Strides Pharma Science Limited

Annual Report 2021-22

Moving ahead
with conviction
Financial highlights Non-financial highlights Moving ahead with conviction
₹30,946 Million 12,000 tonnes At Strides, there have been For faster recovery in the US, we have been
Revenue CO2 emission reduced by de-risking the business from its acute-only strategy
purchasing solar power many learnings derived from to a well-diversified player. In other regulated
markets (ORM), including Europe, Australia, and
a muted performance in other parts of the world, we aim to continue the
FY 2021-22. Building on these
₹43 Million
growth momentum by focusing on new customer

₹24.03 Million
acquisitions and expanding into new geographies
perspectives, we implemented through strategic partnerships and portfolio
EBITDA several course correction expansion. Over the years, we have steadily
CSR expenditure measures and are on track for increased our wallet share in emerging markets.
We will continue to strengthen our presence in
a full recovery in FY 2022-23. these regions through our cost leadership and
selective portfolio expansion.
We identified areas of concern
and increased our focus on While focusing on business growth, we are
committed to creating sustainable value for all our
strengthening our fundamentals stakeholders. Together, we are striding ahead with
to face future challenges and a greater confidence in our ability to bounce back,
make sustainable progress and usher a brighter
dynamic external environment.
Contents future for the Company.

Corporate Overview Statutory Reports

About us 2 Management Discussion
and Analysis 38
Business model 4
Board’s Report 47
Geographic footprint 6
Corporate Governance Report 72
Performance Overview Business Responsibility Report 95
Chairman and MD’s message 8
CFO’s review 10
Financial Statements
Consolidated Financials 106
Growth Enablers Standalone Financials 215
Strategic priorities 12
Equity history of the Company 302
Scale and portfolio 14
Consistent innovation 18
Advanced technologies 20
Quality and compliance 22

Sustainability at Strides
Environment 24
Social 26
Governance 34

Corporate information 36
 Strides Pharma Science Limited

Corporate Overview
About us

Catering to diverse Business verticals

Regulated markets Emerging markets
pharmaceutical needs • Presence across the US, European
Union, UK, and South Africa
• Focused markets of Africa with a
portfolio of branded generics
• Strategic supplier in Australia to the • Catering to donor-funded
Over the last three decades, we have evolved into a leading largest generic company, Arrotex
under a preferred supply agreement
programmes

global pharmaceutical company, manufacturing niche • Seven dedicated facilities

• One dedicated facility in Kenya

generic formulations in various dosage forms catering to a • WHO Pre-qualified Manufacturing

facility in Nairobi, Kenya
wide customer base across regulated and emerging markets.
Revenue share
by regions 74% 26%
Our products are available in a wide range of dosage FY 2021-22 36% 38% FY 2021-22 10% 16%
forms, including Tablets, Soft Gelatin Capsules, Hard
Capsules, Sachets, Liquids, Nasal Spray, Topicals, and
Controlled Substances. Our people strengthen our 80% 20%
mission to deliver high compliance and quality. Over
the years, we have invested in continuous research
FY 2020-21 32% 48% FY 2020-21 8% 12%
and development and infrastructure to lay a solid
foundation for the future.
US Other regulated Institutional Africa
markets (ORMs)

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.

02 | Annual Report 2021-22 | 03

 Strides Pharma Science Limited

Corporate Overview
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 Value created for stakeholders

Financial capital Filing and Strong Shareholders and investors

approvals compliance
We intend to continue creating sustainable value through We are committed to delivering
efficient capital allocation Proactive filings Best-in-class, competitive, profitable and sustainable
for regulated and technology-led returns
I69,759 Million I23,833 Million I13,335 Million emerging markets
with a consistent
compliance
Employees
Balance sheet size Equity capital Net debt
track record of
We constantly strive towards providing
approvals
equal opportunities, ensuring capability
building, training, and providing a safe

Value creation process

Manufacturing assets Paperless Global coverage work environment to all our employees.
operations
We have world-class manufacturing assets located in India [Bengaluru (two), Fungibility of
Patients and end users
Puducherry and Chennai], the US, Singapore, Italy, and Kenya. Robust platforms development
for Product Lifecycle dossiers across We have built strong go-to-market
8 5 Management from
initiation to filing
targeted markets capabilities through our own front-end
across key markets as we are committed
Manufacturing plants US FDA-approved track record of to improving the lives of patients.
across 4 continents plants approvals
Communities
Integrated go-to-market approach Improving the lives of people is integral
to our philosophy. We continue to bring
Development of intellectual property
Speed to market Diversified formats change to people’s lives in and around
Our strong expertise in Research and Development (R&D) is one of our plant locations through our
Right first-time filings Oral solids, Oral
our key driving forces. We have built a large portfolio for our global community interventions. As of the
for faster approvals and liquids, Topicals –
market through best-in-class R&D capabilities in formulations, end of FY 2021-22, we have reached
go-to-market liquids, creams and
combined with knowledge of the regulatory environment. 12+ villages through the implementation
ointments, nasals,
of our various social development
274 GLOBAL R&D CENTRE
soft gels, sachets,
programmes.
and modified release
Portfolio selection dosage formats
IN INDIA
Cumulative ANDAs filed Planet
Focus on
difficult-to-develop and We are focused on reducing our
differentiated products environmental footprint by implementing
Human resources robust processes and following best
practices in waste management, energy
Our talent pool is one of our most important assets. Our strong Scale and Consistent efficiency and climate change.
technical acumen and scientific capability are results of their portfolio innovation
collective efforts. This helps us deliver high compliance and Business
quality. enablers
Information Quality and
4,200+ technologies compliance

Global workforce

04 | Annual Report 2021-22 | 05

 Strides Pharma Science Limited

Corporate Overview
Geographic footprint

Fortifying presence across markets Approvals

Our extensive global footprint enables us to deliver products

US Food and Drug Administration Brazilian Health Surveillance
to 100+ countries. We are now focusing on strengthening our ¿ (US FDA) ² Agency (ANVISA)
presence in existing markets with new product launches from
UK Medicines and Healthcare Pharmaceuticals and Medical
the approved portfolio while also expanding into new regions in à products Regulatory Agency © Devices Agency, Japan (PMDA)
regulated and emerging markets. (MHRA)
Health Sciences Authority,
Ù World Health Organization (WHO) ž Singapore (HSA)

100+ 8 è
Therapeutic Goods Administration,
Australia (TGA)
Countries where State-of-the-art
we operate manufacturing
facilities

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

¿ Ã Ù è ²
Bengaluru, India (1)

è
Milan, Italy Bengaluru, India (2)
New York, United States
Ã
¿
Chennai, India

¿
Nairobi, Kenya
Ù Puducherry, India

¿ Ã è ² ©

Singapore

¿ è ž
Regulated Emerging

06 | Annual Report 2021-22 | 07

 Strides Pharma Science Limited

Performance Overview
Chairman and MD’s Message

Focused on restoring growth

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.
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 there. We have plans to launch business growth. In Africa, Strides over the years. I reassure
in an executive role, and we around 20 products per year we are focusing on scaling up you that we will continue to
are committed to restoring the from this fiscal. Our new domain our business by expanding our uphold our core values of integrity,
Company to its former health. We additions, which include controlled geographic footprint in the region collaboration, and efficiency
are working towards strengthening substances, hormones, and and ensuring better penetration of while creating sustainable value
our fundamentals and developing nasal sprays, will help accelerate existing markets through portfolio for all stakeholders. I am excited
strategies in response to the portfolio differentiation, thereby expansion. about the journey ahead, with
changing pharmaceutical driving growth. the Board’s guidance and the
landscape. Road ahead advice and collaboration of
Scaling up ORMs my management colleagues,
As we gear up for a faster recovery While the operating environment
employees, partners, customers,
in FY 2022-23, we have devised Other regulated markets or ORM continues to evolve and
and all of our stakeholders.
a clear strategy that focuses is an important part of our growth is ambiguous, we remain
on our global product supply. strategy, fuelled by our frontend in optimistic and confident about
We implemented a number of key markets and IP-led B2B delivering significant value to our
capability-building programmes to partnerships in Europe, Australia, stakeholders in the coming years.
Warm regards
Dear Shareholders, help us improve our performance. and other parts of the world. We have made several changes
Arun
Furthermore, we have established In these markets, our R&D to our businesses, focusing on
I begin with the hope that this organisation to stay resilient and distinct strategic priorities for investments will fast-track growth growth, improving cash flows, and
letter finds you and your loved focused on a sharp bounce back each key market. opportunities for the Rx and OTC debt reduction. In addition, the
ones at the top of your health to cushion the business and add portfolios, as several new products focus will be on efficient inventory
and spirits. In every way, the more value with our offerings. The US remains a key focus will be launched in FY 2022-23. management, improving capacity
global community, as well as market utilisation, and optimal capital
businesses, have waded through Making sound decisions Market and portfolio allocation, thereby reducing
We have seen improvement across expansion in emerging under-recoveries.
a sea of change during the last
We witnessed unusual price our businesses since Q4 FY 2022, markets
two years. With a sinister Covid
erosion and volume drops in including the recovery of our US We will also optimise our
wave re-emerging in the country Our emerging market business
the US, leading to a significant business. We are progressing manufacturing network for better
at the beginning of the year, includes African and institutional
contraction in our gross margins. further by integrating Chestnut outcomes and aggressively focus
widespread supply disruptions, or access market verticals.
The other regulated markets Ridge operations in the US, which on cost and debt reduction. We
commodity price rises, and the The access market vertical has a
delivered tepid growth due to will help us achieve our target of plan to reduce our gross debt by
Russia-Ukraine conflict deepening, relatively lower margin, but it is
Covid-related disruptions. Our over $250 Million in revenue from more than `1,000 crores in
FY 2021-22 was a challenging critical to reducing
Emerging Markets business US operations in FY 2022-23. Given FY 2022-23, targeting Net Debt to
year for several sectors, and the under-recoveries at our
witnessed growth as the region that we have over 150 products EBITDA below 3x.
state of affairs was no different manufacturing sites, given the
was not significantly impacted approved, we should be able to see
for the pharmaceutical industry volumes. Our cost leadership
by the challenges peculiar to the sequential growth in the US, giving Finally, I would like to thank
and for Strides. That said, we have and selective product portfolio
regulated markets. us room to grow the business from everyone who has supported
made exemplary efforts as an expansion will drive institutional

08 | Annual Report 2021-22 | 09

 Strides Pharma Science Limited

Performance Overview
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 in poor ratios on the balance sheet. From a revenue standpoint, To sum up, the key priorities are as • Improve all metrics of we continue to work tirelessly to
highlighted that market behaviour For the first time, we reported we have set ourselves the US follows for the next year: profitability/efficiency/growth, rebuild the company. Long-term
continues to be very challenging, an operating PAT loss. While the revenue target of US$250 Million including superior ROCE by Q4 growth and profitability will be our
with price and supply chain reasons can be attributed to many driven by several new launches. • Daily governance and review FY 2023 focus going forward.
disruptions adding to downswing factors, we will be better prepared We have initiated many cost cadence is being strengthened
• Engage actively with all
risks. in the future for challenges to management programmes to gain to avoid surprises I thank all the internal and
investors and restore confidence
come. cost leadership in key molecules external stakeholders for reposing
• We are institutionalising through better demonstration of
FY 2021-22 has not met our and improve the gross margins. faith in our Company and look
all the important processes performance
expectations in terms of We have taken several corrective On the workforce cost front, forward to continued support.
implementing strong controls
performance across internal and actions, expected to reflect in we are focusing on right-sizing • Focus on launch of new
external parameters, with price our results H2 of FY 2022-23 the company and variable pay • Cost management – Revisit products from approved ANDAs
erosions, bloated cost structures, onwards. This includes measures programme to drive accountability. all costs and get back to and get back to historical gross
and long Cash to Cash (C2C) cycles on PEG (Profitability - Efficiency From an operational cost point of profitability margins Warm regards
resulting in negative operating - Growth). Seamless execution/ view, we are resetting the entire Badree
• Reset or exit some of the low • Balance sheet strengthening -
leverage/cash flows. Significant superior governance will enable it. cost base by reducing logistics
margin P&Ls, which do not Light balance sheet from
negative operating cash flows Consistency and sustainability will costs, enhancing governance and
positively impact our margins FY 2022-23
resulted in the ballooning of debt be the focus and will pave the way tightening control on costs. All this
and a downgrade in credit rating for debt reduction and cash flow will lead to the focus on absolute • Liquidity challenges need to Consistency and sustainability
by ICRA. We adopted several generation. I would like to dwell on EBITDA growth and steady build- be addressed during the year. will be our mantra as we address
liquidity measures, but the a few of the targets. up. The green shoots of all our Once growth returns, superior the issues of past and present, and
nosedive in performance resulted actions are visible as we get into operating leverage and working prepare ourselves for the future,
the new year with promise. capital efficiencies are the focus simultaneously. The conviction is
areas very high at this point of time as

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 Strides Pharma Science Limited

Growth enablers
Strategic priorities

Roadmap for accelerated recovery

Our newly formulated REACH stands for Respect for all human beings
three-year strategic road map and our environment, Empowerment of our teams,
Accountability that we all take, Customer focus, and GPS Pillars
called REACH, has been in play Health of our patients, which embodies our long-term
since last year, which enables goals and vision based on our ICE values. Improving
performance sustainably requires a clear purpose and
Global Product Supply (GPS) articulated strategy linked to performance targets Quality &
Enabling Cost Technology Environment,
Regulatory
to act as a key driver for our and capability-building objectives. Through REACH,
we have already launched various capability‑building Compliance
Growth Leadership Leadership Health & Safety

growth and add value to the programmes to move up the 45-degree zone with a
stakeholder experience. dual focus on performance and capability.

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.

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 Strides Pharma Science Limited

Growth enablers
Scale and portfolio

Broadening our customer base Stelis – An integrated global biopharmaceutical CDMO

Stelis began its journey as a Strides subsidiary and formats. Stelis is poised to be among the leading
As a global generic pharmaceutical company, we focus on have since evolved into a Global biopharmaceutical biologics CDMO players in the world due to its scale
expanding our portfolio and entering new geographies to reach contract development and manufacturing and capacity. Its world-class cGMP manufacturing
organisation (CDMO). facilities in Bengaluru, India, have proven expertise
more customers. We have achieved global scale while improving in microbial, mammalian, and other technology
operational efficiencies and maintaining momentum in product Stelis provides the full range of services from cell platforms, enabling it to provide high-quality
line technology transfer to clinical and commercial customer services.
launches across our core markets. manufacturing, including the ability to convert drug
substance into stable formulations with fill and finish

Key product approvals during FY 2021-22 CDMO division Product division

Through this division, Stelis provides a Biolexis, the product division of Stelis, is
Product Application complete spectrum of services from cell line developing a portfolio of leading products with
technology transfer to clinical and commercial low-cost, efficient processes. With its deep
An oral medication used for the treatment of high-risk adults with mild to manufacturing. Stelis operates three technical expertise, Biolexis is forming strong
Molnupriavir cutting-edge facilities with 900,000 square feet partnerships to commercialise high-quality
moderate COVID-19
of Process Development (PD) and manufacturing and affordable products. This positions us to
space for mammalian, microbial, and other capitalise on emerging opportunities.
Oseltamivir An oral medication used for the treatment of high-risk adults with mild to modalities.
Phosphate moderate COVID-19

For the treatment of acute, uncomplicated influenza A and B in patients

Stelis business model
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 • The first part of the CDMO contract typically includes the
technology transfer, process development, process scale,
Amantadine For the treatment of infection caused by various strains of influenza A virus. Manufacturing and execution of Performance Qualification (PPQ) batches.
Hydrochloride This is also indicated in the treatment of parkinsonism and drug-induced Services Agreements • Includes the base work required to secure the regulatory
Softgel Capsules extrapyramidal reactions (MSA) approval and, consequently, contract for manufacturing
• Typical revenue is $1-2m for drug products and $4-5m for
Used for the treatment and prevention of gout. It reduces inflammation which drug substance.
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). • 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 • Typically, the duration of CSA would be 3-5 years and is
Agreement(CSA) 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.

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 Strides Pharma Science Limited

Growth enablers
Scale and portfolio

• Insulin programmes continue to progress

FY 2021-22 updates for CDMO division • Revenue performance was impacted by high FY 2021-22 updates for products division according to plan as Stelis readies itself for a phase
unused facility costs as the operating cost included
• The CDMO business of Stelis Biopharma delivered Biosimilar pipeline 3 study for Insulin Glargine in 2022
the cost of the new unit 3 facility, which currently
H1.321.27 Million in revenues through MSA.
does not generate commercial revenues. • STLP001 (PTH) is nearing European Medicine • Development on track for the other pre-clinical
Our MSAs in FY 2021-22 will drive a secured
Agency (EMA) approval as Stelis completes the programmes
commercial services agreement (CSA) of • The Company reported a negative EBITDA,
facility inspection (EUGMP), which was one of
H6,762 Million starting FY 2023-24 adjusting for the unabsorbed costs (Drug In-licensed AmbiVax-CTM opportunity
the prerequisites for acceptance. The approval
Substance block and unit 3 facility); else, it would
• We received significant new orders for the is expected within 2022, and Stelis has already • AmbiVax-CTM is a SARS-CoV-2-Fc fusion protein
have delivered a strong EBITDA performance.
drug product facility with continued traction partnered/licensed this product to different vaccine developed by Akston Biosciences, United
for cartridges, high-speed vial fill-finish, and national champions across 20 countries. States.
lyophilised vials.
• The vaccine has been exclusively licensed to
• In 2022, the Company was audited by EMA, and Stelis/Biolexis for 140+ global countries, including
in H1CY2022, it had inspections scheduled for India, South-East Asia, LATAM, GCC, and Africa.
USFDA and TGA, among others. 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.

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 Strides Pharma Science Limited

Growth enablers
Consistent innovation Improving R&D infrastructure and Road ahead
project management processes. Going forward, we are targeting 20+ new

Innovation-led growth We strengthened our digital and IT

infrastructure during the year by integrating the
product lifecycle management (PLM) software
launches per year across different geographies.
Our lean structure will facilitate this and enable
minimal R&D spend with significant productivity
with instruments to enable data storage improvement. We will focus on consolidating
and analysis. These processes have enabled our presence by developing limited competition
At Strides, we are driven by research and development paperless operations in our laboratories. products, leveraging our existing product
expertise and an innovation mindset that propel our ability We have enhanced our project management
portfolio to other geographies. Additionally, we
will aim to enhance our existing source security
to address emerging needs. This strength is reflected in our process by incorporating stage gate reviews and manufacturing robustness.
ability to successfully create our niche and differentiated and governance to ensure timely portfolio
delivery. In new product development during
product portfolio across dosage and technology platforms, FY 2021-22, we focused on difficult-to-make
supported by strong regulatory expertise. generics, enriching our basket of differentiated
products and ensuring portfolio maximisation,
wherein existing products were leveraged for
other geographies with minimum efforts.
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

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 Strides Pharma Science Limited

Growth enablers
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 Continued focus on Moving towards the Optimising supply chain Mastering the virtual audit Tech integrations at the
cybersecurity paperless lab newly acquired facility
The e-logbook kickstarted at the During the pandemic, there were We were among India’s first
beginning of ‘Path2Digital,’ is now During the pandemic, the Across our manufacturing plants, shortages of medicines, vaccines, companies to use smart glasses In this era, one of the big
being rolled out across plants pharmaceutical and healthcare analytical raw data sheets for and other healthcare consumables for virtual auditing. As virtual challenges in the case of any
and functions. The benefits of industries were among the main semi-finished and finished goods because many pharmaceutical auditing necessitates additional M&A is technology synergies
achieving 100% Right First Time targets for cyber attackers, and are completely digital. Electronic companies faced major supply skills, we trained key employees, and amalgamation of different
(RTF) are undeniably significant. they remain so today. As we lab notes (ELN) are commonly chain challenges. We plan to including plant quality personnel, technology platforms. Last
Even though adoption was difficult move towards the digital, we used in laboratories. The majority develop a digital control tower to to improve our virtual audit year with the acquisition of the
at first, this is now a pull factor for focus more on strengthening our of logbooks in the quality control provide the supply chain with true setup. Regulatory and client Chestnut Ridge plant in the USA,
manufacturing staff. cybersecurity capabilities. Our labs have been digitalised. A few digital fluency. Consequently, we auditors have praised the efforts we faced a similar challenge.
ecosystem is fully integrated more artifacts will be converted to will be able to perform accurate made in this regard at various Technology integration was done
The Manufacturing Execution with industry-leading cyber digital this year, moving us closer demand forecasting, supply manufacturing plants. in three phases – Lift and Shift,
Process (MES), which has gained security solutions. Aside from to paperless labs. planning, and optimal inventory Stabilise, and Enhance. While
traction over the last two years, having tools and systems, we also management. enhancement will continue to
was put in place to improve focused on employee awareness happen over a period of time,
efficiency. The objective is to make and judgment regarding cyber the technology operation has
it efficient before scaling it up to security across the organisation. considerably smoothened.
the point where MES is used to Cyber security training has been
manufacture most product types made mandatory for the entire
in our flagship plant. workforce. Phishing simulations
have improved employees’ ability
to differentiate between genuine
and malicious emails or links.

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 Strides Pharma Science Limited

Growth enablers
Quality and compliance

Elevating quality benchmarks

Quality benchmarks and
Ensuring high quality
regulatory compliance We have established an agenda for people,
processes, products, and technology to
remain our critical focus reinforce quality excellence across the
as the landscape continues organisation. We closely monitor the SOPs
in place to ensure consistent meeting of
to evolve in our core our quality culture objectives. During
markets. To this end, FY 2021-22, we undertook the following
initiatives:
we have automated our
manufacturing facilities to • Continued to maintain our track record
of regulatory approvals
a large extent to achieve • Engaged with external consultants for
greater accuracy, precision QMS assessment and improvements to
and global quality strengthen systems and processes for
greater maturity and compliance
standards. • 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
• 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

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 Strides Pharma Science Limited

Sustainability at Strides
Environment Environment management systems Water and waste management
ISO 14001:2015 is an internationally agreed standard Water management

Ensuring responsible
that sets out the requirements for an environmental
We have implemented a system to recycle
management system. It helps organisations
wastewater and increase the water table around
improve their environmental performance through
our plant sites through various methods, including

business practices
more efficient use of resources and waste reduction,
rainwater harvesting ponds. We strive towards
gaining a competitive advantage and the trust
conserving as much water as possible through
of stakeholders. Strides believes that ISO14001
recycling and reusing the water we use.
is a management tool to improve environmental
performance. Of our plants in India, 2 are already
Key interventions in FY 2021-22
Our sustainability approach We aim to achieve net-zero by implementing ISO 14001:2015 certified by NQA, and in the
• 1,00,903 KL of wastewater was treated by
measures to lower energy consumption, increase the coming years, there are plans to certify all the
goes beyond compliance use of renewable energy, reduce our carbon footprint, manufacturing sites to ISO 14001:2015 standards.
Wastewater Treatment Plants (WWTP) to reuse
it for garden/lawn/utilities inside plant premises
requirements, and we work recycle wastewater, minimise potable water
across all Indian sites
consumption, and focus on waste management, Energy consumption and renewable
towards bringing down among others. We conduct regular internal and energy • 21,060 KL of water was recycled from steam
the negative impact of our external audits to ensure compliance.
We understand how important efficient electricity
condensate and reused for steam generation at
KRSG and Puducherry
operations on the ecosystem. usage is, and we are moving towards more
sustainable forms of energy. We have invested • 16,138 KL rainwater was collected and recharged
We are driven by a passion in rooftop solar panels. Currently, we have an by us to improve the groundwater level in and
for solving unmet patient installed capacity of 340 KWp as cleaner sources around the plant across sites
of electricity generation are pivotal in our fight
needs across core markets against climate change. We generated 3,01,654 units Operational waste
by developing affordable and from the solar panels saving around 214 tonnes
We use the finest quality raw materials and
of carbon in FY 2021-22 alone while enabling the
complex or specialty generics in reduction of 12,000 tonnes of CO2 by utilising 17
implement a precautionary approach to minimise
waste/rejected batches to create safe, efficient, and
a sustainable manner. million units from buying green energy from solar
affordable medicines while adhering to the highest
power generators. We have plans to further reduce
compliance standards. We ensure the segregation of
fossil fuel consumption and our carbon footprint by
‘hazardous’ and ‘non-hazardous’ wastes at the source
investing 1,900 KWHp from solar energy across our
and store them separately. We verify that
various sites.
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

24 | Annual Report 2021-22 | 25

 Strides Pharma Science Limited

Sustainability at Strides
Social – People Health and safety
At Strides, we prioritise employee health and safety

Nurturing a diversified to ensure a conducive workplace for our people. Our

employee wellness initiatives include flexi-time for
exercise, medical insurance, flexible work hours/work

and talented workforce 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.

At Strides, we recognise that our employees are the driving force We conduct regular safety training and mock drills
behind our growth and success. Our vision is to create a working to ensure that employees are adequately aware of
contingency steps. Our health and safety approach
environment that promotes their well-being while ensuring that includes:
every employee is treated with dignity, respect, and equality.
• Safe working systems
With a global team of 4,000+ employees (including • Use of personal protective equipment Covid-19 care
temporary), we operate in a diverse and harmonious As a response to the pandemic, we undertook
• Emergency preparedness
workplace with an open and transparent culture. We several initiatives to support our people:
are dedicated to delivering a secure, productive, and
flexible environment for our employees and providing • Provided financial support to secure
them with unrivalled chances for personal and honourable living for families of deceased
professional development. employees due to Covid-19
• Facilitated in-house doctors for

2,647 372
tele-consultation of affected employees and
their families
• Maintained a coordinated approach among
Permanent Permanent women all site HRs and admin team to tackle any
employees employees case related to Covid-19
• Provided vaccination reimbursement

1,559
• Operationalised a Covid Task Force, which
meets on a weekly basis to monitor the
dynamic situation and take necessary steps
Temporary/Contractual to ensure employee health and safety
employees

26 | Annual Report 2021-22 | 27

 Strides Pharma Science Limited

Sustainability at Strides
Social – People Supervisory development programme this skill while also preparing employees to
manage organisational growth.
This was a specialised curriculum designed and
developed for self-managed teams at the Chandapura
Thus, to ensure the building of a resilient and
unit to raise participants’ awareness of the role
efficient organisation in dynamic markets following
of supervisors in organisations. The programme’s
Employee engagement objective is to prepare them to manage and
the pandemic, we worked to identify critical roles
and ensure robust talent management for those
engage team associates/members in a changing
We also ensure the well-being of our employees roles. Our talent management strategy is derived
environment. To provide them with a platform to
through active engagement. We have several based on many factors mainly:
develop supervisory skills for people management.
two-way communication platforms for employees to
express themselves, ask questions, and learn more • Current talent pool
about the organisation. We recognise the employees’
• Department-wise and role-wise proof of concepts
union for pursuing the interests of its members while
keeping an eye on overall business expectations. We
Ignite - Manager Essentials Programme • Future business plans and value-based analysis
currently have a management-recognised employee While the organisation was on the right track of roles
association representing ~20% of the workforce. with strong execution plans, great talent,
• Recommendations from leaders on developing
inspiring leaders, and well-defined processes,
their teams
it was critical to examine the missing
track. Investing in our managers’ capability The organisation is committed to develop its
development has become a top priority in the talent through multiple programmes, including
organisation’s capability roadmap. A continuous learning programme, pathway
Seek App Open House Meeting Amber App well-structured and well-thought-out design programme and future leader programme. We
This is for bringing in greater This is a two-way Amber was onboarded as an AI with a blended learning approach that includes strive to do the best to keep our employees
awareness and engagement communication channel tool to understand employee a mix of online learning modalities as well as happy and motivated through our rewards
around quality. Through SEEK where the common concerns sentiment and reach out to live facilitated sessions to promote self- and and recognition system, which is crucial for
the employees are introduced and issues among the employees at various tenure reflective learning among managers. This organisational success. Some of our recognition
to the concept and issues employees are discussed. milestones. It also gives data initiative was piloted among 43 managers programmes include:
around quality. It provides an The employees can raise their of disengaged employees. at our R&D centre, with the goal of creating
interactive platform to express concerns, give suggestions engaged and high-performing teams. This Strides recognition programme
views and opinions. and express their grievances. course is divided into three tracks: Foundation,
V&B Champion (Individual Award)
Intermediate, and Advanced, with each track
consisting of short-burst engaging modules that For displaying ICE Values, Strides Behaviours and
will be implemented in FY 2022-23. Quality Culture

Learning and development Strides values and behaviors Shooting Star (Individual Award)
L&D has been instrumental in driving the ICE values PACE (Performance & Capability Enhancement) For Creating Business Impact
With the pandemic compelling us to transition to
and behaviour immersion programme for leaders,
remote working and adapt to a new normal that PACE is our business skills suite, which includes
managers, and employees across locations to raise Dream Team (Team Award)
brought all planned learnings to a halt, we adopted key skills such as time management, planning
awareness, relate to the business, and influence
newer digital methodologies to keep the learning and prioritisation, giving and receiving feedback, Team that delivers the business impact by getting
behaviour. The emphasis on embedding the values
momentum going. All physical learning events were productivity hacks, interpersonal skills, MS Office the WHAT & HOW right!
and behaviours included large-format employee
virtually converted to short-burst tools, professional email writing skills, setting stretch
engagement programmes as well as trainings.
learning content and delivery style to match goals, and six thinking hats. PACE is designed as a We periodically renew our HR strategies to enhance
Under the auspices of the B.I.G Challenge, L&D
the need as part of our mission to adopt digital short, intense 2.5-hour programme that focuses on productivity and better engage with a diverse
used the SEEK tool to run campaigns, quizzes, and
transformation. With employees returning to work, skill development through role plays, case studies, workforce across geographies. We equip our
competitions to raise awareness. The programme
the L&D team provided both in-person classroom and discussions. These offerings are part of the employees with opportunities to learn and apply
witnessed 1,800 enthusiastic employees participating
trainings and virtual trainings for those who are still monthly training calendar and are open to self- the business concepts in day-to-day practice, thus
and was concluded with an awards ceremony.
working remotely. nomination and attendance by all employees. PACE enriching the quality of delivery.
is delivered through in-person and virtual classroom
Skill development sessions. Employee grievances
Strides Continuous Learning Programme (CLP) We follow the best international practices, which
Talent management ensure the freedom of association, prohibition of
It is an ongoing initiative that aims to reinforce our
At Strides, we emphasise growth through continuous child labour, protection of indigenous rights and
values, identify skill gaps, strengthen fundamental
learning to help employees progress from individual prohibition of forced and compulsory labour. In
skills, and improve personal capabilities. The
contributors to team leaders, and then to senior FY 2021-22, we did not receive any complaint
programme modules are digitally enabled by
leadership positions within the organisation. related to child labour, forced labour, involuntary
converting them into e-learning short burst modules
We select leaders who lead with ideas, have the labour, or discriminatory employment.
of ~1 hour each to adapt to changing needs, improve
mass audience scalability, and provide self-paced, necessary knowledge, are passionate about what
anytime, anywhere access. This provided all they do, and excel at execution. All of our talent
employees with a new-age and quick learning management programmes are geared to developing
experience through mobile learning at the click of a
button.

28 | Annual Report 2021-22 | 29

 Strides Pharma Science Limited

Sustainability at Strides
Social – Communities Milestones of FY 2021-22
• Conducted leprosy survey in 10 villages covering

Impacting lives for a better society

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
Our community development programme are an integral part of
• Conducted National Tuberculosis Control
our sustainability strategy. Beyond compliance, we strive to create programme across 11 villages
long-term value for communities by helping improve the standards • Arranged for well women camps – awareness on
of health, education, and employability. 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
Our CSR goals are aligned to UN SDGs
Healthcare • Organised HINI awareness camp across 9 villages
Arogyadhama – covering 2,800 people
End poverty in all its form and State-of-the-art Specialty Health Center • Held immunisation drive for children, touching
everywhere the lives of 48 children
This is a unique multi-specialty clinic in the rural
setting of Suragajakkanahalli panchayat, which • Collaborated with government PHC Haragadde
pioneers preventive, promotional, and curative for polio vaccine drive in 11 villages, covering
Ensure Healthcare and well-being services. Over the years, Arogyadhama has served 1,800 kids
for all at all ages over 7,700 patients and also offers specialist services
such as ophthalmology, gynaecology, paediatrics, • Relaunched school health programme across 15
dental treatments, pharmacy, and day care. schools, covering 980 students
• Supported the malnutrition in children camp at
Quality education for all
Chandapura and provided multivitamins to 45
children
• Extended a Covid vaccination centre where 1,546
Ensure availability and people have been vaccinated so far
sustainable management of water
and sanitation for all • 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

30 | Annual Report 2021-22 | 31

 Strides Pharma Science Limited

Sustainability at Strides
Social – Communities

Atmospheric water generator COVID-19 response Education Employability

We discovered an alternative water source in the • Provided a 30-bed Covid Care Centre LeAPs Vocational skill development
form of the atmospheric water generator. This at Pondicherry University campus in
technology generates water from air, which is then collaboration with Solara and Puducherry The Leadership Adoption Program for Schools (LeAPS) Every year, we organise the Employment
filtered and mineralised before reaching the user. governments caters to people transformation and is further Empowerment Program, and have partnered with
There is no water waste and no use of groundwater, customisable for young students in government Swami Vivekananda Rural Community College
• Facilitated ‘Oxygen on Wheels’, in schools. During FY 2021-22, ~500 students from (SVRCC) to widen our reach. This collaboration
which protects groundwater levels.
collaboration with KSRTC for Government PHC Haragadde Govt Primary and High School benefited enabled the selection of 100 students who will be
Haragadde from the ‘Taking Learning to Villages’ initiative. trained in a variety of job-related courses using a
A pilot project was launched in the village of
Lingapura, Haragadde Panchayat. This is a • Distributed home isolation kits to As schools were closed due to the pandemic, there holistic approach to help them become responsible
self-sustaining model that provides 900 people in Suragajakkanahalli Panchayat and Haragadde was a disconnect between teachers, students, and citizens.
the village with 2,000 litres of water per day. It also PHC learning. Teachers visited villages, met students,
employs a person with special needs. The Panchayat and conducted workshops for them near temples, Skill development programme
• Donated ~11 lakh Paracetamol tablets to marriage halls, and under banyan trees to revitalise
leaders and residents of Lingapura village have highly To empower the women of Muthanallur Village
government PHC Haragadde, government the student-teacher bond.
praised the project. Panchayat and train them to earn a living, we
hospitals Anekal and DKS trust
established a Training Center in Muthanallur
Siva Sakthi Sathya Sai Charitable Trust Infrastructure development

9,100 people
village by donating sewing machines, embroidery
This is a registered trust that was established to We recognise the value of education and will machines, interlock machines, cutting machines,
assist people with intellectual disabilities and senior continue to focus our efforts on improving and accessories to Siri Sanjeevini - Women Self
educational infrastructure to provide high-quality Help Group (SHG). This initiative will assist in the
citizens. The Trust operates a home in Sri Raja vaccinated through vaccination learning environment. We donated a laptop and upskilling of ~900 women in every batch in the
Rajeswari Nagar, Bengaluru, for 28 differently abled
people. Strides Foundation stepped up to sponsor
drive by Arogyadhama at the accessories to the smart class at Dr. Ambedkar village panchayat.
groceries and medicines for the inhabitants. Suragajakkanahalli village Government Law College in Puducherry.
panchayat

32 | Annual Report 2021-22 | 33

 Strides Pharma Science Limited

Sustainability at Strides
Governance

Prioritising transparency Board of Directors

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.

Arun Kumar Badree Komandur Dr. Kausalya Santhanam

Our Board has set up robust policies and
Board values procedures, including the code of conduct, Board
Executive Chairperson Executive Director - Finance & Independent Director
& Managing Director Group Chief Financial Officer
diversity policy, dividend distribution policy,
policy for determination of material events and
information, remuneration policy, related party
transaction policy, among others. This has helped
on us continue benchmarking ourselves against our
In
ti
ra

principles and the global best practices to remain

te
bo

gr i

effective and efficient in governance monitoring.

Colla

ty

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.

Deepak Vaidya S. Sridhar Bharat. D. Shah

Efficiency Non-Executive Director Independent Director Independent Director

Integrity
We will follow the right practices and
do the right thing
Leadership team
Collaboration Arun Kumar Badree Komandur
Executive Chairperson & Executive Director - Finance &
We will work together, understanding Managing Director Group Chief Financial Officer
and supporting each other

Efficiency Christoph Funke Umesh Kale

Chief Operations Officer Chief Quality Officer
We will do everything to deliver
quicker, better results
Homi Rustam Khusrokhan
Independent Director

34 | Annual Report 2021-22 | 35

Corporate information Statutory Reports and
Financial Statements
REGISTERED OFFICE STATUTORY AUDITORS BANKERS AND FINANCIAL
INSTITUTIONS
201, Devavrata, BSR & Co. LLP
Sector 17, Vashi, Embassy Golf Links Business Park, Bank of Baroda
Navi Mumbai - 400 703, India Pebble Beach, B Block, 3rd Floor, Axis Bank Limited
Tel.: +91 22 2789 2924/2789 3199 No. 13/2, Off Intermediate Ring Road, RBL Bank Limited
Email: corpcomm@strides.com Bengaluru – 560 071, India IDFC First Bank Limited
Website: www.strides.com IndusInd Bank Limited
CIN: L24230MH1990PLC057062 Yes Bank Limited
INTERNAL AUDITORS Karnataka Bank Limited
Grant Thornton Bharat LLP SBM Bank (India) Limited
CORPORATE OFFICE 5th Floor, No: 65/2, Block A, Tata Capital Financial Services Ltd
‘Strides House’, Bilekahalli Bagmane Tridib, Bagmane Tech Park, Aditya Birla Finance Ltd
Bannerghatta Road, C V Raman Nagar, Bengaluru,
Bengaluru - 560 076, India Karnataka 560093, India
Tel.: +91 80 6784 0000/ 6784 0290

REGISTRAR & SHARE

R & D CENTRE TRANSFER AGENT
165/2, Bilekahalli Village, KFin Technologies Limited
Begur, Hobli, Bengaluru South (formerly, KFin Technologies Private Limited)
Taluk, JP Nagar Selenium, Tower B, Plot No. 31 & 32,
7th Phase, Bannerghatta Road, Financial District, Nanakramguda,
Bengaluru – 560 076, India Serilingampally Mandal,
Hyderabad, Telangana – 500 032, India
Toll Free Number: 1- 800-309-4001
Email id: - einward.ris@kfintech.com

GLOBAL OFFICE

Singapore Italy Canada

Statutory Reports
Strides Pharma Global Pte Limited Beltapharm SpA Strides Pharma Canada Inc
3 Tuas South Avenue 4, 20095 Cusano MIL, Via 44 Chipman Hill, Suite 1000 Management Discussion
Singapore – 637610 Stelvio, 66, Italy Saint John, New Brunswick, and Analysis 38
E2L 2A9, Canada
Board’s Report 47
USA Kenya
Switzerland Corporate Governance Report 72
Strides Pharma Inc Universal Corporation Limited
2 Tower Center Boulevard, Club Road, Past Post Office, Plot Fairmed Healthcare AG Business Responsibility Report 95
Suite: 1102 No. 13777, P.O. Box 1748- 00902, Industriestrasse 9, Zug
East Brunswick, NJ 08816 Kikuyu Town, Kenya Financial Statements
Consolidated Financials 106
United Kingdom South Africa
Standalone Financials 215
Strides Pharma UK Ltd Trinity Pharma Proprietary Limited
Unit 4, Metro Centre, 106 16th Road, Midrand, Equity history of the Company 302
Tolpits Lane, Watford, Johannesburg, 1686
Hertfordshire, WD18 9SS, UK

36 |
 Strides Pharma Science Limited

Statutory Reports
Industry developments
Management discussion and analysis
The pharmerging markets have reported a growth
in spending at ~7.8% CAGR between 2017 and 2021 to
Global Pharmaceutical Industry
reach US$354.2 Billion in 2021. Pharmerging countries,
The onset of the pandemic led to the global led by China, are increasingly allowing access to newer
pharmaceutical industry facing several challenges. medications, frequently earlier and to a larger portion
Economic environment According to the World Economic Outlook published in Despite the disruptions, the industry demonstrated of their populations than previously.
April 2022, global growth is predicted to slow, i.e., from immense determination in fighting off the pandemic.
World 6.1% in 2021 to 3.6% in 2022. While vaccination was the core focus area for the The COVID-19 disturbance had hampered the
The global economy, in the previous year, opened up industry worldwide, it also ensured a continued supply worldwide markets. Supply chain disruption, product
with a note of optimism as the impact of covid-19 With the pandemic still raging, a strong global health of critical medicines to keep the global healthcare releases, adoption, decreasing footfall at pharmacies
started to ease out. However, the pace of recovery strategy is more important than ever. To lower the system uninterrupted. and hospitals, and a slowdown in R&D activity were
was impacted by successive waves caused by newer possibility of more deadly COVID-19 variations, global among the issues faced by the pharmaceutical business.
variants and consequent supply chain disruptions availability of immunizations, testing, and therapies are The global medicine market was valued at US$1.4 Some of these headwinds have now started to ease
across the world, driving crude and other material critical. This necessitates higher supply production for trillion in 2021 and is expected to expand at a 3–6% with improved demand outlook. However, supply chain
prices. The ongoing Russia-Ukrainian war further medications including vaccines, improved in-country CAGR through 2026, reaching around US$1.8 trillion disruptions owing to covid waves and geopolitical risks
posed a significant risk impacting global supply chain delivery networks, and more equitable international in overall market size in 2026, including spending on around the Russia- Ukraine war continues to be a key
dampening global economic recovery. Besides, the distribution. Many nations’ monetary policies will COVID-19 vaccines. The primary variables influencing risk.
tightening of monetary policy by the US Fed towards need to tighten more to keep inflation pressures at bay, medicine spending and growth in developed countries
the end of the year impacted the economic outlook. while fiscal policy will need to prioritize health and are projected to be the adoption of novel medicines, Pharmaceutical and biopharmaceutical manufacturing
social investment while focusing support for the most countered by patent lifecycles and competition from will face various hurdles in 2022, ranging from
After a severe contraction in 2020 driven by the Covid vulnerable. generics and biosimilars. The most significant drivers formulation and delivery issues to skilled labor
-19 pandemic, the US economy rebounded sharply, of change in the use of medicines in pharmerging shortages and compressed schedules. Integration of
albeit with the occasional spread of the virus caused India nations will continue to be substantial improvements sophisticated technologies is one possible answer
by different variants. Monetary policy remained in healthcare access. to these problems. Challenges brought possibilities,
The rollout of vaccination and gradual opening of the
highly accommodative, but the announced tapering especially in the pharmaceutical business, which is
economy provided silver linings to the Indian economy,
of government bond purchases is appropriate as the The pharmaceutical markets in the developed world currently dealing with the aftermath of the COVID-19
which experienced degrowth in FY21 which was the
recovery becomes more firmly entrenched. Sustained grew at ~4.9% CAGR from 2017 to 2021 and are pandemic and evolving under changing conditions.
first time in multiple decades. However, the spread
pricing pressures will prompt a gradual increase in estimated to grow at about 2.5-5.5% CAGR by 2026. In The upcoming opportunities have come in the form
of the delta variant, rising input prices, and then the
the federal funds rate, as already seen in 2021 and first developed countries, adopting new treatments, offset of Data analytics which will accelerate biotechnology
Omicron variant did disrupted the pace of economic
half of 2022. Several pandemic-related fiscal measures by patent to lifecycles and competition from generics innovation, and new operating models will bring much-
recovery. The country reported a growth of 9.2% during
announced in 2020 and early 2021 have largely been and biosimilars, are expected to continue as the main needed agility.
the year under review. The government continues
withdrawn. Earlier stimulus checks, supplementary factors influencing medicine spending and growth.
to provide the impetus for growth through various
unemployment benefit payments, and expanded
incentives to push the manufacturing sector as well as
benefit coverage have led to a substantial increase in Global pharmaceutical industry growth:
commit higher outlays for the country’s infrastructure
accumulated savings expected to continue supporting
sector.
economic recovery. Forecast
The accommodative stance taken by the RBI throughout
The Eurozone was impacted to a great extent by the 5-Year
the year under review helped the economy recover 1,750 CAGRs
outbreak of the Delta and Omicron variants of the
faster and boosted investments. The country reported 5-Year -1,780
pandemic, leading to restrictions and disruptions 1,800
CAGRs 3-6%
robust GST Collections, with March 2022 reporting 1,600
5-Year
in activities. Despite the challenges, the Eurozone CAGRs 1,424 5.1%
a record collection of ` 1.42 Lakh Crore. This was 1,400
reported strong growth. This performance largely 3-6%
achieved through the waning impact of the Omicron 1,200 1,112 6.5%
reflects catch-up growth after the deep slump of 2020,
variant, enhanced anti-evasion measures as well as a 1,000 0.1%
but it is also evidence of a robust recovery of economic 813
rate rationalization. Despite the short-term instability, 800 4.8%
activities. 5-8%
India’s core economic fundamentals remain solid, and 600
11.4% 7.8%
the impact on the long-term outlook will be minimal. 400
The economic performance of the emerging economies
The effects of growth-enhancing policies and schemes 200 5.3% 4.3% 2-5%
varied greatly during the past two years. Export of
(such as production-linked incentives (PLI) and the
goods and services remained comparatively in a better 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
government’s push toward self-reliance) and increased
position except tourism and allied activities, which
infrastructure spending is beginning to take effect and
continued to witnessed poor economic performance. Developed Pharmerging Lower Income
will result in a stronger multiplier effect on jobs and
Emerging market economies have witnessed a surge in
income, higher productivity, and increased efficiency—
inflation, driven primarily by higher commodity prices, Source: IQVIA Market Prognosis, Sep 2021; IQVIA Institute, Nov 2021
all of which will lead to faster economic growth.
supply chain disruptions, labor shortages, and demand
for goods.
According to the FICCI Economic Outlook Survey, the
The Generics Pharmaceutical market
country’s gross domestic product (GDP) is predicted to
The conflict in Eastern Europe between Ukraine and
expand by 7.4% in the current fiscal year 2022-23. The global generic drugs market reached a value of $ 320 Billion in 2021. At a CAGR of 7%, the market is estimated
Russia has led to an increase in the prices of food, oil,
to reach $482.5 Billion by 2027.
and natural gas. The entire global economy has been
The threats to economic growth are continuing to
impacted by the conflict and is expected to experience
rise. While the possibility of a pandemic is still there, Price deflation has largely countered growth from relevant patent expiry events, therefore, generics, including
slower growth and faster inflation.
the ongoing conflict between Russia and Ukraine is biosimilars, have had a minor impact on growth.
creating a substantial barrier to global recovery.

38 | Annual Report 2021-22 | 39

 Strides Pharma Science Limited

Statutory Reports
Global pharmaceutical market growth . China’s growth continues to outpace the rest of the US market
group, owing to a trend away from traditional Chinese
Our US business witnessed significant fall in revenues
Region 2021 2017-2021 CAGR 2026 2022-2026 CAGR medicine and toward original branded products. Over
due to covid-related headwinds. The business saw
Developed 1,344.9 4.9% $1,635–1,665 2.5–5.5% the next five years, government policies requiring
drop in volumes and margin compression driven by
Pharmerging 354.2 7.8% $470–500 5–8% annual updates to the national reimbursement drug
heightened competitive intensity and higher channel
Lower income countries 19.0 0.1% $21–25 2.5–5.5% list (NRDL) will result in a greater share of new original
inventory. However, our US business returned to
medicines being reimbursed, resulting in higher levels
Global 1,423.5 5.1% $1,750–1,780 3–6% sequential growth in the second half of FY 2021-22.
of spending, though these will generally be subject to
During the year we successfully acquired the Chestnut
lower negotiated net prices.
Global pharmaceutical market 2025 – Product type Ridge site from Endo along with a basket of ~150 ANDAs.
The acquisition added new domains to our portfolio
Africa
Region Original brands
Non-original Unbranded
Other including Controlled Substances, Hormones, Nasal
brands generics
The pandemic has unearthed Africa’s vulnerabilities Sprays and provides growth visibility in the near term
Developed $930–960 $134–154 $92–112 $53–57 in ensuring access to vital drugs, vaccines, and health through new launches from the combined portfolio.
Pharmerging $151–171 $146–166 $59–63 $88–108 technologies. Close 95% of the continent’s medicine The Chestnut Ridge facility also completed a successful
Lower income countries $7–9 $9–13 $1-2 $1–5 it uses is dependent on imports. Africa’s US$24 bn FDA inspect towards the end of FY22.
Global $1,100–1,130 $295–325 $154–174 $146–166 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
US business in FY 2021-22

₹ 11,650 274 249

Top 20 therapy areas in 2025 in global spending (5-year CAGR forecast) (US$ Billion): optimism comes from rapid urbanisation, severe under
penetration and an expected surge in income driven by
5-Year CAGRs
2026 Spending 2022-2026 Conts US$ growing economic activities in the continent.
Oncologics 306 9-12% Million Cumulative Cumulative
Immunology 178 6-9% Company overview Revenue ANDAs filed ANDAs approved
Antidiabetics 173 6-9%
Neurology 151 3-6% Str ides Phar ma Science Limited is a global
Anticoagulants 87 8-11% The US once again ranks first when it comes to being
pharmaceutical company headquartered in Bengaluru,
Cardiovascular 87 4-7% the world’s largest and most attractive pharmaceutical
Respiratory 71 5-8%
India. The Company mainly operates in the regulated
market. The US accounted for almost half of
Pain 70 6-9% markets including key markets of US, Europe, Australia,
Vaccines including COVID-19 45 3-6%
pharmaceutical sales globally in 2021. he US pharma
South Africa. The company also has presence in
HIV antivirals 41 2-5% market is forecasted to grow at 2%-5% CAGR till 2026.
Antibacterials
the emerging markets largely in Africa where it has
37 4-7% Our subsidiary, Strides Pharma Inc. runs the front-end
GI products 26 3-6% a branded business and is a prequalified supplier to
Ophthalmology
business in the US by providing quality healthcare
26 -1-2% donor-funded programmes though its institutional
Vaccines ex COVID 25 8-11% products to the market in prescriptions and private
business. The Company’s global manufacturing
Dermatologics 23 5-8% label Over The Counter (OTC). Going forward, our
Lipid regulators 22 2-5% sites are located in India (Chennai, Puducherry and
focus will be to expand our product offering through
Hospital solutions 20 1-4% two locations in Bengaluru), Singapore, Italy (Milan),
Anti-ulcerants 19 5-8% new launches in the US leveraging a vast portfolio of
Kenya (Nairobi), and the United States (New York).
Blood coagulation 16 -1-2% approved products available and we will continue with
Traditional chinese med 05 -1-2% The Company focuses on “difficult to manufacture”
our relentless focus on supply commitments along with
products sold in over 100 countries
strong customer advocacy We believe we are on track
to achieve our growth outlook for FY 2022-23 in the US
The US predicted to add $15 Billion in growth over the next five Our product portfolio includes a wide range of niche
market.
years, almost the same as in the previous five years, and technically complex pharmaceutical products,
The US Pharmaceutical market saw a ~3.5% CAGR from
despite a bigger impact of loss of exclusivity due to including a range of dosage forms such as, liquids,
2017-21 to reach US$580 Billion. This market is expected FY 2021-22 achievements
price deflation offsetting volume increases. creams and ointments, soft gels, sachets, tablets, and
to grow at a 2%-5% CAGR to reach US$605- 699 Billion by
modified release dosage formats. We are among the • Retained volume market share for key base
2026. Expenditure is likely to expand at a rate of 0–3%
Japan leading soft gelatin capsule manufacturers globally. molecules.
in the United States, while rising off-invoice discounts
and rebates are expected to restrict spending growth The market has witnessed marginal decline of 0.5% • Relentless focus on supply chain and customer
over time. Aside from discounts and rebates, ongoing from 2017-21 to reach US$85.4 Billion; and is projected
Regulated markets advocacy
market dynamics surrounding the use of medicines, to progress at around (-2)-1% CAGR to US$73-93 Billion Our regulated markets business vertical focuses on the
• Successful completion of Chestnut Ridge acquisition
the adoption of newer treatments, the impact of patent by 2026. While the pandemic made 2020 a price-cutting regulated markets of the US, UK, other parts of Europe, ,
in the US with ~150 ANDAs in diversified dosage
expirations, and new generic or biosimilar competition year, the more modest rebound in 2021 included an Nordics, DACH region, South Africa,. We are a strategic
formats including Controlled Substances, Hormones,
will all contribute to historically slow market growth in off-cycle price-cut as well as the epidemic’s residual supplier to the Australian market with our preferred
Nasal Sprays to further accelerate portfolio
the United States over the next five years. impacts on the market. supplier contract with Australia’s pharmaceutical
differentiation
behemoth, Arrotex.
European Union (EU5) Australia • Diversification of product portfolio that now
Our revenue from this business segment de-grew comprises of acute and chronic products
The top five European Union (EU5) markets grew at a The Australian market grew by 0.6% from 2017-21 to
by 14%% y-o-y to ` 22,830 Million in FY 2021-22 from
4.8% CAGR from 2017-21 to reach US$209.7 Billion and reach US$14.4 Billion and is projected to grow at around Strategy for future
` 26,636 Million in FY 2020-21. With over 73% of our
is projected to grow at about 3-6% CAGR to US$245- 2.5-5.5% CAGR to US$16-19 Billion by 2026.
consolidated revenues coming from this segment, it Going forward, our key objective is to bounce back in
275 Billion by 2026. Medicine spending in the top five
remains a key focus area for us. the US markets with new product launches from the
European markets is predicted to rise by $51 Billion China
over the next five years, up from $44 Billion in the
The Chinese market grew by 6.1% between 2017-21
previous five, but with significant adjustments in
to reach US$169.4 Billion and is projected to grow at
growth drivers. Generics, including biosimilars, are
around 2.5-5.5% CAGR to US$190-220 Billion by 2026

40 | Annual Report 2021-22 | 41

 Strides Pharma Science Limited

Statutory Reports
approved portfolio to achieve $250m+ revenue in FY23. distribution channels for Rx and OTC products – Direct Strategy for future Renerve, Unibrol, Combiart, Duotab & Vitafer in the
With 249 approved ANDAs and to launch ~20 products wholesalers, NHS supplies and Clinical commissioning management of Neuropathy, Malaria and Anaemia
each year and have 100+ commercial products in the groups (CCG) and expanding our product offering for Base business • Prioritizing scaling up of partnership respectively. We also have a robust medical field force
US in medium term. Further, we are focusing on cost the market. We have been a reliable supplier of high- franchise in Europe and other in Africa in order to extend our reach to a large pool
improvement programmes (CIPs) through alternative quality generics to Tier 1 & Tier 2 wholesalers in the geographies through strategic tie- of doctors. Improving the quality of life by providing
ups and portfolio expansion
API vendors and manufacturing network optimization retail sector as well as National Health Service (NHS) therapeutically effective, high-quality medication to
to achieve improved COGS and operating margins. through Commercial Medicines Unit (CMU) tenders. We Portfolio • Focus on several new launches and the people in the region is integral to our business
offer high-quality generics and heritage OTC brands in new customer acquisitions to deliver activities in Africa. We are also focused on building a
this market. improved outcomes robustly branded generics portfolio for the treatment
Approved portfolio New domain additions comprising
opportunity Controlled Substances, Hormones, Nasal Research and • Accelerate portfolio maximization of chronic therapies – including Women’s health, CNS,
Sprays to further accelerate portfolio Europe development opportunities through targeted Cardiovascular, Diabetes, Dermatology and Probiotics.
differentiation R&D investments for Rx and OTC
The pharmaceutical market in Europe is expected to portfolio. FY 2021-22 achievements
Leveraging Target to launch ~ 20 new products every grow at a CAGR of 3%-6% from 2022-2026. Due to Europe’s • Plan to launch several new products
partnership with year between Strides and Chestnut Ridge diverse macroeconomic regions, multi-cultural and to be in FY 2022-23 • Leveraged digital platforms to stay connected with
Chestnut Ridge portfolio in FY23 & 60+ launches over multi-government structure, the pharmaceutical pharmacies and doctors
three years. Focus on stronger customer
market is diverse and region-specific. Our portfolio
advocacy and superior supply execution
maximisation strategy takes advantage of this market
Emerging markets • Established a PAN Africa presence with “In Africa,
to be a reliable partner for our channel for Africa” strategy
partners scenario primarily through market fungibility. Our This segment includes our operations in Africa and
presence in Europe, the Nordic countries, and the DACH institutional business which represents over 26% of • Local medical field force with coverage of 30,000
Tech transfer and Tech transfer of Chestnut Ridge products
region is steadily growing. We’re witnessing healthy our consolidated revenues. doctors
cost improvement to India for better cost arbitrage,
programmes institutionalization of alternate vendor traction across key frontend markets and partnership
• Improved productivity for field force for a more
development programmes, and cost business in Europe. During FY 2021-22, our performance in emerging
profitable outcome for the business
improvement programmes are key focus markets was driven by our institutional business with
areas to stay competitive. Australia healthy procurement from our partners. The growth Strategy for future
Gain market share Focus on increasing market share in this business was greatly benefitted from a healthy
We are a preferred long-term strategic supplier to • We are focusing on scaling up Africa business
for existing products for existing products through cost customer offtake. The business in Africa was impacted
Arrotex-the country’s pharmaceutical behemoth with through geographical expansion to new markets
competitiveness and supply reliability by high covid cases being reported by several countries.
60% of the market share. Our partnership with Arrotex and better penetration of existing markets through
for partners We are focusing on improving Medical Representative
covers a wide range of products. The CAGR of the portfolio expansion
(MR) productivity in order to drive growth in our Africa
pharmaceutical market in Australia is expected to be
business. • Focusing on improving MR productivity for the
Other regulated markets 1.5%-4.5% till 2026, we have a dedicated plant in India
Africa business for a strong operating leverage

26%
to cater to the Australian market. We continue to put in
Other regulated markets for us include all regulated
efforts to expand our product portfolio for the market
markets apart from the US. We have a strong presence
including off-patent molecules.
in the UK, Europe, South Africa & Australia through
our large and fungibility regulated market portfolio.
Of consolidated revenues represented by Institutional business
South Africa emerging markets
Our regulated market witnessed steady performance Institutional business in FY 2021-22

₹ 4,906
across all our key markets despite high omicron case South Africa is the largest pharma market in Sub-
load. Our portfolio expansion is going to continue the Saharan Africa. In order to enter the highly compliance Africa
growth momentum in the market. driven market of South Africa, we acquired Trinity
Africa business in FY 2021-22
Pharma in FY 2017-18 in order to incubate its strategy Million Revenue

₹ 3,210 16% 150+

Other regulated markets business highlights on a combination of businesses. The South African
pharma market is estimated to grow at a CAGR of With our purpose of bringing the best treatments at
FY 2021-22
4.5%-7.5% till 2026. We are leveraging the distribution affordable costs to patients’ all over the world, we

₹ 11,180
of products through pharmacy chains and mail Million YoY growth MR headcount develop and manufacture drugs in the anti-retroviral,
order systems. We are focused on improving our IP Revenue anti-malarial, and other infectious disease drug
landscape and participate in the local ARV and Non- segments for our institutional business. We are one of
Million Revenue ARV opportunities through a steady regional footprint Africa is the first market where we initiated exports in the leading Indian suppliers of drugs for institutionally
by building a strong base with portfolio maximisation. the early 1990s, since then we have promised to cater funded aid projects and global procurement agencies
to its unmet requirements. Our philosophy to conduct and we are at the forefront in the fight against these
UK FY 2021-22 achievements business activities is “In Africa for Africa”, we bolstered global pandemics.
this with the acquisition of a WHO-approved facility
• Delivered steady growth in revenue from ORM
We cater to the UK market through our wholly owned under Universal Corporations in Kenya. Despite the Institutional business continuous to be of strategic
despite challenges of the multiple waves of the
subsidiary Strides Pharma UK limited. We have an continent being a very complex market to do business importance to us as we are an approved supplier
pandemic
established presence in the market through a strong in, we have achieved a significant sales footprint in to Institutionally funded aid projects and Global
connect with channel partners and we are approved • Market expansion in Central and Eastern Europe African countries. The continent demonstrates an Procurement Agencies like USAID, Global Fund, PEPFAR
supplier under NHS. The UK pharmaceutical market is (CEE) and the Mediterranean region through industry-leading growth which is driven by increasing (The US President’s Emergency Plan for AIDS Relief),
one of the largest markets in the region and is expected partnerships urbanisation and rapid expansion of primary health UNICEF, WHO, Pan American Health Organization
to grow at a CAGR of 4%-7% from 2022-2026. We can care capacity. We intend to capitalize this growth (PAHO), United Nations Development Program (UNDP),
• Strong order book visibility driven by focused
capitalize on this growth by tapping into multiple through our rich brand portfolio along with several Population Services International (PSI), Chemonics,
customer advocacy
of the product registrations in the pipeline. In PFSCM, amongst others. We supply our products to
order to attain a leadership position in key African disease prone regions in Africa, Asia and Latin America
market, we have already established brands like with distribution to over 100 countries.

42 | Annual Report 2021-22 | 43

 Strides Pharma Science Limited

Statutory Reports
The manufacture of our Institutional range of products R&D at Strides is imbibed with continuous learning We conduct adequate trainings, workshops and regularly reports to the RMC and the Group Risk
takes place at our world-class facilities inIndia and innovation. We are actively engaging in the awareness programmes against sexual harassment Steering Committee on the status of the potential risks
and Kenya that comply with stringent regulatory development of a wide range of dosage forms with across the organization and we have also adopted based on the assessment of risks and the mitigation
standards and have regulatory approvals from the special emphasis on novel drug delivery systems for a gender-neutral Prevention of Sexual Harassment strategies. Employees are also being kept abreast
US-FDA, MHRA, TGA and WHO. Our WHO-approved solid orals (modified release tablets and capsules) and (POSH) policy. with the leading risk management practices through
manufacturing facility in Kenya is being used for global soft gelatin capsules for both Regulated and Emerging training programmes and workshops.
donor agencies and local government tenders in Africa. markets. In order to deliver sustainable growth, we Quality compliance
We are strengthening our R&D initiatives in order to are focusing our product selection on niche products Risk Management Framework and Process
Achieving high benchmarks in the compliance curve
develop next-generation products and we are also characterized by complex formulations across diverse
has always been Stride’s emphasis. Clearly defined The Company has adopted a combination of a bottom-
collaborating with agencies like UNITAID, Medicines therapeutic segments. Constant endeavours of Strides
agendas concerning people, processes, products and up and top-down approach to drive ERM across the
Malaria Venture (MMV) and licensing agreements with to improve our R&D along with our strong formulation
technologies is provided by our quality excellence business units and subsidiaries. The process includes
Medicines Patent Pool (MPP), Gilead Life Sciences and R&D capabilities combined with knowledge of the
programme. We train our people in advanced quality identification and regular assessment of risks by
Vive amongst others. regulatory environment in Regulated markets have
management through specific programmes, enabling respective business heads/risk owners across the
resulted in successful product registrations in several
the identification, reporting and rectification of quality Company and planning of mitigation strategies in a
FY 2021-22 achievements markets.
concerns at Strides. structured manner. At the Organizational level, the
• Strong supply chain execution to meet supply leadership team identifies and assesses long-term and
Strengthening the IT infrastructure
obligations under donor funded programmes Enterprise Risk Management at Strides strategic risks for the Company. Risks are consolidated
The availability of multiple vaccines within a year under major risk themes at the enterprise level to
• Started tech transfer of portfolio to our manufacturing We are operating in an uncertain environment for
for tackling COVID-19 wouldn’t have been possible create focus areas and prioritise mitigation strategies.
site in Kenya for an “In Africa for Africa” market play past two years due to the pandemic. However, it is a
without the correct use of digital technology in The ERM process is integrated with core processes such
highly interconnected world with stringent regulatory
• Continued scale up of TLD franchise, one the largest extraordinary ways. A significant percentage of our as Strategy and Planning, Mergers & Acquisitions and
oversight, rapidly evolving external environment, with
ARV products volumes are manufactured using the programme for Internal Audit.
increasing geopolitical tensions, environmental risks,
Manufacturing Execution System (MES), a typically
Strategy for future multi-year initiative. MES system empowers our
supply chain disruptions and fast-paced technological
We acknowledge that risk management is a dynamic
evolution, that could have an impact across the value
Going forward, we are focusing on improving our whole manufacturing operations to be GMP-compliant and ever evolving concept and hence, it is important
chain of the organisation. Strides continues to be on its
wallet share in institutional business through our cost along with automatic capturing of data from different to revisit the policies, framework, and processes
journey of institutionalising its Enterprise-wide Risk
leadership and selective expansion of product portfolio. machines and instruments. We can generate electronic periodically to ensure that they remain adequate and
Management (ERM) Programme to provide a holistic
‘Batch Manufacturing Records’ enabling us to quickly relevant. At Strides, we review our risk management
view of our risk exposures as well as to facilitate a risk
Financials release the batches with ‘Review by Exception’ using
informed decision-making, in the highly volatile and
framework on a regular basis to not only align with
MES. Electronic logbooks have enabled us to avoid the changing regulatory requirements but more
Consolidated financial performance uncertain business environment.
documentation mistakes and ensure concurrent importantly to increase the maturity and resilience
(` in Million) entries of all activities. of the Company’s risk response mechanism. Recent
The Board of Directors and the Senior Management
changes in the framework have been made to bring in
Particulars FY 22 FY 21 are cognizant of the importance of equipping the
People management the following enhancements:
Revenue 30,946 33,308 organisation with the necessary framework and
EBITDA 43 6,497 Strides has a global team of around ~4,200 people processes to navigate the complex and dynamic risk
• Leveraging data and technology to anticipate and
Adjusted PAT/Loss (3,550) 3,090 working in diverse and harmonious work environment environment in the short term and the long term.
measure risks
with an open and transparent culture. We pursue a
merit-based recruitment, reward and recognitions In its journey towards risk intelligence, a robust risk • Data-driven key risk indicator monitoring for
Key ratios (%)
policy and attract and retain the best talent. We put governance structure has been developed across enhanced risk monitoring and reporting
(number) a lot of emphasis on growth through learning in order the Group globally. The Board of Directors have
• Ing raining r isk-based decision making and
to motivate our people to align their goals with the constituted a Risk Management Committee (RMC).
Particulars FY 22 FY 21 implementing mechanisms to reward best practices
organization goals. Further, to drive ERM process across the Group, a
Debtors’ turnover 2.65 3.25 Group Risk Steering Committee has been constituted • Integration of the ERM framework with the
Inventory turnover 1.27 1.34 Our top management connects with our global at the Senior Management level. It is also proposed to Environment, Social and Governance (ESG) practices
Interest coverage 0.98 4.72 employee base during communication sessions that establish entity/ regional specific Steering Committees of the Group
Current ratio 1.14 1.11 we conduct several times during the year as a part to monitor risks periodically at local business level.
• Extending the risk management practices beyond
Debt equity 1.18 0.76 of our transparent organisational culture. In order
risk mitigation, to planning for business continuity
to encourage two-way communication across the At Strides, we acknowledge the fact that having a robust
EBITDA margin (%) 0.10% 19.50% mechanisms
organisation, we have an app-based for employee and pervasive risk-intelligent culture is essential for
Net profit margin (%) -15% 7% feedback and governance. achieving Company’s objectives and build resilience
While risks can never be completely eliminated,
for the future. We are consistently mapping various
we believe that these changes will improve our
A research-focused organisation We adhere to the highest standards of ethical, moral levels of risks inherent in our business strategies and
organizational maturity and preparedness for
and legal conduct of business operations. operations. The central risk office led by Chief Risk
Our success in creating niche and differentiated managing unforeseen risks as well respond to various
Officer, assists RMC and Group Steering Committee
products portfolio reflects our expertise in Research crisis scenarios.
We have a Whistle Blower Policy which provides in risk monitoring and reporting process. The CRO
and Development. We have an integrated R&D Centre
a mechanism for the Directors, employees and
in Bangalore which has the capability to develop and
stakeholders of our Company to raise concerns on any
file products for key regulated and emerging markets.
violations of legal or regulatory requirements, incorrect
Our R&D centre located in Bangalore is working towards
or misrepresentation of any financial statements and
building a global portfolio using latest technologies
reports, among others.
available in the pharmaceutical industry in our state-
of-the-art R&D facility.

44 | Annual Report 2021-22 | 45

 Strides Pharma Science Limited

Statutory Reports
Key Risks in the Business:
We regularly review our key risk areas, and the
“Dealing with risks and managing uncertainties
is a key mantra and an essential skill for any
Board’s Report
leadership retains the responsibility for determining organization today. Our reputation as an
the nature and extent of significant risks and drawing organisation is measured by our resilience to
out commensurate mitigation and response plans. We respond to uncertainties. Strides is committed to Dear Shareholders,
set out below our principal risks identified minimising risks and maximising performance
through increased awareness and maturity On behalf of the Board of Directors of the Company, it gives us pleasure in presenting the 31st Board’s Report,
1. Ensuring Business Continuity towards risk management. A robust Enterprise along with the Audited Financial Statements (Consolidated & Standalone) for the financial year ended March
2. Workforce Health and safety Risk Management blueprint is vital to enable 31, 2022.
business and operations to take risk-informed
3. Product Quality and Efficacy decisions, manage crisis scenarios and build a 1. Financial performance
4. Supply Chain Disruptions and Increasing input risk-aware culture” - Sormistha Ghosh, Group
General Counsel & Chief Risk Officer The Company has prepared the consolidated and standalone financial statements for the financial year
costs
ended March 31, 2022, in accordance with the Indian Accounting Standards (Ind AS) as prescribed under
5. Price-erosion and competition in the Regulated the Companies Act, 2013.
Markets
6. Cyber-security and Data Privacy regulations
Internal control systems and adequacy Key highlights of financial performance of the Company for the financial year ended March 31, 2022 as
compared to previous year is provided below:
The Company’s advanced IT infrastructure ensures
7. Environment, Health and Safety (EHS) Risks
adequate internal controls over business processes
8. Regulatory and Compliance Management and practices. This internal control system provides (Figures in Million)

reasonable assurance about the integrity and reliability Consolidated Basis Standalone Basis
As the organization focusses on business growth, we of financial statements. Moreover, the Company has Particulars FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
are committed to step up our investments in resources, an active in-system audit programme, supported by INR USD* INR USD** INR USD* INR USD**
tools and technologies to make our risk-mitigation Grant Thornton, which regularly encompasses various
1.1 Financial
processes more data driven and objective. These operations consistently. Our Audit Committee reviews
Continuing Operations
capabilities will help us build and equip our business internal audit observations regularly.
Income 32,022.38 421.74 33,672.97 460.34 21,024.88 276.90 19,465.62 266.11
with capabilities to sense and respond to emerging
risks across our organizational ecosystem in a timely Operating Profit (EBITDA) 1,118.82 14.73 6,862.57 93.82 2,001.15 26.36 2,763.16 37.77
and effective manner. Net Profit (PAT) (4,742.50) (62.46) 2,437.88 33.33 1,801.88 23.73 782.40 10.70
Other Equity 22,694.38 298.89 26,869.80 367.33 33,168.93 436.84 31,583.77 431.78
Non-Controlling Interest 240.88 3.17 373.41 5.10
1.2 Profits
Operating Profit (EBITDA) 1,118.82 14.73 6,862.57 93.82 2,001.15 26.36 2,763.16 37.77
Less:
Finance Cost 1,767.44 23.28 1,500.65 20.52 742.41 9.78 653.39 8.93
Depreciation & Amortization 2,330.14 30.69 2,062.87 28.20 1,043.66 13.75 993.42 13.58
Exceptional Items (gain)/loss 2,438.25 32.11 (433.53) (5.93) - - - -
Profit Before Tax (5,417.01) (71.34) 3,732.58 51.03 215.08 2.83 1,116.35 15.26
Share of profit / (loss) of joint (1,108.12) (14.59) (978.19) (13.37)
ventures and associates
Profit Before Tax (6,525.13) (85.94) 2,754.39 37.65 215.08 2.83 1,116.35 15.26
Less: Tax Expenses /(Benefit) (1,782.63) (23.48) 316.51 4.33 (1,586.80) (20.90) 333.95 4.57
Profit After Tax (4,742.50) (62.46) 2,437.88 33.33 1,801.88 23.73 782.40 10.70
Profit/ (Loss) from Discontinued - - 139.41 1.91 - - - -
operations
Total Profit (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 (67.68) (0.89) 90.38 1.24 (1.63) (0.02) (15.19) (0.21)
reclassified to profit/ (loss) (Net
of Tax)
Items that may be reclassified to 557.67 7.34 75.17 1.03 (38.58) (0.51) 254.44 3.48
profit/ (loss) (Net of Tax)
Total Other Comprehensive 489.99 6.45 165.55 2.26 (40.21) (0.53) 239.25 3.27
Income (Net of Tax)
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 (including taxes) - - (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)

46 | Annual Report 2021-22 | 47

 Strides Pharma Science Limited

Statutory Reports
2. Company’s performance the Company focused on several new launches and reduction of gross debt by over `10 Billion in Being in the US, this facility shall drive
and new customer acquisitions across the markets FY23 (which will bring our Net Debt to EBITDA logistics related synergies for the Strides’
FY22 has been a challenging year for the pharma
to deliver improved outcomes. ratio below 3x). US business and will enable the group to
industry and, particularly for Strides, given the
mitigate supply chain related bottlenecks
significant headwinds.
Other Regulated Market business is a significant While the operating environment continues to as faced during the Covid pandemic or
part of the Company’s growth strategy driven by evolve and is ambiguous, the Company stays any similar disruptions going forward.
We have witnessed unusual price erosion and
frontend presence in key markets and IP-led B2B confident of a bounce-back in FY23 to deliver
volume drops in the Regulated Markets, leading
partnerships in Europe, Australia and other parts significant value for our stakeholders in the Further, this site will also be able to
to significant compression in our gross margins.
of the world. The Company has committed R&D coming years. participate in various federal government
The business was also impacted due to Covid-led
investments to fast-track portfolio maximization procurement programmes including the
disruptions in the first half of the financial year.
opportunities for Rx and OTC portfolios and 3. Dividend for FY22 Department of Veterans Affairs, thereby
several new products to be launched in FY23. strengthening the group’s ability to cater
On a consolidated level, we reported a muted Considering FY22 performance of the Company,
to federal contracts.
financial performance during the year. The Board of Directors of the Company have decided
Emerging Markets
Company’s operating performance was impacted not to recommend any dividend for the year.
ANDA Portfolios was acquired by Strides
• 
by increase in raw material prices with disruption Emerging Market business includes African
Pharma Global Pte. Limited, a step-down
in the global supply chain and a significant operations (except South Africa) and Institutional In terms of Regulation 43A of the SEBI (Listing
wholly owned subsidiary of the Company
increase in the cost of operations during the year. Business (i.e., Access Markets). This business saw Obligations and Disclosure Requirements)
in Singapore.
The Company’s logistics and warehousing costs a steady performance in FY22, contributing `8,116 Regulations, 2015 (SEBI Listing Regulations), the
were 10% of sales in FY22 versus 6% in FY21. Million (26%) to FY22 consolidated revenues. The Dividend Distribution Policy is available on the
The acquired por tfolios have 20
Africa business scale-up continues to be driven Company’s website and can be accessed at https://
commercial products and a basket of
Regulated Markets by expanding geographical footprint in the region www.strides.com/cg-corporate-policies.html
ANDAs which shall help fast track group’s
and better penetration of existing markets through
The Regulated Markets vertical comprising new launch strategy for the US markets.
businesses in the US and Other Regulated Markets,
portfolio expansion. While the Institutional 4. Transfer to Reserves
Business is a low-margin business, it is critical in
including the UK, the EU, Canada, Australia, and Movement in Reserves and Surplus during the Aggregate consideration for the transaction
reducing under-recoveries, while the regulated
South Africa, witnessed a revenue decline of 8% financial year ended March 31, 2022, is provided was ~US$24 Million, which was financed by
markets volumes ramp up. Growth in this business
during the year. Business performance of this in the Statement of Changes in Equity included a combination of internal accruals and debt
will continue to be driven by improved wallet
market was impacted by a significant fall in in the Consolidated and Standalone Financial financing.
share in the products through cost leadership and
the US market revenues owing to Covid-related Statements (Refer Note no. 20 and 19 respectively).
selective expansion of the product portfolio.
headwinds, leading to drop in volumes and margin Given the scale and capabilities of this facility,
compression on account of heightened competitive 5. Corporate Updates Strides Pharma Inc., USA divested the West
Research & Development (R&D)
intensity and higher channel inventory. Palm Beach site in Florida in December 2021 to
During the year under review, Company has
During the year, R&D investments of the Company consolidate the soft gel capability (including
initiated/ undertaken the following key corporate
Other Regulated Markets had a tepid growth were at `970 Million. The Company has an ANDA VA opportunities) at Chestnut Ridge for better
actions:
impacted by Covid during the first half; however, basket of a wide range of dosage formats and a manufacturing cost synergies.
in the last quarter, the business witnessed a strong mix of acute and chronic products that will help
a) Acquisition of manufacturing facility in
rebound. diversify product offerings and render stability to b) Issuance of Equity Warrants to a
the US along with baskets of ANDAs
the portfolio. promoter group entity
US business To accelerate Company’s growth momentum
The Company allotted 2 Million Equity
The Company has 274 ANDAs, including 249 for the US business, the group acquired a
The US business contributed `11,650 Million (38%) Warrants on April 26, 2022, on a preferential
approved ANDAs, which provides substantial manufacturing facility situated at Chestnut
to the consolidated revenues of FY22, registering basis to M/s. Karuna Business Solutions LLP
growth visibility in the near term for the US Ridge, New York along with a basket of
27% de-growth over the last year. The business was (Karuna), a promoter group company, at a
business and an opportunity to launch new ANDA portfolio from the subsidiaries of Endo
significantly impacted by Covid-led challenges in price of `442/- per Equity Warrant, pursuant
products for the other global markets. International plc (Endo) during October 2021.
the market, leading to a lower prescription rate to the approval accorded by the Shareholders
The acquisition strengthens Strides’ portfolio,
for the products. The US business environment of the Company at the Extraordinary General
On a go-forward basis, the Company targets front-end presence, and local manufacturing
is constantly evolving post-Covid, with select Meeting held on April 7, 2022.
optimizing R&D investment for the US as it capability for the US.
products recouping both volume and price, while
unlocks value from the large basket of approved
several other products continue to face price The said allotment is in compliance with the
products. The Company is shifting its R&D focus The transaction was undertaken by Strides’
intensity and lower volume pick-up. While the provisions of the Companies Act, 2013, SEBI
to other regulated markets and other geographies subsidiaries in the US and Singapore, as
Company believes the ambiguity will continue in (Issue of Capital and Disclosure Requirements)
by leveraging the vast portfolio already approved. under:
the near term, given that Covid’s future impact Regulations, 2018 and other applicable
The Company’s focus on cost improvements will
is unknown, it stays confident to navigate the regulations.
significantly lead the new launches to achieve an Chestnut Ridge manufacturing facility
• 
evolving environment and meet a revenue target
improved price point for the commercial launch. was acquired by Strides Pharma Inc., a
of over $250 Million for the US market in FY23. The Company has received 25% of the upfront
step-down wholly owned subsidiary of
amount of `221 Million towards subscription
Outlook the Company in the US.
Other Regulated Markets of the Warrants from Karuna. Karuna has a
Considering the evolving business environment, right to apply for and get allotted, within a
Other Regulated Markets delivered 4% y-o-y This facility has an annual capacity of
Company has made several changes to its business period of 18 months from the date of allotment
growth in FY22. It contributed `11,180 Million 2 billion units across multiple dosage
with a focus on growth. Growth across the markets of Warrants, in one or more tranches, One
(36%) to the consolidated revenues of FY22. While forms and is registered with the Drug
will be driven by portfolio expansion, leveraging Equity Share of face value of `10/- each for
the business delivered a moderate performance, Enforcement Administration (DEA),
Company’s approved portfolio and new customer each Warrant.
the results were impacted by Covid-led disruption enabling it to manufacture controlled
acquisitions for its IP-led B2B business. The
for 3-4 months during the year. During the year, substances.
Company will aggressively focus on cost reduction

48 | Annual Report 2021-22 | 49

 Strides Pharma Science Limited

Statutory Reports
c) Amalgamation of Vivimed Life Sciences Bench and other statutor y/ regulator y Mr. Arun Kumar (DIN: 00084845), Founder Director of the Company shall be placed before
Private Limited into the Company approvals, as may be required. Procedural and Chairperson (Non-Executive Director) Shareholders of the Company at the ensuing AGM.
activities in this matter are underway. of the Company, was appointed as the Your Directors recommend his re-appointment on
The Board of Directors of the Company at
Executive Chairperson & Managing Director the Board of the Company.
their meeting held on February 10, 2022
d) Update on Stelis Biopharma Limited of the Company for a period of three years
have approved an updated Scheme of
(Stelis) effective from April 7, 2022. Approval of the Disclosures pertaining to Director being re-
Amalgamation for merger of its wholly owned
Shareholders of the Company is being sought appointed as required under the SEBI Listing
subsidiary, Vivimed Life Sciences Private Stelis, as a biopharmaceutical company,
through Postal Ballot for the said appointment. Regulations and Secretarial Standard on General
Limited (Vivimed) into the Company pursuant has integrated capabilities in development,
Mr. Arun Kumar is also one of the KMP of the Meetings issued by the Institute of Company
to the provisions of Section 230 to 232 of the scale-up and commercial manufacturing
Company effective April 7, 2022. Secretaries of India is provided in the explanatory
Companies Act, 2013 (Scheme). of biologics, bio betters, biosimilars and
statement to the Notice convening the 31st AGM of
vaccines.
4) Mr. Homi Rustam Khusrokhan (DIN: 00005085) the Company for reference of the Shareholders.
The Scheme was originally approved by the
was re-appointed as an Independent Director
Board during October 2020. However, the As at March 31, 2022, Stelis has over US$300
Company did not proceed at that time and Million of capital invested, of which US$225
of the Company for a second term of five years 7. Meetings of the Board and Board
the current Scheme supersedes the original Million has been invested as equity from
commencing from May 18, 2022 upto May 17, Committees
2027. Approval of the Shareholders of the
Scheme. Strides and other investors of Stelis which Details of meetings of Board and Board Committees
Company was received at the Extraordinary
includes global marquee investors such as held during FY22 along with information relating
General Meeting held on April 7, 2022.
Appointed Date for the said Scheme is April TPG Growth, Think Investment, Route One, to attendance of each of the directors/ committee
1, 2022, or such other date as the NCLT or GMS, and the family office of Mr. Mankekar members is provided in the Corporate Governance
Retirement by Rotation & Re-appointment
such other competent authority may direct apart from the Promoters of Strides. Report, which forms part of this Annual Report.
Proposal for re-appointment of Mr. Badree
in relation to the amalgamation of Vivimed
Komandur, retiring director, as Executive
with Strides. Company continues to evaluate options to
unlock value of its investments in Stelis.
The Scheme is subject to approval of the
8. Authorised Share Capital
shareholders and creditors of respective A detailed update on Stelis and its capabilities Authorised Share Capital of the Company as at March 31, 2022 is `1,883,700,000/- divided into 188,370,000
companies and approval of the Hon’ble is part of the Annual Report. equity shares of `10 each.
National Company Law Tribunal, Mumbai
Issued, Subscribed and Paid-up Share Capital
6. Board of Directors and Key Managerial Personnel (KMP) of the Company
Date Number of Shares Amount Remarks
As at the date of this Report, the Board comprised of Seven Directors viz., Two Executive Directors and Five April 1, 2021 89,680,964 equity shares of `896,809,640/- -
Non-Executive Directors of whom Four are Independent Directors, details of which are provided below: face value `10 each
March 31, 2022 89,790,214 equity shares of `897,902,140/- Includes 109,250 equity shares issued
# Name Designation face value `10 each pursuant to exercise of ESOP during
Executive Directors the year.
1 Arun Kumar Executive Chairperson & Managing Director (KMP) May 24, 2022 (i.e., as at 89,803,714 equity shares of `898,037,140/- Includes 13,500 equity shares issued
2 Badree Komandur Executive Director – Finance & Group CFO (KMP) date of this Report) face value `10 each pursuant to exercise of ESOP post
Balance Sheet Date.
Non-Executive Directors
Convertible Securities
3 Deepak Vaidya Non-Executive Director & Chairperson of Stakeholders Relationship Committee
April 26, 2022 2 Million equity warrants of `20,000,000/- Convertible within a period of 18
4 S Sridhar Independent Director & Chairperson of Audit Committee face value `10 each (Issue months from the date of allotment of
5 Bharat Dhirajlal Shah Independent Director & Chairperson of Nomination & Remuneration Committee Price: `442/- per warrant) Warrants, in one or more tranches.
6 Homi Rustam Khusrokhan Independent Director & Chairperson of Risk Management Committee
7 Dr. Kausalya Santhanam Independent Director & Chairperson of CSR Committee 9. Subsidiary, Joint Ventures and Associate Companies
Company Secretary Details of Subsidiaries, Joint Venture and Associate entities as at March 31, 2022 are provided herein below:
8 Manjula Ramamurthy Company Secretary (KMP)
Nature of Relationship India Overseas Total
Changes in the Board of Directors & KMP of the of the Company on January 14, 2022 through Subsidiaries 2 32 34
Company during the year and to the date of this Postal Ballot. Joint Ventures - 1 1
report is as under: Associates 3 5 8
1) Mr. Bharat Dhirajlal Shah (DIN: 00136969) 2) 
Re-appointed Mr. Deepak Vaidya (DIN:
Total 5 38 43
was re-appointed as an Independent Director 00337276), retiring director, as a non-executive
of the Company for a second term of three director of the Company at the Annual General
years commencing from June 15, 2021 upto Meeting held on September 3, 2021.
June 14, 2024. Approval of the Shareholders of
the Company was received on June 11, 2021 3) Dr. R Ananthanarayanan (DIN: 02231540),
through Postal Ballot. resigned from the post of Managing Director
& CEO (KMP) of the Company effective from
Further, in terms of Regulation 17 (1A) of the close of business hours of March 31, 2022
the SEBI Listing Regulations, approval for to pursue his personal interests outside the
continuation of Mr. Shah as an Independent organization.
Director of the Company beyond the age of
75 years, was received from the Shareholders

50 | Annual Report 2021-22 | 51

 Strides Pharma Science Limited

Statutory Reports
List of Subsidiaries, Joint Venture and Associate However, in terms of the first proviso to Section Policy for Governance of Related Party Transactions Cost Auditors
entities which have become or ceased to be part 136(1) of the Companies Act, 2013, the Annual is available on the Company’s website at https://
Pursuant to Section 148(1) of the Companies
of the Group forms part of Form AOC-1, enclosed Report, excluding the aforesaid information, is www.strides.com/cg-corporate-policies.html
Act, 2013, Company is required to maintain cost
as Annexure-1 to this Report. being sent to the Shareholders of the Company
records and accordingly such accounts and records
and others entitled thereto. 17. Auditors and Audit Reports are made and maintained.
10. Accounts of Subsidiaries Secretarial Audit Report
The said information is available for inspection up
In accordance with Section 129 (3) of the Pursuant to Section 148(3) and the Companies (Cost
to the date of the ensuing AGM. Any Shareholder M/s. Gopalakrishnaraj H H & Associates, Company
Companies Act, 2013, the Company has prepared Records and Audit) Rules, 2014, M/s. Rao, Murthy
interested in obtaining a copy thereof, may write Secretaries in Practice (Certificate of Practice No:
a consolidated financial statement. & Associates, Cost Accountants (Firm Registration
to the Company Secretary in this regard. 4152) is the Secretarial Auditor for the Company.
No.: 000065), were appointed as the Cost Auditors
A statement containing salient features of the of the Company for FY22.
financial statements of the Company’s subsidiaries,
14. Corporate Social Responsibility (CSR) Secretarial Audit for FY22, inter-alia, included
audit of compliance with the Companies Act,
joint ventures and associate companies as required Strides CSR initiatives help address socio-
2013, and the Rules made thereunder, SEBI Listing
18. Internal Financial Controls
in Form AOC 1 is enclosed as Annexure-1 to this economic challenges in the realms of Health and
Regulations amongst others. The Company has in place adequate framework
Report. Hygiene, Education, Employability and Disaster
for Internal Financial Controls as required under
Management, which are projects in accordance
The Secretarial Audit Report does not contain any Section 134(5)(e) of the Companies Act, 2013.
11. Corporate Governance and Management with Schedule VII of the Companies Act, 2013.
qualifications, observations or adverse remarks During the year under review, such controls were
Discussion and Analysis and is enclosed as Annexure-6 to this report. tested and no material weaknesses in their design
During the year, the Company amended its
As per SEBI Listing Regulations, Corporate or operations were observed.
CSR Policy to align with the provisions of the
Governance Report along with the Auditor’s Statutory Auditors
Companies Act, 2013. CSR Policy of the Company
Certif icate thereon, and the Management
is available on its website and can be accessed at
19. Risk Management
The Auditors Report given by M/s. B S R & Co.
Discussion and Analysis Report forms part of this
https://www.strides.com/corporate-CSR.html LLP, Chartered Accountants (Firm Registration The Company has a risk management framework
report.
no. 101248W/ W-100022) for the financial year for identification and management of risks. In line
A detailed report on the CSR activities undertaken ended March 31, 2022, is enclosed along with the with SEBI Listing Regulations, the Company has
12. Employee Stock Option Scheme during FY22 is enclosed as Annexure-4 to this financial statements in the Annual Report. The constituted a Risk Management Committee (RMC)
During the year under review, Company has one Report. Auditors Report for the year under review does not comprising of members of the Board and Senior
Stock Option Plan viz., Strides Employee Stock contain any qualifications, observations or adverse Management personnel. Composition of RMC is
Option Plan 2016. 15. Loans, Guarantees or Investments remarks. provided in the Corporate Governance Report,
which forms part of this Report.
Details of Loans granted, Guarantees given and
Statement giving detailed information on stock M/s. B S R & Co. LLP, Chartered Accountants were
Investments made during the year under review,
options granted to Employees under the Company’s appointed as Statutory Auditors of the Company at RMC is entrusted with the responsibility of
covered under the provisions of Section 186 of the
Employee Stock Option Plan as required under the AGM held on September 15, 2017 for a term of overseeing strategic, operational and financial
Companies Act, 2013 are given in the Note no. 39 to
Section 62 of the Companies Act, 2013 read five (5) years from the conclusion of the 26th AGM risks that the organisation faces, along with the
the standalone financial statements in the Annual
with Rule 12 of Companies (Share Capital and till the conclusion of the 31st AGM of the Company. adequacy of mitigation plans to address such risks.
Report.
Debentures) Rules, 2014 and Regulation 14 of SEBI
(Share Based Employee Benefits and Sweat Equity) The Audit Committee and the Board of Directors Additional details relating to Risk Management
Regulations, 2021 is enclosed as Annexure-2 to
16. Contracts or Arrangements with Related of the Company at their meeting held on May 24, are provided in the Management Discussion and
this Report and is also available at https://www.
Parties 2022 approved the re-appointment of M/s. B S R & Analysis report forming part of this Report.
strides.com/investor-financial.html All the transactions with related parties are in the Co. LLP, Chartered Accountants as the Statutory
ordinary course of business and at arm’s length Auditors for a second term of five (5) years i.e., from 20. Other Disclosures
13. Particulars of Employees basis. Further, there are no materially significant the conclusion of the 31st AGM till the conclusion
a) Nature of Business of the Company
related party transactions made by the Company of the 36th AGM of the Company to be held in the
The statement containing particulars in terms of
which may have potential conf lict with the year 2027. There has been no change in the nature of
Section 197 (12) of the Companies Act, 2013 read
interests of the Company. business of the Company during the year
with Rule 5(1) of the Companies (Appointment and
The necessary resolution seeking your approval under review.
Remuneration of Managerial Personnel) Rules,
Information on transactions with related parties for their re-appointment as statutory auditors
2014 forms part of this report and is appended
pursuant to section 134(3)(h) of the Companies are included in the notice of ensuing AGM along b) Deposits
herewith as Annexure-3 to this report.
Act 2013 read with Rule 8(2) of the Companies with necessary disclosures required under
The Company has not accepted any deposits
(Accounts) Rules, 2014 is enclosed as Annexure-5 the Companies Act, 2013 and the SEBI Listing
As per the provisions of Section 197(12) of covered under Chapter V of the Companies
to this Report. Regulations.
the Act read with Rule 5(2) and 5(3) of the Act, 2013. Accordingly, no disclosure or
Companies (Appointment and Remuneration of reporting is required in respect of details
All the transactions with related parties are Internal Auditors
Managerial Personnel) Rules, 2014, a statement relating to deposits.
disclosed in Note no. 44 to the standalone financial
containing names of top ten employees in terms M/s. Grant Thornton Bharat LLP (formerly known
statements in the Annual Report.
of remuneration drawn and the particulars of as Grant Thornton India LLP) are the Internal c) Whistle Blower Policy
employees is to be provided. Auditors of the Company.
Pursuant to provisions of section 177(9) of
the Companies Act, 2013 and SEBI Listing
During the year under review, Internal Auditors
Regulations, the Company has a Whistle
were satisfied with the management response on
Blower Policy in place.
the observations and recommendations made by
them during the course of their audit.

52 | Annual Report 2021-22 | 53

 Strides Pharma Science Limited

Statutory Reports
The said Policy provides appropriate avenues Draft Annual Return for FY22, is also uploaded Further, all the IDs have confirmed that they have made judgments and estimates that are
to the directors, employees and stakeholders in the above section. Upon filing the same registered with the databank of Independent reasonable and prudent so as to give a true
of the Company to make protected disclosures with Registrar of Companies, filed return shall Directors maintained by Indian Institute of and fair view of the state of affairs of the
in relations to the matters concerning the be uploaded. Corporate Affairs in accordance with the Company at the end of the financial year and
Company. The said Policy also establishes provisions of Section 150 of the Companies Act, of the profit and loss of the Company for that
adequate mechanism to enable employees to i) Conservation of Energy, R&D, 2013. period;
report instances of leak or suspected leak of Technology Absorption and Foreign
unpublished price sensitive information. Exchange Earnings/ Outgo 22. Board Evaluation (c) directors have taken proper and sufficient care
for the maintenance of adequate accounting
Details of Energ y Conversation, R&D, Evaluation of all the Directors, Committees,
Audit Committee of the Company oversees records in accordance with the provisions of
Technology Absorption and Foreign Exchange Chairperson of the Board, and the Board as a whole
implementation of the Whistle Blower Policy. this Act for safeguarding the assets of the
Earnings/ Outgo are enclosed as Annexure-7 was conducted for the year. Evaluation process
During the year, Company has not received Company and for preventing and detecting
to this Report. has been explained in the Corporate Governance
any protected disclosure. fraud and other irregularities;
Report, which is part of this report.
j) Policy on prevention of Sexual
Strides’ Whistle Blower Policy is available on (d) directors have prepared the annual accounts
the Company’s website and can be accessed
Harassment at workplace 23. Material changes and commitments, if of the Company on a going concern basis;
at https://www.strides.com/cg-corporate-
any
Company has in place a Policy on Prevention
policies.html of Sexual Harassment in line with the There were no material changes and commitments (e) directors have laid down internal financial
requirements of The Sexual Harassment affecting the financial position of the Company controls to be followed by the Company
d) Policy on Directors Appointment and of Women at the workplace (Prevention, which occurred between the end of the Financial and that such internal financial controls are
Remuneration (Strides Nomination and Prohibition & Redressal) Act, 2013 (PoSH Act). Year to which this financial statement relates and adequate and are operating effectively;
Remuneration Policy) Strides has adopted a gender-neutral policy. the date of this report.
(f) directors have devised proper systems to
The policy of the Company on Directors’
appointment and remuneration, including
In terms of the PoSH Act, Company has also 24. Directors’ Responsibility Statement ensure compliance with the provisions of all
constituted Internal Complaints Committee applicable laws and that such systems were
the criteria for determining qualifications, Pursuant to the requirement under section 134 (3)
(ICC) to redress complaints received on adequate and operating effectively.
positive attributes, independence of a director (c) of the Companies Act, 2013 with respect to the
sexual harassment. Adequate workshops
and other matters, as required under Section Directors’ Responsibility Statement, the Board of
178 of the Companies Act, 2013 is available on
and awareness programmes against sexual
Directors of Company state that:
25. Acknowledgement
harassment are conducted across the
the Company’s website and can be accessed Your Directors take this opportunity to thank all its
organisation.
at https://www.strides.com/cg-corporate- (a) in the preparation of the annual accounts, stakeholders, employees, medical professionals,
policies.html the applicable accounting standards have business partners, government & other statutory
A disclosure relating to PoSH complaint is
been followed along with proper explanation bodies, banks, financial institutions, analysts and
provided in the Corporate Governance Report,
e) Disclosure on compliance with relating to material departures, if any; members for their continued support and valuable
which forms part of this Report.
Secretarial Standards cooperation.
(b) 
directors have selected such accounting
The Company complies with all applicable k) General
policies and applied them consistently and
mandatory secretarial standards issued by
a) 
During the year, the Company has
the Institute of Company Secretaries of India.
not made any application under the For and on behalf of the Board of Directors
Insolvency and Bankruptcy Code, 2016.
f) Reporting of Fraud
Further, there is no Corporate Insolvency
Arun Kumar Badree Komandur
No frauds were reported by the Auditors as Resolution Process initiated under the
Date: May 24, 2022 Executive Chairperson & Managing Director Executive Director – Finance & Group CFO
specified under Section 143 of the Companies IBC Code.
Act, 2013 for the Financial Year ended March Place: Bengaluru DIN: 00084845 DIN: 07803242
31, 2022. b) During the year, there was no one-time
settlement done with the Banks or
g) Significant and material orders passed Financial Institutions.
by the Regulators or Courts
21. Declaration by Independent Directors
There were no significant and material
orders passed by the Regulators/ Courts that In accordance with Section 149(7) of the Companies
would impact the going concern status of the Act, 2013 and Regulation 25(8) of the SEBI Listing
Company and its future operations. Regulations, each independent director has
confirmed to the Company that they continue to
h) Annual Return of the Company meet the criteria of independence as laid down
in Section 149 (6) of the Companies Act, 2013 and
Pursuant to Section 92 of the Companies Act,
Regulation 16(1)(b) of the SEBI Listing Regulations.
2013 and Rules made thereunder, Annual
Returns filed by the Company for the prior
In the opinion of the Board, Independent Directors
financial years has been uploaded on the
of the Company possess necessary expertise,
website of the Company and can be accessed
integrity and experience in their respective fields.
at https://www.strides.com/cg-annual-return.
html

54 | Annual Report 2021-22 | 55

56 |
Annexure 1
Form AOC 1
(Pursuant to first proviso to sub section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014)
(Statement containing salient features of the financial statement of subsidiaries/associate companies/ joint ventures)

PART A - SUBSIDIARIES
` In Million

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Capital Total
SI. Country of Reporting Reporting Exchange (Includes liabilities Investments Provision
Name of the Subsidiary Total Profit before Profit after Proposed Share-
No. incorporation Period Currency Rate Monies Reserves (other than other than in Turnover for
Assets taxation taxation dividend holding (%)
pending Capital & subsidiaries taxation
allotment) reserves)
1 Altima Innvovations Inc. USA 31-03-2022 USD 75.93 204.33 (203.74) 0.58 - - - (0.04) - (0.04) - 100.00%
2 Apollo Life Sciences South Africa 31-03-2022 ZAR 5.19 - - 1.87 1.87 - (0.32) 3.20 0.01 3.19 - 51.76%
Holdings Proprietary
Limited
3 Arco Lab Private Limited India 31-03-2022 INR 1.00 1.72 159.46 495.19 334.01 - 899.54 43.26 11.95 31.31 - 100.00%
4 Arrow Life Sciences Malaysia 31-03-2022 MYR 17.98 0.99 (1.87) (0.68) 0.20 - - (0.29) - (0.29) - 100.00%
(Malaysia) SDN BHD
5 Arrow Pharma Pte Ltd Singapore 31-03-2022 USD 75.93 148.97 (148.12) 0.71 (0.14) - - (0.98) - (0.98) - 100.00%
6 Arrow Pharma (Private) Sri Lanka 31-03-2022 LKR 0.26 13.12 (13.12) - 0.01 - - (0.31) - (0.31) - 0.00%
Limited *
7 Arrow Pharma Life Inc. ** Philippines 31-03-2022 PHP 1.46 14.03 (14.03) - 0.01 - - 1.36 - 1.36 - 0.00%
8 Beltapharm S.p.A ^ Italy 31-12-2021 EUR 84.03 122.35 54.31 474.35 297.69 - 510.29 (22.32) - (22.32) - 97.94%
9 Eris Pharma GmbH^ Germany 31-12-2021 EUR 84.03 2.10 (24.97) 13.98 36.85 - 7.54 (3.40) - (3.40) - 70.00%
10 Fairmed Healthcare AG^ Switzerland 31-12-2021 CHF 82.28 101.20 (132.44) 1,907.35 1,938.58 - 802.51 (162.67) 0.14 (162.81) - 70.00%
11 Fairmed Healthcare Germany 31-12-2021 EUR 84.03 17.65 (1,650.71) 661.57 2,294.63 - 373.82 (301.37) 0.03 (301.40) - 70.00%
GmbH^
12 Generic Partners R&D Singapore 31-03-2022 AUD 56.80 - - - - - - - - - - 0.00%
Pte. Ltd. #
13 Generic Partners Singapore 31-03-2022 SGD 56.03 - - - - - - 0.10 - 0.10 - 0.00%
(International) Pte.
Limited #
14 Generic Partners Canada 31-03-2022 CAD 60.74 - - - - - - 12.60 - 12.60 - 0.00%
(Canada) Inc. ***
15 Generic Partners UK UK 31-03-2022 GBP 99.74 0.01 41.56 42.43 0.86 - - (2.72) - (2.72) - 100.00%
Limited
16 Pharmapar Inc.@^ Canada 31-12-2021 CAD 60.74 303.72 (438.77) 74.45 209.49 - 119.04 (121.84) - (121.84) - 100.00%
17 Shasun Pharma Solutions USA 31-03-2022 USD 75.93 39.78 (39.78) - - - - 0.70 - 0.70 - 0.00%
Inc. $
18 Stabilis Pharma Inc. USA 31-03-2022 USD 75.93 0.08 (0.28) 0.07 0.26 - - (0.24) - (0.24) - 100.00%
19 Stelis Biopharma Malaysia 31-03-2022 MYR 17.98 238.81 (145.83) 93.42 0.44 - - 1.34 - 1.34 - 100.00%
(Malaysia) SDN. BHD.
20 Strides Arcolab UK 31-03-2022 USD 75.93 4,843.96 (83.32) 8,108.85 3,348.22 664.03 - (479.28) - (479.28) - 100.00%
International Limited
21 Strides CIS Limited Cyprus 31-03-2022 USD 75.93 0.25 (2.78) 0.63 3.17 - - 0.28 - 0.28 - 100.00%

` In Million

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Capital Total
SI. Country of Reporting Reporting Exchange (Includes liabilities Investments Provision
Name of the Subsidiary Total Profit before Profit after Proposed Share-
No. incorporation Period Currency Rate Monies Reserves (other than other than in Turnover for
Assets taxation taxation dividend holding (%)
pending Capital & subsidiaries taxation
allotment) reserves)
22 Strides LifeSciences 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%
Limited
23 Strides Pharma (Cyprus) 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%
Limited
24 Strides Pharma (SA) Pty South Africa 31-03-2022 ZAR 5.19 - (40.32) 254.53 294.85 - 226.28 (22.24) - (22.24) - 60.00%
Ltd
Strides Pharma Science Limited

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 Australia 31-03-2022 AUD 56.80 103.21 (63.86) 41.27 1.92 - - (23.58) - (23.58) - 100.00%
Pty Ltd
28 Strides Pharma Global 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%
(UK) Limited
29 Strides Pharma Asia Pte. 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%
Ltd.
30 Strides Pharma Canada Canada 31-12-2021 CAD 60.74 476.22 (86.80) 418.89 29.47 - 125.64 4.29 - 4.29 - 100.00%
Inc.^
31 Strides Pharma Global Pte. 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%
Limited
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 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%
International Limited
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, Mexico 31-03-2022 MXN 3.80 42.87 (24.67) 24.97 6.77 - 2.04 (3.32) - (3.32) - 80.00%
SA de CV
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 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%
Limited
40 Vensun Pharmaceuticals USA 31-03-2022 USD 75.93 4,618.82 (5,826.92) (1,208.11) - - - (2.20) - (2.20) - 100.00%
Inc.
41 Vivimed Life Sciences 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%
Private Limited

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
Annual Report 2021-22 | 57

Statutory Reports
 Strides Pharma Science Limited

Statutory Reports
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to
Associate Companies and Joint Ventures
Annexure 2
Details of Strides Employee Stock Options pursuant to SEBI (Share Based Employee
PART B - ASSOCIATES/ JOINT VENTURE Benefits and Sweat Equity) Regulations, 2021 and Companies Act, 2013
Strides Global
During the year under review, Company had one ESOP scheme viz., Strides ESOP Plan 2016.
SI. Stelis Biopharma Aponia Laboratories Sihuan Strides (HK),
Name of Associate / Joint Venture Consumer Healthcare
No. Limited, India Inc, USA Limited
Limited, UK With respect to the above, please find below the details of Employee Stock Options pursuant to SEBI (Share Based
1 Latest audited Balance Sheet Date 31st March 2021 31st March 2021 31st March 2021 31st December 2020 Employee Benefits) Regulations, 2014 and the Companies Act, 2013 as at 31 March 2022.
2 Shares of Associate/ Joint Venture
held by the Company on the year end Description Strides ESOP Plan 2016
No. 739,288 equity 3,734,074 21,833,626 shares 2,450,000 shares A Disclosure of confirmation of any material change in the scheme(s) and None during the year
shares preference shares is in compliance with the regulations
Amount of Investment in Associate/ ` 4,886.68 Million Nil ` 1,223.72 Million ` 131.02 Million B Disclosures in terms of the accounting standards prescribed by the Please refer to Note No. 42 of the Standalone
Joint Venture Central Government in terms of section 133 of the Companies Act, 2013 Financial Statements
Extent of Holding % 47.90% 24.00% 53.64% voting rights 49.00% (18 of 2013) including the ‘Guidance note on accounting for employee
share-based payments’ issued in this regard from time to time
3 Description of how there is Shareholding Shareholding Shareholding Shareholding
significant influence and board and board and board C Diluted EPS on issue of shares pursuant to all the schemes covered Continuing Operations `20.07
representation representation representation under the regulations shall be disclosed in accordance with
Discontinued Operations `0.00
‘Accounting Standard 20 - Earnings Per Share’ issued by Central
4 Reason why the Associate/ Joint Not Applicable Not Applicable Not Applicable Not Applicable Government or any other relevant accounting standards as prescribed Total Operations `20.07
Venture is not consolidated from time to time
5 Networth attributable to ` 2,878.26 Million ` 21.87 Million ` 1517.02 Million ` 170.22 Million D Details relating to ESOP
Shareholding as per latest auditied
Balance Sheet 1) Total options approved under the Scheme 30,00,000 Options
6 Profit/ (Loss) for the year 2) Date of Members’ approval April 21, 2016
Considered in Consolidation (` 577.74) Million (` 4.16) Million (` 222.11) Million (` 8.74) Million 3) Vesting requirements 3-year scheme
Not considered in Consolidation Nil Nil Nil Nil
Vesting schedule:
Notes: Year 1: 20%
Year 2: 30%
1 Subsidiaries of Associates (4 entities) are not disclosed above. Year 3: 50%
4) Pricing formula Decided by the Compensation Committee
2 Regional Bio Equivalence Centre S.C., Ethiopia, a step-down associate company not disclosed in ‘Part B -
from time to time, which shall be, not less
Associates/ Joint Ventures’ as investment in this entity is completely written off. than 75% of the market price of the shares on
the date of grant of option.
For and on behalf of Board of Directors of 5) Maximum term of options granted Three years from the date of initial grant
Strides Pharma Science Limited under the scheme, subject to vesting schedule
6) Source of shares (primary, secondary or combination) Primary
Arun Kumar Badree Komandur Manjula Ramamurthy 7) Variation of terms of options None
Executive Chairperson & Executive Director – Company Secretary E Method used to account for ESOP Fair Value Method
Date: May 24, 2022 Managing Director Finance & Group CFO ACS Membership no.: A30515
F Where the Company opts for expensing of the options using the Compensation Cost has been accounted under
Place: Bengaluru DIN: 00084845 DIN: 07803242 intrinsic value of the options, the difference between the employee fair value.
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 profits and
on EPS of the Company shall also be disclosed.
G Option movement during the year
(i) Outstanding options as at April 1, 2021 2,45,900 Options
(ii) Options granted during the year under review 67,500 Options
(iii) Options lapsed during the year under review 55,400 Options
(iv) Options vested during the year under review 2,06,600 Options
(v) Options exercised during the year under review 1,22,750 Options
(vi) Total number of shares arising as a result of exercise of options 1,22,750 Options
(vii) Money realised by exercise of options `3,61,87,000/-
(viii) Total number of options in force at the end of the period ending March 1,35,250 Options
31, 2022
(ix) Available for further grant 25,90,700 Options
H Weighted average exercise price `393.98
I Weighted average fair value of options `236.29
J Employee-wise details of options granted during the year under
review:
(i) Senior Managerial Personnel/ Key Managerial Personnel Refer Note 1 below

58 | Annual Report 2021-22 | 59

 Strides Pharma Science Limited

Statutory Reports
Description
(ii) Any other employee who received grant in any one year of option
Strides ESOP Plan 2016
Refer Note 2 below
Annexure 3
amounts to 5% or more of options during that year Statement of Disclosure of Remuneration under Section 197 of the Companies Act, 2013 read
(iii) Identified employees who were granted options, during any one year, NONE with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
equal or exceeding 1% of the issued capital (excluding outstanding Rules, 2014
warrants and conversion) of the Company at the time of grant
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
K A description of the method and significant The Fair Value of options granted were estimated on the grant
assumptions used during the year to estimate the fair date using the Black Scholes method.
value of options, including the following weighted As at March 31, 2022, Strides’ Board comprises of 8 Directors - viz., 2 Executive Directors, 4 Independent
Details of assumptions used in the estimation of fair value as
average information: Directors and 2 Non-Executive Directors.
at grant date for options granted during the previous year are
given below:
Non-Executive & Independent Directors receive sitting fees of `100,000/- for attending each meeting of the
Board and Audit Committee.
ESOP 2016
Scheme
LOT 1 LOT 2 LOT 3 LOT 4 LOT 5 LOT 6 LOT 7 LOT 8 LOT 9 LOT 10 LOT 11 Further, Non-Executive Directors and Independent Directors are also eligible for commission not exceeding
Grant date June 15, May 18, Aug 14, Aug 8, Jan 29, July 29, Sep 20, Oct 25, May 20, May 26, Aug 31, 1% of the net profits of the Company for such financial year, computed in the manner provided in Section
2016 2017 2017 2018 2019 2019 2019 2019 2020 2021 2021 198 of the Companies Act, 2013.

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
Median remuneration for the period under review is approx. `5,54,093 per annum.
Repriced on April 24, 2018* (in `) 711.85 670.56 555.18 NA NA NA NA NA NA NA NA
One-time payment made to employees for individual projects, if any, and Full & Final Settlement made at
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%
the time of separation are excluded while considering the median remuneration.
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 69.47% 42.86% 38.96% 34.30% 32.65% 27.28% 32.67% 35.76% 36.52% 39.06% 38.26% Ratio of remuneration of the Executive Directors to the median remuneration of the employees of the
of shares Company for the financial year ended March 31, 2022 is as under:
Expected dividend/ yield 40% 40% 40% 40% 20% 20% 20% 20% 20% 20% 20%
Ratio of remuneration to the median
Name of Director Designation
The price of the underlying 1128.94 1037.51 896.72 414.85 504.50 352.75 360.10 373.00 414.40 798.60 607.70 remuneration
share in market at the time of Dr. R Ananthanarayanan Managing Director & CEO 173
option grant (in `)
Badree Komandur Executive Director - Finance & Group CFO 79

Volatility is calculated from the method of historical volatility, based on the three years data of closing market
b. Percentage increase in the median remuneration of employees during the financial year ended March 31,
prices of the Company’s shares as per the data recorded by NSE and the average number of trading days during
2022 was 6.56%.
that period. It is the percentage co-efficient within the option pricing formulae.
Percentage increase in remuneration of Executive Directors, Chief Executive Officer, Chief Financial Officer,
* Pursuant to de-merger of Commodity API business of the Company to Solara Active Pharma Sciences Limited
Company Secretary during the financial year ended March 31, 2022 is as under:
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. Name of Director/ KMP Designation % increase in remuneration in FY 2022
Dr. R Ananthanarayanan Managing Director & CEO 0%
Note 1: Employee wise details of options granted during the year under review:
Badree Komandur Executive Director - Finance & Group CFO 0%
Exercise price Manjula Ramamurthy Company Secretary 30.53%
Name of Employee Designation Category No. of options Scheme name
(in `)
1 Dr. Raviraj Pillai Chief Scientific Officer SMP 25,000 599.00 ESOP 2016 c. Company had 2,345 permanent employees (including Union employees) on the rolls of Company as at March
2 Dr. Tanaya Mishra Chief Human Resource SMP 25,000 455.80 ESOP 2016 31, 2022 on a standalone basis.
Officer (CHRO)
d. Average percentile increase made in the salaries of employees other than the managerial personnel in the
Note 2: Employees who received grant more than 5% of FY22 grant: last financial year was around 8.63%.

Name of Employee Designation Category No. of options

Exercise price
Scheme name  ompany affirms that remuneration to the Directors and Key Managerial Personnel is as per the remuneration
C
(in `)
policy of the Company.

}
1 Surendra Kumar Executive VP & Global Head 10,000 455.80 ESOP 2016
Manufacturing Other Employee
For and on behalf of the Board of Directors
2 Dr. Vellaian Karuppiah VP & Global Manufacturing 7,500 455.80 ESOP 2016

Kindly note that this report is also available at http://www.strides.com/investor-financial.html Arun Kumar Badree Komandur
Date: May 24, 2022 Executive Chairperson & Managing Director Executive Director – Finance & Group CFO
For and on behalf of the Board of Directors Place: Bengaluru DIN: 00084845 DIN: 07803242

Arun Kumar Badree Komandur

Executive Chairperson & Executive Director – Finance & Group CFO
Date: May 24, 2022 Managing Director DIN: 07803242
Place: Bengaluru DIN: 00084845

60 | Annual Report 2021-22 | 61

 Strides Pharma Science Limited

Statutory Reports
Annexure 4

CSR Registration
Date of transfer
None

Date of transfer
-
CSR00006315
Mode of Implementation -
Through Implementing
Corporate Social Responsibility Report FY 2021-22

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

Foundation
Schedule VII as per second proviso to section 135(5).

Schedule VII as per second proviso to section 135(5).

Strides
Amount transferred to any fund specified under

Amount transferred to any fund specified under

c) 
Outline projects and geog raphies for
1. Brief Outline on CSR Policy of the

Name
undertaking CSR initiatives;
Company

Amount.
None

Amount.
-
At Strides, community development programmes d) 
Prov ide f ramework for select ion,

Implementa
tion - Direct
are integral to our sustainability strategy. The implementation, management and monitoring

(Yes/No).
Mode of
Company strives to go beyond compliance of CSR initiatives.

32,54,785 No
and create sustainable value for communities.
Focus Areas of Engagement

Amount transferred
to Unspent CSR
Account for the
project as per
Section 135(6) (in `).

32,54,785
Strides CSR initiatives help address socio-
economic challenges in the realms of Health and
Strides CSR initiatives help address socio-
Hygiene, Education, Employability and Disaster
economic challenges in the realms of Health and
Management.
Hygiene, Education, Employability and Disaster
Management.
The Policy encompasses our philosophy towards

Name of the Fund

None

Name of the Fund

-
Amount spent
in the current
financial Year
(in `).

11,67,540

11,67,540

(c) Details of CSR amount spent against Other Than Ongoing Projects for the financial year:
CSR and lays down guidelines and mechanisms
Projects to promote the wellbeing of the society has

Amount Unspent (in `)

Amount Unspent (in `)

for undertaking socially beneficial programmes
been developed post a comprehensive Community
for welfare and sustainable development of the
Need Analysis.
community at large.
CSR Projects Implementation

Amount
allocated
for the project
(in `).

4,50,00,000

4,50,00,000
Objectives of the Policy

(b) Details of CSR amount spent against ongoing projects for the financial year:
CSR activities directly or through Strides
a) Serve as the principal guiding document for
Foundation, a Trust established by the Company
Strides CSR initiatives;
as a not-for-profit organisation or such other
Implementation Agencies as approved by the CSR
b) Describe core themes and related impact

Date of transfer
29-Apr-22

Date of transfer
-
Committee of the Company.
areas as per Schedule VII;

Duration

3 years
Project
2. Composition of the CSR Committee:

Total Amount transferred to Unspent

Total Amount transferred to Unspent

CSR Account as per section 135(6).

CSR Account as per section 135(6).

Date of Number of Number of meetings

Bengaluru
Designation/ Nature of Appointment as meetings of CSR of CSR Committee

Anekal,
# Name of the Director

Location of the

District
Directorship Member of the Committee held attended during the

8 (a) CSR amount spent or unspent for the financial year:

project.
Committee during the year year
1 Dr. Kausalya Santhanam Chairperson/ Independent Jan 9, 2020 2 2
Director

Karnataka
Amount.
32,54,785

Amount.
-
2 Homi Rustam Khusrokhan Member/ Independent May 18, 2017 2 2
Director

State
3 Arun Kumar Member/ Executive Director May 23, 2014 2 2
& Chairperson

Local area (Yes/

4 Deepak Vaidya Member/ Non-Executive May 23, 2014 2 2
Director

Total Amount spent: `2,07,76,215.00

No).

Yes
3. 
Web-link relating to Composition of CSR 6 Average net profit of the company as per
section 135(5): `1,20,14,75,031

list of activities
Committee, CSR Policy and CSR Projects approved

in Schedule VII
Item from the

Promoting
by the Board are disclosed on the Company’s

Education
to the Act.
website on https://www.strides.com/corporate-
(a)  wo percent of average net profit
T `2,40,29,500.62
CSR.html 7

(ii)
of the company as per section

Total Amount Spent for the FY

Total Amount Spent for the FY

135(5)
4. Details of Impact assessment of CSR projects (b)  urplus arising out of the
S 0
carried out in pursuance of sub-rule (3) of rule 8

Goverment School -
CSR projects or programmes

Name of the Project.

of the Companies (Corporate Social Responsibility or activities of the previous

Strides’ Model
Policy) Rules, 2014: Not Applicable financial years

Vidyadhama
(c)  mount required to be set off for
A 0

1,96,08,675
5. Details of the amount available for set off in

11,67,540
the financial year, if any

TOTAL
pursuance of sub-rule (3) of rule 7 of the Companies (d) Total CSR obligation for the `2,40,29,500.62
(in `)

(in `)
(Corporate Social Responsibility Policy) Rules, 2014 financial year (7a + 7b - 7c)

No
Sl.
and amount required for set off for the financial

year, if any: NIL 

62 | Annual Report 2021-22 | 63
 Strides Pharma Science Limited

Statutory Reports
CSR Registration
(d) Amount spent in Administrative Overheads -
Mode of Implementation -

CSR00006315

CSR00006315

CSR00006315

CSR00006315
CSR00006315

CSR00006315
CSR00006315

CSR00006315

CSR00006315

CSR00006315
CSR00006315
Through Implementing

(e) Amount spent on Impact Assessment, if applicable -

(f) Total amount spent for the Financial Year (8b+8c+8d+8e) 2,07,76,215
Number
Agency

(g) Excess amount for set off, if any : The Company does not intend to utilize this provision

NA
Sl. No Particular
Foundation

Foundation

Foundation

Foundation
Foundation

Foundation
Foundation

Foundation

Foundation

Foundation
Foundation
Amount (in `)

Company
Direct by
(i) Two percent of average net profit of the company as per section 135(5) 2,40,29,500.62
Strides

Strides

Strides

Strides
Strides

Strides
Strides

Strides

Strides

Strides
Strides
Name

(ii) Total amount spent for the Financial Year 2,07,76,215.00

(iii) Excess/Short amount spent for the financial year [(ii)-(i)] -32,53,285.62
Implementa
tion - Direct

(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial -
(Yes/ No)
Mode of

years, if any

Yes
No

No

No

No

No
No

No
No

No

No
No
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] -

9 (a) Details of Unspent CSR amount for the preceding three financial years: NA
Amount
spent for the
Project

50,00,000

26,19,400

CSR SPEND HEALTH & HYGIENE CATEGORY - TOTAL 1,03,66,990

12,72,206

38,71,425
24,00,000

25,44,939

13,50,000

17,23,191

5,92,932
2,95,590

54,280

3,73,191

30,54,137

36,47,069
1,96,08,675
52,000

Amount Amount transferred to any fund specified under Amount

transferred to Amount spent Schedule VII as per section 135(6), if any. remaining to
Preceding Unspent CSR in the reporting be spent in
Sl. No
Financial Year. Account under Financial Year Name of the Date of succeeding
section 135 (6) (in `). Amount (in `). financial years.
Fund transfer.
Puducherry

Puducherry
Puducherry Puducherry

Puducherry

Puducherry
Puducherry Puducherry
Location of the project.

(in `) (in `)
Bengaluru

Bengaluru

Bengaluru
Bengaluru

Bengaluru

Bengaluru
Anekal,

Anekal,
District

- - - - - - - -
Urban

Rural

Rural

Rural
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding

CSR SPEND DISASTER MANAGMENT CATEGORY - TOTAL

financial year(s): NA
Puducherry

Puducherry
Puducherry

Puducherry
Karnataka

Karnataka

Karnataka
Karnataka

Karnataka

Karnataka
Amount Cumulative
State

Total Amount spent on the amount spent Status of

Financial Year in

CSR SPEND EMPLOYABILITY CATEGORY - TOTAL

Name of the allocated for project in at the end the project -
Sl. No Project ID which the project
Project the Project the reporting of reporting Completed /
CSR SPEND EDUCATION CATEGORY - TOTAL

commenced
(Yes/No).

(in `) Financial Year Financial Year. Ongoing

Local
area

Yes

Yes

Yes
Yes

Yes

Yes

Yes
Yes

Yes

Yes

Yes
Yes

(in `). (in `)

- - - - - - - -
promoting health care including

promoting health care including

promoting health care including

10 In case of creation or acquisition of capital asset, furnish the details relating to the
Enhancing vocational skills for
making available safe drinking
list of activities in Schedule VII

CSR SPEND - GRAND TOTAL

asset so created or acquired through CSR spent in the financial year: (asset-wise
details).
Employment enhancing
Ensuring environment
preventive health care

preventive health care

preventive health care

Disaster management

Disaster management
Promoting Education

Promoting Education

Promoting Education

}
a) Date of Creation or acquisition of the capital asset (s):
vocational skills

b) Amount of CSR spent for creation or acquisition of capital assets:

sustainability
Item from the

c) Details of the entity or public authority or beneficiary under whose name such capital Not Applicable
to the Act.

asset is registered, their address etc.:

women

d) Provide details of the capital asset (s) created or acquired (including complete address
water

(ii) 

(ii) 

(xii)

(xii)
(iv)

and location of the capital asset):

(ii)

(ii)
(ii)
(i)

(i)

(i)

(i)

Leadership Adoption Program (LeAPS) designed for

11 Specify the reason(s), if the company has failed to spend two per cent of the average
people transformation and customised for young

Skill development programme for women - Self

1) COVID care centre - 30 bed in collaboration

net profit as per section 135(5):

collaboration with KSRTC), Laptop/ Desktop &
Employability development programme with

Oxygen on Wheels Bus to Haragadde PHC (in

printer to Taluk office for COVID related data

Infrastructural support to Government PHC

Awareness programme on usage of plastics

Education support - Tata Institute of Social

The Company had planned spend for the School Project during the financial year. However, due to
Infrastructural support to Dr. Ambedkar
(Food and Medicine to the intellectually

administrative reasons, the project could not be executed as planned.

2) Public audio system for Govt. PHC
with Puducherry Govt. and Solara
Covid Response / Pandemic Support

Covid Response / Pandemic Support

Sponsorship to Siva Sakthi Homes

Unspent amount of `32,54,785/- pertaining to this FY, is part of the Ongoing Project and has been transferred
students of government schools
Atmospheric Water Generator

to the ‘Unspend CSR Account’ of the Company in terms of Section 135 (6).
3) Packed food distribution
Government law college

For and on behalf of the Board of Directors

DISASTER MANAGEMENT
Name of the Project.

Dr. Kausalya Santhanam Arun Kumar

Sciences (TISS)
HEALTH & HYGIENE
Arogyadhama

management

Independent Director & Executive Chairperson & Managing Director

challenged)

EMPLOYABILITY

help group

Date: May 24, 2022 Chairperson of the CSR Committee DIN: 00084845
SVRCC
EDUCATION

Place: Bengaluru DIN: 06999168

|No
Sl.

10

11

12
1

9
3

8
5

64 | Annual Report 2021-22 | 65

 Strides Pharma Science Limited

Statutory Reports
Annexure 5 Annexure 6
Form AOC 2 Form No. MR-3
Secretarial Audit Report
(Particulars of Contracts/ Arrangements with Related Parties referred in Sec 188 (1) of
For the financial year ended 31st March 2022
the Companies Act, 2013 & SEBI Listing Regulations)
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
(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 To, 3) The Depositories Act, 1996 and the Regulations
contracts/ arrangements/ transactions entered into by the Company with related parties during FY22 were The Members, and Bye-laws framed thereunder;
at arms’ length. Strides Pharma Science Limited
CIN: L24230MH1990PLC057062 4) Foreign Exchange Management Act, 1999 (FEMA)
2) Details of material contracts or arrangements or transactions at arms’ length basis for and the rules and regulations made thereunder
the year ended March 31, 2022, are as under: Regd. Office: to the extent of Foreign Direct Investment and
201, ‘Devavrata’, Sector 17 Overseas Direct Investment; and
Nature of contracts/
Duration of Salient terms of
Monetary
Date of Amount Vashi, Navi Mumbai – 400 703
Name of the Nature of the contracts/ the contracts/ approval by the paid as
#
Related Party Relationship
arrangements/
arrangements/ arrangements/
Value
Board/ Audit advances, Maharashtra 5) 
The following Reg ulations and Guidelines
transactions (` in Million)
transactions transactions Committee if any prescribed under the Securities and Exchange
1 Strides Wholly owned Sale of materials/ Ongoing Based on Transfer 2,393.55 Nil Corporate Office: Board of India Act, 1992 (SEBI Act):
Pharma UK Subsidiary services and Pricing guidelines Strides House, Bilekahalli
Ltd., UK Guarantee Bannerghatta Road a) The Securities and Exchange Board of India
Commission Appropriate Bengaluru – 560 076 (Substantial Acquisition of Shares and
Income approvals
Karnataka Takeovers) Regulations, 2011;
2 Strides Wholly owned Sale of materials/ Ongoing Based on Transfer 11,822.35 have been Nil
Pharma Subsidiary services, Purchase Pricing guidelines taken for the
transactions We have conducted the secretarial audit of the b) The Securities and Exchange Board of India
Global Pte. of materials/
Limited, services,
compliance of applicable statutory provisions and (Prohibition of Insider Trading) Regulations,
Singapore Guarantee the adherence to good corporate practices by ‘Strides 2015;
Commission Pharma Science Limited’ (‘the Company’).
Income, Sale of IPs, c) The Securities and Exchange Board of India
Purchase of Assets, Secretarial Audit was conducted in a manner that (Share Based Employee Benefits and Sweat
Lease Rentals, provided us a reasonable basis for evaluating the Equity) Regulations, 2021;
Support Service
corporate conducts/ statutory compliances and
Income
expressing our opinion thereon. d) The Securities and Exchange Board of India
Note: Above data excludes reimbursement of expenses incurred by/ incurred on behalf of related party (Registrars to an Issue and Share Transfer
(Refer Note no. 44 of the Standalone Financial Statements). Based on our verification of the books, papers, minute Agents) Regulations, 1993 regarding the
books, forms and returns filed and other records Companies Act and dealing with client;
For and on behalf of the Board of Directors maintained by the Company and also the information
provided by the Company, its officers, agents and e) The Securities and Exchange Board of India
authorized representatives during the conduct of (Issue of Capital and Disclosure Requirements)
Arun Kumar Badree Komandur
secretarial audit, we hereby report that in our opinion, Regulations, 2018.
Executive Chairperson & Executive Director – Finance & Group CFO
the Company has, during the audit period covering
Date: May 24, 2022 Managing Director DIN: 07803242
Place: Bengaluru DIN: 00084845
the financial year ended on 31st March 2022 complied During the period under review, the Company has
with the statutory provisions listed hereunder and complied with the provisions of the Act, Rules,
also that the Company has proper Board processes and Regulations, Guidelines etc., mentioned above.
compliance mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter. We further report that, there were no events/ actions
in pursuance of the following requiring compliance
We have examined the books, papers, minute books, thereof by the Company during the Audit period.
forms and returns filed and other records maintained
by the Company for the financial year ended on 31st 1) The Securities and Exchange Board of India (Issue
March 2022 according to the provisions of: and Listing of Debt Securities) Regulations, 2008;

1) The Companies Act, 2013 (the Act) and the rules 2) 

The Securities and Exchange Board of India
made thereunder; (Delisting of Equity Shares) Regulations, 2021; and

2) The Securities Contracts (Regulation) Act, 1956 3) 

The Securities and Exchange Board of India
(SCRA) and the rules made thereunder; (Buyback of Securities) Regulations, 2018.

66 | Annual Report 2021-22 | 67

 Strides Pharma Science Limited

Statutory Reports
We have also examined compliance with the applicable 2) On June 11, 2021, the Company received Members
clauses of the following: approval through Postal Ballot for re-appointment
Annexure to Secretarial Audit
of Mr. Bharat Dhirajlal Shah (DIN: 00136969) as an
1) Secretarial Standards issued by the Institute of Independent Director of the Company for a second To, 3. 
We have not verified the correctness and
Company Secretaries of India; and term of three years commencing from June 15, The Members, appropriateness of financial records and Books of
2021 upto June 14, 2024. Strides Pharma Science Limited Accounts of the company.
2) 
The Securities and Exchange Board of India CIN: L24230MH1990PLC057062
(Listing Obligations and Disclosure Requirements) 3) At the Annual General Meeting held on September 4. 
Wherever required, we have obtained the
Regulations, 2015 (SEBI Listing Regulations) and the 3, 2021, the Company received Members approval Regd. Office: Management representation about the compliance
Listing Agreements entered into by the Company for: 201, ‘Devavrata’, Sector 17 of laws, rules and regulations and happening of
with the National Stock Exchange of India Limited Vashi, Navi Mumbai – 400 703 events etc.
and BSE Limited. a) Adoption of Audited Financial Statements for Maharashtra
the Financial Year ended March 31, 2021 5. The compliance of the provisions of Corporate
We further state that, during the period under Corporate Office: and other applicable laws, rules, regulations,
review and based on our verification of the records b) Declaration of Dividend for the Financial Year Strides House, Bilekahalli standards is the responsibility of management.
maintained by the Company and also on review of ended March 31, 2021 Bannerghatta Road Our examination was limited to the verification
compliance reports/ statements by the respective Bangalore – 560 076 of procedures on test basis.
department heads/ Chief Financial Officer/ Company c) Re-appointment of Mr. Deepak Vaidya, retiring Karnataka
Secretary taken on record by the Board of Directors of director, as a Non-Executive Director 6. 
The Secretarial Audit report is neither an
the Company, in our opinion, adequate systems and Our report of even date is to be read along with this assurance as to the future viability of the company
processes and control mechanism commensurate to d) Remuneration payable to M/s. Rao, Murthy & letter. nor of the efficacy or effectiveness with which the
the size and nature of the Company’s business exist in Associates, Cost Auditors of the Company for management has conducted the affairs of the
the Company to monitor and ensure compliances with FY 2020-21 1. 
Maintenance of secretar ial record is the company.
applicable laws, industry specific laws, labour laws, responsibility of the management of the company.
intellectual property laws and environmental laws. 4) 
On January 14, 2022, the Company received Our responsibility is to express an opinion on For Gopalakrishnaraj H H & Associates
We have not reviewed the applicable financial laws, Members approval through Postal Ballot for: these secretarial records based on our audit.
Company Secretaries
direct and indirect tax laws since the same have been
subject to review and audit by the Statutory Auditors a) Continuation of Mr. Bharat Dhirajlal Shah 2. 
We have followed the audit practices and
of the Company. (DIN: 00136969) as an Independent Director processes as were appropriate to obtain reasonable Gopalakrishnaraj H H
of the Company in terms of Regulation 17(1A) assurance about the correctness of the contents Proprietor
We, further report that: of the SEBI (Listing Obligations and Disclosure of the Secretarial records. The verification was FCS: 5654; CP: 4152
Requirements) Regulations, 2015; done on test basis to ensure that correct facts are
1) As at 31st March 2022, the Board of Directors of the reflected in secretarial records. We believe that Place: Bengaluru PR: 945/2020
Company is duly constituted with proper balance b) Alteration of Articles of Association of the the processes and practices, we followed provide Date: 24/05/2022
of Executive Directors, Non-Executive Directors Company; and a reasonable basis for our opinion. UDIN: F005654D000371998
and Independent Directors. The changes in the
composition of the Board of Directors that took c) Re-classification of few Promoters/ Promoter
place during the period under review were carried Group of the Company from ‘Promoters/
out in compliance with the provisions of the Act. Promoter Group’ category to ‘Public’ category
in terms of Regulation 31A of the SEBI (Listing
2) Adequate notice is given to all directors to schedule Obligations and Disclosure Requirements)
the Board Meetings, agenda and detailed notes on Regulations, 2015.
agenda were sent at least seven days in advance
and in few meetings with shorter notice as per 5) the Company has not undertaken any foreign
the Secretarial Standard-1, and a system exists technical collaborations.
for seeking and obtaining further information
and clarifications on the agenda items before the For Gopalakrishnaraj H H & Associates
meeting and for meaningful participation at the
Company Secretaries
meeting.

3) Decisions of the Board were unanimous and there Gopalakrishnaraj H H

were no dissenting views by any Members of the Proprietor
Board during the period under review. FCS: 5654; CP: 4152
Place: Bengaluru PR: 945/2020
We further report that during the audit period:
Date: 24/05/2022
1) 
the Company has not issued any equity or UDIN: F005654D000371998
preference shares/ debentures/ sweat equity
except those equity shares issued to employees of
the Company under applicable ESOP Plan;

68 | Annual Report 2021-22 | 69

 Strides Pharma Science Limited

Statutory Reports
Annexure 7

• Oral Dosage facility – Alathur
a) 4 KL RO water system installed and
Expenditure on R&D
(` in Million)
qualified to meet additional process
Particulars on Energy Conservation and Technology Absorption for FY22 water and purified water requirements. Particulars March 31, 2022 March 31, 2021
Capital 168.36 84.23
c) 
GCV 700kg shell preparation vessel (ii) In case of import technology (imported Revenue 799.12 990.23
A. Conservation of Energy installed to meet additional soft gel during the last year), the year of Import Total 967.48 1,074.46
i) Steps taken and impact on conservation of capsules business volumes; whether the technology has been fully
energy absorbed:
Total Foreign Exchange Earned and Used
d) Auto duct cleaning system from Glatt-
a) 1,00,903 KL of wastewater treated by Waste • Fette – 3200i Tablet compression machine from
Germany installed in Glatt FBP to have (` in Million)
Water Treatment Plant and reused for garden/ Germany installed to meet increased demand of
recipe driven auto duct washing system
lawn inside the plant premises across all sites Bi-layer tablets of TLD & EET volumes in KRSG; Year ended
for the improved compliance Particulars
in India; March 31, 2022
• Sejong vantix P-580D Model Tablet compression
Foreign exchange earned in terms of 13,995.70
• Oral Dosage Facility – Puducherry machine from Korea installed to meet increased actual inflows
b) 
21,060 KL of water recycled from steam
a) Sejong vantix P-580D Model Tablet demand of tablet volume in Puducherry
condensate and reused for steam generation; Foreign exchange outgo in terms of 2,870.87
compression machine from Korea
actual outflows
installed to meet increased demand of
c) 16,138 KL rainwater collected and recharged to
tablet volume;
improve the ground water table in and around
the plant; For and on behalf of the Board of Directors
b) Integrated Blister Packing line from ACG -
BQS Model installed and qualified to meet
d) Energy efficient LED lamps are used to replace Arun Kumar Badree Komandur
additional Blister packing volume;
existing TFL/CFL/SVL to conserve energy,
Date: May 24, 2022 Executive Chairperson & Managing Director Executive Director – Finance & Group CFO
almost all lighting fixtures in all Strides
c) Wurster coater from ACG Pam – 800ltrs Place: Bengaluru DIN: 00084845 DIN: 07803242
locations were already replaced with LED
capacity commissioned to meet new
lamps and energy saving projected in previous
business volume
years is being sustained.
• Oral Dosage facility – Chandapura
ii) Steps taken by the Company for utilising
a) C adpr e s s -I V – C ad m ac h Tablet
alternative sources of energy
compression machine commissioned
a) 12,000 Tonne of CO2 emissions reduction to meet increased business demand for
achieved by utilisation of 17 Mio units Australia market with improved process
imported energy from solar power generators; controls;

b) 3,01,654 kWh renewable energy generated b) 100% Online Checkweigher from ACG-
inhouse PAM integrated with A120 automatic
capsule filling machine to meet increased
B) Technology absorption HGC filling volume with improved
compliance;
i) Efforts made towards technology absorption
are:
c) New 160 KVA UPS with inbuilt redundancy
• Oral Dosage Facility – Bengaluru from Schneider Electric installed to
a) Fette – 3200i Tablet compression machine cater uninterrupted power supply to
from Germany installed to meet increased critical loads of QC and manufacturing
demand of Bi-layer tablets of TLD & EET equipment;
volumes;
d) Serialization and aggregation equipment
b) 
IM A PG Car tonator commissioned installed and qualified complying to
for Ointment tubes/jars installed to DGFT guidelines in all 6 Pkg. lines.
automate secondary packaging activity
of Ointment filling;

70 | Annual Report 2021-22 | 71

 Strides Pharma Science Limited

Statutory Reports
Corporate Governance Report
Non-Executive Directors, of which Four are Independent
2. Board of Directors Directors (including one Woman Independent Director).
 he Company is headed by an effective Board of
T
Directors (‘the Board’), which is entrusted to guide Changes in Board Composition during the period April
and oversee the management and performance of the 1, 2021 to the date of this report is as under:
In compliance with provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Company with the ultimate responsibility to protect
Requirements) Regulations, 2015 (‘Listing Regulations’), the Company submits the Corporate Governance Report the interests of shareholders, employees and the other 1. Mr. Bharat Shah (DIN: 00136969) was re-appointed
for FY22. stakeholders. as an Independent Director of the Company
effective June 15, 2021 for a second term of three
1. Corporate Governance at Strides  e believe that our Board is well diversified and has
W years;
an appropriate mix of Executive and Non-Executive
At Strides, we are guided by our values Integrity, Collaboration and Efficiency (“ICE”) in everything we do.
Directors. The Board possesses an optimal mix of 2. Dr. R Ananthanarayanan (DIN: 02231540), who was
professionalism, knowledge and experience. Key Board the Managing Director & Chief Executive Officer of
skills/ expertise/ competence of the Board of Directors the Company, resigned effective March 31, 2022;
is provided in section 2.4 below.
3. Mr. Arun Kumar (DIN: 00084845), Founder and Non-
 rofile of Strides’ Directors is available on Company’s
P Executive Chairperson of the Board was appointed
website at https://www.strides.com/corporate-board. as the Executive Chairperson & Managing Director
html effective April 7, 2022 for a period of three years;
and;
2.1. Board Composition
4. Mr. Homi Rustam Khusrokhan (DIN: 00005085)
 s at the date of this Report, Strides’ Board comprises
A
was re-appointed as an Independent Director of
of Seven Directors – Two Executive Directors and Five
the Company effective May 18, 2022 for a second
term of five years

Board and Committee Composition as at March 31, 2022 is as under:

Nomination and Stakeholder Risk

Audit CSR
Name of the Director Category Board Remuneration Relationship Management
Committee Committee
Committee Committee Committee
Arun Kumar* Non-Executive Director - -   -
Deepak Vaidya Non-Executive Director     
S Sridhar Independent Director    - 
Bharat Shah Independent Director    - 
Homi Rustam Khusrokhan Independent Director    - 
Dr. Kausalya Santhanam Independent Director    - -
Dr. R Ananthanarayanan* Managing Director and  - -  - 
CEO
Badree Komandur Executive Director –  - - - - 
We will follow the right We will work We will do everything Finance and Group CFO
practices and do the together, to deliver quicker, Other Members of RMC
right thing understanding and better results Sormistha Ghosh Group General Counsel - - - - - 
supporting each and Chief Risk Officer
other (GGC & CRO)
Christoph Funke Chief Operations Officer - - - - - 
(COO)

 ur values are the foundation on which we build our

O Umesh Kale Chief Quality Officer - - - - - 
We want to continue to be a leading Indian
(CQO)
pharmaceutical company with a reputation for the business and culture. They inculcate trust and a strong
highest quality and integrity. Integrity continues to relationship with all our stakeholders and help us Anjani Kumar Chief Information - - - - - 
Officer (CIO)
be our guiding principle in everyday conduct across execute our commitment to the 3 Ps – our Patients who
the facets. Being a global and multidisciplinary depend on us; our People who are our biggest assets;
- Chairperson of the Board/ Committee | - Member
organisation, we want to harness the power of great and our Purpose of making a difference in health care
teamwork. This cross-functional collaboration is what and society. *Dr. Ananth resigned from the Board and its committees effective March 31, 2022. Effective April 7, 2022, Mr. Arun
we call the power of ‘One Strides.’ It binds us together. Kumar assumed the role of Executive Chairperson & Managing Director of the Company.
We will remain a globally competitive company by  t Strides, we are committed to compliance with the
A
optimising our capacity and being the best in what best standards of Corporate Governance. Details of each member of the Board as at the date of this Report is attached as Annexure CG 1.
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.

72 | Annual Report 2021-22 | 73

 Strides Pharma Science Limited

Statutory Reports
2.2. Appointment, Re-appointment & Retirement and recommending candidates for election as a Director and in accordance with the Guidance Note on Board the remuneration approved by shareholders of the
by Rotation of Directors on the Board. Evaluation issued by SEBI in January 2017. Company.
Board has adopted provisions with respect to
These skills/ competencies are broad-based, In line with the Board Evaluation policy of the Details of remuneration paid/ payable to Executive
appointment and tenure of Directors consistent with
encompassing several areas of expertise/experience Company, annual performance evaluation for FY22 was Directors during FY22 is as under:
the Companies Act, 2013 and the Listing Regulations.
and each Director may possess varied combinations conducted for all Board Members as well as for working
of skills/ experience within the described set of of the Board and its Committees. Amount in `
a) Appointment of Mr. Arun Kumar as Executive
parameters as listed herein. Dr. R Badree
Chairperson & Managing Director Particulars
Evaluation was led by the Chairperson of the Ananthanarayanan Komandur
The Company has sought Shareholders’ approval Area of Expertise Remarks Nomination and Remuneration Committee and was Gross Salary
for appointment of Mr. Arun Kumar (DIN:
Management and Strong management and conducted through questionnaire designed with Salary 60,000,000 38,254,799
00084845) as Executive Chairperson & Managing
Leadership Experience leadership experience including qualitative parameters and feedback, based on ratings. (including Company’s
Director of the Company for a term of three years
in areas of business development, contribution towards PF)
commencing from April 7, 2022, through Postal strategic planning and mergers 2.7. Details of Remuneration paid to Directors Value of perquisites u/s 17(2) 45,500 292,500
Ballot dated May 24, 2022. Results of Postal Ballot and acquisitions, ideally with Income-tax Act, 1961
is expected to be available by July 8, 2022. major corporates with successful 2.7.1. Remuneration to Non-Executive Directors
Others
multinational operations in The Non-Executive Directors (NEDs) are entitled
b) Retirement by Rotation and Reappointment of manufacturing, international to receive remuneration by way of sitting fees, Annual Bonus/ performance 28,800,000 7,500,000
business, scientific research linked payouts (relates to
Mr. Badree Komandur reimbursement of expenses for participation in the
and development, senior level FY21 paid in FY22)
 Proposal for re-appointment of Mr. Badree Board/Committee meetings and commission, payout
government experience and Payout linked to Phantom 30,000,000 -
Komandur (DIN: 07803242), retiring director, who academic background. details of which are mentioned hereunder:
Units granted for FY 20-21
has offered himself for re-appointment, shall be
placed before Shareholders of the Company at Functional and Knowledge and skills in accounting Sitting fee Total TOTAL 118,845,500 46,047,299
Managerial Experience and finance, business judgment, # Name of the Directors
(`) (`)
the ensuing Annual General Meeting (AGM). Your
general management practices
1 Arun Kumar 8,00,000/- 8,00,000/- Note:
Directors recommend his re-appointment to the and processes, crisis response and
Board. management, industry knowledge, 2 Deepak Vaidya 13,00,000/- 13,00,000/- 1) The above payments does not include accruals
macro-economic perspectives, 3 S Sridhar 13,00,000/- 13,00,000/- related to variable pay and other performance
2.3. Induction & Familiarisation programmes for human resources, labour laws, 4 Bharat Shah 12,00,000/- 12,00,000/- linked payouts for FY 2021-22 considered in the
Board Members international markets, sales and accounts of the Company for FY 2021-22
marketing, and risk management. 5 Homi Rustam 13,00,000/- 13,00,000/-
Your Company has an orientation/ familiarisation Khusrokhan
Pharma Business Understanding of global business 2) 
Perquisite tax paid by Badree towards stock
programme for induction of its Directors, which aims 6 Dr. Kausalya Santhanam 13,00,000/- 13,00,000/-
dynamics, across various options acquired during the year is ` 1,14,075/-
to provide insights about the Company and its business geographical markets, industry Total 72,00,000/- 72,00,000/-
operations. verticals and regulatory jurisdictions. 3) Dr. Ananth resigned from the Board effective
Corporate Governance Developing governance practices, Further, considering Company’s performance in FY22, March 31, 2022
Immediately on appointment, each Director undergoes
serving the best interest of all Board of Directors did not recommend payment of
a comprehensive orientation process and are provided stakeholders, maintaining board and Commission to the Non-Executive Directors of the 2.7.4. Service Contracts, Notice Period and Severance
with an induction kit which interalia includes business management accountability, building Company. Fees relating to Executive Directors
profile & group structure of the Company, Board and long term effective stakeholder
During FY22, the Company had two Executive Directors,
Audit Governance process and Corporate policies of engagements and driving corporate
ethics and values.
2.7.2. Details of remuneration paid to the viz., Dr. R Ananthanarayanan - Managing Director &
the Company amongst others.
Independent Directors on the Board of Material Chief Executive Officer and Mr. Badree Komandur -
Personal Values Personal characteristics matching Subsidiaries during FY22 Executive Director – Finance & Group CFO
Further, during quarterly meetings, Board Members also the company’s values. Vis., Integrity,
Collaboration and Efficiency.
In line with Regulation 24 of the Listing Regulations,
meet with business heads and functional heads of the
the company has nominated Dr. Kausalya Santhanam, a) Service Contract, Notice Period and Severance
Company, during which comprehensive presentations
one of its Independent Directors on the Board of its fees relating to Dr. R Ananth
are made on various aspects such as business models/ Mapping of Directors’ skills/ expertise/ competence
material subsidiaries. Dr. Ananth tendered his resignation on March 29,
strategies, risk mitigation/ minimisation procedures, in line with the above criteria has been provided
2022, which was effective March 31, 2022 and was
recent trends in pharma industry, and regulatory as part of Directors’ profile, which is enclosed as
Sitting fees paid by each of the entities to Dr. Kausalya accepted by the Board of Directors of the Company.
regime impacting the Company. These meetings Annexure CG 1.
Santhanam is US$1,500 per quarter as under:
also facilitate Board Members to provide their inputs
The Company has not paid any severance fees/
and suggestions on the above matters directly to the 2.5. Nomination and Remuneration Policy for Total Amount notice pay to Dr. Ananth owing to his resignation
business and functional heads. the Board of Directors, KMP and SMP # Name of the entity
paid for FY22
other than leave encashment as per Company
The Company has formulated a Nomination and 1. Strides Pharma Asia Pte. Ltd, US$6,000/- policy and continuation of Insurance for Dr. Ananth
Policy on familiarisation programme for non-executive Singapore
Remuneration Policy for the Board of Directors, Key and his family for a period of six months from
directors is uploaded on the website of the Company at 2. Strides Pharma Global Pte. Limited, US$6,000/-
Managerial Personnel (KMP) and Senior Management April 1, 2022.
https://strides.com/pdf/Committees%20of%20the%20 Singapore
Personnel (SMP) of the Company which is uploaded on
Board/2022/strides_familiarisation_programme_for_ 3. Strides Pharma Inc, USA US$6,000/-
the website of the Company at https://strides.com/pdf/ Further, as per the terms of his appointment,
non-executive_directors.pdf.
Committees%20of%20the%20Board/2022/strides’nrc_ 4. Strides Arcolab International US$6,000/- joining bonus of ` 14.19 crores paid to Dr. Ananth
policy_July_2022.pdf. Limited, UK shall be recovered by the Company.
2.4. Key Board skills/ expertise/ competence of
the Board of Directors
2.6. Board Evaluation 2.7.3. Remuneration to Executive Directors b) Service Contract, Notice Period and Severance
Board of Directors are collectively responsible for Remuneration to Executive Directors is a combination fees relating to Badree
Board evaluation framework at Strides has been
selection of a Member on the Board. The Nomination of fixed and variable components, as recommended As per the terms of Badree’s appointment, notice
designed in compliance with the requirements under
and Remuneration Committee of the Company follows by the Nomination and Remuneration Committee period is three months with NIL severance fee.
the Companies Act, 2013 and the Listing Regulations,
a defined criterion for identifying, screening, recruiting and approved by the Board Members, in line with

74 | Annual Report 2021-22 | 75

 Strides Pharma Science Limited

Statutory Reports
2.7.5. Details of Stock Options held by Directors e) 
Recommend to the Board appointment, re- Terms of reference of the NRC, inter alia, includes the the interpretation and adoption of rules for the
As at the date of this report, none of the Directors of appointment, removal of the Statutory Auditors, following: operation thereof.
the Company holds any stock options of the Company. fixation of audit fee and approval for payment for
any non-audit services rendered by the Statutory a) To periodically review the size and composition n) 
To carry out any other function as may be
3. Committees of the Board Auditors. of the Board to ensure that it is structured to mandated by the Board from time to time and/ or
make appropriate decisions, with a variety of enforced by any statutory notification, amendment
Board has constituted sub-committees to focus on
f) 
Rev iew ing and monitor ing t he auditor’s perspectives and skills, in the best interests of the or modification, as may be applicable.
specific areas and make informed decisions within
independence & performance and effectiveness Company as a whole.
the authority delegated to each of the Committees.
of audit process. In addition, the Committee is also required to
Each Committee of the Board is guided by its Charter,
b) 
To for mulate a cr iter ia for deter mining discharge such other roles/ functions as envisaged
which defines the scope, powers and composition of
g) Review the appointment, removal and terms of qu a l i f icat ion s, p o s it ive at t r i but e s a nd under the Companies Act, 2013 and Listing
the Committee.
remuneration of the Internal Auditor. independence of a Director. Regulations.
All decisions and recommendations of the Committees
h) Review on a regular basis the adequacy of internal c) 
To formulate a criteria for evaluation of 3.3. Stakeholders’ Relationship Committee
are placed before the Board for information or approval.
audit function, the structure of the internal audit performance of all Independent Directors and the
During the financial year, the Board has accepted the Terms of reference of the Committee
department, approval of the internal audit plan and Board.
recommendations of Committees on matters where Terms of reference of the Stakeholders’ Relationship
its execution, staffing and seniority of the official
such a recommendation is mandatorily required. There Committee covers the areas mentioned in Section 178
heading the department, reporting structure, d) 
Committee to carry out evaluation of every
have been no instances where such recommendations (5) of the Act and Regulation 20 read with Part D (B) of
coverage and frequency of internal audit. Director’s performance.
have not been considered. Schedule II of Listing Regulations.
i) Review the findings of any internal investigations e) 
Committee to determine whether to extend
Board has constituted the following Statutor y Terms of reference of the SHR Committee, inter alia,
by the internal auditors into matters where there or continue the term of appointment of the
Committees: are as follows:
is suspected fraud or irregularity or a failure of Independent Director, on the basis of the report of
internal control systems of a material nature and performance evaluation of Independent Directors.
1) Audit Committee; a) To consider and ensure resolution of the grievances
reporting the matter to the Board.
of the security holders of the Company including
f) To formulate criteria and evaluate the performance
2) Nomination and Remuneration Committee (NRC complaints relating to transfer/ transmission of
j) Discuss with internal auditors any significant of the statutory committees of the Board vis., Audit
Committee); shares, issue of new/ duplicate share certificates,
findings and follow up thereon. Committee, Stakeholders Relationship Committee,
non-receipt of annual reports, non-receipt of
Nomination & Remuneration Committee and
3) 
Stakeholders’ Relationship Committee (SHR declared dividends, etc;
k) Review with Management, Statutory Auditors and Corporate Social Responsibility Committee and
Committee);
Internal Auditors about the adequacy of internal any other Committee as duly constituted by the
b) To monitor investor grievances received by the
control systems and related matters. Board of Directors.
4) Corporate Social Responsibility Committee (CSR Company from SEBI, BSE, NSE or through Scores
Committee); and to ensure its timely and speedy resolution in
l) Review of Management letters/ letters of internal g) To devise a policy on Board diversity and assist
consultation with the RTA/ Company Secretary;
control weakness issued by Statutory Auditors/ the Board in ensuring Board nomination process
5) Risk Management Committee (RMC)
Internal Auditors. addresses diversity of gender, knowledge,
c) Review of measures taken for effective exercise of
experience, and perspective.
3.1. Audit Committee voting rights by security holders;
m) Review the appointment, removal and terms of
Terms of reference of the Audit Committee remuneration payable to the Cost Auditor. h) Identify persons who are qualified to become
d) 
To oversee and review the performance of
Terms of reference of the Audit Committee covers the Directors and who may be appointed as Senior
Registrar & Share Transfer Agent and recommend
areas mentioned in Section 177 of the Companies Act, n) Evaluation of internal financial controls and risk Management Personnel (SMP), in accordance with
measures for improvements in the quality of
2013 and Regulation 18 read with Part C of Schedule II management systems. the criteria laid down in the policy.
investors services;
of Listing Regulations.
o) Review and approval of Related Party Transactions. i) To recommend to the Board the appointment and
e) 
Review of various measures and initiatives
Terms of reference of the Audit Committee, inter alia, removal of Directors and SMP, in accordance with
taken by the Company relating to unclaimed
includes the following: p) Reviewing the functioning of the Whistle Blower the criteria laid down in the policy.
dividends for reducing the quantum of unclaimed
mechanism.
dividend and ensuring timely receipt of dividend
a) Oversight of the Company’s financial reporting j) To recommend to the Board, a policy relating
warrants/ annual reports/ statutory notices by the
process and disclosure of its financial information q) Review compliance of provisions of Insider Trading to remuneration of Directors, Key Managerial
shareholders of the Company;
to ensure that the financial statements are correct, Regulations and verify that systems for internal Personnel (KMP) and SMP.
sufficient and credible. control are adequate and operating effectively, at-
f) To review compliance relating to all Securities
least once in a financial year. k) To recommend to the Board, all remuneration, in
including Dividend payments, transfer of
b) Examination of the Company’s financial statements whatever form, payable to Senior Management
unclaimed amounts or shares to Investor Education
and Auditor’s Report on the same. In addition, the Committee is also required to discharge Personnel.
and Protection Fund;
such other roles/ functions as envisaged under the
c) 
Discuss and review with the Management Companies Act, 2013 and Listing Regulations. l) To establish and review plans relating to orderly
g) 
Formulation of Policies and Procedures as
and Auditors, the annual/ quarterly financial succession for appointment of the Board, KMP and
mandated by SEBI relating to stakeholder services
statements before submission to the Board for 3.2. Nomination and Remuneration Committee SMP.
from time to time for matters relating to security
approval.
Terms of reference of the Committee holders and related governance;
m) To assist the Board of Directors in the Board’s
Terms of reference of the NRC Committee covers
d) Review of Management Discussion and Analysis overall responsibilities relating to Employee Stock
the areas mentioned in Section 178 of the Act and In addition, the Committee is also required to discharge
of financial condition and results of operations. Options Plans, including the administration of the
Regulation 19 read with Part D (A) of Schedule II of such other roles/ functions as envisaged under the
Company’s ESOP and other incentive plans and
Listing Regulations. Companies Act, 2013 and Listing Regulations.

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 Strides Pharma Science Limited

Statutory Reports
Company Secretary of the Company is the designated b) 
Provide oversight dur ing the desig n and Management and Business Continuity procedures of the Non-Independent Directors, the Board as a whole
Compliance Officer for the purpose of compliance in implementation of a comprehensive r isk and guidelines. & its various Committees and performance of the
relation to the Listing Regulations. management framework and common-sense Chairperson of the Board.
approach to manage risks across the entire p) Disseminate to the enterprise the upside of risk
3.4. Corporate Social Responsibility (CSR) organisation. and the opportunities it can present, rather than 4.3. Committee meetings held during the year
Committee the traditional perspective of “risk as hazard”.
4.3.1. Audit Committee
c) 
Establish and communicate risk vision and
Terms of reference of the Committee Audit Committee met 4 times during FY22 on the
philosophy, approve risk strategy and establish q) 
Risk Management Committee may form and
Terms of reference of the CSR Committee covers the following dates:
risk appetite. delegate authority to a sub-committee, which
areas as mentioned in the Companies Act, 2013.
shall assist the Committee to project manage the 1. May 27, 2021
d) 
Rev iew and approve the Enter pr ise R isk ERM.
Terms of Reference of the CSR Committee, inter alia, 2. August 6, 2021
Management framework of company on a periodic
includes the following:
basis. The Committee shall review and approve the In addition, the Committee is also required to 3. November 10, 2021 &
risk management culture, processes and practices discharge such other roles/ functions as envisaged
a) 
Formulate and recommend to the Board, a 4. February 10, 2022.
of the company. under the Companies Act, 2013 and Listing
Corporate Social Responsibility Policy (“CSR
Regulations.
Policy”) which shall indicate the activities to be Attendance of members at the Committee Meeting is
e) Monitor and review the exposures of the material
undertaken by the Company in areas/ subject provided in Item No. 4.3.6 below.
as specified in Schedule VII of the Act and shall
risks and assess management preparedness to 4. Meetings of the Board and Committees
deal with the risk and associated events.
monitor the CSR Policy from time to time; The Company has adopted digital meetings platform 4.3.2. Nomination and Remuneration Committee (NRC)
for its Board and Committee meetings, which can be NRC met 6 times during FY22 on the following dates:
f) 
Rev iew and approve the enter pr ise r isk
b) Formulate and recommend to the Board an Annual accessed through web version, iOS and Android based
management (ERM) working plan and utilise risk 1. May 10, 2021
Action Plan for the identified CSR Projects and application.
for the enterprise’s competitive advantage.
recommend the amount of expenditure to be 2. May 26, 2021
incurred on such activities; Board/ Committee Agenda and related notes are made
g) Overseeing internal and external risks faced by 3. August 31, 2021
available to the Directors through this application,
the Company including financial, operational,
c) To ensure the disbursed funds are utilised for the which meets the standards of security and integrity 4. November 10, 2021
sectoral, sustainability (ESG), information, cyber
purposes and in the manner approved. In this that is required for storage and transmission of Board/
security risks or any other risks determined by the 5. February 10, 2022 &
regard, Chief Financial Officer of the Company to Committee related documents in electronic form.
Committee
provide confirmation to the Committee. 6. March 29, 2022.
Quarterly Board meetings are pre-scheduled, and a
h) Ensure that appropriate methodology, processes,
d) Ensure that the Company is taking appropriate tentative annual calendar of such Board meetings is Attendance of members at the Committee Meetings is
and systems are in place to monitor and evaluate
measures to undertake and implement CSR agreed, to facilitate Directors to plan their schedules provided in Item No. 4.3.6 below.
risks associated with business of the Company.
projects successfully; and ensure meaningful participation.
4.3.3. Stakeholders Relationship Committee (SRC)
i) Overseeing the cyber security measures of the
e) The Committee, at its sole authority, may seek However, in case of a special and urgent business need, SRC met 4 times during FY22 on the following dates:
organisation with focus on the cyber and digital
the advice of outside experts or consultants at the either a Board Meeting is convened at shorter notice
risks. 1. May 26, 2021
Company’s expense where judged necessary, to or Board’s approval is obtained by circular resolution,
discharge its duties and responsibilities. depending on the matter to be transacted. 2. August 6, 2021
j) Review effectiveness of the risk mitigation plans
including adequacy of the system/processes for 3. November 10, 2021 &
f) The Committee to seek services of Independent 4.1. Board Meetings held during the year
the internal controls of the identified risks.
Agency to carry out Impact Assessment of CSR 4. February 10, 2022.
During FY22, Board met 9 times on the following dates:
Projects as may be required.
k) Monitor and oversee implementation of the risk
1. May 10, 2021 Attendance of members at the Committee Meeting is
management policy, including evaluation of the
At Strides, CSR initiatives help address socio-economic provided in Item No. 4.3.6 below.
adequacy of risk management systems. 2. May 27, 2021
challenges in the realms of Health and Hygiene,
Education, Employability and Disaster Management. 3. August 6, 2021 4.3.4. CSR Committee
l) 
Oversee and g uide the development and
The CSR Committee met 2 times during FY22 on the
implementation of ERM policies, procedures, 4. August 31, 2021
A detailed report on the CSR activities undertaken following dates:
guidelines.
during the year, together with its monitoring 5. November 10, 2021
1. May 26, 2021
and spending is annexed to the Board’s Report as
m) Advice the Board on all matters related to ERM. 6. December 3, 2021
Annexure 4. 2. February 10, 2022
Engage other stakeholders in the risk management
7. February 10, 2022
process when the need is identified. Facilitate
3.5. Risk Management Committee Attendance of members at the Committee Meeting is
communication of ERM information. 8. March 4, 2022, &
provided in Item No. 4.3.6 below.
Terms of reference of the Committee
9. March 29, 2022.
Terms of reference of the RMC covers the areas as n) Keep the Board of Directors informed about the
4.3.5. Risk Management Committee (RMC)
mentioned in the Listing Regulations. nature and content of the Committee discussions
Attendance of members at the Board Meeting is RMC met 2 times during FY22 on the following dates:
and recommendations, as well as the actions to be
provided in Item No. 4.3.6 below.
Terms of Reference of the Risk Management Committee, taken. 1. April 20, 2021
inter alia, includes the following:
4.2. Meeting of Independent Directors 2. October 13, 2021.
o) 
Oversee and g uide the development and
a) To advise the Board in identification and managing implementation of Business Continuity and Crisis Independent Directors of the Company met on May 26,
Attendance of members at the Committee Meetings is
the full range of risks the enterprise faces. 2021 to inter-alia discuss and evaluate the performance
provided in Item No. 4.3.6 below.

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 Strides Pharma Science Limited

Statutory Reports
4.3.6. Attendance of members of Board and Committees at the meetings held during FY22* The Company’s designated email id for investor Processing System (NeAPS)/ Digital Exchange
complaints is investors@strides.com portal and BSE Corporate Compliance & Listing
Board & Committees
Board Audit NRC SHR CSR
RMC Centre.
Meeting Committee Committee Committee Committee
5.2. Means of Communication
Number of Meetings held 9 4 6 4 2 2 e) SEBI Complaints Redress System (SCORES)
a) Quarterly, Half yearly and Annual financial
Members’ attendance Investors’ complaints are also being processed
results
Deepak Vaidya 9 4 6 4 2 2 through the centralised web base complaint
The quarterly, half yearly and annual results of the
S Sridhar 9 4 6 4 NA 2 redressal system of SEBI (SCORES). SCORES enables
Company as approved by the Board of Directors
Bharat Shah 8 4 6 4 NA 2
speedy and effective resolution of complaints filed
are submitted to the Stock Exchanges where the
therein.
Dr. Kausalya Santhanam 9 4 6 NA 2 NA Company’s shares are listed.
Homi Rustam Khusrokhan 9 4 6 NA 2 2 f) Website
Arun Kumar 8 NA NA 4 2 NA Further, the quarterly, half yearly and annual
The primary source of information regarding
results of the Company are also published in
Dr. R Ananthanarayanan 7 NA NA 4 NA 2 the operations of the Company is the corporate
Financial Express and Lokmat, local vernacular
Badree Komandur 9 NA NA NA NA 2 website www.strides.com
daily.
Other Members of RMC
It contains a separate dedicated section for
Sormistha Ghosh NA NA NA NA NA 2 These are also disseminated through our PR
‘Shareholders’, ‘Investors’ and ‘Media’ where the
Christoph Funke NA NA NA NA NA 2 Agency and made available on the Company’s
latest and updated information about financials/
Umesh Kale NA NA NA NA NA 1 website at https://strides.com/investor-financial.
activities of the Company are available.
Anjani Kumar NA NA NA NA NA 2 html.
The website of the Company also displays official
*Considering the COVID-19 pandemic, and as permitted by the Ministry of Corporate Affairs, majority of the meetings during the The Company also conducts earnings calls with
financial year has been conducted through Video Conference
news releases and presentations made to the
analysts and investors and their transcripts are
institutional investors and analysts from time to
published on the website thereafter.
time.
5. Shareholders’ Governance and Company’s performance during the quarter. Earnings
Communication call transcript is also hosted on the Company’s website. b) Notice to shareholders relating to transfer of shares
g) Annual report
in respect of the dividends which has remained
The Company reg ularly communicates to its  The Company’s annual report containing the
5.1. Investors Correspondence unpaid or unclaimed for seven consecutive years
stakeholder s t hroug h mult iple channels of Board’s Report, Corporate Governance Report,
to the Investors Education and Protection Fund
communications such as results announcements, Shareholders may reach out to the Company or KFin Management Discussion and Analysis (MD&A),
was published in Business Standard and in the
annual report, media releases and hosting information Technologies Limited (formerly, KFin Technologies Business Responsibility Report, Audited Annual
local vernacular daily, Navshakti.
on Company’s website. Private Limited), Company’s Registrars and Transfer Accounts, Consolidated Financial Statements,
Agents, for any queries that they may have. Coordinates Auditors’ Report and other important information
c) News releases, presentations, etc.:
Post quarterly Board Meetings, the Company also of the Company and RTA is provided herein below. is circulated to shareholders and other
 The Company has established systems and
conducts earnings call for Investors to discuss stakeholders. Annual Reports are also emailed to
procedures to disseminate relevant information to
the shareholders who have registered their email
its stakeholders including shareholders, analysts,
IDs with the Company/ depositories.
Registered Office Corporate Office Registrars & Share Transfer Agents suppliers, customers, employees and the society
No. 201, ‘Devavrata’ Strides Pharma Science Limited KFin Technologies Limited, at large.
Strides’ annual report is also available at https://
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 strides.com/investor-financial.html.
Regular updates about the Company in the form
Bangalore – 560 076 District, Nanakramguda, Serilingampally of news releases, stock exchange intimations,
Tel. No. +91-22-2789 2924 Mandal, 5.3. General Meetings and Postal Ballot
investor presentations etc., are displayed on the
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 Company’s website. 5.3.1. Annual General Meeting
E-Mail: einward.ris@kfintech.com The Thirtieth Annual General Meeting (AGM) of the
Website: https://www.kfintech.com/ d) Compliance Filings with Stock Exchanges Company was held on Friday, September 03, 2021 at
https://ris.kfintech.com/  All periodical compliance filings including 12:30 hours IST.
shareholding pattern, corporate governance
Contact Persons: report, media releases, among others are filed The Meeting was attended by the all the Directors of
S.V. Raju, Deputy Vice President
Vijayananda Banerjee
electronically on NSE Electronic Application the Company.
Mohan Kumar A, Manager

Investor Relations Team Compliance Officer Corporate Communications Team

Badree Komandur Manjula Ramamurthy Pallavi Panchmatia : +91 80 6784 0193
+91 80 6784 0747 Company Secretary pallavi.panchmatia@strides.com

Sandeep Baid Tel. No.: +91 80 6784 0734 PR Consultancy

+91 80 6784 0791 Fax No. +91 80 6784 0700 Fortuna PR
e-mail id.: manjula.r@strides.com K Srinivas Reddy: +91 90005 27213
srinivas@fortunapr.com

Boni Mukherjee: +91 9618682208

boni@fortunapr.com

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 Strides Pharma Science Limited

Statutory Reports
5.3.2. General Meetings and Tribunal Convened Meetings held during the preceding three years Consolidated results of the Postal Ballot Notice dated May 10, 2021, as approved on June 11, 2021 through
Details of the General Meetings and Tribunal Convened Meetings held during the preceding three years and requisite majority
Special Resolutions passed therein are summarised as under:
Votes Cast in Favor Votes Cast against
No. of votes polled
(% to total votes polled) (% to total votes polled)
AGM/ EGM Date /Time Venue Special Resolutions passed
Re-appointment of Mr. Bharat Shah (DIN: 00136969) as an Independent
AGM for FY ending September 03, 2021 Through video NA Director (passed as a special resolution)
March 31, 2021 at 12:30 hours IST conferencing / other
5,77,16,604 94.84 5.16
audio - visual means
Considering the COVID
19 pandemic and as Consolidated results of the Postal Ballot Notice dated November 10, 2021, as approved on January 14, 2022,
permitted by the Ministry through requisite majority
of Corporate Affairs
Votes Cast in Favor Votes Cast against
No. of votes polled
AGM for FY ending August 20, 2020 Through video 1) Appointment of Dr. R Ananthanarayanan as a (% to total votes polled) (% to total votes polled)
March 31, 2020 at 15:00 hours IST conferencing / other Managing Director & Chief Executive Officer of Item 1: Continuation of Mr. Bharat Shah (DIN: 00136969) as an
audio - visual means the Company; Independent Director (passed as a special resolution)
Considering the COVID 2) Re-appointment of Mr. Badree Komandur as an 5,71,33,453 99.82 0.18
19 pandemic and as Executive Director-Finance & Group CFO of the
permitted by the Ministry Company Item 2: Alteration of Articles of Association of the Company (passed as a
of Corporate Affairs special resolution)
6,13,46,356 99.99 0.01
AGM for FY ending July 30, 2019 at Hotel Four Points by 1) Re-appointment of Mr. S Sridhar as Item 3: Reclassification of “Outgoing Promoters 1” to “Public”
March 31, 2019 11.30 hours IST Sheraton, Plot No. – 39/1, Independent Director of the Company till the shareholder category (passed as an ordinary resolution)
6 to 15, Sector – 30A, conclusion of 33rd AGM;
Vashi, Navi Mumbai – 400 3,09,55,575 91.04 8.96
2) Approval for continuation of Directorship of Mr.
701 Deepak Vaidya as Non-Executive Director; Item 4: Reclassification of “Outgoing Promoters 2” to “Public”
shareholder category (passed as an ordinary resolution)
3) Amendment to Strides Employee Stock Option
Plan 2016; 3,09,55,576 79.48 20.52

4) Payment of commission to Non-Executive

Directors of the Company Procedure adopted by the Company for Postal Ballots Voting rights were reckoned on the number of shares
Postal Ballots were carried out as per the provisions of registered as on the cut-off date. The communication
Tribunal convened February 20, 2020 Hotel Four Points by 1) Merger of the following three Direct/ Indirect Sections 108 and 110 and other applicable provisions of assent / dissent of the Members was obtained only
Meeting at 12.00 Noon Sheraton, Plot No. – 39/1, Wholly owned Subsidiaries of Strides Pharma of the Act, read with the Rules framed thereunder through remote e-Voting system. Members desiring to
6 to 15, Sector – 30A, Science with itself.
and read with the General Circular No. 14/ 2020 dated exercise their votes by electronic mode were requested
Vashi, Navi Mumbai – 400 • Strides Emerging Markets Limited
701 • Arrow Remedies Private Limited April 8, 2020, General Circular No. 17/ 2020 dated April to vote before close of business hours on the last date
• Fagris Medica Private Limited 13, 2020, General Circular No. 22/ 2020 dated June 15, of e-voting.
2020, General Circular No. 33/ 2020 dated September 28,
Extraordinary General April 7, 2022 at Through video 1) Re-appointment of Mr. Homi Rustam 2020, General Circular No. 39/ 2020 dated December 31, In compliance with Sections 108 and 110 and other
Meeting 14.30 hours IST conferencing Khusrokhan (DIN: 00005085) as an Independent 2020 and General Circular No. 10/ 2021 dated June 23, applicable provisions of the Companies Act, 2013, read
Director of the Company
2021, respectively issued by the Ministry of Corporate with related Rules, the Company provided electronic
2) Issuance of Equity Warrants on Preferential Affairs, from time to time. voting (e-voting) facility to all its members. The
Basis Company engaged the services of KFintech for the
In terms of the MCA General Circulars, the Company purpose of providing e-voting facility to all its members.
Extraordinary General March 27, 2019 at Hotel Ritz Carlton, 1) Divestment of Australian Business dispatched the Postal Ballot by email to all its Members
Meeting 11.30 hours IST Residency Road, whose names appear in the Register of Members/ list The Scrutiniser submits his report to the Chairperson/
Bengaluru
of Beneficial Owners as received from the National Company Secretary, after the completion of scrutiny,
– 560025
Securities Depositor y Limited (NSDL)/ Central and the consolidated results of the voting by postal
5.3.3 Postal Ballot/ E-voting Depository Services (India) Limited (CDSL) or Registrar ballot are then announced by the Chairperson/
During FY22, the Company conducted two Postal Ballots to seek approval of the shareholders as under: and Share Transfer Agent (“KFin Technologies Limited authorised officer.
or KFintech”) as on the cut-off date.
Date of Postal Ballot Notice Type of Resolution Matter The results are also displayed on the Company website,
-Re-appointment of Mr. Bharat Shah (DIN: 00136969) as an The Company also published notice in the newspapers https://strides.com/media-pressrelease.html, and also
May 10, 2021 Special Resolution Independent Director of the Company for a second term declaring the details of completion of dispatch and on the website of KFintech i.e., https://evoting.kfintech.
of three years. other requirements as mandated under the Companies com/, besides being communicated to BSE Limited and
Special Resolution
-Continuation of Mr. Bharat Shah (DIN: 00136969) as an Act, 2013 and applicable Regulations. the National Stock Exchange of India Limited on which
Independent Director of the Company. the shares of the Company are listed.
Special Resolution -Alteration of Articles of Association of the Company.
November 10, 2021 -Reclassification of Outgoing Promoters 1 to “Public”
Ordinary Resolution
shareholder category
-Reclassification of Outgoing Promoters 2 to “Public”
Ordinary Resolution
shareholder category

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.

82 | Annual Report 2021-22 | 83

 Strides Pharma Science Limited

Statutory Reports
Resolutions, if approved by the Members by means of Number of Number of The Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on March
Particulars
Postal Ballot/ e-Voting is deemed to have been passed at shareholders equity shares 31, 2021 on the Company’s website.
a General Meeting of the Members and the last date of Aggregate number of 1,055 67,175
the e-Voting shall be the date on which the Resolutions shareholders and the 5.8 Due date for transfer of unpaid/ unclaimed dividend to IEPF
shall be deemed to have been passed, if approved by outstanding shares in the
suspense account lying at As per the provisions of the Companies Act, 2013 read with relevant rules, the Company is required to transfer
the requisite majority.
the beginning of the year outstanding dividend amount and related shares post completion of the prescribed period of 7 years.
5.4 General Shareholders Information Shareholders who 7 474
approached the Company Accordingly, outstanding dividend due for transfer to IEPF is as under:
5.4.1 Annual General Meeting (AGM) - FY22 for transfer of shares from
AGM of the Company for FY22 is scheduled to be held suspense account during the Financial Year Ending Type of Dividend Dividend Rate Date of declaration Due date for transfer to IEPF
on Friday, September 9, 2022 from 12:30 hours IST by year 31 March 2015 Final 30% 30 July 2015 04 September 2022
video conference/ other audio visual means. Shareholders to whom 7 474 31 March 2016 Final 40% 29 July 2016 03 September 2023
shares were transferred from
the suspense account during 31 March 2017 Final 45% 15 September 2017 21 October 2024
Time period for remote e-voting:
the year 31 March 2018 Final 20% 24 September 2018 30 October 2025

• Starts from 09:00 hours IST on Monday, September Aggregate number of 0 0 31 March 2019 Final 30% 30 July 2019 04 September 2026
shareholders and shares 31 March 2020 Interim 120% 29 July 2019 03 September 2026
5, 2022 and;
which were transferred to
31 March 2020 Final 20% 20 August 2020 25 October 2027
• Ends on Thursday, September 8, 2022 at 17:00 hours IEPF as per the MCA Circular
31 March 2021 Final 25% 3 September 2021 8 November 2028
IST. Aggregate number of 1,048 66,701
shareholders and the Fractional Shares Account *
5.4.2 Financial Reporting Calendar outstanding shares in the 27 January 2016 NA NA NA 03 March 2023
suspense account lying as on
Financial reporting calendar for FY23 is as under: Unclaimed Shares Suspense
March 31, 2022
Account**
Financial Reporting for Quarter/ Half Year 17 August 2016 NA NA NA 22 September 2023
During The voting rights on the shares outstanding in the
ended/ Annual
June 30, 2022 July 2022 suspense account as on March 31, 2022 shall remain * Arising on account of sale of fractional shares pursuant to merger of erstwhile Shasun with Strides;
frozen till the rightful owner claims the shares. ** Pursuant to unclaimed shares considered into Suspense Account as per Listing Regulations.
September 30, 2022 October 2022
December 31, 2022 February 2023
5.7 Unpaid/ Unclaimed Dividends and Shares 5.9 Due dates for transfer of unpaid/ unclaimed dividends to IEPF relating to erstwhile Shasun
March 31, 2023 May 2023 Pharmaceuticals Limited, which merged with the Company effective November 19, 2015 is as
In accordance with the provisions of Sections 124 and
follows:
125 of Companies Act, 2013 and Investor Education
In line with the Listing Regulations, the Company shall
and Protection Fund (Accounting, Audit, Transfer
disseminate relevant intimations/ disclosures to the Financial Year Ending Type of Dividend Dividend Date of declaration Due date for transfer to IEPF
and Refund) Rules, 2016 (IEPF Rules) dividends not
stock exchanges before and after the meetings. 31 March 2016 Interim Rate 50% 30 July 2015 04 September 2022
encashed/ claimed within seven years from the date
of declaration are to be transferred to the Investor
5.5 Dividend
Education and Protection Fund (IEPF) Authority. Shareholders of the Company, who have not yet encashed their dividend, may write to the Company/ Registrar
Considering the performance of the Company in FY22, and Share Transfer Agents immediately.
Board of Directors have decided not to recommend The IEPF Rules mandate companies to transfer
dividend for the financial year. shares of Members whose dividends remain unpaid/ 6. Listing on Stock Exchanges and Stock Codes
unclaimed for a continuous period of seven years to the
The Company has paid listing fees to both the stock exchanges and there is no outstanding payment as on date
5.6 Unclaimed Shares Suspense Account demat account of IEPF Authority. The Members whose
of this report. Details of the scrip is as under:
dividend/ shares are transferred to the IEPF Authority
Pursuant to Regulation 39(4) of Listing Regulations
can claim their shares/ dividend from the Authority.
read with Schedule VI of the said Regulations, the The equity shares of the Company are listed on:
Company has dematerialised shares which have been
In accordance with the said IEPF Rules and its
returned undelivered by postal authorities and shares BSE Limited National Stock Exchange of India Limited
amendments, the Company had sent notices to all the Stock Code: 532531 Stock Code: STAR
lying unclaimed. The dematerialised shares are held in
Shareholders whose shares were due to be transferred Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex,
an ‘unclaimed suspense account’ opened with Kotak
to the IEPF Authority and simultaneously published Dalal Street, Bandra (E),
Securities Limited.
newspaper advertisements. Mumbai – 400 001. Mumbai – 400 051.
Any corporate benefits accruing on such shares,
In terms of the provisions of IEPF Rules and Investor ISIN of the Company is INE939A01011.
vis. bonus shares, split etc., shall also be credited to
Education and Protection Fund (Awareness and
unclaimed suspense account, for a period of seven years
Protection of Investors) Rules, 2001, ` 1,07,64,053/- of
and thereafter shall be transferred by the Company
unpaid/ unclaimed dividends and 6,440 shares were
to Investor Education and Protection Fund (IEPF), in
transferred during FY22 to the IEPF including the
accordance with provisions of Section 124(5) and (6) of
dividend amounts declared and paid by erstwhile
the Companies Act, 2013 and rules made thereunder.
Shasun Pharmaceuticals Limited.
In accordance with the provisions of the Listing
The Company has appointed Ms. Manjula Ramamurthy,
Regulations, the Company reports the following
Company Secretary as the Nodal Officer of the Company
details in respect of equity shares lying in the suspense
under the provisions of IEPF, the details of which are
account.
available on the website of the Company.

84 | Annual Report 2021-22 | 85

 Strides Pharma Science Limited

Statutory Reports
NSE Chart
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: 1000 20,000

BSE NSE
Month
High (`) Low (`) Volume High (`) Low (`) Volume
April, 2021 946.80 814.45 1,924,779 947.00 814.05 16,759,665
May, 2021 882.50 758.00 1,463,570 883.00 756.90 12,724,358 800 15,000
June, 2021 847.45 739.00 1,930,529 847.80 668.70 15,879,981
July, 2021 817.45 731.70 1,149,336 818.00 731.55 8,087,395
August, 2021 809.00 568.30 1,724,742 808.95 562.55 24,047,197
September, 2021 642.10 571.55 1,082,480 642.40 571.50 13,691,020
600 10,000
October, 2021 608.85 517.45 1,214,705 608.95 517.20 16,133,503
November, 2021 559.75 471.60 1,454,451 559.80 471.20 21,601,190
December, 2021 502.35 403.55 1,592,421 502.70 403.30 32,924,428
January, 2022 466.60 367.05 1,508,991 466.90 367.10 18,596,312
February, 2022 413.50 309.20 1,204,844 413.75 308.80 17,103,012 400 50,000
March, 2022 371.90 304.50 1,257,332 372.00 304.20 27,332,432

8. Performance of Strides Pharma Science Limited Share Price to Broad Based Index (BSE
Sensex and NSE Nifty)
200 40,000
Strides Nifty

BSE Chart
3. LoC shall be valid for a period of 120 days from the
1000 80,000
9. Share Transfer System date of its issuance;
The Company has appointed KFin Technologies
Limited (Formerly, KFin Technologies Private Limited), 4. Claimant/ Securities Holder to make a request to
Hyderabad, as its Registrar and Share Transfer Agents the Depository Participant for dematerializing the
(KFintech) to expedite the process of share transfers. said securities;
800 70,000
In terms of the Listing Regulations, securities of listed 5. In case the Claimant/ Securities Holder fails to
companies can only be transferred in dematerialized submit the demat request within the prescribed
form with effect from April 1, 2019. period, such shares shall be credited to the
Suspense Escrow Demat Account of the Company.
600 60,000 Further, as an ongoing measure to enhance ease of
dealing in securities by investors, SEBI vide its Circular All queries and requests relating to share transfers/
of January 25, 2022, has mandated listed companies to transmission may be addressed to Kfintech at the
issue securities in demat form only while processing following correspondence:
service requests such as transfer, transmission, issue
of duplicate share certificates, renewal/ exchange of KFin Technologies Limited,
400 50,000
share certificates, consolidation of folios etc. (Formerly KFin Technologies Private Limited),
Selenium Tower B, Plot No. 31 & 32,
In terms of the Circular, Financial District, Nanakramguda,
Serilingampally Mandal,
1. Claimant/ Securities Holder shall submit their
Hyderabad – 500032
200 40,000 request in Form ISR-4 (hosted on website of
Toll Free No: 1- 800-309-4001
Strides Sensex Company and RTA) along with requisite documents
E-Mail: einward.ris@kfintech.com
and details;
Website: https://www.kfintech.com/
https://ris.kfintech.com/
2. 
RTA shall verify the request and documents
submitted and thereafter issue a Letter of
Contact Persons:
Confirmation (LoC) in lieu of physical securities
certificates to the Claimant/ Securities Holder Mr. S.V. Raju, Deputy Vice President
within 30 days of receipt of such request; Mr. Mohan Kumar A, Manager

86 | Annual Report 2021-22 | 87

 Strides Pharma Science Limited

Statutory Reports
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:
% to Total
No. of
Slab of Shareholding Number of No. of Shares Amount % of Amount Opening balance No. of cases
Shareholders Disposed during Pending as at
Shareholders # Description as at April 1, received during
the year March 31, 2022
1 – 5,000 1,26,417 94.91 89,40,305 8,94,03,050.00 9.96 2021 the year

5,001 – 10,000 3,767 2.83 28,25,548 2,82,55,480.00 3.15 1 Non-receipt of dividend warrants 1 109 110 0
2 Non-receipt of annual reports 0 2 2 0
10,001-20,000 1,616 1.21 23,72,539 2,37,25,390.00 2.64
3 Non-receipt of securities 0 17 17 0
20,001-30,000 512 0.38 12,86,539 1,28,65,390.00 1.43 4 Non-receipt of securities after transfer 0 0 0 0
30,001-40,000 208 0.16 7,40,521 74,05,210.00 0.82 5 Non-receipt of electronic credits 0 1 1 0
40,001-50,000 133 0.10 6,19,578 61,95,780.00 0.69 6 Non-receipt of duplicate/ transmission/ deletion 0 1 1 0
of share certificates
50,001-1,00,000 221 0.17 15,73,629 1,57,36,290.00 1.75 7 Non-receipt of stickers against payment of AM 0 0 0 0
1,00,001 and above 316 0.24 7,14,31,555 71,43,15,550.00 79.55 8 SEBI Complaints (SCORES) 0 2 2 0
TOTAL 1,33,190 100.00 8,97,90,214 89,79,02,140.00 100.00 9 NSE/ BSE Complaints 0 1 1 0
10 Other Complaints (MCA/ROC) 0 3 3 0
Total 1 136 137 0
11. Shareholding Pattern as at March 31, 2022
No. of shares % to total
14. Disclosures and Confirmations The Secretarial Audit for the FY22, inter alia, included
# Category
held shareholding 14.1. Governance of Subsidiary Companies audit of compliance with the Companies Act, 2013 (Act),
1. Promoters 2,74,72,894 30.60 and the Rules made under the Act, Listing Regulations
Company has in place policy for Governance of
and applicable Regulations prescribed by SEBI amongst
2. Mutual Funds 1,11,21,259 12.39 subsidiaries which is drafted in line with the SEBI
others.
3. Banks, Indian Financial Institutions, Insurance Companies 9,025 0.01 Listing Regulations. Policy is available at https://strides.
4. Foreign Institutional Investors/ Foreign Portfolio Investors 1,76,51,285 19.65 com/pdf/Committees%20of%20the%20Board/2022/
The Secretarial Audit Report forms as an Annexure to
5. Bodies Corporate & NBFC 47,38,316 5.28
strides_policy_for_governance_of_subsidiaries.pdf.
Boards’ Report and does not contain any qualification,
6. Non-Resident Indians/ Foreign Nationals/ Overseas Corporate Bodies 20,38,923 2.27 reservation or adverse remark.
Minutes of the Board Meetings of the subsidiary
7. Qualified Institutional Buyers 44,26,948 4.93 companies along with the details of significant
8. Others (including Indian Public, Clearing Members, Trust, etc.) 2,23,31,564 24.87 14.5. Employee Stock Options
transactions and arrangements entered into by the
TOTAL 8,97,90,214 100.00 subsidiary companies are shared with the Board of Statement providing detailed information on stock
Directors on a quarterly basis. options granted to Employees under the Company’s
Outstanding warrants, conversion date and 12. Dematerialisation of Shares & Liquidity Employee Stock Option Schemes as required under the
impact on equity Details of investments, loans and guarantees, if any, SEBI Regulation is annexed to the Board’s Report as
The Company’s shares are traded in dematerialised
made by the subsidiary companies are placed before Annexure 2.
The Company has allotted 2 Million Equity Warrants form. The Company has established connectivity
and reviewed by the Audit Committee of the company.
on April 26, 2022, on a preferential basis to M/s. Karuna with both the Depositories vis., National Securities
14.6. Manufacturing Facilities as at the date of
Business Solutions LLP (Karuna), a promoter group Depository Limited (NSDL) and Central Depository
14.2. Reconciliation of Share Capital Audit this report:
company, at a price of ` 442/- per Equity Warrant, Services (India) Limited (CDSL) through the Registrar,
pursuant to the approval accorded by the Shareholders KFin Technologies Limited (formerly, KFin Technologies The Company conducts a share capital audit on a # Address
of the Company at the Extraordinary General Meeting Private Limited) quarterly basis in accordance with requirements of 1 Strides Pharma Science Limited
held on April 7, 2022. Securities and Exchange Board of India (Depositories KRS Gardens, Suragajakkanahalli, Kasaba Hobli, Anekal
As at March 31, 2022, 99.86% of the paid-up share capital and Participants) Regulations 2018. Taluk, Bangalore – 562 106, India
Karuna has a right to apply for and get allotted, within of the Company representing 8,96,64,223 shares has 2 Strides Pharma Science Limited
a period of 18 months from the date of allotment been dematerialised and balance 0.14% representing The Reconciliation of Share Capital Audit Report PIMS Road, Periyakalapet, Puducherry – 605 014, India
of Warrants (until October 26, 2023), in one or more 1,25,991 shares of the Company is in physical form. obtained from a Practicing Company Secretary, which 3 Strides Pharma Science Limited
tranches, One Equity Share of face value of ` 10/- each has been submitted to the Stock Exchanges within the #19/1,19/3, Chandapura, Sarjapura, Hobli, Anekal taluk,
for each Warrant. Shareholders who continue to hold shares in physical stipulated period, certifies that the equity shares of Bengaluru -560 099, India
form are advised to dematerialise their shares at the the Company held in the dematerialised form and in 4 Vivimed Life Sciences Private Limited
The said allotment is in compliance with the provisions earliest. Further, in line with the various SEBI circulars, the physical form confirms to the issued and paid up Plot no. 101 to 108, SIDCO Industrial Estate, Alathur
of the Companies Act, 2013, SEBI (Issue of Capital and Members are also requested to update their PAN equity share capital of the Company. Village, Kancheepuram – 603 110, India
Disclosure Requirements) Regulations, 2018 and other and Bank details. For any clarification, assistance or 5 Strides Pharma Global Pte Ltd, Singapore
applicable regulations. information – members may contact the Company or 14.3. Secretarial Compliance Certificate 3 Tuas South Avenue 4, Singapore – 637610
KFintech. 6 Strides Pharma Inc, USA
As per provisions of the Listing Regulations, the 1 Ram Ridge Road, Chestnut Ridge, NY 10977, USA
Promoter’s shareholding shall move from 30.60% as at
Company has obtained the Secretarial Compliance
March 31, 2022 to 32.11%, assuming full conversion of 7 Beltapharm SpA, Italy
Certificate on half yearly basis from a Practicing 20095 Cusano ML, Via Stelvio, 66, Italy
warrants into equity.
Company Secretary to the effect that all transfers/
8 Universal Corporation Limited, Kenya
transmissions of shares are effected within stipulated
Club Road, Past Post Office, Plot No. 13777,
time. The said certificate has also been submitted to P.O. Box 1748- 00902, Kikuyu Town, Kenya
the Stock Exchanges within the prescribed time.
14.7. Fee payable by the Company and its subsidiaries
14.4. Secretarial Audit
to the statutory auditor i.e., BSR & Co. LLP, Chartered
M/s. Gopalakrishnaraj H. H. & Associates, a firm of Accountant, and all entities in the network firm/
Company Secretaries in practice (Certificate of practice network entity of which the statutory auditor is a part
no. 4152) is the Secretarial Auditor for the company.

88 | Annual Report 2021-22 | 89

 Strides Pharma Science Limited

Statutory Reports
for FY22, is ` 33.955 Million (excluding applicable taxes d) The Company has complied with the requirements

#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
and out of pocket expenses). of the Stock Exchanges, SEBI and other statutory
authorities on matters relating to capital markets
14.8. Declaration by Independent Directors
during the last 3 years. No penalties or strictures
In accordance with Section 149 (7) of the Companies Act, have been imposed on the Company by the Stock

Area of Expertise
2013 and Regulation 25 (8) of Listing Regulations, each Exchange or SEBI or any statutory authorities

Personal Values
Independent Director has confirmed to the Company relating to the above.
that he/ she meets the criteria of independence as laid
e) The Company has formulated a Whistle Blower
down in Section 149 (6) of the Companies Act, 2013 and
Policy for Directors and Stakeholders of the
Regulation 16 (1) (b) of Listing Regulations as at March
Company. None of the personnel of the Company

c. Spandana Sphoorthy Financial Limited

a. Solara Active Pharma Sciences Limited

b. Solara Active Pharma Sciences Limited

31, 2022.

- Non-Executive Independent Director

Limited - Non Executive Independent
has been denied access to the Audit Committee.

b. Shriram Transport Finance Company

Independent Director & Chairman

Independent Directors have also confirmed completion

a. Indraprastha Medical Corporation

Executive Independent Director &

a. 3M India Limited - Non-Executive
f) The Company is not exposed to any commodity

Directorship and designation in other listed

of the registration formalities as prescribed by Ministry

b. Exide Industries Limited - Non-

a. Neuland Laboratories Limited -

Limited - Independent Director

Limited - Independent Director

b. Spandana Sphoorthy Financial
price risk. The details of the Foreign Exchange Risk

Corporate Governance
of Corporate Affairs to include their name in the data

a. Sequent Scientific Limited -

c. Go Fashion (India) Limited -

a. Jubilant Pharnova Limited -
and Company’s hedging activities forms part of
bank of Independent Directors with Indian Institute of

- Non Executive Director

the Notes to the Financial Statements.
Corporate Affairs and the validity of such registration.

- Independent Director
Independent Director

Independent Director

Independent Director
Independent Director
g) Disclosures in relation to the Sexual Harassment
Board is of the opinion that the Independent Directors
of Women at Workplace (Prevention, Prohibition
fulfil the conditions specified in the above said
and Redressal) Act, 2013:
regulations and are independent of the management.

Chairman
14.9. Mr. Gopalakrishnaraj of M/s. Gopalakrishnaraj Particulars Remarks

Director
companies
H & Associates, Company Secretaries, has issued a a. number of complaints filed during 2
certificate as required under the Listing Regulations FY22

None
confirming that none of the directors on the Board of b. number of complaints disposed off 2

Pharma Business
the Company has been debarred or disqualified from during FY22

Shareholding in
being appointed or continuing as director of companies

as on May 24,
the Company
c. number of complaints pending as on 0

15,40,997

(~0.001%)

(~0.054%)

(~0.085%)

(~0.028%)
(~1.72%)
by the SEBI/ Ministry of Corporate Affairs or any such end of FY22

48,750

76,424

25,000
1,203
statutory authority. The certificate is enclosed as

Direct

2022

Nil
Annexure CG 2 to this Report. 16. Code of Conduct

-
in Committees
Board has adopted Code of Conduct (‘Code’) for all Board

of the Board*
Membership
15. Other Affirmations & Disclosures

Number of
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

Functional & Managerial Experience

mandatory requirements as prescribed under the Company https://strides.com/pdf/Committees%20

Act, 2013. None of our Directors hold directorship in more than seven listed companies.
Listing Regulations including regulations 17 to of%20the%20Board/2022/strides’_code_of_conduct_

in Committees
Chairmanship

None of the Directors are holding any convertible securities of the Company
of the Board*
27 and clauses (b) to (i) of sub-regulation (2) of july_2022.pdf.

Number of
regulation 46 of Listing Regulations and also a few

Profile of Directors is available at https://www.strides.com/corporate-board.html

Annexure CG 1 - Details of Directors as at May 24, 2022
non-mandatory requirements, as prescribed under The Code provides that members of the Board are

0
-
Regulation 27(1) of the Listing Regulations like required to avoid any interest in contracts entered

Directorships
unmodified audit opinion on financial statements into by the Company. If such an interest exists, the

Number of
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

reappointment Total

July 30, 2019 13

influencing on any matter in which the concerned

April 7, 2022 3

May 18, 2022 3

May 18, 2020 1

b) There are no materially significant related party

Effective Date of
Director has or may have such interest. The Code also
transactions with its promoters, directors or

December December
restricts the Directors from accepting any gifts or

appointment designation

11, 2019
management, their subsidiaries or relatives etc.,

June 15,
in current
incentives in their capacity as Director of the Company,
that may have potential conflict with the interests

2021
except what is duly authorised under the Code.

NA
of the Company.

*In line with Regulation 26 of Listing Regulations

None of the Directors are related to each other

c) 
The Company has formulated policies for All Board Members and Senior Management Personnel

Management & Leadership Experience

11, 2019

16, 1998
June 28,

3 Deepak Vaidya Non-Executive January

May 18,

May 18,
July 27,

July 25,
determining material subsidiaries and for have confirmed compliance with the Code for the

Date of
initial

1990

2012

2014

2017

2017
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 declarat ion to this effect sig ned by the

Independent

Independent

Independent

Independent
Chairperson

Finance and
& Managing
Board/2022/policy_for_governance_of_rpt.pdf. Managing Director of the Company is attached as

Group CFO
Executive

Executive
Director -
Designation
Annexure CG 3 to this Report.

Director

Director

Director

Director

Director

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

6 Homi Rustam
2 Dr. Kausalya
1 Arun Kumar

Khusrokhan
5 Bharat Shah
For and on behalf of the Board of Directors

Santhanam
Number (DIN)

Komandur
Identification
and Director
the Director

4 S Sridhar

7 Badree
Name of

Arun Kumar Badree Komandur

Date: May 24, 2022 Executive Chairperson & Managing Director Executive Director – Finance & Group CFO
No.

Place: Bengaluru DIN: 00084845 DIN: 07803242

Sl

90 | Annual Report 2021-22 | 91

 Strides Pharma Science Limited

Statutory Reports
Annexure CG 2 Annexure CG 3

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS Declaration of Compliance with the Code of Conduct

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
for the Financial Year ended March 31, 2022

To, I hereby confirm that the Company has received affirmation as to compliance with Company’s Code of Conduct
The Members of for the Financial Year ended March 31, 2022 from the Board Members and Senior Management Personnel.
Strides Pharma Science Limited
Arun Kumar
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors
Executive Chairperson &
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, Place: Bengaluru, India Managing Director
Bannerghatta Road, Bengaluru – 560 076 (hereinafter referred to as ‘the Company’), produced before us by the Date: May 24, 2022 DIN: 00084845
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.

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

92 | Annual Report 2021-22 | 93

 Strides Pharma Science Limited

Statutory Reports
Independent Auditors’ Certificate on Compliance with the Corporate Governance
Requirements Under Securities and Exchange Board of India (Listing Obligations and Business Responsibility Report
Disclosure Requirements) Regulations, 2015

To Chartered Accountants of India (the “ICAI”), in so

The Members of Strides Pharma Science Limited far as applicable for the purpose of this certificate.
Section A: General Information About the Company
The Guidance Note requires that we comply with # Description Remarks
1. This certificate is issued in accordance with the the ethical requirements of the Code of Ethics
1. Corporate Identity Number (CIN) of the L24230MH1990PLC057062
terms of our engagement letter dated 30 July 2018. issued by the ICAI.
Company
2. Name of the Company Strides Pharma Science Limited
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 3. Registered Address 201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400 703.
Limited (“the Company”), for the year ended 31 (SQC) 1, Quality Control for Firms that Perform 4. Website www.strides.com
March 2022, as stipulated in regulations 17 to 27, Audits and Reviews of Historical Financial 5. E-mail id investors@strides.com
clauses (b) to (i) of regulation 46(2) and paragraphs Information, and Other Assurance and Related 6. Financial Year reported 2021-2022
C, D and E of Schedule V of the Securities Exchange Services Engagements. 7. Sector that the Company is engaged in Pharmaceutical
Board of India (Listing Obligations and Disclosure (industrial activity code-wise)
Requirements) Regulations, 2015 as amended from Opinion 8. List three key products/services that the • Tenofovir/Lamivudine/Dolutegravir tablets
time to time (“Listing Regulations”). Company manufacture/provide • PEG powder
8. In our opinion and to the best of our information
(as in balance sheet) • Combiart tablets
and according to the explanations given to us, we
Management’s Responsibility certify that the Company has complied with the 9. Total number of locations where business activity is undertaken by the Company
3. 
The compliance of conditions of Corporate conditions of Corporate Governance as stipulated Number of international locations Singapore, USA, Canada, Europe, including UK, Africa
Governance as stipulated under the Listing in the above-mentioned Listing Regulations. Four manufacturing facilities – in Singapore, USA, Europe and Africa
Regulations is the responsibility of the Company’s Number of national locations Registered Office: Vashi, Navi Mumbai, Maharashtra
Management including the preparation and 9. 
We state that such compliance is neither an Corporate Office: Bangalore, Karnataka
maintenance of all the relevant records and assurance as to the future viability of the Company Facilities:
documents. This responsibility includes the nor the efficiency or effectiveness with which the • Suragajakkanahalli, Bangalore, Karnataka
design, implementation and maintenance of Management has conducted the affairs of the • Chandapura, Bangalore, Karnataka
internal control and procedures to ensure the Company. • PIMS Road, Periyakalapet, Puducherry
compliance with the conditions of Corporate • Alathur, Kancheepura
Governance stipulated in the Listing Regulations. Restriction on use R&D Center at Bangalore, Karnataka
10. Markets served by the Company – Local/State/ The Company has a strong commercial footprint across 100 countries.
10. The certificate is addressed and provided to the
Auditors’ Responsibility Members of the Company solely for the purpose
National/International

4. Our examination was limited to procedures and of enabling the Company to comply with the
implementation thereof, adopted by the Company requirement of the Listing Regulations and
Section B: Financial Details of the Company
for ensuring the compliance of the conditions of should not be used by any other person or for any # Description
the Corporate Governance. It is neither an audit other purpose. Accordingly, we do not accept or
1. Paid-Up Capital – FY 2021-22 ` 89.79 Crores
nor an expression of opinion on the financial assume any liability or any duty of care for any
statements of the Company. other purpose or to any other person to whom this 2. Total Turnover ` 19,790 Million
certificate is shown or into whose hands it may (on a standalone basis)
5. 
Pursuant to the requirements of the Listing come without our prior consent in writing. 3. Total profit after taxes ` 1,801.87 Million
Regulations, it is our responsibility to provide (on a standalone basis)
a reasonable assurance whether the Company For B S R & Co. LLP 4. Total spending on Corporate Social 2% of the average net profit of the last three years – ~` 24.02 Mio
has complied with the conditions of Corporate Chartered Accountants Responsibility (CSR) as percentage of profit
Governance as stipulated in Listing Regulations Firm’s Registration No: 101248W/W - 100022 after tax (%)
for the year ended 31 March 2022. 5. List of activities in which expenditure in 4 Areas in which the Company has spent under CSR:
Sampad Guha Thakurta above has been incurred
6. 
We conducted our examination of the above Partner • Health & Hygiene,
• Education,
corporate governance compliance by the Company Membership No: 060573
• Employability;
in accordance with the Guidance Note on Reports UDIN: 22060573AOVXXQ8448 • Disaster Management
or Certificates for Special Purposes (Revised 2016)
and Guidance Note on Certification of Corporate Place: Bengaluru A detailed report on the CSR activities of the Company forms part of the
Governance both issued by the Institute of the Date: 12 August 2022 Annual Report of FY22.

94 | Annual Report 2021-22 | 95

 Strides Pharma Science Limited

Statutory Reports
Section C: Other Details # Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
9. Does the Company have a grievance Yes
# Description
redressal mechanism related to the policy/
1. Does the Company have any Subsidiary The Company has 43 subsidiaries, JVs and Associates in India and policies to address stakeholders’ grievances
company/companies overseas, a list of which forms part of the Board’s Report as Annexure 1. related to the policy/ policies?
2. Do the subsidiary company/companies 10. Has the Company carried out independent No
participate in the BR initiatives of the parent The Company’s Business Responsibility initiatives were not extended to audit/evaluation of the working of this policy
company? its subsidiaries, JVs and associates during the reporting period. by an internal or external agency?

If yes, then indicate the number of such In due course, the Company intends to extend its sustainability policies
and initiatives beyond its boundaries and spread awareness among its d. If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick
subsidiary company/companies
several stakeholders. up to 2 options)
3. Do any other entity/entities (e.g. suppliers,
distributors, among others) that the Company
# Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
does business with, participate in the BR
initiatives of the Company? 1. The Company has not understood the Principles - - - - - - - - -
2. The Company is not at a stage, where it finds itself - - - - - - - - -
If yes, then indicate the percentage of such in a position to formulate and implement the
entity/entities? [Less than 30%, 30-60%, More policies on specified principles
than 60%]
3. The Company does not have financial or manpower - - - - - - - - -
resources available for the task
Section D: BR Information 4. It is planned to be done within the next 6 months - - - - - - - - -
1. Details of Director/Directors responsible for BR 5. It is planned to be done within the next 1 year - - - - - - - - -
6. Any other reason (please specify) - - - - - - - - -
a. Details of the Director/Directors responsible for the implementation of the BR policy/policies:
2. Governance related to BR
1 DIN Number 00084845
2 Name Arun Kumar # Description Remarks
3 Designation Executive Chairperson & Managing Director 1. Indicate the frequency with which the Board Annually by the Board of Directors
of Directors, Committee of the Board or CEO to
b. Details of the BR head assess the BR performance of the Company –
within 3 months, 3-6 months, annually, more
than 1 year
1 DIN Number Not Applicable
2. Does the Company publish a BR or a This report shall be published annually as a part of the Annual
2 Name Mr. Christoph Funke
Sustainability Report? What is the hyperlink Report which will be available on the Company’s website as well.
3 Designation Chief Operations Officer for viewing this report? How frequently it is
4 Telephone number +91 80 6784 0290 published?
5 E-mail id Christoph.funke@strides.com
Section E: Principle-Wise Performance Our strategy is directed towards having a sharper focus
Principle-wise (as per NVGs) BR policy/policies on compliance.
Principle 1:
c. Details of compliance (Reply in Y/N) Businesses should conduct and govern themselves The values that define our business ethos are: Integrity,
with Ethics, Transparency and Accountability Collaboration and Efficiency.
# Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 Str ides is a global pharmaceutical Company
1. Do you have a policy/ policies for... ? Y Y Y Y Y Y NA Y Y headquartered in Bangalore, India. The Company • Integrity - We will follow the Right Practices and do
2. Has the policy been formulated in Y Y Y Y Y Y NA Y Y mainly operates in the regulated markets and has an “in the Right thing;
consultation with relevant stakeholders? Africa for Africa” strategy along with an institutional
• Collaboration - We will work Together - understanding
3. Does the policy conform to any national/ The policies are drafted in line with the provisions of the business to service donor - funded markets. The
and supporting each other;
international standards? If yes, specify? respective laws prevalent in India. Company focusses on “difficult to manufacture”
4. Has the policy been approved by the Board? The policies are approved by the functional heads, and few of products that are sold in over 100 countries • Efficiency - We will do everything to deliver quicker
If yes, has it been signed by MD/owner/ CEO/ them have been adopted by the Board. and better results.
appropriate Board Director? As at the date of the report, the Company has global
It is these values that have helped us not only
5. Does the Company have a specified While few of the policies mandate requirement of a Board manufacturing footprint with facilities located in
instigate trust in our Company, but also develop strong
committee of the Board/ Director/ Official to Committee, the rest of them are monitored by the management India - Bangalore (two sites), Puducherry and Chennai,
oversee the implementation of the policy? team.
relationships with all our stakeholders thereby creating
Singapore, Italy – Milan, USA – New York and Kenya -
long-term value for society and our business.
6. Indicate the link for the policy to be viewed Link to the policies, which are available on the website – Nairobi.
online? www.strides.com
The code of conduct relating to ethics, bribery and
7. Has the policy been formally communicated Yes The Company has a dedicated R&D facility in India
corruption is integrated in our well-established and
to all relevant internal and external with global filing capabilities and a strong commercial
stakeholders? implemented ‘Code of Conduct’ for the Board, senior
footprint across 100 countries.
management and employees. The existing code does
8. Does the Company have in-house structure Yes
to implement the policy/policies? not cover suppliers, contractors and business partners.
We are devoted towards a holistic approach to
corporate governance. We benchmark our corporate
The Whistleblower Policy is formulated with a view to
governance activities to best practices across the globe.
provide a mechanism for employees of the Company to

96 | Annual Report 2021-22 | 97

 Strides Pharma Science Limited

Statutory Reports
raise concerns of any violations of legal or regulatory monitors the resource consumption in batches. movement. In this financial year, we have procured programme. Some of the other available employee
requirements, incorrect or misrepresentation of any Currently, monitoring of resource consumption for a part of our required materials from local (India) benefits include provident fund, superannuation fund,
financial statements and reports, etc. It is applicable manufacturing each unit of product is not feasible. suppliers. employee state insurance scheme, gratuity fund,
to not just our employees but also extends to our However, we are aware of the importance of adopting compensated absences, long service awards and post-
business associates. Some of the malpractices and highest standards of environmental and social We also educate our vendors and suppliers on the employment medical benefits – mediclaim insurance
events covered under this policy are negligence practices in all our manufacturing locations. current needs of quality standards, regulatory policy, group term life policy, group accident policy,
causing substantial and specific danger to public health compliances to adhere to and share good industry maternity leave and paternity & adoption leave policy.
and safety, deliberate violation of law/regulation, Each of our manufacturing locations monitor the practices with them.
breach of Company policy or failure to implement or energy, water and fuel consumption on daily basis. We On safety, our primary motto is everyone working for
comply with any approved Company policy, wastage/ have undertaken various measures towards identifying Product recycle and waste management Strides to go back home safely without injuries. The
misappropriation of Company funds/assets, etc. our environmental risks and develop mitigation plans We are committed to bring safe, efficient and guiding principle of safety is outlined in our EHS policy
to address them. All our manufacturing locations in affordable drugs to help cure and ease the suffering applicable, displayed and practiced across all facilities.
All disclosures reported under our Whistleblower Policy India are complying to ISO 14001: 2015 standards and of patients worldwide. We are regulated by stringent A culture of everyone is responsible for his/her safety is
are thoroughly investigated by the HR Head, who is the two key manufacturing sites are ISO 14001 certified pharmaceutical standards set out by the international inculcated. A transparent reporting system is in place
Whistle Officer of the Company. The Whistle Officer by NQA. agencies including the USFDA, EMA, WHO, TGA, to report all incidents however minor they are, and
oversees the investigations under the authorisation UK MHRA and ANVISA amongst others. All these corrective actions taken to prevent recurrence.
of the Audit Committee. During the reporting period, Production Details – FY22 requirements ensure that patients get only the highest
no stakeholder complaints were received on ethics, quality of medicines. Our entire value chain is designed The Company’s health and safety approach include
transparency and accountability. # Type of Products Manufactured
No. of Quantity to comply with the highest standards of quality, strong input and output measures viz.;
facilities Produced
product safety, and processes. We have implemented
1 Oral Dosage (Tablets, HG 4 5,550 Million 1. Safe permit to work system
Principle 2: a precautionary approach to check that no waste/
Capsules, Soft gel capsules, rejected batch materials are returned to the production 2. Reporting of near misses and hazard conditions
Businesses should provide goods and services that Liquids & Powders) and
process.
are safe and contribute to sustainability throughout Topicals 3. PPE policy ensuring Use of personal protective
their life cycle equipment
We also ensure that the waste generated is appropriately
We are dedicated to design, develop and manufacturing Resource Consumption Details – FY22
disposed complying with applicable environmental 4. 
Comprehensive hazard and risk assessment
products that are safe for human consumption,
laws and statutory guidelines. processes
socially beneficial, economically and environmentally S.
Type of Resource Utilised Units Consumption
No.
sustainable throughout their life cycle. We have 5. Emergency preparedness.
1 Water KL 1,92,967 We have also taken steps towards effective treatment
implemented the Quality by Design principles from
of the process generated wastewater. The process
development to commercialisation to ensure we 2 Electricity KWH 45.80 Million The Company observes zero-tolerance against any
water is treated in the wastewater treatment plant and
provide the high quality and affordable medication to 3 Fuel discrimination on the grounds of nationality, sex,
reused for gardens/lawns inside the plant premises
our patients. We have invested in Oracle Agile Product a) HSD KL 644 religion, marital status, caste, creed and also sexual
across all sites in India. In FY22, we treated 1,00,903
Lifecycle Management for all our R&D operations to b) FO KL 1,016
harassment. Any transgression in this regard is met
KL of wastewater.
ensure the good documentation practices throughout with stringent disciplinary action.
c) Briquette Tonne 144
the product life cycle. The product suite, in addition
Principle 3:
to aggregation of development data for our dossiers COVID-19 CARE
prepared for regulatory filing, helps us to track the Sustainable sourcing Businesses should promote the well-being of all At Strides, employees’ health and wellbeing is our
entire lifecycle of the product. We address elements of sustainable sourcing like employees highest priority and we strive to do the best we can to
ethics, labour and human rights, wages and benefits, We acknowledge that our employees are the drivers of support our people.
To ensure that patients have access to affordable health and safety and the environment in the purchase/ our development and consider them to be our greatest
medicines and to create dependable value in a service orders released to our vendors and suppliers. assets. Our vision is to create a working environment As briefed below, we have taken several initiatives to
constantly evolving global pharmaceuticals landscape, While we are in the process of developing a well- that facilitates their personal well-being while meeting support our people with multiple employee support
we incorporate sustainable and rightful practices defined ‘Supplier Code of Conduct’ with an endeavour the business needs. We are committed to providing a initiatives through these challenging times:
throughout the product development process. to integrate sustainability in our procurement process work environment that ensures that every employee is
for all our products and services, we do conduct audit treated with dignity, respect and equality. Support for deceased employees’ families: We are
Our key products wherein social and environmental- and due diligence prior to sourcing of materials/availing providing financial support to secure honourable living
friendly designs have been incorporated are: services from the vendors. The sourced products are Health & Safety for families of deceased employees due to COVID-19
submitted for approval with the regulatory authorities Health and safety of employees is a critical element that
• Favipiravir Tablets 200mg for the treatment of Mild and post their approval, such materials are used in our makes any workplace appropriate and is paramount for Vaccination Reimbursement: We are providing base
to Moderate COVID-19 Infection; final products. our operations. For our sustainable business, Safety is a and booster vaccination for employees free of charge
prerequisite. Health and Safety is the license to operate and we encourage our employees to be vaccinated and
• Nirmatrelvir Tablets 150 mg & Ritonavir Tablets 100
Sourcing from local and small producers our business and is a key performance parameter over continue to exercise adequate precaution.
mg for Mild to Moderate COVID-19 Infection;
The Company procures goods from local and small and above the business metrics. The wellness of our
• Molunupiravir Capsules 200 mg and 400 mg for the producers, who comply with its quality requirements. workforce is given utmost importance in the interest Assistance from In-House Doctors: Our in - house
treatment of Mild to Moderate COVID-19 Infection; We follow required statutory obligation to meet of employees’ safety, their health and in the interest doctors are extending their help round the clock
sustainability with the micro, small and medium of the employer’s responsibility. As part of health and for tele-consultation of affected employees or their
• Emtricitabine/Tenofovir Fixed-Dose Combination
enterprises. wellness, organisation is promoting many initiatives families.
anti-retroviral used for the treatment of HIV/AIDS;
including allowing flexi-time for exercise, medical
• Tenofovir/ Lamivudine/ Dolutegravir Fixed-Dose Our supply chain strategy management of the insurance, flexible work time/work from homes (for Employee Connects & Streamlined Coordination from
Combination used the treatment of HIV/AIDS Company believes in facilitating local economic growth certain roles which may be performed remotely), HR and Admin: There is a coordinated approach among
by encouraging and supporting local suppliers in the maternal leave, paternal leave and employee wellness all site HRs and the Admin team to tackle any case
The Company, being a mass mult i-product vicinity of our area of operation. Local sourcing also programme – ‘We Care’. The Company follows a related to COVID-19.
manufacturing and multi-facility established Company, helps us in reducing air emissions from vehicular wellness calendar as a part of the employee welfare

98 | Annual Report 2021-22 | 99

 Strides Pharma Science Limited

Statutory Reports
Employee engagement participants about the role of Supervisors in an  ACE (Performance & Capability Enhancement) – PACE
P
We also assure employees’ well-being through active engagement. We have several two-way communication organisation. To prepare them for managing and is our business skills suite comprising of key skills
platforms in place for employees to express themselves, raise their queries and enable employees to know more engaging team associates / members in changing such as Time Management, Planning & Prioritisation,
about the organisation. scenario. To provide them a platform in building Giving and Receiving Feedback, Productivity Hacks,
supervisory skills for managing people. Interpersonal skills, MS Office tools, Professional email
writing skills, setting stretch goals, Six Thinking Hats
he programme consisted of Communication,
T amongst others. PACE is designed as short, intense
Seek App Town Hall Meetings Amber App Interpersonal Skills, Presentation Skills, Time programmes of 2.5 hours and is centred around practice
This is for bringing in This is a two- way Amber was onboarded as Management, Mentoring, Problem Solving, Team of skills through role plays, case studies, discussions.
greater awareness and communication channel an AI tool in to understand Management and Technical Writing over a span of 8 to 9 These offerings are run as part of the monthly training
engagement around where the common employee sentiment and months with mid and final assessment on the learning calendar and are open to all employees to self-nominate
quality. Through SEEK the concerns and issues reach out to employees at performance. The programme brought a remarkable and attend. PACE is run as in-person and virtual
employees are introduced amongst the employees are various tenure milestones. 
exposure of various elements and confidence in each classroom sessions.
to the concept and issues discussed. The employees It also gives data of
around quality. It provides can raise their concerns, disengaged employees. participant.
an interactive platform to give suggestions and I n view of the pandemic that struck all of us, Learning &
express views and opinions. express their grievances.  fter a successful implementation journey, the
A Development launched two programmes on Managing
programme was launched at one of our international Stress and the Power of Mindfulness to all employees
Unit in Singapore. to support them to cope up with stress and anxiety.

 his year also marked a step-in disembarking learning

T Strides Learning and Development continues to drive
solution to Strides’ International locations, for all the learnings with a digital approach by enabling all
Fairmed Germany by launching Essentials of business modes of learning through the Learning Management
At Strides, we also give due credit to the employee’s acknowledge skill gaps, strengthen basic skills and
communication modules, Strides UK and UCL through System. Encouraging all learners to experience a mix
union that pursue the interests of its members, with enhance personal capabilities. The programme
the PACE programmes and at Singapore site with the of new age learning methods like video learning,
equal focus on the overall business expectations. modules are digitally enabled by converting them into
launch of Supervisory Development Program. eLearning, online articles, podcasts etc.
eLearning short burst modules of each approximately
Currently, we have a management-recognised for 1 hour to adapt to the changing need, improve the
The Plant Managers Academy b. Talent management
employee association, which covers approximately 20% scalability of the mass audience, self-paced, anytime,
The Plant Managers Academy (PMA) is a platform to At Strides, we place a lot of emphasis on growth through
of our employee membership. anywhere access. This brought out a new age quick
build core functional and leadership capabilities in continuous learning to help employees transition from
learning experience to all employees through mobile
Plant talent to enable them to deliver sustained strong individual contributors to team leaders, and on to
Strides Workforce Details – as at March 31, 2022 learning at the click of button with learning on
performance and grow as future leaders in Strides. The senior leadership positions within the organisation.
the go.
# Type of Resource utilised Number of Employees
journeys under this academy are immersive, action-
oriented and provide a toolkit which can be deployed  e look for leaders who lead with ideas, have the
W
1 Permanent Employees 2,647  raining is focused on Functional and Behavioural
T
by the plant managers to address the challenges and requisite knowledge, are passionate about what they
2 Permanent Women Employees 372 Competencies such as communication, innovative
aspirations set for their respective plants. do and excel in execution. All our talent management
3 Permanent employees with 0 thinking, collaboration, problem solving, negotiation,
programmes are directed towards building this
disabilities accountability for results, and many more.
The full journey is designed to run for 5 quarters, with capability, while also preparing employees to manage
4 Temporary/ Contractual 1,559 learning sessions that are simulated and planned organisational growth
employees  his curriculum focuses on the organisational values
T
every 3 months. The PMA is delivered through a mix
and the personal capability of the employee to enable
of in-person, online sessions, on-job projects and  o ensure building a resilient and efficient organisation
T
them with necessary skills to work efficiently in a
Continuous learning communities of practice. The interventions focus on in the dynamic markets, post COVID, we put significant
corporate work environment
With COVID-19 pandemic forcing us to rethink our modules around ‘Managing Self’, ‘Managing Teams’ rigor in identifying critical roles and ensuring robust
way of life, compelling to transition to remote working and ‘Impacting Business’. talent management for those roles.
 trides Values & Behaviours – Strides designed its
S
and adapting to new normal that brought all the
core organisational behaviours and L&D has been
planned learnings to an almost halt, we continued to Ignite – Manager Essentials Program  ur talent management strategy is derived based on
O
instrumental in driving the ICE Values and Behaviours
thrive by adapting to newer ways of digital learning W hile the organisation was heading in the right
 many factors mainly:
immersion programme for Leaders, Managers and
methodologies to keep the learning momentum going. direction by having robust execution plans, having
Employees across locations to bring awareness, relate a. Current talent pool
In our mission to adopt to digital transformation, all great talent, inspiring leaders and well-set processes,
to the business, and influence behaviour. Enabling
the F2F learning events were converted to virtually it was imperative to look at the missing track. Investing b. Department-wise and role-wise proof of concepts
Leaders to drive the change by being the role model
to short burst learning content and delivery style to in our Managers’ capability building became the key
for ICE and the behaviours themselves and initiate c. Future business plans and value-based analysis of
match the need. With employees returning to work, priority in capability roadmap of organisation. A well-
demonstration of these core Values and Behaviours roles
the L&D team came back with a dual offering of in- structured and thought-out design with a blended
in every work situation. The focus on embedding
person classroom trainings as well as virtual trainings learning approach consisting of mix of online learning d. Recommendations from leaders on developing
the Values & Behaviours encompassed big-format
for those who were still at virtual workplaces. modalities along with live facilitated sessions to drive their teams
engagement programmes for employees as well as
self and reflective learning among managers. This
trainings. L&D used the SEEK tool to run campaigns,
At Strides, we believe in creating continuous learning initiative was piloted among people managers at our  he organisation is committed to develop its talent
T
quizzes, competitions to build awareness under the
culture to upskill/reskill, enable our people’s future R&D centre (43 managers) With an outcome aiming through multiple programmes including Continuous
aegis of B.I.G Challenge. 1,800 employees participated
skills in response to a changing environment and new towards building engaged and high performing teams. Learning Program, Pathway Program and Future Leader
enthusiastically, and the programme rolled upto a
developments. This comprises of three tracks Foundation, Intermediate Program
grand finale with an awards distribution ceremony.
and Advanced with each track comprising of short burst
Some of our key programmes are listed below: engaging modules scheduled to implement during the  e strive to do the best to keep our employees happy
W
 upervisory Development Program – Specialised
S
a. Skill development upcoming year. and motivated through our rewards and recognition
curriculum designed and developed for Self-Managed
Strides Continuous Learning Program (CLP), is an system, which is one of the factors for the organisational
Teams at SEML unit to create awareness amongst
ongoing initiative designed to reinforce Strides values, success. Some of our recognition programmes include:

100 | Annual Report 2021-22 | 101

 Strides Pharma Science Limited

Statutory Reports
Strides Recognition programme Internal and external stakeholders In case of any non-compliance, the employee or any
We have mapped our internal and external stakeholders of the business associates can directly approach the
AWARD CATALOGUE based on our ‘shareholder and stakeholders Chairman of the Ethics and Compliance Committee.
communication’ strategy. The Committee ensures the confidentiality and
V&B Champion (Individual ​​Shooting Star (Individual ​Dream Team (Team Award) protects the complainant from being persecuted.
Award)​​ Award)​​​ ​​
Team that delivers the business
​ or Displaying ICE Values, Strides
F ​For Creating Business Impact​ impact by getting the WHAT & While the Code of Conduct covers employees of
Behaviours and Quality Culture HOW right!
the organisation, we have worked on a new Code of
Employees Conduct in line with the requirements of the prescribed
principle and International Labour Organisation (ILO),
 e periodically renew our HR strategies to enhance
W We periodically renew our HR strategies to enhance
Regulatory to extend it to our suppliers, contractors, and other
productivity and better engage with a diverse workforce productivity and better engage with a diverse workforce Community
Authroity stakeholders.
across geographies. We equip our employees with across geographies. We equip our employees with
opportunities to learn and apply the business concepts opportunities to learn and apply the business concepts
Stakeholder Complaints
in day-to-day practice, thus enriching the quality of in day-to-day practice, thus enriching the quality of
Our Code of Conduct discourages violation of human
delivery. delivery.
Stakeholders rights and provides a fair and transparent mechanism
for reporting any such violation. No complaints were
c) Self - managed teams Complaints relating to child labour, forced Suppliers & Customers received pertaining to human rights violation during
O ur facility for emerging markets in Chandapura, labour, involuntary labour, sexual harassment/ Vendors the reporting period.
Bangalore, has implemented the Self-Managed Teams discriminatory employment
(SMT) philosophy to build a high-performing culture, We believe that the success of a responsible organisation
Principle 6:
thereby creating empowered teams. rests on the foundation of ethics and respect for human
rights. We follow the best international practices, which Shareholders Investors Businesses should respect, protect and make efforts
 e have established a separate policy on ‘Performance
W ensure the freedom of association, prohibition of child to restore the environment
Management System’ that provides a framework labour, protection of indigenous rights and prohibition We believe as an organisation, it is our responsibility to
for managing performance by assessing individual of forced and compulsory labour. In FY22, we did ensure that all our business practices are carried out in
employee goals against stated /desired goals not receive any complaint relating to child labour, a way that causes minimal impact on the environment.
and objectives. Our framework on performance forced labour, involuntary labour, or discriminatory Our policy on ‘Environment, Health & Safety’ (EHS)
A detailed report on the CSR activities of the Company
management system is based on continuous employment. We received two complaints relating to provides us the necessary direction towards climate
forms part of the Annual Report of FY22.
improvement and focuses on goal/objective setting, sexual harassment, which were appropriately disposed change mitigation and adaptation efforts, as well as
performance assessment and reviews, feedback and off within the prescribed timeline. natural resource replenishment initiatives.
Principle 5:
personal development plan and pay for performance.
Principle 4: Businesses should respect and promote human We follow our policy on Environment, Health & Safety
 e strive to do the best to keep our employees happy
W rights which is applicable to all business operational facilities.
Businesses should respect the interests of, and be
and motivated through our rewards and recognition As a responsible organisation, the Company respects As part of the policy, we educate our stakeholders
responsive towards all stakeholders, especially those
system, which is one of the factors for the organisational human rights at the workplace and the endeavour is to (employees, contractors, sub-contractors, transporters,
who are disadvantaged, vulnerable and marginalised
success. Some of our recognition programmes include: adopt the best practices, which will ensure the freedom visitors) about the EHS policy and emergency
We are cognisant of the fact that the stakeholder
of association, prohibition of child labour, protection procedures.
engagement is a periodic process that enables
of indigenous rights and prohibition of forced and
companies to develop and implement strategies to
Strides Recognition Programme compulsory labour. We understand that global warming has relevance on
fulfill the stakeholder expectations and seek their
our business and the markets that we serve. We try to
long-term support. We recognise employees, our
The Company values the rights of the individuals and it address this issue through our Environment, Health
service partners (suppliers and dealers), customers,
Star Performer Star Performer is testified in our Code of Conduct for the Board, senior & Safety policy and have taken various initiatives
shareholders/investors, communities surrounding
of the month of the quarter management and employees. The Code of Conduct through its Environmental Management System. It
our operations and regulatory authorities as our
embraces a commitment to conduct our business in is in the process of initiating specific business level
key stakeholders. We engage with them through
the most ethical manner with due regard to business strategies to address global warming and climate
Best Team Best Team various channels, such as consultations with local
needs and stakeholder interests. change.
of the year of the quarter communities through village panchayats, supplier/
vendor meets, employee satisfaction surveys, investor
The elements of Convention on the Elimination of all We have taken efforts to reduce CO2 emissions for the
forums, etc. Though there is already a policy in place,
Forms of Discrimination against Women (CEDAW), last few years and net carbon neutralisation is being
Strides Learning & Development – FY22 we continuously strive for improving our policies to
an international treaty by the United Nations General monitored and improved year after year.
support those that are disadvantaged.
S. Number of Percentage of
Assembly, described as an international bill of rights
Category for women has been covered in our Code of Conduct. A We identify and assess all the potential environmental
No. Employees Employees
1 Employees provided with 1,536 59% Committee has been constituted by the management to risks as per the Environmental Management System
skill upgradation training consider and redress complaints for sexual harassment Standards ISO 14001:2015. We have developed
2 Employees received 1,426 63.83% under the POSH Act. ICC posters with details of site appropriate standard operating procedures to address
performance or career wise committee members has been displayed at all the key environmental risks.
development reviews locations.
Clean Development Mechanism
Any employee may contact their local HR single point We do not have any project related to Clean Development
of contact, write to whistleblower@strides.com and/or Mechanism.
log in to the Strides Portal to understand the redressal
mechanisms.

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 Strides Pharma Science Limited

Statutory Reports
Initiatives undertaken on clean technology, energy efficiency, renewable energy 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
Clean technology/ Recycling Energy efficiency Renewable energy in a responsible manner.
16,138 KL rainwater collected and Energy efficient LED lamps are used 12,000 Tonne of CO2 emissions reduction
recharged to improve the ground water to replace existing TFL/CFL/SVL to achieved by utilisation of 17 Mn kWh We have developed and implemented a robust pharmacovigilance system for handling and addressing complaints
table in and around the plant. conserve energy, almost all lighting from imported solar power generators received from any of our stakeholders.
fixtures in all Strides locations were renewable energy source.
21,060 KL of water recycled from steam already replaced with LED lamps and
Customer Complaints – FY22
condensate and reused for steam energy saving projected in previous
generation. years is being sustained.
Number of Number of Number of
1,00,903 KL of wastewater treated by 3,01,654 kWh renewable energy (Solar) S. % of Complaints/
Category Complaints Complaints complaints
WWTP and reused for garden/ lawn inside generated inhouse No. Cases Pending
Received Closed pending
the plant premises across all sites in India.
1 Customer Complaints 328 290 38 11.58
2 Customer Cases (legally filed) 00 00 00 00
Compliance to CPCB/SPCB norms in relation to We actively support the policy advocacy campaigns
emission/waste generated by the Company which the above organisations take up from time to
We have a dedicated pharmacovigilance cell to resolve any customer concerns or queries related to our products.
Emissions are monitored by Pollution Control Board time.
We have not received any complaints on unfair trade practices, irresponsible advertising and anti-competitive
(PCB) authorised laboratories and periodical emission
behavior.
test reports are submitted to statutory authorities. The Principle 8:
generated stack emissions and ambient air quality are
Businesses should support inclusive growth and Display of product information on the product label
well within the limits as defined by Central Pollution
equitable development The customer is provided with the instructions on dosage and basic knowledge about the science behind
Control Board/ State Pollution Control Board (CPCB/
At Strides, we always strive to secure the interests of the various ingredients added in different products. We also provide information on the composition of each
SPCB).
all the stakeholders along with the healthy growth of ingredient in volume and percentage in the product. Storage Instructions and cautionary notes are also provided
the Company. Community development programmes wherever required.
All hazardous solid wastes are stored at designated
are integral to our sustainability strategy. We have
places and disposed to approved recycler/Treatment
always contributed towards CSR activities, even before For and on behalf of the Board of Directors
Storage Disposal Facility (TSDF), as per the requirements
it was mandated by the law. We have initiated many
of hazardous and other waste (Management and
programmes for the underprivileged, desiring and
Transboundary Movement) Rules, 2016. Date: May 24, 2022 Arun Kumar Christoph Funke
deserving in and around our area of operation.
Place: Bengaluru Executive Chairperson & Managing Director Chief Operations Officer
Show cause/legal notices received from CPCB/SPCB
The Company has developed and implemented the CSR
During the year under review, the Company did not
policy which encompasses our philosophy towards
receive any notice from CPCB/ SPCB.
CSR and lays down guidelines and mechanisms for
undertaking socially advantageous programmes for
Principle 7:
welfare and sustainable development of the community
Businesses when engaged in influencing public and at large.
regulatory policy, should do so in a responsible
manner Our CSR initiatives help address socioeconomic
We strive to create a positive impact and participate challenges in the realms of health, education,
in making sound policy decisions to facilitate change employability and disaster management.
in public policies that are beneficial to the sector. We
believe a sustainable business growth can be achieved A detailed report on CSR initiatives and the amount
when worked together with the regulatory authorities, spent during the period under review forms part of the
government and trading bodies. Board’s Report as Annexure 4.

We are a part of various industry bodies and Principle 9:

associations that inf luence public and regulatory
Businesses should engage with and provide value
bodies in a responsible manner, which include:
to their customers and consumers in a responsible
manner
a. Pharmaceuticals Export Promotion Council of
We give utmost priority to provide effective, superior
India
quality and economically affordable products to our
b. Bombay Chambers of Commerce customers. We work towards safe management of our
products throughout its lifecycle and is committed
c. Bangalore Chamber of Industry and Commerce
to reducing risks. This is ensured by making factual
d. Export Promotion Council for EOUs & SEZs disclosure of information during labelling and branding
of our products. As a company, we are strongly
e. Indian Drug Manufacturers’ Association
connected with our customers. By understanding
f. Karnataka Drugs & Pharmaceutical Manufacturers their needs, expectations and priorities, we are better
Association equipped to develop products that offer great value.
g. Federation of Karnataka Chambers of Commerce
We follow a standard operating procedure on providing
and Industry
the required factual information about our products

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 Strides Pharma Science Limited

Financial Statements
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 section of our report. We are independent of the Group, The key audit matter How the matter was addressed in our audit
its associates and joint venture in accordance with the As at 31 March 2022, the Group has recorded a loss amounting Our audit procedures to assess the going concern assumption
Strides Pharma Science Limited
ethical requirements that are relevant to our audit of to H 4,742.50 million and has negative operating cash flows and whether a material uncertainty exists related to events
Report on the Audit of the Consolidated Financial the consolidated financial statements in terms of the 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
Statements Code of Ethics issued by the Institute of Chartered 2022. ability to continue as a going concern included the following
Accountants of India and the relevant provisions audit procedures to obtain sufficient appropriate audit
Note 2 to the consolidated financial statements explain that
Opinion of the Act, and we have fulfilled our other ethical evidence:
Management has concluded that the going concern basis is
responsibilities in accordance with these requirements. appropriate in preparing the consolidated financial statements • Gaining an understanding and assessing the design,
We have audited the consolidated financial statements of the Group. The Group evaluated its ability to continue as implementation and operating effectiveness of Group’s key
We believe that the audit evidence obtained by us along
of Strides Pharma Science Limited (hereinafter referred a going concern based upon an assessment of the Group’s internal controls over preparation of cash flow forecasts to
with the consideration of reports of the other auditors
to as the “Holding Company”) and its subsidiaries cash position, assessment of the exposure with respect to assess its liquidity;
referred to in paragraph (a) of the “Other Matters”
(Holding Company and its subsidiaries together referred the financial guarantees provided by the Parent Company
section below, is sufficient and appropriate to provide to an associate company, future cash flow forecasts, its debt • Compared the forecasted statement of profit and loss and
to as “the Group”), its associates and its joint venture,
a basis for our opinion on the consolidated financial repayment obligations and other commitments and its cash flows with the Group’s business plan approved by the
which comprise the consolidated balance sheet as
statements. availability of financing facilities, after considering breaches board of directors;
at 31 March 2022, and the consolidated statement
of its existing debt covenants and the related subsequent
of profit and loss (including other comprehensive
income), consolidated statement of changes in equity
Emphasis of Matter 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 histor ical information, current
and consolidated statement of cash flows for the year We draw attention to Note 9(i) to the consolidated significant judgement, particularly in forecasting the Group’s performance, future plans, and market and other external
then ended, and notes to the consolidated financial financial statements which states that the ability of future revenues, profitability and cash flows. available information;
statements, including a summary of significant Stelis Biopharma Limited (‘the Associate’) to continue Based on their assessment, the Group concluded that there are
accounting policies and other explanatory information as a going concern is dependent on the mitigation • Performing sensitivity analysis on the forecasted statement
no material uncertainties related to events or conditions which,
(hereinafter referred to as “the consolidated financial factors detailed in the said note which could have of profit and loss and cash flows by considering plausible
individually or collectively, may cast significant doubt on the
statements”). a consequential impact on the carrying amount of Group’s ability to continue as a going concern. changes to the key assumptions adopted by the Company;
investment of H 4,609.50 million in the Associate as at 31 Considering the significance of the area to the overall financial • Performing a retrospective review to assess the
In our opinion and to the best of our information and March 2022. Further, the auditors of the Associate have, statements this was significant for our audit. reasonableness of Group’s past projections by comparing
according to the explanations given to us, and based without modifying their opinion, reported a Material historical forecasts to actual results;
on the consideration of reports of other auditors on Uncertainty Related to Going Concern vide their report
separate financial information of such subsidiaries dated 24 May 2022 on the financial information of the • Assessing the availability of banking and other financing
and associates as were audited by the other auditors, Associate for the year ended 31 March 2022. facilities by inspecting underlying documentation;
the aforesaid consolidated financial statements give • Discussion with the parent and component Management
the information required by the Companies Act, 2013 Our opinion is not modified in respect of this matter. with respect to the going concern assessment of the
(“Act”) in the manner so required and give a true and associate and confirming the same with the Associate’s
fair view in conformity with the accounting principles Key Audit Matters report on the financial information received from the
generally accepted in India, of the consolidated state auditor of the Associate;
Key audit matters are those matters that, in our
of affairs of the Group, its associates and joint venture
professional judgment and based on the consideration • Evaluating management’s judgment of invocation of
as at 31 March 2022, of its consolidated loss and other
of reports of other auditors on separate financial guarantees provided to the lenders of the Associate;
comprehensive income, consolidated changes in equity
statements of components audited by them, were
and consolidated cash flows for the year then ended. • Assessing the impact of any existing covenants and the
of most significance in our audit of the consolidated
financial statements of the current period. These related waivers and other restrictive terms therein which
Basis for Opinion matters were addressed in the context of our audit of may impact Group’s ability to raise further debts;
We conducted our audit in accordance with the the consolidated financial statements as a whole, and • Assessing the adequacy of the disclosures related to
Standards on Auditing (SAs) specified under Section in forming our opinion thereon, and we do not provide application of the going concern assumption.
143(10) of the Act. Our responsibilities under those SAs a separate opinion on these matters.
are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements

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 Strides Pharma Science Limited

Financial Statements
Key Audit Matters (continued) Key Audit Matters (continued)
Taxation Chargebacks, rebates, returns, cash discount, other adjustments and related accruals (“gross to net
sales adjustments”)
[Refer Significant Accounting Policies and notes 12, 13, 27 and 36 to the consolidated financial statements]
[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 In view of the significance of the matter, following audit The key audit matter How the matter was addressed in our audit
the world and is subject to complexities with respect to various procedures were applied, among others to obtain sufficient A significant portion of Group’s sales are made to customers in In view of the significance of the matter, following audit
tax positions on matters including such as: the United States of America (‘USA’) under certain commercial procedures were applied, among others to obtain sufficient
audit evidence:
- availability of tax incentives / exemptions. and governmental reimbursement schemes and mandated audit evidence:
• We tested the design of internal financial controls and contracts. These arrangements provide for significant amount • We tested the design and operating effectiveness of the
- deferred taxes on business combinations
operating effectiveness of the relevant key controls in of chargebacks, rebates, cash discount, medicaid and other relevant key controls in respect of ‘gross-to-net’ sales
- cross border transfer pricing arrangements etc. related accruals (collectively known as ‘gross-to-net’ sales
respect of taxation at a Group level; adjustments.
The Company is subjected to various domestic and foreign tax adjustments). The Group also provides a general right of return
to its customers for these products. These arrangements result • 
Obtained the computation for year-end accruals and
regulations with respect to taxability of income received in • We obtained an understanding and analysed key
in deductions to gross sales and give rise to obligations for tested the assumptions used by reference to the Group’s
India including repatriation of any profits as dividends. correspondences with the tax authorities to identify any
the Group to provide customers with allowances, which for stated commercial policies, applicable contracts, stock
Assessing the applicability of tax and accounting of such additional uncertain tax positions; lying at wholesalers and historical product returns and
repatriation may involve complexities with respect to various unsettled amounts are recognised as an accrual.
other claims / allowance.
tax positions on availability of tax incentives / exemptions • We analysed the Group’s judgment regarding the eventual This was an area of focus in our audit because arrangements • We performed test of details on the actual claims processed
resulting in possible tax litigations/assessments. resolution of matters with various tax authorities in certain are of significant value, inherently complex and computation for wholesalers during the year towards chargebacks,
Judgment is required in assessing the range of possible key jurisdictions. In this regard, we understood how the of accrual requires significant judgement and estimation by rebates, sales return and other allowances etc. to determine
outcomes for some of these tax matters. These judgments Group has considered past experience, where available, with the Group. This judgement is particularly complex in USA in the accuracy of ‘gross-to-net’ sales adjustments.
could change over time as each of the matter progresses the tax authorities in the respective jurisdictions; which competitive pricing pressure and multi-layered product
discounting are increasingly prevalent. These accruals (other • Tested the historical data with respect to claims processed
depending on experience on actual assessment proceedings by
• We used subject matter experts, to assess the accounting than provision for sales return) have been disclosed as a for sales return, chargebacks, rebates, Medicaid and other
tax authorities and other judicial precedents.
treatment done for key jurisdictions for current and reduction to trade receivables as of 31 March 2022. allowances.
The Group makes an assessment to determine the outcome of
deferred taxes. • Performed analytical procedures on ‘gross-to-net’ sales
these uncertain tax positions and decides to make an accrual or
adjustments recognised during the year to identify any
consider it to be a possible contingent liability.
• We also considered external legal opinions and consultations unusual variances / relationships, if any.
Where the amount of tax liabilities are uncertain, the Group made by the Group for key uncertain tax positions during • For each of the estimated accruals, tested the mathematical
recognizes accruals which reflect its best estimate of the
current and past period. accuracy of the computation and verified the underlying
outcome based on the facts known in the relevant jurisdiction.
data used for completeness and accuracy.
Given the complexity of tax accounting for multiple • We have verified the income tax rate reconciliation for key
jurisdictions including judgment involved in determining jurisdictions;
impact of uncertain tax positions and impact of deferred taxes Impairment testing of investment in associates
on business combination, we assessed this to be an area of • We also obtained the Group’s computation for deferred taxes [Refer Significant Accounting Policies and notes 9(i) to the consolidated financial statements]
focus for our audit. for multiple entities in the Group and assessed its compliance
with the recognition and measurement principles under the
The key audit matter How the matter was addressed in our audit
accounting standards.
The Group has investments in associates of H 5,273.53 million In view of the significance of the matter, following audit
as at 31 March 2022. procedures were applied, among others to obtain sufficient
Impairment testing of goodwill and intangible assets audit evidence:
One of the associates is still carrying out significant product
[Refer Significant Accounting Policies and notes 7 and 8 to the consolidated financial statements] development currently with insignificant revenues and •  Tested the design and operating effectiveness of the
accordingly, the Group continues to record its share in the relevant key controls around Group’s assessment of
losses of the associates. Further, another associate continues to impairment of investment in associates.
The key audit matter How the matter was addressed in our audit
incur losses which requires the Group to assess for impairment
The Group has goodwill and intangible assets of H 4,859.07 In view of the significance of the matter, following audit • Performed a retrospective analysis to assess the
given the minimum assured return to the other shareholders
million and H 6,249.82 million respectively as at 31 March 2022. procedures were applied, among others to obtain sufficient reasonableness of Group’s projections by comparing
in the associate. The recoverable value of these associates for
These intangible assets predominantly arise on account of past audit evidence: historical forecast to actual results.
impairment testing was determined using discounted cash flow
business combinations and are subjected to impairment test as • Tested the design and operating effectiveness of the Group’s approach which involves significant judgement and estimates •  Tested reasonability of projections used by the Group
part of Cash Generating Units (CGU’s) which include goodwill. controls around the impairment testing of carrying value of including assessing the impact of COVID-19 on projections and relating to the sales growth, operating costs, cashflow
The annual impairment testing of goodwill and intangible assets goodwill / intangible assets; estimates and other recent financing transactions. forecasts.
within such CGU’s was considered to be a key audit matter •  Engaged our valuation specialists to assist in testing the Given the recurring losses incurred by the associates, •  Engaged our valuation specialists to assist in testing
due to the complexity of the accounting requirements and the reasonableness of the valuation by evaluating the assumptions impairment testing was significant to our audit, because the reasonableness of the valuation by evaluating the
significant judgement involved to estimate the recoverable and methodologies used by the Group, in particular for of the financial quantum of the assets as well as the critical assumptions and methodologies used by the Company, in
amount. The recoverable amount of the CGUs (includes weighted average cost of capital, terminal growth rate, etc. for judgements, estimates and assumptions involved. particular for weighted average cost of capital, terminal
goodwill and intangible assets among other items), which is the the relevant markets in which the CGUs operate; growth rate, etc.
value in use has been derived from discounted forecast cash We draw attention to Note 9(i) to the consolidated financial
• Evaluating the assumptions applied to key inputs such as
flow models. These models use several assumptions, including statements which states that the ability of Stelis Biopharma • 
Discuss with component auditors of associates on
sales growth, operating costs, and terminal growth rates;
estimates of future sales growth, operating costs, terminal Limited (‘the Associate’) to continue as a going concern is their testing of impairment of non-current assets in the
growth rates, weighted‑average cost of capital and consider the • Tested whether the Company’s analysis about the sensitivity dependent on the mitigation factors detailed in the said note associate and conclusions thereof.
impact of COVID-19 on these assumptions, if any. on the outcome of impairment to possible changes in key which could have a consequential impact on the carrying
assumptions reflects the risks inherent in the valuation, amount of investment of H 4,609.50 million in the Associate • Tested recent financing transactions in these companies
including possible impact of COVID-19 pandemic, if any; as at 31 March 2022. Further, the auditors of the Associate with third parties to determine the fair value of certain
have, without modifying their opinion, reported a Material investments.
• Performing a retrospective analysis of the accuracy of the
Group’s past projections by comparing historical forecast to Uncertainty Related to Going Concern vide their report dated • 
Tested whether the Company’s analysis about the
actual results; 24 May 2022 on the financial information of the Associate for sensitivity on the outcome of impairment to possible
We also assessed the Group’s disclosures about the sensitivity of the year ended 31 March 2022. changes in key assumptions reflects the risks inherent
the outcome of the impairment assessment to changes in key in the valuation, including possible impact of COVID-19
assumptions like terminal growth rate, weighted average cost of pandemic, if any.
capital, etc. reflect the risks inherent in the valuation of goodwill.

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 Strides Pharma Science Limited

Financial Statements
Key Audit Matters (continued) Key Audit Matters (continued)
Impairment testing (as reported by component auditor for one of the associate) 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] [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 key audit matter How the matter was addressed in our audit
The management of Stelis (an associate of the Group) has The principal audit procedures performed by the Component The management of Stelis (an associate of the Group) has The principal audit procedures performed by the Component
assessed the annual impairment of CGU (which includes auditor, among other procedures included: assessed the annual impairment of CGU (which includes auditor, among other procedures included:
intangible assets under development and assets relating to vaccine facility – Unit 3) as at March 31, 2022. The carrying value
• Obtained an understanding of the Stelis Management’s • Obtained an understanding of the Stelis Management’s
CDMO unit) as at March 31, 2022. The carrying value of the CGU of the CGU of Stelis amounts to H 6,170 million as of that date.
process for impairment assessment of the carrying value process for impairment assessment of the carrying value
of Stelis amounts to H 11,039 million as of that date.
of assets of the CGU; The evaluation requires a comparison of the estimated of assets of the CGU;
The carrying value of the CGU is tested by the management of recoverable value of the CGU to the carrying value of the assets
• Evaluated the design and implementation of the relevant • Evaluated the design and implementation of the relevant
Stelis atleast annually for impairment, or more frequently if in the CGU.
controls and carried out testing of the Stelis management’s controls and carried out testing of the Stelis management’s
the events or changes in circumstances indicate that the asset
control around the impairment assessment; It is considered to be a key focus area by the component control around the impairment assessment;
might be impaired. The evaluation requires a comparison of the
auditor because of the significance of the balance and the
estimated recoverable value of the CGU to the carrying value of • Inquired with Stelis management to understand the factors • Inquired with Stelis management to understand the factors
significant estimates, judgements and assumptions involved in
the assets in the CGU. considered when performing the impairment assessment considered when performing the impairment assessment
impairment assessment by the management of Stelis, such as:
including the rationale for the events and circumstances including the rationale for the events and circumstances
It is considered to be a key focus area by the component
considered based on strategic plans of the entity (business • generation of revenues in due course from the vaccine plant considered based on strategic plans of the entity (business
auditor because of the significance of the balance and the
revenue projections), consideration of economic and and contract manufacturing, revenue projections), consideration of economic and
significant estimates, judgements and assumptions involved in
industry matters and the factors considered regarding the industry matters and the factors considered regarding the
impairment assessment by the management of Stelis, such as: •  plans to convert the existing vaccine plant for CDMO
overall value in use conclusion; overall value in use conclusion;
purpose,
• Obtaining adequate financing to fulfil Stelis’ development
• Evaluated the key assumptions considered in Stelis • Evaluated the key assumptions considered in Stelis
and commercial activities, • ability to enforce the existing contract with customer and
management’s estimates of future cash flows; management’s estimates of future cash flows;
liquidate inventories as on balance sheet date prior to its
•  the risks associated with development and obtaining
• Involved valuation specialists to evaluate the discount rate shelf life, • Involved valuation specialists to evaluate the discount rate
regulatory approvals of Stelis products,
used in the calculations; and terminal growth rate used in the calculations;
•  probabilities applied to the revenues which also factors
•  generation of revenues in due course from the product
• Compared the historical cash flows (including for current Stelis management’s best estimate of possible delay in •  Performed sensitivity analysis on the key assumptions
portfolio and contract manufacturing,
year) against past projections of Stelis management for the regulatory approvals. within the forecast cash flows and focused the attention
• attainment of profitable operations, same periods and gained understanding of the rationale on those assumptions that were considered most sensitive
• attainment of profitable operations,
for the changes; to the changes; such as revenue growth during the forecast
• discount rate period, the discount rate applied to the future cash flows
• discount rate
• Performed sensitivity analysis on the key assumptions and terminal growth rate;
•  probabilities applied to the revenues which also factors
within the forecast cash flows and focused the attention
Stelis management’s best estimate of possible delay in • 
Ascertained the extent to which a change in these
on those assumptions that were considered most sensitive
product development cycle and regulatory approvals. assumptions, both individually or in aggregate, would
to the changes; such as revenue growth during the forecast
period, the discount rate applied to the future cash flows result in impairment, and considered the likelihood of
and terminal growth rate; such events occurring;
• 
Ascertained the extent to which a change in these • Tested the arithmetical accuracy of the computations;
assumptions, both individually or in aggregate, would
• Assessed the accounting principles applied by Stelis and
result in impairment, and considered the likelihood of
adequacy of disclosures in accordance with the Indian
such events occurring;
Accounting Standards, applicable regulatory financial
• Tested the arithmetical accuracy of the computations; reporting framework and other accounting principles
generally accepted in India.
• 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.

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 Strides Pharma Science Limited

Financial Statements
Information Other than the Consolidated each company and for preventing and detecting frauds from error, as fraud may involve collusion, forgery, audit opinion. Our responsibilities in this regard
Financial Statements and Auditor’s Report and other irregularities; the selection and application intentional omissions, misrepresentations, or the are further described in paragraph (a) of the
Thereon of appropriate accounting policies; making judgments override of internal control. section titled “Other Matters” in this audit report.
and estimates that are reasonable and prudent; and the
The Holding Company’s Management and Board of
design, implementation and maintenance of adequate • Obtain an understanding of internal control relevant We communicate with those charged with governance
Directors are responsible for the other information. The
internal financial controls, that were operating to the audit in order to design audit procedures of the Holding Company and such other entities
other information comprises of Management Reports
effectively for ensuring accuracy and completeness of that are appropriate in the circumstances. Under included in the consolidated financial statements of
such as Board’s Report, Management Discussion and
the accounting records, relevant to the preparation and Section 143(3)(i) of the Act, we are also responsible which we are the independent auditors regarding,
Analysis and Corporate Governance Report, but does
presentation of the consolidated financial statements for expressing our opinion on whether the among other matters, the planned scope and timing
not include the consolidated financial statements and
that give a true and fair view and are free from material company has adequate internal financial controls of the audit and significant audit findings, including
our Auditor’s report thereon which we obtained prior
misstatement, whether due to fraud or error, which with reference to financial statements in place and any significant deficiencies in internal control that we
to the date of this Auditor’s Report, which are expected
have been used for the purpose of preparation of the the operating effectiveness of such controls. identify during our audit.
to be made available to us after that date.
consolidated financial statements by the Management
and Board of Directors of the Holding Company, as • 
Evaluate the appropriateness of accounting We also provide those charged with governance with
Our opinion on the consolidated financial statements
aforesaid. policies used and the reasonableness of accounting a statement that we have complied with relevant
does not cover the other information and we do not
estimates and related disclosures made by the ethical requirements regarding independence, and to
express any form of assurance conclusion thereon.
In preparing the consolidated financial statements, the Management and Board of Directors. communicate with them all relationships and other
respective Management and Board of Directors of the matters that may reasonably be thought to bear on
In connection with our audit of the consolidated
companies included in the Group and of its associates • 
Conclude on the appropr iateness of the our independence, and where applicable, related
financial statements, our responsibility is to read the
and joint venture are responsible for assessing Management and Board of Directors use of the safeguards.
other information and, in doing so, consider whether
the ability of each company to continue as a going going concern basis of accounting in preparation
the other information is materially inconsistent with
concern, disclosing, as applicable, matters related to of consolidated financial statements and, based From the matters communicated with those charged
the consolidated financial statements or our knowledge
going concern and using the going concern basis of on the audit evidence obtained, whether a with governance, we determine those matters that were
obtained in the audit or otherwise appears to be
accounting unless the respective Board of Directors material uncertainty exists related to events or of most significance in the audit of the consolidated
materially misstated.
either intends to liquidate the Company or to cease conditions that may cast significant doubt on the financial statements of the current period and are
operations, or has no realistic alternative but to do so. appropriateness of this assumption. If we conclude therefore the key audit matters. We describe these
If, based on the work we have performed, on the
that a material uncertainty exists, we are required matters in our auditor’s report unless law or regulation
other information that we obtained prior to the date
The respective Board of Directors of the companies to draw attention in our auditor’s report to the precludes public disclosure about the matter or when,
of this Auditor’s Report, we conclude that there is a
included in the Group and of its associates and joint related disclosures in the consolidated financial in extremely rare circumstances, we determine that
material misstatement of this other information, we
venture are responsible for overseeing the financial statements or, if such disclosures are inadequate, a matter should not be communicated in our report
are required to report that fact. We have nothing to
reporting process of each company. to modify our opinion. Our conclusions are based because the adverse consequences of doing so would
report in this regard.
on the audit evidence obtained up to the date of reasonably be expected to outweigh the public interest
When we read the other sections of Annual Report
Auditor’s Responsibilities for the Audit of our auditor’s report. However, future events or benefits of such communication.
(other than those mentioned above), if we conclude
the Consolidated Financial Statements conditions may cause the Group and its associates
that there is a material misstatement therein, we are
and joint venture to cease to continue as a going Other Matters
Our objectives are to obtain reasonable assurance
concern.
required to communicate the matter to those charged about whether the consolidated financial statements (a) We did not audit the financial information of 5
with governance and take necessary actions, as as a whole are free from material misstatement, subsidiaries, whose financial information reflect total
• Evaluate the overall presentation, structure and
applicable under the applicable laws and regulations. whether due to fraud or error, and to issue an auditor’s assets (before consolidation adjustments) of H 40,719
content of the consolidated financial statements,
report that includes our opinion. Reasonable assurance million as at 31 March 2022, total revenues (before
including the disclosures, and whether the
Management’s and Board of Directors’ is a high level of assurance, but is not a guarantee
consolidated financial statements represent the
consolidation adjustments) of H 18,734 million and
Responsibilities for the Consolidated that an audit conducted in accordance with SAs will
underlying transactions and events in a manner
net cash inflows (before consolidation adjustments)
Financial Statements always detect a material misstatement when it exists.
that achieves fair presentation.
amounting to H 513 million for the year ended on
Misstatements can arise from fraud or error and are that date, as considered in the consolidated financial
The Holding Company’s Management and Board of
considered material if, individually or in the aggregate, statements. The consolidated financial statements
Directors are responsible for the preparation and • Obtain sufficient appropriate audit evidence
they could reasonably be expected to influence the also include the Group’s share of net loss (and other
presentation of these consolidated financial statements regarding the financial information of such
economic decisions of users taken on the basis of these comprehensive loss) of H 1,011 million for the year
in term of the requirements of the Act that give a entities or business activities within the Group
consolidated financial statements. ended 31 March 2022, in respect of 3 associates, whose
true and fair view of the consolidated state of affairs, and its associates and joint venture to express an
financial information have not been audited by us.
consolidated profit/ loss and other comprehensive opinion on the consolidated financial statements.
As part of an audit in accordance with SAs, we exercise These financial information have been audited by other
income, consolidated statement of changes in equity We are responsible for the direction, supervision
professional judgment and maintain professional auditors whose reports have been furnished to us by
and consolidated cash flows of the Group including and performance of the audit of the financial
skepticism throughout the audit. We also: the Management and our opinion on the consolidated
its associates and joint venture in accordance with information of such entities included in the
financial statements, in so far as it relates to the
the accounting principles generally accepted in consolidated financial statements of which we are
• 
Identify and assess the risks of material amounts and disclosures included in respect of these
India, including the Indian Accounting Standards the independent auditors. For the other entities
misstatement of the consolidated financial subsidiaries and associates, and our report in terms of
(Ind AS) specified under Section 133 of the Act. The included in the consolidated financial statements,
statements, whether due to fraud or error, design sub-section (3) of Section 143 of the Act, in so far as it
respective Management and Board of Directors of the which have been audited by other auditors, such
and perform audit procedures responsive to those relates to the aforesaid subsidiaries and associates is
companies included in the Group and of its associates other auditors remain responsible for the direction,
risks, and obtain audit evidence that is sufficient based solely on the reports of the other auditors.
and joint venture are responsible for maintenance of supervision and performance of the audits carried
and appropriate to provide a basis for our opinion.
adequate accounting records in accordance with the out by them. We remain solely responsible for our
The risk of not detecting a material misstatement
provisions of the Act for safeguarding the assets of
resulting from fraud is higher than for one resulting

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 Strides Pharma Science Limited

Financial Statements
(b) The financial information of 34 subsidiaries, a) We have sought and obtained all the B. 
With respect to the other matters to be • 
directly or indirectly lend
whose financial information reflect total assets (before information and explanations which to included in the Auditor’s Report in accordance or invest in other persons
consolidation adjustments) of H 32,291 million as at the best of our knowledge and belief were with Rule 11 of the Companies (Audit and or entities identified in any
31 March 2022, total revenues (before consolidation necessary for the purposes of our audit Auditor’s) Rules, 2014, in our opinion and to manner whatsoever (“Ultimate
adjustments) of H 3,601 million and net cash inflows of the aforesaid consolidated financial the best of our information and according to Beneficiaries”) by or on behalf
(before consolidation adjustments) amounting to H 87 statements. the explanations given to us and based on of t he Holding Company,
million for the year ended on that date, as considered the consideration of the reports of the other it s subsid iar y compan ies
in the consolidated financial statements, have not b) In our opinion, proper books of account auditors on separate financial information of o r a s s o c i at e c o mp a n i e s
been audited either by us or by other auditors. The as required by law relating to preparation the subsidiaries and associates, as noted in incorporated in India; or
consolidated financial statements also include the of the aforesaid consolidated financial the “Other Matters” paragraph:
Group’s share of net loss (and other comprehensive statements have been kept so far as it • 
provide any guarantee, security
loss) of H 97 million for the year ended 31 March 2022, appears from our examination of those a) The consolidated financial statements or the like to or on behalf of the
as considered in the consolidated financial statements, books and the reports of the other disclose the impact of pending litigations Ultimate Beneficiaries.
in respect of 7 associates and a joint venture, whose auditors. as at 31 March 2022 on the consolidated
financial information have not been audited by us or by financial position of the Group, its (ii) The management has represented,
other auditors. These unaudited financial information c) 
The consolidated balance sheet, the associates and joint venture. Refer Note 42 that, to the best of its knowledge and
have been furnished to us by the Management and consolidated statement of profit and loss to the consolidated financial statements. belief, no funds have been received by
our opinion on the consolidated financial statements, (including other comprehensive income), the Holding Company, its subsidiary
in so far as it relates to the amounts and disclosures the consolidated statement of changes in b) The Group, its associates and joint venture companies or associate companies
included in respect of these subsidiaries, joint venture equity and the consolidated statement of did not have any material foreseeable incorporated in India from any
and associates, and our report in terms of sub-sections cash flows dealt with by this Report are losses on long-term contracts including persons or entities, including foreign
(3) of Section 143 of the Act in so far as it relates to the in agreement with the relevant books of derivative contracts during the year entities (“Funding Parties”), with the
aforesaid subsidiaries, joint venture and associates, is account maintained for the purpose of ended 31 March 2022. Refer Note 56 to the understanding, whether recorded
based solely on such unaudited financial information. preparation of the consolidated financial consolidated financial statements. in writing or otherwise, that the
In our opinion and according to the information and statements. Holding Company, its subsidiary
explanations given to us by the Management, these c) There has been no delay in transferring companies or associate companies
financial information are not material to the Group. d) In our opinion, the aforesaid consolidated amounts to the Investor Education and incorporated in India shall:
financial statements comply with the Ind Protection Fund by the Holding Company
Our opinion on the consolidated financial statements, AS specified under Section 133 of the Act. during the year ended 31 March 2022. • 
directly or indirectly, lend
and our report on Other Legal and Regulatory Further there were no amounts which or invest in other persons
Requirements below, is not modified in respect of the e) On the basis of the written representations were required to be transferred, to the or entities identified in any
above matters with respect to our reliance on the work received from the directors of the Holding Investor Education and Protection Fund by manner whatsoever (“Ultimate
done and the reports of other auditors and the financial Company, its subsidiary companies the subsidiary companies and associate Beneficiaries”) by or on behalf of
information certified by the Management. and associate companies incorporated companies incorporated in India during the Funding Parties; or
in India as on 31 March 2022 taken on the year ended 31 March 2022.
Report on Other Legal and Regulatory record by the Board of Directors of the • 
provide any guarantee, security
Requirements respective companies and the reports of d) (i) The management has represented or the like from or on behalf of
the statutory auditors of its subsidiary that, to the best of its knowledge and the Ultimate Beneficiaries.
1. As required by the Companies (Auditor’s Report)
companies and associate companies belief, no funds have been advanced
Order, 2020 (“the Order”) issued by the Central
incorporated in India, none of the or loaned or invested (either from (iii) 
B ased on such audit procedures
Government of India in terms of Section 143 (11)
directors of the Group companies and borrowed funds or share premium or as considered reasonable and
of the Act, we give in the “Annexure A” a statement
its associate companies incorporated in any other sources or kind of funds) by appropriate in the circumstances,
on the matters specified in paragraphs 3 and 4 of
India is disqualified as on 31 March 2022 the Holding Company, its subsidiary nothing has come to our notice that
the Order, to the extent applicable.
from being appointed as a director in companies or associate companies has caused us to believe that the
terms of Section 164(2) of the Act. incorporated in India to or in any representations under sub-clause
2 (A) 
As required by Section 143(3) of the Act,
other persons or entities, including (d) (i) and (d) (ii) contain any material
based on our audit and on the consideration
f) 
With respect to the adequacy of the foreign entities (“Intermediaries”), mis-statement.
of reports of the other auditors on separate
internal financial controls with reference with the understanding, whether
financial information of such subsidiaries and
to financial statements of the Holding recorded in writing or otherwise,
associates as were audited by other auditors,
Company, its subsidiary companies and that the Intermediary shall:
as noted in the “Other Matters” paragraph, we
associate companies incorporated in
report, to the extent applicable, that:
India and the operating effectiveness of
such controls, refer to our separate Report
in “Annexure B”.

114 | Annual Report 2021-22 | 115

 Strides Pharma Science Limited

Financial Statements
e) The dividend declared or paid during year by the Holding Company, its subsidiary Annexure A to the Independent Auditor’s Report on Standalone Financial Statements
the year by the Holding Company is in companies and associate companies to its
compliance with Section 123 of the Act. directors is in accordance with the provisions
The subsidiary companies, associate of Section 197 of the Act. The remuneration
companies and joint venture companies paid to any director by the Holding Company, its
incorporated in India have neither subsidiary companies and associate companies With reference to the Annexure A referred to in the Independent Auditor’s Report to the members of the Holding
declared nor paid any dividend during is not in excess of the limit laid down under Company on the consolidated financial statements for the year ended 31 March 2022, we report the following:
the year. Section 197 of the Act. The Ministry of Corporate
Affairs has not prescribed other details under (xxi) In our opinion and according to the information and explanations given to us, following companies
C. With respect to the matter to be included in Section 197(16) of the Act which are required to incorporated in India and included in the consolidated financial statements, have unfavorable remarks,
the Auditor’s Report under Section 197(16) of be commented upon by us. qualifications or adverse remarks given by the respective auditors in their reports under the Companies
the Act: (Auditor’s Report) Order, 2020 (CARO)
for B S R & Co. LLP
We refer to Note 11(ii) of the consolidated Sr.
Holding Company / Clause number of the
Name CIN Subsidiary / Associate / Joint CARO report which is
financial statements which more fully explains Chartered Accountants no.
venture qualified or adverse
the decision of the Board of Directors to Firm’s registration number: 101248W/W-100022 1 Vivimed Life Science Private U24304MH2017PTC348859 Subsidiary (xvii)
recover the excess remuneration paid to the
Limited
Company’s erstwhile Managing Director and
2 Stelis Biopharma Limited U74140KA2007PLC043095 Associate (iii)(c), (xvii), (xix)
Chief Executive Officer and corresponding Sampad Guha Thakurta
recoverable of H 141.9 million recorded as at 3 Strides Pharma Science L24230MH1990PLC057062 Holding Company (i)(c), (vii)(b)
Partner Limited
31 March 2022. In our opinion and according
to the information and explanations given to Membership number: 060573
us, having regard to the aforesaid note and UDIN: 22060573AJMSKC7057
for B S R & Co. LLP
based on the reports of the statutory auditors
and representations from management of such Chartered Accountants
subsidiary companies and associate companies Bengaluru
Firm’s registration number: 101248W/W-100022
incorporated in India which were not audited by Date: 24 May 2022
us, the remuneration paid during the current

Sampad Guha Thakurta

Partner
Membership number: 060573
UDIN: 22060573AJMSKC7057

Bengaluru
Date: 24 May 2022

116 | Annual Report 2021-22 | 117

 Strides Pharma Science Limited

Financial Statements
Annexure B to the Independent Auditor’s report on the consolidated financial statements provide reasonable assurance that transactions Other Matters
of Strides Pharma Science Limited (“the Company”) for the year ended 31 March 2022 are recorded as necessary to permit preparation of
financial statements in accordance with generally Our aforesaid reports under Section 143(3)(i) of the
accepted accounting principles, and that receipts and Act on the adequacy and operating effectiveness
expenditures of the company are being made only in of the internal financial controls with reference to
accordance with authorisations of management and consolidated financial statements insofar as it relates
Report on the internal financial controls with reference Auditor’s Responsibility to one subsidiary company and one associate company,
to the aforesaid consolidated financial statements directors of the company; and (3) provide reasonable
Our responsibility is to express an opinion on assurance regarding prevention or timely detection which are companies incorporated in India, is based
under Clause (i) of Sub-section 3 of Section 143 of the
the internal financial controls with reference to of unauthoried acquisition, use, or disposition of the on the corresponding reports of the auditors of such
Companies Act, 2013
consolidated financial statements based on our company’s assets that could have a material effect on companies incorporated in India.
audit. We conducted our audit in accordance with the financial statements.
(Referred to in paragraph A(f) under ‘Report on Other
the Guidance Note and the Standards on Auditing,
Legal and Regulatory Requirements’ section of our for B S R & Co. LLP
prescribed under section 143(10) of the Act, to the extent Inherent Limitations of Internal Financial
report of even date)
applicable to an audit of internal financial controls controls with Reference to consolidated Chartered Accountants
with reference to consolidated financial statements. Financial Statements
Opinion Those Standards and the Guidance Note require that
Firm’s registration number: 101248W/W-100022

In conjunction with our audit of the consolidated we comply with ethical requirements and plan and Because of the inherent limitations of internal financial
financial statements of the Company as of and for perform the audit to obtain reasonable assurance controls with reference to consolidated financial
the year ended 31 March 2022, we have audited about whether adequate internal financial controls statements, including the possibility of collusion or
Sampad Guha Thakurta
the internal financial controls with reference to with reference to consolidated financial statements improper management override of controls, material
consolidated financial statements of Strides Pharma were established and maintained and if such controls misstatements due to error or fraud may occur and Partner
Science Limited (hereinafter referred to as “the Holding operated effectively in all material respects. not be detected. Also, projections of any evaluation Membership number: 060573
Company”) and such companies incorporated in India of the internal financial controls with reference to
UDIN: 22060573AJMSKC7057
under the Companies Act, 2013 which are its subsidiary Our audit involves performing procedures to obtain consolidated financial statements to future periods are
companies and its associate companies, to the extent audit evidence about the adequacy of the internal subject to the risk that the internal financial controls
applicable, as of that date. financial controls with reference to consolidated with reference to consolidated financial statements Bengaluru
financial statements and their operating effectiveness. may become inadequate because of changes in
Date: 24 May 2022
In our opinion, the Holding Company and such Our audit of internal financial controls with reference to conditions, or that the degree of compliance with the
companies incorporated in India which are its subsidiary consolidated financial statements included obtaining policies or procedures may deteriorate.
companies and its associate companies, have, in all an understanding of internal financial controls with
material respects, adequate internal financial controls reference to consolidated financial statements,
with reference to consolidated financial statements assessing the risk that a material weakness exists,
and such internal financial controls were operating and testing and evaluating the design and operating
effectively as at 31 March 2022, based on the internal effectiveness of the internal controls based on the
financial controls with reference to consolidated assessed risk. The procedures selected depend on the
financial statements criteria established by such auditor’s judgement, including the assessment of the
companies considering the essential components of risks of material misstatement of the consolidated
such internal controls stated in the Guidance Note on financial statements, whether due to fraud or error.
Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered We believe that the audit evidence we have obtained
Accountants of India (the “Guidance Note”). and the audit evidence obtained by the other auditors
of the relevant subsidiary companies and associate
Management’s Responsibility for Internal companies in terms of their reports referred to in
Financial Controls the Other Matters paragraph below, is sufficient and
appropriate to provide a basis for our audit opinion
The respective Company’s management and the
on the internal financial controls with reference to
Board of Directors are responsible for establishing
consolidated financial statements.
and maintaining internal financial controls with
reference to consolidated financial statements
based on the criteria established by the respective
Meaning of Internal Financial controls
Company considering the essential components of
with Reference to Consolidated Financial
internal controls stated in the Guidance Note. These
Statements
responsibilities include the design, implementation A company’s internal financial controls with reference
and maintenance of adequate internal financial to consolidated financial statements is a process
controls that were operating effectively for ensuring the designed to provide reasonable assurance regarding
orderly and efficient conduct of its business, including the reliability of financial reporting and the preparation
adherence to the respective company’s policies, the of financial statements for external purposes in
safeguarding of its assets, the prevention and detection accordance with generally accepted accounting
of frauds and errors, the accuracy and completeness of principles. A company’s internal financial controls
the accounting records, and the timely preparation of with reference to consolidated financial statements
reliable financial information, as required under the includes those policies and procedures that (1) pertain
Companies Act, 2013 (hereinafter referred to as “the to the maintenance of records that, in reasonable
Act”). detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2)

118 | Annual Report 2021-22 | 119

 Strides Pharma Science Limited

Financial Statements
Consolidated Balance Sheet Consolidated Statement of Profit and Loss
as at March 31, 2022 for the year ended March 31, 2022

H In Million H In Million

Note No. 31-Mar-22 31-Mar-21 Note No. 31-Mar-22 31-Mar-21

A ASSETS A. Continuing operations:
I Non-current assets I Revenue from operations 28 30,702.50 33,158.70
(a) Property, plant and equipment 4 (i) 12,815.29 10,688.67 II Other income 29 1,319.88 514.27
(b) Capital work-in-progress 4 (ii) 562.29 2,276.02 III Total Income (I+II) 32,022.38 33,672.97
(c) Right-of-use assets 5 1,758.86 2,029.78 IV Expenses
(d) Investment property 6 131.73 682.35 (a) Cost of materials consumed 10,909.32 13,904.23
(e) Goodwill 7 4,859.07 4,805.40
(f) Other intangible assets 8 (i) 3,901.33 3,987.44 (b) Purchases of stock-in-trade 3,161.06 2,960.76
(g) Intangible assets under development 8 (ii) 2,348.49 2,197.67 (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress 30 952.79 (3,537.06)
(h) Investment in associates and joint ventures 9(i) 5,355.55 5,838.94 (d) Employee benefits expense 31 6,469.09 5,501.47
(i) Financial assets (e) Finance costs 32 1,767.44 1,500.65
(i) Investments 9(ii) 47.83 141.02 (f) Depreciation and amortisation expense 33 2,330.14 2,062.87
(ii) Loans receivable 10(i) 30.00 103.84 (g) Other expenses 34 9,313.46 8,061.17
(iii) Other financial assets 11(i) 450.80 5,692.90 (h) Foreign exchange (gain) / loss - net 97.84 (80.17)
(j) Deferred tax assets (net) 12 2,151.49 1,982.21 Total Expenses (IV) 35,001.14 30,373.92
(k) Income tax assets (net) 13 1,622.76 1,302.14 V Profit / loss) before exceptional items and tax (III - IV) ` (2,978.76) 3,299.05
(l) Other non-current assets 14(i) 104.82 249.48 VI Exceptional items gain/ (loss) (net) 35 (2,438.25) 433.53
Total non-current assets 36,140.31 41,977.86 VII Profit / (loss) before tax (V + VI) (5,417.01) 3,732.58
II Current assets VIII Share of loss of joint ventures and associates 54 (1,108.12) (978.19)
(a) Inventories 15 11,737.96 12,007.03
IX Profit / (loss) before tax (VII + VIII) (6,525.13) 2,754.39
(b) Financial assets X Tax expense: 36
(i) Investments 9(iii) - 994.12
(ii) Trade receivables 16 12,073.01 11,105.87 (a) Current tax (1,504.40) 214.48
(iii) Cash and cash equivalents 17 1,707.30 1,258.34 (b) Deferred tax (278.23) 102.03
(iv) Other balances with banks 18 166.22 539.31 Total tax expense (X) (1,782.63) 316.51
(v) Loans receivable 10(ii) 48.24 40.54 XI Profit /(loss) after tax from continuing operations (IX - X) (4,742.50) 2,437.88
(vi) Other financial assets 11(ii) 5,915.28 199.15 B. Discontinued operations 40
(c) Other current assets 14(ii) 1,970.30 2,027.98 (i) Loss from discontinued operations - -
Total current assets 33,618.31 28,172.34 (ii) Gain on disposal of assets / settlement of liabilities attributable to the - 139.41
TOTAL ASSETS 69,758.62 70,150.20 discontinued operations (net)
B EQUITY AND LIABILITIES (iii) Tax expense of discontinued operations - -
I Equity XII Profit / (loss) after tax from discontinued operations - 139.41
(a) Equity share capital 19 897.90 896.81
XIII Profit / (loss) for the year (XI + XII) (4,742.50) 2,577.29
(b) Other equity 20 22,694.38 26,869.80
XIV Other comprehensive income 37
Equity attributable to equity holders of the Company 23,592.28 27,766.61
Non- controlling interests 21 240.88 373.41 A (i) Items that will not be reclassified to statement of profit and loss (86.64) 104.46
Total Equity 23,833.16 28,140.02 (ii) Income tax relating to items that will not be reclassified to statement of profit 18.96 (14.08)
II Liabilities and loss
1 Non-current liabilities B (i) Items that may be reclassified to statement of profit and loss 560.86 212.09
(a) Financial liabilities (ii) Income tax relating to items that may be reclassified to statement of profit and (3.19) (136.92)
(i) Borrowings 22(i) 8,356.23 8,825.78 loss
(ii) Lease liabilities 5 1,864.67 2,102.67 Total other comprehensive income for the year, net of tax (XIV) 489.99 165.55
(iii) Other financial liabilities 23(i) 571.78 753.65 XV Total comprehensive income for the year (XIII + XIV) (4,252.51) 2,742.84
(b) Provisions 24(i) 642.80 674.08 Profit / (loss) for the period attributable to:
(c) Deferred tax liabilities (net) 12 357.19 463.48 - Owners of the Company (4,602.11) 2,684.42
(d) Non-current tax liabilities (net) 27 (i) - 1,790.91 - Non-controlling interests (140.39) (107.13)
(e) Other non-current liabilities 25(i) 16.04 16.13
(4,742.50) 2,577.29
Total non-current liabilities 11,808.71 14,626.70
Other comprehensive income for the year
2 Current liabilities - Owners of the Company 477.04 159.97
(a) Financial liabilities
(i) Borrowings 22(ii) 19,563.37 12,208.10 - Non-controlling interests 12.95 5.58
(ii) Lease liabilities 5 465.98 345.70 489.99 165.55
(iii) Trade payables 26 Total comprehensive income for the year
(a) total outstanding dues of micro enterprises and small 326.75 378.35 - Owners of the Company (4,125.07) 2,844.39
enterprises - Non-controlling interests (127.44) (101.55)
(b) total outstanding dues of creditors other than micro 10,388.49 10,963.65 (4,252.51) 2,742.84
enterprises and small enterprises Earnings per equity share (of H 10/- each) (for continuing operations): 48
(iv) Other financial liabilities 23(ii) 1,152.31 1,250.78 (1) Basic (51.28) 28.40
(b) Provisions 24(ii) 1,226.23 1,241.91 (2) Diluted (51.28) 28.37
(c) Current tax liabilities (net) 27 (ii) 238.11 351.18 Earnings per equity share (of H 10/- each) (for discontinued operations): 48
(d) Other current liabilities 25(ii) 755.51 643.81 (1) Basic - 1.56
Total current liabilities 34,116.75 27,383.48 (2) Diluted - 1.55
Total liabilities 45,925.46 42,010.18 Earnings per equity share (of H 10/- each) (for total operations): 48
TOTAL EQUITY AND LIABILITIES 69,758.62 70,150.20 (1) Basic (51.28) 29.96
(2) Diluted (51.28) 29.92
The accompanying notes are an integral part of the consolidated financial statements
As per our report of even date attached
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 for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Firm Registration Number: Chartered Accountants
101248W/ W-100022 Firm Registration Number:
101248W/ W-100022
Sampad Guha Thakurta Arun Kumar Badree Komandur
Sampad Guha Thakurta Arun Kumar Badree Komandur
Partner Executive Chairperson and Managing Director Executive Director - Finance & Group CFO Partner Executive Chairperson and Managing Director Executive Director - Finance & Group CFO
Membership Number 060573 DIN: 00084845 DIN: 07803242 Membership Number 060573 DIN: 00084845 DIN: 07803242

Manjula R. Manjula R.
Bengaluru, May 24, 2022 Company Secretary Bengaluru, May 24, 2022 Company Secretary
Membership Number A30515
Membership Number A30515

120 | Annual Report 2021-22 | 121

 A. Equity share capital

122 |
H In 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
for the years ended march 31, 2022

Balance as at March 31, 2022 897.90

B) Other equity
H In Million

Reserves and Surplus Items of other comprehensive income

Particulars

Notes
Share application money
pending allotment
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 flow hedging
reserve
Foreign currency
translation reserve
Remeasurement of
the defined benefit
liabilities / (asset)
Equity attributable to owners
of the Company
Non- controlling interests
Total

Balance as at - 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
April 1, 2020
Profit for the year - - - - - - - 2,684.42 - - - - 2,684.42 (107.13) 2,577.29
Other comprehensive - - - - - - - - 104.31 365.92 (296.33) (13.93) 159.97 5.58 165.55
income for the year
(net of tax)
Total comprehensive - - - - - - - 2,684.42 104.31 365.92 (296.33) (13.93) 2,844.39 (101.55) 2,742.84
income
Pursuant to business 39 - - - - - (223.01) - - - - - - (223.01) (189.21) (412.22)
combinations
Pursuant to scheme of 50.2 - (210.62) 210.62 - - - - - - - - - - - -
merger
Dividend (including - - - - - - - (179.15) - - - - (179.15) - (179.15)
tax on dividend)
Issue of shares on 45 - - 53.68 - (19.85) - - - - - - - 33.83 - 33.83
exercise of stock
Consolidated Statement of Changes in Equity

options
Transferred to general - - - - (5.41) - 5.41 - - - - - - - -
reserve on stock
options lapse
Employee stock 45 - - - - 15.22 - - - - - - - 15.22 - 15.22
compensation expenses

H In Million

Reserves and Surplus Items of other comprehensive income

Particulars
Notes
Share application money
pending allotment
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 flow hedging
reserve
Foreign currency
translation reserve
Remeasurement of
the defined benefit
liabilities / (asset)
Equity attributable to owners
of the Company
Non- controlling interests
Total

Pursuant to exchange - - - - - - - - - - - - - (8.21) (8.21)

Strides Pharma Science Limited

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
Profit 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
for the years ended march 31, 2022

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 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 Mr. Arun Kumar Badree Komandur
Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO
Membership Number: 060573 DIN : 00084845 DIN: 07803242
Consolidated Statement of Changes in Equity

Manjula R.
Bengaluru, May 24, 2022 Company Secretary
Membership Number: A30515
Annual Report 2021-22 | 123

Financial Statements
 Strides Pharma Science Limited

Financial Statements
Consolidated Statement of Cash Flow Consolidated Statement of Cash Flow
for the year ended March 31, 2022 for the year ended March 31, 2022

H In Million H In Million

31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21

Cash flow from operating activities Proceeds from sale of long-term investments including discontinued 127.30 97.69
Profit / (loss) before tax from: operations, net of expenses and cash (Refer note 40)
Continuing operations (6,525.13) 2,754.39 Rent deposit given (11.21) (0.10)
Discontinued operations - 139.41 Proceeds from / (investments in) fixed deposits with maturity of more than 3 488.54 (167.13)
months, net
(6,525.13) 2,893.80
Rental income from investment property 62.52 88.35
Adjustments for:
Interest and dividends received (net of tax on dividend) 67.36 68.69
- Depreciation and amortisation expense 2,330.14 2,062.87
Net cash flow utilised in investing activities B (1,187.33) (5,208.21)
- Share of loss of joint ventures and associates 1,108.12 978.19
Cash flow from financing activities
- Gain on sale of property, plant and equipment, other intangible assets and (112.47) (23.38)
investment property (net) Proceeds from issue of equity shares 36.18 34.99
- Share based compensation expense (7.09) 68.02 Proceeds from long-term borrowings 4,506.57 5,674.58
- Unwinding/ cancellation of gross obligations and contingent consideration (11.27) 86.40 Repayment of long-term borrowings (2,681.26) (2,100.94)
- Interest expense on borrowings and others 1,767.44 1,500.65 Net increase / (decrease) in working capital and short-term borrowings 4,564.32 (1,824.26)
- Interest and dividend income (1,076.15) (364.94) Lease payments (450.39) (370.98)
- Gain on disposal of assets / settlement of liabilities attributable to the - (139.41) Dividends paid (net of tax on dividend) (224.31) (179.15)
discontinued operations (net) (Refer note 40) Proceeds from issue of shares to minority shareholders - 1.67
- Rental income from investment property (60.33) (76.99) Interest paid on borrowings (Refer note (ii) below) (1,537.95) (1,393.87)
- Liability / provision no longer required written back - (7.45) Net cash generated from / (utilised in) financing activities C 4,213.16 (157.96)
- Bad debts written off / provision for doubtful trade and other receivables 1.78 94.61 Net increase / (decrease) in cash and cash equivalents (A+B+C) 447.68 (551.80)
- Write down of inventories and other assets 46.76 - Cash and cash equivalents at the beginning of the year 1,258.34 1,822.34
- Impairment and cost associated with disposal of facility (Refer note 35) 1,727.16 - Effect of exchange differences on restatement of foreign currency cash and 1.28 (12.20)
- Impairment of investment in an associate - 81.99 cash equivalents
- Sales returns, write down of inventory and other expenses on account of 552.34 750.50 Cash and cash equivalents at the end of the year * 1,707.30 1,258.34
product withdrawal * Comprises:
- Gain on sale of investment in subsidiaries/ associates (29.36) - Cash on hand 2.71 2.96
- Gain on lease modifications (18.73) - Balance with banks:
- Gain on dilution of investment in an associate (529.26) (323.00) - In current accounts 1,573.41 1,056.70
- Loss on sale of business unit 154.37 - - In deposit accounts 14.61 5.27
- Fair valuation gain on acquisition of controlling shares in an associate - (25.30) - Funds-in-transit 116.57 193.41
(Refer note 39) Total 1,707.30 1,258.34
- Net unrealised exchange gain (20.71) (1,029.61)
Notes:
Operating profit / (loss) before working capital changes (702.39) 6,526.95
(i) The consolidated cash flow statement reflects the combined cash flows pertaining to continuing and discontinued
Changes in working capital
operations. Refer note 40 for cash flows from discontinued operations.
Increase in trade and other receivables (587.95) (1,247.75)
(ii) Interest paid is inclusive of borrowing cost capitalised on property, plant and equipment H 8.15 Million (Previous year H 40.11
Decrease / (Increase) in inventories 281.86 (4,140.49) Million).
(Decrease) / Increase in trade and other payables (1,592.95) 2,107.70
Net change in working capital (1,899.04) (3,280.54) The accompanying notes are an integral part of the consolidated financial statements
Cash (utilised in) / generated from operations (2,601.43) 3,246.41 As per our report of even date attached
Income taxes refund received 23.28 1,567.96
Net cash flow (utilised in) / generated from operating activities A (2,578.15) 4,814.37 for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Chartered Accountants
Cash flow from investing activities
Firm Registration Number:
Capital expenditure for property, plant and equipment and intangible assets, (1,433.83) (2,974.84) 101248W/ W-100022
including capital advance
Proceeds from sale of property, plant and equipment, investment property and 753.74 39.58 Sampad Guha Thakurta Arun Kumar Badree Komandur
intangible assets
Partner Executive Chairperson and Managing Director Executive Director - Finance & Group CFO
Short-term investments in funds (540.61) (150.00) Membership Number 060573 DIN: 00084845 DIN: 07803242
Purchase of long-term investments including investment in associates (51.06) (2,456.33)
Consideration paid towards acquisition of non-controlling interest in (2,195.13) (78.86) Manjula R.
subsidiary and business combinations, net of cash acquired (Refer note 39) Bengaluru, May 24, 2022 Company Secretary
Proceeds from sale of investment in mutual funds 1,545.05 324.74 Membership Number A30515

124 | Annual Report 2021-22 | 125

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 01 General information equity infusion in the year ending 31 March 2023 and - has the ability to use its power to affect its are eliminated, but only to the extent that there is no
the steps undertaken by management as noted above, returns. evidence of impairment. All temporary differences
 trides Pharma Science Limited (the ‘Company’ or
S management believes that the Group will be able to that arise from the elimination of profits and losses
‘Strides’) and its subsidiaries (together referred to as continue generating sufficient cash in the foreseeable  he Group reassesses whether or not it controls an
T resulting from intragroup transactions are recognised
the ‘Group’) are into the development and manufacture future to meet its obligations as they fall due. investee if facts and circumstances indicate that there as per Ind AS 12 Income Taxes.
of pharmaceutical products. The Group has its are changes to one or more of the three elements of
registered office situated at 201, Devavrata, Sector 17, 2.1 Statement of compliance control listed above.  hanges in the Group’s ownership interests in
C
Vashi, Navi Mumbai – 400703, with corporate office in existing subsidiaries
Bengaluru, India and operates across many countries  hese consolidated financial statements have been
T
 hen the Group has less than a majority of the voting
W Changes in the Group’s ownership interests in
spreading across developed and emerging markets. prepared in accordance with Indian Accounting
rights of an investee, it has power over the investee when subsidiaries that do not result in the Group losing
Strides is listed on the National Stock Exchange (NSE) Standards (“Ind AS”) as per the Companies (Indian
the voting rights are sufficient to give it the practical control over the subsidiaries are accounted for as equity
and Bombay Stock Exchange (BSE) in India. Accounting Standards) Rules 2015, as amended, notified
ability to direct the relevant activities of the investee transactions. The carrying amounts of the Group’s
under Section 133 of Companies Act, 2013, (the ‘Act’)
unilaterally. The Group considers all relevant facts and interests and the non-controlling interests are adjusted
Note No. 02 Basis of preparation of and other relevant provisions of the Act.
circumstances in assessing whether or not the Group’s to reflect the changes in their relative interests in the
consolidated financial statements voting rights in an investee are sufficient to give it power, subsidiaries. Any difference between the amount by
 hese consolidated Ind AS financial statements
T
 he Group has incurred loss of H 4,742.50 million
T including: which the non-controlling interests are adjusted and
(‘consolidated financial statements’) were approved
and has negative operating cash flows amounting to the fair value of the consideration paid or received is
by the Board of Directors and authorised for issue on
H 2,578.16 million for the year ended 31 March 2022 - the size of the Group’s holding of voting rights recognised directly in equity and attributed to owners
May 24, 2022.
on account of continuing pricing pressure in some of relative to the size and dispersion of holdings of of the Company.
its key geographies consequent to effects of COVID. the other vote holders;
2.2 Functional and presentation currency
Management of the Group have obtained relaxations  hen the Group loses control of a subsidiary, a gain or
W
for compliance with financial covenants for year ended  hese consolidated financial statements are presented
T - potential voting rights held by the Group, other loss is recognised in statement of profit and loss and is
March 31, 2022, as these have not been met as of the in Indian rupees (H), which is also the functional vote holders or other parties; calculated as the difference between (i) the aggregate
date of the issue of financial statements. Further, as of currency of the parent Company. All amounts have been of the fair value of the consideration received and the
31 March 2022, the Company has provided guarantees rounded-off to the nearest million, unless otherwise - rights arising from other contractual arrangements; fair value of any retained interest and (ii) the previous
aggregating to H 9,419.83 million in relation to the indicated. In respect of subsidiaries and associates and carrying amount of the assets (including goodwill), and
borrowings of one of its associates (‘the Associate’), whose operations are self-contained and integrated, liabilities of the subsidiary and any non-controlling
out of which H 6,016 million is outstanding as on 31 the functional currency has been determined to be - any additional facts and circumstances that interests. All amounts previously recognised in other
March 2022, for which there is a material uncertainty the currency of the primary economic environment in indicate that the Group has, or does not have, the comprehensive income in relation to that subsidiary
to continue as a going concern. The Associate has which the entity operates. current ability to direct the relevant activities at are accounted for as if the Group had directly disposed
requested for temporary relaxations for compliance the time that decisions need to be made, including of the related assets or liabilities of the subsidiary (i.e.
with these financial covenants from the lenders 2.3 Basis of measurement voting patterns at previous shareholders’ meetings. reclassified to statement of profit and loss or transferred
as these have not been met as of the date of these to another category of equity as specified/permitted by
 he consolidated financial statements have been
T
consolidated financial statements. Also refer note 9 of  onsolidation of a subsidiary begins when the Group
C applicable Ind AS). The fair value of any investment
prepared on the historical cost basis except for the
these consolidated financial statements. obtains control over the subsidiary and ceases when retained in the former subsidiary at the date when
following items:
the Group loses control of the subsidiary. Specifically, control is lost is regarded as the fair value on initial
 urther, to mitigate the situation, the Group has raised
F income and expenses of a subsidiary acquired or recognition for subsequent accounting under Ind AS
- Certain financial assets and liabilities (including
long- term and other financing facilities amounting to disposed of during the year are included in the 109, or, when applicable, the cost on initial recognition
derivative instruments) are measured at fair value;
H 500 million post year ended 31 March 2022 and has consolidated statement of profit and loss from the date of an investment in an associate or a joint venture.
issued equity warrants to the entity which is part of the the Group gains control until the date when the Group
- Net defined benefit assets/(liability) are measured at
Promoter group that is expected to provide additional ceases to control the subsidiary. Refer note 50 for details of subsidiaries considered in
fair value of plan assets, less present value of defined
equity of H 884 million by 31 March 2023. The Group these consolidated financial statements.
benefit obligations; and
has cash and cash equivalents of H 1,707.30 million as rof it or loss and each component of other
P
at 31 March 2022 and also undrawn borrowing facilities comprehensive income are attributed to the owners of 2.5 Use of estimates and judgements
- Equity settled share based payments that are
available from certain lenders. The Group expects to the Company and to the non-controlling interests. Total
measured at fair value The preparation of the consolidated financial statements
improve operating profits from the newly acquired comprehensive income of subsidiaries is attributed to
in conformity with Ind AS requires management to
business in the US and from cost reductions consequent the owners of the Company and to the non-controlling
2.4 Basis of consolidation make estimates, judgements and assumptions. These
to capacity optimization at some of its manufacturing interests even if this results in the non-controlling
estimates, judgements and assumptions affect the
locations from April 2022 and by monitoring of freight  he consolidated financial statements includes the
T interests having a deficit balance.
application of accounting policies and the reported
and other expenses. financial statements of the Company and entities
amounts of assets and liabilities, the disclosures
(including structured entities) controlled by the  hen necessary, adjustments are made to the financial
W
of contingent assets and liabilities at the date of
 ccordingly, based on the fact that the Group had
A Company and its subsidiaries. Control is achieved statements of subsidiaries to bring their accounting
the consolidated financial statements and reported
generated positive operating cash flows in the previous when the Group: policies into line with the Group’s accounting policies.
amounts of revenues and expenses during the period.
year and expects to generate positive operating cash Accounting estimates could change from period
flows in future periods, temporary relaxations from - has power over the investee; The financial statements of the Group are consolidated
to period. Actual results could differ from those
lenders for compliance with financial covenants on line-by-line basis. Intra-group transactions,
estimates. Appropriate changes in estimates are
related to borrowings, its ability to raise new financing - is exposed, or has rights, to variable returns from balances and any unrealised gains arising from intra-
made as management becomes aware of changes in
facilities, full utilisation of existing facilities, expected its involvement with the investee; and group transactions, are eliminated. Unrealised losses
circumstances surrounding the estimates. Changes in

126 | Annual Report 2021-22 | 127

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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 either directly (i.e. as prices) or indirectly (i.e. derived  t the acquisition date, the identifiable assets acquired
A
statements in the period in which changes are made from prices). and the liabilities assumed are recognised at their fair
and, if material, their effects are disclosed in the notes Information about assumptions and estimation value, except that:
to the consolidated financial statements. uncertainties that have a significant risk of resulting  evel 3: inputs for the asset or liability that are not
L
in a material adjustment in the year ending March 31, based on observable market data (unobservable inputs). - deferred tax assets or liabilities, and assets or
2.5.1 Judgements 2022 is included in the following notes: liabilities related to employee benefit arrangements
Information about judgements made in applying  he Group has an established control framework
T are recognised and measured in accordance with
accounting policies that have the most significant • Note 12, 36 — taxation including deferred taxes; with respect to the measurement of fair values. Ind AS 12 Income Taxes and Ind AS 19 Employee
effects on the amounts recognised in the financial This includes a finance team that has overall Benefits respectively;
statements is included in the following notes: • Note 28 — accruals for charge backs, rebates and responsibility for overseeing all significant fair
sales returns; value measurements, including Level 3 fair values. - liabilities or equity instruments related to share-
• Note 2.2 — Assessment of functional currency; based payment arrangements of the acquiree or
• Note 11 — impairment of financial assets;  he Group regularly reviews significant unobservable
T share-based payment arrangements of the Group
• Note 3.5 — Revenue recognition: whether revenue inputs and valuation adjustments. If third party entered into to replace share-based payment
from sale of product and services is recognised • Note 7, 9 — Impairment of non financial assets information is used to measure fair values, then arrangements of the acquiree are measured in
overtime or at a point of time; the finance team assesses the evidence obtained accordance with Ind AS 102 Share-based Payment
• Note 42 — litigations from the third parties to support the conclusion at the acquisition date (see note 3.10.2); and
• Note 5 — Whether an agreement contains a lease; that these valuations meet the requirements of Ind
2.7 Operating cycle AS, including the level in the fair value hierarchy - assets (or disposal groups) that are classified as
• Note 3.18 and 51 — Financial instruments;  s mentioned in para 1 above under `Corporate
A in which the valuations should be classified. held for sale in accordance with Ind AS 105 Non-
information’, the Group is into development and current Assets Held for Sale and Discontinued
• Note 3.12, 3.13 and 3.14— Useful lives of property, manufacture of pharmaceutical products. Based on the  hen measuring the fair value of an asset or a liability,
W Operations are measured in accordance with
plant and equipment, intangible assets and normal time between acquisition of assets and their the Group uses observable market data as far as that Standard.
investment property; realisation in cash or cash equivalents, the Group has possible. If the inputs used to measure the fair value
determined its operating cycle as 3 years to 5 years of an asset or a liability fall into different levels of the  oodwill is measured as the excess of the sum of the
G
• Note 46 — measurement of defined benefit and 12 months relating to research and development fair value hierarchy, then the fair value measurement consideration transferred, the amount of any non-
obligation; key actuarial assumptions; activities and manufacturing of pharmaceutical is categorised in its entirety in the same level of the controlling interests in the acquiree, and the fair value
products respectively. The above basis is used for fair value hierarchy as the lowest level input that is of the acquirer’s previously held equity interest in the
• Note 3.11 and 42— Provision for income taxes classifying the assets and liabilities into current and significant to the entire measurement. acquiree (if any) over the net of the acquisition-date
and related tax contingencies and evaluation of non-current as the case may be. amounts of the identifiable assets acquired and the
recoverability of deferred tax assets; The Group recognises transfers between levels of liabilities assumed.
2.8 Cash flow statement the fair value hierarchy at the end of the reporting
• Note 3.15 — Impairment testing for non financial period during which the change has occurred. In case of a bargain purchase, before recognising a
assets.  ash f lows are reported using indirect method,
C Fur t her infor mat ion about t he assumpt ions gain in respect thereof, the Group determines whether
whereby net profits before tax is adjusted for the made in measuring fair values is included in the there exists clear evidence of the underlying reasons
2.5.2 Control over subsidiaries effects of transactions of a non-cash nature and any following notes: for classifying the business combination as a bargain
The following entities are considered subsidiaries of deferrals or accruals of past or future cash receipts or purchase. Thereafter, the Group reassesses whether
the Group even though the Group and non-controlling payments and items of income or expenses associated • Note 45 — share based payments; it has correctly identified all of the assets acquired
interests have about 50% of the ownership interest and with investing or financing cash flows. The cash flows and all of the liabilities assumed and recognises any
the voting rights in such entities: from regular revenue generating (operating activities), • Note 6 — investment property additional assets or liabilities that are identified in that
investing and financing activities of the Group are reassessment. The Group then reviews the procedures
H In Million
segregated. • Note 3.18 and 51 — financial instruments; used to measure the amounts that Ind AS requires for
Proportion of ownership
interest and voting power the purposes of calculating the bargain purchase. If the
Name of the entities held by the Group 2.9 Measurement of fair values Note No. 03 Significant accounting policies gain remains after this reassessment and review, the
31-Mar-22 31-Mar-21 A number of the Group’s accounting policies and Group recognises it in other comprehensive income and
3.1 Business combinations
1. Universal Corporation Limited 51% 51% disclosures require the measurement of fair values, for accumulates the same in equity as capital reserve. This
both financial and non-financial assets and liabilities.  cquisitions of businesses are accounted for using the
A gain is attributed to the acquirer. If there does not exist
2. Trinity Pharma (Pty) Limited 51.76% 51.76%
acquisition method. The consideration transferred in a clear evidence of the underlying reasons for classifying
3. Apollo Life Sciences Holdings 51.76% 51.76%
 air values are categorised into different levels in a
F business combination is measured at fair value, which the business combination as a bargain purchase, the
(Pty) Limited
fair value hierarchy based on the inputs used in the is calculated as the sum of the acquisition-date fair Group recognises the gain, after reassessing and
valuation techniques as follows. values of the assets transferred by the Group, liabilities reviewing (as described above), directly in equity as
 he management of the Group assessed whether or
T
incurred by the Group to the former owners of the capital reserve.
not the Group has control over the above mentioned
 evel 1: quoted prices (unadjusted) in active markets
L acquiree and the equity interests issued by the Group
entities based on whether the Group has the practical
for identical assets or liabilities. in exchange of control of the acquiree. Acquisition-  on-controlling interests that are present ownership
N
ability to direct the relevant activities of such entities
related costs are generally recognised in statement of interests and entitle their holders to a proportionate
unilaterally. Based on such assessment, the directors
 evel 2: inputs other than quoted prices included in
L profit and loss as incurred. share of the entity’s net assets in the event of liquidation
concluded that the Group has sufficient management
Level 1 that are observable for the asset or liability, may be initially measured either at fair value or at the
rights to unilaterally direct the relevant activities of
non-controlling interests’ proportionate share of the
such entities and therefore the Group has control.

128 | Annual Report 2021-22 | 129

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

recognised amounts of the acquiree’s identifiable net if known, would have affected the amounts recognised thereof, is classified as held for sale, in which case it  he Group discontinues the use of the equity method
T
assets. The choice of measurement basis is made on at that date. is accounted for in accordance with Ind AS 105. Under from the date when the investment ceases to be an
a transaction-by-transaction basis. Other types of the equity method, an investment in an associate or a associate or a joint venture, or when the investment is
non-controlling interests are measured at fair value 3.2 Goodwill joint venture is initially recognised in the consolidated classified as held for sale. When the Group retains an
or, when applicable, on the basis specified in another balance sheet at cost and adjusted thereafter to interest in the former associate or joint venture and
Goodwill arising on an acquisition of a business is
Ind AS. recognise the Group’s share of the profit or loss and the retained interest is a financial asset, the Group
carried at cost as established at the date of acquisition
other comprehensive income of the associate or joint measures the retained interest at fair value at that
of the business less accumulated impairment
 hen the consideration transferred by the Group
W venture. Distributions received from an associate or date and the fair value is regarded as its fair value
losses, if any.
in a business combination includes assets or a joint venture reduce the carrying amount of the on initial recognition in accordance with Ind AS 109.
liabilities resulting from a contingent consideration investment. When the Group’s share of losses of an The difference between the carrying amount of the
 or the purposes of impairment testing, goodwill is
F
arrangement, the contingent consideration is associate or a joint venture exceeds the Group’s interest associate or joint venture at the date the equity method
allocated to cash-generating units. The allocation is
measured at its acquisition-date fair value and in that associate or joint venture (which includes any was discontinued, and the fair value of any retained
made to those cash generating units or groups of cash
included as part of the consideration transferred in a long-term interests that, in substance, form part of interest and any proceeds from disposing of a part
generating units that are expected to benefit from the
business combination. Changes in the fair value of the the Group’s net investment in the associate or joint interest in the associate or joint venture is included
business combination in which such goodwill arose.
contingent consideration that qualify as measurement venture), the Group discontinues recognising its share in the determination of the gain or loss on disposal of
period adjustments are adjusted retrospectively, with of further losses. Additional losses are recognised the associate or joint venture. In addition, the Group
 cash-generating unit to which goodwill has been
A
corresponding adjustments against goodwill or capital only to the extent that the Group has incurred legal or accounts for all amounts previously recognised in other
allocated is tested for impairment annually, or more
reserve, as the case maybe. Measurement period constructive obligations or made payments on behalf comprehensive income in relation to that associate or
frequently when there is an indication that the unit
adjustments are adjustments that arise from additional of the associate or joint venture. joint venture on the same basis as would be required
may be impaired. If the recoverable amount of the
information obtained during the ‘measurement period’ if that associate or joint venture had directly disposed
cash-generating unit is less than its carrying amount,
(which cannot exceed one year from the acquisition  n investment in an associate or a joint venture is
A of the related assets or liabilities. Therefore, if a gain
the impairment loss is allocated first to reduce the
date) about facts and circumstances that existed at the accounted for using the equity method from the date or loss previously recognised in other comprehensive
carrying amount of any goodwill allocated to the
acquisition date. on which the investee becomes an associate or a income by that associate or joint venture would be
unit and then to the other assets of the unit pro rata
joint venture. On acquisition of the investment in an reclassified to statement of profit and loss on the
based on the carrying amount of each asset in the
 he subsequent accounting for changes in the fair
T associate or a joint venture, any excess of the cost of disposal of the related assets or liabilities, the Group
unit. Any impairment loss for goodwill is recognised
value of the contingent consideration that do not the investment over the Group’s share of the net fair reclassifies the gain or loss from equity to statement of
directly in statement of profit and loss. An impairment
qualify as measurement period adjustments depends value of the identifiable assets and liabilities of the profit and loss (as a reclassification adjustment) when
loss recognised for goodwill is not reversed in
on how the contingent consideration is classified. investee is recognised as goodwill, which is included the equity method is discontinued.
subsequent periods.
Contingent consideration that is classified as equity is within the carrying amount of the investment. Any
not remeasured at subsequent reporting dates and its excess of the Group’s share of the net fair value of the The Group continues to use the equity method when
 n disposal of the relevant cash-generating unit, the
O
subsequent settlement is accounted for within equity. identifiable assets and liabilities over the cost of the an investment in an associate becomes an investment
attributable amount of goodwill is included in the
Contingent consideration that is classified as an asset investment, after reassessment, is recognised directly in a joint venture or an investment in a joint venture
determination of the profit or loss on disposal.
or a liability is remeasured at fair value at subsequent in equity as capital reserve in the period in which the becomes an investment in an associate. There is no
reporting dates with the corresponding gain or loss investment is acquired. remeasurement to fair value upon such changes in
 he Group’s policy for goodwill arising on the acquisition
T
being recognised in statement of profit and loss. ownership interests.
of an associate and a joint venture is described at note
3.3 below.  fter application of the equity method of accounting,
A
 hen a business combination is achieved in stages, the
W the Group determines whether there is any objective When the Group reduces its ownership interest in an
Group’s previously held equity interest in the acquiree evidence of impairment as a result of one or more associate or a joint venture but the Group continues
3.3 Investments in associates and joint ventures
is remeasured to its acquisition-date fair value and the events that occurred after the initial recognition of the to use the equity method, the Group reclassifies to
resulting gain or loss, if any, is recognised in statement An associate is an entity over which the Group has net investment in an associate or a joint venture and statement of profit and loss the proportion of the gain
of profit and loss. Amounts arising from interests in significant influence. Significant influence is the power that event (or events) has an impact on the estimated or loss that had previously been recognised in other
the acquiree prior to the acquisition date that have to participate in the financial and operating policy future cash flows from the net investment that can be comprehensive income relating to that reduction
previously been recognised in other comprehensive decisions of the investee but is not control or joint reliably estimated. If there exists such an objective in ownership interest if that gain or loss would be
income are reclassified to statement of profit and loss control over those policies. evidence of impairment, then it is necessary to reclassified to statement of profit and loss on the
where such treatment would be appropriate if that recognise impairment loss with respect to the Group’s disposal of the related assets or liabilities.
interest were disposed of.  joint venture is a joint arrangement whereby the
A
investment in an associate or a joint venture.
parties that have joint control of the arrangement have  hen a group entity transacts with an associate or a
W
If the initial accounting for a business combination rights to the net assets of the joint arrangement. Joint joint venture of the Group, profits and losses resulting
 hen necessary, the entire carrying amount of
W
is incomplete by the end of the reporting period in control is the contractually agreed sharing of control from the transactions with the associate or joint
the investment (including goodwill) is tested for
which the combination occurs, the Group reports of an arrangement, which exists only when decisions venture are recognised in the Group’s consolidated
impairment in accordance with Ind AS 36 Impairment
provisional amounts for the items for which the about the relevant activities require unanimous financial statements only to the extent of interests in
of Assets as a single asset by comparing its recoverable
accounting is incomplete. Those provisional amounts consent of the parties sharing control. the associate or joint venture that are not related to
amount (higher of value in use and fair value less costs
are adjusted during the measurement period (see the Group.
of disposal) with its carrying amount, Any impairment
above), or additional assets or liabilities are recognised, The results and assets and liabilities of associates or
loss recognised forms part of the carrying amount of
to reflect new information obtained about facts and joint ventures are incorporated in these consolidated 3.4 Non-current assets held for sale
the investment. Any reversal of that impairment loss
circumstances that existed at the acquisition date that, financial statements using the equity method of
is recognised in accordance with Ind AS 36 to the Non-current assets and disposal groups are classified as
accounting, except when the investment, or a portion
extent that the recoverable amount of the investment held for sale if their carrying amount will be recovered
subsequently increases. principally through a sale transaction rather than

130 | Annual Report 2021-22 | 131

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

through continuing use. This condition is regarded as Step 3: Determine the transaction price of products to the business partners. An additional incentive payment is recognised as an expense as the
met only when the asset (or disposal group) is available amount representing the profit share component is same is in the nature of commission.
for immediate sale in its present condition subject  tep 4: Allocate the transaction price to the performance
S recognised as revenue in the period which corresponds
only to terms that are usual and customary for sales obligations in the contract to the ultimate sales of the products made by business Chargebacks / Reptos claims by the wholesalers /
of such asset (or disposal group) and its sale is highly partners only when the collectability of the profit share distributors and Price Protections
probable. Management must be committed to the sale,  tep 5: Recognise revenue when (or as) the entity
S becomes probable and a reliable measurement of the C hargebacks and reptos claims are estimated on

which should be expected to qualify for recognition satisfies a performance obligation profit share is available. Otherwise, recognition is the basis of the average trend of the past years and
as a completed sale within one year from the date deferred to a subsequent period pending satisfaction recognised as reduction to revenue.
of classification. 3.5.1 Sale of goods of such collectability and measurability requirements.
Revenue is recognised when a promise in a customer In measuring the amount of profit share revenue to be 3.5.2 Rendering of services
When the Group is committed to a sale plan involving contract (performance obligation) has been satisfied recognised for each period, the Group uses all available  evenue from services rendered, which primarily relate
R
loss of control of a subsidiary, all of the assets and by transferring control over the promised goods to the information and evidence, including any confirmations to contract research, is recognised in the consolidated
liabilities of that subsidiary are classified as held customer. Control over a promised good refers to the from the business partner of the profit share amount statement of profit and loss as the underlying services
for sale when the criteria described above are met, ability to direct the use of, and obtain substantially all owed to the Group, to the extent made available before are performed. Upfront payments received under these
regardless of whether the Group will retain a non- of the remaining benefits from, those goods. Control is the date the Company’s Board of Directors authorises arrangements are deferred and recognised as revenue
controlling interest in its former subsidiary after usually transferred upon shipment, delivery to, upon the issuance of its financial statements for the over the expected period over which the related
the sale. receipt of goods by the customer, in accordance with applicable period. services are expected to be performed.
the delivery and acceptance terms agreed with the
 hen the Group is committed to a sale plan involving
W customers. The amount of revenue to be recognised Sale to Distributors 3.5.3 Royalty, sale of licenses and Intellectual
disposal of an investment, or a portion of an investment, (transaction price) is based on the consideration The Group appoints distributors in various territories property rights
in an associate or joint venture, the investment or the expected to be received in exchange for goods, who purchases the goods from the Group and thereafter The Group enters into certain dossier sales, royalties,
portion of the investment that will be disposed of is excluding amounts collected on behalf of third parties sells them in the territory. In case the distributor is acting licensing and supply arrangements with various parties.
classified as held for sale when the criteria described such as sales tax or other taxes directly linked to sales. as an agent, the Group defers revenue recognition till the Income from licensing arrangements is generally
above are met, and the Group discontinues the use If a contract contains more than one performance time goods are sold by the distributor to the end customer. recognised over the term of the contract. Some of these
of the equity method in relation to the portion that obligation, the transaction price is allocated to each On the other hand, if the distributor is principal, revenue arrangements include certain performance obligations
is classified as held for sale. Any retained portion of performance obligation based on their relative stand- is recognised upon the transfer of significant risks and by the Group. Revenue from such arrangements is
an investment in an associate or a joint venture that alone selling prices. Revenue from product sales are rewards of ownership of the goods to the distributor.” recognised in the period in which the Group completes
has not been classified as held for sale continues to recorded net of allowances for estimated rebates, cash all its performance obligations.
be accounted for using the equity method. The Group discounts and estimates of product returns, all of Right to reject or return goods
discontinues the use of the equity method at the time which are established at the time of sale. The Group sells its products to the customers with a 3.5.4 Dividend and interest income
of disposal when the disposal results in the Group right to return the goods within the specified period of Dividend income from investments is recognised when
losing significant inf luence over the associate or The consideration received by the Group in exchange time. If the probability of acceptance by the customer the shareholder’s right to receive payment has been
joint venture. for its goods may be fixed or variable. Variable is uncertain, recognition of revenue is deferred till the established (provided that it is probable that the economic
consideration is only recognised when it is considered expiry of right to return or acceptance by the customer benefits will flow to the Group and the amount of income
After the disposal takes place, the Group accounts for highly probable that a significant revenue reversal will whichever is earlier. can be measured reliably).
any retained interest in the associate or joint venture in not occur once the underlying uncertainty related to
accordance with Ind AS 109 unless the retained interest variable consideration is subsequently resolved. Free samples I nterest income from a financial asset is recognised
continues to be an associate or a joint venture, in The Group distributes free samples to distributors, at when it is probable that the economic benefits will
which case the Group uses the equity method (see the Profit share revenues various exhibitions and at medical conferences. The flow to the Group and the amount of income can be
accounting policy regarding investments in associates The Group from time to time enters into marketing cost of samples distributed at exhibitions, medical measured reliably. Interest income is accrued on a time
or joint ventures above). arrangements with certain business partners for the conferences or to doctors directly are treated as basis, by reference to the principal outstanding and at
sale of its products in certain markets. Under such marketing expense and clubbed under “Business the effective interest rate applicable, which is the rate
 on-current assets (and disposal groups) classified as
N arrangements, the Group sells its products to the Promotion Expense”. However, free samples given to that exactly discounts estimated future cash receipts
held for sale are measured at the lower of their carrying business partners at a base purchase price agreed distributors (that are not acting as agents) is recognised through the expected life of the financial asset to that
amount and fair value less costs to sell. upon in the arrangement and is also entitled to a as cost of goods sold. In case the free samples asset’s net carrying amount on initial recognition.
profit share which is over and above the base purchase are not delivered at the same time as the related
3.5 Revenue from contracts with customers price. The profit share is typically dependent on the sales consignment, a reliable provision is made in 3.5.5 Rental income
business partner’s ultimate net sale proceeds or net this regard. The Group’s policy for recognition of revenue from
The Group recognises revenue to depict the transfer of
profits, subject to any reductions or adjustments that operating leases is described in note 3.6.1 below.
promised goods or services to customers in an amount
are required by the terms of the arrangement. Such Price Variations / Incentives
that reflects the consideration to which the entity
arrangements typically require the business partner Incentives are accounted based on the assessment 3.5.6 Export Incentives
expects to be entitled in exchange for those goods
to provide confirmation of units sold and net sales or of whether the beneficiary (of the incentive) is acting  xport incentives are accrued for based on fulfilment
E
or services. A 5-step approach is used to recognise
net profit computations for the products covered under as a principal or an agent. Where the beneficiary is a of eligibility criteria for availing the incentives and
revenue as below:
the arrangement. principal, the incentive is regarded as consideration when there is no uncertainty in receiving the same.
paid to the customer and is reduced from revenue. These incentives include estimated realisable values/
Step 1: Identify the contract(s) with a customer
 evenue is an amount equal to the base purchase
R However, where the beneficiary is an agent, the
price is recognised in these transactions upon delivery
Step 2: Identify the performance obligation in contract

132 | Annual Report 2021-22 | 133

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

benefits from special import licenses and benefits use asset is initially measured at cost, which comprises  he lease liability is measured at amortised cost using
T settlement is neither planned nor likely to occur
under specified schemes as applicable. the initial amount of the lease liability adjusted for any the effective interest method. It is remeasured when (therefore forming part of the net investment in
lease payments made at or before the commencement there is a change in future lease payments arising from the foreign operation), are recognised initially in
3.6 Leases date, plus any initial direct costs incurred and an a change in an index or rate, if there is a change in the other comprehensive income and reclassified from
estimate of costs to dismantle and remove the Group’s estimate of the amount expected to be payable equity to statement of profit and loss on repayment
At inception of a contract, the Group assesses whether
underlying asset or to restore the underlying asset under a residual value guarantee, if the Company of the monetary items. On the disposal of a foreign
a contract is, or contains, a lease. A contract is, or
or the site on which it is located, less any lease changes its assessment of whether it will exercise a operation, the cumulative amount of the exchange
contains, a lease if the contract conveys the right to
incentives received. purchase, extension or termination option or if there differences relating to that foreign operation,
control the use of an identified asset for a period of
is a revised in-substance fixed lease payment. recognised in other comprehensive income and
time in exchange for consideration. To assess whether
 he right-of-use asset is subsequently depreciated using
T accumulated in the separate component of equity,
a contract conveys the right to control the use of an
the straight-line method from the commencement  hen the lease liability is remeasured in this way,
W will be reclassified from equity to statement of
identified asset, the Company uses the definition of a
date to the end of the lease term, unless the lease a corresponding adjustment is made to the carrying profit and loss when the gain or loss on disposal
lease in Ind AS 116. This policy is applied to contracts
transfers ownership of the underlying asset to the amount of the right-of-use asset, or is recorded in profit is recognised.
entered into, on or after 1 April 2019.
Group by the end of the lease term or the cost of the or loss if the carrying amount of the right-of-use asset
right-of-use asset reflects that the Group will exercise a has been reduced to zero.  or the purposes of presenting these consolidated
F
3.6.1 The Group as lessor
purchase option. In that case the right-of-use asset will financial statements, the assets and liabilities of the
At inception or on modification of a contract that
be depreciated over the useful life of the underlying  hort-term leases and leases of low-value assets
S Group’s foreign operations are translated into Indian
contains a lease component, the Group allocates the
asset, which is determined on the same basis as those The Group has elected not to recognise right-of-use Rupees using exchange rates prevailing at the end
consideration in the contract to each lease component
of property and equipment. In addition, the right-of- assets and lease liabilities for leases of low-value assets of each reporting period. Income and expense items
on the basis of their relative standalone prices.
use asset is periodically reduced by impairment losses, and short-term leases, including IT equipment. The are translated at the average exchange rates for the
if any, and adjusted for certain remeasurements of the Group recognises the lease payments associated with period, unless exchange rates fluctuate significantly
 hen the Group acts as a lessor, it determines at lease
W
lease liability. these leases as an expense on a straight-line basis over during that period, in which case the exchange rates
inception whether each lease is a finance lease or an
the lease term. at the dates of the transactions are used. Exchange
operating lease.
The lease liability is initially measured at the present differences arising, if any, are recognised in other
value of the lease payments that are not paid at the  he Company’s significant leasing arrangements
T comprehensive income and accumulated in equity (and
To classify each lease, the Group makes an overall
commencement date, discounted using the interest rate are mainly in respect of factory land and buildings, attributed to non-controlling interests as appropriate).
assessment of whether the lease transfers substantially
implicit in the lease or, if that rate cannot be readily residential and office premises.
all of the risks and rewards incidental to ownership of
determined, the Group’s incremental borrowing rate. On the disposal of a foreign operation (i.e. a disposal
the underlying asset. If this is the case, then the lease
Generally, the Group uses its incremental borrowing rate 3.7 Foreign currencies transactions and of the Group’s entire interest in a foreign operation,
is a finance lease; if not, then it is an operating lease.
as the discount rate. translation a disposal involving loss of control over a subsidiary
As part of this assessment, the Group considers certain
that includes a foreign operation, or a partial disposal
indicators such as whether the lease is for the major I n preparing the financial statements of each individual
The Group determines its incremental borrowing of an interest in a joint arrangement or an associate
part of the economic life of the asset. group entity, transactions in currencies other than the
rate by obtaining interest rates from various external that includes a foreign operation of which the retained
entity’s functional currency (foreign currencies) are
financing sources and makes certain adjustments to interest becomes a financial asset), all of the exchange
 hen the Group is an intermediate lessor, it accounts
W recognised at the rates of exchange prevailing at the
reflect the terms of the lease and type of the asset differences accumulated in equity in respect of that
for its interests in the head lease and the sub-lease dates of the transactions. At the end of each reporting
leased. operation attributable to the owners of the Company
separately. It assesses the lease classification of a sub- period, monetary items denominated in foreign
are reclassified to the statement of profit and loss.
lease with reference to the right-of-use asset arising currencies are retranslated at the rates prevailing at that
 ease payments included in the measurement of the
L
from the head lease, not with reference to the underlying date. Non-monetary items carried at fair value that are
lease liability comprise the following: In addition, in relation to a partial disposal of a
asset. If a head lease is a short-term lease to which denominated in foreign currencies are retranslated at
subsidiary that includes a foreign operation that does
the Group applies the exemption described above, the rates prevailing at the date when the fair value was
- fixed payments, including in-substance fixed not result in the Group losing control over the subsidiary,
then it classifies the sub-lease as an operating lease. determined. Non-monetary items that are measured
payments; the proportionate share of accumulated exchange
The Group recognises lease payments received under in terms of historical cost in a foreign currency are not
differences are re-attributed to non-controlling
operating leases as income on a straightline basis over retranslated.
- variable lease payments that depend on an index interests and are not recognised in statement of profit
the lease term.
or a rate, initially measured using the index or rate and loss. For all other partial disposals (i.e. partial
xchange differences arising on settlement or
E
as at the commencement date; disposals of associates or joint arrangements that do not
3.6.2 The Group as lessee translation of monetary items are recognised in
result in the Group losing significant influence or joint
At commencement or on modification of a contract that statement of profit and loss in the period in which they
- amounts expected to be payable under a residual control), the proportionate share of the accumulated
contains a lease component, the Group allocates the arise except for:
value guarantee; and exchange differences is reclassified to the statement
consideration in the contract to each lease component
of profit and loss.
on the basis of its relative stand-alone prices. However, - exchange differences which are regarded as an
- the exercise price under a purchase option that
for the leases of property the group has elected not adjustment to interest costs on foreign currency
the Group is reasonably certain to exercise, lease  oodwill and fair value adjustments to identifiable
G
to separate non-lease components and account for borrowings that are directly attributable to the
payments in an optional renewal period if the assets acquired and liabilities assumed through
the lease and non-lease components as a single acquisition or construction of qualifying assets,
Group is reasonably certain to exercise an extension acquisition of a foreign operation are treated as assets
lease component. are capitalized as cost of assets, and
option, and penalties for early termination of a and liabilities of the foreign operation and translated
lease unless the Group is reasonably certain not at the rate of exchange prevailing at the end of each
 he Group recognises a right-of-use asset and a lease
T - exchange differences on monetary items receivable
to terminate early. reporting period. Exchange differences arising are
liability at the lease commencement date. The right-of- from or payable to a foreign operation for which
recognised in other comprehensive income.

134 | Annual Report 2021-22 | 135

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

3.8 Borrowing costs the beginning of the period to the net defined benefit the underlying options. Any changes in the liability are 3.11.1 Current tax
liability or asset. recognised in the statement of profit or loss. The current tax payable is based on taxable profit for
Borrowing costs include: the year. Taxable profit differs from ‘profit before tax’
(i) interest expense calculated using the effective The retirement benefit obligation recognised in the 3.10.3 Share-based payment transactions of the as reported in the consolidated statement of profit and
interest rate method, consolidated balance sheet represents the actual deficit acquiree in a business combination loss because of items of income or expense that are
or surplus in the Group’s defined benefit plans. Any W hen the share-based payment awards held by
 taxable or deductible in other years and items that are
(ii) finance charges in respect of finance leases, and surplus resulting from this calculation is limited to the the employees of an acquiree (acquiree awards) are never taxable or deductible. The Group’s current tax is
present value of any economic benefits available in the replaced by the Group’s share-based payment awards calculated using tax rates that have been enacted or
(iii) exchange differences arising from foreign currency form of refunds from the plans or reductions in future (replacement awards), both the acquiree awards and the substantively enacted by the end of the reporting period.
borrowings to the extent that they are regarded as contributions to the plans. replacement awards are measured in accordance with
an adjustment to interest costs. Ind AS 102 (“market-based measure”) at the acquisition 3.11.2 Deferred tax
A liability for a termination benefit is recognised at the date. The portion of the replacement awards that is Deferred tax is recognised on temporary differences
 orrowing costs directly attributable to the acquisition,
B earlier of when the entity can no longer withdraw the included in measuring the consideration transferred between the carrying amounts of assets and liabilities
construction or production of qualifying assets, which offer of the termination benefit and when the entity in a business combination equals the market-based in the consolidated financial statements and the
are assets that necessarily take a substantial period recognises any related restructuring costs. measure of the acquiree awards multiplied by the corresponding tax bases used in the computation of
of time to get ready for their intended use or sale, are ratio of the portion of the vesting period completed to taxable profit. Deferred tax liabilities are generally
added to the cost of those assets, until such time as 3.9.3 Compensated absences the greater of the total vesting period or the original recognised for all taxable temporary differences. Deferred
the assets are substantially ready for their intended The Group has a policy on compensated absences vesting period of the acquiree award. The excess of tax assets are generally recognised for all deductible
use or sale. which are both accumulating and non-accumulating in the market-based measure of the replacement awards temporary differences to the extent that it is probable
nature. The expected cost of accumulating compensated over the market-based measure of the acquiree that taxable profits will be available against which those
Interest income earned on the temporary investment absences is determined by actuarial valuation awards included in measuring the consideration deductible temporary differences can be utilised. Such
of specific borrowings pending their expenditure on performed by an independent actuary at each balance transferred is recognised as remuneration cost for post- deferred tax assets and liabilities are not recognised if the
qualifying assets is deducted from the borrowing costs sheet date using the projected unit credit method on combination service. temporary difference arises from the initial recognition
eligible for capitalisation. the additional amount expected to be paid/availed as a (other than in a business combination) of assets and
result of the unused entitlement that has accumulated However, when the acquiree awards expire as a liabilities in a transaction that affects neither the taxable
 ll other borrowing costs are recognised in statement
A at the balance sheet date. Expense on non-accumulating consequence of a business combination and the profit nor the accounting profit. In addition, deferred tax
of profit and loss in the period in which they are compensated absences is recognised in the period in Group replaces those awards when it does not have liabilities are not recognised if the temporary difference
incurred. which the absences occur. an obligation to do so, the replacement awards are arises from the initial recognition of goodwill.
measured at their market-based measure in accordance
3.9 Employee benefits 3.10 Share-based payment arrangements with Ind AS 102. All of the market-based measure of  eferred tax liabilities are recognised for taxable
D
3.9.1 Short-term employee benefits the replacement awards is recognised as remuneration temporary differences associated with investments
3.10.1 Share-based payment transactions of the
A ll employee benefits falling due wholly within twelve cost for post-combination service. in subsidiaries and associates, and interests in joint
Company
months of rendering the services are classified as short- ventures, except where the Group is able to control the
Equity-settled share-based payments to employees and
term employee benefits, which include benefits like  t the acquisition date, when the outstanding equity-
A reversal of the temporary difference and it is probable
others providing similar services are measured at the
salaries, wages, short-term compensated absences and settled share-based payment transactions held by the that the temporary difference will not reverse in the
fair value of the equity instruments at the grant date.
performance incentives and are recognised as expenses employees of an acquiree are not exchanged by the Group foreseeable future. Deferred tax assets arising from
in the period in which the employee renders the for its share-based payment transactions, the acquiree deductible temporary differences associated with such
 he fair value determined at the grant date of the equity-
T
related service. share-based payment transactions are measured at investments and interests are only recognised to the
settled share-based payments is expensed on a straight-
their market-based measure at the acquisition date. If extent that it is probable that there will be sufficient
line basis over the vesting period, based on the Group’s
3.9.2 Post-employment benefits the share-based payment transactions have vested by taxable profits against which to utilise the benefits of
estimate of equity instruments that will eventually vest,
ayments to def ined contr ibution retirement
P the acquisition date, they are included as part of the the temporary differences can be utilised and they are
with a corresponding increase in equity. At the end of
benefit plans are recognised as an expense when non-controlling interest in the acquiree. However, if expected to reverse in the foreseeable future.
each reporting period, the Group revises its estimate of
employees have rendered service entitling them to the share-based payment transactions have not vested
the number of equity instruments expected to vest. The
the contributions. by the acquisition date, the market-based measure of The carrying amount of deferred tax assets is reviewed
impact of the revision of the original estimates, if any,
the unvested share-based payment transactions is at the end of each reporting period and reduced to
is recognised in statement of profit and loss such that
 or defined benefit retirement plans, the cost of
F allocated to the non-controlling interest in the acquiree the extent that it is no longer probable that sufficient
the cumulative expense reflects the revised estimate,
providing benefits is determined using the projected based on the ratio of the portion of the vesting period taxable profits will be available to allow all or part of
with a corresponding adjustment to the equity-settled
unit credit method, with actuarial valuations being completed to the greater of the total vesting period or the asset to be recovered.
employee benefits reserve.
carried out at the end of each annual reporting period. the original vesting period of the share-based payment
Remeasurement, comprising actuarial gains and transaction. The balance is recognised as remuneration  eferred tax liabilities and assets are measured at
D
3.10.2 C
 ash setted share-based payment transactions
losses, the effect of the changes to the asset ceiling (if cost for post-combination service. the tax rates that are expected to apply in the period
of the Company
applicable) and the return on plan assets (excluding in which the liability is settled or the asset realised,
The fair value of the amount payable to employees
net interest), is reflected immediately in the balance 3.11 Taxation based on tax rates (and tax laws) that have been
in respect of cash settled share based payments is
sheet with a charge or credit recognised in other enacted or substantively enacted by the end of the
recognised as an expense with the corresponding I ncome tax expense represents the sum of the current
comprehensive income in the period in which they reporting period.
increase in liabilities, over the period during which tax payable and deferred tax.
occur. Past service cost is recognised in statement of the employees becoming unconditionally entitled to
profit and loss in the period of a plan amendment. Net  he measurement of deferred tax liabilities and assets
T
payment. The liability is remeasured at each reporting
interest is calculated by applying the discount rate at reflects the tax consequences that would follow from
date and at settlement date based on the fair value of

136 | Annual Report 2021-22 | 137

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

the manner in which the Group expects, at the end of capitalised in accordance with the Group’s accounting Building : 20 years to 30 years properties generally have a useful life of 25-60 years.
the reporting period, to recover or settle the carrying policy. Such properties are classified to the appropriate The useful life has been determined based on technical
amount of its assets and liabilities. categories of property, plant and equipment when General plant and machinery : 4 years to 20 years evaluation performed by the management’s expert.
completed and ready for intended use. Subsequent Furniture and fixtures : 5 years to 16 years
 eferred tax assets include Minimum Alternate Tax
D expenditure is capitalised only if it is probable that Invetsment poperties are derecognised on disposal
(MAT) paid in accordance with the tax laws in India, the future economic benefits associated with the Office equipment : 3 years to 6 years or when the investment properties are permanently
which is likely to give future economic benefits in the expenditure will flow to the group. Depreciation of withdrawn from use and no future economic benefits
form of availability of set-off against future tax liability. these assets, on the same basis as other property Motor vehicles : 8 years are exepcted from its disposal. The gains or losses from
Accordingly, MAT is recognised as deferred tax asset assets, commences when the assets are ready for their the disposal of investment properties are determined
in the Balance sheet when the asset can be measured intended use. Computers and data : 3 years to 6 years as difference between the carrying amount of the
reliably and it is probable that the future economic processing equipment investment properties and the net disposal proceeds
benefit associated with the asset will be realised.  he non refundable payments made with respect to
T and are recognised in the statement of profit or loss in
Freehold land is not depreciated. the period in which it is disposed.
Land taken on finance lease (where there is an option
 urrent and deferred tax are recognised in statement of
C to purchase the same at the end of the lease period)
profit and loss, except when they relate to items that are Individual assets costing less than H 5,000 are 3.14 Intangible assets
is classified under Property, plant and Equipment as
recognised in other comprehensive income or directly depreciated in full in the year of purchase.
“Lease hold Land”. 3.14.1 Intangible assets acquired separately
in equity, in which case, the current and deferred tax
Intangible assets with finite useful lives that are
are also recognised in other comprehensive income or  n item of property, plant and equipment is
A
 epreciation is recognised so as to write off the cost of
D acquired separately are carried at cost less accumulated
directly in equity respectively. Where current tax or derecognised upon disposal or when no future
assets (other than freehold land and properties under amortisation and accumulated impairment losses.
deferred tax arises from the initial accounting for a economic benefits are expected to arise from the
construction) less their residual values over their useful Amortisation is recognised on a straight-line basis over
business combination, the tax effect is included in the continued use of the asset. Any gain or loss arising on
lives, using the straight-line method. The estimated their estimated useful lives. The estimated useful life
accounting for the business combination. the disposal or retirement of an item of property, plant
useful lives, residual values and depreciation method and amortisation method is reviewed at the end of
and equipment is determined as the difference between
are reviewed at the end of each reporting period, with each reporting period, with the effect of any changes
3.11.2.1 Deferred Tax on Undistributed Earnings the sales proceeds and the carrying amount of the
the effect of any changes in estimate accounted for on in estimate being accounted for on a prospective basis.
W hen only a portion of undistributed earnings is asset and is recognised in statement of profit and loss.
a prospective basis. Intangible assets with indefinite useful lives that are
remitted to the parent entity by its subsidiary, the acquired separately are carried at cost less accumulated
parent recognises a deferred tax liability only for the When an item of property, plant and equipment is
 ssets held under finance leases are depreciated over
A impairment losses (if any).
portion of the undistributed earnings expected to be acquired in exchange for a non-monetary asset or assets,
remitted in the foreseeable future. their expected useful lives on the same basis as owned or a combination of monetary and non-monetary assets,
3.14.2 Internally-generated intangible assets -
assets. However, when there is no reasonable certainty the cost of that item is measured at fair value (even if the
research and development expenditure
3.11.2.2 Deferred Tax on Unrealised Profits that ownership will be obtained by the end of the lease entity cannot immediately derecognise the asset given
Expenditure on research activities is recognised as an
The intragroup elimination is made as a consolidation term, assets are depreciated over the shorter of the up) unless the exchange transaction lacks commercial
expense in the period in which it is incurred.
adjustment and not in the financial statements of any lease term and their useful lives. substance or the fair value of neither the asset received
individual reporting entity. Therefore, the elimination nor the asset given up is reliably measurable. If the
 n internally-generated intangible asset arising from
A
will result in the creation of a temporary difference,  epreciation on property, plant and equipment has
D acquired item is not measured at fair value, its cost is
development (or from the development phase of an
as far as the group is concerned, between the carrying been provided on the straight-line method as per the measured at the carrying amount of the asset given up.
internal project) is recognised if, and only if, all of the
amount of the inventories in the consolidated financial useful life prescribed in Schedule II to the Companies following have been demonstrated:
statements and the tax base (assumed to be the Act, 2013 except in respect of the following categories Depreciation methods, useful lives and residual values
carrying amount in the purchaser’s individual financial of assets, in whose case the life of the assets has been are reviewed at each financial year-end and adjusted
· 
the technical feasibility of completing the
statements). The deferred tax effects arising in respect assessed to be different and are as under based on if appropriate.
intangible asset so that it will be available for use
of this temporary difference is recognised. The tax technical advice, taking into account the nature of the or sale;
rate used while recognising the deferred tax balance asset, the estimated usage of the asset, the operating 3.13 Investment property
arising from the elimination of unrealised profits on conditions of the asset, past history of replacement, Properties that is held for long-term rentals or for · the intention to complete the intangible asset and
intragroup transactions is determined by reference to anticipated technological changes, manufacturers capital appreciation or both, and that is not occupied use or sell it;
the tax rate in the purchaser’s jurisdiction where the warranties and maintenance support, etc.: by the Group, is classified as investment property.
temporary difference will reverse. Investment property is measured initially at its · the ability to use or sell the intangible asset;
Dies and punches : 4 years cost, including related transaction costs and where
3.12 Property, plant and equipment applicable borrowing costs. Subsequent expenditure · how the intangible asset will generate probable
 roperty, plant and equipment held for use in the
P Mobile phones : 3 years is capitalised to the asset’s carrying amount only when future economic benefits;
production or supply of goods or services, or for it is probable that future economic benefits associated
administrative purposes, are stated in the consolidated Certain factory buildings : 18 years with the expenditure will flow to the group and the cost · the availability of adequate technical, financial
balance sheet at cost less accumulated depreciation of the item can be measured reliably. All other repairs and other resources to complete the development
and accumulated impairment losses (if any). Freehold land is not depreciated. and maintenance costs are expensed when incurred. and to use or sell the intangible asset; and
When part of the investment property is replaced, the
 roperties in the course of construction for production,
P  epreciation on property, plant and equipment of the
D carrying amount of the replaced part is derecognised. · the ability to measure reliably the expenditure
supply or administrative purposes are carried at cost, Group’s foreign subsidiaries has been provided on attributable to the intangible asset during its
less any impairment loss. Cost includes professional straight-line method as per the estimated useful life Investment properties are depreciated using the straight development.
fees and, for qualifying assets, borrowing costs of such assets as follows: line method over their estimated useful lives. Investment

138 | Annual Report 2021-22 | 139

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

 he amount initially recognised for internally-generated

T not constitute a financing transaction. For all other 3.16 Inventories the obligations under the contract exceed the economic
intangible assets is the sum of the expenditure financial assets, expected credit losses are measured at benefits expected to be received from the contract.
incurred from the date when the intangible asset first an amount equal to the twelve-month expected credit Inventories are valued at the lower of cost and the
meets the recognition criteria listed above. Where no losses or at an amount equal to the life time expected net realisable value after providing for obsolescence 3.17.2 Contingent liabilities
internally-generated intangible asset can be recognised, credit losses if the credit risk on the financial asset has and other losses, where considered necessary. Cost C ontingent liabilities are disclosed in notes when
development expenditure is recognised in statement increased significantly, since initial recognition. includes all charges in bringing the goods to the there is a possible obligation that arises from past
profit and loss in the period in which it is incurred. point of sale, including octroi and other levies, transit events and whose existence will be confirmed only
3.15.2 Impairment of goodwill and investments in insurance and receiving charges. Work-in-progress by the occurrence or non-occurrence of one or more
 ubsequent to initial recognition, internally-generated
S associates and joint ventures: Refer notes 3.2 and 3.3. and finished goods include appropriate proportion of uncertain future events not wholly within the control
intangible assets are reported at cost less accumulated overheads. Cost is determined as follows: of the entity.
amortisation and accumulated impairment losses, 3.15.3 Impairment of non-financial assets other than
on the same basis as intangible assets that are  aw materials, packing materials, stores and spares:
R 3.18 Financial instruments
goodwill
acquired separately. weighted average basis
At the end of each reporting period, the Group reviews 3.18.1 Financial assets and financial liabilities
the carrying amounts of its tangible and intangible Financial assets and financial liabilities are recognised
3.14.3 Intangible assets acquired in a business  ork-in progress: at material cost and an appropriate
W
assets to determine whether there is any indication when a group entity becomes a party to the contractual
combination share of production overheads
that those assets have suffered an impairment loss. If provisions of the instruments.
Intangible assets acquired in a business combination any such indication exists, the recoverable amount of
and recognised separately from goodwill are initially  inished goods: material cost and an appropriate share
F
the asset is estimated in order to determine the extent Initial recognition and measurement:
recognised at their fair value at the acquisition date of production overheads, wherever applicable
of the impairment loss (if any). When it is not possible F inancial assets and financial liabilities are initially
(which is regarded as their cost). to estimate the recoverable amount of an individual
Stock-in trade: weighted average basis measured at fair value. Transaction costs that are
asset, the Group estimates the recoverable amount of directly attributable to the acquisition or issue of
 ubsequent to initial recognition, intangible assets
S the cash-generating unit to which the asset belongs.
 et realisable value is the estimated selling price in the
N financial assets and financial liabilities (other than
acquired in a business combination are reported at When a reasonable and consistent basis of allocation
ordinary course of business, less the estimated costs financial assets and financial liabilities at fair value
cost less accumulated amortisation and accumulated can be identified, corporate assets are also allocated
of completion and selling expenses. The net realisable through profit or loss) are added to or deducted from the
impairment losses, on the same basis as intangible to individual cash-generating units, or otherwise they
value of work-in-progress is determined with reference fair value of the financial assets or financial liabilities,
assets that are acquired separately. are allocated to the smallest group of cash-generating
to the selling prices of related finished products. as appropriate, on initial recognition. Transaction costs
units for which a reasonable and consistent allocation directly attributable to the acquisition of financial
3.14.4 Derecognition of intangible assets basis can be identified.
3.17 Provisions assets or financial liabilities at fair value through profit
An intangible asset is derecognised on disposal, or when
or loss are recognised immediately in statement of
no future economic benefits are expected from use or Intangible assets with indefinite useful lives and  rovisions are recognised when the Group has a present
P profit and loss.
disposal. Gains or losses arising from derecognition intangible assets not yet available for use are tested obligation (legal or constructive) as a result of a past
of an intangible asset, measured as the difference for impairment at least annually, and whenever there event, it is probable that the Group will be required Subsequent measurement:
between the net disposal proceeds and the carrying is an indication that the asset may be impaired. to settle the obligation, and a reliable estimate can be Financial assets at amortised cost
amount of the asset, are recognised in statement of made of the amount of the obligation. F inancial assets are subsequently measured at

profit and loss when the asset is derecognised.  ecoverable amount is the higher of fair value less
R amortised cost if these financial assets are held within
costs of disposal and value in use. In assessing value  he amount recognised as a provision is the best
T a business whose objective is to hold these assets in
3.14.5 Useful lives of intangible assets in use, the estimated future cash flows are discounted estimate of the consideration required to settle the order to collect contractual cash flows and contractual
Intangible assets are amortised over their estimated to their present value using a pre-tax discount rate present obligation at the end of the reporting period, terms of financial asset give rise on specified dates to
useful life on straight line method as follows: that reflects current market assessments of the time taking into account the risks and uncertainties cash flows that are solely payments of principal and
value of money and the risks specific to the asset for surrounding the obligation. When a provision is interest on the principal amount outstanding.
Registration and Brands : 5 years to 25 years which the estimates of future cash flows have not been measured using the cash flows estimated to settle the
adjusted. present obligation, its carrying amount is the present  inancial assets at fair value through other
F
Software Licenses : 5 years value of those cash flows (when the effect of the time comprehensive income
If the recoverable amount of an asset (or cash-generating value of money is material). F inancial assets are measured at fair value through
 ustomer/supply contracts are amortised over the period
C unit) is estimated to be less than its carrying amount, the other comprehensive income if these financial assets
of the contract or useful life, whichever is less. carrying amount of the asset (or cash-generating unit) is  hen some or all of the economic benefits required
W are held within business whose objective is achieved
reduced to its recoverable amount. An impairment loss is to settle a provision are expected to be recovered by both collecting contractual cash flows on specified
I ntangible assets with indefinite useful lives are not recognised immediately in statement of profit and loss. from a third party, a receivable is recognised as an dates that are solely payments of principal and interest
amortized and tested for impairment annually. asset if it is virtually certain that reimbursement will on the principal amount outstanding and selling
 hen an impairment loss subsequently reverses, the
W be received and the amount of the receivable can be financial assets.
3.15 Impairment of assets carrying amount of the asset (or a cash-generating unit) measured reliably.
3.15.1 Impairment of financial assets: is increased to the revised estimate of its recoverable  he Group has made an irrevocable election to present
T
The Group assesses at each date of balance sheet, amount, but so that the increased carrying amount 3.17.1 Onerous contracts in other comprehensive income subsequent changes
whether a financial asset or a group of financial assets does not exceed the carrying amount that would Present obligations arising under onerous contracts are in the fair value of equity instruments in Outlook
is impaired. Ind AS 109 requires expected credit have been determined had no impairment loss been recognised and measured as provisions. An onerous Therauputics Inc. and Sonnet Biotherapeutics Holdings
losses to be measured though a loss allowance. The recognised for the asset (or cash-generating unit) contract is considered to exist where the Group has a Inc. which is not held for trading.
Group recognises lifetime expected losses for all in prior years. A reversal of an impairment loss is contract under which the unavoidable costs of meeting
contract assets and / or all trade receivables that do recognised immediately in statement of profit and loss.

140 | Annual Report 2021-22 | 141

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

 inancial assets at fair value through profit or loss

F effective portion of changes in the fair value of the 3.18.5 Written put options issued to the non- Dilutive potential equity shares are deemed converted
F inancial assets are measured at fair value through derivative is recognized in the cash flow hedging controlling interests: as of the beginning of the year, unless issued at a later
profit or loss unless it measured at amortised cost or fair reserve being part of other comprehensive income. The Group has issued written put option to non- date. In computing diluted earnings per share, only
value through other comprehensive income on initial Any ineffective portion of changes in the fair controlling interests in certain subsidiaries of the potential equity shares that are dilutive and that either
recognition. The transaction cost directly attributable value of the derivative is recognized immediately Group in accordance with the terms of underlying reduces earnings per share or increases loss per share
to the acquisition of financial assets and liabilities in the statement of profit and loss. If the hedging agreement with such option holders. Should the option are included. The number of shares and potentially
at fair value through profit or loss are immediately relationship no longer meets the criteria for hedge be exercised, the Group has to settle such liability by dilutive equity shares are adjusted retrospectively for
recognised in the statement of profit and loss. accounting, then hedge accounting is discontinued payment of cash. all periods presented in case of share splits.
prospectively. If the hedging instrument expires
Financial liabilities or is sold, terminated or exercised, the cumulative Accounting on initial recognition: 3.22 Operating segments
F inancial liabilities are measured at amortised cost gain or loss on the hedging instrument recognized The amount that may become payable under the option
 n operating segment is a component of the Group
A
using effective interest method. For trade and other in cash flow hedging reserve till the period the on exercise is recognised as a financial liability at its
that engages in business activities from which it may
payables maturing within one year from the balance hedge was effective remains in cash flow hedging present value with a corresponding charge directly to
earn revenues and incur expenses, including revenues
sheet date, the carrying amounts approximate fair reserve until the underlying transaction occurs. the shareholders’ equity.
and expenses that relate to transactions with any of
value due to the short maturity of these instruments. The cumulative gain or loss previously recognized
the Group’s other components, and for which discrete
in the cash flow hedging reserve is transferred Subsequent measurement:
financial information is available. Operating segments
3.18.2 Equity instruments to the statement of profit and loss upon the The liability is subsequently accreted through finance
are reported in a manner consistent with the internal
A n equity instrument is a contract that evidences occurrence of the underlying transaction. If the charges recognised under exceptional items in the
reporting provided to the chief operating decision
residual interest in the assets of the company after forecasted transaction is no longer expected to statement of profit and loss upto the redemption
maker. The Chairperson and Managing Director of
deducting all of its liabilities. Equity instruments occur, then the amount accumulated in cash flow amount that is payable at the date on which the option
the Company is responsible for allocating resources
recognised by the Group are recognised at the proceeds hedging reserve is reclassified in the statement of first becomes exercisable. In the event that the option
and assessing performance of the operating segments
received net off direct issue cost. profit and loss. expires unexercised, the liability is derecognised with
and accordingly is identified as the Chief Operating
a corresponding adjustment to equity.
Decision Maker (CODM). All operating segments’
3.18.3 Derivative financial instruments and hedge b) Fair value hedge
operating results are reviewed regularly by the CODM
accounting The Group designates derivative contracts or non 3.19 Exceptional items
to make decisions about resources to be allocated to
The Group uses various derivative financial instruments derivative financial assets / liabilities as hedging
 hen an item of income or expense within profit or
W the segments and assess their performance.
such as interest rate swaps, currency swaps and forward instruments to mitigate the risk of change in
loss from ordinary activity is of such size, nature or
contracts to mitigate the risk of changes in interest fair value of hedged item due to movement
incidence that their disclosure is relevant to explain 3.23 Recent accounting developments
rates and foreign exchange rates. Such derivative in interest rates, foreign exchange rates and
the performance of the Group for the year, the nature
financial instruments are initially recognised at fair commodity prices.  inistry of Corporate Affairs (“MCA”) notifies new
M
and amount of such items are disclosed as exceptional
value on the date on which a derivative contract is standard or amendments to the existing standards
items.
entered into and are also subsequently measured at fair Changes in the fair value of hedging instruments under Companies (Indian Accounting Standards)
value. Derivatives are carried as financial assets when and hedged items that are designated and qualify Rules as issued from time to time. On March 23, 2022,
3.20 Cash and cash equivalents
the fair value is positive and as financial liabilities as fair value hedges are recorded in the statement MCA amended the Companies (Indian Accounting
when the fair value is negative. of profit and loss. If the hedging relationship no  ash and cash equivalents consist of cash on hand
C Standards) Amendment Rules, 2022, applicable from
longer meets the criteria for hedge accounting, the and cash at banks, demand deposits and short-term April 1, 2022, as below
 ny gains or losses arising from changes in the fair
A adjustment to the carrying amount of a hedged deposits with an original maturity of three months
value of derivatives are taken directly to the statement item for which the effective interest method is or less, highly liquid investments that are readily Ind AS 103 – Reference to Conceptual Framework
of profit and loss, except for the effective portion used is amortised to statement of profit and loss convertible into known amounts of cash and which are The amendments specify that to qualify for recognition
of cash flow hedges which is recognised in Other over the period of maturity. subject to insignificant risk of changes in value. Bank as part of applying the acquisition method, the
Comprehensive Income and later to the statement of overdrafts that are repayable on demand and form an identifiable assets acquired and liabilities assumed
profit and loss when the hedged item affects profit or 3.18.4 H edges of net investments in foreign operations integral part of our cash management are included must meet the definitions of assets and liabilities in the
loss or treated as basis adjustment if a hedged forecast Hedges of net investments in foreign operations are as a component of cash and cash equivalents for the Conceptual Framework for Financial Reporting under
transaction subsequently results in the recognition of accounted for similarly to cash f low hedges. Any purpose of the statement of cash flows. Indian Accounting Standards (Conceptual Framework)
a non-financial assets or non-financial liability. gain or loss on the hedging instrument relating to issued by the Institute of Chartered Accountants of
the effective portion of the hedge is recognised in 3.21 Earnings per share India at the acquisition date. These changes do not
 edges that meet the criteria for hedge accounting are
H other comprehensive income and accumulated under significantly change the requirements of Ind AS 103.
 asic Earnings Per Share (‘EPS’) is computed by dividing
B
accounted for as follows: the heading of foreign currency translation reserve. The Company does not expect the amendment to have
the net profit attributable to the equity shareholders
The gain or loss relating to the ineffective portion is any significant impact in its financial statements.
by the weighted average number of equity shares
a) Cash flow hedge recognised immediately in statement of profit and loss,
outstanding during the year. Diluted earnings per share
The Group designates derivative contracts or non and is included in the ‘Other income’ line item. Ind AS 16 – Proceeds before intended use
is computed by dividing the net profit by the weighted
derivative financial assets / liabilities as hedging The amendments mainly prohibit an entity from

average number of equity shares considered for deriving
instruments to mitigate the risk of movement in  ains and losses on the hedging instrument relating to
G deducting from the cost of property, plant and
basic earnings per share and also the weighted average
interest rates and foreign exchange rates for foreign the effective portion of the hedge accumulated in the equipment amounts received from selling items
number of equity shares that could have been issued
exchange exposure on highly probable future cash foreign currency translation reserve are reclassified produced while the company is preparing the asset for
upon conversion of all dilutive potential equity shares.
flows attributable to a recognised asset or liability to statement of profit and loss on the disposal of the its intended use. Instead, an entity will recognise such
or forecast cash transactions. When a derivative is foreign operation.
designated as a cash flow hedging instrument, the

142 | Annual Report 2021-22 | 143

144 |
Contract
Notes

equipment in its financial statements.

I nd AS 37 – Onerous Contracts - Costs of Fulfilling a

either be incremental costs of fulfilling that contract

contracts. The amendment is essentially a clarification

Company does not expect the amendments to have

have any significant impact in its financial statements.

any impact in its recognition of its property, plant and
sales proceeds and related cost in profit or loss. The

the contract’. Costs that relate directly to a contract can

a contract comprises the ‘costs that relate directly to

and the Company does not expect the amendment to

allocation of other costs that relate directly to fulfilling
(examples would be direct labour, materials) or an
The amendments specify that that the ‘cost of fulfilling’


financial statements.
forming part of the consolidated financial statements for the year ended March 31, 2022

any significant impact in its financial statements

Ind AS 116 – Annual Improvements to Ind AS (2021)

Ind AS 109 – Annual Improvements to Ind AS (2021)

lessor in order to resolve any potential confusion

reimbursement of leasehold improvements by the
The amendments remove the illustration of the
assessing whether to derecognise a financial liability.
when it applies the ‘10 percent’ test of Ind AS 109 in

the amendment to have any significant impact in its

arise because of how lease incentives were described
regarding the treatment of lease incentives that might
The amendment clarifies which fees an entity includes

in that illustration. The Company does not expect

The Company does not expect the amendment to have

Note No. 04 (i). Property, plant and equipment

H In Million

Gross block Accumulated depreciation Net block

Notes

Particulars
Strides Pharma Science Limited

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
fixtures 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
Office 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.
forming part of the consolidated financial statements for the year ended March 31, 2022

Annual Report 2021-22 | 145

Financial Statements
 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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

H In Million

2,029.78
2,467.29
-
4.34
2,029.78

H In Million

345.70
2,102.67
2,448.37
31-Mar-21
April 1, 2021
H In Million As at

Net block
Amount in CWIP for a period of
CWIP Less than 1 More than 3 Total

1,758.86
2,029.78
-
-
1,758.86
2,029.78
1 - 2 years 2 - 3 years
year years March 31, 2022
As on March 31, 2022
As at

1,864.67
2,330.65
31-Mar-22
465.98
Projects in progress 464.76 48.15 41.11 8.27 562.29
Projects temporarily suspended - - - - -

559.94
452.08
87.99
87.99
647.93
540.07
March 31, 2022
As on March 31, 2021 As at
Projects in progress 1,624.53 559.95 42.24 49.30 2,276.02
Projects temporarily suspended - - - - -

(196.02)
(16.70)
-
-
(196.02)
(16.70)
Accumulated amortisation
De-recognition
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.

293.15
271.98
-
4.34
10.73 293.15
(5.83) 276.32
the year
Amortisation for

10.73
(5.83)
-
-
regroupings
differences and
currency exchange
Effects of foreign

452.08
202.63
87.99
83.65
540.07
286.28
April 1, 2021
As at

2,318.80
2,481.86
87.99
87.99
(829.82) 2,406.79
(180.32) 2,569.85
March 31, 2022
As at

(829.82)
(180.32)
-
-
De-recognition

Gross block

598.19
57.43
-
-
598.19
57.43
the year
Additions during

68.57
(65.17)
-
-
68.57
(65.17)
regroupings
differences and
currency exchange
Effects of foreign

2,481.86
2,669.92
87.99
87.99
2,569.85
2,757.91
April 1, 2021
As at

(i) Right-of-use assets

Note No. 05 Leases

(ii) Lease Liabilities

Office equipments

Previous year

Non- Current
Buildings
Particulars

Particulars
Current
Total
146 | Annual Report 2021-22 | 147
 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(iii) Amounts Recognised in the statement of Profit or Loss (iii) Details of assets held by Trust and for capital appreciation and not given under lease:
H In Million H In Million

Particulars 31-Mar-22 31-Mar-21 Gross block Net block

Particulars
Amortisation Charge of Right-Of-Use asset 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21

Buildings 293.15 271.98 Buildings 7.72 7.72 3.58 4.00

Office Equipment - 4.34 Total 7.72 7.72 3.58 4.00

Total Depreciation 293.15 276.32

Less: Capitalised (10.03) (48.10)
(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
Net Depreciation charged to statement of profit and loss 283.12 228.22
(previous year: H 1,579 Million) on the basis of a valuation carried out by independent valuers. The said
Interest Expense (Included in Finance Cost) 176.62 188.85 valuers are registered with the authority which governs valuers in India and have appropriate qualifications
Less: Interest capitalized (8.15) (40.11) and relevant experience in the valuation of properties in the relevant locations. The fair value has been
Net Interest charged to statement of profit and loss 168.47 148.74 catergorised as level 3 hierarchy based on the inputs used in valuation technique. The inputs used are as
Other Income on account of lease modification 18.73 -
follows:
Other expenses relating to leases, not included in lease payments 80.89 71.96
• 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
(iv) Total cash outflow
H In Million • Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the
Particulars 31-Mar-22 31-Mar-21 property, and prevailing market condition.
Buildings 450.39 370.98
(v) Refer note 22 for details of investment properties pledged as security towards borrowings.
Office equipments - -
450.39 370.98
(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 (vii) Amounts recognised in profit or loss for investment properties
Gross block Accumulated depreciation Net block H In Million

Particulars 31-Mar-22 31-Mar-21

during the year

during the year

March 31, 2022

March 31, 2022

March 31, 2022

March 31, 2021

Eliminated on

Rental income 60.33 76.99

Depreciation
April 1, 2021

April 1, 2021

disposals of
for the year

Particulars
Additions

Disposals

Gain on sale of investment property 104.97 -

assets

Depreciation expense (25.59) (45.67)

As at

As at

As at
As at

As at

As at
Profit from investment properties 139.71 31.32
Land 147.27 - 115.96 31.31 - - - - 31.31 147.27
147.27 - - 147.27 - - - - 147.27 147.27 Note No. 07 Goodwill
H In Million
Building 820.68 - 710.23 110.45 285.60 25.59 301.16 10.03 100.42 535.08
820.68 - - 820.68 239.93 45.67 285.60 535.08 580.75 Effects of
Acquisition
foreign Derecognised
Total 967.95 - 826.19 141.76 285.60 25.59 301.16 10.03 131.73 682.35 As at through As at
Particulars currency on disposal of
April 1, 2021 business March 31, 2022
Previous year 967.95 - - 967.95 239.93 45.67 - 285.60 682.35 exchange business
combinations
differences

Goodwill 4,805.40 80.48 - (26.81) 4,859.07
Notes: 4,285.58 (33.00) 552.82 - 4,805.40
(i) Figures in italics relates to previous year.
Notes:
(ii) Details of assets given under an operating lease: (i) Figures in italics relates to previous year.
H In Million

Gross block Net block (ii) Allocation of goodwill to cash generating units (CGU):
Particulars
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Goodwill has been allocated for impairment testing purposes to the following cash-generating units:
Freehold Land 31.31 147.27 31.31 147.27
Buildings 102.73 812.96 96.84 531.08 - United States of America (USA)
Total 134.04 960.23 128.15 678.35
- Other regulated markets

- Emerging markets

- Institutional business

148 | Annual Report 2021-22 | 149

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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: March 31, 2021

349.67

2,652.51
H In Million

205.56

1,897.11
622.26

266.94
363.00
444.46
3,987.44
As at
H In Million

Cash generating units 31-Mar-22 31-Mar-21

Net block
United States of America (USA) 3,143.22 3,070.41 March 31, 2022

409.15

2,620.45
349.67

2,652.51
540.35

622.26
331.38
363.00
3,901.33
3,987.44
Other regulated markets 1,355.45 1,387.79 As at
Emerging markets 360.40 347.20
Total 4,859.07 4,805.40
As at March 31, 2022

366.60

37.93 1,076.67
309.62

730.79
272.50

185.39
804.10
661.99
66.12 2,519.87
- 1,887.79
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 note 40

28.19
-

-
a businesses referred in
rate. Key assumptions used for determining the said value in use of each cash generating unit is as follows: Eliminated on disposal of

Accumulated depreciation
H In Million
of assets

1.08
-

3.65
-

0.07
4.73
0.07
Other Eliminated on disposals
Emerging Institutional
Cash generating units US regulated
Markets business
markets Amortisation for the year

56.98

286.97

84.87

168.49
64.50

288.32

85.31

174.59
105.62 597.31
1,386.21 (111.07) 612.72
Discount Rate 10.68% - 16.33% 9.95% - 15.81% 11.92% 16.51%
Growth Rate (used for determining Terminal Value) 2%- 5% 2% - 5% 3% 5%

(ii) Refer note 22 for details of other intangible assets pledged as security towards borrowings.
differences

97.92

2.24

5.46
-

566.97 (124.50)

13.74

(0.31)
The discount rates used are based on weighted average cost of capital. currency exchange
Effects of foreign

The growth rates of the above cash generating units have been considered based on the market conditions As at April 1, 2021

309.62

730.79

185.39

661.99
245.12

86.34

487.78
1,887.79
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 As at March 31, 2022

775.75

3,697.12
659.29

3,383.30
812.85

807.65
1,135.48
1,024.99
30.93 189.83 140.26 6,421.20
- 5,875.23
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 note 40

189.83 111.37
-

-
-

-
28.89
-
growth rate), based on reasonable assumptions, did not identify any probable scenario in which the recoverable
of business as referred in
Derecognised on disposal
amount of the CGU would decrease below its carrying amount.
referred in note 39

20.20
-

397.90
-
4.26

0.66 422.36
business combinations
Acquisition through

Gross block
year

18.80

0.59
-

-
12.13
0.07
Disposals during the

Note No. 08 (i). Other intangible assets

(i) Figures in italics relates to previous year.

year

116.46

208.61

51.51

1,089.22
0.25

12.74
142.87
91.85
311.09
4,200.28 (149.17) 1,402.42
Additions during the

differences

202.65

2,464.08 (189.61)
4.95

43.73
8.64
(3.29)
216.24
currency exchange
Effects of foreign

As at April 1, 2021

659.29

450.68

3,383.30

807.65

353.28
1,024.99
932.24
5,875.23
- Software licenses
Supply Contracts
- Registration and

- Registration and
generated:

- Customer /
- Internally

Previous year
- Others:
brands

brands
Particulars

Notes:
Total
150 | Annual Report 2021-22 | 151
 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 08 (ii). Intangible assets under development aging schedule Notes: of Stelis have performed annual impairment
assessment of the carrying value of the assets of
H In Million (a) The Management of Stelis Biopharma Limited
the Cash Generating Unit (CGU) (which included
(Stelis) have performed annual impairment
Amount in CWIP for a period of the Vaccine facility) as at March 31, 2022. The
assessment of the carrying value of the assets of
Intangible assets under development Less than 1 More than 3 Total ‘value in use’ of the CGU has been determined by
1 - 2 years 2 - 3 years the Cash Generating Unit (CGU) (which included
year years the external valuation experts using discounted
the CDMO business and intangible assets under
As on March 31, 2022 cash flow approach. Based on such valuation, the
development) as at March 31, 2022. The “”value
Projects in progress 462.47 244.16 1,095.94 545.92 2,348.49 Group has assessed that there is no impairment.
in use”” of the CGU has been determined by the
Projects temporarily suspended - - - - - external valuation experts using discounted cash
Determination of value in use involves significant
As on March 31, 2021 flow approach. Based on such valuation, the Group
estimates and assumptions that affect the Vaccine
Projects in progress 336.74 1,137.02 351.45 372.46 2,197.67 has assessed that there is no impairment.
facillity’s expected future cash f lows. These
Projects temporarily suspended - - - - - estimates and assumptions, primarily include, but
Determination of value in use involves significant
are not limited to:
There are no intangibles assets under development, whose completion is overdue or has exceeded its cost estimates and assumptions that affect the
compared to its original plan as at March 31, 2022 and March 31, 2021. reporting CGU’s expected future cash flows. These
- generation of revenues in due course from the
estimates and assumptions, primarily include, but
Vaccine plant and contract manufacturing,
Note No. 09 Investments are not limited to:

Investments consist of the following: - plans to convert the existing vaccine plant for
- obtaining adequate financing to fulfil the
CDMO purpose,
Company’s development and commercial
(i) Investment in associates and joint ventures activities,
H In Million
- probabilities applied to the revenues which
also factors management’s best estimate of
31-Mar-22 31-Mar-21 - 
t he r isks associated w it h research,
possible delay in regulatory approvals,
(A) Investments in associates under equity method*: development and obtaining reg ulator y
Equity shares, unquoted
approvals of the Company’s products,
- ability to enforce the existing contract with
- 11,089,320 (As at March 31, 2021: 739,288 of H 10 each) shares of Re 1 each fully 4,558.44 4,886.68 customer and liquidate inventories as on
- generation of revenues in due course from
paid up in Stelis Biopharma Limited, India (Refer note (a, b and c) below) balance sheet date prior to its shelf life.
the development portfolio and contract
- 1,839,900 (As at March 31, 2021: Nil) shares of Re 1 each partly paid up in Stelis 51.06 -
Biopharma Limited, India (Refer note (d and e) below) manufacturing,
- attainment of profitable operations,
- 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 - attainment of profitable operations and
- discount rate
- 21,833,626 (As at March 31, 2021: 21,833,626) shares of USD 1 each fully paid up in 664.03 859.09
Strides Global Consumer Healthcare Limited, UK - discount factors
The expected cash flows used in computation of
- Nil (As at March 31, 2021: 4) shares of CAD 1 each fully paid up in Juno OTC Canada - - value in use are based on the probabilities applied
Preference shares, unquoted - probabilities applied to the revenues which
to the revenues which also factors management’s
also factors management’s best estimate of
- 3,734,074 (As at March 31, 2021: 3,734,074) shares of USD 0.001 each fully paid up 81.99 81.99 best estimate of possible delay in product
in Aponia Laboratories Inc, USA possible delay in product development cycle
development cycle and regulatory approvals.
Less: Provision for diminution in value of investments (81.99) (81.99)
and regulatory approvals.
Total [A] 5,273.53 5,745.77 Further, the percentage movement in key
The expected cash flows used in computation of
(B) Investments in joint ventures under equity method: assumptions that (individually) would be required
value in use are based on the probabilities applied
Equity shares, unquoted to reach the point at which the value in use
to the revenues which also factors management’s
- 2,450,000 (As at March 31, 2021: 2,450,000) shares of USD 1 each in Sihuan Strides 82.02 93.17 approximates its carrying value is given below:
best estimate of possible delay in product
(HK) Limited, HongKong development cycle and regulatory approvals.
Total [B] 82.02 93.17 - Increase in discount rate by 8.2%
Total [A+B] 5,355.55 5,838.94 Further, the percentage movement in key
- Increase in discount rate by 7.7% and nil
Aggregate book value of quoted investments - - assumptions that (individually) would be required
terminal growth rate
Aggregate market value of quoted investments - - to reach the point at which the value in use
Aggregate carrying value of unquoted investments 5,355.55 5,838.94 approximates its carrying value is given below:
(c) During the year ended 31 March 2022, Stelis has
Aggregate amount of impairment in value of investments 81.99 81.99 incurred loss of H 2,327 million and has a net
- Increase in discount rate by 6%
* The amount is net of gain / loss recognised negative working capital position amounting to
H 2,976 million, which includes the current
- Increase in discount rate by 5.5% and nil
maturities of non-current borrowings of H 3,731.55
terminal growth rate.
million as at 31 March 2022. As of 31 March 2022,
Stelis has inventories relating to Sputnik V, which
(b) Considering the current geopolitical situation
remains unsold due to geopolitical situation
between Russia and Ukraine and the subsequent
between Russia and Ukraine and sanctions on
sanctions enforced on Russia, the Management

152 | Annual Report 2021-22 | 153

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Russia and Russian Direct Investment Fund the recoverable amount based on the value in use (iii) Investments - current
(RDIF). The management of Stelis is confident of of the underlying businesses. The computation H In Million
liquidating these inventories within the shelf life uses cash f low forecasts based on the most
Particulars 31-Mar-22 31-Mar-21
in the normal course of business. Further, Stelis recently approved financial budgets and strategic
has shown growth in the Contract Development forecasts. The Group also considered the valuation Investments carried at fair value through profit and loss
and Manufacturing business (from H 213.9 million at which funds were raised by Stelis during the Investment in funds, unquoted
in FY21 to H 1,321.27 million in FY22) which is year and significant increase in its revenues - Easterngate Soarning Dragon 2 SP (Units As at March 31, 2022: Nil, March 31, 2021:133.570) - 994.12
expected to grow further in the coming years. during the current year. Accordingly, based on Total - 994.12
Stelis also proposes to monetise some of its existing the above assessment, the Group has concluded
Current investments offered as security towards borrowings - -
intangible assets under development through that no impairment provision is required in the
Highly liquid investments that are readily convertible into known amounts of cash and cash - 994.12
potential licensing / strategic partnerships. consolidated financial statements.
equivalents
Stelis has requested for temporary relaxations
for compliance with these financial covenants (d) Pursuant to the recommendation of the Board of
Note:
from the lenders as these have not been met as of Directors of Stelis on July 9, 2021 and approval of
the date of these financial statements. Also, the Members at the extraordinary general meeting held The market value of quoted investments is equal to the carrying value.
shareholders of Stelis have committed to extend on July 14, 2021, Stelis has allotted Bonus Equity
the necessary financial support against the monies Shares in the ratio of 1:2 i.e., one bonus share for Note No. 10 Loans receivable
outstanding on the partly paid shares. every two shares held in Stelis as on July 9, 2021.
Loans (unsecured) consist of the following:
Further, pursuant to the approval obtained on July
Given the mitigating factors discussed above, 14, 2021 from shareholders of Stelis, each equity
(i) Non-current loans
while there is a reasonable expectation that Stelis share of H 10 each was subdivided into 10 equity
H In Million
will be able to generate/raise adequate resources to shares of Re. 1 each.
continue operating for the foreseeable future and Particulars 31-Mar-22 31-Mar-21
that the going concern basis for the preparation of (e) During the previous year, the Group approved Considered good:
its financial statements remains appropriate, there the investment of H 1,021.14 million into Stelis, Loans to:
exists a material uncertainty in respect of Stelis’s in multiple tranches. During the year, 5% of the - Related parties (Refer note 49) 30.00 103.84
going concern. This also required the Group to approved investment value was invested into Total 30.00 103.84
undertake the Impairment assessment of the Stelis.
Group’s investment in Stelis. The Group estimated
(ii) Current loans
H In Million
(ii) Investments - non-current
H In Million Particulars 31-Mar-22 31-Mar-21

31-Mar-22 31-Mar-21
Considered good:
(A) Investments carried at fair value through other comprehensive income: Loans to:
Equity shares, unquoted - Employees 48.24 40.54
- 1,050 (As at March 31, 2021: 1,050) shares in Red Vault Investments Pty Limited, - - Total 48.24 40.54
Australia
Total [A] - - Note No. 11 Other financial assets
(B) Other investments at fair value through other comprehensive income: Other financial assets consist of the following:
Equity shares, quoted
- 217,391 (As at March 31, 2021: 217,391 shares in Outlook Therapeutics Inc., USA 29.38 35.78 (i) Non-current financial assets
- 639,430 (As at March 31, 2021: 639,430) shares in Sonnet Biotherapeutics Holdings Inc., 18.45 105.24 H In Million
USA
Particulars 31-Mar-22 31-Mar-21
Total [B] 47.83 141.02
Unsecured, considered good:
Total [A+B] 47.83 141.02
Security deposits* 380.70 284.89
Aggregate book value of quoted investments 47.83 141.02
Bank deposits with more than 12 months maturity 12.91 139.79
Aggregate market value of quoted investments 47.83 141.02
Deferred consideration receivable 57.19 5,268.22
Aggregate carrying value of unquoted investments - -
Total 450.80 5,692.90
Aggregate amount of impairment in value of investments - -
* Includes security deposit given to related parties as referred in note 49.

154 | Annual Report 2021-22 | 155

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(ii) Current financial assets H In Million

H In Million Recognised Recognised

Opening in statement in other Acquisitions Exchange Closing
Particulars 31-Mar-22 31-Mar-21 Year ended March 31, 2021
balance of profit or comprehensive / disposals differences balance
Unsecured, considered good: loss** income

Interest accrued on deposit 1.18 39.80 Deferred tax (liabilities)/assets in

relation to:
Interest accrued on loans and advances given* 5.47 14.17
Cash flow hedges 146.74 - (136.92) - - 9.82
Receivable from related parties 23.49 -
(including forward element of
Deferred consideration receivable on sale of investment 5,705.35 - forward contracts)
Derivative assets 9.08 64.54 Property, plant and equipment (523.03) (129.16) - - 17.20 (634.99)
Others: Intangible assets (481.08) 10.72 - - 3.95 (466.41)
- Gratuity claim receivables 28.81 23.29 Other financial liabilities 22.66 14.33 - - (0.57) 36.42
- Insurance claim receivable - 57.35 Others 283.48 (6.92) (26.74) - (6.74) 243.08
- Receivable from director (refer note 49)** 141.90 - Inventory 392.66 370.83 - - (0.64) 762.85
Total 5,915.28 199.15 Employee benefits 224.97 25.55 12.66 - 5.17 268.35
*Includes interest accured on loans given to related parties as referred in note 49. Merger and restructuring related 3.93 1.20 - - - 5.13
** The Company’s erstwhile Managing Director and Chief Executive Officer tendered resignation in March 2022 which has been accepted expenses
by the Board of Directors (the Board). As part of the terms of his remuneration, as approved in the Annual General Meeting dated 20 Allowance for credit losses 35.50 13.98 - - (0.07) 49.41
August 2020, he was entitled to certain amounts subject to fulfilment of certain service conditions. Consequent to his resignation 105.83 300.53 (151.00) - 18.30 273.66
and before the completion of the specified service period, the Board decided to recover amounts due to the Company based on the Tax losses 834.46 (396.30) - - (24.13) 414.03
originally approved terms of his appointment. Accordingly, in line with the requirements of Section 197(9) of the Act, the Company
MAT credit entitlement 837.30 (6.26) - - - 831.04
has recorded such excess remuneration of H 141.90 million paid as a recoverable balance as at 31 March 2022.
Total 1,777.59 (102.03) (151.00) - (5.83) 1,518.73

Note No. 12 Deferred tax balances ** 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
H In Million
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
As at As at can be measured reliably and it is probable that the future economic benefits associated with the asset will be realised.
Particulars
31-Mar-22 31-Mar-21
Deferred tax assets (net) 2,151.49 1,982.21 Note No. 13 Income tax assets (net)
Deferred tax liabilities (net) (357.19) (463.48)
The income tax asset consists of the following:
Total 1,794.30 1,518.73

H In Million
Non-current income tax assets
Recognised Recognised H In Million
Opening in statement in other Acquisitions Exchange Closing Particulars 31-Mar-22 31-Mar-21
Year ended March 31, 2022
balance of profit or comprehensive / disposals differences balance
loss** income Advance income tax (net of provisions) 1,028.99 708.37
Deferred tax (liabilities)/assets in Taxes paid under protest 593.77 593.77
relation to: Total 1,622.76 1,302.14
Cash flow hedges 9.82 - (3.19) - 0.71 7.34
(including forward element of Note No. 14 Other assets
forward contracts) Other assets (unsecured) consist of the following:
Property, plant and equipment (634.99) (76.77) - - (3.51) (715.27)
Intangible assets (466.41) 45.15 - (2.60) (16.35) (440.21) (i) Other non-current assets
Other financial liabilities 36.42 (30.98) - - 0.47 5.91 H In Million
Others 243.08 18.56 20.60 - 10.79 293.03 Particulars 31-Mar-22 31-Mar-21
Inventory 762.85 (136.42) - (25.15) 5.80 607.08 Considered good:
Employee benefits 268.35 1.67 (1.64) - - 268.38 Capital advances 25.79 141.35
Merger and restructuring related 5.13 (4.23) - - - 0.90 Prepaid expenses 32.47 55.06
expenses
Lease equalisation assets - 2.18
Allowance for credit losses 49.41 (36.97) - - 0.02 12.46 Balances with Government Authorities:
273.66 (219.99) 15.77 (27.75) (2.07) 39.62 - VAT credit / refund receivable 20.78 20.32
Tax losses 414.03 386.36 - - 11.39 811.78 - Indirect taxes paid under protest 25.78 25.78
MAT credit entitlement 831.04 111.86 - - - 942.90 Others:
Total 1,518.73 278.23 15.77 (27.75) 9.32 1,794.30 - Receivable from KIADB - 4.79
Total 104.82 249.48

156 | Annual Report 2021-22 | 157

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(ii)
Other current assets Trade receivables ageing schedule as at March 31, 2021
H In Million H In Million

Particulars 31-Mar-22 31-Mar-21 Outstanding for following periods from due date of
Considered good: payment
Particulars Unbilled Not due Less 6 More Total
Advance to suppliers 557.43 328.00 1-2 2-3
than 6 months than 3
Advance to employees 17.27 4.41 months - 1 year
years years
years
Advances to others - 7.55
Undisputed Trade receivables
Prepaid expenses 541.85 526.86
Balances with Government Authorities 831.92 904.95 - Considered Good 37.28 8,520.90 2,214.81 61.71 465.35 225.65 137.35 11,663.05
Incentives receivables 21.83 256.21 - Significant increase in credit risk - - - - - - - -
Total 1,970.30 2,027.98 - Credit impaired - - - - - 63.00 - 63.00
Disputed Trade receivables
Note No. 15 Inventories - Considered Good - - - - - - - -
H In Million
- Significant increase in credit risk - - - - - - - -
Particulars 31-Mar-22 31-Mar-21 - Credit impaired - - - - - - - -
Raw materials (including goods in transit) 5,748.88 5,516.96
37.28 8,520.90 2,214.81 61.71 465.35 288.65 137.35 11,726.05
Work-in-progress 481.86 385.62
Finished goods 2,777.28 5,359.47
Finished goods-in-transit 1,858.99 277.23
Note No. 17 Cash and cash equivalents
Stock-in-trade 636.36 244.07 H In Million
Stores and spares 234.59 223.68 Particulars 31-Mar-22 31-Mar-21
Total 11,737.96 12,007.03 Cash on hand 2.71 2.96
Balances with banks:
Note No. 16 Trade receivables - In current accounts 1,573.41 1,056.70
H In Million
- In deposit accounts 14.61 5.27
Particulars 31-Mar-22 31-Mar-21 - Funds-in-transit 116.57 193.41
Unsecured Total 1,707.30 1,258.34
Considered good* 12,495.25 11,663.05
Credit impaired - 63.00 Note No. 18 Other balances with banks
12,495.25 11,726.05
H In Million
Less: Allowance for credit loss (Refer note 51.6) (422.24) (620.18)
Total 12,073.01 11,105.87 Particulars 31-Mar-22 31-Mar-21
In deposit accounts 134.55 496.20
* Includes receivables from related parties as referred in note 49.
In earmarked accounts:
- Unpaid dividend accounts 10.92 21.68
The Group has availed bill discounting facilities from the banks which do not meet the derecognition criteria
- Unpaid shares accounts 0.33 0.33
for transfer of contractual rights to receive cashflows from the respective trade receivables since they are with
- Group gratuity accounts 0.09 1.26
recourse to the group. Accordingly as at March 31, 2022, trade receivables balances include H 804.12 Million (As
- Balance held as margin money against working capital facilities with banks 20.33 19.84
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. Total 166.22 539.31

Trade receivables ageing schedule as at March 31, 2022 Note No. 19 Equity share capital
H In Million H In Million

Particulars 31-Mar-22 31-Mar-21

Outstanding for following periods from due date of
payment Authorised
Particulars Unbilled Not due Less 6 More Total 188,370,000 equity shares of H 10/- each with voting rights 1,883.70 1,883.70
1-2 2-3
than 6 months than 3 (March 31, 2021: 188,370,000 equity shares of H 10/- each)
years years
months - 1 year years
Total 1,883.70 1,883.70
Undisputed Trade receivables
Issued, subscribed and fully paid-up
- Considered Good 65.65 10,033.11 1,523.55 256.95 108.93 361.97 145.09 12,495.25
89,790,214 equity shares of H10/- each with voting rights 897.90 896.81
- Significant increase in credit risk - - - - - - - -
- Credit impaired - - - - - - - - (March 31, 2021: 89,680,964 equity shares of H 10/- each)
Disputed Trade receivables Total 897.90 896.81
- Considered Good - - - - - - - -
- Significant 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

158 | Annual Report 2021-22 | 159

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(i) Reconciliation of number of shares and amount outstanding: (vi) Shareholding of Promoters at the end of the year:

31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21

Particulars Notes % change % change
No. of shares J In Million No. of shares J In Million S.No Promoter Name No. of % of total No. of % of total
during the during the
Equity share capital Shares shares Shares shares
year year
Equity share of H 10/- each Promoters
Balance at the beginning of the year 89,680,964 896.81 89,565,464 895.65 1 Arun Kumar Pillai 15,40,997 1.72% 11% 13,85,797 1.55% 1%
Changes in equity share capital during the 2 Devendra Kumar S 2 0.00% (100%) 88,736 0.10% 687%
year 3 K R Ravishankar 12,55,593 1.40% 0% 12,55,593 1.40% 0%
Shares issued pursuant to the exercise of 45 109,250 1.09 115,500 1.16 4 Vimal Kumar S 2,93,201 0.33% 12% 2,62,027 0.29% 2%
stock options
5 Pronomz Ventures LLP 1,69,26,147 18.85% 3% 1,64,84,247 18.38% 30%
Balance at the end of the year 89,790,214 897.90 89,680,964 896.81
Promoters Group
6 Abhaya Kumar S 57,869 0.06% - 0.00% 0%
(ii) Detail of the rights, preferences and restrictions attaching to each class of outstanding equity
7 Chaitanya D 59,882 0.07% 113% 28,175 0.03% (93%)
shares of H 10/- each:
8 Gayatri Nair 33,000 0.04% 0% 33,000 0.04% 0%
The Company has only one class of equity shares, having a par value of H10/- each. The holder of equity 9 Hemalatha Pillai 66,760 0.07% 0% 66,760 0.07% 39%
shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The 10 Jatin V 4,61,042 0.51% 0% 4,61,033 0.51% 0%
dividend proposed by the board of directors is subject to approval by the shareholders at the ensuing annual 11 Jitesh D 25,825 0.03% 0% 25,825 0.03% (93%)
general meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled 12 K R Lakshmi 1,30,365 0.15% 0% 1,30,365 0.15% 0%
to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The
13 Leela V 4,17,867 0.47% 0% 4,17,858 0.47% 0%
distribution will be in proportion to number of equity shares held by the shareholders.
14 Monisha Nitin 1,49,764 0.17% 0% 1,49,764 0.17% 3%
15 Nitin Kumar V 5,27,093 0.59% 6% 4,98,005 0.56% 0%
(iii) Details of equity shares held by each shareholder holding more than 5% of equity shares:
16 Padmakumar Karunakaran Pillai 1,86,485 0.21% 0% 1,86,485 0.21% 9%
17 Pooja Srisrimal 93,750 0.10% 0% 93,750 0.10% 0%
31-Mar-22 31-Mar-21 18 Purushothaman Pillai G 33,013 0.04% 0% 33,013 0.04% 0%
Particulars
No. of shares % No. of shares % 19 Rahul Nair 20,000 0.02% 0% 20,000 0.02% 0%
Pronomz Ventures LLP 16,926,147 18.85% 16,484,247 18.38% 20 Rajitha Gopalakrishnan 60,000 0.07% 0% 60,000 0.07% 33%
SBI Long Term Equity Fund 2,380,298 2.65% 5,798,104 6.47% 21 Rupali Jatin 1,89,826 0.21% 0% 1,89,826 0.21% 3%
Aditya Birla Sun Life Trustee Private Limited A/C 5,275,798 5.88% 6,251,740 6.97% 22 Sajitha Pillai 95,000 0.11% 0% 95,000 0.11% 19%
Aditya Birla Sun Life Pharma & Healthcare Fund 23 Sajjan D 1,76,670 0.20% (26%) 2,37,692 0.27% 42%
Life Insurance Corporation of India 4,136,701 4.61% 4,985,701 5.56% 24 Suchi Chaitanya Srisrimal 93,750 0.10% 0% 93,750 0.10% 0%
25 V. Jatin (HUF) 408 0.00% 0% 408 0.00% 0%
(iv) Details of equity shares of H 10/- each reserved for issuance:
26 V. Nitin Kumar (HUF) 500 0.00% 0% 500 0.00% 0%
27 Vimal Kumar S (HUF) 1,15,158 0.13% 0% 1,15,158 0.13% 0%
No. of shares 28 S Abhaya Kumar (HUF) 78,043 0.09% 0% 78,043 0.09% 24%
Particulars
31-Mar-22 31-Mar-21 29 Taru Mardia 14,000 0.02% 0% 14,000 0.02% 0%
Towards employee stock options under the various Strides stock option plans 2,590,700 2,602,800 30 Vibha Srisrimal 14,000 0.02% 0% 14,000 0.02% 0%
(Refer note 45)
31 Vineetha Mohanakumar Pillai 1,90,000 0.21% 0% 1,90,000 0.21% 9%
Total 2,590,700 2,602,800
32 Lakshmi Gopalakrishnan 50,000 0.06% 0% 50,000 0.06% 0%
33 Rajeshwari Amma - 0.00% - 0.00% (100%)
(v) Buy back of shares, issue of bonus shares and shares allotted as fully paid up pursuant to
Body Corporates
contract(s) without payment being received in cash.
34 Abusha Investment & 2,81,221 0.31% 0% 2,81,221 0.31% 0%
There have been no buy back of shares, issue of shares by way of bonus shares or issue of shares pursuant Manangement Services LLP
to contract without payment being received in cash for the period of five years immediately preceding the 35 Agraganya Private Trust 3,00,000 0.33% 0% - 0.00% 0%
Balance sheet date. 36 Ambemata Securities 4,81,660 0.54% 0% 4,81,660 0.54% 0%
37 Shasun Enterprises LLP (formerly 8,23,953 0.92% 0% 8,23,953 0.92% 0%
Devendra Estates LLP)
38 Shasun Leasing And Finance (P) 10,05,000 1.12% 0% 10,05,000 1.12% 0%
Limited
39 Triumph Venture Holdings LLP - 0.00% (100%) 35,937 0.04% 0%
40 Karuna Business Solutions LLP 12,25,050 1.36% 0% 12,23,500 1.36% 103%
41 Agnus Capital LLP - 0.00% 0% - 0.00% (100%)
42 Agnus holding Private Limited - 0.00% 0% - 0.00% (100%)

160 | Annual Report 2021-22 | 161

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(f) General reserve

General reserves are the retained earnings of a Group which are appropriated out of Group’s profits. General
31-Mar-22 31-Mar-21
reserve is a free reserve which can be utilised for any purpose after fulfilling certain conditions in accordance
S.No Promoter Name % change % change
No. of % of total
during the
No. of % of total
during the with the provisions of the Companies Act, 2013.
Shares shares Shares shares
year year
43 Chayadeep Properties - 0.00% 0% - 0.00% (100%) (g)
Retained earnings
44 Devendra Estates Private Limited - 0.00% 0% - 0.00% (100%) Retained earnings are the profits that the Group has earned till date, less any transfers to other reserves,
45 Karuna Ventures Private Limited - 0.00% 0% - 0.00% (100%) dividends or other distributions paid to its equity shareholders.
46 Lifecell Internatinal Private Limited - 0.00% 0% - 0.00% (100%)
(h) FVOCI equity investments reserve
47 Sequent Scientific Limited - 0.00% 0% - 0.00% (100%)
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.
Note No. 20 Other equity
H In Million
(i) Cash flow hedging reserve
Particulars Notes
As at As at The cash flow hedging reserve represents the cumulative effective portion of gains or losses (net of taxes,
31-Mar-22 31-Mar-22
if any) arising on changes in fair value of designated portion of hedging instruments entered into for cash
(A) Share application money pending allotment 20 (A) 4.06 - flow hedges.
(B) Reserves and surplus
Capital reserve 20 (B)(i) 341.00 214.84 (j) Foreign currency translation reserve
Securities premium 20 (B)(ii) 17,321.88 17,272.67 The translation reserve comprise all foreign currency differences arising from the translation of the financial
Capital redemption reserve 20 (B)(iii) 601.61 601.61 statements of foreign operations, as well as the effective portion of any foreign currency differences arising
Share options outstanding account 20 (B)(iv) 20.46 47.20 from hedges of a net investment in a foreign operation.
Equity for gross obligation 20 (B)(v) (4,063.14) (4,063.14)
General reserve 20 (B)(vi) 4,036.96 4,015.69 (k) Remeasurement of the defined benefit liabilities / (asset)
The cumulative balances of actuarial gain or loss arising on remeasurements of defined benefit plan is
Retained earnings 20 (B)(vii) 23.08 4,849.50
accumulated and recognised within this component of other comprehensive income. Items included in
(C) Items of other comprehensive income
actuarial gain or loss reserve will not be reclassified subsequently to statement of profit and loss.
FVOCI equity investments reserve 20 (C)(i) (672.14) (598.77)
H In Million
Cash flow hedging reserve 20 (C)(ii) (57.60) (197.39)
Particulars 31-Mar-22 31-Mar-21
Foreign currency translation reserve 20 (C)(iii) 5,292.36 4,887.43
Remeasurement of the defined benefit liabilities / (asset) 20 (C)(iv) (154.15) (159.84) (A) Share application money pending allotment
Total 22,694.38 26,869.80 Opening balance - -
Add: Received during the year 4.06 -
Nature and purpose of other reserve Closing balance [A] 4.06 -
(B) Reserves and surplus
(a)
Capital reserve
(i) Capital reserve
Capital reserve is created on account of Foreign Currency Convertible Bonds, business combinations and
Opening balance 214.84 425.46
demerger. It is utilised in accordance with the provisions of the Companies Act, 2013.
Less: Pursuant to acquisition from non-controlling interest (Refer note 39.2) 2.56 -
(b)
Securities premium Less: Adjustment pursuant to the scheme of merger (Refer note 50.2) - (210.62)
Securities premium is used to record the premium received on issue of shares. It is utilised in accordance Add: Pursuant to business combinations (Refer note 39) 123.60 -
with the provisions of the Companies Act, 2013. Closing balance 341.00 214.84
(ii) Securities premium
(c) Capital redemption reserve Opening balance 17,272.67 17,008.37
Capital redemption reserve is a statutory, non-distributable reserve into which the amounts are transferred Add: Adjustment pursuant to the scheme of merger (Refer note 50.2) - 210.62
following the redemption or purchase of Company’s own shares. It is utilised in accordance with the Add: Premium received on shares issued during the year 49.21 53.68
provisions of the Companies Act, 2013. Closing balance 17,321.88 17,272.67
(iii) Capital redemption reserve
(d) Share options outstanding account Opening balance 601.61 601.61
The fair value of the equity-settled share based payment transactions with employees is recognised in
Closing balance 601.61 601.61
statement of profit and loss with corresponding credit to employee stock options outstanding account. The
(iv) Share options outstanding account (Refer note 45)
amount of cost recognised is transferred to share premium on exercise of the related stock options.
Opening balance 47.20 57.24
(e) Equity for gross obligation Less: Transferred to securities premium account on exercise of ESOPs (18.18) (19.85)
The Group has issued written put option to non-controlling interests in certain subsidiaries of the Group Less: Transferred to general reserve on stock options lapse (21.27) (5.41)
in accordance with the terms of underlying agreement with such option holders. Should the option be Add: Employee stock compensation expenses (including expenses pertaining to 12.71 15.22
exercised, the Group has to settle such liability by payment of cash. On initial recognition, the amount that discontinued operations)
may become payable under the option on exercise is recognised as a financial liability at its present value Closing balance 20.46 47.20
of the redemption amount with a corresponding charge directly to the other equity.

162 | Annual Report 2021-22 | 163

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million Note No. 22 Borrowings

Particulars 31-Mar-22 31-Mar-21
Borrowings consist of the following:
(v) Equity for gross obligation
Opening balance (4,063.14) (3,840.13) (i) Non-current borrowings
H In Million
Add: Pursuant to business combinations (Refer note 39) - (223.01)
Closing balance (4,063.14) (4,063.14) Particulars 31-Mar-22 31-Mar-21
(vi) General reserve Secured
Opening balance 4,015.69 4,010.28 - Term loans from banks (Refer note (i) to (xiv) below) 6,839.68 7,890.89
Add: Transferred from share options outstanding account 21.27 5.41 - Term loans from others (Refer note (xv) and (xvi) below) 608.90 843.40
Closing balance 4,036.96 4,015.69 Unsecured
(vii) Retained earnings - Term loans from others (Refer note (xvii) to (xx) below) 907.65 91.49
Opening balance 4,849.50 2,344.23 Total 8,356.23 8,825.78
Add: Profit / (loss) for the year (4,602.11) 2,684.42
Less: Dividend on equity shares including taxes (224.31) (179.15) Details of security and terms of repayment for the non-current borrowings:
Closing balance 23.08 4,849.50 H In Million
Total Reserves and surplus [B] 18,281.85 22,938.37 Terms of repayment and security 31-Mar-22 31-Mar-21
(C) Items of other comprehensive income (i) Term loans from banks: Loan 1
(i) FVOCI equity investments reserve Long-term loan 1.71 2.86
Opening balance (598.77) (703.08) Current maturities of long-term loan 1.15 1.06
Add / (Less): Other comprehensive income for the year (net of taxes) (73.37) 104.31 Security: Hypothecation of assets procured from the term loans.
Closing balance (672.14) (598.77) Rate of interest: 7.0% to 8.0% p.a.
(ii) Cash flow hedging reserve Repayment terms: 36 to 60 equal monthly instalments.
The oustanding term as at March 31, 2022 is 19 to 44 installments.
Opening balance (197.39) (563.31)
(ii) Term loans from banks: Loan 2
Add / (Less): Other comprehensive income for the year (net of taxes) 139.79 365.92
Long-term loan 276.58 398.50
Closing balance (57.60) (197.39)
Current maturities of long-term loan 125.00 93.75
(iii) Foreign currency translation reserve
Security: Pari-Passu first charge on the fixed assets of the Company and second pari-
Opening balance 4,887.43 5,183.76
passu charge on the current assets of the Company
Add / (Less): Other comprehensive income for the year 404.93 (296.33) Rate of interest: 9.0% p.a. to 10.0% p.a.
Closing balance 5,292.36 4,887.43 Repayment terms: 48 equal monthly instalments commencing after 12 months from
(iv) Remeasurement of the defined benefit liabilities / (asset) disbursement date. The oustanding term as at March 31, 2022 is 39 installments.
Opening balance (159.84) (145.91) (iii) Term loans from banks: Loan 3
Add / (Less): Other comprehensive income for the year (net of taxes) 5.69 (13.93) Long-term loan - 33.33
Closing balance (154.15) (159.84) Current maturities of long-term loan 33.33 200.00
Total items of other comprehensive income [C] 4,408.47 3,931.43 Security: Extension of first pari-passu charge on the entire current assets of the
Company, both present and future, and extension of second pari-passu charge on all
Attributable to equity holders of the Company [A + B + C] 22,694.38 26,869.80
the fixed asset of the Company, both present and future, excluding land and building
at CBD Belapur & Navi Mumbai
Note No. 21 Non-controlling interests Rate of interest: 7.0% p.a. to 8.0% p.a.
H In Million Repayment terms: 18 equal monthly instalments after initial moratorium. The
oustanding term as at March 31, 2022 is 2 installments.
Particulars 31-Mar-22 31-Mar-21
(iv) Term loans from banks: Loan 4
Opening balance 373.41 672.38
Long-term loan 359.75 197.30
Less: Loss for the year (140.39) (107.13)
Current maturities of long-term loan 124.80 -
Add / (Less): Other comprehensive income for the year 12.95 5.58
Security: First pari-passu charge on the fixed asset of the Company excluding
Add / (Less): Pursuant to exchange movement (2.53) (8.21) properties at CBD Belapur and Navi Mumbai and second pari-passu charge on the
Add / (Less) Pursuant to business combinations (Refer note 39) - (189.21) current assets of the Company
Add / (Less): Pursuant to acquisition of non-controlling interest in subsidiary (2.56) - Rate of interest: 9.5% p.a. to 10.0% p.a.
(Refer note 39) Repayment terms: 48 equal monthly instalments after initial moratorium. The
Closing balance 240.88 373.41 outstanding term as at March 31, 2022 is 47 installments.
(v) Term loans from banks: Loan 5
Long-term loan 140.93 138.96
Current maturities of long-term loan 90.94 165.22
Security : First charge on all the fixed 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.

164 | Annual Report 2021-22 | 165

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million H In Million
Terms of repayment and security 31-Mar-22 31-Mar-21 Terms of repayment and security 31-Mar-22 31-Mar-21
(vi) Term loans from banks: Loan 6 (xii) Term loans from banks: Loan 12
Long-term loan - 2,724.79 Long-term loan 4,487.74 3,261.45
Current maturities of long-term loan 2,847.38 548.61 Current maturities of long-term loan - -
Security: First pari-passu charge on all current assets and fixed assets including Security: First charge on the current assets of the borrowing subsidiary and pari-
intangible assets of the borrowing subsidiary, its holding company and first pari- passu first charge on the fixed assets of the borrowing subsidiary.
passu charge on the fixed assets and second pari-passu charge on the current assets Rate of interest: 1 month LIBOR / 0.25% base rate, whichever is higher + 2.25% p.a.
of the ultimate holding company, both present and future Repayment terms: : Repayable at the end of 3 years with an option to renew for next
Rate of interest: 6 months LIBOR + 230 bps p.a. 3 years.
Repayment terms: Repayable in 12 half yearly instalments. The outstanding term as (xiii) Term loans from banks: Loan 13
at March 31, 2022 is 8 instalments.
Long-term loan 285.65 -
(vii) Term loans from banks: Loan 7
Current maturities of long-term loan 70.76 -
Long-term loan - 522.53
Security: First charge on the current assets of the borrowing subsidiary and Pari-
Current maturities of long-term loan 547.46 594.33 Passu first charge on the fixed assets of the borrowing subsidiary
Security: First pari-passu charge on all current assets and fixed assets including Rate of interest: 3.62% p.a.
intangible assets of the borrowing subsidiary and first pari-passu charge on the fixed Repayment terms: Repayable in 60 monthly installments. The outstanding term as at
assets and second pari-passu charge on the current assets of the ultimate holding March 31, 2022 is 56 instalments.
company, both present and future (xiv) Term loans from banks: Loan 14
Rate of interest: 6 months LIBOR + 300 bps p.a.
Long-term loan 80.00 -
Repayment terms: Repayable in 16 structured quarterly instalments. The outstanding
term as at March 31, 2022 is 3 instalments. Current maturities of long-term loan - -
(viii) Term loans from banks: Loan 8 Security: Second charge on all current assets and fixed assets including intangible
assets of the borrowing subsidiary, present and future and guaranteed by National
Long-term loan 1,044.65 -
Credit Guarantee Trustee Company Limited
Current maturities of long-term loan 303.71 - Rate of interest: 9.25%
Security: First pari-passu charge on all current assets and all fixed assets including Repayment terms: Repayable in 36 equal monthly instalments after an initial
intangibles of the borrowing subsidiary, both present and future moratorium period of 24 months from the date of first disbursement. The
Rate of interest: 3 months LIBOR + 300 bps p.a. outstanding term as at March 31, 2022 is 36 installments.
Repayment terms: Repayable in 20 equal quarterly instalments. The outstanding term (xv) Term loans from others: Loan 15
as at March 31, 2022 is 18 instalments
Long-term loan 328.88 461.98
(ix) Term loans from banks: Loan 9
Current maturities of long-term loan 125.00 31.25
Long-term loan - 288.37
Security: Pari-Passu first charge on the fixed assets of the Company and second Pari-
Current maturities of long-term loan - 66.60 passu charge on the current assets of the Company
Security: First pari-passu charge on all fixed assets of the borrowing subsidiary, both Rate of interest: 9.5% p.a. to 10.5% p.a.
present and future Repayment terms: 48 equal monthly instalments from date of first disbursment. The
Rate of interest: 5.0% p.a. outstanding term as at March 31, 2022 is 44 installments.
Repayment terms: Repayable in 60 equal monthly instalments.The loan was fully (xvi) Term loans from others: Loan 16
repaid during the year.
Long-term loan 280.02 381.42
(x) Term loans from banks: Loan 10
Current maturities of long-term loan 103.68 52.92
Long-term loan - -
Security: Pari-Passu first charge on the fixed assets of the Company (excluding land
Current maturities of long-term loan 25.00 50.00 and building at Navi Mumbai).
Security: First pari-passu charge on all current assets and fixed assets including Rate of interest: 10.0 % p.a. to 11.0% p.a.
intangible assets of the borrowing subsidiary, present and future Repayment terms: 20 quarterly structured instalments commencing after initial
Rate of interest: 1 year MCLR + 150 bps p.a. moratorium. The oustanding term as at March 31, 2022 is 15 installments.
Repayment terms: Repayable in 16 structured quarterly instalments after an initial (xvii) Unsecured Long-term loans from banks: Loan 17
moratorium period of 12 months from the date of first disbursement.The outstanding
Long-term loan 41.14 38.76
term as at March 31, 2022 is 4 instalments.
Current maturities of long-term loan - -
(xi) Term loans from banks: Loan 11
Rate of interest: Nil
Long-term loan 162.67 322.80
Repayment terms: Within 5 years from date of drawdown.
Current maturities of long-term loan 163.91 165.67
(xviii) Unsecured Long-term loans from others: Loan 18 *
Security: First pari-passu charge on all current assets and fixed assets including
Long-term loan - 29.14
intangible assets of the borrowing subsidiary, present and future
Rate of interest: 3 Months LIBOR + 275 bps p.a. Current maturities of long-term loan 32.67 0.31
Repayment terms: Repayable in 14 structured quarterly instalments after an initial Rate of interest: 7% p.a.
moratorium period.The outstanding term as at March 31, 2022 is 8 instalments. 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 27.22 23.59
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.

166 | Annual Report 2021-22 | 167

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million H In Million

Terms of repayment and security 31-Mar-22 31-Mar-21 Non Current

Current borrowings
(xx) Unsecured Long-term loans from others: Loan 20 Cash and Current
Particulars investments (including Net Debt
Long-term loan 839.29 - bank balances borrowings
(highly liquid) current
Current maturities of long-term loan 3.24 - maturities)

Rate of interest: 12.5% p.a. As on April 1, 2021 1,754.54 994.12 10,795.50 10,238.38 18,285.22
Repayment terms: 360 equal monthly instalments. The outstanding term as at March Cash flows 86.03 (1,004.44) 1,825.31 4,564.32 7,308.04
31, 2022 is 351 installments. Effect of exchange differences on restatement of 1.28 10.27 283.30 162.64 434.39
Total 12,954.26 10,795.50 foreign currency balances
* Loan taken by foreign subsidiary Others - 0.05 50.15 - 50.10
As on March 31, 2022 1,841.85 - 12,954.26 14,965.34 26,077.75
H In Million

Particulars 31-Mar-22 31-Mar-21 Note No. 23 Other financial liabilities

Disclosed under non-current borrowings 8,356.23 8,825.78 Other financial liabilities consist of the following:
Disclosed under current borrowings
- Current maturities of non-current borrowings 4,598.03 1,969.72 (i) Other non-current financial liabilities
Total 12,954.26 10,795.50 H In Million

Particulars 31-Mar-22 31-Mar-21

(ii) Current borrowings
Security deposits 29.00 39.59
H In Million
Derivative liability 8.11 156.19
Particulars 31-Mar-22 31-Mar-21 Contingent consideration payable 291.79 320.12
Current maturities of non-current borrowings (Refer note 22 (i) above) 4,598.03 1,969.72 Gross obligation under written put option 242.88 237.75
Secured loans repayable on demand from banks: (Refer note below) Total 571.78 753.65
- Working capital loans 10,130.95 6,810.23
- Short-term loans 3,512.85 2,812.44 (ii) Other current financial liabilities
Unsecured loans H In Million
- Short-term loans from others 42.52 21.23
Particulars 31-Mar-22 31-Mar-21
- Loans repayable on demand from banks 1,112.45 594.48
Interest accrued but not due on borrowings 58.10 47.85
- Loans repayable on demand from others 166.57 -
Unclaimed dividends * 10.91 21.68
Total 19,563.37 12,208.10
Derivative liability 66.96 115.55
Gross obligation under written put option - 93.06
Note:
Other payables:
(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 - Payables on purchase of property, plant and equipments and intangible assets 171.06 211.39
movable and immovable fixed assets of the Company (other than land and building situated at Navi Mumbai). - Payables on purchase of non-current investments 114.59 110.40
Rate of interest ranges from 1.40% to 13.00% p.a. (previous year 1.4% to 13.00% p.a) - Contingent consideration for acquisition of subsidiaries 181.84 88.79
- Payables to employees under cash settled share based payments 33.00 52.80
(b) The returns or statements filed by the Group with the banks or financial institutions, for its borrowings, are - Other payable to employees 477.59 456.31
in agreement with books of accounts. - Others 38.26 52.95
Total 1,152.31 1,250.78
Also refer note 2 *Investor Education and Protection Fund shall be credited when due.

Net debt reconciliation

Note No. 24 Provisions
H In Million
Provisions consist of the following:
Particulars 31-Mar-22 31-Mar-21
Non-current borrowings 8,356.23 8,825.78 (i) Non-current provisions
Current borrowings- working capital loans 14,965.34 10,238.38 H In Million
Current maturities of long-term loans 4,598.03 1,969.72 Particulars 31-Mar-22 31-Mar-21
27,919.60 21,033.88 Provision for employee benefits:
Less: Gratuity and other benefits (Refer note 46) 450.44 404.29
Cash and cash equivalents (1,707.30) (1,258.34) Provision - Others:
Balances in deposit accounts (134.55) (496.20) - Provision for sales return 192.36 269.79
Cash and bank balances (1,841.85) (1,754.54) Total 642.80 674.08
Current investments (highly liquid) - (994.12)
Net debt 26,077.75 18,285.22

168 | Annual Report 2021-22 | 169

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

(ii) Current provisions Trade payable ageing schedule as at March 31, 2022
H In Million H In Million
Particulars 31-Mar-22 31-Mar-21
Outstanding for following periods from
Provision for sales return 283.49 300.66 due date of payment
Provision for claims 607.44 585.19 Unbilled
Particulars Not Due Less More Total
Payables 1-2 2-3
Provision for employee benefits: than 1 than 3
years years
year years
- Compensated absences 332.16 352.11
Undisputed dues
- Gratuity and other benefits (Refer note 46) 3.14 3.95
- MSME - 150.40 168.20 6.35 1.01 0.79 326.75
Total 1,226.23 1,241.91
- Others 1290.25 3,088.31 5,217.82 361.81 250.51 179.79 10,388.49
Disputed dues
Movement in provisions
- MSME - - - - - - -
H In Million
- Others - - - - - - -
Gratuity and Compensated
Particulars Claims Sales return
other benefits absences
Trade payable ageing schedule as at March 31, 2021
Opening balance as at April 1, 2021 585.19 408.24 352.11 570.45
H In Million
Pursuant to exchange 22.25 - - 21.25
Provision recognised / (utilised) during the year (net) - 45.34 (19.95) (115.85) Outstanding for following periods from
Closing balance as at March 31, 2022 607.44 453.58 332.16 475.85 due date of payment
Unbilled
Particulars Not Due Less More Total
Payables 1-2 2-3
than 1 than 3
Note No. 25 Other liabilities year
years years
years
Other liabilities consist of the following: Undisputed dues
- MSME - 167.24 207.02 3.60 0.36 0.13 378.35
(i) Other non-current liabilities - Others 1,723.63 4,383.88 4,350.31 302.57 140.43 62.83 10,963.65
H In Million Disputed dues
- MSME - - - - - - -
Particulars 31-Mar-22 31-Mar-21
- Others - - - - - - -
Asset retirement obligation 16.04 15.05
Prepaid rent liability - 1.08
All trade payables are current. The Group’s exposure to the currency and liquidity risks related to trade payables
Total 16.04 16.13 is disclosed in note 51.

(ii) Other current liabilities Note No. 27 Tax liabilities

H In Million
(i) Non current tax liabilities (net)
Particulars 31-Mar-22 31-Mar-21
H In Million
Other payables:
- Advances from customers 281.21 239.01 Particulars 31-Mar-22 31-Mar-21
- Statutory liabilities 443.93 404.80 Provision for tax (net of advance tax) - 1,790.91
- Other liabilities 30.37 - Total - 1,790.91
Total 755.51 643.81
The Company during the previous year had received certain refunds including interest from tax authorities
Note No. 26 Trade payables on account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability
H In Million
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
Particulars 31-Mar-22 31-Mar-21
for such assessment year aggregating to H1,606 million as a tax credit and the interest income amounting to
Total outstanding dues of micro enterprises and small enterprises (MSME) 326.75 378.35 H 748 million on the said refund under other income in the financial statements.
Total outstanding dues of creditors other than micro and small enterprises* 10,388.49 10,963.65
Total 10,715.24 11,342.00 (ii) Current tax liabilities (net)
* includes dues to related party as referred in note 49. H In Million

Particulars 31-Mar-22 31-Mar-21

Provision for tax (net of advance tax) 238.11 351.18
Total 238.11 351.18

170 | Annual Report 2021-22 | 171

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 28 Revenue from operations Note No. 29 Other income

H In Million H In Million

Particulars 31-Mar-22 31-Mar-21 Particulars 31-Mar-22 31-Mar-21

Sale of products 29,562.05 32,148.35 Interest income ** 1,073.26 353.01
Sale of services 658.51 363.20 Income from current investments 2.89 11.93
30,220.56 32,511.55 Gain on sale of short-term investment in mutual funds 0.04 0.00
Other operating revenues* 481.94 647.15 Rental income from investment property 60.33 76.99
Total 30,702.50 33,158.70 Other non-operating income:
- Liabilities / provisions no longer required written back - 7.45
* 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). - Guarantee commission * 52.16 41.51
- Gain on sale of property, plant and equipment, other intangible assets and 112.47 23.38
B. Disaggregated revenue information investment property (net)
- Others 18.73 -
In the following table, revenue from contracts with customers is disaggregated by primary geographical market Total 1,319.88 514.27
* includes guarantee commission from related parties as referred in note 49.
Revenue from contracts with customers (Continuing operations)
**Includes interest income amounting to H 748 million on tax refunds. The Company during the previous year had received certain
H In Million refunds including interest from tax authorities on account of certain tax credits for earlier years. The amount of refund was earlier
Particulars 31-Mar-22 31-Mar-21 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.
North America 12,058.99 16,458.90
Australia 3,174.77 2,452.86
Africa 5,707.41 5,203.26
Note No. 30 Changes in inventories of finished goods, work-in-progress and stock-in-trade
H In Million
Europe 6,768.55 7,295.04
India 473.47 400.74 Particulars 31-Mar-22 31-Mar-21
Asia (excluding India) 1,970.59 608.17 Inventories at the end of the year
Others 66.78 92.58 - Work-in-progress 481.86 385.62
30,220.56 32,511.55 - Stock-in-trade 636.36 244.07
Revenue from other sources - Finished goods 4,636.27 5,636.70
Other operating revenue 481.94 647.15 5,754.49 6,266.39
481.94 647.15 Less: Write off on account of withdrawal (Refer note 35)
Total revenue from operations 30,702.50 33,158.70 - Finished goods (254.88) -
(254.88) -
Geographical revenue is allocated based on the location of the customers. (Add)/Less: Consolidation adjustment:
- Work-in-progress 3.42 (3.68)
C. Transaction price allocated to the remaining performance obligations - Finished goods 1.88 (16.40)
 he following table inludes revenue expected to be recognised in the future related to performance obligations
T 5.30 (20.08)
that are unsatisfied (or partial unsatisfied) at the reporting date. Inventories at the beginning of the year
H In Million - Work-in-progress 385.62 609.48
- Stock-in-trade 244.07 116.96
Particulars 31-Mar-22 31-Mar-21
- Finished goods 5,636.70 1,856.43
Sale of services 223.01 214.74
6,266.39 2,582.87
D. Reconciliation of revenue from contracts with customers Add: Opening stock pertaining to entity acquired during the year (Refer note 39)
- Work-in-progress 24.19 -
H In Million
- Finished goods 156.52 166.54
Particulars 31-Mar-22 31-Mar-21 180.71 166.54
Revenue from contracts with customers as per the contract price 52,790.41 54,087.68 Total 952.79 (3,537.06)
Adjustments made to contract price on account of :-
a) Chargebacks / Discounts / Rebates / Incentives (22,416.66) (21,315.77) Note No. 31 Employee benefits expense
b) Sales returns/ reversals (104.82) (260.36) H In Million
c) Sales returns/ reversals related to product withdrawal* (48.37) - Particulars 31-Mar-22 31-Mar-21
Revenue from Contracts with customers as per statement of profit and loss 30,220.56 32,511.55 Salaries, wages and bonus 5,283.01 4,656.28
* Losartan returns for the current year Contribution to provident and other funds (Refer note 46) 552.55 393.30
Share based compensation expense (Refer note 45) (7.09) 68.02
Staff welfare expenses 640.62 383.87
Total 6,469.09 5,501.47

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 32 Finance costs Note No. 35 Exceptional items

H In Million H In Million

Particulars 31-Mar-22 31-Mar-21 Particulars 31-Mar-22 31-Mar-21

Interest expense on: Exchange gain/ (loss) on long-term foreign currency loans, deferred consideration and (109.24) 1,027.73
- Borrowings 1,288.15 1,092.47 intra-group loans
- Leases (Refer note 5) 168.47 148.74 Impairment and cost associated with disposal of facility (Refer note c below) (1,727.16) -
- Discounting of deposits 0.62 2.79 Impairment of investment in an associate - (81.99)
Other finance costs 310.20 256.65 Sales returns, write down of inventory and other expenses on account of product (552.34) (750.50)
withdrawal (Refer note (a) & (b) below )
Total 1,767.44 1,500.65
Write down of inventories and other assets (46.76) -
Gain on dilution of investment in an associate (Refer note d below) 529.26 323.00
Note No. 33 Depreciation and amortisation expense
Fair valuation gain on acquisition of controlling shares in an associate (Refer note 39.1) - 25.30
H In Million
Business combination and restructuring expenses (211.27) (23.61)
Particulars 31-Mar-22 31-Mar-21
Severance and retrenchment payments (Refer note c below) (207.00) -
Depreciation on plant, property and equipments (Refer note 4(i)) 1,424.12 1,176.26
Unwinding/ cancellation of gross obligations and contingent consideration 11.27 (86.40)
Amortization on right to use (Refer note 5) 283.12 228.22
Gain on sale of investment in an associate (Refer note 40.3) 27.79 -
Depreciation on investment property (Refer note 6) 25.59 45.67
Gain on divestment of subsidiaries 1.57 -
Amortisation on other intangible asset (Refer note 8(i)) 597.31 612.72
Loss on sale of business unit (Refer note 40.2) (154.37)
Amount charged to the statement of profit and loss: 2,330.14 2,062.87
Total (2,438.25) 433.53
- under continuing operations 2,330.14 2,062.87

- under discontinued operations - -
Note
Note No. 34 Other expenses (a) On March 31, 2020, US Food and Drug Administration (USFDA or the Agency) issued letters to all manufacturers
H In Million of Ranitidine across dosage forms requesting withdrawal of all prescription(Rx) and over-the-counter (OTC)
Particulars 31-Mar-22 31-Mar-21 ranitidine drugs from the market immediately. This step was based on their ongoing investigation of the
Subcontracting charges 482.68 453.54 N-Nitrosodimethylamine (NDMA) impurity in ranitidine medications. As a result, effective 1 April 2020,
Consumption of stores and spares 809.67 759.87 the Group has ceased further distribution of the product and is currently in the process of withdrawing the
Power, fuel and water 715.42 645.82
product from the market.
Rent including lease rentals (Refer note 5) 80.89 71.96
During the current year, the Group has continued to receive returns from its customers with the corresponding
Repairs and maintenance:
value being deducted on their payments to the Group. As at March 31, 2022, the Group is carrying sufficient
- Buildings 61.15 53.47
provision for sales return and has recorded an amount of H 198.87 million towards other expenses related to
- Machinery 458.30 451.66 its product withdrawal. Furthermore, the expenses recorded also includes legal fees incurred by the Group
- Others 593.46 380.90 in respect of its ongoing litigations relating to Ranitidine.
Insurance 210.08 170.64
Rates and taxes 516.52 589.38 (b) During the year, USFDA issued a letter to the Group to test for the presence of Azide impurity(s) in Losartan.
Communication expense 93.08 87.14 The Azide impurity(s) are API process impurity(s), with the API manufacturer also receiving a similar letter
Travelling and conveyance 91.08 62.82 from USFDA. The results confirmed the presence of Azide impurity(s) in the batches tested. As a result, the
Printing and stationery 36.13 41.85 group proposed to initiate a voluntary recall of specific batches which had the Azide impurity(s).
Carriage, freight and forwarding 3,009.41 2,003.94
Business promotion 178.18 130.48 The Group has estimated the impact of the aforesaid recall and recorded a sales return provision for potential
Sales commission 125.38 97.76
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.
Failure to Supply 230.13 588.35
Donations and contributions 3.42 5.09
Subsequently the API process at the API manufacturer was optimized to address this issue and the product
Legal and professional fees 1,208.92 893.47
was relaunched during the current year.
Provision for doubtful debts (including bad debt written off) (14.08) 94.61
Other receivables written off 15.85 - (c) On August 4, 2021, the Group through its wholly owned subsidiaries entered into definitive agreements
Bio-study expenses 149.98 279.94 with subsidiaries of Endo International Plc to acquire a portfolio of generic products along with the US
Miscellaneous expenses 257.81 198.48 manufacturing site at Chestnut Ridge, New York. Pursuant to such acquisition, the management decided to
Total 9,313.46 8,061.17 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.

174 | Annual Report 2021-22 | 175

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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 *The Company during the previous year had received certain refunds including interest of H 1,790 million from tax authorities on
manufacturing locations, resulting in one time severance expense aggregating to H 207 million, which has account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain
been disclosed under exceptional items. 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 H1,605 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.
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
Note No. 37 Other comprehensive income
H In Million
million during the year ended 31 March 2021 and 31 March 2022 respectively.
Particulars 31-Mar-22 31-Mar-21
Note No. 36 Tax expenses A) Items that will not be reclassified to profit or loss
H In Million (i) Defined benefit obligations 7.33 (26.59)
Particulars 31-Mar-22 31-Mar-21 Income tax on above (1.64) 12.66
Current tax 5.69 (13.93)
Current tax expense 102.01 290.13 (ii) FVOCI equity investments (93.97) 131.05
Current tax relating to prior years reversed * (1,606.41) (75.65) Income tax on above 20.60 (26.74)
(1,504.40) 214.48 (73.37) 104.31
Deferred tax benefit Total [A] (67.68) 90.38
Deferred tax expense / (benefit) (166.37) 95.77 B) Items that may be reclassified to profit or loss
Minimum alternative tax credit utilised (111.86) 6.26 (i) Cash flow hedge 142.98 502.84
(278.23) 102.03 Income tax on above (3.19) (136.92)
Total (1,782.63) 316.51 139.79 365.92
(ii) Foreign currency translations 417.88 (290.75)
The reconciliation of estimated income tax expenses at statutory income tax rate to income tax Income tax on above - -
expense reported in statement of profit and loss is as follows: 417.88 (290.75)
H In Million Total [B] 557.67 75.17
Total [A+B] 489.99 165.55
Particulars 31-Mar-22 31-Mar-21

Profit before tax
- from continuing operations (6,525.13) 2,754.39 Note No. 38 Details of research and development expenditure incurred (charged to statement
- from discontinued operations - 139.41 of profit and loss)
(6,525.13) 2,893.80 H In Million

Indian statutory income tax rate 34.944% 34.944% Particulars 31-Mar-22 31-Mar-21
Expected income tax expense (2,280.14) 1,011.21 Cost of materials consumed 69.22 164.26
Salaries, wages and bonus 255.73 244.71
Tax effect of adjustments to reconcile expected income tax expense to reported Biostudy expenses 91.52 128.00
income tax expenses: Legal and professional fees 16.58 20.04
Income exempt from tax (48.25) (182.73) Consumption of stores and spares 105.38 154.84
Effect of expenses that are not deductible in determining taxable profit 99.11 128.57 Regulatory expenses 184.20 164.20
Effect of concessions (19.04) (112.12) Travelling and conveyance 7.37 8.73
Effect of unused tax losses and tax offsets not recognised as deferred tax assets 312.01 148.14 Depreciation and amortisation expenses 89.59 95.45
Effect of different tax rates of subsidiaries operating in other jurisdictions 1,660.40 (828.10) Others 163.88 174.32
Tax refund pertaining to prior years (1,655.31) - Total 983.47 1,154.55
Effect on recognition of past unrecognised deferred tax asset 38.80 (112.46)
Tax on share of equity accounted joint venture and associates 387.21 341.82
Others (net) (277.42) (77.82)
Total Income tax expense (1,782.63) 316.51

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.

176 | Annual Report 2021-22 | 177

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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) The gain has been recorded under the head “Exceptional items” in the Statement of Profit and Loss.
H In Million
39.1 Business combinations
Particulars Amount
During year ended March 31, 2022: Fair value of Fairmed 176.37
Fair value of non-controlling interest held by the Group in Fairmed 123.46
Date of Carrying value of non-controlling interest held by the Group in Fairmed on the date of acquisition 98.16
Entity / Business Acquired Principal Activity Note Reference
Acquisition Gain recorded under exceptional items on attaining controlling interest 25.30
Chestnut Ridge Facility, New York Manufacturing and Trading in Pharmaceutical Oct 20, 2021 Refer Note A
and Portfolio of Generic Products Products
The resulting cost of acquisition of Fairmed for the Group is H 123.46 million.

Note A: Consideration transferred:

Strides Pharma Inc, US and Strides Pharma Global Pte Limited, Singapore, both being the wholly owned subsidiaries Since the Group has not transferred any consideration for change in controlling rights, the fair value on the date
of the Group, acquired a portfolio of generic products and US manufacturing site at Chestnut Ridge, New York of change in control was treated as consideration.
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 Assets acquired and liabilities recognised at the date of obtaining controlling rights:
of USD 1.63 Million million being the difference in the fair value of net assets acquired and consideration paid, H In Million
in accordance with the computation below. Particulars Fairmed
Non-current assets (includes intangibles at fair value) 415.75
Consideration transferred: Current assets 750.47
H In Million Non-current liabilities -
Particulars Amount Current liabilities (1,784.79)
Cash 1,857.37 Net liabilities (618.57)
Total 1,857.37
39.2 Non-controlling interests, goodwill / bargain purchase on acquisition
Assets acquired and liabilities recognised at the date of acquisition:
The Group has recognised non-controlling interests in an acquired entity at the non controlling interest’s
H In Million
proportionate share of the acquired entity’s net identifiable assets. Further, the Group has issued written put
Particulars 31-Mar-21 options to the non-controlling interests of certain subsidiaries to purchase their equity shares in accordance
Non-current assets (includes intangibles at fair value) 2,172.80 with the terms of underlying agreement with such shareholders. Should the option be exercised, the Group has
Current assets 330.03 to settle such liability by payment of cash. The amount that may become payable under the option on exercise is
Non-current liabilities (28.32) recognised as a financial liability at its present value with a corresponding charge directly to the shareholders’
Current liabilities (493.54) equity.
Net Assets 1,980.97
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.
During year ended March 31, 2021:
39.2.1 Acquisition of non-controlling interest:
Entity / Business Acquired Principal Activity
Date of
Note Reference During the current year, the Group has acquired the non-controlling interests in below subsidiaries, thereby,
Acquisition
making them wholly owned subsidiaries of the Group.
Fair-Med Healthcare AG Trading in Pharmaceutical products Apr 1,2020 Refer Note A
Fairmed Healthcare GmbH Trading in Pharmaceutical products Apr 1,2020 Refer Note A - PharamPar Inc.
Eris Pharma GmbH Trading in Pharmaceutical products Apr 1,2020 Refer Note A
 ursuant to the acquisition of non-controlling interest, the excess of consideration paid over the non-controlling
P
Note A: interest balance and gross obligation under written put option carried as on the date of acquisition, has been
Strides Pharma Global Pte Limited, Singapore, a wholly owned subsidiary of the Group, obtained controlling debited or credited to the equity under the head ‘Capital reserve’ based on the below calculations:
rights of the board of Fairmed Healthcare AG, Switzerland with effect from April 1, 2020, whereby making the H In Million
entity and its wholly subisidiaries Faimed Healthcare GmbH, Germany and ERIS Pharma GmbH Germany as Particulars Amount
subsidiaries of the group (together referred to as Fairmed).
Consideration transferred -
Less: Carrying value of non-controlling interest 2.56
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 Amount debited/(credited) to Capital reserve (2.56)
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.

178 | Annual Report 2021-22 | 179

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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 2020-21:
Acquisitions during the year ended March 31, 2022: Results from continuing operations for the year ended March 31, 2021 includes the following revenue and profit
H In Million generated from the new acquisitions:
Particulars Amount H In Million

Consideration transferred 1,857.37 Particulars Amount

Fair value of net assets acquired 1,980.97 Revenue 1,100.06
Bargain puchase arising on acquisition (123.60) Profit / (loss) for the year (260.62)

Acquisitions during the year ended March 31, 2021: The above excludes impact of unwinding of discount on gross obligation towards written put options given to
H In Million non controlling interests.
Particulars Fairmed
Consideration transferred -
Note No. 40 Discontinued operations:
Fair value of existing non-controlling interest held 123.46 The combined results of the discontinued operations of the businesses disposed-off as explained in Note 40.1,
Add: Non-controlling interests (189.21) are set out below. The comparative profit and cash flows from discontinued operations have been presented as
Less: Fair value of identifiable net assets/ (net liabilities) (618.57) if these operations were discontinued in the prior year as well.
Goodwill arising on acquisition 552.82 H In Million

Year ended Year ended

Particulars Reference
31-Mar-22 31-Mar-21
39.2.3 Goodwill arising on acquisitions pertains to the below Cash generating units
H In Million
Revenue - -
Other income - -
Entity Cash generating units 31-Mar-22 31-Mar-21
Total revenue from discontinued operations (I) - -
Fairmed Other regulated markets - 552.82
Depreciation and amortisation expense - -
Other expenses charged-off to the Statement of Profit and Loss - -
Goodwill arose in the acquisition of the above said entities because the consideration paid for the combinations - -
Total expenses from discontinued operations (II)
effectively included amounts in relation to the benefit of expected synergies, future market development and
Loss from discontinued operation (III = I - II) - -
the assembled workforce. These benefits are not recognised separately from goodwill because they do not meet
Gain / (loss) on disposal of:
the recognition criteria for identifiable intangible assets.
- investments in entities manufacturing specialty products 40.1 - 139.41
None of the goodwill arising on these acquisitions is expected to be deductible for tax purposes. Net gain / (loss) on disposal of businesses (IV) - 139.41
Gain / (loss) from discontinued operations before tax (V = III + IV) - 139.41
39.2.4 Net cash outflow on acquisition of subsidiaries / business / non-controlling interest Attributable income tax expense (VI) - -
H In Million Net gain / (loss) from discontinued operations after tax (V - VI) - 139.41
Year ended Year ended
Particulars
31-Mar-22 31-Mar-21 Cash flows from discontinued operations
Consideration paid in cash 1,857.37 - H In Million
Net cash outflow on acquisition 1,857.37 - Particulars 31-Mar-22 31-Mar-21
Net cash inflows/(outflows) from operating activities - -
39.2.5 Impact of acquisitions on the results of the Group: Net cash inflows/(outflows) from investing activities* (16.39) 97.69
Acquisitions during 2021-22 Net cash inflows/(outflows) from financing activities - -
Results from continuing operations for the year ended March 31, 2022 includes the following revenue and profit
Net cash inflows/(outflows) (16.39) 97.69
generated from the new acquisitions:
* Including cash flow on disposal of assets and liabilities of the discontinued operations
H In Million

Particulars Amount
40.1 Sale of investments in entities manufacturing specialty products
Revenue 1,447.27
Profit / (loss) for the year 233.64 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
If the acquisition had occured on April 1, 2021, the management estimates that the consolidated revenue for the transactions under the respective agreements were by way of (i) sale of investment held in Agila Specialties
group pertaining to these acquisitions would have H 3,295 million and the profit would have been H 257 million Private Limited (“ASPL”, an erstwhile wholly owned subsidiary of the Company), to Mylan Laboratories Limited
for the 12 months ended March 31, 2022. The pro-forma amounts are not necessarily inidcative of the results (“MLL”), a Mylan group company and (ii) the sale of investment held in Agila Specialties Global Pte Limited (“Agila
that would have been occured on date indicated or that may result in the future. 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.

180 | Annual Report 2021-22 | 181

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

 he sale of shares of ASPL was recorded by the Company in terms of the Sale and Purchase Agreement dated
T 40.2 Sale of Pharmapar business:
December 4, 2013 (the “India SPA”). The sale of shares of Agila Global was recorded by Strides Singapore in terms During the year, the Group completed the divestment of its business held under Pharmapar Inc., Canada, for
of another Sale and Purchase Agreement dated December 4, 2013 (the “Global SPA”). 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 (a) Consideration received
documents, certain amounts were set aside under separate deposit / escrow accounts which were required H In Million
to be utilised for specified expenses during the specified period. These included separate escrow / deposit Particulars Total
of USD 100 Million in respect of potential claims in relation to certain regulatory concerns (“”Regulatory
Consideration received in cash 26.08
escrow””) and USD 100 Million in respect of potential claims in relation to the warranties and indemnities,
Deferred consideration 11.54
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. Total consideration 37.62
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 (b) Carrying value of asset and liabilities as on the date of disposal
the deposit / escrow arrangements were not included in the consideration accounted as income by the Group at the H In Million
time of disposal of the investments. Receipts from these deposit / escrow accounts were recognised subsequently Particulars Total
(net of related expenses incurred) in the period in which such amounts were received by the Group. Non-current assets 100.01
Current assets 91.98
 uring the earlier years, the Company had received notifications of claims from Mylan under the terms of the
D Non-current liabilities -
SPAs. These included claims against the regulatory escrows, tax claims, warranty and indemnity claims, and Current liabilities -
third party claims. Under the terms of the SPAs, claims against the Company / Strides Singapore can only be Net assets disposed off 191.99
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
(c) Loss on disposal
H In Million
I n previous years, a significant portion of these claims were settled out of the Regulatory Escrow deposit and
Year ended
the remaining balance of the Escrow account was recognised as income on full and final settlement of related Particulars
31-Mar-22
claims. Further, the Company and Mylan also agreed on full and final settlement of warranty and indemnity
Total Consideration 37.62
claims to be adjusted against the ‘General Claims Escrow’. The arbitration proceedings with respect to the third
Net assets disposed off (191.99)
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. Loss on disposal (154.37)

(d) Net cash inflow on disposal

 uring the previous year, Mylan had received certain tax refund with respect to the period on or before the
D
H In Million
completion date, which has been remitted to the Group. The Group has recorded such receipt of H 147.72 million
and corresponding expenses of H8.31 million under discontinued operations. Particulars
Year ended
31-Mar-22
Consideration received in cash 26.08
There are certain tax claims which are pending under the terms of the SPAs for which the Group has recorded
Net Cash inflow 26.08
adequate provisions in the books

40.3 Sale of Investment in an associate

 he Group had considered hive-off of the Specialties business as discontinued operations. Accordingly, the
T
income/(loss) referred above have been recognised under discontinued operations as under: During the year, the Group divested its investment held in Juno OTC, Canada, for consideration of CAD 1.72
H In Million million. The net gain of H 27.79 million arising from the transaction has been recorded as Exceptional item in
Year ended
the statement of profit & loss for the year ended 31 March, 2022.
Particulars
31-Mar-22 31-Mar-21
Note No. 41 Commitments
Gain/(Loss) on settlement of contingencies attributable to the discontinued operations - 139.41
H In Million
(net)
Profit before tax from discontinued operations - 139.41 Particulars 31-Mar-22 31-Mar-21
Estimated amount of contracts remaining to be executed on capital account (Tangible 367.74 499.50
Cash flows from discontinued operations and Intangible assets) and not provided for (net of advances)
H In Million

Year ended
Particulars
31-Mar-22 31-Mar-21
Net cash inflows/(outflows) from operating activities - -
Net cash inflows/(outflows) from investing activities (16.39) 97.69
Net cash inflows/(outflows) from financing activities - -
Net cash inflows/(outflows) (16.39) 97.69

182 | Annual Report 2021-22 | 183

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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) H In Million
H In Million Particulars 31-Mar-22 31-Mar-21
Particulars 31-Mar-22 31-Mar-21 (iii) Share of loss of joint ventures and associates
a) Pharmaceutical business (250.62) (399.42)
a) Claims against the Group not acknowledged as debt
b) Bio-pharmaceutical business (857.50) (578.77)
- Disputed tax liabilities arising from assessment proceedings relating to earlier 1,740.14 1,664.77
(1,108.12) (978.19)
years from the income tax authorities. The outflow, if any, on account of disputed
taxes is dependent on completion of assessments / disposal of appeals and (iv) Profit/ (loss) before tax
adjustment for payments made under protest. a) Pharmaceutical business (6,196.89) 3,010.16
- Disputed excise, custom, service tax and sales tax liabilities arising from 588.01 588.01 b) Bio-pharmaceutical business (328.24) (255.77)
assessment proceedings relating to prior years. The outflow, if any, on account Profit/ (loss) before tax [i+ii+iii] (6,525.13) 2,754.39
of disputed liabilities is dependent on completion of assessments / disposal of Tax expense (1,782.63) 316.51
appeals and adjustment for payments made under protest. (v) Profit/(loss) after tax from continuing operations (4,742.50) 2,437.88
b) Corporate Guarantees 9,419.83 6,188.52
Segment assets and liabilities
(i) In light of the judgment of Honorable Supreme Court dated February 28, 2019 on the definition of “Basic H In Million
Wages” under the Employees Provident Funds & Misc. Provisions Act, 1952 and based on Group’s evaluation, Particulars 31-Mar-22 31-Mar-21
there are significant uncertainties and numerous interpretative issues relating to the judgement and hence i) Segment Assets
it is unclear as to whether the clarified definition of Basic Wages would be applicable prospectively or a) Pharmaceutical business 65,139.56 65,175.14
retrospectively. The amount of the obligation therefore cannot be measured with sufficient reliability for b) Bio-pharmaceutical business 4,619.06 4,975.06
past periods and hence has currently been considered to be a contingent liability. Total Segment Assets 69,758.62 70,150.20
ii) Segment Liabilities
(ii) Other than the matters disclosed above, the Group is also involved in other disputes including patent and a) Pharmaceutical business 45,925.46 42,002.87
commercial matters that arise from time to time in the ordinary course of business. Management is of the b) Bio-pharmaceutical business - 7.31
view that the resolution of these disputes will not have any material adverse effect on the Group’s financial Total Segment Liabilities 45,925.46 42,010.18
position or results of operations.
Disclosures regarding geographical information: The geographical information of the Group’s revenues and assets
Note No. 43 Segment information 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.
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
Information regarding geographical revenue from operations is as follows (including discontinued operations) :
resources and assessing performance. The Group’s CODM is the Managing Director.
H In Million

During the year, the Group pursuant to its assessment that the business has now evolved from its incubation For the year ended
Particulars
stage and to align to the decision to demerge certain parts of its business, implemented operational changes in 31-Mar-22 31-Mar-21
how its CODM evaluates its businesses, including resource allocation and performance assessment. As a result North America 12,058.99 16,458.90
of the aforesaid change, the Group now has two operating segments, representing the individual businesses Australia 3,174.77 2,452.86
that are managed separately. The Groups’s new reportable segment are as follows; “Pharmaceutical” & “Bio- Africa 5,707.41 5,203.26
pharmaceutical”. The Group has restated segment information for the historical periods presented herein Europe 6,768.55 7,295.04
to conform to the current presentation. This change in segments had no impact on the Group’s historical India 473.47 400.74
consolidated statements of profit and loss, balance sheets or statements of cash flows. Asia (excluding India) 1,970.59 608.17
H In Million Others 66.78 92.58
Particulars 31-Mar-22 31-Mar-21 30,220.56 32,511.55
A) Segment Revenue Revenue from other sources
Other operating revenue 481.94 647.15
a) Pharmaceutical business 30,702.50 33,158.70
Revenue from operations 30,702.50 33,158.70
b) Bio-pharmaceutical business - -
Revenue from operations 30,702.50 33,158.70
Information regarding geographical non-current assets is as follows*:
B) Segment results
H In Million
(i) Profit/ (loss) before exceptional items and tax
As at
a) Pharmaceutical business (2,978.76) 3,299.05 Particulars
31-Mar-22 31-Mar-21
b) Bio-pharmaceutical business - -
Africa 2,367.93 2,485.17
(2,978.76) 3,299.05
Australia 34.49 38.32
(ii) Exceptional items - net gain / (loss)
Asia (excluding India) 7,814.43 7,723.35
a) Pharmaceutical business (2,967.51) 110.53
North America 5,631.40 5,147.22
b) Bio-pharmaceutical business 529.26 323.00
Europe 2,430.27 2,700.68
(2,438.25) 433.53
India 15,181.67 15,963.15
Total 33,460.19 34,057.89
* Non current assets are excluding financial instruments and deferred tax assets.

184 | Annual Report 2021-22 | 185

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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) H In Million
given by Strides Pharma (Cyprus) Limited, Cyprus to its subsidiary Strides Lifesciences Limited, During the year 2021-22 During the year 2020-21
Nigeria, are recognised as net investment in non-integral foreign operations in accordance with Ind AS Weighted Weighted
21 ‘The Effect of Changes in Foreign Exchange Rates’, and exchange fluctuation gain of H 19.22 Million Particulars
Options (No’s)
average exercise
Options (No’s)
average exercise
(previous year: exchange fluctuation loss of H 2.24 Million) arising out of reinstatement of such loans price per option price per option
(H) (H)
has been accumulated in foreign currency translation reserve through other comprehensive income.
Options outstanding at the end of the year:* 1,35,250 393.98 2,45,900 348.79
Further, Intra-group loans amounting to USD Nil Million (previous year USD 0.20 Million) given by Strides Pharma Options available for grant: 25,90,700 - 26,02,800 -
Global Pte Limited, Singapore to its subsidiary Strides Pharma (Cyprus) Limited, Cyprus, are recognised as net * Includes options vested but not exercised as at March 31, 2022 ESOP 2016: 35,250 (March 31, 2021: 57,150)
investment in non-integral foreign operations in accordance with Ind AS 21 ‘The Effect of Changes in Foreign ** Includes options exercised but shares are not alloted as at March 31, 2022 ESOP 2016: 13,500 (March 31, 2021: Nil)
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 b. Details of the cash settled share based payment plan of the Company:
foreign currency translation reserve through other comprehensive income. The entire loan has been repaid
during the previous year. 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
Note No. 45 Share-based payments 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
Details of the employee share option plan of the Company: the date of vesting. The Company has granted Nil options (Previous year: 72,966) under this scheme during the
(a) 
The ESOP titled “Strides ESOP 2016” (formerly known as Strides Shasun ESOP 2016) (ESOP 2016) was current year.
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 During the current year, Employee compensation cost reversal of H 19.80 Million (cost for the year ended March
over a period of three years. The options must be exercised within a period of one year from the date of 31, 2021: H 52.80 Million) relating to the Plan have been recorded in the Statement of Profit and Loss on account
vesting. Company has granted 67,500 options (Previous year: 25,000) under this scheme during the current of final settelment of the Phantom units granted previous year.
year.
Note No. 46 Employee Benefits Plans
(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 Employee benefits pertaining to overseas subsidiaries have been accrued based on their respective local labour
the Statement of Profit and Loss. laws.

Fair value of share options granted during the year Defined contribution plan
The fair value of the share options granted during the year under ESOP 2016 Lot X and ESOP 2016 Lot XI, is The Group makes contributions to provident fund and employee state insurance schemes which are defined
H 359.42 and H 271.55 respectively. Options were priced using a Black- Scholes method of valuation at grant date. contribution plans, for qualifying employees. Under the schemes, the group is required to contribute a specified
Expected volatility is based on the historical share price volatility over the past 3 years. 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
Inputs into the model - (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
ESOP 2016 ESOP 2016 Company are at rates specified in the rules of the schemes. The Group has no obligations beyond its contributions.
Particulars
Lot X Lot XI
No. of options 25,000 42,500 Defined benefit plan
Grant date share price H 798.60 H 607.70 The Company and its Indian subsidiaries offers gratuity benefits, a defined employee benefit scheme to its
Exercise price H 599.00 H 455.80 employees.
Expected volatility 39.06% 38.26%
Option life 3 years 3 years Composition of the plan assets
Expected Dividend % 20.00% 20.00%
The fund is managed by LIC , the fund manager. The details of composition of plan assets managed by the fund
Risk-free interest rate 6.023% 6.223%
manager is not available with the Company. However, the said funds are subject to Market risk (such as interest
risk, investment risk, etc.).
Employee stock options details as on the balance sheet date are as follows:
H In Million The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk.
During the year 2021-22 During the year 2020-21
Weighted Weighted Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best
Particulars average exercise average exercise estimate of the mortality of plan participants both during and after their employment. An
Options (No’s) Options (No’s)
price per option price per option increase in the life expectancy of the plan participants will increase the plan's liability.
(H) (H)
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future
Option outstanding at the beginning of the year: 2,45,900 348.79 4,21,200 346.86 salaries of plan participants. As such, an increase in the salary of the plan participants will
Granted during the year: 67,500 508.84 25,000 311.00 increase the plan's liability.
Exercised during the year**: (1,22,750) 294.80 (1,15,500) 302.97
Lapsed/ cancelled during the year: (55,400) 621.49 (84,800) 426.17

186 | Annual Report 2021-22 | 187

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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: Movements in the fair value of the plan assets are as follows:
H In Million

Valuation as at Year ended

Particulars Particulars
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
Discount rate(s) 6.41% - 6.91% 6.06% - 6.58% Opening fair value of plan assets 134.26 141.55
Expected rate(s) of salary increase 10% 10% Remeasurement gain / (loss):
Mortality Rate As per IALM (2012-14) ultimate Remeasurement return on plan assets (excluding amounts included in net interest 8.75 9.40
Retirement age (years) 58 years 58 years expense)
Contributions from the employer 22.00 2.50
Amounts recognised in respect of these defined benefit plans are as follows: Actuarial gain / (loss) on plan assets 1.97 (4.25)
H In Million Benefits paid (28.19) (14.94)
Closing fair value of plan assets 138.80 134.26
Particulars 31-Mar-22 31-Mar-21
Service cost:
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected
Current service cost 68.07 55.71
salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of
Net interest expense 23.71 17.24 the respective assumptions occurring at the end of the reporting period, while holding all other assumptions
Components of defined benefit costs recognised in statement of profit and loss 91.78 72.95 constant.
Remeasurement on the net defined benefit liability:
Remeasurement return on plan assets [excluding amounts included in net interest (1.97) 4.25 If the discount rate increases / (decrease) by 1%, the defined benefit obligation would be H 544.75 Million (H 621.83
expense] (excess) / Short return Million) as at March 31, 2022.
Actuarial (gains) / losses arising from changes in demographic assumptions 3.83 12.92
Actuarial (gains) / losses arising from changes in financial assumptions (12.86) (4.73) If the expected salary growth increases / (decrease) by 1%, the defined benefit obligation would be H 611.00 Million
Actuarial (gains) / losses arising from experience adjustments 3.67 14.15 (H 552.13 Million) as at March 31, 2022.
Components of defined benefit costs recognised in other comprehensive income (7.33) 26.59
Total 84.45 99.54 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 current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’ the assumptions may be correlated.
line item in the consolidated statement of profit and loss. The remeasurement of the net defined benefit liability
is included in other comprehensive income. 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
The amount included in the consolidated balance sheet arising from the entity’s obligation in that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
respect of its defined benefit plans is as follows:
H In Million
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Particulars 31-Mar-22 31-Mar-21

There has been no change in the process used by the Group to manage its risks from prior periods.
Present value of funded defined benefit obligation 575.73 519.11
Fair value of plan assets (138.80) (134.26) Expected future Cash outflows towards the plan are as follows:
Funded status 436.93 384.85 H In Million
Disclosed in liabilities directly attributable to the assets held for sale - -
Particulars Amount
Net liability arising from defined benefit obligation 436.93 384.85
2022-23 66.02
2023-24 58.39
Movements in the present value of the defined benefit obligation are as follows: 2024-25 58.48
H In Million 2025-26 64.03
Year ended 2026-27 71.43
Particulars
31-Mar-22 31-Mar-21 2027-28 to 2031-32 267.16
Opening defined benefit obligation 519.11 436.28
Expenses recognised in statement of profit and loss
Current service cost 68.07 55.71
Interest cost 32.46 26.64
Remeasurement (gains)/losses:
Actuarial gains and losses arising from changes in demographic assumptions 3.83 12.92
Actuarial gains and losses arising from changes in financial assumptions (12.86) (4.73)
Actuarial gains and losses arising from experience adjustments 3.67 14.15
Benefits paid (38.06) (21.86)
Acquisition/divestiture (0.49) -
Closing defined benefit obligation 575.73 519.11

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 47 Lease arrangements Note No. 49 Related Party Transactions : List of the Related Parties
The Group as lessor:
Particulars Fairmed
Leasing arrangement
Associates Aponia Laboratories Inc, USA
The Group has entered into operating lease arrangement for lease of factory land & building for a term ranging
Juno OTC Inc, Canada (upto June 14, 2021)
from 4 to 18 years with non-cancellable lease period of 4 to 8 years. Details relating to these assets and minimum
Regional  Bio Equivalence Centre S.C., Ethiopia
lease rentals receivable are as follows:
Stelis Biopharma Limited, India (formerly Stelis Biopharma Private
H In Million
Limited)
Particulars 31-Mar-22 31-Mar-21 Stelis Biopharma LLC, USA (upto Jan 12, 2022)
Gross carrying amount of assets leased 134.04 960.23 Stelis Pte. Ltd, Singapore
Accumulated depreciation 5.89 281.88 Biolexis Private Limited, India (with effect from Jan 17, 2022)
Future minimum lease income: Strides Consumer Private Limited, India
Not later than 1 year 16.04 27.98 Strides Consumer LLC, USA
Later than 1 year but not later than 5 years - 16.04 Strides Global Consumer Healthcare Limited, UK
Later than 5 years - - Enterprises owned or significantly influenced by Agnus Capital LLP, India
Total 16.04 44.02 key management personnel and relative of key Agnus Ventures LLP, India
management personnel Alivira Animal Health Limited, India
Note No. 48 Earnings per share Atma Projects, India
Aurore Life Sciences Private Limited, India
For the year ended Aurore Pharmaceuticals Private Limited, India
Particulars Axxelent Pharma Science Private Ltd, India
31-Mar-22 31-Mar-21
Biolexis Pte. Ltd., Singapore
Basic earnings per share:
Brooks Steriscience Limited, India
From continuing operations (51.28) 28.40
Chayadeep Properties Private Limited, India
From discontinued operations - 1.56
Dairy Power Limited, India
Total basic earnings per share (51.28) 29.96
Hydra Active Pharma Sciences Private Limited, India (formerly
Diluted earnings per share: Tenshi Active Pharma Private Limited)
From continuing operations (51.28) 28.37 Karuna Healthcare Private Limited, India
From discontinued operations - 1.55 Karuna Business Solutions LLP, India
Total diluted earnings per share (51.28) 29.92 Lifecell International Private Limited, India
Naari Pharma Private Limited, India
Earnings used in computing basic and diluted earnings per share Naari Pte Ltd., Singapore
H In Million SeQuent Scientific Limited, India (upto September 8, 2020)
For the year ended SeQuent Research Limited, India (upto September 8, 2020)
Particulars
31-Mar-22 31-Mar-21 Shasun USA Inc, USA
Profit/(loss) attributable to the equity holders of the Company Shasun Enterprises LLP (Formerly known as Devendra Estates LLP)
From continuing operations (4,602.11) 2,545.01 Six Rays LLP, India
From discontinued operations - 139.41 Six Rays Pharma Solutions LLP, India
Total operations (4,602.11) 2,684.42 Six Rays Pte. Limited, Singapore
Six Rays Holdings Pte. Ltd., Singapore
Weighted average number of shares used as the denominator Solara Active Pharma Sciences Limited, India
H In Million Steriscience Specialities Private Limited, India
For the year ended Steribrooks Penems Private Limited
Particulars Steriscience BV, Netherland
31-Mar-22 31-Mar-21
Steriscience Pte Ltd
Weighted average number of equity shares used as denominator in calculating basic 8,97,47,525 8,96,09,605
earnings per share Tenshi Kaizen Private Limited, India
Adjustments for calculation of diluted earnings per share: Tenshi Kaizen Pharma Pte Ltd, Singapore
- employee stock options 38,941 99,798 Tenshi Life Sciences Private Limited, India
Weighted average number of equity shares used as denominator in calculating diluted 8,97,86,466 8,97,09,403 Tenshi Life Sciences Pte. Limited, Singapore
earnings per share Velbiom Proboitics Private Limited, India (formerly Tenshi Life Care
Private Limited, India)
Note: Potential ordinary shares are antidilutive when their conversion to ordinary shares would increase earnings Tenshi Kaizen USA Inc, USA
per share or decrease loss per share from continuing operations. The calculation of diluted earnings per share Tenshi Pharmaceuticals Private Limited (formerly known as
does not assume conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive Sovizen Life Sciences Private Limited, India and Steriscience Private
effect on earnings per share. Limted, India)
Triphase Pharmaceuticals Pvt Ltd
White Crow Research Private Limited, India

190 | Annual Report 2021-22 | 191

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million

Particulars Fairmed Enterprises owned or

Joint ventures and Directors / KMP / Relatives significantly influenced by
Joint Ventures (JV) Sihuan Strides (HK) Ltd, Hongkong (49%) Associates of KMP Directors or KMP or their
Key Management Personnel (KMP) Mr. Arun Kumar, Chairman and Non-Executive Director (with effect Particulars relatives
from April 1,2020) As at As at As at As at As at As at
Dr. R Ananthanarayanan, Managing Director and CEO (upto March 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
31, 2022) 3 Tenshi Life Sciences Private Limited - - - - 0.05 -
Mr. Badree Komandur, Executive Director - Finance and Group CFO 4 Tenshi Pharmaceuticals Private Limited - - - - 0.05 -
Mr. Deepak Vaidya, Non-Executive Director Balance of (trade payables) net of advance paid as at:
Mr. Bharat D Shah, Independent Director 1 Atma Projects - - - - (16.98) (8.19)
Mr. S.Sridhar, Independent Director 2 Aurore Life Sciences Private Limited - - - - (202.24) (161.70)
Dr. Kausalya Santhanam, Independent Director
3 Aurore Pharmaceuticals Private Limited - - - - (144.40) (23.75)
Mr. Homi Rustam Khusrokhan, Independent Director
4 Chayadeep Properties Private Limited - - - - (2.44) (3.86)
Ms. Manjula Ramamurthy, Company Secretary
5 Devendra Estates LLP - - - - - (0.28)
6 Juno OTC Inc. - (3.34) - - - -
Related party closing balances
7 Naari Pharma Private Limited - - - - 3.40 -
H In Million 8 Naari Pte Ltd. - - - - (7.68) -
Enterprises owned or 9 Solara Active Pharma Sciences Limited - - - - (1,159.58) (1,693.24)
Joint ventures and Directors / KMP / Relatives significantly influenced by
10 Stelis Biopharma Limited (0.73) - - - - -
Associates of KMP Directors or KMP or their
Particulars relatives 11 Strides Consumer Private Limited (0.22) (1.25) - - - -
As at As at As at As at As at As at 12 Strides Global Consumer Healthcare (1.25) (1.38) - - - -
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Limited
Other Financial Assets (Liabilities) and Other Assets (Liabilities): 13 Tenshi Kaizen Private Limited - - - - (8.18) (0.14)
1 Naari Pharma Private Limited - - - - 0.36 3.47 14 Tenshi Life Sciences Private Limited - - - - (0.56) -
2 Shasun USA Inc - - - - 42.49 42.62 Balance of trade receivables (net of advance received) as at:
3 Sihuan Strides (HK) Limited (114.59) (110.40) - - - - 1 Alivira Animal Health Limited - - - - - 1.18
4 Solara Active Pharma Sciences Limited - - - - 20.31 23.15 2 Aurore Life Sciences Private Limited - - - - 0.16 0.11
5 Stelis Biopharma Limited 12.62 (7.31) - - - - 3 Axxelent Pharma Science Private Ltd - - - - 0.01 -
6 Stelis Biopharma LLC - 4.42 - - - - 4 Biolexis Pte Ltd - - - - 0.15 0.33
7 Strides Consumer Private Limited 22.47 12.32 - - - - 5 Brooks Steriscience Limited - - - - 0.41 -
8 Strides Consumer LLC 35.77 25.42 - - - - 6 Karuna Healthcare Private Limited - - - - 0.02 -
9 Strides Global Consumer Healthcare 7.25 1.21 - - - - 7 Dairy Power Limited - - - - - 2.14
Limited 8 Juno OTC Inc. - 2.03 - - - -
10 Tenshi Life Sciences Private Limited - - - - 3.31 3.25 9 Naari Pharma Private Limited - - - - 29.02 32.33
11 Velbiom Proboitics Private Limited - - - - 5.86 5.86 10 Sihuan Strides (HK) Ltd 43.40 35.69 - - - -
12 Tenshi Kaizen Private Limited - - - - - 0.38 11 Six Rays Llp - - - - 0.06 -
13 Tenshi Kaizen USA Inc - - - - - 6.24 12 Six Rays Pharma Solutions - - - - 0.06 0.80
14 Mr. Arun Kumar - - (0.20) (1.00) - - 13 Six Rays Pte. Limited - - - - 0.49 2.77
15 Dr. R Ananthanarayanan - - 111.90 (18.00) - - 14 Sixrays Holdings Pte Ltd - - - - 0.26 -
16 Mr. Deepak Vaidya - - (0.10) (1.19) - - 15 Solara Active Pharma Sciences Limited - - - - 14.98 18.51
17 Mr. S.Sridhar - - (0.10) (1.19) - - 16 Stelis Biopharma Limited 29.99 0.02 - - - -
18 Mr. Homi Rustam Khusrokhan - - (0.10) (1.19) - - 17 Stelis Pte Ltd 3.69 0.33 - - - -
19 Mr. Bharat D Shah - - (0.10) (1.19) - - 18 Steribrooks Penems Private Limited - - - - 0.09 0.08
20 Mr. Badree Komandur - - - (3.75) - - 19 Steriscience BV - - - - - 0.33
21 Dr. Kausalya Santhanam - - (0.10) (1.52) - - 20 Steriscience Pte Ltd - - - - 2.77 8.38
Loans receivable as at: 21 Steriscience Specialties Private Limited - - - - 1.39 1.34
1 Juno OTC Inc. - 73.84 - - - - 22 Strides Consumer Private Limited 14.78 12.97 - - - -
2 Strides Consumer Private Limited 30.00 30.00 - - - - 23 Strides Global Consumer Healthcare 0.12 1.85 - - - -
Balance of deposits paid: Limited
1 Atma Projects - - - - 69.96 69.96 24 Strides Consumer LLC 8.90 23.37 - - - -
2 Chayadeep Properties Private Limited - - - - 21.88 33.23 25 Tenshi Kaizen Private Limited - - - - 12.39 0.99
Balance of deposits received: 26 Tenshi Kaizen Pharma Pte Ltd - - - - 0.18 0.33
1 Solara Active Pharma Sciences Limited - - - - 7.20 7.20 27 Tenshi Kaizen USA Inc - - - - 1.32 1.21
2 Karuna Healthcare Private Limited - - - - 0.05 - 28 Tenshi Life Sciences Pte ltd - - - - 0.15 0.33
29 Tenshi Life Sciences Private Limited - - - - - 12.32

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million H In Million

Enterprises owned or Enterprises owned or

Joint ventures and Directors / KMP / Relatives significantly influenced by Joint ventures and Directors / KMP / Relatives significantly influenced by
Associates of KMP Directors or KMP or their Associates of KMP Directors or KMP or their
Particulars relatives Nature of Transactions relatives
As at As at As at As at As at As at Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
30 Tenshi Pharmaceuticals Private Limited - - - - 0.25 0.18 3 Aurore Life Sciences Private Limited - - - - 0.05 0.52
31 Triphase Pharmaceuticals Pvt Ltd - - - - - 0.04 4 Axxlent Pharma Science Pvt Ltd - - - - 0.08 -
32 Velbiom Proboitics Private Limited - - - - 0.58 0.58 5 Biolexis Pte Ltd - - - - 0.31 0.33
6 Brooks Steriscience Private Limited - - - - 0.35 -
Related party transactions 7 Dairy Power Limited - - - - 1.20 1.82
H In Million 8 Hydra Active Pharma Science Priavte - - - - 0.75 -
Limited
Enterprises owned or
9 Naari Pharma Private Limited - - - - 24.10 23.14
Joint ventures and Directors / KMP / Relatives significantly influenced by
Associates of KMP Directors or KMP or their 10 Naari Pharma Pte Limited - - - - - 0.39
Nature of Transactions relatives 11 Shasun USA Inc - - - - 13.28 17.37
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 12 Six rays LLP - - - - 0.60 -
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
13 Six Rays Pharma Solutions Llp - - - - 0.61 1.50
Sales of materials/services (net of returns)
14 Six Rays Pte. Limited - - - - 0.31 0.33
1 Juno OTC Inc. 6.38 0.32 - - - -
15 Sixrays Holdings Pte Ltd - - - - 0.26 -
2 Steriscience Pte Limited - - - - 90.49 -
16 Solara Active Pharma Sciences Limited - - - - 107.99 93.48
3 Stelis Biopharma Limited 0.01 - - - - -
17 Stelis Biopharma Limited 85.43 23.37 - - - -
4 Sihuan Strides (HK) limited 7.44 35.81 - - - -
18 Stelis Pte Ltd 3.36 0.33 - - - -
5 Six Rays Pte. Limited - - - - - 352.23
19 Steribrooks Penems Private Limited - - - - 1.48 0.77
6 Solara Active Pharma Sciences Limited - - - - 0.01 -
20 Steriscience BV - - - - 0.07 0.33
7 Steriscience Specialties Private Ltd - - - - 0.08 0.02
21 Steriscience Pte Ltd - - - - 8.06 8.33
8 Strides Consumer LLC 46.53 92.64 - - - -
Support service income
9 Strides Consumer Private Limited 8.12 10.46 - - - -
22 Steriscience Specialties Private Ltd - - - - 13.92 3.42
10 Strides Global Consumer Healthcare 3.64 0.69 - - - -
23 Strides Consumer LLC 5.77 8.53 - - - -
Limited
24 Strides Consumer Private Limited 6.29 3.80 - - - -
11 Tenshi Kaizen Private Limited - - - - - 0.01
25 Strides Global Consumer Healthcare 5.15 4.83 - - - -
12 Tenshi Pharmaceuticals Private Limited - - - - 0.05 0.03
Limited
Sale of Property, plant and equipment
26 Tenshi Kaizen Private Limited - - - - 24.82 14.74
1 Tenshi Kaizen Private Limited - - - - 3.20 -
27 Tenshi Kaizen Pharma Pte Ltd - - - - 0.08 0.33
2 Stelis Biopharma Limited - 2.93 - - - -
28 Tenshi Kaizen USA Inc - - - - 0.45 1.88
Sale of Investment property
29 Tenshi Life Science Pte Ltd - - - - 0.31 0.33
1 Karuna Business Solutions LLP - - - - 630.00 -
30 Tenshi Life Sciences Private Limited - - - - 38.36 39.82
Guarantee Commission received
31 Tenshi Pharmaceuticals Private Limited - - - - 2.45 2.70
1 Stelis Biopharma Limited 52.16 41.31 - - - -
32 Triphase Pharmaceuticals Pvt Ltd - - - - 0.48 0.48
Rental income
33 Velbiom Proboitics Private Limited - - - - 1.40 1.20
1 Solara Active Pharma Sciences Limited - - - - 15.18 15.24
Support service expense
2 Karuna Health Care Private Limited - - - - 0.01 -
1 Strides Consumer Private Limited 1.19 1.08 - - - -
3 Stelis Biopharma Limited 0.01 - - - - -
Purchase of materials/services
4 Tenshi Life Sciences Private Limited - - - - 0.01 -
1 Aurore Life Sciences Private Limited - - - - 245.03 295.79
5 Tenshi Pharmaceuticals Private Limited - - - - 0.01 -
2 Aurore Pharmaceuticals Private Limited - - - - 336.60 28.74
6 Strides Consumer Private Limited 0.89 0.96 - - - -
3 Naari Pharma Private Limited - - - - 3.44 -
Interest income
4 Naari Pte Ltd. - - - - 10.91 -
1 Juno OTC Inc. 0.56 4.96 - - - -
5 SeQuent Research Limited - - - - - 0.08
2 Strides Consumer Private Limited 3.00 3.00 - - - -
6 Solara Active Pharma Sciences Limited - - - - 1,109.05 2,556.92
Support service income
7 Stelis Biopharma Limited 46.03 - - - - -
1 Agnus Capital LLP - - - - - 1.60
2 Alivira Animal Health Limited - - - - - 16.75

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million H In Million

Enterprises owned or Enterprises owned or

Joint ventures and Directors / KMP / Relatives significantly influenced by Joint ventures and Directors / KMP / Relatives significantly influenced by
Associates of KMP Directors or KMP or their Associates of KMP Directors or KMP or their
Nature of Transactions relatives Nature of Transactions relatives
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
8 Strides Global Consumer Healthcare 8.78 4.59 - - - - 12 Strides Global Consumer Healthcare 9.41 5.68 - - - -
Limited Limited
9 Tenshi Kaizen Private Limited - - - - 19.42 0.12 13 Tenshi Life Sciences Private Limited - - - - - 13.41
10 Lifecell International Pvt. Ltd - - - - - 0.74 14 Tenshi Kaizen Private Limited - - - - - 0.00
11 White Crow Research Private Limited - - - - - 1.09 15 Tenshi Kaizen USA Inc - - - - 1.38 2.52
Purchase / (returns) of Intangibles Reimbursement of expenses incurred by
1 Stelis Biopharma Limited (7.31) 7.31 - - - - 1 Aurore Life Sciences Private Limited - - - - 0.04 0.09
Short Term Employee Benefits paid to (Refer note (i) below) 2 Chayadeep Properties Private Limited - - - - 1.22 -
1 Mr. Arun Kumar - - - 6.27 - - 3 Juno OTC Inc. 0.53 0.39 - - - -
2 Dr. R Ananthanarayanan - - 88.85 177.32 - - 4 Solara Active Pharma Sciences Limited - - - - 98.13 167.62
3 Mr. Badree Komandur - - 46.05 41.26 - - (Refer note ii below)
4 Ms. Manjula Ramamurthy - - 7.63 4.72 - - 5 Strides Consumer Private Limited - 0.05 - - - -
Employee stock option expenses 6 Tenshi Kaizen USA Inc - - - - 6.35 -
1 Mr. Badree Komandur - - 0.24 0.93 - - 7 Strides Global Consumer Healthcare 3.77 - - - - -
Limited
2 Ms. Manjula Ramamurthy - - 0.05 0.19 - -
Lease deposit received
Sitting Fees paid to
1 Tenshi Life Sciences Private Limited - - - - 0.05 -
1 Mr. Arun Kumar - - 0.80 0.50 - -
2 Karuna Health Care Private Limited - - - - 0.05 -
1 Dr. Kausalya Santhanam - - 3.09 3.26 - -
3 Tenshi Pharmaceuticals Private Limited - - - - 0.05 -
2 Mr. Deepak Vaidya - - 1.30 1.70 - -
Lease deposit Paid/ (refund)
3 Mr. S.Sridhar - - 1.30 1.70 - -
1 Chayadeep Properties Private Limited - - - - (11.35) -
4 Mr. Homi Rustam Khusrokhan - - 1.30 1.70 - -
Investments during the year
5 Mr. Bharat D Shah - - 1.20 1.70 - -
1 Strides Global Consumer Healthcare - 165.03 - - - -
Remuneration to Non-executive directors
Limited
1 Mr. Arun Kumar - - - 1.00 - -
2 Stelis Biopharma Limited 51.06 2,369.95 - - - -
2 Mr. Deepak Vaidya - - - 1.00 - -
Investments sold to
3 Dr. Kausalya Santhanam - - - 1.00 - -
1 Strides Global Consumer Healthcare - 162.80 - - - -
4 Mr. S.Sridhar - - - 1.00 - - Limited
5 Mr. Homi Rustam Khusrokhan - - - 1.00 - -
6 Mr. Bharat D Shah - - - 1.00 - - Notes
Lease Payments
i. The compensation excludes gratuity & compensated absences which cannot be separately identified from
1 Atma Projects - - - - 90.32 85.21
the composite amount advised by the actuary.
2 Chayadeep Properties Private Limited - - - - 37.91 40.65
3 Shasun Enterprises LLP - - - - 2.29 3.32
ii. Transactions and balances with its own subsidiaries which are eliminated on consolidation are not included
Reimbursement of expenses incurred on behalf of above.
1 Juno OTC Inc. - 0.04 - - - -
2 Agnus Ventures LLP - - - - 0.09 - Note No. 50 Subsidiary information
3 Chayadeep Properties Private Limited - - - - 0.30 -
50.1 Details of the Group’s subsidiaries at the end of the reporting period are as follows:
4 Naari Pharma Private Limited - - - - 0.16 0.11
5 Solara Active Pharma Sciences Limited - - - - 0.01 23.82
6 Stelis Biopharma LLC 3.68 5.28 - - - - Proportion of ownership
7 Stelis Biopharma Limited 3.96 2.73 - - - - SI. Place of interest and voting power held
Name of the subsidiary Principal activity by the Group
No. Incorporation
8 Steriscience Pte Limited - - - - 9.18 -
31-Mar-22 31-Mar-21
9 Steriscience Specialties Private Ltd - - - - 0.00 0.79
1 Altima Innovations Inc. Trading in pharmaceutical products USA 100.00% 100.00%
10 Strides Consumer Private Limited 13.05 20.61 - - - -
2 Apollo Life sciences Holdings Registration and marketing of South Africa 51.76% 51.76%
11 Strides Consumer LLC 8.08 4.41 - - - - Proprietary Limited pharmaceutical products
3 Arco Lab Private Limited Outsourcing and business support India 100.00% 100.00%
services

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Proportion of ownership Proportion of ownership

SI. Place of interest and voting power held SI. Place of interest and voting power held
Name of the subsidiary Principal activity by the Group Name of the subsidiary Principal activity by the Group
No. Incorporation No. Incorporation
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
4 Arrow Life Sciences (Malaysia) Trading in pharmaceutical products Malaysia 100.00% 100.00% 41 Vensun Pharmaceuticals, Inc. Develop and trade in USA 100.00% 100.00%
SDN. BHD. pharmaceutical products
5 Arrow Pharma Pte. Ltd. Investment Holding Singapore 100.00% 100.00% 42 Vivimed Life Sciences Private Manufacturing, development and India 100.00% 100.00%
6 Arrow Pharma (Private) Limited* Trading in pharmaceutical products Sri Lanka 0.00% 100.00% Limited trading in pharmaceuticals products
7 Arrow Pharma Life Inc.* Trading in pharmaceutical products Philippines 0.00% 100.00% Notes
8 Beltapharm S.P.A Manufacturing and trading in Italy 97.94% 97.94%
* Divested/Liquidated during the year.
pharmaceutical products
# Merged with Strides Pharma Global Pte. Limited (Refer note 50.2.2)
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% 50.2 Business combination under common control
12 Generic Partners (International) Supplying and distributing generic Singapore 0.00% 100.00% 50.2.1 The Scheme u/s 230 to 232 of the Companies Act, 2013, between Strides (the transferee company), Strides
Pte. Ltd# pharmaceutical products Emerging Market Limited, Arrow Remedies Private Limited, and Fagris Medica Private Limited (together, the
13 Generic Partners (Canada) Inc* Supplying and distributing generic Canada 0.00% 100.00% transferor companies) with an appointed date of April 1, 2019 was approved by the National Company Law
pharmaceutical products
Tribunal (NCLT), Bangalore Bench vide order dated May 28, 2020 and by the NCLT, Maharashtra Bench vide order
14 Generic Partners UK Ltd Supplying and distributing generic UK 100.00% 100.00%
dated November 6, 2020.
pharmaceutical products
15 Generic Partners (R&D) Pte Development of pharmaceutical Singapore 0.00% 100.00%
Limited# products Particulars Date of control
16 PharmaPar Inc. Trading in pharmaceutical products Canada 100.00% 80.00% Strides Emerging Market Limited 01-Jun-12
17 Shasun Pharma Solutions Inc.* Trading in pharmaceutical products USA 0.00% 100.00% Arrow Remedies Private Limited 12-Sep-15
18 Stabilis Pharma Inc. Trading in pharmaceutical products USA 100.00% 100.00% Fagris Medica Private Limited 31-Mar-17
19 Stelis Biopharma (Malaysia) SDN. Develop, manufacture, market Malaysia 100.00% 100.00%
BHD and trade in pharmaceutical and
Salient features of the Scheme
ancillary products
1. As the Transferee Company is the ultimate holding company of the Transferor Companies, there shall not
20 Strides Arcolab International Ltd. Investment Holding UK 100.00% 100.00%
be any issue of shares as purchase consideration to the sharholders of the Transferor Companies. Further,
21 Strides CIS Limited Trading in pharmaceutical products Cyprus 100.00% 100.00%
upon the scheme becoming effective the investments in the share capital of the Transferor companies,
22 Strides Foundation Trust Carrying out Social Responsibility India - -
activities
appearing in the books of accounts of the Transferee Company, if any, stands cancelled.
23 Strides LifeSciences Limited Trading in pharmaceutical products Nigeria 100.00% 100.00%
2. Upon the Scheme becoming effective, the authorised share capital of the Transferor Companies shall stand
24 Strides Netherlands B.V. Trading in pharmaceutical products Netherlands 100.00% 100.00%
combined with the authorised share capital of the Transferee Company. Accordingly, the authorised share
25 Strides Nordics ApS Trading in pharmaceutical products Denmark 100.00% 100.00%
capital of the Company will be H 1,883,700,000 comprising 188,370,000 shares of H 10 each, with effect from
26 Strides Pharma (Cyprus) Limited Trading in pharmaceutical products Cyprus 100.00% 100.00%
appointed date.
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%
3. On the Scheme becoming effective and with effect from the Appointed Date, the merger of the Transferor
29 Strides Pharma Asia Pte. Ltd. Investment Holding Singapore 100.00% 100.00%
Companies with the Transferee Company is accounted by the Transferee Company as per the applicable
30 Strides Pharma Science Pty Ltd Trading in pharmaceutical products Australia 100.00% 100.00%
accounting principles prescribed under the Indian Accounting Standard (Ind AS) 103, ‘Business
31 Strides Pharma Canada Inc. Trading in pharmaceutical products Canada 100.00% 100.00%
Combinations’ notified under Section 133 of the Act and/ or any other applicable Ind AS, as amended
32 Strides Pharma Global Pte. Develop, manufacture, market Singapore 100.00% 100.00%
from time to time.
Limited and trade in pharmaceutical and
ancillary products
33 Strides Pharma Inc. Manufacturing and trading in USA 100.00% 100.00%
4. On scheme becoming effective, the securities premium of Strides Emerging Markets Limited have been
pharmaceutical products recorded as securties premium for Strides Pharma Science Limited with a coresponding adjustment to
34 Strides Pharma International Investment Holding Cyprus 100.00% 100.00% capital reserve.
Limited
35 Strides Pharma UK Ltd. Trading in pharmaceutical products UK 100.00% 100.00% 5. This merger had no material impact on Consolidated financial statements, since these were already being
36 Strides Pharma Latina, SA De CV Trading in pharmaceutical products Mexico 80.00% 80.00% consolidated.
37 Strides Vivimed Pte. Ltd.# Trading in pharmaceutical products Singapore 0.00% 100.00%
38 SVADS Holdings SA Develop and trade in Switzerland 100.00% 100.00% 50.2.2 During the year, the wholly owned subsidiaries of the group, namely, Generic Partners (International) Pte
pharmaceutical products Limited, Generic Partners (R&D) Pte Limited, and Strides Vivimed Pte Limited got merged with another wholly
39 Trinity Pharma (Pty) Ltd. Registration and marketing of South Africa 51.76% 51.76% owned subsidiary of the group, Strides Pharma Global Pte. Limited, Singapore, with effect from 1 June, 2021. The
pharmaceutical products merger was apporved by the Accounting and Corporate Regulatory Authority of Singapore (ACRA). The merger
40 Universal Corporation Limited Manufacturing, development and Kenya 51.00% 51.00% had no impact on Consolidated financial statements, since these entities were already being consolidated.
trading in pharmaceuticals products

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million
Note No. 51 Financial instruments Fair value as at Fair value
Financial assets / financial liabilities Valuation technique(s) and key input(s)
51.1 Categories of financial instruments 31-Mar-22 31-Mar-21 hierarchy

H In Million Financial assets:

Particulars 31-Mar-22 31-Mar-21 Foreign currency forward 9.08 64.54 Level 2 The fair value of forward foreign contracts are
contracts designated in hedge determined using spot and forward exchange rates
Financial assets:
accounting relationships (FVTOCI) at the balance sheet date.
Measured at fair value through profit or loss (FVTPL)
Investment in Mutual fund - 994.12 Level 1 The fair value is determined based on the Net asset
(a) Mandatorily measured:
(quoted) value published by respective funds.
(i) Investment in Mutual funds - 994.12
Investment in equity instruments 47.83 141.02 Level 1 The fair value of the said investment is derived
Measured at amortised cost
at FVTOCI (quoted) based on the quoted prices on stock exchanges.
(a) Cash and bank balances 1,873.52 1,797.65
Financial liabilities:
(b) Loans 78.24 144.38
(c) Trade receivables 12,073.01 11,105.87 Gross obligation under put 242.88 330.81 Level 3 The said obligation under put options are valued
options using Black Scholes / Monte carlo simulation
(d) Other financial assets at amortised cost 6,357.00 5,827.51
model. Significant unobservable inputs used
Measured at FVTOCI for the said valuation are volatility and risk free
(a) Fair value of derivatives designated in a cash flow hedge 9.08 64.54 interest rate (Discount rate). Refer note (a) below
(b) Investments in certain equity instruments designated upon initial recognition 47.83 141.02 Contingent consideration payable 473.63 408.91 Level 3 The fair value has been derived based on the
estimated payout based on the projected profits
Financial liabilities: of the subsidiary and discounted for the present
value using the risk free interest rate / weighted
Measured at fair value through profit or loss (FVTPL)
average cost of capital.
(a) Gross obligation under written put option 242.88 330.81
Cash settled share based 33.00 52.80 Level 3 The fair value of cash settled share based
(b) Derivative financial liabilities 1.79 -
payments (FVTPL) payments is determined using Black Scholes
(c) Other financial liabilities 506.63 461.71 model. Significant input is underlying value of the
Measured at amortised cost equity shares of the company.
(a) Borrowings (including current maturities of non-current borrowings) 27,919.60 21,033.88 Foreign currency forward 1.79 - Level 2 The fair value of forward foreign contracts are
(b) Security deposit 29.00 39.59 contracts designated in hedge determined using forward exchange rates at the
(c) Trade payables 10,715.24 11,342.00 accounting relationships (FVTPL) balance sheet date.
(d) Unclaimed dividends 10.91 21.68 Foreign currency forward 3.84 - Level 2 The fair value of forward foreign contracts are
(e) Payables on purchase of property, plant and equipments and intangible assets 171.06 211.39 contracts designated in hedge determined using forward exchange rates at the
accounting relationships (FVTOCI) balance sheet date.
(f) Payables on purchase of non-current investments 114.59 110.40
(g) Lease liabilities 2,330.65 2,448.37 Interest rate swaps designated in 69.44 271.74 Level 2 Future cash flows are estimated based on forward
hedge accounting relationships interest rates (from observable yield curves at the
(h) Other financial liabilities 573.95 557.11
(FVTOCI) end of the reporting period) and contract interest
Measured at FVTOCI rates, discounted at a rate that reflects the credit
(a) Derivative financial liabilities 73.28 271.74 risk of various counterparties.

51.1.1 Fair value hierarchy Notes:

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: 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
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. of the fair value within that range.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, Reconciliation of Level 3 fair value measurements
either directly (i.e. as prices) or indirectly (i.e. derived from prices). a) Gross obligation under put options
H In Million
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Particulars 31-Mar-22 31-Mar-21

51.1.2 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a Opening balance 330.81 82.37
recurring basis Add: Payable on new acquisitions - 223.01
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting Less: Exercise of put options (95.00) -
period. The following table gives information about how the fair values of these financial assets and financial Add: Cancellation / losses in the statement of profit and loss 9.11 12.05
liabilities are determined (in particular, the valuation technique(s) and input(s) used). Add: Currency translations in other comprehensive income (2.04) 13.38
Closing balance 242.88 330.81

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

b) Contingent consideration payable The following table details the forward foreign currency contracts outstanding at the end of the reporting period:
H In Million
Contracts designated in a cash flow hedge
Particulars 31-Mar-22 31-Mar-21
Opening balance 408.91 535.72
Fair value
Disposal / settlements (26.43) (185.99) Underlying
Average Foreign Nominal
assets
Outstanding contracts exchange currency (USD amounts
Add: Unwinding of discounting in the statement of profit and loss 74.63 74.35 Exposure (liabilities) (H
rate (H) in Million) (H in Million)
Less: Currency translations in other comprehensive income 16.52 (15.17) in Million)

Closing balance 473.63 408.91 As at March 31, 2022

Sell AUD
The above said gain / loss on fair valuation of options and contingent consideration is recognised in the statement Less than 3 months Forecasted 57.64 6.00 345.84 348.86
of profit and loss under “Exceptional items”. 3 to 6 months sales 57.13 6.00 342.78 338.94
6 to 12 months 59.23 12.00 704.40 710.46
51.1.3 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value Total 1,393.02 1,398.26
disclosures are required) As at March 31, 2021
Except as detailed in the following table, the Group considers that the carrying amounts of financial assets and Sell USD Forecasted
financial liabilities recognised in the financial statements at amortized cost will reasonably approximate their Less than 3 months sales 77.01 15.00 1,155.28 1,208.78
fair values. Sell GBP Forecasted
H In Million 6 to 12 months sales 106.67 6.00 640.04 651.08
31-Mar-22 31-Mar-21 Total 1,795.32 1,859.86
Particulars
Carrying Amount Fair Value Carrying Amount Fair Value
Financial assets The line-items in the Consolidated balance sheet that include the above hedging instruments are “Other financial
Loans receivable 78.24 78.24 144.38 144.38 assets”.
Security deposit 380.70 407.51 284.89 307.36
Financial liabilities Contracts not designated in a cash flow hedge
Borrowings 27,919.60 27,978.73 21,033.88 21,130.01
Foreign Nominal Fair value
Average
Outstanding contracts currency amounts assets (liabilities)
51.2 Financial risk management objectives exchange rate*
(USD in Million) (H in Million) (H in Million)
The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group’s As at March 31, 2022
primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects Trade payable hedged with forward contract with 15.17 0.50 39.05 37.26
on its financial performance. The primary market risk to the Group is foreign exchange risk. The Group uses maturity less than 3 months
derivative financial instruments to mitigate foreign exchange related risk exposures. All derivative activities for Total 39.05 37.26
risk management purposes are carried out by specialist teams that have the appropriate skills, experience and * Average exchange rate of ZAR per USD
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:
The details of unhedged foreign currency exposure are as follows:
H In Million
51.3 Foreign currency risk management
Amount receivable/(payable) As at 31-Mar-22 As at 31-Mar-21
The Group is exposed to foreign exchange risk due to:
in foreign in foreign
Exposure to the Currency in INR in INR
Currency Currency
- debt availed in foreign currency USD (7.28) (552.75) (19.65) (1,437.62)
- net investments in subsidiaries and joint ventures that are in foreign currencies AUD 118.67 6,740.61 105.53 5,865.05
EUR 12.02 1,009.95 5.61 481.72
- exposure arising from transactions relating to purchases, revenues, expenses, etc., to be settled (within and
GBP 13.43 1,339.80 (0.17) (17.12)
outside the group) in currencies other than the functional currency of the respective entities
SGD (27.17) (1,522.13) (29.27) (1,591.85)
Exchange rate exposures are managed within approved policy parameters by utilising forward foreign exchange Others 2.63 165.74 3.80 226.53
contracts.

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.

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

51.3.2 Foreign currency sensitivity analysis (a) Contracts designated in a cash flow hedge
Financial instruments affected by changes in foreign exchange rates include External Commercial Borrowings Borrowing in USD floating rate swaped for repayment in USD fixed rate at March 31, 2022:
(ECBs), loans in foreign currencies to subsidiaries and joint ventures. The Group considers US Dollar and the H In Million
Euro to be principal currencies which require monitoring and risk mitigation. The Group is exposed to volatility Average
in other currencies including the Great Britain Pounds (GBP) and the Australian Dollar (AUD). The impact on contracted Nominal Fair value assets
Outstanding contracts
account of 5% appreciation / depreciation in the exchange rate of the above foreign currencies against Rs. is fixed interest amounts (liabilities)
given below: rate
Less than 1 year 1,003.04 985.48

}
H In Million
1 to 2 years 759.30 742.00
Increase / (decrease) in profit Increase / (decrease) in equity 6.17%
Particulars 2 to 5 years 1,518.60 1,484.02
31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
5 years + - -
Appreciation in the USD (27.64) (71.88) (16.04) (52.34)
Total 3,280.94 3,211.50
Depreciation in the USD 27.64 71.88 16.04 52.34
Appreciation in the EUR 50.50 24.09 34.69 17.30
Borrowing in USD floating rate swaped for repayment in USD fixed rate at March 31, 2021:
Depreciation in the EUR (50.50) (24.09) (34.69) (17.30)
H In Million
Appreciation in the AUD 337.03 293.25 254.90 234.61
Depreciation in the AUD (337.03) (293.25) (254.90) (234.61) Average
contracted Nominal Fair value assets
Appreciation in the GBP 66.99 (0.86) 37.56 (6.93) Outstanding contracts
fixed interest amounts (liabilities)
Depreciation in the GBP (66.99) 0.86 (37.56) 6.93 rate
Less than 1 year 1,024.08 968.81
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
1 to 2 years
2 to 5 years
5 years +
6.17%
} 966.29
2,194.46
-
912.79
2,031.49
-
Total 4,184.83 3,913.09
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 line-item in the consolidated balance sheet that includes the above instruments is “Other financial liabilities”.
The sensitivity analysis might not be representative of inherent foreign exchange risk due to the fact that the
The interest rate swaps settle on a quarterly basis. The floating rate on the interest rate swaps is the local
foreign exposure at the end of the reporting period might not reflect the exposure during the year.
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.
51.4 Interest rate risk management
Interest rate risk arises from borrowings. Debt issued at variable rates exposes the Group to cash flow risk. Debt 51.5 Other price risks
issued at fixed rate exposes the Group to fair value risk. The Group mitigates its interest rate risk by entering
The Group is exposed to equity price risks arising from equity investments. Certain of the Group’s equity
into interest rate swap contracts.
investments are held for strategic rather than for trading purposes.
51.4.1 Interest rate sensitivity analysis
51.5.1 Equity price sensitivity analysis
Financial instruments affected by interest rate changes include secured long term loans from banks, secured
The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of
long term loans from others, unsecured long term loans, secured short term loans from banks and unsecured
the reporting period.
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
If equity prices had been 5% higher/lower, other comprehensive income for the year ended March 31, 2022 would
H 279.79 Million (Previous year : H 211.30 Million) assuming the loans at each year end remain constant during
increase/decrease by H 2.39 Million (for the year ended March 31, 2021: increase/decrease by H 7.05 Million) as a
the respective years. This computation does not involve a revaluation of the fair value of loans as a consequence
result of the changes in fair value of equity investments measured at FVTOCI.
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.
51.6 Credit risk management
51.4.2 Interest rate swap contracts Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate loss to the Group. Credit Risk to the group primarily arises from trade receivables. Credit risk also arises from
interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate cash and cash equivalents, loans, financial instruments and deposits with banks and financial institutions and
the risk of cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps at the end other financial assets.
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 The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
based on the outstanding balances at the end of the reporting period. 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
The following tables detail the nominal amounts and remaining terms of interest rate swap contracts outstanding controlled by counterparty limits that are reviewed and approved by the risk management committee annually.
at the reporting period end. 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.

204 | Annual Report 2021-22 | 205

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 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 H In Million
banks with high credit ratings. Due within (years) Carrying
Financial liabilities Total
1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5 Amount
In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by Trade and other payable
computing the expected credit allowance for trade receivables based on a provision matrix. The provision matrix not in net debt
takes into account historical credit loss experience and is adjusted for forward looking information. The expected - As on March 31, 2022 12,227.35 613.13 444.62 259.84 212.61 1,970.79 15,728.34 14,393.93
credit loss allowance is based on the ageing of the receivables that are due and rates as given in the provision
- As on March 31, 2021 12,714.52 472.54 405.54 376.29 284.12 2,433.17 16,686.18 15,144.40
matrix. The Provision matrix at the end of reporting period as follows:
H In Million
51.8
Capital management
31-Mar-22 31-Mar-21 The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns
Age of receivables Expected credit Expected credit while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital
Trade receivable Trade receivable
loss allowance loss allowance structure of the Group consists of net debt (borrowings as detailed in notes 9,11,17, 18 and 22 offset by cash and
Within Credit 10,098.76 65.72 8,558.18 116.41 bank balances and Investment in Mutual funds) and total equity of the Group.
Less than 180 Days 1,523.55 23.75 2,214.81 84.83
180-360 Days 256.95 40.35 61.71 10.54 The Group reviews the capital structure of the Group on a quarterly basis to ensure that it in compliance with
360-540 Days 102.46 37.85 202.91 30.04 the required covenants. The Group has a target gearing ratio of 1:1 determined as the proportion of net debt to
540-720 Days 6.47 5.67 262.44 147.54 total equity. The gearing ratio at March 31, 2022 is 1.09 (March 31, 2021: 0.64).
Over 720 Days 507.06 248.90 426.00 230.82
Total 12,495.25 422.24 11,726.05 620.18 The Group is not subject to any externally imposed capital requirements.

51.8.1 Gearing ratio

Movement in Expected credit loss allowance
The gearing ratio at end of the reporting period was as follows.
H In Million
H In Million
Particulars 31-Mar-22 31-Mar-21
Particulars 31-Mar-22 31-Mar-21
Balance at the beginning of the year 620.18 684.23
Debt (i) 27,919.60 21,033.88
Written off during the year (183.86) (158.66)
Less:
Movement in Expected credit loss allowance on trade receivables calculated at lifetime (14.08) 94.61
Investment in Mutual funds - 994.12
expected credit losses
Cash and bank balances 1,873.52 1,797.65
Balance at end of the year 422.24 620.18
Fixed deposits with banks with more than 12 months maturity 12.91 139.79
Net Debt (A) 26,033.17 18,102.32
51.7 Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of directors, which has established Total Equity (B) 23,833.16 28,140.02
an appropriate liquidity risk management framework for the management of the Group’s short-term, medium- Net debt to equity ratio (A/B) 1.09 0.64
term 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 (i) Debt is defined as long-term borrowings, current maturities of long-term borrowings and short-term
forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial borrowings and does not include obligations relating to derivatives over non-controlling interests.
assets and liabilities. A portion of the Group’s surplus cash is retained as investments in Liquid Mutual Funds
to fund short term requirements. Note No. 52 Transfer Pricing
The detailed transfer pricing regulations (‘regulations’) for computing the income from “domestic transactions”
51.7.1 Liquidity analysis for non-derivative liabilities with specified parties and international transactions between ‘associated enterprises’ on an ‘arm’s length’ basis is
The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities applicable to the Group. These regulations, inter alia, also require the maintenance of prescribed documents and
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial information including furnishing a report from an Accountant which is to be filed with the Income tax authorities.
liabilities based on the earliest date on which the Group can be required to pay. The table include both interest The Group has undertaken necessary steps to comply with the transfer pricing regulations. The Management is
and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived of the opinion that the transactions with associated enterprises and domestic transactions are at arm’s length,
from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest and hence the aforesaid legislation will not have any material impact on the financial statements, particularly
date on which the Group may be required to pay. on the amount of tax expense and that of provision for taxation.
H In Million

Due within (years) Carrying

Financial liabilities Total
1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5 Amount

Bank and other borrowings

- As on March 31, 2022 19,563.37 5,654.25 937.25 762.98 238.52 822.36 27,978.73 27,919.60
- As on March 31, 2021 12,208.10 1,900.35 4,716.13 1,214.18 1,091.25 - 21,130.01 21,033.88
Interest payable on
borrowings
- As on March 31, 2022 58.10 - - - - - 58.10 58.10
- As on March 31, 2021 47.85 - - - - - 47.85 47.85

206 | Annual Report 2021-22 | 207

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 53
Net assets, i.e., total
Share in other Share in total
(a) Additional information as required by Paragraph 2 of the General Instructions for Preparation assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities
of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 for the year
As % of As % of
ended March 31, 2022 Name of entity
As % of As % of consolidated consolidated
J in J in J in J in
consolidated consolidated other total
Million Million Million Million
net assets profit or loss comprehensive comprehensive
Net assets, i.e., total income income
Share in other Share in total
assets minus total Share in profit or loss
comprehensive income comprehensive income Strides Life Sciences -0.30% (233.65) 0.87% (56.90) 0.00% - 0.88% (56.90)
liabilities
Limited
Name of entity As % of As % of
As % of As % of consolidated consolidated Strides Pharma (Cyprus) 1.69% 1,334.20 -3.30% 215.90 0.00% - -3.34% 215.90
J in J in J in J in Limited
consolidated consolidated other total
Million Million Million Million
net assets profit or loss comprehensive comprehensive Strides Pharma (SA) Pty -0.05% (40.32) 0.48% (31.50) 0.00% - 0.49% (31.50)
income income Limited
Strides Pharma Science 43.26% 34,066.72 -27.55% 1,801.88 -55.78% (40.22) -27.24% 1,761.66 Strides Netherlands B.V. 0.02% 17.99 -0.22% 14.42 0.00% - -0.22% 14.42
Limited
Strides Nordic ApS, -0.01% (11.36) 0.41% (26.61) 0.00% - 0.41% (26.61)
Indian Subsidiaries:
Stides Pharma Science 0.05% 39.35 0.36% (23.58) 0.00% - 0.36% (23.58)
Arco Lab Private Limited 0.20% 161.18 -0.48% 31.31 8.38% 6.04 -0.58% 37.35 Pty Ltd
Strides Foundation Trust 0.04% 30.67 0.01% (0.34) 0.00% - 0.01% (0.34) Strides Pharma Global 1.92% 1,513.55 3.62% (236.47) -8.49% (6.12) 3.75% (242.59)
Vivimed Lifesciences 0.62% 484.98 1.66% (108.82) 1.79% 1.29 1.66% (107.53) (UK) Limited
Private Limited Strides Pharma Asia Pte 19.16% 15,085.97 0.00% (0.01) 0.00% - 0.00% (0.01)
Foreign Subsidiaries: - Limited
Altima Innvovations Inc. 0.00% 0.58 0.00% (0.04) 0.00% - 0.00% (0.04) Strides Pharma Canada 0.49% 389.42 -0.07% 4.29 0.00% - -0.07% 4.29
Apollo Life Sciences 0.00% - -0.06% 4.23 0.00% - -0.07% 4.23 Inc.
Holdings Proprietary Strides Pharma Global Pte 17.90% 14,093.47 75.55% (4,940.82) 247.36% 178.37 73.63% (4,762.45)
Limited Limited
Arrow Life Sciences 0.00% (0.88) 0.00% (0.29) 0.00% - 0.00% (0.29) Strides Pharma Inc. 8.12% 6,391.46 10.77% (704.30) -93.26% (67.25) 11.93% (771.55)
(Malaysia) SDN. BHD. Strides Pharma 1.44% 1,134.61 -0.95% 61.93 0.00% - -0.96% 61.93
Arrow Pharma (Private) 0.00% - 0.00% (0.31) 0.00% - 0.00% (0.31) International Limited
Limited Strides Pharma UK 0.93% 735.30 3.59% (234.86) 0.00% - 3.63% (234.86)
Arrow Pharma Life Inc. 0.00% - -0.02% 1.36 0.00% - -0.02% 1.36 Limited
Arrow Pharma Pte 0.00% 0.86 0.01% (0.98) 0.00% - 0.02% (0.98) Strides Shasun Latina, SA 0.02% 18.19 0.06% (4.01) 0.00% - 0.06% (4.01)
Limited de CV
Beltapharm SpA 0.22% 176.66 0.35% (22.77) 0.00% - 0.35% (22.77) Strides Vivimed Pte 0.00% - 0.01% (0.35) 0.00% - 0.01% (0.35)
ERIS Pharma GmbH. -0.03% (22.87) 0.07% (4.40) 0.00% - 0.07% (4.40) Limited
Germany SVADS Holdings SA 0.55% 436.82 0.92% (60.15) 0.00% - 0.93% (60.15)
Fairmed Healthcare -0.04% (31.23) 3.41% (223.05) 0.00% - 3.45% (223.05) Trinity Pharma 0.41% 324.93 -1.73% 113.26 0.00% - -1.75% 113.26
AG,Switzerland Proprietary Limited
Fair-Med -2.07% (1,633.06) 5.96% (389.47) 0.00% - 6.02% (389.47) Universal Corporation 0.93% 729.03 0.19% (12.21) 0.00% - 0.19% (12.21)
HealthcareGmbH, Limited
Germany Vensun Pharmaceuticals -1.53% (1,208.11) 0.03% (2.19) 0.00% - 0.03% (2.19)
Generic Partners R&D 0.00% - 0.00% - 0.00% - 0.00% - Inc.
Pte Ltd Indian Associates: -
Generic Partners 0.00% - -0.19% 12.60 0.00% - -0.19% 12.60 Stelis Biopharma Private 0.00% - 13.11% (857.50) 0.00% - 13.26% (857.50)
(Canada) Inc. Limited
Generic Partners 0.00% - 0.00% 0.10 0.00% - 0.00% 0.10 Strides Consumer Private 0.00% - 1.18% (77.39) 0.00% - 1.20% (77.39)
(International) Pte Limited
Limited
Biolexis Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Generic Partners UK 0.05% 41.57 0.04% (2.72) 0.00% - 0.04% (2.72)
Foreign Associates: -
Limited
Aponia Laboratories Inc. 0.00% - 0.00% - 0.00% - 0.00% -
Pharmapar Inc. -0.17% (135.05) 1.97% (128.73) 0.00% - 1.99% (128.73)
Juno OTC Canada 0.00% - 0.07% (4.65) 0.00% - 0.07% (4.65)
Shasun Pharma Solutions 0.00% - -0.01% 0.70 0.00% - -0.01% 0.70
Inc. Regional Bio Equivalence 0.00% - 0.00% - 0.00% - 0.00% -
Centre S.C.,
Stabilis Pharma Inc. 0.00% (0.20) 0.00% (0.24) 0.00% - 0.00% (0.24)
Stelis Pte Limited 0.00% - 0.00% - 0.00% - 0.00% -
Stelis Biopharma 0.12% 92.98 -0.02% 1.34 0.00% - -0.02% 1.34
(Malaysia) SDN. BHD.
Strides Arcolab 6.05% 4,760.64 7.33% (479.28) 0.00% - 7.41% (479.28)
International Limited
Strides CIS Limited 0.00% (2.54) 0.00% 0.28 0.00% - 0.00% 0.28

208 | Annual Report 2021-22 | 209

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Net assets, i.e., total Net assets, i.e., total

Share in other Share in total Share in other Share in total
assets minus total Share in profit or loss assets minus total Share in profit or loss
comprehensive income comprehensive income comprehensive income comprehensive income
liabilities liabilities

Name of entity As % of As % of Name of entity As % of As % of

As % of As % of consolidated consolidated As % of As % of consolidated consolidated
J in J in J in J in J in J in J in
consolidated consolidated other total consolidated J in Million consolidated other total
Million Million Million Million Million Million Million
net assets profit or loss comprehensive comprehensive net assets profit or loss comprehensive comprehensive
income income income income
Stelis Biopharma LLC 0.00% - 0.00% - 0.00% - 0.00% - ERIS Pharma GmbH. -0.02% (19.97) -0.02% (0.64) 0.00% - -0.02% (0.64)
Strides Consumer LLC 0.00% - 0.00% - 0.00% - 0.00% - Germany
Strides Global Consumer 0.00% - 2.35% (153.89) 0.00% - 2.38% (153.89) Fairmed Healthcare 0.16% 126.11 0.92% 32.90 0.00% - 0.82% 32.90
Healthcare Limited AG,Switzerland
Foreign Joint ventures: - Fair-Med -1.69% (1,367.75) -10.68% (381.41) 0.00% - -9.47% (381.41)
HealthcareGmbH,
Sihuan Strides (HK) 0.00% - 0.22% (14.69) 0.00% - 0.23% (14.69)
Germany
Limited
Generic Partners R&D 0.00% 3.51 0.00% - 0.00% - 0.00% -
Total 100.00% 78,741.86 100.00% (6,539.92) 100.00% 72.11 100.00% (6,467.81)
Pte Ltd
a) Adjustments arising (55,149.58) 1,937.81 404.93 2,342.74
Generic Partners -0.02% (12.34) -0.40% (14.22) 0.00% - -0.35% (14.22)
out of consolidation
(Canada) Inc.
b) Minority Interest in
Generic Partners 0.00% 3.66 0.00% (0.07) 0.00% - 0.00% (0.07)
all subsidiaries:
(International) Pte
Foreign Subsidiaries: 240.88 (140.39) 12.95 (127.44) Limited
Total 23,833.16 (4,742.50) 489.99 (4,252.51) Generic Partners UK 0.06% 44.72 -0.01% (0.21) 0.00% - -0.01% (0.21)
Limited
(i) The amounts given here in respect of associates and joint ventures are the share of the Group in the profit Pharmapar Inc. -0.01% (10.15) -3.37% (120.21) 0.00% - -2.99% (120.21)
or loss of the respective associates and joint ventures. Shasun Pharma 0.00% (0.69) 0.00% (0.07) 0.00% - 0.00% (0.07)
Solutions Inc.
(b) Additional information as required by Paragraph 2 of the General Instructions for Preparation Stabilis Pharma Inc. 0.00% 0.04 0.00% (0.10) 0.00% - 0.00% (0.10)
of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 for the year Stelis Biopharma 0.11% 90.03 -0.13% (4.75) 0.00% - -0.12% (4.75)
ended March 31, 2021 (Malaysia) SDN. BHD.
Strides Arcolab 6.24% 5,057.40 -5.68% (202.61) 0.00% - -5.03% (202.61)
International Limited
Net assets, i.e., total Strides CIS Limited 0.00% (1.89) -0.82% (29.17) 0.00% - -0.72% (29.17)
Share in other Share in total
assets minus total Share in profit or loss
liabilities
comprehensive income comprehensive income Strides Life Sciences -0.23% (189.03) -1.28% (45.66) 0.00% - -1.13% (45.66)
Limited
Name of entity As % of As % of
As % of As % of consolidated consolidated Strides Pharma (Cyprus) 1.42% 1,147.62 7.94% 283.44 0.00% - 7.04% 283.44
J in J in J in Limited
consolidated J in Million consolidated other total
Million Million Million
net assets profit or loss comprehensive comprehensive Strides Pharma (SA) Pty -0.02% (16.37) -1.14% (40.66) 0.00% - -1.01% (40.66)
income income Limited
Strides Pharma Science 40.08% 32,480.58 21.92% 782.40 52.43% 239.25 25.37% 1,021.65 Strides Netherlands B.V. 0.00% 4.03 0.08% 2.97 0.00% - 0.07% 2.97
Limited
Strides Nordic ApS, 0.02% 14.88 0.06% 1.97 0.00% - 0.05% 1.97
Indian Subsidiaries: -
Stides Pharma Science 0.05% 42.27 -0.49% (17.45) 0.00% - -0.43% (17.45)
Arco Lab Private Limited 0.09% 72.70 1.41% 50.23 -0.04% (0.19) 1.24% 50.04 Pty Ltd
Strides Foundation Trust 0.04% 31.01 0.13% 4.63 0.00% - 0.11% 4.63 Strides Pharma Global 2.19% 1,771.15 0.15% 5.30 5.35% 24.40 0.74% 29.70
Vivimed Lifesciences 0.73% 592.51 3.39% 121.06 0.32% 1.45 3.04% 122.51 (UK) Limited
Private Limited Strides Pharma Asia Pte 17.93% 14,533.34 0.26% 9.44 0.00% - 0.23% 9.44
Foreign Subsidiaries: - Limited
Altima Innvovations Inc. 0.00% 0.60 0.00% (0.04) 0.00% - 0.00% (0.04) Strides Pharma Canada 0.37% 297.73 -0.88% (31.58) 0.00% - -0.78% (31.58)
Apollo Life Sciences 0.00% (2.04) 0.00% (0.17) 0.00% - 0.00% (0.17) Inc.
Holdings Proprietary Strides Pharma Global 22.66% 18,367.05 89.90% 3,209.52 24.43% 111.47 82.48% 3,320.99
Limited Pte Limited
Arrow Life Sciences 0.00% (0.58) 0.00% (0.17) 0.00% - 0.00% (0.17) Strides Pharma Inc. 6.64% 5,382.71 12.59% 449.34 17.51% 79.91 13.14% 529.25
(Malaysia) SDN. BHD. Strides Pharma 1.27% 1,032.17 2.63% 93.87 0.00% - 2.33% 93.87
Arrow Pharma (Private) 0.00% 0.32 0.00% (0.05) 0.00% - 0.00% (0.05) International Limited
Limited Strides Pharma UK 1.21% 976.81 5.61% 200.37 0.00% - 4.98% 200.37
Arrow Pharma Life Inc. 0.00% (1.39) -0.06% (1.97) 0.00% - -0.05% (1.97) Limited
Arrow Pharma Pte -0.10% (77.54) -0.05% (1.90) 0.00% - -0.05% (1.90) Strides Shasun Latina, 0.02% 19.58 -0.10% (3.59) 0.00% - -0.09% (3.59)
Limited SA de CV
Beltapharm SpA 0.29% 232.80 0.95% 34.00 0.00% - 0.84% 34.00

210 | Annual Report 2021-22 | 211

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the consolidated financial statements for the year ended March 31, 2022 forming part of the consolidated financial statements for the year ended March 31, 2022

Note No. 54 Equity accounted investees

Net assets, i.e., total
Share in other Share in total H In Million
assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities Particulars 31-Mar-22 31-Mar-21
Name of entity As % of As % of Investment in associates 5,273.53 5,745.77
As % of As % of consolidated consolidated
J in J in J in Investment in joint ventures 82.02 93.17
consolidated J in Million consolidated other total
Million Million Million
net assets profit or loss comprehensive comprehensive Total 5,355.55 5,838.94
income income
Strides Vivimed Pte 0.19% 155.77 -0.02% (0.54) 0.00% - -0.01% (0.54) Associates
Limited
SVADS Holdings SA 0.55% 447.08 2.69% 96.02 0.00% - 2.38% 96.02 (a) Stelis Biopharma Private Limited
Trinity Pharma 0.28% 227.15 2.77% 98.90 0.00% - 2.46% 98.90 The Group has an associate in the name of Stelis Biopharma Limited (Stelis), incorporated in India as at March 31,
Proprietary Limited 2022 holding effective 37.09% (March 31, 2021: 47.90%) of the equity stake and accounted for using the equity method.
Universal Corporation 0.92% 746.71 -0.72% (25.82) 0.00% - -0.64% (25.82)
Limited The following table summarises the financial information of Stelis and the carrying amount of the Group’s
Vensun Pharmaceuticals -1.43% (1,161.70) -0.14% (5.06) 0.00% - -0.13% (5.06) interest
Inc. H In Million
Indian Associates: - Particulars 31-Mar-22 31-Mar-21
Stelis Biopharma Private 0.00% - -16.21% (578.77) 0.00% - -14.37% (578.77)
Percentage ownership interest 37.09% 47.90%
Limited
Non-current assets 19,312.59 11,590.88
Strides Consumer Private 0.00% - 0.00% - 0.00% - 0.00% -
Limited Current assets 5,110.97 987.19
Foreign Associates: - Non-current liabilities (6,211.81) (3,206.85)
Aponia Laboratories Inc. 0.00% - -0.12% (4.16) 0.00% - -0.10% (4.16) Current liabilities (8,087.31) (1,611.02)
Juno OTC Canada 0.00% - -0.59% (21.19) 0.00% - -0.53% (21.19) Net assets 10,124.44 7,760.20
Regional Bio Equivalence 0.00% - 0.00% - 0.00% - 0.00% - Group share of net assets 3,755.15 3,717.14
Centre S.C., Carrying amount of interest in associate 4,609.50 4,886.68
Stelis Pte limited 0.00% - 0.00% - 0.00% - 0.00% -
Stelis Biopharma LLC 0.00% - 0.00% - 0.00% - 0.00% - H In Million
Strides Consumer LLC 0.00% - 0.00% - 0.00% - 0.00% -
Particulars 31-Mar-22 31-Mar-21
Strides Global Consumer 0.00% - -9.51% (339.58) 0.00% - -8.43% (339.58)
Percentage ownership interest 37.09% 47.90%
Healthcare Limited
Income 1,358.61 223.95
Foreign Joint ventures: -
Profit / (loss) for the year (2,311.95) (1,208.29)
Sihuan Strides (HK) 0.00% - -0.97% (34.49) 0.00% - -0.86% (34.49)
Limited Other comprehensive income 20.38 (9.61)
Total 100.00% 81,040.60 100.00% 3,570.05 100.00% 456.29 100.00% 4,026.34 Total comprehensive income (2,291.57) (1,217.90)
a) Adjustments arising (53,273.99) (885.63) (296.32) (1,181.95) Group share of profit / (loss) (857.50) (578.77)
out of consolidation
b) Minority Interest in (b) Strides Consumer Business
all subsidiaries:
The Group have investments in Strides Global Consumer Healthcare Limited, incorporated in UK, Strides
Foreign Subsidiaries: 373.41 (107.13) 5.58 (101.55)
Consumer LLC, incorporated in USA and Strides Consumer Private Limited, incorporated in India (together
Total 28,140.02 2,577.29 165.55 2,742.84 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.
(i) Share of discontinued operations included above is as follows:
H In Million The following table summarises the financial information of Strides Consumer Business and the carrying amount
Other Total of the Group’s interest
Particulars Profit or loss Comprehensive Comprehensive H In Million
Income Income
Particulars 31-Mar-22 31-Mar-21
Gain on sale of investments in entities manufacturing specialty 139.41 - 139.41
products Percentage ownership interest 53.64% 53.64%
Total 139.41 - 139.41 Non-current assets 1,726.50 1,852.53
Current assets 532.15 425.36
(ii) The amounts given here in respect of associates and joint ventures are the share of the Group in the profit Non-current liabilities (233.16) (34.49)
or loss of the respective associates and joint ventures. Current liabilities (384.23) (256.64)
Net assets 1,641.26 1,986.75
Group share of net assets 880.37 1,065.69
Carrying amount of interest in associate 664.03 859.09

212 | Annual Report 2021-22 | 213

 Strides Pharma Science Limited

Financial Statements
Notes Independent Auditors’ Report
forming part of the consolidated financial statements for the year ended March 31, 2022

H In Million To the Members of statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other
Particulars 31-Mar-22 31-Mar-21 Strides Pharma Science Limited
ethical responsibilities in accordance with these
Percentage ownership interest 53.64% 53.64%
Report on the Audit of the Standalone Financial requirements and the Code of Ethics. We believe that
Income 808.18 585.26 Statements the audit evidence obtained by us is sufficient and
Profit / (loss) for the year (431.17) (633.07) appropriate to provide a basis for our opinion on the
Other comprehensive income - 0.46 Opinion standalone financial statements.
Total comprehensive income (431.17) (632.60)
We have audited the standalone financial statements of
Group share of profit / (loss) (231.28) (339.58)
Strides Pharma Science Limited (the “Company”), which
Emphasis of matter
comprise the standalone balance sheet as at 31 March 1. We draw attention to Note 8 of to the standalone
(c) The Group also has interests in a number of individually immaterial associates and joint ventures. The 2022, and the standalone statement of profit and loss financial statements which states that the ability
following table analyses, in aggregate, the carrying amount and share of profit and OCI for these associates (including other comprehensive income), standalone of Stelis Biopharma Limited (‘the Associate’) to
and joint ventures. statement of changes in equity and standalone statement continue as a going concern is dependent on the
H In Million of cash flows for the year then ended, and notes to the mitigation factors detailed in the said note which
Particulars 31-Mar-22 31-Mar-21 standalone financial statements, including a summary could have a consequential impact on the carrying
Carrying amount of interests in associates and joint venture 82.02 93.17 of significant accounting policies and other explanatory amount of investment of ` 5,308.55 million in the
Share in profit (19.34) (59.84) information. Associate as at 31 March 2022. Further, the auditors
Share in total comprehensive income (19.34) (59.84) of the Associate have, without modifying their
In our opinion and to the best of our information and opinion, reported a Material Uncertainty Related
according to the explanations given to us, the aforesaid to Going Concern vide their report dated 24 May
Note No. 55 In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The Group
standalone financial statements give the information 2022 on the financial information of the Associate
has adopted measures to curb the spread of infection in order to protect the health of its employees and
required by the Companies Act, 2013 (“Act”) in the for the year ended 31 March 2022. The component
ensure business continuity with minimal disruption. The Group has considered available internal and external
manner so required and give a true and fair view in auditor’s opinion on the financial information
information while finalizing various estimates in relation to its financial statements upto the date of approval
conformity with the accounting principles generally of the associate is not modified in respect of the
of the financial statements by the Board of Directors. The actual impact of the global health pandemic may be
accepted in India, of the state of affairs of the Company as above matter.
different from that which has been estimated, as the COVID -19 situation evolves in India and globally. The Group
at 31 March 2022, and its profit and other comprehensive
will continue to closely monitor any material changes to future economic conditions.  However, the pandemic
income, changes in equity and its cash flows for the year Our opinion is not modified in respect of this matter.
did not have any material impact on the consolidated financial statements for the year ended March 31, 2022.
ended on that date.
Key Audit Matters
Note No. 56 During the year ended March 31, 2022, no material foreseeable loss (March 31, 2021: Nil) was incurred Basis for Opinion Key audit matters are those matters that, in our
for any long-term contract. The Company has recognised a mark to market loss of H 73.28 Million (derivative We conducted our audit in accordance with the professional judgment, were of most significance in
liability) as of 31 March 2022 (2021: H 271.74 Million (derivative liability)) on its derivative instruments. Standards on Auditing (SAs) specified under Section our audit of the standalone financial statements of
143(10) of the Act. Our responsibilities under those SAs the current period. These matters were addressed in
Note No. 57 The previous year’s figures have been re-grouped/ reclassified, where necessary to conform to are further described in the Auditor’s Responsibilities the context of our audit of the standalone financial
current year’s classification. for the Audit of the Standalone Financial Statements statements as a whole, and in forming our opinion
section of our report. We are independent of the thereon, and we do not provide a separate opinion on
The accompanying notes are an integral part of the consolidated financial statements Company in accordance with the Code of Ethics these matters.
As per our report of even date attached issued by the Institute of Chartered Accountants of
India together with the ethical requirements that
for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited are relevant to our audit of the standalone financial
Chartered Accountants
Firm Registration Number: 101248W/ W-100022

Sampad Guha Thakurta 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

214
216 || |
214 Annual Report 2021-22 | 215
 Strides Pharma Science Limited

Financial Statements
Impairment testing of investments in subsidiaries and associates: Going Concern assessment
Refer Significant Accounting Policies and note 8 to the Standalone Financial Statements Refer Significant Accounting Policies to the standalone financial statements
The key audit matter How the matter was addressed in our audit The key audit matter How the matter was addressed in our audit
The carrying amount of investments in subsidiaries and In view of the significance of the matter, following audit As at 31 March 2022, the Company had net current assets Our audit procedures to assess the going concern assumption
associates (aggregates to ` 23,997.62 million) accounts for procedures were applied, among others, to obtain sufficient position. However the group on a consolidated basis had net and whether a material uncertainty exists related to events or
44% of the total assets of the Company as at 31 March 2022. audit evidence: current liabilities (excess of current liabilities over current conditions that may cast a significant doubt on the Company’s
Company’s assessment of impairment contains a number • Tested the design of key internal financial controls and assets) of ` 498.44 million and the Company has a negative ability to continue as a going concern included the following
of parameters which involve significant judgements and operating cash flows amounting to ` 2,826.85 million for the audit procedures to obtain sufficient appropriate audit evidence:
operating effectiveness of the relevant key controls around year ended March 31, 2022.
estimates including revenue growth, cash flow forecasting,
weighted average cost of capital and other recent financing the impairment testing of the carrying value of investment • Gaining an understanding and assessing the design,
Note 2 to the standalone financial statements explains that
transactions. Changes in these assumptions, including ongoing in subsidiaries and associates. implementation and operating effectiveness of Group’s key
Management has concluded that the going concern basis is
impact of COVID-19, if any, could lead to an impact over fair appropriate in preparing the standalone financial statements internal controls over preparation of cash flow forecasts to
• Perfor med a retrospective rev iew to assess the
value of investment and accordingly impairment provision. of the Company. The Company evaluated its ability to continue assess its liquidity;
The annual impairment testing was significant to our audit, reasonableness of Company’s projections by comparing
as a going concern based upon an assessment of the Group’s
because of the financial quantum of the assets as well as the historical forecast to actual results. • Comparing the forecasted statement of profit and loss and
cash position, assessment of the exposure with respect to the
involvement of critical judgements, estimates and assumptions. financial guarantees provided by the Company to an associate cash flows with the Group’s business plan approved by the
• Tested reasonability of projections used by the Company
company, future cash flow forecasts, its debt repayment board of directors.
We also draw attention to Note 8 of the standalone financial relating to the sales growth, operating costs, cashflow
statements which states that the ability of Stelis Biopharma obligations and other commitments and its availability of
forecasts. • Evaluating the key assumptions in the cash flow forecasts
Limited (‘the Associate’) to continue as a going concern is financing facilities, after considering material breaches of its
existing debt covenants and the related subsequent temporary with reference to historical information, current
dependent on the mitigation factors detailed in the said note • Engaged our valuation specialists to assist in testing
relaxations obtained from the lenders for compliance with performance, future plans, and market and other external
which could have a consequential impact on the carrying the reasonableness of the valuation by evaluating the
amount of investment of ` 5,308.55 million in the Associate such debt covenants. This required the exercise of significant available information;
assumptions and methodologies used by the Company, in
as at 31 March 2022. Further, the auditors of the Associate judgement, particularly in forecasting the Group’s future
particular for weighted average cost of capital, terminal revenues, profitability and cash flows. • Performing sensitivity analysis on the forecasted statement
have, without modifying their opinion, reported a Material
growth rate, etc. of profit and loss and cash flows by considering plausible
Uncertainty Related to Going Concern vide their report dated 24 Based on their assessment, the Company concluded that there
May 2022 on the financial information of the Associate for the • Tested recent financing transactions in these companies changes to the key assumptions adopted by the Company
are no material uncertainties related to events or conditions
year ended 31 March 2022. which, individually or collectively, may cast significant doubt • Performing a retrospective review to assess the
with third parties to determine the fair value of certain
investments. on the Company’s ability to continue as a going concern. reasonableness of Group’s past projections by comparing
Considering the significance of the area to the overall financial historical forecasts to actual results;
• Tested whether the Company’s analysis about the sensitivity
statements this was significant for our audit.
on the outcome of impairment to possible changes in key • Assessing the availability of banking and other financing
assumptions reflect the risks inherent in the valuation, facilities by inspecting underlying documentation;
including ongoing impact of COVID-19 pandemic, if any .
• 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
Taxation report on the financial information received from the auditor
Refer Significant Accounting Policies and note 33 to the standalone financial statements of the Associate;

The key audit matter How the matter was addressed in our audit • Evaluating management’s judgment of invocation of
The Company has investment in various subsidiaries and In view of the significance of the matter we applied the guarantees provided to the lenders of the Associate;
associates which operate across different tax jurisdictions. following audit procedures in this area, among others to • Assessing the impact of any existing covenants and the
The Company is subjected to various domestic and foreign obtain sufficient appropriate audit evidence:
related waivers and other restrictive terms therein which
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 may impact Group’s ability to raise further debts.
operating effectiveness of the relevant key controls in • Assessing the adequacy of the disclosures related to
Assessing the applicability of tax and accounting of such
repatriation may involve complexities with respect to various respect of taxation.; application of the going concern assumption.
tax positions on availability of tax incentives / exemptions • We analyzed relevant correspondences with the tax
resulting in possible tax litigations/assessments.
authorities; and
Judgment is required in assessing the availability of tax
incentives / exemptions. These judgments could change • We used our subject matter experts to evaluate the
over time as each of the matter progresses with the relevant Company’s judgment regarding their assessment of
tax authorities and accordingly may impact the accounting availability of tax incentives / exemptions and the
treatment followed by the Company. accounting treatment done.
Given the complexities and judgement involved in assessing • We also considered external legal opinions and
the availability of tax incentives / exemptions and its impact on
consultations made by the Company for key uncertain tax
accounting, we assessed this to be an area of focus for our audit.
positions during current and past period.

216 | Annual Report 2021-22 | 217

 Strides Pharma Science Limited

Financial Statements
Information Other than the Standalone for ensuring the accuracy and completeness of the • Conclude on the appropriateness of the Management on the matters specified in paragraphs 3 and 4 of
Financial Statements and Auditor’s Report accounting records, relevant to the preparation and and Board of Directors use of the going concern the Order, to the extent applicable.
Thereon presentation of the standalone financial statements basis of accounting in preparation of standalone
that give a true and fair view and are free from material financial statements and, based on the audit 2. (A) As required by Section 143(3) of the Act, we
The Company’s Management and Board of Directors misstatement, whether due to fraud or error. evidence obtained, whether a material uncertainty report that:
are responsible for the other information. The other exists related to events or conditions that may
information comprises of Management Reports such as a) We have sought and obtained all the
In preparing the standalone financial statements, the cast significant doubt on the Company’s ability to
Board’s Report, Management Discussion and Analysis information and explanations which to
Management and Board of Directors are responsible for continue as a going concern. If we conclude that
and Corporate Governance Report, but does not include the best of our knowledge and belief were
assessing the Company’s ability to continue as a going a material uncertainty exists, we are required to
the standalone financial statements and our auditor’s necessary for the purposes of our audit.
concern, disclosing, as applicable, matters related to draw attention in our auditor’s report to the related
report thereon which we have obtained prior to the date going concern and using the going concern basis of disclosures in the standalone financial statements
of this Auditor’s Report, and the remaining sections of b) In our opinion, proper books of account
accounting unless the Board of Directors2 either intends or, if such disclosures are inadequate, to modify
the Company’s Annual Report, which are expected to as required by law have been kept by the
to liquidate the Company or to cease operations, or has our opinion. Our conclusions are based on the audit
be made available to us after that date. Company so far as it appears from our
no realistic alternative but to do so. evidence obtained up to the date of our auditor’s
examination of those books.
report. However, future events or conditions may
Our opinion on the standalone financial statements The Board of Directors is also responsible for overseeing cause the Company to cease to continue as a going
does not cover the other information and we do not c) The standalone balance sheet, the
the Company’s financial reporting process. concern.
express any form of assurance conclusion thereon. standalone statement of profit and loss
• Evaluate the overall presentation, structure and (including other comprehensive income),
Auditor’s Responsibilities for the Audit of content of the standalone financial statements, the standalone statement of changes in
In connection with our audit of the standalone the Standalone Financial Statements
financial statements, our responsibility is to read the including the disclosures, and whether the equity and the standalone statement of
other information and, in doing so, consider whether Our objectives are to obtain reasonable assurance standalone financial statements represent the cash flows dealt with by this Report are
the other information is materially inconsistent with about whether the standalone financial statements as underlying transactions and events in a manner that in agreement with the books of account.
the standalone financial statements or our knowledge a whole are free from material misstatement, whether achieves fair presentation.
obtained in the audit or otherwise appears to be due to fraud or error, and to issue an auditor’s report d) In our opinion, the aforesaid standalone
We communicate with those charged with governance
materially misstated. that includes our opinion. Reasonable assurance financial statements comply with the Ind
regarding, among other matters, the planned scope
is a high level of assurance, but is not a guarantee AS specified under Section 133 of the Act.
and timing of the audit and significant audit findings,
If, based on the work we have performed, on the that an audit conducted in accordance with SAs will
including any significant deficiencies in internal control
other information that we obtained prior to the date always detect a material misstatement when it exists. e) On the basis of the written representations
that we identify during our audit.
of this Auditor’s Report, we conclude that there is a Misstatements can arise from fraud or error and are received from the directors as on 31
material misstatement of this other information, we considered material if, individually or in the aggregate, March 2022 taken on record by the Board
We also provide those charged with governance with
are required to report that fact. We have nothing to they could reasonably be expected to influence the of Directors, none of the directors is
a statement that we have complied with relevant
report in this regard. economic decisions of users taken on the basis of these disqualified as on 31 March 2022 from
ethical requirements regarding independence, and to
standalone financial statements. being appointed as a director in terms of
communicate with them all relationships and other
When we read the other sections of the Annual Report Section 164(2) of the Act.
matters that may reasonably be thought to bear on
(other than those mentioned above), if we conclude As part of an audit in accordance with SAs, we exercise
our independence, and where applicable, related
that there is a material misstatement therein, we are professional judgment and maintain professional f) With respect to the adequacy of the
safeguards.
required to communicate the matter to those charged skepticism throughout the audit. We also: internal financial controls with reference
with governance and take necessary actions, as to financial statements of the Company
From the matters communicated with those charged
applicable under the applicable laws and regulations. • Identify and assess the risks of material misstatement and the operating effectiveness of such
with governance, we determine those matters that
of the standalone financial statements, whether controls, refer to our separate Report in
were of most significance in the audit of the standalone
Management’s and Board of Directors’ due to fraud or error, design and perform audit “Annexure B”.
financial statements of the current period and are
Responsibilities for the Standalone Financial procedures responsive to those risks, and obtain
therefore the key audit matters. We describe these
Statements audit evidence that is sufficient and appropriate (B) With respect to the other matters to be included
matters in our auditor’s report unless law or regulation
to provide a basis for our opinion. The risk of not in the Auditor’s Report in accordance with
The Company’s Management and Board of Directors precludes public disclosure about the matter or when,
detecting a material misstatement resulting from Rule 11 of the Companies (Audit and Auditor’s)
are responsible for the matters stated in Section in extremely rare circumstances, we determine that
fraud is higher than for one resulting from error, Rules, 2014, in our opinion and to the best of our
134(5) of the Act with respect to the preparation a matter should not be communicated in our report
as fraud may involve collusion, forgery, intentional information and according to the explanations
of these standalone financial statements that give because the adverse consequences of doing so would
omissions, misrepresentations, or the override of given to us:
a true and fair view of the state of affairs, profit/ reasonably be expected to outweigh the public interest
internal control.
loss and other comprehensive income, changes in benefits of such communication. a) The Company has disclosed the impact
equity and cash flows of the Company in accordance • Obtain an understanding of internal control relevant of pending litigations as at 31 March 2022
with the accounting principles generally accepted to the audit in order to design audit procedures that Report on Other Legal and Regulatory on its financial position in its standalone
in India, including the Indian Accounting Standards are appropriate in the circumstances. Under Section Requirements financial statements - Refer Note 41 to the
(Ind AS) specified under Section 133 of the Act. This 143(3)(i) of the Act, we are also responsible for standalone financial statements.
1. As required by the Companies (Auditor’s Report)
responsibility also includes maintenance of adequate expressing our opinion on whether the company has
Order, 2020 (“the Order”) issued by the Central
accounting records in accordance with the provisions adequate internal financial controls with reference b) The Company did not have any long-term
Government of India in terms of Section 143 (11)
of the Act for safeguarding of the assets of the to financial statements in place and the operating contracts including derivative contracts
of the Act, we give in the “Annexure A” a statement
Company and for preventing and detecting frauds effectiveness of such controls.
and other irregularities; selection and application of • Evaluate the appropriateness of accounting policies
appropriate accounting policies; making judgments and used and the reasonableness of accounting estimates
estimates that are reasonable and prudent; and design, and related disclosures made by the Management
implementation and maintenance of adequate internal and Board of Directors.
financial controls that were operating effectively

218 | Annual Report 2021-22 | 219

 Strides Pharma Science Limited

Financial Statements
for which there were any material (iii) Based on such audit procedures Annexure A to the Independent Auditor’s Report on Standalone Financial Statements
foreseeable losses. as considered reasonable and
appropriate in the circumstances,
c) There has been no delay in transferring nothing has come to our notice that
amounts, required to be transferred, to has caused us to believe that the
the Investor Education and Protection representations under sub-clause The Annexure referred to in Independent Auditor’s Report to the members of the Company on the standalone
Fund by the Company (d) (i) and (d) (ii) contain any material financial statements of Strides Pharma Science Limited for the year ended 31 March 2022. We report that:
mis-statement.
d) (i) The management has represented (i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative
that, to the best of its knowledge and e) The dividend declared or paid during the details and situation of Property, Plant and Equipment.
belief, as disclosed in Note 50 of the year by the Company is in compliance
standalone financial statements, no with Section 123 of the Act. (B) The Company has maintained proper records showing full particulars of intangible assets.
funds have been advanced or loaned
or invested (either from borrowed (C) With respect to the matter to be included in (b) According to the information and explanations given to us and on the basis of our examination of the
funds or share premium or any the Auditor’s Report under Section 197(16) of records of the Company, the Company has a regular programme of physical verification of its Property,
other sources or kind of funds) by the Act: Plant and Equipment by which all property, plant and equipment are verified in a phased manner over a
the Company to or in any other period of three years. In accordance with this programme, certain property, plant and equipment were
persons or entities, including foreign We refer to Note 10 of the standalone financial verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard
entities (“Intermediaries”), with the statements which more fully explains to the size of the Company and the nature of its assets. No material discrepancies were noticed on such
understanding, whether recorded the decision of the Board of Directors to verification.
in writing or otherwise, that the recover the excess remuneration paid to the
Intermediary shall: Company’s erstwhile Managing Director and (c) According to the information and explanations given to us and on the basis of our examination of the
Chief Executive Officer and corresponding records of the Company, the title deeds of immovable properties (other than immovable p r o p e r t i e s
• directly or indirectly lend or invest in recoverable of ` 141.90 million recorded as at where the Company is the lessee and the leases agreements are duly executed in favour of the lessee)
other persons or entities identified in 31 March 2022. In our opinion and according disclosed in the standalone financial statements are held in the name of the Company, except for the
any manner whatsoever (“Ultimate to the information and explanations given following which are not held in the name of the Company
Beneficiaries”) by or on behalf of the to us, having regard to the said note, the
Company; or provide any guarantee, remuneration paid by the Company to ` in million

security or the like to or on behalf of its directors during the current year is in Whether title deed Reason for
the Ultimate Beneficiaries. accordance with the provisions of Section Description Gross
Title deeds held
holder is a promoter Property held not being
Particulars of item of carrying director of relative/ since when held in the
197 of the Act. The remuneration paid to any in the name of:
(ii) The management has represented, property value director or employee of date name of the
director is not in excess of the limit laid down promoter/director company
that, to the best of its knowledge
under Section 197 of the Act. The Ministry of Property, plant and Building 3.55 Arun Kumar Yes 5/9/1995 Note-1
and belief, as disclosed in Note
Corporate Affairs has not prescribed other equipment
50 of the standalone financial
details under Section 197(16) of the Act which Property, plant and Building 428.42 Shasun No 11/19/2015
statements, no funds have been
are required to be commented upon by us. equipment Pharmaceuticals Ltd.
received by the Company from any
persons or entities, including foreign Property, plant and Freehold 0.81 Grandix No 12/31/2009
entities (“Funding Parties”), with the equipment Land Pharmaceauticals
for B S R & Co. LLP Limited
understanding, whether recorded
in writing or otherwise, that the Chartered Accountants Property, plant and Freehold 11.76 Shasun Chemicals No 4/1/2016 Note-2
equipment Land and Drugs Ltd.
Company shall: Firm's Registration No.: 101248W/W-100022
Property, plant and Freehold 48.69 Shasun No 11/19/2015
equipment Land Pharmaceuticals Ltd.
• direct ly or indirect ly, lend
Sampad Guha Thakurta Investment property Freehold 22.20 Shasun Chemicals No 4/1/2016
or invest in ot her persons
Partner Land and Drugs Ltd.
or entities identified in any
manner whatsoever (“Ultimate Place: Bengaluru Membership Number: 060573
Note-1 - The apartment is inside a housing cooperative society. The Company has made an application

Beneficiaries”) by or on behalf of Date: 24 May 2022 UDIN: 22060573AJMRCL4596 for transferring it to its name which is pending with the society.
the Funding Party; or
• provide any guarantee, security or Note -2 - These properties are in the name of the erstwhile Companies which were merged with
the like from or on behalf of the the Company under section 391 to 394 of the Companies Act 1956 in terms of the approval of the
Ultimate Beneficiaries. Honourable High Courts of judicature. The Company is in the process of transferring the title deeds of
such properties in its name.

220 | Annual Report 2021-22 | 221

 Strides Pharma Science Limited

Financial Statements
(d) According to the information and explanations No discrepancies were noticed on verification (b) Accord i ng t o t he i n for mat ion a nd (iv) According to the information and explanations
given to us and on the basis of our examination between the physical stocks and the book explanations given to us and based on the given to us and on the basis of our examination of
of the records of the Company, the Company records that were more than 10% in the audit procedures conducted by us, in our records of the Company, in respect of investments
has not revalued its Property, Plant and aggregate of each class of inventory. opinion the investments made, guarantees made and loans, guarantees and security given
Equipment (including Right of Use assets) or provided, security given during the year by the Company, in our opinion the provisions of
intangible assets or both during the year. (b) Accord i ng t o t he i n for mat ion a nd and the terms and conditions of the grant Section 185 and 186 of the Companies Act, 2013
explanations given to us and on the basis of loans and advances in the nature of loans (“the Act”) have been complied with.
(e) According to information and explanations of our examination of the records of the and guarantees provided during the year are,
given to us and on the basis of our examination Company, the Company has been sanctioned prima facie, not prejudicial to the interest of (v) The Company has not accepted any deposits or
of the records of the Company, there are no working capital limits in excess of five crore the Company. amounts which are deemed to be deposits from
proceedings initiated or pending against the rupees, in aggregate, from banks or financial the public. Accordingly, clause 3(v) of the Order is
Company for holding any benami property institutions on the basis of security of current (c) According to the information and explanations not applicable.
under the Prohibition of Benami Property assets. In our opinion, the quarterly given to us and on the basis of our examination
Transactions Act, 1988 and rules made returns or statements filed by the Company of the records of the Company, in the case of (vi) We have broadly reviewed the books of accounts
thereunder. with such banks or financial institutions are loans given, in our opinion the repayment of maintained by the Company pursuant to the
in agreement with the books of account of the principal and payment of interest has been rules prescribed by the Central Government for
(ii) (a) The inventory, except goods-in-transit and Company. stipulated and the repayments or receipts maintenance of cost records under Section 148(1)
stocks lying with third parties, has been have been regular. Further, the Company has of the Act in respect of its manufactured goods (and/
physically verified by the management during (iii) According to the information and explanations not given any advance in the nature of loan to or services provided by it) and are of the opinion
the year. For stocks lying with third parties given to us and on the basis of our examination any party during the year. that prima facie, the prescribed accounts and
at the year-end, written confirmations have of the records of the Company, the Company has records have been made and maintained. However,
been obtained and for goods-in-transit made investments, provided guarantee or security, (d) According to the information and explanations we have not carried out a detailed examination of
subsequent evidence of receipts has been granted loans and advances in the nature of loans, given to us and on the basis of our examination the records with a view to determine whether these
linked with inventor y records. In our secured or unsecured to companies, limited of the records of the Company, there is no are accurate or complete.
opinion, the frequency of such verification is liability partnership and other parties in respect overdue amount for more than ninety days in
reasonable and procedures and coverage as of which the requisite information is as below: respect of loans given. Further, the Company (vii) (a) The Company does not have liability in
followed by management were appropriate. has not given any advances in the nature of respect of Service tax, Duty of excise, Sales
loans to any party during the year. tax and Value added tax during the year since
effective 1 July 2017, these statutory dues has
(a) Based on the audit procedures carried on by us and as per the information and explanations given to us, the (e) According to the information and explanations been subsumed into GST.
Company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided given to us and on the basis of our examination
security to any other entity as below of the records of the Company, in our opinion According to the information and explanations
following instances of loans/advance in the given to us and on the basis of our examination
` in million nature of loan falling due during the year were of the records of the Company, in our opinion
Advances in
renewed or extended or settled by fresh loans: amounts deducted / accrued in the books of
Particulars Guarantees Security Loans account in respect of undisputed statutory
nature of loans
` in million dues including Goods and Service Tax (‘GST’),
Aggregate amount granted/ provided 5,244.03 - 513.88 -
during the year Percentage of Provident fund, Employees’ State Insurance,
Aggregate
- Subsidiaries 2,144.03 - 463.88 - amount dues
the aggregate to Income-Tax, Duty of Customs, Cess and other
the total loans or
- Joint Ventures - - - -
Name of renewed or statutory dues have generally been regularly
advances in the
the parties extended or deposited with the appropriate authorities.
nature of loans
- Associates 3,100.00 - - - settled by
fresh loans
granted during Also refer note 41 to the standalone financial
- Others - - 50.00 - the year statements.
Balance outstanding as at balance sheet 20,981.47 - 1,289.11 - Vivimed 801 156%
date in respect of above cases Lifesciences (b) According to the information and explanations
- Subsidiaries 11,561.64 - 1,216.09 - Private Limited
given to us and on the basis of our examination
(subsidiary)
- Joint Ventures - - - - of the records of the Company, no undisputed
- Associates 9,419.83 - 30.00 - amounts payable in respect of Goods and
(f) According to the information and explanations
- Others - - 43.02 - Services Tax (‘GST’), Provident fund, Employees’
given to us and on the basis of our examination
State Insurance, Income- Tax, Duty of Customs,
of the records of the Company, the Company
Cess and other statutory dues were in arrears as
has not granted any loans or advances in the
at 31 March 2022 for a period of more than six
nature of loans either repayable on demand
months from the date they became payable.
or without specifying any terms or period of
repayment.

222 | Annual Report 2021-22 | 223

 Strides Pharma Science Limited

Financial Statements
According to the information and explanations given to us and on the basis of our examination of the (xii) According to the information and explanations (xix) We draw attention to Note 2 to the standalone
records of the Company, statutory dues relating to Goods and Service Tax, Provident Fund, Employees State given to us, the Company is not a Nidhi Company. financial statements explains that Management
Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues which have not been deposited on Accordingly, clause 3(xii) of the Order is not has concluded that the going concern basis is
account of any dispute are as follows: applicable. appropriate in preparing the standalone financial
statements of the Company. The Company evaluated
Name of the statute
Nature of the
Amount (` In million)
Period to which the
Forum where dispute is pending (xiii) In our opinion and according to the information its ability to continue as a going concern based
dues amount relates
and explanations given to us, the transactions upon an assessment of the Group’s cash position,
The Income Tax Act,1961 Income tax 190.42 (net of tax paid AY 2008-09 Income Tax Appellate Tribunal with related parties are in compliance with Section assessment of the exposure with respect to the
under protest of 223.14) 177 and 188 of the Act, where applicable, and the financial guarantees provided by the Company to
The Income Tax Act,1961 Income tax 262.20 (net of tax paid AY 2009-10 Income Tax Appellate Tribunal details of the related party transactions have been an associate company, future cash flow forecasts, its
under protest of 307.56) disclosed in the standalone financial statements as debt repayment obligations and other commitments
The Income Tax Act,1961 Income tax 18.18 AY 2018-19 Commissioner Income tax required by the applicable accounting standards. and its availability of financing facilities, after
(Appeals) considering material breaches of its existing debt
Central Excise Act,1944 Central Excise 14.04 Various dates Customs, Excise and Service (xiv) (a) Based on information and explanations covenants and the related subsequent temporary
tax Appellate Tribunal provided to us and our audit procedures, in relaxations obtained from the lenders for compliance
Central Excise Act,1944 Central Excise 5.20 Various dates Commissioner of Central our opinion, the Company has an internal with such debt covenants. This required the exercise
Excise audit system commensurate with the size and of significant judgement, particularly in forecasting
Central Excise Act,1944 Central Excise 481.20 (net of tax paid Various dates Customs, Excise and Service nature of its business. the Group’s future revenues, profitability and cash
under protest of 24.51) tax Appellate Tribunal flows.
Central Excise Act,1944 Central Excise 63.06 Various dates Commissioner of Central Tax (b) We have considered the internal audit reports
of the Company issued till date for the period On the basis of the above and according to the
under audit. information and explanations given to us, on the
basis of the financial ratios, ageing and expected
(viii) According to the information and explanations (f) According to the information and explanations
(xv) In our opinion and according to the information dates of realisation of financial assets and
given to us and on the basis of our examination given to us and procedures performed by
and explanations given to us, the Company has payment of financial liabilities, other information
of the records of the Company, the Company has us, we report that the Company has not
not entered into any non-cash transactions with accompanying the standalone financial statements,
not surrendered or disclosed any transactions, raised loans during the year on the pledge
its directors or persons connected to its directors our knowledge of the Board of Directors and
previously unrecorded as income in the books of of securities held in its subsidiaries, joint
and hence, provisions of Section 192 of the Act are management plans and based on our examination
account, in the tax assessments under the Income ventures or associate companies.
not applicable to the Company. of the evidence supporting the assumptions,
Tax Act, 1961 as income during the year.
nothing has come to our attention, which causes
(x) (a) The Company has not raised any moneys by
(xvi) (a) The Company is not required to be registered us to believe that any material uncertainty exists
(ix) a) According to the information and explanations way of initial public offer or further public
under Section 45-IA of the Reserve Bank of India as on the date of the audit report that the Company
given to us and on the basis of our examination offer (including debt instruments) Accordingly,
Act, 1934. Accordingly, clause 3(xvi)(a) of the is not capable of meeting its liabilities existing at
of the records of the Company, the Company clause 3(x)(a) of the Order is not applicable.
Order is not applicable. the date of balance sheet as and when they fall
has not defaulted in repayment of loans
due within a period of one year from the balance
and borrowing or in the payment of interest (b) According to the information and explanations
(b) The Company is not required to be registered sheet date. We, however, state that this is not an
thereon to any lender. given to us and on the basis of our examination
under Section 45-IA of the Reserve Bank of assurance as to the future viability of the Company.
of the records of the Company, the Company
India Act, 1934. Accordingly, clause 3(xvi)(b) We further state that our reporting is based on
(b) According to the information and explanations has not made any preferential allotment or
of the Order is not applicable. the facts up to the date of the audit report and we
given to us and on the basis of our examination private placement of shares or fully or partly
neither give any guarantee nor any assurance that
of the records of the Company, the Company convertible debentures during the year.
(c) The Company is not a Core Investment all liabilities falling due within a period of one year
has not been declared a wilful defaulter by any Accordingly, clause 3(x)(b) of the Order is not
Company (CIC) as defined in the regulations from the balance sheet date, will get discharged by
bank or financial institution or government or applicable.
made by the Reser ve Bank of India. the Company as and when they fall due.
government authority.
Accordingly, clause 3(xvi)(c) of the Order is not
(xi) (a) Based on examination of the books and
applicable. (xx) In our opinion and according to the information
(c) In our opinion and according to the records of the Company and according to the
and explanations given to us, there is no unspent
information and explanations given to us by information and explanations given to us, no
(d) The Company is not part of any group (as amount under sub-section (5) of Section 135 of the
the management, term loans were applied for fraud by the Company or on the Company has
per the provisions of the Core Investment Act pursuant to any project. Accordingly, clause
the purpose for which the loans were obtained. been noticed or reported during the course of
Companies (Reserve Bank) Directions, 2016 3(xx)(a) and 3(xx)(b) of the Order are not applicable.
the audit.
as amended). Accordingly, the requirements
(d) According to the information and explanations
of clause 3(xvi)(d) are not applicable for B S R & Co. LLP
given to us and on an overall examination of (b) According to the information and explanations
the balance sheet of the Company, we report given to us, no report under sub-section (12) Chartered Accountants
(xvii) The Company has not incurred cash losses in the
that no funds raised on short-term basis have of Section 143 of the Act has been filed by the Firm's Registration No.: 101248W/W-100022
current and in the immediately preceding financial
been used for long-term purposes by the auditors in Form ADT-4 as prescribed under
year.
Company. Rule 13 of the Companies (Audit and Auditors)
Sampad Guha Thakurta
Rules, 2014 with the Central Government.
(xviii) There has been no resignation of the statutory Partner
(e) According to the information and explanations
auditors during the year. Accordingly, clause Place: Bengaluru Membership Number: 060573
given to us and on an overall examination of (c) As represented to us by the management,
3(xviii) of the Order is not applicable.
the standalone financial statements of the there are no whistle blower complaints Date: 24 May 2022 UDIN: 22060573AJMRCL4596
Company, we report that the Company has received by the Company during the year.
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.

224 | Annual Report 2021-22 | 225

 Strides Pharma Science Limited

Financial Statements
Annexure B to the Independent Auditor’s report on the standalone financial statements of preparation of financial statements in accordance not be detected. Also, projections of any evaluation
Strides Pharma Science Limited (“the Company”) for the year ended 31 March 2022. with generally accepted accounting principles, and of the internal financial controls with reference to
that receipts and expenditures of the company are Standalone financial statements to future periods are
being made only in accordance with authorisations subject to the risk that the internal financial controls
of management and directors of the company; and (3) with reference to Standalone financial statements may
Report on the internal financial controls with reference Auditor’s Responsibility provide reasonable assurance regarding prevention become inadequate because of changes in conditions,
to the aforesaid standalone financial statements or timely detection of unauthorised acquisition, use, or that the degree of compliance with the policies or
under Clause (i) of Sub-section 3 of Section 143 of the Our responsibility is to express an opinion on the or disposition of the company's assets that could procedures may deteriorate.
Companies Act, 2013 Company's internal financial controls with reference to have a material effect on the Standalone financial
financial statements based on our audit. We conducted statements. for B S R & Co. LLP
(Referred to in paragraph 2(A)(f) under ‘Report on Other our audit in accordance with the Guidance Note and
Chartered Accountants
Legal and Regulatory Requirements’ section of our the Standards on Auditing, prescribed under section Inherent Limitations of Internal Financial
143(10) of the Act, to the extent applicable to an audit Firm's Registration No.: 101248W/W-100022
report of even date) controls with Reference to Financial
of internal financial controls with reference to financial Statements
Opinion statements. Those Standards and the Guidance Note Sampad Guha Thakurta
require that we comply with ethical requirements Because of the inherent limitations of internal
We have audited the internal financial controls with financial controls with reference to financial Partner
and plan and perform the audit to obtain reasonable
reference to financial statements of Strides Pharma statements, including the possibility of collusion or Place: Bengaluru Membership Number: 060573
assurance about whether adequate internal financial
Science Limited (“the Company”) as of 31 March 2022 in controls with reference to financial statements were improper management override of controls, material Date: 24 May 2022 UDIN: 22060573AJMRCL4596
conjunction with our audit of the standalone financial established and maintained and whether such controls misstatements due to error or fraud may occur and
statements of the Company for the year ended on that operated effectively in all material respects.
date.
Our audit involves performing procedures to obtain
In our opinion, the Company has, in all material audit evidence about the adequacy of the internal
respects, adequate internal financial controls with financial controls with reference to financial statements
reference to financial statements and such internal and their operating effectiveness. Our audit of internal
financial controls were operating effectively as at 31 financial controls with reference to financial statements
March 2022, based on the internal financial controls with included obtaining an understanding of such internal
reference to financial statements criteria established by financial controls, assessing the risk that a material
the Company considering the essential components of weakness exists, and testing and evaluating the design
internal control stated in the Guidance Note on Audit and operating effectiveness of internal control based
of Internal Financial Controls Over Financial Reporting on the assessed risk. The procedures selected depend
issued by the Institute of Chartered Accountants of India on the auditor’s judgement, including the assessment
(the “Guidance Note”). of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error.
Management’s Responsibility for Internal
Financial Controls We believe that the audit evidence we have obtained
The Company’s management and the Board of Directors is sufficient and appropriate to provide a basis for our
are responsible for establishing and maintaining audit opinion on the Company’s internal financial
internal financial controls based on the internal controls with reference to financial statements.
financial controls with reference to financial statements
criteria established by the Company considering the Meaning of Internal Financial controls with
essential components of internal control stated in Reference to Financial Statements
the Guidance Note. These responsibilities include the A company's internal financial controls with reference
design, implementation and maintenance of adequate to financial statements is a process designed to
internal financial controls that were operating provide reasonable assurance regarding the reliability
effectively for ensuring the orderly and efficient conduct of financial reporting and the preparation of financial
of its business, including adherence to company’s statements for external purposes in accordance with
policies, the safeguarding of its assets, the prevention generally accepted accounting principles. A company's
and detection of frauds and errors, the accuracy and internal financial controls with reference to financial
completeness of the accounting records, and the statements include those policies and procedures
timely preparation of reliable financial information, as that (1) pertain to the maintenance of records that,
required under the Companies Act, 2013 (hereinafter in reasonable detail, accurately and fairly ref lect
referred to as “the Act”). the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit

226 | Annual Report 2021-22 | 227

 Strides Pharma Science Limited

Financial Statements
STANDALONE B ALANCE SHEET STANDALONE STATEMENT OF PROFIT AND LOSS
as at March 31, 2022 for the year ended March 31, 2022

` In Million ` In Million

Note 31-Mar-22 31-Mar-21 Note 31-Mar-22 31-Mar-21

A ASSETS Income
I Non-current assets
(a) Property, plant and equipment 4(i) 5,343.60 5,051.35 1 Revenue from operations 26 19,790.03 18,575.66
(b) Capital work-in-progress 4(ii) 304.51 813.60 2 Other income 27 1,234.85 889.96
(c) Right-of-use assets 5(i) 335.92 309.58
(d) Investment property 6 128.16 678.35 3 Total income (1+2) 21,024.88 19,465.62
(e) Other intangible assets 7(i) 361.40 405.66 4 Expenses
(f) Intangible assets under development 7(ii) 252.64 293.09
(g) Financial assets (a) Cost of materials consumed 9,354.24 10,500.98
(i) Investments 8 23,997.62 23,946.49 (b) Purchase of stock-in-trade 518.32 563.07
(ii) Loans receivable 9(i) 1,246.09 852.21
(iii) Other financial assets 10(i) 199.30 217.36 (c) Changes in inventories of finished goods, work-in-progress and stock- 28 1,142.56 (1,175.34)
(h) Deferred tax assets (net) 11 775.80 752.11 in-trade
(i) Income-tax assets (net) 12 1,571.99 1,275.17 (d) Employee benefits expense 29 2,720.91 2,727.24
(j) Other non-current assets 13(i) 69.09 179.79
Total non-current assets 34,586.12 34,774.76 (e) Finance costs 30 742.41 653.39
II Current assets (f) Depreciation and amortisation expense 31 1,043.66 993.42
(a) Inventories 14 5,130.63 6,890.80
(b) Financial assets (g) Other expenses 32 5,263.18 4,367.40
(i) Trade receivables 15 12,963.19 8,216.65 (h) Foreign exchange (gain)/loss- net 24.52 (280.89)
(ii) Cash and cash equivalents 16 121.24 253.03
(iii) Other balances with banks 17 23.22 477.39 Total expenses 20,809.80 18,349.27
(iv) Loans receivable 9(ii) 43.02 35.66 5 Profit/(Loss) before exceptional items and tax (3-4) 215.08 1,116.35
(v) Other financial assets 10(ii) 630.56 364.77
(d) Other current assets 13(ii) 840.60 1,200.27 6 Exceptional items loss (net) - -
Total current assets 19,752.46 17,438.57 7 Profit/(Loss) before tax (5+6) 215.08 1,116.35
TOTAL ASSETS 54,338.58 52,213.33
B EQUITY AND LIABILITIES 8 Tax expense 33
I Equity (a) Current tax (1,584.71) 210.18
(a) Equity share capital 18 897.90 896.81
(b) Other equity 19 33,168.93 31,583.77 (b) Deferred tax (benefit)/ expense (2.09) 123.77
Total equity 34,066.83 32,480.58 Total tax (benefit)/expense (1,586.80) 333.95
II Liabilities
1 Non-current liabilities 9 Profit/(Loss) for the year (7-8) 1,801.88 782.40
(a) Financial liabilities 10 Other comprehensive income
(i) Borrowings 20(i) 1,246.95 1,475.39
(ii) Lease liabilities 5(ii) 269.79 238.58
A) (i) Items that will not be reclassified to profit or loss 36 (2.51) (23.35)
(iii) Other financial liabilities 21(i) 6.58 39.59 (ii) Income tax relating to items that will not be reclassified to profit 36 0.88 8.16
(b) Provisions 22(i) 334.68 280.82 or loss
(c) Non-current tax liabilities 25(i) - 1,790.91
(d) Other non-current liabilities 23(i) 0.51 1.08 B) (i) Items that may be reclassified to profit or loss 36 (59.30) 391.10
Total non-current liabilities 1,858.51 3,826.37 (ii) Income tax relating to items that may be reclassified to profit or 36 20.72 (136.66)
2 Current liabilities loss
(a) Financial liabilities
(i) Borrowings 20(ii) 11,199.37 7,313.99 Total other comprehensive income for the year, net of tax (40.21) 239.25
(ii) Lease liabilities 5(ii) 123.08 146.63 11 Total comprehensive income for the year (9+10) 1,761.67 1,021.65
(iii) Trade payables 24
- Total outstanding dues of micro enterprises and small enterprises 331.32 318.12 12 Earnings per equity share (of ` 10/- each)
- Total outstanding dues of creditors other than micro enterprises and small 6,106.65 7,033.89 - Basic 46 20.08 8.73
enterprises
(iv) Other financial liabilities 21(ii) 326.44 605.47 - Diluted 46 20.07 8.72
(b) Provisions 22(ii) 204.53 226.71
(c) Current tax liabilities (net) 25(ii) - 31.53 The accompanying notes are an integral part of the standalone financial statements
(d) Other current liabilities 23(ii) 121.85 230.04 As per our report of even date attached
Total current liabilities 18,413.24 15,906.38
Total liabilities 20,271.75 19,732.75
TOTAL EQUITY AND LIABILITIES 54,338.58 52,213.33 for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Chartered Accountants
The accompanying notes are an integral part of the standalone financial statements
As per our report of even date attached Firm Registration Number:
101248W/ W-100022
for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Chartered Accountants Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur
Firm Registration Number: Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO
101248W/ W-100022 Membership Number: 060573 DIN : 00084845 DIN: 07803242
Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur
Manjula R.
Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO
Membership Number: 060573 DIN : 00084845 DIN: 07803242 Bengaluru, May 24, 2022 Company Secretary
Manjula R. Membership Number: A30515
Bengaluru, May 24, 2022 Company Secretary
Membership Number: A30515

228 | Annual Report 2021-22 | 229

 A) Equity share capital

230 |
` In Million

Particulars Amount
Balance as at April 1, 2020 895.65
Changes in equity share capital during the year
- Shares issued pursuant to exercise of stock options (refer note 42(a)) 1.16
Balance as at March 31, 2021 896.81
Changes in equity share capital during the year
- Shares issued pursuant to exercise of stock options (refer note 42(a)) 1.09
Balance as at March 31, 2022 897.90

B) Other equity
` In Million

Items of other
Reserves and surplus comprehensive income
Securities premium
account

Particulars
for the years ended march 31, 2022 and March 31, 2021

Note reference
Share application
money pending
allotment
Capital reserve
Securities premium
Reserve for Business
Restructure (BRR)
Capital redemption reserve
Share options outstanding
account
General reserve
Retained earnings
Effective portion of cash
flow hedge
Re -measurement of the
defined benefit liabilities /
(assets)
Total

Balance as at March 31, 2020 - 200.79 17,218.99 3,846.38 601.61 57.24 3,875.79 5,228.04 (212.44) (124.19) 30,692.21
Profit for the year - - - - - - - 782.40 - - 782.40
Other comprehensive income for - - - - - - - - 254.44 (15.19) 239.25
the year (net of tax)
Total comprehensive income - - - - - - - 782.40 254.44 (15.19) 1,021.65
Dividend (including tax on - - - - - - - (179.14) - - (179.14)
dividend)
Issue of shares on exercise of - - 53.68 - - (19.84) - - - - 33.84
stock options
Employee stock compensation 42(a) - - - - - 15.21 - - - - 15.21
expenses (including expenses
cross charged to subsidiaries)
Transferred to general reserve on - - - - - (5.41) 5.41 - - - -
stock options lapse
Balance as at March 31, 2021 - 200.79 17,272.67 3,846.38 601.61 47.20 3,881.20 5,831.30 42.00 (139.38) 31,583.77
STANDALONE STATEMENT OF CHANGES IN EQUITY

` In Million

Items of other
Reserves and surplus comprehensive income
Securities premium
account

Particulars
Strides Pharma Science Limited

Note reference
Share application
money pending
allotment
Capital reserve
Securities premium
Reserve for Business
Restructure (BRR)
Capital redemption reserve
Share options outstanding
account
General reserve
Retained earnings
Effective portion of cash
flow hedge
Re -measurement of the
defined benefit liabilities /
(assets)
Total

Profit 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
for the years ended march 31, 2022 and March 31, 2021

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 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 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
STANDALONE STATEMENT OF CHANGES IN EQUITY

Financial Statements
 Strides Pharma Science Limited

Financial Statements
STATEMENT OF CASH FLOW FOR STATEMENT OF CASH FLOW FOR
the year ended March 31, 2022 the year ended March 31, 2022

` In Million ` In Million

31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21

A. Cash flow from operating activities C. Cash flow from financing activities
Profit before tax 215.08 1,116.35 Proceeds from issue of equity shares 36.18 35.00
Adjustments for: Proceeds from long-term borrowings 295.36 1,926.45
- Depreciation and amortisation expense 1,043.66 993.42 Repayment of long-term borrowings (399.72) (77.57)
- Gain on sale/write off of property, plant and equipment, investment (107.63) (31.04) Proceeds/(Repayment) from short-term borrowings (net) 3,644.60 (1,406.02)
property and other intangible assets (net) Dividends paid (net of taxes on dividend) (224.31) (179.15)
- Gain on sale of non-current investment - (8.84) Lease payments (150.40) (144.34)
- Share based compensation expense (8.90) 64.92 Interest paid on borrowings (694.41) (640.75)
- Interest expense 742.42 653.39 Net cash generated from / (utilised in) financing activities C 2,507.30 (486.38)
- Interest income (887.49) (126.05) Net decrease in cash and cash equivalents during the year (A+B+C) (131.79) (415.17)
- Dividend income - (353.70) Cash and cash equivalents at the beginning of the year 253.03 668.20
- Income from current investment (2.84) (0.31) Cash and cash equivalents at the end of the year* 121.24 253.03
- Rental income from investment property (59.79) (113.03) * Comprises:
- Bad debts written off / provision for doubtful trade receivables 38.35 192.77 Cash on hand 1.62 2.18
- Other receivables written off 15.85 - Balance with banks:
- Gain on account of lease modifications (18.73) - - In current accounts 35.50 69.85
- Net unrealised exchange gain (3.21) (130.07) - Funds-in-transit 84.12 181.00
Operating profit before working capital changes 966.77 2,257.81 Total 121.24 253.03
Changes in working capital:
The accompanying notes are an integral part of the standalone financial statements
Increase in trade and other receivables (4,651.21) (1,733.10)
As per our report of even date attached
Decrease / (Increase) in inventories 1,760.17 (2,262.61)
(Decrease) / Increase in trade and other payables (1,116.64) 2,897.62 for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Net change in working capital (4,007.68) (1,098.09) Chartered Accountants
Cash (utilised in)/ generated from operations (3,040.91) 1,159.72 Firm Registration Number:
Income taxes refund, net 214.06 1,667.90 101248W/ W-100022
Net cash flow (utilised in) / generated from operating activities A (2,826.85) 2,827.62
Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur
B. Cash flow from investing activities
Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO
Capital expenditure for property, plant and equipment and intangible (681.70) (887.40)
Membership Number: 060573 DIN : 00084845 DIN: 07803242
assets, including capital advance
Proceeds from sale of property, plant and equipment and intangible assets 4.99 14.85 Manjula R.
Bengaluru, May 24, 2022 Company Secretary
Proceeds from sale of investment property 630.00 -
Membership Number: A30515
Investments in mutual funds (540.61) (150.00)
Proceeds from sale of investment in mutual funds 540.61 150.00
Investments in subsidiary and associate (51.13) (2,369.95)
Proceeds from sale of non-current investments - 162.80
Loan given (463.88) (451.46)
Loan recovered 70.00 355.06
Interest received (net of taxes) 63.71 169.64
Dividends received (net of taxes) 127.46 229.39
Rental income from investment property 61.41 121.29
Net Security deposits paid (5.96) (8.80)
Proceeds/(Investment) in fixed deposits with maturity of more than 3 432.86 (91.83)
months, net
Net cash flow generated from / (utilised in) investing activities B 187.76 (2,756.41)

232 | Annual Report 2021-22 | 233

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 1 General information equity infusion in the year ending 31 March 2023 and made and, if material, their effects are disclosed in the 2.6 Cash flow statement
the steps undertaken by management as noted above, notes to the standalone financial statements.
 trides Pharma Science Limited (`Strides’) is a
S management believes that the Company will be able to  ash f lows are reported using indirect method,
C
pharmaceutical company domiciled in India, with its continue to generate sufficient cash in the foreseeable whereby net profits before tax is adjusted for the
2.4.1 Judgements
registered office situated at 201, Devavrata, Sector 17, future to meet its obligations as they fall due." effects of transactions of a non-cash nature and any
I nformation about judgements made in applying
Vashi, Navi Mumbai – 400703 and corporate office in deferrals or accruals of past or future cash receipts or
accounting policies that have the most significant
Bengaluru, India. Strides has been incorporated under 2.1 Statement of compliance payments and items of income or expenses associated
effects on the amounts recognised in the financial
the provisions of Indian Companies Act and its equity with investing or financing cash flows. The cash flows
 hese standalone financial statements of the Company
T statements is included in the following notes:
shares are listed on the National Stock Exchange (NSE) from regular revenue generating (operating activities),
and Bombay Stock Exchange (BSE) in India. Strides have been prepared in accordance with Indian • Note 2.2 — Assessment of functional currency; investing and financing activities of the Company are
develops and manufactures a wide range of IP-led niche Accounting Standards (Ind AS) as per the Companies
• Note 3.2 — Revenue recognition: whether revenue segregated.
pharmaceutical products. (Indian Accounting Standards) Rules 2015, as amended,
notified under Section 133 of Companies Act, 2013, (the from sale of product and services is recognised
overtime or at a point of time: 2.7 Measurement of fair value
Note No. 2 Basis of preparation of financial 'Act') and other relevant provisions of the Act.
statements • Note 3.15 and 47 — Financial instruments;  number of the Company’s accounting policies and
A
 he standalone financial statements were approved by
T disclosures require the measurement of fair values, for
The Company has negative operating cash f lows the Board of Directors and authorised for issue on May • Note 3.9, 3.10 and 3.11— Useful lives of property, both financial and non-financial assets and liabilities.
amounting to ` 2,826.85 million for the year ended 31 24, 2022" plant and equipment, investment property and
March 2022 on account of continuing pricing pressure intangible assets;  air values are categorised into different levels in a
F
in some of its key geographies consequent to effects 2.2 Functional and presentation currency fair value hierarchy based on the inputs used in the
• Note 3.12.3 — Impairment of non financial assets:
of COVID. Management of the Company has obtained valuation techniques as follows:
relaxations for compliance with financial covenants  hese standalone financial statements are presented
T • Note 43 — Measurement of defined benefit obligation;
for year ended March 31, 2022, from the lenders as in Indian Rupees (`), which is also the Company's key actuarial assumptions; • Level 1: quoted prices (unadjusted) in active markets
these have not been met as of the date of the issue functional currency. All amounts have been rounded-
• Note 42 — Share based payments; for identical assets or liabilities.
of financial statements. Further, as of March 31, 2022, off to two decimal places to the nearest million, unless
the Company has provided guarantees aggregating to otherwise indicated. • Note 3.8, 11, 33 and 41 (b) — Provision for income • Level 2: inputs other than quoted prices included in
` 9,419.83 million in relation to the borrowings of one taxes and related tax contingencies and evaluation Level 1 that are observable for the asset or liability,
of its associates (‘ the Associate’) , out of which ` 6,016 2.3 Basis of measurement of recoverability of deferred tax assets. either directly (i.e. as prices) or indirectly (i.e. derived
million outstanding as on 31 March 2022, for which from prices).
 hese standalone financial statements have been
T 2.4.2 Assumption and estimation uncertainty
there is a material uncertainty to continue as a going prepared on the historical cost basis, except for the • Level 3: inputs for the asset or liability that are not
I nformation about assumptions and estimation

concern. The Associate has requested for temporary following items: based on observable market data (unobservable
uncertainties that have a significant risk of resulting
relaxations for compliance with these financial inputs).
in a material adjustment in the year ending March 31,
covenants from the lenders as these have not been met - C ertain financial assets and liabilities (including 2022 is included in the following notes.  he Company has an established control framework
T
as of the date of these financial statements. Also refer derivative instruments) are measured at fair value;
note 8 of these financial statements. • Note 3.12.3 — Impairment testing of non-financial with respect to the measurement of fair values. This
assets; includes a finance team that has overall responsibility
- Net defined benefit assets/(liability) are measured at
Further, to mitigate the situation, the Company for overseeing all significant fair value measurements,
fair value of plan assets, less present value of defined • Note 3.12.1 and 47 — Impairment testing of
has raised long- term and other financing facilities including Level 3 fair values.
benefit obligations; and financial assets; and
amounting to ` 500 million post year ended 31 March
2022 and has issued equity warrants to the entity • Note 3.14, 33 and 41 (b) — Provisions and  he Company reg ularly rev iews sig nif icant
T
- Equity settled and cash settled share based payments
which is part of the Promoter group that is expected to contingent liabilities. unobservable inputs and valuation adjustments. If
that are measured at fair value."
provide additional equity of ` 884 million by 31 March third party information is used to measure fair values,
2023. The Company has cash and cash equivalents of 2.5 Operating cycle then the finance team assesses the evidence obtained
2.4 Use of estimates and judgements
H 121.24 million as at 31 March 2022 and also undrawn from the third parties to support the conclusion
 he preparation of the financial statements in
T  s mentioned in para 1 above under ‘Corporate
A that these valuations meet the requirements of Ind
borrowing facilities available from certain lenders.
conformity with Ind AS requires management to information’, the Company is into development and AS, including the level in the fair value hierarchy
Further, the Group also expects to improve operating
make estimates, judgements and assumptions. These manufacture of pharmaceutical products. Based on the in which the valuations should be classified.
profits from the newly acquired business in the US
estimates, judgements and assumptions affect the normal time between acquisition of assets and their When measuring the fair value of an asset or a liability,
and from cost reductions consequent to capacity
application of accounting policies and the reported realisation in cash or cash equivalents, the Company the Company uses observable market data as far as
optimization at some of its manufacturing locations
amounts of assets and liabilities, the disclosures of has determined its operating cycle as 3 years to 5 years possible. If the inputs used to measure the fair value
from April 2022 and by monitoring of freight and other
contingent assets and liabilities at the date of the and 12 months relating to research and development of an asset or a liability fall into different levels of the
expenses.
financial statements and reported amounts of revenues activities and manufacturing of pharmaceutical fair value hierarchy, then the fair value measurement
and expenses during the period. Accounting estimates products respectively. The above basis is used for is categorised in its entirety in the same level of the
Accordingly, based on the fact that the Company had
could change from period to period. Actual results classifying the assets and liabilities into current and fair value hierarchy as the lowest level input that is
generated positive operating cash flows in the previous
could differ from those estimates. Appropriate changes non-current as the case may be. significant to the entire measurement.
year and expects to generate positive operating cash
flows in future periods, temporary relaxations from in estimates are made as management becomes
lenders for compliance with financial covenants aware of changes in circumstances surrounding the  he Company recognises transfers between levels of
T
related to borrowings, its ability to raise new financing estimates. Changes in estimates are reflected in the the fair value hierarchy at the end of the reporting
facilities, full utilisation of existing facilities, expected financial statements in the period in which changes are period during which the change has occurred.

234 | Annual Report 2021-22 | 235

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

 urther information about the assumptions made

F  he pooling of interest method is considered to involve
T 3.2.1 Sale of goods In measuring the amount of profit share revenue to
in measuring fair values is included in the following the following: Revenue is recognised when a promise in a customer be recognised for each period, the Company uses all
notes: contract (performance obligation) has been satisfied available information and evidence, including any
(i) The assets and liabilities of the combining entities by transferring control over the promised goods to the confirmations from the business partner of the profit
• Note 42 – Share based payment arrangements; customer. Control over a promised good refers to the share amount owed to the Company, to the extent
are reflected at their carrying amounts.
• Note 6 – Investment property and ability to direct the use of, and obtain substantially all made available before the date the Company’s Board
(ii) No adjustments are made to reflect fair values, or of the remaining benefits from, those goods. Control is of Directors authorises the issuance of its financial
• Note 47 – Financial instruments usually transferred upon shipment, delivery to, upon statements for the applicable period.
recognise any new assets or liabilities. The only
adjustments that are made are to harmonise receipt of goods by the customer, in accordance with
Note No. 3 Significant accounting policies accounting policies. the delivery and acceptance terms agreed with the Sale to distributors
3.1 Business combinations customers. The amount of revenue to be recognised T he Company appoints distributors in various
(iii) The financial information in the financial (transaction price) is based on the consideration territories who purchases the goods from the Company
 cquisitions of businesses are accounted for using the
A expected to be received in exchange for goods, and thereafter sells them in the territory. In case the
statements in respect of prior periods should
acquisition method. The consideration transferred excluding amounts collected on behalf of third parties distributor is acting as an agent, the Company defers
be restated as if the business combination had
in a business combination is measured at fair value, such as sales tax or other taxes directly linked to sales. revenue recognition till the time goods are sold by the
occurred from the beginning of the preceding
which is calculated as the sum of the acquisition-date If a contract contains more than one performance distributor to the end customer. On the other hand, if
period in the financial statements, irrespective of
fair values of the assets transferred by the Company, obligation, the transaction price is allocated to each the distributor is principal, revenue is recognised upon
the actual date of the combination. In this financial
liabilities incurred by the Company to the former performance obligation based on their relative stand- the transfer of control over the goods to the distributor."
statement, the effect of transactions, when the
owners of the acquiree and the equity interests issued alone selling prices. Revenue from product sales are
entities are under common control, prior to the
by the Company in exchange of control of the acquiree. recorded net of allowances for estimated rebates, cash  ight to reject or return goods
R
appointed date has been adjusted in the 'other
Acquisition-related costs are generally recognised in discounts and estimates of product returns, all of The Company also sells its products to the customers
equity'.
statement of profit and loss as incurred. which are established at the time of sale. with a right to return the goods within the specified
The identity of the reserves in the transferor period of time. If the probability of acceptance by
 t the acquisition date, the identifiable assets acquired
A  he consideration received by the Company in
T the customer is uncertain, recognition of revenue is
companies has been maintained in the transferee
and the liabilities assumed are recognised at their fair exchange for its goods may be fixed or variable. Variable deferred till the expiry of right to return or acceptance
company.
value, except that: consideration is only recognised when it is considered by the customer whichever is earlier.
The difference, if any, between the amount highly probable that a significant revenue reversal will
- d eferred tax assets or liabilities, and assets or not occur once the underlying uncertainty related to Price variations / Incentives
recorded as share capital issued plus any additional
liabilities related to employee benefit arrangements variable consideration is subsequently resolved. Incentives are accounted based on the assessment
consideration in the form of cash or other assets
are recognised and measured in accordance with Ind of whether the beneficiary (of the incentive) is acting
and the amount of share capital of the transferor
AS 12 Income Taxes and Ind AS 19 Employee Benefits Profit share revenues as a principal or an agent. Where the beneficiary is a
shall be transferred to capital reserve and should
respectively; The Company from time to time enters into marketing principal, the incentive is regarded as consideration
be presented separately from other capital reserves
with disclosure of its nature and purpose in the arrangements with certain business partners for the paid to the customer and is reduced from revenue.
- liabilities or equity instruments related to share-based sale of its products in certain markets. Under such
notes.
payment arrangements of the acquiree or share-based arrangements, the Company sells its products to the However, where the beneficiary is an agent, the
payment arrangements of the Company entered into business partners at a base purchase price agreed incentive payment is recognised as an expense as the
3.2 Revenue from contracts with customers
to replace share-based payment arrangements of the upon in the arrangement and is also entitled to a same is in the nature of commission.
acquiree are measured in accordance with Ind AS 102  he Company recognises revenue to depict the
T profit share which is over and above the base purchase
Share-based Payment at the acquisition date (see note transfer of promised goods or services to customers price. The profit share is typically dependent on the Chargebacks / Reptos claims by the wholesalers /
3.7.3); and in an amount that reflects the consideration to which business partner’s ultimate net sale proceeds or net distributors and Price Protections
the entity expects to be entitled in exchange for profits, subject to any reductions or adjustments that Chargebacks and reptos claims are estimated on the
- assets (or disposal groups) that are classified as held those goods or services. A 5-step approach is used to are required by the terms of the arrangement. Such basis of the average trend of the past periods and
for sale in accordance with Ind AS 105 Non-current recognise revenue as below: arrangements typically require the business partner recognised as reduction to revenue.
Assets Held for Sale and Discontinued Operations are to provide confirmation of units sold and net sales or
measured in accordance with that Standard. Step 1: Identify the contract(s) with a customer net profit computations for the products covered under 3.2.2 Sale of services
the arrangement. R evenue from services rendered, which primarily
3.1.1 Business combination under common control Step 2: Identify the performance obligation in contract relate to contract research, is recognised in the
The company has followed the guidance given  evenue in an amount equal to the base purchase price
R statement of profit and loss as the underlying services
under Appendix C of Ind AS 103 (Business Step 3: Determine the transaction price is recognised in these transactions upon delivery of are performed. Upfront payments received under these
combination of entities under common control), products to the business partners. An additional arrangements are deferred and recognised as revenue
while preparing these standalone financial  tep 4: Allocate the transaction price to the performance
S amount representing the profit share component is over the expected period over which the related
statements. obligations in the contract recognised as revenue in the period which corresponds services are expected to be performed.
to the ultimate sales of the products made by business
Business combination involving common control  tep 5: Recognise revenue when (or as) the entity
S partners only when the collectability of the profit share 3.2.3 Royalty, sale of licenses and Intellectual
is accounted by using pooling of interest method. satisfies a performance obligation" becomes probable and a reliable measurement of the property rights
profit share is available. Otherwise, recognition is The Company enters into certain dossier sales,
deferred to a subsequent period pending satisfaction royalties, licensing and supply arrangements with
of such collectability and measurability requirements. various parties. Income from licensing arrangements

236 | Annual Report 2021-22 | 237

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

is generally recognised over the term of the contract. right-of-use asset is initially measured at cost, which from a change in an index or rate, if there is a change 3.4 Foreign currencies transactions and
Some of these arrangements include certain comprises the initial amount of the lease liability in the Company’s estimate of the amount expected translation
performance obligations by the Company. Revenue adjusted for any lease payments made at or before to be payable under a residual value guarantee, if the
from such arrangements is recognised in the period the commencement date, plus any initial direct Company changes its assessment of whether it will  ransactions in foreign currencies are recorded at the
T
in which the Company completes all its performance costs incurred and an estimate of costs to dismantle exercise a purchase, extension or termination option or exchange rate prevailing on the date of transaction.
obligations. and remove the underlying asset or to restore the if there is a revised in-substance fixed lease payment. Monetary assets and liabilities denominated in foreign
underlying asset or the site on which it is located, less currencies are translated at the functional currency
3.2.4 Export incentives any lease incentives received.  hen the lease liability is remeasured in this way,
W closing rates of exchange at the reporting date.
Export incentives are accrued for based on fulfilment a corresponding adjustment is made to the carrying
of eligibility criteria for availing the incentives and  he right-of-use asset is subsequently depreciated using
T amount of the right-of-use asset, or is recorded in profit  xchange differences arising on settlement or
E
when there is no uncertainty in receiving the same. the straight-line method from the commencement date or loss if the carrying amount of the right-of-use asset translation of monetary items are recognised in
These incentives include estimated realisable values/ to the end of the lease term, unless the lease transfers has been reduced to zero. Statement of Profit and Loss except to the extent
benefits from special import licenses and benefits ownership of the underlying asset to the Company by of exchange differences which are regarded as an
under specified schemes as applicable. the end of the lease term or the cost of the right-of-  hort-term leases and leases of low-value assets
S adjustment to interest costs on foreign currency
use asset reflects that the Company will exercise a The Company has elected not to recognise right-of- borrowings that are directly attributable to the
3.2.5 Rental income purchase option. In that case the right-of-use asset will use assets and lease liabilities for leases of low-value acquisition or construction of qualifying assets, are
The Company's policy for recognition of revenue from be depreciated over the useful life of the underlying assets and short-term leases, including IT equipment. capitalized as cost of assets.
operating leases is described in note 3.3.2 below. asset, which is determined on the same basis as those The Company recognises the lease payments associated
of property and equipment. In addition, the right-of- with these leases as an expense on a straight-line basis  on-monetary assets and liabilities that are measured
N
3.2.6 Dividend and interest income use asset is periodically reduced by impairment losses, over the lease term. in terms of historical cost in foreign currencies are not
D ividend income from investments is recognised if any, and adjusted for certain remeasurements of the retranslated. Income and expense items in foreign
when the shareholder's right to receive payment has lease liability.  he Company’s significant leasing arrangements
T currency are translated at the average exchange
been established (provided that it is probable that the are mainly in respect of factory land and buildings, rates for the period, unless exchange rates fluctuate
economic benefits will flow to the Company and the  he lease liability is initially measured at the present
T residential and office premises. significantly during that period, in which case the
amount of income can be measured reliably). value of the lease payments that are not paid at the exchange rates at the dates of the transactions are
commencement date, discounted using the interest 3.3.2 The Company as lessor used.
I nterest income from a financial asset is recognised rate implicit in the lease or, if that rate cannot be readily At inception or on modification of a contract that
when it is probable that the economic benefits will determined, the Company’s incremental borrowing contains a lease component, the Company allocates the 3.5 Borrowing costs
flow to the Company and the amount of income can be rate. Generally, the Company uses its incremental consideration in the contract to each lease component Borrowing costs include:
measured reliably. Interest income is accrued on a time borrowing rate as the discount rate. on the basis of their relative standalone prices. (i) interest expense calculated using the effective
basis, by reference to the principal outstanding and at interest rate method,
the effective interest rate applicable, which is the rate  he Company determines its incremental borrowing
T  hen the Company acts as a lessor, it determines at
W
that exactly discounts estimated future cash receipts rate by obtaining interest rates from various external lease inception whether each lease is a finance lease or (ii) finance charges in respect of finance leases, and
through the expected life of the financial asset to that financing sources and makes certain adjustments to an operating lease." (iii) exchange differences arising from foreign currency
asset's net carrying amount on initial recognition. reflect the terms of the lease and type of the asset borrowings to the extent that they are regarded as
leased.  o classify each lease, the Company makes an overall
T an adjustment to interest costs.
3.3 Leases assessment of whether the lease transfers substantially
 ease payments included in the measurement of the
L
all of the risks and rewards incidental to ownership of  orrowing costs directly attributable to the acquisition,
B
 t inception of a contract, the Company assesses
A lease liability comprise the following:
the underlying asset. If this is the case, then the lease construction or production of qualifying assets, which
whether a contract is, or contains, a lease. A contract
- f ixed payments, including in-substance fixed is a finance lease; if not, then it is an operating lease. As are assets that necessarily take a substantial period
is, or contains, a lease if the contract conveys the right
payments; part of this assessment, the Company considers certain of time to get ready for their intended use or sale, are
to control the use of an identified asset for a period of
indicators such as whether the lease is for the major added to the cost of those assets, until such time as
time in exchange for consideration. To assess whether -v
 ariable lease payments that depend on an index or
part of the economic life of the asset. the assets are substantially ready for their intended
a contract conveys the right to control the use of an a rate, initially measured using the index or rate as at
identified asset, the Company uses the definition of a the commencement date; use or sale.
 hen the Company is an intermediate lessor, it
W
lease in Ind AS 116.
- a mounts expected to be payable under a residual accounts for its interests in the head lease and the sub- I nterest income earned on the temporary investment
value guarantee; and lease separately. It assesses the lease classification of a of specific borrowings pending their expenditure on
3.3.1 The Company as lessee
sub-lease with reference to the right-of-use asset arising qualifying assets is deducted from the borrowing costs
At commencement or on modification of a contract that - t he exercise price under a purchase option that
from the head lease, not with reference to the underlying eligible for capitalisation.
contains a lease component, the Company allocates the the Company is reasonably certain to exercise,
asset. If a head lease is a short-term lease to which the
consideration in the contract to each lease component lease payments in an optional renewal period if
Company applies the exemption described above, then  ll other borrowing costs are recognised in statement
A
on the basis of its relative stand-alone prices. However, the Company is reasonably certain to exercise an
it classifies the sub-lease as an operating lease. of profit and loss in the period in which they are
for the leases of property the Company has elected extension option, and penalties for early termination
not to separate non-lease components and account for of a lease unless the Company is reasonably certain incurred.
 he Company recognises lease payments received
T
the lease and non-lease components as a single lease not to terminate early.
under operating leases as income on a straightline
component.
basis over the lease term.
 he lease liability is measured at amortised cost using
T
 he Company recognises a right-of-use asset and a
T the effective interest method. It is remeasured when
lease liability at the lease commencement date. The there is a change in future lease payments arising

238 | Annual Report 2021-22 | 239

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

3.6 Employee benefits 3.7 Share-based payment arrangements measured at their market-based measure in accordance  eferred tax assets include Minimum Alternate Tax
D
with Ind AS 102. All of the market-based measure of (MAT) paid in accordance with the tax laws in India,
3.6.1 Short-term employee benefits 3.7.1 Share-based payment transactions of the
the replacement awards is recognised as remuneration which is likely to give future economic benefits in the
A ll employee benefits falling due wholly within twelve Company
cost for post-combination service. form of availability of set-off against future tax liability.
months of rendering the services are classified as Equity-settled share-based payments to employees and
Accordingly, MAT is recognised as deferred tax asset
short-term employee benefits, which include benefits others providing similar services are measured at the
3.8 Taxation in the Balance sheet when the asset can be measured
like salaries, wages, short-term compensated absences fair value of the equity instruments at the grant date.
reliably and it is probable that the future economic
and performance incentives and are recognised as I ncome tax expense represents the sum of current tax
benefit associated with the asset will be realised.
expenses in the period in which the employee renders  he fair value determined at the grant date of the
T and deferred tax.
the related service. equity-settled share-based payments is expensed on
 urrent and deferred tax are recognised in statement of
C
a straight-line basis over the vesting period, based on 3.8.1 Current tax
profit and loss, except when they relate to items that are
3.6.2 Post-employment benefits the Company's estimate of equity instruments that Current tax is calculated based on taxable profit for
recognised in other comprehensive income or directly
Payments to defined contribution retirement benefit will eventually vest, with a corresponding increase the year. Taxable profit differs from ‘profit before tax’
in equity, in which case, the current and deferred tax
plans are recognised as an expense when employees in equity. At the end of each reporting period, the as reported in the standalone statement of profit and
are also recognised in other comprehensive income or
have rendered ser vice entitling them to the Company revises its estimate of the number of loss because of items of income or expense that are
directly in equity respectively. Where current tax or
contributions. equity instruments expected to vest. The impact taxable or deductible in other years and items that are
deferred tax arises from the initial accounting for a
of the revision of the original estimates, if any, is never taxable or deductible. The Company’s current tax
business combination, the tax effect is included in the
 or defined benefit retirement plans, the cost of
F recognised in statement of profit and loss such that is calculated using tax rates that have been enacted or
accounting for the business combination.
providing benefits is determined using the projected the cumulative expense reflects the revised estimate, substantively enacted by the end of the reporting period.
unit credit method, with actuarial valuations being with a corresponding adjustment to the equity-settled
3.9 Property, plant and equipment
carried out at the end of each annual reporting period. employee benefits reserve. 3.8.2 Deferred tax
Remeasurement, comprising actuarial gains and Deferred tax is recognised on temporary differences  roperty, plant and equipment held for use in the
P
losses, the effect of the changes to the asset ceiling (if 3.7.2 Cash settled share-based payment transactions between the carrying amounts of assets and liabilities production or supply of goods or services, or for
applicable) and the return on plan assets (excluding of the Company in the standalone financial statements and the administrative purposes, are stated in the balance
net interest), is reflected immediately in the balance The fair value of the amount payable to employees corresponding tax bases used in the computation of sheet at cost less accumulated depreciation and
sheet with a charge or credit recognised in other in respect of cash settled share based payments is taxable profit. Deferred tax liabilities are generally accumulated impairment losses, if any.
comprehensive income in the period in which they recognised as an expense with the corresponding recognised for all taxable temporary differences.
occur. Past service cost is recognised in statement of increase in liabilities, over the period during which Deferred tax assets are generally recognised for all  roperties in the course of construction for production,
P
profit and loss in the period of a plan amendment. Net the employees becoming unconditionally entitled to deductible temporary differences to the extent that supply or administrative purposes are carried at cost,
interest is calculated by applying the discount rate at payment. The liability is remeasured at each reporting it is probable that taxable profits will be available less any recognised impairment loss. Cost includes
the beginning of the period to the net defined benefit date and at settlement date based on the fair value of against which those deductible temporary differences professional fees and, for qualifying assets, borrowing
liability or asset. the underlying options. Any changes in the liability are can be utilised. Such deferred tax assets and liabilities costs capitalised in accordance with the Company’s
recognised in the statement of profit or loss. are not recognised if the temporary difference arises accounting policy. Such properties are classified to
 he retirement benefit obligation recognised in the
T from the initial recognition (other than in a business the appropriate categories of property, plant and
standalone balance sheet represents the actual deficit 3.7.3 Share-based payment transactions of the combination) of assets and liabilities in a transaction equipment when completed and ready for intended
or surplus in the Company’s defined benefit plans. Any acquiree in a business combination that affects neither the taxable profit nor the accounting use. Subsequent expenditure is capitalised only if it is
surplus resulting from this calculation is limited to the W hen the share-based payment awards held by the profit. In addition, deferred tax liabilities are not probable that the future economic benefits associated
present value of any economic benefits available in the employees of an acquiree (acquiree awards) are replaced recognised if the temporary difference arises from the with the expenditure will f low to the Company.
form of refunds from the plans or reductions in future by the Company's share-based payment awards initial recognition of goodwill. Depreciation of these assets, on the same basis as other
contributions to the plans. (replacement awards), both the acquiree awards and the property assets, commences when the assets are ready
replacement awards are measured in accordance with  he carrying amount of deferred tax assets is reviewed
T for their intended use.
 liability for a termination benefit is recognised at the
A Ind AS 102 ("market-based measure") at the acquisition at the end of each reporting period and reduced to
earlier of when the entity can no longer withdraw the date. The portion of the replacement awards that is the extent that it is no longer probable that sufficient  epreciation on property, plant and equipment has
D
offer of the termination benefit and when the entity included in measuring the consideration transferred taxable profits will be available to allow all or part of been provided on the straight-line method as per the
recognises any related restructuring costs. in a business combination equals the market-based the asset to be recovered. useful life prescribed in Schedule II to the Companies
measure of the acquiree awards multiplied by the Act, 2013 except in respect of the following categories
3.6.3 Compensated absences ratio of the portion of the vesting period completed to  eferred tax liabilities and assets are measured at the
D of assets, in whose case the life of the assets has been
The Company has a policy on compensated absences the greater of the total vesting period or the original tax rates that are expected to apply in the period in assessed to be different and are as under based on
which are both accumulating and non-accumulating vesting period of the acquiree award. The excess of which the liability is settled or the asset realised, based technical advice, taking into account the nature of the
in nature. The expected cost of accumulating the market-based measure of the replacement awards on tax rates (and tax laws) that have been enacted asset, the estimated usage of the asset, the operating
compensated absences is determined by actuarial over the market-based measure of the acquiree awards or substantively enacted by the end of the reporting conditions of the asset, past history of replacement,
valuation performed by an independent actuary at included in measuring the consideration transferred is period. anticipated technological changes, manufacturers
each balance sheet date using the projected unit credit recognised as remuneration cost for post-combination warranties and maintenance support, etc.:
method on the additional amount expected to be paid/ service.  he measurement of deferred tax liabilities and assets
T
Dies and punches : 4 years
availed as a result of the unused entitlement that has reflects the tax consequences that would follow from
accumulated at the balance sheet date. Expense on non-  owever, when the acquiree awards expire as a
H the manner in which the Company expects, at the end Mobile phones : 3 years
accumulating compensated absences is recognised is consequence of a business combination and the of the reporting period, to recover or settle the carrying
Certain factory buildings : 18 years
the period in which the absences occur. Company replaces those awards when it does not have amount of its assets and liabilities.
an obligation to do so, the replacement awards are Freehold land is not depreciated.

240 | Annual Report 2021-22 | 241

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

 sset held under finance leases are depreciated as per

A as difference between the carrying amount of the Subsequent to initial recognition, internally-generated 3.12.3 Impairment of non-financial assets
Ind AS 116. investment properties and the net disposal proceeds intangible assets are reported at cost less accumulated At the end of each reporting period, the Company reviews
and are recognised in profit or loss in the period in amortisation and accumulated impairment losses, on the carrying amounts of its tangible and intangible
I ndividual assets costing less than ` 5,000 are
which it is disposed. the same basis as intangible assets that are acquired assets to determine whether there is any indication
depreciated in full in the year of purchase.
separately. that those assets have suffered an impairment loss. If
3.11 Intangible assets any such indication exists, the recoverable amount of
 n item of property, plant and equipment is
A
3.11.3 Intangible assets acquired in a business the asset is estimated in order to determine the extent
derecognised upon disposal or when no future 3.11.1 Intangible assets acquired separately
combination of the impairment loss (if any). When it is not possible
economic benefits are expected to arise from the Intangible assets with finite useful lives that are
Intangible assets acquired in a business combination to estimate the recoverable amount of an individual
continued use of the asset. Any gain or loss arising acquired separately are carried at cost less accumulated
and recognised separately from goodwill are initially asset, the Company estimates the recoverable amount
on the disposal or retirement of an item of property, amortisation and accumulated impairment losses.
recognised at their fair value at the acquisition date of the cash-generating unit to which the asset belongs.
plant and equipment is determined as the difference Amortisation is recognised on a straight-line basis over
(which is regarded as their cost). When a reasonable and consistent basis of allocation
between the sales proceeds and the carrying amount their estimated useful lives. The estimated useful life
can be identified, corporate assets are also allocated
of the asset and is recognised in statement of profit and amortisation method are reviewed at the end of
Subsequent to initial recognition, intangible assets to individual cash-generating units, or otherwise they
and loss. each reporting period, with the effect of any changes
acquired in a business combination are reported at are allocated to the smallest group of cash-generating
in estimate being accounted for on a prospective
cost less accumulated amortisation and accumulated units for which a reasonable and consistent allocation
 epreciation methods, useful lives and residual values
D basis. Intangible assets with indefinite useful lives
impairment losses, on the same basis as intangible basis can be identified.
are reviewed at each financial year-end and adjusted that are acquired separately are carried at cost less
assets that are acquired separately.
if appropriate. accumulated impairment losses, if any. Intangible
Intangible assets with indefinite useful lives and
assets with indefinite useful lives are not amortized
3.11.4 Derecognition of intangible assets intangible assets not yet available for use are tested
Asset held for sale and tested for impairment annually.
An intangible asset is derecognised on disposal, or when for impairment at least annually, and whenever there
The company categorises Non-current assets and
no future economic benefits are expected from use or is an indication that the asset may be impaired.
liabilities as ""held for sale"", when there is a proposal/ 3.11.2 Internally-generated intangible assets -
disposal. Gains or losses arising from derecognition
intention to sell an asset or group of assets in its present research and development expenditure
of an intangible asset, measured as the difference Recoverable amount is the higher of fair value less
condition. Expenditure on research activities is recognised as an
between the net disposal proceeds and the carrying costs of disposal and value in use. In assessing value
expense in the period in which it is incurred.
amount of the asset, are recognised in statement of in use, the estimated future cash flows are discounted
 he assets held for sale are carried at cost or fair value
T
profit and loss when the asset is derecognised. to their present value using a pre-tax discount rate
less costs related to disposal, which ever is lower and An internally-generated intangible asset arising from
that reflects current market assessments of the time
are not subject to depreciation." development (or from the development phase of an
3.11.5 Useful lives of intangible assets value of money and the risks specific to the asset for
internal project) is recognised if, and only if, all of the
Intangible assets are amortised over their estimated which the estimates of future cash flows have not been
3.10 Investment property following have been demonstrated:
useful life on straight line method as follows: adjusted.
 roperties that is held for long-term rentals or for
P
• the technical feasibility of completing the intangible Registration and Brands : 10 years to 25 years
capital appreciation or both, and that is not occupied If the recoverable amount of an asset (or cash-
asset so that it will be available for use or sale; Software Licenses : 5 years
by the Company, is classified as investment property. generating unit) is estimated to be less than its carrying
Investment property is measured initially at its •  the intention to complete the intangible asset and amount, the carrying amount of the asset (or cash-
3.12 Impairment of assets
cost, including related transaction costs and where use or sell it; generating unit) is reduced to its recoverable amount.
3.12.1 Impairment of financial assets:
applicable borrowing costs. Subsequent expenditure An impairment loss is recognised immediately in
• the ability to use or sell the intangible asset; The Company assesses at each date of balance sheet,
is capitalised to the asset's carrying amount only when statement of profit and loss.
whether a financial asset or a group of financial assets
it is probable that future economic benefits associated • how the intangible asset will generate probable
is impaired. Ind AS 109 requires expected credit
with the expenditure will flow to the company and future economic benefits; When an impairment loss subsequently reverses, the
losses to be measured through a loss allowance. The
the cost of the item can be measured reliably. All other carrying amount of the asset (or a cash-generating unit)
• the availability of adequate technical, financial and Company recognises lifetime expected losses for all
repairs and maintenance costs are expensed when is increased to the revised estimate of its recoverable
other resources to complete the development and to contract assets and / or all trade receivables that do
incurred. When part of the investment property is amount, but so that the increased carrying amount
use or sell the intangible asset; and not constitute a financing transaction. For all other
replaced, the carrying amount of the replaced part is does not exceed the carrying amount that would
financial assets, expected credit losses are measured at
derecognised. • the ability to measure reliably the expenditure have been determined had no impairment loss been
an amount equal to the twelve-month expected credit
attributable to the intangible asset during its recognised for the asset (or cash-generating unit)
losses or at an amount equal to the life time expected
I nvestment property are depreciated using the development. in prior years. A reversal of an impairment loss is
credit losses if the credit risk on the financial asset has
straight line method over their estimated useful lives. recognised immediately in statement of profit and loss.
increased significantly, since initial recognition.
Investment properties generally have a useful life of 25- The amount initially recognised for internally-
60 years. The useful life has been determined based on generated intangible assets is the sum of the 3.13 Inventories
3.12.2 Impairment of investment in subsidiaries and
technical evaluation performed by the management's expenditure incurred from the date when the intangible
associates Inventories are valued at the lower of cost and the net
expert. asset first meets the recognition criteria listed above.
The Company reviews its carrying value of investments realisable value after providing for obsolescence and
Where no internally-generated intangible asset can be
in subsidiaries and associates at cost, annually, or more other losses, where considered necessary. Cost includes
I nvetsment poperties are derecognised on disposal recognised, development expenditure is recognised in
frequently when there is an indication for impairment. all charges in bringing the goods to the point of sale,
or when the investment properties are permanently statement of profit and loss in the period in which it is
If the recoverable amount is less than its carrying including octroi and other levies, transit insurance and
withdrawn from use and no future economic benefits incurred.
amount, the impairment loss is accounted for. receiving charges. Cost is determined as follows:
are exepcted from its disposal. The gains or losses from
the disposal of investment properties are determined

242 | Annual Report 2021-22 | 243

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Raw materials, packing materials and stores and 3.15 Financial instruments payables maturing within one year from the balance or forecast cash transactions. When a derivative is
spares: weighted average basis sheet date, the carrying amounts approximate fair designated as a cash flow hedging instrument, the
3.15.1 Investment in subsidiaries and associates value due to the short maturity of these instruments. effective portion of changes in the fair value of the
Work-in progress: at material cost and an appropriate The Company has accounted for its investments in derivative is recognized in the cash flow hedging
share of production overheads subsidiaries and associates joint ventures at cost less 3.15.3 Equity instruments reserve being part of other comprehensive income. Any
Finished goods: material cost and an appropriate share impairment. An equity instrument is a contract that evidences ineffective portion of changes in the fair value of the
of production overheads and excise duty, wherever residual interest in the assets of the company after derivative is recognized immediately in the Statement
applicable 3.15.2 Other financial assets and financial liabilities deducting all of its liabilities. Equity instruments of Profit and Loss. If the hedging relationship no longer
Other financial assets and financial liabilities are recognised by the Company are recognised at the meets the criteria for hedge accounting, then hedge
Stock-in trade: weighted average basis. recognised when Company becomes a party to the proceeds received net off direct issue cost. accounting is discontinued prospectively. If the hedging
Net realisable value is the estimated selling price in the contractual provisions of the instruments. instrument expires or is sold, terminated or exercised,
ordinary course of business, less the estimated costs 3.15.4 Financial guarantee contracts the cumulative gain or loss on the hedging instrument
of completion and selling expenses. The net realisable Initial recognition and measurement: The Company enters into financial guarantee contracts recognized in cash flow hedging reserve till the period
value of work-in-progress is determined with reference Other financial assets and financial liabilities are with its subsidiaries and associates. At the inception of the hedge was effective remains in cash flow hedging
to the selling prices of related finished products." initially measured at fair value. Transaction costs that a financial guarantee contract, a liability is recognized reserve until the underlying transaction occurs. The
are directly attributable to the acquisition or issue of initially at fair value and then subsequently at the cumulative gain or loss previously recognized in
3.14 Provisions financial assets and financial liabilities (other than higher of the estimated loss and amortized cost, the the cash flow hedging reserve is transferred to the
financial assets and financial liabilities at fair value changes in subsequent measurement being recognised Statement of Profit and Loss upon the occurrence
Provisions are recognised when the Company has a through profit or loss) are added to or deducted from the in the Statement of Profit and Loss. Where a guarantee of the underlying transaction. If the forecasted
present obligation (legal or constructive) as a result of fair value of the financial assets or financial liabilities, is issued for a consideration, a financial asset of an transaction is no longer expected to occur, then the
a past event, it is probable that the Company will be as appropriate, on initial recognition. Transaction costs amount equal to the liability is initially recognized amount accumulated in cash flow hedging reserve is
required to settle the obligation, and a reliable estimate directly attributable to the acquisition of financial at amortized cost. Where a guarantee is issued for no reclassified in the Statement of Profit and Loss.
can be made of the amount of the obligation. assets or financial liabilities at fair value through profit consideration, the fair value is recognized as additional
or loss are recognised immediately in statement of investment in the entity to which the guarantee relates. b) Fair value hedge
The amount recognised as a provision is the best profit and loss. The Company designates derivative contracts or non
estimate of the consideration required to settle the
3.15.5 Derivative financial instruments and hedge derivative financial assets / liabilities as hedging
present obligation at the end of the reporting period, Subsequent measurement: accounting instruments to mitigate the risk of change in fair value
taking into account the risks and uncertainties Financial assets at amortised cost The Company uses various derivative financial of hedged item due to movement in interest rates,
surrounding the obligation. When a provision is Financial assets are subsequently measured at instruments such as interest rate swaps, currency foreign exchange rates and commodity prices.
measured using the cash flows estimated to settle the amortised cost if these financial assets are held within swaps and forward contracts to mitigate the risk
present obligation, its carrying amount is the present a business whose objective is to hold these assets in of changes in interest rates and foreign exchange Changes in the fair value of hedging instruments and
value of those cash flows (when the effect of the time order to collect contractual cash flows and contractual rates. Such derivative financial instruments are hedged items that are designated and qualify as fair
value of money is material). terms of financial asset give rise on specified dates to initially recognised at fair value on the date on which value hedges are recorded in the Statement of Profit
cash flows that are solely payments of principal and a derivative contract is entered into and are also and Loss. If the hedging relationship no longer meets
When some or all of the economic benefits required to interest on the principal amount outstanding. subsequently measured at fair value. Derivatives the criteria for hedge accounting, the adjustment to the
settle a provision are expected to be recovered from a
are carried as financial assets when the fair value is carrying amount of a hedged item for which the effective
third party, a receivable is recognised as an asset if it is Financial assets at fair value through other positive and as financial liabilities when the fair value interest method is used is amortised to Statement of
virtually certain that reimbursement will be received comprehensive income is negative. Profit and Loss over the period of maturity."
and the amount of the receivable can be measured Financial assets are measured at fair value through
reliably. other comprehensive income if these financial assets Any gains or losses arising from changes in the fair 3.16 Exceptional items
are held within business whose objective is achieved value of derivatives are taken directly to the Statement When an item of income or expense within profit or
3.14.1 Onerous contracts by both collecting contractual cash flows on specified of Profit and Loss, except for the effective portion loss from ordinary activity is of such size, nature or
Present obligations arising under onerous contracts are dates that are solely payments of principal and interest of cash flow hedges which is recognised in Other incidence that their disclosure is relevant to explain the
recognised and measured as provisions. An onerous on the principal amount outstanding and selling Comprehensive Income and later to the Statement of performance of the Company for the year, the nature
contract is considered to exist where the Company financial assets. Profit and Loss when the hedged item affects profit or and amount of such items is disclosed as exceptional
has a contract under which the unavoidable costs of
loss or treated as basis adjustment if a hedged forecast items.
meeting the obligations under the contract exceed the Financial assets at fair value through profit or loss transaction subsequently results in the recognition of
economic benefits expected to be received from the Financial assets are measured at fair value through a non-financial assets or non-financial liability. 3.17 Cash and cash equivalents
contract. profit or loss unless it measured at amortised cost or fair Cash and cash equivalents consist of cash at banks
value through other comprehensive income on initial Hedges that meet the criteria for hedge accounting and on hand and short-term deposits with an original
3.14.2 Contingent liabilities recognition. The transaction cost directly attributable are accounted for as follows: maturity of three months or less, highly liquid
Contingent liabilities are disclosed in notes when to the acquisition of financial assets and liabilities a) Cash flow hedge investments that are readily convertible into known
there is a possible obligation that arises from past at fair value through profit or loss are immediately The Company designates derivative contracts or non amounts of cash and which are subject to insignificant
events and whose existence will be confirmed only recognised in the statement of profit and loss. derivative financial assets / liabilities as hedging risk of changes in value. Bank overdrafts that are
by the occurrence or non-occurrence of one or more
instruments to mitigate the risk of movement in repayable on demand and form an integral part of our
uncertain future events not wholly within the control Financial liabilities interest rates and foreign exchange rates for foreign
of the entity. Financial liabilities are measured at amortised cost exchange exposure on highly probable future cash
using effective interest rate method. For trade and other flows attributable to a recognised asset or liability

244 | Annual Report 2021-22 | 245

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

cash management are included as a component of cash Ind AS 16 – Proceeds before intended use

` In Million

As at
31-Mar-22

848.10
848.10
48.13
48.13
1,017.57
1,048.83
3,107.93
2,761.16
67.76
69.73
16.11
19.04
238.00
256.36
5,343.60
5,051.35
and cash equivalents for the purpose of the statement The amendments mainly prohibit an entity from

(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
Net block
of cash flows. deducting from the cost of property, plant and
equipment amounts received from selling items
3.18 Earnings per share produced while the company is preparing the asset for
Basic Earnings Per Share ('EPS') is computed by dividing its intended use. Instead, an entity will recognise such
the net profit attributable to the equity shareholders sales proceeds and related cost in profit or loss. The

As at
31-Mar-22

-
-
-
-
469.64
398.41
2,841.94
2,337.97
101.29
86.47
17.15
14.30
534.54
418.96
3,964.56
3,256.11
by the weighted average number of equity shares Company does not expect the amendments to have

(iv) Addition during the year includes capital expenditure towards research and development of ` 22.64 Million (as at March 31, 2021: ` 65.47 Million).
outstanding during the year. Diluted earnings per share any impact in its recognition of its property, plant and
is computed by dividing the net profit by the weighted equipment in its financial statements.

cum sale agreement. The Company is in the process of transferring the said land in its name.
average number of equity shares considered for deriving
basic earnings per share and also the weighted average Ind AS 37 – Onerous Contracts - Costs of Fulfilling a

Disposal

-
-
-
-
0.02
20.00
9.57
21.13
-
-
0.91
5.83
0.57
0.80
11.07
47.76
number of equity shares that could have been issued Contract

Accumulated depreciation
upon conversion of all dilutive potential equity shares. The amendments specify that that the ‘cost of fulfilling’
Dilutive potential equity shares are deemed converted a contract comprises the ‘costs that relate directly to
as of the beginning of the year, unless issued at a later the contract’. Costs that relate directly to a contract can

- towards term loan (first pari passu charge) and working capital borrowings (second pari passu charge) by the Company.
date. In computing diluted earnings per share, only either be incremental costs of fulfilling that contract
potential equity shares that are dilutive and that either (examples would be direct labour, materials) or an

Depreciation
for the year

-
-
-
-
71.25
70.22
513.54
449.37
14.82
13.24
3.76
4.70
116.15
92.82
719.52
630.35
reduces earnings per share or increases loss per share allocation of other costs that relate directly to fulfilling
are included. The number of shares and potentially contracts. The amendment is essentially a clarification
dilutive equity shares are adjusted retrospectively for and the Company does not expect the amendment to
all periods presented in case of share splits. have any significant impact in its financial statements.

The above assets other than to the extent mentioned in notes (iii) below are owned by the Company.
As at
01-Apr-21

-
-
-
-
398.41
348.19
2,337.97
1,909.73
86.47
73.23
14.30
15.43
418.96
326.94
3,256.11
2,673.52
3.19 Recent pronouncements Ind AS 109 – Annual Improvements to Ind AS (2021)
Ministry of Corporate Affairs (“MCA”) notifies new The amendment clarifies which fees an entity includes
standard or amendments to the existing standards when it applies the ‘10 percent’ test of Ind AS 109 in
under Companies (Indian Accounting Standards) assessing whether to derecognise a financial liability.
Rules as issued from time to time. On March 23, 2022, The Company does not expect the amendment to have
MCA amended the Companies (Indian Accounting any significant impact in its financial statements

As at
31-Mar-22

848.10
848.10
48.13
48.13
1,487.21
1,447.24
5,949.87
5,099.13
169.05
156.20
33.26
33.34
772.54
675.32
9,308.16
8,307.46
Standards) Amendment Rules, 2022, applicable from

Figures in italics relate to previous year.

April 1, 2022, as below Ind AS 116 – Annual Improvements to Ind AS (2021)
The amendments remove the illustration of the
Ind AS 103 – Reference to Conceptual Framework reimbursement of leasehold improvements by the
The amendments specify that to qualify for recognition lessor in order to resolve any potential confusion

Disposals

-
-
-
-
0.19
20.00
11.68
27.56
-
-
0.93
10.14
0.59
0.80
13.39
58.50
as part of applying the acquisition method, the regarding the treatment of lease incentives that might
identifiable assets acquired and liabilities assumed arise because of how lease incentives were described
must meet the definitions of assets and liabilities in the in that illustration. The Company does not expect

Note No. 4 (i) Property, plant and equipment

Conceptual Framework for Financial Reporting under the amendment to have any significant impact in its

Gross block

Properties, plant and equipment are pledged as security

Indian Accounting Standards (Conceptual Framework) financial statements.
issued by the Institute of Chartered Accountants of

Additions

-
-
-
-
40.16
2.39
862.42
699.69
12.85
13.13
0.85
5.82
97.81
122.87
1,014.09
843.90
India at the acquisition date. These changes do not

Notes:
significantly change the requirements of Ind AS 103.
The Company does not expect the amendment to have
any significant impact in its financial statements.

- towards borrowings by subsidiary

As at
01-Apr-21

848.10
848.10
48.13
48.13
1,447.24
1,464.85
5,099.13
4,427.00
156.20
143.07
33.34
37.66
675.32
553.25
8,307.46
7,522.06
Plant and equipments

Furniture and fixtures

Office equipments
Tangible assets:

Previous year
- Leasehold
- Freehold
Particulars

Buildings

Vehicles
Land:

Total

(ii)

(v)
(i)

246 | Annual Report 2021-22 | 247
 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 4 (ii) C

 apital-Work-in Progress (CWIP)

` In Million

31-Mar-21
146.63
238.58
385.21
335.92
309.58
-
-
335.92
309.58
` In Million
Net block

As at
31-Mar-22
Ageing of Capital-Work-in Progress (CWIP)

` In Million

Amount in CWIP for a period of

Particulars Less than Greater than Total

203.67
201.80
87.99
87.99
291.66
289.79
As at
31-Mar-22
1-2 years 2-3 Years
1 year 3 Years

31-Mar-22
123.08
269.79
392.87
March 31, 2022
Projects in progress 272.41 16.53 7.30 8.27 304.51
Projects temporarily suspended - - - - -
Total 272.41 16.53 7.30 8.27 304.51

115.94
-
-
-
115.94
-
De-recognition
March 31, 2021

Accumulated amortisation
Projects in progress 440.00 319.67 40.56 13.37 813.60
Projects temporarily suspended - - - - -
Total 440.00 319.67 40.56 13.37 813.60

117.81
120.74
-
4.34
117.81
125.08
Depreciation
for the year
Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the
projects are executed as per rolling annual plan.

201.80
81.06
87.99
83.65
289.79
164.71
As at
01-Apr-21
539.59
511.38
87.99
87.99
627.58
599.37
As at
31-Mar-22
221.72
-
-
-
221.72
-
De-recognition
Gross block

249.93
-
-
-
249.93
-
Additions

Lease Liabilities
511.38
511.38
87.99
87.99
599.37
599.37
As at
01-Apr-21
(i) Right-of-use assets
Note No. 5 Leases

Office equipments

Previous year

Non-current
Particulars

Particulars
Buildings

(ii)

Current
Total

248 | Annual Report 2021-22 | 249

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

(iii) Amounts Recognised in the statement of Profit or Loss (iv) Investment properties are pledged as security
` In Million • towards borrowings by subsidiary
Particulars 31-Mar-22 31-Mar-21
• - towards term loan (first pari passu charge) and working capital borrowings (second pari passu charge)
Depreciation charge on Right-of-use asset by the Company.
Buildings 117.81 120.74
(v) During the current year the company has sold an investments property with a net book value of ` 525.03
Office equipment - 4.34
Million for a total consideration of `630 Million(Refer note 44).
117.81 125.08
Interest expense (Included in finance cost) 32.64 39.90 (vi) Amounts recognised in profit or loss for investment properties
Other Income on account of lease modification 18.73 -
` In Million
Other expenses relating to leases, not included in lease payments 45.45 38.57
Particulars 31-Mar-22 31-Mar-21

(iv) Total cash outflow Rental income 56.61 73.78

` In Million Gain on sale of investment property 104.97 -
Depreciation (25.16) (45.22)
Particulars 31-Mar-22 31-Mar-21
Profit from investment properties 136.42 28.56
Buildings 150.40 144.34
150.40 144.34 Note No. 7 (i) Other intangible assets
` In Million
Note No. 6 Investment property
Gross block Accumulated amortisation Net block
` In Million Particulars As at As at As at 01- Amortisation As at As at
Additions Disposals Disposals
Gross block Accumulated depreciation Net block 01-Apr-21 31-Mar-22 Apr-21 for the year 31-Mar-22 31-Mar-22
Particulars As at As at As at Depreciation As at As at
- I nternally
Additions Disposals Disposals generated:
01-Apr-21 31-Mar-22 01-Apr-21 for the year 31-Mar-22 31-Mar-22
Land 147.27 - 115.96 31.31 - - - - 31.31 - Registrations 385.79 83.18 12.98 455.99 221.67 49.27 0.45 270.49 185.50
and brands*
147.27 - - 147.27 - - - - 147.27
360.26 29.73 4.20 385.79 167.94 53.94 0.21 221.67 164.12
Building 812.97 - 710.23 102.74 281.89 25.16 301.16 5.89 96.85
- Software and 828.09 66.26 - 894.35 586.55 131.90 - 718.45 175.90
812.97 - - 812.97 236.67 45.22 - 281.89 531.08
licenses
Total 960.24 - 826.19 134.05 281.89 25.16 301.16 5.89 128.16
755.73 72.36 - 828.09 447.72 138.83 - 586.55 241.54
Previous 960.24 - - 960.24 236.67 45.22 - 281.89 678.35
Total 1,213.88 149.44 12.98 1,350.34 808.22 181.17 0.45 988.94 361.40
year
Previous year 1,115.99 102.09 4.20 1,213.88 615.66 192.77 0.21 808.22 405.66
Notes:
*Additions represents product development expenditure capitalised during the year
(i) Figures in italics relate to previous year. Notes:
(i) Figures in italics relate to previous year.
(ii) Details of assets given under an operating lease
` In Million Note No. 7 (ii) Intangible assets under development
Gross block Gross block
Intangible assets under development aging schedule
Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
` In Million
Freehold Land 31.31 147.27 31.31 147.27
Amount in Intangibles assets under development for a period of
Buildings 102.74 812.97 96.85 531.08
Particulars Less than Greater than Total
Total 134.05 960.24 128.16 678.35 1-2 years 2-3 Years
1 year 3 Years
March 31, 2022
(iii) Fair value of investment properties
Projects in progress 61.29 51.18 - 140.17 252.64
The fair value of the Company’s investment properties as at March 31, 2022 has been arrived at ` 949 Million (as Projects temporarily suspended -
at March 31, 2021 : ` 1,579 Million) on the basis of a valuation carried out by independent valuers. The valuation
Total 61.29 51.18 - 140.17 252.64
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. March 31, 2021
The fair value has been categorized as level 3 hierarchy based on the inputs used in valuation technique. Projects in progress 125.05 11.84 108.56 47.64 293.09
The inputs used are as follows: Projects temporarily suspended -
Total 125.05 11.84 108.56 47.64 293.09
• 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 Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the
• Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, projects are executed as per rolling annual plan.
and prevailing market condition.

250 | Annual Report 2021-22 | 251

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 8 Investments estimated the recoverable amount based on the value in use of the underlying businesses. The computation
Investments consist of the following: uses cash flow forecasts based on the most recently approved financial budgets and strategic forecasts. The
Investments - Non-current 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
` In Million
Company has concluded that no impairment provision is required in the standalone financial statements.
Particulars 31-Mar-22 31-Mar-21
(A) Investments in subsidiaries: (Carried at cost) Note No. 9 Loans receivable
Equity shares, unquoted Loans consist of the following:
-3 0,306,148 (As at March 31, 2021: 30,306,148) shares of GBP 1 each fully paid up in 5,322.52 5,322.52 (i) Long-term loans receivable
Strides Arcolab International Limited, UK
` In Million
- 438,000 (As at March 31, 2021: 438,000) shares of USD 1 each fully paid up in Strides 23.13 23.13
Pharma International Limited, Cyprus Particulars 31-Mar-22 31-Mar-21
- 142 (As at 31 March, 2021: 142) shares of SGD 1 each fully paid up in Strides Pharma 11,476.68 11,476.68 Unsecured, Considered good:
Asia Pte Limited, Singapore
Loans to:
- 12,788,136 (As at March 31, 2021: 12,788,136) shares of CHF 1 each fully paid up in 466.59 466.59
- Related parties (Refer note 44) 1,246.09 852.21
SVADS Holdings SA, Switzerland
Total 1,246.09 852.21
- 172,215 ( As at March 31, 2021: 160,000) shares of ` 10 each fully Paid up in Arcolab 52.73 1.60
Private Limited, India
1,347.42 1,347.42
(ii) Short-term loans receivable
- 28,266,880 (As at March 31, 2021: 28,266,880) shares of `10 each fully paid up in
Vivimed Life Sciences Private Limited, India ` In Million
Total (A) 18,689.07 18,637.94 Particulars 31-Mar-22 31-Mar-21
(B) Investments in associates: Unsecured, Considered good:
Equity shares, unquoted (Carried at cost) Loans to:
- 11,089,320 (As at March 31, 2021: 739,288 shares of ` 10 each) shares of ` 1 each fully 5,308.55 5,308.55 - Employees 43.02 35.66
paid up in Stelis Biopharma Limited, India(formerly known as Stelis Biopharma Total 43.02 35.66
Private Limited) (refer note (a), (b) and (c) below)
Total (B) 5,308.55 5,308.55 Note No. 10 Other financial assets
Total [A+B] 23,997.62 23,946.49
Other financial assets consist of the following:
Aggregate amount of unquoted investments 23,997.62 23,946.49
(i) Non-current financial assets
Aggregate amount of impairment in value of investments - -
` In Million
Refer Note 39 for disclosures with respect to section 186(4) of Companies Act, 2013. Refer note 44 for related party
Particulars 31-Mar-22 31-Mar-21
transactions.
Security deposits * 186.92 214.59
Note: Fixed deposits with banks 12.38 2.77
Total 199.30 217.36
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 * Includes security deposit given to related parties (Refer note 44)
shareholders, meeting customary closing conditions.
(ii) Current financial assets
b)  ,979,370 (As at March 31, 2021: 407,065) equity shares are pledged against borrowings taken by Stelis
5
` In Million
Biopharma Limited from a financial institution.
Particulars 31-Mar-22 31-Mar-21
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 Unsecured, considered good:
current maturities of non-current borrowings of ` 3,731.55 million as at March 31, 2022. As of March 31, Receivables from related parties (Refer note 44) 344.75 110.58
2022, the associate has inventories relating to Sputnik V, which remains unsold due to geopolitical situation Interest accrued on loans given (Refer note 44) 105.87 21.53
between Russia and Ukraine and sanctions on Russia and Russian Direct Investment Fund (RDIF). The Derivative asset 9.08 64.54
management of the Associate is confident of liquidating these inventories within the shelf life in the
Others:
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 - Receivable from director (Refer note 44)** 141.90 -
grow further in the coming years. The Associate also proposes to monetise some of its existing intangible - Dividend receivable from subsidiaries (Refer note 44) - 124.63
assets under development through potential licensing / strategic partnerships. The Associate has requested - Gratuity claim receivables 28.83 23.11
for temporary relaxations for compliance with these financial covenants from the lenders as these have not - Others 0.13 20.38
been met as of the date of these financial results. Also, the shareholders of the Associate have committed
Total 630.56 364.77
to extend the necessary financial support against the monies outstanding on the partly paid shares.
**The Company’s erstwhile Managing Director and Chief Executive Officer tendered resignation in March 2022 which has been accepted
Given the mitigating factors discussed above, while there is a reasonable expectation that the Associate by the Board of Directors (the Board). As part of the terms of his remuneration, as approved in the Annual General Meeting dated 20
will be able to generate/raise adequate resources to continue operating for the foreseeable future and August 2020, he was entitled to certain amounts subject to fulfilment of certain service conditions. Consequent to his resignation
that the going concern basis for the preparation of its financial statements remains appropriate, there before the completion of the specified service period, the Board decided to recover amounts due to the Company based on the originally
exists a material uncertainty in respect of the Associate’s going concern. This also required the Company approved terms of his appointment. Accordingly, in line with the requirements of Section 197(9) of the Act, the Company has recorded
to undertake the Impairment assessment of the Company’s investment in the Associate. The Company such excess remuneration of ` 141.9 million paid as a recoverable balance as at 31 March 2022.

252 | Annual Report 2021-22 | 253

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 11 Deferred tax balances Note No. 12 Income tax assets (net)
` In Million The income tax assets consists of the following:
As at As at Non-current income tax assets
Particulars
31-Mar-22 31-Mar-21
` In Million
Deferred tax assets 1,221.88 1,181.42
Particulars 31-Mar-22 31-Mar-21
Deferred tax liabilities (446.08) (429.31)
Advance income tax (net of provisions) 978.22 681.40
Deferred tax assets (net) 775.80 752.11
Income tax paid under protest 593.77 593.77
Total 1,571.99 1,275.17
` In Million

Recognised
Note No. 13 Other assets
Recognised in Other assets (unsecured) consist of the following:
Recognised in in other
2021-2022 Opening balance statement of Closing balance
equity comprehensive
profit and loss
income (i) Other non-current assets
Deferred tax (liabilities)/assets ` In Million
in relation to: Particulars 31-Mar-22 31-Mar-21
Cash flow hedges (22.56) - - 20.72 (1.84) Considered good:
Property, plant and equipment and (406.75) - (37.49) - (444.24) - Capital advances 18.71 105.50
Intangible assets
- Prepaid expenses 24.60 41.54
Employee benefits 230.03 - (35.40) 0.88 195.51
- Lease equalisation asset - 2.18
Merger related expenses 5.13 - (4.23) - 0.90
Balances with Government authorities:
Leases 26.44 - (6.53) - 19.91
- Indirect taxes paid under protest 25.78 25.78
Allowance for credit loss 86.81 - (23.59) - 63.22
Others:
Others 4.97 - (6.72) - (1.75)
- Receivable from KIADB - 4.79
(75.93) - (113.96) 21.60 (168.29)
Total 69.09 179.79
MAT Credit entitlement 828.04 - 111.86 - 939.90
Tax losses - - 4.19 - 4.19 (ii) Other current assets
Total 752.11 - 2.09 21.60 775.80
` In Million

Particulars 31-Mar-22 31-Mar-21

` In Million
Considered good:
Recognised Advances to suppliers 183.09 125.16
Recognised in
Recognised in in other
2020-2021 Opening balance statement of Closing balance Advances to employees 0.78 0.32
equity comprehensive
profit and loss
income Advances to others - 7.55
Deferred tax (liabilities)/assets in Prepaid expenses 189.46 236.00
relation to:
Incentives receivables 16.69 195.69
Cash flow hedges 114.10 - - (136.66) (22.56)
Balances with Government authorities 450.58 635.55
Property, plant and equipment and (441.31) - 34.56 - (406.75)
Total 840.60 1,200.27
Intangible assets
Employee benefits 196.62 - 25.25 8.16 230.03
Note No. 14 Inventories*
Merger related expenses 3.93 - 1.20 - 5.13
` In Million
Leases 19.23 - 7.21 - 26.44
Particulars 31-Mar-22 31-Mar-21
Allowance for credit loss 59.63 - 27.18 - 86.81
Raw materials (including goods in transit) 3,722.27 4,351.00
Others (11.12) - 16.09 - 4.97
Work-in-progress 282.60 309.47
(58.92) - 111.49 (128.50) (75.93)
Finished goods 899.20 1,999.95
MAT Credit entitlement 954.37 - (126.33) - 828.04
Stock-in-trade 2.55 17.49
Tax losses 108.93 - (108.93) - -
Stores and spares 224.01 212.89
Total 1,004.38 - (123.77) (128.50) 752.11
Total 5,130.63 6,890.80
Under the Indian Income Tax Act, 1961, the Company is liable to pay Minimum Alternate Tax (MAT). MAT paid
* Refer note 3.13 for mode of valuation of inventories.
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.

254 | Annual Report 2021-22 | 255

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 15 Trade receivables Note No. 16 Cash and cash equivalents
` In Million ` In Million

Particulars 31-Mar-22 31-Mar-21 Particulars 31-Mar-22 31-Mar-21

Unsecured Cash on hand 1.62 2.18
Considered good * 13,144.11 8,402.07 Balances with banks:
Credit impaired - 63.00 - In current accounts 35.50 69.85
13,144.11 8,465.07 - Funds-in-transit 84.12 181.00
Less: Allowance for credit loss (Refer note 47.5) (180.92) (248.42) Total 121.24 253.03
Total 12,963.19 8,216.65
Note No. 17 Other balances with banks
*Includes receivables from related parties (Refer note 44)
` In Million

The Company has availed bill discounting facilities from the banks which do not meet the derecognition criteria Particulars 31-Mar-22 31-Mar-21
for transfer of contractual rights to receive cash flows from the respective trade receivables since they are with - In deposit accounts (Original maturity more than 3 months but less than 12 months) 4.02 446.49
recourse to the Company. Accordingly as at March 31, 2022, trade receivables balances include ` 804.12 Million In earmarked accounts:
(As at March 31, 2021: ` 864.14 Million) and the corresponding financial liability to the banks is included as part
- Unpaid dividend accounts 10.92 21.68
of working capital loan under short- term borrowings.
- Unpaid shares accounts 0.33 0.33
Trade receivables ageing as at March 31, 2022 - Group gratuity accounts 0.09 1.26
` In Million - Balance held as margin money against working capital facilities with banks 7.86 7.63
Outstanding for following periods from due date of payment Total 23.22 477.39
Particulars Not due Less than 6 6 months - More than Total
months 1 Year
1-2 Years 2-3 Years
3 Years Note No. 18 Equity share capital
Undisputed trade receivables ` In Million

-Considered good 5,741.66 4,467.18 2,614.59 274.13 43.19 3.36 13,144.11 Particulars 31-Mar-22 31-Mar-21
-Significant increase in credit risk - - - - - - - Authorised
-credit impaired - - - - - - - 188,370,000 equity shares of ` 10/- each with voting rights 1,883.70 1,883.70
Less:Allowance for credit loss - - - - - - (180.92) (March 31, 2021: 188,370,000 Equity shares of ` 10/- each) (refer note 37)
Disputed trade receivables 1,883.70 1,883.70
-considered good - - - - - - - Issued, subscribed and fully paid-up
-Significant increase in credit risk - - - - - - - 897.90 896.81
89,790,214 equity shares of `10/- each with voting rights
-credit impaired - - - - - - -
(March 31, 2021: 89,680,964 equity shares of ` 10/- each)
5,741.66 4,467.18 2,614.59 274.13 43.19 3.36 12,963.19
Total 897.90 896.81

Trade receivables ageing as at March 31, 2021

(i) Reconciliation of number of shares and amount outstanding
` In Million
Outstanding for following periods from due date of payment 31-Mar-22 31-Mar-21
Particulars
Particulars Not due Total No. of shares ` In Million No. of shares ` In Million
Less than 6 6 months - More than
1-2 Years 2-3 Years
months 1 Year 3 Years Equity share capital
Undisputed trade receivables Equity share of ` 10/- each
-Considered good 5,993.41 1,997.90 132.71 133.41 144.64 - 8,402.07 Balance at the beginning of the year 89,680,964 896.81 89,565,464 895.65
-Significant increase in credit risk - - - - - - - Changes in equity share capital during the year
-credit impaired - - - - 63.00 - 63.00 - Shares issued pursuant to exercise of stock options 109,250 1.09 115,500 1.16
Less:Allowance for credit loss - - - - - - (248.42) (Refer note 42(a))
Disputed trade receivables Balance at the end of the year 89,790,214 897.90 89,680,964 896.81
-considered good - - - - - - -
-Significant increase in credit risk - - - - - - -
(ii) Detail of the rights, preferences and restrictions attaching to each class of shares outstanding
equity shares of ` 10/- each:
-credit impaired - - - - - - -
5,993.41 1,997.90 132.71 133.41 207.64 - 8,216.65 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.

256 | Annual Report 2021-22 | 257

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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: 31-Mar-22 31-Mar-21

S.No Promoter Name % change % change

31-Mar-22 31-Mar-21 % of total % of total
Particulars No. of Shares during the No. of Shares during the
shares shares
No. of shares % No. of shares % year year
Pronomz Ventures LLP 16,926,147 18.85% 16,484,247 18.38% 24 Suchi Chaitanya Srisrimal 93,750 0% 0% 93,750 0% 0%
SBI Long Term Equity Fund 2,380,298 2.65% 5,798,104 6.47% 25 V. Jatin (HUF) 408 0% 0% 408 0% 0%
Aditya Birla Sun Life Trustee Private Limited A/C 5,275,798 5.88% 6,251,740 6.97% 26 V. Nitin Kumar (HUF) 500 0% 0% 500 0% 0%
Aditya Birla Sun Life Pharma & Healthcare Fund 27 Vimal Kumar S - (HUF) 115,158 0% 0% 115,158 0% 0%
Life Insurance Corporation of India 4,136,701 4.61% 4,985,701 5.56% 28 S Abhaya Kumar (HUF) 78,043 0% 0% 78,043 0% 24%
29 Taru Mardia 14,000 0% 0% 14,000 0% 0%
(iv) Details of equity shares of ` 10/- each reserved for issuance: 30 Vibha Srisrimal 14,000 0% 0% 14,000 0% 0%
No. of shares 31 Vineetha Mohanakumar Pillai 190,000 0% 0% 190,000 0% 9%
Particulars
31-Mar-22 31-Mar-21
32 Lakshmi Gopalakrishnan 50,000 0% 0% 50,000 0% 0%
33 Rajeshwari Amma - 0% 0% - 0% (100%)
Towards employee stock options under the various Strides stock option plans (Refer note 2,590,700 2,602,800
42(a)) Body Corporates
Total 34 Abusha Investment & 281,221 0% 0% 281,221 0% 0%
Manangement Services LLP
(v) Buy back of shares, issue of bonus shares and shares allotted as fully paid up pursuant to 35 Agraganya Private Trust 300,000 0% 100% - 0% 0%
contract(s) without payment being received in cash. 36 Ambemata Securities 481,660 1% 0% 481,660 1% 0%
37 Shasun Enterprises LLP 823,953 1% 0% 823,953 1% 0%
There have been no buy back of shares, issue of shares by way of bonus shares or issue of shares pursuant (Formerly, Devendra Estates LLP)
to contract without payment being received in cash for the period of five years immediately preceding the 38 Shasun Leasing And Finance (P) 1,005,000 1% 0% 1,005,000 1% 0%
Balance sheet date. Limited
39 Triumph Venture Holdings LLP - 0% (100%) 35,937 0% 0%
(vi) Details of equity shares held by promoters 40 Karuna Business Solutions LLP 1,225,050 1% 0% 1,223,500 1% 103%
31-Mar-22 31-Mar-21 41 Agnus Capital LLP - 0% 0% - 0% (100%)
% change % change 42 Agnus holding Private Limited - 0% 0% - 0% (100%)
S.No Promoter Name % of total % of total
No. of Shares during the No. of Shares during the 43 Chayadeep Properties - 0% 0% - 0% (100%)
shares shares
year year
44 Devendra Estates Private Limited - 0% 0% - 0% (100%)
Promoters
45 Karuna Ventures Private Limited - 0% 0% - 0% (100%)
1 Arun Kumar Pillai 1,540,997 2% 11% 1,385,797 2% 1%
46 Lifecell Internatinal Private - 0% 0% - 0% (100%)
2 Devendra Kumar S 2 0% (100%) 88,736 0% 687% Limited
3 K R Ravishankar 1,255,593 1% 0% 1,255,593 1% 0% 47 Sequent Scientific Limited - 0% 0% - 0% (100%)
4 Vimal Kumar S 293,201 0% 12% 262,027 0% 2%
5 Pronomz Ventures LLP 16,926,147 19% 3% 16,484,247 18% 30%
Note No. 19 Other equity
Promoters Group
` In Million
6 Abhaya Kumar S 57,869 0% 100% - 0% 0%
7 Chaitanya D 59,882 0% 113% 28,175 0% (93%) Particulars Note 31-Mar-22 31-Mar-21

8 Gayatri Nair 33,000 0% 0% 33,000 0% 0% (A) Share application money pending allotment 19 (A) 4.06 -
9 Hemalatha Pillai 66,760 0% 0% 66,760 0% 39% (B) Reserves and Surplus
10 Jatin V 461,042 1% 0% 461,033 1% 0% i) Capital reserve 19 (B) (i) 200.79 200.79
11 Jitesh D 25,825 0% 0% 25,825 0% (93%) ii) Securities premium account
12 K R Lakshmi 130,365 0% 0% 130,365 0% 0% Securities premium 19 (B) (ii) (a) 17,321.88 17,272.67
13 Leela V 417,867 0% 0% 417,858 0% 0% Reserve for Business Restructure (BRR) 19 (B) (ii) (b) 3,846.38 3,846.38
14 Monisha Nitin 149,764 0% 0% 149,764 0% 3% iii) Capital redemption reserve 19 (B) (iii) 601.61 601.61
15 Nitin Kumar V 527,093 1% 6% 498,005 1% 0% iv) Share options outstanding account 19 (B) (iv) 20.46 47.20
16 Padmakumar Karunakaran Pillai 186,485 0% 0% 186,485 0% 9% v) General reserve 19 (B) (v) 3,902.47 3,881.20
17 Pooja Srisrimal 93,750 0% 0% 93,750 0% 0% vi) Retained earnings 19 (B) (vi) 7,408.87 5,831.30
18 Purushothaman Pillai G 33,013 0% 0% 33,013 0% 0% (C) Items of other comprehensive income
19 Rahul Nair 20,000 0% 0% 20,000 0% 0% i) Effective portion of cash flow hedge 19 (C) (i) 3.42 42.00
20 Rajitha Gopalakrishnan 60,000 0% 0% 60,000 0% 33% ii) Remeasurement of the defined benefit liabilities / (assets) 19 (C) (ii) (141.01) (139.38)
21 Rupali Jatin 189,826 0% 0% 189,826 0% 3% Total 33,168.93 31,583.77
22 Sajitha Pillai 95,000 0% 0% 95,000 0% 19%
23 Sajjan D 176,670 0% (26%) 237,692 0% 42%

258 | Annual Report 2021-22 | 259

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

` In Million Nature and purpose of other reserve

Particulars 31-Mar-22 31-Mar-21 (a) Capital reserve
(A) Share application money pending allotment Capital reserve is created on account of FCCB’s, Mergers and acquisitions and Demergers. It is utilised in
Opening balance - - accordance with the provisions of the Companies Act, 2013.
Add: Received during the year 4.06 -
Closing balance (A) 4.06 - (b) Securities premium
(B) Reserves and surplus Securities premium is used to record the premium received on issue of shares. It is utilised in accordance
(i) Capital reserve with the provisions of the Companies Act, 2013.
Opening balance 200.79 200.79
(c) Reserve for Business Restructure
Add: Movement during the year - -
The Scheme of restructuring approved by the shareholders on April 13, 2009 included a Scheme of
Closing balance 200.79 200.79
Arrangement that envisaged the creation of a Reserve for Business Restructure(BRR) as set out in the Scheme.
(ii) Securities premium account
The Reserve was to be utilized by December 31, 2012 for specified purposes by either the Company or its
(a) Securities premium subsidiaries. The balance of ` 3,846.38 Million identified under the Securities Premium Account represents
Opening balance 17,272.67 17,218.99 amounts utilized by the subsidiaries of the Company from the Reserve prior to December 31, 2012 and have
Add: Premium on shares issued during the year (Refer note 42(a)) 49.21 53.68 been earmarked for set off on consolidation.
Closing balance 17,321.88 17,272.67
(b) Reserve for Business Restructure (BRR) (d) Capital redemption reserve
Opening balance 3,846.38 3,846.38 Capital redemption reserve is a statutory, non-distributable reserve into which the amounts are transferred
Add: Movement during the year - - following the redemption or purchase of Company’s own shares. It is utilised in accordance with the
Closing balance 3,846.38 3,846.38 provisions of the Companies Act, 2013.
Total Securities premium 21,168.26 21,119.05
(iii) Capital redemption reserve (e) Share options outstanding account
Opening balance 601.61 601.61 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
Add: Movement during the year - -
amount of cost recognised is transferred to share premium on exercise of the related stock options.
Closing balance 601.61 601.61
(iv) Share options outstanding account (Refer notes 42(a))
(f) General reserve
Opening balance 47.20 57.24
General reserves are the retained earnings of a Company which are apportioned out of Company’s profits.
Add: Employee stock compensation expenses ( including amounts cross charged to 12.71 15.21 General reserve is a free reserve which can be utilized for any purpose after fulfilling certain conditions in
subsidiary)
accordance with the provisions of the Companies Act, 2013.
Less: Transferred to securities premium account on exercise (net) (18.18) (19.84)
Less: Transferred to general reserve on lapse (21.27) (5.41) (g) Retained earnings
Closing balance 20.46 47.20 Retained earnings are the profits that the Company has earned till date, less any transfers to other reserves,
(v) General reserve dividends or other distributions paid to its equity shareholders.
Opening balance 3,881.20 3,875.79
Add: Movement during the year 21.27 5.41 (h) Cash flow hedging reserve
Closing balance 3,902.47 3,881.20 The cash flow hedging reserve represents the cumulative effective portion of gains or losses (net of taxes,
(vi) Retained earnings if any) arising on changes in fair value of designated portion of hedging instruments entered into for cash
Opening balance 5,831.30 5,228.04 flow hedges.
Add: Profit for the year 1,801.88 782.40
Less: Dividend on equity shares including taxes (224.31) (179.14) (i) Remeasurement of the defined benefit liabilities / (asset)
Closing balance 7,408.87 5,831.30 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
Total Reserves and surplus (B) 33,302.46 31,681.15
actuarial gain or loss reserve will not be reclassified subsequently to statement of profit and loss.
(C) Items of other comprehensive income
(i) Effective portion of cash flow hedge
Note No. 20 Borrowings
Opening balance 42.00 (212.44)
Borrowings consist of the following:
Add / (less): Movement during the year (59.30) 391.10
Add / (less): Tax impact on above 20.72 (136.66) (i) Non-current borrowings
Closing balance 3.42 42.00 ` In Million
(ii) Remeasurement of the defined benefit liabilities / (assets) (Refer note 43) Particulars 31-Mar-22 31-Mar-21
Opening balance (139.38) (124.19) Secured
Add / (less): Movement during the year (2.51) (23.35) 638.05 632.00
- Term loans from banks (Refer note (i) to (iv) below)
Add / (less): Tax impact on above 0.88 8.16
- Term loans from others (Refer note (v) to (vi) below) 608.90 843.39
Closing balance (141.01) (139.38) Total 1,246.95 1,475.39
Total items of other comprehensive income (C) (137.59) (97.38)
Other equity [(A) + (B) + (C)] 33,168.93 31,583.77

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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: ` In Million

` In Million Particulars 31-Mar-22 31-Mar-21

Disclosed under long term borrowings 1,246.95 1,475.39
Terms of repayment and security 31-Mar-22 31-Mar-21
Disclosed under current borrowings:
(i) Term loans from banks: Loan1
- Current maturities of long-term loans 512.96 378.98
Long-term loan 1.72 2.86
Total 1,759.91 1,854.37
Current maturities of long-term loan 1.15 1.06
Security: Hypothecation of assets procured from the term loans. (ii) Current borrowings
Derived rate of interest: 7.0% to 8.0% p.a.
Repayment terms: 36 to 60 monthly instalments. The outstanding term as at March ` In Million
31, 2022 is 19 to 44 instalments. Particulars 31-Mar-22 31-Mar-21
(ii) Term loans from banks: Loan 2 Current
Long-term loan 276.58 398.50 Current maturities of long-term loans (Refer note 20(i) above) 512.96 378.98
Current maturities of long-term loan 125.00 93.75 Secured loans repayable on demand from banks: (Refer note (a) below)
Security: Pari-Passu first charge on the fixed assets of the Company & second Pari- - Working capital loans 9,463.75 6,444.46
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 Unsecured working capital loans from: (Refer note (b) below)
after 12 months from disbursement date. The outstanding term as at March 31, 2022 - Bank 1,056.09 490.55
is 39 instalments. - Others 166.57 -
(iii) Term loans from banks: Loan 3 Total 11,199.37 7,313.99
Long-term loan - 33.33
Current maturities of long-term loan 33.33 200.00 Note:
Security: Extension of first pari-passu charge on the entire current assets of the (a) Details of security for the secured loans repayable on demand: Working capital and short term loans from banks
Company, both present and future, and extension of second pari-passu charge on are secured by first pari passu charge over current assets of the Company and second pari passu charge on
all the fixed asset of the Company, both present and future, excluding land and movable and immovable fixed assets of the Company (other than land and building situated at Navi Mumbai).
building at CBD Belapur & Navi Mumbai Derived rate of interest: 7.0% p.a. to 8.0%
Derived rate of interest ranges from 1.40% to 9.35%.
p.a. Repayment terms: 18 equal monthly instalments after initial moratorium. The
outstanding term as at March 31, 2022 is 2 instalments.
(b) Derived rate of interest ranges from 6% to 9% for unsecured loans from others.
(iv) Term loans from banks: Loan 4
Long-term loan 359.75 197.31
(c) The returns and statements filed by the Company with the banks for its working capital loans, are in line
Current maturities of long-term loan 124.80 - with books of accounts of the Company.
Security: First pari-passu charge on the fixed asset of the Company excluding
properties at CBD Belapur and Navi Mumbai and second pari-passu charge on the (d) Also refer note 2.
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
Net debt reconciliation
outstanding term as at March 31, 2022 is 47 instalments. ` In Million
(v) Term loans from others: Loan 1 Particulars 31-Mar-22 31-Mar-21
Long-term loan 328.88 461.97 Non-current borrowings 1,246.95 1,475.39
Current maturities of long-term loan 125.00 31.25 Current borrowings- working capital loans 10,686.41 6,935.01
Security: Pari-Passu first charge on the fixed assets of the Company & second Pari- Current maturities of non-current borrowings 512.96 378.98
passu charge on the current assets of the Company
Derived rate of interest: 9.5% p.a. to 10.5% p.a. Less:
Repayment terms: 48 equal monthly instalments from date of first disbursement. Cash and cash equivalents 121.24 253.03
The outstanding term as at March 31, 2022 is 44 instalments. Balances in deposit accounts (Refer note 17) 4.02 446.49
Fixed deposit with bank - non current (Refer note 10(i)) 12.38 2.77
Details of security and terms of repayment for the non-current borrowings: Net debt 12,308.68 8,087.09
` In Million

Terms of repayment and security 31-Mar-22 31-Mar-21

(i) Term loans from others: Loan 2
Long-term loan 280.02 381.42
Current maturities of long-term loan 103.68 52.92
Security: Pari-Passu first charge on the fixed 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 outstanding term as at March 31, 2022 is 15 instalments.

262 | Annual Report 2021-22 | 263

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

` In Million (ii) Current provisions

Non Current ` In Million
Balance in deposit borrowings
Cash and cash Current Particulars 31-Mar-22 31-Mar-21
Reconciliation accounts (including (including Net Debt
equivalents borrowings
non current) current Provision for sales return - 11.72
maturities)
Provision for employee benefits:
As on April 1, 2021 253.03 449.26 1,854.37 6,935.01 (8,087.09)
- Compensated absences 204.53 213.04
Cash flows (131.79) (432.86) 295.36 3,644.60 (4,504.61)
- Gratuity - 1.95
Repayments - - (399.72) - 399.72
Total 204.53 226.71
Foreign Exchange Fluctuation - - - 106.80 (106.80)
Others - - 9.90 - (9.90)
` In Million
As on March 31, 2022 121.24 16.40 1,759.91 10,686.41 (12,308.68)
Compensated
Movement in provisions (2021-22) Sales return Gratuity Total
absences
Note No. 21 Other financial liabilities
Opening balance 11.72 282.77 213.04 507.53
Other financial liabilities consist of the following:
Provision recognised/ (utilised) during the year (11.72) 51.91 (8.51) 31.68
(i) Other non-current financial liabilities Closing balance - 334.68 204.53 539.21
` In Million

Particulars 31-Mar-22 31-Mar-21 ` In Million

Security deposits* 6.58 39.59 Compensated
Movement in provisions (2020-21) Sales return Gratuity Total
Total 6.58 39.59 absences
Opening balance 12.10 206.95 182.10 401.15
* Includes security deposit received from related party (Refer note 44)
Provision recognised/ (utilised) during the year (0.38) 75.82 30.94 106.38
(ii) Other current financial liabilities Closing balance 11.72 282.77 213.04 507.53

` In Million
Note No. 23 Other liabilities
Particulars 31-Mar-22 31-Mar-21
Other liabilities consist of the following:
Interest accrued but not due on borrowings 10.04 5.20
(i) Other non-current liabilities
Unclaimed dividends* 10.91 21.68
` In Million
Derivative liability 3.84 -
Particulars 31-Mar-22 31-Mar-21
Other payables:
- Payables to employees under cash settled share based payment plan (Refer note 42(b)) 33.00 52.80 Prepaid rent liability 0.51 1.08

- Other payable to employees 87.84 215.04 Total 0.51 1.08

- Payable to related parties (Refer note 44) 30.86 32.81

(ii) Other current liabilities
- Payables on purchase of property, plant and equipment and intangible assets** 149.62 277.61
` In Million
- Others 0.33 0.33
Total 326.44 605.47 Particulars 31-Mar-22 31-Mar-21
Other payables:
*Investor Education and Protection Fund shall be credited when due.
** Includes payables to related parties (Refer note 44)
- Advance from customers* 20.23 103.48
- Statutory liabilities 97.15 117.00
Note No. 22 Provisions - Others 4.47 9.56
Provisions consist of the following: Total 121.85 230.04
(i) Non-current provisions * Includes advance from related party (Refer note 44)
` In Million
Note No. 24 Trade payables*
Particulars 31-Mar-22 31-Mar-21
` In Million
Provision for employee benefits:
Gratuity (Refer note 43) 334.68 280.82 Particulars 31-Mar-22 31-Mar-21

Total 334.68 280.82 - Total outstanding dues of micro enterprises and small enterprises(MSME) 331.32 318.12
( Refer note (i) below)
- Total outstanding dues of creditors other than micro enterprises and small enterprises 6,106.65 7,033.89
Total 6,437.97 7,352.01
* Includes dues to related party (Refer note 44)

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Trade payable ageing schedule as at March 31, 2022 Note No. 25 Tax liabilities
` In million Tax liabilities consist of the following;
Outstanding for following periods from due date of payment (i) Non-current tax liabilities (net)
Particulars Unbilled Less than More than 3 Total ` In Million
Not due 1 - 2 Years 2 - 3 Years
Payables 1 year Years
Particulars 31-Mar-22 31-Mar-21
Undisputed
Provision for income tax - 1,790.91
- MSME - 139.23 182.63 7.66 1.01 0.79 331.32
Total - 1,790.91
- Others 290.00 2,011.36 3,483.21 162.69 81.35 78.04 6,106.65
Disputed
(ii) Current tax liabilities (net)
- MSME - - - - - -
` In Million
- Others - - - - - -
Particulars 31-Mar-22 31-Mar-21

Trade payable ageing schedule as at March 31, 2021 Provision for income tax (net of advance tax) - 31.53
Total - 31.53
` In million

Outstanding for following periods from due date of payment Note No. 26 Revenue from operations
Particulars Unbilled Less than More than Total
Payables
Not due
1 year
1 - 2 Years 2 - 3 Years
3 Years A. Revenue Streams
Undisputed The Company is primarily involved into development and manufacture of pharmaceutical products. Other
- MSME - 150.11 166.02 1.50 0.36 0.13 318.12 operating revenue include support service, royalty income and export incentives.
- Others 560.75 3,174.93 2,972.36 92.41 106.50 126.94 7,033.89 ` In Million
Disputed
Particulars 31-Mar-22 31-Mar-21
- MSME - - - - - -
Sale of products * 19,080.25 17,765.35
- Others - - - - - -
Sale of services (Refer note (i) below) 111.87 189.19
Other operating revenues (Refer note (ii) below) 597.91 621.12
(i) Disclosure required under Section 22 of the Micro, Small and Medium Enterprises Development
Act, 2006 Total 19,790.03 18,575.66

There are no material dues owed by the Company to Micro and Small enterprises(MSME), which are * Includes revenue from related parties (Refer note 44).
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 B. Disaggregated revenue information
such parties have been identified on the basis of information available with the Company and has been In the following table, revenue from contracts with customers is disaggregated by primary geographical
relied upon by the auditors. market
` In million ` In Million

Particulars 31-Mar-22 31-Mar-21 Revenue from contracts with customers 31-Mar-22 31-Mar-21

(i) The principal amount and the interest due thereon remaining unpaid to any Africa 1,153.79 1,364.03
supplier as at the end of each year Australia 443.20 478.56
- Principal amount due to micro and small enterprises 331.32 318.12 Asia 11,311.91 10,061.77
- Interest due on the above 5.07 1.53 North America 1,106.40 1,494.63
(ii) The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 3,215.23 1,294.53 Europe 4,653.64 3,678.82
2006 along with the amounts of the payment made to the supplier beyond the
appointed day during each accounting year. India 483.09 854.53
(iii) The amount of interest due and payable for the period of delay in making payment 20.78 17.00 Others 40.09 22.20
(which has been paid but beyond appointed day during the year) but without adding Subtotal 19,192.12 17,954.54
the interest specified under the MSMED Act, 2006
Revenue from other sources
(iv) The amount of interest accrued and remaining un-paid at the end of each 25.85 18.53
Other operating revenue 597.91 621.12
accounting year.
(v) The amount of further interest remaining due and payable even in the succeeding 55.03 29.18 Subtotal 597.91 621.12
years, until such date when the interest dues as above are actually paid to the small Total 19,790.03 18,575.66
enterprise for the purposes of disallowance as a deductible expenditure under the
MSMED Act, 2006 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.

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

(i) Sale of services comprises: Note No. 28 Changes in inventories of finished goods, work-in-progress and stock-in-trade
` In Million
` In Million
Particulars 31-Mar-22 31-Mar-21
Particulars 31-Mar-22 31-Mar-21
Development income * 53.43 146.87
Inventories at the end of the year:
Licensing fees 27.97 12.36
- Finished goods 899.20 1,999.95
Others 30.47 29.96
- Work-in-progress 282.60 309.47
Total 111.87 189.19
- Stock-in-trade 2.55 17.49
* Includes development income from related parties (Refer note 44)
1,184.35 2,326.91
Inventories at the beginning of the year:
(ii) Other operating revenue comprises:
- Finished goods 1,999.95 653.01
` In Million - Work-in-progress 309.47 487.99
Particulars 31-Mar-22 31-Mar-21 - Stock-in-trade 17.49 10.57
Sale of intellectual property rights (Refer note 44) 498.52 363.47 2,326.91 1,151.57
Royalty income 28.99 76.04 Net decrease/ (increase) 1,142.56 (1,175.34)
Export incentives - 134.21
Support service income (Refer note 44) 61.48 37.57 Note No. 29 Employee benefits expense
Others 8.92 9.83 ` In Million

Total 597.91 621.12 Particulars 31-Mar-22 31-Mar-21

Salaries, wages and bonus 2,241.02 2,252.44
Note No. 27 Other income Contributions to provident and other funds (Refer note 43) 214.51 179.33
` In Million
Share based compensation expense (Refer note 42) (8.90) 64.92
Particulars 31-Mar-22 31-Mar-21 Staff welfare expenses 274.28 230.55
Interest income (Refer note (i) below) 887.49 126.05 Total 2,720.91 2,727.24
Income from current investment 2.84 0.31
Dividend from subsidiaries* - 353.70 Note No. 30 Finance costs
Rental income from operating leases* 59.79 113.03 ` In Million
Other non-operating income Particulars 31-Mar-22 31-Mar-21
- Guarantee commission(Refer note 44) 137.89 256.42 Interest on borrowings 656.07 560.96
-G
 ain on sale of property, plant and equipment, Investment property and other 107.63 31.04 Interest on operating lease liabilities (Refer note 5) 32.64 39.90
intangible assets (net)*
Other finance costs 53.70 52.53
- Gain on sale of non-current investment - 8.84
Total 742.41 653.39
- Others 39.21 0.57
Total 1,234.85 889.96 Note No. 31 Depreciation and amortisation expense
* Includes income from related parties (Refer note 44) ` In Million

Note: Particulars 31-Mar-22 31-Mar-21

Depreciation on property, plant and equipment 719.52 630.35
(i) Interest income comprises: Depreciation on right-of-use assets 117.81 125.08
` In Million Depreciation on investment property 25.16 45.22
Particulars 31-Mar-22 31-Mar-21 Amortisation on intangible assets 181.17 192.77
Interest from banks on deposits 8.72 28.66 Total 1,043.66 993.42
Interest on loans (Refer note 44) 106.02 96.47
Interest from others * 772.75 0.92
Total 887.49 126.05
* Includes interest income amounting to ` 748 million on tax refunds.

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 32 Other expenses (ii) Payments to the auditors comprises (net of taxes) for:
` In Million ` In Million

Particulars 31-Mar-22 31-Mar-21 Particulars 31-Mar-22 31-Mar-21

Subcontracting charges 232.15 219.67 - Audit of Standalone, consolidated financial statements, limited review and other 21.03 19.95
Power, fuel and water charges 437.60 458.20 certifications
Rent (Refer note 5) 45.45 38.57 - Reimbursement of expenses 0.99 0.66
Repairs and maintenance: Total 22.02 20.61
- Buildings 20.83 33.99
- Machinery 505.29 415.40
Note No. 33 Tax expenses
` In Million
- Others 146.38 142.30
Insurance 106.05 75.61 Particulars 31-Mar-22 31-Mar-21

Rates and taxes 131.53 112.57 Current Tax

Communication expense 54.79 53.45 Current tax expenses 20.88 210.18
Travelling and conveyance 41.61 23.38 Current tax expense relating to prior years* (1,605.59) -
Printing and stationery 21.62 24.22 (1,584.71) 210.18
Carriage, freight and forwarding 1,770.65 933.99 Deferred tax benefit
Business promotion 3.75 6.76 Deferred tax expense /(benefit) 109.77 (2.56)
Royalty expenses - 2.55 Minimum alternative tax credit reversed (111.86) 126.33
Donations and contributions - 4.61 (2.09) 123.77
Expenditure on Corporate Social Responsibility (Refer note (i) below) 24.03 24.81 Net tax expense (1,586.80) 333.95
Support service expenses (Refer note 44) 527.58 570.51 *The Company during the previous year had received certain refunds including interest of ` 1,790 million from tax authorities on
Legal and professional fees 410.84 235.18 account of certain tax credits for earlier years. The amount of refund was earlier recorded as a liability pending receipt of certain
Payments to auditors (Refer note (ii) below) 22.02 20.61 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
Provision for doubtful trade receivables/written off 38.35 192.77 the interest income amounting to ` 748 million on the said refund under other income in these financial statements.
Other receivables written off 15.85 -
Consumption of stores and spares 466.68 537.23 ` In Million

Research and development expenses 147.34 188.16 Particulars 31-Mar-22 31-Mar-21

Failure to supply 43.02 - Profit before income taxes 215.08 1,116.35
Miscellaneous expenses 49.77 52.86 Indian statutory income tax rate 34.944% 34.944%
Total 5,263.18 4,367.40 Expected income tax expense 75.16 390.10
Tax effect of adjustments to reconcile expected income tax expense to reported income
Note: tax expenses:
(i) Expenditure on Corporate Social Responsibility: Effect of concessions and allowances (16.47) (40.95)
` In Million Tax pertaining to prior years (1,655.32) -
Items with differential tax rates - (35.08)
Particulars 31-Mar-22 31-Mar-21
Effect of previously unrecognised tax losses and deductible temporary differences - -
(a) Gross amount required to be spent during the year 24.03 22.84
Others (net) 9.83 19.88
(b) Amount spent during the year on (Refer note below) 24.03 24.81
Total Income tax expense (1,586.80) 333.95
Surplus of CSR spent - (1.97)
Income tax expense attributable to:
Total of previous years' shortfall - -
Profit before tax (1,586.80) 333.95
Details of amount spent on CSR activities: (1,586.80) 333.95
` In Million Refer note 11 for significant components of deferred tax assets and liabilities.
Category 31-Mar-22 31-Mar-21 The Company is eligible for various tax incentives / exemptions with respect to taxability of income received
Recurring Projects in India including repatriation of any profits as dividends from subsidiaries and associates, which may result
Health(Including Respond to pandemic) 14.02 19.36 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
Education 3.87 3.25
in possible tax litigations/assessments. Judgment is required in assessing the availability of tax incentives /
Employability 1.72 1.50 exemptions. These judgments could change over time as each of the matter progresses with the relevant tax
Impact Assessment - 0.70 authorities and accordingly may impact the accounting treatment followed by the Company. The Company based
Ongoing Projects on its assessments believes that appropriate accruals have been recorded for all these matters, to the extent
Vidhyadama - Haragabbe School Project 4.42 - necessary.
Total 24.03 24.81

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 34 Earnings and expenditure in foreign currency Note No. 36 Other comprehensive income
34.1 Earnings in foreign currency ` In Million

` In Million Particulars 31-Mar-22 31-Mar-21

Particulars 31-Mar-22 31-Mar-21

A) Items that will not be reclassified to profit or loss

Sale of products 18,639.36 16,940.83 Defined benefit obligations (2.51) (23.35)

Development income 53.43 146.87 Income tax on defined benefit obligations 0.88 8.16

Licensing fees 27.97 12.36 (1.63) (15.19)

Sale of intellectual property rights 498.52 363.47 B) Items that may be reclassified to profit or loss

Royalty income 28.99 76.04 Movement in cash flow hedge (59.30) 391.10

Dividend from subsidiaries - 353.70 Income tax on cash flow hedge 20.72 (136.66)

Guarantee commission 83.25 212.40 (38.58) 254.44

Other income 58.30 37.62 Total (40.21) 239.25

Total 19,389.82 18,143.29

Note No. 37 Merger and acquisitions
34.2 Expenditure in foreign currency Business combination under common control during year ended March 31, 2021
` In Million The Scheme u/s 230 to 232 of the Companies Act, 2013, between Strides (the transferee company), Strides
Particulars 31-Mar-22 31-Mar-21
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
Royalty expenses - 1.99
Tribunal (NCLT), Bangalore Bench vide order dated May 28, 2020, and by the NCLT, Maharashtra Bench vide
Finance costs 133.33 132.32 order dated November 6, 2020.
Consumption of stores and spares 42.43 56.01
Legal and professional fees 188.95 24.59 Entity / Business acquired Principal activity Date of control
Rates and taxes 72.93 86.08 Strides Emerging Market Limited Develop, manufacture, market and trade in pharmaceutical products 01-Jun-12
Research and development expenses 27.19 53.72 Arrow Remedies Private Limited Provide support services to the group entities 12-Sep-15
Business promotion 0.24 0.27 Fagris Medica Private Limited Develop, manufacture, market and trade in pharmaceutical products 31-Mar-17
Support service charges - 0.11
Others 63.76 36.80 Salient features of the Scheme
Total 528.83 391.89 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,
Note No. 35 Details of research and development expenditure incurred (charged to statement 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.
of profit and loss)
` In Million 2. Upon the Scheme becoming effective, the authorised share capital of the Transferor Companies shall stand
Particulars 31-Mar-22 31-Mar-21
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.
Salaries, wages and bonus 255.73 244.71
Cost of materials consumed 67.07 164.26 3. On the Scheme becoming effective and with effect from the Appointed Date, the merger of the Transferor
Legal and professional fees 16.58 20.04 Companies with the Transferee Company is accounted by the Transferee Company as per the applicable
Bio study expense 91.52 128.00 accounting principles prescribed under the Indian Accounting Standard (Ind AS) 103, ‘Business Combinations’
Consumption of stores and spares 107.53 154.84 notified under Section 133 of the Act and or any other applicable Ind AS, as amended from time to time.
Travelling and conveyance 7.37 8.73
Depreciation and amortisation expense 89.59 95.45
Others 163.88 174.20
Total 799.27 990.23

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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 ` In Million

` In Million S. No. Particulars 31-Mar-22 31-Mar-21

1 Segment Revenue
Strides Emerging Arrow Remedies Fagris Medica
Particulars Total a) Pharmaceutical business 19,790.03 18,575.66
Market Limited Private Limited Private Limited
Current assets 136.49 0.33 2.09 138.91 b) Bio-pharmaceutical business - -
Non-current assets 358.43 0.05 - 358.48 Revenue from operations 19,790.03 18,575.66
Current liabilities (153.18) (1.04) (0.77) (154.99) 2 Segment results
Non-current liabilities (589.29) - - (589.29) a) Pharmaceutical business 215.08 1,116.35
Net assets of the transferor companies (247.55) (0.66) 1.32 (246.89) b) Bio-pharmaceutical business - -
Reserves transferred Profit before tax (I) 215.08 1,116.35
Capital Reserve - - (29.27) (29.27) Tax expense (II) (1,586.80) 333.95
Securities Premium (210.62) - - (210.62) Profit for the period (I-II) 1,801.88 782.40
Retained Earnings 513.18 0.76 38.34 552.28
Items of Other Comprehensive Income 1.26 - - 1.26 ` In Million
Net assets (including reserves) of the transferor 56.27 0.10 10.39 66.76 S. No. Particulars 31-Mar-22 31-Mar-21
companies
1 Segment Assets
a) Pharmaceutical business 49,020.47 46,816.40
Calculation of Capital reserve arising on business combination under common control
b) Bio-pharmaceutical business 5,318.11 5,396.93
` In Million
Total Segment Assets 54,338.58 52,213.33
Strides Emerging Arrow Remedies Fagris Medica 2 Segment Liabilities
Particulars Total
Market Limited Private Limited Private Limited
a) Pharmaceutical business 20,271.75 19,658.88
Carrying value of Investments - 0.21 - 0.21
b) Bio-pharmaceutical business - 73.87
Add : Reversal of impairment loss recognised in - - 18.70 18.70
retained earnings Total Segment Liabilities 20,271.75 19,732.75

Gross Carrying value of Investments - 0.21 18.70 18.91 Other than revenue from related parties as disclosed in note 44 of the standalone financial statements, no external customer
Less: Net assets (including reserves) of the transferor (56.27) (0.10) (10.39) (66.76) individually accounted for more than 10% of the total revenue of the Company for the year ended March 31, 2022 and March
companies 31, 2021.
(Excess) / shortfall of the net assets (including (56.27) 0.11 8.31 (47.85)
reserves) recognised of the transferor companies Note No. 39 Details of Loans and Investments during the year
over the carrying value of investments/purchase
consideration, transferred to capital reserves 39.1 Details of Loans made by the Company
Details of loans during the year
Note No. 38 Segment information ` In Million
Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (“CODM”) Given Repayment
evaluates the Company’s performance based on an analysis of various performance indicators. The accounting Name of Nature of Rate of As at As at
Security Term during during the
borrower relationship interest April 1, 2021 March 31, 2022
principles used in the preparation of these financial results are consistently applied to record revenue and the year year
expenditure in individual segments Vivimed Lifesciences Wholly owned Unsecured 10.50% 2 Years 822.21 463.87 70.00 1,216.09
Private Limited subsidiary
Effective January 1, 2021, the Company pursuant to its assessment that the business has now evolved from its Strides Consumer Associate Unsecured 10% 5 Years 30.00 - - 30.00
incubation stage and to align to the decision to demerge certain parts of its business, implemented operational Private Limited
changes in how its CODM evaluates its businesses, including resource allocation and performance assessment. Total 852.21 463.87 70.00 1,246.09
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” Details of loans during the previous year
and “Bio-pharmaceutical”. The Company had restated segment information for the historical periods presented
` In Million
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. Name of Nature of Rate of As at
Given Repayment
As at
Security Term during during the
borrower relationship interest April 1, 2021 March 31, 2022
the year year
Vivimed Lifesciences Wholly owned Unsecured 10.50% 2 Years 725.80 451.46 355.06 822.21
Private Limited subsidiary
Strides Consumer Associate Unsecured 10% 5 Years 30.00 - - 30.00
Private Limited
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.

274 | Annual Report 2021-22 | 275

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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: 39.3 Details of current investments purchased and sold during the year:
` In Million ` In Million

Face As at Invested Sold As at As at Purchase Sold Adjustments As at

Particulars
Particulars value per April 1, during the during the Conversion March 31, April 1, 2021 during the year during the year March 31, 2022
unit 2021 year year 2022
Investment measured at fair value through
(A) Investments in subsidiaries: profit or loss
(Carried at cost)
Quoted investments
Equity shares, unquoted
Investments in mutual funds - 540.61 (540.61) - -
Strides Arcolab International Limited, UK GBP 1 5,322.52 - - - 5,322.52
Total - 540.61 (540.61) - -
Strides Pharma International Limited, USD 1 23.13 - - - 23.13
Cyprus
Details current investments purchased and sold during the previous year
Strides Pharma Asia Pte Limited, SGD 1 11,476.68 - - - 11,476.68
Singapore ` In Million

SVADS Holdings SA, Switzerland CHF 1 466.59 - - - 466.59 Particulars

As at Purchase Sold Adjustments As at
April 1, 2021 during the year during the year March 31, 2022
Vivimed Life Sciences Private Limited, `10 1,347.42 - - - 1,347.42
India Investment measured at fair value through
profit or loss
Arcolab Private Limited, India `10 1.60 51.13 - - 52.73
Quoted investments
18,637.94 51.13 - - 18,689.07
Investments in mutual funds 150.00 (150.00) - -
(B) Investments in associates:
(Carried at cost) Total 150.00 (150.00) - -
Equity shares, unquoted
Stelis Biopharma Limited, India 5,308.55 - - - 5,308.55 39.4 Movement in corporate guarantee during the year
`1
` In Million
5,308.55 - - - 5,308.55
Total 23,946.49 51.13 - - 23,997.62 Withdrawn/
As at Given Exchange As at
Cancelled
Particulars April 1, during the rate March 31,
during the
Details of non-current investments purchased and sold during the previous year: 2021 year
year
movement 2022

` In Million Strides Pharma Global Pte. Limited - Banks and financial 7,090.75 2,144.03 - 268.83 9,503.61
institutions
Face value As at Invested Sold As at
Particulars per unit April 1, during the during the Conversion March 31,
Purpose: Non-current and working capital borrowings for
2020 year year 2021 capital investments
(A) Investments in subsidiaries: (Carried at cost) Stelis Biopharma Private Limited, India - Banks and 6,188.52 3,100.00 - 131.31 9,419.83
financial institutions
Equity shares, unquoted
Purpose: Non-current borrowings for capital investments
Strides Arcolab International Limited, UK GBP 1 4,467.74 - - 854.78 5,322.52
Strides Pharma Inc., USA- Banks and financial 1,463.19 - (365.80) 41.91 1,139.30
Strides Pharma International Limited, Cyprus USD 1 23.13 - - - 23.13 institutions
Strides Pharma Asia Pte Limited, Singapore SGD 1 11,476.68 - - - 11,476.68 Purpose- workings capital borrowings
SVADS Holdings SA, Switzerland CHF 1 466.59 - - - 466.59 Vivimed Life Sciences Private Limited, India - Banks and 320.00 - - - 320.00
financial institutions
Vivimed Life Sciences Private Limited, India `10 1,347.42 - - - 1,347.42
Purpose: Working capital borrowings
Arcolab Private Limited, India `10 1.60 - - - 1.60 Strides Pharma UK Ltd, UK - Banks and financial 605.14 - - (6.41) 598.73
17,783.16 - - 854.78 18,637.94 institutions
Compulsory convertible preference shares, Purpose: Asset acquisition and Working capital
unquoted borrowings

Strides Arcolab International Limited, UK GBP 1,000 854.78 - - (854.78) - Total 15,667.60 5,244.03 (365.80) 435.64 20,981.47

854.78 - - (854.78) -
(B) Investments in associates: (Carried at cost)
Equity shares, unquoted
Stelis Biopharma Private Limited, India `10 2,913.59 2,394.96 - - 5,308.55
Strides Consumer Private Limited, India `100 0.10 - (0.10) - -
2,913.69 2,394.96 (0.10) - 5,308.55
Compulsorily Convertible Preference shares,
unquoted
Strides Consumer Private Limited, India `100 153.86 - (153.86) - -
153.86 - (153.86) - -
Total 21,705.49 2,394.96 (153.96) - 23,946.49

276 | Annual Report 2021-22 | 277

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Movement in corporate guarantee during the previous year Note No. 41 Contingent liabilities (to the extent not provided for)
` In Million
` In Million
Withdrawn/
As at Given during Exchange rate As at Particulars 31-Mar-22 31-Mar-21
Particulars Cancelled
April 1, 2020 the year movement March 31, 2021
during the year a) Corporate guarantees
Strides Pharma Asia Pte Ltd., Singapore- Mylan 15,070.60 - (15,070.60) - - The Company has given corporate guarantees to financial institutions and other 20,981.47 15,667.60
Inc. Purpose - Guarantee is extended on behalf parties, including on behalf of its subsidiaries in the ordinary course of business.
of Strides Pharma Asia in relation to its financial b) Claims against the Company not acknowledged as debt
obligations under a Share Purchase Agreement
for the sale of shares of its subsidiary Agila - Disputed tax liabilities arising from assessment proceedings relating to earlier years 1,740.14 1,664.77
Specialities Global Pte. Ltd., Singapore from the income tax authorities. The outflow, if any, on account of disputed taxes is
dependent on completion of assessments/ disposal of appeals and adjustments for
Strides Pharma Global Pte. Limited - Banks and 7,289.35 - - (198.60) 7,090.75 payment made under protest.
financial institutions Purpose: Non-current
borrowings for capital investments - Disputed excise, custom, service tax and sales tax liabilities arising from 588.01 588.01
assessment proceedings relating to prior years. The outflow, if any, on account of
Stelis Biopharma Private Limited, India - 6,291.59 - - (103.07) 6,188.52 disputed liabilities is dependent on completion of assessments/ disposal of appeals
Banks and financial institutions Purpose: Non- and adjustments for payment made under protest.
current borrowings for capital investments
Strides Pharma Inc., USA- Banks and financial 2,260.59 365.80 (1,130.30) -32.90 1,463.19 As per the judgment of Honourable Supreme Court dated February 28, 2019 on the definition of “Basic Wages”
institutions Purpose- Non-current and workings under the Employees Provident Funds & Misc. Provisions Act, 1952 and based on Company’s evaluation, there are
capital borrowings significant uncertainties and numerous interpretative issues relating to the judgement and hence it is unclear
Vivimed Life Sciences Private Limited, India 320.00 - - - 320.00 as to whether the clarified definition of Basic Wages would be applicable prospectively or retrospectively. The
- Banks and financial institutions Purpose: amount of the obligation therefore cannot be measured with sufficient reliability for past periods and hence has
Working capital borrowings currently been considered to be a contingent liability.
Strides Pharma UK Ltd, UK - Banks and financial 1,123.15 - (561.58) 43.57 605.14
institutions Purpose: Asset acquisition and Other than the matters disclosed above, the Company is also involved in other disputes including patent and
Working capital borrowings commercial matters that arise from time to time in the ordinary course of business. Management is of the
Total 32,355.28 365.80 (16,762.48) (291.00) 15,667.60 view that the resolution of these disputes will not have any material adverse effect on the Company’s financial
position or results of operations.

39.5 Disclosure as per Regulation 34 (3) and 53 (f) read with Part A of Schedule V of the SEBI (Listing Note No. 42 Share-based payments
Obligations and Disclosure Requirements) Regulations, 2015 in respect of loans and advances, the
a. Details of the employee share option plan of the Company:
amount in the nature of loans outstanding at year end:
` In Million (a) The ESOP titled “Strides ESOP 2016” (formerly known as Strides Shasun ESOP 2016) (ESOP 2016) was
Maximum amount outstanding
approved by the shareholders on April 21, 2016. 3,000,000 options are covered under the Plan which are
Outstanding convertible into equal number of equity shares of the Company. The vesting period of these options
during the year ended
Borrower range over a period of three years. The options must be exercised within a period of one year from the
As at As at
March 31, 2022 March 31, 2021
March 31, 2022 March 31, 2021 date of vesting. Company has granted 67,500 options (Previous year: 25,000) under this scheme during
Strides Consumer Private Limited 30.00 30.00 30.00 30.00
the current year.
Vivimed Lifesciences Private Limited 1,216.09 822.21 1,216.09 1,092.41
(b) During the current year, Employee compensation costs of ` 10.90 Million (for the year ended March 31,
Total 1,246.09 852.21 1,246.09 1,122.41 2021: ` 12.12 Million) relating to the above referred Employee Stock Option Plans have been recognised
in the Statement of Profit and Loss.
Note No. 40 Commitments
` In Million Fair value of share options granted during the year
Particulars 31-Mar-22 31-Mar-21
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.
Estimated amount of contracts remaining to be executed on capital account and not 141.20 296.27
provided for (net of advances)
Expected volatility is based on the historical share price volatility over the past 3 years.
Total 141.20 296.27 Inputs into the model -
Particulars ESOP 2016-X ESOP 2016-XI
No of Options 25,000 42,500
Grant date share price ` 798.60 ` 607.70
Exercise price ` 599.00 ` 455.80
Expected volatility 39.06% 38.26%
Option life 3 years 3 years
Expected Dividend % 20.00% 20.00%
Risk-free interest rate 6.023% 6.223%

278 | Annual Report 2021-22 | 279

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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: The principal assumptions used for the purposes of the actuarial valuations were as follows:
During the year 2021-22 During the year 2020-21 Valuation as at
Particulars
Weighted Weighted 31-Mar-22 31-Mar-21
Particulars average exercise average exercise
Options (No’s) Options (No’s) Discount rate(s) 6.91% 6.58%
price per option price per option
(`) (`) Expected rate(s) of salary increase 10.00% 10.00%
Option outstanding at the beginning of the year 245,900 348.79 421,200 346.86 Mortality Rate As per IALM (2012-14) ultimate
Granted during the year 67,500 508.84 25,000 311.00 Retirement age (years) 58 years 58 years
Exercised during the year** (122,750) 294.80 (115,500) 302.97
Lapsed/ cancelled during the year (55,400) 621.49 (84,800) 426.17 Amounts recognised in total comprehensive income in respect of these defined benefit plans are as
Options outstanding at the end of the year* 135,250 393.98 245,900 348.79 follows:
Options available for grant 2,590,700 - 2,602,800 - ` In Million

Particulars 31-Mar-22 31-Mar-21

* 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) Service cost:
Current service cost 51.53 42.12
b. Details of the cash settled share based payment plan of the Company: Net interest expense 17.11 11.89
Components of defined benefit costs recognised in statement of profit and loss 68.64 54.01
On May 20, 2020, the Board approved “Strides Long Term Incentive Plan 2020” titled the LTIP 2020 (“”the Plan””).
Remeasurement on the net defined benefit liability:
The Plan shall be in the form of Phantom Units. Each Phantom Unit, upon exercise, entitles the awardee a
Return on plan assets [excluding amounts included in net interest expense] (excess) / short (1.57) 3.74
cash benefit equal to the Share Price on the date of exercise minus exercise price to be paid to the Company.
Actuarial losses arising from changes in demographic assumptions 7.22 13.56
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 Actuarial losses arising from changes in financial assumptions (11.45) (4.76)
during the current year. Actuarial losses arising from experience adjustments 8.31 10.81
Components of defined benefit costs recognised in other comprehensive income 2.51 23.35
During the current year, Employee compensation cost reversal of ` 19.80 Million (cost for the year ended Total 71.15 77.36
March 31, 2021: ` 52.80 Million) relating to the Plan have been recorded in the Statement of Profit and Loss
The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’
on account of final settlement of the Phantom units granted previous year.
line item in the statement of profit and loss. The remeasurement of the net defined benefit liability is included
in other comprehensive income.
Note No. 43 Employee Benefits Plans
Defined contribution plan The amount included in the balance sheet arising from the entity’s obligation in respect of its
defined benefit plans is as follows:
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 ` In Million

specified percentage of the payroll cost to fund the benefits. The Company recognised ` 143.81 Million for Particulars 31-Mar-22 31-Mar-21
provident fund contributions, ` 2.06 Million for employee state insurance scheme contributions in the Statement Present value of funded defined benefit obligation 464.87 397.94
of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules Fair value of plan assets (130.19) (126.49)
of the schemes. Funded status 334.68 271.45
Present value of unfunded defined benefit obligation - 11.32
Defined benefit plan
Net liability arising from defined benefit obligation 334.68 282.77
The Company offers gratuity benefits, a defined employee benefit scheme to its employees.
Movements in the present value of the defined benefit obligation are as follows:
Composition of the plan assets ` In Million

The fund is managed by LIC, the fund manager. The details of composition of plan assets managed by the fund Year ended
Particulars
manager is not available with the Company. However, the said funds are subject to Market risk (such as interest 31-Mar-22 31-Mar-21
risk, investment risk, etc.). Opening defined benefit obligation 409.26 343.38
(less) on account of acquisitions / transfers 2.76 -
The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk.
Expenses recognised in statement of profit and loss
Current service cost 51.53 42.12
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 Interest cost 25.43 20.63
the plan participants will increase the plan’s liability. Remeasurement (gains)/losses:
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan Actuarial gains and losses arising from changes in financial assumptions (11.45) (4.76)
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. Actuarial gains and losses arising from experience adjustments 8.31 10.81
Actuarial gains and losses arising from demographic assumption 7.22 13.56
Benefits paid (28.19) (16.48)
Closing defined benefit obligation 464.87 409.26

280 | Annual Report 2021-22 | 281

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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: Note No. 44
` In Million Related party transactions : List of related parties
Year ended
Particulars Relationship Name
31-Mar-22 31-Mar-21 Direct Holding
Wholly owned
Opening fair value of plan assets 126.49 136.43 subsidiaries Arco Lab Private Limited, India
Remeasurement gain (loss): Strides Arcolab International Limited, UK
Return on plan assets (excluding amounts included in net interest expense) 8.32 8.73 Strides Pharma Asia Pte Limited, Singapore
Contributions from the employer 22.00 - Strides Pharma International Limited, Cyprus
Actuarial gain/(loss) on plan assets 1.57 (3.74) SVADS Holdings SA, Switzerland
(28.19) (14.93) Vivimed Life Sciences Private Limited, India
Benefits paid
Step down subsidiaries
Closing fair value of plan assets 130.19 126.49
Altima Innovations Inc, USA
Arrow Life Sciences (Malaysia) Sdn. Bhd., Malaysia
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected
Arrow Pharma (Private) Limited, Srilanka (Upto September 9, 2021)
salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of
Arrow Pharma Life Inc., Philippines Philipines (Upto September 13, 2021)
the respective assumptions occurring at the end of the reporting period, while holding all other assumptions
Arrow Pharma Pte Limited, Singapore
constant.
Generic Partners (Canada) Inc., Canada (Upto October 12 2021)
Generic Partners UK Limited, UK
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. Generic Partners (International) Pte. Ltd, Singapore (Upto June 1,2021)
Generic Partners (R&D) Pte. Ltd, Singapore (Upto June 1, 2021)
If the expected salary growth increases (decrease) by 1%, the defined benefit obligation would be ` 490.31 Million Pharmapar Inc, Canada (from June 30, 2021)
(` 440.52 Million) as at March 31, 2022. Shasun Pharma Solutions Inc, USA
Stabilis Pharma Inc, USA
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit Stelis Biopharma (Malaysia) Sdn Bhd, Malaysia
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of Strides CIS Limited, Cyprus
the assumptions may be correlated. Strides LifeSciences Limited, Nigeria
Strides Netherlands BV, Netherlands
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has Strides Nordic ApS, Nordic
been calculated using the projected unit credit method at the end of the reporting period, which is the same as Strides Pharma (Cyprus) Limited, Cyprus
that applied in calculating the defined benefit obligation liability recognised in the balance sheet. Strides Pharma Global (UK) Limited, UK
Strides Pharma Global Pte Limited, Singapore
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years. Strides Pharma Inc, USA
Strides Pharma (UK) Limited, UK
There has been no change in the process used by the Company to manage its risks from prior periods. Strides Pharma Canada Inc, Canada
Strides Pharma Science Pty Ltd, Australia
Expected future cash outflows towards the plan are as follows- Strides Vivimed Pte Limited, Singapore (Upto June 1, 2021)
` In Million Vensun Pharmaceuticals Inc, USA
Other Subsidiaries: Direct Holding:
Financial Year Amount
Step down subsidiaries
2022-23 49.17
Apollo Life Sciences Holdings Proprietary Limited, South Africa (51.76%)
2023-24 44.15
Beltapharm, SpA, Italy (97.94%)
2024-25 43.31
Eris Pharma GmbH, Germany
2025-26 46.55
Fairmed Healthcare AG, Switzerland
2026-27 55.03
Fairmed Healthcare GmbH, Germany
2027-28 to 2031-32 218.56
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

282 | Annual Report 2021-22 | 283

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Relationship Name Related party closing balances

Joint Ventures (JV) Sihuan Strides (HK) Ltd, Hongkong ` In Million
Associates Aponia Laboratories Inc, USA Enterprises owned
or significantly
Biolexis Private Limited, India Wholly Owned Other Associates / Directors /KMP/
influenced by
Subsidiaries Subsidiaries Joint venture Relatives of KMP
Juno OTC Inc, Canada (with effect from May 31, 2019 to June 14, 2021) directors or KMP or
Particulars their relatives
Regional  Bio Equivalence Centre S.C., Ethiopia
Stelis Biopharma Limited, India,(Formely known as Stelis Biopharma Private Limited, India) 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-
Stelis Pte. Ltd, Singapore Mar-22 21 Mar-22 21 Mar-22 21 Mar-22 21 22 21
Strides Consumer Private Limited, India Balance of (trade payables) net of
Stelis Biopharma LLC, US(till January 12, 2022) advance paid :
Strides Consumer LLC, USA 1 Atma Projects - - - - - - - - (16.98) (8.19)
Strides Global Consumer Healthcare Limited, UK 2 Arco Lab Private Limited (27.41) (94.18) - - - - - - - -

Director and Key Mr. Arun Kumar, Chairman and Non-Executive Director 3 Aurore Life Sciences Private - - - - - - - - (202.24) (161.70)
Management Personnel Dr. R Ananthanarayanan, Managing Director & CEO Limited
4 Aurore Pharmaceuticals Private - - - - - - - - (144.40) (23.75)
Mr. Badree Komandur, Executive Director- Finance & Group CFO Limited
Mr. Deepak Vaidya, Non-Executive Director 5 Beltapharm S.p.A. - - (0.13) (3.90) - - - - - -
Mr. Bharat D Shah, Independent Director 6 Chayadeep Properties Private - - - - - - - - (2.44) (3.86)
Mr. S.Sridhar, Independent Director Limited
Dr. Kausalya Santhanam, Independent Director 7 Shasun Enterprises LLP (formerly - - - - - - - - - (0.28)
Devendra Estates LLP)
Mr. Homi Rustam Khusrokhan, Independent Director
8 Fairmed Healthcare AG - - (4.09) (0.04) - - - - - -
Ms. Manjula Ramamurthy, Company Secretary
9 Fair-Med Healthcare Gmbh - - (61.94) (22.45) - - - - - -
Enterprises owned or Alivira Animal Health Limited, India
significantly influenced 10 Strides Consumer Private Limited - - - - (0.22) (1.20) - - - -
Atma Projects, India
by directors, key 11 Strides Pharma (Cyprus) Limited - (4.11) - - - - - - - -
management personnel Aurore Life Sciences Private Limited, India
12 Strides Pharma Inc. (395.30) (104.10) - - - - - - - -
and their relatives Aurore Pharmaceuticals Private Limited
13 Strides Pharma Global Pte (125.19) (77.59) - - - - - - - -
Chayadeep Properties Private Limited, India Limited
Karuna Business Solutions LLP 14 Solara Active Pharma Sciences - - - - - - - - (1,105.28) (1,593.58)
Naari Pharma Private Limited Limited

Shasun Enterprises LLP(formerly Known as Devendra Estates LLP) 15 Stelis Biopharma Limited - - - - (0.73) - - - - -

SeQuent Research Limited, India (upto September 8, 2020) 16 Strides Lifesciences Limited (0.22) - - - - - - - - -

Solara Active Pharma Sciences Limited, India 17 Trinity Pharma (Pty) Ltd - - (1.12) - - - - - - -
18 Universal Corporation Limited - - (12.16) (17.49) - - - - - -
Steriscience Specialties Private Limited, India
19 Vivimed Life Sciences Private (12.24) (39.76) - - - - - - - -
Tenshi Kaizen Private Limited, India
Limited
Tenshi Life Sciences Private Limited, India
20 Strides Pharma (UK) Limited, UK (65.48) (35.05) - - - - - - - -
Tenshi Pharmaceuticals Private Limited (formerly known as Sovizen Life Sciences Private Limited,
Balance of trade receivables
India and Steriscience Private Limted, India)
(net of advance received):
Velbiom Proboitics Private Limited, India (formerly Tenshi Life Care Private Limited, India)
1 Alivira Animal Health Limited - - - - - - - - - 1.18
2 Arrow Pharma Pte Limited - 4.39 - - - - - - - -
3 Arco Lab Private Limited 2.48 (6.24) - - - - - - - -
4 Beltapharm S.p.A. - - 1.11 1.13 - - - - - -
5 Fairmed Healthcare AG - - 487.67 - - - - - - -
6 Naari Pharma Private Limited - - - - - - - - 0.01 0.01
7 Sihuan Strides HK Limited - - - - 37.03 35.69 - - - -
8 Strides Pharma (UK) Limited, UK 1,974.16 589.01 - - - - - - - -
9 Strides Pharma Canada Inc., 1.79 21.63 - - - - - - - -
10 Strides Netherlands B.V 152.11 44.01 - - - - - - - -
11 Strides Shasun Latina SA De CV - - 2.69 2.59 - - - - - -
12 Strides South Africa Pty Ltd - - 89.47 30.23 - - - - - -
13 Solara Active Pharma Sciences - - - - - - - - 8.21 11.24
Limited

284 | Annual Report 2021-22 | 285

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

` In Million ` In Million
Enterprises owned Enterprises owned
or significantly or significantly
Wholly Owned Other Associates / Directors /KMP/ Wholly Owned Other Associates / Directors /KMP/
influenced by influenced by
Subsidiaries Subsidiaries Joint venture Relatives of KMP Subsidiaries Subsidiaries Joint venture Relatives of KMP
directors or KMP or directors or KMP or
Particulars their relatives Particulars their relatives

As at As at As at As at As at As at As at As at As at As at 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- 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 Mar-22 21 Mar-22 21 Mar-22 21 Mar-22 21 22 21
Balance of trade receivables 11 Velbiom Proboitics Private - - - - - - - - 5.86 5.86
(net of advance received): Limited
1 Strides Pharma Global Pte 8,844.29 4,651.60 - - - - - - - - 12 Strides Pharma (UK) Limited, UK 1.84 (3.19) - - - - - - - -
Limited 13 Strides Pharma Inc. (7.30) - - - - - - - - -
2 Strides Nordic Aps 25.52 - - - - - - - - - 14 Universal Corporation Limited - - 25.67 31.65 - - - - - -
3 Stelis Biopharma Limited - - - - 7.61 0.02 - - - - 15 Vivimed Life Sciences Private 104.08 7.68 - - - - - - - -
4 Tenshi Kaizen Private Limited - - - - - - - - 3.78 - Limited
5 Tenshi Life Sciences Private - - - - - - - - 0.06 5.81 18 Mr. Arun Kumar - - - - - - (0.20) (1.00) - -
Limited 17 Dr. R Ananthanarayanan - - - - - - 111.90 (18.00) - -
6 Trinity Pharma (Pty) Ltd - - 43.95 - - - - - - - 16 Mr. Badree Komandur - - - - - - - (3.75) - -
7 Strides Consumer Private Limited - - - - 12.68 11.38 - - - - 19 Mr. Deepak Vaidya - - - - - - (0.10) (1.19) - -
8 Strides Global Consumer - - - - 0.04 1.57 - - - - 20 Dr. Kausalya Santhanam - - - - - - (0.10) (1.19) - -
Healthcare Limited
21 Mr. S.Sridhar - - - - - - (0.10) (1.19) - -
9 Strides Consumer LLC - - - - 0.04 9.27 - - - -
22 Mr. Homi Rustam Khusrokhan - - - - - - (0.10) (1.19) - -
10 Strides Pharma Inc. 0.38 - - - - - - - - -
23 Mr. Bharat D Shah - - - - - - (0.10) (1.19) - -
11 Universal Corporation Limited - - 39.72 5.28 - - - - - -
12 Vivimed Life Sciences Private 34.61 297.54 - - - - - - - - Related party transactions
Limited
13 Strides Pharma (Cyprus) Limited 27.83 (91.64) - - - - - - - - ` In Million
14 Fairmed Healthcare AG - - - - - 311.22 - - - - Enterprises
owned or
Dividend Receivable
Wholly Owned Other Associates / Directors /KMP/ significantly
1 Strides Pharma Asia Pte Limited - 124.63 - - - - - - - - Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their
Loan Receivable Nature of Transactions relatives
1 Strides Consumer Private Limited - - - - 30.00 30.00 - - - -
Year Year Year Year Year Year Year Yea r Year
2 Vivimed Life Sciences Private 1,216.09 822.21 - - - - - - - - Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended
Limited Ended
31-Mar- 31- 31- 31- 31- 31- 31- 31- 31-
31Mar21
Balance of Deposit paid 22 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21
1 Atma Projects - - - - - - - - 69.96 69.96 Sales of materials/services
2 Chayadeep Properties Private - - - - - - - - 21.88 33.23 1 Steriscience Specialities Private - - - - - - - - 0.08 -
Limited Ltd
Balance of deposits received 2 Stelis Biopharma Limited - - - - 0.01 - - - - -
1 Solara Active Pharma Sciences - - - - - - - - (7.20) (7.20) 3 Strides Pharma (UK) Limited, UK 2,389.40 1,574.92 - - - - - - - -
Limited 4 Strides Pharma (Cyprus) Limited 479.78 242.67 - - - - - - - -
Other financial assets (liabilities) 5 Strides Pharma Global Pte 11,168.70 9,925.33 - - - - - - - -
and other assets (liabilities) Limited
1 Arrow Pharma (Private) Limited, - 0.09 - - - - - - - - 6 Strides Pharma Inc. 0.36 7.28 - - - - - - - -
Sri Lanka
7 Strides Pharma Canada Inc., 1.76 20.53 - - - - - - - -
2 Beltapharm S.p.A. - - 1.90 0.31 - - - - - -
8 Solara Active Pharma Sciences - - - - - - - - 0.01 -
3 Stelis Biopharma Limited - - - - 6.00 (7.31) - - - - Limited
4 Steriscience Specialities Private - - - - - - - - 0.00 0.00 9 Tenshi Kaizen Private Limited - - - - - - - - - 0.01
Limited
10 Tenshi Pharmaceuticals Private - - - - - - - - 0.05 0.03
5 Strides Consumer Private Limited - - - - 22.47 12.32 - - - - Limited
6 Strides Pharma Asia Pte Limited 14.91 7.68 - - - - - - - - 11 Trinity Pharma (Pty) Ltd - - 48.33 - - - - - - -
7 Strides Pharma (Cyprus) Limited 1.54 5.37 - - - - - - - - 12 Universal Corporation Limited - - 45.91 17.02 - - - - - -
8 Strides Pharma Canada Inc., 0.45 (66.58) - - - - - - - - 13 Fairmed Healthcare AG - - 270.49 379.51 - - - - - -
9 Strides CIS Limited (30.86) (29.79) - - - - - - - - 14 Juno OTC Inc - - - - 6.38 3.19 - - - -
10 Strides Pharma Global Pte 251.89 50.07 - - - - - - - -
Limited

286 | Annual Report 2021-22 | 287

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

` In Million ` In Million
Enterprises Enterprises
owned or owned or
Wholly Owned Other Associates / Directors /KMP/ significantly Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their KMP or their
Nature of Transactions relatives Nature of Transactions relatives

Year Year Year Year Year Year Year Yea r Year Year Year Year Year Year Year Year Yea r Year
Year Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
Ended Ended
31-Mar- 31- 31- 31- 31- 31- 31- 31- 31- 31-Mar- 31- 31- 31- 31- 31- 31- 31- 31-
31Mar21 31Mar21
22 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 22 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21
15 Strides Consumer LLC - - - - - 7.76 - - - - Support service income
16 SVADS holdings SA - 47.32 - - - - - - - - 1 Stelis Biopharma Limited - - - - 2.10 - - - - -
17 Strides Netherlands B.V 138.59 45.10 - - - - - - - - 2 Strides Consumer Private Limited - - - - 1.20 1.20 - - - -
18 Strides Nordic Aps 25.72 - - - - - - - - - 3 Strides Global Consumer - - - - 0.45 0.45 - - - -
19 Strides South Africa Pty Ltd - - 56.84 30.63 - - - - - - Healthcare Limited

20 Sihuan Strides HK Limited - - - - - 35.81 - - - - 4 Strides Consumer LLC - - - - 0.45 0.45 - - - -

21 Steriscience Specialties Private - - - - - - - - - 0.02 5 Strides Pharma (Cyprus) Limited 26.80 23.67 - - - - - - - -
Ltd 5 Strides Pharma Global Pte 15.49 11.80 - - - - - - - -
22 Strides Shasun Latina SA De CV - - - 2.60 - - - - - - Limited

23 Vivimed Life Sciences Private 19.93 456.34 - - - - - - - - 6 Universal Corporation Limited - - 15.00 - - - - - - -
Limited Rental income from operating leases
24 Strides Consumer Private Limited - - - - 8.12 10.46 - - - - 1 Arco Lab Private Limited 1.66 38.26 - - - - - - - -
Sale of intellectual property rights 2 Strides Consumer Private Limited - - - - 0.89 0.96 - - - -
1 Strides Pharma Global Pte 498.52 363.47 - - - - - - - - 3 Solara Active Pharma Sciences - - - - - - - - 15.18 15.24
Limited Limited
Purchase / (returns) of intellectual 4 Vivimed Life Sciences Private 0.06 0.03 - - - - - - - -
property rights Limited
1 Strides Pharma Canada Inc., (66.55) 66.55 - - - - - - - - Dividend income
2 Stelis Biopharma Limited - - - - (7.31) 7.31 - - - - 1 Strides Pharma Asia Pte Limited - 353.70 - - - - - - - -
Sale of investment Purchase of materials/services
1 Strides Global Consumer - - - - - 162.80 - - - - 1 Aurore Life Sciences Private - - - - - - - - 244.98 295.79
Healthcare Limited Limited
Sale of property, plant and 2 Aurore Pharmaceuticals Private - - - - - - - - 336.29 28.16
equipment Limited
1 Karuna Business Solutions LLP - - - - - - - - 630.00 - 3 Beltapharm S.p.A. - - - 1.62 - - - - - -
2 Stelis Biopharma Limited - - - - - 2.93 - - - - 4 SeQuent Research Limited - - - - - - - - - 0.08
3 Strides Pharma Global Pte - 4.77 - - - - - - - - 5 Strides Pharma Global Pte 55.96 77.73 - - - - - - - -
Limited Limited
4 Strides Pharma Inc. - 51.39 - - - - - - - - 6 Strides Pharma Inc. 183.95 - - - - - - - - -
5 Tenshi Kaizen Private Limited - - - - - - - - 3.20 - 7 Stelis Biopharma Limited - - - - 46.03 - - - - -
6 Vivimed Life Sciences Private 0.05 - - - - - - - - - 8 Solara Active Pharma Sciences - - - - - - - - 1,054.95 2,252.71
Limited Limited
7 Universal Corporation Limited - - 0.30 - - - - - - - 9 Universal Corporation Limited - - - 10.26 - - - - - -
Interest income 10 Vivimed Life Sciences Private 25.70 102.60 - - - - - - - -
1 Strides Consumer Private Limited - - - - 3.00 3.00 - - - - Limited

2 Vivimed Life Sciences Private 103.02 93.47 - - - - - - - - 11 Tenshi Kaizen Private Limited - - - - - - - - - 0.12
Limited Support service expenses
Guarantee commission income 1 Arco Lab Private Limited 526.59 569.43 - - - - - - - -
1 Stelis Biopharma Limited - - - - 52.16 41.32 - - - - 2 Strides Consumer Private Limited - - - - 1.19 1.08 - - - -
2 Strides Pharma Asia Pte Limited - 124.50 - - - - - - - - Purchase of assets
3 Strides Pharma Global Pte 65.98 63.83 - - - - - - - - 1 Strides Pharma Global Pte 2.21 21.01 - - - - - - - -
Limited Limited
4 Strides Pharma Inc. 13.12 14.04 - - - - - - - - 2 Vivimed Life Sciences Private 0.18 3.08 - - - - - - - -
5 Strides Pharma (UK) Limited, UK 4.16 10.03 - - - - - - - - Limited
6 Vivimed Life Sciences Private 2.47 2.70 - - - - - - - -
Limited

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

` In Million ` In Million
Enterprises Enterprises
owned or owned or
Wholly Owned Other Associates / Directors /KMP/ significantly Wholly Owned Other Associates / Directors /KMP/ significantly
Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by Subsidiaries Subsidiaries Joint venture Relatives of KMP influenced by
KMP or their KMP or their
Nature of Transactions relatives Nature of Transactions relatives

Year Year Year Year Year Year Year Yea r Year Year Year Year Year Year Year Year Yea r Year
Year Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
Ended Ended
31-Mar- 31- 31- 31- 31- 31- 31- 31- 31- 31-Mar- 31- 31- 31- 31- 31- 31- 31- 31-
31Mar21 31Mar21
22 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 22 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21
Reimbursement of expenses incurred by Lease Payments
1 Aurore Pharmaceuticals Private - - - - - - - - 0.03 - 1 Atma Projects - - - - - - - - 90.32 85.21
Limited 2 Chayadeep Properties Private - - - - - - - - 37.91 40.65
2 Aurore Life Sciences Private - - - - - - - - 0.04 0.09 Limited
Limited 3 Shasun Enterprises LLP(formerly - - - - - - - - 2.27 3.32
3 Beltapharm S.p.A. - - 0.96 - - - - - - - Devendra Estates LLP)

4 Chayadeep Properties Private - - - - - - - - 1.22 - 4 Strides Pharma Global Pte 15.50 11.83 - - - - - - - -
Limited Limited
5 Fairmed Healthcare AG - - 4.05 1.15 - - - - - - Loans / advances given / repaid by
Company
6 Fairmed Healthcare Gmbh - - 42.19 22.45 - - - - - -
1 Vivimed Life Sciences Private 463.88 451.46 - - - - - - - -
7 Stelis Biopharma Limited - - - - 0.00 - - - - - Limited
8 Strides Consumer Private Limited - - - - 0.63 - - - - - Loans / advances taken by Company
9 Strides Lifesciences Limited 0.22 0.34 - - - - - - - - / repaid to Company
1 Vivimed Life Sciences Private 70.00 355.06 - - - - - - - -
10 Strides Netherlands B.V 2.89 - - - - - - - - -
Limited
11 Strides Pharma (UK) Limited, UK 29.25 38.68 - - - - - - - -
Investments during the year
12 Strides Pharma (Cyprus) Limited (0.76) 1.79 - - - - - - - - 1 Stelis Biopharma Limited - - - - - 2,369.95 - - - -
13 Strides Pharma Global Pte 22.02 0.19 - - - - - - - - 2 Arco Lab Private Limited 51.13 - - - - - - - - -
Limited
Donation Paid
14 Solara Active Pharma Sciences - - - - - - - - 98.13 167.12
1 Strides Foundation Trust - - - - - - - - 21.50 26.60
Limited
Short term employee benefits paid to
15 Strides Pharma Inc. 129.37 3.85 - - - - - - - -
(Refer note (i) below)
16 Trinity Pharma (Pty) Ltd - - 1.12 - - - - - - -
1 Mr. Arun Kumar - - - - - - - 6.27 - -
17 Vivimed Life Sciences Private (0.29) - - - - - - - - - 2 Dr. R Ananthanarayanan - - - - - - 88.85 177.32 - -
Limited
3 Mr. Badree Komandur - - - - - - 46.05 41.26 - -
18 Universal Corporation Limited - - 0.82 0.61 - - - - - -
4 Ms. Manjula Ramamurthy - - - - - - 7.63 4.72 - -
Reimbursement of expenses incurred
Employee stock option expenses
on behalf of
1 Mr. Badree Komandur - - - - - - 0.24 0.93 - -
1 Arco Lab Private Limited 16.41 32.90 - - - - - - - -
2 Ms. Manjula Ramamurthy - - - - - - 0.05 0.19 - -
2 Fairmed Healthcare AG - - 1.49 2.12 - - - - - -
Sitting fees paid
3 Solara Active Pharma Sciences - - - - - - - - 0.01 23.82
Limited 1 Dr. Kausalya Santhanam - - - - - - 1.30 1.70 - -
4 Stelis Biopharma Limited - - - - 3.96 2.42 - - - - 2 Mr. Arun Kumar - - - - - - 0.80 0.50 - -

5 Strides Consumer Private Limited - - - - 13.68 20.61 - - - - 3 Mr. Deepak Vaidya - - - - - - 1.30 1.70 - -
4 Mr. S.Sridhar - - - - - - 1.30 1.70 - -
6 Strides Pharma Canada Inc., 0.44 - - - - - - - - -
5 Mr. Homi Rustam Khusrokhan - - - - - - 1.30 1.70 - -
7 Strides Pharma Global Pte 188.14 252.40 - - - - - - - -
Limited 6 Mr. Bharat D Shah - - - - - - 1.20 1.70 - -
8 Strides Pharma (Cyprus) Limited 6.81 4.42 - - - - - - - - Remuneration to Non-executive
directors
9 Strides Pharma Asia Pte Limited 14.91 7.68 - - - - - - - -
1 Mr. Deepak Vaidya - - - - - - - 1.00 - -
10 Strides Pharma Inc. 6.11 17.82 - - - - - - - -
2 Mr. Arun Kumar - - - - - - - 1.00 - -
11 Strides Pharma (UK) Limited, UK 16.09 41.43 - - - - - - - -
3 Dr. Kausalya Santhanam - - - - - - - 1.00 - -
12 Steriscience Specialties Private - - - - - - - - 0.00 0.08
4 Mr. S.Sridhar - - - - - - - 1.00 - -
Ltd
5 Mr. Homi Rustam Khusrokhan - - - - - - - 1.00 - -
13 Tenshi Life Sciences Private - - - - - - - - - 13.41
Limited 6 Mr. Bharat D Shah - - - - - - - 1.00 - -
14 Universal Corporation Limited - - 5.38 10.63 - - - - - - Note
15 Vivimed Life Sciences Private 19.54 38.39 - - - - - - - - i. The compensation excludes gratuity and compensated absences which cannot be separately identified from
Limited the composite amount advised by the actuary.

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 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 45 Lease arrangements Fair value hierarchy

A. The Company as lessor: 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:
Leasing arrangement
The Company has entered into operating lease arrangements for lease of factory land and building for a term Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
ranging from 4 to 18 years with non-cancellable lease period of 4 to 8 years. Details relating to these assets and Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
minimum lease rentals receivable are as follows: either directly (i.e. as prices) or indirectly (i.e. derived from prices).
` In Million
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Particulars 31-Mar-22 31-Mar-21
Gross carrying amount of assets leased 134.05 960.24 Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a
Accumulated depreciation 5.89 281.89 recurring basis
Future minimum lease income: Some of the Company's financial assets and financial liabilities are measured at fair value at the end of each
Not later than one year 16.04 27.98 reporting period. The following table gives information about how the fair values of these financial assets and
Later than one year but not later than 5 years - 16.04 financial liabilities are determined (in particular, the valuation technique(s) and inputs used).
Later than 5 years - -
Total 16.04 44.02 ` In Million
Fair value as at Fair value
Note No. 46 Earnings per share Financial assets / financial liabilities
31-Mar-22 31-Mar-21 hierarchy
Valuation technique(s) and key input(s)

For the year For the year Financial assets:

Particulars
ended 31-Mar-22 ended 31-Mar-21 Foreign currency forward contracts 9.08 64.54 Level 2 The fair value of forward foreign contracts are
Profit attributable to the equity holders of the Company 1,801.88 782.40 designated in hedge accounting determined using spot and forward exchange
Weighted average number of equity shares used for computation of basic earnings per share 89,747,525 89,609,605 relationships (FVTOCI) rates at the balance sheet date.
Add : Effect of potentially dilutive equity shares - Employee Stock option 38,941 99,798 Financial liabilities:
Weighted average number of equity shares used for computation of diluted earnings per share 89,786,466 89,709,403 Foreign currency forward contracts 3.84 - Level 2 The fair value of forward foreign contracts are
designated in hedge accounting determined using forward exchange rates at
Earnings per share
relationships (FVTOCI) the balance sheet date.
Basic 20.08 8.73
Cash settled share based payments 33.00 52.80 Level 3 The fair value of cash settled share based
Diluted 20.07 8.72 (FVTPL) payments is determined using Black Scholes
model. Significant input is underlying value
Note No. 47 Financial instruments of the equity shares of the company.
47.1 Categories of financial instruments
47.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but
` In Million
fair value disclosures are required)
Particulars 31-Mar-22 31-Mar-21
Except as detailed in the following table, the Company considers that the carrying amounts of financial assets
Financial assets:
and financial liabilities recognised in the financial statements at amortized cost will reasonably approximate
Measured at amortised cost
their fair values.
(a) Cash and bank balances 156.84 733.19
(b) Loans receivable 1,476.03 1,102.46 ` In Million
(c) Trade receivables 12,963.19 8,216.65 31-Mar-22 31-Mar-21
Particulars
(d) Receivables from related parties 344.75 110.58 Carrying amount Fair value Carrying amount Fair value
(e) Dividend receivable from subsidiaries - 124.63 Financial assets
(f) Other financial assets at amortised cost 276.73 65.02
Loans 1,246.09 1,246.09 852.21 852.21
Measured at FVTOCI
(a) Fair value of derivatives designated in a cash flow hedge 9.08 64.54 Security deposit 186.92 203.19 214.59 214.98
Financial liabilities: Financial liabilities
Measured at FVTOCI Borrowings 12,446.32 12,464.95 8,789.38 8,817.90
(a) Derivative financial liabilities 3.84 - Lease liabilities 392.87 385.21 385.21
392.87
Measured at FVTPL
Security deposit 6.58 7.20 39.59 40.83
(a) Cash settled share based payments 33.00 52.80
Measured at amortised cost
(a) Borrowings 12,446.32 8,789.38
47.3
Financial risk management
(b) Lease Liabilities 392.87 385.21 The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
(c) Security deposit 6.58 39.59 Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
(d) Trade payables 6,437.97 7,352.01 adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk.
(e) Unclaimed dividends 10.91 21.68 The Company uses derivatives financial instruments to mitigate foreign exchange related risk exposures. All
(f) Payable to subsidiaries 30.86 32.81 derivative activities for risk management purposes are carried out by specialist teams that have the appropriate
(g) Other financial liabilities 247.83 283.14 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:
292 | Annual Report 2021-22 | 293
 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Foreign currency risk management 47.3.2 Foreign currency sensitivity analysis

The Company is exposed to foreign exchange risk due to: Financial instruments affected by changes in foreign exchange rates include loans in foreign currencies and
- debt availed in foreign currency receivables/payables from/to subsidiaries and joint ventures. The Company considers US Dollar, Australian
- net investments in subsidiaries and joint ventures that are in foreign currencies 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),
- exposure arising from transactions relating to purchases, revenues, expenses, etc., to be settled (within and
Euro (EUR), Canadian Dollar (CAD) and the Australian Dollar (AUD). The impact on account of 5% appreciation /
outside the group) in currencies other than the functional currency (i.e Indian rupees)
depreciation in the exchange rate of the above foreign currencies against ` is given below:
Exchange rate exposures are managed within approved policy parameters by utilising forward foreign exchange
` In Million
contracts.
Increase / (decrease) in equity Increase / (decrease) in profit
Particulars
47.3.1 Forward foreign exchange contracts 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
It is the policy of the Company to enter into forward foreign exchange contracts to cover the following: Appreciation in the USD (34.22) (39.30) (34.22) (41.04)
a. repayments of specific foreign currency borrowings. Depreciation in the USD 34.22 39.30 34.22 41.04
b. forecast sales transactions Appreciation in the EUR 27.83 9.85 27.83 9.85
 he following table details the forward foreign currency contracts outstanding at the end of the reporting
T Depreciation in the EUR (27.83) (9.85) (27.83) (9.85)
period: Appreciation in the AUD 93.00 34.61 92.83 34.61
Contracts designated in a cash flow hedge Depreciation in the AUD (93.00) (34.61) (92.83) (34.61)
Appreciation in the CAD 5.53 2.74 5.53 2.74
Fair value Depreciation in the CAD (5.53) (2.74) (5.53) (2.74)
Average Foreign Nominal
Underlying assets/
Outstanding contracts exchange rate currency amounts Appreciation in the GBP 63.68 21.24 63.68 20.88
Exposure (liabilities)
(in `) ( In Million) (` In Million)
(` In Million) Depreciation in the GBP (63.68) (21.24) (63.68) (20.88)
As at March 31, 2022
The impact on profit has been arrived at by applying the effects of appreciation / deprecation effects of currency
Sell AUD Forecast sales
on the net position (Assets in foreign currency - Liabilities in foreign currency) in the respective currencies.
Less than 3 months 57.64 6.00 345.84 348.86
3 to 6 months 57.13 6.00 342.78 338.94 For the purposes of the above table, it is assumed that the carrying value of the financial assets and liabilities
6 to 12 months 59.23 12.00 704.40 710.46 as at the end of the respective financial years remains constant thereafter. The exchange rate considered for the
Total 1,393.02 1,398.26 sensitivity analysis is the exchange rate prevalent as at each year end.
As at March 31, 2021
Sell USD Forecast sales 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.
Less than 3 months 77.01 15.00 1,155.28 1,208.78
Sell GBP Forecast sales 47.4 Interest rate risk management
6 to 12 months 106.67 6.00 640.04 651.08
Interest rate risk arises from borrowings. Debt issued at variable rates exposes the Company to cash flow risk.
Total 1,795.32 1,859.86
Debt issued at fixed rate exposes the Company to fair value risk.
The line-items in the balance sheet that include the above hedging instruments are - Other financial assets
47.4.1 Interest rate sensitivity analysis
(Refer note 10(ii)) & Other current financial liabilities (Refer note 21(ii))
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
The details of unhedged foreign currency exposure as reported to key management personnel of the Company
be ` 124.65 Million (March 31, 2021: 88.18 Million) assuming the loans at each year end remain constant during
are as follows:
the respective years. This computation does not involve a revaluation of the fair value of loans as a consequence
Amounts In Million of changes in interest rates. The computation also assumes that an increase in interest rates on floating rate
Receivable/(payable) / cash and bank/ (borrowings) As at 31-Mar-22 As at 31-Mar-21 liabilities will not necessarily involve an increase in interest rates on floating rate financial assets.
in foreign in foreign
Exposure to the currency in ` in `
currency currency 47.5 Credit risk management
AUD 50.27 2,853.78 19.15 1,063.91
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
GBP 19.64 1,957.83 6.37 641.86 loss to the Company. Credit risk to the company primarily arises from trade receivables. Credit risk also arises
EUR 10.19 855.58 3.53 302.72 from cash and cash equivalents, financial instruments and deposits with banks and financial institutions and
CAD 2.80 169.99 1.45 84.22 other financial assets.
SGD 0.05 2.95 0.00 0.17
AED - 0.10 - - 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
CNY - 0.06 - -
has an internal mechanism of determining the credit rating of the customers and setting credit limits. Credit
LKR 0.02 - 0.04 0.01
exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee
USD (13.79) (1,052.00) (17.24) (1,261.55) annually. Ongoing credit evaluation is performed on the financial condition of accounts receivable.
ZAR (0.08) (0.43) - -
CHF - (0.05) (0.00) (0.09)

294 | Annual Report 2021-22 | 295

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 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 47.6.1 Liquidity analysis for non-derivative liabilities
countries across the globe. 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
Credit risk on cash and cash equivalent and derivatives is limited as the Company generally transacts with banks of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes
and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. 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
In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by on the earliest date on which the Company may be required to pay.
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision ` In Million
matrix takes into account historical credit loss experience and is adjusted for forward looking information. The
Due within (years) Carrying
expected credit loss allowance is based on the ageing of the receivables that are due and rates as given in the Financial liabilities Total
1 1 to 2 2 to 3 3 to 4 4 to 5 beyond 5 amount
provision matrix. The Provision matrix at the end of reporting period as follows:
Bank and other borrowings
` In Million
- As on March 31, 2022 11,199.37 479.38 478.96 307.24 - - 12,464.95 12,446.32
Gross carrying Allowance for
Ageing of Receivable amount as at credit loss as at - As on March 31, 2021 7,313.99 439.31 405.74 405.31 253.55 - 8,817.90 8,789.38
31-Mar-22 31-Mar-22 Interest payable on borrowings
Not Due 5,741.66 36.86 - As on March 31, 2022 10.04 - - - - - 10.04 10.04
Less than 180 Days 4,467.18 24.54 - As on March 31, 2021 5.20 - - - - - 5.20 5.20
180-360 Days 2,614.59 20.92 Lease liabilities
360-540 Days 244.07 51.83 - As on March 31, 2022 128.29 59.61 64.23 67.36 49.48 207.05 576.02 392.87
540-720 Days 30.06 3.23 - As on March 31, 2021 153.97 137.67 69.67 57.75 24.44 6.11 449.61 385.21
Over 720 Days 46.55 43.54 Trade and other payable not in
Total 13,144.11 180.92 borrowings
- As on March 31, 2022 6,750.53 - - - - 7.20 6,757.73 6,757.11
- As on March 31, 2021 7,952.28 - - - - 40.83 7,993.11 7,991.87
` In Million

Gross carrying Allowance for

Ageing of Receivable amount as at credit loss as at
47.6.2 Liquidity analysis for derivative financial instruments-
31-Mar-21 31-Mar-21
The following table details the Company’s liquidity analysis for its derivative financial instruments. The table has
Not Due 5,993.41 28.05 been drawn up based on the undiscounted contractual net cash inflows and outflows on derivative instruments
Less than 180 Days 1,997.90 38.68 that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require
180-360 Days 132.71 1.45 gross settlement. Outflows are represented in brackets in table below:
360-540 Days 67.95 26.98 ` In Million
540-720 Days 65.46 59.82 less than 3 3 to 6 “6 months
Particulars Total 1-5 years 5+ years
Over 720 Days 207.64 93.44 months months to 1 year”

Total 8,465.07 248.42 March 31, 2022

Net settled:
Movement in expected credit loss allowance - foreign exchange forward contracts 5.24 3.02 (3.84) 6.06 - -
` In Million Total 5.24 3.02 (3.84) 6.06 - -
Particulars 31-Mar-22 31-Mar-21 March 31, 2021
Balance at the beginning of the year 248.42 170.65 Net settled:
Written off during the year (105.85) (115.00) - foreign exchange forward contracts 64.54 53.50 - 11.04 - -
Movement in expected credit loss allowance on trade receivables calculated at lifetime 38.35 192.77 Total 64.54 53.50 - 11.04 - -
expected credit losses
Total 180.92 248.42 47.7 COVID-19
In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The actual impact of this
47.6 Liquidity risk management global health pandemic may be different from that which has been estimated, as the COVID -19 situation
Ultimate responsibility for liquidity risk management rests with the Board of directors, which has established an evolves in India and globally. The Company has adopted measures to curb the spread of infection in order to
appropriate liquidity risk management framework for the management of the Company’s short-term, medium- protect the health of its employees and ensure business continuity with minimal disruption. The Company
term and long-term funding and liquidity management requirements. The Company manages liquidity risk by has considered available internal and external information while finalizing various estimates in relation to
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring its financial statements upto the date of approval of the financial statements by the Board of Directors. The
forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial assets Company will continue to closely monitor any material changes to future economic conditions. However, the
and liabilities. A portion of the company’s surplus cash is retained as investments in Liquid Mutual Funds to pandemic did not have any material impact on the financial statements for the year ended March 31, 2022.
fund short term requirements.

296 | Annual Report 2021-22 | 297

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 48 Capital management ` In Million

The Company manages its capital to ensure that entities in the Group will be able to continue as going concerns Whether title deed
Description Gross holder is a prpmoter, Property
while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Particulars of item of carrying
Title deeds held in
director of relative/ held since
Reason for not being held in the
capital structure of the Company consists of net debt (borrowings as detailed in notes 20 offset by cash and the name of: name of the company
property value director or employee when date
bank balances) and total equity. of promoter/director
Property, Freehold 11.76 Shasun No 01-04-2016
The Company reviews the capital structure on a quarterly basis to ensure that it is in compliance with the plant and Land Chemicals and
These properties are in the name
required covenants. The Company has a target gearing ratio of 1:1 determined as the proportion of net debt to equipment Drugs Ltd.
of the erstwhile Companies which
total equity. The gearing ratio at March 31, 2022 is 0.36. Property, Freehold 48.69 Shasun No 19-11-2015 were merged with the Company
plant and Land Pharmaceuticals under section 391 to 394 of the
The Company is not subject to any externally imposed capital requirements. equipment Ltd. Companies Act 1956 in terms of
Investment Freehold 22.20 Shasun No 01-04-2016 the approval of the Honorable High
property Land Chemicals and Courts of judicature. The Company
48.1 Gearing ratio
Drugs Ltd. is in the process of transferring the
The gearing ratio at end of the reporting period was as follows. title deeds of such properties in its
Investment Buidling 183.83 Shasun No 01-04-2016
name.
` In Million property Chemicals and
Drugs Ltd.
Particulars 31-Mar-22 31-Mar-21
Debt (i) 12,446.32 8,789.38 49.2. Operating Ratios
Less:
` In Million
Cash and bank balances (156.84) (733.19)
% of
Net Debt (A) 12,289.48 8,056.19 Ratios Numerator Denominator 31-Mar-22 31-Mar-21
variance
Total Equity (B) 34,066.83 32,480.58
Current ratio (in times) Total current assets Total current liabilities - 1.10 1.12 -2%
Net debt to equity ratio (A/B) 0.36 0.25 Current Maturities of long
term borrowings
(i) Debt is defined as Non current borrowings and current borrowings. Debt-Equity ratio Debt = Non current Total equity = Shareholder's 0.37 0.27 35%
(in times)1 borrowings + Current Equity
borrowings
Note No. 49 Additional Regulatory Information
Debt service coverage Earning for Debt Service Debt service = Interest and 2.88 2.82 2%
49.1. Title deeds of Immovable Properties not held in the name of the company ratio (in times) = Net Profit after taxes lease payments +
+ Depreciation + Finance Principal repayments
` In Million cost
Whether title deed Return on equity Profit for the year less Average total equity 5% 2% 122%
Description Gross holder is a prpmoter, Property ratio (in %)2 Preference dividend
Title deeds held in Reason for not being held in the (if any)
Particulars of item of carrying director of relative/ held since
the name of: name of the company
property value director or employee when date Inventory turnover ratio Cost of Goods Sold Average inventory 1.83 1.72 7%
of promoter/director
Trade receivables turnover Revenue from operations Average trade receivables 1.87 2.51 -26%
Property, Building 3.55 Arun Kumar Yes 09-05-1995 The apartment is inside a housing ratio (in times)3
plant and cooperative society. The Company
Trade payables turnover Purchases + Other Average trade payable 2.10 2.67 -21%
equipment has made an application for ratio (in times) expenses
transferring it to its name which
Net capital turnover ratio Revenue from operations Average working capital 10.68 9.72 10%
is pending with the society.
(in times) (i.e. Total current assets
Property, Buidling 428.42 Shasun No 19-11-2015 less Total current liabilities)
plant and Pharmaceuticals These properties are in the name (excluding current maturities
equipment Ltd. of the erstwhile Companies which of long term borrowing)
were merged with the Company
Net profit ratio (in %)4 Profit for the year Total Income 9% 4% 113%
under section 391 to 394 of the
Companies Act 1956 in terms of Return on capital Profit before tax and Capital employed = Net worth 2% 4% -52%
Property, Freehold 0.81 Grandix No 31-12-2009 employed (in %)5 finance costs + Total Debt -
plant and Land Pharmaceauticals the approval of the Honorable High
Deferred tax assets
equipment Limited Courts of judicature. The Company
is in the process of transferring the Return on Realised and Average investment 0.39% 0.02% 1522%
title deeds of such properties in its investment unrealised gain during the year
name. (in %) 6

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.

298 | Annual Report 2021-22 | 299

 Strides Pharma Science Limited

Financial Statements
Notes Notes
forming part of the standalone financial statements for the year ended March 31, 2022 forming part of the standalone financial statements for the year ended March 31, 2022

Note No. 50 Other Statutory Information 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
(a) The Company does not have any Benami property, where any proceeding has been initiated or pending
Lifesciences Private Limited with an appointed date of April 1, 2022. The Scheme of Amalgamation is yet to be
against the Group for holding any Benami property.
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
(b) The Company does not have any transactions with companies struck off.
at that time and the current Scheme supersedes the original Scheme.
(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
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 The accompanying notes are an integral part of the standalone financial statements
As per our report of even date attached
(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 for B S R & Co. LLP for and on behalf of Board of Directors of Strides Pharma Science Limited
Chartered Accountants
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries Firm Registration Number:
101248W/ W-100022

(f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Sampad Guha Thakurta Mr. Arun Kumar Badree Komandur
Party) with the understanding (whether recorded in writing or otherwise) that the Group shall: Partner Executive Chairperson and Managing Director Executive Director- Finance & Group CFO
Membership Number: 060573 DIN : 00084845 DIN: 07803242
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
Manjula R.
or on behalf of the Funding Party (Ultimate Beneficiaries) or
Bengaluru, May 24, 2022 Company Secretary
Membership Number: A30515
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(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

 he Company has established a comprehensive system of maintenance of information and documents as

T
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.

300 | Annual Report 2021-22 | 301

 Strides Pharma Science Limited

Financial Statements
Equity History of the Company

Equity Share Equity Share

Cumulative Equity Share Cumulative Equity Share
Number of Face Value per Capital Number of Face Value per Capital
Date Particulars Number of Capital issued Date Particulars Number of Capital issued
Shares Issued share (J) (Cumulative) Shares Issued share (J) (Cumulative)
Shares Issued (J) Shares Issued (J)
(J) (J)
28-Jun-90 Subscribers to Memorandum of 50 50 100 5,000 5,000 05-Jul-07 Preferential Issue on conversion 50,000 3,50,04,289 10 5,00,000 35,00,42,890
Association of warrants
31-Jan-91 Preferential Issue 4,010 4,060 100 4,01,000 4,06,000 08-Mar-08 Preferential Issue on conversion 40,00,000 3,90,04,289 10 4,00,00,000 39,00,42,890
29-Mar-91 Preferential Issue 1,940 6,000 100 1,94,000 6,00,000 of Convertible Debentures
31-Mar-92 Preferential Issue 4,000 10,000 100 4,00,000 10,00,000 17-Jun-08 Preferential Issue on conversion 10,45,725 4,00,50,014 10 1,04,57,250 40,05,00,140
28-Jan-93 Preferential Issue 15,000 25,000 100 15,00,000 25,00,000 of Convertible Debentures
11-Mar-94 Preferential Issue 20 25,020 100 2,000 25,02,000 13 Aug 2009 to Allotment pursuant to exercise of 1,65,600 4,02,15,614 10 16,56,000 40,21,56,140
03 Dec 2009 stock options
11-Apr-94 Reclassification of nominal value - 2,50,200 10 - 25,02,000
of shares from `100 each to `10 19-Jan-10 Allotment to erstwhile 12,822 4,02,28,436 10 1,28,220 40,22,84,360
each shareholders of Grandix
Pharmaceuticals Limited
30-Apr-94 Issue of Bonus Shares 12,51,000 15,01,200 10 1,25,10,000 1,50,12,000 consequent to its amalgamation
01-Sep-94 Preferential Issue 11,60,300 26,61,500 10 1,16,03,000 2,66,15,000 with the Company.
01-Sep-94 Allotment pursuant to exercise of 22,950 26,84,450 10 2,29,500 2,68,44,500 (100 shares of Strides for every
stock options 213 shares of Grandix Pharma)
22-Jan-97 Preferential Issue 9,18,980 36,03,430 10 91,89,800 3,60,34,300 19-Jan-10 Allotment to erstwhile 702 4,02,29,138 10 7,020 40,22,91,380
06-Dec-97 Preferential Issue 4,00,000 40,03,430 10 40,00,000 4,00,34,300 shareholders of Grandix
Laboratories Limited consequent
13-May-99 Preferential Issue on conversion 43,63,636 83,67,066 10 4,36,36,360 8,36,70,660
to its amalgamation with the
of Fully Convertible Debentures
Company.
13-May-99 Preferential Issue 2,21,000 85,88,066 10 22,10,000 8,58,80,660 (100 shares of Strides for every 23
13-Jul-99 Preferential Issue 5,16,500 91,04,566 10 51,65,000 9,10,45,660 shares of Grandix Laboratories
24-Aug-99 Allotment to erstwhile 12,00,000 1,03,04,566 10 1,20,00,000 10,30,45,660 Limited)
shareholders of Remed 24-Feb-10 Preferential Issue on conversion 25,60,000 4,27,89,138 10 2,56,00,000 42,78,91,380
Laboratories (India) Limited of warrants
consequent to its amalgamation 15-Mar-10 Preferential Issue on conversion 4,20,000 4,32,09,138 10 42,00,000 43,20,91,380
with the Company of warrants
(3 shares of Strides for 2 shares of
22 April 10 to Allotment pursuant to exercise of 4,92,000 4,37,01,138 10 49,20,000 43,70,11,380
Remed Laboratories)
24 Aug 10 stock options
24-Aug-99 Preferential Issue 17,02,000 1,20,06,566 10 1,70,20,000 12,00,65,660
26-Aug-10 Preferential Issue on conversion 32,20,000 4,69,21,138 10 3,22,00,000 46,92,11,380
24-Aug-99 Allotment to erstwhile 50,000 1,20,56,566 10 5,00,000 12,05,65,660 of warrants
shareholders of Global Remedies
01-Oct-10 Allotment under QIP 2010 1,07,42,533 5,76,63,671 10 10,74,25,330 57,66,36,710
Private Limited consequent to its
acquisition by the Company 4 Oct 10 to Allotment pursuant to exercise of 81,000 5,77,44,671 10 8,10,000 57,74,46,710
(1 share of Strides for every 4 16 Nov 10 stock options
shares of Global Remedies) 24 Feb 11 to Allotment pursuant to exercise of 6,35,500 5,83,80,171 10 63,55,000 58,38,01,710
22-Sep-99 Preferential Issue 8,50,000 1,29,06,566 10 85,00,000 12,90,65,660 15 Oct 11 stock options
07-Dec-99 Allotment to erstwhile 7,12,500 1,36,19,066 10 71,25,000 13,61,90,660 4 Feb 12 to Allotment pursuant to exercise of 4,23,550 5,88,03,721 10 42,35,500 58,80,37,210
shareholders of Plama 19 Oct 12 stock options
Laboratories Limited consequent 12 Feb 13 to Allotment pursuant to exercise of 7,61,900 5,95,65,621 10 76,19,000 59,56,56,210
to its amalgamation with the 18 Dec 13 stock options
Company 24 Feb 15 to Allotment pursuant to exercise of 60,000 5,96,25,621 10 6,00,000 59,62,56,210
(1 share of Strides for every 8 22 May 15 stock options
shares of Plama Laboratories) 20-Nov-15 Upon Amalgamation of Shasun 2,10,17,329 8,06,42,950 10 21,01,73,290 80,64,29,500
27-Jun-01 Preferential Issue on conversion 31,44,445 1,67,63,511 10 3,14,44,450 16,76,35,110 Pharmaceuticals with Strides
of Cumulative Convertible (5 shares of Strides for every 16
Preference Shares shares of Shasun)
24-Jan-02 Allotment to erstwhile 2,10,955 1,69,74,466 10 21,09,550 16,97,44,660 23-Dec-15 Allotment under QIP 2015 86,28,028 8,92,70,978 10 8,62,80,280 89,27,09,780
shareholders of Bombay Drugs & 07-Mar-16 Allotment pursuant to exercise of 75,000 8,93,45,978 10 7,50,000 89,34,59,780
Pharma Limited consequent to its stock options
amalgamation with the Company.
(1 share of Strides for every 05-May-16 Allotment pursuant to exercise of 20,000 8,93,65,978 10 2,00,000 89,36,59,780
20 shares of Bombay Drugs & stock options
Pharma Limited) 28-Oct-16 Allotment pursuant to exercise of 2,717 8,93,68,695 10 27,170 89,36,86,950
14-Feb-02 Preferential Issue 1,37,14,286 3,06,88,752 10 13,71,42,860 30,68,87,520 stock options
11-Dec-03 Preferential Issue on conversion 30,68,875 3,37,57,627 10 3,06,88,750 33,75,76,270 11-Feb-17 Allotment pursuant to exercise of 4,311 8,93,73,006 10 43,110 89,37,30,060
of warrants stock options
02-Feb-05 Preferential Issue 11,96,662 3,49,54,289 10 1,19,66,620 34,95,42,890

302 | Annual Report 2021-22 | 303

Equity History of the Company

Equity Share
Cumulative Equity Share
Number of Face Value per Capital
Date Particulars Number of Capital issued
Shares Issued share (J) (Cumulative)
Shares Issued (J)
(J)
16-Mar-17 Allotment pursuant to exercise of 50,000 8,94,23,006 10 5,00,000 89,42,30,060
stock options
10-Jun-17 Allotment pursuant to exercise of 50,000 8,94,73,006 10 5,00,000 89,47,30,060
stock options
20-Jul-17 Allotment pursuant to exercise of 20,000 8,94,93,006 10 2,00,000 89,49,30,060
stock options
31-Oct-17 Allotment pursuant to exercise of 5,654 8,94,98,660 10 56,540 89,49,86,600
stock options
09-Feb-18 Allotment pursuant to exercise of 1,375 8,95,00,035 10 13,750 89,50,00,350
stock options
06-Apr-18 Allotment pursuant to exercise of 48,878 8,95,48,913 10 4,88,780 89,54,89,130
stock options
27-Dec-18 Allotment pursuant to exercise of 563 8,95,49,476 10 5,630 89,54,94,760
stock options
25-Oct-19 Allotment pursuant to exercise of 3,350 8,95,52,826 10 33,500 89,55,28,260
stock options
30-Jan-20 Allotment pursuant to exercise of 12,638 8,95,65,464 10 1,26,380 89,56,54,640
stock options
20-May-20 Allotment pursuant to exercise of 2,200 8,95,67,664 10 22,000 89,56,76,640
stock options
05-Aug-20 Allotment pursuant to exercise of 25,600 8,95,93,264 10 2,56,000 89,59,32,640
stock options
31-Aug-20 Allotment pursuant to exercise of 32,400 8,96,25,664 10 3,24,000 89,62,56,640
stock options
29-Oct-20 Allotment pursuant to exercise of 9,750 8,96,35,414 10 97,500 89,63,54,140
stock options
04-Feb-21 Allotment pursuant to exercise of 10,400 8,96,45,814 10 1,04,000 89,64,58,140
stock options
12-Mar-21 Allotment pursuant to exercise of 15,150 8,96,60,964 10 1,51,500 89,66,09,640
stock options
31-Mar-21 Allotment pursuant to exercise of 20,000 8,96,80,964 10 2,00,000 89,68,09,640
stock options
27-May-21 Allotment pursuant to exercise of 12,450 8,96,93,414 10 1,24,500 89,69,34,140
stock options
30-Jun-21 Allotment pursuant to exercise of 23,750 8,97,17,164 10 2,37,500 89,71,71,640
stock options
06-Aug-21 Allotment pursuant to exercise of 5,550 8,97,22,714 10 55,500 89,72,27,140
stock options
06-Sep-21 Allotment pursuant to exercise of 54,700 8,97,77,414 10 5,47,000 89,77,74,140
stock options
01-Nov-21 Allotment pursuant to exercise of 5,300 8,97,82,714 10 53,000 89,78,27,140
stock options
28-Jan-22 Allotment pursuant to exercise of 7,500 8,97,90,214 10 75,000 89,79,02,140
stock options
18-Apr-22 Allotment pursuant to exercise of 13,500 8,98,03,714 10 1,35,000 89,80,37,140
stock options

304 |
Strides Pharma Science Limited
CIN: L24230MH1990PLC057062

REGISTERED OFFICE CORPORATE OFFICE

201, Devavrata, Bannerghatta Road,
Sector 17, Vashi, Bengaluru - 560 076, India
Navi Mumbai - 400 703, India Tel.: +91 80 6784 0000/ 6784 0290
Tel.: +91 22 2789 2924/2789 3199
Email: corpcomm@strides.com
Website: www.strides.com
CIN: L24230MH1990PLC057062