years.

3. Dividend for FY22

Considering FY22 performance of the Company, Board of Directors of the Company have decided not to recommend any dividend for the year.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations), the Dividend Distribution Policy is available on the Company’s website and can be accessed at https:// - - www.strides.com/cg corporate policies.html

4. Transfer to Reserves

Movement in Reserves and Surplus during the financial year ended March 31, 2022, is provided in the Statement of Changes in Equity included in the Consolidated and Standalone Financial Statements (Refer Note no. 20 and 19 respectively).

5. Corporate Updates

During the year under review, Company has initiated/ undertaken the following key corporate actions:

a) Acquisition of manufacturing facility in the US along with baskets of ANDAs

To accelerate Company’s growth momentum for the US business, the group acquired a manufacturing facility situated at Chestnut Ridge, New York along with a basket of ANDA portfolio from the subsidiaries of Endo International plc (Endo) during October 2021. The acquisition strengthens Strides’ portfolio, front-end presence, and local manufacturing capability for the US.

The transaction was undertaken by Strides’ subsidiaries in the US and Singapore, as under:

• Chestnut Ridge manufacturing facility was acquired by Strides Pharma Inc., a step-down wholly owned subsidiary of the Company in the US.

This facility has an annual capacity of 2 billion units across multiple dosage forms and is registered with the Drug Enforcement Administration (DEA), enabling it to manufacture controlled substances.

Being in the US, this facility shall drive logistics related synergies for the Strides’ US business and will enable the group to mitigate supply chain related bottlenecks as faced during the Covid pandemic or any similar disruptions going forward.

Further, this site will also be able to participate in various federal government procurement programmes including the Department of Veterans Affairs, thereby strengthening the group’s ability to cater to federal contracts.

• ANDA Portfolios was acquired by Strides Pharma Global Pte. Limited, a step-down wholly owned subsidiary of the Company in Singapore.

• The acquired portfolios have 20 commercial products and a basket of ANDAs which shall help fast track group’s new launch strategy for the US markets.

Aggregate consideration for the transaction was ~US$24 Million, which was financed by a combination of internal accruals and debt financing.

Given the scale and capabilities of this facility, Strides Pharma Inc., USA divested the West Palm Beach site in Florida in December 2021 to consolidate the soft gel capability (including VA opportunities) at Chestnut Ridge for better manufacturing cost synergies.

b) Issuance of Equity Warrants to a promoter group entity

The Company allotted 2 Million Equity Warrants on April 26, 2022, on a preferential basis to M/s. Karuna Business Solutions LLP (Karuna), a promoter group company, at a price of `442/- per Equity Warrant, pursuant to the approval accorded by the Shareholders of the Company at the Extraordinary General Meeting held on April 7, 2022.

The said allotment is in compliance with the provisions of the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable regulations.

The Company has received 25% of the upfront amount of 221 Million towards subscription of the Warrants from Karuna. Karuna has a right to apply for and get allotted, within a period of 18 months from the date of allotment of Warrants, in one or more tranches, One Equity Share of face value of10/- each for each Warrant.

Annual Report 2021-22 | 49

48 |

Strides Pharma Science Limited

c) Amalgamation of Vivimed Life Sciences Private Limited into the Company

Bench and other statutory/ regulatory approvals, as may be required. Procedural activities in this matter are underway.

The Board of Directors of the Company at their meeting held on February 10, 2022 have approved an updated Scheme of Amalgamation for merger of its wholly owned subsidiary, Vivimed Life Sciences Private Limited (Vivimed) into the Company pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013 (Scheme).

d) Update on Stelis Biopharma Limited (Stelis)

Stelis, as a biopharmaceutical company, has integrated capabilities in development, scale-up and commercial manufacturing of biologics, bio betters, biosimilars and vaccines.

The Scheme was originally approved by the Board during October 2020. However, the Company did not proceed at that time and the current Scheme supersedes the original Scheme.

As at March 31, 2022, Stelis has over US$300 Million of capital invested, of which US$225 Million has been invested as equity from Strides and other investors of Stelis which includes global marquee investors such as TPG Growth, Think Investment, Route One, GMS, and the family office of Mr. Mankekar apart from the Promoters of Strides.

Appointed Date for the said Scheme is April 1, 2022, or such other date as the NCLT or such other competent authority may direct in relation to the amalgamation of Vivimed with Strides.

Company continues to evaluate options to unlock value of its investments in Stelis.

The Scheme is subject to approval of the shareholders and creditors of respective companies and approval of the Hon’ble National Company Law Tribunal, Mumbai

A detailed update on Stelis and its capabilities is part of the Annual Report.

6. Board of Directors and Key Managerial Personnel (KMP) of the Company

As at the date of this Report, the Board comprised of Seven Directors viz., Two Executive Directors and Five Non-Executive Directors of whom Four are Independent Directors, details of which are provided below:

• # Name Designation Executive Directors 1 Arun Kumar Executive Chairperson & Managing Director (KMP) 2 Badree Komandur Executive Director – Finance & Group CFO (KMP)

Non-Executive Directors

• 3 Deepak Vaidya Non-Executive Director & Chairperson of Stakeholders Relationship Committee 4 S Sridhar Independent Director & Chairperson of Audit Committee

• 5 Bharat Dhirajlal Shah Independent Director & Chairperson of Nomination & Remuneration Committee 6 Homi Rustam Khusrokhan Independent Director & Chairperson of Risk Management Committee 7 Dr. Kausalya Santhanam Independent Director & Chairperson of CSR Committee Company Secretary 8 Manjula Ramamurthy Company Secretary (KMP)

Changes in the Board of Directors & KMP of the Company during the year and to the date of this report is as under:

of the Company on January 14, 2022 through Postal Ballot.

• 2) Re-appointed Mr. Deepak Vaidya (DIN: 00337276), retiring director, as a non-executive director of the Company at the Annual General Meeting held on September 3, 2021.

• 1) Mr. Bharat Dhirajlal Shah (DIN: 00136969) was re-appointed as an Independent Director of the Company for a second term of three years commencing from June 15, 2021 upto June 14, 2024. Approval of the Shareholders of the Company was received on June 11, 2021 through Postal Ballot.

• 3) Dr. R Ananthanarayanan (DIN: 02231540), resigned from the post of Managing Director & CEO (KMP) of the Company effective from the close of business hours of March 31, 2022 to pursue his personal interests outside the organization.

Further, in terms of Regulation 17 (1A) of the SEBI Listing Regulations, approval for continuation of Mr. Shah as an Independent Director of the Company beyond the age of 75 years, was received from the Shareholders

Mr. Arun Kumar (DIN: 00084845), Founder and Chairperson (Non-Executive Director) of the Company, was appointed as the Executive Chairperson & Managing Director of the Company for a period of three years effective from April 7, 2022. Approval of the Shareholders of the Company is being sought through Postal Ballot for the said appointment. Mr. Arun Kumar is also one of the KMP of the Company effective April 7, 2022.

Director of the Company shall be placed before Shareholders of the Company at the ensuing AGM. Your Directors recommend his re-appointment on the Board of the Company.

Disclosures pertaining to Director being reappointed as required under the SEBI Listing Regulations and Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India is provided in the explanatory statement to the Notice convening the 31st AGM of the Company for reference of the Shareholders.

• 4) Mr. Homi Rustam Khusrokhan (DIN: 00005085) the Company for reference of the Shareholders. was re-appointed as an Independent Director of the Company for a second term of five years 7. Meetings of the Board and Board commencing from May 18, 2022 upto May 17, Committees 2027. Approval of the Shareholders of the Details of meetings of Board and Board Committees

• Company was received at the Extraordinary held during FY22 along with information relating

• General Meeting held on April 7, 2022.

Details of meetings of Board and Board Committees held during FY22 along with information relating to attendance of each of the directors/ committee members is provided in the Corporate Governance Report, which forms part of this Annual Report.

Retirement by Rotation & Re-appointment Proposal for re-appointment of Mr. Badree Komandur, retiring director, as Executive

8. Authorised Share Capital

Authorised Share Capital of the Company as at March 31, 2022 is 1,883,700,000/- divided into 188,370,000 equity shares of10 each.

Issued, Subscribed and Paid-up Share Capital

Issued, Subscribed and Paid-up Share Capital	Issued, Subscribed and Paid-up Share Capital	Issued, Subscribed and Paid-up Share Capital
Date Number of Shares Amount Remarks April 1, 2021 89,680,964 equity shares of face value10 each<br>896,809,640/- - March 31, 2022 89,790,214 equity shares of face value10 each<br>897,902,140/- Includes 109,250 equity shares issued pursuant to exercise of ESOP during the year. May 24, 2022 (i.e., as at date of this Report) 89,803,714 equity shares of face value10 each<br>898,037,140/- Includes 13,500 equity shares issued pursuant to exercise of ESOP post Balance Sheet Date. Convertible Securities April 26, 2022 2 Million equity warrants of face value10 each (Issue<br>Price:442/-per warrant) `20,000,000/- Convertible within a period of 18 months from the date of allotment of Warrants, in one or more tranches.
April 1, 2021 March 31, 2022 May 24, 2022 (i.e., as at date of this Report) Convertible Securities April 26, 2022	89,680,964 equity shares of face value10 each<br>896,809,640/- 89,790,214 equity shares of face value10 each<br>897,902,140/- 89,803,714 equity shares of face value10 each<br>898,037,140/- 2 Million equity warrants of face value10 each (Issue<br>Price:442/-per warrant) `20,000,000/-	- Includes 109,250 equity shares issued pursuant to exercise of ESOP during the year. Includes 13,500 equity shares issued pursuant to exercise of ESOP post Balance Sheet Date. Convertible within a period of 18 months from the date of allotment of Warrants, in one or more tranches.

9. Subsidiary, Joint Ventures and Associate Companies

Details of Subsidiaries, Joint Venture and Associate entities as at March 31, 2022 are provided herein below:

Nature of Relationship	India	Overseas	Total
Subsidiaries Joint Ventures Associates	2 - 3	32 1 5	34 1 8
Total	5	38	43

Annual Report 2021-22 | 51

50 |

Strides Pharma Science Limited

List of Subsidiaries, Joint Venture and Associate entities which have become or ceased to be part of the Group forms part of Form AOC-1, enclosed as Annexure-1 to this Report.

10. Accounts of Subsidiaries

In accordance with Section 129 (3) of the Companies Act, 2013, the Company has prepared a consolidated financial statement.

A statement containing salient features of the financial statements of the Company’s subsidiaries, joint ventures and associate companies as required in Form AOC 1 is enclosed as Annexure-1 to this Report.

11. Corporate Governance and Management Discussion and Analysis

• As per SEBI Listing Regulations, Corporate Governance Report along with the Auditor’s Certificate thereon, and the Management Discussion and Analysis Report forms part of this report.

12. Employee Stock Option Scheme

During the year under review, Company has one Stock Option Plan viz., Strides Employee Stock Option Plan 2016.

Statement giving detailed information on stock options granted to Employees under the Company’s Employee Stock Option Plan as required under Section 62 of the Companies Act, 2013 read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 and Regulation 14 of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 is enclosed as Annexure-2 to this Report and is also available at https://www. strides.com/investor-fnancial.html

13. Particulars of Employees

The statement containing particulars in terms of Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report and is appended herewith as Annexure-3 to this report.

As per the provisions of Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees is to be provided.

However, in terms of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report, excluding the aforesaid information, is being sent to the Shareholders of the Company and others entitled thereto.

The said information is available for inspection up to the date of the ensuing AGM. Any Shareholder interested in obtaining a copy thereof, may write to the Company Secretary in this regard.

14. Corporate Social Responsibility (CSR)

Strides CSR initiatives help address socioeconomic challenges in the realms of Health and Hygiene, Education, Employability and Disaster Management, which are projects in accordance with Schedule VII of the Companies Act, 2013.

During the year, the Company amended its CSR Policy to align with the provisions of the Companies Act, 2013. CSR Policy of the Company is available on its website and can be accessed at https://www.strides.com/corporate-CSR.html

A detailed report on the CSR activities undertaken during FY22 is enclosed as Annexure-4 to this Report.

15. Loans, Guarantees or Investments

Details of Loans granted, Guarantees given and Investments made during the year under review, covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Note no. 39 to the standalone financial statements in the Annual Report.

16. Contracts or Arrangements with Related Parties

All the transactions with related parties are in the ordinary course of business and at arm’s length basis. Further, there are no materially significant related party transactions made by the Company which may have potential conflict with the interests of the Company.

Information on transactions with related parties pursuant to section 134(3)(h) of the Companies Act 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is enclosed as Annexure-5 to this Report.

All the transactions with related parties are disclosed in Note no. 44 to the standalone financial statements in the Annual Report.

Policy for Governance of Related Party Transactions is available on the Company’s website at https:// - - www.strides.com/cg corporate policies.html

17. Auditors and Audit Reports

Secretarial Audit Report

M/s. Gopalakrishnaraj H H & Associates, Company Secretaries in Practice (Certificate of Practice No: 4152) is the Secretarial Auditor for the Company.

Secretarial Audit for FY22, inter-alia, included audit of compliance with the Companies Act, 2013, and the Rules made thereunder, SEBI Listing Regulations amongst others.

The Secretarial Audit Report does not contain any qualifications, observations or adverse remarks and is enclosed as Annexure-6 to this report.

Statutory Auditors

The Auditors Report given by M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration no. 101248W/ W-100022) for the financial year ended March 31, 2022, is enclosed along with the financial statements in the Annual Report. The Auditors Report for the year under review does not contain any qualifications, observations or adverse remarks.

M/s. B S R & Co. LLP, Chartered Accountants were appointed as Statutory Auditors of the Company at the AGM held on September 15, 2017 for a term of five (5) years from the conclusion of the 26th AGM till the conclusion of the 31st AGM of the Company.

The Audit Committee and the Board of Directors of the Company at their meeting held on May 24, 2022 approved the re-appointment of M/s. B S R & Co. LLP, Chartered Accountants as the Statutory Auditors for a second term of five (5) years i.e., from the conclusion of the 31st AGM till the conclusion of the 36th AGM of the Company to be held in the year 2027.

The necessary resolution seeking your approval for their re-appointment as statutory auditors are included in the notice of ensuing AGM along with necessary disclosures required under the Companies Act, 2013 and the SEBI Listing Regulations.

Internal Auditors

M/s. Grant Thornton Bharat LLP (formerly known as Grant Thornton India LLP) are the Internal Auditors of the Company.

During the year under review, Internal Auditors were satisfied with the management response on the observations and recommendations made by them during the course of their audit.

Cost Auditors

Pursuant to Section 148(1) of the Companies Act, 2013, Company is required to maintain cost records and accordingly such accounts and records are made and maintained.

Pursuant to Section 148(3) and the Companies (Cost Records and Audit) Rules, 2014, M/s. Rao, Murthy & Associates, Cost Accountants (Firm Registration No.: 000065), were appointed as the Cost Auditors of the Company for FY22.

18. Internal Financial Controls

The Company has in place adequate framework for Internal Financial Controls as required under Section 134(5)(e) of the Companies Act, 2013. During the year under review, such controls were tested and no material weaknesses in their design or operations were observed.

19. Risk Management

The Company has a risk management framework for identification and management of risks. In line with SEBI Listing Regulations, the Company has constituted a Risk Management Committee (RMC) comprising of members of the Board and Senior Management personnel. Composition of RMC is provided in the Corporate Governance Report, which forms part of this Report.

RMC is entrusted with the responsibility of overseeing strategic, operational and financial risks that the organisation faces, along with the adequacy of mitigation plans to address such risks.

Additional details relating to Risk Management are provided in the Management Discussion and Analysis report forming part of this Report.

20. Other Disclosures

a) Nature of Business of the Company

There has been no change in the nature of business of the Company during the year under review.

b) Deposits

The Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013. Accordingly, no disclosure or reporting is required in respect of details relating to deposits.

c)

Whistle Blower Policy

Pursuant to provisions of section 177(9) of the Companies Act, 2013 and SEBI Listing Regulations, the Company has a Whistle Blower Policy in place.

Annual Report 2021-22 | 53

52 |

Strides Pharma Science Limited

The said Policy provides appropriate avenues to the directors, employees and stakeholders of the Company to make protected disclosures in relations to the matters concerning the Company. The said Policy also establishes adequate mechanism to enable employees to report instances of leak or suspected leak of unpublished price sensitive information.

Audit Committee of the Company oversees implementation of the Whistle Blower Policy. During the year, Company has not received any protected disclosure.

Strides’ Whistle Blower Policy is available on the Company’s website and can be accessed at https://www.strides.com/cg-corporatepolicies.html

d) Policy on Directors Appointment and Remuneration (Strides Nomination and Remuneration Policy)

The policy of the Company on Directors’ appointment and remuneration, including the criteria for determining qualifications, positive attributes, independence of a director and other matters, as required under Section 178 of the Companies Act, 2013 is available on the Company’s website and can be accessed at https://www.strides.com/cg-corporatepolicies.html

e) Disclosure on compliance with Secretarial Standards

The Company complies with all applicable mandatory secretarial standards issued by the Institute of Company Secretaries of India.

f) Reporting of Fraud

No frauds were reported by the Auditors as specified under Section 143 of the Companies Act, 2013 for the Financial Year ended March 31, 2022.

g) Significant and material orders passed by the Regulators or Courts

There were no significant and material orders passed by the Regulators/ Courts that would impact the going concern status of the Company and its future operations.

h) Annual Return of the Company

Pursuant to Section 92 of the Companies Act, 2013 and Rules made thereunder, Annual Returns filed by the Company for the prior financial years has been uploaded on the website of the Company and can be accessed at https://www.strides.com/cg-annual-return. html

Draft Annual Return for FY22, is also uploaded in the above section. Upon filing the same with Registrar of Companies, filed return shall be uploaded.

• i) Conservation of Energy, R&D, Technology Absorption and Foreign Exchange Earnings/ Outgo

Details of Energy Conversation, R&D, Technology Absorption and Foreign Exchange Earnings/ Outgo are enclosed as Annexure-7 to this Report.

j) Policy on prevention of Sexual Harassment at workplace

Company has in place a Policy on Prevention of Sexual Harassment in line with the requirements of The Sexual Harassment of Women at the workplace (Prevention, Prohibition & Redressal) Act, 2013 (PoSH Act). Strides has adopted a gender-neutral policy.

In terms of the PoSH Act, Company has also constituted Internal Complaints Committee (ICC) to redress complaints received on sexual harassment. Adequate workshops and awareness programmes against sexual harassment are conducted across the organisation.

A disclosure relating to PoSH complaint is provided in the Corporate Governance Report, which forms part of this Report.

k) General

• a) During the year, the Company has not made any application under the Insolvency and Bankruptcy Code, 2016. Further, there is no Corporate Insolvency Resolution Process initiated under the IBC Code.

• b) During the year, there was no one-time settlement done with the Banks or Financial Institutions.

21. Declaration by Independent Directors

In accordance with Section 149(7) of the Companies Act, 2013 and Regulation 25(8) of the SEBI Listing Regulations, each independent director has confirmed to the Company that they continue to meet the criteria of independence as laid down in Section 149 (6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI Listing Regulations.

In the opinion of the Board, Independent Directors of the Company possess necessary expertise, integrity and experience in their respective fields.

Further, all the IDs have confirmed that they have registered with the databank of Independent Directors maintained by Indian Institute of Corporate Affairs in accordance with the provisions of Section 150 of the Companies Act, 2013.

made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

22. Board Evaluation

• (c) directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

Evaluation of all the Directors, Committees, Chairperson of the Board, and the Board as a whole was conducted for the year. Evaluation process has been explained in the Corporate Governance Report, which is part of this report.

• (d) directors have prepared the annual accounts of the Company on a going concern basis;

23. Material changes and commitments, if any

• (e) directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;

There were no material changes and commitments affecting the financial position of the Company which occurred between the end of the Financial Year to which this financial statement relates and the date of this report.

• (f) directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

24. Directors’ Responsibility Statement

• Pursuant to the requirement under section 134 (3) (c) of the Companies Act, 2013 with respect to the Directors’ Responsibility Statement, the Board of Directors of Company state that:

25. Acknowledgement

Your Directors take this opportunity to thank all its stakeholders, employees, medical professionals, business partners, government & other statutory bodies, banks, financial institutions, analysts and members for their continued support and valuable cooperation.

• (a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

• (b) directors have selected such accounting policies and applied them consistently and

For and on behalf of the Board of Directors

Badree Komandur

Arun Kumar

Date: May 24, 2022 Executive Chairperson & Managing Director Place: Bengaluru DIN: 00084845

Executive Director – Finance & Group CFO DIN: 07803242

Annual Report 2021-22 | 55

54 |

Strides Pharma Science Limited

|In Million|**SI.**<br>**No.**<br>**Name of the Subsidiary**<br>**Country of**<br>**incorporation**<br>**Reporting**<br>**Period**<br>**Reporting**<br>**Currency**<br>**Exchange**<br>**Rate**<br>**(a)**<br>**(b)**<br>**(c)**<br>**(d)**<br>**(e)**<br>**(f)**<br>**(g)**<br>**(h)**<br>**(i)**<br>**(j)**<br>**(k)**<br>**Capital**<br>**(Includes**<br>**Monies**<br>**pending**<br>**allotment)**<br>**Reserves**<br>**Total**<br>**Assets**<br>**Total**<br>**liabilities**<br>**(other than**<br>**Capital &**<br>**reserves)**<br>**Investments**<br>**other than in**<br>**subsidiaries**<br>**Turnover Proft before**<br>**taxation**<br>**Provision**<br>**for**<br>**taxation**<br>**Proft after**<br>**taxation**<br>**Proposed**<br>**dividend**<br>**Share-**<br>**holding (%)**|<br>**Share-**<br>**holding (%)**|<br>100.00%<br> <br>51.76%<br> <br>100.00%<br> <br>100.00%<br> <br>100.00%<br> <br>0.00%<br> <br>0.00%<br> <br>97.94%<br> <br>70.00%<br> <br>70.00%<br> <br>70.00%<br> <br>0.00%<br> <br>0.00%<br> <br>0.00%<br> <br>100.00%<br> <br>100.00%<br> <br>0.00%<br> <br>100.00%<br> <br>100.00%<br> <br>100.00%<br> <br>100.00%<br>In Million|SI.
No.
Name of the Subsidiary
Country of
incorporation
Reporting
Period
Reporting
Currency
Exchange
Rate
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
Capital
(Includes
Monies
pending
allotment)
Reserves
Total
Assets
Total
liabilities
(other than
Capital &
reserves)
Investments
other than in
subsidiaries
Turnover Proft before
taxation
Provision
for
taxation
Proft after
taxation
Proposed
dividend
Share-
holding (%)|22
Strides LifeSciences
Limited
Nigeria
31-03-2022
NGN
0.18
0.53
(234.17)
24.32
257.96
-
22.91
(56.77)
0.14
(56.91)
-
100.00%
23
Strides Pharma (Cyprus)
Limited
Cyprus
31-03-2022
EUR
84.03
0.24
1,333.96 1,548.96
214.77
- 1,238.50
221.92
6.02
215.90
-
100.00%
24
Strides Pharma (SA) Pty
Ltd
South Africa
31-03-2022
ZAR
5.19
-
(40.32)
254.53
294.85
-
226.28
(22.24)
-
(22.24)
-
60.00%
25
Strides Netherlands B.V.^ Netherland
31-12-2021
EUR
84.03
1.69
16.30
195.15
177.17
-
173.87
13.89
(0.52)
14.41
-
100.00%
26
Strides Nordic ApS,
Denmark
31-03-2022
DKK
11.29
0.45
(11.82)
278.21
289.57
-
228.88
(31.78)
(5.18)
(26.60)
-
100.00%
27
Strides Pharma Science
Pty Ltd
Australia
31-03-2022
AUD
56.80
103.21
(63.86)
41.27
1.92
-
-
(23.58)
-
(23.58)
-
100.00%
28
Strides Pharma Global
(UK) Limited
UK
31-03-2022
GBP
99.74
4,324.47 (2,810.92)
1,524.14
10.58
29.38
-
(236.47)
-
(236.47)
-
100.00%
29
Strides Pharma Asia Pte.
Ltd.
Singapore
31-03-2022
USD
75.93 13,312.76
1,773.21 15,715.28
629.31
-
0.48
(0.01)
-
(0.01)
-
100.00%
30
Strides Pharma Canada
Inc.^
Canada
31-12-2021
CAD
60.74
476.22
(86.80)
418.89
29.47
-
125.64
4.29
-
4.29
-
100.00%
31
Strides Pharma Global Pte.
Limited
Singapore
31-03-2022
USD
75.93 15,402.91 (1,309.43) 31,970.62 17,877.15
82.02 10,946.02 (5,179.64)
(238.82) (4,940.82)
-
100.00%
32
Strides Pharma Inc.
USA
31-03-2022
USD
75.93
1,530.86
4,860.60 17,774.60 11,383.14
18.45 9,782.58
(984.77)
(280.47)
(704.30)
-
100.00%
33
Strides Pharma
International Limited
Cyprus
31-03-2022
USD
75.93
33.26
1,101.35 1,254.17
119.56
-
-
70.78
8.86
61.92
-
100.00%
34
Strides Pharma UK Ltd.
UK
31-03-2022
GBP
99.74
1.44
733.87 3,382.01
2,646.70
- 1,936.67
(266.97)
(32.12)
(234.85)
-
100.00%
35
Strides Pharma Latina,
SA de CV
Mexico
31-03-2022
MXN
3.80
42.87
(24.67)
24.97
6.77
-
2.04
(3.32)
-
(3.32)
-
80.00%
36
Strides Vivimed Pte. Ltd # Singapore
31-03-2022
USD
75.93
-
-
-
-
-
-
(0.35)
-
(0.35)
-
0.00%
37
SVADS Holdings SA
Switzerland
31-03-2022
CHF
82.28
466.59
(29.77)
634.95
198.13
-
-
(52.10)
8.05
(60.15)
-
100.00%
38
Trinity Pharma (Pty) Ltd.
South Africa
31-03-2022
ZAR
5.19
0.01
324.93 1,353.05
1,028.11
- 1,994.14
119.00
35.89
83.11
-
51.76%
39
Universal Corporation
Limited
Kenya
31-03-2022
KES
0.66
120.28
608.74 2,363.67
1,634.63
- 1,804.48
0.89
8.11
(7.22)
-
51.00%
40
Vensun Pharmaceuticals
Inc.
USA
31-03-2022
USD
75.93
4,618.82 (5,826.92) (1,208.11)
-
-
-
(2.20)
-
(2.20)
-
100.00%
41
Vivimed Life Sciences
Private Limited
India
31-03-2022
INR
1.00
282.67
202.31 1,649.32
1,164.33
- 1,240.93
(147.29)
(38.48)
(108.81)
-
100.00%|Notes
Divested effective September 9, 2021
Divested effective September 13, 2021
# Merged with Strides Pharma Global Pte. Limited, Singapore effective June 1, 2021
Liquidated into Strides Pharma Canada Inc., effective October 12, 2021
@Wholly owned Subsidiary effective June 30, 2021.
$ Ceased to exist effective November 30, 2021
^ Numbers provided are for the period April 1, 2021 to March 31, 2022|
|---|---|---|---|---|---|---|
|||
Proposed
dividend|-

-

-
-
-
-

-
-
-
-
-

-

-

-
-
-

-
-

-
-

-||||
|||

Proft after
taxation|
(0.04)

3.19

31.31

(0.29)

(0.98)

(0.31)

1.36

(22.32)

(3.40)

(162.81)

(301.40)

-

0.10

12.60

(2.72)

(121.84)

0.70

(0.24)

1.34

(479.28)

0.28||||
|||
Provision
for
taxation|-

0.01

11.95
-
-
-

-
-
-
0.14
0.03

-

-

-
-
-

-
-

-
-

-||||
|||Proft before
taxation|
(0.04)
3.20

43.26

(0.29)

(0.98)

(0.31)

1.36

(22.32)

(3.40)

(162.67)

(301.37)

-

0.10

12.60

(2.72)

(121.84)

0.70

(0.24)

1.34

(479.28)

0.28||||
|||

Turnover |
-

(0.32)

899.54

-

-

-

-

510.29

7.54

802.51

373.82

-

-

-

-

119.04

-

-

-

-

-||||
|||



Investments
other than in
subsidiaries|
-

-

-

-
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

664.03

-||||
|||
Total
liabilities
(other than
Capital &
reserves)|
-

1.87

334.01
0.20

(0.14)

0.01

0.01

297.69

36.85

1,938.58

2,294.63

-

-

-

0.86

209.49

-

0.26

0.44

3,348.22

3.17||||
|||Total
Assets|0.58

1.87

495.19
(0.68)
0.71
-
-

474.35
13.98
1,907.35
661.57

-

-

-

42.43
74.45
-
0.07
93.42
8,108.85
0.63||||
|||



Reserves|
(203.74)

-

159.46

(1.87)

(148.12)

(13.12)

(14.03)

54.31

(24.97)

(132.44)
(1,650.71)

-

-

-

41.56

(438.77)

(39.78)

(0.28)

(145.83)

(83.32)

(2.78)||||
|||
Capital
(Includes
Monies
pending
allotment)|
204.33

-

1.72

0.99

148.97

13.12

14.03

122.35

2.10

101.20

17.65

-

-

-

0.01

303.72

39.78

0.08

238.81

4,843.96

0.25||||
||||75.93
5.19
1.00
17.98
75.93
0.26
1.46
84.03
84.03
82.28
84.03
56.80
56.03
60.74
99.74
60.74
75.93
75.93
17.98
75.93
75.93||||
||||USD
ZAR
INR
MYR
USD
LKR
PHP
EUR
EUR
CHF
EUR
AUD
SGD
CAD
GBP
CAD
USD
USD
MYR
USD
USD||||
||||31-03-2022
31-03-2022

31-03-2022

31-03-2022

31-03-2022

31-03-2022

31-03-2022

31-12-2021

31-12-2021

31-12-2021

31-12-2021

31-03-2022

31-03-2022

31-03-2022

31-03-2022

31-12-2021

31-03-2022

31-03-2022

31-03-2022

31-03-2022

31-03-2022
||||
||||USA
South Africa

India

Malaysia

Singapore

Sri Lanka

Philippines

Italy

Germany

Switzerland

Germany

Singapore

Singapore

Canada

UK

Canada

USA

USA

Malaysia

UK

Cyprus
||||
||||Altima Innvovations Inc.
Apollo Life Sciences
Holdings Proprietary
Limited

Arco Lab Private Limited

Arrow Life Sciences
(Malaysia) SDN BHD

Arrow Pharma Pte Ltd

Arrow Pharma (Private)
Limited

Arrow Pharma Life Inc. **

Beltapharm S.p.A ^

Eris Pharma GmbH^

Fairmed Healthcare AG^

Fairmed Healthcare
GmbH^

Generic Partners R&D
Pte. Ltd. #

Generic Partners
(International) Pte.
Limited #

Generic Partners
(Canada) Inc.

Generic Partners UK
Limited

Pharmapar Inc.@^

Shasun Pharma Solutions
Inc.$ Stabilis Pharma Inc.

Stelis Biopharma
(Malaysia) SDN. BHD.

Strides Arcolab
International Limited

Strides CIS Limited
||||
||||1
2



3

4


5

6


7

8

9

10

11


12


13



14


15


16

17


18

19


20


21
||||

Annual Report 2021-22 | 57

56 |

Strides Pharma Science Limited

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

PART B - ASSOCIATES/ JOINT VENTURE

SI. No. Name of Associate / Joint Venture	Stelis Biopharma Limited, India	Aponia Laboratories Inc, USA	Strides Global Consumer Healthcare Limited, UK	Sihuan Strides (HK), Limited
1 Latest audited Balance Sheet Date 2 Shares of Associate/ Joint Venture held by the Company on the year end No. Amount of Investment in Associate/ Joint Venture Extent of Holding % 3 Description of how there is signifcant infuence 4 Reason why the Associate/ Joint Venture is not consolidated 5 Networth attributable to Shareholding as per latest auditied Balance Sheet 6 Proft/ (Loss) for the year Considered in Consolidation Not considered in Consolidation	31stMarch 2021 739,288 equity shares 4,886.68 Million<br>47.90%<br>Shareholding<br>Not Applicable<br>2,878.26 Million (577.74) Million<br>Nil|31stMarch 2021<br>3,734,074<br>preference shares<br>Nil<br>24.00%<br>Shareholding<br>and board<br>representation<br>Not Applicable<br>21.87 Million (4.16) Million<br>Nil|31stMarch 2021<br>21,833,626 shares<br>1,223.72 Million 53.64% voting rights Shareholding and board representation Not Applicable 1517.02 Million<br>(222.11) Million Nil	31stDecember 2020 2,450,000 shares 131.02 Million<br> 49.00%<br>Shareholding<br>and board<br>representation<br>Not Applicable<br>170.22 Million (`8.74) Million Nil

Notes:

• 1 Subsidiaries of Associates (4 entities) are not disclosed above.

• 2 Regional Bio Equivalence Centre S.C., Ethiopia, a step-down associate company not disclosed in ‘Part B - Associates/ Joint Ventures’ as investment in this entity is completely written off.

For and on behalf of Board of Directors of Strides Pharma Science Limited

Arun Kumar Badree Komandur Manjula Ramamurthy Executive Chairperson & Executive Director – Company Secretary Date: May 24, 2022 Managing Director Finance & Group CFO ACS Membership no.: A30515 Place: Bengaluru DIN: 00084845 DIN: 07803242

Annexure 2

Details of Strides Employee Stock Options pursuant to SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and Companies Act, 2013

During the year under review, Company had one ESOP scheme viz., Strides ESOP Plan 2016.

With respect to the above, please find below the details of Employee Stock Options pursuant to SEBI (Share Based Employee Benefits) Regulations, 2014 and the Companies Act, 2013 as at 31 March 2022.

Description

Strides ESOP Plan 2016

A Disclosure of confrmation of any material change in the scheme(s) and is in compliance with the regulations B Disclosures in terms of the accounting standards prescribed by the Central Government in terms of section 133 of the Companies Act, 2013 (18 of 2013) including the ‘Guidance note on accounting for employee share-based payments’ issued in this regard from time to time C Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed in accordance with ‘Accounting Standard 20 -Earnings Per Share’ issued by Central Government or any other relevant accounting standards as prescribed from time to time D Details relating to ESOP 1) Total options approved under the Scheme 2) Date of Members’ approval 3) Vesting requirements 4) Pricing formula 5) Maximum term of options granted 6) Source of shares (primary, secondary or combination) 7) Variation of terms of options E Method used to account for ESOP F 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 should have been recognised if it had used the fair value of the option, shall be disclosed. The impact of this difference on profts and on EPS of the Company shall also be disclosed. G Option movement during the year (i) Outstanding options as at April 1, 2021 (ii) Options granted during the year under review (iii) Options lapsed during the year under review (iv) Options vested during the year under review (v) Options exercised during the year under review (vi) Total number of shares arising as a result of exercise of options (vii) Money realised by exercise of options (viii) Total number of options in force at the end of the period ending March 31, 2022 (ix) Available for further grant H Weighted average exercise price I Weighted average fair value of options J Employee-wise details of options granted during the year under review: (i) Senior Managerial Personnel/ KeyManagerial Personnel

None during the year Please refer to Note No. 42 of the Standalone Financial Statements Continuing Operations 20.07<br>Discontinued Operations0.00 Total Operations 20.07<br>**30,00,000 Options**<br>April 21, 2016<br>3-year scheme<br>Vesting schedule:<br>Year 1: 20%<br>Year 2: 30%<br>Year 3: 50%<br>Decided by the Compensation Committee<br>from time to time, which shall be, not less<br>than 75% of the market price of the shares on<br>the date of grant of option.<br>Three years from the date of initial grant<br>under the scheme, subject to vesting schedule<br>Primary<br>None<br>Fair Value Method<br>Compensation Cost has been accounted under<br>fair value.<br>2,45,900 Options<br>67,500 Options<br>55,400 Options<br>2,06,600 Options<br>1,22,750 Options<br>1,22,750 Options<br>3,61,87,000/- 1,35,250 Options 25,90,700 Options 393.98<br>236.29 Refer Note 1 below

Annual Report 2021-22 | 59

58 |

Strides Pharma Science Limited

Description

Strides ESOP Plan 2016 Refer Note 2 below

• (ii) Any other employee who received grant in any one year of option amounts to 5% or more of options during that year

• (iii) Identified employees who were granted options, during any one year, equal or exceeding 1% of the issued capital (excluding outstanding warrants and conversion) of the Company at the time of grant

NONE

• K A description of the method and significant assumptions used during the year to estimate the fair value of options, including the following weighted average information:

• The Fair Value of options granted were estimated on the grant date using the Black Scholes method. Details of assumptions used in the estimation of fair value as at grant date for options granted during the previous year are given below:

|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|Scheme
ESOP 2016
LOT 1
LOT 2
LOT 3
LOT 4
LOT 5
LOT 6
LOT 7
LOT 8
LOT 9
LOT 10
LOT 11
Grant date
June 15,
2016
May 18,
2017
Aug 14,
2017
Aug 8,
2018
Jan 29,
2019
July 29,
2019
Sep 20,
2019
Oct 25,
2019
May 20,
2020
May 26,
2021
Aug 31,
2021
Exercise Price (in)<br>841.25<br>792.45<br>656.10<br>301.00<br>378.40<br>265.20<br>269.70<br>257.65<br>311.00<br>599.00<br>455.80<br>Repriced on April 24, 2018* (in)
711.85
670.56
555.18
NA
NA
NA
NA
NA
NA
NA
NA
Risk free interest rate
7.52%
6.73%
6.52%
7.78%
7.53%
6.44%
6.78%
6.66%
6.041%
6.023%
6.223%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Expected annual volatility
of shares
69.47%
42.86%
38.96%
34.30%
32.65%
27.28%
32.67%
35.76%
36.52%
39.06%
38.26%
Expected dividend/ yield
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
20%
The price of the underlying
share in market at the time of
option grant (in)<br>1128.94<br>1037.51<br>896.72<br>414.85<br>504.50<br>352.75<br>360.10<br>373.00<br>414.40<br>798.60<br>607.70|**Scheme**<br>**ESOP 2016**<br>**LOT 1**<br>**LOT 2**<br>**LOT 3**<br>**LOT 4**<br>**LOT 5**<br>**LOT 6**<br>**LOT 7**<br>**LOT 8**<br>**LOT 9**<br>**LOT 10**<br>**LOT 11**<br>Grant date<br>June 15,<br>2016<br>May 18,<br>2017<br>Aug 14,<br>2017<br>Aug 8,<br>2018<br>Jan 29,<br>2019<br>July 29,<br>2019<br>Sep 20,<br>2019<br>Oct 25,<br>2019<br>May 20,<br>2020<br>May 26,<br>2021<br>Aug 31,<br>2021<br>Exercise Price (in)
841.25
792.45
656.10
301.00
378.40
265.20
269.70
257.65
311.00
599.00
455.80
Repriced on April 24, 2018 (in)<br>711.85<br>670.56<br>555.18<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>NA<br>Risk free interest rate<br>7.52%<br>6.73%<br>6.52%<br>7.78%<br>7.53%<br>6.44%<br>6.78%<br>6.66%<br>6.041%<br>6.023%<br>6.223%<br>Expected life<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>3 years<br>Expected annual volatility<br>of shares<br>69.47%<br>42.86%<br>38.96%<br>34.30%<br>32.65%<br>27.28%<br>32.67%<br>35.76%<br>36.52%<br>39.06%<br>38.26%<br>Expected dividend/ yield<br>40%<br>40%<br>40%<br>40%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>20%<br>The price of the underlying<br>share in market at the time of<br>option grant (in)
1128.94
1037.51
896.72
414.85
504.50
352.75
360.10
373.00
414.40
798.60
607.70|
|---|---|---|---|---|---|---|---|---|---|---|---|
||LOT 1|LOT 2|LOT 3|LOT 4|LOT 5|LOT 6|LOT 7|LOT 8|LOT 9|LOT 10|LOT 11|
|Grant date|June 15,
2016|
May 18,
2017|
Aug 14,
2017|
Aug 8,
2018|
Jan 29,
2019|
July 29,
2019|
Sep 20,
2019|
Oct 25,
2019|
May 20,
2020|
May 26,
2021|
Aug 31,
2021|
|Exercise Price (in)|841.25|792.45|656.10|301.00|378.40|265.20|269.70|257.65|311.00|599.00|455.80| |Repriced on April 24, 2018* (in)|711.85|670.56|555.18|NA|NA|NA|NA|NA|NA|NA|NA|
|Risk free interest rate|7.52%|6.73%|6.52%|7.78%|7.53%|6.44%|6.78%|6.66%|6.041%|6.023%|6.223%|
|Expected life|3 years|3 years|3 years|3 years|3 years|3 years|3 years|3 years|3 years|3 years|3 years|
|Expected annual volatility
of shares|69.47%|42.86%|38.96%|34.30%|32.65%|27.28%|32.67%|35.76%|36.52%|39.06%|38.26%|
|Expected dividend/ yield|40%|40%|40%|40%|20%|20%|20%|20%|20%|20%|20%|
|The price of the underlying
share in market at the time of
option grant (in`)|1128.94|1037.51|896.72|414.85|504.50|352.75|360.10|373.00|414.40|798.60|607.70|

Volatility is calculated from the method of historical volatility, based on the three years data of closing market prices of the Company’s shares as per the data recorded by NSE and the average number of trading days during that period. It is the percentage co-efficient within the option pricing formulae.

• Pursuant to de-merger of Commodity API business of the Company to Solara Active Pharma Sciences Limited and in terms of the Composite Scheme, exercise price of outstanding stock options held by existing/ retained employees were repriced to adjust effect of de-merger on the stock price.

Note 1: Employee wise details of options granted during the year under review:

|Name of Employee|Designation|Category|No. of options|No. of options|Exercise price
(in**)**|**Exercise price**<br>**(in**)|Scheme name
ESOP 2016
ESOP 2016|Scheme name
ESOP 2016
ESOP 2016|
|---|---|---|---|---|---|---|---|---|
|1
Dr. Raviraj Pillai
2
Dr. Tanaya Mishra|Chief Scientifc Offcer
Chief Human Resource
Offcer(CHRO)|SMP
SMP||25,000
25,000||599.00
455.80|||
||||||||||
|Name of Employee|Designation|Category||No. of options||Exercise price
(in`)||Scheme name|
|1
Surendra Kumar
2
Dr. Vellaian Karuppiah|Executive VP & Global Head
Manufacturing
VP & Global Manufacturing|} Other Employee||10,000
7,500||455.80
455.80||ESOP 2016
ESOP 2016|

Kindly note that this report is also available at http://www.strides.com/investor-fnancial.html

For and on behalf of the Board of Directors

Badree Komandur Executive Director – Finance & Group CFO DIN: 07803242

Arun Kumar

Executive Chairperson & Date: May 24, 2022 Managing Director Place: Bengaluru DIN: 00084845

Annexure 3

Statement of Disclosure of Remuneration under Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

• a. Ratio of remuneration of each director to the median remuneration of the employees of the Company for the financial year ending March 31, 2022

As at March 31, 2022, Strides’ Board comprises of 8 Directors - viz., 2 Executive Directors, 4 Independent Directors and 2 Non-Executive Directors.

Non-Executive & Independent Directors receive sitting fees of `100,000/- for attending each meeting of the Board and Audit Committee.

Further, Non-Executive Directors and Independent Directors are also eligible for commission not exceeding 1% of the net profits of the Company for such financial year, computed in the manner provided in Section 198 of the Companies Act, 2013.

Median remuneration for the period under review is approx. `5,54,093 per annum.

One-time payment made to employees for individual projects, if any, and Full & Final Settlement made at the time of separation are excluded while considering the median remuneration.

Ratio of remuneration of the Executive Directors to the median remuneration of the employees of the Company for the financial year ended March 31, 2022 is as under:

Name of Director	Designation	Ratio of remuneration to the median remuneration
Dr. R Ananthanarayanan Badree Komandur	Managing Director & CEO Executive Director - Finance & GroupCFO	173 79

• b. Percentage increase in the median remuneration of employees during the financial year ended March 31, 2022 was 6.56%.

Percentage increase in remuneration of Executive Directors, Chief Executive Officer, Chief Financial Officer, Company Secretary during the financial year ended March 31, 2022 is as under:

Name of Director/ KMP	Designation	% increase in remuneration in FY 2022
Dr. R Ananthanarayanan Badree Komandur Manjula Ramamurthy	Managing Director & CEO Executive Director - Finance & Group CFO CompanySecretary	0% 0% 30.53%

• c. Company had 2,345 permanent employees (including Union employees) on the rolls of Company as at March 31, 2022 on a standalone basis.

• d. Average percentile increase made in the salaries of employees other than the managerial personnel in the last financial year was around 8.63%.

Company affirms that remuneration to the Directors and Key Managerial Personnel is as per the remuneration policy of the Company.

For and on behalf of the Board of Directors

Badree Komandur Executive Director – Finance & Group CFO DIN: 07803242

Arun Kumar Date: May 24, 2022 Executive Chairperson & Managing Director Place: Bengaluru DIN: 00084845

Annual Report 2021-22 | 61

60 |

Strides Pharma Science Limited

Annexure 4

Corporate Social Responsibility Report FY 2021-22

[As prescribed under the amended rules of the Companies (Corporate Social Responsibility Policy) Rules, 2014 vide MCA notification dated January 22, 2021]

• c) Outline projects and geographies for undertaking CSR initiatives;

1. Brief Outline on CSR Policy of the Company

• d) Provide framework for selection, implementation, management and monitoring of CSR initiatives.

At Strides, community development programmes are integral to our sustainability strategy. The Company strives to go beyond compliance and create sustainable value for communities. Strides CSR initiatives help address socioeconomic challenges in the realms of Health and Hygiene, Education, Employability and Disaster Management.

Focus Areas of Engagement

Strides CSR initiatives help address socioeconomic challenges in the realms of Health and Hygiene, Education, Employability and Disaster Management.

The Policy encompasses our philosophy towards CSR and lays down guidelines and mechanisms for undertaking socially beneficial programmes for welfare and sustainable development of the community at large.

Projects to promote the wellbeing of the society has been developed post a comprehensive Community Need Analysis.

CSR Projects Implementation

Objectives of the Policy

• CSR activities directly or through Strides Foundation, a Trust established by the Company as a not-for-profit organisation or such other Implementation Agencies as approved by the CSR Committee of the Company.

• a) Serve as the principal guiding document for Strides CSR initiatives;

• b) Describe core themes and related impact areas as per Schedule VII;

2. Composition of the CSR Committee:

Composition of the CSR Committee:	Composition of the CSR Committee:	Composition of the CSR Committee:	Composition of the CSR Committee:	Composition of the CSR Committee:
# Name of the Director Designation/ Nature of Directorship Date of Appointment as Member of the Committee Number of meetings of CSR Committee held during theyear Number of meetings of CSR Committee attended during the year 1 Dr. Kausalya Santhanam Chairperson/ Independent Director Jan 9, 2020 2 2 2 Homi Rustam Khusrokhan Member/ Independent Director May 18, 2017 2 2 3 Arun Kumar Member/ Executive Director & Chairperson May 23, 2014 2 2 4 Deepak Vaidya Member/ Non-Executive Director May 23, 2014 2 2
1 Dr. Kausalya Santhanam 2 Homi Rustam Khusrokhan 3 Arun Kumar 4 Deepak Vaidya	Chairperson/ Independent Director Member/ Independent Director Member/ Executive Director & Chairperson Member/ Non-Executive Director	Jan 9, 2020 May 18, 2017 May 23, 2014 May 23, 2014	2 2 2 2	2 2 2 2

3. Web-link relating to Composition of CSR 6 Average net profit of the company as per Committee, CSR Policy and CSR Projects approved section 135(5): 1,20,14,75,031 by the Board are disclosed on the Company’s website on https://www.strides.com/corporateCSR.html **7** (a) Two percent of average net profit2,40,29,500.62 of the company as per section 135(5)

4. Details of Impact assessment of CSR projects (b) Surplus arising out of the 0 carried out in pursuance of sub-rule (3) of rule 8 CSR projects or programmes of the Companies (Corporate Social Responsibility or activities of the previous Policy) Rules, 2014: Not Applicable financial years (c) Amount required to be set off for 0

5. Details of the amount available for set off in the financial year, if any pursuance of sub-rule (3) of rule 7 of the Companies (d) Total CSR obligation for the `2,40,29,500.62 (Corporate Social Responsibility Policy) Rules, 2014 financial year (7a + 7b - 7c)

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: NIL

==> picture [305 x 683] intentionally omitted <==

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

None CSR Registration Number CSR00006315 -
Date of transfer Date of transfer
Agency
Through Implementing
Mode of Implementation -
Name Strides Foundation
Amount. None Amount. -
Mode of Implementa tion - Direct (Yes/No).
). <br>to Unspent CSR Account for the project as per 32,54,785 No 32,54,785<br>Amount transferred Section 135(6) (in<br>-<br>).
) None (in )
Amount transferred to any fund specified under Amount transferred to any fund specified under
Schedule VII as per second proviso to section 135(5). Amount spent in the current financial Year 11,67,540 11,67,540 Schedule VII as per second proviso to section 135(5).
Name of the Fund ).(in Name of the Fund<br>Amount allocated<br>Amount Unspent (in Amount Unspent (in<br>for the project 4,50,00,000 4,50,00,000<br>-<br>Date of transfer 29-Apr-22 Project Duration 3 years Date of transfer<br>District Anekal, Bengaluru<br>project.<br>Location of the -<br>Amount. 32,54,785 State Karnataka Amount.<br>CSR Account as per section 135(6). CSR Account as per section 135(6).<br>Total Amount transferred to Unspent Total Amount transferred to Unspent<br>Local area (Yes/ No). Yes<br>2,07,76,215.00<br>
Item from the list of activities in Schedule VII to the Act. (ii) Promoting Education
Total Amount spent:
) Name of the Project. Strides’ Model Goverment School - Vidyadhama TOTAL )
(a) CSR amount spent or unspent for the financial year: (b) Details of CSR amount spent against ongoing projects for the financial year: Total Amount Spent for the FY (in 11,67,540 Sl. No 1 (c) Details of CSR amount spent against Other Than Ongoing Projects for the financial year: Total Amount Spent for the FY (in 1,96,08,675
----- End of picture text -----

Annual Report 2021-22 | 63

62 |

Strides Pharma Science Limited

|Sl.
|No
Name of the Project.
Item from the
list of activities in Schedule VII
to the Act.
Local
area
(Yes/No).
Location of the project.
Amount
spent for the
Project
Mode of
Implementa
tion - Direct
(Yes/ No)
Mode of Implementation -
Through Implementing
Agency
State
District
Name
CSR Registration
Number|HEALTH & HYGIENE|1
Arogyadhama
(i)
promoting health care including
preventive health care
Yes
Karnataka
Anekal,
Bengaluru
50,00,000
No
Strides
Foundation
CSR00006315|2
Atmospheric Water Generator
(i)
making available safe drinking
water
Yes
Karnataka
Anekal,
Bengaluru
26,19,400
No
Strides
Foundation
CSR00006315|3
Sponsorship to Siva Sakthi Homes
(Food and Medicine to the intellectually
challenged)
(i)
promoting health care including
preventive health care
Yes
Karnataka
Bengaluru
Urban
24,00,000
No
Strides
Foundation
CSR00006315|
4
Infrastructural support to Government PHC
(i)
promoting health care including
preventive health care
Yes
Puducherry
Puducherry
2,95,590
No
Strides
Foundation
CSR00006315|5
Awareness programme on usage of plastics
(iv)
Ensuring environment
sustainability
Yes
Puducherry
Puducherry
52,000
No
Strides
Foundation
CSR00006315|CSR SPEND HEALTH & HYGIENE CATEGORY - TOTAL 1,03,66,990|EDUCATION|6
Leadership Adoption Program (LeAPS) designed for
people transformation and customised for young
students of government schools
(ii)
Promoting Education
Yes
Karnataka
Bengaluru
Rural
12,72,206
No
Strides
Foundation
CSR00006315|7
Education support - Tata Institute of Social
Sciences (TISS)
(ii)
Promoting Education
Yes
Puducherry
Puducherry
25,44,939
Yes
Direct by
Company
NA|
8
Infrastructural support to Dr. Ambedkar
Government law college
(ii)
Promoting Education
Yes
Puducherry
Puducherry
54,280
No
Strides
Foundation
CSR00006315|CSR SPEND EDUCATION CATEGORY - TOTAL
38,71,425|EMPLOYABILITY|9
Employability development programme with
SVRCC
(ii)
Employment enhancing
vocational skills
Yes
Puducherry
Puducherry
13,50,000
No
Strides
Foundation
CSR00006315|10
Skill development programme for women - Self
help group
(ii)
Enhancing vocational skills for
women
Yes
Karnataka
Bengaluru
Rural
3,73,191
No
Strides
Foundation
CSR00006315|CSR SPEND EMPLOYABILITY CATEGORY - TOTAL
17,23,191|DISASTER MANAGEMENT|11
Covid Response / Pandemic Support
Oxygen on Wheels Bus to Haragadde PHC (in
collaboration with KSRTC), Laptop/ Desktop &
printer to Taluk offce for COVID related data
management
(xii)
Disaster management
Yes
Karnataka
Bengaluru
Rural
5,92,932
No
Strides
Foundation
CSR00006315|12
Covid Response / Pandemic Support
1) COVID care centre - 30 bed in collaboration
with Puducherry Govt. and Solara
2) Public audio system for Govt. PHC
3) Packed food distribution
(xii)
Disaster management
Yes
Puducherry
Puducherry
30,54,137
No
Strides
Foundation
CSR00006315|
CSR SPEND DISASTER MANAGMENT CATEGORY - TOTAL
36,47,069|CSR SPEND - GRAND TOTAL
1,96,08,675|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|

(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	(d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f) Total amount spent for the Financial Year(8b+8c+8d+8e)	- - 2,07,76,215	- - 2,07,76,215
(g) Excess amount for set off, if any : The Company does not intend to utilize this									provision
Sl. No Particular										Amount(in`)
(i) Two percent of average net proft of the company as per section 135(5) (ii) Total amount spent for the Financial Year (iii) Excess/Short amount spent for the fnancial year [(ii)-(i)] (iv) Surplus arising out of the CSR projects or programmes or activities of the previous fnancial years, if any (v) Amount available for set off in succeedingfnancialyears[(iii)-(iv)]										2,40,29,500.62 2,07,76,215.00 -32,53,285.62 - -
(a) Details of Unspent CSR amount for the preceding three fnancial years: NA Sl. No Preceding Financial Year. Amount transferred to Unspent CSR Account under section 135 (6) (in**)**<br>**Amount spent**<br>**in the reporting**<br>**Financial Year**<br>**(in**). Amount transferred to any fund specifed under Schedule VII asper section 135(6), if any. Amount remaining to be spent in succeeding fnancial years. (in**)**<br>**Name of the**<br>**Fund**<br>**Amount (in**). Date of transfer. - - - - - - - - (b) Details of CSR amount spent in the fnancial year for ongoing projects of the preceding fnancial year(s): NA Sl. No Project ID Name of the Project Financial Year in which the project commenced Total Amount allocated for the Project (in**)**<br>**Amount**<br>**spent on the**<br>**project in**<br>**the reporting**<br>**Financial Year**<br>**(in**). Cumulative amount spent at the end of reporting Financial Year. (in`) Status of the project - Completed / Ongoing - - - - - - - -
Sl. No Preceding Financial Year.		Amount transferred to Unspent CSR Account under section 135 (6) (in**)**||**Amount spent**<br>**in the reporting**<br>**Financial Year**<br>**(in**).		Amount transferred to any fund specifed under Schedule VII asper section 135(6), if any.				Amount remaining to be spent in succeeding fnancial years. (in`)
						Name of the Fund Amount (in`). Date of transfer.
- -		-		-		- - -				-
(b) Details of CSR amount spent fnancial year(s): NA
Sl. No Project ID	Name of the Project			Financial Year in which the project commenced	Total Amount allocated for the Project (in**)**||**Amount**<br>**spent on the**<br>**project in**<br>**the reporting**<br>**Financial Year**<br>**(in**).	Cumulative amount spent at the end of reporting Financial Year. (in`)		Status of the project - Completed / Ongoing
- -	-			-	-		-	-		-

9

• 10 In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year: (asset-wise details).

• a) Date of Creation or acquisition of the capital asset (s): b) Amount of CSR spent for creation or acquisition of capital assets: c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.:

• d) Provide details of the capital asset (s) created or acquired (including complete address and location of the capital asset):

Not Applicable }

11 Specify the reason(s), if the company has failed to spend two per cent of the average

net profit as per section 135(5):

The Company had planned spend for the School Project during the financial year. However, due to administrative reasons, the project could not be executed as planned.

Unspent amount of `32,54,785/- pertaining to this FY, is part of the Ongoing Project and has been transferred to the ‘Unspend CSR Account’ of the Company in terms of Section 135 (6).

For and on behalf of the Board of Directors

Dr. Kausalya Santhanam

Dr. Kausalya Santhanam Arun Kumar Independent Director & Executive Chairperson & Managing Director Date: May 24, 2022 Chairperson of the CSR Committee DIN: 00084845 Place: Bengaluru DIN: 06999168

Annual Report 2021-22 | 65

64 |

Strides Pharma Science Limited

Annexure 5

Form AOC 2

(Particulars of Contracts/ Arrangements with Related Parties referred in Sec 188 (1) of the Companies Act, 2013 & SEBI Listing Regulations)

(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies) Rules, 2014)

• 1) Details of contracts or arrangements or transactions not at arm’s length basis: All the contracts/ arrangements/ transactions entered into by the Company with related parties during FY22 were at arms’ length.

• 2) Details of material contracts or arrangements or transactions at arms’ length basis for the year ended March 31, 2022, are as under:

|#
Name of the
Related Party
Nature of
Relationship
Nature of contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms of
the contracts/
arrangements/
transactions
Monetary
Value
(**in Million)**<br>**Date of**<br>**approval by the**<br>**Board/ Audit**<br>**Committee**<br>**Amount**<br>**paid as**<br>**advances,**<br>**if any**<br>1<br>Strides<br>Pharma UK<br>Ltd., UK<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services and<br>Guarantee<br>Commission<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>2,393.55<br>Appropriate<br>approvals<br>have been<br>taken for the<br>transactions<br>Nil<br>2<br>Strides<br>Pharma<br>Global Pte.<br>Limited,<br>Singapore<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services, Purchase<br>of materials/<br>services,<br>Guarantee<br>Commission<br>Income, Sale of IPs,<br>Purchase of Assets,<br>Lease Rentals,<br>Support Service<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>11,822.35<br>Nil|**#**<br>**Name of the**<br>**Related Party**<br>**Nature of**<br>**Relationship**<br>**Nature of contracts/**<br>**arrangements/**<br>**transactions**<br>**Duration of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Salient terms of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Monetary**<br>**Value**<br>**(**in Million)
Date of
approval by the
Board/ Audit
Committee
Amount
paid as
advances,
if any
1
Strides
Pharma UK
Ltd., UK
Wholly owned
Subsidiary
Sale of materials/
services and
Guarantee
Commission
Income
Ongoing
Based on Transfer
Pricing guidelines
2,393.55
Appropriate
approvals
have been
taken for the
transactions
Nil
2
Strides
Pharma
Global Pte.
Limited,
Singapore
Wholly owned
Subsidiary
Sale of materials/
services, Purchase
of materials/
services,
Guarantee
Commission
Income, Sale of IPs,
Purchase of Assets,
Lease Rentals,
Support Service
Income
Ongoing
Based on Transfer
Pricing guidelines
11,822.35
Nil|#
Name of the
Related Party
Nature of
Relationship
Nature of contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms of
the contracts/
arrangements/
transactions
Monetary
Value
(**in Million)**<br>**Date of**<br>**approval by the**<br>**Board/ Audit**<br>**Committee**<br>**Amount**<br>**paid as**<br>**advances,**<br>**if any**<br>1<br>Strides<br>Pharma UK<br>Ltd., UK<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services and<br>Guarantee<br>Commission<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>2,393.55<br>Appropriate<br>approvals<br>have been<br>taken for the<br>transactions<br>Nil<br>2<br>Strides<br>Pharma<br>Global Pte.<br>Limited,<br>Singapore<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services, Purchase<br>of materials/<br>services,<br>Guarantee<br>Commission<br>Income, Sale of IPs,<br>Purchase of Assets,<br>Lease Rentals,<br>Support Service<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>11,822.35<br>Nil|**#**<br>**Name of the**<br>**Related Party**<br>**Nature of**<br>**Relationship**<br>**Nature of contracts/**<br>**arrangements/**<br>**transactions**<br>**Duration of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Salient terms of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Monetary**<br>**Value**<br>**(**in Million)
Date of
approval by the
Board/ Audit
Committee
Amount
paid as
advances,
if any
1
Strides
Pharma UK
Ltd., UK
Wholly owned
Subsidiary
Sale of materials/
services and
Guarantee
Commission
Income
Ongoing
Based on Transfer
Pricing guidelines
2,393.55
Appropriate
approvals
have been
taken for the
transactions
Nil
2
Strides
Pharma
Global Pte.
Limited,
Singapore
Wholly owned
Subsidiary
Sale of materials/
services, Purchase
of materials/
services,
Guarantee
Commission
Income, Sale of IPs,
Purchase of Assets,
Lease Rentals,
Support Service
Income
Ongoing
Based on Transfer
Pricing guidelines
11,822.35
Nil|#
Name of the
Related Party
Nature of
Relationship
Nature of contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms of
the contracts/
arrangements/
transactions
Monetary
Value
(**in Million)**<br>**Date of**<br>**approval by the**<br>**Board/ Audit**<br>**Committee**<br>**Amount**<br>**paid as**<br>**advances,**<br>**if any**<br>1<br>Strides<br>Pharma UK<br>Ltd., UK<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services and<br>Guarantee<br>Commission<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>2,393.55<br>Appropriate<br>approvals<br>have been<br>taken for the<br>transactions<br>Nil<br>2<br>Strides<br>Pharma<br>Global Pte.<br>Limited,<br>Singapore<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services, Purchase<br>of materials/<br>services,<br>Guarantee<br>Commission<br>Income, Sale of IPs,<br>Purchase of Assets,<br>Lease Rentals,<br>Support Service<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>11,822.35<br>Nil|**#**<br>**Name of the**<br>**Related Party**<br>**Nature of**<br>**Relationship**<br>**Nature of contracts/**<br>**arrangements/**<br>**transactions**<br>**Duration of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Salient terms of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Monetary**<br>**Value**<br>**(**in Million)
Date of
approval by the
Board/ Audit
Committee
Amount
paid as
advances,
if any
1
Strides
Pharma UK
Ltd., UK
Wholly owned
Subsidiary
Sale of materials/
services and
Guarantee
Commission
Income
Ongoing
Based on Transfer
Pricing guidelines
2,393.55
Appropriate
approvals
have been
taken for the
transactions
Nil
2
Strides
Pharma
Global Pte.
Limited,
Singapore
Wholly owned
Subsidiary
Sale of materials/
services, Purchase
of materials/
services,
Guarantee
Commission
Income, Sale of IPs,
Purchase of Assets,
Lease Rentals,
Support Service
Income
Ongoing
Based on Transfer
Pricing guidelines
11,822.35
Nil|#
Name of the
Related Party
Nature of
Relationship
Nature of contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms of
the contracts/
arrangements/
transactions
Monetary
Value
(**in Million)**<br>**Date of**<br>**approval by the**<br>**Board/ Audit**<br>**Committee**<br>**Amount**<br>**paid as**<br>**advances,**<br>**if any**<br>1<br>Strides<br>Pharma UK<br>Ltd., UK<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services and<br>Guarantee<br>Commission<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>2,393.55<br>Appropriate<br>approvals<br>have been<br>taken for the<br>transactions<br>Nil<br>2<br>Strides<br>Pharma<br>Global Pte.<br>Limited,<br>Singapore<br>Wholly owned<br>Subsidiary<br>Sale of materials/<br>services, Purchase<br>of materials/<br>services,<br>Guarantee<br>Commission<br>Income, Sale of IPs,<br>Purchase of Assets,<br>Lease Rentals,<br>Support Service<br>Income<br>Ongoing<br>Based on Transfer<br>Pricing guidelines<br>11,822.35<br>Nil|**#**<br>**Name of the**<br>**Related Party**<br>**Nature of**<br>**Relationship**<br>**Nature of contracts/**<br>**arrangements/**<br>**transactions**<br>**Duration of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Salient terms of**<br>**the contracts/**<br>**arrangements/**<br>**transactions**<br>**Monetary**<br>**Value**<br>**(**in Million)
Date of
approval by the
Board/ Audit
Committee
Amount
paid as
advances,
if any
1
Strides
Pharma UK
Ltd., UK
Wholly owned
Subsidiary
Sale of materials/
services and
Guarantee
Commission
Income
Ongoing
Based on Transfer
Pricing guidelines
2,393.55
Appropriate
approvals
have been
taken for the
transactions
Nil
2
Strides
Pharma
Global Pte.
Limited,
Singapore
Wholly owned
Subsidiary
Sale of materials/
services, Purchase
of materials/
services,
Guarantee
Commission
Income, Sale of IPs,
Purchase of Assets,
Lease Rentals,
Support Service
Income
Ongoing
Based on Transfer
Pricing guidelines
11,822.35
Nil|
|---|---|---|---|---|---|---|---|
|1
Strides
Pharma UK
Ltd., UK|Wholly owned
Subsidiary|Sale of materials/
services and
Guarantee
Commission
Income|Ongoing|Based on Transfer
Pricing guidelines|2,393.55|Appropriate
approvals
have been
taken for the
transactions|Nil|
|2
Strides
Pharma
Global Pte.
Limited,
Singapore|Wholly owned
Subsidiary|Sale of materials/
services, Purchase
of materials/
services,
Guarantee
Commission
Income, Sale of IPs,
Purchase of Assets,
Lease Rentals,
Support Service
Income|

Ongoing|Based on Transfer
Pricing guidelines|11,822.35||
Nil|

Note: Above data excludes reimbursement of expenses incurred by/ incurred on behalf of related party (Refer Note no. 44 of the Standalone Financial Statements).

For and on behalf of the Board of Directors

Badree Komandur

Arun Kumar Badree Komandur Executive Chairperson & Executive Director – Finance & Group CFO Date: May 24, 2022 Managing Director DIN: 07803242 Place: Bengaluru DIN: 00084845

Annexure 6

Form No. MR-3

Secretarial Audit Report

For the financial year ended 31st March 2022

• [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

• 3) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

To,

The Members, Strides Pharma Science Limited CIN: L24230MH1990PLC057062

• 4) Foreign Exchange Management Act, 1999 (FEMA) and the rules and regulations made thereunder to the extent of Foreign Direct Investment and Overseas Direct Investment; and

Regd. Office:

201, ‘Devavrata’, Sector 17 Vashi, Navi Mumbai – 400 703 Maharashtra

• 5) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (SEBI Act):

Corporate Office:

Strides House, Bilekahalli Bannerghatta Road Bengaluru – 560 076 Karnataka

• a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

• b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by ‘Strides Pharma Science Limited’ (‘the Company’).

• c) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;

Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing our opinion thereon.

• d) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March 2022 complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter.

• e) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines etc., mentioned above.

We further report that, there were no events/ actions in pursuance of the following requiring compliance thereof by the Company during the Audit period.

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March 2022 according to the provisions of:

• 1) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

• 2) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; and

• 1) The Companies Act, 2013 (the Act) and the rules made thereunder;

• 3) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018.

• 2) The Securities Contracts (Regulation) Act, 1956 (SCRA) and the rules made thereunder;

Annual Report 2021-22 | 67

66 |

Strides Pharma Science Limited

We have also examined compliance with the applicable clauses of the following:

• 1) Secretarial Standards issued by the Institute of Company Secretaries of India; and

• 2) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations) and the Listing Agreements entered into by the Company with the National Stock Exchange of India Limited and BSE Limited.

We further state that, during the period under review and based on our verification of the records maintained by the Company and also on review of compliance reports/ statements by the respective department heads/ Chief Financial Officer/ Company Secretary taken on record by the Board of Directors of the Company, in our opinion, adequate systems and processes and control mechanism commensurate to the size and nature of the Company’s business exist in the Company to monitor and ensure compliances with applicable laws, industry specific laws, labour laws, intellectual property laws and environmental laws. We have not reviewed the applicable financial laws, direct and indirect tax laws since the same have been subject to review and audit by the Statutory Auditors of the Company.

We, further report that:

• 1) As at 31st March 2022, the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

• 2) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance and in few meetings with shorter notice as per the Secretarial Standard-1, 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 meeting.

• 3) Decisions of the Board were unanimous and there were no dissenting views by any Members of the Board during the period under review.

We further report that during the audit period:

• 1) the Company has not issued any equity or preference shares/ debentures/ sweat equity except those equity shares issued to employees of the Company under applicable ESOP Plan;

2) On June 11, 2021, the Company received Members approval through Postal Ballot for re-appointment of Mr. Bharat Dhirajlal Shah (DIN: 00136969) as an Independent Director of the Company for a second term of three years commencing from June 15, 2021 upto June 14, 2024.

• 3) At the Annual General Meeting held on September 3, 2021, the Company received Members approval for:

• a) Adoption of Audited Financial Statements for the Financial Year ended March 31, 2021

• b) Declaration of Dividend for the Financial Year ended March 31, 2021

• c) Re-appointment of Mr. Deepak Vaidya, retiring director, as a Non-Executive Director

• d) Remuneration payable to M/s. Rao, Murthy & Associates, Cost Auditors of the Company for FY 2020-21

• 4) On January 14, 2022, the Company received Members approval through Postal Ballot for:

• a) Continuation of Mr. Bharat Dhirajlal Shah (DIN: 00136969) as an Independent Director of the Company in terms of Regulation 17(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015;

• b) Alteration of Articles of Association of the Company; and

• c) Re-classification of few Promoters/ Promoter Group of the Company from ‘Promoters/ Promoter Group’ category to ‘Public’ category in terms of Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

• 5) the Company has not undertaken any foreign technical collaborations.

For Gopalakrishnaraj H H & Associates

Company Secretaries

Gopalakrishnaraj H H

Proprietor FCS: 5654; CP: 4152 Place: Bengaluru PR: 945/2020 Date: 24/05/2022

UDIN: F005654D000371998

Annexure to Secretarial Audit

To,

The Members,

Strides Pharma Science Limited

CIN: L24230MH1990PLC057062

Regd. Office:

201, ‘Devavrata’, Sector 17 Vashi, Navi Mumbai – 400 703 Maharashtra

Corporate Office:

Strides House, Bilekahalli Bannerghatta Road Bangalore – 560 076

Karnataka

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We 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. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.

4. Wherever required, we 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. Our 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.

For Gopalakrishnaraj H H & Associates

Company Secretaries

Gopalakrishnaraj H H

Proprietor FCS: 5654; CP: 4152 Place: Bengaluru PR: 945/2020 Date: 24/05/2022 UDIN: F005654D000371998

Annual Report 2021-22 | 69

68 |

Strides Pharma Science Limited

Annexure 7

Particulars on Energy Conservation and Technology Absorption for FY22

• c) GCV 700kg shell preparation vessel installed to meet additional soft gel capsules business volumes;

A. Conservation of Energy

i) Steps taken and impact on conservation of energy

• d) Auto duct cleaning system from GlattGermany installed in Glatt FBP to have recipe driven auto duct washing system for the improved compliance

• a) 1,00,903 KL of wastewater treated by Waste Water Treatment Plant and reused for garden/ lawn inside the plant premises across all sites in India;

• Oral Dosage Facility – Puducherry

• b) 21,060 KL of water recycled from steam condensate and reused for steam generation;

• a) Sejong vantix P-580D Model Tablet compression machine from Korea installed to meet increased demand of tablet volume;

• c) 16,138 KL rainwater collected and recharged to improve the ground water table in and around the plant;

• b) Integrated Blister Packing line from ACG - BQS Model installed and qualified to meet additional Blister packing volume;

• d) Energy efficient LED lamps are used to replace existing TFL/CFL/SVL to conserve energy, almost all lighting fixtures in all Strides locations were already replaced with LED lamps and energy saving projected in previous years is being sustained.

• c) Wurster coater from ACG Pam – 800ltrs capacity commissioned to meet new business volume

• Oral Dosage facility – Chandapura

ii) Steps taken by the Company for utilising alternative sources of energy

• a) Cadpress-IV – Cadmach Tablet compression machine commissioned to meet increased business demand for Australia market with improved process controls;

• a) 12,000 Tonne of CO2 emissions reduction achieved by utilisation of 17 Mio units imported energy from solar power generators;

• b) 100% Online Checkweigher from ACGPAM integrated with A120 automatic capsule filling machine to meet increased HGC filling volume with improved compliance;

• b) 3,01,654 kWh renewable energy generated inhouse

B) Technology absorption

i) Efforts made towards technology absorption are:

  - c) New 160 KVA UPS with inbuilt redundancy from Schneider Electric installed to cater uninterrupted power supply to critical loads of QC and manufacturing equipment;

• Oral Dosage Facility – Bengaluru

• a) Fette – 3200i Tablet compression machine from Germany installed to meet increased demand of Bi-layer tablets of TLD & EET volumes;

• d) Serialization and aggregation equipment installed and qualified complying to DGFT guidelines in all 6 Pkg. lines.

• b) IMA PG Cartonator commissioned for Ointment tubes/jars installed to automate secondary packaging activity of Ointment filling;

• Oral Dosage facility – Alathur

Expenditure on R&D

a) 4 KL RO water system installed and qualified to meet additional process water and purifed water requirements. ase of import technology (imported ng the last year), the year of Import			(`in Million)
	Particulars	March 31, 2022	March 31, 2021
	Capital Revenue	168.36 799.12	84.23 990.23
	Total	967.48	1,074.46

(ii) In case of import technology (imported during the last year), the year of Import whether the technology has been fully absorbed:

Total Foreign Exchange Earned and Used

• Fette – 3200i Tablet compression machine from Germany installed to meet increased demand of Bi-layer tablets of TLD & EET volumes in KRSG;

==> picture [223 x 15] intentionally omitted <==

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

(` in Million)
----- End of picture text -----

Particulars	Year ended March 31, 2022
Foreign exchange earned in terms of actual infows Foreign exchange outgo in terms of actual outfows	13,995.70 2,870.87

• Sejong vantix P-580D Model Tablet compression machine from Korea installed to meet increased demand of tablet volume in Puducherry

For and on behalf of the Board of Directors

Arun Kumar	Badree Komandur
Executive Chairperson & Managing Director	Executive Director – Finance & Group CFO
DIN: 00084845	DIN: 07803242

Date: May 24, 2022 Place: Bengaluru

Annual Report 2021-22 | 71

70 |

Strides Pharma Science Limited

Corporate Governance Report

In compliance with provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the Company submits the Corporate Governance Report for FY22.

1. Corporate Governance at Strides

At Strides, we are guided by our values Integrity, Collaboration and Efficiency (“ICE”) in everything we do.

==> picture [199 x 288] intentionally omitted <==

We will do everything

We will work We will do everything together, to deliver quicker, understanding and better results supporting each other

We will follow the right practices and do the right thing

Our values are the foundation on which we build our business and culture. They inculcate trust and a strong relationship with all our stakeholders and help us execute our commitment to the 3 Ps – our Patients who depend on us; our People who are our biggest assets; and our Purpose of making a difference in health care and society.

We want to continue to be a leading Indian pharmaceutical company with a reputation for the highest quality and integrity. Integrity continues to be our guiding principle in everyday conduct across the facets. Being a global and multidisciplinary organisation, we want to harness the power of great teamwork. This cross-functional collaboration is what we call the power of ‘One Strides.’ It binds us together. We will remain a globally competitive company by optimising our capacity and being the best in what we do. Being right the first time and harnessing our resources to deliver the best results is an attribute enshrined in our third value, efficiency.

At Strides, we are committed to compliance with the best standards of Corporate Governance.

Non-Executive Directors, of which Four are Independent Directors (including one Woman Independent Director).

2. Board of Directors

The Company is headed by an effective Board of Directors (‘the Board’), which is entrusted to guide and oversee the management and performance of the Company with the ultimate responsibility to protect the interests of shareholders, employees and the other stakeholders.

Changes in Board Composition during the period April 1, 2021 to the date of this report is as under:

1. Mr. Bharat Shah (DIN: 00136969) was re-appointed as an Independent Director of the Company effective June 15, 2021 for a second term of three years;

We believe that our Board is well diversified and has an appropriate mix of Executive and Non-Executive Directors. The Board possesses an optimal mix of professionalism, knowledge and experience. Key Board skills/ expertise/ competence of the Board of Directors is provided in section 2.4 below.

1. Dr. R Ananthanarayanan (DIN: 02231540), who was the Managing Director & Chief Executive Officer of the Company, resigned effective March 31, 2022;

2. Mr. Arun Kumar (DIN: 00084845), Founder and NonExecutive Chairperson of the Board was appointed as the Executive Chairperson & Managing Director effective April 7, 2022 for a period of three years; and;

3. Profile of Strides’ Directors is available on Company’s website at https://www.strides.com/corporate-board. html

2.1. Board Composition

1. Mr. Homi Rustam Khusrokhan (DIN: 00005085) was re-appointed as an Independent Director of the Company effective May 18, 2022 for a second term of five years

2. As at the date of this Report, Strides’ Board comprises of Seven Directors – Two Executive Directors and Five

Board and Committee Composition as at March 31, 2022 is as under:

Name of the Director	Category	Board	Audit Committee	Nomination and Remuneration Committee	Stakeholder Relationship Committee	CSR Committee	Risk Management Committee
Arun Kumar Deepak Vaidya S Sridhar Bharat Shah Homi Rustam Khusrokhan Dr. Kausalya Santhanam Dr. R Ananthanarayanan Badree Komandur Other Members of RMC Sormistha Ghosh Christoph Funke Umesh Kale Anjani Kumar	Non-Executive Director Non-Executive Director Independent Director Independent Director Independent Director Independent Director Managing Director and CEO Executive Director – Finance and Group CFO Group General Counsel and Chief Risk Offcer (GGC & CRO) Chief Operations Offcer (COO) Chief Quality Offcer (CQO) Chief Information Offcer(CIO)	       - - - -	-     - - - - - -	-     - - - - - -	   - -  - - - - -	  - -  - - - - - -	-    -      

• Chairperson of the Board/ Committee |  - Member

• *Dr. Ananth resigned from the Board and its committees effective March 31, 2022. Effective April 7, 2022, Mr. Arun Kumar assumed the role of Executive Chairperson & Managing Director of the Company.

Details of each member of the Board as at the date of this Report is attached as Annexure CG 1 .

Annual Report 2021-22 | 73

72 |

Strides Pharma Science Limited

2.2. Appointment, Re-appointment & Retirement by Rotation of Directors

Board has adopted provisions with respect to appointment and tenure of Directors consistent with the Companies Act, 2013 and the Listing Regulations.

a) Appointment of Mr. Arun Kumar as Executive Chairperson & Managing Director

The Company has sought Shareholders’ approval for appointment of Mr. Arun Kumar (DIN: 00084845) as Executive Chairperson & Managing Director of the Company for a term of three years commencing from April 7, 2022, through Postal Ballot dated May 24, 2022. Results of Postal Ballot is expected to be available by July 8, 2022.

b) Retirement by Rotation and Reappointment of Mr. Badree Komandur

Proposal for re-appointment of Mr. Badree Komandur (DIN: 07803242), retiring director, who has offered himself for re-appointment, shall be placed before Shareholders of the Company at the ensuing Annual General Meeting (AGM). Your Directors recommend his re-appointment to the Board.

2.3. Induction & Familiarisation programmes for Board Members

Your Company has an orientation/ familiarisation programme for induction of its Directors, which aims to provide insights about the Company and its business operations.

Immediately on appointment, each Director undergoes a comprehensive orientation process and are provided with an induction kit which interalia includes business profile & group structure of the Company, Board and Audit Governance process and Corporate policies of the Company amongst others.

Further, during quarterly meetings, Board Members also meet with business heads and functional heads of the Company, during which comprehensive presentations are made on various aspects such as business models/ strategies, risk mitigation/ minimisation procedures, recent trends in pharma industry, and regulatory regime impacting the Company. These meetings also facilitate Board Members to provide their inputs and suggestions on the above matters directly to the business and functional heads.

Policy on familiarisation programme for non-executive directors is uploaded on the website of the Company at https://strides.com/pdf/Committees%20of%20the%20 Board/2022/strides_familiarisation_programme_for_ non-executive_directors.pdf.

2.4. Key Board skills/ expertise/ competence of the Board of Directors

Board of Directors are collectively responsible for selection of a Member on the Board. The Nomination and Remuneration Committee of the Company follows a defined criterion for identifying, screening, recruiting

and recommending candidates for election as a Director on the Board.

These skills/ competencies are broad-based, encompassing several areas of expertise/experience and each Director may possess varied combinations of skills/ experience within the described set of parameters as listed herein.

	Area of Expertise Management and Leadership Experience	Remarks Strong management and leadership experience including in areas of business development, strategic planning and mergers and acquisitions, ideally with major corporates with successful
		multinational operations in
		manufacturing, international business, scientifc research and development, senior level government experience and academic background.

Functional and Knowledge and skills in accounting Managerial Experience and finance, business judgment, general management practices and processes, crisis response and management, industry knowledge, macro-economic perspectives, human resources, labour laws, international markets, sales and marketing, and risk management. Pharma Business Understanding of global business dynamics, across various geographical markets, industry verticals and regulatory jurisdictions.

Corporate Governance Developing governance practices, serving the best interest of all stakeholders, maintaining board and management accountability, building long term effective stakeholder engagements and driving corporate ethics and values.

Personal Values Personal characteristics matching the company’s values. Vis., Integrity, Collaboration and Efficiency.

Mapping of Directors’ skills/ expertise/ competence in line with the above criteria has been provided as part of Directors’ profile, which is enclosed as Annexure CG 1 .

2.5. Nomination and Remuneration Policy for the Board of Directors, KMP and SMP

The Company has formulated a Nomination and Remuneration Policy for the Board of Directors, Key Managerial Personnel (KMP) and Senior Management Personnel (SMP) of the Company which is uploaded on

the website of the Company at https://strides.com/pdf/ Committees%20of%20the%20Board/2022/strides’nrc_ policy_July_2022.pdf.

2.6. Board Evaluation

Board evaluation framework at Strides has been designed in compliance with the requirements under the Companies Act, 2013 and the Listing Regulations,

the remuneration approved by shareholders of the

and in accordance with the Guidance Note on Board Evaluation issued by SEBI in January 2017.

Company.

|In line with the Board Evaluation policy of the
Company, annual performance evaluation for FY22 was
conducted for all Board Members as well as for working
of the Board and its Committees.
Evaluation was led by the Chairperson of the
Nomination and Remuneration Committee and was
conducted through questionnaire designed with
qualitative parameters and feedback, based on ratings.
2.7. Details of Remuneration paid to Directors
2.7.1. Remuneration to Non-Executive Directors
The Non-Executive Directors (NEDs) are entitled
to receive remuneration by way of sitting fees,
reimbursement of expenses for participation in the
Board/Committee meetings and commission, payout
details of which are mentioned hereunder:


Sitting fee
Total|In line with the Board Evaluation policy of the
Company, annual performance evaluation for FY22 was
conducted for all Board Members as well as for working
of the Board and its Committees.
Evaluation was led by the Chairperson of the
Nomination and Remuneration Committee and was
conducted through questionnaire designed with
qualitative parameters and feedback, based on ratings.
2.7. Details of Remuneration paid to Directors
2.7.1. Remuneration to Non-Executive Directors
The Non-Executive Directors (NEDs) are entitled
to receive remuneration by way of sitting fees,
reimbursement of expenses for participation in the
Board/Committee meetings and commission, payout
details of which are mentioned hereunder:


Sitting fee
Total|In line with the Board Evaluation policy of the
Company, annual performance evaluation for FY22 was
conducted for all Board Members as well as for working
of the Board and its Committees.
Evaluation was led by the Chairperson of the
Nomination and Remuneration Committee and was
conducted through questionnaire designed with
qualitative parameters and feedback, based on ratings.
2.7. Details of Remuneration paid to Directors
2.7.1. Remuneration to Non-Executive Directors
The Non-Executive Directors (NEDs) are entitled
to receive remuneration by way of sitting fees,
reimbursement of expenses for participation in the
Board/Committee meetings and commission, payout
details of which are mentioned hereunder:


Sitting fee
Total|Details of remuneration
Directors during FY22 is a|paid/ payable to Executive
s under:
Amount in|paid/ payable to Executive<br>s under:<br>Amount in|
|---|---|---|---|---|---|
||||Particulars|Dr. R
Ananthanarayanan|Badree
Komandur|
||||Gross Salary
Salary
(including Company’s
contribution towards PF)
Value of perquisites u/s 17(2)
Income-tax Act, 1961
Others
Annual Bonus/ performance
linked payouts (relates to
FY21 paid in FY22)
Payout linked to Phantom
Unitsgranted for FY 20-21|60,000,000
45,500
28,800,000
30,000,000|38,254,799
292,500
7,500,000
-|
||||TOTAL|118,845,500|46,047,299|
||Sitting fee|Total||||
|#
Name of the Directors|
(**)**|**(**)||||
|1
Arun Kumar
2
Deepak Vaidya
3
S Sridhar
4
Bharat Shah
5
Homi Rustam
Khusrokhan
6
Dr. Kausalya Santhanam|8,00,000/-
13,00,000/-
13,00,000/-
12,00,000/-
13,00,000/-
13,00,000/-|8,00,000/-
13,00,000/-
13,00,000/-
12,00,000/-
13,00,000/-
13,00,000/-||||
|Total|72,00,000/-|72,00,000/-||||

Details of remuneration paid/ payable to Executive Directors during FY22 is as under:

|#|Name of the Directors|Sitting fee
(**)**|**Total**<br>**(**)|
|---|---|---|---|
|1|Arun Kumar|8,00,000/-|8,00,000/-|
|2|Deepak Vaidya|13,00,000/-|13,00,000/-|
|3|S Sridhar|13,00,000/-|13,00,000/-|
|4
5|Bharat Shah
Homi Rustam|12,00,000/-
13,00,000/-|12,00,000/-
13,00,000/-|
||Khusrokhan|||
|6|Dr. Kausalya Santhanam
Total|13,00,000/-
72,00,000/-|13,00,000/-
72,00,000/-|

Note:

• 1)

• The above payments does not include accruals related to variable pay and other performance linked payouts for FY 2021-22 considered in the accounts of the Company for FY 2021-22

• 2)

• Perquisite tax paid by Badree towards stock options acquired during the year is ` 1,14,075/-

• 3)

• Dr. Ananth resigned from the Board effective March 31, 2022

Further, considering Company’s performance in FY22, Board of Directors did not recommend payment of Commission to the Non-Executive Directors of the Company.

2.7.4. Service Contracts, Notice Period and Severance

Fees relating to Executive Directors

During FY22, the Company had two Executive Directors, viz., Dr. R Ananthanarayanan - Managing Director & Chief Executive Officer and Mr. Badree Komandur - Executive Director – Finance & Group CFO

2.7.2. Details of remuneration paid to the Independent Directors on the Board of Material Subsidiaries during FY22

In line with Regulation 24 of the Listing Regulations, the company has nominated Dr. Kausalya Santhanam, one of its Independent Directors on the Board of its material subsidiaries.

a)

Service Contract, Notice Period and Severance fees relating to Dr. R Ananth

Dr. Ananth tendered his resignation on March 29, 2022, which was effective March 31, 2022 and was accepted by the Board of Directors of the Company.

Sitting fees paid by each of the entities to Dr. Kausalya Santhanam is US$1,500 per quarter as under:

The Company has not paid any severance fees/ notice pay to Dr. Ananth owing to his resignation other than leave encashment as per Company policy and continuation of Insurance for Dr. Ananth and his family for a period of six months from April 1, 2022.

Sitting fees paid by each of the entities to Dr. Kausalya Santhanam is US$1,500 per quarter as under:	Sitting fees paid by each of the entities to Dr. Kausalya Santhanam is US$1,500 per quarter as under:
# Name of the entity Total Amount paid for FY22 1. Strides Pharma Asia Pte. Ltd, Singapore US$6,000/- 2. Strides Pharma Global Pte. Limited, Singapore US$6,000/- 3. Strides Pharma Inc, USA US$6,000/- 4. Strides Arcolab International Limited, UK US$6,000/-
1. Strides Pharma Asia Pte. Ltd, Singapore 2. Strides Pharma Global Pte. Limited, Singapore 3. Strides Pharma Inc, USA 4. Strides Arcolab International Limited, UK	US$6,000/- US$6,000/- US$6,000/- US$6,000/-

Further, as per the terms of his appointment, joining bonus of ` 14.19 crores paid to Dr. Ananth shall be recovered by the Company.

b)

Service Contract, Notice Period and Severance fees relating to Badree

2.7.3. Remuneration to Executive Directors

Remuneration to Executive Directors is a combination of fixed and variable components, as recommended by the Nomination and Remuneration Committee and approved by the Board Members, in line with

As per the terms of Badree’s appointment, notice period is three months with NIL severance fee.

Annual Report 2021-22 | 75

74 |

Strides Pharma Science Limited

e) Recommend to the Board appointment, reappointment, removal of the Statutory Auditors, fixation of audit fee and approval for payment for any non-audit services rendered by the Statutory Auditors.

2.7.5. Details of Stock Options held by Directors As at the date of this report, none of the Directors of the Company holds any stock options of the Company.

3. Committees of the Board

Board has constituted sub-committees to focus on specific areas and make informed decisions within the authority delegated to each of the Committees. Each Committee of the Board is guided by its Charter, which defines the scope, powers and composition of the Committee.

• f) Reviewing and monitoring the auditor’s independence & performance and effectiveness of audit process.

• g) Review the appointment, removal and terms of remuneration of the Internal Auditor.

All decisions and recommendations of the Committees are placed before the Board for information or approval. During the financial year, the Board has accepted the recommendations of Committees on matters where such a recommendation is mandatorily required. There have been no instances where such recommendations have not been considered.

h) Review on a regular basis the adequacy of internal audit function, the structure of the internal audit department, approval of the internal audit plan and its execution, staffing and seniority of the official heading the department, reporting structure, coverage and frequency of internal audit.

i) Review the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.

Board has constituted the following Statutory Committees:

• 1) Audit Committee;

• 2) Nomination and Remuneration Committee (NRC Committee);

• j) Discuss with internal auditors any significant findings and follow up thereon.

• 3) Stakeholders’ Relationship Committee (SHR Committee);

• k) Review with Management, Statutory Auditors and Internal Auditors about the adequacy of internal control systems and related matters.

• 4) Corporate Social Responsibility Committee (CSR Committee);

• l) Review of Management letters/ letters of internal control weakness issued by Statutory Auditors/ Internal Auditors.

• 5) Risk Management Committee (RMC)

3.1. Audit Committee

• m) Review the appointment, removal and terms of remuneration payable to the Cost Auditor.

Terms of reference of the Audit Committee

Terms of reference of the Audit Committee covers the areas mentioned in Section 177 of the Companies Act, 2013 and Regulation 18 read with Part C of Schedule II of Listing Regulations.

• n) Evaluation of internal financial controls and risk management systems.

• o) Review and approval of Related Party Transactions.

Terms of reference of the Audit Committee, inter alia, includes the following:

• p) Reviewing the functioning of the Whistle Blower mechanism.

• a) Oversight of the Company’s financial reporting process and disclosure of its financial information q) Review compliance of provisions of Insider Trading to ensure that the financial statements are correct, Regulations and verify that systems for internal sufficient and credible. control are adequate and operating effectively, atleast once in a financial year.

• b) Examination of the Company’s financial statements and Auditor’s Report on the same.

In addition, the Committee is also required to discharge such other roles/ functions as envisaged under the Companies Act, 2013 and Listing Regulations.

• c) Discuss and review with the Management and Auditors, the annual/ quarterly financial statements before submission to the Board for approval.

3.2. Nomination and Remuneration Committee

Terms of reference of the Committee

Terms of reference of the NRC Committee covers the areas mentioned in Section 178 of the Act and Regulation 19 read with Part D (A) of Schedule II of Listing Regulations.

• d) Review of Management Discussion and Analysis of financial condition and results of operations.

the interpretation and adoption of rules for the operation thereof.

Terms of reference of the NRC, inter alia, includes the following:

• n)

• To carry out any other function as may be mandated by the Board from time to time and/ or enforced by any statutory notification, amendment or modification, as may be applicable.

• a) To periodically review the size and composition of the Board to ensure that it is structured to make appropriate decisions, with a variety of perspectives and skills, in the best interests of the Company as a whole.

• In addition, the Committee is also required to discharge such other roles/ functions as envisaged under the Companies Act, 2013 and Listing Regulations.

• b) To formulate a criteria for determining qualifications, positive attributes and independence of a Director.

3.3. Stakeholders’ Relationship Committee

• c) To formulate a criteria for evaluation of performance of all Independent Directors and the Board.

Terms of reference of the Committee

• Terms of reference of the Stakeholders’ Relationship Committee covers the areas mentioned in Section 178 (5) of the Act and Regulation 20 read with Part D (B) of Schedule II of Listing Regulations.

• d) Committee to carry out evaluation of every Director’s performance.

• e) Committee to determine whether to extend or continue the term of appointment of the Independent Director, on the basis of the report of performance evaluation of Independent Directors.

• Terms of reference of the SHR Committee, inter alia, are as follows:

• a) To consider and ensure resolution of the grievances of the security holders of the Company including complaints relating to transfer/ transmission of shares, issue of new/ duplicate share certificates, non-receipt of annual reports, non-receipt of declared dividends, etc;

• f) To formulate criteria and evaluate the performance of the statutory committees of the Board vis., Audit Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee and Corporate Social Responsibility Committee and any other Committee as duly constituted by the Board of Directors.

• b) To monitor investor grievances received by the Company from SEBI, BSE, NSE or through Scores and to ensure its timely and speedy resolution in consultation with the RTA/ Company Secretary;

• g) To devise a policy on Board diversity and assist the Board in ensuring Board nomination process addresses diversity of gender, knowledge, experience, and perspective.

• c) Review of measures taken for effective exercise of voting rights by security holders;

• h) Identify persons who are qualified to become d) To oversee and review the performance of

• Directors and who may be appointed as Senior Registrar & Share Transfer Agent and recommend

• Management Personnel (SMP), in accordance with measures for improvements in the quality of

• the criteria laid down in the policy. investors services;

• i) To recommend to the Board the appointment and removal of Directors and SMP, in accordance with the criteria laid down in the policy.

• e) Review of various measures and initiatives taken by the Company relating to unclaimed dividends for reducing the quantum of unclaimed dividend and ensuring timely receipt of dividend warrants/ annual reports/ statutory notices by the shareholders of the Company;

• j) To recommend to the Board, a policy relating to remuneration of Directors, Key Managerial Personnel (KMP) and SMP.

• f) To review compliance relating to all Securities including Dividend payments, transfer of unclaimed amounts or shares to Investor Education and Protection Fund;

• k) To recommend to the Board, all remuneration, in whatever form, payable to Senior Management Personnel.

• l) To establish and review plans relating to orderly succession for appointment of the Board, KMP and SMP.

• g) Formulation of Policies and Procedures as mandated by SEBI relating to stakeholder services from time to time for matters relating to security holders and related governance;

• m) To assist the Board of Directors in the Board’s overall responsibilities relating to Employee Stock Options Plans, including the administration of the Company’s ESOP and other incentive plans and

In addition, the Committee is also required to discharge such other roles/ functions as envisaged under the Companies Act, 2013 and Listing Regulations.

Annual Report 2021-22 | 77

76 |

Strides Pharma Science Limited

Company Secretary of the Company is the designated Compliance Officer for the purpose of compliance in relation to the Listing Regulations.

3.4. Corporate Social Responsibility (CSR) Committee

Terms of reference of the Committee

Terms of reference of the CSR Committee covers the areas as mentioned in the Companies Act, 2013.

Terms of Reference of the CSR Committee, inter alia, includes the following:

• a) Formulate and recommend to the Board, a Corporate Social Responsibility Policy (“CSR Policy”) which shall indicate the activities to be undertaken by the Company in areas/ subject as specified in Schedule VII of the Act and shall monitor the CSR Policy from time to time;

• b) Formulate and recommend to the Board an Annual Action Plan for the identified CSR Projects and recommend the amount of expenditure to be incurred on such activities;

• c) To ensure the disbursed funds are utilised for the purposes and in the manner approved. In this regard, Chief Financial Officer of the Company to provide confirmation to the Committee.

• d) Ensure that the Company is taking appropriate measures to undertake and implement CSR projects successfully;

• e) The Committee, at its sole authority, may seek the advice of outside experts or consultants at the Company’s expense where judged necessary, to discharge its duties and responsibilities.

• f) The Committee to seek services of Independent Agency to carry out Impact Assessment of CSR Projects as may be required.

At Strides, CSR initiatives help address socio-economic challenges in the realms of Health and Hygiene, Education, Employability and Disaster Management.

A detailed report on the CSR activities undertaken during the year, together with its monitoring and spending is annexed to the Board’s Report as Annexure 4 .

3.5. Risk Management Committee

Terms of reference of the Committee

Terms of reference of the RMC covers the areas as mentioned in the Listing Regulations.

Terms of Reference of the Risk Management Committee, inter alia, includes the following:

• a) To advise the Board in identification and managing the full range of risks the enterprise faces.

b) Provide oversight during the design and implementation of a comprehensive risk management framework and common-sense approach to manage risks across the entire organisation.

• c) Establish and communicate risk vision and philosophy, approve risk strategy and establish risk appetite.

• d) Review and approve the Enterprise Risk Management framework of company on a periodic basis. The Committee shall review and approve the risk management culture, processes and practices of the company.

• e) Monitor and review the exposures of the material risks and assess management preparedness to deal with the risk and associated events.

• f) Review and approve the enterprise risk management (ERM) working plan and utilise risk for the enterprise’s competitive advantage.

• g) Overseeing internal and external risks faced by the Company including financial, operational, sectoral, sustainability (ESG), information, cyber security risks or any other risks determined by the Committee

• h) Ensure that appropriate methodology, processes, and systems are in place to monitor and evaluate risks associated with business of the Company.

• i) Overseeing the cyber security measures of the organisation with focus on the cyber and digital risks.

• j) Review effectiveness of the risk mitigation plans including adequacy of the system/processes for the internal controls of the identified risks.

• k) Monitor and oversee implementation of the risk management policy, including evaluation of the adequacy of risk management systems.

• l) Oversee and guide the development and implementation of ERM policies, procedures, guidelines.

• m) Advice the Board on all matters related to ERM. Engage other stakeholders in the risk management process when the need is identified. Facilitate communication of ERM information.

• n) Keep the Board of Directors informed about the nature and content of the Committee discussions and recommendations, as well as the actions to be taken.

• o) Oversee and guide the development and implementation of Business Continuity and Crisis

Management and Business Continuity procedures and guidelines.

• p) Disseminate to the enterprise the upside of risk and the opportunities it can present, rather than the traditional perspective of “risk as hazard”.

• q) Risk Management Committee may form and delegate authority to a sub-committee, which shall assist the Committee to project manage the ERM.

• In addition, the Committee is also required to discharge such other roles/ functions as envisaged under the Companies Act, 2013 and Listing Regulations.

4. Meetings of the Board and Committees

The Company has adopted digital meetings platform for its Board and Committee meetings, which can be accessed through web version, iOS and Android based application.

Board/ Committee Agenda and related notes are made available to the Directors through this application, which meets the standards of security and integrity that is required for storage and transmission of Board/ Committee related documents in electronic form.

Quarterly Board meetings are pre-scheduled, and a tentative annual calendar of such Board meetings is agreed, to facilitate Directors to plan their schedules and ensure meaningful participation.

However, in case of a special and urgent business need, either a Board Meeting is convened at shorter notice or Board’s approval is obtained by circular resolution, depending on the matter to be transacted.

4.1. Board Meetings held during the year

During FY22, Board met 9 times on the following dates: 1. May 10, 2021

1. May 27, 2021

2. August 6, 2021 4. August 31, 2021

3. November 10, 2021

4. December 3, 2021

5. February 10, 2022

6. March 4, 2022, & 9. March 29, 2022.

Attendance of members at the Board Meeting is provided in Item No. 4.3.6 below.

4.2. Meeting of Independent Directors

Independent Directors of the Company met on May 26, 2021 to inter-alia discuss and evaluate the performance

of the Non-Independent Directors, the Board as a whole & its various Committees and performance of the Chairperson of the Board.

4.3. Committee meetings held during the year

4.3.1. Audit Committee

Audit Committee met 4 times during FY22 on the following dates:

1. May 27, 2021

2. August 6, 2021

3. November 10, 2021 &

4. February 10, 2022. Attendance of members at the Committee Meeting is provided in Item No. 4.3.6 below.

4.3.2. Nomination and Remuneration Committee (NRC)

NRC met 6 times during FY22 on the following dates:

1. May 10, 2021

2. May 26, 2021

3. August 31, 2021

4. November 10, 2021

5. February 10, 2022 &

6. March 29, 2022. Attendance of members at the Committee Meetings is provided in Item No. 4.3.6 below.

4.3.3. Stakeholders Relationship Committee (SRC)

SRC met 4 times during FY22 on the following dates:

1. May 26, 2021

2. August 6, 2021

3. November 10, 2021 &

4. February 10, 2022.

Attendance of members at the Committee Meeting is provided in Item No. 4.3.6 below.

4.3.4. CSR Committee

• The CSR Committee met 2 times during FY22 on the following dates:

• May 26, 2021

• February 10, 2022

Attendance of members at the Committee Meeting is provided in Item No. 4.3.6 below.

4.3.5. Risk Management Committee (RMC)

RMC met 2 times during FY22 on the following dates:

1. April 20, 2021

2. October 13, 2021.

Attendance of members at the Committee Meetings is provided in Item No. 4.3.6 below.

Annual Report 2021-22 | 79

78 |

Strides Pharma Science Limited

4.3.6. Attendance of members of Board and Committees at the meetings held during FY22*

Number of Meetings held Members’ attendance Deepak Vaidya S Sridhar Bharat Shah Dr. Kausalya Santhanam Homi Rustam Khusrokhan Arun Kumar Dr. R Ananthanarayanan Badree Komandur Other Members of RMC Sormistha Ghosh Christoph Funke Umesh Kale Anjani Kumar	9 9 9 8 9 9 8 7 9 NA NA NA NA	4 4 4 4 4 4 NA NA NA NA NA NA NA	6 6 6 6 6 6 NA NA NA NA NA NA NA	4 4 4 4 NA NA 4 4 NA NA NA NA NA	2 2 NA NA 2 2 2 NA NA NA NA NA NA	2 2 2 2 NA 2 NA 2 2 2 2 1 2

*Considering the COVID-19 pandemic, and as permitted by the Ministry of Corporate Affairs, majority of the meetings during the financial year has been conducted through Video Conference

5. Shareholders’ Governance and Communication

Company’s performance during the quarter. Earnings call transcript is also hosted on the Company’s website.

The Company regularly communicates to its stakeholders through multiple channels of communications such as results announcements, annual report, media releases and hosting information on Company’s website.

5.1. Investors Correspondence

Shareholders may reach out to the Company or KFin Technologies Limited (formerly, KFin Technologies Private Limited), Company’s Registrars and Transfer Agents, for any queries that they may have. Coordinates of the Company and RTA is provided herein below.

Post quarterly Board Meetings, the Company also conducts earnings call for Investors to discuss

Registered Office Corporate Office Registrars & Share Transfer Agents No. 201, ‘Devavrata’ Strides Pharma Science Limited KFin Technologies Limited, Sector 17, Vashi, Strides House, Bilekahalli, (Formerly KFin Technologies Private Limited), Navi Mumbai - 400 703 Bannerghatta Road, Selenium Tower B, Plot No. 31 & 32, Financial Bangalore – 560 076 District, Nanakramguda, Serilingampally Tel. No. +91-22-2789 2924 Mandal, e-mail id: investors@strides.com Tel. No.: +91 80 6784 0000/ 0738 Hyderabad – 500032 e-mail id: investors@strides.com Toll Free No: 1- 800-309-4001

Hyderabad – 500032 Toll Free No: 1- 800-309-4001 E-Mail: einward.ris@kfntech.com Website: https://www.kfntech.com/ https://ris.kfntech.com/

Contact Persons:

S.V. Raju, Deputy Vice President Vijayananda Banerjee Mohan Kumar A, Manager

Investor Relations Team Compliance Officer Badree Komandur Manjula Ramamurthy +91 80 6784 0747 Company Secretary Sandeep Baid Tel. No.: +91 80 6784 0734 +91 80 6784 0791 Fax No. +91 80 6784 0700 e-mail id.: manjula.r@strides.com

Corporate Communications Team Pallavi Panchmatia : +91 80 6784 0193 pallavi.panchmatia@strides.com

PR Consultancy

Fortuna PR K Srinivas Reddy: +91 90005 27213 srinivas@fortunapr.com Boni Mukherjee: +91 9618682208 boni@fortunapr.com

The Company’s designated email id for investor complaints is investors@strides.com

5.2. Means of Communication

• a) Quarterly, Half yearly and Annual financial results

• The quarterly, half yearly and annual results of the Company as approved by the Board of Directors are submitted to the Stock Exchanges where the Company’s shares are listed.

Further, the quarterly, half yearly and annual results of the Company are also published in Financial Express and Lokmat, local vernacular daily.

These are also disseminated through our PR Agency and made available on the Company’s website at https://strides.com/investor-fnancial. html.

The Company also conducts earnings calls with analysts and investors and their transcripts are published on the website thereafter.

• b) Notice to shareholders relating to transfer of shares in respect of the dividends which has remained unpaid or unclaimed for seven consecutive years to the Investors Education and Protection Fund was published in Business Standard and in the local vernacular daily, Navshakti.

• c) News releases, presentations, etc.: The Company has established systems and procedures to disseminate relevant information to its stakeholders including shareholders, analysts, suppliers, customers, employees and the society at large.

Regular updates about the Company in the form of news releases, stock exchange intimations, investor presentations etc., are displayed on the Company’s website.

• d) Compliance Filings with Stock Exchanges All periodical compliance filings including shareholding pattern, corporate governance report, media releases, among others are filed electronically on NSE Electronic Application

Processing System (NeAPS)/ Digital Exchange portal and BSE Corporate Compliance & Listing Centre.

• e) SEBI Complaints Redress System (SCORES)

• Investors’ complaints are also being processed through the centralised web base complaint redressal system of SEBI (SCORES). SCORES enables speedy and effective resolution of complaints filed therein.

• f) Website

• The primary source of information regarding the operations of the Company is the corporate website www.strides.com

• It contains a separate dedicated section for ‘Shareholders’, ‘Investors’ and ‘Media’ where the latest and updated information about financials/ activities of the Company are available.

• The website of the Company also displays official news releases and presentations made to the institutional investors and analysts from time to time.

• g) Annual report

• The Company’s annual report containing the Board’s Report, Corporate Governance Report, Management Discussion and Analysis (MD&A), Business Responsibility Report, Audited Annual Accounts, Consolidated Financial Statements, Auditors’ Report and other important information is circulated to shareholders and other stakeholders. Annual Reports are also emailed to the shareholders who have registered their email IDs with the Company/ depositories.

• Strides’ annual report is also available at https:// strides.com/investor-financial.html.

5.3. General Meetings and Postal Ballot

5.3.1. Annual General Meeting

The Thirtieth Annual General Meeting (AGM) of the Company was held on Friday, September 03, 2021 at 12:30 hours IST.

• The Meeting was attended by the all the Directors of the Company.

Annual Report 2021-22 | 81

80 |

Strides Pharma Science Limited

5.3.2. General Meetings and Tribunal Convened Meetings held during the preceding three years

Details of the General Meetings and Tribunal Convened Meetings held during the preceding three years and Special Resolutions passed therein are summarised as under:

AGM/ EGM	Date /Time	Venue	Special Resolutionspassed
AGM for FY ending March 31, 2021 AGM for FY ending March 31, 2020 AGM for FY ending March 31, 2019 Tribunal convened Meeting Extraordinary General Meeting Extraordinary General Meeting	September 03, 2021 at 12:30 hours IST August 20, 2020 at 15:00 hours IST July 30, 2019 at 11.30 hours IST February 20, 2020 at 12.00 Noon April 7, 2022 at 14.30 hours IST March 27, 2019 at 11.30 hours IST	Through video conferencing / other audio - visual means Considering the COVID 19 pandemic and as permitted by the Ministry of Corporate Affairs Through video conferencing / other audio - visual means Considering the COVID 19 pandemic and as permitted by the Ministry of Corporate Affairs Hotel Four Points by Sheraton, Plot No. – 39/1, 6 to 15, Sector – 30A, Vashi, Navi Mumbai – 400 701 Hotel Four Points by Sheraton, Plot No. – 39/1, 6 to 15, Sector – 30A, Vashi, Navi Mumbai – 400 701 Through video conferencing Hotel Ritz Carlton, Residency Road, Bengaluru – 560025	NA 1) Appointment of Dr. R Ananthanarayanan as a Managing Director & Chief Executive Offcer of the Company; 2) Re-appointment of Mr. Badree Komandur as an Executive Director-Finance & Group CFO of the Company 1) Re-appointment of Mr. S Sridhar as Independent Director of the Company till the conclusion of 33rdAGM; 2) Approval for continuation of Directorship of Mr. Deepak Vaidya as Non-Executive Director; 3) Amendment to Strides Employee Stock Option Plan 2016; 4) Payment of commission to Non-Executive Directors of the Company 1) Merger of the following three Direct/ Indirect Wholly owned Subsidiaries of Strides Pharma Science with itself. • Strides Emerging Markets Limited • Arrow Remedies Private Limited • Fagris Medica Private Limited 1) Re-appointment of Mr. Homi Rustam Khusrokhan (DIN: 00005085) as an Independent Director of the Company 2) Issuance of Equity Warrants on Preferential Basis 1) Divestment of Australian Business

5.3.3 Postal Ballot/ E-voting

During FY22, the Company conducted two Postal Ballots to seek approval of the shareholders as under:

Date of Postal Ballot Notice	Type of Resolution	Matter
May 10, 2021 November 10, 2021	Special Resolution Special Resolution Special Resolution Ordinary Resolution Ordinary Resolution	- Re-appointment of Mr. Bharat Shah (DIN: 00136969) as an Independent Director of the Company for a second term of three years. - Continuation of Mr. Bharat Shah (DIN: 00136969) as an Independent Director of the Company. -Alteration of Articles of Association of the Company. - Reclassifcation of Outgoing Promoters 1 to “Public” shareholder category - Reclassifcation of Outgoing Promoters 2 to “Public” shareholder category

Consolidated results of the Postal Ballot Notice dated May 10, 2021, as approved on June 11, 2021 through requisite majority

No. of votes polled	Votes Cast in Favor (% to total votespolled)	Votes Cast against (% to total votespolled)
Re-appointment of Mr. Bharat Shah (DIN: 00136969) as an Independent Director (passed as a special resolution) 5,77,16,604	94.84	5.16
Consolidated results of the Postal Ballot Notice dated November 10, 2021, as approved o through requisite majority		n January 14, 2022,
No. of votes polled	Votes Cast in Favor (% to total votespolled)	Votes Cast against (% to total votespolled)
Item 1: Continuation of Mr. Bharat Shah (DIN: 00136969) as an Independent Director (passed as a special resolution) 5,71,33,453 Item 2: Alteration of Articles of Association of the Company (passed as a special resolution) 6,13,46,356 Item 3: Reclassifcation of “Outgoing Promoters 1” to “Public” shareholder category (passed as an ordinary resolution) 3,09,55,575 Item 4: Reclassifcation of “Outgoing Promoters 2” to “Public” shareholder category (passed as an ordinary resolution) 3,09,55,576	99.82 99.99 91.04 79.48	0.18 0.01 8.96 20.52

Voting rights were reckoned on the number of shares registered as on the cut-off date. The communication of assent / dissent of the Members was obtained only through remote e-Voting system. Members desiring to exercise their votes by electronic mode were requested to vote before close of business hours on the last date of e-voting.

Procedure adopted by the Company for Postal Ballots Postal Ballots were carried out as per the provisions of Sections 108 and 110 and other applicable provisions of the Act, read with the Rules framed thereunder and read with the General Circular No. 14/ 2020 dated April 8, 2020, General Circular No. 17/ 2020 dated April 13, 2020, General Circular No. 22/ 2020 dated June 15, 2020, General Circular No. 33/ 2020 dated September 28, 2020, General Circular No. 39/ 2020 dated December 31, 2020 and General Circular No. 10/ 2021 dated June 23, 2021, respectively issued by the Ministry of Corporate Affairs, from time to time.

In compliance with Sections 108 and 110 and other applicable provisions of the Companies Act, 2013, read with related Rules, the Company provided electronic voting (e-voting) facility to all its members. The Company engaged the services of KFintech for the purpose of providing e-voting facility to all its members.

In terms of the MCA General Circulars, the Company dispatched the Postal Ballot by email to all its Members whose names appear in the Register of Members/ list of Beneficial Owners as received from the National Securities Depository Limited (NSDL)/ Central Depository Services (India) Limited (CDSL) or Registrar and Share Transfer Agent (“KFin Technologies Limited or KFintech”) as on the cut-off date.

The Scrutiniser submits his report to the Chairperson/ Company Secretary, after the completion of scrutiny, and the consolidated results of the voting by postal ballot are then announced by the Chairperson/ authorised officer.

The results are also displayed on the Company website, https://strides.com/media-pressrelease.html, and also on the website of KFintech i.e., https://evoting.kfintech. com/, besides being communicated to BSE Limited and the National Stock Exchange of India Limited on which the shares of the Company are listed.

The Company also published notice in the newspapers declaring the details of completion of dispatch and other requirements as mandated under the Companies Act, 2013 and applicable Regulations.

Mr. Binoy Chacko, Partner of M/s. Joseph and Chacko LLP, Company Secretaries was appointed as Scrutiniser for conducting both the aforementioned Postal Ballots/ e-voting processes in a fair and transparent manner.

Annual Report 2021-22 | 83

82 |

Strides Pharma Science Limited

Resolutions, if approved by the Members by means of Postal Ballot/ e-Voting is deemed to have been passed at a General Meeting of the Members and the last date of the e-Voting shall be the date on which the Resolutions shall be deemed to have been passed, if approved by the requisite majority.

5.4 General Shareholders Information

5.4.1 Annual General Meeting (AGM) - FY22

AGM of the Company for FY22 is scheduled to be held on Friday, September 9, 2022 from 12:30 hours IST by video conference/ other audio visual means.

Time period for remote e-voting:

• Starts from 09:00 hours IST on Monday, September 5, 2022 and;

• Ends on Thursday, September 8, 2022 at 17:00 hours IST.

5.4.2 Financial Reporting Calendar

Financial reporting calendar for FY23 is as under:

Financial Reporting for Quarter/ Half Year ended/ Annual	During
June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023	July 2022 October 2022 February 2023 May2023

In line with the Listing Regulations, the Company shall disseminate relevant intimations/ disclosures to the stock exchanges before and after the meetings.

5.5 Dividend

Considering the performance of the Company in FY22, Board of Directors have decided not to recommend dividend for the financial year.

5.6 Unclaimed Shares Suspense Account

Pursuant to Regulation 39(4) of Listing Regulations read with Schedule VI of the said Regulations, the Company has dematerialised shares which have been returned undelivered by postal authorities and shares lying unclaimed. The dematerialised shares are held in an ‘unclaimed suspense account’ opened with Kotak Securities Limited.

Any corporate benefits accruing on such shares, vis. bonus shares, split etc., shall also be credited to unclaimed suspense account, for a period of seven years and thereafter shall be transferred by the Company to Investor Education and Protection Fund (IEPF), in accordance with provisions of Section 124(5) and (6) of the Companies Act, 2013 and rules made thereunder.

In accordance with the provisions of the Listing Regulations, the Company reports the following details in respect of equity shares lying in the suspense account.

Particulars	Number of shareholders	Number of equity shares
Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year Shareholders who approached the Company for transfer of shares from suspense account during the year Shareholders to whom shares were transferred from the suspense account during the year Aggregate number of shareholders and shares which were transferred to IEPF as per the MCA Circular Aggregate number of shareholders and the outstanding shares in the suspense account lying as on March 31, 2022	1,055 7 7 0 1,048	67,175 474 474 0 66,701

The voting rights on the shares outstanding in the suspense account as on March 31, 2022 shall remain frozen till the rightful owner claims the shares.

5.7 Unpaid/ Unclaimed Dividends and Shares

In accordance with the provisions of Sections 124 and 125 of Companies Act, 2013 and Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) dividends not encashed/ claimed within seven years from the date of declaration are to be transferred to the Investor Education and Protection Fund (IEPF) Authority.

The IEPF Rules mandate companies to transfer shares of Members whose dividends remain unpaid/ unclaimed for a continuous period of seven years to the demat account of IEPF Authority. The Members whose dividend/ shares are transferred to the IEPF Authority can claim their shares/ dividend from the Authority.

In accordance with the said IEPF Rules and its amendments, the Company had sent notices to all the Shareholders whose shares were due to be transferred to the IEPF Authority and simultaneously published newspaper advertisements.

In terms of the provisions of IEPF Rules and Investor Education and Protection Fund (Awareness and Protection of Investors) Rules, 2001, ` 1,07,64,053/- of unpaid/ unclaimed dividends and 6,440 shares were transferred during FY22 to the IEPF including the dividend amounts declared and paid by erstwhile Shasun Pharmaceuticals Limited.

The Company has appointed Ms. Manjula Ramamurthy, Company Secretary as the Nodal Officer of the Company under the provisions of IEPF, the details of which are available on the website of the Company.

The Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on March 31, 2021 on the Company’s website.

5.8 Due date for transfer of unpaid/ unclaimed dividend to IEPF

As per the provisions of the Companies Act, 2013 read with relevant rules, the Company is required to transfer outstanding dividend amount and related shares post completion of the prescribed period of 7 years.

Accordingly, outstanding dividend due for transfer to IEPF is as under:

Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF 31 March 2015 Final 30% 30 July 2015 04 September 2022 31 March 2016 Final 40% 29 July 2016 03 September 2023 31 March 2017 Final 45% 15 September 2017 21 October 2024 31 March 2018 Final 20% 24 September 2018 30 October 2025 31 March 2019 Final 30% 30 July 2019 04 September 2026 31 March 2020 Interim 120% 29 July 2019 03 September 2026 31 March 2020 Final 20% 20 August 2020 25 October 2027 31 March 2021 Final 25% 3 September 2021 8 November 2028 Fractional Shares Account 27 January2016 NA NA NA 03 March 2023 Unclaimed Shares Suspense Account* 17 August 2016 NA NA NA 22 September 2023	Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF 31 March 2015 Final 30% 30 July 2015 04 September 2022 31 March 2016 Final 40% 29 July 2016 03 September 2023 31 March 2017 Final 45% 15 September 2017 21 October 2024 31 March 2018 Final 20% 24 September 2018 30 October 2025 31 March 2019 Final 30% 30 July 2019 04 September 2026 31 March 2020 Interim 120% 29 July 2019 03 September 2026 31 March 2020 Final 20% 20 August 2020 25 October 2027 31 March 2021 Final 25% 3 September 2021 8 November 2028 Fractional Shares Account 27 January2016 NA NA NA 03 March 2023 Unclaimed Shares Suspense Account* 17 August 2016 NA NA NA 22 September 2023	Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF 31 March 2015 Final 30% 30 July 2015 04 September 2022 31 March 2016 Final 40% 29 July 2016 03 September 2023 31 March 2017 Final 45% 15 September 2017 21 October 2024 31 March 2018 Final 20% 24 September 2018 30 October 2025 31 March 2019 Final 30% 30 July 2019 04 September 2026 31 March 2020 Interim 120% 29 July 2019 03 September 2026 31 March 2020 Final 20% 20 August 2020 25 October 2027 31 March 2021 Final 25% 3 September 2021 8 November 2028 Fractional Shares Account 27 January2016 NA NA NA 03 March 2023 Unclaimed Shares Suspense Account* 17 August 2016 NA NA NA 22 September 2023	Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF 31 March 2015 Final 30% 30 July 2015 04 September 2022 31 March 2016 Final 40% 29 July 2016 03 September 2023 31 March 2017 Final 45% 15 September 2017 21 October 2024 31 March 2018 Final 20% 24 September 2018 30 October 2025 31 March 2019 Final 30% 30 July 2019 04 September 2026 31 March 2020 Interim 120% 29 July 2019 03 September 2026 31 March 2020 Final 20% 20 August 2020 25 October 2027 31 March 2021 Final 25% 3 September 2021 8 November 2028 Fractional Shares Account 27 January2016 NA NA NA 03 March 2023 Unclaimed Shares Suspense Account* 17 August 2016 NA NA NA 22 September 2023	Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF 31 March 2015 Final 30% 30 July 2015 04 September 2022 31 March 2016 Final 40% 29 July 2016 03 September 2023 31 March 2017 Final 45% 15 September 2017 21 October 2024 31 March 2018 Final 20% 24 September 2018 30 October 2025 31 March 2019 Final 30% 30 July 2019 04 September 2026 31 March 2020 Interim 120% 29 July 2019 03 September 2026 31 March 2020 Final 20% 20 August 2020 25 October 2027 31 March 2021 Final 25% 3 September 2021 8 November 2028 Fractional Shares Account 27 January2016 NA NA NA 03 March 2023 Unclaimed Shares Suspense Account* 17 August 2016 NA NA NA 22 September 2023
31 March 2015 31 March 2016 31 March 2017 31 March 2018 31 March 2019 31 March 2020 31 March 2020 31 March 2021	Final Final Final Final Final Interim Final Final	30% 40% 45% 20% 30% 120% 20% 25%	30 July 2015 29 July 2016 15 September 2017 24 September 2018 30 July 2019 29 July 2019 20 August 2020 3 September 2021	04 September 2022 03 September 2023 21 October 2024 30 October 2025 04 September 2026 03 September 2026 25 October 2027 8 November 2028
Fractional Shares Account * 27 January2016	NA	NA	NA	03 March 2023
Unclaimed Shares Suspense Account** 17 August 2016	NA	NA	NA	22 September 2023

• Arising on account of sale of fractional shares pursuant to merger of erstwhile Shasun with Strides;

** Pursuant to unclaimed shares considered into Suspense Account as per Listing Regulations.

5.9 Due dates for transfer of unpaid/ unclaimed dividends to IEPF relating to erstwhile Shasun Pharmaceuticals Limited, which merged with the Company effective November 19, 2015 is as follows:

Financial Year Ending	Type of Dividend	Dividend	Date of declaration	Due date for transfer to IEPF
31 March 2016	Interim	Rate 50%	30 July2015	04 September 2022

Shareholders of the Company, who have not yet encashed their dividend, may write to the Company/ Registrar and Share Transfer Agents immediately.

6. Listing on Stock Exchanges and Stock Codes

The Company has paid listing fees to both the stock exchanges and there is no outstanding payment as on date of this report. Details of the scrip is as under:

The equity shares of the Company are listed on:

The equity shares of the Company are listed on:	The equity shares of the Company are listed on:
BSE Limited Stock Code: 532531 National Stock Exchange of India Limited Stock Code: STAR
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001.	Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051.

ISIN of the Company is INE939A01011.

Annual Report 2021-22 | 85

84 |

Strides Pharma Science Limited

7. Market Price Data

The High and Low prices of the shares of the Company at NSE and BSE for the period under review is as under:

Month	BSE High (**)**<br>**Low(**) Volume 946.80 814.45 1,924,779 882.50 758.00 1,463,570 847.45 739.00 1,930,529 817.45 731.70 1,149,336 809.00 568.30 1,724,742 642.10 571.55 1,082,480 608.85 517.45 1,214,705 559.75 471.60 1,454,451 502.35 403.55 1,592,421 466.60 367.05 1,508,991 413.50 309.20 1,204,844 371.90 304.50 1,257,332	NSE
		High (**)**<br>**Low(**) Volume
April, 2021 May, 2021 June, 2021 July, 2021 August, 2021 September, 2021 October, 2021 November, 2021 December, 2021 January, 2022 February, 2022 March, 2022		947.00 814.05 16,759,665 883.00 756.90 12,724,358 847.80 668.70 15,879,981 818.00 731.55 8,087,395 808.95 562.55 24,047,197 642.40 571.50 13,691,020 608.95 517.20 16,133,503 559.80 471.20 21,601,190 502.70 403.30 32,924,428 466.90 367.10 18,596,312 413.75 308.80 17,103,012 372.00 304.20 27,332,432

8. Performance of Strides Pharma Science Limited Share Price to Broad Based Index (BSE Sensex and NSE Nifty)

==> picture [527 x 309] intentionally omitted <==

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

1000 20,000
800 15,000
600 10,000
400 50,000
200 40,000
Strides Nifty
Statutory Reports
----- End of picture text -----

NSE Chart

BSE Chart

==> picture [472 x 244] intentionally omitted <==

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

1000 80,000
800 70,000
600 60,000
400 50,000
200 40,000
Strides Sensex
----- End of picture text -----

9. Share Transfer System

The Company has appointed KFin Technologies Limited (Formerly, KFin Technologies Private Limited), Hyderabad, as its Registrar and Share Transfer Agents (KFintech) to expedite the process of share transfers.

In terms of the Listing Regulations, securities of listed companies can only be transferred in dematerialized form with effect from April 1, 2019.

Further, as an ongoing measure to enhance ease of dealing in securities by investors, SEBI vide its Circular of January 25, 2022, has mandated listed companies to issue securities in demat form only while processing service requests such as transfer, transmission, issue of duplicate share certificates, renewal/ exchange of share certificates, consolidation of folios etc.

In terms of the Circular,

1. Claimant/ Securities Holder shall submit their request in Form ISR-4 (hosted on website of Company and RTA) along with requisite documents and details;

2. RTA shall verify the request and documents submitted and thereafter issue a Letter of Confirmation (LoC) in lieu of physical securities certificates to the Claimant/ Securities Holder within 30 days of receipt of such request;

3. LoC shall be valid for a period of 120 days from the date of its issuance;

Claimant/ Securities Holder to make a request to the Depository Participant for dematerializing the said securities;

2. In case the Claimant/ Securities Holder fails to submit the demat request within the prescribed period, such shares shall be credited to the Suspense Escrow Demat Account of the Company.

All queries and requests relating to share transfers/ transmission may be addressed to Kfintech at the following correspondence:

KFin Technologies Limited, (Formerly KFin Technologies Private Limited), Selenium Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032 Toll Free No: 1- 800-309-4001

E-Mail: einward.ris@kfntech.com Website: https://www.kfntech.com/ https://ris.kfntech.com/

Contact Persons:

• Mr. S.V. Raju, Deputy Vice President Mr. Mohan Kumar A, Manager

Annual Report 2021-22 | 87

86 |

Strides Pharma Science Limited

10. Distribution of Shareholding as at March 31, 2022

13. Investor/ Shareholder Complaints

Details of complaints resolved during the period under review is as under:

Slab of Shareholding	No. of Shareholders	% to Total Number of Shareholders	No. of Shares	Amount	% of Amount
1 – 5,000 5,001 – 10,000 10,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000 50,001-1,00,000 1,00,001 and above	1,26,417 3,767 1,616 512 208 133 221 316	94.91 2.83 1.21 0.38 0.16 0.10 0.17 0.24	89,40,305 28,25,548 23,72,539 12,86,539 7,40,521 6,19,578 15,73,629 7,14,31,555	8,94,03,050.00 2,82,55,480.00 2,37,25,390.00 1,28,65,390.00 74,05,210.00 61,95,780.00 1,57,36,290.00 71,43,15,550.00	9.96 3.15 2.64 1.43 0.82 0.69 1.75 79.55
TOTAL	1,33,190	100.00	8,97,90,214	89,79,02,140.00	100.00

11. Shareholding Pattern as at March 31, 2022

11. Shareholding Pattern as at March 31, 2022
# Category	No. of shares held	% to total shareholding
1. Promoters 2. Mutual Funds 3. Banks, Indian Financial Institutions, Insurance Companies 4. Foreign Institutional Investors/ Foreign Portfolio Investors 5. Bodies Corporate & NBFC 6. Non-Resident Indians/ Foreign Nationals/ Overseas Corporate Bodies 7. Qualifed Institutional Buyers 8. Others(includingIndian Public, ClearingMembers, Trust, etc.)	2,74,72,894 1,11,21,259 9,025 1,76,51,285 47,38,316 20,38,923 44,26,948 2,23,31,564	30.60 12.39 0.01 19.65 5.28 2.27 4.93 24.87
TOTAL	8,97,90,214	100.00

12. Dematerialisation of Shares & Liquidity

Outstanding warrants, conversion date and impact on equity

The Company’s shares are traded in dematerialised form. The Company has established connectivity with both the Depositories vis., National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) through the Registrar, KFin Technologies Limited (formerly, KFin Technologies Private Limited)

The Company has allotted 2 Million Equity Warrants on April 26, 2022, on a preferential basis to M/s. Karuna Business Solutions LLP (Karuna), a promoter group company, at a price of ` 442/- per Equity Warrant, pursuant to the approval accorded by the Shareholders of the Company at the Extraordinary General Meeting held on April 7, 2022.

As at March 31, 2022, 99.86% of the paid-up share capital of the Company representing 8,96,64,223 shares has been dematerialised and balance 0.14% representing 1,25,991 shares of the Company is in physical form.

Karuna has a right to apply for and get allotted, within a period of 18 months from the date of allotment of Warrants (until October 26, 2023), in one or more tranches, One Equity Share of face value of ` 10/- each for each Warrant.

Shareholders who continue to hold shares in physical form are advised to dematerialise their shares at the earliest. Further, in line with the various SEBI circulars, Members are also requested to update their PAN and Bank details. For any clarification, assistance or information – members may contact the Company or KFintech.

The said allotment is in compliance with the provisions of the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable regulations.

Promoter’s shareholding shall move from 30.60% as at March 31, 2022 to 32.11%, assuming full conversion of warrants into equity.

# Description	Opening balance as at April 1, 2021	No. of cases received during theyear	Disposed during the year	Pending as at March 31, 2022
1 Non-receipt of dividend warrants 2 Non-receipt of annual reports 3 Non-receipt of securities 4 Non-receipt of securities after transfer 5 Non-receipt of electronic credits 6 Non-receipt of duplicate/ transmission/ deletion of share certifcates 7 Non-receipt of stickers against payment of AM 8 SEBI Complaints (SCORES) 9 NSE/ BSE Complaints 10 Other Complaints(MCA/ROC)	1 0 0 0 0 0 0 0 0 0	109 2 17 0 1 1 0 2 1 3	110 2 17 0 1 1 0 2 1 3	0 0 0 0 0 0 0 0 0 0
Total	1	136	137	0

14. Disclosures and Confirmations

The Secretarial Audit for the FY22, inter alia, included audit of compliance with the Companies Act, 2013 (Act), and the Rules made under the Act, Listing Regulations and applicable Regulations prescribed by SEBI amongst others.

14.1. Governance of Subsidiary Companies

Company has in place policy for Governance of subsidiaries which is drafted in line with the SEBI Listing Regulations. Policy is available at https://strides. com/pdf/Committees%20of%20the%20Board/2022/ strides_policy_for_governance_of_subsidiaries.pdf.

The Secretarial Audit Report forms as an Annexure to Boards’ Report and does not contain any qualification, reservation or adverse remark.

Minutes of the Board Meetings of the subsidiary companies along with the details of significant transactions and arrangements entered into by the subsidiary companies are shared with the Board of Directors on a quarterly basis.

14.5. Employee Stock Options

Statement providing detailed information on stock options granted to Employees under the Company’s Employee Stock Option Schemes as required under the SEBI Regulation is annexed to the Board’s Report as Annexure 2 .

Details of investments, loans and guarantees, if any, made by the subsidiary companies are placed before and reviewed by the Audit Committee of the company.

14.6. Manufacturing Facilities as at the date of

14.2. Reconciliation of Share Capital Audit

this report:

The Company conducts a share capital audit on a # quarterly basis in accordance with requirements of 1 Securities and Exchange Board of India (Depositories and Participants) Regulations 2018. 2 The Reconciliation of Share Capital Audit Report obtained from a Practicing Company Secretary, which 3 has been submitted to the Stock Exchanges within the stipulated period, certifies that the equity shares of the Company held in the dematerialised form and in 4 the physical form confirms to the issued and paid up equity share capital of the Company.

Address

Strides Pharma Science Limited

KRS Gardens, Suragajakkanahalli, Kasaba Hobli, Anekal Taluk, Bangalore – 562 106, India

Strides Pharma Science Limited PIMS Road, Periyakalapet, Puducherry – 605 014, India

Strides Pharma Science Limited

• 19/1,19/3, Chandapura, Sarjapura, Hobli, Anekal taluk, Bengaluru -560 099, India

Vivimed Life Sciences Private Limited Plot no. 101 to 108, SIDCO Industrial Estate, Alathur Village, Kancheepuram – 603 110, India

• Strides Pharma Global Pte Ltd, Singapore 3 Tuas South Avenue 4, Singapore – 637610

5 14.3. Secretarial Compliance Certificate 6 As per provisions of the Listing Regulations, the Company has obtained the Secretarial Compliance 7 Certificate on half yearly basis from a Practicing Company Secretary to the effect that all transfers/ 8 transmissions of shares are effected within stipulated time. The said certificate has also been submitted to the Stock Exchanges within the prescribed time.

Strides Pharma Inc, USA

• 1 Ram Ridge Road, Chestnut Ridge, NY 10977, USA Beltapharm SpA, Italy

• 20095 Cusano ML, Via Stelvio, 66, Italy Universal Corporation Limited, Kenya Club Road, Past Post Office, Plot No. 13777, P.O. Box 1748- 00902, Kikuyu Town, Kenya

14.7. Fee payable by the Company and its subsidiaries to the statutory auditor i.e., BSR & Co. LLP, Chartered Accountant, and all entities in the network firm/ network entity of which the statutory auditor is a part

14.4. Secretarial Audit

M/s. Gopalakrishnaraj H. H. & Associates, a firm of Company Secretaries in practice (Certificate of practice no. 4152) is the Secretarial Auditor for the company.

Annual Report 2021-22 | 89

88 |

Strides Pharma Science Limited

d) The Company has complied with the requirements of the Stock Exchanges, SEBI and other statutory authorities on matters relating to capital markets during the last 3 years. No penalties or strictures have been imposed on the Company by the Stock Exchange or SEBI or any statutory authorities relating to the above.

for FY22, is ` 33.955 Million (excluding applicable taxes and out of pocket expenses).

14.8. Declaration by Independent Directors

In accordance with Section 149 (7) of the Companies Act, 2013 and Regulation 25 (8) of Listing Regulations, each Independent Director has confirmed to the Company that he/ she meets the criteria of independence as laid down in Section 149 (6) of the Companies Act, 2013 and Regulation 16 (1) (b) of Listing Regulations as at March 31, 2022.

e) The Company has formulated a Whistle Blower Policy for Directors and Stakeholders of the Company. None of the personnel of the Company has been denied access to the Audit Committee.

Independent Directors have also confirmed completion of the registration formalities as prescribed by Ministry of Corporate Affairs to include their name in the data bank of Independent Directors with Indian Institute of Corporate Affairs and the validity of such registration.

f) The Company is not exposed to any commodity price risk. The details of the Foreign Exchange Risk and Company’s hedging activities forms part of the Notes to the Financial Statements.

g) Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Board is of the opinion that the Independent Directors fulfil the conditions specified in the above said regulations and are independent of the management.

14.9. Mr. Gopalakrishnaraj of M/s. Gopalakrishnaraj H & Associates, Company Secretaries, has issued a certificate as required under the Listing Regulations confirming that none of the directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as director of companies by the SEBI/ Ministry of Corporate Affairs or any such statutory authority. The certificate is enclosed as Annexure CG 2 to this Report.

Particulars a. number of complaints filed during FY22 b. number of complaints disposed off during FY22

Remarks 2 2 0

• c. number of complaints pending as on end of FY22

16. Code of Conduct

15. Other Affirmations & Disclosures Board has adopted Code of Conduct (‘Code’) for all Board Members and Senior Management of the Company. A

a) The Company has complied with all the copy of the said Code is available on the website of mandatory requirements as prescribed under the Company https://strides.com/pdf/Committees%20 Listing Regulations including regulations 17 to of%20the%20Board/2022/strides’code_of_conduct 27 and clauses (b) to (i) of sub-regulation (2) of july_2022.pdf. regulation 46 of Listing Regulations and also a few non-mandatory requirements, as prescribed under The Code provides that members of the Board are Regulation 27(1) of the Listing Regulations like required to avoid any interest in contracts entered unmodified audit opinion on financial statements into by the Company. If such an interest exists, the and appointment of separate persons to the post members are required to make disclosure to the Board of Chairperson and Managing Director. and to abstain from discussion, voting or otherwise

• non-mandatory requirements, as prescribed under The Code provides that members of the Board are Regulation 27(1) of the Listing Regulations like required to avoid any interest in contracts entered unmodified audit opinion on financial statements into by the Company. If such an interest exists, the and appointment of separate persons to the post members are required to make disclosure to the Board of Chairperson and Managing Director. and to abstain from discussion, voting or otherwise influencing on any matter in which the concerned

• b) There are no materially significant related party Director has or may have such interest. The Code also

• transactions with its promoters, directors or restricts the Directors from accepting any gifts or

• management, their subsidiaries or relatives etc., incentives in their capacity as Director of the Company,

• that may have potential conflict with the interests except what is duly authorised under the Code.

• of the Company.

• c) The Company has formulated policies for All Board Members and Senior Management Personnel determining material subsidiaries and for have confirmed compliance with the Code for the transacting with Related Parties, which is period under review. uploaded on the website of the Company at https:// strides.com/pdf/Committees%20of%20the%20 A declaration to this effect signed by the Board/2022/policy_for_governance_of_rpt.pdf. Managing Director of the Company is attached as

  • A declaration to this effect signed by the Managing Director of the Company is attached as Annexure CG 3 to this Report.

• All the transactions with related parties are disclosed in Note no. 44 to the standalone financial statements in the Annual Report.

For and on behalf of the Board of Directors

Badree Komandur

Arun Kumar Badree Komandur Date: May 24, 2022 Executive Chairperson & Managing Director Executive Director – Finance & Group CFO Place: Bengaluru DIN: 00084845 DIN: 07803242

==> picture [492 x 703] intentionally omitted <==

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

Area of Expertise Personal Values
Corporate Governance
- Non Executive Director Independent Director - Independent Director Limited - Independent Director Limited - Non Executive Independent Director Independent Director Limited - Independent Director Independent Director Independent Director & Chairman Executive Independent Director & Chairman - Non-Executive Independent Director Independent Director
Directorship and designation in other listed companies a. Solara Active Pharma Sciences Limited a. Sequent Scientific Limited - b. Solara Active Pharma Sciences Limited a. Indraprastha Medical Corporation b. Spandana Sphoorthy Financial a. Jubilant Pharnova Limited - b. Shriram Transport Finance Company c. Go Fashion (India) Limited - a. 3M India Limited - Non-Executive b. Exide Industries Limited - Non- c. Spandana Sphoorthy Financial Limited a. Neuland Laboratories Limited - None
Direct Shareholding in the Company as on May 24, 2022 15,40,997 (~1.72%) 1,203 (~0.001%) Nil 48,750 (~0.054%) 76,424 (~0.085%) - 25,000 (~0.028%)
Pharma Business
Number of Membership in Committees of the Board 1 3 8 7 5 3 0
Number of Chairmanship in Committees of the Board - 0 3 5 1 2 0
Total Number of Directorships 3 3 8 5
Functional & Managerial Experience
Effective Date of reappointment in current designation April 7, 2022 December 11, 2019 NA July 30, 2019 13 June 15, 2021 May 18, 2022 3 May 18, 2020 1
Date of initial appointment June 28, 1990 December 11, 2019 January 16, 1998 July 27, 2012 July 25, 2014 May 18, 2017 May 18, 2017
ttps://www.strides.com/corporate-board.html
h
Designation Executive Chairperson & Managing Director Independent Director Non-Executive Director Independent Director Independent Director Independent Director Executive Director - Finance and Group CFO
Management & Leadership Experience
Name of the Director and Director Identification Number (DIN) Arun Kumar Dr. Kausalya Santhanam Deepak Vaidya S Sridhar Bharat Shah Homi Rustam Khusrokhan Badree Komandur
Annexure CG 1 - Details of Directors as at May 24, 2022 Sl No. 1 2 3 4 5 6 7 #This does not include position in foreign companies and position as an advisory board member but includes position in private companies and companies under Section 8 of the Companies Act, 2013. None of our Directors hold directorship in more than seven listed companies. In line with Regulation 26 of Listing RegulationsProfile of Directors is available at None of the Directors are related to each other None of the Directors are holding any convertible securities of the Company
----- End of picture text -----*

Annual Report 2021-22 | 91

90 |

Strides Pharma Science Limited

Annexure CG 2

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To, The Members of Strides Pharma Science Limited

Annexure CG 3

Declaration of Compliance with the Code of Conduct for the Financial Year ended March 31, 2022

I hereby confirm that the Company has received affirmation as to compliance with Company’s Code of Conduct for the Financial Year ended March 31, 2022 from the Board Members and Senior Management Personnel.

Arun Kumar

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Strides Pharma Science Limited, holding CIN: L24230MH1990PLC057062 and having Registered Office at 201, ‘Devavrata’, Sector 17, Vashi, Navi Mumbai-400 703 and Corporate Office at Strides House, Bilekahalli, Bannerghatta Road, Bengaluru – 560 076 (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Place: Bengaluru, India Date: May 24, 2022

Executive Chairperson & Managing Director DIN: 00084845

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company and its officers, we hereby certify that none of the Directors on the Board of the Company, for the financial year ended on 31st March 2022 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authorities.

Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Gopalakrishnaraj H H & Associates Company Secretaries

Gopalakrishnaraj H H Proprietor FCS: 5654; CP: 4152 Place: Bengaluru PR: 945/2020 Date: 27/05/022 UDIN: F005654D000411576

Annual Report 2021-22 | 93

92 |

Strides Pharma Science Limited

Independent Auditors’ Certificate on Compliance with the Corporate Governance Requirements Under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

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.

To The Members of Strides Pharma Science Limited

1. This certificate is issued in accordance with the terms of our engagement letter dated 30 July 2018.

2. We have examined the compliance of conditions of 7. We have complied with the relevant applicable Corporate Governance by Strides Pharma Science requirements of the Standard on Quality Control Limited (“the Company”), for the year ended 31 (SQC) 1, Quality Control for Firms that Perform March 2022, as stipulated in regulations 17 to 27, Audits and Reviews of Historical Financial clauses (b) to (i) of regulation 46(2) and paragraphs Information, and Other Assurance and Related C, D and E of Schedule V of the Securities Exchange Services Engagements. Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from Opinion time to time (“Listing Regulations”).

3. 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.

Management’s Responsibility

1. 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.

2. 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

1. 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.

Auditors’ Responsibility

1. 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.

2. 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 2022.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W - 100022

Sampad Guha Thakurta Partner Membership No: 060573 UDIN: 22060573AOVXXQ8448

1. 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

Place: Bengaluru Date: 12 August 2022

Business Responsibility Report

Section A: General Information About the Company

	# 1.	Description Corporate Identity Number (CIN) of the	Remarks L24230MH1990PLC057062
		Company
	2. 3.	Name of the Company Registered Address	Strides Pharma Science Limited 201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400 703.
	4.	Website	www.strides.com
	5.	E-mail id	investors@strides.com
	6.	Financial Year reported	2021-2022
	7.	Sector that the Company is engaged in	Pharmaceutical
		(industrial activity code-wise)
	8.	List three key products/services that the	• Tenofovir/Lamivudine/Dolutegravir tablets
	9.	Company manufacture/provide (as in balance sheet) Total number of locations where business	• PEG powder • Combiart tablets activity is undertaken by the Company
		Number of international locations	Singapore, USA, Canada, Europe, including UK, Africa Four manufacturing facilities – in Singapore, USA, Europe and Africa
		Number of national locations	Registered Offce:Vashi, Navi Mumbai, Maharashtra Corporate Offce:Bangalore, Karnataka
			Facilities: • Suragajakkanahalli, Bangalore, Karnataka
			• Chandapura, Bangalore, Karnataka
			• PIMS Road, Periyakalapet, Puducherry
			• Alathur, Kancheepura
			R&D Center at Bangalore, Karnataka

1. Markets served by the Company – Local/State/ National/International

The Company has a strong commercial footprint across 100 countries.

Section B: Financial Details of the Company

Section B: Financial Details of the Company	Section B: Financial Details of the Company
# Description 1. Paid-Up Capital – FY 2021-22 89.79 Crores<br>2.<br>Total Turnover<br>19,790 Million (on a standalone basis) 3. Total proft after taxes 1,801.87 Million<br>(on a standalone basis)<br>4.<br>Total spending on Corporate Social<br>Responsibility (CSR) as percentage of proft<br>after tax (%)<br>2% of the average net proft of the last three years – ~24.02 Mio 5. List of activities in which expenditure in 4 above has been incurred Areas in which the Company has spent under CSR: • Health & Hygiene, • Education, • Employability; • Disaster Management A detailed report on the CSR activities of the Company forms part of the Annual Report of FY22.
1. Paid-Up Capital – FY 2021-22 2. Total Turnover 3. Total proft after taxes 4. Total spending on Corporate Social Responsibility (CSR) as percentage of proft after tax (%) 5. List of activities in which expenditure in 4 above has been incurred	89.79 Crores<br>19,790 Million (on a standalone basis) 1,801.87 Million<br>(on a standalone basis)<br>2% of the average net proft of the last three years – ~24.02 Mio Areas in which the Company has spent under CSR: • Health & Hygiene, • Education, • Employability; • Disaster Management A detailed report on the CSR activities of the Company forms part of the Annual Report of FY22.

Annual Report 2021-22 | 95

94 |

Strides Pharma Science Limited

Section C: Other Details

# Description

1. Does the Company have any Subsidiary The Company has 43 subsidiaries, JVs and Associates in India and company/companies overseas, a list of which forms part of the Board’s Report as Annexure 1.

2. Do the subsidiary company/companies participate in the BR initiatives of the parent company?

The Company’s Business Responsibility initiatives were not extended to its subsidiaries, JVs and associates during the reporting period.

In due course, the Company intends to extend its sustainability policies and initiatives beyond its boundaries and spread awareness among its several stakeholders.

If yes, then indicate the number of such subsidiary company/companies

1. Do any other entity/entities (e.g. suppliers, distributors, among others) that the Company does business with, participate in the BR initiatives of the Company?

If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]

Section D: BR Information

1. Details of Director/Directors responsible for BR

• a. Details of the Director/Directors responsible for the implementation of the BR policy/policies:

1	DIN Number	00084845
2	Name	Arun Kumar
3	Designation	Executive Chairperson & ManagingDirector

b. Details of the BR head

1 DIN Number 2 Name 3 Designation 4 Telephone number 5 E-mail id	Not Applicable Mr. Christoph Funke Chief Operations Offcer +91 80 6784 0290 Christoph.funke@strides.com

Principle-wise (as per NVGs) BR policy/policies

c. Details of compliance (Reply in Y/N)

# Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
1. Do you have a policy/ policies for... ? 2. Has the policy been formulated in consultation with relevant stakeholders?	Y Y	Y Y	Y Y	Y Y	Y Y	Y Y	NA NA	Y Y	Y Y
3. Does the policy conform to any national/ international standards? If yes, specify?	The policies are drafted in line with respective laws prevalent in India.					the provisions of the

1. Has the policy been approved by the Board? The policies are approved by the functional heads, and few of If yes, has it been signed by MD/owner/ CEO/ them have been adopted by the Board. appropriate Board Director?

2. Does the Company have a specified committee of the Board/ Director/ Official to oversee the implementation of the policy?

While few of the policies mandate requirement of a Board Committee, the rest of them are monitored by the management team.

1. Indicate the link for the policy to be viewed Link to the policies, which are available on the website – online? www.strides.com

2. Has the policy been formally communicated Yes to all relevant internal and external stakeholders?

3. Does the Company have in-house structure Yes to implement the policy/policies?

# Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
9. Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders’ grievances related to the policy/ policies? 10. Has the Company carried out independent audit/evaluation of the working of this policy byan internal or external agency?	Yes No

d. If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)

# Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
1. The Company has not understood the Principles 2. The Company is not at a stage, where it fnds itself in a position to formulate and implement the policies on specifed principles 3. The Company does not have fnancial or manpower resources available for the task 4. It is planned to be done within the next 6 months 5. It is planned to be done within the next 1 year 6. Anyother reason(please specify)	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- - - - - -

2. Governance related to BR

# Description	Remarks
1. Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company – within 3 months, 3-6 months, annually, more than 1 year 2. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?	Annually by the Board of Directors This report shall be published annually as a part of the Annual Report which will be available on the Company’s website as well.

Section E: Principle-Wise Performance Principle 1:

Our strategy is directed towards having a sharper focus on compliance.

The values that define our business ethos are: Integrity, Collaboration and Efficiency.

Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

Strides is a global pharmaceutical Company headquartered in Bangalore, India. The Company mainly operates in the regulated markets and has an “in Africa for Africa” strategy along with an institutional business to service donor - funded markets. The Company focusses on “difficult to manufacture” products that are sold in over 100 countries

• Integrity - We will follow the Right Practices and do the Right thing;

• Collaboration - We will work Together - understanding and supporting each other;

• Efficiency - We will do everything to deliver quicker and better results.

As at the date of the report, the Company has global manufacturing footprint with facilities located in India - Bangalore (two sites), Puducherry and Chennai, Singapore, Italy – Milan, USA – New York and Kenya - Nairobi.

It is these values that have helped us not only instigate trust in our Company, but also develop strong relationships with all our stakeholders thereby creating long-term value for society and our business.

The code of conduct relating to ethics, bribery and corruption is integrated in our well-established and implemented ‘Code of Conduct’ for the Board, senior management and employees. The existing code does not cover suppliers, contractors and business partners.

The Company has a dedicated R&D facility in India with global filing capabilities and a strong commercial footprint across 100 countries.

We are devoted towards a holistic approach to corporate governance. We benchmark our corporate governance activities to best practices across the globe.

The Whistleblower Policy is formulated with a view to provide a mechanism for employees of the Company to

Annual Report 2021-22 | 97

96 |

Strides Pharma Science Limited

raise concerns of any violations of legal or regulatory requirements, incorrect or misrepresentation of any financial statements and reports, etc. It is applicable to not just our employees but also extends to our business associates. Some of the malpractices and events covered under this policy are negligence causing substantial and specific danger to public health and safety, deliberate violation of law/regulation, breach of Company policy or failure to implement or comply with any approved Company policy, wastage/ misappropriation of Company funds/assets, etc.

All disclosures reported under our Whistleblower Policy are thoroughly investigated by the HR Head, who is the Whistle Officer of the Company. The Whistle Officer oversees the investigations under the authorisation of the Audit Committee. During the reporting period, no stakeholder complaints were received on ethics, transparency and accountability.

Principle 2:

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

We are dedicated to design, develop and manufacturing products that are safe for human consumption, socially beneficial, economically and environmentally sustainable throughout their life cycle. We have implemented the Quality by Design principles from development to commercialisation to ensure we provide the high quality and affordable medication to our patients. We have invested in Oracle Agile Product Lifecycle Management for all our R&D operations to ensure the good documentation practices throughout the product life cycle. The product suite, in addition to aggregation of development data for our dossiers prepared for regulatory filing, helps us to track the entire lifecycle of the product.

To ensure that patients have access to affordable medicines and to create dependable value in a constantly evolving global pharmaceuticals landscape, we incorporate sustainable and rightful practices throughout the product development process.

Our key products wherein social and environmentalfriendly designs have been incorporated are:

• Favipiravir Tablets 200mg for the treatment of Mild to Moderate COVID-19 Infection;

• Nirmatrelvir Tablets 150 mg & Ritonavir Tablets 100 mg for Mild to Moderate COVID-19 Infection;

• Molunupiravir Capsules 200 mg and 400 mg for the treatment of Mild to Moderate COVID-19 Infection;

• Emtricitabine/Tenofovir Fixed-Dose Combination anti-retroviral used for the treatment of HIV/AIDS;

• Tenofovir/ Lamivudine/ Dolutegravir Fixed-Dose Combination used the treatment of HIV/AIDS

The Company, being a mass multi-product manufacturing and multi-facility established Company,

monitors the resource consumption in batches. Currently, monitoring of resource consumption for manufacturing each unit of product is not feasible. However, we are aware of the importance of adopting highest standards of environmental and social practices in all our manufacturing locations.

Each of our manufacturing locations monitor the energy, water and fuel consumption on daily basis. We have undertaken various measures towards identifying our environmental risks and develop mitigation plans to address them. All our manufacturing locations in India are complying to ISO 14001: 2015 standards and two key manufacturing sites are ISO 14001 certified by NQA.

Production Details – FY22

Production Details – FY22
# Type of Products Manufactured	No. of facilities	Quantity Produced
1 Oral Dosage (Tablets, HG Capsules, Soft gel capsules, Liquids & Powders) and Topicals	4	5,550 Million

Resource Consumption Details – FY22

Resource Consumption Details – FY22	Resource Consumption Details – FY22	Resource Consumption Details – FY22
S. No. Type of Resource Utilised Units Consumption 1 Water KL 1,92,967 2 Electricity KWH 45.80 Million 3 Fuel a) HSD KL 644 b) FO KL 1,016 c)Briquette Tonne 144
1 Water 2 Electricity 3 Fuel a) HSD b) FO c)Briquette	KL KWH KL KL Tonne	1,92,967 45.80 Million 644 1,016 144

Sustainable sourcing

We address elements of sustainable sourcing like ethics, labour and human rights, wages and benefits, health and safety and the environment in the purchase/ service orders released to our vendors and suppliers. While we are in the process of developing a welldefined ‘Supplier Code of Conduct’ with an endeavour to integrate sustainability in our procurement process for all our products and services, we do conduct audit and due diligence prior to sourcing of materials/availing services from the vendors. The sourced products are submitted for approval with the regulatory authorities and post their approval, such materials are used in our final products.

Sourcing from local and small producers

The Company procures goods from local and small producers, who comply with its quality requirements. We follow required statutory obligation to meet sustainability with the micro, small and medium enterprises.

Our supply chain strategy management of the Company believes in facilitating local economic growth by encouraging and supporting local suppliers in the vicinity of our area of operation. Local sourcing also helps us in reducing air emissions from vehicular

movement. In this financial year, we have procured a part of our required materials from local (India) suppliers.

We also educate our vendors and suppliers on the current needs of quality standards, regulatory compliances to adhere to and share good industry practices with them.

Product recycle and waste management

We are committed to bring safe, efficient and affordable drugs to help cure and ease the suffering of patients worldwide. We are regulated by stringent pharmaceutical standards set out by the international agencies including the USFDA, EMA, WHO, TGA, UK MHRA and ANVISA amongst others. All these requirements ensure that patients get only the highest quality of medicines. Our entire value chain is designed to comply with the highest standards of quality, product safety, and processes. We have implemented a precautionary approach to check that no waste/ rejected batch materials are returned to the production process.

We also ensure that the waste generated is appropriately disposed complying with applicable environmental laws and statutory guidelines.

We have also taken steps towards effective treatment of the process generated wastewater. The process water is treated in the wastewater treatment plant and reused for gardens/lawns inside the plant premises across all sites in India. In FY22, we treated 1,00,903 KL of wastewater.

Principle 3:

Businesses should promote the well-being of all employees

We acknowledge that our employees are the drivers of our development and consider them to be our greatest assets. Our vision is to create a working environment that facilitates their personal well-being while meeting the business needs. We are committed to providing a work environment that ensures that every employee is treated with dignity, respect and equality.

Health & Safety

Health and safety of employees is a critical element that makes any workplace appropriate and is paramount for our operations. For our sustainable business, Safety is a prerequisite. Health and Safety is the license to operate our business and is a key performance parameter over and above the business metrics. The wellness of our workforce is given utmost importance in the interest of employees’ safety, their health and in the interest of the employer’s responsibility. As part of health and wellness, organisation is promoting many initiatives including allowing flexi-time for exercise, medical insurance, flexible work time/work from homes (for certain roles which may be performed remotely), maternal leave, paternal leave and employee wellness programme – ‘We Care’. The Company follows a wellness calendar as a part of the employee welfare

programme. Some of the other available employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity fund, compensated absences, long service awards and postemployment medical benefits – mediclaim insurance policy, group term life policy, group accident policy, maternity leave and paternity & adoption leave policy.

On safety, our primary motto is everyone working for Strides to go back home safely without injuries. The guiding principle of safety is outlined in our EHS policy applicable, displayed and practiced across all facilities. A culture of everyone is responsible for his/her safety is inculcated. A transparent reporting system is in place to report all incidents however minor they are, and corrective actions taken to prevent recurrence.

The Company’s health and safety approach include strong input and output measures viz.;

Safe permit to work system

2. Reporting of near misses and hazard conditions

4. PPE policy ensuring Use of personal protective equipment

6. Comprehensive hazard and risk assessment processes

8. Emergency preparedness.

The Company observes zero-tolerance against any discrimination on the grounds of nationality, sex, religion, marital status, caste, creed and also sexual harassment. Any transgression in this regard is met with stringent disciplinary action.

COVID-19 CARE

At Strides, employees’ health and wellbeing is our highest priority and we strive to do the best we can to support our people.

As briefed below, we have taken several initiatives to support our people with multiple employee support initiatives through these challenging times:

Support for deceased employees’ families: We are providing financial support to secure honourable living for families of deceased employees due to COVID-19

Vaccination Reimbursement: We are providing base and booster vaccination for employees free of charge and we encourage our employees to be vaccinated and continue to exercise adequate precaution.

Assistance from In-House Doctors: Our in - house doctors are extending their help round the clock for tele-consultation of affected employees or their families.

Employee Connects & Streamlined Coordination from

HR and Admin: There is a coordinated approach among all site HRs and the Admin team to tackle any case related to COVID-19.

Annual Report 2021-22 | 99

98 |

Strides Pharma Science Limited

Employee engagement We also assure employees’ well-being through active engagement. We have several two-way communication platforms in place for employees to express themselves, raise their queries and enable employees to know more about the organisation.

Seek App Town Hall Meetings Amber App This is for bringing in This is a two- way Amber was onboarded as greater awareness and communication channel an AI tool in to understand engagement around where the common employee sentiment and quality. Through SEEK the concerns and issues reach out to employees at employees are introduced amongst the employees are various tenure milestones. to the concept and issues discussed. The employees It also gives data of around quality. It provides can raise their concerns, disengaged employees. an interactive platform to give suggestions and express views and opinions. express their grievances.

acknowledge skill gaps, strengthen basic skills and enhance personal capabilities. The programme modules are digitally enabled by converting them into eLearning short burst modules of each approximately for 1 hour to adapt to the changing need, improve the scalability of the mass audience, self-paced, anytime, anywhere access. This brought out a new age quick learning experience to all employees through mobile learning at the click of button with learning on the go.

At Strides, we also give due credit to the employee’s union that pursue the interests of its members, with equal focus on the overall business expectations.

Currently, we have a management-recognised employee association, which covers approximately 20% of our employee membership.

Strides Workforce Details – as at March 31, 2022

# Type of Resource utilised	Number of Employees
1 Permanent Employees 2 Permanent Women Employees 3 Permanent employees with disabilities 4 Temporary/ Contractual employees	2,647 372 0 1,559

Training is focused on Functional and Behavioural Competencies such as communication, innovative thinking, collaboration, problem solving, negotiation, accountability for results, and many more.

This curriculum focuses on the organisational values and the personal capability of the employee to enable them with necessary skills to work efficiently in a corporate work environment

Continuous learning

With COVID-19 pandemic forcing us to rethink our way of life, compelling to transition to remote working and adapting to new normal that brought all the planned learnings to an almost halt, we continued to thrive by adapting to newer ways of digital learning methodologies to keep the learning momentum going. In our mission to adopt to digital transformation, all the F2F learning events were converted to virtually to short burst learning content and delivery style to match the need. With employees returning to work, the L&D team came back with a dual offering of inperson classroom trainings as well as virtual trainings for those who were still at virtual workplaces.

Strides Values & Behaviours – Strides designed its core organisational behaviours and L&D has been instrumental in driving the ICE Values and Behaviours immersion programme for Leaders, Managers and Employees across locations to bring awareness, relate to the business, and influence behaviour. Enabling Leaders to drive the change by being the role model for ICE and the behaviours themselves and initiate demonstration of these core Values and Behaviours in every work situation. The focus on embedding the Values & Behaviours encompassed big-format engagement programmes for employees as well as trainings. L&D used the SEEK tool to run campaigns, quizzes, competitions to build awareness under the aegis of B.I.G Challenge. 1,800 employees participated enthusiastically, and the programme rolled upto a grand finale with an awards distribution ceremony.

At Strides, we believe in creating continuous learning culture to upskill/reskill, enable our people’s future skills in response to a changing environment and new developments.

Some of our key programmes are listed below: a. Skill development Strides Continuous Learning Program (CLP) , is an ongoing initiative designed to reinforce Strides values,

Supervisory Development Program – Specialised curriculum designed and developed for Self-Managed Teams at SEML unit to create awareness amongst

participants about the role of Supervisors in an organisation. To prepare them for managing and engaging team associates / members in changing scenario. To provide them a platform in building supervisory skills for managing people.

The programme consisted of Communication, Interpersonal Skills, Presentation Skills, Time Management, Mentoring, Problem Solving, Team Management and Technical Writing over a span of 8 to 9 months with mid and final assessment on the learning performance. The programme brought a remarkable exposure of various elements and confidence in each participant.

After a successful implementation journey, the programme was launched at one of our international Unit in Singapore.

This year also marked a step-in disembarking learning solution to Strides’ International locations, for Fairmed Germany by launching Essentials of business communication modules, Strides UK and UCL through the PACE programmes and at Singapore site with the launch of Supervisory Development Program.

The Plant Managers Academy

The Plant Managers Academy (PMA) is a platform to build core functional and leadership capabilities in Plant talent to enable them to deliver sustained strong performance and grow as future leaders in Strides. The journeys under this academy are immersive, actionoriented and provide a toolkit which can be deployed by the plant managers to address the challenges and aspirations set for their respective plants.

The full journey is designed to run for 5 quarters, with learning sessions that are simulated and planned every 3 months. The PMA is delivered through a mix of in-person, online sessions, on-job projects and communities of practice. The interventions focus on modules around ‘Managing Self’, ‘Managing Teams’ and ‘Impacting Business’.

Ignite – Manager Essentials Program

While the organisation was heading in the right direction by having robust execution plans, having great talent, inspiring leaders and well-set processes, it was imperative to look at the missing track. Investing in our Managers’ capability building became the key priority in capability roadmap of organisation. A wellstructured and thought-out design with a blended learning approach consisting of mix of online learning modalities along with live facilitated sessions to drive self and reflective learning among managers. This initiative was piloted among people managers at our R&D centre (43 managers) With an outcome aiming towards building engaged and high performing teams. This comprises of three tracks Foundation, Intermediate and Advanced with each track comprising of short burst engaging modules scheduled to implement during the upcoming year.

PACE (Performance & Capability Enhancement) – PACE is our business skills suite comprising of key skills such as Time Management, Planning & Prioritisation, Giving and Receiving Feedback, Productivity Hacks, Interpersonal skills, MS Office tools, Professional email writing skills, setting stretch goals, Six Thinking Hats amongst others. PACE is designed as short, intense programmes of 2.5 hours and is centred around practice of skills through role plays, case studies, discussions. These offerings are run as part of the monthly training calendar and are open to all employees to self-nominate and attend. PACE is run as in-person and virtual classroom sessions.

In view of the pandemic that struck all of us, Learning & Development launched two programmes on Managing Stress and the Power of Mindfulness to all employees to support them to cope up with stress and anxiety.

Strides Learning and Development continues to drive all the learnings with a digital approach by enabling all modes of learning through the Learning Management System. Encouraging all learners to experience a mix of new age learning methods like video learning, eLearning, online articles, podcasts etc.

b. Talent management

At Strides, we place a lot of emphasis on growth through continuous learning to help employees transition from individual contributors to team leaders, and on to senior leadership positions within the organisation.

We look for leaders who lead with ideas, have the requisite knowledge, are passionate about what they do and excel in execution. All our talent management programmes are directed towards building this capability, while also preparing employees to manage organisational growth

To ensure building a resilient and efficient organisation in the dynamic markets, post COVID, we put significant rigor in identifying critical roles and ensuring robust talent management for those roles.

Our talent management strategy is derived based on many factors mainly:

Current talent pool

a. b.

Department-wise and role-wise proof of concepts

Future business plans and value-based analysis of roles

c.

d. Recommendations from leaders on developing their teams

The organisation is committed to develop its talent through multiple programmes including Continuous Learning Program, Pathway Program and Future Leader Program

We strive to do the best to keep our employees happy and motivated through our rewards and recognition system, which is one of the factors for the organisational success. Some of our recognition programmes include:

Annual Report 2021-22 | 101

100 |

Strides Pharma Science Limited

Strides Recognition programme

AWARD CATALOGUE

V&B Champion (Individual Award) For Displaying ICE Values, Strides	Shooting Star (Individual Award) For Creating Business Impact Dream Team (Team Award) Team that delivers the business impact by getting the WHAT &
Behaviours and Quality Culture	HOW right!

We periodically renew our HR strategies to enhance productivity and better engage with a diverse workforce across geographies. We equip our employees with opportunities to learn and apply the business concepts in day-to-day practice, thus enriching the quality of delivery.

We periodically renew our HR strategies to enhance productivity and better engage with a diverse workforce across geographies. We equip our employees with opportunities to learn and apply the business concepts in day-to-day practice, thus enriching the quality of delivery.

c) Self - managed teams

Complaints relating to child labour, forced labour, involuntary labour, sexual harassment/ discriminatory employment

Our facility for emerging markets in Chandapura, Bangalore, has implemented the Self-Managed Teams (SMT) philosophy to build a high-performing culture, thereby creating empowered teams.

We believe that the success of a responsible organisation rests on the foundation of ethics and respect for human rights. We follow the best international practices, which ensure the freedom of association, prohibition of child labour, protection of indigenous rights and prohibition of forced and compulsory labour. In FY22, we did not receive any complaint relating to child labour, forced labour, involuntary labour, or discriminatory employment. We received two complaints relating to sexual harassment, which were appropriately disposed off within the prescribed timeline.

We have established a separate policy on ‘Performance Management System’ that provides a framework for managing performance by assessing individual employee goals against stated/desired goals and objectives. Our framework on performance management system is based on continuous improvement and focuses on goal/objective setting, performance assessment and reviews, feedback and personal development plan and pay for performance.

Principle 4:

We strive to do the best to keep our employees happy and motivated through our rewards and recognition system, which is one of the factors for the organisational success. Some of our recognition programmes include:

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

We are cognisant of the fact that the stakeholder engagement is a periodic process that enables companies to develop and implement strategies to fulfill the stakeholder expectations and seek their long-term support. We recognise employees, our service partners (suppliers and dealers), customers, shareholders/investors, communities surrounding our operations and regulatory authorities as our key stakeholders. We engage with them through various channels, such as consultations with local communities through village panchayats, supplier/ vendor meets, employee satisfaction surveys, investor forums, etc. Though there is already a policy in place, we continuously strive for improving our policies to support those that are disadvantaged.

==> picture [242 x 37] intentionally omitted <==

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

Strides Recognition Programme
----- End of picture text -----

Strides Recognition Programme	Strides Recognition Programme	Strides Recognition Programme
Star Performer of the month Star Performer of the quarter Best Team of the year Best Team of the quarter
Strides Learning & Development – FY22
S. No. Category	Number of Employees	Percentage of Employees
1 Employees provided with skill upgradation training 2 Employees received performance or career development reviews	1,536 1,426	59% 63.83%

Internal and external stakeholders

We have mapped our internal and external stakeholders based on our ‘shareholder and stakeholders communication’ strategy.

==> picture [226 x 222] intentionally omitted <==

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

Employees
Regulatory
Community
Authroity
Stakeholders
Suppliers & Customers
Vendors
Shareholders Investors
----- End of picture text -----

A detailed report on the CSR activities of the Company forms part of the Annual Report of FY22.

Principle 5:

Businesses should respect and promote human rights

As a responsible organisation, the Company respects human rights at the workplace and the endeavour is to adopt the best practices, which will ensure the freedom of association, prohibition of child labour, protection of indigenous rights and prohibition of forced and compulsory labour.

The Company values the rights of the individuals and it is testified in our Code of Conduct for the Board, senior management and employees. The Code of Conduct embraces a commitment to conduct our business in the most ethical manner with due regard to business needs and stakeholder interests.

The elements of Convention on the Elimination of all Forms of Discrimination against Women (CEDAW), an international treaty by the United Nations General Assembly, described as an international bill of rights for women has been covered in our Code of Conduct. A Committee has been constituted by the management to consider and redress complaints for sexual harassment under the POSH Act. ICC posters with details of site wise committee members has been displayed at all locations.

In case of any non-compliance, the employee or any of the business associates can directly approach the Chairman of the Ethics and Compliance Committee. The Committee ensures the confidentiality and protects the complainant from being persecuted.

While the Code of Conduct covers employees of the organisation, we have worked on a new Code of Conduct in line with the requirements of the prescribed principle and International Labour Organisation (ILO), to extend it to our suppliers, contractors, and other stakeholders.

Stakeholder Complaints

Our Code of Conduct discourages violation of human rights and provides a fair and transparent mechanism for reporting any such violation. No complaints were received pertaining to human rights violation during the reporting period.

Principle 6:

Businesses should respect, protect and make efforts to restore the environment

We believe as an organisation, it is our responsibility to ensure that all our business practices are carried out in a way that causes minimal impact on the environment. Our policy on ‘Environment, Health & Safety’ (EHS) provides us the necessary direction towards climate change mitigation and adaptation efforts, as well as natural resource replenishment initiatives.

We follow our policy on Environment, Health & Safety which is applicable to all business operational facilities. As part of the policy, we educate our stakeholders (employees, contractors, sub-contractors, transporters, visitors) about the EHS policy and emergency procedures.

We understand that global warming has relevance on our business and the markets that we serve. We try to address this issue through our Environment, Health & Safety policy and have taken various initiatives through its Environmental Management System. It is in the process of initiating specific business level strategies to address global warming and climate change.

We have taken efforts to reduce CO2 emissions for the last few years and net carbon neutralisation is being monitored and improved year after year.

We identify and assess all the potential environmental risks as per the Environmental Management System Standards ISO 14001:2015. We have developed appropriate standard operating procedures to address the key environmental risks.

Clean Development Mechanism

Any employee may contact their local HR single point of contact, write to whistleblower@strides.com and/or log in to the Strides Portal to understand the redressal mechanisms.

We do not have any project related to Clean Development Mechanism.

Annual Report 2021-22 | 103

102 |

Strides Pharma Science Limited

Initiatives undertaken on clean technology, energy efficiency, renewable energy

Clean technology/ Recycling	Energy effciency	Renewable energy
16,138 KL rainwater collected and recharged to improve the ground water table in and around the plant. 21,060 KL of water recycled from steam condensate and reused for steam generation. 1,00,903 KL of wastewater treated by WWTP and reused for garden/ lawn inside theplantpremises across all sites in India.	Energy effcient LED lamps are used to replace existing TFL/CFL/SVL to conserve energy, almost all lighting fxtures in all Strides locations were already replaced with LED lamps and energy saving projected in previous years is being sustained.	12,000 Tonne of CO2 emissions reduction achieved by utilisation of 17 Mn kWh from imported solar power generators renewable energy source. 3,01,654 kWh renewable energy (Solar) generated inhouse

We actively support the policy advocacy campaigns which the above organisations take up from time to time.

Compliance to CPCB/SPCB norms in relation to emission/waste generated by the Company

Emissions are monitored by Pollution Control Board (PCB) authorised laboratories and periodical emission test reports are submitted to statutory authorities. The generated stack emissions and ambient air quality are well within the limits as defined by Central Pollution Control Board/ State Pollution Control Board (CPCB/ SPCB).

Principle 8:

Businesses should support inclusive growth and equitable development

At Strides, we always strive to secure the interests of all the stakeholders along with the healthy growth of the Company. Community development programmes are integral to our sustainability strategy. We have always contributed towards CSR activities, even before it was mandated by the law. We have initiated many programmes for the underprivileged, desiring and deserving in and around our area of operation.

All hazardous solid wastes are stored at designated places and disposed to approved recycler/Treatment Storage Disposal Facility (TSDF), as per the requirements of hazardous and other waste (Management and Transboundary Movement) Rules, 2016.

Show cause/legal notices received from CPCB/SPCB During the year under review, the Company did not receive any notice from CPCB/ SPCB.

The Company has developed and implemented the CSR policy which encompasses our philosophy towards CSR and lays down guidelines and mechanisms for undertaking socially advantageous programmes for welfare and sustainable development of the community at large.

Principle 7:

Businesses when engaged in influencing public and regulatory policy, should do so in a responsible

Our CSR initiatives help address socioeconomic challenges in the realms of health, education, employability and disaster management.

manner

We strive to create a positive impact and participate in making sound policy decisions to facilitate change in public policies that are beneficial to the sector. We believe a sustainable business growth can be achieved when worked together with the regulatory authorities, government and trading bodies.

A detailed report on CSR initiatives and the amount spent during the period under review forms part of the Board’s Report as Annexure 4 .

Principle 9:

We are a part of various industry bodies and associations that influence public and regulatory bodies in a responsible manner, which include:

Businesses should engage with and provide value to their customers and consumers in a responsible manner

• a. Pharmaceuticals Export Promotion Council of India

• We give utmost priority to provide effective, superior quality and economically affordable products to our customers. We work towards safe management of our products throughout its lifecycle and is committed to reducing risks. This is ensured by making factual disclosure of information during labelling and branding of our products. As a company, we are strongly connected with our customers. By understanding their needs, expectations and priorities, we are better equipped to develop products that offer great value.

• b. Bombay Chambers of Commerce

• c. Bangalore Chamber of Industry and Commerce

• d. Export Promotion Council for EOUs & SEZs

• e. Indian Drug Manufacturers’ Association

• f. Karnataka Drugs & Pharmaceutical Manufacturers Association

• g. Federation of Karnataka Chambers of Commerce and Industry

• We follow a standard operating procedure on providing the required factual information about our products

to the customers. We ensure our compliance towards all applicable legislations with respect to packaging and labelling. We realise the extent of influence we can have on our customers and we wish to engage with them in a responsible manner.

We have developed and implemented a robust pharmacovigilance system for handling and addressing complaints received from any of our stakeholders.

Customer Complaints – FY22

S. No. Category	Number of Complaints Received	Number of Complaints Closed	Number of complaints pending	% of Complaints/ Cases Pending
1 Customer Complaints 2 Customer Cases(legallyfled)	328 00	290 00	38 00	11.58 00

We have a dedicated pharmacovigilance cell to resolve any customer concerns or queries related to our products. We have not received any complaints on unfair trade practices, irresponsible advertising and anti-competitive behavior.

Display of product information on the product label

The customer is provided with the instructions on dosage and basic knowledge about the science behind the various ingredients added in different products. We also provide information on the composition of each ingredient in volume and percentage in the product. Storage Instructions and cautionary notes are also provided wherever required.

For and on behalf of the Board of Directors

Date: May 24, 2022 Arun Kumar Christoph Funke Place: Bengaluru Executive Chairperson & Managing Director Chief Operations Officer

Annual Report 2021-22 | 105

104 |

Strides Pharma Science Limited

Independent Auditors’ Report

Key Audit Matters (continued)

Going concern

[Refer Significant Accounting Policies and note 2 to the consolidated financial statements]

To the Members of

Strides Pharma Science Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Strides Pharma Science Limited (hereinafter referred to as the “Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its associates and its joint venture, which comprise the consolidated balance sheet as at 31 March 2022, 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 a summary of significant 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 other auditors on separate financial information of such subsidiaries and associates 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, its associates and joint venture as at 31 March 2022, of its consolidated loss 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, its associates 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.

Emphasis of Matter

We draw attention to Note 9(i) to the consolidated financial statements which states that the ability of Stelis Biopharma Limited (‘the Associate’) to continue as a going concern is dependent on the mitigation factors detailed in the said note which could have a consequential impact on the carrying amount of investment of H 4,609.50 million in the Associate as at 31 March 2022. Further, the auditors of the Associate have, without modifying their opinion, reported a Material Uncertainty Related to Going Concern vide their report dated 24 May 2022 on the financial information of the Associate for the year ended 31 March 2022.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment 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.

The key audit matter How the matter was addressed in our audit As at 31 March 2022, the Group has recorded a loss amounting Our audit procedures to assess the going concern assumption to H 4,742.50 million and has negative operating cash flows and whether a material uncertainty exists related to events amounting to H 2,578.15 million for the year ended March 31, or conditions that may cast a significant doubt on the Group’s 2022. ability to continue as a going concern included the following audit procedures to obtain sufficient appropriate audit Note 2 to the consolidated financial statements explain that evidence: Management has concluded that the going concern basis is appropriate in preparing the consolidated financial statements • Gaining an understanding and assessing the design, of the Group. The Group evaluated its ability to continue as implementation and operating effectiveness of Group’s key a going concern based upon an assessment of the Group’s internal controls over preparation of cash flow forecasts to cash position, assessment of the exposure with respect to assess its liquidity; the financial guarantees provided by the Parent Company to an associate company, future cash flow forecasts, its debt • Compared the forecasted statement of profit and loss and repayment obligations and other commitments and its cash flows with the Group’s business plan approved by the availability of financing facilities, after considering breaches board of directors; of its existing debt covenants and the related subsequent temporary relaxations obtained from the lenders for compliance • Evaluating the key assumptions in the cash flow forecasts with such debt covenants. This required the exercise of with reference to historical information, current significant judgement, particularly in forecasting the Group’s performance, future plans, and market and other external future revenues, profitability and cash flows.

• Evaluating the key assumptions in the cash flow forecasts with reference to historical information, current performance, future plans, and market and other external available information;

Based on their assessment, the Group concluded that there are no material uncertainties related to events or conditions which, individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern.

• Performing sensitivity analysis on the forecasted statement of profit and loss and cash flows by considering plausible changes to the key assumptions adopted by the Company;

• Performing a retrospective review to assess the reasonableness of Group’s past projections by comparing historical forecasts to actual results;

Considering the significance of the area to the overall financial statements this was significant for our audit.

• Assessing the availability of banking and other financing facilities by inspecting underlying documentation;

• Discussion with the parent and component Management with respect to the going concern assessment of the associate and confirming the same with the Associate’s report on the financial information received from the auditor of the Associate;

• Evaluating management’s judgment of invocation of guarantees provided to the lenders of the Associate;

• Assessing the impact of any existing covenants and the related waivers and other restrictive terms therein which may impact Group’s ability to raise further debts;

• Assessing the adequacy of the disclosures related to application of the going concern assumption.

Annual Report 2021-22 | 107

106 |

Strides Pharma Science Limited

Key Audit Matters (continued)

Taxation

[Refer Significant Accounting Policies and notes 12, 13, 27 and 36 to the consolidated financial statements]

Key Audit Matters (continued)

Chargebacks, rebates, returns, cash discount, other adjustments and related accruals (“gross to net

sales adjustments”)

[Refer Significant Accounting Policies and notes 16, 24 and 28 to the consolidated financial statements]

The key audit matter	How the matter was addressed in our audit
The Group operates across different tax jurisdictions around the world and is subject to complexities with respect to various tax positions on matters including such as:	In view of the significance of the matter, following audit procedures were applied, among others to obtain suffcient audit evidence:
- availability of tax incentives / exemptions. - deferred taxes on business combinations	• We tested the design of internal fnancial controls and
- cross border transfer pricing arrangements etc. The Company is subjected to various domestic and foreign tax	operating effectiveness of the relevant key controls in respect of taxation at a Group level;
regulations with respect to taxability of income received in India including repatriation of any profts as dividends.	• We obtained an understanding and analysed key correspondences with the tax authorities to identify any
Assessing the applicability of tax and accounting of such	additional uncertain tax positions;
repatriation may involve complexities with respect to various tax positions on availability of tax incentives / exemptions	• We analysed the Group’s judgment regarding the eventual
resulting in possible tax litigations/assessments.	resolution of matters with various tax authorities in certain

• We analysed the Group’s judgment regarding the eventual resolution of matters with various tax authorities in certain key jurisdictions. In this regard, we understood how the Group has considered past experience, where available, with the tax authorities in the respective jurisdictions;

Judgment is required in assessing the range of possible outcomes for some of these tax matters. These judgments could change over time as each of the matter progresses depending on experience on actual assessment proceedings by tax authorities and other judicial precedents.

• We used subject matter experts, to assess the accounting treatment done for key jurisdictions for current and deferred taxes.

The Group makes an assessment to determine the outcome of these uncertain tax positions and decides to make an accrual or consider it to be a possible contingent liability.

• We also considered external legal opinions and consultations made by the Group for key uncertain tax positions during current and past period.

Where the amount of tax liabilities are uncertain, the Group recognizes accruals which reflect its best estimate of the outcome based on the facts known in the relevant jurisdiction.

• We have verified the income tax rate reconciliation for key jurisdictions;

Given the complexity of tax accounting for multiple jurisdictions including judgment involved in determining impact of uncertain tax positions and impact of deferred taxes on business combination, we assessed this to be an area of focus for our audit.

• We also obtained the Group’s computation for deferred taxes for multiple entities in the Group and assessed its compliance with the recognition and measurement principles under the accounting standards.

Impairment testing of goodwill and intangible assets

[Refer Significant Accounting Policies and notes 7 and 8 to the consolidated financial statements]

The key audit matter How the matter was addressed in our audit

In view of the significance of the matter, following audit procedures were applied, among others to obtain sufficient audit evidence:

The Group has goodwill and intangible assets of H 4,859.07 million and H 6,249.82 million respectively as at 31 March 2022. These intangible assets predominantly arise on account of past business combinations and are subjected to impairment test as part of Cash Generating Units (CGU’s) which include goodwill.

• Tested the design and operating effectiveness of the Group’s controls around the impairment testing of carrying value of goodwill / intangible assets;

The annual impairment testing of goodwill and intangible assets goodwill / intangible assets; within such CGU’s was considered to be a key audit matter • Engaged our valuation specialists to assist in testing the due to the complexity of the accounting requirements and the reasonableness of the valuation by evaluating the assumptions significant judgement involved to estimate the recoverable and methodologies used by the Group, in particular for amount. The recoverable amount of the CGUs (includes weighted average cost of capital, terminal growth rate, etc. for goodwill and intangible assets among other items), which is the the relevant markets in which the CGUs operate; value in use has been derived from discounted forecast cash • Evaluating the assumptions applied to key inputs such as flow models. These models use several assumptions, including sales growth, operating costs, and terminal growth rates; estimates of future sales growth, operating costs, terminal growth rates, weighted-average cost of capital and consider the • Tested whether the Company’s analysis about the sensitivity impact of COVID-19 on these assumptions, if any. on the outcome of impairment to possible changes in key assumptions reflects the risks inherent in the valuation, including possible impact of COVID-19 pandemic, if any; • Performing a retrospective analysis of the accuracy of the Group’s past projections by comparing historical forecast to actual results;

Engaged our valuation specialists to assist in testing the reasonableness of the valuation by evaluating the assumptions and methodologies used by the Group, in particular for weighted average cost of capital, terminal growth rate, etc. for the relevant markets in which the CGUs operate;

Tested whether the Company’s analysis about the sensitivity on the outcome of impairment to possible changes in key assumptions reflects the risks inherent in the valuation, including possible impact of COVID-19 pandemic, if any;

We also assessed the Group’s disclosures about the sensitivity of the outcome of the impairment assessment to changes in key assumptions like terminal growth rate, weighted average cost of capital, etc. reflect the risks inherent in the valuation of goodwill.

The key audit matter

How the matter was addressed in our audit

A signifcant portion of Group’s sales are made to customers in the United States of America (‘USA’) under certain commercial and governmental reimbursement schemes and mandated contracts. These arrangements provide for signifcant amount of chargebacks, rebates, cash discount, medicaid and other related accruals (collectively known as ‘gross-to-net’ sales adjustments). The Group also provides a general right of return to its customers for these products. These arrangements result in deductions to gross sales and give rise to obligations for the Group to provide customers with allowances, which for unsettled amounts are recognised as an accrual. This was an area of focus in our audit because arrangements are of signifcant value, inherently complex and computation of accrual requires signifcant judgement and estimation by the Group. This judgement is particularly complex in USA in which competitive pricing pressure and multi-layered product discounting are increasingly prevalent. These accruals (other than provision for sales return) have been disclosed as a reduction to trade receivables as of 31 March 2022.

In view of the signifcance of the matter, following audit procedures were applied, among others to obtain suffcient audit evidence: • We tested the design and operating effectiveness of the relevant key controls in respect of ‘gross-to-net’ sales adjustments. • Obtained the computation for year-end accruals and tested the assumptions used by reference to the Group’s stated commercial policies, applicable contracts, stock lying at wholesalers and historical product returns and other claims / allowance. • We performed test of details on the actual claims processed for wholesalers during the year towards chargebacks, rebates, sales return and other allowances etc. to determine the accuracy of ‘gross-to-net’ sales adjustments. • Tested the historical data with respect to claims processed for sales return, chargebacks, rebates, Medicaid and other allowances. • Performed analytical procedures on ‘gross-to-net’ sales adjustments recognised during the year to identify any unusual variances / relationships, if any. • For each of the estimated accruals, tested the mathematical accuracy of the computation and verifed the underlying data used for completeness and accuracy.

Impairment testing of investment in associates

[Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]

[Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]	[Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]
The key audit matter How the matter was addressed in our audit The Group has investments in associates ofH5,273.53 million as at 31 March 2022. In view of the signifcance of the matter, following audit procedures were applied, among others to obtain suffcient audit evidence:
The Group has investments in associates ofH5,273.53 million as at 31 March 2022.	In view of the signifcance of the matter, following audit procedures were applied, among others to obtain suffcient audit evidence:

One of the associates is still carrying out significant product development currently with insignificant revenues and • accordingly, the Group continues to record its share in the losses of the associates. Further, another associate continues to incur losses which requires the Group to assess for impairment given the minimum assured return to the other shareholders • in the associate. The recoverable value of these associates for impairment testing was determined using discounted cash flow approach which involves significant judgement and estimates • including assessing the impact of COVID-19 on projections and estimates and other recent financing transactions. Given the recurring losses incurred by the associates, • impairment testing was significant to our audit, because of the financial quantum of the assets as well as the critical judgements, estimates and assumptions involved. We draw attention to Note 9(i) to the consolidated financial statements which states that the ability of Stelis Biopharma • Limited (‘the Associate’) to continue as a going concern is dependent on the mitigation factors detailed in the said note which could have a consequential impact on the carrying amount of investment of H 4,609.50 million in the Associate • as at 31 March 2022. Further, the auditors of the Associate have, without modifying their opinion, reported a Material Uncertainty Related to Going Concern vide their report dated • 24 May 2022 on the financial information of the Associate for the year ended 31 March 2022.

Tested the design and operating effectiveness of the relevant key controls around Group’s assessment of impairment of investment in associates.

Performed a retrospective analysis to assess the reasonableness of Group’s projections by comparing historical forecast to actual results.

Tested reasonability of projections used by the Group relating to the sales growth, operating costs, cashflow forecasts.

Engaged our valuation specialists to assist in testing the reasonableness of the valuation by evaluating the assumptions and methodologies used by the Company, in particular for weighted average cost of capital, terminal growth rate, etc.

Discuss with component auditors of associates on their testing of impairment of non-current assets in the associate and conclusions thereof.

Tested recent financing transactions in these companies with third parties to determine the fair value of certain investments.

Tested whether the Company’s analysis about the sensitivity on the outcome of impairment to possible changes in key assumptions reflects the risks inherent in the valuation, including possible impact of COVID-19 pandemic, if any.

Annual Report 2021-22 | 109

108 |

Strides Pharma Science Limited

Key Audit Matters (continued)

Impairment testing (as reported by component auditor for one of the associate)

[Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]

The key audit matter

How the matter was addressed in our audit

The management of Stelis (an associate of the Group) has assessed the annual impairment of CGU (which includes intangible assets under development and assets relating to CDMO unit) as at March 31, 2022. The carrying value of the CGU of Stelis amounts to H 11,039 million as of that date.

The principal audit procedures performed by the Component auditor, among other procedures included:

• Obtained an understanding of the Stelis Management’s process for impairment assessment of the carrying value of assets of the CGU;

The carrying value of the CGU is tested by the management of Stelis atleast annually for impairment, or more frequently if the events or changes in circumstances indicate that the asset might be impaired. The evaluation requires a comparison of the estimated recoverable value of the CGU to the carrying value of the assets in the CGU.

Evaluated the design and implementation of the relevant controls and carried out testing of the Stelis management’s control around the impairment assessment;

Inquired with Stelis management to understand the factors considered when performing the impairment assessment including the rationale for the events and circumstances considered based on strategic plans of the entity (business revenue projections), consideration of economic and industry matters and the factors considered regarding the overall value in use conclusion;

It is considered to be a key focus area by the component auditor because of the significance of the balance and the significant estimates, judgements and assumptions involved in impairment assessment by the management of Stelis, such as:

• Obtaining adequate financing to fulfil Stelis’ development and commercial activities,

Evaluated the key assumptions considered in Stelis management’s estimates of future cash flows;

• the risks associated with development and obtaining regulatory approvals of Stelis products,

Involved valuation specialists to evaluate the discount rate

used in the calculations;

• generation of revenues in due course from the product portfolio and contract manufacturing, •

Compared the historical cash flows (including for current year) against past projections of Stelis management for the same periods and gained understanding of the rationale for the changes;

• attainment of profitable operations,

• discount rate

Performed sensitivity analysis on the key assumptions within the forecast cash flows and focused the attention on those assumptions that were considered most sensitive to the changes; such as revenue growth during the forecast period, the discount rate applied to the future cash flows and terminal growth rate;

• probabilities applied to the revenues which also factors Stelis management’s best estimate of possible delay in product development cycle and regulatory approvals.

• Ascertained the extent to which a change in these assumptions, both individually or in aggregate, would result in impairment, and considered the likelihood of such events occurring;

• Tested the arithmetical accuracy of the computations;

• Assessed the accounting principles applied by Stelis and adequacy of disclosures in accordance with the Indian Accounting Standards, applicable regulatory financial reporting framework and other accounting principles generally accepted in India.

Key Audit Matters (continued)

Impairment testing (as reported by component auditor for one of the associate)

[Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]

The key audit matter

How the matter was addressed in our audit

The management of Stelis (an associate of the Group) has assessed the annual impairment of CGU (which includes vaccine facility – Unit 3) as at March 31, 2022. The carrying value • of the CGU of Stelis amounts to H 6,170 million as of that date.

The principal audit procedures performed by the Component auditor, among other procedures included:

Obtained an understanding of the Stelis Management’s process for impairment assessment of the carrying value of assets of the CGU;

The evaluation requires a comparison of the estimated recoverable value of the CGU to the carrying value of the assets in the CGU. •

Evaluated the design and implementation of the relevant controls and carried out testing of the Stelis management’s control around the impairment assessment;

It is considered to be a key focus area by the component auditor because of the significance of the balance and the significant estimates, judgements and assumptions involved in • impairment assessment by the management of Stelis, such as:

• Inquired with Stelis management to understand the factors considered when performing the impairment assessment including the rationale for the events and circumstances considered based on strategic plans of the entity (business revenue projections), consideration of economic and industry matters and the factors considered regarding the overall value in use conclusion;

• generation of revenues in due course from the vaccine plant and contract manufacturing,

• plans to convert the existing vaccine plant for CDMO purpose,

  • Evaluated the key assumptions considered in Stelis management’s estimates of future cash flows;

• ability to enforce the existing contract with customer and liquidate inventories as on balance sheet date prior to its shelf life, •

  • Involved valuation specialists to evaluate the discount rate and terminal growth rate used in the calculations;

• probabilities applied to the revenues which also factors Stelis management’s best estimate of possible delay in • Performed sensitivity analysis on the key assumptions regulatory approvals. within the forecast cash flows and focused the attention on those assumptions that were considered most sensitive

• • attainment of profitable operations, to the changes; such as revenue growth during the forecast

• • discount rate period, the discount rate applied to the future cash flows and terminal growth rate;

• Ascertained the extent to which a change in these assumptions, both individually or in aggregate, would result in impairment, and considered the likelihood of such events occurring;

• Tested the arithmetical accuracy of the computations;

• Assessed the accounting principles applied by Stelis and adequacy of disclosures in accordance with the Indian Accounting Standards, applicable regulatory financial reporting framework and other accounting principles generally accepted in India.

Annual Report 2021-22 | 111

110 |

Strides Pharma Science Limited

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon

The Holding Company’s Management and Board of Directors are responsible for the other information. The other information comprises of Management Reports such as Board’s Report, Management Discussion and Analysis and Corporate Governance Report, but does not include the consolidated financial statements and our Auditor’s report thereon which we obtained prior to the date of this Auditor’s Report, which are expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not 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 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.

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

When we read the other sections of Annual Report (other than those mentioned above), if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the applicable 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/ loss and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group including its associates and joint venture in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors of the companies included in the Group and of its associates and joint venture are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of

each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring 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 associates and joint venture are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

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

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

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

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled “Other Matters” in this audit report.

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• 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.

• 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 We also provide those charged with governance with policies used and the reasonableness of accounting a statement that we have complied with relevant estimates and related disclosures made by the ethical requirements regarding independence, and to Management and Board of Directors. communicate with them all relationships and other matters that may reasonably be thought to bear on

• • Conclude on the appropriateness of the our independence, and where applicable, related Management and Board of Directors use of the safeguards. going concern basis of accounting in preparation of consolidated financial statements and, based From the matters communicated with those charged on the audit evidence obtained, whether a with governance, we determine those matters that were material uncertainty exists related to events or of most significance in the audit of the consolidated conditions that may cast significant doubt on the financial statements of the current period and are appropriateness of this assumption. If we conclude therefore the key audit matters. We describe these that a material uncertainty exists, we are required matters in our auditor’s report unless law or regulation to draw attention in our auditor’s report to the precludes public disclosure about the matter or when, related disclosures in the consolidated financial in extremely rare circumstances, we determine that statements or, if such disclosures are inadequate, a matter should not be communicated in our report to modify our opinion. Our conclusions are based because the adverse consequences of doing so would on the audit evidence obtained up to the date of reasonably be expected to outweigh the public interest our auditor’s report. However, future events or benefits of such communication. conditions may cause the Group and its associates and joint venture to cease to continue as a going Other Matters concern.

• (a) We did not audit the financial information of 5 subsidiaries, whose financial information reflect total assets (before consolidation adjustments) of H 40,719 million as at 31 March 2022, total revenues (before consolidation adjustments) of H 18,734 million and net cash inflows (before consolidation adjustments) amounting to H 513 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 (and other comprehensive loss) of H 1,011 million for the year ended 31 March 2022, in respect of 3 associates, whose financial information have not been audited by us. These financial information 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 associates, 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 associates is based solely on the reports of the other auditors.

• 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 information of such entities or business activities within the Group and its associates and joint venture to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other 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

Annual Report 2021-22 | 113

112 |

Strides Pharma Science Limited

(b) The financial information of 34 subsidiaries, whose financial information reflect total assets (before consolidation adjustments) of H 32,291 million as at 31 March 2022, total revenues (before consolidation adjustments) of H 3,601 million and net cash inflows (before consolidation adjustments) amounting to H 87 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. The consolidated financial statements also include the Group’s share of net loss (and other comprehensive loss) of H 97 million for the year ended 31 March 2022, as considered in the consolidated financial statements, in respect of 7 associates and a joint venture, whose financial information have not been audited by us or by other auditors. These unaudited financial information 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, joint venture and associates, and our report in terms of sub-sections (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries, joint venture and associates, is based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial information are not material to 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 the above matters with respect to our reliance on the work done and the reports of other auditors and the financial information certified by the Management.

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. 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 information of such subsidiaries and associates as were audited by other auditors, as noted in 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.

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 with by 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, its subsidiary companies and associate companies incorporated in India as on 31 March 2022 taken on record by the Board of Directors of the respective companies and the reports of the statutory auditors of its subsidiary companies and associate companies incorporated in India, none of the directors of the Group companies and its associate companies incorporated in India is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.

8. f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company, its subsidiary companies and associate companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

9. 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 Auditor’s) 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 information of the subsidiaries and associates, as noted in the “Other Matters” paragraph:

10. a) The consolidated financial statements disclose the impact of pending litigations as at 31 March 2022 on the consolidated financial position of the Group, its associates and joint venture. Refer Note 42 to the consolidated financial statements.

11. b) The Group, its associates and joint venture did not have any material foreseeable losses on long-term contracts including derivative contracts during the year ended 31 March 2022. Refer Note 56 to the consolidated financial statements.

12. c) There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company during the year ended 31 March 2022. Further there were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the subsidiary companies and associate companies incorporated in India during the year ended 31 March 2022.

13. d) (i) The management has represented 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, its subsidiary companies or associate companies incorporated in India to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

14. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Holding Company, its subsidiary companies or associate companies incorporated in India; or

15. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

16. (ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Holding Company, its subsidiary companies or associate companies incorporated in India from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company, its subsidiary companies or associate companies incorporated in India shall:

17. directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties; or

18. provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

19. (iii) Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material mis-statement.

Annual Report 2021-22 | 115

114 |

Strides Pharma Science Limited

• e) The dividend declared or paid during the year by the Holding Company is in compliance with Section 123 of the Act. The subsidiary companies, associate companies and joint venture companies incorporated in India have neither declared nor paid any dividend during the year.

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

We refer to Note 11(ii) of the consolidated financial statements which more fully explains the decision of the Board of Directors to recover the excess remuneration paid to the Company’s erstwhile Managing Director and Chief Executive Officer and corresponding recoverable of H 141.9 million recorded as at 31 March 2022. In our opinion and according to the information and explanations given to us, having regard to the aforesaid note and based on the reports of the statutory auditors and representations from management of such subsidiary companies and associate companies incorporated in India which were not audited by us, the remuneration paid during the current

year by the Holding Company, its subsidiary companies and associate 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, its subsidiary companies and associate 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 number: 101248W/W-100022

Sampad Guha Thakurta

Partner

Membership number: 060573 UDIN: 22060573AJMSKC7057 Bengaluru Date: 24 May 2022

Annexure A to the Independent Auditor’s Report on Standalone Financial Statements

With reference to the Annexure A referred to in the Independent Auditor’s Report to the members of the Holding Company on the consolidated financial statements for the year ended 31 March 2022, we report the following:

• (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 unfavorable remarks, qualifications or adverse remarks given by the respective auditors in their reports under the Companies (Auditor’s Report) Order, 2020 (CARO)

Sr. no.	Name	CIN	Holding Company / Subsidiary / Associate / Joint venture	Clause number of the CARO report which is qualifed or adverse
1 2 3	Vivimed Life Science Private Limited Stelis Biopharma Limited Strides Pharma Science Limited	U24304MH2017PTC348859 U74140KA2007PLC043095 L24230MH1990PLC057062	Subsidiary Associate Holding Company	(xvii) (iii)(c), (xvii), (xix) (i)(c), (vii)(b)

for B S R & Co. LLP

Chartered Accountants

Firm’s registration number: 101248W/W-100022

Sampad Guha Thakurta

Partner

Membership number: 060573 UDIN: 22060573AJMSKC7057

Bengaluru

Date: 24 May 2022

Annual Report 2021-22 | 117

116 |

Strides Pharma Science Limited

Annexure B to the Independent Auditor’s report on the consolidated financial statements of Strides Pharma Science Limited (“the Company”) for the year ended 31 March 2022

Auditor’s Responsibility

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 Companies Act, 2013

Our responsibility is to express an opinion on the internal financial controls with reference to consolidated 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 consolidated 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 consolidated financial statements were established and maintained and if such controls operated effectively in all material respects.

(Referred to in paragraph A(f) 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 the Company as of and for the year ended 31 March 2022, we have audited the internal financial controls with reference to consolidated financial statements of Strides Pharma Science Limited (hereinafter referred to as “the Holding Company”) and such companies incorporated in India under the Companies Act, 2013 which are its subsidiary companies and its associate companies, to the extent applicable, as of that date.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of the internal controls 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.

In our opinion, the Holding Company and such companies incorporated in India which are its subsidiary companies and its associate companies, have, in all material respects, adequate internal financial controls with reference to consolidated financial statements and such internal financial controls were operating effectively as at 31 March 2022, based on the internal financial controls with reference to consolidated 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”).

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the relevant subsidiary companies and associate 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 consolidated financial statements.

Management’s Responsibility for Internal Financial Controls

The respective Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls with reference to consolidated financial statements based on the criteria established by the respective Company considering the essential components of internal controls 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 Companies Act, 2013 (hereinafter referred to as “the Act”).

Meaning of Internal Financial controls with Reference to Consolidated Financial Statements

A company’s internal financial controls with reference to consolidated 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 consolidated financial statements includes 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 unauthoried 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 consolidated Financial Statements

Because of the inherent limitations of internal financial controls with reference to consolidated 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 consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated 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 reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to consolidated financial statements insofar as it relates to one subsidiary company and one associate company, which are companies incorporated in India, is based on the corresponding reports of the auditors of such companies incorporated in India.

for B S R & Co. LLP

Chartered Accountants

Firm’s registration number: 101248W/W-100022

Sampad Guha Thakurta

Partner

Membership number: 060573 UDIN: 22060573AJMSKC7057

Bengaluru Date: 24 May 2022

Annual Report 2021-22 | 119

118 |

Strides Pharma Science Limited

Consolidated Balance Sheet as at March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

	Note No.	31-Mar-22	31-Mar-21
A ASSETS I Non-current assets (a) Property, plant and equipment (b) Capital work-in-progress (c) Right-of-use assets (d) Investment property (e) Goodwill (f) Other intangible assets (g) Intangible assets under development (h) Investment in associates and joint ventures (i) Financial assets (i) Investments (ii) Loans receivable (iii) Other fnancial assets (j) Deferred tax assets (net) (k) Income tax assets (net) (l) Other non-current assets Total non-current assets II Current assets (a) Inventories (b) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other balances with banks (v) Loans receivable (vi) Other fnancial assets (c) Other current assets Total current assets	4 (i) 4 (ii) 5 6 7 8 (i) 8 (ii) 9(i) 9(ii) 10(i) 11(i) 12 13 14(i) 15 9(iii) 16 17 18 10(ii) 11(ii) 14(ii)	12,815.29 562.29 1,758.86 131.73 4,859.07 3,901.33 2,348.49 5,355.55 47.83 30.00 450.80 2,151.49 1,622.76 104.82	10,688.67 2,276.02 2,029.78 682.35 4,805.40 3,987.44 2,197.67 5,838.94 141.02 103.84 5,692.90 1,982.21 1,302.14 249.48
		36,140.31 11,737.96 - 12,073.01 1,707.30 166.22 48.24 5,915.28 1,970.30	41,977.86 12,007.03 994.12 11,105.87 1,258.34 539.31 40.54 199.15 2,027.98
		33,618.31	28,172.34
TOTAL ASSETS		69,758.62	70,150.20
B EQUITY AND LIABILITIES I Equity (a) Equity share capital (b) Other equity Equity attributable to equity holders of the Company Non-controlling interests	19 20 21	897.90 22694.38	896.81 26869.80
		, 23,592.28	, 27,766.61
		240.88	373.41
Total Equity		23,833.16	28,140.02
II Liabilities 1 Non-current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Other fnancial liabilities (b) Provisions (c) Deferred tax liabilities (net) (d) Non-current tax liabilities (net) (e) Other non-current liabilities Total non-current liabilities 2 Current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (a) total outstanding dues of micro enterprises and small enterprises (b) total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other fnancial liabilities (b) Provisions (c) Current tax liabilities (net) (d) Other current liabilities Total current liabilities	22(i) 5 23(i) 24(i) 12 27 (i) 25(i) 22(ii) 5 26 23(ii) 24(ii) 27 (ii) 25(ii)	8,356.23 1,864.67 571.78 642.80 357.19 - 16.04	8,825.78 2,102.67 753.65 674.08 463.48 1,790.91 16.13
		11,808.71 19,563.37 465.98 326.75 10,388.49 1,152.31 1,226.23 238.11 755.51	14,626.70 12,208.10 345.70 378.35 10,963.65 1,250.78 1,241.91 351.18 643.81
		34,116.75	27,383.48
Total liabilities		45,925.46	42,010.18
TOTAL EQUITY AND LIABILITIES		69,758.62	70,150.20

The accompanying notes are an integral part of the consolidated financial statements As per our report of even date attached

for B S R & Co. LLP

for and on behalf of Board of Directors of Strides Pharma Science Limited

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta

Badree Komandur

Arun Kumar

Executive Chairperson and Managing Director Executive Director - Finance & Group CFO DIN: 00084845 DIN: 07803242

Partner

Membership Number 060573

Manjula R.

Bengaluru, May 24, 2022

Company Secretary

Membership Number A30515

Consolidated Statement of Profit and Loss for the year ended March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

			HIn Million
	Note No.	31-Mar-22	31-Mar-21
A. Continuing operations: I Revenue from operations II Other income	28 29	30,702.50 1,319.88	33,158.70 514.27
III Total Income(I+II)		32,022.38	33,672.97
IV Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of fnished goods, stock-in-trade and work-in-progress (d) Employee benefts expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses (h)Foreign exchange(gain) /loss - net	30 31 32 33 34	10,909.32 3,161.06 952.79 6,469.09 1,767.44 2,330.14 9,313.46 97.84	13,904.23 2,960.76 (3,537.06) 5,501.47 1,500.65 2,062.87 8,061.17 (80.17)
Total Expenses(IV)		35,001.14	30,373.92
V Proft / loss) before exceptional items and tax (III - IV) ` VI Exceptional items gain/ (loss) (net) VII Proft / (loss) before tax (V + VI) VIII Share of loss of joint ventures and associates IX Proft / (loss) before tax (VII + VIII) X Tax expense: (a) Current tax (b)Deferred tax	35 54 36	(2,978.76) (2,438.25)	3,299.05 433.53
		(5,417.01) (1,108.12)	3,732.58 (978.19)
		(6,525.13)	2,754.39
		(1,504.40) (278.23)	214.48 102.03
Total tax expense(X)		(1,782.63)	316.51
XI Proft/(loss) after tax from continuing operations(IX - X)		(4,742.50)	2,437.88
B. Discontinued operations (i) Loss from discontinued operations (ii) Gain on disposal of assets / settlement of liabilities attributable to the discontinued operations (net) (iii)Tax expense of discontinued operations	40	- - -	- 139.41 -
XII Proft/ (loss) after tax from discontinued operations		-	139.41
XIII Proft / (loss) for the year (XI + XII) XIV Other comprehensive income A (i) Items that will not be reclassifed to statement of proft and loss (ii) Income tax relating to items that will not be reclassifed to statement of proft and loss B (i) Items that may be reclassifed to statement of proft and loss (ii) Income tax relating to items that may be reclassifed to statement of proft and loss	37	(4,742.50)	2,577.29
		(86.64) 18.96 560.86 (3.19)	104.46 (14.08) 212.09 (136.92)
Total other comprehensive income for theyear, net of tax(XIV)		489.99	165.55
XV Total comprehensive income for theyear(XIII + XIV)		(4,252.51)	2,742.84
Proft / (loss) for the period attributable to: - Owners of the Company - Non-controlling interests Other comprehensive income for the year - Owners of the Company - Non-controlling interests Total comprehensive income for the year - Owners of the Company - Non-controlling interests Earnings per equity share (ofH10/- each) (for continuing operations): (1) Basic (2) Diluted Earnings per equity share (ofH10/- each) (for discontinued operations): (1) Basic (2) Diluted Earnings per equity share (ofH10/- each) (for total operations): (1) Basic (2)Diluted	48 48 48	(4,602.11) (140.39)	2,684.42 (107.13)
		(4,742.50) 477.04 12.95	2,577.29 159.97 5.58
		489.99 (4,125.07) (127.44)	165.55 2,844.39 (101.55)
		(4,252.51) (51.28) (51.28) - - (51.28) (51.28)	2,742.84 28.40 28.37 1.56 1.55 29.96 29.92

The accompanying notes are an integral part of the consolidated financial statements As per our report of even date attached

for B S R & Co. LLP

for and on behalf of Board of Directors of Strides Pharma Science Limited

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta Partner Membership Number 060573

Badree Komandur

Arun Kumar

Executive Chairperson and Managing Director DIN: 00084845

Executive Director - Finance & Group CFO DIN: 07803242

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number A30515

Annual Report 2021-22 | 121

120 |

Strides Pharma Science Limited

Consolidated Statement of Changes in Equity for the years ended march 31, 2022

HIn Million Particulars Notes Amount Balance as at April 1, 2020 895.65 Changes in equity share capital due to prior period errors - Restated balance as at April 1, 2020 895.65 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.16 Balance as at March 31, 2021 896.81 Changes in equity share capital due to prior period errors - Restated balance as at March 31, 2021 896.81 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.09 Balance as at March 31, 2022 897.90 B) Other equity HIn Million Particulars Notes Share application money pending allotment Reserves and Surplus Items of other comprehensive income Equity attributable to owners of the Company Non- controlling interests Total Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation liability General reserve Retained earnings FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities / (asset) Balance as at April 1, 2020 - 425.46 17,008.37 601.61 57.24 (3,840.13) 4,010.28 2,344.23 (703.08) (563.31) 5,183.76 (145.91) 24,378.52 672.38 25,050.90 Proft for the year - - - - - - - 2,684.42 - - - - 2,684.42 (107.13) 2,577.29 Other comprehensive income for the year (net of tax) - - - - - - - - 104.31 365.92 (296.33) (13.93) 159.97 5.58 165.55 Total comprehensive income - - - - - - - 2,684.42 104.31 365.92 (296.33) (13.93) 2,844.39 (101.55) 2,742.84 Pursuant to business combinations 39 - - - - - (223.01) - - - - - - (223.01) (189.21) (412.22) Pursuant to scheme of merger 50.2 - (210.62) 210.62 - - - - - - - - - - - - Dividend (including tax on dividend) - - - - - - - (179.15) - - - - (179.15) - (179.15) Issue of shares on exercise of stock options 45 - - 53.68 - (19.85) - - - - - - - 33.83 - 33.83 Transferred to general reserve on stock options lapse - - - - (5.41) - 5.41 - - - - - - - - Employee stock compensation expenses 45 - - - - 15.22 - - - - - - - 15.22 - 15.22	HIn Million Particulars Notes Amount Balance as at April 1, 2020 895.65 Changes in equity share capital due to prior period errors - Restated balance as at April 1, 2020 895.65 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.16 Balance as at March 31, 2021 896.81 Changes in equity share capital due to prior period errors - Restated balance as at March 31, 2021 896.81 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.09 Balance as at March 31, 2022 897.90 B) Other equity HIn Million Particulars Notes Share application money pending allotment Reserves and Surplus Items of other comprehensive income Equity attributable to owners of the Company Non- controlling interests Total Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation liability General reserve Retained earnings FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities / (asset) Balance as at April 1, 2020 - 425.46 17,008.37 601.61 57.24 (3,840.13) 4,010.28 2,344.23 (703.08) (563.31) 5,183.76 (145.91) 24,378.52 672.38 25,050.90 Proft for the year - - - - - - - 2,684.42 - - - - 2,684.42 (107.13) 2,577.29 Other comprehensive income for the year (net of tax) - - - - - - - - 104.31 365.92 (296.33) (13.93) 159.97 5.58 165.55 Total comprehensive income - - - - - - - 2,684.42 104.31 365.92 (296.33) (13.93) 2,844.39 (101.55) 2,742.84 Pursuant to business combinations 39 - - - - - (223.01) - - - - - - (223.01) (189.21) (412.22) Pursuant to scheme of merger 50.2 - (210.62) 210.62 - - - - - - - - - - - - Dividend (including tax on dividend) - - - - - - - (179.15) - - - - (179.15) - (179.15) Issue of shares on exercise of stock options 45 - - 53.68 - (19.85) - - - - - - - 33.83 - 33.83 Transferred to general reserve on stock options lapse - - - - (5.41) - 5.41 - - - - - - - - Employee stock compensation expenses 45 - - - - 15.22 - - - - - - - 15.22 - 15.22	HIn Million Particulars Notes Amount Balance as at April 1, 2020 895.65 Changes in equity share capital due to prior period errors - Restated balance as at April 1, 2020 895.65 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.16 Balance as at March 31, 2021 896.81 Changes in equity share capital due to prior period errors - Restated balance as at March 31, 2021 896.81 Changes in equity share capital during the year Shares issued pursuant to exercise of stock options 45 1.09 Balance as at March 31, 2022 897.90 B) Other equity HIn Million Particulars Notes Share application money pending allotment Reserves and Surplus Items of other comprehensive income Equity attributable to owners of the Company Non- controlling interests Total Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation liability General reserve Retained earnings FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities / (asset) Balance as at April 1, 2020 - 425.46 17,008.37 601.61 57.24 (3,840.13) 4,010.28 2,344.23 (703.08) (563.31) 5,183.76 (145.91) 24,378.52 672.38 25,050.90 Proft for the year - - - - - - - 2,684.42 - - - - 2,684.42 (107.13) 2,577.29 Other comprehensive income for the year (net of tax) - - - - - - - - 104.31 365.92 (296.33) (13.93) 159.97 5.58 165.55 Total comprehensive income - - - - - - - 2,684.42 104.31 365.92 (296.33) (13.93) 2,844.39 (101.55) 2,742.84 Pursuant to business combinations 39 - - - - - (223.01) - - - - - - (223.01) (189.21) (412.22) Pursuant to scheme of merger 50.2 - (210.62) 210.62 - - - - - - - - - - - - Dividend (including tax on dividend) - - - - - - - (179.15) - - - - (179.15) - (179.15) Issue of shares on exercise of stock options 45 - - 53.68 - (19.85) - - - - - - - 33.83 - 33.83 Transferred to general reserve on stock options lapse - - - - (5.41) - 5.41 - - - - - - - - Employee stock compensation expenses 45 - - - - 15.22 - - - - - - - 15.22 - 15.22	25,050.90 2,577.29 165.55	2,742.84 (412.22) - (179.15) 33.83 - 15.22
			672.38 (107.13) 5.58	(101.55) (189.21) - - - - -
			24,378.52 2,684.42 159.97	2,844.39 (223.01) - (179.15) 33.83 - 15.22
	Items of other comprehensive income	FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities / (asset)	(703.08) (563.31) 5,183.76 (145.91) - - - - 104.31 365.92 (296.33) (13.93)	104.31 365.92 (296.33) (13.93) - - - - - - - - - - - - - - - - - - - - - - - -
	Particulars Notes Share application money pending allotment Reserves and Surplus Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation liability General reserve Retained earnings Balance as at April 1, 2020 - 425.46 17,008.37 601.61 57.24 (3,840.13) 4,010.28 2,344.23 Proft for the year - - - - - - - 2,684.42 Other comprehensive income for the year (net of tax) - - - - - - - - Total comprehensive income - - - - - - - 2,684.42 Pursuant to business combinations 39 - - - - - (223.01) - - Pursuant to scheme of merger 50.2 - (210.62) 210.62 - - - - - Dividend (including tax on dividend) - - - - - - - (179.15) Issue of shares on exercise of stock options 45 - - 53.68 - (19.85) - - - Transferred to general reserve on stock options lapse - - - - (5.41) - 5.41 - Employee stock compensation expenses 45 - - - - 15.22 - - -

Consolidated Statement of Changes in Equity for the years ended march 31, 2022

HIn Million		Particulars Notes Share application money pending allotment Reserves and Surplus Items of other comprehensive income Equity attributable to owners of the Company Non- controlling interests Total Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation liability General reserve Retained earnings FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities / (asset)	Pursuant to exchange - - - - - - - - - - - - - (8.21) (8.21)	movement	Balance as at - 214.84 17,272.67 601.61 47.20 (4,063.14) 4,015.69 4,849.50 (598.77) (197.39) 4,887.43 (159.84) 26,869.80 373.41 27,243.21	March 31, 2021	Proft for the year - - - - - - - (4,602.11) - - - - (4,602.11) (140.39) (4,742.50)	Other comprehensive - - - - - - - - (73.37) 139.79 404.93 5.69 477.04 12.95 489.99	income for the year	(net of tax)	Total comprehensive - - - - - - - (4,602.11) (73.37) 139.79 404.93 5.69 (4,125.07) (127.44) (4,252.51)	income	Pursuant to business 39 - 123.60 - - - - - - - - - - 123.60 - 123.60	combinations	Pursuant to acquisition 39 - 2.56 - - - - - - - - - - 2.56 (2.56) -	of non-controlling	interest in subsidiary	Dividend (including - - - - - - - (224.31) - - - - (224.31) - (224.31)	tax on dividend)	Receipt of share 4.06 - - - - - - - - - - - 4.06 4.06	application money	Issue of shares on 45 - - 49.21 - (18.18) - - - - - - - 31.03 - 31.03	exercise of stock options	Transferred to general - - - - (21.27) - 21.27 - - - - - - - -	reserve on stock	options lapse	Employee stock 45 - - - - 12.71 - - - - - - - 12.71 - 12.71	compensation expenses	Pursuant to exchange - - - - - - - - - - - - - (2.53) (2.53)	movement	Balance as at 4.06 341.00 17,321.88 601.61 20.46 (4,063.14) 4,036.96 23.08 (672.14) (57.60) 5,292.36 (154.15) 22,694.38 240.88 22,935.26	March 31, 2022	The accompanying notes are an integral part of the consolidated fnancial statements As per our report of even date attached	forB S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited	Chartered Accountants	Firm Registration Number: 101248W/ W-100022	Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO Membership Number: 060573 DIN : 00084845 DIN: 07803242	Manjula R. Bengaluru, May 24, 2022 Company Secretary Membership Number: A30515

Annual Report 2021-22 | 123

122 |

Strides Pharma Science Limited

Consolidated Statement of Cash Flow for the year ended March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

			HIn Million
		31-Mar-22	31-Mar-21
Cash fow from operating activities Proft / (loss) before tax from: Continuing operations Discontinued operations Adjustments for: - Depreciation and amortisation expense - Share of loss of joint ventures and associates - Gain on sale of property, plant and equipment, other intangible assets and investment property (net) - Share based compensation expense - Unwinding/ cancellation of gross obligations and contingent consideration - Interest expense on borrowings and others - Interest and dividend income - Gain on disposal of assets / settlement of liabilities attributable to the discontinued operations (net) (Refer note 40) - Rental income from investment property - Liability / provision no longer required written back - Bad debts written off / provision for doubtful trade and other receivables - Write down of inventories and other assets - Impairment and cost associated with disposal of facility (Refer note 35) - Impairment of investment in an associate - Sales returns, write down of inventory and other expenses on account of product withdrawal - Gain on sale of investment in subsidiaries/ associates - Gain on lease modifcations - Gain on dilution of investment in an associate - Loss on sale of business unit - Fair valuation gain on acquisition of controlling shares in an associate (Refer note 39) - Net unrealised exchange gain Operating proft / (loss) before working capital changes Changes in working capital Increase in trade and other receivables Decrease / (Increase) in inventories (Decrease) / Increase in trade and other payables Net change in working capital Cash (utilised in) / generated from operations Income taxes refund received		(6,525.13) -	2,754.39 139.41
		(6,525.13) 2,330.14 1,108.12 (112.47) (7.09) (11.27) 1,767.44 (1,076.15) - (60.33) - 1.78 46.76 1,727.16 - 552.34 (29.36) (18.73) (529.26) 154.37 - (20.71)	2,893.80 2,062.87 978.19 (23.38) 68.02 86.40 1,500.65 (364.94) (139.41) (76.99) (7.45) 94.61 - - 81.99 750.50 - - (323.00) - (25.30) (1,029.61)
		(702.39) (587.95) 281.86 (1,592.95)	6,526.95 (1,247.75) (4,140.49) 2,107.70
		(1,899.04)	(3,280.54)
		(2,601.43) 23.28	3,246.41 1,567.96
Net cash fow (utilised in) / generated from operating activities Cash fow from investing activities Capital expenditure for property, plant and equipment and intangible assets, including capital advance Proceeds from sale of property, plant and equipment, investment property and intangible assets Short-term investments in funds Purchase of long-term investments including investment in associates Consideration paid towards acquisition of non-controlling interest in subsidiary and business combinations, net of cash acquired (Refer note 39) Proceeds from sale of investment in mutual funds	A	(2,578.15)	4,814.37
		(1,433.83) 753.74 (540.61) (51.06) (2,195.13) 1,545.05	(2,974.84) 39.58 (150.00) (2,456.33) (78.86) 324.74

Consolidated Statement of Cash Flow for the year ended March 31, 2022

==> picture [496 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

			HIn Million
		31-Mar-22	31-Mar-21
Proceeds from sale of long-term investments including discontinued operations, net of expenses and cash (Refer note 40) Rent deposit given Proceeds from / (investments in) fxed deposits with maturity of more than 3 months, net Rental income from investment property Interest and dividends received(net of tax on dividend)		127.30 (11.21) 488.54 62.52 67.36	97.69 (0.10) (167.13) 88.35 68.69
Net cash fow utilised in investing activities	B	(1,187.33)	(5,208.21)
Cash fow from fnancing activities Proceeds from issue of equity shares Proceeds from long-term borrowings Repayment of long-term borrowings Net increase / (decrease) in working capital and short-term borrowings Lease payments Dividends paid (net of tax on dividend) Proceeds from issue of shares to minority shareholders Interestpaid on borrowings(Refer note(ii)below)		36.18 4,506.57 (2,681.26) 4,564.32 (450.39) (224.31) - (1,537.95)	34.99 5,674.58 (2,100.94) (1,824.26) (370.98) (179.15) 1.67 (1,393.87)
Net cashgenerated from /(utilised in) fnancing activities	C	4,213.16	(157.96)
Net increase /(decrease) in cash and cash equivalents	(A+B+C)	447.68	(551.80)
Cash and cash equivalents at the beginning of the year Effect of exchange differences on restatement of foreign currency cash and cash equivalents		1,258.34 1.28	1,822.34 (12.20)
**Cash and cash equivalents at the end of theyear ***		1,707.30	1,258.34
*** Comprises: Cash on hand Balance with banks:** - In current accounts - In deposit accounts - Funds-in-transit		2.71 1,573.41 14.61 116.57	2.96 1,056.70 5.27 193.41
Total		1,707.30	1,258.34

Notes:

• (i) The consolidated cash flow statement reflects the combined cash flows pertaining to continuing and discontinued operations. Refer note 40 for cash flows from discontinued operations.

• (ii) Interest paid is inclusive of borrowing cost capitalised on property, plant and equipment H 8.15 Million (Previous year H 40.11 Million).

The accompanying notes are an integral part of the consolidated financial statements As per our report of even date attached

for B S R & Co. LLP

for and on behalf of Board of Directors of Strides Pharma Science Limited

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta Partner

Badree Komandur

Arun Kumar

Executive Chairperson and Managing Director Executive Director - Finance & Group CFO DIN: 00084845 DIN: 07803242

Membership Number 060573

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number A30515

Annual Report 2021-22 | 125

124 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

equity infusion in the year ending 31 March 2023 and the steps undertaken by management as noted above, management believes that the Group will be able to continue generating sufficient cash in the foreseeable future to meet its obligations as they fall due.

Note No. 01 General information

Strides Pharma Science Limited (the ‘Company’ or ‘Strides’) and its subsidiaries (together referred to as the ‘Group’) are into the development and manufacture of pharmaceutical products. The Group has its registered office situated at 201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400703, with corporate office in Bengaluru, India and operates across many countries spreading across developed and emerging markets. Strides is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India.

2.1 Statement of compliance

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

Note No. 02 Basis of preparation of consolidated financial statements

These consolidated Ind AS financial statements (‘consolidated financial statements’) were approved by the Board of Directors and authorised for issue on May 24, 2022.

The Group has incurred loss of H 4,742.50 million and has negative operating cash flows amounting to H 2,578.16 million for the year ended 31 March 2022 on account of continuing pricing pressure in some of its key geographies consequent to effects of COVID. Management of the Group have obtained relaxations for compliance with financial covenants for year ended March 31, 2022, as these have not been met as of the date of the issue of financial statements. Further, as of 31 March 2022, the Company has provided guarantees aggregating to H 9,419.83 million in relation to the borrowings of one of its associates (‘the Associate’), out of which H 6,016 million is outstanding as on 31 March 2022, for which there is a material uncertainty to continue as a going concern. The Associate has requested for temporary relaxations for compliance with these financial covenants from the lenders as these have not been met as of the date of these consolidated financial statements. Also refer note 9 of these consolidated financial statements.

2.2 Functional and presentation currency

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

2.3 Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following items:

Further, to mitigate the situation, the Group has raised long- term and other financing facilities amounting to H 500 million post year ended 31 March 2022 and has issued equity warrants to the entity which is part of the Promoter group that is expected to provide additional equity of H 884 million by 31 March 2023. The Group has cash and cash equivalents of H 1,707.30 million as at 31 March 2022 and also undrawn borrowing facilities available from certain lenders. The Group expects to improve operating profits from the newly acquired business in the US and from cost reductions consequent to capacity optimization at some of its manufacturing locations from April 2022 and by monitoring of freight and other expenses.

• Certain financial assets and liabilities (including derivative instruments) are measured at fair value;

• Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations; and

• Equity settled share based payments that are measured at fair value

2.4 Basis of consolidation

The consolidated financial statements includes the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Group:

Accordingly, based on the fact that the Group had generated positive operating cash flows in the previous year and expects to generate positive operating cash flows in future periods, temporary relaxations from lenders for compliance with financial covenants related to borrowings, its ability to raise new financing facilities, full utilisation of existing facilities, expected

has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

• are eliminated, but only to the extent that there is no evidence of impairment. All temporary differences that arise from the elimination of profits and losses resulting from intragroup transactions are recognised as per Ind AS 12 Income Taxes.

• has the ability to use its power to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Changes in the Group’s ownership interests in existing subsidiaries

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.

When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including:

• the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

When the Group loses control of a subsidiary, a gain or loss is recognised in statement of profit and loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to statement of profit and loss or transferred to another category of equity as specified/permitted by applicable Ind AS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under Ind AS 109, or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

• potential voting rights held by the Group, other vote holders or other parties;

• rights arising from other contractual arrangements; and

• any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit and loss from the date the Group gains control until the date when the Group ceases to control the subsidiary.

Refer note 50 for details of subsidiaries considered in these consolidated financial statements.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

2.5 Use of estimates and judgements

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

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.

The financial statements of the Group are consolidated on line-by-line basis. Intra-group transactions, balances and any unrealised gains arising from intragroup transactions, are eliminated. Unrealised losses

Annual Report 2021-22 | 127

126 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

estimates are reflected in the consolidated financial

2.6 Assumption and estimation uncertainty

statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial statements.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending March 31, 2022 is included in the following notes:

2.5.1 Judgements

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

• Note 12, 36 — taxation including deferred taxes;

• Note 28 — accruals for charge backs, rebates and sales returns;

• Note 2.2 — Assessment of functional currency;

• Note 11 — impairment of financial assets;

• Note 3.5 — Revenue recognition: whether revenue from sale of product and services is recognised overtime or at a point of time;

• Note 7, 9 — Impairment of non financial assets

• Note 42 — litigations

• Note 5 — Whether an agreement contains a lease;

2.7 Operating cycle

• Note 3.18 and 51 — Financial instruments;

As mentioned in para 1 above under `Corporate information’, the Group is into development and manufacture of pharmaceutical products. Based on the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 3 years to 5 years and 12 months relating to research and development activities and manufacturing of pharmaceutical products respectively. The above basis is used for classifying the assets and liabilities into current and non-current as the case may be.

• Note 3.12, 3.13 and 3.14— Useful lives of property, plant and equipment, intangible assets and investment property;

• Note 46 — measurement of defined benefit obligation; key actuarial assumptions;

• Note 3.11 and 42— Provision for income taxes and related tax contingencies and evaluation of recoverability of deferred tax assets;

2.8 Cash flow statement

• Note 3.15 — Impairment testing for non financial assets.

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities), investing and financing activities of the Group are segregated.

2.5.2 Control over subsidiaries

The following entities are considered subsidiaries of the Group even though the Group and non-controlling interests have about 50% of the ownership interest and the voting rights in such entities:

==> picture [242 x 23] intentionally omitted <==

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

H In Million
Proportion of ownership
----- End of picture text -----

	Proportion of ownership	Proportion of ownership
Name of the entities	interest and voting power held by the Group
	31-Mar-22	31-Mar-21
1. Universal Corporation Limited 2. Trinity Pharma (Pty) Limited 3. Apollo Life Sciences Holdings (Pty)Limited	51% 51.76% 51.76%	51% 51.76% 51.76%

2.9 Measurement of fair values

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

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

The management of the Group assessed whether or not the Group has control over the above mentioned entities based on whether the Group has the practical ability to direct the relevant activities of such entities unilaterally. Based on such assessment, the directors concluded that the Group has sufficient management rights to unilaterally direct the relevant activities of such entities and therefore the Group has control.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that:

either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Taxes and Ind AS 19 Employee Benefits respectively;

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

liabilities or equity instruments related to sharebased payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payment at the acquisition date (see note 3.10.2); and

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

assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Noncurrent Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

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

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in the following notes:

In case of a bargain purchase, before recognising a gain in respect thereof, the Group determines whether there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. Thereafter, the Group reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and recognises any additional assets or liabilities that are identified in that reassessment. The Group then reviews the procedures used to measure the amounts that Ind AS requires for the purposes of calculating the bargain purchase. If the gain remains after this reassessment and review, the Group recognises it in other comprehensive income and accumulates the same in equity as capital reserve. This gain is attributed to the acquirer. If there does not exist clear evidence of the underlying reasons for classifying the business combination as a bargain purchase, the Group recognises the gain, after reassessing and reviewing (as described above), directly in equity as capital reserve.

• Note 45 — share based payments;

• Note 6 — investment property

• • Note 3.18 and 51 — financial instruments;

Note No. 03 Significant accounting policies

3.1 Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange of control of the acquiree. Acquisitionrelated costs are generally recognised in statement of profit and loss as incurred.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the

Annual Report 2021-22 | 129

128 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

if known, would have affected the amounts recognised at that date.

recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another Ind AS.

3.2 Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

For the purposes of impairment testing, goodwill is allocated to cash-generating units. The allocation is made to those cash generating units or groups of cash generating units that are expected to benefit from the business combination in which such goodwill arose.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in statement of profit and loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at fair value at subsequent reporting dates with the corresponding gain or loss being recognised in statement of profit and loss.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

The Group’s policy for goodwill arising on the acquisition of an associate and a joint venture is described at note 3.3 below.

When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in statement of profit and loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to statement of profit and loss where such treatment would be appropriate if that interest were disposed of.

3.3 Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that,

The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

thereof, is classified as held for sale, in which case it is accounted for in accordance with Ind AS 105. Under the equity method, an investment in an associate or a joint venture is initially recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the associate or joint venture. Distributions received from an associate or a joint venture reduce the carrying amount of the investment. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture, or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with Ind AS 109. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to statement of profit and loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to statement of profit and loss (as a reclassification adjustment) when the equity method is discontinued.

An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised directly in equity as capital reserve in the period in which the investment is acquired.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

After application of the equity method of accounting, the Group determines whether there is any objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment in an associate or a joint venture and that event (or events) has an impact on the estimated future cash flows from the net investment that can be reliably estimated. If there exists such an objective evidence of impairment, then it is necessary to recognise impairment loss with respect to the Group’s investment in an associate or a joint venture.

When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies to statement of profit and loss the proportion of the gain or loss that had previously been recognised in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to statement of profit and loss on the disposal of the related assets or liabilities.

When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with Ind AS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of the investment subsequently increases.

3.4 Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than

Annual Report 2021-22 | 131

130 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

3.5.1 Sale of goods

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

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a noncontrolling interest in its former subsidiary after the sale.

When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified as held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. The Group discontinues the use of the equity method at the time of disposal when the disposal results in the Group losing significant influence over the associate or joint venture.

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

After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture in accordance with Ind AS 109 unless the retained interest continues to be an associate or a joint venture, in which case the Group uses the equity method (see the accounting policy regarding investments in associates or joint ventures above).

Profit share revenues

The Group from time to time enters into marketing arrangements with certain business partners for the sale of its products in certain markets. Under such arrangements, the Group sells its products to the business partners at a base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the business partner’s ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Such arrangements typically require the business partner to provide confirmation of units sold and net sales or net profit computations for the products covered under the arrangement.

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

3.5 Revenue from contracts with customers

The Group recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to recognise revenue as below:

Step 1: Identify the contract(s) with a customer

Revenue is an amount equal to the base purchase price is recognised in these transactions upon delivery

Step 2: Identify the performance obligation in contract

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

incentive payment is recognised as an expense as the same is in the nature of commission.

of products to the business partners. An additional amount representing the profit share component is recognised as revenue in the period which corresponds to the ultimate sales of the products made by business partners only when the collectability of the profit share becomes probable and a reliable measurement of the profit share is available. Otherwise, recognition is deferred to a subsequent period pending satisfaction of such collectability and measurability requirements. In measuring the amount of profit share revenue to be recognised for each period, the Group uses all available information and evidence, including any confirmations from the business partner of the profit share amount owed to the Group, to the extent made available before the date the Company’s Board of Directors authorises the issuance of its financial statements for the applicable period.

Chargebacks / Reptos claims by the wholesalers /

distributors and Price Protections

Chargebacks and reptos claims are estimated on the basis of the average trend of the past years and recognised as reduction to revenue.

3.5.2 Rendering of services

Revenue from services rendered, which primarily relate to contract research, is recognised in the consolidated statement of profit and loss as the underlying services are performed. Upfront payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.

3.5.3 Royalty, sale of licenses and Intellectual

Sale to Distributors

property rights

The Group appoints distributors in various territories who purchases the goods from the Group and thereafter sells them in the territory. In case the distributor is acting as an agent, the Group defers revenue recognition till the time goods are sold by the distributor to the end customer. On the other hand, if the distributor is principal, revenue is recognised upon the transfer of significant risks and rewards of ownership of the goods to the distributor.”

The Group enters into certain dossier sales, royalties, licensing and supply arrangements with various parties. Income from licensing arrangements is generally recognised over the term of the contract. Some of these arrangements include certain performance obligations by the Group. Revenue from such arrangements is recognised in the period in which the Group completes all its performance obligations.

Right to reject or return goods

3.5.4 Dividend and interest income

The Group sells its products to the customers with a right to return the goods within the specified period of time. If the probability of acceptance by the customer is uncertain, recognition of revenue is deferred till the expiry of right to return or acceptance by the customer whichever is earlier.

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably).

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Free samples

The Group distributes free samples to distributors, at various exhibitions and at medical conferences. The cost of samples distributed at exhibitions, medical conferences or to doctors directly are treated as marketing expense and clubbed under “Business Promotion Expense”. However, free samples given to distributors (that are not acting as agents) is recognised as cost of goods sold. In case the free samples are not delivered at the same time as the related sales consignment, a reliable provision is made in this regard.

3.5.5 Rental income

The Group’s policy for recognition of revenue from operating leases is described in note 3.6.1 below.

Price Variations / Incentives

3.5.6 Export Incentives

Incentives are accounted based on the assessment of whether the beneficiary (of the incentive) is acting as a principal or an agent. Where the beneficiary is a principal, the incentive is regarded as consideration paid to the customer and is reduced from revenue. However, where the beneficiary is an agent, the

Export incentives are accrued for based on fulfilment of eligibility criteria for availing the incentives and when there is no uncertainty in receiving the same. These incentives include estimated realisable values/

Annual Report 2021-22 | 133

132 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

benefits from special import licenses and benefits under specified schemes as applicable.

use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

3.6 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 Company uses the definition of a lease in Ind AS 116. This policy is applied to contracts entered into, on or after 1 April 2019.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-ofuse asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

3.6.1 The Group as lessor

At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative standalone prices.

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease. The Group recognises lease payments received under operating leases as income on a straightline basis over the lease term.

• Lease payments included in the measurement of the lease liability comprise the following:

• fixed payments, including in-substance fixed payments;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

3.6.2 The Group as lessee

• At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

amounts expected to be payable under a residual value guarantee; and

the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), are recognised initially in other comprehensive income and reclassified from equity to statement of profit and loss on repayment of the monetary items. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognised in other comprehensive income and accumulated in the separate component of equity, will be reclassified from equity to statement of profit and loss when the gain or loss on disposal is recognised.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into Indian Rupees using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Company’s significant leasing arrangements are mainly in respect of factory land and buildings, residential and office premises.

On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to the statement of profit and loss.

3.7 Foreign currencies transactions and translation

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in statement of profit and loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to the statement of profit and loss.

Exchange differences arising on settlement or translation of monetary items are recognised in statement of profit and loss in the period in which they arise except for:

• exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets, and

• Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.

• exchange differences on monetary items receivable from or payable to a foreign operation for which

Annual Report 2021-22 | 135

134 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

the beginning of the period to the net defined benefit

3.8 Borrowing costs

liability or asset.

Borrowing costs include:

• (i) interest expense calculated using the effective interest rate method,

• The retirement benefit obligation recognised in the consolidated balance sheet represents the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

• (ii) finance charges in respect of finance leases, and

• (iii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

3.9.3 Compensated absences

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

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

3.9 Employee benefits

3.10 Share-based payment arrangements

3.9.1 Short-term employee benefits

3.10.1 Share-based payment transactions of the

All employee benefits falling due wholly within twelve months of rendering the services are classified as shortterm employee benefits, which include benefits like salaries, wages, short-term compensated absences and performance incentives and are recognised as expenses in the period in which the employee renders the related service.

Company

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the equitysettled share-based payments is expensed on a straightline basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

3.9.2 Post-employment benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost is recognised in statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at

3.10.2 Cash setted share-based payment transactions of the Company

The fair value of the amount payable to employees in respect of cash settled share based payments is recognised as an expense with the corresponding increase in liabilities, over the period during which the employees becoming unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

the underlying options. Any changes in the liability are recognised in the statement of profit or loss.

3.11.1 Current tax

The current tax payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

3.10.3 Share-based payment transactions of the

acquiree in a business combination

When the share-based payment awards held by the employees of an acquiree (acquiree awards) are replaced by the Group’s share-based payment awards (replacement awards), both the acquiree awards and the replacement awards are measured in accordance with Ind AS 102 (“market-based measure”) at the acquisition date. The portion of the replacement awards that is included in measuring the consideration transferred in a business combination equals the market-based measure of the acquiree awards multiplied by the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the acquiree award. The excess of the market-based measure of the replacement awards over the market-based measure of the acquiree awards included in measuring the consideration transferred is recognised as remuneration cost for postcombination service.

3.11.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

However, when the acquiree awards expire as a consequence of a business combination and the Group replaces those awards when it does not have an obligation to do so, the replacement awards are measured at their market-based measure in accordance with Ind AS 102. All of the market-based measure of the replacement awards is recognised as remuneration cost for post-combination service.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences can be utilised and they are expected to reverse in the foreseeable future.

At the acquisition date, when the outstanding equitysettled share-based payment transactions held by the employees of an acquiree are not exchanged by the Group for its share-based payment transactions, the acquiree share-based payment transactions are measured at their market-based measure at the acquisition date. If the share-based payment transactions have vested by the acquisition date, they are included as part of the non-controlling interest in the acquiree. However, if the share-based payment transactions have not vested by the acquisition date, the market-based measure of the unvested share-based payment transactions is allocated to the non-controlling interest in the acquiree based on the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the share-based payment transaction. The balance is recognised as remuneration cost for post-combination service.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

3.11 Taxation

Income tax expense represents the sum of the current tax payable and deferred tax.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from

Annual Report 2021-22 | 137

136 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

capitalised in accordance with the Group’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the group. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set-off against future tax liability. Accordingly, MAT is recognised as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

The non refundable payments made with respect to Land taken on finance lease (where there is an option to purchase the same at the end of the lease period) is classified under Property, plant and Equipment as “Lease hold Land”.

Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

3.11.2.1 Deferred Tax on Undistributed Earnings

When only a portion of undistributed earnings is remitted to the parent entity by its subsidiary, the parent recognises a deferred tax liability only for the portion of the undistributed earnings expected to be remitted in the foreseeable future.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term and their useful lives.

3.11.2.2 Deferred Tax on Unrealised Profits

The intragroup elimination is made as a consolidation adjustment and not in the financial statements of any individual reporting entity. Therefore, the elimination will result in the creation of a temporary difference, as far as the group is concerned, between the carrying amount of the inventories in the consolidated financial statements and the tax base (assumed to be the carrying amount in the purchaser’s individual financial statements). The deferred tax effects arising in respect of this temporary difference is recognised. The tax rate used while recognising the deferred tax balance arising from the elimination of unrealised profits on intragroup transactions is determined by reference to the tax rate in the purchaser’s jurisdiction where the temporary difference will reverse.

Depreciation on property, plant and equipment has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed to be different and are as under based on technical advice, 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.:

Dies and punches : 4 years Mobile phones : 3 years Certain factory buildings : 18 years Freehold land is not depreciated.

3.12 Property, plant and equipment

Property, plant and equipment held for use in the production or supply of goods or services, or for administrative purposes, are stated in the consolidated balance sheet at cost less accumulated depreciation and accumulated impairment losses (if any).

Depreciation on property, plant and equipment of the Group’s foreign subsidiaries has been provided on straight-line method as per the estimated useful life of such assets as follows:

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

properties generally have a useful life of 25-60 years. The useful life has been determined based on technical evaluation performed by the management’s expert.

Building : 20 years to 30 years General plant and machinery : 4 years to 20 years Furniture and fixtures : 5 years to 16 years Office equipment : 3 years to 6 years Motor vehicles : 8 years Computers and data : 3 years to 6 years processing equipment

Invetsment poperties are derecognised on disposal or when the investment properties are permanently withdrawn from use and no future economic benefits are exepcted from its disposal. The gains or losses from the disposal of investment properties are determined as difference between the carrying amount of the investment properties and the net disposal proceeds and are recognised in the statement of profit or loss in the period in which it is disposed.

Freehold land is not depreciated.

3.14 Intangible assets

Individual assets costing less than H 5,000 are depreciated in full in the year of purchase.

3.14.1 Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses (if any).

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

When an item of property, plant and equipment is acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets, the cost of that item is measured at fair value (even if the entity cannot immediately derecognise the asset given up) unless the exchange transaction lacks commercial substance or the fair value of neither the asset received nor the asset given up is reliably measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up.

3.14.2 Internally-generated intangible assets - research and development expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. · 3.13 Investment property Properties that is held for long-term rentals or for · capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Investment property is measured initially at its · cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure · is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the group and the cost · of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of the investment property is replaced, the carrying amount of the replaced part is derecognised. ·

the technical feasibility of completing the intangible asset so that it will be available for use or sale;

the intention to complete the intangible asset and use or sell it;

the ability to use or sell the intangible asset;

how the intangible asset will generate probable future economic benefits;

the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

the ability to measure reliably the expenditure attributable to the intangible asset during its development.

·

Investment properties are depreciated using the straight line method over their estimated useful lives. Investment

Annual Report 2021-22 | 139

138 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the twelve-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly, since initial recognition.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in statement profit and loss in the period in which it is incurred.

3.15.2 Impairment of goodwill and investments in

associates and joint ventures: Refer notes 3.2 and 3.3.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

3.15.3 Impairment of non-financial assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

3.14.3 Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost).

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

3.14.4 Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

3.14.5 Useful lives of intangible assets

Intangible assets are amortised over their estimated useful life on straight line method as follows:

Registration and Brands : 5 years to 25 years

Software Licenses : 5 years

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in statement of profit and loss.

Customer/supply contracts are amortised over the period of the contract or useful life, whichever is less.

Intangible assets with indefinite useful lives are not amortized and tested for impairment annually.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.

3.15 Impairment of assets

3.15.1 Impairment of financial assets:

The Group assesses at each date of balance sheet, whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured though a loss allowance. The Group recognises lifetime expected losses for all contract assets and / or all trade receivables that do

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

the obligations under the contract exceed the economic benefits expected to be received from the contract.

3.16 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads. Cost is determined as follows:

3.17.2 Contingent liabilities

Contingent liabilities are disclosed in notes when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Raw materials, packing materials, stores and spares: weighted average basis

3.18 Financial instruments

3.18.1 Financial assets and financial liabilities

Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual provisions of the instruments.

Work-in progress: at material cost and an appropriate share of production overheads

Finished goods: material cost and an appropriate share of production overheads, wherever applicable

Initial recognition and measurement:

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in statement of profit and loss.

Stock-in trade: weighted average basis

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

3.17 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Subsequent measurement:

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and selling financial assets.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

The Group has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of equity instruments in Outlook Therauputics Inc. and Sonnet Biotherapeutics Holdings Inc. which is not held for trading.

3.17.1 Onerous contracts

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting

Annual Report 2021-22 | 141

140 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Financial assets at fair value through profit or loss

effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the statement of profit and loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the statement of profit and loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the statement of profit and loss.

Financial assets are measured at fair value through profit or loss unless it measured at amortised cost or fair value through other comprehensive income on initial recognition. The transaction cost directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in the statement of profit and loss.

Financial liabilities

Financial liabilities are measured at amortised cost using effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

3.18.2 Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Equity instruments recognised by the Group are recognised at the proceeds received net off direct issue cost.

3.18.3 Derivative financial instruments and hedge

b) Fair value hedge

The Group designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange rates and commodity prices.

accounting

The Group uses various derivative financial instruments such as interest rate swaps, currency swaps and forward contracts to mitigate the risk of changes in interest rates and foreign exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently 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.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the statement of profit and loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to statement of profit and loss over the period of maturity.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement of profit and loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to the statement of profit and loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

3.18.4 Hedges of net investments in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated under the heading of foreign currency translation reserve. The gain or loss relating to the ineffective portion is recognised immediately in statement of profit and loss, and is included in the ‘Other income’ line item.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

• The Group designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the

Gains and losses on the hedging instrument relating to the effective portion of the hedge accumulated in the foreign currency translation reserve are reclassified to statement of profit and loss on the disposal of the foreign operation.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

3.18.5 Written put options issued to the noncontrolling interests:

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and that either reduces earnings per share or increases loss per share are included. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented in case of share splits.

The Group has issued written put option to noncontrolling interests in certain subsidiaries of the Group in accordance with the terms of underlying agreement with such option holders. Should the option be exercised, the Group has to settle such liability by payment of cash.

3.22 Operating segments

Accounting on initial recognition:

The amount that may become payable under the option on exercise is recognised as a financial liability at its present value with a corresponding charge directly to the shareholders’ equity.

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

Subsequent measurement:

The liability is subsequently accreted through finance charges recognised under exceptional items in the statement of profit and loss upto the redemption amount that is payable at the date on which the option first becomes exercisable. In the event that the option expires unexercised, the liability is derecognised with a corresponding adjustment to equity.

3.19 Exceptional items

When an item of income or expense within profit or loss from ordinary activity is of such size, nature or incidence that their disclosure is relevant to explain the performance of the Group for the year, the nature and amount of such items are disclosed as exceptional items.

3.23 Recent accounting developments

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below

3.20 Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and cash at banks, demand deposits and short-term deposits with an original maturity of three months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of our cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

Ind AS 103 – Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

3.21 Earnings per share

Basic Earnings Per Share (‘EPS’) is computed by dividing the net profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Ind AS 16 – Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such

Annual Report 2021-22 | 143

142 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 109 – Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a

Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 – Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

HIn Million	Gross block Accumulated depreciation Net block	Particulars As at April 1, 2021 Effects of foreign currency exchange differences and regroupings Additions during the year Disposals during the year Acquisition through business combinations referred in note 39 Derecognised on disposal of business as referred in note 40 As at March 31, 2022 As at April 1, 2021 Effects of foreign currency exchange differences and regroupings Depreciation for the year Eliminated on disposals of assets Eliminated on disposal of a businesses referred in note 40 As at March 31, 2022 As at March 31, 2022 As at March 31, 2021	Freehold Land 991.54 (0.28) - - 341.69 - 1,332.95 - - - - - - 1,332.95 991.54	989.67 1.87 - - - - 991.54 - - - - - - 991.54 989.67	Leasehold 49.86 - - - - - 49.86 - - - - - - 49.86 49.86	Land 49.86 - - - - - 49.86 - - - - - - 49.86 49.86	Buildings 2,856.64 9.63 44.50 0.19 1,301.44 6.70 4,205.32 570.29 (2.10) 165.73 0.02 6.62 727.28 3,478.04 2,286.35	2,868.17 (43.52) 52.00 20.01 - - 2,856.64 460.16 (3.97) 134.10 20.00 - 570.29 2,286.35 2,408.01	Plant and 9,858.73 105.10 1,017.53 83.17 499.30 - 11,397.49 3,153.92 11.52 960.75 51.14 - 4,075.05 7,322.44 6,704.81	equipments 8,981.38 (146.94) 1,105.51 81.22 - - 9,858.73 2,386.54 (30.17) 843.32 45.77 - 3,153.92 6,704.81 6,594.84	Furniture and 314.04 3.17 25.48 0.23 - 7.82 334.64 151.20 0.80 38.85 0.09 7.25 183.51 151.13 162.84	fxtures 290.15 (2.28) 25.89 0.11 0.39 - 314.04 115.10 0.19 36.02 0.11 - 151.20 162.84 175.05	Vehicles 72.94 (0.01) 11.60 20.14 - - 64.39 37.36 (0.17) 8.26 12.99 - 32.46 31.93 35.58	79.89 (0.95) 7.98 13.98 - - 72.94 36.90 (0.69) 10.47 9.32 - 37.36 35.58 42.99	Offce 1,018.55 5.90 242.33 18.16 - 3.40 1,245.22 560.86 3.76 250.53 15.47 3.40 796.28 448.94 457.69	equipments 840.90 (2.87) 182.19 4.16 2.49 - 1,018.55 414.11 (1.62) 152.35 3.98 - 560.86 457.69 426.79	Total 15,162.30 123.51 1,341.44 121.89 2,142.43 17.92 18,629.87 4,473.63 13.81 1,424.12 79.71 17.27 5,814.58 12,815.29 10,688.67	Previous year 14,100.02 (194.69) 1,373.57 119.48 2.88 - 15,162.30 3,412.81 (36.26) 1,176.26 79.18 - 4,473.63 10,688.67	Notes:	(i) Figures in italics relates to previous year.	(ii) The above assets, other than to the extent mentioned in notes (iii), are owned by the Group.	(iii) In 2008, the Group had entered into a lease cum sale agreement with Karnataka Industrial Area Development Board for purchase of land under a lease cum sale	agreement. The Group is in the process of transferring the said land in its name.	(iv) Refer note 22 for details of property, plant and equipment pledged as security towards borrowings.

Annual Report 2021-22 | 145

144 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 04 (ii). Capital-Work-in Progress (CWIP) ageing schedule

==> picture [494 x 18] intentionally omitted <==

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

H In Million
----- End of picture text -----

CWIP	Amount in CWIP for aperiod of	Total
	Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
As on March 31, 2022 Projects in progress Projects temporarily suspended As on March 31, 2021 Projects in progress Projects temporarilysuspended	464.76 48.15 41.11 8.27 - - - - 1,624.53 559.95 42.24 49.30 - - - -	562.29 - 2,276.02 -

There are no capital work-in-process whose completion is overdue or has exceeded its cost compared to its original plan as at March 31, 2022 and March 31, 2021.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

HIn Million	Net block		As at March 31, 2022 As at March 31, 2022 As at April 1, 2021	559.94 1,758.86 2,029.78	452.08 2,029.78 2,467.29	87.99 - -	87.99 - 4.34	647.93 1,758.86 2,029.78	540.07 2,029.78		HIn Million		31-Mar-22 31-Mar-21	465.98 345.70	1,864.67 2,102.67	2,330.65 2,448.37
	Accumulated amortisation		Effects of foreign currency exchange differences and regroupings Amortisation for the year De-recognition	10.73 293.15 (196.02)	(5.83) 271.98 (16.70)	- - -	- 4.34 -	10.73 293.15 (196.02)	(5.83) 276.32 (16.70)
	Gross block		Effects of foreign currency exchange differences and regroupings Additions during the year De-recognition As at March 31, 2022 As at April 1, 2021	68.57 598.19 (829.82) 2,318.80 452.08	(65.17) 57.43 (180.32) 2,481.86 202.63	- - - 87.99 87.99	- - - 87.99 83.65	68.57 598.19 (829.82) 2,406.79 540.07	(65.17) 57.43 (180.32) 2,569.85 286.28
			As at April 1, 2021	2,481.86	2,669.92	87.99	87.99	2,569.85	2,757.91
			Particulars	Buildings		Offce equipments		Total	Previous year	(ii) Lease Liabilities			Particulars	Current	Non- Current

Annual Report 2021-22 | 147

146 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

(iii) Amounts Recognised in the statement of Profit or Loss

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Amortisation Charge of Right-Of-Use asset Buildings Offce Equipment	293.15 -	271.98 4.34
Total Depreciation	293.15	276.32
Less: Capitalised	(10.03)	(48.10)
Net Depreciation charged to statement ofproft and loss	283.12	228.22
Interest Expense (Included in Finance Cost) Less: Interest capitalized	176.62 (8.15)	188.85 (40.11)
Net Interest charged to statement ofproft and loss	168.47	148.74
Other Income on account of lease modifcation Other expenses relatingto leases, not included in leasepayments	18.73 80.89	- 71.96

(iv) Total cash outflow

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Buildings Offce equipments	450.39 -	370.98 -
	450.39	370.98

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

• (iii) Details of assets held by Trust and for capital appreciation and not given under lease:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Gross block	Net block
	31-Mar-22 31-Mar-21	31-Mar-22 31-Mar-21
Buildings	7.72 7.72	3.58 4.00
Total	7.72 7.72	3.58 4.00

(iv) Fair value of investment properties

The fair value of the Company’s investment properties as at March 31, 2022 has been arrived at H 949 Million (previous year: H 1,579 Million) on the basis of a valuation carried out by independent valuers. The said valuers are registered with the authority which governs valuers in India and have appropriate qualifications and relevant experience in the valuation of properties in the relevant locations. The fair value has been catergorised as level 3 hierarchy based on the inputs used in valuation technique. The inputs used are as follows:

• Monthly market rent, taking into account the differences in location, and individual factors, such as frontage and size, between the comparables and the property; and

• Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition.

• (v) Refer note 22 for details of investment properties pledged as security towards borrowings.

• (vi) During the current year the company has sold an investments property with a net book value of H 525.03 million for a total consideration of H 630 million.

Note No. 06 Investment property

H In Million

Particulars	Gross block	Accumulated depreciation As at April 1, 2021 Depreciation for the year Eliminated on disposals of assets As at March 31, 2022 - - - - - - - - 285.60 25.59 301.16 10.03 239.93 45.67 285.60 285.60 25.59 301.16 10.03 239.93 45.67 - 285.60	Net block
	As at April 1, 2021 Additions during the year Disposals during the year As at March 31, 2022		As at March 31, 2022 As at March 31, 2021
Land Building	147.27 - 115.96 31.31 147.27 - - 147.27 820.68 - 710.23 110.45 820.68 - - 820.68		31.31 147.27 147.27 147.27 100.42 535.08 535.08 580.75
Total	967.95 - 826.19 141.76		131.73 682.35
Previousyear	967.95 - - 967.95		682.35

Notes:

• (i) Figures in italics relates to previous year.

(ii) Details of assets given under an operating lease:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Gross block	Net block
	31-Mar-22 31-Mar-21	31-Mar-22 31-Mar-21
Freehold Land Buildings	31.31 147.27 102.73 812.96	31.31 147.27 96.84 531.08
Total	134.04 960.23	128.15 678.35

(vii) Amounts recognised in profit or loss for investment properties

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Rental income Gain on sale of investment property Depreciation expense	60.33 104.97 (25.59)	76.99 - (45.67)
Proft from investmentproperties	139.71	31.32

Note No. 07 Goodwill

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	As at April 1, 2021	Effects of foreign currency exchange differences	Acquisition through business combinations	Derecognised on disposal of business	As at March 31, 2022
Goodwill	4,805.40 4,285.58	80.48 (33.00)	- 552.82	(26.81) -	4,859.07 4,805.40

Notes:

• (i) Figures in italics relates to previous year.

(ii) Allocation of goodwill to cash generating units (CGU):

Goodwill has been allocated for impairment testing purposes to the following cash-generating units:

United States of America (USA)

• Other regulated markets

• Emerging markets

• Institutional business

Annual Report 2021-22 | 149

148 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

The carrying amount of goodwill are allocated to cash-generating units as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Cashgenerating units	31-Mar-22	31-Mar-21
United States of America (USA) Other regulated markets Emergingmarkets	3,143.22 1,355.45 360.40	3,070.41 1,387.79 347.20
Total	4,859.07	4,805.40

The recoverable amount of the above cash generating units have been determined based on ‘value in use’ model, where in the value of cash generating unit is determined as a sum of the net present value of the projected post tax cash flows for a period of 5 years and terminal value. The terminal value of each cash generating unit is arrived at by extrapolating cash flows of latest forecasted year to perpetuity using a constant long term growth rate. Key assumptions used for determining the said value in use of each cash generating unit is as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Cash generating units	US	Other regulated markets	Emerging Markets	Institutional business
Discount Rate Growth Rate(used for determiningTerminal Value)	10.68% - 16.33% 2%- 5%	9.95% - 15.81% 2% - 5%	11.92% 3%	16.51% 5%

The discount rates used are based on weighted average cost of capital.

The growth rates of the above cash generating units have been considered based on the market conditions prevalent in the countries that would fall in respective cash generating units.

The management believes that the projections used by the management for determining the “value in use” of cash generating units reflect past experience and external sources of information and any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.

An analysis of the sensitivity of the computation to the change in key parameters (discount rate, profitability and growth rate), based on reasonable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

HIn Million	Net block	As at March 31, 2022 As at March 31, 2021			409.15 349.67		349.67 205.56		2,620.45 2,652.51		2,652.51 1,897.11	540.35 622.26		622.26 266.94	331.38 363.00	363.00 444.46	3,901.33 3,987.44	3,987.44
	Gross block Accumulated depreciation	Particulars As at April 1, 2021 Effects of foreign currency exchange differences Additions during the year Disposals during the year Acquisition through business combinations referred in note 39 Derecognised on disposal of business as referred in note 40 As at March 31, 2022 As at April 1, 2021 Effects of foreign currency exchange differences Amortisation for the year Eliminated on disposals of assets Eliminated on disposal of a businesses referred in note 40 As at March 31, 2022	- Internally	generated:	- Registration and 659.29 - 116.46 - - - 775.75 309.62 - 56.98 - - 366.60	brands	450.68 - 208.61 - - - 659.29 245.12 - 64.50 - - 309.62	- Others:	- Registration and 3,383.30 202.65 51.51 18.80 189.83 111.37 3,697.12 730.79 97.92 286.97 1.08 37.93 1,076.67	brands	2,464.08 (189.61) 1,089.22 0.59 20.20 - 3,383.30 566.97 (124.50) 288.32 - - 730.79	- Customer / 807.65 4.95 0.25 - - - 812.85 185.39 2.24 84.87 - - 272.50	Supply Contracts	353.28 43.73 12.74 - 397.90 - 807.65 86.34 13.74 85.31 - - 185.39	- Software licenses 1,024.99 8.64 142.87 12.13 - 28.89 1,135.48 661.99 5.46 168.49 3.65 28.19 804.10	932.24 (3.29) 91.85 0.07 4.26 - 1,024.99 487.78 (0.31) 174.59 0.07 - 661.99	Total 5,875.23 216.24 311.09 30.93 189.83 140.26 6,421.20 1,887.79 105.62 597.31 4.73 66.12 2,519.87	Previous year 4,200.28 (149.17) 1,402.42 0.66 422.36 - 5,875.23 1,386.21 (111.07) 612.72 0.07 - 1,887.79	Notes:	(i) Figures in italics relates to previous year.

Annual Report 2021-22 | 151

150 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 08 (ii). Intangible assets under development aging schedule

==> picture [494 x 17] intentionally omitted <==

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

H In Million
----- End of picture text -----

Intangible assets under development	Amount in CWIP for aperiod of	Total
	Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
As on March 31, 2022 Projects in progress Projects temporarily suspended As on March 31, 2021 Projects in progress Projects temporarilysuspended	462.47 244.16 1,095.94 545.92 - - - - 336.74 1,137.02 351.45 372.46 - - - -	2,348.49 - 2,197.67 -

There are no intangibles assets under development, whose completion is overdue or has exceeded its cost compared to its original plan as at March 31, 2022 and March 31, 2021.

Note No. 09 Investments

Investments consist of the following:

(i) Investment in associates and joint ventures

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

	31-Mar-22	31-Mar-21
(A) Investments in associates under equity method*: Equity shares, unquoted - 11,089,320 (As at March 31, 2021: 739,288 ofH10 each) shares of Re 1 each fully paid up in Stelis Biopharma Limited, India (Refer note (a, b and c) below) - 1,839,900 (As at March 31, 2021: Nil) shares of Re 1 each partly paid up in Stelis Biopharma Limited, India (Refer note (d and e) below) - 342 (As at March 31, 2021: 342) shares of Ethiopian Birr 1,000 each fully paid up in Regional Bio Equivalence Centre S.C., Ethiopia - 21,833,626 (As at March 31, 2021: 21,833,626) shares of USD 1 each fully paid up in Strides Global Consumer Healthcare Limited, UK - Nil (As at March 31, 2021: 4) shares of CAD 1 each fully paid up in Juno OTC Canada Preference shares, unquoted - 3,734,074 (As at March 31, 2021: 3,734,074) shares of USD 0.001 each fully paid up in Aponia Laboratories Inc, USA Less: Provision for diminution in value of investments	4,558.44 51.06 - 664.03 - 81.99 (81.99)	4,886.68 - - 859.09 - 81.99 (81.99)
Total[A]	5,273.53	5,745.77
(B) Investments in joint ventures under equity method: Equity shares, unquoted - 2,450,000 (As at March 31, 2021: 2,450,000) shares of USD 1 each in Sihuan Strides (HK)Limited,HongKong	82.02	93.17
Total[B]	82.02	93.17
Total[A+B]	5,355.55	5,838.94
Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate carrying value of unquoted investments Aggregate amount of impairment in value of investments	- - 5,355.55 81.99	- - 5,838.94 81.99

• The amount is net of gain / loss recognised

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

of Stelis have performed annual impairment assessment of the carrying value of the assets of the Cash Generating Unit (CGU) (which included the Vaccine facility) as at March 31, 2022. The ‘value in use’ of the CGU has been determined by the external valuation experts using discounted cash flow approach. Based on such valuation, the Group has assessed that there is no impairment.

Notes:

• (a) The Management of Stelis Biopharma Limited (Stelis) have performed annual impairment assessment of the carrying value of the assets of the Cash Generating Unit (CGU) (which included the CDMO business and intangible assets under development) as at March 31, 2022. The “”value in use”” of the CGU has been determined by the external valuation experts using discounted cash flow approach. Based on such valuation, the Group has assessed that there is no impairment.

Determination of value in use involves significant estimates and assumptions that affect the Vaccine facillity’s expected future cash flows. These estimates and assumptions, primarily include, but are not limited to:

Determination of value in use involves significant estimates and assumptions that affect the reporting CGU’s expected future cash flows. These estimates and assumptions, primarily include, but are not limited to:

• generation of revenues in due course from the Vaccine plant and contract manufacturing,

• plans to convert the existing vaccine plant for CDMO purpose,

• obtaining adequate financing to fulfil the Company’s development and commercial activities,

• probabilities applied to the revenues which also factors management’s best estimate of possible delay in regulatory approvals,

• the risks associated with research, development and obtaining regulatory approvals of the Company’s products,

• ability to enforce the existing contract with customer and liquidate inventories as on balance sheet date prior to its shelf life.

• generation of revenues in due course from the development portfolio and contract manufacturing,

• attainment of profitable operations,

• attainment of profitable operations and

• discount rate

discount factors

The expected cash flows used in computation of value in use are based on the probabilities applied to the revenues which also factors management’s best estimate of possible delay in product development cycle and regulatory approvals.

• probabilities applied to the revenues which also factors management’s best estimate of possible delay in product development cycle and regulatory approvals.

Further, the percentage movement in key assumptions that (individually) would be required to reach the point at which the value in use approximates its carrying value is given below:

The expected cash flows used in computation of value in use are based on the probabilities applied to the revenues which also factors management’s best estimate of possible delay in product development cycle and regulatory approvals.

• Increase in discount rate by 8.2%

Further, the percentage movement in key assumptions that (individually) would be required to reach the point at which the value in use approximates its carrying value is given below:

• Increase in discount rate by 7.7% and nil terminal growth rate

• (c)

During the year ended 31 March 2022, Stelis has incurred loss of H 2,327 million and has a net negative working capital position amounting to H 2,976 million, which includes the current maturities of non-current borrowings of H 3,731.55 million as at 31 March 2022. As of 31 March 2022, Stelis has inventories relating to Sputnik V, which remains unsold due to geopolitical situation between Russia and Ukraine and sanctions on

Increase in discount rate by 6%

• Increase in discount rate by 5.5% and nil terminal growth rate.

• (b) Considering the current geopolitical situation between Russia and Ukraine and the subsequent sanctions enforced on Russia, the Management

Annual Report 2021-22 | 153

152 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

the recoverable amount based on the value in use of the underlying businesses. The computation uses cash flow forecasts based on the most recently approved financial budgets and strategic forecasts. The Group also considered the valuation at which funds were raised by Stelis during the year and significant increase in its revenues during the current year. Accordingly, based on the above assessment, the Group has concluded that no impairment provision is required in the consolidated financial statements.

Russia and Russian Direct Investment Fund (RDIF). The management of Stelis is confident of liquidating these inventories within the shelf life in the normal course of business. Further, Stelis has shown growth in the Contract Development and Manufacturing business (from H 213.9 million in FY21 to H 1,321.27 million in FY22) which is expected to grow further in the coming years. Stelis also proposes to monetise some of its existing intangible assets under development through potential licensing / strategic partnerships. Stelis has requested for temporary relaxations for compliance with these financial covenants from the lenders as these have not been met as of the date of these financial statements. Also, the shareholders of Stelis have committed to extend the necessary financial support against the monies outstanding on the partly paid shares.

(d) Pursuant to the recommendation of the Board of Directors of Stelis on July 9, 2021 and approval of Members at the extraordinary general meeting held on July 14, 2021, Stelis has allotted Bonus Equity Shares in the ratio of 1:2 i.e., one bonus share for every two shares held in Stelis as on July 9, 2021. Further, pursuant to the approval obtained on July 14, 2021 from shareholders of Stelis, each equity share of H 10 each was subdivided into 10 equity shares of Re. 1 each.

Given the mitigating factors discussed above, while there is a reasonable expectation that Stelis will be able to generate/raise adequate resources to continue operating for the foreseeable future and that the going concern basis for the preparation of its financial statements remains appropriate, there exists a material uncertainty in respect of Stelis’s going concern. This also required the Group to undertake the Impairment assessment of the Group’s investment in Stelis. The Group estimated

(e) During the previous year, the Group approved the investment of H 1,021.14 million into Stelis, in multiple tranches. During the year, 5% of the approved investment value was invested into Stelis.

(ii) Investments - non-current

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

	31-Mar-22	31-Mar-21
(A) Investments carried at fair value through other comprehensive income: Equity shares, unquoted - 1,050 (As at March 31, 2021: 1,050) shares in Red Vault Investments Pty Limited, Australia	-	-
Total[A]	-	-
(B) Other investments at fair value through other comprehensive income: Equity shares, quoted - 217,391 (As at March 31, 2021: 217,391 shares in Outlook Therapeutics Inc., USA - 639,430 (As at March 31, 2021: 639,430) shares in Sonnet Biotherapeutics Holdings Inc., USA Total[B]	29.38 18.45 47.83	35.78 105.24 141.02
Total[A+B]	47.83	141.02
Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate carrying value of unquoted investments Aggregate amount of impairment in value of investments	47.83 47.83 - -	141.02 141.02 - -

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

(iii) Investments - current

(iii) Investments - current	(iii) Investments - current
				HIn Million
Particulars		31-Mar-22		31-Mar-21
Investments carried at fair value through proft and loss Investment in funds, unquoted - Easterngate SoarningDragon 2 SP(Units As at March 31, 2022: Nil, March 31, 2021:133.570)			-	994.12
Total			-	994.12
Current investments offered as security towards borrowings Highly liquid investments that are readily convertible into known amounts of cash and cash equivalents			- -	- 994.12
Note: The market value of quoted investments is equal to the carrying value. Note No. 10 Loans receivable Loans (unsecured) consist of the following: (i) Non-current loans				HIn Million
Particulars		31-Mar-22		31-Mar-21
Considered good: Loans to: - Relatedparties(Refer note 49)		30.00		103.84
Total		30.00		103.84
(ii) Current loans				HIn Million
Particulars		31-Mar-22		31-Mar-21
Considered good: Loans to: - Employees		48.24		40.54
Total		48.24		40.54
Note No. 11 Other fnancial assets Other fnancial assets consist of the following:

(i) Non-current financial assets

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured, considered good: Security deposits* Bank deposits with more than 12 months maturity Deferred consideration receivable	380.70 12.91 57.19	284.89 139.79 5,268.22
Total	450.80	5,692.90

• Includes security deposit given to related parties as referred in note 49.

Annual Report 2021-22 | 155

154 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

(ii) Current financial assets

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured, considered good: Interest accrued on deposit Interest accrued on loans and advances given Receivable from related parties Deferred consideration receivable on sale of investment Derivative assets Others: - Gratuity claim receivables - Insurance claim receivable - Receivable from director(refer note 49)*	1.18 5.47 23.49 5,705.35 9.08 28.81 - 141.90	39.80 14.17 - - 64.54 23.29 57.35 -
Total	5,915.28	199.15

*Includes interest accured on loans given to related parties as referred in note 49.

** The Company’s erstwhile Managing Director and Chief Executive Officer tendered resignation in March 2022 which has been accepted by the Board of Directors (the Board). As part of the terms of his remuneration, as approved in the Annual General Meeting dated 20 August 2020, he was entitled to certain amounts subject to fulfilment of certain service conditions. Consequent to his resignation and before the completion of the specified service period, the Board decided to recover amounts due to the Company based on the originally approved terms of his appointment. Accordingly, in line with the requirements of Section 197(9) of the Act, the Company has recorded such excess remuneration of H 141.90 million paid as a recoverable balance as at 31 March 2022.

Note No. 12 Deferred tax balances

==> picture [494 x 94] intentionally omitted <==

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

H In Million
As at As at
Particulars
31-Mar-22 31-Mar-21
Deferred tax assets (net) 2,151.49 1,982.21
Deferred tax liabilities (net) (357.19) (463.48)
Total 1,794.30 1,518.73
H In Million
----- End of picture text -----

Year ended March 31, 2022	Opening balance	Recognised in statement of proft or loss**	Recognised in other comprehensive income	Acquisitions / disposals	Exchange differences	Closing balance
Deferred tax (liabilities)/assets in relation to: Cash fow hedges (including forward element of forward contracts) Property, plant and equipment Intangible assets Other fnancial liabilities Others Inventory Employee benefts Merger and restructuring related expenses Allowance for credit losses Tax losses MAT credit entitlement	9.82 (634.99) (466.41) 36.42 243.08 762.85 268.35 5.13 49.41	- (76.77) 45.15 (30.98) 18.56 (136.42) 1.67 (4.23) (36.97)	(3.19) - - - 20.60 - (1.64) - -	- - (2.60) - - (25.15) - - -	0.71 (3.51) (16.35) 0.47 10.79 5.80 - - 0.02	7.34 (715.27) (440.21) 5.91 293.03 607.08 268.38 0.90 12.46
	273.66 414.03 831.04	(219.99) 386.36 111.86	15.77 - -	(27.75) - -	(2.07) 11.39 -	39.62 811.78 942.90
Total	1,518.73	278.23	15.77	(27.75)	9.32	1,794.30

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Year ended March 31, 2021	Opening balance	Recognised in statement of proft or loss**	Recognised in other comprehensive income	Acquisitions / disposals	Exchange differences	Closing balance
Deferred tax (liabilities)/assets in relation to: Cash fow hedges (including forward element of forward contracts) Property, plant and equipment Intangible assets Other fnancial liabilities Others Inventory Employee benefts Merger and restructuring related expenses Allowance for credit losses Tax losses MAT credit entitlement	146.74 (523.03) (481.08) 22.66 283.48 392.66 224.97 3.93 35.50	- (129.16) 10.72 14.33 (6.92) 370.83 25.55 1.20 13.98	(136.92) - - - (26.74) - 12.66 - -	- - - - - - - - -	- 17.20 3.95 (0.57) (6.74) (0.64) 5.17 - (0.07)	9.82 (634.99) (466.41) 36.42 243.08 762.85 268.35 5.13 49.41
	105.83 834.46 837.30	300.53 (396.30) (6.26)	(151.00) - -	- - -	18.30 (24.13) -	273.66 414.03 831.04
Total	1,777.59	(102.03)	(151.00)	-	(5.83)	1,518.73

** including deferred tax expenses recognised in discontinued operations.

Under the Indian Income Tax Act, 1961, the Company is liable to pay Minimum Alternate Tax (MAT). MAT paid can be carried forward for a certain period and can be set off against the future tax liabilities. MAT is recognised as deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefits associated with the asset will be realised.

Note No. 13 Income tax assets (net)

The income tax asset consists of the following:

Non-current income tax assets

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Advance income tax (net of provisions) Taxespaid underprotest	1,028.99 593.77	708.37 593.77
Total	1,622.76	1,302.14
Note No. 14 Other assets Other assets (unsecured) consist of the following:

(i) Other non-current assets

(i) Other non-current assets
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Considered good: Capital advances Prepaid expenses Lease equalisation assets Balances with Government Authorities: - VAT credit / refund receivable - Indirect taxes paid under protest Others: - Receivable from KIADB	25.79 32.47 - 20.78 25.78 -	141.35 55.06 2.18 20.32 25.78 4.79
Total	104.82	249.48

Annual Report 2021-22 | 157

156 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

(ii) Other current assets

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Considered good: Advance to suppliers Advance to employees Advances to others Prepaid expenses Balances with Government Authorities Incentives receivables	557.43 17.27 - 541.85 831.92 21.83	328.00 4.41 7.55 526.86 904.95 256.21
Total	1,970.30	2,027.98

Note No. 15 Inventories

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Raw materials (including goods in transit) Work-in-progress Finished goods Finished goods-in-transit Stock-in-trade Stores and spares	5,748.88 481.86 2,777.28 1,858.99 636.36 234.59	5,516.96 385.62 5,359.47 277.23 244.07 223.68
Total	11,737.96	12,007.03

Note No. 16 Trade receivables

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured Considered good* Credit impaired Less: Allowance for credit loss(Refer note 51.6)	12,495.25 -	11,663.05 63.00
	12,495.25 (422.24)	11,726.05 (620.18)
Total	12,073.01	11,105.87

• Includes receivables from related parties as referred in note 49.

The Group has availed bill discounting facilities from the banks which do not meet the derecognition criteria for transfer of contractual rights to receive cashflows from the respective trade receivables since they are with recourse to the group. Accordingly as at March 31, 2022, trade receivables balances include H 804.12 Million (As at March 31, 2021: H 864.14 Million) and the corresponding financial liability to the banks is included as part of working capital loan under short-term borrowings.

Trade receivables ageing schedule as at March 31, 2022

				HIn Million
Particulars	Unbilled	Not due	Outstanding for following periods from due date of payment	Total
			Less than 6 months 6 months - 1year 1 - 2 years 2 - 3 years More than 3 years
Undisputed Trade receivables - Considered Good - Signifcant increase in credit risk - Credit impaired Disputed Trade receivables - Considered Good - Signifcant increase in credit risk - Credit impaired	65.65 - - - - -	10,033.11 - - - - -	1,523.55 256.95 108.93 361.97 145.09 - - - - - - - - - - - - - - - - - - - - - - - - -	12,495.25 - - - - -
	65.65	10,033.11	1,523.55 256.95 108.93 361.97 145.09	12,495.25

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Trade receivables ageing schedule as at March 31, 2021

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Unbilled	Not due	Outstanding for following periods from due date of payment	Total
			Less than 6 months 6 months - 1year 1 - 2 years 2 - 3 years More than 3 years
Undisputed Trade receivables - Considered Good - Signifcant increase in credit risk - Credit impaired Disputed Trade receivables - Considered Good - Signifcant increase in credit risk - Credit impaired	37.28 - - - - -	8,520.90 - - - - -	2,214.81 61.71 465.35 225.65 137.35 - - - - - - - - 63.00 - - - - - - - - - - - - - - - -	11,663.05 - 63.00 - - -
	37.28	8,520.90	2,214.81 61.71 465.35 288.65 137.35	11,726.05

Note No. 17 Cash and cash equivalents

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Cash on hand Balances with banks: - In current accounts - In deposit accounts - Funds-in-transit	2.71 1,573.41 14.61 116.57	2.96 1,056.70 5.27 193.41
Total	1,707.30	1,258.34

Note No. 18 Other balances with banks

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

In deposit accounts In earmarked accounts: - Unpaid dividend accounts - Unpaid shares accounts - Group gratuity accounts - Balance held as margin moneyagainst workingcapital facilities with banks	134.55 10.92 0.33 0.09 20.33	496.20 21.68 0.33 1.26 19.84
Total	166.22	539.31

Note No. 19 Equity share capital

		HIn Million
Particulars	31-Mar-22	31-Mar-21
Authorised 188,370,000 equity shares ofH10/- each with voting rights (March 31,2021: 188,370,000 equityshares ofH10/- each)	1,883.70	1,883.70
Total Issued, subscribed and fully paid-up 89,790,214 equity shares ofH10/- each with voting rights (March 31,2021: 89,680,964 equityshares ofH10/- each)	1,883.70	1,883.70
	897.90	896.81
Total	897.90	896.81

Annual Report 2021-22 | 159

158 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

(i) Reconciliation of number of shares and amount outstanding:

		31-Mar-22	31-Mar-21
		No. of shares JIn Million	No. of shares JIn Million
Equity share capital Equityshare ofH10/- each
Balance at the beginning of theyear		89,680,964 896.81	89,565,464 895.65
Changes in equity share capital during the year Shares issued pursuant to the exercise of stock options	45	109,250 1.09	115,500 1.16
Balance at the end of theyear		89,790,214 897.90	89,680,964 896.81

(ii) Detail of the rights, preferences and restrictions attaching to each class of outstanding equity shares of H 10/- each:

The Company has only one class of equity shares, having a par value of H 10/- each. The holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the board of directors is subject to approval by the shareholders at the ensuing annual general meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by the shareholders.

(iii) Details of equity shares held by each shareholder holding more than 5% of equity shares:

Particulars	31-Mar-22	31-Mar-21
	No. of shares %	No. of shares %
Pronomz Ventures LLP SBI Long Term Equity Fund Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Pharma & Healthcare Fund Life Insurance Corporation of India	16,926,147 18.85% 2,380,298 2.65% 5,275,798 5.88% 4,136,701 4.61%	16,484,247 18.38% 5,798,104 6.47% 6,251,740 6.97% 4,985,701 5.56%

(iv) Details of equity shares of H 10/- each reserved for issuance:

Particulars	No. of shares
	31-Mar-22 31-Mar-21
Towards employee stock options under the various Strides stock option plans (Refer note 45)	2,590,700 2,602,800
Total	2,590,700 2,602,800

(v) Buy back of shares, issue of bonus shares and shares allotted as fully paid up pursuant to contract(s) without payment being received in cash.

There have been no buy back of shares, issue of shares by way of bonus shares or issue of shares pursuant to contract without payment being received in cash for the period of five years immediately preceding the Balance sheet date.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

(vi) Shareholding of Promoters at the end of the year:

S.No Promoter Name	31-Mar-22	31-Mar-21
	No. of Shares % of total shares % change during the year	No. of Shares % of total shares % change during the year
Promoters 1 Arun Kumar Pillai 2 Devendra Kumar S 3 K R Ravishankar 4 Vimal Kumar S 5 Pronomz Ventures LLP Promoters Group 6 Abhaya Kumar S 7 Chaitanya D 8 Gayatri Nair 9 Hemalatha Pillai 10 Jatin V 11 Jitesh D 12 K R Lakshmi 13 Leela V 14 Monisha Nitin 15 Nitin Kumar V 16 Padmakumar Karunakaran Pillai 17 Pooja Srisrimal 18 Purushothaman Pillai G 19 Rahul Nair 20 Rajitha Gopalakrishnan 21 Rupali Jatin 22 Sajitha Pillai 23 Sajjan D 24 Suchi Chaitanya Srisrimal 25 V. Jatin (HUF) 26 V. Nitin Kumar (HUF) 27 Vimal Kumar S (HUF) 28 S Abhaya Kumar (HUF) 29 Taru Mardia 30 Vibha Srisrimal 31 Vineetha Mohanakumar Pillai 32 Lakshmi Gopalakrishnan 33 Rajeshwari Amma Body Corporates 34 Abusha Investment & Manangement Services LLP 35 Agraganya Private Trust 36 Ambemata Securities 37 Shasun Enterprises LLP (formerly Devendra Estates LLP) 38 Shasun Leasing And Finance (P) Limited 39 Triumph Venture Holdings LLP 40 Karuna Business Solutions LLP 41 Agnus Capital LLP 42 Agnus holding Private Limited	15,40,997 1.72% 11% 2 0.00% (100%) 12,55,593 1.40% 0% 2,93,201 0.33% 12% 1,69,26,147 18.85% 3% 57,869 0.06% 59,882 0.07% 113% 33,000 0.04% 0% 66,760 0.07% 0% 4,61,042 0.51% 0% 25,825 0.03% 0% 1,30,365 0.15% 0% 4,17,867 0.47% 0% 1,49,764 0.17% 0% 5,27,093 0.59% 6% 1,86,485 0.21% 0% 93,750 0.10% 0% 33,013 0.04% 0% 20,000 0.02% 0% 60,000 0.07% 0% 1,89,826 0.21% 0% 95,000 0.11% 0% 1,76,670 0.20% (26%) 93,750 0.10% 0% 408 0.00% 0% 500 0.00% 0% 1,15,158 0.13% 0% 78,043 0.09% 0% 14,000 0.02% 0% 14,000 0.02% 0% 1,90,000 0.21% 0% 50,000 0.06% 0% - 0.00% 2,81,221 0.31% 0% 3,00,000 0.33% 0% 4,81,660 0.54% 0% 8,23,953 0.92% 0% 10,05,000 1.12% 0% - 0.00% (100%) 12,25,050 1.36% 0% - 0.00% 0% - 0.00% 0%	13,85,797 1.55% 1% 88,736 0.10% 687% 12,55,593 1.40% 0% 2,62,027 0.29% 2% 1,64,84,247 18.38% 30% - 0.00% 0% 28,175 0.03% (93%) 33,000 0.04% 0% 66,760 0.07% 39% 4,61,033 0.51% 0% 25,825 0.03% (93%) 1,30,365 0.15% 0% 4,17,858 0.47% 0% 1,49,764 0.17% 3% 4,98,005 0.56% 0% 1,86,485 0.21% 9% 93,750 0.10% 0% 33,013 0.04% 0% 20,000 0.02% 0% 60,000 0.07% 33% 1,89,826 0.21% 3% 95,000 0.11% 19% 2,37,692 0.27% 42% 93,750 0.10% 0% 408 0.00% 0% 500 0.00% 0% 1,15,158 0.13% 0% 78,043 0.09% 24% 14,000 0.02% 0% 14,000 0.02% 0% 1,90,000 0.21% 9% 50,000 0.06% 0% - 0.00% (100%) 2,81,221 0.31% 0% - 0.00% 0% 4,81,660 0.54% 0% 8,23,953 0.92% 0% 10,05,000 1.12% 0% 35,937 0.04% 0% 12,23,500 1.36% 103% - 0.00% (100%) - 0.00% (100%)

Annual Report 2021-22 | 161

160 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

• (f) General reserve

S.No Promoter Name	31-Mar-22	31-Mar-21
	No. of Shares % of total shares % change during the year	No. of Shares % of total shares % change during the year
43 Chayadeep Properties 44 Devendra Estates Private Limited 45 Karuna Ventures Private Limited 46 Lifecell Internatinal Private Limited 47 Sequent Scientifc Limited	- 0.00% 0% - 0.00% 0% - 0.00% 0% - 0.00% 0% - 0.00% 0%	- 0.00% (100%) - 0.00% (100%) - 0.00% (100%) - 0.00% (100%) - 0.00% (100%)

Note No. 20 Other equity

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Notes	As at 31-Mar-22	As at 31-Mar-22
(A) Share application money pending allotment (B) Reserves and surplus Capital reserve Securities premium Capital redemption reserve Share options outstanding account Equity for gross obligation General reserve Retained earnings (C) Items of other comprehensive income FVOCI equity investments reserve Cash fow hedging reserve Foreign currency translation reserve Remeasurement of the defned beneft liabilities /(asset)	20 (A) 20 (B)(i) 20 (B)(ii) 20 (B)(iii) 20 (B)(iv) 20 (B)(v) 20 (B)(vi) 20 (B)(vii) 20 (C)(i) 20 (C)(ii) 20 (C)(iii) 20(C)(iv)	4.06 341.00 17,321.88 601.61 20.46 (4,063.14) 4,036.96 23.08 (672.14) (57.60) 5,292.36 (154.15)	- 214.84 17,272.67 601.61 47.20 (4,063.14) 4,015.69 4,849.50 (598.77) (197.39) 4,887.43 (159.84)
Total		22,694.38	26,869.80

Nature and purpose of other reserve

• (a) Capital reserve

• Capital reserve is created on account of Foreign Currency Convertible Bonds, business combinations and demerger. It is utilised in accordance with the provisions of the Companies Act, 2013.

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

• (c) Capital redemption reserve

• Capital redemption reserve is a statutory, non-distributable reserve into which the amounts are transferred following the redemption or purchase of Company’s own shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

• (d) Share options outstanding account The fair value of the equity-settled share based payment transactions with employees is recognised in statement of profit and loss with corresponding credit to employee stock options outstanding account. The amount of cost recognised is transferred to share premium on exercise of the related stock options.

• (e) Equity for gross obligation

• The Group has issued written put option to non-controlling interests in certain subsidiaries of the Group in accordance with the terms of underlying agreement with such option holders. Should the option be exercised, the Group has to settle such liability by payment of cash. On initial recognition, the amount that may become payable under the option on exercise is recognised as a financial liability at its present value of the redemption amount with a corresponding charge directly to the other equity.

• General reserves are the retained earnings of a Group which are appropriated out of Group’s profits. General reserve is a free reserve which can be utilised for any purpose after fulfilling certain conditions in accordance with the provisions of the Companies Act, 2013.

• (g) Retained earnings

• Retained earnings are the profits that the Group has earned till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

(h) FVOCI equity investments reserve

• The Group has elected to recognise changes in the fair value of certain investments in other comprehensive income. These changes are accumulated within FVOCI equity investments reserve.

• (i) Cash flow hedging reserve

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

• (j) Foreign currency translation reserve

• The translation reserve comprise all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation.

(k) Remeasurement of the defined benefit liabilities / (asset)

• The cumulative balances of actuarial gain or loss arising on remeasurements of defined benefit plan is accumulated and recognised within this component of other comprehensive income. Items included in actuarial gain or loss reserve will not be reclassified subsequently to statement of profit and loss.

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
(A) Share application money pending allotment Opening balance Add: Received duringtheyear	- 4.06	- -
Closing balance[A]	4.06	-
(B) Reserves and surplus (i) Capital reserve Opening balance Less: Pursuant to acquisition from non-controlling interest (Refer note 39.2) Less: Adjustment pursuant to the scheme of merger (Refer note 50.2) Add: Pursuant to business combinations (Refer note 39) Closing balance (ii) Securities premium Opening balance Add: Adjustment pursuant to the scheme of merger (Refer note 50.2) Add: Premium received on shares issued during the year Closing balance (iii) Capital redemption reserve Opening balance Closing balance (iv) Share options outstanding account (Refer note 45) Opening balance Less: Transferred to securities premium account on exercise of ESOPs Less: Transferred to general reserve on stock options lapse Add: Employee stock compensation expenses (including expenses pertaining to discontinued operations) Closing balance	214.84 2.56 - 123.60	425.46 - (210.62) -
	341.00 17,272.67 - 49.21	214.84 17,008.37 210.62 53.68
	17,321.88 601.61	17,272.67 601.61
	601.61 47.20 (18.18) (21.27) 12.71	601.61 57.24 (19.85) (5.41) 15.22
	20.46	47.20

Annual Report 2021-22 | 163

162 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
(v) Equity for gross obligation Opening balance Add: Pursuant to business combinations (Refer note 39) Closing balance (vi) General reserve Opening balance Add: Transferred from share options outstanding account Closing balance (vii) Retained earnings Opening balance Add: Proft / (loss) for the year Less: Dividend on equity shares including taxes Closing balance	(4,063.14) -	(3,840.13) (223.01)
	(4,063.14) 4,015.69 21.27	(4,063.14) 4,010.28 5.41
	4,036.96 4,849.50 (4,602.11) (224.31)	4,015.69 2,344.23 2,684.42 (179.15)
	23.08	4,849.50
Total Reserves and surplus[B]	18,281.85	22,938.37
(C) Items of other comprehensive income (i) FVOCI equity investments reserve Opening balance Add / (Less): Other comprehensive income for the year (net of taxes) Closing balance (ii) Cash fow hedging reserve Opening balance Add / (Less): Other comprehensive income for the year (net of taxes) Closing balance (iii) Foreign currency translation reserve Opening balance Add / (Less): Other comprehensive income for the year Closing balance (iv) Remeasurement of the defned beneft liabilities / (asset) Opening balance Add / (Less): Other comprehensive income for the year (net of taxes) Closing balance	(598.77) (73.37)	(703.08) 104.31
	(672.14) (197.39) 139.79	(598.77) (563.31) 365.92
	(57.60) 4,887.43 404.93	(197.39) 5,183.76 (296.33)
	5,292.36 (159.84) 5.69	4,887.43 (145.91) (13.93)
	(154.15)	(159.84)
Total items of other comprehensive income[C]	4,408.47	3,931.43
Attributable to equity holders of the Company[A + B + C]	22,694.38	26,869.80

Note No. 21 Non-controlling interests

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Opening balance Less: Loss for the year Add / (Less): Other comprehensive income for the year Add / (Less): Pursuant to exchange movement Add / (Less) Pursuant to business combinations (Refer note 39) Add / (Less): Pursuant to acquisition of non-controlling interest in subsidiary (Refer note 39)	373.41 (140.39) 12.95 (2.53) - (2.56)	672.38 (107.13) 5.58 (8.21) (189.21) -
Closing balance	240.88	373.41

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 22 Borrowings Borrowings consist of the following:

(i) Non-current borrowings

==> picture [494 x 135] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
Secured
- Term loans from banks (Refer note (i) to (xiv) below) 6,839.68 7,890.89
- Term loans from others (Refer note (xv) and (xvi) below) 608.90 843.40
Unsecured
- Term loans from others (Refer note (xvii) to (xx) below) 907.65 91.49
Total 8,356.23 8,825.78
Details of security and terms of repayment for the non-current borrowings:
H In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(i) Term loans from banks: Loan 1 Long-term loan Current maturities of long-term loan Security: Hypothecation of assets procured from the term loans. Rate of interest: 7.0% to 8.0% p.a. Repayment terms: 36 to 60 equal monthly instalments. The oustanding term as at March 31, 2022 is 19 to 44 installments. (ii) Term loans from banks: Loan 2 Long-term loan Current maturities of long-term loan Security: Pari-Passu frst charge on the fxed assets of the Company and second pari- passu charge on the current assets of the Company Rate of interest: 9.0% p.a. to 10.0% p.a. Repayment terms: 48 equal monthly instalments commencing after 12 months from disbursement date. The oustanding term as at March 31, 2022 is 39 installments. (iii) Term loans from banks: Loan 3 Long-term loan Current maturities of long-term loan Security: Extension of frst pari-passu charge on the entire current assets of the Company, both present and future, and extension of second pari-passu charge on all the fxed asset of the Company, both present and future, excluding land and building at CBD Belapur & Navi Mumbai Rate of interest: 7.0% p.a. to 8.0% p.a. Repayment terms: 18 equal monthly instalments after initial moratorium. The oustanding term as at March 31, 2022 is 2 installments. (iv) Term loans from banks: Loan 4 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on the fxed asset of the Company excluding properties at CBD Belapur and Navi Mumbai and second pari-passu charge on the current assets of the Company Rate of interest: 9.5% p.a. to 10.0% p.a. Repayment terms: 48 equal monthly instalments after initial moratorium. The outstanding term as at March 31, 2022 is 47 installments. (v) Term loans from banks: Loan 5 Long-term loan Current maturities of long-term loan Security : First charge on all the fxed assets, intangible assets and current assets of the borrowing subsidiary, both present and future Rate of interest: Bank USD Base rate Repayment terms: Repayable in 36 to 60 monthly instalments. The outstanding term as at March 31, 2022 ranges between 24 to 29 instalments.	1.71 1.15 276.58 125.00 - 33.33 359.75 124.80 140.93 90.94	2.86 1.06 398.50 93.75 33.33 200.00 197.30 - 138.96 165.22

Annual Report 2021-22 | 165

164 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [494 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(vi) Term loans from banks: Loan 6 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all current assets and fxed assets including intangible assets of the borrowing subsidiary, its holding company and frst pari- passu charge on the fxed assets and second pari-passu charge on the current assets of the ultimate holding company, both present and future Rate of interest: 6 months LIBOR + 230 bps p.a. Repayment terms: Repayable in 12 half yearly instalments. The outstanding term as at March 31, 2022 is 8 instalments. (vii) Term loans from banks: Loan 7 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all current assets and fxed assets including intangible assets of the borrowing subsidiary and frst pari-passu charge on the fxed assets and second pari-passu charge on the current assets of the ultimate holding company, both present and future Rate of interest: 6 months LIBOR + 300 bps p.a. Repayment terms: Repayable in 16 structured quarterly instalments. The outstanding term as at March 31, 2022 is 3 instalments. (viii) Term loans from banks: Loan 8 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all current assets and all fxed assets including intangibles of the borrowing subsidiary, both present and future Rate of interest: 3 months LIBOR + 300 bps p.a. Repayment terms: Repayable in 20 equal quarterly instalments. The outstanding term as at March 31, 2022 is 18 instalments (ix) Term loans from banks: Loan 9 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all fxed assets of the borrowing subsidiary, both present and future Rate of interest: 5.0% p.a. Repayment terms: Repayable in 60 equal monthly instalments.The loan was fully repaid during the year. (x) Term loans from banks: Loan 10 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all current assets and fxed assets including intangible assets of the borrowing subsidiary, present and future Rate of interest: 1 year MCLR + 150 bps p.a. Repayment terms: Repayable in 16 structured quarterly instalments after an initial moratorium period of 12 months from the date of frst disbursement.The outstanding term as at March 31, 2022 is 4 instalments. (xi) Term loans from banks: Loan 11 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on all current assets and fxed assets including intangible assets of the borrowing subsidiary, present and future Rate of interest: 3 Months LIBOR + 275 bps p.a. Repayment terms: Repayable in 14 structured quarterly instalments after an initial moratorium period.The outstanding term as at March 31, 2022 is 8 instalments.	- 2,847.38 - 547.46 1,044.65 303.71 - - - 25.00 162.67 163.91	2,724.79 548.61 522.53 594.33 - - 288.37 66.60 - 50.00 322.80 165.67

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(xii) Term loans from banks: Loan 12 Long-term loan Current maturities of long-term loan Security: First charge on the current assets of the borrowing subsidiary and pari- passu frst charge on the fxed assets of the borrowing subsidiary. Rate of interest: 1 month LIBOR / 0.25% base rate, whichever is higher + 2.25% p.a. Repayment terms: : Repayable at the end of 3 years with an option to renew for next 3 years. (xiii) Term loans from banks: Loan 13 Long-term loan Current maturities of long-term loan Security: First charge on the current assets of the borrowing subsidiary and Pari- Passu frst charge on the fxed assets of the borrowing subsidiary Rate of interest: 3.62% p.a. Repayment terms: Repayable in 60 monthly installments. The outstanding term as at March 31, 2022 is 56 instalments. (xiv) Term loans from banks: Loan 14 Long-term loan Current maturities of long-term loan Security: Second charge on all current assets and fxed assets including intangible assets of the borrowing subsidiary, present and future and guaranteed by National Credit Guarantee Trustee Company Limited Rate of interest: 9.25% Repayment terms: Repayable in 36 equal monthly instalments after an initial moratorium period of 24 months from the date of frst disbursement. The outstanding term as at March 31, 2022 is 36 installments. (xv) Term loans from others: Loan 15 Long-term loan Current maturities of long-term loan Security: Pari-Passu frst charge on the fxed assets of the Company and second Pari- passu charge on the current assets of the Company Rate of interest: 9.5% p.a. to 10.5% p.a. Repayment terms: 48 equal monthly instalments from date of frst disbursment. The outstanding term as at March 31, 2022 is 44 installments. (xvi) Term loans from others: Loan 16 Long-term loan Current maturities of long-term loan Security: Pari-Passu frst charge on the fxed assets of the Company (excluding land and building at Navi Mumbai). Rate of interest: 10.0 % p.a. to 11.0% p.a. Repayment terms: 20 quarterly structured instalments commencing after initial moratorium. The oustanding term as at March 31, 2022 is 15 installments. (xvii) Unsecured Long-term loans from banks: Loan 17 Long-term loan Current maturities of long-term loan Rate of interest: Nil Repayment terms: Within 5 years from date of drawdown. (xviii) Unsecured Long-term loans from others: Loan 18 Long-term loan Current maturities of long-term loan Rate of interest: 7% p.a. Repayment terms: Repayable at the option of the borrower on or before 2 years from the date of disbursement (xix) Unsecured Long-term loans from others: Loan 19 ** Long-term loan Current maturities of long-term loan Rate of interest: 7.0% p.a. (Prime lending rate as on March 31, 2021) Repayment terms: Repayable at the option of the borrower.	4,487.74 - 285.65 70.76 80.00 - 328.88 125.00 280.02 103.68 41.14 - - 32.67 27.22 -	3,261.45 - - - - - 461.98 31.25 381.42 52.92 38.76 - 29.14 0.31 23.59 -

Annual Report 2021-22 | 167

166 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(xx) Unsecured Long-term loans from others: Loan 20 Long-term loan Current maturities of long-term loan Rate of interest: 12.5% p.a. Repayment terms: 360 equal monthly instalments. The outstanding term as at March 31,2022 is 351 installments.	839.29 3.24	- -
Total	12,954.26	10,795.50

• Loan taken by foreign subsidiary

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Disclosed under non-current borrowings Disclosed under current borrowings - Current maturities of non-current borrowings	8,356.23 4,598.03	8,825.78 1,969.72
Total	12,954.26	10,795.50

(ii) Current borrowings

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Current maturities of non-current borrowings (Refer note 22 (i) above) Secured loans repayable on demand from banks: (Refer note below) - Working capital loans - Short-term loans Unsecured loans - Short-term loans from others - Loans repayable on demand from banks - Loans repayable on demand from others	4,598.03 10,130.95 3,512.85 42.52 1,112.45 166.57	1,969.72 6,810.23 2,812.44 21.23 594.48 -
Total	19,563.37	12,208.10

Note:

• (a) Details of security for the secured loans repayable on demand: Working capital and short-term loans from banks are secured by first pari passu charge over current assets of the Group and second pari passu charge on movable and immovable fixed assets of the Company (other than land and building situated at Navi Mumbai). Rate of interest ranges from 1.40% to 13.00% p.a. (previous year 1.4% to 13.00% p.a)

• (b) The returns or statements filed by the Group with the banks or financial institutions, for its borrowings, are in agreement with books of accounts.

Also refer note 2

Net debt reconciliation

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Non-current borrowings Current borrowings- working capital loans Current maturities of long-term loans Less: Cash and cash equivalents Balances in deposit accounts Cash and bank balances Current investments(highlyliquid)	8,356.23 14,965.34 4,598.03	8,825.78 10,238.38 1,969.72
	27,919.60 (1,707.30) (134.55)	21,033.88 (1,258.34) (496.20)
	(1,841.85) -	(1,754.54) (994.12)
Net debt	26,077.75	18,285.22

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Cash and bank balances	Current investments (highly liquid)	Non Current borrowings (including current maturities)	Current borrowings	Net Debt
As on April 1, 2021	1,754.54	994.12	10,795.50	10,238.38	18,285.22
Cash fows Effect of exchange differences on restatement of foreign currency balances Others	86.03 1.28 -	(1,004.44) 10.27 0.05	1,825.31 283.30 50.15	4,564.32 162.64 -	7,308.04 434.39 50.10
As on March 31, 2022	1,841.85	-	12,954.26	14,965.34	26,077.75

Note No. 23 Other financial liabilities

Other financial liabilities consist of the following:

(i) Other non-current financial liabilities

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Security deposits Derivative liability Contingent consideration payable Gross obligation under writtenput option	29.00 8.11 291.79 242.88	39.59 156.19 320.12 237.75
Total	571.78	753.65

(ii) Other current financial liabilities

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Interest accrued but not due on borrowings Unclaimed dividends Derivative liability Gross obligation under written put option Other payables:* - Payables on purchase of property, plant and equipments and intangible assets - Payables on purchase of non-current investments - Contingent consideration for acquisition of subsidiaries - Payables to employees under cash settled share based payments - Other payable to employees - Others	58.10 10.91 66.96 - 171.06 114.59 181.84 33.00 477.59 38.26	47.85 21.68 115.55 93.06 211.39 110.40 88.79 52.80 456.31 52.95
Total	1,152.31	1,250.78

*Investor Education and Protection Fund shall be credited when due.

Note No. 24 Provisions Provisions consist of the following:

(i) Non-current provisions

(i) Non-current provisions
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Provision for employee benefts: Gratuity and other benefts (Refer note 46) Provision - Others: - Provision for sales return	450.44 192.36	404.29 269.79
Total	642.80	674.08

Annual Report 2021-22 | 169

168 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

(ii) Current provisions

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Provision for sales return Provision for claims Provision for employee benefts: - Compensated absences - Gratuityand other benefts(Refer note 46)	283.49 607.44 332.16 3.14	300.66 585.19 352.11 3.95
Total	1,226.23	1,241.91

Movement in provisions

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Claims	Gratuity and other benefts	Compensated absences	Sales return
Opening balance as at April 1, 2021 Pursuant to exchange Provision recognised /(utilised)duringtheyear(net)	585.19	408.24	352.11	570.45
	22.25 -	- 45.34	- (19.95)	21.25 (115.85)
Closing balance as at March 31, 2022	607.44	453.58	332.16	475.85

Note No. 25 Other liabilities

Other liabilities consist of the following:

(i) Other non-current liabilities

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Asset retirement obligation Prepaid rent liability	16.04 -	15.05 1.08
Total	16.04	16.13

(ii) Other current liabilities

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Other payables: - Advances from customers - Statutory liabilities - Other liabilities	281.21 443.93 30.37	239.01 404.80 -
Total	755.51	643.81

Note No. 26 Trade payables

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Total outstanding dues of micro enterprises and small enterprises (MSME) Total outstandingdues of creditors other than micro and small enterprises*	326.75 10,388.49	378.35 10,963.65
Total	10,715.24	11,342.00

• includes dues to related party as referred in note 49.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Trade payable ageing schedule as at March 31, 2022

				HIn Million
Particulars	Unbilled Payables	Not Due	Outstanding for following periods from due date ofpayment	Total
			Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Undisputed dues - MSME - Others Disputed dues - MSME - Others	- 1290.25 - -	150.40 3,088.31 - -	168.20 6.35 1.01 0.79 5,217.82 361.81 250.51 179.79 - - - - - - - -
				326.75
				10,388.49
				- -
				HIn Million
Particulars	Unbilled Payables	Not Due	Outstanding for following periods from due date ofpayment	Total
			Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Undisputed dues - MSME - Others Disputed dues - MSME - Others	- 1,723.63 - -	167.24 4,383.88 - -	207.02 3.60 0.36 0.13 4,350.31 302.57 140.43 62.83 - - - - - - - -
				378.35
				10,963.65
				- -

All trade payables are current. The Group’s exposure to the currency and liquidity risks related to trade payables is disclosed in note 51.

Note No. 27 Tax liabilities

(i) Non current tax liabilities (net)

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Provision for tax (net of advance tax) Total	-	1,790.91
	-	1,790.91

The Company during the previous year had received certain refunds including interest from tax authorities on account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain documents from tax authorities. During the current year, on receipt of the required documentation from tax authorities, the Company recorded the refund received including other tax provision for such assessment year aggregating to H 1,606 million as a tax credit and the interest income amounting to H 748 million on the said refund under other income in the financial statements.

(ii) Current tax liabilities (net)

		HIn Million
Particulars	31-Mar-22	31-Mar-21
Provision for tax (net of advance tax) Total	238.11	351.18
	238.11	351.18

Annual Report 2021-22 | 171

170 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 28 Revenue from operations

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Sale of products Sale of services Other operatingrevenues*	29,562.05 658.51	32,148.35 363.20
	30,220.56 481.94	32,511.55 647.15
Total	30,702.50	33,158.70

• Other operating revenue include support service income H 366.79 Million (2021: H 291.11 Million), royalty income H 29.94 Million (2021: H 76.04 Million) and export incentives H 85.21 Million (2021: H 280 Million).

B. Disaggregated revenue information

In the following table, revenue from contracts with customers is disaggregated by primary geographical market

Revenue from contracts with customers (Continuing operations)

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
North America Australia Africa Europe India Asia (excluding India) Others Revenue from other sources Other operating revenue	12,058.99 3,174.77 5,707.41 6,768.55 473.47 1,970.59 66.78	16,458.90 2,452.86 5,203.26 7,295.04 400.74 608.17 92.58
	30,220.56 481.94	32,511.55 647.15
	481.94	647.15
Total revenue from operations	30,702.50	33,158.70

Geographical revenue is allocated based on the location of the customers.

C. Transaction price allocated to the remaining performance obligations

The following table inludes revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partial unsatisfied) at the reporting date.

		HIn Million 31-Mar-21 214.74 HIn Million
Particulars	31-Mar-22 223.01
Sale of services
D. Reconciliation of revenue from contracts with customers
Particulars	31-Mar-22	31-Mar-21
Revenue from contracts with customers as per the contract price Adjustments made to contract price on account of :- a) Chargebacks / Discounts / Rebates / Incentives b) Sales returns/ reversals c)Sales returns/ reversals related toproduct withdrawal*	52,790.41 (22,416.66) (104.82) (48.37)	54,087.68 (21,315.77) (260.36) -
Revenue from Contracts with customers as per statement of proft and loss	30,220.56	32,511.55

• Losartan returns for the current year

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 29 Other income

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Interest income * Income from current investments Gain on sale of short-term investment in mutual funds Rental income from investment property Other non-operating income: - Liabilities / provisions no longer required written back - Guarantee commission - Gain on sale of property, plant and equipment, other intangible assets and investment property (net) - Others	1,073.26 2.89 0.04 60.33 - 52.16 112.47 18.73	353.01 11.93 0.00 76.99 7.45 41.51 23.38 -
Total	1,319.88	514.27

• includes guarantee commission from related parties as referred in note 49.

**Includes interest income amounting to H 748 million on tax refunds. The Company during the previous year had received certain refunds including interest from tax authorities on account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain documents from tax authorities. During the current year, on receipt of the required documentation from tax authorities, the Company recorded the interest income on the said refund.

Note No. 30 Changes in inventories of finished goods, work-in-progress and stock-in-trade

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Inventories at the end of the year - Work-in-progress - Stock-in-trade - Finished goods Less: Write off on account of withdrawal (Refer note 35) - Finished goods (Add)/Less: Consolidation adjustment: - Work-in-progress - Finished goods Inventories at the beginning of the year - Work-in-progress - Stock-in-trade - Finished goods Add: Opening stock pertaining to entity acquired during the year (Refer note 39) - Work-in-progress - Finished goods	481.86 636.36 4,636.27	385.62 244.07 5,636.70
	5,754.49 (254.88)	6,266.39 -
	(254.88) 3.42 1.88	- (3.68) (16.40)
	5.30 385.62 244.07 5,636.70	(20.08) 609.48 116.96 1,856.43
	6,266.39 24.19 156.52	2,582.87 - 166.54
	180.71	166.54
Total	952.79	(3,537.06)

Note No. 31 Employee benefits expense

Note No. 31Employee benefts expense
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Salaries, wages and bonus Contribution to provident and other funds (Refer note 46) Share based compensation expense (Refer note 45) Staff welfare expenses	5,283.01 552.55 (7.09) 640.62	4,656.28 393.30 68.02 383.87
Total	6,469.09	5,501.47

Annual Report 2021-22 | 173

172 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 32 Finance costs

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Interest expense on: - Borrowings - Leases (Refer note 5) - Discounting of deposits Other fnance costs	1,288.15 168.47 0.62 310.20	1,092.47 148.74 2.79 256.65
Total	1,767.44	1,500.65

Note No. 33 Depreciation and amortisation expense

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Depreciation on plant, property and equipments (Refer note 4(i)) Amortization on right to use (Refer note 5) Depreciation on investment property (Refer note 6) Amortisation on other intangible asset(Refer note 8(i))	1,424.12 283.12 25.59 597.31	1,176.26 228.22 45.67 612.72
Amount charged to the statement ofproft and loss:	2,330.14	2,062.87
- under continuing operations - under discontinued operations	2,330.14 -	2,062.87 -

Note No. 34 Other expenses

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Subcontracting charges Consumption of stores and spares Power, fuel and water Rent including lease rentals (Refer note 5) Repairs and maintenance: - Buildings - Machinery - Others Insurance Rates and taxes Communication expense Travelling and conveyance Printing and stationery Carriage, freight and forwarding Business promotion Sales commission Failure to Supply Donations and contributions Legal and professional fees Provision for doubtful debts (including bad debt written off) Other receivables written off Bio-study expenses Miscellaneous expenses	482.68 809.67 715.42 80.89 61.15 458.30 593.46 210.08 516.52 93.08 91.08 36.13 3,009.41 178.18 125.38 230.13 3.42 1,208.92 (14.08) 15.85 149.98 257.81	453.54 759.87 645.82 71.96 53.47 451.66 380.90 170.64 589.38 87.14 62.82 41.85 2,003.94 130.48 97.76 588.35 5.09 893.47 94.61 - 279.94 198.48
Total	9,313.46	8,061.17

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 35 Exceptional items

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Exchange gain/ (loss) on long-term foreign currency loans, deferred consideration and intra-group loans Impairment and cost associated with disposal of facility (Refer note c below) Impairment of investment in an associate Sales returns, write down of inventory and other expenses on account of product withdrawal (Refer note (a) & (b) below ) Write down of inventories and other assets Gain on dilution of investment in an associate (Refer note d below) Fair valuation gain on acquisition of controlling shares in an associate (Refer note 39.1) Business combination and restructuring expenses Severance and retrenchment payments (Refer note c below) Unwinding/ cancellation of gross obligations and contingent consideration Gain on sale of investment in an associate (Refer note 40.3) Gain on divestment of subsidiaries Loss on sale of business unit(Refer note 40.2)	(109.24) (1,727.16) - (552.34) (46.76) 529.26 - (211.27) (207.00) 11.27 27.79 1.57 (154.37)	1,027.73 - (81.99) (750.50) - 323.00 25.30 (23.61) - (86.40) - -
Total	(2,438.25)	433.53

Note

• (a) On March 31, 2020, US Food and Drug Administration (USFDA or the Agency) issued letters to all manufacturers of Ranitidine across dosage forms requesting withdrawal of all prescription(Rx) and over-the-counter (OTC) ranitidine drugs from the market immediately. This step was based on their ongoing investigation of the N-Nitrosodimethylamine (NDMA) impurity in ranitidine medications. As a result, effective 1 April 2020, the Group has ceased further distribution of the product and is currently in the process of withdrawing the product from the market.

During the current year, the Group has continued to receive returns from its customers with the corresponding value being deducted on their payments to the Group. As at March 31, 2022, the Group is carrying sufficient provision for sales return and has recorded an amount of H 198.87 million towards other expenses related to its product withdrawal. Furthermore, the expenses recorded also includes legal fees incurred by the Group in respect of its ongoing litigations relating to Ranitidine.

• (b) During the year, USFDA issued a letter to the Group to test for the presence of Azide impurity(s) in Losartan. The Azide impurity(s) are API process impurity(s), with the API manufacturer also receiving a similar letter from USFDA. The results confirmed the presence of Azide impurity(s) in the batches tested. As a result, the group proposed to initiate a voluntary recall of specific batches which had the Azide impurity(s).

The Group has estimated the impact of the aforesaid recall and recorded a sales return provision for potential refunds on return of the product. The Group has also estimated the costs of such recall and have provided for all inventory of Losartan with the Azide impurity(s) as of 31 March 2022, amounting to H 353.47 million.

Subsequently the API process at the API manufacturer was optimized to address this issue and the product was relaunched during the current year.

• (c) On August 4, 2021, the Group through its wholly owned subsidiaries entered into definitive agreements with subsidiaries of Endo International Plc to acquire a portfolio of generic products along with the US manufacturing site at Chestnut Ridge, New York. Pursuant to such acquisition, the management decided to consolidate its existing operations with the acquired facility at Chestnut Ridge, New York to optimise future operating costs.

Pursuant to the acquisition of Chestnut Ridge faciliy, the Group as a part of its cost improvement and capacity optimization has divested the Florida facility. Accordingly, the Group has recorded an impairment loss amounting to H 1,727.16 million.

Annual Report 2021-22 | 175

174 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Additionally, the Group as part of cost improvement measures globally and capacity optimization at various manufacturing locations, resulting in one time severance expense aggregating to H 207 million, which has been disclosed under exceptional items.

• d. One of the associates of the Group, raised equity investments during the year ended 31 March 2021 and 31 March 2022. Consequently, the Group’s shareholding has reduced. As per Ind AS 28 ‘Investment in associates and Joint ventures’, the Group recorded gain on dilution of shareholding of H 323.00 million and H 529.26 million during the year ended 31 March 2021 and 31 March 2022 respectively.

Note No. 36 Tax expenses

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Current tax Current tax expense Current tax relating to prior years reversed * Deferred tax beneft Deferred tax expense / (beneft) Minimum alternative tax credit utilised	102.01 (1,606.41)	290.13 (75.65)
	(1,504.40) (166.37) (111.86)	214.48 95.77 6.26
	(278.23)	102.03
Total	(1,782.63)	316.51

The reconciliation of estimated income tax expenses at statutory income tax rate to income tax expense reported in statement of profit and loss is as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Ptil	31-M-22	31-M-21
arcuars Proft before tax - from continuing operations - from discontinued operations Indian statutory income tax rate Expected income tax expense Tax effect of adjustments to reconcile expected income tax expense to reported income tax expenses: Income exempt from tax Effect of expenses that are not deductible in determining taxable proft Effect of concessions Effect of unused tax losses and tax offsets not recognised as deferred tax assets Effect of different tax rates of subsidiaries operating in other jurisdictions Tax refund pertaining to prior years Effect on recognition of past unrecognised deferred tax asset Tax on share of equity accounted joint venture and associates Others(net)	ar	ar
	(6,525.13) -	2,754.39 139.41
	(6,525.13) 34.944% (2,280.14) (48.25) 99.11 (19.04) 312.01 1,660.40 (1,655.31) 38.80 387.21 (277.42)	2,893.80 34.944% 1,011.21 (182.73) 128.57 (112.12) 148.14 (828.10) - (112.46) 341.82 (77.82)
Total Income tax expense	(1,782.63)	316.51

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

*The Company during the previous year had received certain refunds including interest of H 1,790 million from tax authorities on account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain documents from tax authorities. During the current year, on receipt of the required documentation from tax authorities, the Company recorded the refund received including other tax provision for such assessment year aggregating to H 1,605 million as a tax credit and the interest income amounting to H 748 million on the said refund under other income in these financial statements.

Note No. 37 Other comprehensive income

==> picture [494 x 21] intentionally omitted <==

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

H In Million
Particulars 31-Mar-22 31-Mar-21
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
A) Items that will not be reclassifed to proft or loss (i) Defned beneft obligations Income tax on above (ii) FVOCI equity investments Income tax on above	7.33 (1.64)	(26.59) 12.66
	5.69 (93.97) 20.60	(13.93) 131.05 (26.74)
	(73.37)	104.31
Total[A]	(67.68)	90.38
B) Items that may be reclassifed to proft or loss (i) Cash fow hedge Income tax on above (ii) Foreign currency translations Income tax on above	142.98 (3.19)	502.84 (136.92)
	139.79 417.88 -	365.92 (290.75) -
	417.88	(290.75)
Total[B]	557.67	75.17
Total[A+B]	489.99	165.55

Note No. 38 Details of research and development expenditure incurred (charged to statement of profit and loss)

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Cost of materials consumed Salaries, wages and bonus Biostudy expenses Legal and professional fees Consumption of stores and spares Regulatory expenses Travelling and conveyance Depreciation and amortisation expenses Others	69.22 255.73 91.52 16.58 105.38 184.20 7.37 89.59 163.88	164.26 244.71 128.00 20.04 154.84 164.20 8.73 95.45 174.32
Total	983.47	1,154.55

Refer note 12 for significant components of deferred tax assets and liabilities.

The Company is eligible for various tax incentives / exemptions with respect to taxability of income received in India including repatriation of any profits as dividends from subsidiaries and associates, which may result in possible tax litigations/assessments. Assessing the applicability of tax for such repatriations involve complexities with respect to various tax positions on availability of tax incentives / exemptions resulting in possible tax litigations/assessments. Judgment is required in assessing the availability of tax incentives / exemptions. These judgments could change over time as each of the matter progresses with the relevant tax authorities and accordingly may impact the accounting treatment followed by the Company. The Company based on its assessments believes that appropriate accruals have been recorded for all these matters, to the extent necessary.

Annual Report 2021-22 | 177

176 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 39 Business combinations (including acquisitions of non controlling interest) 39.1 Business combinations

During year ended March 31, 2022:

Entity / Business Acquired	Principal Activity	Date of Acquisition	Note Reference
Chestnut Ridge Facility, New York and Portfolio of Generic Products	Manufacturing and Trading in Pharmaceutical Products	Oct 20, 2021	Refer Note A

Note A:

Strides Pharma Inc, US and Strides Pharma Global Pte Limited, Singapore, both being the wholly owned subsidiaries of the Group, acquired a portfolio of generic products and US manufacturing site at Chestnut Ridge, New York from Endo International plc for an aggregate consideration of USD 24.46 Million with effect from October 20, 2021. The Group therefore, in accordance with Ind AS 103 “Business Combinations” recorded a bargain purchase of USD 1.63 Million million being the difference in the fair value of net assets acquired and consideration paid, in accordance with the computation below.

Consideration transferred:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Cash	1,857.37
Total	1,857.37

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

The gain has been recorded under the head “Exceptional items” in the Statement of Profit and Loss.

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Fair value of Fairmed Fair value of non-controlling interest held by the Group in Fairmed Carryingvalue of non-controllinginterest held bythe Groupin Fairmed on the date of acquisition	176.37 123.46 98.16
Gain recorded under exceptional items on attaining controlling interest	25.30

The resulting cost of acquisition of Fairmed for the Group is H 123.46 million.

Consideration transferred:

Since the Group has not transferred any consideration for change in controlling rights, the fair value on the date of change in control was treated as consideration.

Assets acquired and liabilities recognised at the date of obtaining controlling rights:

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Fairmed
Non-current assets (includes intangibles at fair value) Current assets Non-current liabilities Current liabilities	415.75 750.47 - (1,784.79)
Net liabilities	(618.57)

39.2 Non-controlling interests, goodwill / bargain purchase on acquisition

Assets acquired and liabilities recognised at the date of acquisition:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-21
Non-current assets (includes intangibles at fair value) Current assets Non-current liabilities Current liabilities	2,172.80 330.03 (28.32) (493.54)
Net Assets	1,980.97

During year ended March 31, 2021:

The Group has recognised non-controlling interests in an acquired entity at the non controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Further, the Group has issued written put options to the non-controlling interests of certain subsidiaries to purchase their equity shares in accordance with the terms of underlying agreement with such shareholders. Should the option be exercised, the Group has to settle such liability by payment of cash. The amount that may become payable under the option on exercise is recognised as a financial liability at its present value with a corresponding charge directly to the shareholders’ equity.

Details of initial recognition of such gross obligation, non-controlling interests and goodwill/bargain purchase

arising on such acquisitions have been given in the below.

39.2.1 Acquisition of non-controlling interest:

Entity / Business Acquired	Principal Activity	Date of Acquisition	Note Reference
Fair-Med Healthcare AG Fairmed Healthcare GmbH Eris Pharma GmbH	Trading in Pharmaceutical products Trading in Pharmaceutical products Tradingin Pharmaceuticalproducts	Apr 1,2020 Apr 1,2020 Apr 1,2020	Refer Note A Refer Note A Refer Note A

Note A:

Strides Pharma Global Pte Limited, Singapore, a wholly owned subsidiary of the Group, obtained controlling rights of the board of Fairmed Healthcare AG, Switzerland with effect from April 1, 2020, whereby making the entity and its wholly subisidiaries Faimed Healthcare GmbH, Germany and ERIS Pharma GmbH Germany as subsidiaries of the group (together referred to as Fairmed).

The group owned non-controlling interest of Fairmed Healthcare AG, Switzerland till March 31, 2020. The Group therefore, in accordance with Ind AS 103 “Business Combinations” recorded a gain of H 25.30 million being the difference in the fair value of non-controlling interest and carrying value of the non-controlling interest in Fairmed, in accordance with the computation below.

During the current year, the Group has acquired the non-controlling interests in below subsidiaries, thereby, making them wholly owned subsidiaries of the Group.

- PharamPar Inc.

Pursuant to the acquisition of non-controlling interest, the excess of consideration paid over the non-controlling interest balance and gross obligation under written put option carried as on the date of acquisition, has been debited or credited to the equity under the head ‘Capital reserve’ based on the below calculations:

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Consideration transferred Less: Carryingvalue of non-controllinginterest	- 2.56
Amount debited/(credited) to Capital reserve	(2.56)

Annual Report 2021-22 | 179

178 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

39.2.2 Calculation of goodwill / bargain purchase arising on acquisition: Acquisitions during the year ended March 31, 2022:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Consideration transferred Fair value of net assets acquired	1,857.37 1,980.97
Bargainpuchase arising on acquisition	(123.60)

Acquisitions during the year ended March 31, 2021:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Fairmed
Consideration transferred Fair value of existing non-controlling interest held Add: Non-controlling interests Less: Fair value of identifable net assets/(net liabilities)	- 123.46 (189.21) (618.57)
Goodwill arising on acquisition	552.82

39.2.3 Goodwill arising on acquisitions pertains to the below Cash generating units

			HIn Million
Entity	Cashgenerating units	31-Mar-22	31-Mar-21
Fairmed	Other regulated markets	-	552.82

Goodwill arose in the acquisition of the above said entities because the consideration paid for the combinations effectively included amounts in relation to the benefit of expected synergies, future market development and the assembled workforce. These benefits are not recognised separately from goodwill because they do not meet the recognition criteria for identifiable intangible assets.

None of the goodwill arising on these acquisitions is expected to be deductible for tax purposes.

39.2.4 Net cash outflow on acquisition of subsidiaries / business / non-controlling interest

==> picture [494 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Year ended 31-Mar-22	Year ended 31-Mar-21
Considerationpaid in cash	1,857.37	-
Net cash outfow on acquisition	1,857.37	-

39.2.5 Impact of acquisitions on the results of the Group:

Acquisitions during 2021-22

Results from continuing operations for the year ended March 31, 2022 includes the following revenue and profit generated from the new acquisitions:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Revenue Proft /(loss)for theyear	1,447.27 233.64

If the acquisition had occured on April 1, 2021, the management estimates that the consolidated revenue for the group pertaining to these acquisitions would have H 3,295 million and the profit would have been H 257 million for the 12 months ended March 31, 2022. The pro-forma amounts are not necessarily inidcative of the results that would have been occured on date indicated or that may result in the future.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Acquisitions during 2020-21:

Results from continuing operations for the year ended March 31, 2021 includes the following revenue and profit generated from the new acquisitions:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
Revenue Proft /(loss)for theyear	1,100.06 (260.62)

The above excludes impact of unwinding of discount on gross obligation towards written put options given to non controlling interests.

Note No. 40 Discontinued operations:

The combined results of the discontinued operations of the businesses disposed-off as explained in Note 40.1, are set out below. The comparative profit and cash flows from discontinued operations have been presented as if these operations were discontinued in the prior year as well.

if these operations were discontinued in the prior year as well.
			HIn Million
Particulars	Reference	Year ended 31-Mar-22	Year ended 31-Mar-21
Revenue Other income		- -	- -
Total revenue from discontinued operations(I)		-	-
Depreciation and amortisation expense Other expenses charged-off to the Statement of Proft and Loss		- -	- -
Total expenses from discontinued operations(II)		-	-
Loss from discontinued operation (III = I - II) Gain / (loss) on disposal of: - investments in entities manufacturingspecialty products	40.1	- -	- 139.41
Netgain /(loss) on disposal of businesses(IV)		-	139.41
Gain / (loss) from discontinued operations before tax (V = III + IV) Attributable income tax expense(VI)		- -	139.41 -
Netgain /(loss) from discontinued operations after tax(V - VI)		-	139.41
Cash fows from discontinued operations			HIn Million
Particulars		31-Mar-22	31-Mar-21
Net cash infows/(outfows) from operating activities Net cash infows/(outfows) from investing activities* Net cash infows/(outfows)from fnancingactivities		- (16.39) -	- 97.69 -
Net cash infows/(outfows)		(16.39)	97.69

• Including cash flow on disposal of assets and liabilities of the discontinued operations

40.1 Sale of investments in entities manufacturing specialty products

The Company and its wholly owned subsidiary Strides Pharma Asia Pte Limited (“Strides Singapore”) entered into definitive agreements on February 27, 2013 with Mylan Inc. for sale of the Specialty products business. The transactions under the respective agreements were by way of (i) sale of investment held in Agila Specialties Private Limited (“ASPL”, an erstwhile wholly owned subsidiary of the Company), to Mylan Laboratories Limited (“MLL”), a Mylan group company and (ii) the sale of investment held in Agila Specialties Global Pte Limited (“Agila Global”, an erstwhile wholly owned subsidiary of Strides Singapore) to Mylan Institutional Inc, another Mylan group company. MLL and Mylan Institutional Inc. together are referred to below as Mylan.

In determining the ‘pro-forma’ revenue and profit of the Group, had new entity / business been acquired at the beginning of the current year, the Group has calculated depreciation of plant and equipment acquired on the basis of the fair values arising in the initial accounting for the business combination rather than the carrying amounts recognised in the pre-acquisition financial statements.

Annual Report 2021-22 | 181

180 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

The sale of shares of ASPL was recorded by the Company in terms of the Sale and Purchase Agreement dated December 4, 2013 (the “India SPA”). The sale of shares of Agila Global was recorded by Strides Singapore in terms of another Sale and Purchase Agreement dated December 4, 2013 (the “Global SPA”).

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

40.2 Sale of Pharmapar business:

During the year, the Group completed the divestment of its business held under Pharmapar Inc., Canada, for consideration of CAD 0.63 million. The net loss of H 154.37 million arising from the transaction has been recorded as Exceptional item in the statement of profit & loss for the year ended 31 March, 2022.

40.1.1 Income recognised under discontinued operations:

In accordance with the terms of the India SPA and the Global SPA (together the “SPA”s) and other transaction documents, certain amounts were set aside under separate deposit / escrow accounts which were required to be utilised for specified expenses during the specified period. These included separate escrow / deposit of USD 100 Million in respect of potential claims in relation to certain regulatory concerns (“”Regulatory escrow””) and USD 100 Million in respect of potential claims in relation to the warranties and indemnities, including in relation to tax (“”General claims escrow””). Further, H 850 Million was set aside in separate Escrow for payment to certain specified senior management personnel of ASPL and its subsidiary. Any unutilised amounts from the deposit / escrow accounts after the specified period were payable to the respective entities of the Group. Given the uncertainties involved and in the absence of a right to receive, the amounts under the deposit / escrow arrangements were not included in the consideration accounted as income by the Group at the time of disposal of the investments. Receipts from these deposit / escrow accounts were recognised subsequently (net of related expenses incurred) in the period in which such amounts were received by the Group.

During the earlier years, the Company had received notifications of claims from Mylan under the terms of the SPAs. These included claims against the regulatory escrows, tax claims, warranty and indemnity claims, and third party claims. Under the terms of the SPAs, claims against the Company / Strides Singapore can only be made under specific provisions contained in the SPAs which include the procedures and timelines for submission of notifications of claims and actual claims and commencing arbitration proceedings

In previous years, a significant portion of these claims were settled out of the Regulatory Escrow deposit and the remaining balance of the Escrow account was recognised as income on full and final settlement of related claims. Further, the Company and Mylan also agreed on full and final settlement of warranty and indemnity claims to be adjusted against the ‘General Claims Escrow’. The arbitration proceedings with respect to the third party claims was settled in favor of the Group and Mylan. The Group and Mylan have entered into an agreement whereby Mylan has released the pending balance in Escrow account.

During the previous year, Mylan had received certain tax refund with respect to the period on or before the completion date, which has been remitted to the Group. The Group has recorded such receipt of H 147.72 million and corresponding expenses of H 8.31 million under discontinued operations.

There are certain tax claims which are pending under the terms of the SPAs for which the Group has recorded adequate provisions in the books

The Group had considered hive-off of the Specialties business as discontinued operations. Accordingly, the income/(loss) referred above have been recognised under discontinued operations as under:

==> picture [494 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Year ended
	31-Mar-22 31-Mar-21
Gain/(Loss) on settlement of contingencies attributable to the discontinued operations (net)	- 139.41
Proft before tax from discontinued operations	- 139.41

Cash flows from discontinued operations

(a) Consideration received

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Total
Consideration received in cash Deferred consideration	26.08 11.54
Total consideration	37.62

(b) Carrying value of asset and liabilities as on the date of disposal

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Total
Non-current assets Current assets Non-current liabilities Current liabilities Net assets disposed off	100.01 91.98 - - 191.99

(c) Loss on disposal

	HIn Million
Particulars	Year ended 31-Mar-22
Total Consideration Net assets disposed off	37.62 (191.99)
Loss on disposal	(154.37)
(d) Net cash infow on disposal Particulars	HIn Million Year ended 31-Mar-22
Consideration received in cash	26.08
Net Cash infow	26.08

40.3 Sale of Investment in an associate

During the year, the Group divested its investment held in Juno OTC, Canada, for consideration of CAD 1.72 million. The net gain of H 27.79 million arising from the transaction has been recorded as Exceptional item in the statement of profit & loss for the year ended 31 March, 2022.

Note No. 41 Commitments

Note No. 41Commitments
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Estimated amount of contracts remaining to be executed on capital account (Tangible and Intangible assets)and notprovided for(net of advances)	367.74	499.50

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Year ended
	31-Mar-22 31-Mar-21
Net cash infows/(outfows) from operating activities Net cash infows/(outfows) from investing activities Net cash infows/(outfows)from fnancingactivities	- - (16.39) 97.69 - -
Net cash infows/(outfows)	(16.39) 97.69

Annual Report 2021-22 | 183

182 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 42 Contingent liabilities (to the extent not provided for)

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
a) Claims against the Group not acknowledged as debt - Disputed tax liabilities arising from assessment proceedings relating to earlier years from the income tax authorities. The outfow, if any, on account of disputed taxes is dependent on completion of assessments / disposal of appeals and adjustment for payments made under protest. - Disputed excise, custom, service tax and sales tax liabilities arising from assessment proceedings relating to prior years. The outfow, if any, on account of disputed liabilities is dependent on completion of assessments / disposal of appeals and adjustment for payments made under protest. b) Corporate Guarantees	1,740.14 588.01 9,419.83	1,664.77 588.01 6,188.52

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

• (ii) Other than the matters disclosed above, the Group is also involved in other disputes including patent and commercial matters that arise from time to time in the ordinary course of business. Management is of the view that the resolution of these disputes will not have any material adverse effect on the Group’s financial position or results of operations.

Note No. 43 Segment information

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and assessing performance. The Group’s CODM is the Managing Director.

During the year, the Group pursuant to its assessment that the business has now evolved from its incubation stage and to align to the decision to demerge certain parts of its business, implemented operational changes in how its CODM evaluates its businesses, including resource allocation and performance assessment. As a result of the aforesaid change, the Group now has two operating segments, representing the individual businesses that are managed separately. The Groups’s new reportable segment are as follows; “Pharmaceutical” & “Biopharmaceutical”. The Group has restated segment information for the historical periods presented herein to conform to the current presentation. This change in segments had no impact on the Group’s historical consolidated statements of profit and loss, balance sheets or statements of cash flows.

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
A) Segment Revenue a) Pharmaceutical business b) Bio-pharmaceutical business Revenue from operations B) Segment results (i) Proft/ (loss) before exceptional items and tax a) Pharmaceutical business b) Bio-pharmaceutical business (ii) Exceptional items - net gain / (loss) a) Pharmaceutical business b) Bio-pharmaceutical business	30,702.50 -	33,158.70 -
	30,702.50	33,158.70
	(2,978.76) -	3,299.05 -
	(2,978.76) (2,967.51) 529.26	3,299.05 110.53 323.00
	(2,438.25)	433.53

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

		HIn Million
Particulars	31-Mar-22	31-Mar-21
(iii) Share of loss of joint ventures and associates a) Pharmaceutical business b) Bio-pharmaceutical business (iv) Proft/ (loss) before tax a) Pharmaceutical business b) Bio-pharmaceutical business Proft/ (loss) before tax [i+ii+iii] Tax expense	(250.62) (857.50)	(399.42) (578.77)
	(1,108.12) (6,196.89) (328.24)	(978.19) 3,010.16 (255.77)
	(6,525.13) (1,782.63)	2,754.39 316.51
(v) Proft/(loss) after tax from continuing operations	(4,742.50)	2,437.88
Segment assets and liabilities		HIn Million
Particulars	31-Mar-22	31-Mar-21
i) Segment Assets a) Pharmaceutical business b)Bio-pharmaceutical business	65,139.56 4,619.06	65,175.14 4,975.06
Total Segment Assets	69,758.62	70,150.20
ii) Segment Liabilities a) Pharmaceutical business b)Bio-pharmaceutical business	45,925.46 -	42,002.87 7.31
Total Segment Liabilities	45,925.46	42,010.18

Disclosures regarding geographical information: The geographical information of the Group’s revenues and assets are shown separately in the table below. Segment revenues has been disclosed based on geographical location of the customers. Segment assets has been disclosed based on the geographical location of the respective assets.

Information regarding geographical revenue from operations is as follows (including discontinued operations) :

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	For theyear ended
	31-Mar-22 31-Mar-21
North America Australia Africa Europe India Asia (excluding India) Others	12,058.99 16,458.90 3,174.77 2,452.86 5,707.41 5,203.26 6,768.55 7,295.04 473.47 400.74 1,970.59 608.17 66.78 92.58
	30,220.56 32,511.55
Revenue from other sources Other operatingrevenue	481.94 647.15
Revenue from operations	30,702.50 33,158.70

Information regarding geographical non-current assets is as follows*:

H In Million

Particulars	As at
	31-Mar-22 31-Mar-21
Africa Australia Asia (excluding India) North America Europe India	2,367.93 2,485.17 34.49 38.32 7,814.43 7,723.35 5,631.40 5,147.22 2,430.27 2,700.68 15,181.67 15,963.15
Total	33,460.19 34,057.89

• Non current assets are excluding financial instruments and deferred tax assets.

Annual Report 2021-22 | 185

184 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 44 The Intra-group loans amounting to USD 3.37 Million (previous year USD 3.37 Million) given by Strides Pharma (Cyprus) Limited, Cyprus to its subsidiary Strides Lifesciences Limited, Nigeria, are recognised as net investment in non-integral foreign operations in accordance with Ind AS 21 ‘The Effect of Changes in Foreign Exchange Rates’, and exchange fluctuation gain of H 19.22 Million (previous year: exchange fluctuation loss of H 2.24 Million) arising out of reinstatement of such loans has been accumulated in foreign currency translation reserve through other comprehensive income.

Further, Intra-group loans amounting to USD Nil Million (previous year USD 0.20 Million) given by Strides Pharma Global Pte Limited, Singapore to its subsidiary Strides Pharma (Cyprus) Limited, Cyprus, are recognised as net investment in non-integral foreign operations in accordance with Ind AS 21 ‘The Effect of Changes in Foreign Exchange Rates’, and exchange fluctuation of H Nil Million for the year ended March 31, 2022 (previous year exchange fluctuation gain: H 4.08 Million) arising out of reinstatement of such loans has been accumulated in foreign currency translation reserve through other comprehensive income. The entire loan has been repaid during the previous year.

Note No. 45 Share-based payments

Details of the employee share option plan of the Company:

• (a) The ESOP titled “Strides ESOP 2016” (formerly known as Strides Shasun ESOP 2016) (ESOP 2016) was approved by the shareholders on April 21, 2016. 3,000,000 options are covered under the Plan which are convertible into equal number of equity shares of the Company. The vesting period of these options range over a period of three years. The options must be exercised within a period of one year from the date of vesting. Company has granted 67,500 options (Previous year: 25,000) under this scheme during the current year.

• (b) During the current year, Employee compensation costs of H 12.71 Million (for the year ended March 31, 2021: H 15.22 Million) relating to the above referred Employee Stock Option Plans have been recognised in the Statement of Profit and Loss.

Fair value of share options granted during the year

The fair value of the share options granted during the year under ESOP 2016 Lot X and ESOP 2016 Lot XI, is H 359.42 and H 271.55 respectively. Options were priced using a Black- Scholes method of valuation at grant date. Expected volatility is based on the historical share price volatility over the past 3 years.

Inputs into the model -

Particulars	ESOP 2016 Lot X	ESOP 2016 Lot XI
No. of options Grant date share price Exercise price Expected volatility Option life Expected Dividend % Risk-free interest rate	25,000 H798.60 H599.00 39.06% 3 years 20.00% 6.023%	42,500 H607.70 H455.80 38.26% 3 years 20.00% 6.223%

Employee stock options details as on the balance sheet date are as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	During theyear 2021-22	During theyear 2020-21
	Options (No’s) Weighted average exercise price per option (H)	Options (No’s) Weighted average exercise price per option (H)
Option outstanding at the beginning of the year: Granted during the year: Exercised during the year**: Lapsed/ cancelled during the year:	2,45,900 348.79 67,500 508.84 (1,22,750) 294.80 (55,400) 621.49	4,21,200 346.86 25,000 311.00 (1,15,500) 302.97 (84,800) 426.17

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	During theyear 2021-22	During theyear 2020-21
	Options (No’s) Weighted average exercise price per option (H)	Options (No’s) Weighted average exercise price per option (H)
Options outstanding at the end of the year:* Options available forgrant:	1,35,250 393.98 25,90,700 -	2,45,900 348.79 26,02,800 -

• Includes options vested but not exercised as at March 31, 2022 ESOP 2016: 35,250 (March 31, 2021: 57,150)

** Includes options exercised but shares are not alloted as at March 31, 2022 ESOP 2016: 13,500 (March 31, 2021: Nil)

b. Details of the cash settled share based payment plan of the Company:

On May 20, 2020, the Board approved “Strides Long Term Incentive Plan 2020” titled the LTIP 2020 (“”the Plan””). The Plan shall be in the form of Phantom Units. Each Phantom Unit, upon exercise, entitles the awardee a cash benefit equal to the Share Price on the date of exercise minus exercise price to be paid to the Company. The vesting period of these units is one year. The units must be exercised within a period of twelve months from the date of vesting. The Company has granted Nil options (Previous year: 72,966) under this scheme during the current year.

During the current year, Employee compensation cost reversal of H 19.80 Million (cost for the year ended March 31, 2021: H 52.80 Million) relating to the Plan have been recorded in the Statement of Profit and Loss on account of final settelment of the Phantom units granted previous year.

Note No. 46 Employee Benefits Plans

Employee benefits pertaining to overseas subsidiaries have been accrued based on their respective local labour laws.

Defined contribution plan

The Group makes contributions to provident fund and employee state insurance schemes which are defined contribution plans, for qualifying employees. Under the schemes, the group is required to contribute a specified percentage of the payroll cost to fund the benefits. The group recognised H 188.37 Million (previous year: H 161.32 Million) (including costs debited to discontinued operations) for provident fund contributions, H 2.35 Million (previous year: H 2.88 Million) (including costs debited to discontinued operations) for employee state insurance scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. The Group has no obligations beyond its contributions.

Defined benefit plan

The Company and its Indian subsidiaries offers gratuity benefits, a defined employee benefit scheme to its employees.

Composition of the plan assets

The fund is managed by LIC , the fund manager. The details of composition of plan assets managed by the fund manager is not available with the Company. However, the said funds are subject to Market risk (such as interest risk, investment risk, etc.).

The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk.

Longevity risk Salary risk

The present value of the defned beneft plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability. The present value of the defned beneft plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase theplan's liability.

Annual Report 2021-22 | 187

186 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

The principal assumptions used for the purposes of the actuarial valuations were as follows:

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Movements in the fair value of the plan assets are as follows:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Valuation as at
	31-Mar-22 31-Mar-21
Discount rate(s) Expected rate(s) of salary increase Mortality Rate Retirement age(years)	6.41% - 6.91% 6.06% - 6.58% 10% 10% As per IALM (2012-14) ultimate 58years 58years

Amounts recognised in respect of these defined benefit plans are as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Pil	31M22	31M21
artcuars Service cost: Current service cost Net interest expense	-ar-	-ar-
	68.07 23.71	55.71 17.24
Components of defned beneft costs recognised in statement ofproft and loss	91.78	72.95
Remeasurement on the net defned beneft liability: Remeasurement return on plan assets [excluding amounts included in net interest expense] (excess) / Short return Actuarial (gains) / losses arising from changes in demographic assumptions Actuarial (gains) / losses arising from changes in fnancial assumptions Actuarial (gains) / losses arising from experience adjustments Components of defned beneft costs recognised in other comprehensive income	(1.97) 3.83 (12.86) 3.67	4.25 12.92 (4.73) 14.15
	(7.33)	26.59
Total	84.45	99.54

The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’ line item in the consolidated statement of profit and loss. The remeasurement of the net defined benefit liability is included in other comprehensive income.

The amount included in the consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Present value of funded defned beneft obligation Fair value of plan assets Funded status Disclosed in liabilities directlyattributable to the assets held for sale	575.73 (138.80)	519.11 (134.26)
	436.93 -	384.85 -
Net liability arising from defned beneft obligation	436.93	384.85

Movements in the present value of the defined benefit obligation are as follows:

H In Million

Particulars	Year ended
	31-Mar-22 31-Mar-21
Opening defned beneft obligation Expenses recognised in statement of proft and loss Current service cost Interest cost Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions Actuarial gains and losses arising from changes in fnancial assumptions Actuarial gains and losses arising from experience adjustments Benefts paid Acquisition/divestiture	519.11 436.28 68.07 55.71 32.46 26.64 3.83 12.92 (12.86) (4.73) 3.67 14.15 (38.06) (21.86) (0.49) -
Closing defned beneft obligation	575.73 519.11

Particulars	Year ended
	31-Mar-22 31-Mar-21
Opening fair value of plan assets Remeasurement gain / (loss): Remeasurement return on plan assets (excluding amounts included in net interest expense) Contributions from the employer Actuarial gain / (loss) on plan assets Beneftspaid	134.26 141.55 8.75 9.40 22.00 2.50 1.97 (4.25) (28.19) (14.94)
Closing fair value ofplan assets	138.80 134.26

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

If the discount rate increases / (decrease) by 1%, the defined benefit obligation would be H 544.75 Million ( H 621.83

Million) as at March 31, 2022.

If the expected salary growth increases / (decrease) by 1%, the defined benefit obligation would be H 611.00 Million

( H 552.13 Million) as at March 31, 2022.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There has been no change in the process used by the Group to manage its risks from prior periods.

Expected future Cash outflows towards the plan are as follows:

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Amount
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 to 2031-32	66.02 58.39 58.48 64.03 71.43 267.16

Annual Report 2021-22 | 189

188 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 47 Lease arrangements

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 49 Related Party Transactions : List of the Related Parties

The Group as lessor:

Leasing arrangement

The Group has entered into operating lease arrangement for lease of factory land & building for a term ranging from 4 to 18 years with non-cancellable lease period of 4 to 8 years. Details relating to these assets and minimum lease rentals receivable are as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Gross carrying amount of assets leased Accumulated depreciation Future minimum lease income: Not later than 1 year Later than 1 year but not later than 5 years Later than 5years	134.04 5.89 16.04 - -	960.23 281.88 27.98 16.04 -
Total	16.04	44.02

Note No. 48 Earnings per share

Particulars	For theyear ended
	31-Mar-22 31-Mar-21
Basic earnings per share: From continuing operations From discontinued operations	(51.28) 28.40 - 1.56
Total basic earnings per share	(51.28) 29.96
Diluted earnings per share: From continuing operations From discontinued operations	(51.28) 28.37 - 1.55
Total diluted earnings per share	(51.28) 29.92

Earnings used in computing basic and diluted earnings per share

==> picture [494 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	For theyear ended
	31-Mar-22 31-Mar-21
Proft/(loss) attributable to the equity holders of the Company From continuing operations From discontinued operations	(4,602.11) 2,545.01 - 139.41
Total operations	(4,602.11) 2,684.42

Weighted average number of shares used as the denominator

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	For theyear ended
	31-Mar-22 31-Mar-21
Weighted average number of equity shares used as denominator in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: - employee stock options	8,97,47,525 8,96,09,605
	38,941 99,798
Weighted average number of equity shares used as denominator in calculating diluted earnings per share	8,97,86,466 8,97,09,403

Note: Potential ordinary shares are antidilutive when their conversion to ordinary shares would increase earnings per share or decrease loss per share from continuing operations. 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.

Particulars Fairmed Associates Aponia Laboratories Inc, USA Juno OTC Inc, Canada (upto June 14, 2021) Regional Bio Equivalence Centre S.C., Ethiopia Stelis Biopharma Limited, India (formerly Stelis Biopharma Private Limited) Stelis Biopharma LLC, USA (upto Jan 12, 2022) Stelis Pte. Ltd, Singapore Biolexis Private Limited, India (with effect from Jan 17, 2022) Strides Consumer Private Limited, India Strides Consumer LLC, USA Strides Global Consumer Healthcare Limited, UK Enterprises owned or significantly influenced by Agnus Capital LLP, India key management personnel and relative of key Agnus Ventures LLP, India management personnel Alivira Animal Health Limited, India Atma Projects, India Aurore Life Sciences Private Limited, India Aurore Pharmaceuticals Private Limited, India Axxelent Pharma Science Private Ltd, India Biolexis Pte. Ltd., Singapore Brooks Steriscience Limited, India Chayadeep Properties Private Limited, India Dairy Power Limited, India Hydra Active Pharma Sciences Private Limited, India (formerly Tenshi Active Pharma Private Limited) Karuna Healthcare Private Limited, India Karuna Business Solutions LLP, India Lifecell International Private Limited, India Naari Pharma Private Limited, India Naari Pte Ltd., Singapore SeQuent Scientific Limited, India (upto September 8, 2020) SeQuent Research Limited, India (upto September 8, 2020) Shasun USA Inc, USA Shasun Enterprises LLP (Formerly known as Devendra Estates LLP) Six Rays LLP, India

Six Rays Pharma Solutions LLP, India Six Rays Pte. Limited, Singapore Six Rays Holdings Pte. Ltd., Singapore Solara Active Pharma Sciences Limited, India Steriscience Specialities Private Limited, India Steribrooks Penems Private Limited Steriscience BV, Netherland Steriscience Pte Ltd Tenshi Kaizen Private Limited, India Tenshi Kaizen Pharma Pte Ltd, Singapore Tenshi Life Sciences Private Limited, India Tenshi Life Sciences Pte. Limited, Singapore Velbiom Proboitics Private Limited, India (formerly Tenshi Life Care Private Limited, India) Tenshi Kaizen USA Inc, USA

Tenshi Pharmaceuticals Private Limited (formerly known as Sovizen Life Sciences Private Limited, India and Steriscience Private Limted, India)

Triphase Pharmaceuticals Pvt Ltd White Crow Research Private Limited, India

Annual Report 2021-22 | 191

190 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Fairmed
Joint Ventures(JV)	Sihuan Strides(HK)Ltd,Hongkong (49%)
Key Management Personnel (KMP)	Mr. Arun Kumar, Chairman and Non-Executive Director (with effect from April 1,2020) Dr. R Ananthanarayanan, Managing Director and CEO (upto March 31, 2022) Mr. Badree Komandur, Executive Director - Finance and Group CFO Mr. Deepak Vaidya, Non-Executive Director Mr. Bharat D Shah, Independent Director Mr. S.Sridhar, Independent Director Dr. Kausalya Santhanam, Independent Director Mr. Homi Rustam Khusrokhan, Independent Director Ms. Manjula Ramamurthy,CompanySecretary

Related party closing balances

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21
		- - - - - - - - - - - - - - - - - - - - - - - - - - (0.20) (1.00) 111.90 (18.00) (0.10) (1.19) (0.10) (1.19) (0.10) (1.19) (0.10) (1.19) - (3.75) (0.10) (1.52) - - - - - - - - - - - -	0.36 3.47 42.49 42.62 - - 20.31 23.15 - - - - - - - - - - 3.31 3.25 5.86 5.86 - 0.38 - 6.24 - - - - - - - - - - - - - - - - - - - - 69.96 69.96 21.88 33.23 7.20 7.20 0.05 -

Particulars	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21
		- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	0.05 - 0.05 - (16.98) (8.19) (202.24) (161.70) (144.40) (23.75) (2.44) (3.86) - (0.28) - - 3.40 - (7.68) - (1,159.58) (1,693.24) - - - - - - (8.18) (0.14) (0.56) - - 1.18 0.16 0.11 0.01 - 0.15 0.33 0.41 - 0.02 - - 2.14 - - 29.02 32.33 - - 0.06 - 0.06 0.80 0.49 2.77 0.26 - 14.98 18.51 - - - - 0.09 0.08 - 0.33 2.77 8.38 1.39 1.34 - - - - - - 12.39 0.99 0.18 0.33 1.32 1.21 0.15 0.33 - 12.32

Annual Report 2021-22 | 193

192 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21	As at 31-Mar-22 As at 31-Mar-21
30 Tenshi Pharmaceuticals Private Limited 31 Triphase Pharmaceuticals Pvt Ltd 32 Velbiom Proboitics Private Limited	- - - - - -	- - - - - -	0.25 0.18 - 0.04 0.58 0.58

Related party transactions

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Nature of Transactions	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21
Sales of materials/services (net of returns) 1 Juno OTC Inc. 2 Steriscience Pte Limited 3 Stelis Biopharma Limited 4 Sihuan Strides (HK) limited 5 Six Rays Pte. Limited 6 Solara Active Pharma Sciences Limited 7 Steriscience Specialties Private Ltd 8 Strides Consumer LLC 9 Strides Consumer Private Limited 10 Strides Global Consumer Healthcare Limited 11 Tenshi Kaizen Private Limited 12 Tenshi Pharmaceuticals Private Limited Sale of Property, plant and equipment 1 Tenshi Kaizen Private Limited 2 Stelis Biopharma Limited Sale of Investment property 1 Karuna Business Solutions LLP Guarantee Commission received 1 Stelis Biopharma Limited Rental income 1 Solara Active Pharma Sciences Limited 2 Karuna Health Care Private Limited 3 Stelis Biopharma Limited 4 Tenshi Life Sciences Private Limited 5 Tenshi Pharmaceuticals Private Limited 6 Strides Consumer Private Limited Interest income 1 Juno OTC Inc. 2 Strides Consumer Private Limited Support service income 1 Agnus Capital LLP 2 Alivira Animal Health Limited	6.38 0.32 - - 0.01 - 7.44 35.81 - - - - - - 46.53 92.64 8.12 10.46 3.64 0.69 - - - - - - - 2.93 - - 52.16 41.31 - - - - 0.01 - - - - - 0.89 0.96 0.56 4.96 3.00 3.00 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - 90.49 - - - - - - 352.23 0.01 - 0.08 0.02 - - - - - - - 0.01 0.05 0.03 3.20 - - - 630.00 - - - 15.18 15.24 0.01 - - - 0.01 - 0.01 - - - - - - - - 1.60 - 16.75

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [496 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Nature of Transactions	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21
3 Aurore Life Sciences Private Limited 4 Axxlent Pharma Science Pvt Ltd 5 Biolexis Pte Ltd 6 Brooks Steriscience Private Limited 7 Dairy Power Limited 8 Hydra Active Pharma Science Priavte Limited 9 Naari Pharma Private Limited 10 Naari Pharma Pte Limited 11 Shasun USA Inc 12 Six rays LLP 13 Six Rays Pharma Solutions Llp 14 Six Rays Pte. Limited 15 Sixrays Holdings Pte Ltd 16 Solara Active Pharma Sciences Limited 17 Stelis Biopharma Limited 18 Stelis Pte Ltd 19 Steribrooks Penems Private Limited 20 Steriscience BV 21 Steriscience Pte Ltd Support service income 22 Steriscience Specialties Private Ltd 23 Strides Consumer LLC 24 Strides Consumer Private Limited 25 Strides Global Consumer Healthcare Limited 26 Tenshi Kaizen Private Limited 27 Tenshi Kaizen Pharma Pte Ltd 28 Tenshi Kaizen USA Inc 29 Tenshi Life Science Pte Ltd 30 Tenshi Life Sciences Private Limited 31 Tenshi Pharmaceuticals Private Limited 32 Triphase Pharmaceuticals Pvt Ltd 33 Velbiom Proboitics Private Limited Support service expense 1 Strides Consumer Private Limited Purchase of materials/services 1 Aurore Life Sciences Private Limited 2 Aurore Pharmaceuticals Private Limited 3 Naari Pharma Private Limited 4 Naari Pte Ltd. 5 SeQuent Research Limited 6 Solara Active Pharma Sciences Limited 7 Stelis Biopharma Limited	- - - - - - - - - - - - - - - - - - - - - - - - - - - - 85.43 23.37 3.36 0.33 - - - - - - - - 5.77 8.53 6.29 3.80 5.15 4.83 - - - - - - - - - - - - - - - - 1.19 1.08 - - - - - - - - - - - - 46.03 -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	0.05 0.52 0.08 - 0.31 0.33 0.35 - 1.20 1.82 0.75 - 24.10 23.14 - 0.39 13.28 17.37 0.60 - 0.61 1.50 0.31 0.33 0.26 - 107.99 93.48 - - - - 1.48 0.77 0.07 0.33 8.06 8.33 13.92 3.42 - - - - - - 24.82 14.74 0.08 0.33 0.45 1.88 0.31 0.33 38.36 39.82 2.45 2.70 0.48 0.48 1.40 1.20 - - 245.03 295.79 336.60 28.74 3.44 - 10.91 - - 0.08 1,109.05 2,556.92 - -

Annual Report 2021-22 | 195

194 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Nature of Transactions	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21
		- - - - - - - - - - - 6.27 88.85 177.32 46.05 41.26 7.63 4.72 0.24 0.93 0.05 0.19 0.80 0.50 3.09 3.26 1.30 1.70 1.30 1.70 1.30 1.70 1.20 1.70 - 1.00 - 1.00 - 1.00 - 1.00 - 1.00 - 1.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - 19.42 0.12 - 0.74 - 1.09 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90.32 85.21 37.91 40.65 2.29 3.32 - - 0.09 - 0.30 - 0.16 0.11 0.01 23.82 - - - - 9.18 - 0.00 0.79 - - - -

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Nature of Transactions	Joint ventures and Associates	Directors / KMP / Relatives of KMP	Enterprises owned or signifcantly infuenced by Directors or KMP or their relatives
	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21	Year Ended 31-Mar-22 Year Ended 31-Mar-21
12 Strides Global Consumer Healthcare Limited 13 Tenshi Life Sciences Private Limited 14 Tenshi Kaizen Private Limited 15 Tenshi Kaizen USA Inc Reimbursement of expenses incurred by 1 Aurore Life Sciences Private Limited 2 Chayadeep Properties Private Limited 3 Juno OTC Inc. 4 Solara Active Pharma Sciences Limited (Refer note ii below) 5 Strides Consumer Private Limited 6 Tenshi Kaizen USA Inc 7 Strides Global Consumer Healthcare Limited Lease deposit received 1 Tenshi Life Sciences Private Limited 2 Karuna Health Care Private Limited 3 Tenshi Pharmaceuticals Private Limited Lease deposit Paid/ (refund) 1 Chayadeep Properties Private Limited Investments during the year 1 Strides Global Consumer Healthcare Limited 2 Stelis Biopharma Limited Investments sold to 1 Strides Global Consumer Healthcare Limited	9.41 5.68 - - - - - - - - - - 0.53 0.39 - - - 0.05 - - 3.77 - - - - - - - - - - 165.03 51.06 2,369.95 - 162.80	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - 13.41 - 0.00 1.38 2.52 0.04 0.09 1.22 - - - 98.13 167.62 - - 6.35 - - - 0.05 - 0.05 - 0.05 - (11.35) - - - - - - -

Notes

• i. The compensation excludes gratuity & compensated absences which cannot be separately identified from the composite amount advised by the actuary.

• ii. Transactions and balances with its own subsidiaries which are eliminated on consolidation are not included above.

Note No. 50 Subsidiary information

50.1 Details of the Group’s subsidiaries at the end of the reporting period are as follows:

SI. No.	Name of the subsidiary	Principal activity	Place of Incorporation	Proportion of ownership interest and voting power held by the Group
				31-Mar-22 31-Mar-21
1 2 3	Altima Innovations Inc. Apollo Life sciences Holdings Proprietary Limited Arco Lab Private Limited	Trading in pharmaceutical products Registration and marketing of pharmaceutical products Outsourcing and business support services	USA South Africa India	100.00% 100.00% 51.76% 51.76% 100.00% 100.00%

Annual Report 2021-22 | 197

196 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

SI. No. Name of the subsidiary Principal activity Place of Incorporation Proportion of ownership interest and voting power held by the Group 31-Mar-22 31-Mar-21 4 Arrow Life Sciences (Malaysia) SDN. BHD. Trading in pharmaceutical products Malaysia 100.00% 100.00% 5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 6 Arrow Pharma (Private) Limited Trading in pharmaceutical products Sri Lanka 0.00% 100.00% 7 Arrow Pharma Life Inc. Trading in pharmaceutical products Philippines 0.00% 100.00% 8 Beltapharm S.P.A Manufacturing and trading in pharmaceutical products Italy 97.94% 97.94% 9 Eris Pharma GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 10 Fair-Med Healthcare AG Trading in Pharmaceutical products Switzerland 70.00% 70.00% 11 Fairmed Healthcare GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 12 Generic Partners (International) Pte. Ltd# Supplying and distributing generic pharmaceutical products Singapore 0.00% 100.00% 13 Generic Partners (Canada) Inc Supplying and distributing generic pharmaceutical products Canada 0.00% 100.00% 14 Generic Partners UK Ltd Supplying and distributing generic pharmaceutical products UK 100.00% 100.00% 15 Generic Partners (R&D) Pte Limited# Development of pharmaceutical products Singapore 0.00% 100.00% 16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% 17 Shasun Pharma Solutions Inc. Trading in pharmaceutical products USA 0.00% 100.00% 18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% 19 Stelis Biopharma (Malaysia) SDN. BHD Develop, manufacture, market and trade in pharmaceutical and ancillary products Malaysia 100.00% 100.00% 20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00% 21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 22 Strides Foundation Trust Carrying out Social Responsibility activities India - - 23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00% 24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00% 25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00% 26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 27 Strides Pharma (SA) Pty Ltd. Trading in pharmaceutical products South Africa 60.00% 60.00% 28 Strides Pharma Global (UK) Ltd. Investment Holding UK 100.00% 100.00% 29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00% 31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00% 32 Strides Pharma Global Pte. Limited Develop, manufacture, market and trade in pharmaceutical and ancillary products Singapore 100.00% 100.00% 33 Strides Pharma Inc. Manufacturing and trading in pharmaceutical products USA 100.00% 100.00% 34 Strides Pharma International Limited Investment Holding Cyprus 100.00% 100.00% 35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% 37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00% 38 SVADS Holdings SA Develop and trade in pharmaceutical products Switzerland 100.00% 100.00% 39 Trinity Pharma (Pty) Ltd. Registration and marketing of pharmaceutical products South Africa 51.76% 51.76% 40 Universal Corporation Limited Manufacturing, development and trading in pharmaceuticals products Kenya 51.00% 51.00%	SI. No. Name of the subsidiary Principal activity Place of Incorporation Proportion of ownership interest and voting power held by the Group 31-Mar-22 31-Mar-21 4 Arrow Life Sciences (Malaysia) SDN. BHD. Trading in pharmaceutical products Malaysia 100.00% 100.00% 5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 6 Arrow Pharma (Private) Limited Trading in pharmaceutical products Sri Lanka 0.00% 100.00% 7 Arrow Pharma Life Inc. Trading in pharmaceutical products Philippines 0.00% 100.00% 8 Beltapharm S.P.A Manufacturing and trading in pharmaceutical products Italy 97.94% 97.94% 9 Eris Pharma GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 10 Fair-Med Healthcare AG Trading in Pharmaceutical products Switzerland 70.00% 70.00% 11 Fairmed Healthcare GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 12 Generic Partners (International) Pte. Ltd# Supplying and distributing generic pharmaceutical products Singapore 0.00% 100.00% 13 Generic Partners (Canada) Inc Supplying and distributing generic pharmaceutical products Canada 0.00% 100.00% 14 Generic Partners UK Ltd Supplying and distributing generic pharmaceutical products UK 100.00% 100.00% 15 Generic Partners (R&D) Pte Limited# Development of pharmaceutical products Singapore 0.00% 100.00% 16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% 17 Shasun Pharma Solutions Inc. Trading in pharmaceutical products USA 0.00% 100.00% 18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% 19 Stelis Biopharma (Malaysia) SDN. BHD Develop, manufacture, market and trade in pharmaceutical and ancillary products Malaysia 100.00% 100.00% 20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00% 21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 22 Strides Foundation Trust Carrying out Social Responsibility activities India - - 23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00% 24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00% 25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00% 26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 27 Strides Pharma (SA) Pty Ltd. Trading in pharmaceutical products South Africa 60.00% 60.00% 28 Strides Pharma Global (UK) Ltd. Investment Holding UK 100.00% 100.00% 29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00% 31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00% 32 Strides Pharma Global Pte. Limited Develop, manufacture, market and trade in pharmaceutical and ancillary products Singapore 100.00% 100.00% 33 Strides Pharma Inc. Manufacturing and trading in pharmaceutical products USA 100.00% 100.00% 34 Strides Pharma International Limited Investment Holding Cyprus 100.00% 100.00% 35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% 37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00% 38 SVADS Holdings SA Develop and trade in pharmaceutical products Switzerland 100.00% 100.00% 39 Trinity Pharma (Pty) Ltd. Registration and marketing of pharmaceutical products South Africa 51.76% 51.76% 40 Universal Corporation Limited Manufacturing, development and trading in pharmaceuticals products Kenya 51.00% 51.00%	SI. No. Name of the subsidiary Principal activity Place of Incorporation Proportion of ownership interest and voting power held by the Group 31-Mar-22 31-Mar-21 4 Arrow Life Sciences (Malaysia) SDN. BHD. Trading in pharmaceutical products Malaysia 100.00% 100.00% 5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 6 Arrow Pharma (Private) Limited Trading in pharmaceutical products Sri Lanka 0.00% 100.00% 7 Arrow Pharma Life Inc. Trading in pharmaceutical products Philippines 0.00% 100.00% 8 Beltapharm S.P.A Manufacturing and trading in pharmaceutical products Italy 97.94% 97.94% 9 Eris Pharma GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 10 Fair-Med Healthcare AG Trading in Pharmaceutical products Switzerland 70.00% 70.00% 11 Fairmed Healthcare GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 12 Generic Partners (International) Pte. Ltd# Supplying and distributing generic pharmaceutical products Singapore 0.00% 100.00% 13 Generic Partners (Canada) Inc Supplying and distributing generic pharmaceutical products Canada 0.00% 100.00% 14 Generic Partners UK Ltd Supplying and distributing generic pharmaceutical products UK 100.00% 100.00% 15 Generic Partners (R&D) Pte Limited# Development of pharmaceutical products Singapore 0.00% 100.00% 16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% 17 Shasun Pharma Solutions Inc. Trading in pharmaceutical products USA 0.00% 100.00% 18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% 19 Stelis Biopharma (Malaysia) SDN. BHD Develop, manufacture, market and trade in pharmaceutical and ancillary products Malaysia 100.00% 100.00% 20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00% 21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 22 Strides Foundation Trust Carrying out Social Responsibility activities India - - 23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00% 24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00% 25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00% 26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 27 Strides Pharma (SA) Pty Ltd. Trading in pharmaceutical products South Africa 60.00% 60.00% 28 Strides Pharma Global (UK) Ltd. Investment Holding UK 100.00% 100.00% 29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00% 31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00% 32 Strides Pharma Global Pte. Limited Develop, manufacture, market and trade in pharmaceutical and ancillary products Singapore 100.00% 100.00% 33 Strides Pharma Inc. Manufacturing and trading in pharmaceutical products USA 100.00% 100.00% 34 Strides Pharma International Limited Investment Holding Cyprus 100.00% 100.00% 35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% 37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00% 38 SVADS Holdings SA Develop and trade in pharmaceutical products Switzerland 100.00% 100.00% 39 Trinity Pharma (Pty) Ltd. Registration and marketing of pharmaceutical products South Africa 51.76% 51.76% 40 Universal Corporation Limited Manufacturing, development and trading in pharmaceuticals products Kenya 51.00% 51.00%	SI. No. Name of the subsidiary Principal activity Place of Incorporation Proportion of ownership interest and voting power held by the Group 31-Mar-22 31-Mar-21 4 Arrow Life Sciences (Malaysia) SDN. BHD. Trading in pharmaceutical products Malaysia 100.00% 100.00% 5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 6 Arrow Pharma (Private) Limited Trading in pharmaceutical products Sri Lanka 0.00% 100.00% 7 Arrow Pharma Life Inc. Trading in pharmaceutical products Philippines 0.00% 100.00% 8 Beltapharm S.P.A Manufacturing and trading in pharmaceutical products Italy 97.94% 97.94% 9 Eris Pharma GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 10 Fair-Med Healthcare AG Trading in Pharmaceutical products Switzerland 70.00% 70.00% 11 Fairmed Healthcare GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 12 Generic Partners (International) Pte. Ltd# Supplying and distributing generic pharmaceutical products Singapore 0.00% 100.00% 13 Generic Partners (Canada) Inc Supplying and distributing generic pharmaceutical products Canada 0.00% 100.00% 14 Generic Partners UK Ltd Supplying and distributing generic pharmaceutical products UK 100.00% 100.00% 15 Generic Partners (R&D) Pte Limited# Development of pharmaceutical products Singapore 0.00% 100.00% 16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% 17 Shasun Pharma Solutions Inc. Trading in pharmaceutical products USA 0.00% 100.00% 18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% 19 Stelis Biopharma (Malaysia) SDN. BHD Develop, manufacture, market and trade in pharmaceutical and ancillary products Malaysia 100.00% 100.00% 20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00% 21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 22 Strides Foundation Trust Carrying out Social Responsibility activities India - - 23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00% 24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00% 25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00% 26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 27 Strides Pharma (SA) Pty Ltd. Trading in pharmaceutical products South Africa 60.00% 60.00% 28 Strides Pharma Global (UK) Ltd. Investment Holding UK 100.00% 100.00% 29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00% 31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00% 32 Strides Pharma Global Pte. Limited Develop, manufacture, market and trade in pharmaceutical and ancillary products Singapore 100.00% 100.00% 33 Strides Pharma Inc. Manufacturing and trading in pharmaceutical products USA 100.00% 100.00% 34 Strides Pharma International Limited Investment Holding Cyprus 100.00% 100.00% 35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% 37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00% 38 SVADS Holdings SA Develop and trade in pharmaceutical products Switzerland 100.00% 100.00% 39 Trinity Pharma (Pty) Ltd. Registration and marketing of pharmaceutical products South Africa 51.76% 51.76% 40 Universal Corporation Limited Manufacturing, development and trading in pharmaceuticals products Kenya 51.00% 51.00%	SI. No. Name of the subsidiary Principal activity Place of Incorporation Proportion of ownership interest and voting power held by the Group 31-Mar-22 31-Mar-21 4 Arrow Life Sciences (Malaysia) SDN. BHD. Trading in pharmaceutical products Malaysia 100.00% 100.00% 5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 6 Arrow Pharma (Private) Limited Trading in pharmaceutical products Sri Lanka 0.00% 100.00% 7 Arrow Pharma Life Inc. Trading in pharmaceutical products Philippines 0.00% 100.00% 8 Beltapharm S.P.A Manufacturing and trading in pharmaceutical products Italy 97.94% 97.94% 9 Eris Pharma GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 10 Fair-Med Healthcare AG Trading in Pharmaceutical products Switzerland 70.00% 70.00% 11 Fairmed Healthcare GmbH Trading in Pharmaceutical products Germany 70.00% 70.00% 12 Generic Partners (International) Pte. Ltd# Supplying and distributing generic pharmaceutical products Singapore 0.00% 100.00% 13 Generic Partners (Canada) Inc Supplying and distributing generic pharmaceutical products Canada 0.00% 100.00% 14 Generic Partners UK Ltd Supplying and distributing generic pharmaceutical products UK 100.00% 100.00% 15 Generic Partners (R&D) Pte Limited# Development of pharmaceutical products Singapore 0.00% 100.00% 16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% 17 Shasun Pharma Solutions Inc. Trading in pharmaceutical products USA 0.00% 100.00% 18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% 19 Stelis Biopharma (Malaysia) SDN. BHD Develop, manufacture, market and trade in pharmaceutical and ancillary products Malaysia 100.00% 100.00% 20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00% 21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 22 Strides Foundation Trust Carrying out Social Responsibility activities India - - 23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00% 24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00% 25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00% 26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00% 27 Strides Pharma (SA) Pty Ltd. Trading in pharmaceutical products South Africa 60.00% 60.00% 28 Strides Pharma Global (UK) Ltd. Investment Holding UK 100.00% 100.00% 29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00% 31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00% 32 Strides Pharma Global Pte. Limited Develop, manufacture, market and trade in pharmaceutical and ancillary products Singapore 100.00% 100.00% 33 Strides Pharma Inc. Manufacturing and trading in pharmaceutical products USA 100.00% 100.00% 34 Strides Pharma International Limited Investment Holding Cyprus 100.00% 100.00% 35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% 37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00% 38 SVADS Holdings SA Develop and trade in pharmaceutical products Switzerland 100.00% 100.00% 39 Trinity Pharma (Pty) Ltd. Registration and marketing of pharmaceutical products South Africa 51.76% 51.76% 40 Universal Corporation Limited Manufacturing, development and trading in pharmaceuticals products Kenya 51.00% 51.00%
				31-Mar-22 31-Mar-21
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40	Arrow Life Sciences (Malaysia) SDN. BHD. Arrow Pharma Pte. Ltd. Arrow Pharma (Private) Limited Arrow Pharma Life Inc. Beltapharm S.P.A Eris Pharma GmbH Fair-Med Healthcare AG Fairmed Healthcare GmbH Generic Partners (International) Pte. Ltd# Generic Partners (Canada) Inc Generic Partners UK Ltd Generic Partners (R&D) Pte Limited# PharmaPar Inc. Shasun Pharma Solutions Inc. Stabilis Pharma Inc. Stelis Biopharma (Malaysia) SDN. BHD Strides Arcolab International Ltd. Strides CIS Limited Strides Foundation Trust Strides LifeSciences Limited Strides Netherlands B.V. Strides Nordics ApS Strides Pharma (Cyprus) Limited Strides Pharma (SA) Pty Ltd. Strides Pharma Global (UK) Ltd. Strides Pharma Asia Pte. Ltd. Strides Pharma Science Pty Ltd Strides Pharma Canada Inc. Strides Pharma Global Pte. Limited Strides Pharma Inc. Strides Pharma International Limited Strides Pharma UK Ltd. Strides Pharma Latina, SA De CV Strides Vivimed Pte. Ltd.# SVADS Holdings SA Trinity Pharma (Pty) Ltd. Universal Corporation Limited	Trading in pharmaceutical products Investment Holding Trading in pharmaceutical products Trading in pharmaceutical products Manufacturing and trading in pharmaceutical products Trading in Pharmaceutical products Trading in Pharmaceutical products Trading in Pharmaceutical products Supplying and distributing generic pharmaceutical products Supplying and distributing generic pharmaceutical products Supplying and distributing generic pharmaceutical products Development of pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Develop, manufacture, market and trade in pharmaceutical and ancillary products Investment Holding Trading in pharmaceutical products Carrying out Social Responsibility activities Trading in pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Investment Holding Investment Holding Trading in pharmaceutical products Trading in pharmaceutical products Develop, manufacture, market and trade in pharmaceutical and ancillary products Manufacturing and trading in pharmaceutical products Investment Holding Trading in pharmaceutical products Trading in pharmaceutical products Trading in pharmaceutical products Develop and trade in pharmaceutical products Registration and marketing of pharmaceutical products Manufacturing, development and trading in pharmaceuticals products	Malaysia Singapore Sri Lanka Philippines Italy Germany Switzerland Germany Singapore Canada UK Singapore Canada USA USA Malaysia UK Cyprus India Nigeria Netherlands Denmark Cyprus South Africa UK Singapore Australia Canada Singapore USA Cyprus UK Mexico Singapore Switzerland South Africa Kenya	100.00% 100.00% 100.00% 100.00% 0.00% 100.00% 0.00% 100.00% 97.94% 97.94% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 0.00% 100.00% 0.00% 100.00% 100.00% 100.00% 0.00% 100.00% 100.00% 80.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% - - 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 60.00% 60.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 80.00% 80.00% 0.00% 100.00% 100.00% 100.00% 51.76% 51.76% 51.00% 51.00%

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

				Proportion of ownership interest and voting power held by the Group
				31-Mar-22 31-Mar-21
41 42	Vensun Pharmaceuticals, Inc. Vivimed Life Sciences Private Limited	Develop and trade in pharmaceutical products Manufacturing, development and tradinginpharmaceuticalsproducts	USA India	100.00% 100.00% 100.00% 100.00%

Notes

• Divested/Liquidated during the year.

• Merged with Strides Pharma Global Pte. Limited (Refer note 50.2.2)

50.2 Business combination under common control

50.2.1 The Scheme u/s 230 to 232 of the Companies Act, 2013, between Strides (the transferee company), Strides Emerging Market Limited, Arrow Remedies Private Limited, and Fagris Medica Private Limited (together, the transferor companies) with an appointed date of April 1, 2019 was approved by the National Company Law Tribunal (NCLT), Bangalore Bench vide order dated May 28, 2020 and by the NCLT, Maharashtra Bench vide order dated November 6, 2020.

Particulars	Date of control
Strides Emerging Market Limited Arrow Remedies Private Limited Fagris Medica Private Limited	01-Jun-12 12-Sep-15 31-Mar-17

Salient features of the Scheme

1. As the Transferee Company is the ultimate holding company of the Transferor Companies, there shall not be any issue of shares as purchase consideration to the sharholders of the Transferor Companies. Further, upon the scheme becoming effective the investments in the share capital of the Transferor companies, appearing in the books of accounts of the Transferee Company, if any, stands cancelled.

2. Upon the Scheme becoming effective, the authorised share capital of the Transferor Companies shall stand combined with the authorised share capital of the Transferee Company. Accordingly, the authorised share capital of the Company will be H 1,883,700,000 comprising 188,370,000 shares of H 10 each, with effect from appointed date.

3. On the Scheme becoming effective and with effect from the Appointed Date, the merger of the Transferor Companies with the Transferee Company is accounted by the Transferee Company as per the applicable accounting principles prescribed under the Indian Accounting Standard (Ind AS) 103, ‘Business Combinations’ notified under Section 133 of the Act and/ or any other applicable Ind AS, as amended from time to time.

4. On scheme becoming effective, the securities premium of Strides Emerging Markets Limited have been recorded as securties premium for Strides Pharma Science Limited with a coresponding adjustment to capital reserve.

5. This merger had no material impact on Consolidated financial statements, since these were already being consolidated.

50.2.2 During the year, the wholly owned subsidiaries of the group, namely, Generic Partners (International) Pte Limited, Generic Partners (R&D) Pte Limited, and Strides Vivimed Pte Limited got merged with another wholly owned subsidiary of the group, Strides Pharma Global Pte. Limited, Singapore, with effect from 1 June, 2021. The merger was apporved by the Accounting and Corporate Regulatory Authority of Singapore (ACRA). The merger had no impact on Consolidated financial statements, since these entities were already being consolidated.

Annual Report 2021-22 | 199

198 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million

Note No. 51 Financial instruments

51.1 Categories of financial instruments

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Financial assets: Measured at fair value through proft or loss (FVTPL) (a) Mandatorily measured: (i) Investment in Mutual funds Measured at amortised cost (a) Cash and bank balances (b) Loans (c) Trade receivables (d) Other fnancial assets at amortised cost Measured at FVTOCI (a) Fair value of derivatives designated in a cash fow hedge (b) Investments in certain equity instruments designated upon initial recognition Financial liabilities: Measured at fair value through proft or loss (FVTPL) (a) Gross obligation under written put option (b) Derivative fnancial liabilities (c) Other fnancial liabilities Measured at amortised cost (a) Borrowings (including current maturities of non-current borrowings) (b) Security deposit (c) Trade payables (d) Unclaimed dividends (e) Payables on purchase of property, plant and equipments and intangible assets (f) Payables on purchase of non-current investments (g) Lease liabilities (h) Other fnancial liabilities Measured at FVTOCI (a)Derivative fnancial liabilities	- 1,873.52 78.24 12,073.01 6,357.00 9.08 47.83 242.88 1.79 506.63 27,919.60 29.00 10,715.24 10.91 171.06 114.59 2,330.65 573.95 73.28	994.12 1,797.65 144.38 11,105.87 5,827.51 64.54 141.02 330.81 - 461.71 21,033.88 39.59 11,342.00 21.68 211.39 110.40 2,448.37 557.11 271.74

51.1.1 Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

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).

51.1.2 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a

recurring basis

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and input(s) used).

Financial assets / fnancial liabilities	Fair value as at	Fair value hierarchy	Valuation technique(s) and key input(s)
	31-Mar-22 31-Mar-21
Financial assets: Foreign currency forward contracts designated in hedge accounting relationships (FVTOCI) Investment in Mutual fund (quoted) Investment in equity instruments at FVTOCI (quoted) Financial liabilities: Gross obligation under put options Contingent consideration payable Cash settled share based payments (FVTPL) Foreign currency forward contracts designated in hedge accounting relationships (FVTPL) Foreign currency forward contracts designated in hedge accounting relationships (FVTOCI) Interest rate swaps designated in hedge accounting relationships (FVTOCI)	9.08 64.54 - 994.12 47.83 141.02 242.88 330.81 473.63 408.91 33.00 52.80 1.79 - 3.84 - 69.44 271.74	Level 2 Level 1 Level 1 Level 3 Level 3 Level 3 Level 2 Level 2 Level 2	The fair value of forward foreign contracts are determined using spot and forward exchange rates at the balance sheet date. The fair value is determined based on the Net asset value published by respective funds. The fair value of the said investment is derived based on the quoted prices on stock exchanges. The said obligation under put options are valued using Black Scholes / Monte carlo simulation model. Signifcant unobservable inputs used for the said valuation are volatility and risk free interest rate (Discount rate). Refer note (a) below The fair value has been derived based on the estimated payout based on the projected profts of the subsidiary and discounted for the present value using the risk free interest rate / weighted average cost of capital. The fair value of cash settled share based payments is determined using Black Scholes model. Signifcant input is underlying value of the equity shares of the company. The fair value of forward foreign contracts are determined using forward exchange rates at the balance sheet date. The fair value of forward foreign contracts are determined using forward exchange rates at the balance sheet date. Future cash fows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that refects the credit risk of various counterparties.

Notes:

• a) There is a wide range of possible fair value measurements for the valuation of exercise price of written-put options included in Level 3 of fair value hierarchy and the amount considered above represents the estimate of the fair value within that range.

Reconciliation of Level 3 fair value measurements

a) Gross obligation under put options

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Opening balance Add: Payable on new acquisitions Less: Exercise of put options Add: Cancellation / losses in the statement of proft and loss Add: Currencytranslations in other comprehensive income	330.81 - (95.00) 9.11 (2.04)	82.37 223.01 - 12.05 13.38
Closing balance	242.88	330.81

Annual Report 2021-22 | 201

200 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

b) Contingent consideration payable

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Opening balance Disposal / settlements Add: Unwinding of discounting in the statement of proft and loss Less: Currencytranslations in other comprehensive income	408.91 (26.43) 74.63 16.52	535.72 (185.99) 74.35 (15.17)
Closing balance	473.63	408.91

The above said gain / loss on fair valuation of options and contingent consideration is recognised in the statement of profit and loss under “Exceptional items”.

51.1.3 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value

disclosures are required)

Except as detailed in the following table, the Group considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements at amortized cost will reasonably approximate their fair values.

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
	Carrying Amount Fair Value	Carrying Amount Fair Value
Financial assets Loans receivable Security deposit Financial liabilities Borrowings	78.24 78.24 380.70 407.51 27,919.60 27,978.73	144.38 144.38 284.89 307.36 21,033.88 21,130.01

51.2 Financial risk management objectives

The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Group is foreign exchange risk. The Group uses derivative financial instruments to mitigate foreign exchange related risk exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

51.3 Foreign currency risk management

The Group is exposed to foreign exchange risk due to:

• debt availed in foreign currency

• net investments in subsidiaries and joint ventures that are in foreign currencies

• exposure arising from transactions relating to purchases, revenues, expenses, etc., to be settled (within and outside the group) in currencies other than the functional currency of the respective entities

Exchange rate exposures are managed within approved policy parameters by utilising forward foreign exchange contracts.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

The following table details the forward foreign currency contracts outstanding at the end of the reporting period:

Contracts designated in a cash flow hedge

Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86	Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86	Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86	Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86	Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86	Outstanding contracts Underlying Exposure Average exchange rate (H) Foreign currency (USD in Million) Nominal amounts (Hin Million) Fair value assets (liabilities) (H in Million) As at March 31, 2022 Sell AUD Less than 3 months Forecasted sales 57.64 6.00 345.84 348.86 3 to 6 months 57.13 6.00 342.78 338.94 6 to 12 months 59.23 12.00 704.40 710.46 Total 1,393.02 1,398.26 As at March 31, 2021 Sell USD Forecasted sales Less than 3 months 77.01 15.00 1,155.28 1,208.78 Sell GBP Forecasted sales 6 to 12 months 106.67 6.00 640.04 651.08 Total 1,795.32 1,859.86
As at March 31, 2022 Sell AUD Less than 3 months 3 to 6 months 6 to 12 months	Forecasted sales	57.64 57.13 59.23	6.00 6.00 12.00	345.84 342.78 704.40	348.86 338.94 710.46
Total As at March 31, 2021 Sell USD Less than 3 months Sell GBP 6 to 12 months				1,393.02	1,398.26
	Forecasted sales Forecasted sales	77.01 106.67	15.00 6.00	1,155.28 640.04	1,208.78 651.08
Total				1,795.32	1,859.86

The line-items in the Consolidated balance sheet that include the above hedging instruments are “Other financial assets”.

Contracts not designated in a cash flow hedge

Outstanding contracts	Average exchange rate*	Foreign currency (USD in Million)	Nominal amounts (Hin Million)	Fair value assets (liabilities) (Hin Million)
As at March 31, 2022 Trade payable hedged with forward contract with maturityless than 3 months	15.17	0.50	39.05	37.26
Total			39.05	37.26

• Average exchange rate of ZAR per USD

The details of unhedged foreign currency exposure are as follows:

H In Million

		HIn Million
Amount receivable/(payable)	As at 31-Mar-22	As at 31-Mar-21
Exposure to the Currency	in foreign Currency in INR	in foreign Currency in INR
USD AUD EUR GBP SGD Others	(7.28) (552.75) 118.67 6,740.61 12.02 1,009.95 13.43 1,339.80 (27.17) (1,522.13) 2.63 165.74	(19.65) (1,437.62) 105.53 5,865.05 5.61 481.72 (0.17) (17.12) (29.27) (1,591.85) 3.80 226.53

51.3.1 Forward exchange contracts

It is the policy of the Group to enter into forward foreign exchange contracts to cover the following:

• a. repayments of specific foreign currency borrowings.

• b. the risk associated with anticipated sales transactions out to 6 months within 50% to 70% of the exposure generated.

Annual Report 2021-22 | 203

202 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

51.3.2 Foreign currency sensitivity analysis

Financial instruments affected by changes in foreign exchange rates include External Commercial Borrowings (ECBs), loans in foreign currencies to subsidiaries and joint ventures. The Group considers US Dollar and the Euro to be principal currencies which require monitoring and risk mitigation. The Group is exposed to volatility in other currencies including the Great Britain Pounds (GBP) and the Australian Dollar (AUD). The impact on account of 5% appreciation / depreciation in the exchange rate of the above foreign currencies against Rs. is given below:

H In Million

given below:		HIn Million
Particulars	Increase /(decrease) inproft	Increase /(decrease) in equity
	31-Mar-22 31-Mar-21	31-Mar-22 31-Mar-21
Appreciation in the USD Depreciation in the USD Appreciation in the EUR Depreciation in the EUR Appreciation in the AUD Depreciation in the AUD Appreciation in the GBP Depreciation in the GBP	(27.64) (71.88) 27.64 71.88 50.50 24.09 (50.50) (24.09) 337.03 293.25 (337.03) (293.25) 66.99 (0.86) (66.99) 0.86	(16.04) (52.34) 16.04 52.34 34.69 17.30 (34.69) (17.30) 254.90 234.61 (254.90) (234.61) 37.56 (6.93) (37.56) 6.93

The impact on profit has been arrived at by applying the effects of appreciation / deprecation effects of currency on the net position (Assets in foreign currency - Liabilities in foreign currency) in the respective currencies.

For the purposes of the above table, it is assumed that the carrying value of the financial assets and liabilities as at the end of the respective financial years remains constant thereafter. The exchange rate considered for the sensitivity analysis is the exchange rate prevalent as at each year end.

The sensitivity analysis might not be representative of inherent foreign exchange risk due to the fact that the foreign exposure at the end of the reporting period might not reflect the exposure during the year.

51.4 Interest rate risk management

Interest rate risk arises from borrowings. Debt issued at variable rates exposes the Group to cash flow risk. Debt issued at fixed rate exposes the Group to fair value risk. The Group mitigates its interest rate risk by entering into interest rate swap contracts.

51.4.1 Interest rate sensitivity analysis

Financial instruments affected by interest rate changes include secured long term loans from banks, secured long term loans from others, unsecured long term loans, secured short term loans from banks and unsecured short term loans from banks and others. The substantial portion of the borrowings of the Group have a floating rate of interest (refer note 22). The impact of a 1% change in interest rates on the profit of an annual period will be H 279.79 Million (Previous year : H 211.30 Million) assuming the loans at each year end remain constant during the respective years. This computation does not involve a revaluation of the fair value of loans as a consequence of changes in interest rates. The computation also assumes that an increase in interest rates on floating rate liabilities will not necessarily involve an increase in interest rates on floating rate financial assets.

51.4.2 Interest rate swap contracts

Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period and the credit risk inherent in the contract, and is disclosed below. The average interest rate is based on the outstanding balances at the end of the reporting period.

The following tables detail the nominal amounts and remaining terms of interest rate swap contracts outstanding at the reporting period end.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

(a) Contracts designated in a cash flow hedge

Borrowing in USD floating rate swaped for repayment in USD fixed rate at March 31, 2022:

			HIn Million
Outstanding contracts	Average contracted fxed interest rate	Nominal amounts	Fair value assets (liabilities)
Less than 1 year 1 to 2 years 2 to 5 years 5years +	6.17% }	1,003.04 759.30 1,518.60 -	985.48 742.00 1,484.02 -
Total		3,280.94	3,211.50
Borrowing in USD foating rate swaped for repayment in USD fxed rate at March 31, 2021:			HIn Million
Outstanding contracts	Average contracted fxed interest rate	Nominal amounts	Fair value assets (liabilities)
Less than 1 year 1 to 2 years 2 to 5 years 5years +	6.17% }	1,024.08 966.29 2,194.46 -	968.81 912.79 2,031.49 -
Total		4,184.83	3,913.09

The line-item in the consolidated balance sheet that includes the above instruments is “Other financial liabilities”.

The interest rate swaps settle on a quarterly basis. The floating rate on the interest rate swaps is the local interbank rate in the currency of the loan. The Group will settle the difference between the fixed and floating interest rate on a net basis.

51.5 Other price risks

The Group is exposed to equity price risks arising from equity investments. Certain of the Group’s equity

investments are held for strategic rather than for trading purposes.

51.5.1 Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, other comprehensive income for the year ended March 31, 2022 would increase/decrease by H 2.39 Million (for the year ended March 31, 2021: increase/decrease by H 7.05 Million) as a result of the changes in fair value of equity investments measured at FVTOCI.

51.6 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Credit Risk to the group primarily arises from trade receivables. Credit risk also arises from cash and cash equivalents, loans, financial instruments and deposits with banks and financial institutions and other financial assets.

The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group has an internal mechanism of determining the credit rating of the customers and setting credit limits. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

The Group is not significantly exposed to geographical distribution risk as the counterparties operate across various countries across the Globe.

Annual Report 2021-22 | 205

204 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are

banks with high credit ratings.

In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates as given in the provision matrix. The Provision matrix at the end of reporting period as follows:

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Age of receivables	31-Mar-22	31-Mar-21
	Trade receivable Expected credit loss allowance	Trade receivable Expected credit loss allowance
Within Credit Less than 180 Days 180-360 Days 360-540 Days 540-720 Days Over 720 Days	10,098.76 65.72 1,523.55 23.75 256.95 40.35 102.46 37.85 6.47 5.67 507.06 248.90	8,558.18 116.41 2,214.81 84.83 61.71 10.54 202.91 30.04 262.44 147.54 426.00 230.82
Total	12,495.25 422.24	11,726.05 620.18

Movement in Expected credit loss allowance

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Balance at the beginning of the year Written off during the year Movement in Expected credit loss allowance on trade receivables calculated at lifetime expected credit losses	620.18 (183.86) (14.08)	684.23 (158.66) 94.61
Balance at end of theyear	422.24	620.18

51.7 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of directors, which has established an appropriate liquidity risk management framework for the management of the Group’s short-term, mediumterm and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial assets and liabilities. A portion of the Group’s surplus cash is retained as investments in Liquid Mutual Funds to fund short term requirements.

51.7.1 Liquidity analysis for non-derivative liabilities

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay.

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Financial liabilities	Due within(years)	Total	Carrying Amount
	1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5
Trade and other payable not in net debt - As on March 31, 2022 - As on March 31,2021	12,227.35 613.13 444.62 259.84 212.61 1,970.79 12,714.52 472.54 405.54 376.29 284.12 2,433.17	15,728.34 16,686.18	14,393.93 15,144.40

51.8 Capital management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of net debt (borrowings as detailed in notes 9,11,17, 18 and 22 offset by cash and bank balances and Investment in Mutual funds) and total equity of the Group.

The Group reviews the capital structure of the Group on a quarterly basis to ensure that it in compliance with the required covenants. The Group has a target gearing ratio of 1:1 determined as the proportion of net debt to total equity. The gearing ratio at March 31, 2022 is 1.09 (March 31, 2021: 0.64).

The Group is not subject to any externally imposed capital requirements.

51.8.1 Gearing ratio

The gearing ratio at end of the reporting period was as follows.

==> picture [493 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Debt (i) Less: Investment in Mutual funds Cash and bank balances Fixed deposits with banks with more than 12 months maturity	27,919.60 - 1,873.52 12.91	21,033.88 994.12 1,797.65 139.79
Net Debt(A)	26,033.17	18,102.32
Total Equity (B)	23,833.16	28,140.02
Net debt to equity ratio(A/B)	1.09	0.64

• (i) Debt is defined as long-term borrowings, current maturities of long-term borrowings and short-term borrowings and does not include obligations relating to derivatives over non-controlling interests.

Note No. 52 Transfer Pricing

The detailed transfer pricing regulations (‘regulations’) for computing the income from “domestic transactions” with specified parties and international transactions between ‘associated enterprises’ on an ‘arm’s length’ basis is applicable to the Group. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant which is to be filed with the Income tax authorities. The Group has undertaken necessary steps to comply with the transfer pricing regulations. The Management is of the opinion that the transactions with associated enterprises and domestic transactions are at arm’s length, and hence the aforesaid legislation will not have any material impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Financial liabilities	Due within(years)	Total	Carrying Amount
	1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5
Bank and other borrowings - As on March 31, 2022 - As on March 31, 2021 Interest payable on borrowings - As on March 31, 2022 - As on March 31, 2021	19,563.37 5,654.25 937.25 762.98 238.52 822.36 12,208.10 1,900.35 4,716.13 1,214.18 1,091.25 - 58.10 - - - - - 47.85 - - - - -	27,978.73 21,130.01 58.10 47.85	27,919.60 21,033.88 58.10 47.85

Annual Report 2021-22 | 207

206 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 53

(a) Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 for the year ended March 31, 2022

Name of entity	Net assets, i.e., total assets minus total liabilities	Share in proft or loss	Share in other comprehensive income	Share in total comprehensive income
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million	As % of consolidated total comprehensive income Jin Million
Strides Pharma Science Limited Indian Subsidiaries: Arco Lab Private Limited Strides Foundation Trust Vivimed Lifesciences Private Limited Foreign Subsidiaries: Altima Innvovations Inc. Apollo Life Sciences Holdings Proprietary Limited Arrow Life Sciences (Malaysia) SDN. BHD. Arrow Pharma (Private) Limited Arrow Pharma Life Inc. Arrow Pharma Pte Limited Beltapharm SpA ERIS Pharma GmbH. Germany Fairmed Healthcare AG,Switzerland Fair-Med HealthcareGmbH, Germany Generic Partners R&D Pte Ltd Generic Partners (Canada) Inc. Generic Partners (International) Pte Limited Generic Partners UK Limited Pharmapar Inc. Shasun Pharma Solutions Inc. Stabilis Pharma Inc. Stelis Biopharma (Malaysia) SDN. BHD. Strides Arcolab International Limited Strides CIS Limited	43.26% 34,066.72 0.20% 161.18 0.04% 30.67 0.62% 484.98 0.00% 0.58 0.00% - 0.00% (0.88) 0.00% - 0.00% - 0.00% 0.86 0.22% 176.66 -0.03% (22.87) -0.04% (31.23) -2.07% (1,633.06) 0.00% - 0.00% - 0.00% - 0.05% 41.57 -0.17% (135.05) 0.00% - 0.00% (0.20) 0.12% 92.98 6.05% 4,760.64 0.00% (2.54)	-27.55% 1,801.88 -0.48% 31.31 0.01% (0.34) 1.66% (108.82) 0.00% (0.04) -0.06% 4.23 0.00% (0.29) 0.00% (0.31) -0.02% 1.36 0.01% (0.98) 0.35% (22.77) 0.07% (4.40) 3.41% (223.05) 5.96% (389.47) 0.00% - -0.19% 12.60 0.00% 0.10 0.04% (2.72) 1.97% (128.73) -0.01% 0.70 0.00% (0.24) -0.02% 1.34 7.33% (479.28) 0.00% 0.28	-55.78% (40.22) 8.38% 6.04 0.00% - 1.79% 1.29 - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -	-27.24% 1,761.66 -0.58% 37.35 0.01% (0.34) 1.66% (107.53) 0.00% (0.04) -0.07% 4.23 0.00% (0.29) 0.00% (0.31) -0.02% 1.36 0.02% (0.98) 0.35% (22.77) 0.07% (4.40) 3.45% (223.05) 6.02% (389.47) 0.00% - -0.19% 12.60 0.00% 0.10 0.04% (2.72) 1.99% (128.73) -0.01% 0.70 0.00% (0.24) -0.02% 1.34 7.41% (479.28) 0.00% 0.28

Name of entity Net assets, i.e., total assets minus total liabilities Share in proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Jin Million As % of consolidated proft or loss Jin Million As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million	Name of entity Net assets, i.e., total assets minus total liabilities Share in proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Jin Million As % of consolidated proft or loss Jin Million As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million	Name of entity Net assets, i.e., total assets minus total liabilities Share in proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Jin Million As % of consolidated proft or loss Jin Million As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million	Name of entity Net assets, i.e., total assets minus total liabilities Share in proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Jin Million As % of consolidated proft or loss Jin Million As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million	Name of entity Net assets, i.e., total assets minus total liabilities Share in proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Jin Million As % of consolidated proft or loss Jin Million As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million	As % of consolidated total comprehensive income Jin Million
Strides Life Sciences Limited Strides Pharma (Cyprus) Limited Strides Pharma (SA) Pty Limited Strides Netherlands B.V. Strides Nordic ApS, Stides Pharma Science Pty Ltd Strides Pharma Global (UK) Limited Strides Pharma Asia Pte Limited Strides Pharma Canada Inc. Strides Pharma Global Pte Limited Strides Pharma Inc. Strides Pharma International Limited Strides Pharma UK Limited Strides Shasun Latina, SA de CV Strides Vivimed Pte Limited SVADS Holdings SA Trinity Pharma Proprietary Limited Universal Corporation Limited Vensun Pharmaceuticals Inc. Indian Associates: Stelis Biopharma Private Limited Strides Consumer Private Limited Biolexis Private Limited Foreign Associates: Aponia Laboratories Inc. Juno OTC Canada Regional Bio Equivalence Centre S.C., Stelis Pte Limited	-0.30% (233.65) 1.69% 1,334.20 -0.05% (40.32) 0.02% 17.99 -0.01% (11.36) 0.05% 39.35 1.92% 1,513.55 19.16% 15,085.97 0.49% 389.42 17.90% 14,093.47 8.12% 6,391.46 1.44% 1,134.61 0.93% 735.30 0.02% 18.19 0.00% - 0.55% 436.82 0.41% 324.93 0.93% 729.03 -1.53% (1,208.11) 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -	0.87% (56.90) -3.30% 215.90 0.48% (31.50) -0.22% 14.42 0.41% (26.61) 0.36% (23.58) 3.62% (236.47) 0.00% (0.01) -0.07% 4.29 75.55% (4,940.82) 10.77% (704.30) -0.95% 61.93 3.59% (234.86) 0.06% (4.01) 0.01% (0.35) 0.92% (60.15) -1.73% 113.26 0.19% (12.21) 0.03% (2.19) 13.11% (857.50) 1.18% (77.39) 0.00% - 0.00% - 0.07% (4.65) 0.00% - 0.00% -	0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - -8.49% (6.12) 0.00% - 0.00% - 247.36% 178.37 -93.26% (67.25) 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% - 0.00% - 0.00% -	0.88% (56.90) -3.34% 215.90 0.49% (31.50) -0.22% 14.42 0.41% (26.61) 0.36% (23.58) 3.75% (242.59) 0.00% (0.01) -0.07% 4.29 73.63% (4,762.45) 11.93% (771.55) -0.96% 61.93 3.63% (234.86) 0.06% (4.01) 0.01% (0.35) 0.93% (60.15) -1.75% 113.26 0.19% (12.21) 0.03% (2.19) 13.26% (857.50) 1.20% (77.39) 0.00% - 0.00% - 0.07% (4.65) 0.00% - 0.00% -

Annual Report 2021-22 | 209

208 |

Strides Pharma Science Limited

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Name of entity	Net assets, i.e., total assets minus total liabilities	Share in proft or loss	Share in other comprehensive income	Share in total comprehensive income
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million	As % of consolidated total comprehensive income Jin Million
Stelis Biopharma LLC Strides Consumer LLC Strides Global Consumer Healthcare Limited Foreign Joint ventures: Sihuan Strides (HK) Limited	0.00% - 0.00% - 0.00% - 0.00% -	0.00% - 0.00% - 2.35% (153.89) 0.22% (14.69)	0.00% - 0.00% - 0.00% - - 0.00% -	0.00% - 0.00% - 2.38% (153.89) 0.23% (14.69)
Total	100.00% 78,741.86	100.00% (6,539.92)	100.00% 72.11	100.00% (6,467.81)
a) Adjustments arising out of consolidation b) Minority Interest in all subsidiaries: Foreign Subsidiaries: Total	(55,149.58) 240.88	1,937.81 (140.39)	404.93 12.95	2,342.74 (127.44)
	23,833.16	(4,742.50)	489.99	(4,252.51)

• (i) The amounts given here in respect of associates and joint ventures are the share of the Group in the profit or loss of the respective associates and joint ventures.

(b) Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 for the year ended March 31, 2021

Name of entity	Net assets, i.e., total assets minus total liabilities	Share in proft or loss	Share in other comprehensive income	Share in total comprehensive income
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million	As % of consolidated total comprehensive income Jin Million
Strides Pharma Science Limited Indian Subsidiaries: Arco Lab Private Limited Strides Foundation Trust Vivimed Lifesciences Private Limited Foreign Subsidiaries: Altima Innvovations Inc. Apollo Life Sciences Holdings Proprietary Limited Arrow Life Sciences (Malaysia) SDN. BHD. Arrow Pharma (Private) Limited Arrow Pharma Life Inc. Arrow Pharma Pte Limited Beltapharm SpA	40.08% 32,480.58 0.09% 72.70 0.04% 31.01 0.73% 592.51 0.00% 0.60 0.00% (2.04) 0.00% (0.58) 0.00% 0.32 0.00% (1.39) -0.10% (77.54) 0.29% 232.80	21.92% 782.40 1.41% 50.23 0.13% 4.63 3.39% 121.06 0.00% (0.04) 0.00% (0.17) 0.00% (0.17) 0.00% (0.05) -0.06% (1.97) -0.05% (1.90) 0.95% 34.00	52.43% 239.25 - -0.04% (0.19) 0.00% - 0.32% 1.45 - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -	25.37% 1,021.65 1.24% 50.04 0.11% 4.63 3.04% 122.51 0.00% (0.04) 0.00% (0.17) 0.00% (0.17) 0.00% (0.05) -0.05% (1.97) -0.05% (1.90) 0.84% 34.00

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Name of entity	Net assets, i.e., total assets minus total liabilities	Share in proft or loss	Share in other comprehensive income Share in total comprehensive income
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million As % of consolidated total comprehensive income Jin Million
ERIS Pharma GmbH. Germany Fairmed Healthcare AG,Switzerland Fair-Med HealthcareGmbH, Germany Generic Partners R&D Pte Ltd Generic Partners (Canada) Inc. Generic Partners (International) Pte Limited Generic Partners UK Limited Pharmapar Inc. Shasun Pharma Solutions Inc. Stabilis Pharma Inc. Stelis Biopharma (Malaysia) SDN. BHD. Strides Arcolab International Limited Strides CIS Limited Strides Life Sciences Limited Strides Pharma (Cyprus) Limited Strides Pharma (SA) Pty Limited Strides Netherlands B.V. Strides Nordic ApS, Stides Pharma Science Pty Ltd Strides Pharma Global (UK) Limited Strides Pharma Asia Pte Limited Strides Pharma Canada Inc. Strides Pharma Global Pte Limited Strides Pharma Inc. Strides Pharma International Limited Strides Pharma UK Limited Strides Shasun Latina, SA de CV	-0.02% (19.97) 0.16% 126.11 -1.69% (1,367.75) 0.00% 3.51 -0.02% (12.34) 0.00% 3.66 0.06% 44.72 -0.01% (10.15) 0.00% (0.69) 0.00% 0.04 0.11% 90.03 6.24% 5,057.40 0.00% (1.89) -0.23% (189.03) 1.42% 1,147.62 -0.02% (16.37) 0.00% 4.03 0.02% 14.88 0.05% 42.27 2.19% 1,771.15 17.93% 14,533.34 0.37% 297.73 22.66% 18,367.05 6.64% 5,382.71 1.27% 1,032.17 1.21% 976.81 0.02% 19.58	-0.02% (0.64) 0.92% 32.90 -10.68% (381.41) 0.00% - -0.40% (14.22) 0.00% (0.07) -0.01% (0.21) -3.37% (120.21) 0.00% (0.07) 0.00% (0.10) -0.13% (4.75) -5.68% (202.61) -0.82% (29.17) -1.28% (45.66) 7.94% 283.44 -1.14% (40.66) 0.08% 2.97 0.06% 1.97 -0.49% (17.45) 0.15% 5.30 0.26% 9.44 -0.88% (31.58) 89.90% 3,209.52 12.59% 449.34 2.63% 93.87 5.61% 200.37 -0.10% (3.59)	0.00% - -0.02% (0.64) 0.00% - 0.82% 32.90 0.00% - -9.47% (381.41) 0.00% - 0.00% - 0.00% - -0.35% (14.22) 0.00% - 0.00% (0.07) 0.00% - -0.01% (0.21) 0.00% - -2.99% (120.21) 0.00% - 0.00% (0.07) 0.00% - 0.00% (0.10) 0.00% - -0.12% (4.75) 0.00% - -5.03% (202.61) 0.00% - -0.72% (29.17) 0.00% - -1.13% (45.66) 0.00% - 7.04% 283.44 0.00% - -1.01% (40.66) 0.00% - 0.07% 2.97 0.00% - 0.05% 1.97 0.00% - -0.43% (17.45) 5.35% 24.40 0.74% 29.70 0.00% - 0.23% 9.44 0.00% - -0.78% (31.58) 24.43% 111.47 82.48% 3,320.99 17.51% 79.91 13.14% 529.25 0.00% - 2.33% 93.87 0.00% - 4.98% 200.37 0.00% - -0.09% (3.59)

Annual Report 2021-22 | 211

210 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

Notes

forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 54 Equity accounted investees

Name of entity	Net assets, i.e., total assets minus total liabilities	Share in proft or loss	Share in other comprehensive income	Share in total comprehensive income
	As % of consolidated net assets Jin Million	As % of consolidated proft or loss Jin Million	As % of consolidated other comprehensive income Jin Million	As % of consolidated total comprehensive income Jin Million
Strides Vivimed Pte Limited SVADS Holdings SA Trinity Pharma Proprietary Limited Universal Corporation Limited Vensun Pharmaceuticals Inc. Indian Associates: Stelis Biopharma Private Limited Strides Consumer Private Limited Foreign Associates: Aponia Laboratories Inc. Juno OTC Canada Regional Bio Equivalence Centre S.C., Stelis Pte limited Stelis Biopharma LLC Strides Consumer LLC Strides Global Consumer Healthcare Limited Foreign Joint ventures: Sihuan Strides (HK) Limited	0.19% 155.77 0.55% 447.08 0.28% 227.15 0.92% 746.71 -1.43% (1,161.70) 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -	-0.02% (0.54) 2.69% 96.02 2.77% 98.90 -0.72% (25.82) -0.14% (5.06) -16.21% (578.77) 0.00% - -0.12% (4.16) -0.59% (21.19) 0.00% - 0.00% - 0.00% - 0.00% - -9.51% (339.58) -0.97% (34.49)	0.00% - 0.00% - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% - - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - - 0.00% -	-0.01% (0.54) 2.38% 96.02 2.46% 98.90 -0.64% (25.82) -0.13% (5.06) -14.37% (578.77) 0.00% - -0.10% (4.16) -0.53% (21.19) 0.00% - 0.00% - 0.00% - 0.00% - -8.43% (339.58) -0.86% (34.49)
Total	100.00% 81,040.60	100.00% 3,570.05	100.00% 456.29	100.00% 4,026.34
a) Adjustments arising out of consolidation b) Minority Interest in all subsidiaries: Foreign Subsidiaries:	(53,273.99) 373.41	(885.63) (107.13)	(296.32) 5.58	(1,181.95) (101.55)
Total	28,140.02	2,577.29	165.55	2,742.84

(i) Share of discontinued operations included above is as follows:

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	Proft or loss	Other Comprehensive Income	Total Comprehensive Income
Gain on sale of investments in entities manufacturing specialty products	139.41	-	139.41
Total	139.41	-	139.41

(ii) The amounts given here in respect of associates and joint ventures are the share of the Group in the profit or loss of the respective associates and joint ventures.

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Investment in associates Investment injoint ventures	5,273.53 82.02	5,745.77 93.17
Total	5,355.55	5,838.94

Associates

(a) Stelis Biopharma Private Limited

The Group has an associate in the name of Stelis Biopharma Limited (Stelis), incorporated in India as at March 31, 2022 holding effective 37.09% (March 31, 2021: 47.90%) of the equity stake and accounted for using the equity method.

The following table summarises the financial information of Stelis and the carrying amount of the Group’s interest

interest
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Percentage ownership interest Non-current assets Current assets Non-current liabilities Current liabilities	37.09% 19,312.59 5,110.97 (6,211.81) (8,087.31)	47.90% 11,590.88 987.19 (3,206.85) (1,611.02)
Net assets	10,124.44	7,760.20
Group share of net assets Carryingamount of interest in associate	3,755.15	3,717.14
	4,609.50	4,886.68
		HIn Million
Particulars	31-Mar-22	31-Mar-21
Percentage ownership interest Income Proft / (loss) for the year Other comprehensive income	37.09% 1,358.61 (2,311.95) 20.38	47.90% 223.95 (1,208.29) (9.61)
Total comprehensive income	(2,291.57)	(1,217.90)
Group share ofproft /(loss)	(857.50)	(578.77)

(b) Strides Consumer Business

The Group have investments in Strides Global Consumer Healthcare Limited, incorporated in UK, Strides Consumer LLC, incorporated in USA and Strides Consumer Private Limited, incorporated in India (together referred to as Strides Consumer Business) as at March 31, 2022 holding 53.64% (March 31, 2021: 53.64%) of the equity stake and accounted for using the equity method.

The following table summarises the financial information of Strides Consumer Business and the carrying amount

of the Group’s interest

==> picture [494 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Percentage ownership interest Non-current assets Current assets Non-current liabilities Current liabilities	53.64% 1,726.50 532.15 (233.16) (384.23)	53.64% 1,852.53 425.36 (34.49) (256.64)
Net assets	1,641.26	1,986.75
Group share of net assets Carryingamount of interest in associate	880.37	1,065.69
	664.03	859.09

Annual Report 2021-22 | 213

212 |

Strides Pharma Science Limited

Notes forming part of the consolidated financial statements for the year ended March 31, 2022

==> picture [495 x 14] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Percentage ownership interest Income Proft / (loss) for the year Other comprehensive income	53.64% 808.18 (431.17) -	53.64% 585.26 (633.07) 0.46
Total comprehensive income	(431.17)	(632.60)
Group share ofproft /(loss)	(231.28)	(339.58)

(c) The Group also has interests in a number of individually immaterial associates and joint ventures. The following table analyses, in aggregate, the carrying amount and share of profit and OCI for these associates and joint ventures.

==> picture [495 x 15] intentionally omitted <==

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

H In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Carrying amount of interests in associates and joint venture Share in proft Share in total comprehensive income	82.02 (19.34) (19.34)	93.17 (59.84) (59.84)

Note No. 55 In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The Group has adopted measures to curb the spread of infection in order to protect the health of its employees and ensure business continuity with minimal disruption. The Group has considered available internal and external information while finalizing various estimates in relation to its financial statements upto the date of approval of the financial statements by the Board of Directors. The actual impact of the global health pandemic may be different from that which has been estimated, as the COVID -19 situation evolves in India and globally. The Group will continue to closely monitor any material changes to future economic conditions. However, the pandemic did not have any material impact on the consolidated financial statements for the year ended March 31, 2022.

Note No. 56 During the year ended March 31, 2022, no material foreseeable loss (March 31, 2021: Nil) was incurred for any long-term contract. The Company has recognised a mark to market loss of H 73.28 Million (derivative liability) as of 31 March 2022 (2021: H 271.74 Million (derivative liability)) on its derivative instruments.

Note No. 57 The previous year’s figures have been re-grouped/ reclassified, where necessary to conform to

current year’s classification.

The accompanying notes are an integral part of the consolidated financial statements As per our report of even date attached

for B S R & Co. LLP

for and on behalf of Board of Directors of Strides Pharma Science Limited

Independent Auditors’ Report

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 obtained by us is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

To the Members of

Strides Pharma Science Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Strides Pharma Science Limited (the “Company”), which comprise the standalone balance sheet as at 31 March 1. 2022, and the standalone statement of profit and loss (including other comprehensive income), 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 a summary of significant accounting policies and other explanatory information.

Emphasis of matter

We draw attention to Note 8 of to the standalone financial statements which states that the ability of Stelis Biopharma Limited (‘the Associate’) to continue as a going concern is dependent on the mitigation factors detailed in the said note which could have a consequential impact on the carrying amount of investment of ` 5,308.55 million in the Associate as at 31 March 2022. Further, the auditors of the Associate have, without modifying their opinion, reported a Material Uncertainty Related to Going Concern vide their report dated 24 May 2022 on the financial information of the Associate for the year ended 31 March 2022. The component auditor’s opinion on the financial information of the associate is not modified in respect of the above matter.

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 2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Basis for Opinion

Key audit matters are those matters that, in our professional judgment, 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.

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

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta Partner

Membership Number 060573

Arun Kumar

Executive Chairperson and Managing Director DIN: 00084845

Badree Komandur

Executive Director - Finance & Group CFO DIN: 07803242

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number A30515

Annual Report 2021-22 | 215

214 |

Strides Pharma Science Limited

Impairment testing of investments in subsidiaries and associates:

Refer Significant Accounting Policies and note 8 to the Standalone Financial Statements

The key audit matter How the matter was addressed in our audit

In view of the significance of the matter, following audit procedures were applied, among others, to obtain sufficient audit evidence:

The carrying amount of investments in subsidiaries and associates (aggregates to ` 23,997.62 million) accounts for 44% of the total assets of the Company as at 31 March 2022.

Company’s assessment of impairment contains a number of parameters which involve significant judgements and estimates including revenue growth, cash flow forecasting, weighted average cost of capital and other recent financing transactions. Changes in these assumptions, including ongoing impact of COVID-19, if any, could lead to an impact over fair value of investment and accordingly impairment provision. The annual impairment testing was significant to our audit, because of the financial quantum of the assets as well as the involvement of critical judgements, estimates and assumptions.

• Tested the design of key internal financial controls and operating effectiveness of the relevant key controls around the impairment testing of the carrying value of investment in subsidiaries and associates.

• Performed a retrospective review to assess the reasonableness of Company’s projections by comparing historical forecast to actual results.

• Tested reasonability of projections used by the Company relating to the sales growth, operating costs, cashflow forecasts.

We also draw attention to Note 8 of the standalone financial statements which states that the ability of Stelis Biopharma Limited (‘the Associate’) to continue as a going concern is dependent on the mitigation factors detailed in the said note which could have a consequential impact on the carrying amount of investment of ` 5,308.55 million in the Associate as at 31 March 2022. Further, the auditors of the Associate have, without modifying their opinion, reported a Material Uncertainty Related to Going Concern vide their report dated 24 May 2022 on the financial information of the Associate for the year ended 31 March 2022.

• Engaged our valuation specialists to assist in testing the reasonableness of the valuation by evaluating the assumptions and methodologies used by the Company, in particular for weighted average cost of capital, terminal growth rate, etc.

• Tested recent financing transactions in these companies with third parties to determine the fair value of certain investments.

• Tested whether the Company’s analysis about the sensitivity on the outcome of impairment to possible changes in key assumptions reflect the risks inherent in the valuation, including ongoing impact of COVID-19 pandemic, if any .

Taxation

Refer Significant Accounting Policies and note 33 to the standalone financial statements

The key audit matter How the matter was addressed in our audit

In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:

The Company has investment in various subsidiaries and associates which operate across different tax jurisdictions. The Company is subjected to various domestic and foreign tax regulations with respect to taxability of income received in India including repatriation of any profits as dividends.

• We tested the design of internal financial controls and operating effectiveness of the relevant key controls in respect of taxation.;

Assessing the applicability of tax and accounting of such repatriation may involve complexities with respect to various tax positions on availability of tax incentives / exemptions resulting in possible tax litigations/assessments.

• We analyzed relevant correspondences with the tax authorities; and

Judgment is required in assessing the availability of tax incentives / exemptions. These judgments could change over time as each of the matter progresses with the relevant tax authorities and accordingly may impact the accounting treatment followed by the Company.

• We used our subject matter experts to evaluate the Company’s judgment regarding their assessment of availability of tax incentives / exemptions and the accounting treatment done.

Given the complexities and judgement involved in assessing the availability of tax incentives / exemptions and its impact on accounting, we assessed this to be an area of focus for our audit.

• We also considered external legal opinions and consultations made by the Company for key uncertain tax positions during current and past period.

Going Concern assessment

Refer Significant Accounting Policies to the standalone financial statements

The key audit matter As at 31 March 2022, the Company had net current assets position. However the group on a consolidated basis had net current liabilities (excess of current liabilities over current assets) of 498.44 million and the Company has a negative operating cash flows amounting to 2,826.85 million for the year ended March 31, 2022.

How the matter was addressed in our audit

Our audit procedures to assess the going concern assumption and whether a material uncertainty exists related to events or conditions that may cast a significant doubt on the Company’s ability to continue as a going concern included the following audit procedures to obtain sufficient appropriate audit evidence:

• Gaining an understanding and assessing the design, implementation and operating effectiveness of Group’s key internal controls over preparation of cash flow forecasts to assess its liquidity;

Note 2 to the standalone financial statements explains that Management has concluded that the going concern basis is appropriate in preparing the standalone financial statements of the Company. The Company evaluated its ability to continue as a going concern based upon an assessment of the Group’s cash position, assessment of the exposure with respect to the financial guarantees provided by the Company to an associate company, future cash flow forecasts, its debt repayment obligations and other commitments and its availability of financing facilities, after considering material breaches of its existing debt covenants and the related subsequent temporary relaxations obtained from the lenders for compliance with such debt covenants. This required the exercise of significant judgement, particularly in forecasting the Group’s future revenues, profitability and cash flows.

• Comparing the forecasted statement of profit and loss and cash flows with the Group’s business plan approved by the board of directors.

• Evaluating the key assumptions in the cash flow forecasts with reference to historical information, current performance, future plans, and market and other external available information;

• Performing sensitivity analysis on the forecasted statement of profit and loss and cash flows by considering plausible changes to the key assumptions adopted by the Company

Based on their assessment, the Company concluded that there are no material uncertainties related to events or conditions which, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern.

• Performing a retrospective review to assess the reasonableness of Group’s past projections by comparing historical forecasts to actual results;

Considering the significance of the area to the overall financial statements this was significant for our audit.

• Assessing the availability of banking and other financing facilities by inspecting underlying documentation;

• Discussion with the parent and component Management with respect to the going concern assessment of the associate and confirming the same with the Associate’s report on the financial information received from the auditor of the Associate;

• Evaluating management’s judgment of invocation of guarantees provided to the lenders of the Associate;

• Assessing the impact of any existing covenants and the related waivers and other restrictive terms therein which may impact Group’s ability to raise further debts.

• Assessing the adequacy of the disclosures related to application of the going concern assumption.

Annual Report 2021-22 | 217

216 |

Strides Pharma Science Limited

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

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

Our opinion on the standalone financial statements does not cover the other information and we do 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 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.

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

When we read the other sections of the Annual Report (other than those mentioned above), if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the applicable 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/ loss and other comprehensive income, 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[2 ] 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 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.

• (A) As required by Section 143(3) of the Act, we report that:

• a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

• 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.

• c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), 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 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.

• f) 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 Auditor’s) 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 2022 on its financial position in its standalone financial statements - Refer Note 41 to the standalone financial statements.

• b) The Company did not have any long-term contracts including derivative contracts

Annual Report 2021-22 | 219

218 |

Strides Pharma Science Limited

for which there were any material foreseeable losses.

• 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, as disclosed in Note 50 of 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 persons or entities, 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 (“Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

• (ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in Note 50 of the standalone financial statements, no funds have been received by the Company from any persons or entities, 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 (“Ultimate Beneficiaries”) by or on behalf of the Funding Party; or

  • provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

  • (iii) Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material mis-statement.

• e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

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

We refer to Note 10 of the standalone financial statements which more fully explains the decision of the Board of Directors to recover the excess remuneration paid to the Company’s erstwhile Managing Director and Chief Executive Officer and corresponding recoverable of ` 141.90 million recorded as at 31 March 2022. In our opinion and according to the information and explanations given to us, having regard to the said note, 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 Sampad Guha Thakurta Partner Place: Bengaluru Membership Number: 060573 Date: 24 May 2022 UDIN: 22060573AJMRCL4596

Annexure A to the Independent Auditor’s Report on Standalone Financial Statements

The Annexure referred to in Independent Auditor’s Report to the members of the Company on the standalone financial statements of Strides Pharma Science Limited for the year ended 31 March 2022. We report that:

• (i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

  • (B) The Company has maintained proper records showing full particulars of intangible assets.

• (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, 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.

• (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 (other than immovable p r o p e r t i e s where the Company is the lessee and the leases agreements are duly executed in favour of the lessee) 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

==> picture [455 x 15] intentionally omitted <==

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

` in million
----- End of picture text -----

Particulars	Description of item of property	Gross carrying value	Title deeds held in the name of:	Whether title deed holder is a promoter director of relative/ director or employee of promoter/director	Property held since when date	Reason for not being held in the name of the company
Property, plant and equipment Property, plant and equipment Property, plant and equipment Property, plant and equipment Property, plant and equipment Investment property	Building Building Freehold Land Freehold Land Freehold Land Freehold Land	3.55 428.42 0.81 11.76 48.69 22.20	Arun Kumar Shasun Pharmaceuticals Ltd. Grandix Pharmaceauticals Limited Shasun Chemicals and Drugs Ltd. Shasun Pharmaceuticals Ltd. Shasun Chemicals and Drugs Ltd.	Yes No No No No No	5/9/1995 11/19/2015 12/31/2009 4/1/2016 11/19/2015 4/1/2016	Note-1 Note-2

Note-1 - The apartment is inside a housing cooperative society. The Company has made an application for transferring it to its name which is pending with the society.

Note -2 - These properties are in the name of the erstwhile Companies which were merged with the Company under section 391 to 394 of the Companies Act 1956 in terms of the approval of the Honourable High Courts of judicature. The Company is in the process of transferring the title deeds of such properties in its name.

Annual Report 2021-22 | 221

220 |

Strides Pharma Science Limited

• 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.

• (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.

  • (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.

• (e) According to 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.

• (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 made investments, provided guarantee or security, granted loans and advances in the nature of loans, secured or unsecured to companies, limited liability partnership and 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 or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity as below

==> picture [455 x 15] intentionally omitted <==

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

` in million
----- End of picture text -----

Particulars	Guarantees	Security	Loans	Advances in nature of loans
Aggregate amount granted/ provided during the year - Subsidiaries - Joint Ventures - Associates - Others Balance outstanding as at balance sheet date in respect of above cases - Subsidiaries - Joint Ventures - Associates - Others	5,244.03 2,144.03 - 3,100.00 - 20,981.47 11,561.64 - 9,419.83 -	- - - - - - - - - -	513.88 463.88 - - 50.00 1,289.11 1,216.09 - 30.00 43.02	- - - - - - - - - -

• (b) According to the information and (iv) According to the information and explanations explanations given to us and based on the given to us and on the basis of our examination of audit procedures conducted by us, in our records of the Company, in respect of investments opinion the investments made, guarantees made and loans, guarantees and security given provided, security given during the year by the Company, in our opinion the provisions of and the terms and conditions of the grant Section 185 and 186 of the Companies Act, 2013 of loans and advances in the nature of loans (“the Act”) have been complied with. and guarantees provided during the year are, prima facie, not prejudicial to the interest of (v) The Company has not accepted any deposits or the Company. amounts which are deemed to be deposits from

• (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.

• (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.

• (vi) We have broadly reviewed the books of accounts 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/ or services provided by it) 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.

• (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 any advances in the nature of loans to any party during the year.

• (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.

• (e) 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 following instances of loans/advance in the nature of loan falling due during the year were renewed or extended or settled by fresh loans:

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 (‘GST’), Provident fund, Employees’ State Insurance, Income-Tax, Duty of Customs, Cess and other statutory dues have generally been regularly deposited with the appropriate authorities. Also refer note 41 to the standalone financial statements.

==> picture [202 x 16] intentionally omitted <==

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

` in million
----- End of picture text -----

Name of the parties	Aggregate amount dues renewed or extended or settled by fresh loans	Percentage of the aggregate to the total loans or advances in the nature of loans granted during theyear
Vivimed Lifesciences Private Limited (subsidiary)	801	156%

• (b) 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 Services Tax (‘GST’), Provident fund, Employees’ State Insurance, Income- Tax, Duty of Customs, Cess and other statutory dues were in arrears as at 31 March 2022 for a period of more than six months from the date they became payable.

• (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.

Annual Report 2021-22 | 223

222 |

Strides Pharma Science Limited

According to the information and explanations given to us and on the basis of our examination of the records of the Company, statutory dues relating to Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues which have not been deposited on account of any dispute are as follows:

Name of the statute	Nature of the dues	Amount (`In million)	Period to which the amount relates	Forum where dispute is pending
The Income Tax Act,1961 The Income Tax Act,1961 The Income Tax Act,1961 Central Excise Act,1944 Central Excise Act,1944 Central Excise Act,1944 Central Excise Act,1944	Income tax Income tax Income tax Central Excise Central Excise Central Excise Central Excise	190.42 (net of tax paid under protest of 223.14) 262.20 (net of tax paid under protest of 307.56) 18.18 14.04 5.20 481.20 (net of tax paid under protest of 24.51) 63.06	AY 2008-09 AY 2009-10 AY 2018-19 Various dates Various dates Various dates Various dates	Income Tax Appellate Tribunal Income Tax Appellate Tribunal Commissioner Income tax (Appeals) Customs, Excise and Service tax Appellate Tribunal Commissioner of Central Excise Customs, Excise and Service tax Appellate Tribunal Commissioner of Central Tax

• (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.

  • (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.

• (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.

• (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 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.

• (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.

• (xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

• (c) In our opinion and according to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

• (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 long-term purposes by the Company.

• (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.

• (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 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.

• (c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.

• (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) The Company is not part of any group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016 as amended). Accordingly, the requirements of clause 3(xvi)(d) are not applicable

• (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) We draw attention to Note 2 to the standalone financial statements explains that Management has concluded that the going concern basis is appropriate in preparing the standalone financial statements of the Company. The Company evaluated its ability to continue as a going concern based upon an assessment of the Group’s cash position, assessment of the exposure with respect to the financial guarantees provided by the Company to an associate company, future cash flow forecasts, its debt repayment obligations and other commitments and its availability of financing facilities, after considering material breaches of its existing debt covenants and the related subsequent temporary relaxations obtained from the lenders for compliance with such debt covenants. This required the exercise of significant judgement, particularly in forecasting the Group’s future revenues, profitability and cash flows.

• On the basis of the above and according to the information and explanations given to us, on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information 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 within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

• (xx) 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. Accordingly, clause 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

for B S R & Co. LLP Chartered Accountants Firm's Registration No.: 101248W/W-100022

Sampad Guha Thakurta

Partner Place: Bengaluru Membership Number: 060573 Date: 24 May 2022 UDIN: 22060573AJMRCL4596

Annual Report 2021-22 | 225

224 |

Strides Pharma Science Limited

Annexure B to the Independent Auditor’s report on the standalone financial statements of Strides Pharma Science Limited (“the Company”) for the year ended 31 March 2022.

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 Companies Act, 2013

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 whether such controls operated effectively in all material respects.

(Referred to in paragraph 2(A)(f) 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 Strides Pharma Science Limited (“the Company”) as of 31 March 2022 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

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 such internal financial controls, 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.

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 2022, 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 Responsibility for Internal Financial Controls

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.

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 Companies Act, 2013 (hereinafter referred to as “the Act”).

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the Standalone financial statements.

not be detected. Also, projections of any evaluation of the internal financial controls with reference to Standalone financial statements to future periods are subject to the risk that the internal financial controls with reference to Standalone 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 Inherent Limitations of Internal Financial Firm's Registration No.: 101248W/W-100022 controls with Reference to Financial Statements Sampad Guha Thakurta Because of the inherent limitations of internal financial controls with reference to financial Partner statements, including the possibility of collusion or Place: Bengaluru Membership Number: 060573 improper management override of controls, material Date: 24 May 2022 UDIN: 22060573AJMRCL4596 misstatements due to error or fraud may occur and

Annual Report 2021-22 | 227

226 |

Strides Pharma Science Limited

STANDALONE B ALANCE SHEET as at March 31, 2022

==> picture [496 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

	Note	31-Mar-22	31-Mar-21
A ASSETS I Non-current assets (a) Property, plant and equipment (b) Capital work-in-progress (c) Right-of-use assets (d) Investment property (e) Other intangible assets (f) Intangible assets under development (g) Financial assets (i) Investments (ii) Loans receivable (iii) Other fnancial assets (h) Deferred tax assets (net) (i) Income-tax assets (net) (j) Other non-current assets Total non-current assets II Current assets (a) Inventories (b) Financial assets (i) Trade receivables (ii) Cash and cash equivalents (iii) Other balances with banks (iv) Loans receivable (v) Other fnancial assets (d) Other current assets Total current assets	4(i) 4(ii) 5(i) 6 7(i) 7(ii) 8 9(i) 10(i) 11 12 13(i) 14 15 16 17 9(ii) 10(ii) 13(ii)	5,343.60 304.51 335.92 128.16 361.40 252.64 23,997.62 1,246.09 199.30 775.80 1,571.99 69.09	5,051.35 813.60 309.58 678.35 405.66 293.09 23,946.49 852.21 217.36 752.11 1,275.17 179.79
		34,586.12 5,130.63 12,963.19 121.24 23.22 43.02 630.56 840.60	34,774.76 6,890.80 8,216.65 253.03 477.39 35.66 364.77 1,200.27
		19,752.46	17,438.57
TOTAL ASSETS		54,338.58	52,213.33
B EQUITY AND LIABILITIES I Equity (a) Equity share capital (b)Other equity	18 19	897.90 33,168.93	896.81 31,583.77
Total equity		34,066.83	32,480.58
II Liabilities 1 Non-current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Other fnancial liabilities (b) Provisions (c) Non-current tax liabilities (d)Other non-current liabilities	20(i) 5(ii) 21(i) 22(i) 25(i) 23(i)	1,246.95 269.79 6.58 334.68 - 0.51	1,475.39 238.58 39.59 280.82 1,790.91 1.08
Total non-current liabilities		1,858.51	3,826.37
2 Current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables - Total outstanding dues of micro enterprises and small enterprises - Total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other fnancial liabilities (b) Provisions (c) Current tax liabilities (net) (d) Other current liabilities Total current liabilities Total liabilities	20(ii) 5(ii) 24 21(ii) 22(ii) 25(ii) 23(ii)	11,199.37 123.08 331.32 6,106.65 326.44 204.53 - 121.85	7,313.99 146.63 318.12 7,033.89 605.47 226.71 31.53 230.04
		18,413.24	15,906.38
		20,271.75	19,732.75
TOTAL EQUITY AND LIABILITIES		54,338.58	52,213.33

The accompanying notes are an integral part of the standalone financial statements As per our report of even date attached

for and on behalf of Board of Directors of Strides Pharma Science Limited

for B S R & Co. LLP

Chartered Accountants

Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta Partner Membership Number: 060573

Badree Komandur

Mr. Arun Kumar

Executive Chairperson and Managing Director DIN : 00084845

Executive Director- Finance & Group CFO DIN: 07803242

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number: A30515

STANDALONE STATEMENT OF PROFIT AND LOSS for the year ended March 31, 2022

` In Million

			`In Million
	Note	31-Mar-22	31-Mar-21
Income 1 Revenue from operations 2 Other income	26 27	19,790.03 1,234.85	18,575.66 889.96
3 Total income(1+2)		21,024.88	19,465.62
4 Expenses (a) Cost of materials consumed (b) Purchase of stock-in-trade (c) Changes in inventories of fnished goods, work-in-progress and stock- in-trade (d) Employee benefts expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses (h)Foreign exchange(gain)/loss- net	28 29 30 31 32	9,354.24 518.32 1,142.56 2,720.91 742.41 1,043.66 5,263.18 24.52	10,500.98 563.07 (1,175.34) 2,727.24 653.39 993.42 4,367.40 (280.89)
Total expenses		20,809.80	18,349.27
5 Proft/(Loss) before exceptional items and tax (3-4) 6 Exceptional items loss (net) 7 Proft/(Loss) before tax (5+6) 8 Tax expense (a) Current tax (b)Deferred tax(beneft)/ expense	33	215.08 -	1,116.35 -
		215.08	1,116.35
		(1,584.71) (2.09)	210.18 123.77
Total tax(beneft)/expense		(1,586.80)	333.95
9 Proft/(Loss) for the year (7-8) 10 Other comprehensive income A) (i) Items that will not be reclassifed to proft or loss (ii) Income tax relating to items that will not be reclassifed to proft or loss B) (i) Items that may be reclassifed to proft or loss (ii) Income tax relating to items that may be reclassifed to proft or loss	36 36 36 36	1,801.88	782.40
		(2.51) 0.88 (59.30) 20.72	(23.35) 8.16 391.10 (136.66)
Total other comprehensive income for theyear, net of tax		(40.21)	239.25
11 Total comprehensive income for the year (9+10) 12 Earnings per equity share (of`10/- each) - Basic - Diluted	46 46	1,761.67	1,021.65
		20.08 20.07	8.73 8.72

The accompanying notes are an integral part of the standalone financial statements As per our report of even date attached

for and on behalf of Board of Directors of Strides Pharma Science Limited

for B S R & Co. LLP

Chartered Accountants

Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta

Badree Komandur

Mr. Arun Kumar

Executive Chairperson and Managing Director Executive Director- Finance & Group CFO DIN : 00084845 DIN: 07803242

Partner

Membership Number: 060573

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number: A30515

Annual Report 2021-22 | 229

228 |

Strides Pharma Science Limited

STANDALONE STATEMENT OF CHANGES IN EQUITY for the years ended march 31, 2022 and March 31, 2021

==> picture [446 x 647] intentionally omitted <==

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

In MillionAmount 895.65 1.16 896.81 1.09 897.90 In Million 30,692.21 782.40 239.25 1,021.65 (179.14) 33.84 15.21 - 31,583.77
(124.19) - (15.19) (15.19) - - - - (139.38)
- - - - -
Items of other (212.44) 254.44 254.44 42.00
comprehensive income
5,228.04 782.40 - 782.40 (179.14) - - - 5,831.30
3,875.79 - - - - - - 5.41 3,881.20
57.24 - - - - (19.84) 15.21 (5.41) 47.20
601.61 - - - - - - - 601.61
- - - - - - -
Reserves and surplus
3,846.38 3,846.38
- - - - - -
account
53.68
Securities premium
17,218.99 17,272.67
200.79 - - - - - - - 200.79
- - - - - - - - -
42(a)
Particulars Balance as at April 1, 2020 Changes in equity share capital during the year - Shares issued pursuant to exercise of stock options (refer note 42(a)) Balance as at March 31, 2021 Changes in equity share capital during the year - Shares issued pursuant to exercise of stock options (refer note 42(a)) Balance as at March 31, 2022 B) Other equity Particulars Balance as at March 31, 2020 Profit for the year Other comprehensive income for the year (net of tax) Total comprehensive income Dividend (including tax on dividend) Issue of shares on exercise of stock options Employee stock compensation expenses (including expenses cross charged to subsidiaries) Transferred to general reserve on stock options lapse Balance as at March 31, 2021
Total
(assets)
defined benefit liabilities /
Re -measurement of the
flow hedge
Effective portion of cash
Retained earnings
General reserve
account
Share options outstanding
Capital redemption reserve
Restructure (BRR)
Reserve for Business
Securities premium
Capital reserve
allotment
money pending
Share application
Note reference
----- End of picture text -----

STANDALONE STATEMENT OF CHANGES IN EQUITY for the years ended march 31, 2022 and March 31, 2021

`In Million		Items of other	Reserves and surplus comprehensive income	Particulars Note reference Share application money pending allotment Total Capital reserve Securities premium account Capital redemption reserve Share options outstanding account General reserve Retained earnings Effective portion of cash fow hedge Re -measurement of the defned beneft liabilities / (assets) Securities premium Reserve for Business Restructure (BRR)	Proft for the year - - - - - - - 1,801.88 - - 1,801.88	Other comprehensive income for - - - - - - - - (38.58) (1.63) (40.21)	the year (net of tax)	Total comprehensive income - - - - - - - 1,801.88 (38.58) (1.63) 1,761.67	Dividend - - - - - - - (224.31) - - (224.31)	Issue of shares on exercise of - - 49.21 - - (18.18) - - - - 31.03	stock options	Employee stock compensation 42(a) - - - - - 12.71 - - - - 12.71	expenses (including expenses	cross charged to subsidiaries)	Share application money received 4.06 - - - - - - - - - 4.06	on exercise of options	Transferred to general reserve on - - - - - (21.27) 21.27 - - - -	stock options lapse	Balance as at March 31, 2022 4.06 200.79 17,321.88 3,846.38 601.61 20.46 3,902.47 7,408.87 3.42 (141.01) 33,168.93	The accompanying notes are an integral part of the standalone fnancial statements	As per our report of even date attached	forB S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited	Chartered Accountants	Firm Registration Number: 101248W/ W-100022	Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur	Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO	Membership Number: 060573 DIN : 00084845 DIN: 07803242	Manjula R.	Bengaluru, May 24, 2022 Company Secretary	Membership Number: A30515

Annual Report 2021-22 | 231

230 |

Strides Pharma Science Limited

STATEMENT OF CASH FLOW FOR the year ended March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

			`In Million
		31-Mar-22	31-Mar-21
A. Cash fow from operating activities Proft before tax Adjustments for: - Depreciation and amortisation expense - Gain on sale/write off of property, plant and equipment, investment property and other intangible assets (net) - Gain on sale of non-current investment - Share based compensation expense - Interest expense - Interest income - Dividend income - Income from current investment - Rental income from investment property - Bad debts written off / provision for doubtful trade receivables - Other receivables written off - Gain on account of lease modifcations - Net unrealised exchange gain Operating proft before working capital changes Changes in working capital: Increase in trade and other receivables Decrease / (Increase) in inventories (Decrease) / Increase in trade and other payables Net change in working capital Cash (utilised in)/ generated from operations Income taxes refund, net		215.08 1,043.66 (107.63) - (8.90) 742.42 (887.49) - (2.84) (59.79) 38.35 15.85 (18.73) (3.21)	1,116.35 993.42 (31.04) (8.84) 64.92 653.39 (126.05) (353.70) (0.31) (113.03) 192.77 - - (130.07)
		966.77 (4,651.21) 1,760.17 (1,116.64)	2,257.81 (1,733.10) (2,262.61) 2,897.62
		(4,007.68) (3,040.91) 214.06	(1,098.09) 1,159.72 1,667.90
Net cash fow(utilised in) /generated from operating activities	A	(2,826.85)	2,827.62
B. Cash fow from investing activities Capital expenditure for property, plant and equipment and intangible assets, including capital advance Proceeds from sale of property, plant and equipment and intangible assets Proceeds from sale of investment property Investments in mutual funds Proceeds from sale of investment in mutual funds Investments in subsidiary and associate Proceeds from sale of non-current investments Loan given Loan recovered Interest received (net of taxes) Dividends received (net of taxes) Rental income from investment property Net Security deposits paid Proceeds/(Investment) in fxed deposits with maturity of more than 3 months, net		(681.70) 4.99 630.00 (540.61) 540.61 (51.13) - (463.88) 70.00 63.71 127.46 61.41 (5.96) 432.86	(887.40) 14.85 - (150.00) 150.00 (2,369.95) 162.80 (451.46) 355.06 169.64 229.39 121.29 (8.80) (91.83)
Net cash fowgenerated from /(utilised in) investing activities	B	187.76	(2,756.41)

STATEMENT OF CASH FLOW FOR the year ended March 31, 2022

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

			`In Million
		31-Mar-22	31-Mar-21
C. Cash fow from fnancing activities Proceeds from issue of equity shares Proceeds from long-term borrowings Repayment of long-term borrowings Proceeds/(Repayment) from short-term borrowings (net) Dividends paid (net of taxes on dividend) Lease payments Interestpaid on borrowings		36.18 295.36 (399.72) 3,644.60 (224.31) (150.40) (694.41)	35.00 1,926.45 (77.57) (1,406.02) (179.15) (144.34) (640.75)
Net cashgenerated from /(utilised in) fnancing activities	C	2,507.30	(486.38)
Net decrease in cash and cash equivalents during theyear	(A+B+C)	(131.79)	(415.17)
Cash and cash equivalents at the beginningof theyear		253.03	668.20
Cash and cash equivalents at the end of theyear*		121.24	253.03
*** Comprises: Cash on hand Balance with banks:** - In current accounts - Funds-in-transit		1.62 35.50 84.12	2.18 69.85 181.00
Total		121.24	253.03

The accompanying notes are an integral part of the standalone financial statements As per our report of even date attached

for and on behalf of Board of Directors of Strides Pharma Science Limited

for B S R & Co. LLP

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta

Badree Komandur

Mr. Arun Kumar

Executive Chairperson and Managing Director Executive Director- Finance & Group CFO DIN : 00084845 DIN: 07803242

Partner

Membership Number: 060573

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number: A30515

Annual Report 2021-22 | 233

232 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

equity infusion in the year ending 31 March 2023 and the steps undertaken by management as noted above, management believes that the Company will be able to continue to generate sufficient cash in the foreseeable future to meet its obligations as they fall due."

Note No. 1 General information

Strides Pharma Science Limited (`Strides’) is a pharmaceutical company domiciled in India, with its registered office situated at 201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400703 and corporate office in Bengaluru, India. Strides has been incorporated under the provisions of Indian Companies Act and its equity shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. Strides develops and manufactures a wide range of IP-led niche pharmaceutical products.

2.1 Statement of compliance

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

Note No. 2 Basis of preparation of financial statements

The standalone financial statements were approved by the Board of Directors and authorised for issue on May 24, 2022"

The Company has negative operating cash flows amounting to 2,826.85 million for the year ended 31 March 2022 on account of continuing pricing pressure in some of its key geographies consequent to effects of COVID. Management of the Company has obtained relaxations for compliance with financial covenants for year ended March 31, 2022, from the lenders as these have not been met as of the date of the issue of financial statements. Further, as of March 31, 2022, the Company has provided guarantees aggregating to 9,419.83 million in relation to the borrowings of one of its associates (‘ the Associate’) , out of which ` 6,016 million outstanding as on 31 March 2022, for which there is a material uncertainty to continue as a going concern. The Associate has requested for temporary relaxations for compliance with these financial covenants from the lenders as these have not been met as of the date of these financial statements. Also refer note 8 of these financial statements.

2.2 Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (`), which is also the Company's functional currency. All amounts have been roundedoff to two decimal places to the nearest million, unless otherwise indicated.

2.3 Basis of measurement

These standalone financial statements have been prepared on the historical cost basis, except for the following items:

• Certain financial assets and liabilities (including derivative instruments) are measured at fair value;

• Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations; and

Further, to mitigate the situation, the Company has raised long- term and other financing facilities amounting to 500 million post year ended 31 March 2022 and has issued equity warrants to the entity which is part of the Promoter group that is expected to provide additional equity of 884 million by 31 March 2023. The Company has cash and cash equivalents of H 121.24 million as at 31 March 2022 and also undrawn borrowing facilities available from certain lenders. Further, the Group also expects to improve operating profits from the newly acquired business in the US and from cost reductions consequent to capacity optimization at some of its manufacturing locations from April 2022 and by monitoring of freight and other expenses.

• Equity settled and cash settled share based payments that are measured at fair value."

2.4 Use of estimates and judgements

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

Accordingly, based on the fact that the Company had generated positive operating cash flows in the previous year and expects to generate positive operating cash flows in future periods, temporary relaxations from lenders for compliance with financial covenants related to borrowings, its ability to raise new financing facilities, full utilisation of existing facilities, expected

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

made and, if material, their effects are disclosed in the notes to the standalone financial statements.

2.6 Cash flow statement

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities), investing and financing activities of the Company are segregated.

2.4.1 Judgements

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

• Note 2.2 — Assessment of functional currency;

• Note 3.2 — Revenue recognition: whether revenue from sale of product and services is recognised overtime or at a point of time:

2.7 Measurement of fair value

• A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

• Note 3.15 and 47 — Financial instruments;

• Note 3.9, 3.10 and 3.11— Useful lives of property, plant and equipment, investment property and intangible assets;

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

• Note 3.12.3 — Impairment of non financial assets:

• Note 43 — Measurement of defined benefit obligation; key actuarial assumptions;

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Note 42 — Share based payments;

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Note 3.8, 11, 33 and 41 (b) — Provision for income taxes and related tax contingencies and evaluation of recoverability of deferred tax assets.

2.4.2 Assumption and estimation uncertainty

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

• Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending March 31, 2022 is included in the following notes.

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

• Note 3.12.3 — Impairment testing of non-financial assets;

• Note 3.12.1 and 47 — Impairment testing of financial assets; and

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

• Note 3.14, 33 and 41 (b) — Provisions and contingent liabilities.

2.5 Operating cycle

As mentioned in para 1 above under ‘Corporate information’, the Company is into development and manufacture of pharmaceutical products. Based on the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 3 years to 5 years and 12 months relating to research and development activities and manufacturing of pharmaceutical products respectively. The above basis is used for classifying the assets and liabilities into current and non-current as the case may be.

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

Annual Report 2021-22 | 235

234 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

The pooling of interest method is considered to involve the following:

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

(i) The assets and liabilities of the combining entities are reflected at their carrying amounts.

• Note 42 – Share based payment arrangements;

• Note 6 – Investment property and

• (ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies.

• Note 47 – Financial instruments

Note No. 3 Significant accounting policies

3.1 Business combinations

(iii) The financial information in the financial statements in respect of prior periods should be restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. In this financial statement, the effect of transactions, when the entities are under common control, prior to the appointed date has been adjusted in the 'other equity'.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange of control of the acquiree. Acquisition-related costs are generally recognised in statement of profit and loss as incurred.

The identity of the reserves in the transferor companies has been maintained in the transferee company.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that:

The difference, if any, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor shall be transferred to capital reserve and should be presented separately from other capital reserves with disclosure of its nature and purpose in the notes.

• deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Taxes and Ind AS 19 Employee Benefits respectively;

• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payment at the acquisition date (see note 3.7.3); and

3.2 Revenue from contracts with customers

The Company recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to recognise revenue as below:

• assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Step 1: Identify the contract(s) with a customer

• 3.1.1 Business combination under common control The company has followed the guidance given under Appendix C of Ind AS 103 (Business combination of entities under common control), while preparing these standalone financial statements.

• Step 2: Identify the performance obligation in contract

Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation"

Business combination involving common control is accounted by using pooling of interest method.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

In measuring the amount of profit share revenue to be recognised for each period, the Company uses all available information and evidence, including any confirmations from the business partner of the profit share amount owed to the Company, to the extent made available before the date the Company’s Board of Directors authorises the issuance of its financial statements for the applicable period.

3.2.1 Sale of goods

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

Sale to distributors

The Company appoints distributors in various territories who purchases the goods from the Company and thereafter sells them in the territory. In case the distributor is acting as an agent, the Company defers revenue recognition till the time goods are sold by the distributor to the end customer. On the other hand, if the distributor is principal, revenue is recognised upon the transfer of control over the goods to the distributor."

Right to reject or return goods

The Company also sells its products to the customers with a right to return the goods within the specified period of time. If the probability of acceptance by the customer is uncertain, recognition of revenue is deferred till the expiry of right to return or acceptance by the customer whichever is earlier.

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

Price variations / Incentives

Incentives are accounted based on the assessment of whether the beneficiary (of the incentive) is acting as a principal or an agent. Where the beneficiary is a principal, the incentive is regarded as consideration paid to the customer and is reduced from revenue.

Profit share revenues

The Company from time to time enters into marketing arrangements with certain business partners for the sale of its products in certain markets. Under such arrangements, the Company sells its products to the business partners at a base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the business partner’s ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Such arrangements typically require the business partner to provide confirmation of units sold and net sales or net profit computations for the products covered under the arrangement.

However, where the beneficiary is an agent, the incentive payment is recognised as an expense as the same is in the nature of commission.

Chargebacks / Reptos claims by the wholesalers / distributors and Price Protections

Chargebacks and reptos claims are estimated on the basis of the average trend of the past periods and recognised as reduction to revenue.

3.2.2 Sale of services

Revenue from services rendered, which primarily relate to contract research, is recognised in the statement of profit and loss as the underlying services are performed. Upfront payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.

Revenue in an amount equal to the base purchase price is recognised in these transactions upon delivery of products to the business partners. An additional amount representing the profit share component is recognised as revenue in the period which corresponds to the ultimate sales of the products made by business partners only when the collectability of the profit share becomes probable and a reliable measurement of the profit share is available. Otherwise, recognition is deferred to a subsequent period pending satisfaction of such collectability and measurability requirements.

3.2.3 Royalty, sale of licenses and Intellectual property rights

The Company enters into certain dossier sales, royalties, licensing and supply arrangements with various parties. Income from licensing arrangements

Annual Report 2021-22 | 237

236 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

is generally recognised over the term of the contract. Some of these arrangements include certain performance obligations by the Company. Revenue from such arrangements is recognised in the period in which the Company completes all its performance obligations.

3.2.4 Export incentives

Export incentives are accrued for based on fulfilment of eligibility criteria for availing the incentives and when there is no uncertainty in receiving the same. These incentives include estimated realisable values/ benefits from special import licenses and benefits under specified schemes as applicable.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-ofuse asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-ofuse asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

3.2.5 Rental income

The Company's policy for recognition of revenue from operating leases is described in note 3.3.2 below.

3.2.6 Dividend and interest income

Dividend income from investments is recognised when the shareholder's right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

3.3 Leases

Lease payments included in the measurement of the lease liability comprise the following:

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.

• fixed payments, including in-substance fixed payments;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• amounts expected to be payable under a residual value guarantee; and

3.3.1 The Company as lessee

At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

• the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

3.4 Foreign currencies transactions and translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-ofuse assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated. Income and expense items in foreign currency are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used.

The Company’s significant leasing arrangements are mainly in respect of factory land and buildings, residential and office premises.

3.3.2 The Company as lessor

At inception or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices.

3.5 Borrowing costs

Borrowing costs include:

(i) interest expense calculated using the effective interest rate method,

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease."

• (ii) finance charges in respect of finance leases, and

• (iii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

The Company recognises lease payments received under operating leases as income on a straightline basis over the lease term.

Annual Report 2021-22 | 239

238 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

3.6 Employee benefits

3.7 Share-based payment arrangements

3.6.1 Short-term employee benefits

3.7.1 Share-based payment transactions of the

All employee benefits falling due wholly within twelve months of rendering the services are classified as short-term employee benefits, which include benefits like salaries, wages, short-term compensated absences and performance incentives and are recognised as expenses in the period in which the employee renders the related service.

Company

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company's estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

3.6.2 Post-employment benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost is recognised in statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

3.7.2 Cash settled share-based payment transactions of the Company

The fair value of the amount payable to employees in respect of cash settled share based payments is recognised as an expense with the corresponding increase in liabilities, over the period during which the employees becoming unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the underlying options. Any changes in the liability are recognised in the statement of profit or loss.

The retirement benefit obligation recognised in the standalone balance sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

3.7.3 Share-based payment transactions of the acquiree in a business combination

When the share-based payment awards held by the employees of an acquiree (acquiree awards) are replaced by the Company's share-based payment awards (replacement awards), both the acquiree awards and the replacement awards are measured in accordance with Ind AS 102 ("market-based measure") at the acquisition date. The portion of the replacement awards that is included in measuring the consideration transferred in a business combination equals the market-based measure of the acquiree awards multiplied by the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the acquiree award. The excess of the market-based measure of the replacement awards over the market-based measure of the acquiree awards included in measuring the consideration transferred is recognised as remuneration cost for post-combination service.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

3.6.3 Compensated absences

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

However, when the acquiree awards expire as a consequence of a business combination and the Company replaces those awards when it does not have an obligation to do so, the replacement awards are

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set-off against future tax liability. Accordingly, MAT is recognised as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

measured at their market-based measure in accordance with Ind AS 102. All of the market-based measure of the replacement awards is recognised as remuneration cost for post-combination service.

3.8 Taxation

Income tax expense represents the sum of current tax and deferred tax.

Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

3.8.1 Current tax

Current tax is calculated based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the standalone statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

3.9 Property, plant and equipment

3.8.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Property, plant and equipment held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Depreciation on property, plant and equipment has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed to be different and are as under based on technical advice, 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.:

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Dies and punches : 4 years

Mobile phones : 3 years

Certain factory buildings : 18 years

Freehold land is not depreciated.

Annual Report 2021-22 | 241

240 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Asset held under finance leases are depreciated as per Ind AS 116.

as difference between the carrying amount of the investment properties and the net disposal proceeds and are recognised in profit or loss in the period in which it is disposed.

Individual assets costing less than ` 5,000 are depreciated in full in the year of purchase.

3.11 Intangible assets

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

3.11.1 Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses, if any. Intangible assets with indefinite useful lives are not amortized and tested for impairment annually.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Asset held for sale

The company categorises Non-current assets and liabilities as ""held for sale"", when there is a proposal/ intention to sell an asset or group of assets in its present condition.

3.11.2 Internally-generated intangible assets - research and development expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

The assets held for sale are carried at cost or fair value less costs related to disposal, which ever is lower and are not subject to depreciation."

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

3.10 Investment property

Properties that is held for long-term rentals or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of the investment property is replaced, the carrying amount of the replaced part is derecognised.

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;

• the intention to complete the intangible asset and use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable future economic benefits;

• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Investment property are depreciated using the straight line method over their estimated useful lives. Investment properties generally have a useful life of 2560 years. The useful life has been determined based on technical evaluation performed by the management's expert.

The amount initially recognised for internallygenerated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in statement of profit and loss in the period in which it is incurred.

Invetsment poperties are derecognised on disposal or when the investment properties are permanently withdrawn from use and no future economic benefits are exepcted from its disposal. The gains or losses from the disposal of investment properties are determined

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

3.12.3 Impairment of non-financial assets

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

3.11.3 Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost).

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

3.11.4 Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

3.11.5 Useful lives of intangible assets

Intangible assets are amortised over their estimated useful life on straight line method as follows:

Registration and Brands : 10 years to 25 years Software Licenses : 5 years

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cashgenerating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in statement of profit and loss.

3.12 Impairment of assets

3.12.1 Impairment of financial assets:

The Company assesses at each date of balance sheet, whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the twelve-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly, since initial recognition.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.

3.13 Inventories

3.12.2 Impairment of investment in subsidiaries and associates

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Cost is determined as follows:

The Company reviews its carrying value of investments in subsidiaries and associates at cost, annually, or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Annual Report 2021-22 | 243

242 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Raw materials, packing materials and stores and spares: weighted average basis

3.15 Financial instruments

3.15.1 Investment in subsidiaries and associates

Work-in progress: at material cost and an appropriate share of production overheads

The Company has accounted for its investments in subsidiaries and associates joint ventures at cost less impairment.

Finished goods: material cost and an appropriate share of production overheads and excise duty, wherever applicable

3.15.2 Other financial assets and financial liabilities

Other financial assets and financial liabilities are recognised when Company becomes a party to the contractual provisions of the instruments.

Stock-in trade: weighted average basis.

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

Initial recognition and measurement:

Other financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in statement of profit and loss.

3.14 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Subsequent measurement:

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and selling financial assets.

3.14.1 Onerous contracts

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract.

Financial assets at fair value through profit or loss Financial assets are measured at fair value through profit or loss unless it measured at amortised cost or fair value through other comprehensive income on initial recognition. The transaction cost directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in the statement of profit and loss.

3.14.2 Contingent liabilities

Contingent liabilities are disclosed in notes when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Financial liabilities

Financial liabilities are measured at amortised cost using effective interest rate method. For trade and other

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

3.15.3 Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Equity instruments recognised by the Company are recognised at the proceeds received net off direct issue cost.

3.15.4 Financial guarantee contracts

The Company enters into financial guarantee contracts with its subsidiaries and associates. At the inception of a financial guarantee contract, a liability is recognized initially at fair value and then subsequently at the higher of the estimated loss and amortized cost, the changes in subsequent measurement being recognised in the Statement of Profit and Loss. Where a guarantee is issued for a consideration, a financial asset of an amount equal to the liability is initially recognized at amortized cost. Where a guarantee is issued for no consideration, the fair value is recognized as additional investment in the entity to which the guarantee relates.

b) Fair value hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange rates and commodity prices.

3.15.5 Derivative financial instruments and hedge

accounting

The Company uses various derivative financial instruments such as interest rate swaps, currency swaps and forward contracts to mitigate the risk of changes in interest rates and foreign exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently 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.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to Statement of Profit and Loss over the period of maturity."

3.16 Exceptional items

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to the Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

When an item of income or expense within profit or loss from ordinary activity is of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year, the nature and amount of such items is disclosed as exceptional items.

3.17 Cash and cash equivalents

Cash and cash equivalents consist of cash at banks and on hand and short-term deposits with an original maturity of three months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of our

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability

Annual Report 2021-22 | 245

244 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Ind AS 16 – Proceeds before intended use

cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

3.18 Earnings per share

Basic Earnings Per Share ('EPS') is computed by dividing the net profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and that either reduces earnings per share or increases loss per share are included. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented in case of share splits.

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 – Annual Improvements to Ind AS (2021)

3.19 Recent pronouncements

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below

Ind AS 116 – Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 103 – Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

|In Million<br>**Particulars**<br>**Gross block**<br>**Accumulated depreciation**<br>**Net block**<br>**As at**<br>**01-Apr-21**<br>**Additions**<br>**Disposals**<br>**As at**<br>**31-Mar-22**<br>**As at**<br>**01-Apr-21**<br>**Depreciation**<br>**for the year**<br>**Disposal**<br>**As at**<br>**31-Mar-22**<br>**As at**<br>**31-Mar-22**|**Tangible assets:**<br>Land:<br>- Freehold<br>848.10<br>-<br>-<br>848.10<br>-<br>-<br>-<br>-<br>848.10<br>848.10<br>-<br>-<br>848.10<br>-<br>-<br>-<br>-<br>848.10<br>- Leasehold<br>48.13<br>-<br>-<br>48.13<br>-<br>-<br>-<br>-<br>48.13<br>48.13<br>-<br>-<br>48.13<br>-<br>-<br>-<br>-<br>48.13<br>Buildings<br>1,447.24<br>40.16<br>0.19<br>1,487.21<br>398.41<br>71.25<br>0.02<br>469.64<br>1,017.57<br>1,464.85<br>2.39<br>20.00<br>1,447.24<br>348.19<br>70.22<br>20.00<br>398.41<br>1,048.83<br>Plant and equipments<br>5,099.13<br>862.42<br>11.68<br>5,949.87<br>2,337.97<br>513.54<br>9.57<br>2,841.94<br>3,107.93<br>4,427.00<br>699.69<br>27.56<br>5,099.13<br>1,909.73<br>449.37<br>21.13<br>2,337.97<br>2,761.16<br>Furniture and fxtures<br>156.20<br>12.85<br>-<br>169.05<br>86.47<br>14.82<br>-<br>101.29<br>67.76<br>143.07<br>13.13<br>-<br>156.20<br>73.23<br>13.24<br>-<br>86.47<br>69.73<br>Vehicles<br>33.34<br>0.85<br>0.93<br>33.26<br>14.30<br>3.76<br>0.91<br>17.15<br>16.11<br>37.66<br>5.82<br>10.14<br>33.34<br>15.43<br>4.70<br>5.83<br>14.30<br>19.04<br>Offce equipments<br>675.32<br>97.81<br>0.59<br>772.54<br>418.96<br>116.15<br>0.57<br>534.54<br>238.00<br>553.25<br>122.87<br>0.80<br>675.32<br>326.94<br>92.82<br>0.80<br>418.96<br>256.36|**Total**<br>**8,307.46**<br>**1,014.09**<br>**13.39**<br>**9,308.16**<br>**3,256.11**<br>**719.52**<br>**11.07**<br>**3,964.56**<br>**5,343.60**|**Previous year**<br>**7,522.06**<br>**843.90**<br>**58.50**<br>**8,307.46**<br>**2,673.52**<br>**630.35**<br>**47.76**<br>**3,256.11**<br>**5,051.35**|**Notes:**<br>(i)<br>Figures in italics relate to previous year.<br>(ii)<br>The above assets other than to the extent mentioned in notes (iii) below are owned by the Company.<br>(iii) In 2008, the Company had entered into a lease cum sale agreement with Karnataka Industrial Area Development Board (‘KIADB’) for purchase of land under a lease<br>cum sale agreement. The Company is in the process of transferring the said land in its name.<br>(iv)<br>Addition during the year includes capital expenditure towards research and development of22.64 Million (as at March 31, 2021:`65.47 Million).
(v)
Properties, plant and equipment are pledged as security
- towards borrowings by subsidiary
- towards term loan (frst pari passu charge) and working capital borrowings (second pari passu charge) by the Company.|
|---|---|---|---|---|

Annual Report 2021-22 | 247

246 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 4 (ii) Capital-Work-in Progress (CWIP)

Ageing of Capital-Work-in Progress (CWIP)

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	Amount in CWIP for aperiod of	Total
	Less than 1year 1-2 years 2-3 Years Greater than 3 Years
March 31, 2022 Projects in progress Projects temporarilysuspended	272.41 16.53 7.30 8.27 - - - -	304.51 -
Total	272.41 16.53 7.30 8.27	304.51
March 31, 2021 Projects in progress Projects temporarilysuspended	440.00 319.67 40.56 13.37 - - - -	813.60 -
Total	440.00 319.67 40.56 13.37	813.60

Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling annual plan.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

|In Million|**Particulars**<br>**Gross block**<br>**Accumulated amortisation**<br>**Net block**<br>**As at**<br>**01-Apr-21**<br>**Additions**<br>**De-recognition**<br>**As at**<br>**31-Mar-22**<br>**As at**<br>**01-Apr-21**<br>**Depreciation**<br>**for the year**<br>**De-recognition**<br>**As at**<br>**31-Mar-22**<br>**As at**<br>**31-Mar-22**|Buildings<br>511.38<br>249.93<br>221.72<br>539.59<br>201.80<br>117.81<br>115.94<br>203.67<br>335.92<br>511.38<br>-<br>-<br>511.38<br>81.06<br>120.74<br>-<br>201.80<br>309.58<br>Offce equipments<br>87.99<br>-<br>-<br>87.99<br>87.99<br>-<br>-<br>87.99<br>-<br>87.99<br>-<br>-<br>87.99<br>83.65<br>4.34<br>-<br>87.99<br>-|**Total**<br>**599.37**<br>**249.93**<br>**221.72**<br>**627.58**<br>**289.79**<br>**117.81**<br>**115.94**<br>**291.66**<br>**335.92**|**Previous year**<br>**599.37**<br>**-**<br>**-**<br>**599.37**<br>**164.71**<br>**125.08**<br>**-**<br>**289.79**<br>**309.58**|**(ii) Lease Liabilities**<br>In Million
Particulars
31-Mar-22
31-Mar-21
Current
123.08
146.63
Non-current
269.79
238.58
392.87
385.21|
|---|---|---|---|---|---|

Annual Report 2021-22 | 249

248 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

(iii) Amounts Recognised in the statement of Profit or Loss

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Depreciation charge on Right-of-use asset Buildings Offce equipment Interest expense (Included in fnance cost) Other Income on account of lease modifcation Other expenses relatingto leases, not included in leasepayments	117.81 -	120.74 4.34
	117.81	125.08
	32.64 18.73 45.45	39.90 - 38.57

(iv) Total cash outflow

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Buildings	150.40	144.34
	150.40	144.34

Note No. 6 Investment property

==> picture [494 x 28] intentionally omitted <==

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

` In Million
Gross block Accumulated depreciation Net block
----- End of picture text -----

Particulars	Gross block	Accumulated depreciation	Net block
	As at 01-Apr-21 Additions Disposals As at 31-Mar-22	As at 01-Apr-21 Depreciation for theyear Disposals As at 31-Mar-22	As at 31-Mar-22
Land Building	147.27 - 115.96 31.31 147.27 - - 147.27 812.97 - 710.23 102.74 812.97 - - 812.97	- - - - - - - - 281.89 25.16 301.16 5.89 236.67 45.22 - 281.89	31.31 147.27 96.85 531.08
Total	960.24 - 826.19 134.05	281.89 25.16 301.16 5.89	128.16
Previous year	960.24 - - 960.24	236.67 45.22 - 281.89	678.35

Notes:

(i) Figures in italics relate to previous year.

(ii) Details of assets given under an operating lease

				`In Million
	Gross	block	Gross	block
Particulars	31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
Freehold Land Buildings	31.31 102.74	147.27 812.97	31.31 96.85	147.27 531.08
Total	134.05	960.24	128.16	678.35

(iii) Fair value of investment properties

The fair value of the Company’s investment properties as at March 31, 2022 has been arrived at 949 Million (as at March 31, 2021 : 1,579 Million) on the basis of a valuation carried out by independent valuers. The valuation is done by valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 and have appropriate qualifications and relevant experience in the valuation of properties in the relevant locations. The fair value has been categorized as level 3 hierarchy based on the inputs used in valuation technique. The inputs used are as follows:

• Monthly market rent, taking into account the differences in location, and individual factors, such as frontage and size, between the comparables and the property; and

• Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

(iv) Investment properties are pledged as security

• towards borrowings by subsidiary

• • towards term loan (first pari passu charge) and working capital borrowings (second pari passu charge)

  • by the Company.

• (v) During the current year the company has sold an investments property with a net book value of 525.03 Million for a total consideration of630 Million(Refer note 44).

(vi) Amounts recognised in profit or loss for investment properties

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Rental income Gain on sale of investment property Depreciation	56.61 104.97 (25.16)	73.78 - (45.22)
Proft from investmentproperties	136.42	28.56

Note No. 7 (i) Other intangible assets

==> picture [495 x 27] intentionally omitted <==

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

` In Million
Gross block Accumulated amortisation Net block
----- End of picture text -----

Particlars	Gross block	Accumulated amortisation	Net block
u	As at 01-Apr-21 Additions Disposals As at 31-Mar-22	As at 01- Apr-21 Amortisation for theyear Disposals As at 31-Mar-22	As at 31-Mar-22
- Internally generated: - Registrations and brands* - Software and licenses	385.79 83.18 12.98 455.99 360.26 29.73 4.20 385.79 828.09 66.26 - 894.35 755.73 72.36 - 828.09	221.67 49.27 0.45 270.49 167.94 53.94 0.21 221.67 586.55 131.90 - 718.45 447.72 138.83 - 586.55	185.50 164.12 175.90 241.54
Total	1,213.88 149.44 12.98 1,350.34	808.22 181.17 0.45 988.94	361.40
Previousyear	1,115.99 102.09 4.20 1,213.88	615.66 192.77 0.21 808.22	405.66

*Additions represents product development expenditure capitalised during the year Notes: (i) Figures in italics relate to previous year.

Note No. 7 (ii) Intangible assets under development

Intangible assets under development aging schedule

		`In Million
Particulars	Amount in Intangibles assets under development for a period of	Total
	Less than 1year 1-2 years 2-3 Years Greater than 3 Years
March 31, 2022 Projects in progress Projects temporarilysuspended	61.29 51.18 - 140.17	252.64 -
Total	61.29 51.18 - 140.17	252.64
March 31, 2021 Projects in progress Projects temporarilysuspended	125.05 11.84 108.56 47.64	293.09 -
Total	125.05 11.84 108.56 47.64	293.09

Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling annual plan.

Annual Report 2021-22 | 251

250 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 8 Investments

Investments consist of the following: Investments - Non-current

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
(A) Investments in subsidiaries: (Carried at cost) Equity shares, unquoted - 30,306,148 (As at March 31, 2021: 30,306,148) shares of GBP 1 each fully paid up in Strides Arcolab International Limited, UK - 438,000 (As at March 31, 2021: 438,000) shares of USD 1 each fully paid up in Strides Pharma International Limited, Cyprus - 142 (As at 31 March, 2021: 142) shares of SGD 1 each fully paid up in Strides Pharma Asia Pte Limited, Singapore - 12,788,136 (As at March 31, 2021: 12,788,136) shares of CHF 1 each fully paid up in SVADS Holdings SA, Switzerland - 172,215 ( As at March 31, 2021: 160,000) shares of10 each fully Paid up in Arcolab<br>Private Limited, India<br>- 28,266,880 (As at March 31, 2021: 28,266,880) shares of10 each fully paid up in Vivimed Life Sciences Private Limited,India	5,322.52 23.13 11,476.68 466.59 52.73 1,347.42	5,322.52 23.13 11,476.68 466.59 1.60 1,347.42
Total(A)	18,689.07	18,637.94
(B) Investments in associates: Equity shares, unquoted (Carried at cost) - 11,089,320 (As at March 31, 2021: 739,288 shares of10 each) shares of1 each fully paid up in Stelis Biopharma Limited, India(formerly known as Stelis Biopharma Private Limited) (refer note(a), (b)and(c)below)	5,308.55	5,308.55
Total(B)	5,308.55	5,308.55
Total[A+B]	23,997.62	23,946.49
Aggregate amount of unquoted investments Aggregate amount of impairment in value of investments	23,997.62 -	23,946.49 -

Refer Note 39 for disclosures with respect to section 186(4) of Companies Act, 2013. Refer note 44 for related party transactions.

Note:

• a) During previous year, the Board of Directors of the Company have approved in principle the demerger of its bio-pharma business under Stelis Biopharma Private Limited. The transaction is subject to approval from shareholders, meeting customary closing conditions.

• b) 5,979,370 (As at March 31, 2021: 407,065) equity shares are pledged against borrowings taken by Stelis Biopharma Limited from a financial institution.

• c) During the year ended 31 March 2022, Stelis Biopharma Limited (‘the Associate’) has incurred loss of 2,327 million and has a net negative working capital position amounting to 2,976 million, which includes the current maturities of non-current borrowings of 3,731.55 million as at March 31, 2022. As of March 31, 2022, the associate has inventories relating to Sputnik V, which remains unsold due to geopolitical situation between Russia and Ukraine and sanctions on Russia and Russian Direct Investment Fund (RDIF). The management of the Associate is confident of liquidating these inventories within the shelf life in the normal course of business. Further, the Associate has shown growth in the Contract Development and Manufacturing business (from 213.9 million in FY21 to ` 1,321.27 million in FY22) which is expected to grow further in the coming years. The Associate also proposes to monetise some of its existing intangible assets under development through potential licensing / strategic partnerships. The Associate has requested for temporary relaxations for compliance with these financial covenants from the lenders as these have not been met as of the date of these financial results. Also, the shareholders of the Associate have committed to extend the necessary financial support against the monies outstanding on the partly paid shares.

Given the mitigating factors discussed above, while there is a reasonable expectation that the Associate will be able to generate/raise adequate resources to continue operating for the foreseeable future and that the going concern basis for the preparation of its financial statements remains appropriate, there exists a material uncertainty in respect of the Associate’s going concern. This also required the Company to undertake the Impairment assessment of the Company’s investment in the Associate. The Company

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

estimated the recoverable amount based on the value in use of the underlying businesses. The computation uses cash flow forecasts based on the most recently approved financial budgets and strategic forecasts. The Company also considered the valuation at which funds were raised by the associate during the year and significant increase in its revenues during the current year. Accordingly, based on the above assessment, the Company has concluded that no impairment provision is required in the standalone financial statements.

Note No. 9 Loans receivable

Loans consist of the following:

(i) Long-term loans receivable

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured, Considered good: Loans to: - Relatedparties(Refer note 44)	1,246.09	852.21
Total	1,246.09	852.21

(ii) Short-term loans receivable

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured, Considered good: Loans to: - Employees	43.02	35.66
Total	43.02	35.66

Note No. 10 Other financial assets

Other financial assets consist of the following:

(i) Non-current financial assets

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Security deposits * Fixed deposits with banks	186.92 12.38	214.59 2.77
Total	199.30	217.36

• Includes security deposit given to related parties (Refer note 44)

(ii) Current financial assets

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured, considered good: Receivables from related parties (Refer note 44) Interest accrued on loans given (Refer note 44) Derivative asset Others: - Receivable from director (Refer note 44)** - Dividend receivable from subsidiaries (Refer note 44) - Gratuity claim receivables - Others	344.75 105.87 9.08 141.90 - 28.83 0.13	110.58 21.53 64.54 - 124.63 23.11 20.38
Total	630.56	364.77

**The Company’s erstwhile Managing Director and Chief Executive Officer tendered resignation in March 2022 which has been accepted by the Board of Directors (the Board). As part of the terms of his remuneration, as approved in the Annual General Meeting dated 20 August 2020, he was entitled to certain amounts subject to fulfilment of certain service conditions. Consequent to his resignation before the completion of the specified service period, the Board decided to recover amounts due to the Company based on the originally approved terms of his appointment. Accordingly, in line with the requirements of Section 197(9) of the Act, the Company has recorded such excess remuneration of ` 141.9 million paid as a recoverable balance as at 31 March 2022.

Annual Report 2021-22 | 253

252 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 11 Deferred tax balances

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	As at 31-Mar-22	As at 31-Mar-21
Deferred tax assets Deferred tax liabilities	1,221.88 (446.08)	1,181.42 (429.31)
Deferred tax assets(net)	775.80	752.11

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 12 Income tax assets (net)

The income tax assets consists of the following: Non-current income tax assets

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Advance income tax (net of provisions) Income taxpaid underprotest	978.22 593.77	681.40 593.77
Total	1,571.99	1,275.17

` In Million

2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80	2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80	2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80	2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80	2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80	2021-2022 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges (22.56) - - 20.72 (1.84) Property, plant and equipment and Intangible assets (406.75) - (37.49) - (444.24) Employee benefts 230.03 - (35.40) 0.88 195.51 Merger related expenses 5.13 - (4.23) - 0.90 Leases 26.44 - (6.53) - 19.91 Allowance for credit loss 86.81 - (23.59) - 63.22 Others 4.97 - (6.72) - (1.75) (75.93) - (113.96) 21.60 (168.29) MAT Credit entitlement 828.04 - 111.86 - 939.90 Tax losses - - 4.19 - 4.19 Total 752.11 - 2.09 21.60 775.80
Deferred tax (liabilities)/assets in relation to: Cash fow hedges Property, plant and equipment and Intangible assets Employee benefts Merger related expenses Leases Allowance for credit loss Others MAT Credit entitlement Tax losses	(22.56) (406.75) 230.03 5.13 26.44 86.81 4.97	- - - - - - -	- (37.49) (35.40) (4.23) (6.53) (23.59) (6.72)	20.72 - 0.88 - - - -	(1.84) (444.24) 195.51 0.90 19.91 63.22 (1.75)
	(75.93) 828.04 -	- - -	(113.96) 111.86 4.19	21.60 - -	(168.29) 939.90 4.19
Total	752.11	-	2.09	21.60	775.80

` In Million

2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11	2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11	2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11	2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11	2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11	2020-2021 Opening balance Recognised in equity Recognised in statement of proft and loss Recognised in other comprehensive income Closing balance Deferred tax (liabilities)/assets in relation to: Cash fow hedges 114.10 - - (136.66) (22.56) Property, plant and equipment and Intangible assets (441.31) - 34.56 - (406.75) Employee benefts 196.62 - 25.25 8.16 230.03 Merger related expenses 3.93 - 1.20 - 5.13 Leases 19.23 - 7.21 - 26.44 Allowance for credit loss 59.63 - 27.18 - 86.81 Others (11.12) - 16.09 - 4.97 (58.92) - 111.49 (128.50) (75.93) MAT Credit entitlement 954.37 - (126.33) - 828.04 Tax losses 108.93 - (108.93) - - Total 1,004.38 - (123.77) (128.50) 752.11
Deferred tax (liabilities)/assets in relation to: Cash fow hedges Property, plant and equipment and Intangible assets Employee benefts Merger related expenses Leases Allowance for credit loss Others MAT Credit entitlement Tax losses	114.10 (441.31) 196.62 3.93 19.23 59.63 (11.12)	- - - - - - -	- 34.56 25.25 1.20 7.21 27.18 16.09	(136.66) - 8.16 - - - -	(22.56) (406.75) 230.03 5.13 26.44 86.81 4.97
	(58.92) 954.37 108.93	- - -	111.49 (126.33) (108.93)	(128.50) - -	(75.93) 828.04 -
Total	1,004.38	-	(123.77)	(128.50)	752.11

Under the Indian Income Tax Act, 1961, the Company is liable to pay Minimum Alternate Tax (MAT). MAT paid can be carried forward for a certain period and can be set off against the future tax liabilities. MAT is recognised as deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefits associated with the asset will be realised.

Note No. 13 Other assets

Other assets (unsecured) consist of the following:

(i) Other non-current assets

(i) Other non-current assets
		`In Million
Particulars	31-Mar-22	31-Mar-21
Considered good: - Capital advances - Prepaid expenses - Lease equalisation asset Balances with Government authorities: - Indirect taxes paid under protest Others: - Receivable from KIADB	18.71 24.60 - 25.78 -	105.50 41.54 2.18 25.78 4.79
Total	69.09	179.79
(ii) Other current assets		`In Million
Particulars	31-Mar-22	31-Mar-21
Considered good: Advances to suppliers Advances to employees Advances to others Prepaid expenses Incentives receivables Balances with Government authorities	183.09 0.78 - 189.46 16.69 450.58	125.16 0.32 7.55 236.00 195.69 635.55
Total	840.60	1,200.27

Note No. 14 Inventories*

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Raw materials (including goods in transit) Work-in-progress Finished goods Stock-in-trade Stores and spares	3,722.27 282.60 899.20 2.55 224.01	4,351.00 309.47 1,999.95 17.49 212.89
Total	5,130.63	6,890.80

• Refer note 3.13 for mode of valuation of inventories.

Annual Report 2021-22 | 255

254 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 15 Trade receivables

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Unsecured Considered good * Credit impaired Less: Allowance for credit loss(Refer note 47.5)	13,144.11 -	8,402.07 63.00
	13,144.11 (180.92)	8,465.07 (248.42)
Total	12,963.19	8,216.65

*Includes receivables from related parties (Refer note 44)

The Company has availed bill discounting facilities from the banks which do not meet the derecognition criteria for transfer of contractual rights to receive cash flows from the respective trade receivables since they are with recourse to the Company. Accordingly as at March 31, 2022, trade receivables balances include 804.12 Million (As at March 31, 2021: 864.14 Million) and the corresponding financial liability to the banks is included as part of working capital loan under short- term borrowings.

Trade receivables ageing as at March 31, 2022

` In Million

			`In Million
Particulars	Not due	Outstanding for following periods from due date of payment	Total
		Less than 6 months 6 months - 1 Year 1-2 Years 2-3 Years More than 3 Years
Undisputed trade receivables -Considered good -Signifcant increase in credit risk -credit impaired Less:Allowance for credit loss Disputed trade receivables -considered good -Signifcant increase in credit risk -credit impaired	5,741.66 - - - - - -	4,467.18 2,614.59 274.13 43.19 3.36 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	13,144.11 - - (180.92) - - -
	5,741.66	4,467.18 2,614.59 274.13 43.19 3.36	12,963.19

Trade receivables ageing as at March 31, 2021

			`In Million
Particulars	Not due	Outstanding for following periods from due date of payment	Total
		Less than 6 months 6 months - 1 Year 1-2 Years 2-3 Years More than 3 Years
Undisputed trade receivables -Considered good -Signifcant increase in credit risk -credit impaired Less:Allowance for credit loss Disputed trade receivables -considered good -Signifcant increase in credit risk -credit impaired	5,993.41 - - - - - -	1,997.90 132.71 133.41 144.64 - - - - - - - - - 63.00 - - - - - - - - - - - - - - - - - - - - -	8,402.07 - 63.00 (248.42) - - -
	5,993.41	1,997.90 132.71 133.41 207.64 -	8,216.65

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 16 Cash and cash equivalents

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Cash on hand Balances with banks: - In current accounts - Funds-in-transit	1.62 35.50 84.12	2.18 69.85 181.00
Total	121.24	253.03

Note No. 17 Other balances with banks

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
- In deposit accounts (Original maturity more than 3 months but less than 12 months) In earmarked accounts: - Unpaid dividend accounts - Unpaid shares accounts - Group gratuity accounts - Balance held as margin moneyagainst workingcapital facilities with banks	4.02 10.92 0.33 0.09 7.86	446.49 21.68 0.33 1.26 7.63
Total	23.22	477.39

Note No. 18 Equity share capital

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Authorised 188,370,000 equity shares of10/- each with voting rights<br>(March 31, 2021: 188,370,000 Equity shares of10/- each) (refer note 37) Issued, subscribed and fully paid-up 89,790,214 equity shares of10/- each with voting rights<br>(March 31, 2021: 89,680,964 equityshares of10/- each)	1,883.70	1,883.70
	1,883.70	1,883.70
	897.90	896.81
Total	89790	89681

(i) Reconciliation of number of shares and amount outstanding

Particulars	31-Mar-22	31-Mar-21 No. of shares `In Million 89,565,464 895.65 115,500 1.16 89,680,964 896.81
	No. of shares `In Million
Equity share capital Equity share of`10/- each Balance at the beginning of the year Changes in equity share capital during the year - Shares issued pursuant to exercise of stock options (Refer note 42(a))	89,680,964 896.81 109,250 1.09
Balance at the end of theyear	89,790,214 897.90

(ii) Detail of the rights, preferences and restrictions attaching to each class of shares outstanding equity shares of ` 10/- each:

The Company has only one class of equity shares, having a par value of `10/-. The holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the board of directors is subject to approval by the shareholders at the ensuing annual general meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution to all preferential amounts. The distribution will be in proportion to number of equity shares held by the shareholders.

Annual Report 2021-22 | 257

256 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

(iii) Details of equity shares held by each shareholder holding more than 5% of equity shares:

Particulars	31-Mar-22	31-Mar-21
	No. of shares %	No. of shares %
Pronomz Ventures LLP SBI Long Term Equity Fund Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Pharma & Healthcare Fund Life Insurance Corporation of India	16,926,147 18.85% 2,380,298 2.65% 5,275,798 5.88% 4,136,701 4.61%	16,484,247 18.38% 5,798,104 6.47% 6,251,740 6.97% 4,985,701 5.56%

(iv) Details of equity shares of ` 10/- each reserved for issuance:

(iv) Details of equity shares of`10/- each reserved for issuance:
Particulars	No. of shares
	31-Mar-22 31-Mar-21
Towards employee stock options under the various Strides stock option plans (Refer note 42(a))	2,590,700 2,602,800

Total

(v) Buy back of shares, issue of bonus shares and shares allotted as fully paid up pursuant to contract(s) without payment being received in cash.

There have been no buy back of shares, issue of shares by way of bonus shares or issue of shares pursuant to contract without payment being received in cash for the period of five years immediately preceding the Balance sheet date.

(vi) Details of equity shares held by promoters

S.No Promoter Name	31-Mar-22	31-Mar-21
	No. of Shares % of total shares % change during the year	No. of Shares % of total shares % change during the year
Promoters 1 Arun Kumar Pillai 2 Devendra Kumar S 3 K R Ravishankar 4 Vimal Kumar S 5 Pronomz Ventures LLP Promoters Group 6 Abhaya Kumar S 7 Chaitanya D 8 Gayatri Nair 9 Hemalatha Pillai 10 Jatin V 11 Jitesh D 12 K R Lakshmi 13 Leela V 14 Monisha Nitin 15 Nitin Kumar V 16 Padmakumar Karunakaran Pillai 17 Pooja Srisrimal 18 Purushothaman Pillai G 19 Rahul Nair 20 Rajitha Gopalakrishnan 21 Rupali Jatin 22 Sajitha Pillai 23 Sajjan D	1,540,997 2% 11% 2 0% (100%) 1,255,593 1% 0% 293,201 0% 12% 16,926,147 19% 3% 57,869 0% 100% 59,882 0% 113% 33,000 0% 0% 66,760 0% 0% 461,042 1% 0% 25,825 0% 0% 130,365 0% 0% 417,867 0% 0% 149,764 0% 0% 527,093 1% 6% 186,485 0% 0% 93,750 0% 0% 33,013 0% 0% 20,000 0% 0% 60,000 0% 0% 189,826 0% 0% 95,000 0% 0% 176,670 0% (26%)	1,385,797 2% 1% 88,736 0% 687% 1,255,593 1% 0% 262,027 0% 2% 16,484,247 18% 30% - 0% 0% 28,175 0% (93%) 33,000 0% 0% 66,760 0% 39% 461,033 1% 0% 25,825 0% (93%) 130,365 0% 0% 417,858 0% 0% 149,764 0% 3% 498,005 1% 0% 186,485 0% 9% 93,750 0% 0% 33,013 0% 0% 20,000 0% 0% 60,000 0% 33% 189,826 0% 3% 95,000 0% 19% 237,692 0% 42%

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

S.No Promoter Name	31-Mar-22	31-Mar-21
	No. of Shares % of total shares % change during the year	No. of Shares % of total shares % change during the year
24 Suchi Chaitanya Srisrimal 25 V. Jatin (HUF) 26 V. Nitin Kumar (HUF) 27 Vimal Kumar S - (HUF) 28 S Abhaya Kumar (HUF) 29 Taru Mardia 30 Vibha Srisrimal 31 Vineetha Mohanakumar Pillai 32 Lakshmi Gopalakrishnan 33 Rajeshwari Amma Body Corporates 34 Abusha Investment & Manangement Services LLP 35 Agraganya Private Trust 36 Ambemata Securities 37 Shasun Enterprises LLP (Formerly, Devendra Estates LLP) 38 Shasun Leasing And Finance (P) Limited 39 Triumph Venture Holdings LLP 40 Karuna Business Solutions LLP 41 Agnus Capital LLP 42 Agnus holding Private Limited 43 Chayadeep Properties 44 Devendra Estates Private Limited 45 Karuna Ventures Private Limited 46 Lifecell Internatinal Private Limited 47 Sequent Scientifc Limited	93,750 0% 0% 408 0% 0% 500 0% 0% 115,158 0% 0% 78,043 0% 0% 14,000 0% 0% 14,000 0% 0% 190,000 0% 0% 50,000 0% 0% - 0% 0% 281,221 0% 0% 300,000 0% 100% 481,660 1% 0% 823,953 1% 0% 1,005,000 1% 0% - 0% (100%) 1,225,050 1% 0% - 0% 0% - 0% 0% - 0% 0% - 0% 0% - 0% 0% - 0% 0% - 0% 0%	93,750 0% 0% 408 0% 0% 500 0% 0% 115,158 0% 0% 78,043 0% 24% 14,000 0% 0% 14,000 0% 0% 190,000 0% 9% 50,000 0% 0% - 0% (100%) 281,221 0% 0% - 0% 0% 481,660 1% 0% 823,953 1% 0% 1,005,000 1% 0% 35,937 0% 0% 1,223,500 1% 103% - 0% (100%) - 0% (100%) - 0% (100%) - 0% (100%) - 0% (100%) - 0% (100%) - 0% (100%)

Note No. 19 Other equity

` In Million

Note No. 19Other equity			`In Million
Particulars	Note	31-Mar-22	31-Mar-21
(A) Share application money pending allotment (B) Reserves and Surplus i) Capital reserve ii) Securities premium account Securities premium Reserve for Business Restructure (BRR) iii) Capital redemption reserve iv) Share options outstanding account v) General reserve vi) Retained earnings (C) Items of other comprehensive income i) Effective portion of cash fow hedge ii) Remeasurement of the defned beneft liabilities /(assets)	19 (A) 19 (B) (i) 19 (B) (ii) (a) 19 (B) (ii) (b) 19 (B) (iii) 19 (B) (iv) 19 (B) (v) 19 (B) (vi) 19 (C) (i) 19(C) (ii)	4.06 200.79 17,321.88 3,846.38 601.61 20.46 3,902.47 7,408.87 3.42 (141.01)	- 200.79 17,272.67 3,846.38 601.61 47.20 3,881.20 5,831.30 42.00 (139.38)
Total		33,168.93	31,583.77

Annual Report 2021-22 | 259

258 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [496 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
(A) Share application money pending allotment Opening balance Add: Received during the year Closing balance (A) (B) Reserves and surplus (i) Capital reserve Opening balance Add: Movement during the year Closing balance (ii) Securities premium account (a) Securities premium Opening balance Add: Premium on shares issued during the year (Refer note 42(a)) Closing balance (b) Reserve for Business Restructure (BRR) Opening balance Add: Movement during the year Closing balance Total Securities premium (iii) Capital redemption reserve Opening balance Add: Movement during the year Closing balance (iv) Share options outstanding account (Refer notes 42(a)) Opening balance Add: Employee stock compensation expenses ( including amounts cross charged to subsidiary) Less: Transferred to securities premium account on exercise (net) Less: Transferred to general reserve on lapse Closing balance (v) General reserve Opening balance Add: Movement during the year Closing balance (vi) Retained earnings Opening balance Add: Proft for the year Less: Dividend on equity shares including taxes Closing balance	- 4.06	- -
	4.06	-
	200.79 -	200.79 -
	200.79	200.79
	17,272.67 49.21	17,218.99 53.68
	17,321.88	17,272.67
	3,846.38 -	3,846.38 -
	3,846.38	3,846.38
	21,168.26	21,119.05
	601.61 -	601.61 -
	601.61	601.61
	47.20 12.71 (18.18) (21.27)	57.24 15.21 (19.84) (5.41)
	20.46	47.20
	3,881.20 21.27	3,875.79 5.41
	3,902.47	3,881.20
	5,831.30 1,801.88 (224.31)	5,228.04 782.40 (179.14)
	7,408.87	5,831.30
Total Reserves and surplus(B)	33,302.46	31,681.15
(C) Items of other comprehensive income (i) Effective portion of cash fow hedge Opening balance Add / (less): Movement during the year Add / (less): Tax impact on above Closing balance (ii) Remeasurement of the defned beneft liabilities / (assets) (Refer note 43) Opening balance Add / (less): Movement during the year Add / (less): Tax impact on above Closing balance	42.00 (59.30) 20.72	(212.44) 391.10 (136.66)
	3.42	42.00
	(139.38) (2.51) 0.88	(124.19) (23.35) 8.16
	(141.01)	(139.38)
Total items of other comprehensive income(C)	(137.59)	(97.38)
Other equity [(A) +(B) +(C)]	33,168.93	31,583.77

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Nature and purpose of other reserve

(a) Capital reserve

• Capital reserve is created on account of FCCB’s, Mergers and acquisitions and Demergers. It is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Securities premium

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

• (c) Reserve for Business Restructure

• The Scheme of restructuring approved by the shareholders on April 13, 2009 included a Scheme of Arrangement that envisaged the creation of a Reserve for Business Restructure(BRR) as set out in the Scheme. The Reserve was to be utilized by December 31, 2012 for specified purposes by either the Company or its subsidiaries. The balance of ` 3,846.38 Million identified under the Securities Premium Account represents amounts utilized by the subsidiaries of the Company from the Reserve prior to December 31, 2012 and have been earmarked for set off on consolidation.

• (d) Capital redemption reserve

• Capital redemption reserve is a statutory, non-distributable reserve into which the amounts are transferred following the redemption or purchase of Company’s own shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

• (e) Share options outstanding account

• The fair value of the equity-settled share based payment transactions with employees is recognised in statement of profit and loss with corresponding credit to employee stock options outstanding account. The amount of cost recognised is transferred to share premium on exercise of the related stock options.

• (f) General reserve

• General reserves are the retained earnings of a Company which are apportioned out of Company’s profits. General reserve is a free reserve which can be utilized for any purpose after fulfilling certain conditions in accordance with the provisions of the Companies Act, 2013.

• (g) Retained earnings

• Retained earnings are the profits that the Company has earned till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

• (h) Cash flow hedging reserve

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

• (i) Remeasurement of the defined benefit liabilities / (asset)

• The cumulative balances of actuarial gain or loss arising on remeasurements of defined benefit plan is accumulated and recognised with in this component of other comprehensive income. Items included in actuarial gain or loss reserve will not be reclassified subsequently to statement of profit and loss.

Note No. 20 Borrowings

Borrowings consist of the following:

(i) Non-current borrowings

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Secured - Term loans from banks (Refer note (i) to (iv) below) - Term loans from others(Refer note(v)to(vi)below)	638.05 608.90	632.00 843.39
Total	1,246.95	1,475.39

Annual Report 2021-22 | 261

260 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Details of security and terms of repayment for the non-current borrowings:

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(i) Term loans from banks: Loan1 Long-term loan Current maturities of long-term loan Security: Hypothecation of assets procured from the term loans. Derived rate of interest: 7.0% to 8.0% p.a. Repayment terms: 36 to 60 monthly instalments. The outstanding term as at March 31, 2022 is 19 to 44 instalments. (ii) Term loans from banks: Loan 2 Long-term loan Current maturities of long-term loan Security: Pari-Passu frst charge on the fxed assets of the Company & second Pari- passu charge on the current assets of the Company Derived rate of interest: 9.0% p.a. to 10.0% p.a. Repayment terms: 48 equal monthly instalments commencing after 12 months from disbursement date. The outstanding term as at March 31, 2022 is 39 instalments. (iii) Term loans from banks: Loan 3 Long-term loan Current maturities of long-term loan Security: Extension of frst pari-passu charge on the entire current assets of the Company, both present and future, and extension of second pari-passu charge on all the fxed asset of the Company, both present and future, excluding land and building at CBD Belapur & Navi Mumbai Derived rate of interest: 7.0% p.a. to 8.0% p.a. Repayment terms: 18 equal monthly instalments after initial moratorium. The outstanding term as at March 31, 2022 is 2 instalments. (iv) Term loans from banks: Loan 4 Long-term loan Current maturities of long-term loan Security: First pari-passu charge on the fxed asset of the Company excluding properties at CBD Belapur and Navi Mumbai and second pari-passu charge on the current assets of the Company Derived rate of interest: 9.5% p.a. to 10.0% p.a. Repayment terms: 48 equal monthly instalments after initial moratorium. The outstanding term as at March 31, 2022 is 47 instalments. (v) Term loans from others: Loan 1 Long-term loan Current maturities of long-term loan	1.72 1.15 276.58 125.00 - 33.33 359.75 124.80 328.88 125.00	2.86 1.06 398.50 93.75 33.33 200.00 197.31 - 461.97 31.25

Security: Pari-Passu first charge on the fixed assets of the Company & second Paripassu charge on the current assets of the Company Derived rate of interest: 9.5% p.a. to 10.5% p.a.

Repayment terms: 48 equal monthly instalments from date of first disbursement. The outstanding term as at March 31, 2022 is 44 instalments.

Details of security and terms of repayment for the non-current borrowings:

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

		`In Million
Particulars	31-Mar-22	31-Mar-21
Disclosed under long term borrowings Disclosed under current borrowings: - Current maturities of long-term loans	1,246.95 512.96	1,475.39 378.98
Total	1,759.91	1,854.37
(ii) Current borrowings		`In Million
Particulars	31-Mar-22	31-Mar-21
Current Current maturities of long-term loans (Refer note 20(i) above) Secured loans repayable on demand from banks: (Refer note (a) below) - Working capital loans Unsecured working capital loans from: (Refer note (b) below) - Bank - Others	512.96 9,463.75 1,056.09 166.57	378.98 6,444.46 490.55 -
Total	11,199.37	7,313.99

Note:

• (a) Details of security for the secured loans repayable on demand: Working capital and short term loans from banks are secured by first pari passu charge over current assets of the Company and second pari passu charge on movable and immovable fixed assets of the Company (other than land and building situated at Navi Mumbai). Derived rate of interest ranges from 1.40% to 9.35%.

• (b) Derived rate of interest ranges from 6% to 9% for unsecured loans from others.

• (c) The returns and statements filed by the Company with the banks for its working capital loans, are in line with books of accounts of the Company.

• (d) Also refer note 2.

Net debt reconciliation

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22 1,246.95 10,686.41 512.96 121.24 4.02 12.38 12,308.68	31-Mar-21 1,475.39 6,935.01 378.98 253.03 446.49 2.77 8,087.09
Non-current borrowings Current borrowings- working capital loans Current maturities of non-current borrowings Less: Cash and cash equivalents Balances in deposit accounts (Refer note 17) Fixed deposit with bank - non current(Refer note 10(i))
Net debt

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Terms of repayment and security	31-Mar-22	31-Mar-21
(i) Term loans from others: Loan 2 Long-term loan Current maturities of long-term loan Security: Pari-Passu frst charge on the fxed assets of the Company (excluding land and building at Navi Mumbai). Derived rate of interest: 10.0 % p.a. to 11.0% p.a. Repayment terms: 20 quarterly structured instalments commencing after initial moratorium. The outstandingterm as at March 31, 2022 is 15 instalments.	280.02 103.68	381.42 52.92

Annual Report 2021-22 | 263

262 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

As on April 1, 2021 Cash fows Repayments Foreign Exchange Fluctuation Others	253.03 (131.79) - - -	449.26 (432.86) - - -	1,854.37 295.36 (399.72) - 9.90	6,935.01 3,644.60 - 106.80 -	(8,087.09) (4,504.61) 399.72 (106.80) (9.90)
As on March 31, 2022	121.24	16.40	1,759.91	10,686.41	(12,308.68)

Note No. 21 Other financial liabilities

Other financial liabilities consist of the following:

(i) Other non-current financial liabilities

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Securitydeposits*	6.58	39.59
Total	6.58	39.59

• Includes security deposit received from related party (Refer note 44)

(ii) Other current financial liabilities

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Interest accrued but not due on borrowings Unclaimed dividends Derivative liability Other payables: - Payables to employees under cash settled share based payment plan (Refer note 42(b)) - Other payable to employees - Payable to related parties (Refer note 44) - Payables on purchase of property, plant and equipment and intangible assets* - Others	10.04 10.91 3.84 33.00 87.84 30.86 149.62 0.33	5.20 21.68 - 52.80 215.04 32.81 277.61 0.33
Total	326.44	605.47

*Investor Education and Protection Fund shall be credited when due.

** Includes payables to related parties (Refer note 44)

Note No. 22 Provisions

Provisions consist of the following:

(i) Non-current provisions

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Provision for employee benefts: Gratuity (Refer note 43)	334.68	280.82
Total	334.68	280.82

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

(ii) Current provisions

				`In Million
Particulars			31-Mar-22	31-Mar-21
Provision for sales return Provision for employee benefts: - Compensated absences - Gratuity			- 204.53 -	11.72 213.04 1.95
Total			204.53	226.71
				`In Million
Movement in provisions (2021-22)	Sales return	Gratuity	Compensated absences	Total
Opening balance Provision recognised/(utilised)duringtheyear	11.72 (11.72)	282.77 51.91	213.04 (8.51)	507.53 31.68
Closing balance	-	334.68	204.53	539.21
				`In Million
Movement in provisions (2020-21)	Sales return	Gratuity 206.95 75.82 282.77	Compensated absences	Total
Opening balance Provision recognised/(utilised)duringtheyear	12.10 (0.38)		182.10 30.94	401.15 106.38
Closing balance	11.72		213.04	507.53

Note No. 23 Other liabilities

Other liabilities consist of the following:

(i) Other non-current liabilities

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22 0.51 0.51	31-Mar-21 1.08 1.08
Prepaid rent liability
Total

(ii) Other current liabilities

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Other payables:
- Advance from customers*	20.23	103.48
- Statutory liabilities	97.15	117.00
- Others	4.47	9.56
Total	121.85	230.04

• Includes advance from related party (Refer note 44)

Note No. 24 Trade payables*

		`In Million
Particulars	31-Mar-22 331.32 6,106.65 6,437.97	31-Mar-21 318.12 7,033.89 7,352.01
- Total outstanding dues of micro enterprises and small enterprises(MSME) ( Refer note (i) below) - Total outstandingdues of creditors other than micro enterprises and small enterprises
Total

• Includes dues to related party (Refer note 44)

Annual Report 2021-22 | 265

264 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Trade payable ageing schedule as at March 31, 2022

		`In million
Particulars	Outstanding for following periods from due date ofpayment	Total
	Unbilled Payables Not due Less than 1year 1 - 2 Years 2 - 3 Years More than 3 Years
Undisputed - MSME - Others Disputed - MSME - Others	- 139.23 182.63 7.66 1.01 0.79 290.00 2,011.36 3,483.21 162.69 81.35 78.04 - - - - - - - - - -	331.32 6,106.65 - -
		`In million
Particulars	Outstanding for following periods from due date ofpayment	Total
	Unbilled Payables Not due Less than 1year 1 - 2 Years 2 - 3 Years More than 3 Years
Undisputed - MSME - Others Disputed - MSME - Others	- 150.11 166.02 1.50 0.36 0.13 560.75 3,174.93 2,972.36 92.41 106.50 126.94 - - - - - - - - - -	318.12 7,033.89 - -

(i) Disclosure required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no material dues owed by the Company to Micro and Small enterprises(MSME), which are outstanding for more than 45 days during the year and as at 31 March 2021. This information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and has been relied upon by the auditors.

==> picture [495 x 15] intentionally omitted <==

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

` In million
----- End of picture text -----

(i) The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each year - Principal amount due to micro and small enterprises - Interest due on the above (ii) The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 2006 along with the amounts 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 (which has been paid but beyond appointed day during the year) but without adding the interest specifed under the MSMED Act, 2006 (iv) The amount of interest accrued and remaining un-paid 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 as above are actually paid to the small enterprise for the purposes of disallowance as a deductible expenditure under the MSMED Act,2006	331.32 5.07 3,215.23 20.78 25.85 55.03	318.12 1.53 1,294.53 17.00 18.53 29.18

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 25 Tax liabilities

Tax liabilities consist of the following;

(i) Non-current tax liabilities (net)

		`In Million
Particulars	31-Mar-22	31-Mar-21
Provision for income tax	-	1,790.91
Total	-	1,790.91
(ii) Current tax liabilities (net)		`In Million
Particulars	31-Mar-22	31-Mar-21
Provision for income tax(net of advance tax)	-	31.53
Total	-	31.53

Note No. 26 Revenue from operations

A. Revenue Streams

The Company is primarily involved into development and manufacture of pharmaceutical products. Other operating revenue include support service, royalty income and export incentives.

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Sale of products * Sale of services (Refer note (i) below) Other operatingrevenues(Refer note(ii)below)	19,080.25 111.87 597.91	17,765.35 189.19 621.12
Total	19,790.03	18,575.66

• Includes revenue from related parties (Refer note 44).

B. Disaggregated revenue information

In the following table, revenue from contracts with customers is disaggregated by primary geographical market

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

		`In Million
Revenue from contracts with customers	31-Mar-22	31-Mar-21
Africa Australia Asia North America Europe India Others Subtotal Revenue from other sources Other operating revenue Subtotal	1,153.79 443.20 11,311.91 1,106.40 4,653.64 483.09 40.09 19,192.12	1,364.03 478.56 10,061.77 1,494.63 3,678.82 854.53 22.20 17,954.54
	597.91 597.91	621.12 621.12
Total	19,790.03	18,575.66

Geographical revenue is allocated based on the location of the customers.

The above disclosures are provided by the Company based on the information available with the Company in respect of the registration status of its vendors/suppliers.

All trade payables are current. The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in Note 47.

Annual Report 2021-22 | 267

266 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

(i) Sale of services comprises:

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Development income * Licensing fees Others	53.43 27.97 30.47	146.87 12.36 29.96
Total	111.87	189.19

• Includes development income from related parties (Refer note 44)

(ii) Other operating revenue comprises:

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Sale of intellectual property rights (Refer note 44) Royalty income Export incentives Support service income (Refer note 44) Others	498.52 28.99 - 61.48 8.92	363.47 76.04 134.21 37.57 9.83
Total	597.91	621.12

Note No. 27 Other income

==> picture [493 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Interest income (Refer note (i) below) Income from current investment Dividend from subsidiaries Rental income from operating leases Other non-operating income - Guarantee commission(Refer note 44) - Gain on sale of property, plant and equipment, Investment property and other intangible assets (net)* - Gain on sale of non-current investment - Others	887.49 2.84 - 59.79 137.89 107.63 - 39.21	126.05 0.31 353.70 113.03 256.42 31.04 8.84 0.57
Total	1,234.85	889.96

• Includes income from related parties (Refer note 44)

Note:

(i) Interest income comprises:

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Interest from banks on deposits Interest on loans (Refer note 44) Interest from others *	8.72 106.02 772.75	28.66 96.47 0.92
Total	887.49	126.05

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 28 Changes in inventories of finished goods, work-in-progress and stock-in-trade

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

il
Partcuars	31-Mar-22	31-Mar-21
Inventories at the end of the year: - Finished goods - Work-in-progress - Stock-in-trade Inventories at the beginning of the year: - Finished goods - Work-in-progress - Stock-in-trade	899.20 282.60 2.55	1,999.95 309.47 17.49
	1,184.35 1,999.95 309.47 17.49	2,326.91 653.01 487.99 10.57
	2,326.91	1,151.57
Net decrease/(increase)	1,142.56	(1,175.34)

Note No. 29 Employee benefits expense

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Salaries, wages and bonus Contributions to provident and other funds (Refer note 43) Share based compensation expense (Refer note 42) Staff welfare expenses	2,241.02 214.51 (8.90) 274.28	2,252.44 179.33 64.92 230.55
Total	2,720.91	2,727.24

Note No. 30 Finance costs

Note No. 30 Finance costs
		`In Million
Particulars	31-Mar-22	31-Mar-21
Interest on borrowings Interest on operating lease liabilities (Refer note 5) Other fnance costs	656.07 32.64 53.70	560.96 39.90 52.53
Total	742.41	653.39

Note No. 31 Depreciation and amortisation expense

Note No. 31 Depreciation and amortisation expense
		`In Million
Particulars	31-Mar-22	31-Mar-21
Depreciation on property, plant and equipment Depreciation on right-of-use assets Depreciation on investment property Amortisation on intangible assets	719.52 117.81 25.16 181.17	630.35 125.08 45.22 192.77
Total	1,043.66	993.42

• Includes interest income amounting to ` 748 million on tax refunds.

Annual Report 2021-22 | 269

268 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 32 Other expenses

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Subcontracting charges Power, fuel and water charges Rent (Refer note 5) Repairs and maintenance: - Buildings - Machinery - Others Insurance Rates and taxes Communication expense Travelling and conveyance Printing and stationery Carriage, freight and forwarding Business promotion Royalty expenses Donations and contributions Expenditure on Corporate Social Responsibility (Refer note (i) below) Support service expenses (Refer note 44) Legal and professional fees Payments to auditors (Refer note (ii) below) Provision for doubtful trade receivables/written off Other receivables written off Consumption of stores and spares Research and development expenses Failure to supply Miscellaneous expenses	232.15 437.60 45.45 20.83 505.29 146.38 106.05 131.53 54.79 41.61 21.62 1,770.65 3.75 - - 24.03 527.58 410.84 22.02 38.35 15.85 466.68 147.34 43.02 49.77	219.67 458.20 38.57 33.99 415.40 142.30 75.61 112.57 53.45 23.38 24.22 933.99 6.76 2.55 4.61 24.81 570.51 235.18 20.61 192.77 - 537.23 188.16 - 52.86
Total	5,263.18	4,367.40

Note:

(i) Expenditure on Corporate Social Responsibility:

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
(a) Gross amount required to be spent during the year (b) Amount spent during the year on (Refer note below) Surplus of CSR spent	24.03 24.03	22.84 24.81
	-	(1.97)
Total ofpreviousyears' shortfall	-	-

Details of amount spent on CSR activities:

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Category	31-Mar-22	31-Mar-21
Recurring Projects Health(Including Respond to pandemic) Education Employability Impact Assessment Ongoing Projects Vidhyadama - Haragabbe School Project	14.02 3.87 1.72 - 4.42	19.36 3.25 1.50 0.70 -
Total	24.03	24.81

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

(ii) Payments to the auditors comprises (net of taxes) for:

(ii) Payments to the auditors comprises (net of taxes) for:
		`In Million
Particulars	31-Mar-22	31-Mar-21
- Audit of Standalone, consolidated fnancial statements, limited review and other certifcations - Reimbursement of expenses	21.03 0.99	19.95 0.66
Total	22.02	20.61
Note No. 33 Tax expenses		`In Million
Particulars	31-Mar-22	31-Mar-21
Current Tax Current tax expenses Current tax expense relating to prior years Deferred tax beneft* Deferred tax expense /(beneft) Minimum alternative tax credit reversed	20.88 (1,605.59)	210.18 -
	(1,584.71) 109.77 (111.86)	210.18 (2.56) 126.33
	(2.09)	123.77
Net tax expense	(1,586.80)	333.95

*The Company during the previous year had received certain refunds including interest of 1,790 million from tax authorities on account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain documents from tax authorities. During the current year, on receipt of the required documentation from tax authorities, the Company recorded the refund received including other tax provision for such assessment year aggregating to 1,605 million as a tax credit and the interest income amounting to ` 748 million on the said refund under other income in these financial statements.

==> picture [496 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Proft before income taxes Indian statutory income tax rate Expected income tax expense Tax effect of adjustments to reconcile expected income tax expense to reported income tax expenses: Effect of concessions and allowances Tax pertaining to prior years Items with differential tax rates Effect of previously unrecognised tax losses and deductible temporary differences Others(net)	215.08 34.944% 75.16 (16.47) (1,655.32) - - 9.83	1,116.35 34.944% 390.10 (40.95) - (35.08) - 19.88
Total Income tax expense	(1,586.80)	333.95
Income tax expense attributable to: Proft before tax	(1,586.80)	333.95
	(1,586.80)	333.95

Refer note 11 for significant components of deferred tax assets and liabilities.

The Company is eligible for various tax incentives / exemptions with respect to taxability of income received in India including repatriation of any profits as dividends from subsidiaries and associates, which may result in possible tax litigations/assessments. Assessing the applicability of tax for such repatriations involve complexities with respect to various tax positions on availability of tax incentives / exemptions resulting in possible tax litigations/assessments. Judgment is required in assessing the availability of tax incentives / exemptions. These judgments could change over time as each of the matter progresses with the relevant tax authorities and accordingly may impact the accounting treatment followed by the Company. The Company based on its assessments believes that appropriate accruals have been recorded for all these matters, to the extent necessary.

Annual Report 2021-22 | 271

270 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 34 Earnings and expenditure in foreign currency 34.1 Earnings in foreign currency

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Sale of products Development income Licensing fees Sale of intellectual property rights Royalty income Dividend from subsidiaries Guarantee commission Other income	18,639.36 53.43 27.97 498.52 28.99 - 83.25 58.30	16,940.83 146.87 12.36 363.47 76.04 353.70 212.40 37.62
Total	19,389.82	18,143.29

34.2 Expenditure in foreign currency

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Royalty expenses Finance costs Consumption of stores and spares Legal and professional fees Rates and taxes Research and development expenses Business promotion Support service charges Others	- 133.33 42.43 188.95 72.93 27.19 0.24 - 63.76	1.99 132.32 56.01 24.59 86.08 53.72 0.27 0.11 36.80
Total	528.83	391.89

Note No. 35 Details of research and development expenditure incurred (charged to statement of profit and loss)

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Salaries, wages and bonus Cost of materials consumed Legal and professional fees Bio study expense Consumption of stores and spares Travelling and conveyance Depreciation and amortisation expense Others	255.73 67.07 16.58 91.52 107.53 7.37 89.59 163.88	244.71 164.26 20.04 128.00 154.84 8.73 95.45 174.20
Total	799.27	990.23

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 36 Other comprehensive income

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
A) Items that will not be reclassifed to proft or loss Defned beneft obligations Income tax on defned beneft obligations B) Items that may be reclassifed to proft or loss Movement in cash fow hedge Income tax on cash fow hedge	(2.51) 0.88	(23.35) 8.16
	(1.63) (59.30) 20.72	(15.19) 391.10 (136.66)
	(38.58)	254.44
Total	(40.21)	239.25

Note No. 37 Merger and acquisitions

Business combination under common control during year ended March 31, 2021

The Scheme u/s 230 to 232 of the Companies Act, 2013, between Strides (the transferee company), Strides Emerging Market Limited, Arrow Remedies Private Limited, and Fagris Medica Private Limited (together, the transferor companies) with an appointed date of April 1, 2019, was approved by the National Company Law Tribunal (NCLT), Bangalore Bench vide order dated May 28, 2020, and by the NCLT, Maharashtra Bench vide order dated November 6, 2020.

Entity / Business acquired Principal activity Date of control Strides Emerging Market Limited Develop, manufacture, market and trade in pharmaceutical products 01-Jun-12 Arrow Remedies Private Limited Provide support services to the group entities 12-Sep-15 Fagris Medica Private Limited Develop, manufacture, market and trade inpharmaceuticalproducts 31-Mar-17	Entity / Business acquired Principal activity Date of control Strides Emerging Market Limited Develop, manufacture, market and trade in pharmaceutical products 01-Jun-12 Arrow Remedies Private Limited Provide support services to the group entities 12-Sep-15 Fagris Medica Private Limited Develop, manufacture, market and trade inpharmaceuticalproducts 31-Mar-17	Entity / Business acquired Principal activity Date of control Strides Emerging Market Limited Develop, manufacture, market and trade in pharmaceutical products 01-Jun-12 Arrow Remedies Private Limited Provide support services to the group entities 12-Sep-15 Fagris Medica Private Limited Develop, manufacture, market and trade inpharmaceuticalproducts 31-Mar-17
Strides Emerging Market Limited Arrow Remedies Private Limited Fagris Medica Private Limited	Develop, manufacture, market and trade in pharmaceutical products Provide support services to the group entities Develop, manufacture, market and trade inpharmaceuticalproducts	01-Jun-12 12-Sep-15 31-Mar-17

Salient features of the Scheme

1. As the Transferee Company is the ultimate holding company of the Transferor Companies, there shall not be any issue of shares as purchase consideration to the shareholders of the Transferor Companies. Further, upon the scheme becoming effective the investments in the share capital of the Transferor companies, appearing in the books of accounts of the Transferee Company, if any, stands cancelled.

2. Upon the Scheme becoming effective, the authorised share capital of the Transferor Companies shall stand combined with the authorised share capital of the Transferee Company. Accordingly, the authorised share capital of the Company will be 1,883,700,000, comprising 188,370,000 shares of 10 each.

3. On the Scheme becoming effective and with effect from the Appointed Date, the merger of the Transferor Companies with the Transferee Company is accounted by the Transferee Company as per the applicable accounting principles prescribed under the Indian Accounting Standard (Ind AS) 103, ‘Business Combinations’ notified under Section 133 of the Act and or any other applicable Ind AS, as amended from time to time.

Annual Report 2021-22 | 273

272 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Net assets (including reserves) recognised at the appointed date of the scheme

==> picture [494 x 18] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	Strides Emerging Market Limited	Arrow Remedies Private Limited	Fagris Medica Private Limited	Total
Current assets Non-current assets Current liabilities Non-current liabilities Net assets of the transferor companies Reserves transferred Capital Reserve Securities Premium Retained Earnings Items of Other Comprehensive Income	136.49 358.43 (153.18) (589.29)	0.33 0.05 (1.04) -	2.09 - (0.77) -	138.91 358.48 (154.99) (589.29)
	(247.55) - (210.62) 513.18 1.26	(0.66) - - 0.76 -	1.32 (29.27) - 38.34 -	(246.89) (29.27) (210.62) 552.28 1.26
Net assets (including reserves) of the transferor companies	56.27	0.10	10.39	66.76

Calculation of Capital reserve arising on business combination under common control

==> picture [494 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	Strides Emerging Market Limited	Arrow Remedies Private Limited	Fagris Medica Private Limited	Total
Carrying value of Investments Add : Reversal of impairment loss recognised in retained earnings Gross Carrying value of Investments Less: Net assets (including reserves) of the transferor companies	- -	0.21 -	- 18.70	0.21 18.70
	- (56.27)	0.21 (0.10)	18.70 (10.39)	18.91 (66.76)
(Excess) / shortfall of the net assets (including reserves) recognised of the transferor companies over the carrying value of investments/purchase consideration, transferred to capital reserves	(56.27)	0.11	8.31	(47.85)

Note No. 38 Segment information

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (“CODM”) evaluates the Company’s performance based on an analysis of various performance indicators. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segments

Effective January 1, 2021, the Company pursuant to its assessment that the business has now evolved from its incubation stage and to align to the decision to demerge certain parts of its business, implemented operational changes in how its CODM evaluates its businesses, including resource allocation and performance assessment. As a result of the aforesaid change, the Company now has two operating segments, representing the individual businesses that are managed separately. The Company’s reportable segment are as follows; “Pharmaceutical” and “Bio-pharmaceutical”. The Company had restated segment information for the historical periods presented herein to conform to the current presentation. The change in segments had no impact on the Company’s historical standalone statements of profit and loss, balance sheets or statements of cash flows.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

		`In Million
S. No. Particulars	31-Mar-22	31-Mar-21
1 Segment Revenue a) Pharmaceutical business b)Bio-pharmaceutical business	19,790.03 -	18,575.66 -
Revenue from operations	19,790.03	18,575.66
2 Segment results a) Pharmaceutical business b) Bio-pharmaceutical business Proft before tax (I) Tax expense(II)	215.08 - 215.08 (1,586.80)	1,116.35 - 1,116.35 333.95
Proft for theperiod(I-II)	1,801.88	782.40
		`In Million
S. No. Particulars	31-Mar-22	31-Mar-21
1 Segment Assets a) Pharmaceutical business b)Bio-pharmaceutical business	49,020.47 5,318.11	46,816.40 5,396.93
Total Segment Assets	54,338.58	52,213.33
2 Segment Liabilities a) Pharmaceutical business b)Bio-pharmaceutical business	20,271.75 -	19,658.88 73.87
Total Segment Liabilities	20,271.75	19,732.75

Other than revenue from related parties as disclosed in note 44 of the standalone financial statements, no external customer individually accounted for more than 10% of the total revenue of the Company for the year ended March 31, 2022 and March 31, 2021.

Note No. 39 Details of Loans and Investments during the year

39.1 Details of Loans made by the Company

Details of loans during the year

								`In Million
Name of borrower	Nature of relationship	Security	Rate of interest	Term	As at April 1, 2021	Given during theyear	Repayment during the year	As at March 31, 2022
Vivimed Lifesciences Private Limited Strides Consumer Private Limited	Wholly owned subsidiary Associate	Unsecured Unsecured	10.50% 10%	2 Years 5 Years	822.21 30.00	463.87 -	70.00 -	1,216.09 30.00
Total					852.21	463.87	70.00	1,246.09
Details of loans during the previous year								`In Million
Name of borrower	Nature of relationship	Security	Rate of interest	Term	As at April 1, 2021	Given during theyear	Repayment during the year	As at March 31, 2022
Vivimed Lifesciences Private Limited Strides Consumer Private Limited	Wholly owned subsidiary Associate	Unsecured Unsecured	10.50% 10%	2 Years 5 Years	725.80 30.00	451.46 -	355.06 -	822.21 30.00
Total					755.80	451.46	355.06	852.21

All the above loans are given for the purpose of business operations of the borrowers as long term strategic investment.

Annual Report 2021-22 | 275

274 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

39.2 Details of non-current investments purchased and sold during the year:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	Face value per unit	As at April 1, 2021	Invested during the year	Sold during the year	Conversion	As at March 31, 2022
(A) Investments in subsidiaries: (Carried at cost) Equity shares, unquoted Strides Arcolab International Limited, UK Strides Pharma International Limited, Cyprus Strides Pharma Asia Pte Limited, Singapore SVADS Holdings SA, Switzerland Vivimed Life Sciences Private Limited, India Arcolab Private Limited, India (B) Investments in associates: (Carried at cost) Equity shares, unquoted Stelis Biopharma Limited, India	GBP 1 USD 1 SGD 1 CHF 1 10<br>10 `1	5,322.52 23.13 11,476.68 466.59 1,347.42 1.60	- - - - - 51.13	- - - - - -	- - - - - -	5,322.52 23.13 11,476.68 466.59 1,347.42 52.73
		18,637.94	51.13	-	-	18,689.07
		5,308.55	-	-	-	5,308.55
		5,308.55	-	-	-	5,308.55
Total		23,946.49	51.13	-	-	23,997.62

Details of non-current investments purchased and sold during the previous year:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars		Face value per unit	As at April 1, 2020	Invested during the year	Sold during the year	Conversion	As at March 31, 2021
(A) (B)	Investments in subsidiaries: (Carried at cost) Equity shares, unquoted Strides Arcolab International Limited, UK Strides Pharma International Limited, Cyprus Strides Pharma Asia Pte Limited, Singapore SVADS Holdings SA, Switzerland Vivimed Life Sciences Private Limited, India Arcolab Private Limited, India Compulsory convertible preference shares, unquoted Strides Arcolab International Limited, UK Investments in associates: (Carried at cost) Equity shares, unquoted Stelis Biopharma Private Limited, India Strides Consumer Private Limited, India Compulsorily Convertible Preference shares, unquoted Strides Consumer Private Limited, India	GBP 1 USD 1 SGD 1 CHF 1 10<br>10 GBP 1,000 10<br>100 `100	4,467.74 23.13 11,476.68 466.59 1,347.42 1.60	- - - - - -	- - - - - -	854.78 - - - - -	5,322.52 23.13 11,476.68 466.59 1,347.42 1.60
			17,783.16	-	-	854.78	18,637.94
			854.78	-	-	(854.78)	-
			854.78	-	-	(854.78)	-
			2,913.59 0.10	2,394.96 -	- (0.10)	- -	5,308.55 -
			2,913.69	2,394.96	(0.10)	-	5,308.55
			153.86	-	(153.86)	-	-
			153.86	-	(153.86)	-	-
	Total		21,705.49	2,394.96	(153.96)	-	23,946.49

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

39.3 Details of current investments purchased and sold during the year:

==> picture [496 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	As at April 1, 2021	Purchase during theyear	Sold during theyear	Adjustments	As at March 31, 2022
Investment measured at fair value through proft or loss Quoted investments Investments in mutual funds	-	540.61	(540.61)	-	-
Total	-	540.61	(540.61)	-	-

Details current investments purchased and sold during the previous year

==> picture [496 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	As at April 1, 2021	Purchase during theyear	Sold during theyear	Adjustments	As at March 31, 2022
Investment measured at fair value through proft or loss Quoted investments Investments in mutual funds		150.00	(150.00)	-	-
Total		150.00	(150.00)	-	-

39.4 Movement in corporate guarantee during the year

					`In Million
Particulars	As at April 1, 2021	Given during the year	Withdrawn/ Cancelled during the year	Exchange rate movement	As at March 31, 2022
Strides Pharma Global Pte. Limited - Banks and fnancial institutions Purpose: Non-current and working capital borrowings for capital investments Stelis Biopharma Private Limited, India - Banks and fnancial institutions Purpose: Non-current borrowings for capital investments Strides Pharma Inc., USA- Banks and fnancial institutions Purpose- workings capital borrowings Vivimed Life Sciences Private Limited, India - Banks and fnancial institutions Purpose: Working capital borrowings Strides Pharma UK Ltd, UK - Banks and fnancial institutions Purpose: Asset acquisition and Working capital borrowings	7,090.75 6,188.52 1,463.19 320.00 605.14	2,144.03 3,100.00 - - -	- - (365.80) - -	268.83 131.31 41.91 - (6.41)	9,503.61 9,419.83 1,139.30 320.00 598.73
Total	15,667.60	5,244.03	(365.80)	435.64	20,981.47

Annual Report 2021-22 | 277

276 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Movement in corporate guarantee during the previous year

` In Million

Particulars	As at April 1, 2020	Given during the year	Withdrawn/ Cancelled during theyear	Exchange rate movement	As at March 31, 2021
Strides Pharma Asia Pte Ltd., Singapore- Mylan Inc. Purpose - Guarantee is extended on behalf of Strides Pharma Asia in relation to its fnancial obligations under a Share Purchase Agreement for the sale of shares of its subsidiary Agila Specialities Global Pte. Ltd., Singapore Strides Pharma Global Pte. Limited - Banks and fnancial institutions Purpose: Non-current borrowings for capital investments Stelis Biopharma Private Limited, India - Banks and fnancial institutions Purpose: Non- current borrowings for capital investments Strides Pharma Inc., USA- Banks and fnancial institutions Purpose- Non-current and workings capital borrowings Vivimed Life Sciences Private Limited, India - Banks and fnancial institutions Purpose: Working capital borrowings Strides Pharma UK Ltd, UK - Banks and fnancial institutions Purpose: Asset acquisition and Workingcapital borrowings	15,070.60 7,289.35 6,291.59 2,260.59 320.00 1,123.15	- - - 365.80 - -	(15,070.60) - - (1,130.30) - (561.58)	- (198.60) (103.07) -32.90 - 43.57	- 7,090.75 6,188.52 1,463.19 320.00 605.14
Total	32,355.28	365.80	(16,762.48)	(291.00)	15,667.60

39.5 Disclosure as per Regulation 34 (3) and 53 (f) read with Part A of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of loans and advances, the amount in the nature of loans outstanding at year end:

		`In Million Maximum amount outstanding during the year ended March 31, 2022 March 31, 2021 30.00 30.00 1,216.09 1,092.41 1,246.09 1,122.41
Borrower	Outstanding
	As at March 31, 2022 As at March 31, 2021
Strides Consumer Private Limited Vivimed Lifesciences Private Limited	30.00 30.00 1,216.09 822.21
Total	1,246.09 852.21

Note No. 40 Commitments

==> picture [494 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Estimated amount of contracts remaining to be executed on capital account and not provided for(net of advances)	141.20	296.27
Total	141.20	296.27

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 41 Contingent liabilities (to the extent not provided for)

==> picture [496 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
a) Corporate guarantees The Company has given corporate guarantees to fnancial institutions and other parties, including on behalf of its subsidiaries in the ordinary course of business. b) Claims against the Company not acknowledged as debt - Disputed tax liabilities arising from assessment proceedings relating to earlier years from the income tax authorities. The outfow, if any, on account of disputed taxes is dependent on completion of assessments/ disposal of appeals and adjustments for payment made under protest. - Disputed excise, custom, service tax and sales tax liabilities arising from assessment proceedings relating to prior years. The outfow, if any, on account of disputed liabilities is dependent on completion of assessments/ disposal of appeals and adjustments forpayment made underprotest.	20,981.47 1,740.14 588.01	15,667.60 1,664.77 588.01

As per the judgment of Honourable Supreme Court dated February 28, 2019 on the definition of “Basic Wages” under the Employees Provident Funds & Misc. Provisions Act, 1952 and based on Company’s evaluation, there are significant uncertainties and numerous interpretative issues relating to the judgement and hence it is unclear as to whether the clarified definition of Basic Wages would be applicable prospectively or retrospectively. The amount of the obligation therefore cannot be measured with sufficient reliability for past periods and hence has currently been considered to be a contingent liability.

Other than the matters disclosed above, the Company is also involved in other disputes including patent and commercial matters that arise from time to time in the ordinary course of business. Management is of the view that the resolution of these disputes will not have any material adverse effect on the Company’s financial position or results of operations.

Note No. 42 Share-based payments

a. Details of the employee share option plan of the Company:

• (a) The ESOP titled “Strides ESOP 2016” (formerly known as Strides Shasun ESOP 2016) (ESOP 2016) was approved by the shareholders on April 21, 2016. 3,000,000 options are covered under the Plan which are convertible into equal number of equity shares of the Company. The vesting period of these options range over a period of three years. The options must be exercised within a period of one year from the date of vesting. Company has granted 67,500 options (Previous year: 25,000) under this scheme during the current year.

• (b) During the current year, Employee compensation costs of 10.90 Million (for the year ended March 31, 2021: 12.12 Million) relating to the above referred Employee Stock Option Plans have been recognised in the Statement of Profit and Loss.

Fair value of share options granted during the year

The fair value of the share options granted during the year under ESOP 2016 Lot X and ESOP 2016 Lot XI are 359.42 and 271.55 respectively. Options were priced using Black- Scholes method of valuation at grant date. Expected volatility is based on the historical share price volatility over the past 3 years.

Inputs into the model -

Inputs into the model -
Particulars	ESOP 2016-X	ESOP 2016-XI
No of Options Grant date share price Exercise price Expected volatility Option life Expected Dividend % Risk-free interest rate	25,000 798.60<br>599.00 39.06% 3 years 20.00% 6.023%	42,500 607.70<br>455.80 38.26% 3 years 20.00% 6.223%

Annual Report 2021-22 | 279

278 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Employee stock options details as on the balance sheet date are as follows:

	During theyear 2021-22 During theyear 2020-21
	Options (No’s) Weighted average exercise price per option (**)**<br>**Options (No’s)**<br>**Weighted**<br>**average exercise**<br>**price per option**<br>**(**)
Option outstanding at the beginning of the year Granted during the year Exercised during the year* Lapsed/ cancelled during the year Options outstanding at the end of the year Options available forgrant	245,900 348.79 421,200 346.86 67,500 508.84 25,000 311.00 (122,750) 294.80 (115,500) 302.97 (55,400) 621.49 (84,800) 426.17 135,250 393.98 245,900 348.79 2,590,700 - 2,602,800 -

• Includes options vested but not exercised as at March 31, 2022 : 35,250 (March 31, 2021: 57,150)

** Includes options exercised but not alloted as at March 31, 2022 : 13,500 (March 31, 2021: Nil)

b. Details of the cash settled share based payment plan of the Company:

On May 20, 2020, the Board approved “Strides Long Term Incentive Plan 2020” titled the LTIP 2020 (“”the Plan””). The Plan shall be in the form of Phantom Units. Each Phantom Unit, upon exercise, entitles the awardee a cash benefit equal to the Share Price on the date of exercise minus exercise price to be paid to the Company. The vesting period of these units is one year. The units must be exercised within a period of twelve months from the date of vesting. The Company has granted Nil options (Previous year: 72,966) under this scheme during the current year.

During the current year, Employee compensation cost reversal of 19.80 Million (cost for the year ended March 31, 2021: 52.80 Million) relating to the Plan have been recorded in the Statement of Profit and Loss on account of final settlement of the Phantom units granted previous year.

Note No. 43 Employee Benefits Plans

Defined contribution plan

The Company makes contributions to provident fund and employee state insurance schemes which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll cost to fund the benefits. The Company recognised 143.81 Million for provident fund contributions, 2.06 Million for employee state insurance scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plan

The Company offers gratuity benefits, a defined employee benefit scheme to its employees.

Composition of the plan assets

The fund is managed by LIC, the fund manager. The details of composition of plan assets managed by the fund manager is not available with the Company. However, the said funds are subject to Market risk (such as interest risk, investment risk, etc.).

The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk.

Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

The principal assumptions used for the purposes of the actuarial valuations were as follows:

Particulars	Valuation as at 31-Mar-22 31-Mar-21
Discount rate(s) Expected rate(s) of salary increase Mortality Rate Retirement age(years)	6.91% 6.58% 10.00% 10.00% As per IALM (2012-14) ultimate 58years 58years

Amounts recognised in total comprehensive income in respect of these defined benefit plans are as follows:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Service cost: Current service cost Net interest expense	51.53 17.11	42.12 11.89
Components of defned beneft costs recognised in statement ofproft and loss	68.64	54.01
Remeasurement on the net defned beneft liability: Return on plan assets [excluding amounts included in net interest expense] (excess) / short Actuarial losses arising from changes in demographic assumptions Actuarial losses arising from changes in fnancial assumptions Actuarial losses arisingfrom experience adjustments	(1.57) 7.22 (11.45) 8.31	3.74 13.56 (4.76) 10.81
Components of defned beneft costs recognised in other comprehensive income	2.51	23.35
Total	71.15	77.36

The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’ line item in the statement of profit and loss. The remeasurement of the net defined benefit liability is included in other comprehensive income.

The amount included in the balance sheet arising from the entity’s obligation in respect of its

defined benefit plans is as follows:

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Present value of funded defned beneft obligation Fair value of plan assets Funded status Present value of unfunded defned beneft obligation	464.87 (130.19)	397.94 (126.49)
	334.68 -	271.45 11.32
Net liability arising from defned beneft obligation	334.68	282.77

Movements in the present value of the defined benefit obligation are as follows:

Movements in the present value of the defned beneft obligation are as	follows:	follows:
	`In Million
Particulars	Year ended 31-Mar-22 31-Mar-21 409.26 343.38 2.76 - 51.53 42.12 25.43 20.63 (11.45) (4.76) 8.31 10.81 7.22 13.56 (28.19) (16.48) 464.87 409.26
	31-Mar-22	31-Mar-21
Opening defned beneft obligation (less) on account of acquisitions / transfers Expenses recognised in statement of proft and loss Current service cost Interest cost Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in fnancial assumptions Actuarial gains and losses arising from experience adjustments Actuarial gains and losses arising from demographic assumption Beneftspaid	409.26 2.76 51.53 25.43 (11.45) 8.31 7.22 (28.19)	343.38 - 42.12 20.63 (4.76) 10.81 13.56 (16.48)
Closing defned beneft obligation	464.87	409.26

Annual Report 2021-22 | 281

280 |

Strides Pharma Science Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Movements in the fair value of the plan assets are as follows:

Movements in the fair value of the plan assets are as follows:
	`In Million
Particulars	Year ended
	31-Mar-22	31-Mar-21
Opening fair value of plan assets Remeasurement gain (loss): Return on plan assets (excluding amounts included in net interest expense) Contributions from the employer Actuarial gain/(loss) on plan assets Beneftspaid	126.49 8.32 22.00 1.57 (28.19)	136.43 8.73 - (3.74) (14.93)
Closing fair value ofplan assets	130.19	126.49

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

If the discount rate increases (decrease) by 1%, the defined benefit obligation would be 434.30 Million ( 499.52 Million) as at March 31, 2022.

If the expected salary growth increases (decrease) by 1%, the defined benefit obligation would be 490.31 Million ( 440.52 Million) as at March 31, 2022.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There has been no change in the process used by the Company to manage its risks from prior periods.

Expected future cash outflows towards the plan are as follows-

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Financial Year	Amount
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 to 2031-32	49.17 44.15 43.31 46.55 55.03 218.56

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 44

Related party transactions : List of related parties

Relationship	Name
Wholly owned subsidiaries	Direct Holding Arco Lab Private Limited, India Strides Arcolab International Limited, UK Strides Pharma Asia Pte Limited, Singapore Strides Pharma International Limited, Cyprus SVADS Holdings SA, Switzerland Vivimed Life Sciences Private Limited, India Step down subsidiaries Altima Innovations Inc, USA Arrow Life Sciences (Malaysia) Sdn. Bhd., Malaysia Arrow Pharma (Private) Limited, Srilanka (Upto September 9, 2021) Arrow Pharma Life Inc., Philippines Philipines (Upto September 13, 2021) Arrow Pharma Pte Limited, Singapore Generic Partners (Canada) Inc., Canada (Upto October 12 2021) Generic Partners UK Limited, UK Generic Partners (International) Pte. Ltd, Singapore (Upto June 1,2021) Generic Partners (R&D) Pte. Ltd, Singapore (Upto June 1, 2021) Pharmapar Inc, Canada (from June 30, 2021) Shasun Pharma Solutions Inc, USA Stabilis Pharma Inc, USA Stelis Biopharma (Malaysia) Sdn Bhd, Malaysia Strides CIS Limited, Cyprus Strides LifeSciences Limited, Nigeria Strides Netherlands BV, Netherlands Strides Nordic ApS, Nordic Strides Pharma (Cyprus) Limited, Cyprus Strides Pharma Global (UK) Limited, UK Strides Pharma Global Pte Limited, Singapore Strides Pharma Inc, USA Strides Pharma (UK) Limited, UK Strides Pharma Canada Inc, Canada Strides Pharma Science Pty Ltd, Australia Strides Vivimed Pte Limited, Singapore (Upto June 1, 2021) Vensun Pharmaceuticals Inc,USA
Other Subsidiaries:	Direct Holding: Step down subsidiaries

Apollo Life Sciences Holdings Proprietary Limited, South Africa (51.76%) Beltapharm, SpA, Italy (97.94%) Eris Pharma GmbH, Germany Fairmed Healthcare AG, Switzerland Fairmed Healthcare GmbH, Germany Pharmapar Inc, Canada (80%) (Upto June 29, 2021) Strides Pharma (SA) Pty Limited, South Africa (60%) Strides Shasun Latina SA De CV, Mexico (80%) Trinity Pharma Proprietary Limited, South Africa (51.76%) Universal Corporation Limited, Kenya (51%) Trusts: Strides Foundation Trust, India

Annual Report 2021-22 | 283

282 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Relationship Name Joint Ventures (JV) Sihuan Strides (HK) Ltd, Hongkong Associates Aponia Laboratories Inc, USA Biolexis Private Limited, India Juno OTC Inc, Canada (with effect from May 31, 2019 to June 14, 2021) Regional Bio Equivalence Centre S.C., Ethiopia Stelis Biopharma Limited, India,(Formely known as Stelis Biopharma Private Limited, India) Stelis Pte. Ltd, Singapore Strides Consumer Private Limited, India Stelis Biopharma LLC, US(till January 12, 2022) Strides Consumer LLC, USA Strides Global Consumer Healthcare Limited, UK

Director and Key Mr. Arun Kumar, Chairman and Non-Executive Director Management Personnel Dr. R Ananthanarayanan, Managing Director & CEO

Mr. Badree Komandur, Executive Director- Finance & Group CFO Mr. Deepak Vaidya, Non-Executive Director Mr. Bharat D Shah, Independent Director Mr. S.Sridhar, Independent Director

Dr. Kausalya Santhanam, Independent Director Mr. Homi Rustam Khusrokhan, Independent Director Ms. Manjula Ramamurthy, Company Secretary

Enterprises owned or Alivira Animal Health Limited, India significantly influenced Atma Projects, India by directors, key Aurore Life Sciences Private Limited, India management personnel and their relatives Aurore Pharmaceuticals Private Limited Chayadeep Properties Private Limited, India Karuna Business Solutions LLP

Naari Pharma Private Limited

Shasun Enterprises LLP(formerly Known as Devendra Estates LLP) SeQuent Research Limited, India (upto September 8, 2020) Solara Active Pharma Sciences Limited, India Steriscience Specialties Private Limited, India Tenshi Kaizen Private Limited, India

Tenshi Life Sciences Private Limited, India

Tenshi Pharmaceuticals Private Limited (formerly known as Sovizen Life Sciences Private Limited, India and Steriscience Private Limted, India)

Velbiom Proboitics Private Limited, India (formerly Tenshi Life Care Private Limited, India)

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Related party closing balances

==> picture [495 x 61] intentionally omitted <==

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

` In Million
Enterprises owned
Wholly Owned Other Associates / Directors /KMP/ or significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP directors or KMP or influenced by
Particulars their relatives
----- End of picture text -----

	As at 31- Mar-22 As at 31-Mar- 21	As at 31- Mar-22 As at 31-Mar- 21	As at 31- Mar-22 As at 31-Mar- 21	As at 31- Mar-22 As at 31-Mar- 21	As at 31-Mar- 22 As at 31-Mar- 21
Balance of (trade payables) net of advance paid : 1 Atma Projects 2 Arco Lab Private Limited 3 Aurore Life Sciences Private Limited 4 Aurore Pharmaceuticals Private Limited 5 Beltapharm S.p.A. 6 Chayadeep Properties Private Limited 7 Shasun Enterprises LLP (formerly Devendra Estates LLP) 8 Fairmed Healthcare AG 9 Fair-Med Healthcare Gmbh 10 Strides Consumer Private Limited 11 Strides Pharma (Cyprus) Limited 12 Strides Pharma Inc. 13 Strides Pharma Global Pte Limited 14 Solara Active Pharma Sciences Limited 15 Stelis Biopharma Limited 16 Strides Lifesciences Limited 17 Trinity Pharma (Pty) Ltd 18 Universal Corporation Limited 19 Vivimed Life Sciences Private Limited 20 Strides Pharma (UK) Limited, UK Balance of trade receivables (net of advance received): 1 Alivira Animal Health Limited 2 Arrow Pharma Pte Limited 3 Arco Lab Private Limited 4 Beltapharm S.p.A. 5 Fairmed Healthcare AG 6 Naari Pharma Private Limited 7 Sihuan Strides HK Limited 8 Strides Pharma (UK) Limited, UK 9 Strides Pharma Canada Inc., 10 Strides Netherlands B.V 11 Strides Shasun Latina SA De CV 12 Strides South Africa Pty Ltd 13 Solara Active Pharma Sciences Limited	- - (27.41) (94.18) - - - - - - - - - - - - - - - - - (4.11) (395.30) (104.10) (125.19) (77.59) - - - - (0.22) - - - - - (12.24) (39.76) (65.48) (35.05) - - - 4.39 2.48 (6.24) - - - - - - - - 1,974.16 589.01 1.79 21.63 152.11 44.01 - - - - - -	- - - - - - - - (0.13) (3.90) - - - - (4.09) (0.04) (61.94) (22.45) - - - - - - - - - - - - - - (1.12) - (12.16) (17.49) - - - - - - - - - - 1.11 1.13 487.67 - - - - - - - - - - - 2.69 2.59 89.47 30.23 - -	- - - - - - - - - - - - - - - - - - (0.22) (1.20) - - - - - - - - (0.73) - - - - - - - - - - - - - - - - - - - - - - - 37.03 35.69 - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	(16.98) (8.19) - - (202.24) (161.70) (144.40) (23.75) - - (2.44) (3.86) - (0.28) - - - - - - - - - - - - (1,105.28) (1,593.58) - - - - - - - - - - - - - 1.18 - - - - - - - - 0.01 0.01 - - - - - - - - - - - - 8.21 11.24

Annual Report 2021-22 | 285

284 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [495 x 61] intentionally omitted <==

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

` In Million
Enterprises owned
Wholly Owned Other Associates / Directors /KMP/ or significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP directors or KMP or influenced by
Particulars their relatives
----- End of picture text -----

		As at	As at	As at	As at	As at	As at	As at	As at	As at	As at
		31-	31-Mar-	31-	31-Mar-	31-	31-Mar-	31-	31-Mar-	31-Mar-	31-Mar-
		Mar-22	21	Mar-22	21	Mar-22	21	Mar-22	21	22	21
Balance of trade receivables
(net of advance received):
1	Strides Pharma Global Pte	8,844.29	4,651.60	-	-	-	-	-	-	-	-
	Limited
2	Strides Nordic Aps	25.52	-	-	-	-	-	-	-	-	-
3	Stelis Biopharma Limited	-	-	-	-	7.61	0.02	-	-	-	-
4	Tenshi Kaizen Private Limited	-	-	-	-	-	-	-	-	3.78	-
5	Tenshi Life Sciences Private	-	-	-	-	-	-	-	-	0.06	5.81
	Limited
6	Trinity Pharma (Pty) Ltd	-	-	43.95	-	-	-	-	-	-	-
7	Strides Consumer Private Limited	-	-	-	-	12.68	11.38	-	-	-	-
8	Strides Global Consumer	-	-	-	-	0.04	1.57	-	-	-	-
	Healthcare Limited
9	Strides Consumer LLC	-	-	-	-	0.04	9.27	-	-	-	-
10	Strides Pharma Inc.	0.38	-	-	-	-	-	-	-	-	-
11	Universal Corporation Limited	-	-	39.72	5.28	-	-	-	-	-	-
12	Vivimed Life Sciences Private	34.61	297.54	-	-	-	-	-	-	-	-
	Limited
13	Strides Pharma (Cyprus) Limited	27.83	(91.64)	-	-	-	-	-	-	-	-
14	Fairmed Healthcare AG	-	-	-	-	-	311.22	-	-	-	-
Dividend Receivable
1	Strides Pharma Asia Pte Limited	-	124.63	-	-	-	-	-	-	-	-
Loan Receivable
1	Strides Consumer Private Limited	-	-	-	-	30.00	30.00	-	-	-	-
2	Vivimed Life Sciences Private	1,216.09	822.21	-	-	-	-	-	-	-	-
	Limited
Balance of Deposit paid
1	Atma Projects	-	-	-	-	-	-	-	-	69.96	69.96
2	Chayadeep Properties Private	-	-	-	-	-	-	-	-	21.88	33.23
	Limited
Balance of deposits received
1	Solara Active Pharma Sciences	-	-	-	-	-	-	-	-	(7.20)	(7.20)
	Limited
Other fnancial assets (liabilities)
and other assets (liabilities)
1	Arrow Pharma (Private) Limited,	-	0.09	-	-	-	-	-	-	-	-
	Sri Lanka
2	Beltapharm S.p.A.	-	-	1.90	0.31	-	-	-	-	-	-
3	Stelis Biopharma Limited	-	-	-	-	6.00	(7.31)	-	-	-	-
4	Steriscience Specialities Private	-	-	-	-	-	-	-	-	0.00	0.00
	Limited
5	Strides Consumer Private Limited	-	-	-	-	22.47	12.32	-	-	-	-
6	Strides Pharma Asia Pte Limited	14.91	7.68	-	-	-	-	-	-	-	-
7	Strides Pharma (Cyprus) Limited	1.54	5.37	-	-	-	-	-	-	-	-
8	Strides Pharma Canada Inc.,	0.45	(66.58)	-	-	-	-	-	-	-	-
9	Strides CIS Limited	(30.86)	(29.79)	-	-	-	-	-	-	-	-
10	Strides Pharma Global Pte	251.89	50.07	-	-	-	-	-	-	-	-
	Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [495 x 61] intentionally omitted <==

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

` In Million
Enterprises owned
Wholly Owned Other Associates / Directors /KMP/ or significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP directors or KMP or influenced by
Particulars their relatives
----- End of picture text -----

11 Velbiom Proboitics Private Limited 12 Strides Pharma (UK) Limited, UK 13 Strides Pharma Inc. 14 Universal Corporation Limited 15 Vivimed Life Sciences Private Limited 18 Mr. Arun Kumar 17 Dr. R Ananthanarayanan 16 Mr. Badree Komandur 19 Mr. Deepak Vaidya 20 Dr. Kausalya Santhanam 21 Mr. S.Sridhar 22 Mr. Homi Rustam Khusrokhan 23 Mr. Bharat D Shah	- - 1.84 (3.19) (7.30) - - - 104.08 7.68 - - - - - - - - - - - - - - - -	- - - - - - 25.67 31.65 - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - -	- - 5.86 5.86 - - - - - - - - - - - - - - - - (0.20) (1.00) - - 111.90 (18.00) - - - (3.75) - - (0.10) (1.19) - - (0.10) (1.19) - - (0.10) (1.19) - - (0.10) (1.19) - - (0.10) (1.19) - -

Related party transactions

==> picture [496 x 70] intentionally omitted <==

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

` In Million
Enterprises
owned or
Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Nature of Transactions relatives
----- End of picture text -----

	Year Ended 31-Mar- 22 Year Ended 31Mar21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Yea r Ended 31- Mar-22 Year Ended 31- Mar-21
Sales of materials/services 1 Steriscience Specialities Private Ltd 2 Stelis Biopharma Limited 3 Strides Pharma (UK) Limited, UK 4 Strides Pharma (Cyprus) Limited 5 Strides Pharma Global Pte Limited 6 Strides Pharma Inc. 7 Strides Pharma Canada Inc., 8 Solara Active Pharma Sciences Limited 9 Tenshi Kaizen Private Limited 10 Tenshi Pharmaceuticals Private Limited 11 Trinity Pharma (Pty) Ltd 12 Universal Corporation Limited 13 Fairmed Healthcare AG 14 Juno OTC Inc	- - - - 2,389.40 1,574.92 479.78 242.67 11,168.70 9,925.33 0.36 7.28 1.76 20.53 - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - 48.33 - 45.91 17.02 270.49 379.51 - -	- - 0.01 - - - - - - - - - - - - - - - - - - - - - - - 6.38 3.19	- - - - - - - - - - - - - - - - - - - - - - - - - - - -	0.08 - - - - - - - - - - - - - 0.01 - - 0.01 0.05 0.03 - - - - - - - -

Annual Report 2021-22 | 287

286 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [496 x 70] intentionally omitted <==

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

` In Million
Enterprises
owned or
Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Nature of Transactions relatives
----- End of picture text -----

	Year Ended 31-Mar- 22 Year Ended 31Mar21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Yea r Ended 31- Mar-22 Year Ended 31- Mar-21
15 Strides Consumer LLC 16 SVADS holdings SA 17 Strides Netherlands B.V 18 Strides Nordic Aps 19 Strides South Africa Pty Ltd 20 Sihuan Strides HK Limited 21 Steriscience Specialties Private Ltd 22 Strides Shasun Latina SA De CV 23 Vivimed Life Sciences Private Limited 24 Strides Consumer Private Limited Sale of intellectual property rights 1 Strides Pharma Global Pte Limited Purchase / (returns) of intellectual property rights 1 Strides Pharma Canada Inc., 2 Stelis Biopharma Limited Sale of investment 1 Strides Global Consumer Healthcare Limited Sale of property, plant and equipment 1 Karuna Business Solutions LLP 2 Stelis Biopharma Limited 3 Strides Pharma Global Pte Limited 4 Strides Pharma Inc. 5 Tenshi Kaizen Private Limited 6 Vivimed Life Sciences Private Limited 7 Universal Corporation Limited Interest income 1 Strides Consumer Private Limited 2 Vivimed Life Sciences Private Limited Guarantee commission income 1 Stelis Biopharma Limited 2 Strides Pharma Asia Pte Limited 3 Strides Pharma Global Pte Limited 4 Strides Pharma Inc. 5 Strides Pharma (UK) Limited, UK 6 Vivimed Life Sciences Private Limited	- - - 47.32 138.59 45.10 25.72 - - - - - - - - - 19.93 456.34 - - 498.52 363.47 (66.55) 66.55 - - - - - - - - - 4.77 - 51.39 - - 0.05 - - - - - 103.02 93.47 - - - 124.50 65.98 63.83 13.12 14.04 4.16 10.03 2.47 2.70	- - - - - - - - 56.84 30.63 - - - - - 2.60 - - - - - - - - - - - - - - - - - - - - - - - - 0.30 - - - - - - - - - - - - - - - - -	- 7.76 - - - - - - - - - 35.81 - - - - - - 8.12 10.46 - - - - (7.31) 7.31 - 162.80 - - - 2.93 - - - - - - - - - - 3.00 3.00 - - 52.16 41.32 - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - 0.02 - - - - - - - - - - - - - - 630.00 - - - - - - - 3.20 - - - - - - - - - - - - - - - - - - - - -

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [496 x 70] intentionally omitted <==

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

` In Million
Enterprises
owned or
Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Nature of Transactions relatives
----- End of picture text -----

	Year Ended 31-Mar- 22 Year Ended 31Mar21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Yea r Ended 31- Mar-22 Year Ended 31- Mar-21
Support service income 1 Stelis Biopharma Limited 2 Strides Consumer Private Limited 3 Strides Global Consumer Healthcare Limited 4 Strides Consumer LLC 5 Strides Pharma (Cyprus) Limited 5 Strides Pharma Global Pte Limited 6 Universal Corporation Limited Rental income from operating leases 1 Arco Lab Private Limited 2 Strides Consumer Private Limited 3 Solara Active Pharma Sciences Limited 4 Vivimed Life Sciences Private Limited Dividend income 1 Strides Pharma Asia Pte Limited Purchase of materials/services 1 Aurore Life Sciences Private Limited 2 Aurore Pharmaceuticals Private Limited 3 Beltapharm S.p.A. 4 SeQuent Research Limited 5 Strides Pharma Global Pte Limited 6 Strides Pharma Inc. 7 Stelis Biopharma Limited 8 Solara Active Pharma Sciences Limited 9 Universal Corporation Limited 10 Vivimed Life Sciences Private Limited 11 Tenshi Kaizen Private Limited Support service expenses 1 Arco Lab Private Limited 2 Strides Consumer Private Limited Purchase of assets 1 Strides Pharma Global Pte Limited 2 Vivimed Life Sciences Private Limited	- - - - - - - - 26.80 23.67 15.49 11.80 - - 1.66 38.26 - - - - 0.06 0.03 - 353.70 - - - - - - - - 55.96 77.73 183.95 - - - - - - - 25.70 102.60 - - 526.59 569.43 - - 2.21 21.01 0.18 3.08	- - - - - - - - - - - - 15.00 - - - - - - - - - - - - - - - - 1.62 - - - - - - - - - - - 10.26 - - - - - - - - - - - -	2.10 - 1.20 1.20 0.45 0.45 0.45 0.45 - - - - - - - - 0.89 0.96 - - - - - - - - - - - - - - - - - - 46.03 - - - - - - - - - - - 1.19 1.08 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - 15.18 15.24 - - - - 244.98 295.79 336.29 28.16 - - - 0.08 - - - - - - 1,054.95 2,252.71 - - - - - 0.12 - - - - - - - -

Annual Report 2021-22 | 289

288 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [496 x 69] intentionally omitted <==

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

` In Million
Enterprises
owned or
Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Nature of Transactions relatives
----- End of picture text -----

		Year Ended 31-Mar- 22	Year Ended 31Mar21	Year Ended 31- Mar-22	Year Ended 31- Mar-21	Year Ended 31- Mar-22	Year Ended 31- Mar-21	Year Ended 31- Mar-22	Year Ended 31- Mar-21	Yea r Ended 31- Mar-22	Year Ended 31- Mar-21
Reimbursement of expenses incurred by
1	Aurore Pharmaceuticals Private	-	-	-	-	-	-	-	-	0.03	-
	Limited
2	Aurore Life Sciences Private	-	-	-	-	-	-	-	-	0.04	0.09
	Limited
3	Beltapharm S.p.A.	-	-	0.96	-	-	-	-	-	-	-
4	Chayadeep Properties Private	-	-	-	-	-	-	-	-	1.22	-
	Limited
5	Fairmed Healthcare AG	-	-	4.05	1.15	-	-	-	-	-	-
6	Fairmed Healthcare Gmbh	-	-	42.19	22.45	-	-	-	-	-	-
7	Stelis Biopharma Limited	-	-	-	-	0.00	-	-	-	-	-
8	Strides Consumer Private Limited	-	-	-	-	0.63	-	-	-	-	-
9	Strides Lifesciences Limited	0.22	0.34	-	-	-	-	-	-	-	-
10	Strides Netherlands B.V	2.89	-	-	-	-	-	-	-	-	-
11	Strides Pharma (UK) Limited, UK	29.25	38.68	-	-	-	-	-	-	-	-
12	Strides Pharma (Cyprus) Limited	(0.76)	1.79	-	-	-	-	-	-	-	-
13	Strides Pharma Global Pte	22.02	0.19	-	-	-	-	-	-	-	-
	Limited
14	Solara Active Pharma Sciences	-	-	-	-	-	-	-	-	98.13	167.12
	Limited
15	Strides Pharma Inc.	129.37	3.85	-	-	-	-	-	-	-	-
16	Trinity Pharma (Pty) Ltd	-	-	1.12	-	-	-	-	-	-	-
17	Vivimed Life Sciences Private	(0.29)	-	-	-	-	-	-	-	-	-
	Limited
18	Universal Corporation Limited	-	-	0.82	0.61	-	-	-	-	-	-
Reimbursement of expenses incurred
on	behalf of
1	Arco Lab Private Limited	16.41	32.90	-	-	-	-	-	-	-	-
2	Fairmed Healthcare AG	-	-	1.49	2.12	-	-	-	-	-	-
3	Solara Active Pharma Sciences	-	-	-	-	-	-	-	-	0.01	23.82
	Limited
4	Stelis Biopharma Limited	-	-	-	-	3.96	2.42	-	-	-	-
5	Strides Consumer Private Limited	-	-	-	-	13.68	20.61	-	-	-	-
6	Strides Pharma Canada Inc.,	0.44	-	-	-	-	-	-	-	-	-
7	Strides Pharma Global Pte	188.14	252.40	-	-	-	-	-	-	-	-
	Limited
8	Strides Pharma (Cyprus) Limited	6.81	4.42	-	-	-	-	-	-	-	-
9	Strides Pharma Asia Pte Limited	14.91	7.68	-	-	-	-	-	-	-	-
10	Strides Pharma Inc.	6.11	17.82	-	-	-	-	-	-	-	-
11	Strides Pharma (UK) Limited, UK	16.09	41.43	-	-	-	-	-	-	-	-
12	Steriscience Specialties Private	-	-	-	-	-	-	-	-	0.00	0.08
	Ltd
13	Tenshi Life Sciences Private	-	-	-	-	-	-	-	-	-	13.41
	Limited
14	Universal Corporation Limited	-	-	5.38	10.63	-	-	-	-	-	-
15	Vivimed Life Sciences Private	19.54	38.39	-	-	-	-	-	-	-	-
	Limited

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

==> picture [496 x 69] intentionally omitted <==

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

` In Million
Enterprises
owned or
Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Nature of Transactions relatives
----- End of picture text -----

	Year Ended 31-Mar- 22 Year Ended 31Mar21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21	Year Ended 31- Mar-22 Year Ended 31- Mar-21 Yea r Ended 31- Mar-22 Year Ended 31- Mar-21 - - 90.32 85.21 - - 37.91 40.65 - - 2.27 3.32 - - - - - - - - - - - - - - - - - - - - - - 21.50 26.60 - 6.27 - - 88.85 177.32 - - 46.05 41.26 - - 7.63 4.72 - - 0.24 0.93 - - 0.05 0.19 - - 1.30 1.70 - - 0.80 0.50 - - 1.30 1.70 - - 1.30 1.70 - - 1.30 1.70 - - 1.20 1.70 - - - 1.00 - - - 1.00 - - - 1.00 - - - 1.00 - - - 1.00 - - - 1.00 - -
Lease Payments 1 Atma Projects 2 Chayadeep Properties Private Limited 3 Shasun Enterprises LLP(formerly Devendra Estates LLP) 4 Strides Pharma Global Pte Limited Loans / advances given / repaid by Company 1 Vivimed Life Sciences Private Limited Loans / advances taken by Company / repaid to Company 1 Vivimed Life Sciences Private Limited Investments during the year 1 Stelis Biopharma Limited 2 Arco Lab Private Limited Donation Paid 1 Strides Foundation Trust Short term employee benefts paid to (Refer note (i) below) 1 Mr. Arun Kumar 2 Dr. R Ananthanarayanan 3 Mr. Badree Komandur 4 Ms. Manjula Ramamurthy Employee stock option expenses 1 Mr. Badree Komandur 2 Ms. Manjula Ramamurthy Sitting fees paid 1 Dr. Kausalya Santhanam 2 Mr. Arun Kumar 3 Mr. Deepak Vaidya 4 Mr. S.Sridhar 5 Mr. Homi Rustam Khusrokhan 6 Mr. Bharat D Shah Remuneration to Non-executive directors 1 Mr. Deepak Vaidya 2 Mr. Arun Kumar 3 Dr. Kausalya Santhanam 4 Mr. S.Sridhar 5 Mr. Homi Rustam Khusrokhan 6 Mr. Bharat D Shah	- - - - - - 15.50 11.83 463.88 451.46 70.00 355.06 - - 51.13 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - 2,369.95 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Note

• i. The compensation excludes gratuity and compensated absences which cannot be separately identified from the composite amount advised by the actuary.

Annual Report 2021-22 | 291

290 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 45 Lease arrangements

A. The Company as lessor:

Leasing arrangement

The Company has entered into operating lease arrangements for lease of factory land and building for a term ranging from 4 to 18 years with non-cancellable lease period of 4 to 8 years. Details relating to these assets and minimum lease rentals receivable are as follows:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Gross carrying amount of assets leased Accumulated depreciation Future minimum lease income: Not later than one year Later than one year but not later than 5 years Later than 5years	134.05 5.89 16.04 - -	960.24 281.89 27.98 16.04 -
Total	16.04	44.02

Note No. 46 Earnings per share

Note No. 46 Earnings per share	Note No. 46 Earnings per share	Note No. 46 Earnings per share
Particulars For the year ended 31-Mar-22 For the year ended 31-Mar-21 Proft attributable to the equity holders of the Company 1,801.88 782.40 Weighted average number of equity shares used for computation of basic earnings per share 89,747,525 89,609,605 Add : Effect of potentially dilutive equity shares - Employee Stock option 38,941 99,798 Weighted average number of equity shares used for computation of diluted earnings per share 89,786,466 89,709,403 Earnings per share Basic 20.08 8.73 Diluted 20.07 8.72
Proft attributable to the equity holders of the Company Weighted average number of equity shares used for computation of basic earnings per share Add : Effect of potentially dilutive equity shares - Employee Stock option Weighted average number of equity shares used for computation of diluted earnings per share Earnings per share Basic Diluted	1,801.88 89,747,525 38,941	782.40 89,609,605 99,798
	89,786,466 20.08 20.07	89,709,403 8.73 8.72

Note No. 47 Financial instruments

47.1 Categories of financial instruments

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Financial assets: Measured at amortised cost (a) Cash and bank balances (b) Loans receivable (c) Trade receivables (d) Receivables from related parties (e) Dividend receivable from subsidiaries (f) Other fnancial assets at amortised cost Measured at FVTOCI (a) Fair value of derivatives designated in a cash fow hedge Financial liabilities: Measured at FVTOCI (a) Derivative fnancial liabilities Measured at FVTPL (a) Cash settled share based payments Measured at amortised cost (a) Borrowings (b) Lease Liabilities (c) Security deposit (d) Trade payables (e) Unclaimed dividends (f) Payable to subsidiaries (g)Other fnancial liabilities	156.84 1,476.03 12,963.19 344.75 - 276.73 9.08 3.84 33.00 12,446.32 392.87 6.58 6,437.97 10.91 30.86 247.83	733.19 1,102.46 8,216.65 110.58 124.63 65.02 64.54 - 52.80 8,789.38 385.21 39.59 7,352.01 21.68 32.81 283.14

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

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).

Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a

recurring basis

Some of the Company's financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).

			`In Million
Financial assets / fnancial liabilities	Fair value as at	Fair value hierarchy	Valuation technique(s) and key input(s)
	31-Mar-22 31-Mar-21
Financial assets: Foreign currency forward contracts designated in hedge accounting relationships (FVTOCI) Financial liabilities: Foreign currency forward contracts designated in hedge accounting relationships (FVTOCI) Cash settled share based payments (FVTPL)	9.08 64.54 3.84 - 33.00 52.80	Level 2 Level 2 Level 3	The fair value of forward foreign contracts are determined using spot and forward exchange rates at the balance sheet date. The fair value of forward foreign contracts are determined using forward exchange rates at the balance sheet date. The fair value of cash settled share based payments is determined using Black Scholes model. Signifcant input is underlying value of the equity shares of the company.

47.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

Except as detailed in the following table, the Company considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements at amortized cost will reasonably approximate their fair values.

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
	Carrying amount Fair value	Carrying amount Fair value
Financial assets Loans Security deposit Financial liabilities Borrowings Lease liabilities Securitydeposit	1,246.09 1,246.09 186.92 203.19 12,446.32 12,464.95 392.87 392.87 6.58 7.20	852.21 852.21 214.59 214.98 8,789.38 8,817.90 385.21 385.21 39.59 40.83

47.3 Financial risk management

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivatives financial instruments to mitigate foreign exchange related risk exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes maybe undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

Annual Report 2021-22 | 293

292 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Foreign currency risk management

The Company is exposed to foreign exchange risk due to:

• debt availed in foreign currency

• net investments in subsidiaries and joint ventures that are in foreign currencies

• exposure arising from transactions relating to purchases, revenues, expenses, etc., to be settled (within and outside the group) in currencies other than the functional currency (i.e Indian rupees)

Exchange rate exposures are managed within approved policy parameters by utilising forward foreign exchange contracts.

47.3.1 Forward foreign exchange contracts

• It is the policy of the Company to enter into forward foreign exchange contracts to cover the following: a. repayments of specific foreign currency borrowings.

• b. forecast sales transactions

The following table details the forward foreign currency contracts outstanding at the end of the reporting period:

Contracts designated in a cash flow hedge

|Outstanding contracts|Underlying
Exposure|Average
exchange rate
(in**)**|**Foreign**<br>**currency**<br>**( In Million)**|**Nominal**<br>**amounts**<br>**(**In Million)|Fair value
assets/
(liabilities)
(`In Million)|
|---|---|---|---|---|---|
|As at March 31, 2022
Sell AUD
Less than 3 months
3 to 6 months
6 to 12 months|Forecast sales|57.64
57.13
59.23|6.00
6.00
12.00|345.84
342.78
704.40|348.86
338.94
710.46|
|Total||||1,393.02|1,398.26|
|As at March 31, 2021
Sell USD
Less than 3 months
Sell GBP
6 to 12 months|Forecast sales
Forecast sales|77.01
106.67|15.00
6.00|1,155.28
640.04|1,208.78
651.08|
|Total||||1,795.32|1,859.86|

The line-items in the balance sheet that include the above hedging instruments are - Other financial assets

(Refer note 10(ii)) & Other current financial liabilities (Refer note 21(ii))

The details of unhedged foreign currency exposure as reported to key management personnel of the Company are as follows:

Amounts In Million

Receivable/(payable) / cash and bank/(borrowings)	As at 31-Mar-22	As at 31-Mar-21 in foreign currency in` 19.15 1,063.91 6.37 641.86 3.53 302.72 1.45 84.22 0.00 0.17 - - - - 0.04 0.01 (17.24) (1,261.55) - - (0.00) (0.09)
Exposure to the currency	in foreign currency in`
AUD GBP EUR CAD SGD AED CNY LKR USD ZAR CHF	50.27 2,853.78 19.64 1,957.83 10.19 855.58 2.80 169.99 0.05 2.95 - 0.10 - 0.06 0.02 - (13.79) (1,052.00) (0.08) (0.43) - (0.05)

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

47.3.2 Foreign currency sensitivity analysis

Financial instruments affected by changes in foreign exchange rates include loans in foreign currencies and receivables/payables from/to subsidiaries and joint ventures. The Company considers US Dollar, Australian Dollar and the Euro to be principal currencies which require monitoring and risk mitigation. The Company is exposed to volatility in other currencies including the Great Britain Pounds (GBP), United states Dollar (USD), Euro (EUR), Canadian Dollar (CAD) and the Australian Dollar (AUD). The impact on account of 5% appreciation / depreciation in the exchange rate of the above foreign currencies against ` is given below:

depreciation in the exchange rate of the above fo	reign currencies against`is gi	ven below:
		`In Million
Particulars	Increase / (decrease) in equity	Increase / (decrease) in proft
	31-Mar-22 31-Mar-21	31-Mar-22 31-Mar-21
Appreciation in the USD Depreciation in the USD Appreciation in the EUR Depreciation in the EUR Appreciation in the AUD Depreciation in the AUD Appreciation in the CAD Depreciation in the CAD Appreciation in the GBP Depreciation in the GBP	(34.22) (39.30) 34.22 39.30 27.83 9.85 (27.83) (9.85) 93.00 34.61 (93.00) (34.61) 5.53 2.74 (5.53) (2.74) 63.68 21.24 (63.68) (21.24)	(34.22) (41.04) 34.22 41.04 27.83 9.85 (27.83) (9.85) 92.83 34.61 (92.83) (34.61) 5.53 2.74 (5.53) (2.74) 63.68 20.88 (63.68) (20.88)

The impact on profit has been arrived at by applying the effects of appreciation / deprecation effects of currency on the net position (Assets in foreign currency - Liabilities in foreign currency) in the respective currencies.

For the purposes of the above table, it is assumed that the carrying value of the financial assets and liabilities as at the end of the respective financial years remains constant thereafter. The exchange rate considered for the sensitivity analysis is the exchange rate prevalent as at each year end.

The sensitivity analysis might not be representative of inherent foreign exchange risk due to the fact that the foreign exposure at the end of the reporting period might not reflect the exposure during the year.

47.4 Interest rate risk management

Interest rate risk arises from borrowings. Debt issued at variable rates exposes the Company to cash flow risk. Debt issued at fixed rate exposes the Company to fair value risk.

47.4.1 Interest rate sensitivity analysis

Financial instruments affected by interest rate changes include secured long term loans from banks and secured long term loans from others. The impact of a 1% change in interest rates on the profit of an annual period will be ` 124.65 Million (March 31, 2021: 88.18 Million) assuming the loans at each year end remain constant during the respective years. This computation does not involve a revaluation of the fair value of loans as a consequence of changes in interest rates. The computation also assumes that an increase in interest rates on floating rate liabilities will not necessarily involve an increase in interest rates on floating rate financial assets.

47.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk to the company primarily arises from trade receivables. Credit risk also arises from cash and cash equivalents, financial instruments and deposits with banks and financial institutions and other financial assets.

The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has an internal mechanism of determining the credit rating of the customers and setting credit limits. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

Annual Report 2021-22 | 295

294 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

The Company is no significantly exposed to geographical credit risk as the counterparties operate across various countries across the globe.

Credit risk on cash and cash equivalent and derivatives is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates as given in the provision matrix. The Provision matrix at the end of reporting period as follows:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Ageing of Receivable	Gross carrying amount as at 31-Mar-22	Allowance for credit loss as at 31-Mar-22
Not Due Less than 180 Days 180-360 Days 360-540 Days 540-720 Days Over 720 Days	5,741.66 4,467.18 2,614.59 244.07 30.06 46.55	36.86 24.54 20.92 51.83 3.23 43.54
Total	13,144.11	180.92

==> picture [495 x 16] intentionally omitted <==

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

` In Million
----- End of picture text -----

Ageing of Receivable	Gross carrying amount as at 31-Mar-21	Allowance for credit loss as at 31-Mar-21
Not Due Less than 180 Days 180-360 Days 360-540 Days 540-720 Days Over 720 Days	5,993.41 1,997.90 132.71 67.95 65.46 207.64	28.05 38.68 1.45 26.98 59.82 93.44
Total	8,465.07	248.42

Movement in expected credit loss allowance

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	31-Mar-22	31-Mar-21
Balance at the beginning of the year Written off during the year Movement in expected credit loss allowance on trade receivables calculated at lifetime expected credit losses	248.42 (105.85) 38.35	170.65 (115.00) 192.77
Total	180.92	248.42

47.6 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, mediumterm and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial assets and liabilities. A portion of the company’s surplus cash is retained as investments in Liquid Mutual Funds to fund short term requirements.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

47.6.1 Liquidity analysis for non-derivative liabilities

The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

==> picture [492 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Financial liabilities	Due within(years) Total Carrying amount 1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5
Bank and other borrowings - As on March 31, 2022 - As on March 31, 2021 Interest payable on borrowings - As on March 31, 2022 - As on March 31, 2021 Lease liabilities - As on March 31, 2022 - As on March 31, 2021 Trade and other payable not in borrowings - As on March 31, 2022 - As on March 31, 2021	11,199.37 479.38 478.96 307.24 - -12,464.95 12,446.32 7,313.99 439.31 405.74 405.31 253.55 - 8,817.90 8,789.38 10.04 - - - - - 10.04 10.04 5.20 - - - - - 5.20 5.20 128.29 59.61 64.23 67.36 49.48 207.05 576.02 392.87 153.97 137.67 69.67 57.75 24.44 6.11 449.61 385.21 6,750.53 - - - - 7.20 6,757.73 6,757.11 7,952.28 - - - - 40.83 7,993.11 7,991.87

47.6.2 Liquidity analysis for derivative financial instruments-

The following table details the Company’s liquidity analysis for its derivative financial instruments. The table has been drawn up based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. Outflows are represented in brackets in table below:

==> picture [495 x 15] intentionally omitted <==

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

` In Million
----- End of picture text -----

Particulars	Total	less than 3 months	3 to 6 months	“6 months to 1year”	1-5 years	5+ years
March 31, 2022 Net settled: - foreign exchange forward contracts	5.24	3.02	(3.84)	6.06	-	-
Total	5.24	3.02	(3.84)	6.06	-	-
March 31, 2021 Net settled: - foreign exchange forward contracts	64.54	53.50	-	11.04	-	-
Total	64.54	53.50	-	11.04	-	-

47.7 COVID-19

In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The actual impact of this global health pandemic may be different from that which has been estimated, as the COVID -19 situation evolves in India and globally. The Company has adopted measures to curb the spread of infection in order to protect the health of its employees and ensure business continuity with minimal disruption. The Company has considered available internal and external information while finalizing various estimates in relation to its financial statements upto the date of approval of the financial statements by the Board of Directors. The Company will continue to closely monitor any material changes to future economic conditions. However, the pandemic did not have any material impact on the financial statements for the year ended March 31, 2022.

Annual Report 2021-22 | 297

296 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 48 Capital management

The Company manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 20 offset by cash and bank balances) and total equity.

The Company reviews the capital structure on a quarterly basis to ensure that it is in compliance with the required covenants. The Company has a target gearing ratio of 1:1 determined as the proportion of net debt to total equity. The gearing ratio at March 31, 2022 is 0.36.

The Company is not subject to any externally imposed capital requirements.

48.1 Gearing ratio

The gearing ratio at end of the reporting period was as follows.

` In Million

Particulars	31-Mar-22	31-Mar-21
Debt (i) Less: Cash and bank balances Net Debt (A) Total Equity (B) Net debt to equity ratio(A/B)	12,446.32 (156.84) 12,289.48 34,066.83 0.36	8,789.38 (733.19) 8,056.19 32,480.58 0.25

(i) Debt is defined as Non current borrowings and current borrowings.

Note No. 49 Additional Regulatory Information

49.1. Title deeds of Immovable Properties not held in the name of the company

` In Million

Particulars	Description of item of property	Gross carrying value	Title deeds held in the name of:	Whether title deed holder is a prpmoter, director of relative/ director or employee ofpromoter/director	Property held since when date	Reason for not being held in the name of the company
Property, plant and equipment Property, plant and equipment Property, plant and equipment	Building Buidling Freehold Land	3.55 428.42 0.81	Arun Kumar Shasun Pharmaceuticals Ltd. Grandix Pharmaceauticals Limited	Yes No No	09-05-1995 19-11-2015 31-12-2009	The apartment is inside a housing cooperative society. The Company has made an application for transferring it to its name which is pending with the society. These properties are in the name of the erstwhile Companies which were merged with the Company under section 391 to 394 of the Companies Act 1956 in terms of the approval of the Honorable High Courts of judicature. The Company is in the process of transferring the title deeds of such properties in its name.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

` In Million

						`In Million
Particulars	Description of item of property	Gross carrying value	Title deeds held in the name of:	Whether title deed holder is a prpmoter, director of relative/ director or employee ofpromoter/director	Property held since when date	Reason for not being held in the name of the company
Property, plant and equipment Property, plant and equipment Investment property Investment property	Freehold Land Freehold Land Freehold Land Buidling	11.76 48.69 22.20 183.83	Shasun Chemicals and Drugs Ltd. Shasun Pharmaceuticals Ltd. Shasun Chemicals and Drugs Ltd. Shasun Chemicals and Drugs Ltd.	No No No No	01-04-2016 19-11-2015 01-04-2016 01-04-2016	These properties are in the name of the erstwhile Companies which were merged with the Company under section 391 to 394 of the Companies Act 1956 in terms of the approval of the Honorable High Courts of judicature. The Company is in the process of transferring the title deeds of such properties in its name.

49.2. Operating Ratios

` In Million

Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%	Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%	Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%	Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%	Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%	Ratios Numerator Denominator 31-Mar-22 31-Mar-21 % of variance Current ratio (in times) Total current assets Total current liabilities - Current Maturities of long term borrowings 1.10 1.12 -2% Debt-Equity ratio (in times)1 Debt = Non current borrowings + Current borrowings Total equity = Shareholder's Equity 0.37 0.27 35% Debt service coverage ratio (in times) Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Debt service = Interest and lease payments + Principal repayments 2.88 2.82 2% Return on equity ratio (in %)2 Proft for the year less Preference dividend (if any) Average total equity 5% 2% 122% Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7% Trade receivables turnover ratio (in times)3 Revenue from operations Average trade receivables 1.87 2.51 -26% Trade payables turnover ratio (in times) Purchases + Other expenses Average trade payable 2.10 2.67 -21% Net capital turnover ratio (in times) Revenue from operations Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) 10.68 9.72 10% Net proft ratio (in %)4 Proft for the year Total Income 9% 4% 113% Return on capital employed (in %)5 Proft before tax and fnance costs Capital employed = Net worth + Total Debt - Deferred tax assets 2% 4% -52% Return on investment (in %)6 Realised and unrealised gain Average investment during the year 0.39% 0.02% 1522%
Current ratio (in times) Debt-Equity ratio (in times)1 Debt service coverage ratio (in times) Return on equity ratio (in %)2 Inventory turnover ratio Trade receivables turnover ratio (in times)3 Trade payables turnover ratio (in times) Net capital turnover ratio (in times) Net proft ratio (in %)4 Return on capital employed (in %)5 Return on investment (in %)6	Total current assets Debt = Non current borrowings + Current borrowings Earning for Debt Service = Net Proft after taxes + Depreciation + Finance cost Proft for the year less Preference dividend (if any) Cost of Goods Sold Revenue from operations Purchases + Other expenses Revenue from operations Proft for the year Proft before tax and fnance costs Realised and unrealised gain	Total current liabilities - Current Maturities of long term borrowings Total equity = Shareholder's Equity Debt service = Interest and lease payments + Principal repayments Average total equity Average inventory Average trade receivables Average trade payable Average working capital (i.e. Total current assets less Total current liabilities) (excluding current maturities of long term borrowing) Total Income Capital employed = Net worth + Total Debt - Deferred tax assets Average investment during the year	1.10 0.37 2.88 5% 1.83 1.87 2.10 10.68 9% 2% 0.39%	1.12 0.27 2.82 2% 1.72 2.51 2.67 9.72 4% 4% 0.02%	-2% 35% 2% 122% 7% -26% -21% 10% 113% -52% 1522%

1. Increase in total debt on account of capital expenditure and working capital requirements.

2. Increase in profit after tax on account of tax refunds of prior years.

3. Trade receivable turnover ratio has reduced due to increase in Daily sales outstanding (DSO) days.

4. Increase in profit after tax on account of tax refunds of prior years.

5. Return on capital employed reduced due to reduction in operating profits.

6. Return on investment has increased due to higher returns from treasury investments.

Annual Report 2021-22 | 299

298 |

Strides Pharma Science Limited

Notes forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 50 Other Statutory Information

• (a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

• (b) The Company does not have any transactions with companies struck off.

• (c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

Notes

forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 53 The Board of Directors of the Company on February 10, 2022 have approved the Scheme of Amalgamation u/s 230 to 232 of the Companies Act, 2013, between Strides Pharma Science Limited and Vivimed Lifesciences Private Limited with an appointed date of April 1, 2022. The Scheme of Amalgamation is yet to be filed with National Company Law Tribunal(NCLT) for approval. The Scheme was originally approved by the Board of Directors at their meeting held on October 29, 2020. However, the Company did not proceed with the Scheme at that time and the current Scheme supersedes the original Scheme.

Note No. 54 The previous year's figures have been re-grouped/ reclassified, where necessary to confirm to

current year's classification.

• (d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

• (e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that

• (i) 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

• (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

• (f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

• (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

• (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

The accompanying notes are an integral part of the standalone financial statements As per our report of even date attached

for and on behalf of Board of Directors of Strides Pharma Science Limited

for B S R & Co. LLP

Chartered Accountants Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta

Badree Komandur

Mr. Arun Kumar

Executive Chairperson and Managing Director Executive Director- Finance & Group CFO DIN : 00084845 DIN: 07803242

Partner

Membership Number: 060573

Manjula R.

Bengaluru, May 24, 2022

Company Secretary Membership Number: A30515

• (g) The Company has not done any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

Note No. 51 Transfer Pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. Since the law required existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international as well as domestic transactions entered into with the associated enterprise during the financial year and expects such records to be in existence as required by law. The Management is of the opinion that its international as well as domestic transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for tax.

Note No. 52 During the year ended March 31, 2022, no material foreseeable loss (March 31, 2021: Nil) was incurred for any long-term contract including derivative contracts.

Annual Report 2021-22 | 301

300 |

Strides Pharma Science Limited

Equity History of the Company

Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)	Date Particulars Number of Shares Issued Cumulative Number of Shares Issued Face Value per share (J) Equity Share Capital issued (J) Equity Share Capital (Cumulative) (J)
28-Jun-90 31-Jan-91 29-Mar-91 31-Mar-92 28-Jan-93 11-Mar-94 11-Apr-94 30-Apr-94 01-Sep-94 01-Sep-94 22-Jan-97 06-Dec-97 13-May-99 13-May-99 13-Jul-99 24-Aug-99 24-Aug-99 24-Aug-99 22-Sep-99 07-Dec-99 27-Jun-01 24-Jan-02 14-Feb-02 11-Dec-03 02-Feb-05	Subscribers to Memorandum of Association Preferential Issue Preferential Issue Preferential Issue Preferential Issue Preferential Issue Reclassifcation of nominal value of shares from100 each to10 each Issue of Bonus Shares Preferential Issue Allotment pursuant to exercise of stock options Preferential Issue Preferential Issue Preferential Issue on conversion of Fully Convertible Debentures Preferential Issue Preferential Issue Allotment to erstwhile shareholders of Remed Laboratories (India) Limited consequent to its amalgamation with the Company (3 shares of Strides for 2 shares of Remed Laboratories) Preferential Issue Allotment to erstwhile shareholders of Global Remedies Private Limited consequent to its acquisition by the Company (1 share of Strides for every 4 shares of Global Remedies) Preferential Issue Allotment to erstwhile shareholders of Plama Laboratories Limited consequent to its amalgamation with the Company (1 share of Strides for every 8 shares of Plama Laboratories) Preferential Issue on conversion of Cumulative Convertible Preference Shares Allotment to erstwhile shareholders of Bombay Drugs & Pharma Limited consequent to its amalgamation with the Company. (1 share of Strides for every 20 shares of Bombay Drugs & Pharma Limited) Preferential Issue Preferential Issue on conversion of warrants Preferential Issue	50 4,010 1,940 4,000 15,000 20 - 12,51,000 11,60,300 22,950 9,18,980 4,00,000 43,63,636 2,21,000 5,16,500 12,00,000 17,02,000 50,000 8,50,000 7,12,500 31,44,445 2,10,955 1,37,14,286 30,68,875 11,96,662	50 4,060 6,000 10,000 25,000 25,020 2,50,200 15,01,200 26,61,500 26,84,450 36,03,430 40,03,430 83,67,066 85,88,066 91,04,566 1,03,04,566 1,20,06,566 1,20,56,566 1,29,06,566 1,36,19,066 1,67,63,511 1,69,74,466 3,06,88,752 3,37,57,627 3,49,54,289	100 100 100 100 100 100 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10	5,000 4,01,000 1,94,000 4,00,000 15,00,000 2,000 - 1,25,10,000 1,16,03,000 2,29,500 91,89,800 40,00,000 4,36,36,360 22,10,000 51,65,000 1,20,00,000 1,70,20,000 5,00,000 85,00,000 71,25,000 3,14,44,450 21,09,550 13,71,42,860 3,06,88,750 1,19,66,620	5,000 4,06,000 6,00,000 10,00,000 25,00,000 25,02,000 25,02,000 1,50,12,000 2,66,15,000 2,68,44,500 3,60,34,300 4,00,34,300 8,36,70,660 8,58,80,660 9,10,45,660 10,30,45,660 12,00,65,660 12,05,65,660 12,90,65,660 13,61,90,660 16,76,35,110 16,97,44,660 30,68,87,520 33,75,76,270 34,95,42,890

05-Jul-07 08-Mar-08 17-Jun-08 13 Aug 2009 to 03 Dec 2009 19-Jan-10 19-Jan-10 24-Feb-10 15-Mar-10 22 April 10 to 24 Aug 10 26-Aug-10 01-Oct-10 4 Oct 10 to 16 Nov 10 24 Feb 11 to 15 Oct 11 4 Feb 12 to 19 Oct 12 12 Feb 13 to 18 Dec 13 24 Feb 15 to 22 May 15 20-Nov-15 23-Dec-15 07-Mar-16 05-May-16 28-Oct-16 11-Feb-17	Preferential Issue on conversion of warrants Preferential Issue on conversion of Convertible Debentures Preferential Issue on conversion of Convertible Debentures Allotment pursuant to exercise of stock options Allotment to erstwhile shareholders of Grandix Pharmaceuticals Limited consequent to its amalgamation with the Company. (100 shares of Strides for every 213 shares of Grandix Pharma) Allotment to erstwhile shareholders of Grandix Laboratories Limited consequent to its amalgamation with the Company. (100 shares of Strides for every 23 shares of Grandix Laboratories Limited) Preferential Issue on conversion of warrants Preferential Issue on conversion of warrants Allotment pursuant to exercise of stock options Preferential Issue on conversion of warrants Allotment under QIP 2010 Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Upon Amalgamation of Shasun Pharmaceuticals with Strides (5 shares of Strides for every 16 shares of Shasun) Allotment under QIP 2015 Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options	50,000 40,00,000 10,45,725 1,65,600 12,822 702 25,60,000 4,20,000 4,92,000 32,20,000 1,07,42,533 81,000 6,35,500 4,23,550 7,61,900 60,000 2,10,17,329 86,28,028 75,000 20,000 2,717 4,311	3,50,04,289 3,90,04,289 4,00,50,014 4,02,15,614 4,02,28,436 4,02,29,138 4,27,89,138 4,32,09,138 4,37,01,138 4,69,21,138 5,76,63,671 5,77,44,671 5,83,80,171 5,88,03,721 5,95,65,621 5,96,25,621 8,06,42,950 8,92,70,978 8,93,45,978 8,93,65,978 8,93,68,695 8,93,73,006	10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10	5,00,000 4,00,00,000 1,04,57,250 16,56,000 1,28,220 7,020 2,56,00,000 42,00,000 49,20,000 3,22,00,000 10,74,25,330 8,10,000 63,55,000 42,35,500 76,19,000 6,00,000 21,01,73,290 8,62,80,280 7,50,000 2,00,000 27,170 43,110	35,00,42,890 39,00,42,890 40,05,00,140 40,21,56,140 40,22,84,360 40,22,91,380 42,78,91,380 43,20,91,380 43,70,11,380 46,92,11,380 57,66,36,710 57,74,46,710 58,38,01,710 58,80,37,210 59,56,56,210 59,62,56,210 80,64,29,500 89,27,09,780 89,34,59,780 89,36,59,780 89,36,86,950 89,37,30,060

Annual Report 2021-22 | 303

302 |

Equity History of the Company

Date	Particulars	Number of Shares Issued	Cumulative Number of Shares Issued	Face Value per share (J)	Equity Share Capital issued (J)	Equity Share Capital (Cumulative) (J)
16-Mar-17 10-Jun-17 20-Jul-17 31-Oct-17 09-Feb-18 06-Apr-18 27-Dec-18 25-Oct-19 30-Jan-20 20-May-20 05-Aug-20 31-Aug-20 29-Oct-20 04-Feb-21 12-Mar-21 31-Mar-21 27-May-21 30-Jun-21 06-Aug-21 06-Sep-21 01-Nov-21 28-Jan-22 18-Apr-22	Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options Allotment pursuant to exercise of stock options	50,000 50,000 20,000 5,654 1,375 48,878 563 3,350 12,638 2,200 25,600 32,400 9,750 10,400 15,150 20,000 12,450 23,750 5,550 54,700 5,300 7,500 13,500	8,94,23,006 8,94,73,006 8,94,93,006 8,94,98,660 8,95,00,035 8,95,48,913 8,95,49,476 8,95,52,826 8,95,65,464 8,95,67,664 8,95,93,264 8,96,25,664 8,96,35,414 8,96,45,814 8,96,60,964 8,96,80,964 8,96,93,414 8,97,17,164 8,97,22,714 8,97,77,414 8,97,82,714 8,97,90,214 8,98,03,714	10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10	5,00,000 5,00,000 2,00,000 56,540 13,750 4,88,780 5,630 33,500 1,26,380 22,000 2,56,000 3,24,000 97,500 1,04,000 1,51,500 2,00,000 1,24,500 2,37,500 55,500 5,47,000 53,000 75,000 1,35,000	89,42,30,060 89,47,30,060 89,49,30,060 89,49,86,600 89,50,00,350 89,54,89,130 89,54,94,760 89,55,28,260 89,56,54,640 89,56,76,640 89,59,32,640 89,62,56,640 89,63,54,140 89,64,58,140 89,66,09,640 89,68,09,640 89,69,34,140 89,71,71,640 89,72,27,140 89,77,74,140 89,78,27,140 89,79,02,140 89,80,37,140

==> picture [596 x 842] intentionally omitted <==

304 |

Strides Pharma Science Limited

CIN: L24230MH1990PLC057062

REGISTERED OFFICE

201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703, India Tel.: +91 22 2789 2924/2789 3199 Email: corpcomm@strides.com Website: www.strides.com CIN: L24230MH1990PLC057062

CORPORATE OFFICE

Bannerghatta Road, Bengaluru - 560 076, India Tel.: +91 80 6784 0000/ 6784 0290