ZYDUS VTEC LIMITED

Balance Sheet as at March 31, 2022

Particulars Note INR-Thousand
No. As at March 31
2022 2021
ASSETS:
Non-Current Assets:
Property, Plant and Equipment 3[A] 3,276,202 428,993
Capital work-in-progress 3[C] 5,429 1,090,898
Other Intangible Assets 3[B] 2,802 -
Financial Assets:
Other Financial Assets 4 9,254 24,806
Other Non-Current Assets 5 19,434 221,509
Assets for Current tax [Net] 6 2,527 366
Total 3,315,648 1,766,572
Current Assets:
Inventories 7 651,182 -
Financial Assets:
Trade Receivables 8 685,082 -
Cash and Cash Equivalents 9[A] 29,177 12,112
Bank balance other than cash and cash equivalents 9[B] 16,265 -
Other Current Assets 10 599,304 202,164
1,981,010 214,276
Total 5,296,658 1,980,848
EQUITY AND LIABILITIES:
Equity:
Equity Share Capital 11 75,000 75,000
Other Equity 12 (30,760) (32,197)
44,240 42,803
Non-Current Liabilities:
Financial Liabilities:
Borrowings 13 4,307,143 -
Lease Liabilities 14 394,541 393,955
Other Financial Liabilities 15 60 -
Provisions 16 6,384 2,188
Deferred Tax Liabilities [Net] 17 8,554 -
4,716,682 396,143
Current Liabilities:
Financial Liabilities:
Borrowings 18 142,857 1,030,000
Lease Liabilities 14 44,872 44,318
Trade Payables: 19
Dues to Micro and Small Enterprises 4,950 -
Dues to other than Micro and Small Enterprises 211,916 411
Other Financial Liabilities 20 125,949 464,939
Other Current Liabilities 21 3,975 1,747
Provisions 22 1,217 487
535,736 1,541,902
Total 5,296,658 1,980,848
Significant Accounting Policies 2
Notes to the Financial Statements 1 to 40

As per our report of even date For and on behalf of the Board
For Mukesh M. Shah & Co.,
Chartered Accountants
Firm Registration Number : 106625W

sd/- sd/- sd/-

Karnik K. Shah Ganesh Nayak Vishal Gor
Partner Chairman Director
Membership Number : 129675 DIN – 00017481 DIN – 08787850
Ahmedabad, Dated : May 17, 2022 Ahmedabad, Dated : May 17, 2022
 ZYDUS VTEC LIMITED
Statement of Profit and Loss for the year ended March 31, 2022
Particulars Note INR-Thousand
No. Year ended March 31
2022 2021
INCOME:
Revenue from Operations 23 814,763 -
Other Income 24 795 259
Total Income 815,558 259
EXPENSES:
Cost of Materials Consumed 25 320,111 -
Changes in Inventories of Finished goods, Work-in-progress and Stock-in-Trade 26 (22,488) -
Employee Benefits Expense 27 39,296 -
Finance Costs 28 177,028 30,972
Depreciation and Amortisation expense 3[E] 90,010
Other Expenses 29 201,521 1,419
Total Expenses 805,478 32,391
Profit / [Loss] before Tax 10,080 (32,132)
Add: Tax Expense:
Current Tax 30 - 65
Deferred Tax 30 8,629 -
Profit / [Loss] for the year 1,451 (32,197)
OTHER COMPREHENSIVE INCOME [OCI]:
Items that will not be reclassified to profit or loss:
Re-measurement losses on post employment defined benefit plans (89) -
Income tax effect on above 75 -
Other Comprehensive Income for the year [Net of Tax] (14) -
Total Comprehensive Profit / [Loss] for the period Net of Tax 1,437 (32,197)
Basic & Diluted Earnings per Equity Share [EPS] [in Rupees] 31 0.19 (7.64)
Significant Accounting Policies 2
Notes to the Financial Statements 1 to 40

As per our report of even date For and on behalf of the Board
For Mukesh M. Shah & Co.,
Chartered Accountants
Firm Registration Number : 106625W

sd/- sd/- sd/-

Karnik K. Shah Ganesh Nayak Vishal Gor
Partner Chairman Director
Membership Number : 129675 DIN – 00017481 DIN – 08787850
Ahmedabad, Dated : May 17, 2022 Ahmedabad, Dated : May 17, 2022
 ZYDUS VTEC LIMITED
Cash Flow Statement for the year ended March 31, 2022
Particulars INR-Thousand
Year ended March 31
2022 2021
A Cash flows from operating activities:
Profit / [Loss] before tax 10,080 (32,132)
Adjustments for:
Depreciation and Amortisation expense 90,010 -
Interest income (795) -
Interest expenses 171,401 30,932
Provisions for employee benefits 4,837 -
Total 265,453 30,932
Operating profit / [loss] before working capital changes 275,533 (1,200)
Adjustments for:
Increase in trade receivables (685,082) -
Increase in inventories (651,182) -
Increase in other assets (379,156) (227,507)
Increase in trade payables 213,487 411
Increase in other liabilities 11,503 6,223
Total (1,490,430) (220,873)
Cash generated from / [used in] operations (1,214,897) (222,073)
Direct taxes paid [Net of refunds] (2,162) (431)
Net cash generated from / [used in] operating activities (1,217,059) (222,504)
B Cash flows from investing activities:
Purchase of property, plant and equipment (2,018,425) (847,074)
Interest received 795 -
Net cash generated from / [used in] investing activities (2,017,630) (847,074)
C Cash flows from financing activities:
Proceeds from Issue of Shares - 75,000
Proceeds from non current borrowings 4,307,143 -
Current Borrowings [Net] (887,143) 1,030,000
Lease liabilities [Net] 1,140 -
Interest paid (153,121) (23,310)
Net cash from/ [used in] financing activities 3,268,019 1,081,690
Net increase in cash and cash equivalents 33,330 12,112
Cash and cash equivalents at the beginning of the year 12,112 -
Cash and cash equivalents at the end of the year 45,442 12,112

Notes to the Cash Flow Statement

1 The above cash flow statement has been prepared under the "Indirect method" as set out in Ind AS-7 "Statement of Cash Flows".
2 All figures in brackets are outflows.
3 Previous year's figures have been regrouped wherever necessary.
4 Cash and cash equivalents include INR 16,265 [INR Nil] Thousands not available for immediate use.
5 Cash and cash equivalents comprise of:
As at March 31
2022 2021
a Cash on Hand - -
b Balances with Banks 45,442 12,112
Total 45,442 12,112
6 Change in liability arising from financing activities:
Borrowings
Non-Current Current
[Note-13] [Note-18] Total
As at March 31, 2020 - - -
Cash flow - 1,030,000 1,030,000
As at March 31, 2021 - 1,030,000 1,030,000
Cash flow 4,307,143 (887,143) 3,420,000
As at March 31, 2022 4,307,143 142,857 4,450,000
As per our report of even date For and on behalf of the Board
For Mukesh M. Shah & Co.,
Chartered Accountants
Firm Registration Number : 106625W

sd/- sd/- sd/-

Karnik K. Shah Ganesh Nayak Vishal Gor
Partner Chairman Director
Membership Number : 129675 DIN – 00017481 DIN – 08787850
Ahmedabad, Dated : May 17, 2022 Ahmedabad, Dated : May 17, 2022
 ZYDUS VTEC LIMITED
Statement of Changes in Equity for the year ended March 31, 2022
a Equity Share Capital:
No. of Shares INR-Thousand
Equity Shares of INR 10/- each, Issued, Subscribed and Fully Paid-up:
As at March 31, 2020 - -
Add: Share issued during the year 7,500,000 75,000
As at March 31, 2021 7,500,000 75,000
Add: Share issued during the year - -
As at March 31, 2022 7,500,000 75,000

b Other Equity:
INR-Thousand
Retained Earnings
As at March 31, 2020 -
Add: (Loss) for the year (32,197)
Add: Other Comprehensive income -
Total Comprehensive Income (32,197)
As at March 31, 2021 (32,197)
Less: Profit for the year 1,451
Add: Other Comprehensive income (14)
Total Comprehensive Income 1,437
As at March 31, 2022 (30,760)

As per our report of even date For and on behalf of the Board
For Mukesh M. Shah & Co.,
Chartered Accountants
Firm Registration Number : 106625W

sd/- sd/- sd/-

Karnik K. Shah Ganesh Nayak Vishal Gor
Partner Chairman Director
Membership Number : 129675 DIN – 00017481 DIN – 08787850
Ahmedabad, Dated : May 17, 2022 Ahmedabad, Dated : May 17, 2022
 ZYDUS VTEC LIMITED
Note: 1-Company overview:
Zydus VTEC Ltd. is incorporated on September 8, 2020 with objective for manufacturing of pharmaceutical products i.e. drug substance for vaccines
and biological products having its registered office at Zydus Corporate Park, Scheme No. 63, Survey No 536, Khoraj [Gandhinagar], Near Vaishnodevi
Circle, S.G. Highway, Ahmedabad – 382481. The Company has its manufacturing facility at Zydus Biotech Park, Changodar, Ahmedabad which was
commercialised during current financial year 2021-22. These financial statements were authorised for issue in accordance with a resolution passed by
the Board of Directors at their meeting held on May 17, 2022.
Note: 2-Significant Accounting Policies:
A The following note provides list of the significant accounting policies adopted in the preparation of these financial statements.
1 Basis of preparation:
A The financial statements are in compliance with the Indian Accounting Standards [Ind AS] notified under the Companies [Indian
Accounting Standards] Rules, 2015, as amended and other relevant provisions of the Companies Act, 2013.
B The financial statements have been prepared on historical cost basis, except for the following assets and liabilities which have been
measured at fair values at the end of the reporting periods:
i Defined benefit plans
ii Contingent consideration
2 Use of Estimates:
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.
These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates
are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial
statements.
Critical accounting judgments and estimates:
A Property, Plant and Equipment:
Property, Plant and Equipment represent a large proportion of the asset base of the Company. The charge in respect of periodic
depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of
its life. Management reviews the residual values, useful lives and methods of depreciation of Property, Plant and Equipment at each
reporting period end and any revision to these is recognised prospectively in current and future periods. The lives are based on
historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as changes in
technology.
B Impairment of property, plant and equipment, goodwill and investments:
Significant judgments are involved in determining the estimated future cash flows from the Investments, Property, Plant and
Equipment and Goodwill to determine their value in use to assess whether there is any impairment in their carrying amounts as
reflected in the financials.
C Employee benefits:
Significant judgments are involved in making judgments about the life expectancy, discounting rate, salary increase, etc. which
significantly affect the working of the present value of future liabilities on account of employee benefits by way of defined benefit
plans.
D Taxes on Income:
Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/ recovered
for uncertain tax positions and probability of utilisation of Minimum Alternate Tax [MAT] Credit in future.
E Contingent liabilities:
Significant judgments are involved in determining whether there is a possible obligation, that may, but probably will not require an
outflow of resources.
3 Foreign Currency Transactions:
The Company's financial statements are presented in Indian Rupees [INR], which is the functional and presentation currency.
A The transactions in foreign currencies are translated into functional currency at the rates of exchange prevailing on the dates of
transactions.
B Foreign Exchange gains and losses resulting from settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at the year end exchange rates are recognised in the Statement of Profit and Loss.
C Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss
within finance costs. All the other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis.
4 Revenue Recognition:
A The following are the significant accounting policies related to revenue recognition under Ind AS 115:
a Sale of Goods:
Revenue from the sale of goods is recognized as revenue on the basis of customer contracts and the performance obligations contained
therein. Revenue is recognised at a point in time when the control of goods or services is transferred to a customer. Control lies with the
customer if the customer can independently determine the use of and consume the benefit derived from a product or service. Revenues
from product deliveries are recognised at a point in time based on an overall assessment of the existence of a right to payment, the
allocation of ownership rights, the transfer of significant risks and rewards and acceptance by the customer.
The goods are often sold with volume discounts/ pricing incentives and customers have a right to return damaged or expired products.
Revenue from sales is based on the price in the sales contracts, net of discounts, sales tax/ Goods and Services Tax [GST]. When a
performance obligation is satisfied, Revenue is recognised with the amount of the transaction price [excluding estimates of variable
consideration] that is allocated to that performance obligation. Historical experience, specific contractual terms and future expectations
of sales returns are used to estimate and provide for damage or expiry claims. No element of financing is deemed present as the sales
are made with the normal credit terms as per prevalent trade practice and credit policy followed by the Company.
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
B The specific recognition criteria described below must also be met before revenue is recognised:
a Interest Income:
For all debt instruments measured at amortised cost, interest income is recorded using the effective interest rate [EIR]. EIR is the rate
that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial
instrument but does not consider the expected credit losses.
b Other Income:
Other income is recognised when no significant uncertainty as to its determination or realisation exists.
5 Taxes on Income:
Tax expenses comprise of current and deferred tax.
A Current Tax:
a Current tax is measured at the amount expected to be paid on the basis of reliefs and deductions available in accordance with
the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.
b Current tax items are recognised in co-relation to the underlying transaction either in profit or loss, OCI or directly in equity.
B Deferred Tax:
a Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.
b Deferred tax liabilities are recognised for all taxable temporary differences.
c Deferred tax assets are recognised for all deductible temporary differences including the carry forward of unused tax losses. Deferred
tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, the carry forward of unused tax credits and unused tax losses can be utilized.
d The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognised deferred tax assets
are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered.
e Deferred tax assets and liabilities are measured at the tax rates [and tax laws] that have been enacted or substantively enacted at the
reporting date and are expected to apply in the year when the asset is realised or the liability is settled.
f Deferred tax items are recognised in co-relation to the underlying transaction either in profit or loss, OCI or directly in equity.
g Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities.
6 Property, Plant and Equipment:
A Property, Plant and Equipment are stated at historical cost of acquisition/ construction less accumulated depreciation and impairment loss.
Historical cost [Net of Input tax credit received/ receivable] includes related expenditure and pre-operative & project expenses for the period
up to completion of construction/ assets are ready for its intended use, if the recognition criteria are met and the present value of the
expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset, if the recognition criteria for a
provision are met. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance costs are charged to the statement of profit and loss during the reporting period in which they are incurred, unless
they meet the recognition criteria for capitalisation under Property, Plant and Equipment.
B Where components of an asset are significant in value in relation to the total value of the asset as a whole, and they have substantially
different economic lives as compared to principal item of the asset, they are recognised separately as independent items and are
depreciated over their estimated economic useful lives.
C Depreciation on tangible assets is provided on "straight line method" based on the useful lives as per technical assessment. The
management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are
likely to be used. However, management reviews the residual values, useful lives and methods of depreciation of Property, Plant and
Equipment at each reporting period end and any revision to these is recognised prospectively in current and future periods.
Asset Class No. of years
Leasehold Land Over the period of lease
Buildings 30 to 60 Years
Plant and Equipment 3 to 15 Years
Furniture, Fixtures and Office Equipments 5 to 10 Years
Vehicles 8 Years
D Depreciation on impaired assets is calculated on its reduced value, if any, on a systematic basis over its remaining useful life.
E Depreciation on additions/ disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which
assets are used.
F Where the actual cost of purchase of an asset is below INR 10,000/-, the depreciation is provided @ 100%.
G Capital work in progress is stated at cost less accumulated impairment loss, if any.
H An item of Property, Plant and Equipment and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset [calculated as the difference
between the net disposal proceeds and the carrying amount of the asset] is included in the Statement of profit and loss when the asset is
derecognised.
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
7 Intangible Assets:
A Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.
B Internally generated intangibles are not capitalised and the related expenditure is reflected in the Statement of profit and loss in the period in
which the expenditure is incurred.
C Trade Marks, Technical Know-how Fees and other similar rights are amortised over their estimated useful lives of ten years.
D Capitalised cost incurred towards purchase/ development of software is amortised using straight line method over its useful life of four years
as estimated by the management at the time of capitalisation.
E Intangible assets with infinite useful lives are not amortised, but are tested for impairment annually, either individually or at the
cash-generating unit level. The assessment of infinite life is reviewed annually to determine whether the infinite life continues to be
supportable. If not, the change in useful life from infinite to finite is made on a prospective basis.
F An item of intangible asset initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset [calculated as the difference between the net disposal proceeds and the
carrying amount of the asset] is included in the Statement of profit and loss when the asset is derecognised.
8 Borrowing Costs:
A Borrowing costs consist of interest and other borrowing costs that are incurred in connection with the borrowing of funds. Other borrowing
costs include ancillary charges at the time of acquisition of a financial liability, which is recognised as per EIR method. Borrowing costs also
include exchange differences to the extent regarded as an adjustment to the borrowing costs.
B Borrowing costs that are directly attributable to the acquisition/ construction of a qualifying asset are capitalised as part of the cost of such
assets, up to the date the assets are ready for their intended use. All other borrowing costs are recognised in profit or loss in the period in
which they are incurred.
9 Impairment of Non Financial Assets:
The Property, Plant and Equipment and Intangible assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. Intangible assets with indefinite useful lives and intangible assets not yet available for use
are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, the assets are grouped at the lowest
levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of
assets [cash generating units]. Non-financial assets other than Goodwill that suffered an impairment loss are reviewed for possible reversal
of impairment at the end of each reporting period. An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
10 Cash and Cash Equivalents:
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits
with banks where the original maturity is three months or less and other short term highly liquid investments.
11 Inventories:
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location
and condition are accounted for as follows:
A Raw Materials, Packing Materials, Finished Goods, Stock-in-Trade and Works-in-Progress are valued at lower
of cost and net realisable value.
B Cost [Net of Input tax credit availed] of Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and
Stock-in-Trade is determined on Moving Average Method.
C Costs of Finished Goods and Works-in-Progress are determined by taking material cost [Net of Input tax credit availed], labour
and relevant appropriate overheads based on the normal operating capacity, but excluding borrowing costs.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale. Write down of inventories to net realisable value is recognised as an expense and included in "Changes in
Inventories of Finished goods, Work-in-progress and Stock-in-Trade" and "Cost of Material Consumed" in the relevant note in the Statement
of Profit and Loss.
12 Leases:
The Company has adopted Ind AS 116 "Leases" which is effective for an annual period beginning on or after from April 1, 2019. The following
is the significant accounting policy related to Ind AS 116.
The adoption of this Standard has resulted in the Company recognising a right-of-use asset and related lease liability in connection with all
former operating leases except for those identified as low-value or having a remaining lease term of less than 12 months from the date of
initial application.
The Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting Ind AS 116 being
recognised in equity as an adjustment to the opening balance of retained earnings for the previous year.
For contracts in place at the date of initial application, the Company has elected to apply the definition of lease from Ind AS 17 and has
not applied Ind AS 116 to arrangements that were previously not identified as lease under Ind AS 17.
The Company has elected not to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence
at the date of initial application of Ind AS 116, being April 1, 2019. At this date, the Company has also elected to measure the right-of-use
assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition.
On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases
of low-value assets the Company has applied the optional exemptions to not recognise right-of-use assets but to account for the lease
expense on a straight-line basis over the remaining lease term. For those leases previously classified as finance leases, the right-of-use
asset and lease liability are measured at the date of initial application at the same amounts as under Ind AS 17 immediately before the
date of initial application.
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
As a lessee:
For any new contracts entered into on or after April 1 2019, the Company considers whether a contract is, or contains a lease. A
lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset [the underlying asset] for a period of time
in exchange for consideration’.
Measurement and recognition of leases as a lessee:
At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet. The
right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs
incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease
payments made in advance of the lease commencement date [net of any incentives received].
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the
end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for
impairment when such indicators exist.
At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company’s incremental
borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments [including in substance fixed],
variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments
arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to
reflect any reassessment or modification, or if there are changes to the in-substance fixed payments. When the lease liability is
remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is
already reduced to zero. The Company has elected to account for short-term leases and leases of low-value assets using the
practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straight-line basis over the lease term.
On the statement of financial position, right-of-use assets have been included in property, plant and equipment and lease
liabilities have been included in other financial liabilities.
As a lessor:
As a lessor the Company classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it
transfers substantially all the risks and rewards incidental to ownership of the underlying asset, and classified as an operating lease if
it does not.
13 Provisions, Contingent Liabilities and Contingent Assets:
A Provisions are recognised when the Company has a present obligation as a result of past events and it is probable that the outflow of
resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability
is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision/ disclosure is made.
Contingent assets are not recognised but are disclosed separately in the financial statements. Provisions and contingencies are reviewed at
each balance sheet date and adjusted to reflect the correct management estimates. Contingent assets are not recognised but are disclosed
separately in financial statements.
B If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability.
14 Employee Benefits:
A Short term obligations:
Liabilities for wages and salaries, including leave encashment that are expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting
period and are measured by the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
B Long term employee benefits obligations:
a Leave Wages and Sick Leave:
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months period after the end of the period
in which the employees render the related service. They are therefore, measured at the present value of expected future payments to
be made in respect of services provided by employees upto the end of the reporting period using the projected unit credit method. The
benefits are discounted using the market yields at the end of reporting period that have the terms approximating to the terms of the
related obligation. Gains and losses through re-measurements are recognised in statement of profit and loss.
b Defined Benefit Plans:
i Gratuity:
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit
plan obligation at the end of the reporting period less the fair value of the plan assets. The Liabilities with regard to the Gratuity Plan are
determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit
method. The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash
outflows by reference to the market yields at the reporting period on government bonds that have terms approximating to the terms of
the related obligation. The net interest cost in calculated by applying the discounting rate to the net balance of the defined benefit
obligation and the fair value of plan assets. Such costs are included in employee benefit expenses in the statement of Profit and Loss.
Re-measurements gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised
immediately in the period in which they occur directly in "other comprehensive income" and are included in retained earnings in the
statement of changes in equity and in the balance sheet. Re-measurements are not reclassified to profit or loss in subsequent periods.
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
i Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non routine
settlements;
ii Net interest expense or income.
c Defined Contribution Plans - Provident Fund Contribution:
Eligible employees of the Company receive benefits from a provident fund, which is a defined contribution plan. Both the eligible
employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered
employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The
company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined
contribution plans and are recognised as employees benefit expenses when they are due in the statement of profit and loss.
15 Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A Financial Assets:
a Initial recognition and measurement:
All financial assets are recognised initially at fair value plus transaction costs, in the case of financial assets not recorded at fair value
through profit or loss, that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place [regular way trades] are recognised
on the settlement date, i.e., the date that the Company settles to purchase or sell the asset.
b Subsequent measurement:
For purposes of subsequent measurement, financial assets are classified in five categories:
i Debt instruments at amortised cost:
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
- The asset is held with an objective of collecting contractual cash flows
- Contractual terms of the asset give rise on specified dates to cash flows that are "solely payments of principal and interest"
[SPPI] on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate [EIR]
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of profit and loss.
ii Debt instruments at fair value through other comprehensive income [FVTOCI]:
A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:
- The asset is held with objectives of both collecting contractual cash flows and selling the financial assets
- The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses & reversals and foreign
exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as
interest income using the EIR method.
iii Debt instruments and derivatives at fair value through profit or loss [FVTPL]:
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at FVTPL.
Instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit
and Loss.
c Derecognition:
A financial asset [or, where applicable, a part of a financial asset] is primarily derecognised [i.e. removed from the Company’s
balance sheet] when:
i The rights to receive cash flows from the asset have expired, or
ii The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either [a] the Company has
transferred substantially all the risks and rewards of the asset, or [b] the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially
all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to
the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. When the
Company has transferred the risks and rewards of ownership of the financial asset, the same is derecognised.
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
d Impairment of financial assets:
In accordance with Ind AS 109, the Company applies expected credit loss [ECL] model for measurement and recognition of impairment loss
on trade receivables or any contractual right to receive cash or another financial asset. The Company follows ‘simplified approach’ for
recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it requires the Company to recognise the impairment loss allowance based on lifetime ECLs at each reporting date, right from
its initial recognition. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is
used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from all
possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from
default events that are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows
that the entity expects to receive [i.e., all cash shortfalls], discounted at the original EIR.
ECL impairment loss allowance [or reversal] is recognized as expense/ income in the Statement of profit and loss. The balance sheet
presentation for various financial instruments is described below:
Financial assets measured as at amortised cost and contractual revenue receivables: ECL is presented as an allowance , i.e., as an
integral part of the measurement of those assets in the balance sheet, which reduces the net carrying amount. Until the asset meets
write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit
risk characteristics.
B Financial Liabilities:
a Initial recognition and measurement:
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are
recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
b Subsequent measurement:
Subsequently all financial liabilities are measured as amortised cost, using EIR method. Gains and losses are recognised in Statement
of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included as finance costs in the Statement of profit and loss.
c Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of profit and loss.
C Reclassification of financial assets:
The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is
made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a
reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent. The Company’s senior management determines change in the business model as a result of external or internal
changes which are significant to the Company’s operations. Such changes are evident to external parties. A change in the business model
occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model as per Ind AS 109.
D Offsetting of financial instruments:
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal
right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
16 Fair Value Measurement:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:
a In the principal market for the asset or liability, or
b In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the
asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair
value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
 ZYDUS VTEC LIMITED
Note: 2-Significant Accounting Policies-Continued:
a Level 1 — Quoted [unadjusted] market prices in active markets for identical assets or liabilities
b Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable
c Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re-assessing categorisation [based on the lowest level input that is significant to the fair
value measurement as a whole] at the end of each reporting period.
17 Earnings per Share:
Basic earnings per share are calculated by dividing the net profit or loss [excluding other comprehensive income] for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events such as bonus issue, bonus element in a right issue, shares split and reserve share
splits [consolidation of shares] that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss [excluding other comprehensive income] for the year
attributable to equity share holders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
B Recent Accounting Pronouncements:
The Ministry of Corporate Affairs notifies new standards or amendments to the existing standards. There is no such notification
which would have been applicable effective from April 1, 2022.
a Ind AS 16 – Property, Plant and Equipments:
The amendments clarifies , the excess of net sale proceeds of items produced over the cost of testing, if any, should not be recognised in
the statement of profit or loss but deducted from the directly attributable costs considered as part of cost of an item of PPE. The Company
does not expect the amendment to have any material impact on its financial statements.
b Ind AS 37 – Provisions, Contingent Liabilities and Contingent Assets:
The amendments clarifies the nature of costs that can be directly related to the contract for the purpose of assessing the contract is
onerous. The Company does not expect the amendment to have any material impact in its financial statements
c Ind AS 103 – Business Combination:
The amendment clarifies that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and
liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian
Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These
changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any impact on
its financial statements.
d Ind AS 109 – Financial Instruments:
The amendment clarifies the nature of fees which can be included by the entity for the purpose of assessing the ’10 percent' test for
derecognition of financial liabilities. The amendment is no expected to have any material impact on the Company's financial statement.
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 3-Property, Plant and Equipment:
[A] Property, Plant and Equipment: INR-Thousand
Leasehold Plant and Furniture and Office
Land Equipment Fixtures Vehicles Equipment Total
Gross Block:
As at March 31, 2020 - - - - - -
Right of use assets 437,749 - - - - 437,749
Additions - - - - - -
Disposals - - - - - -
As at March 31, 2021 437,749 - - - - 437,749
Additions - 2,923,338 20,060 998 1,358 2,945,754
Disposals - - - - - -
As at March 31, 2022 437,749 2,923,338 20,060 998 1,358 3,383,503
Depreciation and Impairment: -
As at March 31, 2020 - - - - - -
Depreciation for the year * 8,755 - - - - 8,755
As at March 31, 2021 8,755 - - - - 8,755
Depreciation for the year * 17,510 80,395 538 34 69 98,546
As at March 31, 2022 26,265 80,395 538 34 69 107,301
Net Block:
As at March 31, 2021 428,994 - - - - 428,994
As at March 31, 2022 411,484 2,842,943 19,522 964 1,289 3,276,202

[B] Intangible Assets:

Computer
Software Total
Gross Block:
As at March 31, 2020 - -
Additions - -
Disposals - -
As at March 31, 2021 - -
Additions 3,021 3,021
Disposals - -
As at March 31, 2022 3,021 3,021
Amortisation and Impairment:
As at March 31, 2020 - -
Amortisation for the year - -
Disposals - -
As at March 31, 2021 - -
Amortisation for the year 219 219
Disposals - -
As at March 31, 2022 219 219
Net Block:
As at March 31, 2021 - -
As at March 31, 2022 2,802 2,802

[C] Capital Work in Progress[Net]: Year ended March 31

2022 2021
Opening balance 1,090,898 -
Addition for the year:
Consumption of materials 212,333 -
Power & Fuel 57,976 -
Salaries and wages 45,659 6,673
Company's contribution to provident & other funds 1,682 1,214
Legal and Professional Fees 2,866 4
Depreciation and Amortisation on Property, Plant and Equipment 8,755 8,755
Other Property, Plant and Equipments 1,534,037 1,076,007
2,954,206 1,092,653
Less:
Net Gain on foreign currency transactions and translation - 1,755
Capitalised during the year 2,948,777 -
Total 5,429 1,090,898
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
INR-Thousand
As at March 31
Note: 3-Property, Plant and Equipment -Continued:
[D] Ageing of Capital-work-in progress (CWIP): 2022 2021
A Projects in progress:
1 Less than 1 year 5,430 1,090,899
2 1 - 2 years - -
3 2 - 3 years - -
4 More than 3 years - -
Total Capital Work-in-Progress 5,430 1,090,899

Project execution plans are modulated on the basis of capacity requirement assessment annually and
all the projects are executed based on rolling annual plan.

[E] Depreciation and amortisation expenses:

Depreciation 81,036 -
Amortisation 219 -
* Depreciation / amortisation on right use of assets as per IND AS 116 17,510 8,755
Less: Transferred to Capital Work in Progress (8,755) (8,755)
Total 90,010 -

Note: 4-Other Financial Assets:

[Unsecured, Considered Good unless otherwise stated]
Security Deposits 9,254 9,254
Fixed deposit with bank having maturity of more than 12 months - 15,346
Others - 206
Total 9,254 24,806

Note: 5-Other Non-Current Assets:

[Unsecured, Considered Good unless otherwise stated]
Capital Advances - Considered Good 18,359 220,972
Others 1,075 537
Total 19,434 221,509

Note: 6-Current Tax Assets [Net]:

Advance payment of Tax [Net of provision Nil in FY 21-22 (INR 65 Thousands in FY 20-21)] 2,527 366
Total 2,527 366

Note: 7-Inventories:
[The Inventory is valued at lower of cost and net realisable value]
Classification of Inventories:
Raw Materials 396,044 -
Work-in-progress 2 -
Finished Goods 22,486 -
Stores and Spares 221,935 -
Others:
Packing Materials 10,715 -
Total 651,182 -

Note: 8-Trade Receivables:

Secured - Considered good - -
Unsecured - Considered good 685,082 -
Unsecured - Credit impaired - -
685,082 -
Less: Allowances for credit losses - -
Total 685,082 -
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 8-Trade Receivables-Continued:
Ageing of Trade Receivables : INR-Thousand
Outstanding from due date of payment
Particulars Not Due Less than 6 Months to More than 3 Total
1 to 2 years 2 to 3 years
6 Months 1 year years
As at March 31, 2022
Undisputed – considered good 305,820 379,262 - - - - 685,082
Undisputed – have significant increase - - - - - - -
in credit risk -
Undisputed – credit impaired - - - - - - -
Disputed – considered good - - - - - - -
Disputed - have significant increase - - - - - - -
in credit risk -
Disputed - credit impaired - - - - - - -
Total 305,820 379,262 - - - - 685,082

As at March 31, 2021

Undisputed – considered good - - - - - - -
Undisputed – have significant increase - - - - - - -
in credit risk
Undisputed – credit impaired - - - - - - -
Disputed – considered good - - - - - - -
Disputed - have significant increase - - - - - - -
in credit risk
Disputed - credit impaired - - - - - - -
Total - - - - - - -

INR-Thousand
As at March 31
2022 2021
Note: 9-Cash and Cash Equivalents:
A Cash and Cash Equivalents:
Balances with Banks 29,177 12,112
Cash on Hand - -
Total 29,177 12,112
B Bank balance other than cash and cash equivalents:
Balances with Banks 16,265 -
Total 16,265 -

Note: 10-Other Current Assets:

[Unsecured, Considered Good]
Balances with Statutory Authorities 592,855 202,164
Advances to Suppliers - Considered Good 2,968 -
595,823 202,164
Less: Allowances for credit impaired - -
595,823 202,164
Prepaid Expenses 3,481 -
Total 599,304 202,164
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
INR-Thousand
As at March 31
2022 2021
Note: 11-Equity Share Capital:
Authorised:
10,000,000 [as at March 31, 2021: 10,000,000] Equity Shares of INR 10/- each 100,000 100,000
100,000 100,000
Issued, Subscribed and Paid-up:
7,500,000 [as at March 31, 2021: 7,500,000] Equity Shares of INR 10/- each, fully paid-up 75,000 75,000
75,000 75,000
A The reconciliation in number of shares is as under :
Number of shares at the beginning of the year 7,500,000 -
Add: Shares issued during the year - 7,500,000
Number of shares at the end of the year 7,500,000 7,500,000
B The Company has only one class of equity shares having a par value of INR 10/- per share. Each
holder of equity share is entitled to one vote per share. In the event of liquidation of the Company,
shareholders shall be entitled to proportionate share of their holding in the assets remaining after
distribution of the equity all preferential amounts.
C All Equity shares of Rs 10/- each, fully paid up held by Holding Company, Zydus Lifesciences Limited
(formerly known as "Cadila Healthcare Limited") and its nominees
Number of Shares 7,500,000 7,500,000
% to total share holding 100% 100%
D Equity Shares held by the promoters of the Company as at the end of the year March 31, 2022 and 2021:
No. of % of total % change during the
# Promoter's Name
Shares shares year
1 Zydus Lifesciences Ltd. (formerly known as 7,500,000 100% -
"Cadila Healthcare Ltd.")

Note: 12-Other Equity:

Retained Earnings:
Balance as per last Balance Sheet (32,197) -
Add / [Less]: Profit / [Loss] for the year 1,451 (32,197)
(30,746) (32,197)
Less: Items of other Comprehensive income recognised directly in Retained Earnings:
Re-measurement [losses] on defined benefit plans [net of tax] (14) -
Balance as at the end of the year (30,760) (32,197)
Total (30,760) (32,197)

Note: 13-Borrowings:
INR-Thousand
Non-current portion Current Maturities
As at March 31 As at March 31
2022 2021 2022 2021
Unsecured Term Loans from Banks 2,357,143 - 142,857 -
Loans and advances from related parties:
Loan from Fellow Subsidiary Company 1,950,000 - - -
Total 4,307,143 - 142,857 -
The above amount includes:
Unsecured borrowings 4,307,143 - 142,857 -
Amount disclosed under the head "Borrowings" [Note-18] - - (142,857) -
Net amount 4,307,143 - - -

Terms of repayment for Unsecured Borrowings from banks:

i Term loan of INR 20,00,000 Thousand is repayable in quarterly instalments starting from March 31, 2023. Interest on loan is payable on monthly
basis. The outstanding amount as at March 31, 2022 is INR 20,00,000 [as at March 31, 2021: INR Nil] Thousands.
ii Term loan of INR 5,00,000 Thousand is repayable in quarterly instalments starting from February 29, 2024. Interest on loan is payable on monthly
basis. The outstanding amount as at March 31, 2022 is INR 5,00,000 [as at March 31, 2021: INR Nil] Thousands.
Terms of repayment for Unsecured Inter-corporate borrowings:
The loan taken from fellow subsidiary company amounting to INR 1,950,000 Thousands will be repaid after 3 years from the date of first
disbursement date or as otherwise decided with mutual consent between the parties. Company may prepay the loan totally or partially with no
penalty.
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 14-Leases:
Lessee:
A Relating to statement of financial position:
1 As per the requirements of Ind AS 116, the Company recognises right to use assets and lease liabilities for the applicable lease transactions.
Right of use assets are part of financial statement caption "Property plant and equipment'. Depreciation and impairment is similar to
measurement of owned assets. Lease liabilities are part of financial statement captions "non-current financial liabilities" and "current
financial liabilities". Interest is part of financial statement caption " Finance expense". The Company has availed leasehold building from the
holding company on long term basis.
INR-Thousand
Right of use assets Land Total
Balance as at March 31, 2020 [Net] - -
Additions during the year 437,749 437,749
Depreciation charge for the year 8,755 8,755
Balance as at March 31, 2021 [Net] 428,994 428,994
Additions during the year - -
Depreciation charge for the year 17,510 17,510
Balance as at March 31, 2022 [Net] 411,484 411,484
2 Movement in lease liabilities:
INR-Thousand
As at March 31
2022 2021
Lease liability at the beginning of the year 438,273 -
Additions at initial recognition - 437,749
Net increase in liability during the year as per terms of the contract - 525
Addition: Interest 45,458 -
Redemptions (44,318) -
Lease liability at end of the year of which: 439,413 438,273
Current portion 44,872 44,318
Non current portion 394,541 393,955
3 Maturity analysis of lease liabilities:
The lease liabilities are secured by the related underlying assets. The undiscounted maturity analysis of lease liabilities is as follows:
Minimum lease payments due
Within 1 year 44,872 44,318
1-5 years 186,487 231,359
More than 5 years 1,021,703 1,021,703

Note: 15-Other Financial Liabilities:

Others 60 -
Total 60 -

Note: 16-Provisions:
Provision for Employee Benefits 6,384 2,188
Total 6,384 2,188

Defined benefit plan and long term employment benefit

A General description:
Leave wages [Long term employment benefit]:
The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated
leave as on last day of the accounting year is recognised [net of the fair value of plan assets as at the balance sheet date] at present
value of the defined obligation at the balance sheet date based on the actuarial valuation carried out by an independent actuary using
projected unit credit method.
Gratuity [Defined benefit plan]:
The Company has a defined benefit gratuity plan. Every employee who has completed continuous services of five years or more gets a
gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The plans
typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary increment risk.
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds.
Interest risk:
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return
on the plan’s debt investments.
Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan’s liability.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan’s liability.
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 16-Provisions-Continued:
INR-Thousand
As at March 31
2022 2021
Med. Leave Leave Wages Gratuity Med. Leave Leave Wages Gratuity
B Change in the present value of the defined benefit obligation:
Opening obligation 39 1,716 920 - - -
Interest cost 2 101 54 - - -
Current service cost 30 1,937 692 39 1,716 920
Benefits paid - (342) (176) - - -
Actuarial [gains]/ losses on obligation due to: - - -
Experience adjustments 21 1,343 1,201 - - -
Change in demographic assumptions - - - - - -
Change in financial assumptions - 63 - - - -
Closing obligation 92 4,818 2,691 39 1,716 920
C Change in the fair value of plan assets:
Opening fair value of plan assets - - - - - -
Expected return on plan assets - - - - - -
Contributions by employer - - - - - -
Benefits paid - - - - - -
Return on plan assets excluding amounts - - - - - -
included in interest income
Closing fair value of plan assets - - - - - -
D Actual return on plan assets:
Expected return on plan assets - - - - - -
Actuarial [losses]/ gains on plan assets - - - - - -
Actual return on plan assets - - - - - -
E Amount recognised in the balance sheet:
Liabilities at the end of the year 92 4,818 2,691 39 1,716 920
Fair value of plan assets at the end of the year - - - - - -
Difference 92 4,818 2,691 39 1,716 920
Liabilities recognised in the Balance Sheet 92 4,818 2,691 39 1,716 920
F Expenses/ [Incomes] recognised in the Statement of Profit and Loss:
Current service cost 30 1,937 692 39 1,716 920
Interest cost on benefit obligation 2 101 54 - - -
Expected return on plan assets - - - - - -
Return on plan assets excluding amounts - - - - - -
included in interest income
Net actuarial [gains]/ losses in the year 21 1,406 1,187 - - -
Amount transferred to CWIP (50) (2,012) (546) (39) (1,716) (920)
Amount included in Employee Benefit Expenses 3 1,432 1,387 0 0 0
Return on plan assets excluding amounts
included in interest income - - - - - -
Net actuarial [gains]/ losses in the year - - 14 - - -
Amounts recognized in OCI - - 14 - - -
G Movement in net liabilities recognised in Balance Sheet:
Opening net liabilities 39 1,716 920 - - -
Amount transferred to CWIP 50 2,012 546 39 1,716 920
Expenses as above [P & L Charge] 3 1,432 1,387
Employer's contribution - - - - - -
Benefits Paid - (342) (176) - - -
Net actuarial [gains]/ losses in the year - - 14 - - -
Liabilities recognised in the Balance Sheet 92 4,818 2,691 39 1,716 920
H Principal actuarial assumptions for defined benefit plan and long term employment benefit plan:
Discount rate 6.85% 6.50%
[The rate of discount is considered based on market yield on Government Bonds having currency and terms in consistence with
the currency and terms of the post employment benefit obligations]
12.00% p.a. for 2 years and 9.00%
Annual increase in salary cost 9.00%
p.a. thereafter
[The estimates of future salary increases are considered in actuarial valuation, taking into account inflation, seniority, promotion and
other relevant factors such as supply and demand in the employment market]
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 16-Provisions-Continued:
I The categories of plan assets as a % of total plan assets are:
Insurance plan 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
J Amount recognised in current year:
As at March 31
Gratuity: 2022 2021
Defined benefit obligation 2,691 920
Fair value of Plan Assets - -
Deficit/ [Surplus] in the plan 2,691 920
Actuarial Loss/ [Gain] on Plan Obligation - -
Actuarial Loss/ [Gain] on Plan Assets (14) -
The Average duration of the Defined Benefit Plan Obligation at the end of reporting period is 7.95 years (PY 8.37 years).

Sensitivity analysis:
A quantitative sensitivity analysis for significant assumption as is as shown below:
Assumptions INR-Thousand
As at March 31
2022 2021
Med. Leave Leave Wages Gratuity Med. Leave Leave Wages Gratuity
Impact on obligation:
Discount rate increase by 0.5% (5) (148) (101) (2) (65) (34)
Discount rate decrease by 0.5% 5 158 107 2 70 37

Annual salary cost increase by 0.5% 5 154 50 2 68 13

Annual salary cost decrease by 0.5% (5) (145) (50) (2) (64) (25)

The following payments are expected contributions to the defined benefit plan in future years:
INR-Thousands
As at March 31
2022 2021
Within the next 12 months [next annual reporting period] 1,217 174
Between 2 and 5 years 3,030 287
Between 5 and 10 years 2,424 273
Total expected payments 6,672 734

Note: 17-Deferred Tax:

A Break up of Deferred Tax Liabilities and Assets into major components of the respective balances are as under:
INR-Thousands
As at Impact for As at
March 31 the current March 31
2021 year 2022
Deferred Tax Liabilities:
Depreciation - 24,352 24,352
- 24,352 24,352
Deferred Tax Assets:
Employee benefits/ Payable to Statutory Authorities - 591 591
Unabsorbed depreciation - 15,207 15,207
- 15,798 15,798
Net Deferred Tax Liabilities - 8,554 8,554

B The Net Deferred Tax Expense of INR 8554 Thousands has been charged [Previous Year expense of INR Nil] in the Statement of Profit and Loss.
C The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. The Company has tax losses which
arose in India INR 88,617 Thousands [Previous year Nil] that are available for offsetting for indefinite period against future taxable profits of the
Company. Unabsorbed depreciation is allowed to be set off for indefinite period.
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
INR-Thousand
As at March 31
2022 2021
Note: 18-Borrowings:
Loans and advances from related parties:
Loan from Holding Company - 1,030,000
Current Maturities of Long Term Debt [Refer Note- 13] 142,857 -
Total 142,857 1,030,000

Note: 19-Trade Payables:

Dues to Micro and Small Enterprises[*] 4,950 -
Dues to other than Micro and Small Enterprises 211,916 411
Total 216,866 411
[*] Disclosure in respect of Micro and Small Enterprises:
A Principal amount remaining unpaid to any supplier as at year end 4,950 -
B Interest due thereon - -
C Amount of interest paid by the Company in terms of section 16 of the MSMED Act, along with 416
the payment made to the supplier beyond the appointed day during the year amount of the
D Amount of interest due and payable for the year of delay in making payment [which have - -
beenpaid but beyond the appointed day during the year] but without adding the interest specified
under the MSMED Act
E Amount of interest accrued and remaining unpaid at the end of the accounting year - -
F Amount of further interest remaining due and payable in succeeding years - -
The above information has been compiled in respect of parties to the extent to which they could be
identified as Micro and Small Enterprises on the basis of information available with the Company.
Ageing of Trade Payables : INR-Thousands
Outstanding from due date of payment
Particulars Not Due Less than More than 3 Total
1 to 2 years 2 to 3 years
1 Year years
As at March 31, 2022
Undisputed Micro and Small Enterprises [MSME] 3,827 1,123 - - - 4,950
Undisputed Others 108,532 103,360 23 - - 211,916
Disputed MSME - - - - - -
Disputed Others - - - - - -
Total 112,360 104,483 23 - - 216,866

As at March 31, 2021

Undisputed Micro and Small Enterprises [MSME] - - - - - -
Undisputed Others 411 - - - - 411
Disputed MSME - - - - - -
Disputed Others - - - - - -
Total 411 - - - - 411

INR-Thousand
As at March 31
2022 2021
Note: 20-Other Financial Liabilities:
Interest accrued but not due on borrowings 25,902 7,622
Accrued Expenses 11,014 1,801
Payable for Capital Goods 89,033 455,516
Total 125,949 464,939

Note: 21-Other Current Liabilities:

Payable to Statutory Authorities 3,858 1,747
Others 117 -
Total 3,975 1,747

Note: 22-Provisions:
Provision for Employee Benefits 1,217 487
Total 1,217 487
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
INR-Thousand
Year ended March 31
2022 2021
Note: 23-Revenue from Operations:
Sale of Products 813,160 -
Other Operating Revenues:
Net Gain on foreign currency transactions and translation 890 -
Miscellaneous Income 713 -
1,603 -
Total 814,763 -

Note: 24-Other Income:

Finance Income:
Interest Income on Financial Assets measured at Amortised Cost 795 259
Total 795 259

Note: 25-Cost of Materials Consumed:

Raw Materials:
Stock at commencement -
Add: Purchases 712,366
712,366 -
Less: Stock at close 396,044 -
316,322 -
Packing Materials consumed 3,789
Total 320,111 -

Note: 26-Changes in Inventories:

Stock at commencement:
Work-in-progress -
Finished Goods -
Stock-in-Trade -
- -
Less: Stock at close:
Work-in-progress 2 -
Finished Goods 22,486 -
Stock-in-Trade - -
22,488 -
Total (22,488) -

Note: 27-Employee Benefits Expense:

Salaries and wages 34,601 -
Contribution to provident and other funds [*] 2,110 -
Staff welfare expenses 2,585 -
Total 39,296 -
[*] The Company's contribution towards defined contribution plan
The Company makes Provident Fund contributions to defined contribution plans for qualifying employees, as
specified under the law. The contributions are paid to the respective Regional Provident Fund Commissioner
under the Pension Scheme.

Note: 28- Finance Cost:

Interest expense [*] 171,401 30,932
Bank commission & charges 5,627 40
Total 177,028 30,972
[*] The break up of interest expense into major heads is given below:
On term loans 33,232 -
On Lease 45,458 22,687
Others 92,711 8,245
Total 171,401 30,932
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
INR-Thousand
Year ended March 31
2022 2021
Note: 29- Other Expenses:
Consumption of Stores and spare parts 86,824 -
Power & fuel 38,986 -
Rent 153 -
Repairs to Buildings 9 -
Repairs to Plant and Machinery 1,538 -
Insurance 2,059 -
Traveling Expenses 182 -
Legal and Professional Fees [*] 306 1,419
Water Charges 56,182 -
Freight and forwarding on sales 364 -
Miscellaneous Expenses 14,918 -
Total 201,521 1,419
[*] Payment to the auditors as [Excluding GST]:
i Auditor 225 25
ii For other services 52 -
iii Total 277 25

Note: 30-Tax Expenses:

The major components of income tax expense are:
A Statement of profit and loss:
Profit or loss section:
Current income tax:
Current income tax charge - 65
- 65
Deferred tax:
Relating to origination and reversal of temporary differences [Refer Note-17] 8,629 -
Tax expense reported in profit or loss 8,629 65

OCI Section:
Tax related to items recognised in OCI during in the year:
Net loss on remeasurements of defined benefit plans (75) -
Tax charged to OCI (75) -

B Reconciliation of tax expense and accounting profit multiplied by India’s domestic tax rate:
Profit / (Loss) before tax 10,080 (32,132)
Enacted Tax Rate in India (%) 17.16% 17.16%
Expected Tax Expenses 1,730 (5,515)
Adjustments for:
Losses on which deferred tax is not recognised - -
Effect of Expense allowed on different bases (15) -
Effect of non-deductible expenses 6,914 5,580
Total 6,899 5,580
Tax Expenses as per Profit or Loss 8,629 65

Note: 31-Calculation of Earnings per Equity Share [EPS]:

The numerators and denominators used to calculate the basic and diluted EPS are as follows:
A Profit / [Loss] after tax INR 1,451 (32,197)
B Basic and weighted average number of Equity shares outstanding during the year Numbers 7,500,000 4,212,329
C Nominal value of equity share INR 10.00 10.00
D Basic & Diluted EPS INR 0.19 (7.64)

Note: 32-Contingent Liabilities and Commitments [to the extent not provided for]:
A Commitments:
Estimated amount of contracts remaining to be executed on capital account and not provided for 128,800 1,069,915
- Net of advance of 11,310 180,298
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 33-Related Party Transactions:
A Name of the Related Parties and Nature of the Related Party Relationship with whom transactions have taken place:
a Holding Company:
Zydus Lifesciences Limited (formerly known as "Cadila Healthcare Limited")
b Fellow Subsidiaries/ Concerns:
Zydus Healthcare Limited Zydus Pharmaceuticals (USA) Inc. [USA]
German Remedies Pharmaceuticals Private Limited Nesher Pharmaceuticals (USA) LLC [USA]
Zydus Wellness Limited ZyVet Animal Health Inc. [USA]
Zydus Wellness Products Limited Zydus Healthcare (USA) LLC [USA]
Liva Nutritions Limited Sentynl Therapeutics Inc. [USA]
Liva Investment Limited Zydus Noveltech Inc. [USA]
Hercon Pharmaceuticals LLC [USA] Viona Pharmaceuticals Inc. [USA]
Zydus Wellness BD Pvt Ltd [Bangladesh] Zydus Therapeutics Inc. [ZTI] [USA]
Dialforhealth Unity Limited Zydus Healthcare S.A. (Pty) Ltd [South Africa]
Dialforhealth Greencross Limited Simayla Pharmaceuticals (Pty) Ltd [South Africa]
Violio Healthcare Limited Script Management Services (Pty) Ltd [South Africa]
Zydus Pharmaceuticals Limited Zydus France, SAS [France]
Biochem Pharmaceutical Private Limited Laboratorios Combix S.L. [Spain]
Zydus Strategic Investments Limited M/s. Recon Pharmaceuticals and Investments, a Partnership Firm
Zydus Foundation Zydus Pharmaceuticals Mexico SA De CV [Mexico]
Etna Biotech S.R.L. [Italy] Zydus Pharmaceuticals Mexico Services Company SA De C.V.[Mexico]
Zydus International Private Limited [Ireland] Zydus Worldwide DMCC [Dubai]
Zydus Netherlands B.V. [the Netherlands] Zydus Discovery DMCC [Dubai] [Merged with ZTI w.e.f. July 1, 2021]
Zydus Lanka (Private) Limited [Sri Lanka] Zydus Wellness International DMCC [Dubai]
Zydus Nikkho Farmaceutica Ltda. [Brazil] Zydus Animal Health and Investments Limited (formerly known
Alidac Healthcare (Myanmar) Limited [Myanmar] as "Violio Pharmaceuticals and Investments Limited")
Zydus Healthcare Philippines Inc. [Philippines]
c Enterprises significantly influenced by Directors and/or their relatives:
Zydus Hospitals and Healthcare Research Private Limited
Zydus Infrastructure Private Limited
d Directors and Key Managerial Personnel:
Ganesh Nayak Chairman Keyur Parekh Director
Kapil Maithal Director Vishal Gor Director
Vibhor Saraswat Director
B Transactions with Related Parties:
The following transactions were carried out with the related parties in the ordinary course of business :
a Details relating to parties referred to in items 33A[a],[b] & [c].
Enterprises significantly influenced
Holding Company Fellow Subsidiary Companies
by Directors and/ or their relatives

Nature of Transactions Year ended March 31 Year ended March 31 Year ended March 31
2022 2021 2022 2021 2022 2021
Purchases:
Goods:
Zydus Lifesciences Limited 22 - - - - -
Property, Plant and Equipment:
Zydus Lifesciences Limited 250,498 - - - - -
Reimbursement of Expenses paid:
Zydus Lifesciences Limited - 1,382 - - - -
Services:
Zydus Lifesciences Limited 97,619 32,074 - - - -
Zydus Infrastructure Pvt. Ltd. - - - - 90,907 -
Zydus Hospitals and Healthcare - - - - 273 -
Research Pvt. Ltd.
Total 97,619 32,074 - - 91,180 -
Issue of Share Capital
Zydus Lifesciences Limited - 75,000 - - - -
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 33-Related Party Transactions-Continued:

Enterprises significantly influenced

Holding Company Fellow Subsidiary Companies
by Directors and/ or their relatives

Year ended March 31 Year ended March 31 Year ended March 31

2022 2021 2022 2021 2022 2021
Sale of Goods:
Zydus Lifesciences Limited 838,163 - - - - -
Sale of Services:
Zydus Lifesciences Limited 4,506 - - - - -
Finance:
Inter Corporate Loans taken:
Zydus Lifesciences Limited 2,392,000 1,030,000 - - - -
Zydus Healthcare Limited - - 1,950,000 - - -
Total 2,392,000 1,030,000 1,950,000 - - -
Inter Corporate Loans repaid to:
Zydus Lifesciences Limited 3,422,000 - - - - -
Interest Expense:
Zydus Lifesciences Limited 71,575 8,245 - - - -
Zydus Healthcare Limited - - 21,136 - - -
Total 71,575 8,245 21,136 - - -
As at March 31
2022 2021 2022 2021 2022 2021
Outstanding:
Payable:
Zydus Lifesciences Limited 33,759 1,037,622 - - - -
Zydus Healthcare Limited - - 1,969,022 - - -
Zydus Infrastructure Pvt. Ltd. - - - - 20,386 -
Total 33,759 1,037,622 1,969,022 - 20,386 -
Receivable:
Zydus Lifesciences Limited 685,082 9,254 - - - -

b There are no transactions with parties referred to in items 33A[d].

 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 34-Financial Instruments:
Fair values hierarchy:
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a
fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices [unadjusted] in active markets for financial instruments.
Level 2: Inputs other than quoted prices included within Level 1 which are observable for the assets or liabilities, either directly or indirectly.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Financial Assets:
The carrying amounts of other financial assets and cash and cash equivalents are considered to be the approximately equal to the fair values.
Financial Liabilities:
Fair values of loans , other financial liabilities and trade payables etc.are considered to be approximately equal to the carrying values.
Note: 35-Financial Risk Management:
A Financial instruments by category:
INR-Thousands
As at March 31, 2022
FVTPL FVOCI Amortised Cost Total
Financial assets:
Non Current Other Financial Assets - - 9,254 9,254
Cash and Cash Equivalents - - 29,177 29,177
Bank balance other than cash and cash equivalents - - 16,265 16,265
Trade Receivables - - 685,082 685,082
Total - - 739,778 739,778
Financial liabilities:
Borrowings [including current maturities and interest accrued but not due] - - 4,475,902 4,475,902
Lease Liabilities - - 439,413 439,413
Trade payables - - 216,866 216,866
Other Current Financial Liabilities - - 100,107 100,107
Total - - 5,232,288 5,232,288
INR-Thousands
As at March 31, 2021
FVTPL FVOCI Amortised Cost Total
Financial assets:
Non Current Other Financial Assets - - 24,806 24,806
Cash and Cash Equivalents - - 12,112 12,112
Total - - 36,918 36,918
Financial liabilities:
Borrowings [including current maturities and interest accrued but not due] - - 1,037,622 1,037,622
Lease Liabilities - - 438,273 438,273
Trade payables - - 411 411
Other Current Financial Liabilities - - 457,317 457,317
Total - - 1,933,623 1,933,623
B Risk Management:
The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed
to and how the entity manages the risk and the related impact in the financial statements. The Company’s risk management is managed in close
coordination with the board of directors and focuses on actively securing the Company’s short, medium and long term cash flows by minimizing
the exposure to volatile financial markets. The Company does not actively engage in the trading of financial assets for speculative purposes nor
does it write options. The most significant financial risks to which the Company is exposed are described below:
a Credit risk:
Credit risk arises from the possibility that counter party may not be able to settle its obligations as agreed. The Company is exposed to credit
risk from trade receivables, bank
deposits and other financial assets. The Company periodically assesses the financial reliability of the counter party taking into account the
financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual customer limits are
set accordingly.
i Bank deposits : The Company maintains its Cash and cash equivalents and Bank deposits with reputed and highly rated banks. Hence, there is
no significant credit risk on such deposits.
ii There are no significant credit risks with related parties of the Company. The Company is exposed to credit risk in the event of non-payment by
customers.
Adequate expected credit losses are recognized as per the assessments. Major sales made to the Holding Company who contributes to more
than 10% of outstanding accounts receivable as at March 31, 2022.
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 35-Financial Risk Management:-Continued:
b Liquidity risk:
a Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company
maintains flexibility in funding by maintaining availability under committed facilities.
b Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash
flows. The Company takes into account the liquidity of the market in which it operates. In addition, the Company’s liquidity management
policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans. The holding
company has also ensured the company about the funding requirements that may arise from time to time so as to have smooth functioning
of the company.
Maturities of financial liabilities:
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all
non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is not significant.
INR-Thousand
As at March 31, 2022
< 1 year 1-2 year 2-3 year > 3 year Total
Non-derivatives:
Borrowings [including current maturities
and interest accrued but not due] 168,759 1,863,095 1,438,095 1,005,953 4,475,902
Trade payable 216,866 - - - 216,866
Accrued Expenses 11,014 - - - 11,014
Payable for Capital Goods 89,033 - - - 89,033
Lease Liabilities 44,872 45,648 46,218 302,676 439,413
Other 60 - - - 60
Total 530,604 1,908,743 1,484,313 1,308,629 5,232,288
INR-Thousand
As at March 31, 2021
< 1 year 1-2 year 2-3 year > 3 year Total
Non-derivatives:
Borrowings [including current maturities
and interest accrued but not due] 1,037,622 1,037,622
Trade payable 411 411
Accrued Expenses 1,801 1,801
Payable for Capital Goods 455,516 455,516
Lease Liabilities 44,318 44,872 45,648 303,435 438,273
Total 1,539,667 44,872 45,648 303,435 1,933,623
c Foreign currency risk:
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign
exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company’s functional currency.
Foreign currency risk exposure:
The sensitivity of profit or loss and equity to changes in the exchange rates arises mainly from foreign currency denominated financial
instruments:
INR-Thousand
As at March 31, 2022 As at March 31, 2021
Impact on Impact on
Movement Impact on Movement Impact on
Other Other Equity
in Rate PAT [*] in Rate PAT [*]
Equity [*] [*]
USD 4.00% 18 - 7.00% 651 -
USD -4.00% (18) - -7.00% (651) -
Others 2.00% 28 - 5.00% 231 -
Others -2.00% (28) - -5.00% (231) -
* Holding all other variables constant

d Interest rate risk:

Liabilities:
The Company’s policy is to minimise interest rate cash flow risk exposures on financing. As at 31 March 31, 2022, the Company is exposed to
changes in market interest rates through borrowings at variable interest rates.
Interest rate risk exposure *:
INR-Thousand
Movement
Year ended March 31
in Rate
2022 2021
Interest rates +0.50% 22,250 5,150
Interest rates -0.50% (22,250) (5,150)
* Holding all other variables constant
 ZYDUS VTEC LIMITED
Notes to the Financial Statements
Note: 36-Analytical Ratios:
# Ratio Numerator Denominator FY 21-22 FY 20-21 % Change
1 Current Ratio [*] Current Assets Current Liabilities 3.70 0.14 2560.8%
2 Debt-Equity Ratio [$] Total Debt Shareholder's Equity 100.59 24.06 318.0%
Earnings available for debt Finance cost + Repayment of
3 Debt Service Coverage Ratio [**] 1.82 (0.06) -2956.2%
service Debt

4 Return on Equity Ratio [**] Net Profits after taxes Average Shareholder's Equity 3.3% -150.4% -102.2%

5 Inventory turnover ratio Net Sales Average Inventory 2.50 N.A. N.A.
6 Trade Receivables turnover ratio Net Sales Average Trade Receivables 2.38 N.A. N.A.
Net Purchases and Other
7 Trade payables turnover ratio Average Trade Payables 8.45 6.90 22.4%
Expenses
8 Net capital turnover ratio Net Sales Average Working Capital 13.85 - N.A.
9 Net profit ratio Net Profits after taxes Net Sales 0.2% N.A. N.A.
Earnings before interest and
10 Return on Capital employed [**] Average Capital Employed 6.7% -0.2% -3204.5%
taxes
11 Return on investments:
Income from investments Time weighted average of
a Fixed Deposits[^] 5.0% 3.0% 40.5%
during the year investments

[**] During the year commercial production has started and there is profit in the year as compare to loss in previous year.
[*] Due to increase in inventory and trade receivables as commercial production has started during the year.
[$] Mainly due to additional borrowing in the year as compare to previous year.
[^] Mainly due to maturity profile of the fixed deposits placed by the Company.
Note: 37 - Covid 19 Impact:
The World Health Organisation [WHO] declared Covid-19 to be a global pandemic in March 2020. Majority of the countries across the globe were into
partial or full lockdown situation, impacting business operations across various sectors with severe restrictions on movement of people and goods. The
Company has implemented several initiatives across its manufacturing and other business locations including allowing work from homes, social
distancing at work places and proper sanitization of work places etc. for ensuring safety of its employees and continuity of its business operations with
minimal disruption. The Company operates in manufacturing and selling of pharmaceutical products, which are classified as essential commodities and
hence its operations continued to be run with fewer challenges on people movement and supply chain.
As per the current assessment of the situation based on the internal and external information available up to the date of approval of these financial
statements by the Board of Directors, the Company believes that the impact of Covid-19 on its business, assets, internal financial controls, profitability
and liquidity, both present and future, would be limited and there is no indication of any material impact on the carrying amounts of inventories,
goodwill, intangible assets, trade receivables, investments and other financial assets. The eventual outcome of the impact of the global health
pandemic may be different from those estimated as on the date of approval of these financial statements and the Company will closely monitor any
material changes to the economic environment and their impact on its business in the times to come.

Note: 38:
a 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 Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company [Ultimate Beneficiaries] or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b The Company has not received any fund from any person(s) or entity(ies), including foreign entities [Funding Party] with the understanding
[whether recorded in writing or otherwise] that the Company shall directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party [Ultimate Beneficiaries] or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

Note: 39-Disclosure of transactions with Struck off Companies:

The Company did not have any material transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of
Companies Act, 1956 during the current and previous financial year.

Note: 40:
Figures of previous reporting year have been regrouped/ reclassified to conform to current year's classification.

Signatures to Significant Accounting Policies and Notes 1 to 40 to the Financial Statements

As per our report of even date For and on behalf of the Board
For Mukesh M. Shah & Co.,
Chartered Accountants
Firm Registration Number : 106625W

sd/- sd/- sd/-

Karnik K. Shah Ganesh Nayak Vishal Gor
Partner Chairman Director
Membership Number : 129675 DIN – 00017481 DIN – 08787850
Ahmedabad, Dated : May 17, 2022 Ahmedabad, Dated : May 17, 2022