June 18, 2024

To To

The Corporate Relations Department The Listing Department

BSE Limited National Stock Exchange of India Limited
Phiroz Jeejeebhoy Towers, 25th Floor, Exchange Plaza,
Dalal Street Bandra Kurla Complex, Bandra (East)
Mumbai – 400001 Mumbai – 400 051

Code: 540222 Code: LAURUSLABS

Dear Sirs,

Sub: Notice of the 19th Annual General Meeting and the Annual Report FY 2023-24 as per Regulation 34 of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (‘SEBI (LODR)’)
Regulations, 2015.

Pursuant to Regulation 34 of SEBI (LODR) Regulations, 2015, please find enclosed the Notice convening the 19th Annual
General Meeting (AGM) of shareholders and the Annual Report for the financial year 2023-24 which will be circulated to the
shareholders through electronic mode for the AGM to be held on Thursday, July 11, 2024 at 03.00 PM (IST) through video
conference (VC).

Click here to download the Notice of AGM.

Click here to download the Annual Report.

The Notice and the annual report will also be made available on the Company’s website at www.lauruslabs.com.

The Schedule of events are as follows:

Thursday, July 11, 2024;

Date and Time of AGM
3:00 P.M. (IST)
Eligibility date for participation in the AGM July 04, 2024
Monday, July 08, 2024;
Remote e-voting start date and time
9:00 A.M. (IST)
Wednesday, July 10, 2024;
Remote e-voting end date and time
5:00 P.M. (IST)
Website of NSDL for remote e-voting and participation in the
https://www.evoting.nsdl.com/
AGM through VC for Non-Individual Shareholders
Website for registration in IDeAS Portal for Individual https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
shareholders holding demat with NSDL for remote e-voting
and participation in the AGM through VC
Website for registration in Easi/Easiest Portal for Individual
shareholders holding demat with CDSL for remote e-voting https://web.cdslindia.com/myeasinew/Registration/EasiestRegistration
and participation in the AGM through VC

This is for your information and records.

Thanking you,
Yours sincerely,
For Laurus Labs Limited
VENKATESWAR REDDY Digitally signed by VENKATESWAR
REDDY GOGIREDDY
GOGIREDDY Date: 2024.06.18 19:09:11 +05'30'
G. Venkateswar Reddy
Company Secretary &
Compliance Officer

Encl: As above
Chemistry for
Be�er Living

Chemistry for Better Living

Integrated Annual Report 2023-24

Laurus Labs Limited

Integrated Report 2023 - 24
Chemistry for Better Living
At Laurus Labs, we use chemistry not just the changing needs of the healthcare
as a science, but as a means to enhance industry.
and better the lives of individuals With a commitment to redefining
worldwide. We firmly believe that science the intersection of innovation,
has the inimitable potential to impact sustainability, and healthcare, we have
human health and the environment. This initiated thoughtful expansions in our
past year has been pivotal in actualising operational and strategic endeavours,
our belief. with resources directed toward areas
We launched NexCAR19, India’s that hold transformative potential
pioneering CAR-T cell therapy for B-cell for healthcare. As we move forward,
malignancies, advancing the frontiers ‘Chemistry for Better Living’ remains
of medical science. The increase in our guiding principle, steering our
fermentation capacity at our Mysore efforts to meet the scientific challenges
facility has strengthened our biotech of today while anticipating and shaping
segment, ensuring robust support for the solutions of tomorrow.

Contents
Introduction Year in review Creating value for stakeholders
FY24 highlights 01 Chairman’s statement 14 ESG approach 46
About the Report 02 CEO’s statement 16 Employees 48
Business review 18 Communities 52
Manufacturing highlights 26 Customers 56
Innovation highlights 30 Suppliers 58
Environment 60
Expanding horizons Investors 66
Read more on page 32

Corporate overview Strategic review Conducting business responsibly

Who we are 04 Our stakeholders 34 About the Board 74
Where we operate 07 Materiality 36 Board of Directors 76
What differentiates us 08 Operating environment 40 Management team 79
How we create value 10 Strategic objectives 42 Governance approach 82
Risk management 83
Pushing the frontiers of
cancer care
Read more on page 12
LAURUS LABS LIMITED

Established in 2005, we are FY24 highlights

a leading research-driven
integrated pharmaceutical
company. Our operations span Financial highlights
four key segments: Contract
Development and Manufacturing
(CDMO) – which includes D5,041 cr D798 cr
clinical and commercial supply Revenue from operations EBITDA
of human health and animal
health APIs and intermediates,
crop science ingredients and D161 cr 19%
specialty ingredients for dietary Profit after tax Dividend payout ratio
and cosmetic industries,
Generics Finished Dosage
Form (FDF), Generics Active
Pharmaceutical Ingredients (APIs), Operational highlights
and Biotechnology.
Partnerships with
223
6 Patents granted
out of the
top 10 innovators

4.8% 7,762 KL
Statutory Reports
R&D spends to revenue Reactor volume
Management Discussion 86
and Analysis
Boards’ Report 96
Annexure 102
Report on 115 ESG highlights
Corporate Governance
Business Responsibility &
Sustainability Reporting
132
284,801 KL 3,469,230 GJ
Water recycled Energy consumed

Financial Statements
Standalone
Consolidated
166
228 6,735 25+
Notice 292 Employees Community programmes
Annexure 303
supported
Unit-wise KPIs 304
GRI Index 306
About the Report
Our Integrated Annual Report for FY24 offers a comprehensive overview of our financial
and non-financial progress, governance structures, key issues, risk management,
opportunities, strategic direction, and future outlook. It details how our vision, purpose,
strategy, and business model are interconnected to generate value for stakeholders in the
short, medium, and long term.

Integrated thinking at Laurus Labs

Integrated thinking shapes our strategic direction, governance, and future opportunities, ensuring consistent value
creation for all our stakeholders.

We are led by
Our vision Our mission

Building on capitals
F Financial capital M Manufactured capital I Intellectual capital

Social and
H Human capital S relationship capital N Natural capital

Enabled by strategy
Innovate Excel Expand

Read more on page 42

Supported by our values

Knowledge Innovation Excellence

Care Integrity

Read more on page 40

Delivering consistent value for stakeholders

1 Employees 3 Communities 5 Customers

2 Suppliers 4 Environment 6 Investors

Read more on page 46 - 71

2 Chemistry for Better Living

Scope of reporting
Reporting period
This Report is published for the period April 1, 2023, to
March 31, 2024.

Reporting boundary
This Report covers ESG performance of six manufacturing plants
and one R&D facility. The financial performance is presented on
a consolidated level.

Report alignment
Our Integrated Annual Report FY24 adheres to the principles and
guidelines set forth by the International Integrated Reporting
Council’s (IIRC) Framework. It has been prepared with reference
to Global Reporting Initiative (GRI) Standards. By aligning with
these reporting frameworks, we aim to provide our stakeholders
with a comprehensive overview of our environment, social, and
governance (ESG) KPIs, targets, and their impact. Through this
Report, we strive to showcase the value we bring to the healthcare
industry and our dedication to uplift society.

Board responsibility statement

The Board firmly believes that this Report is a fair representation
of the Company’s financial, non-financial, sustainability and
operational performance and addresses all material topics
relevant to the Company for FY24. The Board acknowledges
that the contents of this Report have been prepared by the
respective functions and businesses under the guidance of the
senior management.

Assurance
The management has conducted a thorough examination of the
information and statements provided in this Report to maintain
their accuracy and reliability. This review process was undertaken
to ensure that all the facts and qualitative information
contained within this Report were presented in an unbiased and
transparent manner.

Feedback and queries

We invite you to share your valuable insights, suggestions, and
questions regarding our Report, which will help us enhance
our future reporting endeavours. You can communicate your
suggestions and queries to the email id esg@lauruslabs.com.

Annual Report 2023-24 3

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Who we are
Laurus Labs embarked on a mission to redefine the pharmaceutical industry, initially
focusing on contract research and manufacturing services (CRAMS). Evolving rapidly,
we carved a niche in the antiretroviral (ARV) domain, later maturing into a globally
recognised active pharmaceutical ingredient (API) producer and further into an
integrated pharmaceutical company, including biotechnology expertise.
We are committed to leveraging core capabilities in chemistry, formulation, and custom
synthesis to drive quality and affordability in the pharmaceutical industry. Today, we
are a research-driven manufacturing company servicing pharmaceutical, animal health,
cosmetic and dietary supplements, and crop science customers.

Our Vision Our Mission

To be a leading player in offering integrated We constantly strive for innovation to enhance
solutions for global pharmaceutical needs quality and to provide affordable, integrated
in creating a healthier world pharmaceutical solutions to facilitate wellness
and well-being across the globe

Values
At Laurus Labs, the five-spoke wheel enabling the journey of the Company consists of these values.

Knowledge Excellence Innovation Care Integrity

Seek to learn Scale new peaks in Strike out on new Be diligent, safe, Stand up always for
constantly to stand everything we do paths to go farther and sensible what is right
out from the crowd

12
Manufacturing sites
10 bn
Tablets and capsules
5
State-of-the-art
300+
Customers worldwide
R&D labs in India

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CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Business segments

CDMO synthesis
Our custom synthesis division - Laurus Synthesis - provides
drug development and manufacturing services to global
pharma, crop science, animal health, specialty ingredients,
and biotech firms, with facilities in Hyderabad and
Visakhapatnam. Key markets include the US, EU, and Japan.

Offerings
• Commercial scale contract manufacturing
• Clinical phase supplies
• Analytical and research services

H922 crores
Revenue

Generics API
With the largest HiPotent API capabilities in India, we are
world’s leading third-party API supplier for antiretrovirals.
Our portfolio spans ARV, oncology, steroids, hormones
and cardiovascular APIs, supplied to the top global generic
pharmaceutical companies.

Offerings
Therapeutic areas include:
• ARV
• Hepatitis C
• Cardiovascular
• Anti-diabetic
• Anti-asthma
• Gastrointestinal
• Oncology
• Ophthalmic products

H2,545 crores
Revenue

Annual Report 2023-24 5

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Who we are

Generics FDF
Our Generics FDF business focuses on oral solid
formulations. Central to our innovation is the integrated
API/FDF Development at a large scale.

Offerings
Therapeutic areas include:
• ARVs
• Anti-diabetic
• Cardiovascular
• Proton-Pump Inhibitors (PPIs)

Biotechnology
H1,414 crores Laurus Bio offers comprehensive services from clone and
Revenue strain engineering to large-scale production, supporting
clients across the microbial precision fermentation
spectrum. Our solutions serve sectors like regenerative
medicine, vaccines, cultured meat, and more.

Offerings
• Nutraceuticals (natural ingredients)
• Dietary supplements
• Cosmeceutical products
• Alternate food proteins

H160 crores
Revenue

Revenue contribution In the spotlight – Laurus Bio

Our Bio division advances with strong momentum in
precision fermentation and biocatalysis – a resilient
portfolio that promises continuous growth and
technological prowess in life sciences.

80+
Global customers benefitted with our
animal‑origin free (AOF) r-protein solution

45+
Global customers engaged for CDMO services

20+
18% CDMO synthesis 28% Generics FDF
51% Generics API 3% Biotechnology

Countries served

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 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Where we operate
Collaborating with the world’s top generic and innovator pharmaceutical companies, we leverage expansive
growth avenues in manufacturing, services, and market development across North America, Europe, and LMICs.
As a preferred CRAMs partner, we pride ourselves on our rigorous quality, EHS standards, flexibility in production
scale, exemplary project management, and extensive experience in contract manufacturing.

80+ 61%
Countries where our Revenue contribution from
products are distributed exports

Revenue share by region

North America Europe ROW

17% 27% 56%

Annual Report 2023-24 7

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

What differentiates us
Our distinction in the pharmaceutical industry is driven by our
uncompromising dedication to leadership, innovation, and
sustainable practices. Our facilities, lauded for manufacturing
excellence, uphold the highest standards of quality and are
supported by a world-class manufacturing, quality and research
and development team.

Leadership in APIs Manufacturing Strategic

We are recognised as the global excellence partnerships
leader in the supply of APIs for ARV,
Our advanced facilities in Our business partners comprise
oncology, and hepatitis C, serving
Visakhapatnam, Bengaluru and top generic and innovator
rapidly expanding markets in Latin
Hyderabad, which are approved pharmaceutical companies
America, South-east Asia, and
by global regulatory bodies, reflect around the world. These enduring
Sub-Saharan Africa. Additionally,
our approach towards maintaining relationships are proof of our
more than 1/5th of our workforce
uniform, standardised quality reliable and effective service
is dedicated to research and
across all operations. Moreover, offerings. Additionally, we have
development. This positions us at
our capability to scale production made investments in CDMO
the forefront of innovation within
from grams to multi-tonnage, segment, which will provide a higher
high-growth therapeutic areas,
coupled with our leadership in cost return on investment and fostered
enabling us to achieve global
and quality, enables us to retain new customer engagements.
leadership position in select APIs.
major global clients. Our top 10
customers contribute to 45% of our
total revenue.

1,101 12 Serving

Research scientists working Manufacturing facilities with 6

in R&D across functions combined 7,750m3 + capacity in out of the top 10 innovators
API, 10 bn units in drug product
and 240 KL in fermentation

8 Chemistry for Better Living

CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Experienced Innovation in Commitment to

management process chemistry ESG
team We utilise environment friendly and Our focus on responsible
cost-effective processes for product supply chain management and
Our organisation is driven by an
development and commercial climate initiatives enhances our
experienced management team
production, ensuring efficiency performance on the ESG front.
with global industry insights, which
across our operations.
fuel our organisational and organic
growth. Since our inception, we
have demonstrated consistent
financial and operational growth,
which point towards our robust
operational framework and
strategic planning capabilities.

86% D241 crores 9%

Of the Board has R&D investment Renewable energy
30+ years of experience consumption

Annual Report 2023-24 9

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

How we create value

Capital Input Value creation process

F
Vision
Financial capital • Capex expenditure: H700 crores
• Multi-year agreement with To become a leading player in offering integrated
Enhancing shareholder value through solutions to global pharmaceutical needs in creating a
strategic R&D and manufacturing various clients
healthier world.
investments, boosting global presence • Employee benefit expense:
and capabilities, and broadening our H639.93 crores
product range

Values
I
Intellectual capital • R&D investment: H241 crores

Utilising top-tier capabilities for • 5 R&D centres Knowledge Innovation

high-quality solution development, • 2,458 R&D and quality
securing patents, and enhancing our team strength
knowledge base

Excellence Care

M
Manufactured capital • 12 manufacturing sites, including Integrity
bio division
Boosting operational efficiency
through investments in • Approvals from WHO, USFDA, PMDA,
manufacturing and adopting cutting- NIP, KFDA, and BfArM
edge technologies • 1,113 quality audits
Segments
• 100% pharmaceutical manufacturing
sites are cGMP compliant

CDMO Generics API

custom synthesis
S
Social and relationship • CSR spend: H23.31 crores
capital • Total suppliers: 800+
• 121 customer audits Generics FDF Biotechnology
Maintaining relationships with
stakeholders, including regulators

Strategy
H • Emphasis on integrated offering and R&D‑led
• Total permanent employees: business diversification
Human capital 6,700+
Cultivating a highly skilled team • 7.5% women in the workforce • Invest in disruptive innovation
through targeted training and
aligning their expertise with our vision • 64,977 hours spent on health and
safety training • Strong product portfolio

• Robust compliance and quality culture

• Advance and evolve sustainable R&D platform

N • Build and optimise large-scale capacities while

investing in high potential businesses
Natural capital
Safeguarding natural resources by • Diversified customer base and
• 192,098 GJ of energy from
adopting sustainable sourcing and renewable sources market expansion
optimising operations
• 3,362,273 GJ of energy from non- • Leverage significant technology overlaps and
renewable sources
accelerate emerging services
• 964,759 kL of water consumed

10 Chemistry for Better Living

CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Output Outcome Stakeholders impacted

• Revenue: H5,041 crores Enhanced shareholder Employees

• EBITDA: H798 crores returns through a disciplined
approach to capital allocation, Customers
towards sustainable growth Investors
and strengthening corporate
governance practices in
our operations

• 223 patents granted Contract manufacturing Employees

• 82+ products launched in drug product (DP) and drug offering customised solutions,
patent portfolio growth, and Suppliers
substance (DS) across diverse therapeutics
expanded expertise Customers

• Gross block: H5,628 crores State-of-the-art large-scale

Customers
• Reactor capacity: 7,750 m3 production sites and R&D
capabilities, supported by Investors
• Zero incidents of product recall in the last five years increased efficiency through
• 131 GJ energy saved by installing movement sensors technological advancements in
across our facilities continuous manufacturing

• 300+ clients served Strengthened trust and Employees

• H1,972.76 crores revenue from domestic customers collaboration with all stakeholders,
Communities
including regulatory bodies
Customers

Investors

• Certified as Great Place to Work A more skilled workforce aligned Employees

• 100% of employees received career with organisational goals through
ongoing development Suppliers
development reviews
• Healthy and skilled workforce

• ‘BBB’ rated by MSCI ESG Rating

Reduced environmental impact Communities
• Silver rating by EcoVadis Sustainability Rating through sustainable practices and
• S&P Global ESG Score of 59 (vs. PY: 43) operational efficiency Environment
• 198,782 tCO2 of Scope 1 emissions Investors
• 176,678 tCO2 of Scope 2 emissions
• 87,212 tCO2 of Scope 3 emissions
• 22,883.67 tons of waste recycled and reused
• 10% of incinerable hazardous waste sent for co-processing
• More than 1,550 trees planted during the year

Annual Report 2023-24 11

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Pushing the frontiers of

cancer care

Laurus Labs, in partnership with ImmunoACT

and backed by cutting-edge research from
IIT Bombay, announced the launch of
NexCAR19, India’s first CAR-T cell therapy.
Approved by the Central Drugs Standard
Control Organisation (CDSCO), NexCAR19
represents a monumental step in the
treatment of relapsed or refractory B-cell
lymphomas and leukaemia.
 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

NexCAR19: A beacon of hope

Developed entirely in India, NexCAR19 is the first
domestically developed and produced CAR-T cell therapy.
This treatment has shown promising results in clinical
trials, offering a substantial overall response rate of
approximately 70% and demonstrating a favourable
safety profile devoid of common severe side effects like
cytokine release syndrome (CRS) and neurotoxicity.

Affordable and accessible

treatment
With superior efficacy and emphasis on affordability and
accessibility, NexCAR19 has made advanced treatment
options available in resource-constrained settings. This
achievement places India among a select group of
nations capable of developing and delivering advanced
therapies like CAR-T – bridging the gap in global
healthcare disparities.

Increased equity Under construction: a second

ownership to GMP integrated CAR-T &
approximately Lentiviral Vectors facility
spanning over
34%
in ImmunoACT 50,000 sq. ft.
Annual Report 2023-24 13
LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Chairman’s statement
Dear stakeholders,
FY24 was a pivotal year for your Company as we reinforced our
position in the pharmaceutical industry while adhering to our
commitment to Environmental, Social, and Governance principles.

Our ability to rapidly scale Industry landscape

production and our extensive The pharmaceutical industry in India continues to evolve rapidly,
its growth driven by an increasing demand for healthcare services,
portfolio of active pharmaceutical a rise in chronic diseases, and the country’s critical role as a global
ingredients (APIs) and finished supplier of affordable medicines. The government’s support
dosage forms (FDFs) positions through policies such as Ayushman Bharat Yojana, which aims to
us as a key player in the global provide accessible healthcare to millions of citizens, further boosts
the sector’s growth prospects.
pharmaceutical supply chain. As
a result, we are well-placed to At Laurus Labs, we are strategically positioned to capitalise on
these emerging opportunities. Our robust R&D capabilities,
seize opportunities arising from state-of-the-art manufacturing facilities, and commitment to
supply chain de-risking driven by quality and innovation ensure that we can meet the growing
geopolitical factors. demand for high-quality pharmaceuticals, both in India and
abroad. Our ability to rapidly scale production and our extensive
portfolio of active pharmaceutical ingredients (APIs) and finished
dosage forms (FDFs) positions us as a key player in the global
pharmaceutical supply chain. As a result, we are well-placed to
seize opportunities arising from supply chain de-risking driven
by geopolitical factors.

The industry’s emphasis on green chemistry and renewable

130
energy sources has resulted in a sharper focus on minimising
carbon footprint and waste generation in pharmaceutical
manufacturing. Socially, it is ensuring equitable access to
Quality audits in FY24 medicines, investing in community health programmes, and
maintaining high standards in employee welfare and safety.
For the pharma sector, governance structures that promote

2,458
transparency, ethical practices, and robust risk management are
essential in navigating regulatory requirements and maintaining
the confidence of investors, regulators, and the public.
R&D and quality team Commitment to ESG
We believe that sustainable business practices are integral to
our long-term success. Our commitment to ESG is reflected
in our adherence to stringent quality systems and global
regulatory standards. We have made significant progress on our
Environmental, Health, and Safety (EHS) agenda. Our efforts
include implementing renewable energy projects, and committing
to the Science Based Targets Initiative (SBTi). These initiatives
reduce our environmental footprint and align with our goal of
sustainable and responsible growth.

14 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

People and culture Closing remarks

Our success is deeply rooted in the dedication and expertise of In conclusion, I would like to extend my gratitude to our
our employees. With a team of over 6,700 employees, including shareholders, customers, employees, and partners for their
2,458 in R&D and quality, we foster a culture of innovation and continued support and trust in Laurus Labs. I am confident that
continuous improvement. We prioritise talent development and we will continue to drive innovation, uphold the highest standards
employee well-being, ensuring that our workforce is equipped to of quality and sustainability, and achieve the vision of improving
meet the challenges of the evolving pharmaceutical industry. global health outcomes. I extend my best wishes to the Company
for its future endeavours.
As I complete my second term as an Independent Director on
the Board, we demonstrated our commitment to nurturing
the next generation of leaders within Laurus Labs. In line with
effective succession planning, we reorganised our Board of Sincerely,
Directors, appointing Dr. Ravindranath as the Non-executive
Chairman, effective May 18, 2024. This transition ensures that we Dr. M. Venu Gopala Rao
comply with the regulatory mandates for tenure of Independent Non-Executive Chairman and Independent Director
Directors and continue to benefit from experienced leadership
while grooming new talent to take on increased responsibilities.

Annual Report 2023-24 15

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

CEO’s statement
Dear stakeholders,
It is with great pleasure that I address you, reflecting on the
journey of growth and learning that we have undertaken over the
past year. This address holds a special place in my heart because
it is more than a report on our financial performance. In fact,
Your Company continues to it allows me to try and put in words my passion for chemistry
advance on its committed capacity and revisit the path that we set out on in 2006. Since then, we
have moved ahead with the clear intention to drive better living
building, enhance its capabilities, through chemistry.
and improve asset utilisation
FY24 was a year of recalibration and thoughtful innovation. Our
efficiency. We invested I700 crores R&D‑led commercial strategy continued to yield impressive results
in FY24, largely towards expanding and our integrated model allowed us to navigate an environment
our CDMO/API service capabilities. characterised by geopolitical uncertainties.
Our dedicated R&D centre (small
Performance over the year
molecules and high potent) is
Your Company achieved a 9% growth in revenue in FY24,
under construction and set to be reaching `5,041 crores. This was driven by strong performances
commissioned by June 2024. in formulations, CDMO, Onco APIs, and the Bio division.
Gross margins were resilient at 52%, while EBITDA margins
were 16% due to increased R&D spending and investment in
growth projects.

The Formulations division grew by 24% y-o-y to `1,414 crores,

benefiting from volume share expansion in developed markets
and steady pricing trends in the ARV sector. The Generic APIs
segment saw revenues of `2,545 crores, with the ARV APIs
maintaining steady momentum. We also continued to lead in

16 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

first-line HIV treatments. Further, oncology API witnessed strong Quality commitment
demand and saw a 27% growth, while other APIs were sluggish We are committed to advancing our quality systems and meeting
following competitive pricing pressure despite strong CMO stringent regulatory standards. In 2024, we underwent over 130
contract deliveries. quality audits and successfully passed all inspections without
Our CDMO division generated `922 crores in sales amid critical findings. Our ESG and EHS initiatives are progressing well,
an increase in RFPs from Big Pharma and leading biotechs. supporting our long-term success.
The Bio division grew by 28%, reaching `160 crores as we
Positioned for consistent growth
expanded our capabilities in enzyme engineering and planned
larger-scale operations in Vizag and Mysore. Furthermore, Your Company continues to advance on its committed capacity
our R&D investments, comprising 4.8% of sales, focused on building, enhance its capabilities, and improve the efficiency of
enhancing our pipeline. asset utilisation. We invested `700 crores in FY24, largely towards
expanding our CDMO/API service capabilities. Our dedicated R&D
Strategic advances and collaborations centre (small molecules and high potent) is under construction
We strode across various pipeline projects and enhanced and set to be commissioned by June 2024. Additionally, two
our technology and manufacturing platforms. Our business GMP production plants for our emerging Animal Health business
development efforts paid off, resulting in a multi-year CDMO have started production, while two other units are in the build-
contract with a leading Crop Science Company. Additionally, our up phase. We have also commenced the $40 million Phase
long-standing collaboration with Krka blossomed into a joint I construction of a new GMP-grade microbial fermentation
venture called Krka Pharma Pvt. Ltd., strengthening our position commercial facility in Vizag. This state-of-the-art facility will
in the market. This partnership promises significant synergies. enable us to meet the demand for intermediates and complex
With a phased investment of up to €50 million, the collaboration semi-synthetic project delivery to global innovators.
will enhance our manufacturing capabilities with a new cGMP Our leadership in specialised segments like ARV and oncology
facility in Hyderabad, expand our product portfolio, and open APIs is further solidified through continuous innovation and
access to untapped global markets outside the EU. By leveraging by leveraging our integrated manufacturing model - which
Krka’s global expertise and your Company’s innovative ensures efficiency and cost-effectiveness. Our focus remains
and manufacturing prowess, the venture aims to produce on scaling our high-potential, customer-centric CMO/CDMO
superior pharmaceutical products and drive long-term growth business and utilising our strategic capex initiative to enhance
and stability. scientific capabilities.
Additionally, we have deepened our cooperation with major
Outlook
CDMO clients, focusing on green and sustainable technology
platforms. High-pressure hydrogenation, continuous flow Looking ahead, we are entering FY25 with a solid foundation.
chemistry, and biocatalysis are now integral parts of our Our focus is on unlocking sustainable and profitable growth
operations. We are tackling complex chemistry projects by enhancing our technology breadth and commercial
and large-scale biocatalysis with our in-house enzyme excellence. We aim to improve our operating margins, increase
manufacturing capabilities, setting the stage for impactful asset utilisation, and deliver on late-phase commercial NCE
growth in the years to come. opportunities. While we anticipate some pricing headwinds in
parts of our API portfolio, we expect to offset these with volume
Disruptive investments and milestones increases and cost-improvement measures. Our investments in
Our investments in Cell and Gene Therapy (CGT) are making future are designed to create long-term value for all stakeholders.
positive impact. Our associate company, ImmunoACT, Thank you for your continued support. We are excited about
successfully launched NexCAR19 in India, a groundbreaking what the future holds and look forward to achieving more
treatment for certain cancers. Moreover, we are constructing milestones together.
a second large GMP - integrated CAR-T facility to make this
treatment more accessible and affordable. Our partnership with With kind regards,
IIT Kanpur has led to the construction of a GLP, GMP plant for viral
vectors and gene therapy products, with phase one expected to
be operational by the end of Q3 FY25. Dr. Satyanarayana Chava
Executive Director and CEO

Annual Report 2023-24 17

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Business review
In this section, we delve into strategic endeavours and achievements that have shaped
our position as a leader in the pharmaceutical industry. We also examine the integration
of cutting-edge research and development efforts into our product offerings.

CDMO custom synthesis

24%
crores
In Asia, pharmaceutical companies are challenged to stand
out in a crowded and fragmented market; success often hinges H922

on leveraging unique capabilities, quality, and efficiency.

Additionally, the rising chemical complexity of products H743^ y-o-y
necessitates a mastery of intricate chemical synthesis and
production processes to maintain a competitive edge. Moreover,
there is a growing emphasis on faster time-to-market strategies.
Streamlining research and development, production, and
regulatory pathways is crucial to reducing the duration from
concept to commercial availability.

At Laurus Labs, we ensure preparedness against such challenges.

Our offering encompasses an integrated solution spanning
clinical to commercial drug substance (DS)/drug product
(DP), with specialisation in high-potency compounds such as
FY23 FY24
oncology, hormones, and steroids. Leveraging a bio-catalysis
and continuous flow chemistry platform enhances our efficiency
and innovation, allowing us to offer speed and flexibility in our ^ Excluding material Purchase Order (PO) supplies to Big Pharma; reflected in
CDMO-Synthesis segment.
services. Paramount to our approach is intellectual property (IP)
protection, ensuring our clients’ proprietary assets are securely
managed and supported throughout the product lifecycle.

Strategic priorities
• Enhance our CDMO offerings by leveraging a broad
range of capabilities to penetrate new markets such
as animal health and ag-chem and build diversified
annuity business model
• Advance semi-synthetic manufacturing solutions
combined with fermentation techniques towards
green chemistry and improving sustainability
• Invest in large-scale, specialised facilities designed for
long-term manufacturing partnerships
• Committing to a $100 million capital expenditure for
the development of a state-of-the-art R&D centre
and manufacturing infrastructure for small molecules
and fermentation

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FY24 highlights FY25 plans

Core business sales Our focus is on

increased by 24% expanding our CDMO
without PO business capabilities to include
a diversified portfolio
Witnessed a continued beyond the momentum
increase in demand from in new chemical entity
both existing and new (NCE) clinical projects.
clients, in addition to We are on schedule
strong customer interest in with the construction
of animal health CDMO
our bio-catalysis and flow manufacturing blocks,
chemistry platforms which are nearly fully
contracted with a major
pharma partner. The ag-
Managing over 70 active projects across various chem site (LSPL-U4) is in
phases (I, II, and III) with ongoing commercial the preparatory phase,
supplies for 10 projects, including 4 APIs and several with the MSA already
in place. Additionally,
intermediates our R&D centre is set
to become operational
A new animal health Increased the commer- during Q2 FY25, ensuring
increased resource
drug substance (DS) cial pipeline with several allocation towards
commenced commer- late-phase new chemical additional RFPs and
cial validation and entity (NCE) projects while collaborations.
further expansion of enhancing business devel-
animal health drug sub- opment efforts towards
stance manufacturing securing early-stage
block are underway projects

Strong RFP flows from

Big Pharma and large
biotech companies,
alongside delivery on
multiple RFPs involving Signed a multi-year Mas-
higher chemical ter Service Agreement
complexity (MSA) with a leading crop
protection company
Annual Report 2023-24 19
LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Business review

Generics API

-2%
The highly fragmented Generics API market is growing at crores
13.5%+, driven by the increasing demand for reliable and
high-quality APIs, and pharma companies’ strategy to de-risk
their supply chains from over-reliance on a single source. We are
well‑positioned to capitalise on the growth opportunity, offering H2,609 y-o-y
end-to-end API solutions, covering both small and complex H2,545

molecules, including high-potency APIs (HP APIs) and peptides.

With a portfolio of over 80 APIs, of which 40% are differentiated,

our approach integrates green chemistry concepts. Our
capabilities are enhanced by large manufacturing sites with over
7,750+ m3 capacity, positioning us as a leader in the API domain.

FY23 FY24

Strategic priorities
• Prioritise cost leadership and sharpening our
commercial strategy focus
• Forge new CMO partnerships targeting both
established and high-growth molecules,
particularly in the diabetic/CV, gastro, steroids and
hormones segments
• Optimise new capacity utilisation in the mid-term
for efficiency
• Ensure sufficient capacity to fully leverage
market opportunities
• Strengthen our leadership in the production of highly
potent APIs, particularly in the oncology sphere

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FY24 highlights FY25 plans

The overall performance Achieved strong We are focusing on

declined by 2%, with volume growth across leveraging our large-scale
steady growth in ARV our franchise, with capacity to capitalise
on the dual sourcing
API at 1% and a positive continued scaling up of
trend. Additionally, we
demand increase in CMO partnerships are intensifying business
oncology by 27%. The development activities
non‑ARV/ non‑oncology for APIs that have been
API revenues declined commercially validated
and working to expand
by 22% due to
our market share for
lower demand and existing commercial APIs.
competitive pricing

Accelerated efforts to
increase efficiency,
effectively mitigating
the impact of inflation
and price pressures

Increased development and commercial scale

capacity by 30% over the last 24 months, with
a strong emphasis on capacity expansion

Observed stable volume Multifold capacity

trends in ARV, with expansion in oncology,
an expanding global underpinned by favourable
customer base and demand dynamics
improved pricing for
select products

Annual Report 2023-24 21

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Business review

Generics FDF

24%
The pharmaceutical market is experiencing a highly competitive crores
environment, especially in the 1L ARV treatment space. H1,414
Additionally, there has been an easing of raw material pricing
pressures, allowing companies to offer more competitive pricing
models and potentially improved profit margins. Moreover, there H1,140 y-o-y
is a marked increase in outsourcing activities as companies strive
to optimise costs and access specialised capabilities. This shift is
indicative of a broader move towards more collaborative business
models, focusing on core competencies while leveraging external
expertise to enhance operational efficiencies.

We are primed to benefit from potential growth in the market.

Our expertise spans oral and complex dosage forms – tablets,
capsules and sachets – and orally disintegrating films (ODF),
supported by modern and efficient manufacturing lines. We
excel in development, analytical, and regulatory domains, FY23 FY24
complemented by integrated packaging solutions and
serialisation, ensuring a seamless and efficient production process
from concept to market.

Strategic priorities
• Enhance scale and efficiency using an API+
integrated approach for quality formulations and
on‑time supplies
• Target expansion in CMO opportunities within the
diabetic/cardiovascular portfolio
• Strengthen ARV leadership by building an expansive
portfolio (extensive pipeline and new market access)
to counter regime change risk
• Grow non-ARV segment and maximise US/Europe
pipeline potential

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FY24 highlights FY25 plans

Increased by 24%, Multiple US product We are expanding

boosted by stabilis- launches and increased our capabilities with
ing ARV business and CMO activity supported new technologies like
spray dried dispersion,
continued volume-led higher asset utilisation
continuous tablet
growth in the developed manufacturing
market portfolio. Market lines, alongside
outlook remains stable ODF and advanced
labelling, packaging
and serialisation for
commercial products.
We are also doubling
Joint venture with KRKA our oral dose capacity
aims to enhance the with additional
generic portfolio and FDA approvals and
planning for significant
market presence
expansion to cater to
contract manufacturing
opportunities.

Stabilised ARV business, pursuing cost optimisa-

tion, portfolio breadth expansion (complex oral/
injectables), and newer market potential to sustain
leadership

Filed 8 product dossiers

and received 9 approvals,
cumulatively achieving
80 product filings and 61
approvals across the US,
Canada, and Europe, sig-
nalling strong regulatory
competency in aiming
for global product devel-
opment

Annual Report 2023-24 23

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Business review

Biotechnology

28%
The emergence of alternate protein sources, though still in crores
nascent stages, holds promising growth potential, driven H160
by sustained interest and long-term potential in this space.
However, challenges such as inefficient yield economics persist,
necessitating innovative approaches to improve production H125 y-o-y
efficiency and output. Additionally, there is an escalating demand
for molecules derived from fermentation processes, fuelled
by their versatile applications across pharmaceuticals, food,
and cosmeceuticals.

Our competitive advantage stems from the fact that our portfolio
consists of a range of innovative solutions. These include precision
fermentation, animal-origin-free recombinant proteins for food
applications, specialised cell-culture media, a cutting-edge bio-
catalysis platform, and manufacturing processes adhering to
good manufacturing practices (GMP). These capabilities enable FY23 FY24
us to deliver sustainable, high-quality solutions across the food
and biotechnology industries.

Strategic priorities
• Broaden the application of enzymes/bio-catalysis in
small molecule CDMO
• Tap into emerging markets within the nutrition
and health/personal care sectors, exploring new
growth avenues
• Improve productivity and yields through advanced
technologies and optimised processes
• Undertake strategic expansion in large-scale
fermentation and development processes, aligning
with long-term sustainable growth objectives

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FY24 highlights FY25 plans

CDMO service drives Strong demand We will continue to

a 28% growth, sup- growth for CDMO expand our biocatalysis
porting biocatalysis services, accompa- platform for clinical
and commercial drug
expertise in select small nied by the expan-
substance projects while
molecule projects. sion of our customer exploring opportunities
De-bottlenecking of the base in semi-synthetic
R-2 downstream opera- biology. Additionally, we
tions has been brought will leverage the new
microbial fermentation
online to service more
facility in Vizag to meet
projects and customers growing demand. Our
investment strategy
will focus on enhancing
infrastructure and
Acquisition of an optimising project
additional 13.2% stake delivery across clinical
and commercial stages.
in Laurus Bio, reflecti- We also aim to enhance
nag confidence in the our presence in the
technology platform’s enzyme technology
potential both internally market following our
and for external partner increased stake in
Laurus Bio.
projects

Announced a $40 million investment in microbial

fermentation to enhance complex CDMO project
delivery – ground broken at Vizag

Annual Report 2023-24 25

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Manufacturing highlights
Our excellence in manufacturing is Capacity
rooted in our commitment to quality, With 12 manufacturing facilities – 8 operating facilities
innovation, and sustainable practices. in Visakhapatnam, a drug substance unit and a kilo lab in
Hyderabad, and two bio facilities in Bengaluru – which are
Our state-of-the-art manufacturing accredited by global regulatory agencies, including the US
assets and the ‘One World, FDA and WHO, we ensure the highest quality standards in our
One Quality’ focus ensures that we production processes. We have invested $100 million in ongoing
meet the highest standards across all CDMO projects, including a dedicated AH facility (operational
from November 2023). Additionally, our R&D centre, focusing
our facilities. on small molecules and high potent products, is scheduled for
Our strategy is characterised commissioning in Q2 FY25. By the end of FY25, we also expect
the Crop Protection unit to be fully qualified.
by a scale-up in existing CDMO
partnerships, strong order books, and Notably, 40% of the Capex across our CDMO, API, and Drug
Product segments is still in the early stages of scaling up.
a focus on capacity optimisation. This Further expanding our capabilities, we have planned a $40 million
approach has led to a 30%+ increase fermentation-focused capex for FY25. This investment includes
in development/commercial scale units in Mysore and Vizag, a decision aimed at maximising
capacity in the last 24 months. complex CDMO project delivery and expanding our fermentation
capabilities in the GMP intermediates.

3,800 KL 7,750+ KL 10 bn 240

CDMO + API API tablets and capsules Bio-ingredients
FDF
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India, Visakhapatnam

Unit-1, Parawada A C Unit-3, Parawada A R Unit-5, Parawada C Unit-2, Atchutapuram

1,279 KL 2,317 KL 161 KL 10Bn units, 161 KL

Unit-4, Atchutapuram A C Unit-6, Atchutapuram A LSPL-1,Parawada A C LSPL-2, Atchutapuram C

1,995 KL 1,479 KL 140 KL 223 KL

India, Hyderabad India, Bangalore

Sriam A Kilolab A C R R1 B R R2 B
81 KL 4.5 KL 15 KL 225 KL

U.S Europe

Berkeley Heights, NJ M Winchester, UK M A API/Drug substance C CDMO inclusive F FDF/DP

Hamburg, Germany M

B Bio-Ingredients M Marketing R R&D

Capex investment Reactor capacity Drug product capacity

(H in crores) (KL) (billion)

19% 16% 14%

950 990 7,762 10

950
4,638
5

1,870 2
220

FY22 FY23 FY24 FY06-11 FY11-16 FY16-21 FY24 FY11-16 FY16-21 FY24
% Sales

Annual Report 2023-24 27

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Manufacturing highlights

Fostering a culture of quality through training

Quality and compliance
We prioritise continuous learning and skill development
Quality and compliance are the fundamental principles guiding
through our electronic learning management system (eLMS),
every aspect of our operations. We are committed to ensuring
tailored to specific roles and responsibilities. Additionally,
the safety and efficacy of our products for patients worldwide.
our comprehensive induction programmes for new hires and
This commitment drives continuous improvement and innovation
specialised cGMP training sessions (facilitated by qualified
within our quality management frameworks.
external trainers) reinforce our commitment to upholding the
Embedding quality in our operations highest quality standards.

We have adopted a holistic approach to quality, covering every Regulatory compliance

stage of drug development and manufacturing. We adhere
Our adherence to global regulatory requirements and the
to stringent Good Manufacturing Practices (GMP) across our
successful completion of regular inspections and audits affirms
processes, ensuring product quality and safety. Our record of zero
our compliance and dedication to quality. To ensure operational
product recalls over the past five years highlights the rigour and
consistency and regulatory alignment, we maintain a robust
effectiveness of our quality controls and management systems
internal auditing mechanism, alongside well-defined standard
operating procedures (SOPs). Furthermore, we have achieved
cGMP certification across all sites and successfully navigated
regulatory inspections.
Quality management initiatives
• We leverage sophisticated software tools to enhance
operational efficiency and quality oversight, including
a document management system (DMS) for seamless

1,113
document handling and SAP for inventory management

• Our facilities, equipped with advanced calibration and

preventive maintenance software and quality assurance Quality audits – regulatory and
management systems (eQAMS), ensure equipment
customers
maintenance and robust quality assurance

• Additionally, the implementation of ICDAS for stability

chambers and Minitab for quality data analysis ensures
product stability and quality review excellence

Automation and digitisation

In a world where precision and efficiency dictate success, we
have integrated cutting-edge automation and digitisation
technologies into our processes. Each initiative under this
umbrella is carefully chosen to ensure our processes are leaner,
faster, and more error-resistant.

Digital transformation focus

We have integrated robotic process automation (RPA) to
streamline operations and workflows, which enhances efficiency
across various functions. Alongside this, we utilise advanced
data analytics and visualisation tools to facilitate informed
decision-making, enabling us to respond swiftly and effectively to
changing market dynamics. We have also implemented predictive
and forecasting tools that enhance strategic planning by
providing forward-looking insights. Additionally, the deployment
of the Internet of Things (IoT) across our manufacturing
processes has enabled us to optimise operations, ensuring
maximum productivity and minimal waste.

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Technological advancements in quality control and production

• Our advanced tablet inspection machine, with 24 cameras, • Our bottle packing line uses an automated robotic system
ensures the highest quality by detecting and removing for assembling, sealing, and palletising 200 bottles per
imperfections in tablets at speeds of up to 700,000 minute, ensuring efficiency and accuracy while reducing
per hour packaging errors

• We have automated our oral dosage films (ODF) • Our recipe-based manufacturing approach minimises
production, closely controlling key factors such as film variability, reduces losses, and prevents batch rejections.
thickness and drying conditions, followed by accurate By scaling batches strategically, we enhance output
cutting and packaging at 564 pouches per minute. This and lower our environmental impact, leading to
ensures consistent quality and precise dosages, marking it increased productivity
as a dependable method for ODF manufacturing

Sustainability
At Laurus Labs, our journey towards sustainability is integral to
our operational ethos. We have launched a series of initiatives
aimed at enhancing energy efficiency and promoting the use of
renewable resources. Our strategic approach is structured around
key areas of impact.
6,354 GJ
Reduction in energy consumption by incorporating
Renewable energy integration variable frequency drives (VFDs) and temperature
A significant stride towards sustainability was achieved by controls in cooling tower fans, replacing existing
augmenting our renewable energy consumption, with solar compressors with those featuring radiator cooling,
energy constituting approximately 9% of our total energy use. and installing movement sensors across the
This shift decreases our reliance on fossil fuels and marks our facilities.
contribution towards building a sustainable energy future.

Energy conservation measures

• Our energy conservation efforts were boosted by the
purchasing of 42,594.26 tonnes of steam from waste
heat recovery boiler

• The adoption of solar power was a major

achievement, with 74,426 GJ generated and utilised
within the year

• Transitioning to electric vehicles from fuel-based

transport options further exemplified our pledge
towards clean and green transportation methods

Compliance
Our manufacturing facilities are compliant with integrated
Technological innovations for efficiency
management system (IMS) standards, including ISO certifications
The implementation of variable frequency drives (VFDs) across for quality, environmental, and occupational health and safety
our operations reflects our drive for energy efficiency machines. management systems. The initiation of the Energy Management
We also invested in advanced cooling systems, installing System ISO 50001:2018 and external green audits illustrate our
temperature controllers for cooling tower fans to optimise energy commitment to environmental stewardship and sustainable
consumption while maintaining essential temperature levels. manufacturing practices.

Annual Report 2023-24 29

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Innovation highlights
We have continually strengthened our
position as a leader in the pharmaceutical 223 5
and biotechnology industry through strides Patents granted R&D centres
in innovation and product excellence.
By integrating advanced technologies
and sustainable practices across various
facets of our operations, we enhanced
product quality, operational efficiency, and
4.8%
R&D spends to
6
Big Pharma
environmental responsibility. revenue partnerships

Research and innovation

Our research-first philosophy differentiates us, fuelled by our state-of-the-art R&D facilities and a passionate team of over
2,450 professionals, including 1,100+ researchers and scientists.

Gene therapy Cell therapy

We are constructing a 28,000 sq. ft. GLP/GMP lab focused Our associate company, ImmunoACT, launched NexCAR19,
on viral vectors and gene therapy products, with Phase 1 India’s first indigenously developed CAR-T cell therapy, approved
expected to be operational by the end of FY25. We have also by CDSCO for treating B-cell malignancies. With a network of
in-licensed four gene therapy assets from IIT-Kanpur and over 50 hospitals and 100 successful infusions in BCL and B-ALL,
provided the necessary funding to advance into clinical trials. we are constructing a second GMP facility in Navi Mumbai,
Additionally, a new Chief Scientific Officer has been identified spanning over 50,000 sq. ft. Additionally, we have increased
to lead these initiatives. our stake in ImmunoACT to approximately 34%, following the
completion of Phase II for their lead CD-19 targeting therapy.

R&D spent and filing trend US filings by therapy mix

60 61 73 79 83

26

5.7%
27

3.8%
31

4.1%
37

3.5%
40

4.8%
40
ANDAs filed
241
202 211
184
160 Para IV: 17
FTFs: 11

*Total filings:
EU (18) & Canada (22)

FY20 FY21 FY22 FY23 FY 24

50% ARV 13% CVS 15% Others
DMFS ANDAS R&D SPENDS TO REVENUE 14% Anti-Diabetic 8% CNS
We will continue to invest in our portfolio with a product-specific approach, *Diverse pipeline with 80 product filings and 61 approvals across US,
emphasising complexity and scale Canada and EU

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Expanding R&D capabilities

Our overall R&D focus is towards embracing newer technologies that align with sustainable manufacturing practices. The
commissioning of sterile R&D labs, capable of handling diverse injectable products is focused on developing complex products.
Additional R&D at Hyderabad will allow us to expand our scientific team strength by an additional 600, over a period of 18 months.

Drug delivery and formulations Continuous flow technology

During FY24, we focused on developing new formulation We continued to invest in our continuous flow platform to
technology platforms and dosage forms to help customers deliver complex projects efficiently. During FY24, we added
overcome formulation bottlenecks and provide more over seven continuous flow reaction projects and qualified
options. We commercialised our first oral extended-release commercial-scale continuous flow reactions (CFR), with
product and advanced multiple oral technologies, including further expansion into additional units. Our expanded flow
wurster-coated ER capsules and tablet-in-capsule ER. Our process development capability at the R&D scale, including
paediatric DTG application, based on novel Oral Dispersible fixed bed reactors, has helped minimise our carbon footprint
Film (ODF) technology, was approved by the US FDA, with while enhancing efficiency and safety.
additional products being added to this platform. We also
developed a sterile injectable platform capable of handling
diverse injectable products, thereby supporting pipeline
development across various therapeutic areas.

Bio-catalysis and fermentation Process technology

Our integrated offering encompasses capabilities across We aim to explore and apply advanced technology platforms
recombinant protein (rh-Protein), biocatalysis, and precision for pharmaceutical process development, striving for green
fermentation. During FY24, we enhanced our enzymatic chemistry, cost reduction, raw material optimisation, and
technology platform and added over ten biocatalysis projects efficiency improvement. In FY24, our R&D platform for
for the green synthesis of small molecule drugs. This reflects small molecules supported over 100 projects across drug
our vision to harness the synergies of these technologies, substances and drug products. We qualified alternative flow
driving scalable and sustainable innovations across various techniques, such as plug-flow and microchannel reactors, to
biotech applications. Additionally, we expanded our offerings support NCE projects, thereby maximising the utilisation of
in the artificial sweetener segment. our installed capacities.

Expanding service capabilities

We have signed a Master Service Agreement (MSA) with a leading
crop protection company. This move diversifies our portfolio and
provides sales visibility for the mid and long term. Additionally, we
have brought a new animal health drug substance (DS) facility
online and are actively discussing opportunities to support drug
product (DP) solutions.

Digital excellence and intellectual

property
Our integration of digital solutions, including advanced inventory
management systems and ALCOA+ for data integrity, indicate a
push towards operational efficiency, precise decision-making, and
sustainability. With 342 patents filed, 104 dossiers, and multiple
ANDAs, we are building a robust intellectual property portfolio
and advancing healthcare solutions.

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Expanding horizons
In a landmark partnership, we have
joined forces with Krka, the renowned
European pharmaceutical giant, to
form Krka Pharma Pvt. Ltd. Based in
Hyderabad, India, this joint venture
(JV) marks a leap forward, blending our
manufacturing excellence with Krka’s
global expertise.

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Krka Laurus Labs

• Strong financials $1.9 billion+ in revenues • Manufacturing excellence

• Robust pipeline of 170 products • Quality commitment

• Marketing experience • U.S. presence

• CIS • US
Existing
footprint • Russia • EU (via Partner)

• MENA • ROW Offers highly

attractive
growth prospects
• LATAM • SE Asia in the long run
Markets of
interest • Africa • India

Growth through synergy

Laurus Labs and Krka have committed to a phased investment of Harnessing the strengths of the parent companies, Krka
up to €50 million, to be shared between the partners over three Pharma Pvt. Ltd. will focus on manufacturing pharmaceutical
years, with KRKA contributing 51% and Laurus Labs 49%. This products for global markets (including additional capacities for
investment will support the establishment of a cGMP finished Krka), while exploring untapped markets outside the European
dosage form (FDF) facility in Hyderabad, while addressing the Union. This signifies a shared commitment to enhancing health
near-term joint venture needs from our Vizag site. standards globally.

Our business relationship with Krka

has matured over the years and
growing year on year. This JV further
cements our relationship to enhance
product portfolio and markets. The
JV also has plans to service quality
products to India market over a
period of time”.
Dr. Satyanarayana Chava,
Executive Director and CEO
of Laurus Labs Ltd.

Annual Report 2023-24 33

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Our stakeholders
Through engaged listening, establishing
connections, and forging partnerships
with our stakeholders, we identify the
impacts of our business and strive to
improve outcomes for our customers, the
wider community, and the environment.
Open and transparent dialogue with our
stakeholders is fundamental in nurturing
and sustaining enduring relationships
across our stakeholder network.

Employees Customers Community

Purpose of engagement Purpose of engagement Purpose of engagement
Our employees are our most Engaging with customers enables Empowering the community
valuable assets. They are critical to us to understand evolving needs, is necessary to our long-term
increasing our competitive edge and ensure product quality and sustainability. Through numerous
strengthening market leadership, compliance, and foster long-term upliftment projects and activities, we
thereby driving our long-term success. business relationships. continue to develop our relationships
with the communities and transform
Strategic priorities Strategic priorities their lives.
• Safe working environment • Anticipating evolving needs
Strategic priorities
• Equal opportunities and treatment • Innovative product solutions to
cater to changing needs • Contribution to society
• Learning and growth
• Work-life balance • Creating service delight with faster • Provide opportunities for self-
turnaround time sustenance and empowerment
• Employee benefits
• Fair rewards and recognition
Mode of engagement Mode of engagement Mode of engagement
• Meetings/Town hall briefings Customer engagement surveys CSR initiatives

• Employee engagement surveys Frequency of engagement

Frequency of engagement
• Team building, workshops, Monthly
Continuous
capability building and training
• Annual appraisals Capitals impacted Capitals impacted
S I S H N
• Rewards and recognitions
• Robust people policies Value created
Value created
Frequency of engagement J23.31 crores – CSR expenditure
Zero – Incidents of product recall
Continuous

Capitals impacted
H M
Value created
64,977 – Total training hours

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Process
Stakeholder Material topic Engagement with Response analysis
identification identification stakeholders We collate responses from
We start by compiling a We begin by drafting a We develop a tailored stakeholders, identify key
detailed list of stakeholders, comprehensive list of material questionnaire for both internal material topics based on these
categorising them into internal topics, followed by discussions and external stakeholders, responses, and then proceed
(such as employees and with management to identify then organise and conduct to construct the materiality
management) and external and determine the most critical engagement exercises with matrix to strategically align
groups (including customers issues. This process culminates select groups, ensuring our priorities.
and community members), and in a consolidated list of the to actively engage with
then prioritising them based on highest-priority topics for our stakeholders and record their
their influence and impact on strategic and operational focus. responses for analysis.
our business operations.

Suppliers Investors Government/

Purpose of engagement Purpose of engagement Regulatory
We collaborate with the suppliers We engage with investors to build authorities
to maintain a seamless business trust and communicate our strategic
operation, ensuring effective and direction and growth potential. Purpose of engagement
efficient procurement practices. The government agencies and
Strategic priorities regulatory bodies provide required
Strategic priorities • Enhancing shareholder value registrations, essential to conducting
• Long-term partnerships through innovation the businesses smoothly.
• Transparent practices • Maintaining transparency
Strategic priorities
• Timely redressal of any queries • Showcasing long-term
• Compliance with rules
• Cost efficiency growth strategies
and regulations
• Timely reporting through various
compliance-based forms

Mode of engagement Mode of engagement Mode of engagement

• Regular operational reviews • Quarterly earnings calls • Disclosures and filings for
compliance reporting
• Vendor meets • Annual shareholder meetings
• Meeting authorities for
Frequency of engagement • Publishing regular financial reports
permissions/approvals
Continuous Frequency of engagement
Frequency of engagement
Quarterly
Capitals impacted Need-basis
S M Capitals impacted
Capitals impacted
S F
Value created S F
Our procurement team is trained Value created
Value created
on various aspects of sustainable J86 crores – Dividend
procurement guidelines. • Timely tax payment

• High compliances with regulations

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Materiality
To identify the ESG topics that are most significant to our operations and stakeholders,
we actively involve our stakeholders in a comprehensive materiality assessment process.
We revisit and update our materiality assessments biennially to ensure relevance and
responsiveness. Our thorough approach guarantees extensive stakeholder involvement –
covering both internal and external parties – to spotlight priority ESG topics critical to us.

Material topic ESG category Topic priority Linkage with report

Regulatory compliance Governance High Governance, ethics and compliance

Product quality and safety Social High Manufactured capital

Governance

Occupational health and safety Social High Human capital

Protecting intellectual property rights Governance High Intellectual capital

Cybersecurity and data privacy Governance High Governance, ethics and compliance

Ethical governance Governance High Governance, ethics and compliance

Risk management Governance High Managing risks - An integrated approach

Employee well-being and satisfaction Social High Human capital

Talent attraction and retention Social High Human capital

Learning and development/skilling Social High Human capital

Access and affordability Social High Social and relationship capital

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Opportunity or risk Rationale for identifying the risk/opportunity

Risk Regulatory compliance is vital for us to maintain product quality, adhere to legal requirements, build
reputation and trust, access markets, protect intellectual property, conduct ethical research, and
ensure a secure and compliant supply chain.

Risk Issues related to quality and safety of our products may impact our brand reputation, ability to
differentiate from competitors and create value for our stakeholders.

Risk The health and safety of employees are of paramount importance to us; hence it is our responsibility
to provide them a safe and healthy workplace. Health and safety hazards pose regulatory,
reputational, and business continuity risks.

Risk It helps us encourage innovation, safeguard market exclusivity, prevent unauthorised use and
copying, maintain competitive advantage and fosters collaboration.

Risk Implementing robust cybersecurity measures is essential to mitigate risks, reduce vulnerabilities,
and safeguard our digital assets and operations.

Risk Ethical governance is vital for us as it ensures compliance with regulations, builds stakeholder trust
and reputation, and access to medications, avoids conflicts of interest, upholds ethical supply chain
practices, and contributes to long-term sustainability.

Risk It is crucial for us to identify and mitigate our risks to protect our reputation and brand, maintain
business continuity and ensure financial stability.

Opportunity Employees form backbone of our operations and to drive their productivity and boost retention, and
talent acquisition, it is crucial that we take care of them.

Opportunity It is essential for us to bring in fresh talent and at the same time retain our valuable employees to
foster innovation and creativity in the company.

Opportunity Enhancing skills and competencies of our employees helps us in enhanced performance
and productivity.

Opportunity Better access and affordability are crucial as it results in improved health outcomes, equity in
healthcare access and the overall well-being of countries that cannot afford medicines.

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Materiality

Material topic ESG category Topic priority Linkage with report

Responsible supply chain management Social High Social and relationship capital

Innovation management Social High Intellectual capital

Ethical sales and responsible marketing Governance High Social and relationship capital

Digitisation Governance Medium Intellectual capital

Toxic emissions Environment Medium Natural capital

Climate risks and resilience Governance Medium Natural capital

Environment

Climate and environment management Environment Medium Natural capital

Human rights Social Medium Human capital

Green chemistry Environment Medium Natural capital

Community engagement Social Medium Social and relationship capital

Antimicrobial resistance Environment Medium Natural capital

Biodiversity management Environment Low Natural capital

Diversity and Inclusion Social Low Human capital

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Opportunity or risk Rationale for identifying the risk/opportunity

Risk It is essential for us to identify and mitigate risks related to our supply chain such as disruptions in
raw material supply, supplier reliability, or environmental sustainability.

Opportunity Innovation is a crucial aspect for us to maintain our competitive advantage and encourage
collaboration and partnerships.

Risk Given the nature of the industry we are in, it becomes essential that we adhere to responsible and
ethical marketing of our products to protect against their misuse or off-label promotion.

Opportunity With the rapid technological advancements, it is imperative that we bring these solutions
in our operations to enhance our efficiency, reduce costs and support the development of
innovative solutions.

Risk Managing our emissions into the environment is crucial for us to not only comply with the regulation
but remain true to our environmental stewardship commitments.

Risk Climate risks pose serious financial and reputational risk to Laurus Labs in the coming future. It is
therefore essential that we ensure that we pay attention to develop timely mitigation strategies.

Risk To reduce our environmental impacts and deal with the associated business continuity and human
safety risks, it is important that an adequate climate and environment management system is
in place.

Risk It is our ethical responsibility to respect the human rights of every stakeholder associated with us.

Opportunity By adopting green chemistry principles, we can significantly contribute to environmental protection
by reducing our air and water pollution, conserving resources, and minimising our carbon footprint.

Opportunity Community engagement allows us to build trust and create shared value for the communities in
which we operate.

Risk AMR poses a significant business risk to us as it may reduce the effectiveness of our products and
increase the need for new drug development.

Opportunity Sustainable use of biodiversity becomes important for us as many of our ingredients are derived
from these.

Opportunity Diversity is an important aspect for a business as it drives innovation and creativity and enhances
decision-making.

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Operating environment
As we stride ahead into the future, the growth trajectory is influenced by
several key factors that shape our direction. We leverage these insights to
navigate the complex and evolving terrain of the pharmaceutical industry
to drive growth, foster innovation, and deliver value to our stakeholders.

Demographic and Sustainability and ESG

healthcare trends considerations
The world is witnessing a demographic shift towards an aging ESG factors are becoming increasingly important in the
population with increased prevalence of chronic diseases. It pharmaceutical industry. Stakeholders, from investors to
is driving demand for pharmaceuticals, especially in areas like consumers, demand greater transparency and responsibility
oncology, cardiology, and neurology, where we are strategically in operations. We are Laurus Labs is dedicated to sustainable
expanding our product portfolio. practices, evidenced from our investments in green chemistry
and efforts to reduce our environmental footprint, aligning with
global initiatives towards the same objective.
By 2030, one in six people in the world will be aged
60 years or over, a substantial increase from 2020.
This trend indicates a significant growth in the
size of the older population, which is projected to
Technological advancements
double by 2050, reaching 2.1 billion people. Innovation is at the heart of the pharmaceutical industry’s
growth. Cutting-edge technologies, such as artificial intelligence
(AI), machine learning (ML), and precision medicine, are
Source: World Health Organisation transforming drug discovery, development, and delivery. We
are embracing these technologies, investing in R&D to enhance
efficiency and creating more personalised medicine.

Global market dynamics 50%

The pharmaceutical industry is influenced by trade policies, Reduction in drug discovery timelines
patent laws, and international relations. As a company owing to Generative AI
that operates on a global scale, we closely monitor these
dynamics to adapt its strategies accordingly. Our international
partnerships and market diversification efforts are designed
to mitigate risks associated with global uncertainties.

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Regulatory environment Competitive landscape

The regulatory landscape for pharmaceuticals continues The pharmaceutical industry is highly competitive, with
to evolve, with increasing emphasis on safety, efficacy, companies vying for market share in generic and specialty
and quality. Regulatory bodies like the U.S. Food and Drug medicine sectors. For us, the focus on complex generics and
Administration (FDA) and the European Medicines Agency niche therapeutic areas –leveraging our R&D capabilities and
(EMA) are setting higher standards for approval, impacting manufacturing excellence to deliver high-quality, affordable
how companies navigate product development and market medicines – has been the differentiating factor.
access. Our commitment to compliance and quality ensures
we meet these rigorous standards.

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Strategic objectives
We are is embarking on the journey towards achieving industry leadership and
sustainable growth by ‘Innovating, Excelling and Expanding’. This approach embodies
our commitment to integrated offerings and R&D-led business diversification, enables our
global clients to access the highest quality medicine while solidifying our position in the
pharmaceutical industry.

Innovate
• Emphasis on integrated offering and
R&D-led business diversification
• Invest in disruptive innovation
Excel
• Strong product portfolio
• Robust compliance and quality culture
• Advance and evolve sustainable R&D
platform

Expand
• Build and optimise large-scale capacities
while investing in high potential
businesses
• Diversified customer base and market
expansion
• Leverage significant technology overlaps
and accelerate emerging services

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Innovate

Emphasis on integrated offering and R&D-led FY24 progress

business diversification In FY24, we achieved a revenue of H5,041 crores, marking a 9%
Leveraging our strengths in innovative chemistry and commercial growth excluding a large order in the base year. This growth
excellence in small molecules, we have undergone a significant was driven by robust performance across our key pillars while
transformation and diversification. Starting with our initial stabilising ARV sales. Specifically, our CDMO-Synthesis core
success in ARV APIs, we have expanded to build a robust small business reported a strong 24% growth, formulations increased
molecule API business across multiple therapies. Our forward by 24%, oncology API grew by 27%, and our biotechnology
integration into formulations has positioned us as a full-spectrum business expanded by over 28%.
pharmaceutical company, driven by accelerated investments in
We maintained healthy gross margins of around 52% and
our CDMO division to enhance integrated service capabilities and
continued our commitment to capacity expansion. Our business
advance our leadership position.
development efforts resulted in securing a multi-year CDMO
In the highly fragmented CDMO industry, we are committed to contract with a leading crop science company and a joint
strengthening our process development capabilities and technical venture with KRKA. We also deepened cooperation with major
expertise. This approach captures new growth opportunities and CDMO clients on green and sustainable technology platforms,
ensures long-term business resilience. Through an integrated particularly in high-pressure hydrogenations, continuous flow
approach and continuous innovation, we provide the highest chemistry, and bio-catalysis. We are currently engaged in multiple
quality medicines and harness chemistry adjacencies to enter RFPs involving complex multi-step chemistry, large-scale bio-
new markets. catalysis, and in-house enzyme manufacturing.

Over the past three years, we have made major investments in

our manufacturing capabilities, along with the cultivation of a
proficient talent base. These efforts will play an important role
in driving the next wave of impactful growth and shaping a fully
integrated value chain offering for us.

Invest in disruptive innovation FY24 progress

We are committed to supporting and nurturing industry- We have strengthened our commitment to driving the next
academia partnerships focused on pioneering disruptive generation of manufacturing patient-specific and personalised
innovations and therapies with the potential to improve patient therapies with the acquisition of four gene therapy assets from
outcomes. With a disciplined investment strategy, we aim IIT. We also launched NexCAR19, India’s first indigenously
to allocate up to 10% of our profits to such transformative developed CAR-T cell therapy. Additionally, we have initiated the
technologies. Our focus areas include cell and gene therapy construction of a gene therapy manufacturing facility spanning
(CGT), innovative process devices, oral drug delivery technologies 28,000 sq. ft., with GMP/GLP standards in Kanpur, expecting
such as oral disintegrating films (ODF), and automation. This Phase 1 to be operational in FY25.
approach ensures that we advance in alignment with scientific
Our investments also include acquiring an additional stake in
prospects that fit our value proposition.
the cell therapy platform company ImmunoACT (increasing
our ownership to 34%) while supporting the development of a
50,000 sq. ft. second GMP integrated CAR-T and Lentiviral vector
facility. Furthermore, we have increased our stake in the precision
fermentation platform company, Laurus Bio.

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Strategic objectives

Excel

Strong product portfolio FY24 progress

We consistently emphasise a ‘research-first’ philosophy We have successfully launched over 80 products across drug
channelling investments into R&D with specific focus on substances and drug products, significantly expanding our
manufacturing complex small molecule products – spanning portfolio. During this period, we filed 8 dossiers and received
both drug substances and drug products. This investment aims a total of 9 approvals, particularly targeting fast-growing
to secure market leadership by providing cost-effective and therapeutic areas such as anti-diabetic, cardiovascular, and CNS
sustainable solutions to partners. We have also diversified our treatments. Our R&D pipeline has been strengthened, aiming
presence across various therapeutic domains, including ARV, at an addressable market of over $48 billion. Additionally, we
diabetes, cardiovascular, hepatitis C, and oncology. have enhanced our CDMO customer base, now serving a diverse
array of clients across the US, EU, and Japan. Currently, we are
With backward and forward integration in the generics business,
managing approximately 70 active projects in various phases of
we command a competitive advantage in quality, speed, and
development, along with 10 commercial projects.
cost, enabling us to adapt to market fluctuations. We are keen on
growing the small molecules CDMO business and nutraceutical
ingredients by capitalising on our expertise, aiming to expand
partnerships with overseas drug companies and fortify
relationships with Big Pharma.

Robust compliance and quality culture FY24 progress

We invested in the consistent enrichment of the workforce, the We have successfully launched over 80 products across drug
refinement of technologies, and the optimisation of processes. substances and drug products, significantly expanding our
We have established a seamless integrated operating system portfolio. During this period, we filed 8 dossiers and received
comprising R&D, manufacturing, quality control, and project a total of 9 approvals, particularly targeting fast-growing
management. These operations align with the highest global therapeutic areas such as anti-diabetic, cardiovascular, and
industry benchmarks, embracing rigorous cGMP, Environmental CNS treatments.
Health and Safety (EHS) management and Quality Assurance
Our R&D pipeline has been strengthened, aiming at an
(QA) systems.
addressable market of over $48 billion. Additionally, we have
enhanced our CDMO customer base, now serving a diverse
array of clients across the US, EU, and Japan. Currently, we are
managing approximately 70 active projects in various phases of
development, along with 10 commercial projects.

Advance and evolve sustainable R&D platform FY24 progress

We are committed to business expansion through a customer- Our efforts have led to the development of new formulation
centric approach, providing high-quality products and services. technologies, such as oral extended-release products and
By continuously advancing our processes and utilising our R&D advanced oral technologies like wurster-coated ER capsules.
capabilities, we aim to build sustainable technologies that meet Our paediatric DTG application based on ODF technology
our customers' needs. With a strong technical foundation, we are received US FDA approval.
furthering the development and production of small molecules
for both clinical and commercial phases. We have also invested in continuous flow technology, adding over
seven projects and expanding commercial-scale CFR capabilities.
Key areas of focus include continuous flow reaction, enzyme/ In biocatalysis and fermentation, we enhanced our enzymatic
biocatalysis platforms, and precision fermentation-based platform, adding ten projects for green synthesis and expanding
solutions, all aimed at enhancing sustainability and efficiency. into artificial sweeteners. These initiatives have allowed us to
access new markets and extend our integrated solutions into
food, nutrition, pharma, and animal health sectors.

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Expand

Build and optimise large-scale capacities FY24 progress

while investing in high potential businesses Through our integrated development and manufacturing capabilities across
We have been enhancing our technical and 12 production sites and 5 R&D centres, we have successfully empowered
commercial capacities to establish a robust over 300 global clients, including 6 out of the top 10 innovators. In the past
foundation for future expansion. Our advanced two years, we have seen a 30% increase in small molecule development and
manufacturing sites, built from the ground up, comply commercial-scale API capacity, reaching 7.8 million litres, including additions
with stringent standards. in our emerging service business. Our drug product capacity has doubled to
10 billion units annually.
We have also continued to make targeted investments
in large-scale manufacturing facilities to capitalise Moving forward, we will optimise these newly added capacities to boost
on opportunities in small molecules and other operating profits. In our CDMO business, we are enhancing our service
advantageous business areas. Our focus remains on capability for early-stage projects with the construction of an R&D centre
scaling our high-potential, customer-centric CMO/ (small molecules and high potent) on a 5-acre site, set to be commissioned
CDMO business, including segments such as rare by June 2024. Additionally, two GMP production plants for our emerging
diseases, diabetes, and cardiovascular treatments. Animal Health business have started production, while two other units are
Simultaneously, we are reinforcing our operations in the build-up phase. We have also commenced the $40 million Phase I
with a strong emphasis on optimised delivery construction of a new GMP-grade microbial fermentation commercial facility
and efficiency. in Vizag, aiming to operate it by June 2026. This will enable us to meet the
demand for complex semi-synthetic project delivery to global innovators.

Diversified customer base and market FY24 progress

expansion We have established partnerships with six of the world’s top ten
Our ongoing efforts are centred on technological pharmaceutical multinational companies, strengthening our market
advancements, implementing them in large- presence. Despite a 9% revenue growth in FY24, the revenue share from our
scale manufacturing, and targeting efficiency top ten customers declined by 2 percentage points to 45% (excluding a large
improvements. We are also committed to continually purchase order executed last year).
deepening and expanding customer engagement.
Over the past year, we have expanded our geographical presence and
Upholding the principle of ‘One Quality Standard
increased revenues across key markets, maintaining a steady revenue
for All Markets,’ we are broadening our product
contribution of 44% from developed regions, including North America,
portfolio and service capabilities, while enhancing our
Europe, and Japan.
market presence among small, medium, and large
pharmaceutical companies.

Leverage significant technology overlaps FY24 progress

and accelerate emerging services We have enhanced our operational systems and deployed synergetic
We leverage our commercial experience to venture resources with a strong focus on delivering emerging business projects and
into new business territories and enhance cross- capability building. This approach has enabled us to commence commercial
business synergies, particularly within the CMO production for our Animal Health API project, where we are vigorously
and CDMO segments. By integrating technological promoting DP technology with clients.
overlaps and extending pharmaceutical
Currently, we have approximately 20 active projects across the value chain,
technologies to markets such as animal health,
including 4 validation production projects underway, and we are expanding
agrochemical ingredients, consumer health, and
our commercial AH block. Additionally, we have signed a multi-year
specialty ingredients, we aim to enhance our
development and manufacturing contract with a leading crop protection
delivery capabilities and rapidly diversify into new
company, having already supplied registration batches from our pilot
growth avenues.
plant. The large-scale intermediate facility qualification is expected to be
completed by the end of FY25.

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ESG approach
We view responsible Environmental, Social and Governance
practices as a crucial element of business strategy.
Through the adoption of technologies like bio-catalysis and
continuous flow chemistry, promotion of initiatives aimed
at creating safe and equitable workspaces, and enforcing
ethics and compliance in business practices, we advance
ESG principles.
We are also proactive about obtaining system
certifications, publishing an integrated report in line with
the BRSR framework, diversifying into renewable energy
with a stake in Ethan Energy India Pvt. Ltd., and evaluating
climate risks. Our ESG strategy guides our commitment to
sustainable and ethical business practices.

Consecutive ‘BBB’ rated by Committed to Improved S&P Scored well on the 5th consecutive
MSCI ESG Ratings in Science-based CSA Score EcoVadis Rating Certification
FY22, FY23, FY24 Targets in (Vs. 43/100 LY) with SILVER
December 2023 ratings

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Environment Social Governance

15,702 tCO2 6,735 14%

Reduction in Scope 1 emissions Employees Women Directors
(steam generated through waste
heat recovery from a neighbouring
industry)

27,144 tCO2 J23.31cr Zero

Reduction in Scope 2 emissions Investment in community and Cases of unethical business
(through co-gen boiler used to social projects practices against the Company
generate electricity and renewable
energy i.e. captive power)

100% Zero 57%

Sites ISO 14001:2015 certified Lost Time Injury Rate Independent Directors

9%
Renewable energy consumption
7.5%
Women in the workforce
11 years
Average Board tenure

• Unit 4 was recognised for

‘Environmental Excellence’ at the
23rd Annual Greentech Environment
Award 2023

• We participated in several
environmental protection initiatives,
including the ‘G20 - Jan Bhagidari -
Mega Beach Clean-up event’ under
India G20 Presidency and the Green
Walk organised by APPCB

Way forward
We plan to complete the implementation of an Energy Management System (EMS) in
accordance with ISO 50001:2018 across all facilities in the near future. Additionally,
several other environmental management projects are in the pipeline. These include the
operationalisation of a solar project at Unit 2 and the adoption of biomass briquettes
for Units 3 and 5 to reduce Scope 1 emissions.
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Employees
Material issues Our employees play a foundational role in driving our
success. We endeavour to create a culture of trust,
Occupational health and safety performance, and camaraderie, empowering our team
of 6,700+ employees to innovate, excel, and contribute
Employee well-being and to our mission of delivering outstanding healthcare
satisfaction outcomes.

Talent attraction and retention

Learning and development/

skilling

Diversity and inclusion

Key risks
• EHS risk

• Operating risk

SDGs impacted

100% Zero 100% Great Place to

Work certified
Employees trained on Lost time injury frequency Sites ISO 45001:2018
code of conduct and rate (LTIFR) certified and assessed for organisation
ethics health and safety practices

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Diversity and inclusion

We understand that a diverse workforce enriches our culture,
expands our reach and enables us to transcend competition in
the pharmaceutical industry. Therefore, we aim to cultivate an
inclusive environment where every employee feels valued and
empowered to contribute their unique perspectives and skills.

Fair recruitment practices

Our recruitment processes uphold the highest standards of
fairness and equality, adhering to anti-discrimination laws and
best practices. We make hiring decisions based on a candidate’s
qualifications and alignment with job requirements, ensuring
that all applicants receive equal consideration.

Harassment-free workplace
We have enforced a zero-tolerance policy towards any form Employee development
of harassment or discrimination. Educational posters and We recognise the direct correlation between our workforce’s
materials that outline our stance on 'Zero Tolerance to Sexual growth and our overall success. Building on our strong
Harassment' are displayed across all sites, providing clear foundation from the previous year, we have further enhanced
guidelines on how grievances can be reported and addressed. our learning and development initiatives, ensuring they are
contemporary and aligned with evolving industry demands.
Creche facility to support working mothers
We offer creche facilities at our manufacturing units and are Onboarding and orientation
expanding these services across all locations in collaboration We have refined our introductory programmes to include
with external experts. This initiative is a part of our broader updated organisational goals and the latest operational
commitment to women employee welfare and work-life balance. protocols, ensuring that the new hires are well-prepared to
embrace their roles effectively.
Women’s leadership initiatives
Recognising the industry-wide challenge of gender imbalance, Continuous professional development
especially in leadership roles, we have implemented targeted We have introduced additional modules to our training
initiatives to support and develop women leaders within our programmes focusing on emerging technologies and innovative
organisation. Our ongoing efforts aim to elevate women’s pharmaceutical practices to keep our workforce ahead in a
representation in our workforce in the coming years. This highly competitive sector.
initiative is supported by gender-positive programmes and
dedicated developmental efforts to ensure a balanced and Performance management
equitable workplace. Our performance management framework has incorporated
frequent check-ins and agile goal setting in keeping with
dynamic market conditions, enabling real-time performance
adjustments and feedback.

Advanced leadership training

Our flagship leadership programmes, MANTHAN and the
Management Development Programme (MDP), have included
critical aspects such as digital transformation, sustainability,
and remote team management as we adapt to a more digital
and environmentally conscious marketplace.

Mentoring enhancements
‘Sanchalak - The Guide’ now features a more structured
curriculum that addresses specific career milestones, with
mentors receiving training on nurturing high-potential
employees to foster a culture of leadership and innovation.

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Employees

Employee well-being Health and safety

We realise that our success is deeply intertwined with the health Our facilities continue to adhere to the highest safety
and happiness of our team. During FY24, we have taken measures standards and maintain ISO 45001:2018 certification. Regular
to create a supportive and productive work environment. internal audits and dedicated EHSMS coordinators ensure our
Occupational Health and Safety Management System (OHSMS)
Health and wellness programmes is effectively implemented and continually improved.
Our partnership with the PRAAN Foundation has enhanced the
scope of ‘A Healthier and Happier You’ Employee Assistance
Programme (EAP). We have allocated additional mental health
resources, including access to online mental health platforms
• We collaborated with DSS+ and implemented
and on-site mindfulness sessions, which have benefited over
the SANKALP initiative to transform the safety
50 employees. These resources are designed to address a wide
culture, with Phase 1 completed and preparations
range of issues from stress management to lifestyle challenges,
for Phase 2 underway
ensuring our employees have the requisite support to thrive both
personally and professionally. • Multiple manufacturing units (Unit 2, Unit 4,
and Unit 5) received the CII AP Industrial Safety
Employee engagement and communication Excellence Awards 2023
We continue to strengthen communication channels through our
• Units 1 and 6 were honoured with the
established programmes, Laurus Labs IGNITE and SANCHALAKS.
International Safety Awards 2023 from the British
These platforms serve as vital links between our employees
Safety Council
and the management. The annual Great Place to Work Survey
- DARPAN reflects this positive engagement, showing marked • The Safety Champion concept was implemented
improvements in job satisfaction and work environment, as to strengthen line management responsibility
evidenced by the enthusiastic participation of our employees in and enhance the EHS inspection mechanism
the survey.
• A third-party independent review of in-house
Recognition and rewards safety audits across all sites was completed
Our service awards programme now has a more personalised
recognition experience for employees reaching significant tenure
milestones. We have also lowered the eligibility threshold for the
Employee Stock Ownership Plan (ESOP) to include those with two
years of service.

Enhanced training and engagement

We have increased our health and safety training hours to
empower employees with the knowledge and tools necessary
for safe work practices. Our training programmes are tailored
to address specific risks associated with various job roles – from
basic safety protocols to specialised training for handling
hazardous materials.

Proactive risk management

Our approach to safety extends through our robust Hazard
Identification and Risk Assessment (HIRA) protocols. Each
department actively participates in identifying potential
hazards, ensuring that all levels of our organisation are engaged
in maintaining a safe work environment. Standard operating
procedures (SOPs) and operational control procedures (OCPs)
are rigorously applied to maintain high safety standards across
all operations.

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Safety committees and collaborative governance

Human rights and fair
Safety committees across our units have been instrumental in
fostering a culture of safety and collaboration. These committees labour practices
are crucial in the ongoing monitoring and mitigation of workplace The commitment of the pharmaceutical industry to global health
hazards, contributing to the prevention of work-related illnesses extends beyond medicine production; it fundamentally supports
and injuries. Monthly safety meetings provide a platform for the human right to health and dignity. We ensure that every
employees to voice safety concerns and share insights, enhancing phase of our operations — from sourcing materials to product
our safety governance. distribution — respects and champions Human Rights and fair
labour practices.
Incident management and continuous improvement
Our Human Rights policy guides our mission, reflecting
Incident reporting remains a critical component of our safety
international norms like the Universal Declaration of Human
culture, with robust mechanisms in place to ensure timely
Rights, the ILO’s Declaration on Fundamental Principles and
reporting and investigation into all incidents. We have made our
Rights at Work, and the UN Guiding Principles on Business and
incident management processes more effective by introducing
Human Rights. We continuously reinforce this policy across our
cross-functional teams that conduct thorough root cause
supply chain to guarantee compliance with these standards,
analyses. These teams help us devise effective preventive
focusing on the eradication of child and forced labour and
measures and refine our risk management strategies.
promoting an environment of respect and dignity.
Future goals From clinical trials to product development, we prioritise informed
We plan to integrate more advanced technologies and data consent, data privacy, and equitable treatment of all participants.
analytics into our safety programmes to predict potential hazards We believe that ethical research practices are essential for
and prevent incidents before they occur. Our goal is to provide a innovation and trust in our industry. Although we do not have
safe and secure working environment for all employees. formal unions, we ensure our workforce can voice their concerns
freely, without fear of repercussion, fostering an inclusive and
open workplace culture.

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Communities
Material issues We recognise that our success and sustainability are
inseparably linked to the well-being of the communities
Community engagement we engage with. We place immense value in nurturing
positive and productive relationships with community
Access and affordability members who directly influence and enrich our business
landscape. Our approach is aimed at contributing
meaningfully to societal progress.
Biodiversity management

Key risks
• EHS risk

• Regulatory risk

SDGs impacted

D23.31 cr 25+
CSR spend Community programmes
supported

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Our corporate social responsibility (CSR) strategy, Through collaborations with the Laurus Charitable
governed by the CSR Committee under the mandates Trust, implementation partners, and local NGOs and
of Section 135 of the Companies Act, 2013, leaders, we ensure that our initiatives are well-aligned
guides our efforts to give back to the community. with community needs and are executed effectively.
The focal areas – covering educational support, This ongoing dialogue helps us stay connected and
healthcare access, environmental sustainability, and responsive to the community, ensuring our actions yield
the promotion of sports – are carefully chosen to beneficial outcomes for all stakeholders involved
ensure impactful interventions that can bring about
substantial improvements in the quality of life of our
community members.

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Communities

Health and hunger eradication

Our contributions to healthcare and hunger eradication
are significant. Through partnerships with the Pure Little
Hearts Foundation and Hrudaya Foundation, we support
efforts to provide healthcare services to underserved
populations. We also contribute to projects like Anna
Prasadam for eradicating hunger by Touch stone Charities,
which helps address food insecurity. Additionally, our
funding for the construction of community kitchens further
strengthens our commitment to eradicating hunger.

Education
We are actively involved in enhancing educational
infrastructure and providing quality educational
opportunities. We support numerous initiatives, including
financial aid for the Super 60 Coaching programme,
construction of school buildings at Maqbulia, and
renovation projects such as the IGIAIT Boys Hostel.
Our commitment extends to the operational aspects
of education, demonstrated by our support for teacher
salaries and stipends for students at Gitam University,
ensuring that educators and students alike have the
resources they need to succeed.

Gender equality
Promoting gender equality is a key focus area, with
our undertaking projects like the renovation of APSWR
Girls Hostel and providing financial support for sewing
machines under women empowerment programmes.
These initiatives empower women by improving their
living conditions and enhancing their vocational skills,
paving the way for greater economic independence.

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Environmental sustainability
Our environmental initiatives are designed to promote
sustainability and enhance the ecological health of our
communities. We are involved in the construction of
public toilets and parks and garden adoption in Tirumala.
These projects beautify the community while promoting
environmental awareness and responsibility. Additionally,
we are also actively contributing to the Utkarsh Global
Foundation for environment awareness programme.

Sports and rural development

We provide financial assistance for ground renovations
and sponsor individual athletes, helping foster a spirit of
physical fitness and teamwork. We have also supported the
enhancement of community infrastructure by deploying
fogging machines in Dibbalapalem and providing garbage
vehicles to Pudimadaka Gram Panchayat, which play a crucial
role in improving sanitation and health standards.

Skill development and

vocational training
The Laurus Skill Development Centre is a testament to our
commitment to vocational training and education. This
centre provides training and development opportunities
that equip individuals with the skills necessary to thrive
in the workforce, supporting economic development and
community self‑sufficiency.

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Customers
Material issues We aim to advance global health through strategic
partnerships, quality, and compliance. We cater to
Product quality and safety some of the world’s leading pharmaceutical companies,
necessitating the need to maintain high standards
Protecting intellectual property across diverse markets and ensuring sustained
rights excellence in every facet of our operations.

Ethical sales and responsible

marketing

Cybersecurity and
data privacy

Access and affordability

Key risks
• Regulatory risk

• Competition risk

• Innovation risk

SDGs impacted

121 Zero 14 60+

Customer audits Product recall Regulatory audits Countries marked by our
presence

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Global reach and customer Customer engagement

diversity Our experienced sales and marketing teams are
instrumental in promoting, selling, and distributing
We pride ourselves for having a diverse and expansive
our products globally. We leverage compliant cGMP
customer base spanning government agencies, multinational
facilities and a strong foundation in chemistry to offer
pharmaceutical companies, pharmacy chains, animal health
CRAMS and CDMO services tailored to the specific
companies, leading personal care companies and crop science
needs of our clients. Through regular customer audits
companies across a broad array of markets. With an extensive
and continuous feedback, we refine our practices and
global footprint, we serve over 200 clients in 62 countries,
enhance service delivery, ensuring that our solutions
establishing ourselves as a trusted partner of the top 90% of
consistently meet the highest quality, regulatory, and
generic pharmaceutical giants globally. We also serve 6 out of the
cost-efficiency standards.
top 10 global innovator companies. This vast reach stems from
our ability to meet complex and varied market demands while
maintaining strong ties with industry players.
Compliance
We uphold the highest standards of regulatory compliance,

Product stewardship as evidenced by our adherence to global norms and regular

audits by prestigious international health authorities such
We adhere to the ‘One Quality Standard for All Markets’ as the USFDA, WHO Geneva, and ANVISA Brazil. These
philosophy, ensuring consistent quality, efficiency, and safety audits validate our commitment to maintaining exemplary
across all product categories. Our facilities operate under standards in quality, safety, and compliance.
stringent safety and quality standards and are equipped to deliver
standardised excellence worldwide. This approach simplifies
compliance with diverse statutory quality requirements and
reinforces product integrity across the supply chain.

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Suppliers
Material issues Our approach to supplier management is built
on a foundation of responsible sourcing and
Responsible supply chain ethical practices, ensuring that our entire supply
management chain reflects quality, integrity, and social
responsibility. By engaging suppliers through
Ethical governance regular reviews and meetings, we strengthen
their contribution to our Environment, Health,
Risk management
and Safety (EHS) initiatives and ensure their
offerings are beneficial to both parties.

Key risks
• Capacity planning and
optimisation risk

• Operating risk

SDGs impacted

D2,432 cr 68% 100% 100%

Raw material spend Raw material suppliers Supplier compliance rate Supplier Assessment and
in India screened on ESG (on spend basis) Development Programme
criteria (on spend basis) participation

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Responsible sourcing and Supplier assessment and

supplier engagement development programme
We emphasise robust engagement with suppliers to uphold We follow rigorous procedures, based on capacity, quality,
our commitment to Human Rights, labour rights, employee and ESG criteria, to assess new suppliers before onboarding.
well-being, and environmental sustainability. Our CEO leads It is evident from our sustainable supply chain questionnaire.
proactive efforts towards meaningful interactions with This initial screening is only the beginning of a continuous
key suppliers – ensuring that their services align with our assessment and development process, which includes annual
Environmental, Social, and Governance (ESG) goals. evaluations and QA audits, now conducted offshore. These
audits are crucial to ensuring that our suppliers meet our

100%
stringent standards for quality and ethical practices.

Supplier awareness
of our procurement team is trained
Our supplier code of conduct establishes strict standards
on various aspects of sustainable across quality, environment, health, safety, labour, ethics,
procurement guidelines and management systems. We ensure these standards are
transparent and accessible, requiring all suppliers to adhere to
these principles to maintain alignment with our operational
values and ethics.

Supplier policies and Supplier nomination

commitments We select suppliers based on a detailed evaluation of business

risks. This process ensures that our supply chain is resilient,
Our supply chain management is guided by two critical compliant, and capable of meeting our high standards for
policies: the Sustainable Procurement Policy and the quality and ethical practices.
Supplier Code of Conduct. These policies are designed to
align our suppliers, distributors, and technology partners Supplier performance evaluation
with our ESG objectives and hold them to high ethical
To maintain our high standards, selected suppliers undergo
standards. Such an approach ensures that our supply chain
thorough reviews, including a questionnaire as part of Laurus
practices comply with industry standards, reinforcing our
quality audits. This process helps us monitor and assess their
commitment to responsible sourcing.
performance consistently.

Supplier development
Following audits, we closely analyse the results and work
collaboratively with our suppliers to formulate improvement
Supplier base and partnerships plans. This approach helps refine their practices to meet
Our supplier network – involved in procurement of our requirements, ensuring ongoing compliance and
key starting materials, packaging, capital and utility enhanced performance.
equipment, and logistics services – is extensive and sourced
equally from local and international markets. In India, our
supplier base is concentrated in Gujarat, Maharashtra,
Andhra Pradesh, and Telangana but we have undertaken
efforts to diversify sources and support domestic
production initiatives like Make in India. This diversification
helps us mitigate risks associated with single-sourcing and
enhances our supply-chain resilience.

65
Tier 1 suppliers assessed
as per raw material spend

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Environment
Material issues Our commitment to sustainability permeates all aspects
of our operations. We focus on optimising energy
Climate risks and resilience consumption, reducing emissions, conserving water,
and enhancing waste management and recycling.
Climate and environment These efforts support compliance with environmental
management standards and help affirm our promise to the
environment and community, reinforcing our role as
Toxic emissions a responsible leader in the pharmaceutical industry.

Green chemistry

Biodiversity management

Key risk
• EHS risk

SDGs impacted

9% 22,884 tonnes
Renewable energy Waste recycled and reused
consumption

87,212 tCO2
Scope 3 emission
284,801 KL
Water recycled by treating steam condensate with
reverse osmosis and mixed bed processes, which was
then reused in boiler operations

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Energy management Energy mix

Our approach towards sustainable energy management involves
diversifying our energy sources and improving energy efficiency
across operations. Our energy portfolio includes coal, diesel, grid
electricity, solar power, and steam from waste heat recovery, with
coal and grid electricity being major contributors to our emissions.
To address this, we are actively transitioning towards renewable
energy sources and optimising energy usage across all facilities.

1.58% Diesel  .31% Steam

3
67.62% Coal (from waste heat recovery)
27.30% Electricity from Grid 0.19% Petrol & LPG
and Solar

Key initiatives
• We have transitioned to LED lighting across all
facilities, which reduces energy consumption and
supports our sustainability objectives
• Solar panels with a cumulative capacity of
approximately 1 MW have been installed at Units
1, 3, 6, and our R&D facility
• The implementation of Variable Frequency
Drives (VFDs) and temperature controls in cooling
towers has resulted in significant energy savings
Central to our approach is the ISO 50001:2018 • Upgrading to more efficient compressor models
certified energy management system (EMS), which with radiator cooling has led to considerable
helps us systematically monitor, measure, and improve reductions in energy usage
our energy performance. This system identifies
• The installation of movement sensors throughout
high‑energy areas, sets reduction targets, and
our facilities has saved 131 GJ of energy annually
implements energy-saving measures.

Goals
Our primary goal for FY25 is to reduce our energy intensity further. This reduction will be
driven by a combination of strategies, including the improvement in energy efficiency
throughout our processes and products. Additionally, we are committed to increasing
our utilisation of renewable energy by installing solar panels at our operational sites.
Concurrently, we aim to lessen our reliance on traditional energy sources by actively
increasing our procurement of green energy from the grid.

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Environment

Emissions management
Our efforts are structured around an extensive annual greenhouse gas (GHG) inventory that identifies emission hotspots and guides
the prioritisation and implementation of reduction strategies. This inventory covers Scope 1, Scope 2, and selected Scope 3 emissions,
enabling us to set reduction targets.

Scope 1 and Scope 2 emissions Scope 3 emissions and supply chain impact
Our Scope 1 emissions originate from stationary combustion of Scope 3 emissions, which include indirect emissions from activities
fuels like coal and diesel, as well as fugitive emissions from various like transportation and the production of purchased goods,
refrigerants. With our expanding operations, Scope 1 emissions account for a significant portion of our carbon footprint. We are
have risen due to increased coal consumption. addressing these by localising our supply chain, which reduces the
distances covered to procure raw materials and, consequently,
Scope 2 emissions, derived from electricity procurement, have
emissions related to transportation.
seen a decrease due to more sustainable practices, including
a transition to generating our own electricity using co-
generated steam.

Distribution of Scope 1, 2, and 3 emissions Emission intensity (Scope 1 and Scope 2)

7.5
5.65

Scope 1: 198,782 (43%)

Scope 2: 176,678 (37%)
Scope 3: 87,212 (20%)

FY23 FY24

Key initiatives
• Completely eliminated coal usage at Unit 1, switching • Equipped facilities with advanced pollution control
to steam from neighbouring industries for operational technologies like electrostatic precipitators and multi-
energy and electricity generation stage scrubbers
• Acquired a stake in Ethan Energy India to utilise their • Implemented real-time monitoring systems to ensure
solar-generated energy continuous compliance with national air quality
standards and to facilitate immediate adjustments
• Installed additional solar power systems across
for enhanced emission control
several units, boosting renewable energy capacity
and reducing reliance on grid electricity

Goals
As we advance, we remain firm on enhancing GHG reduction initiatives and further incorporating renewable
energy into our operations. We continue to progress in managing emissions, ensuring our strategies align with
global sustainability goals, and making a meaningful contribution to the global fight against climate change.
To support these objectives, we rigorously monitor all relevant emissions data and performance metrics, ensuring
they are reported in accordance with recognised environmental standards. Each year, we set ambitious goals to
reduce our energy intensity and emissions across all scopes.

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Water management
We recognise the importance of responsible water stewardship Key initiatives
and the need to optimise our freshwater use and enhance water • We have implemented systems to manage and
efficiency throughout our operations. Our approach focuses on reduce water use across our facilities. During
recycling and reuse technologies, ensuring water management FY24, we consumed 964,759 KL of water and
practices that support both sustainability and operational needs. successfully recycled 284,801 KL using advanced
treatment processes such as reverse osmosis (RO)
and mixed bed treatments, reintegrating it into
our boiler systems
• We have installed an electrolytic water treatment
system specifically for our cooling towers to
enhance water quality and recyclability
• Treatment and recovery of multimedia filter
(MGF) backwash water is accomplished through
sophisticated filtration systems, with the recycled
water being used extensively for horticultural
purposes within our premises
• We actively pursue opportunities to reuse waste
steam from adjacent industries, converting what
would be a waste product into a valuable resource
for our operations
• Installation of flow restrictors in water lines,
particularly in facility washrooms, helps in
reducing water wastage, ensuring efficient usage
across all touchpoints

Goals
Our ongoing goals for water management include further reducing our overall water consumption
and increasing our recycling rate by the end of FY25. These targets are aligned with our broader
environmental objectives to minimise our ecological footprint and promote sustainability within the
community and ecosystems we operate.

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Environment

Waste management
We aim for efficient waste management, ensuring that all Key initiatives
waste types are treated and disposed responsibly. Guided by the • Hazardous waste primarily consists of 13%
principles of Reduce, Reuse, and Recycle, we manage a variety Landfillable, 2% Incinerable, 10% Co-processing,
of waste streams including hazardous, non-hazardous, e-waste, 50% Re-cycled, and 25% Non Hazardous Waste.
and biomedical waste. By doing so, we comply with government We collaborate with authorised vendors for the
regulations and minimise our environmental footprint. responsible disposal and recycling of this waste.
A significant portion of this waste is sent for co-
processing in cement plants, reducing the volume
sent to landfills.
• We prioritise recycling and reuse across all non-
hazardous waste streams, including organic
waste from our facilities, which is composted on-
site. In FY24, 51% of our total waste was recycled
or reused.
• We also focused on the recovery of solvents
from aqueous layers, previously disposed of as
effluents. By partnering with specialised recovery
agencies, we repurposed approximately 7,065 KL
of wastewater.

Goals
We are setting ambitious targets to enhance our waste management strategies. A key focus is to increase
the percentage of hazardous waste directed to co-processing up to 75%. This initiative aims to substantially
reduce the amount of waste sent to landfills. Additionally, we plan to expand our solvent recovery initiatives,
incorporating more solvents and increasing the volume of repurposed wastewater.

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Biodiversity management
We understand the critical importance of biodiversity for Key initiatives
ecosystem health and human well-being and ensure that such • We promote biodiversity conservation through
considerations are integrated into our decision-making processes. awareness programmes within our workforce.
Our commitment to biodiversity management is aligned with the Celebrations of days like World Environment
strictest legal standards and conservation practices. Day and Biodiversity Day involve workshops
and activities.
• Our collaboration with local environmental
bodies, including the Andhra Pradesh Pollution
Control Board, supports widespread community
initiatives such as beach clean-ups and tree-
planting campaigns. The “Green Visakha”
initiative, in partnership with the Andhra
Pradesh Government, has led to the planting
of multiple trees, markedly advancing regional
environmental efforts.

Goals
We aim to continue expanding our green initiatives, fostering a healthier planet through partnerships and
community-focused actions. By setting quantifiable targets for our planting initiatives and enhancing our
educational programmes, we strive to forge a path towards more impactful environmental stewardship.

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Investors
Material issues We aim for transparency and value creation in a
consistent manner. In doing so, we manage to obtain
Ethical governance financial capital to sustain and expand our operations
– strengthening our financial health, enhancing
Risk management shareholder value, and navigating economic challenges
while investing in sustainable health solutions that
Climate risks and resilience
benefit both society and our stakeholders.

Key risks
• Financial risk

• Regulatory risk

• Innovation risk

• Industry risk

SDGs impacted

J5,041 cr J161 cr J86 cr 19%

Revenue from operations Net profit Dividend Paid Dividend payout ratio

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Financial performance analysis

In FY24, we demonstrated a resilient financial performance
despite various market challenges. Our strategic initiatives,
efficient management, and robust operational capabilities
contributed to its overall financial health.

Revenue
We reported total revenues of H5,041 crores in FY24, a 17%
decline from the previous year’s H6,041 crores. This decrease was
primarily due to the completion of a Purchase Order (PO) supply
to a big pharma client in FY23. Excluding this impact, our core
business growth was a robust 9%, driven by strong performance
in the CDMO segment with a 24% increase, as well as solid
contributions from the FDF and Bio divisions.

Profitability
We maintained a healthy gross margin of 51.7%, slightly down
from 54.1% in FY23. The EBITDA stood at H798 crores, reflecting
a 50% decline from the previous year, largely impacted by
lower asset utilisation and upfront costs associated with growth
projects and new initiatives. The EBITDA margin was 15.8%,
down from 26.4% in FY23. Net profit for FY24 was H161 crores,
an 80% decrease compared to H790 crores in the previous year.

Capital structure and liquidity

Our net fixed assets, including capital work-in-progress (CWIP),
increased by H348 crores to H4,048 crores. This rise was mainly
due to investments in the CDMO business, including a new R&D
centre and manufacturing blocks in Hyderabad and Vizag. Net
working capital decreased by H97 crores to H2,457 crores, with
increases in inventories and accounts receivables partially offset
by higher payables. Our total debt increased by H535 crores to
H2,507 crores, primarily to fund key growth projects in the CDMO
divisions and infrastructure-related investments. Despite this
increase in debt, working capital loans remained largely stable.

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Investors

CSR expenditure
Strategic investments and
We are committed to making a positive impact on society
outcomes through its corporate social responsibility (CSR) initiatives.
We continue to make strategic investments to drive innovation Our CSR expenditure of ~H23.31 crores focuses on education,
and operational excellence. These investments are aimed healthcare, and environmental sustainability. We have
at expanding our capabilities, enhancing our research and implemented various projects aimed at improving community
development efforts, and ensuring sustainable growth. Our focus health and education outcomes, as well as initiatives to enhance
on capital expenditure, research and development, employee environmental conservation. By investing in these areas, we aim
benefits, and corporate social responsibility enables us to create to contribute to the well-being of the communities we operate in
long-term value for all stakeholders. and ensure sustainable development.

Capital expenditure
We have committed capital expenditure of ~H700 crores
(14% of revenues) to strengthen our infrastructure and capacity.
A dedicated Animal Health (AH) facility became operational
in November 2023, with commercial supplies expected by
FY25. Additionally, a new R&D centre for small molecules and
high potent APIs is set to be commissioned by Q2 FY25. The
qualification of our Crop Protection unit by the end of FY25 and
a $40 million fermentation-focused capex at Vizag and Mysore
further illustrate our commitment to growth and innovation.

R&D expenditure
Our research and development expenditure of H241 crores
is focused on advancing our capabilities and pipeline. The
investments are geared towards supporting the development of
new products and enhancing our existing offerings. Additionally,
our focus on biocatalysis and continuous flow chemistry is
expected to deliver innovative solutions to our clients.

Employee benefit expense

At Laurus Labs, we prioritise the well-being and development
of our employees. Our electronic learning management
system (LMS) is tailored to specific roles and responsibilities,
ensuring continuous learning and skill enhancement. We
have comprehensive induction programmes for new hires
and specialised cGMP training sessions facilitated by qualified
external trainers. The employee benefit expense for FY24 stood
at ~H639.93 crores.

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Corporate governance and As a responsible pharmaceutical company, we strictly adhere

to the laws of the land, which entails proactive engagement
regulatory compliance with lawmakers, statutory bodies, and industry regulators. This
Our approach to corporate governance extends beyond robust is crucial for conducting our business sustainably and staying
engagement with governmental and regulatory bodies. informed about current and forthcoming changes in policies.
Prioritising long-term sustainability over short-term gains, we We also ensure similar compliance at the local level.
focus on strategies that drive sustainable growth and create Our facilities also undergo periodic audits by global regulatory
lasting value for our stakeholders. Our governance policies bodies such as the USFDA, WHO, and European agencies. We
emphasise total transparency, ensuring that all operations are use advanced software systems to track regulatory changes
conducted in a clear and open manner. and requirements.

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Investors

Strength in numbers

Net sales EBITDA

(H in crores) (H in crores)

6,041 1,573 1,594

1,436
4,814 4,936 5,041

2,832 798
570

FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24

Net sales decreased to I5,041 crores due to EBITDA decreased to I798 crores, reflecting lower
competitive pressures, which impacted overall sales volumes and increased operational costs,
revenue generation. which significantly impacted margins.

Net profit Diluted EPS

(H in crores) (H)

984 18
828 15 15
790

255 5
161 3

FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Net profit dropped to I161 crores primarily due to Diluted EPS fell to I3, reflecting the decrease
reduced EBITDA margins and increased expenses in net profit influenced by lower operational
related to strategic investments and expansions. efficiency and increased costs.

Net worth
(H in crores)

4,038 4,111
3,351

2,597
1,770

FY20 FY21 FY22 FY23 FY24

Net worth increased to I4,111 crores, supported

by modest growth in retained earnings despite a
challenging fiscal environment.

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Dividend Debt-equity ratio

(H in crores) (%)

107 107 107 0.60 0.61

0.56
86 0.52 0.49

27

FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24

Dividend payments were reduced to I86 crores, The debt-equity ratio increased to 0.61,
aligned with the decrease in profitability and indicating a higher level of debt financing
a strategic decision to retain more capital for used during the year for capital expenditures
future investments. and operational needs.

Return on capital employed Return on equity

(%) (%)

34.2 37.9

23.7 24.7
21.3
19.6
13.5 14.4
6.4
3.9

FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Return on capital employed decreased to 6.4%, Return on equity decreased to 3.9%, showing
reflecting lower operational efficiency and reduced profitability from shareholders’
profitability from the capital employed during equity mainly due to lower net income.
the year.

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Conducting
business
responsibly
Our robust governance structure
underscores ethical practices,
transparency, and accountability.
We proactively engage with
our stakeholders, incorporating
their insights and expectations
to enhance our governance
and operational strategies. This
approach helps us navigate
complex regulatory environments
and foster trust and reliability
among our customers, partners,
and the communities we serve.

About the Board 74

Board of Directors 76

Management team 79

Governance approach 82

Risk management 83

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Annual Report 2023-24 73

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

About the Board*

At the core of the Company lies a robust governance approach – the linchpin of our
transparent, accountable, and ethical operations. This approach ensures adherence to
regulatory mandates while safeguarding the interests of all stakeholders and minimising
risks to navigate the path of sustainable growth.

Board composition and leadership*

Our Board of Directors combine Executive, Non-executive, and Independent Directors who contribute their deep expertise and insight.
The Chairman, serving as both a Non-executive and Independent Director, leads with forward-thinking vision and fairness. The Board
members, who have served notable tenures, are key to guiding us towards achieving our objectives, promoting a culture of honesty and
long-term growth.

Chairman of the Board

Board of Directors

Audit Committee Internal Auditors Chief Executive Officer

External Auditors
Nomination and Remuneration Executive Committee
Committee
Functional and Business Heads
Stakeholders’ Relationship
Committee

Corporate Social Responsibility

Committee

Risk Management Committee

Board experience Board age profile

14% 21-30 years 86% >30 years 86% 51-70 years 14% 70-90 years

* As on March 31, 2024

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8
Board meetings
93%
Attendance in
Zero
Incidents of data
57%
Board
14%
Women Directors
held in FY24 Board meetings breaches independence

Ensuring robust oversight Governance principles

Upholding higher than mandated standards, we boast a ratio of
Independent Directors that exceeds the statutory requirement
– with Independent Directors constituting more than 50%
of the Board. This composition enriches the Board with fresh
perspectives and independent oversight while amplifying Ethics and integrity
accountability by ensuring a balanced evaluation of the strategic
The Board upholds the highest standards of ethics and
direction and operational tactics.
integrity. By taking an oath, Directors commit to adhering
to the ‘Code of Conduct’, regulations, and policies
Skills and experience while striving to embody behaviours consistent with the
Company’s values.
Name of the Director

Dr. MVG Rao

Dr. Satyanarayana Chava

Mr. V.V. Ravi Kumar

Dr. Ch.V. Lakshmana Rao

Responsible conduct
Dr. Rajesh Chandy
The Board recognises the Company’s role in contributing
Dr. Ravindranath K to the growth and development of the communities where
it operates. We are committed to being accountable for
Mrs. Aruna Bhinge
our environmental and societal impacts and to evolving
our practices as new priorities emerge. Compliance with
 harma industry experience in sourcing, manufacturing,
P laws and regulations is fundamental to our corporate
marketing and business development responsibility, and we strive to exceed the minimum
Accounting, financial, budget and costing expertise requirements wherever possible.
Legal and HR expertise
Experience in quality
Expertise in corporate governance
Formulation of effective strategy

Accountability and transparency

A governance approach rooted in The Board is dedicated to carrying out credible and

stakeholder engagement comprehensive financial and non-financial reporting,

supported by a robust feedback mechanism. We prioritise
Our governance approach is engineered to cultivate a milieu stakeholders’ interests and adhere to best practices
where all stakeholders thrive. We endeavour to maintain the in disclosures, ensuring our processes are subject
pinnacle of corporate governance, strengthening our repute as to rigorous internal and/or external assurance and
we scale new heights in the pharmaceutical landscape. governance procedures.
This governance architecture is about setting new benchmarks
in corporate stewardship and creating a responsible, responsive,
and resilient organisation that stands ready to embrace future
challenges and opportunities in the healthcare domain.

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Board of Directors*

Dr. Satyanarayana Chava Mr. Ravi Kumar V V Dr. Lakshmana Rao C V

Executive Director and Executive Director and Executive Director – Quality
Chief Executive Officer Chief Financial Officer

Appointment Appointment Appointment

Dr. Satyanarayana Chava has been serving Mr. V V Ravi Kumar has been serving as an Dr. C V Lakshmana Rao joined the Company in
as an Executive, whole-time Director, and the Executive, whole-time Director, and Chief February 2007 and has been a guiding force
Chief Executive Officer of the Company since Financial Officer of the Company since ever since.
January 21, 2006. November 30, 2006.

Skill and expertise Skill and expertise Skill and expertise

Dr. Satyanarayana Chava brings a wealth With extensive expertise in finance and human Dr. Rao brings a vast reservoir of knowledge with
of knowledge and leadership to his role as resources, Mr. Ravi Kumar plays a critical role in over 23 years of experience in quality control,
CEO, driving growth for the Company. His steering the Company’s financial strategies and quality assurance, and regulatory affairs. As the
deep scientific background and extensive HR policies. His adept leadership in handling head of the Quality function, he oversees the
experience in research have been pivotal in the supply chain management department stringent standards that define our products
driving innovative solutions and enhancing has contributed to optimising our operational and services. His leadership has led to the
the Company's market position. His vision and efficiencies and supply chain processes. formulation and execution of the core strategy
leadership ensure our continued success and of the Company.
advancement in a competitive landscape. Qualifications
Mr. Ravi Kumar holds a Master of Commerce Qualifications
Qualifications (M. Com) degree and is a certified Cost Dr. Rao holds a master’s degree in science and
Dr. Chava holds both bachelor’s and master’s Accountant (ICWAI). a Ph.D. from Andhra University. His academic
degrees in science from Andhra University. background lays a solid foundation for his
He furthered his studies as a research scholar at Current external appointments expertise and authority in the field of quality
the College of Science and Technology, Andhra management and regulatory compliance.
University, from 1985 to 1992, culminating in • Laurus Bio Private Limited
earning his Ph.D. in 1992. He has also completed • KRKA Pharma Private Limited Current external appointments
an Executive MBA (PGPMAX) at the Indian Sriam Labs Private Limited
School of Business (ISB), Hyderabad, in 2012.

Current external appointments

• Chemiasoft Private Limited (formerly
known as Laurus Infosystems (India) Private
Limited)
• Laurus Bio Private Limited
• Pharmaceuticals Export Promotion Council
of India
• ImmunoAdoptive Cell Therapy
Private Limited
• KRKA Pharma Private Limited

* As on April 25, 2024

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Mr. Krishna Chaitanya Chava Ms. Soumya Chava Mrs. Aruna Bhinge
Executive Director – Synthesis Executive Director – Generics Non-executive Independent Director

Appointment Appointment Appointment

Mr. Krishna Chaitanya has been associated with Ms. Soumya Chava has been serving as Director Mrs. Aruna Bhinge has been serving as Director
the Company since 2017 and was appointed as since 2021 at Laurus Synthesis Private Limited, since 2016.
Executive Director on April 25, 2024. a wholly owned subsidiary of Laurus Labs. She
was appointed as Executive Director of Laurus Skill and expertise
Skill and expertise Labs on April 25, 2024. Mrs. Aruna Rajendra Bhinge brings over
Mr. Krishna Chaitanya Chava brings over a 19 years of specialised experience in food
decade of experience in strategic management, Skill and expertise security and strategic planning to her role as
business development, and project Ms. Soumya Chava possesses a blend of skills a Non-Executive, Independent Director of the
management. His leadership in the Synthesis in supply chain management and business Company. Her knowledge and leadership in
division since 2017 has been instrumental in development, particularly in the generics these areas have contributed to shaping policies
driving business diversification within CDMO- market. As the Head (Commercial) at Laurus and practices in the APAC region. Her expertise
Synthesis, transforming it into the top profit Labs since August 2023, she has quickly is particularly noted in her work at Syngenta
generator for the Company. His strategic established herself by implementing global India Limited, where she led the Food Security
insights and effective management practices procurement strategies and leading numerous Agenda, orchestrating initiatives that aimed at
have contributed to the division’s ongoing commercial engagements. Additionally, she enhancing agricultural output and sustainability
success and its potential for future growth. effectively manages the Company’s CSR across Asia-Pacific.
initiatives, showcasing her versatile leadership.
Qualifications Qualifications
Mr. Chava holds a Master of Mechanical Qualifications Mrs. Bhinge holds a bachelor’s degree in
Engineering from North Carolina State Ms. Chava holds a Bachelor of Pharmacy science from the University of Poona and a
University, obtained in 2013. Further, he also degree from Osmania University (2007), a master’s degree in science from the University
completed a PGP MFAB from the Indian master’s in clinical research and business of Bombay. Further enriching her scientific
School of Business, Hyderabad. Prior to administration from Campbell University, NC, background, she attained a master’s degree
his tenure at Laurus, he gained experience USA (2007‑2010), and a Postgraduate Diploma in management studies from the University
at Dr. Reddy Laboratories, focusing on in Patents Law from Nalsar University of Law, of Mumbai, which equipped her with
Domestic Formulations Strategy, which has Hyderabad (2011). This ensures deep expertise management skills and an understanding of
provided him with a robust foundation in the across both scientific and managerial domains. complex organisational dynamics.
pharmaceutical industry.
Current external appointments Current external appointments
Current external appointments • Mahindra Agri Solutions Limited
• Laurus Synthesis Private Limited (LSPL)
• Laurus Synthesis (LSPL) • Punjab Chemicals and Crop
• Theia Jewellery Private Limited
• Sriam Labs Protection Limited
• Chemiasoft • Mahindra EPC Irrigation Limited
• Laurus Specialty Chemicals • Laurus Bio Private Limited

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Board of Directors*

Dr. Rajesh Koshy Chandy Dr. Ravindranath Kancherla Mr. Karnam Sekar
Non-executive Independent Director Non-executive Independent Director and Non-executive Independent Director
Chairman of the Board (from May 18, 2024)

Appointment Appointment Appointment

Dr. Rajesh Chandy has been serving as Director Dr. Ravindranath has been serving as Director Mr. Karnam Sekar was appointed as Director on
since 2016. since 2017. April 25, 2024.

Skill and expertise Skill and expertise Skill and expertise

Dr. Rajesh Koshy Chandy is distinguished for his Dr. Ravindranath Kancherla is a globally Mr. Karnam Sekar is a business leader with over
expertise in marketing and entrepreneurship. acclaimed expert in Surgical Gastroenterology four decades of experience in the Financial
As a Non-executive, Independent Director and Laparoscopic Surgery. As the leader of Services industry, specialising in Corporate
of the Company, Dr. Chandy brings his vast Global Hospitals Group, he founded India’s Finance, Treasury Management, and Stressed
academic and practical knowledge to these premier hospital exclusively focused on Asset Management. His tenure at State
fields, enhancing our business operations. His Gastroenterology and a state-of-the-art Bank of India saw him handling significant
contributions are informed by his extensive centre for complex organ transplantations. portfolios, including Chief Credit Officer and
research and teaching experience in consumer His extensive surgical prowess includes liver, Chief Sustainability Officer. At Dena Bank and
behaviour and market dynamics - making him pancreatic, and bile duct resections, as well Indian Overseas Bank, he played a critical role
an asset to our Board. as advanced gastric and reconstructive during challenging times, such as managing
coloproctology procedures. Renowned for his a three-way merger and returning the bank to
Qualifications surgical acumen, Dr. Kancherla has played a profitability after prolonged losses.
Dr. Chandy holds a bachelor’s degree in role in advancing the field of minimally invasive
engineering, specialising in Electronics and surgery. Under his guidance, over 700 surgeons Qualifications
Communications, from Madurai Kamraj have been trained in laparoscopic procedures. Mr. Sekar holds a B.Sc (Ag), a CAIIB, and a
University. He furthered his studies with a Diploma in Management from AIMA. He has
master’s degree in business administration Qualifications also earned diplomas in Financial Services
from the University of Oklahoma, and a Ph.D. in Mr. Kancherla holds an MBBS and a master’s and participated in leadership development
Business Administration from the University of degree in surgery from Madras University, programmes from prestigious institutions
Southern California. as well as Fellowships from the UK Royal including IIM Calcutta, ISB Hyderabad, and
College of Surgeons (FRCS) in both Glasgow Kellogg’s Management School, Chicago.
Current external appointments and Edinburgh.
Dr. Chandy is a professor of marketing at the Current external appointments
London Business School, where he also holds the Current external appointments • UGRO Capital Limited
prestigious Tony and Maureen Wheeler Chair • Penna Cement Industries Limited • InCred Financial Services Limited
in Entrepreneurship. • Global Hospital (North) Limited • InCred Holdings Limited
• Hygieia Global Health Services • InCred Prime Finance Limited
Private Limited
• Global University Foundation
• Global Hospitals Private Limited
• Ravindranath Medical Foundation
• Global Hospitals Hyderabad Private Limited
• CognitiveBotics Technologies
Private Limited
• Global Medlabs Private Limited
• ImmunoAdoptive Cell Therapy
Private Limited

* As on April 25, 2024

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Management team

Dr. V Uma Maheswer Rao Mr. Srinivasa Rao S

President – Chemical R&D President – Manufacturing and Operations

With over 30 years of experience in With 29 years of experience

process R&D and API manufacturing, in production planning
Dr. Rao currently holds directorships and the execution of
at Laurus Bio Private Limited and manufacturing processes,
Sriam Labs Private Limited. Mr. Rao is a director at Sriam Labs
Private Limited.
Key qualifications
Ph.D. in Chemistry from Key qualifications
Osmania University Master’s degree in chemistry from
Nagarjuna University

Mr. Martyn Oliver James Peck Mr. Thomas Versosky

Executive Vice President – Business Development President – FDF, North America

Mr. Peck has 25 years of experience Mr. Versosky has 19 years of

in sourcing, purchasing, sales, and experience in the US generics
market intelligence. market, covering commercial
operations, portfolio management,
Key qualifications business development, licensing,
B.Sc. in Biological & and acquisitions. He is a director at
Medicinal Chemistry from the Laurus Generics Inc.
University of Essex
Key qualifications
B.Sc. in Business from the University
of Phoenix

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Management team

Mr. Rajaram Iyer Mr. Ch. Sita Ramaiah

Executive Vice President – Portfolio Management Executive Vice President – Finance

With 26 years of expertise in Mr. Ramaiah has 23 years of

strategic planning, portfolio experience in treasury, financial
management, and new business reporting, MIS, and taxation.
initiatives, Mr. Iyer holds directorship He holds directorships at Laurus
at Laurus Bio Private Limited. Synthesis Private Limited, and Laurus
Specialty Chemicals Private Limited.
Key qualifications
Master’s degree in analytical Key qualifications
chemistry; EGMP from IIM- Fellow member of the Institute of
Bangalore and MBA (Operations Chartered Accountants of India
Research) (ICAI)

Mr. S. Srinivas Rao Mr. Narasimha Rao DVL

Executive Vice President – Manufacturing Executive Vice President – Synthesis

Mr. Rao has 28 years of experience in With 30 years of experience in the

production and manufacturing. pharmaceutical field, Mr. Narasimha
Rao holds directorship at Laurus
Key qualifications Synthesis Private Limited (LSPL).
Master’s degree in chemistry from
Shridhar University, Rajasthan Key qualifications
Master’s degree in science from
Nagarjuna University

* As on April 25, 2024

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Mr. Narasimha Rao Chava Mr. Ch. Venkata Ramana Rao

Executive Vice President – Human Resources Senior Vice President – Intellectual Property Management

Mr. Chava brings 28 years of Mr. Rao holds 28 years of experience

experience in administration and in process development, IP
human resources functions. He holds management, and litigation.
directorship at Laurus Synthesis
Private Limited (LSPL). Key qualifications
Master’s degree in chemistry; PG
Key qualifications Diploma in Patent Law from IIPS and
Master’s degree in arts from LLB from Osmania University
Andhra University

Mr. Giridhar M Mr. Sumeet Sobti

Senior Vice President – Quality Assurance Senior Vice President – Supply Chain Management

Mr. Giridhar has 32 years of Mr. Sobti brings 28 years

experience in the quality function. of experience in supply
chain management.
Key qualifications
PG Diploma in Computer Key qualifications
Applications from Osmania B. Pharmacy from Jamia Hamdard
University and PGDCA-QM from the University, Delhi
University of Hyderabad

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Governance approach
Our culture is defined by ethical integrity, responsible conduct, and strong governance.
Our Code of Conduct and policies serve as the foundation for our decision-making and
interactions. These guidelines are ingrained in our corporate ethos, ensuring that we
conduct business responsibly and with respect for Human Rights.

Code of conduct Grievance-handling policy

At Laurus Labs, the pillars of integrity, honesty, and ethical A robust grievance redressal mechanism is vital to effective
behaviour are reinforced by our Code of Conduct (CoC), which, governance and employee well-being. We provide multiple
alongside our core values, serves as a guiding beacon. We uphold channels to employees to express concerns, including suggestion
stringent ethical standards that ensure responsible governance boxes, direct access to department managers, HR, and
and integrate environmental, social, and governance (ESG) management, as well as through grievance-handling registers
principles into every facet of our operations. We continually refine and exit interviews. For more information, please refer to the
these policies to stay in line with industry best practices and grievance redressal policy on our website.
ensure their seamless application across our business.
To guarantee adherence to the Code of Conduct and Data privacy policy
manage potential conflicts of interest, we employ consistent Our operations frequently handle sensitive information,
communication methods. These include induction training for including patient data, research findings, and proprietary data.
new hires, annual refresher courses for the staff, and continual Therefore, we adhere strictly to our data privacy policy. This
awareness creation through regular emails. It is essential for policy outlines our principles for processing and protecting
everyone in our organisation, including trainees, contractors, personal data responsibly.
and Directors, to understand and commit to these standards.
Adherence to the Code of Conduct is also integrated into our
employee performance evaluations, creating a culture of ethics
Reporting breaches
and integrity across the Company. Our commitment to transparency and integrity involves reporting
of incidents across various domains such as corruption, bribery,
harassment, breaches of confidentiality, conflicts of interest,
Respecting human rights money laundering, and insider trading. Our approach ensures all
Our commitment to human rights is demonstrated through stakeholders are informed of any issues and the steps taken to
rigorous policies that prohibit child, adolescent, and forced address them.
labour, as well as discrimination and harassment in any form.
We promote gender equality and ensure that all employees are
treated with the highest dignity and respect. Our zero-tolerance
approach extends to all forms of discrimination, whether based
on race, ethnicity, gender, sexual orientation, age, religion, or
disability. Read more on page 51.

Whistleblower policy
Our whistleblower mechanism provides a secure platform for
stakeholders to report any misconduct or unlawful activities
that could negatively affect our reputation or financial stability.
Reports can be made confidentially via email to
wbed@lauruslabs.com, ensuring the whistleblower’s identity
is protected under all circumstances. The audit committee is
charged with overseeing these reports and enforcing disciplinary
measures if necessary.

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Risk management
We operate within a highly regulated pharmaceutical industry, making risk governance
essential to maintaining the safety, efficacy, quality, and compliance of our products. The
Board of Directors is ultimately responsible for overseeing our risk management strategies
and defining the organisation’s risk appetite.

The Risk Management Committee, which includes executive,

non-executive, and independent directors oversees, guides,
Enterprise risk management
and provides assurance on risk-related issues. This committee framework
develops, monitors, and refines the organisation’s risk Our enterprise risk management framework is structured to
management policies and regularly reports back to the Board on identify, assess, manage, and mitigate risks at all organisational
its findings and activities. levels. It includes a systematic process for risk identification,
The Audit Committee assists the Risk Management Committee assessment, and prioritisation, which empowers us to make
by ensuring that risk management controls and systems are informed decisions, allocate resources efficiently, and strengthen
effective and functioning properly. This is complemented by our overall resilience. This approach is integral to our ability
thorough reviews conducted by our internal audit team and to navigate uncertainties and align with our long-term
external audit partners who perform structured and periodic strategic goals.
assessments of our risk management processes.

Risk management framework

Identify risks Define risk Assess and Respond, Monitor and

appetite quantify manage, and review
mitigate

We have a systematic Our clearly defined risk We use various Our response to Continuous
process to identify appetite guidelines techniques like identified risks monitoring and
risks across the specify the acceptable scenario analysis, includes stringent review of risks help
organisation, level of risk, guiding risk registers, and quality control, robust us detect changes
involving stakeholders the management and key risk indicators to pharmacovigilance in their likelihood or
at all levels and employees in their risk- assess and prioritise programmes, strict impact. We maintain
incorporating both taking and decision- risks. This structured regulatory compliance, robust risk-reporting
internal and external making processes. approach helps us and business mechanisms to
expertise to ensure understand the continuity plans to keep the Board
comprehensive potential impacts of mitigate risks. and management
risk coverage. risks on our objectives. informed, facilitating
proactive risk
management
and effective
mitigation strategies.

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Risk management

Brief overview of risks

Risk Mitigation measure Impact
Operational
Capacity planning and optimisation risk Our business team diligently monitors product trends to guarantee F M H
Inadequate capacity may compromise sufficient capacity to meet demand. We maintain robust systems
our ability to adapt to changing customer to regularly assess plant capacity and advocate for improvements 1 2 6
demands, potentially impacting our profit in production practices. This includes implementing preventive
margins. maintenance plans and considering plant redesigns if frequent
issues occur.

Operating risk We actively implement an action plan to mitigate vendor risks F M H S

Failure to effectively manage vendor-cum- from both geographical and single-source perspectives. Despite
customer relationships could negatively challenges in the business environment, we have successfully 1 2 5 6
impact our revenue streams. sustained robust relationships with our vendors and customers.
This approach fosters organisational stability and predictability.
Additionally, our enduring partnerships with major global and
domestic pharmaceutical companies help ensure consistent
revenue visibility.

Environment, Health and Safety (EHS) risk We have intensified our commitment to energy sustainability and H N S
Our business operations are subject to a the rigorous enforcement of our safety culture programmes, which
variety of stringent health, safety, and include specific behavioural requirements. For high-risk sites, we 1 3 4 6
environmental regulations enforced by conduct detailed process-safety audits to ensure the safety of our
governmental and non-governmental manufacturing processes.
organisations worldwide.

Strategic
Industry risk We maintain a strong presence in major global pharmaceutical F I
A downturn in the industry could adversely markets and conducts regular risk assessments. Additionally, we
affect the Company’s performance. are developing a business continuity strategy aimed at minimising 2 5 6
risks associated with our procurement, production, and distribution
processes.

Competition risk To counteract this risk, we are expanding economies of scale F I S

Intense competition in both domestic and across manufacturing, distribution, and procurement to maintain
international markets could diminish our a cost advantage. We are also deepening long-term relationships 2 5 6
market presence. with key customers by delivering superior quality and service.
Further measures include implementing cost-reduction strategies
and improving the efficiency of our manufacturing operations.
Additionally, we are investing in R&D to decrease raw material
usage and enhance productivity.

Innovation risk We leverage our robust R&D capabilities and a proven track record I H
The absence of niche products and in the development, approval, and commercialisation of niche
innovative processes could hinder our products and processes. Our expertise in advanced chemistry, 1 5 6
growth rate. process optimisation, and a specialised product portfolio underpins
our strong global presence and market leadership.

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Risk Mitigation measure Impact

Financial
Foreign exchange rate risk To safeguard against currency fluctuations, we have implemented F
Our expenditure and investments are a robust currency hedging strategy. We continuously assess and
primarily made in Indian currency, while utilise derivatives to manage and mitigate the risks associated 2 5 6
our revenues are diversified across various with currency exchange rate volatility.
international currencies. This exposes our
net expenses, future investments, and other
income to potential vulnerabilities due to
fluctuations in exchange rates.

Compliance
Regulatory risk We ensure rigorous compliance with regulatory standards and F S I
The pharmaceutical industry is stringently maintain open communication with regulatory bodies. Our
regulated and subject to ongoing oversight regulatory affairs team works to secure all necessary approvals, 2 3 5 6
by various regulatory authorities. Failure safeguarding our manufacturing processes and ensuring
to obtain the necessary manufacturing uninterrupted business operations.
approvals could disrupt business operations.

F Financial capital M Manufactured capital I Intellectual capital

Social and
H Human capital S relationship capital N Natural capital

1 Employees 3 Communities 5 Customers

2 Suppliers 4 Environment 6 Investors

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Management Discussion and Analysis

Economic overview
Global
In 2023, the global economy has displayed immense resilience, many developing economies continue to grapple with the dual
achieving a stable growth rate of 3.2%. Despite facing challenges pressures of high inflation and increased external debt. This
such as geopolitical tensions, supply chain disruptions, and an financial strain limits their ability to invest in essential sectors like
energy crisis, the economy has maintained its strength and healthcare and infrastructure, critical for sustainable growth.
stability. This steady performance is projected to continue
Estimates Projections
through 2024 and 2025. Particulars
2023 2024 2025
Inflation pressures, which peaked earlier in the year, were World Output 3.2 3.2 3.2
effectively managed through synchronised monetary policy
Advanced Economies 1.6 1.7 1.8
tightening across the globe. This approach helped avert a
United States 2.5 2.7 1.9
potential recession. Global inflation is forecast to decline steadily,
Euro Area 0.4 0.8 1.5
from 6.8% in 2023 to 5.9% in 2024.
Japan 1.9 0.9 1.0
The United States, in particular, surged past its pre-pandemic
United Kingdom 0.1 0.5 1.5
economic output, strengthened by employment growth and
Canada 1.1 1.2 2.3
consumer spending. This economic vigour was supported by
Other Advanced Economies 1.8 2.0 2.4
government spending and a surprisingly positive labour market
response, including an increase in labour force participation due Emerging Market and 4.3 4.2 4.2
Developing Economies
to heightened immigration.
China 5.2 4.6 4.1
At the same time, Europe’s economic landscape in 2023 tells India 7.8 6.8 6.5
a different story, marked by more modest growth. The region
faces challenges from past high energy costs and the ongoing

3.2%
impacts of tight monetary policies which have stifled economic
dynamism. However, consumer and government spending are
expected to boost critical sectors slowly but steadily.

While some emerging markets have outperformed expectations

Global economic growth rate FY23
following robust domestic demand and improved trade dynamics,

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Outlook India
As the world steps into 2024, global economic growth is expected to hold India has continued on a path of
at an even keel, consistently at about 3.2%. Technology and innovation are sustained growth through FY24, with a
expected to play a pivotal role, particularly as businesses and governments GDP growth rate of 8.2%. This is driven
leverage digital transformations to enhance efficiency and accessibility. This by robust domestic consumption and
shift is likely to stimulate economic activities in sectors that capitalise on manufacturing growth. The nation’s
technological advancements, such as automation and artificial intelligence, economic vigour is further supported
potentially reshaping labour markets and productivity patterns globally. by government-led initiatives such
as the Ayushman Bharat Yojana, the
Furthermore, demographic changes will increasingly influence economic
government’s thrust on infrastructure
outcomes. Aging populations in advanced economies and youthful
and the overall positive market sentiment.
demographics in developing regions will require different policy focuses—
The latest Purchasing Managers’ Index
from pension reforms and healthcare enhancements in the former to
(PMI) has surged to 62.2, the strongest in
education and job creation in the latter. These demographic shifts will also
14 years.
affect consumer patterns, housing markets, and social services, presenting
both challenges and growth opportunities. Although retail inflation came down to
4.85% by the end of FY24 and remained
Geopolitically, the global economic landscape may see increased
within the RBI’s tolerance band of +/-2
fragmentation as nations pursue more localised economic policies and
percentage points, it remained above
reduce dependency on global supply chains. This reorientation towards
the long-term target of 4%. Even as
regional trading partnerships and localised manufacturing could reshape
specific commodity prices surged,
trade dynamics and influence where and how companies invest and operate.
sectors linked closely to consumer goods,
(Source: IMF)
which share a symbiotic relationship
with pharmaceutical production and
distribution networks, adapted efficiently
to these inflationary pressures. This has
fostered an environment conducive to
long-term investment and spending.

8.2%
India’s GDP growth rate through FY24

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 LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Management Discussion and Analysis

Share of private final consumption expenditure in GDP

62

60
Percent

58

56

54
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
(3rd RE) (2nd RE) (1st RE) (PE) (FAE)

Source: NSO, MoSPI

Note: RE stands for Revised Estimates, PE for Provisional Estimates and FAE for First Advance Estimates

Outlook
With expectations of a stable GDP growth rate in the
coming years, India is poised for robust growth. With
inflation projected to stabilise and align with targets
by 2025, the economy stands to benefit from more
relaxed monetary policies, which will likely enhance
investment capacities across various industries.
The government’s continued emphasis on
infrastructure development is anticipated to stimulate
gross fixed capital formation, providing a catalyst
for broader economic activities that underpin the
pharmaceutical sector as well. Moreover, enhanced
rural demand, spurred by initiatives like the PM
Garib Kalyan Anna Yojana, is expected to boost
overall consumption, including healthcare services
and products.

Manufacturing enterprises are set to play a pivotal

role in creating functional ecosystems that generate
jobs, boost income levels, and expand opportunities
for further consumption and investment in critical
infrastructure. These developments are essential for
supporting supply chain and distribution networks.
Policy reforms aimed at streamlining operations and
enhancing vertical markets will aid India’s integration
into global value chains, providing a competitive edge
in international markets.

With ongoing reforms targeting vital areas such as

workforce skilling, healthcare, energy security, MSMEs,
and gender balance, India is advancing towards
becoming a $7 trillion economy by 2030.

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Industry overview
Global pharmaceutical Outlook
The global pharmaceutical industry has witnessed rapid The global pharmaceutical industry is poised for
growth, driven by increasing demand for healthcare services, transformation in the coming years, projected to reach
technological advancements, and a significant increase in chronic approximately $1.7 trillion by 2025 with a CAGR of 4-5%.
diseases. As of 2023, the global pharmaceutical market is valued R&D will remain a cornerstone of the industry, with
at approximately $1.6 trillion, demonstrating robust growth from global spending expected to rise to over $230 billion by
a decade ago when the market was valued at around $950 billion 2026. Innovation will focus heavily on biotechnology,
in 2013. This growth is largely driven by an aging global especially personalised medicine and biologics, which are
population, rising healthcare expenditures, and a strong pipeline anticipated to constitute more than 30% of the market
of pharmaceutical innovations. by 2028. Artificial Intelligence in drug discovery is set to
revolutionise the R&D process, potentially reducing costs

~$1.6 trn
and accelerating development timelines. (Source: Hindu
business line)

Global pharmaceutical market value in FY23 The generics and biosimilars sectors are set to expand
as patents on high-revenue drugs expire. The biosimilars
Regional markets market is projected to grow at a CAGR of 24% from 2022
North America continues to dominate the pharmaceutical to 2027, driven by economic pressures and favourable
sector, accounting for around 48.9% of the global market. The legislation (Biosimilars Council, 2023). Emerging global
United States alone holds a significant share, driven by major health dynamics, including pandemic preparedness and
investments in drug development and a favourable regulatory antimicrobial resistance, will influence industry priorities,
environment. Europe follows, with a market share of 22.5%, potentially increasing public-private partnerships focused
strengthened by its strong pharma infrastructure and extensive on vaccine development and essential medications
research and development activities. The Asia-Pacific region is stockpiling. (World Health Organisation, 2023)
emerging as a key player, with China and India leading due to
Digital therapeutics and connected devices are
their large populations and increasing access to healthcare. In
expected to become integral to patient care, enhancing
2023, the Asia-Pacific market is projected to grow at an annual
treatment personalisation and adherence (Digital
rate of 8.5%, the highest among all regions. (Source: National
Medicine Society, 2023). Moreover, sustainability and
Library of Medicine)
ethical manufacturing will gain prominence within the
industry. Initiatives in green chemistry and reducing the

48.9%
North America’s share in global market
environmental footprint of manufacturing processes
will likely become standard practices due to regulatory
demands and consumer expectations. (Green Chemistry
Initiative, 2023)
Patent cliff and generics
The patent cliff has been a major industry event, with patents
on drugs worth approximately $251 billion in sales set to expire Indian pharmaceutical
between 2021 and 2025. This situation presents an opportunity The Indian pharmaceutical industry stands as a vital
for generic drug manufacturers, which are expected to see component of the global healthcare sector, characterised
increased market share. The generics market is currently growing by its extensive production capacity and pervasive
at a 6.3% CAGR and is expected to continue expanding as distribution network. As one of the world's largest
patents expire and healthcare systems emphasise cost-efficiency. providers of generic drugs, India plays a crucial role
(Source: Financial Express) in global pharmaceuticals, both in terms of volume
and value.
Regulatory trends and impact
The industry is projected to reach $57 billion by 2025,
Regulatory bodies play a crucial role in shaping the
up from $49.78 billion in 2023, demonstrating a CAGR
pharmaceutical landscape. In recent years, there has been a
of approximately 6%. This growth is primarily driven by
push towards accelerated drug approvals, particularly in the U.S.,
rising healthcare access and affordability, government
where the FDA has implemented fast-track and breakthrough
initiatives, and a strong focus on exports. India holds
therapy designations. However, the regulatory environment is also
a unique position in the global market, accounting for
becoming more stringent in areas such as drug pricing and market
about 20% of global exports in terms of volume, making
access, particularly in Europe and the U.S., influencing industry
it the largest provider of generic medicines globally.
strategies and operations.
(Source: Mint)

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Management Discussion and Analysis

Domestic and export markets Outlook

The domestic market is strengthened by public health As the world's largest supplier of generic drugs and a
programmes and the increasing incidence of chronic significant player in global pharmaceutical exports, the Indian
diseases. Meanwhile, the export sector remains robust, pharmaceutical industry's future is driven by both domestic
with the United States being the largest market for demands and international market dynamics. With a projected
Indian pharmaceutical exports, followed by the United market size to expand to $130 billion by 2030, the industry is
Kingdom, South Africa, Russia, and Nigeria. In the FY24, influenced by increasing healthcare access, enhanced medical
pharmaceutical exports from India totalled $27.9 billion, infrastructure, and extensive R&D activities (Source: The Hindu)
representing a growth rate of 9.67% over the previous year.
India's domestic pharmaceutical market, fuelled by rising
(Source: Business Standard)
healthcare spending and an emerging middle class, is expected
Regulatory environment to grow. The penetration of health insurance and government
initiatives like Ayushman Bharat (national health protection
The regulatory landscape in India has been evolving to
scheme) are pivotal, providing a broadened customer base for
support the industry’s growth while ensuring safety and
pharmaceutical products. Moreover, chronic diseases prevalence
efficacy. The Central Drugs Standard Control Organisation
such as diabetes and heart diseases are surging, further boosting
(CDSCO), under the Ministry of Health and Welfare, is the
demand for pharmaceuticals.
principal regulatory authority. Recent reforms include
streamlined approval processes for new drugs and a On the international front, Indian pharmaceutical exports
boost in funding for regulatory infrastructure to align with are expected to continue their upward trend. The United
global standards. States, along with emerging markets in Africa and Southeast
Asia, remains a significant export destination due to the high
Investment in R&D and innovation demand for affordable generic medicines. Indian companies are
In 2023, R&D spending by Indian pharma companies expanding their global footprint by acquiring overseas companies
rose by 7-9%, reflecting an increasing trend towards and establishing production units abroad to navigate regulatory
innovation-driven growth. Companies are progressively landscapes more efficiently and mitigate risks associated
focusing on complex generics, biosimilars, and novel drug with supply chain disruptions (Source: Pharmaceuticals Export
delivery systems as part of their strategic shift from basic Promotion Council of India, 2023).
generic manufacturing to more value-driven operations
Investment in R&D is forecasted to increase, with Indian pharma
(Source: Business Today)
companies expected to allocate around 9-10% of their revenues
Biotechnology and startups towards R&D by 2025. This investment is crucial as the industry
shifts focus from generic drugs to more complex generics,
The biotechnology sector in India is expanding rapidly, with
biosimilars, and novel biologics. The development of these
over 6,000 startups, including numerous startups focusing
high‑margin products is seen as essential for sustaining long-term
on biopharmaceuticals, bioinformatics, and a range of
growth and offsetting the pressures of intense competition in the
sophisticated biotechnologies. Government initiatives such
generics market (Source: Business Today).
as the Biotechnology Industry Research Assistance Council
(BIRAC) have been pivotal in providing funding and support However, challenges such as regulatory compliance, intellectual
for biotech research and startups in the country. Source: property rights issues, and pricing pressures persist. To address
(India Brand Equity Foundation) these, the industry is advocating for more balanced policies that
protect innovation while ensuring medications remain affordable.
Additionally, sustainability and ethical manufacturing practices

20%
Export share of India in the global market
are becoming increasingly important, with companies investing
in green technologies and cleaner production processes to meet
both regulatory requirements and corporate responsibility goals.

6,000+
Biotech startups in India

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Key growth drivers Cost-effective manufacturing and skilled labour

The pharmaceutical industry stands at the cusp of transformative India, known for its robust and cost-effective manufacturing
growth driven by a range of technological, regulatory, and setup, continues to be a global hub for pharmaceutical
demographic factors. These offer opportunities for industry production. The country benefits from a pool of skilled yet
players to expand their capabilities and market presence. cost-efficient labour, making it an attractive destination for
both greenfield and brownfield investments by global private
Innovation and advanced therapies equity firms and large pharmaceutical companies. Foreign
There is tremendous potential for innovation within the Direct Investment (FDI) policies have also been favourable,
pharmaceutical sector, particularly in advanced therapies such with the Indian government allowing up to 100% FDI under the
as cell and gene therapy. Investment in these cutting-edge automatic route for greenfield pharma (Source: Department of
treatments is increasing, with the global cell and gene therapy Industrial Policy and Promotion, Government of India).
market projected to reach $23.3 billion by the end of 2028,
growing at a CAGR of 26.4% from 2023 to 2028 (Source: BCC China+1 strategy
Research) . This surge is driven by the rising prevalence of chronic Amidst geopolitical tensions and supply chain diversification,
diseases and significant advancements in biotechnology. the China+1 strategy has gained traction. Companies are looking
to mitigate risks by diversifying their manufacturing and sourcing
Digital transformation operations beyond China, and India has emerged as a sought-
The industry is also poised to benefit from the optimal utilisation after alternative due to its strong pharmaceutical manufacturing
of digital technologies. Digital health initiatives are becoming capabilities and improved regulatory environment.
essential tools for improving efficiencies in drug development,
patient monitoring, and treatment personalisation. According Transition to product patent regime
to a report by McKinsey, digital transformation could unlock The gradual migration to a product patent-based regime in
approximately $100 billion in value annually across the US developing nations is expected to further protect innovations and
healthcare system by optimising innovation, improving the extend market exclusivity for new drugs. This transition supports
efficiency of research and clinical trials, and building new the development of novel pharmaceuticals and encourages more
tools for physicians, consumers, insurers, and regulators. substantial investment in R&D.
(Source: McKinsey)

Expanding global reach

Opportunities for geographic expansion are particularly
significant. Companies are increasingly looking towards
international territories, extending their footprints in
underpenetrated markets. The Asia-Pacific region, for
example, is expected to experience the fastest growth in the
pharmaceutical sector, largely due to expanding healthcare
infrastructure and favourable demographic trends.

Strategic global collaborations

The industry is seeing more large global pharma players entering
joint ventures with local companies, especially in emerging
markets. These partnerships help to combine local market
knowledge with global expertise, enhancing market access and
distribution networks.

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Management Discussion and Analysis

Company overview
Laurus Labs Limited, a leading integrated pharmaceutical • Effective management of resources (manpower, materials,
manufacturing company based in India, aims to drive sustainable reactors) to optimise production costs and increase margins
growth in the industry. The Company adheres to the mission of
• Implementation of Continuous Process Improvement
providing consistent quality medicines globally and continually
Programmes to ensure operational excellence
invests in future opportunities. With a strong research and
development focus, Laurus Labs has successfully diversified and • Shift towards making processes greener, cleaner, and safer
transformed, tapping into new growth avenues. using Continuous Flow Chemistry and the use of Bio catalysis
Initially established as a company specialising in ARV API, • In-house manufacturing of key intermediates to secure supply
Laurus Labs has expanded from APIs into Formulations, and chain and reduce costs
further broadened its expertise into Contract Development and
• Investments into diversified project portfolio with
Manufacturing of Human Health, Animal Health, Speciality
improved margins
and Crop Science Ingredients. The Company is also investing in
Precision fermentation and establishing a centre of excellence • Efforts to stabilise ARV sales and meet the increasing
for the manufacturing of Cell and Gene Therapy products. global demand for Drug Substance (DS) and Drug Product
This expansion underlines the shift towards becoming a fully (DP) projects
Integrated Pharmaceutical Company, a vision realised through
Threats
consistent perseverance and agility.
• Moderation in growth in key export markets such as the USA,
Opportunities attributed to price erosion and increased regulatory scrutiny
• Significant scope for innovations and strategic investments in • Delays in regulatory approval impacting the timing of new
advanced cell and gene therapies product launches
• Expertise in chemistry and process engineering enhancing • Excess channel inventory for Antiretroviral (ARV) drugs, leading
product development and manufacturing efficiencies in to adverse pricing impacts
various segments
• Delays in the clinical programmes of our partners
• Robust pipeline progress and commercial execution in both
CDMO and CMO projects, enabling rapid scale-up

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Segment-wise performance
Formulation (FDF) CDMO-Synthesis
The Formulation segment witnessed a robust growth of 24%, Despite the absence of large PO business this financial year
driven by the stabilisation of the ARV business and a continued (FY24: nil vs. FY23: H1,424 crores), our core CDMO-Synthesis
volume-led expansion in the developed market portfolio. The business achieved a 24% growth. This was fuelled by a strong
market outlook remains stable, strengthened by multiple product flow of Request for Proposals (RFPs) from major pharmaceutical
launches in the US and increased contract manufacturing and biotech companies, an increased commercial pipeline,
activities which support asset utilisation. The joint venture and preparations for future business growth. We also signed
with KRKA further enhances our generic portfolio and market a multi-year Master Service Agreement (MSA) with a leading
presence. crop protection company. Additionally, a new dedicated animal
Read more on page 22 health DS facility was brought online, and further expansion
has been planned to meet additional opportunities. A new R&D
API unit will be commissioned during Q2 FY25 to augment our R&D
capacities significantly.
The API segment saw a slight decline of 2%. The ARV API
remained steady with a 1% increase and oncology demand Read more on page 18
surge helped revenues grow by 27%. Weak pricing resulted in
a 22% decrease in the revenues from other APIs. We continue Bio
to leverage our large-scale capacity to capitalise on the dual The Bio segment demonstrated a 28% growth, driven by contract
sourcing trend, with a strong focus on long-term growth. manufacturing projects and our expertise in bio-catalysis for
Read more on page 20 select small molecule projects. The R-2 downstream unit was
brought online, and this will help in servicing more projects. We
also initiated construction of fermentation capacities at Vizag
for the production of GMP pharmaceutical intermediates, and
augment capacities for Bio units at Bengaluru.
Read more on page 24

A. FY24 consolidated financials

(` in crores)
FY242 FY231 y-o-y
Revenue 5,041 6,041 (17%)
Gross margin 51.7% 54.1% (240 bps)
EBITDA 798 1,594 (50%)
% to revenue 15.8% 26.4% (1,060 bps)
PBT 236 1,109 (79%)
Net Profit 161 790 (80%)
% to revenue 3.2% 13.1% (1,630 bps)
EPS 2.9 14.6 (80%)

1 FY23 financials information is based on material Purchase Order (PO) supplies to big pharma client, that was completed in December 2022
2 F Y24 results includes i) Cell and Gene related spends of `15 crores under R&D expenses; ii) ImmunoACT share of loss `5 crores; iii) LSPL Unit 2 expenses of `24
crores; and iv) Gross obligation expenses `6 crores

Revenue from operations (net) Employee expenses

Revenue from operations decreased by 17% to `5,041 crores People-related expenses increased to `640 crores in FY24 from
in FY24. Core business revenue growth was 9% excluding `581 crores in FY23. This increase was due to a 400+ increase in
large PO driven by strong FDF, CDMO and BIO with softer employee strength compared to FY23.
performance in API.
Other expenses
Material costs Other expenses including other operating expenses, marketing,
Raw materials consumed remained at 51.7 % in FY24, against R&D and administrative expenses stood at `1,191 crores in FY24
54.1% in FY23. Cost of materials were increased by 240 basis against `1,093 crores in FY23. As a percentage of revenue, other
points due to product mix. expenses stand at 24%, as compared to 18% in the previous year.
During the year, the Company spent on new initiatives like CGT,
Animal Health, etc.

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Management Discussion and Analysis

B. FY24 balance sheet

(` in crores)
FY24 FY23 y-o-y
Net fixed assets (including CWIP) 4,048 3,700 +348
Goodwill and intangibles 265 259 +6
Net working capital (A+B-C) 2,457 2,554 -97
A. Inventories 1,845 1,685
B. Receivables 1,663 1,580
C. Payables 1,051 711
Other assets and liabilities (current and non-current) -291 -549 +258
Cash and cash equivalents 139 46 +93
Equity 4,111 4,038 +73
Debt (current and non-current) 2,507 1,972 +535
Total net assets 6,618 6,010 + 608

In FY24, Laurus Labs demonstrated a robust financial position, marked by significant growth and strategic investments. The total net
assets increased by `608 crores, reaching `6,618 crores, up from `6,010 crores in FY23.

Net fixed assets taken to fund key growth projects in the CDMO divisions and
Net fixed assets, including capital work-in-progress (CWIP), rose infrastructure-related investments. Despite this rise, working
by `348 crores to `4,048 crores. This increase was primarily driven capital loans remained largely stable.
by investments in property, plant, and equipment towards the
C. Ratios
CDMO business, including the new R&D centre in Hyderabad and
(` in crores)
the Intermediate/API manufacturing blocks (LSPL Unit 2 and Unit
As on As on
4) in Vizag. Key ratios*
March 31, 2024 March 31, 2023
Debtors turnover 3.0 3.8
Goodwill and intangibles
Inventory turnover 2.7 3.6
Goodwill and intangibles saw a marginal increase of `6 crores,
Interest coverage ratio 4.6 10.9
bringing the total to `265 crores.
Current ratio 1.23 1.42
Net working capital Debt equity ratio 0.61 0.49
Net working capital decreased by `97 crores to `2,457 crores. Operating profit margin (EBIDTA) % 15.8% 26.4%
This decline was a result of higher payables, which partially offset Net profit margin % 3.2% 13.1%
increases in inventories and accounts receivables. Inventories Return on net worth % 3.9% 19.6%
grew by `160 crores to `1,845 crores, and receivables increased by
`83 crores to `1,663 crores. However, payables rose significantly *All numbers are based on consolidated financials
by `340 crores to `1,051 crores.
Outlook
Other assets and liabilities
Laurus Labs anticipates robust growth in FY25, driven by
Other assets and liabilities, both current and non-current, leveraging our established capabilities to secure medium to
decreased by `258 crores to `291 crores. This reduction long-term contracts and commercial opportunities in late-phase
was mainly due to decreases in customer advances and NCE projects. This positive outlook is further supported by the
capital creditors. industry’s favourable environment. We expect a ramp-up of
growth projects and the commissioning of new assets, which will
Cash and cash equivalents
contribute significantly to our revenue streams.
Cash and cash equivalents saw a substantial increase of
`93 crores, totalling `139 crores by the end of FY24. Despite the headwinds in certain segments of the API portfolio,
we are confident in our ability to offset pricing challenges through
Equity strategic initiatives. These include improving EBITDA margins via
Equity increased by `73 crores, reaching `4,111 crores, reflecting better asset utilisation and productivity gains, while continuing to
the company’s strong financial health and retained earnings. implement new initiatives that drive efficiency and value creation.
Our capital expenditure strategy remains focused on prioritising
Debt investments in high-value and growing market segments. This
Debt, both current and non-current, rose by `535 crores to approach ensures that we are well positioned to capitalise on
`2,507 crores. This increase was mainly due to long-term debt emerging opportunities and sustain long-term growth.

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People rigorous processes for financial reporting, risk management, and

compliance monitoring. Regular internal audits are conducted
Laurus Group employs 6,700+ people directly and another around to assess the effectiveness of controls and identify areas for
6,000+ people indirectly in our business activities. We believe improvement. These audits are complemented by third-party
that the quality of our employees is the key to our success. We reviews to ensure objectivity and enhance the credibility of
are committed to providing necessary training and development the findings.
opportunities to equip employees with requisite skill sets, such as
on the job and professional training programmes to enable them A key component of the internal control framework is the
to adapt to technological advancement. segregation of duties, which minimises the risk of errors and fraud.
Additionally, automated systems and controls are implemented
We undertake various activities for the welfare and work-life to streamline operations and reduce manual intervention,
balance of employees such as annual family day celebrations, thereby increasing accuracy and efficiency. The framework also
kids’ development programmes and provision of safety training emphasises continuous training and awareness programmes for
programmes. We also engage our workforce continuously through employees to ensure that they are well-versed in compliance and
platforms such as town hall meetings, surveys, face to face control practices.
interactions, and the like. We have been consistently recognised
as a Great Place to Work by GPW Institute for the last four years Laurus Labs’ internal control framework is overseen by the Audit
and has received various safety awards from governmental and Committee, which reviews and monitors the effectiveness of
non-governmental institutes. Furthermore, industrial relations the controls on a regular basis. The committee ensures that any
during the year have been cordial like previous years and it goes identified issues are promptly addressed and that corrective
without saying that Laurus Group is committed to take care of actions are implemented.
all Laureates.
Cautionary statement
Internal control This Report contains forward-looking statements, which may
Laurus Labs has established a robust internal control framework be identified by their use of words like ‘plans,’ ‘expects,’ ‘will,’
designed to ensure the integrity of financial reporting, safeguard ‘intends,’ ‘projects,’ ‘estimates or other words of similar meaning.
assets, and enhance operational efficiency. This framework All statements that address expectations, assumptions, or
includes a comprehensive set of policies and procedures that projections about the future, including statements about Laurus
guide all aspects of the Company’s operations. Labs Limited’s strategy for growth, market position, expenditures
and financial results are also forward-looking statements. Laurus
The internal control system at Laurus Labs is aligned with globally Labs Limited cannot guarantee that these assumptions and
recognised standards and practices, ensuring compliance expectations are accurate or will be realised.
with regulatory requirements and internal policies. It includes

Annual Report 2023-24 95

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Board’s Report

To
The Members of
Laurus Labs Limited

Your Directors have pleasure in presenting the 19th Annual Report of the Company together with the Audited Financial Statements for
the Financial Year ended March 31, 2024.

Standalone and Consolidated Financial Highlights:

(` in crores)
Consolidated Standalone
Particulars
2023-24 2022-23 2023-24 2022-23
Gross Income 5,041 6,041 4,812 5,773
Earnings Before Interest, Tax, Depreciation and Amortisation 798 1,594 777 1,487
(EBITDA)
Finance Charges 183 165 151 146
Depreciation/Amortisation 385 324 345 301
Net Profit Before Tax 236 1109 301 1051
Provision for Tax 68 312 78 291
Net Profit After Tax carried to Balance Sheet 168 797 224 760
Interim Dividend paid -- -- 86 107

Company’s Affairs: • The Company has implemented SANK ALP (in

(i) Operations: alliance with DSS+) to enhance organisational safety
and excellence.
During the year under review, the Turnover of your Company
stood at `5,041 crores and registered growth of 9% • During the year, our Investee company ImmunoACT,
excluding one large purchase order (PO). However, due to India’s first CAR-T cell therapy, NexCAR 19 has been
reduction in sale price for ARV prodcuts, non-generation approved from CDSCO on October 12, 2023 to treat r/r
of revenue from the additional manufacturing capacities Lymphoma/Leukamia indication and commercial launch
for want of completing validation protocols, incurred cost and treatment started and CAR-T treatment capacity has
on new areas of business, the turnover and profits have been under expansion to service more patients.
reduced significantly. The profit stood at `168 crores which • The Company has collaborated with IIT Kanpur to in-
is less by 80% over the last year profit of `797 crores. license and fund development of Gene Therapy assets
Notwithstanding this, your company is able to maintain and took all steps to set up a GMP manufacturing facility
gross marging at more than 50% which gives confidence in IIT-Kanpur campus.
and hope that your company will be able to achieve it’s goals • The stake in ImmunoACT has been increased to 33.86%
in forthcoming years. from the earlier 26.62% by investing around `80 crores
During the year under review – and the stake in Laurus Bio has gone up from the earlier
72.61% to 87.58% (both on fully diluted basis) by
• Your Company was able to undertake increasing investing `72 crores;
application of new and sustainable technologies such as • Executed MOU with KRKA d.d., novo mesto, Slovenia to
Flow Chemistry, Bio Catalysis, precision fermentation etc. set up a JV Company which will have significant growth
providing base for rapidly expanding CDMO offering. potential in India and overseas markets.
• Your Company has invested `700 crores during the year • Your Company was certified as Great Place to Work in
on ongoing expansion program so that the Company will fourth consecutive year.
be able to achieve its future goals;
(ii) Outlook:
• Your Company continue to advance on regulatory and
ESG Agenda; signed Greenhouse Gases commitment Business prospects may remain positive because of the
with Science Based Targets Initiative (SBTi); growing global demand for generics and opportunities
provided by the expiry of patents in developed markets. Your
• More than 100 quality audits have been completed by
Company also expects to sustain in overall ARV business due
various customers and regulatory agencies;
to stable demand.

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Management Discussion & Analysis: Disclosure on Large Corporate:

Various business aspects including market conditions, Your Company was qualified as “Large Corporate” in terms
business opportunities, challenges etc. have been discussed of the circular dated November 26, 2018 issued by Securities
at length in the Management Discussion and Analysis and Exchange Board of India (SEBI) for the Financial Years
(MD&A), which forms part of this Annual Report. 2022 and 2023 due to which your Company was required to
raise 25% of its incremental borrowings during the Financial
Dividend: Years 2023 and 2024 through debt securities. For these two
Your directors are pleased to inform you that the Board has years, the incremental borrowings made by the Company
declared the interim dividend @ 20% (i.e. `0.40 per share of and the amount to be raised through debt securities are
the face value of `2/- each) and paid to the Shareholders in as follows:
November, 2023 and the 2nd Interim dividend @ 20% (i.e.
25% to be
`0.40 per share of the face value of `2/- each) and being Incremental sourced through
FY
paid to the shareholders in May, 2024 aggregating to 40% Borrowing made/` debt securities/
Amount/`
dividend i.e. `0.80/- per share of the face value of `2/- each
relating to the FY 2023-24. The dividend payout ratio is 23 200.00 crores 50.00 crores
19% which is within the stipulated maximum of 20% under 24 177.37 crores 44.34 crores
dividend policy.
This criteria is to be met over a period of three years.
Transfer to Reserves: However, SEBI through its circular dated October 19, 2023
Your Company did not transfer any portion of profits changed the criteria for “Large Corporate” according to
to Reserves. which your Company is not qualified as “Large Corporate”
and hence the requirement of raising 25% of its incremental
Share Capital: borrowing through debt securities done away with for the
During the year under review - FY 2025 onwards unless your Company is qualified as Large
Corporate as per the revised criteria in future.
• Company has allotted 3,14,933 (Three lakh fourteen
thousand nine hundred and thirty three only) equity The said circular also stated that for the earlier years the
shares of `2/- to various eligible employees of the Large Corporates like your Company (which are not Large
Company under Employee Stock Option Scheme 2018 Corporates as per the revised circular) may endeavour
upon exercise of their vesting rights in December, 2023. to comply with the requirements of raising 25% of
the incremental borrowings through debt securities or
• As a result, the paid up share capital as on December 8,
alternatively such Large Corporates shall provide a one time
2023 stood at `107,79,31,716/- divided into 53,89,65,858
explanation in their Annual Report for FY 2024.
shares of `2/- each.
The borrowing cost of funds through the route of debt
Change in the nature of the business, if any:
securities is higher by around 1% to 1.50% per annum
There is no change in the nature of the business of the by way of higher interest rate and placement cost and
Company or any of its subsidiaries or associates, during the therefore in order to keep the cost of funds under control
year under review. your Company has decided not to proceed with raising of
incremental borrowings through debt securities as per the
Material Changes and commitments, affecting the
rescinded circular of SEBI dated November 26, 2018 and the
financial position of the Company:
same may be noted by the members accordingly.
There are no material changes and commitments affecting
the financial position of the Company that have occurred Fixed deposits:
between the end of the financial year of the Company to The Company did not accept any fixed deposits.
which the financial statements relate and the date of the
Report i.e. between March 31, 2024 to April 25, 2024.

Annual Report 2023-24 97

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Board’s Report

Subsidiaries, Associates and Joint Ventures:

At the end of the year, the status of the subsidiaries/associates is as follows:

Name of the Holding Company Name of the Subsidiary % shareholding Status

Laurus Labs Limited Sriam Labs Pvt. Ltd. 100% WOS *
Laurus Holdings Limited, United Kingdom 100% WOS
Laurus Synthesis Pvt. Ltd. 100% WOS
Laurus Generics (SA) Pty Ltd. 100% WOS
Laurus Specialty Chemicals Pvt. Ltd. 100% WOS
Laurus Bio Pvt. Ltd. 87.58% Subsidiary
Immunoadoptive Cell Therapy Private Limited 33.86% Associate
Ethan Energy India Private Limited 26% Associate
Laurus Holdings Ltd., UK Laurus Generics GmbH, Germany @ 100% WOS
Laurus Generics Inc., USA @ 50.76% # Subsidiary

* WOS means Wholly Owned Subsidiary

@ Laurus Generics GmbH, Germany and Laurus Generics Inc., are step-down subsidiaries of Laurus Labs Limited
# Balance 49.24% is held by your Company.

As per Sec.129(3) of the Companies Act, 2013 the Board Meetings:
consolidated financial statement of the Company and all its The Board and Committee meetings are pre-scheduled
Subsidiaries and Associates prepared in accordance with the and a tentative calendar of the meetings shall be finalised
applicable accounting standards forms part of this Annual in consultation with the Directors to facilitate them to plan
Report. Further, a statement containing salient features of their schedule. However, in case of urgent business needs,
the financial statements of our subsidiaries and associates approval is taken by passing resolutions through circulation.
in the prescribed form in AOC-1 is attached as Annexure-1 to During the year under review, eight (8) board meetings were
the Directors’ Report. held. The details of the meetings including the composition
of various committees are provided in the Report on
Consolidated financial Statements:
Corporate Governance.
Consolidated Financial Statements have been prepared
by the Company in accordance with the requirements of Performance Evaluation:
applicable Accounting Standards and the provisions of  The formal annual evaluation of the performance of
Companies Act, 2013. As per the provisions of Section the Board as well as non-independent directors was
136 of the Companies Act, 2013, the Company has undertaken by the Nomination and Remuneration
placed separately the audited financial statements of its Committee. The performance of Board Committees and
subsidiaries on its website www.lauruslabs.com and copies of individual independent directors was undertaken by the
of audited financial statements of the subsidiaries will be Board members.
provided to the Members at their request.
The manner of the evaluation of the Board and other
Particulars of Loans, Guarantees and Investments: Committees has been determined by the Nomination
The Company has also issued a Corporate Guarantee to and Remuneration Committee as per SEBI circular dated
the Bankers for the loans sanctioned to Laurus Synthesis January 5, 2017.
Private Limited and for Laurus Bio Private Limited and the
Declaration from Independent Directors:
guarantees provided are well within the limits prescribed
under Sec.186 of the Companies Act, 2013. The independent directors have submitted the declaration
of independence stating that they meet the criteria of
Board of Directors and Key Management Personnel: independence as prescribed in sub-section (6) of Section 149
As per the provisions of the Companies Act, 2013, Mr. V.V. of the Companies Act, 2013 as well as under Regulation 16(1)
Ravi Kumar will retire at the ensuing annual general meeting (b) of SEBI (Listing Obligations and Disclosure Requirements)
and, being eligible, seek reappointment. The Board of Regulations, 2015.
Directors recommends his re-appointment.
Policy on Directors’ Appointment and Remuneration:
During the year, Mr. Chandrakanth Chereddi has resigned The policy of the Company on directors’ appointment
as a non-executive Director from the Board w.e.f. and remuneration, including criteria for determining
October 21, 2023. qualifications, positive attributes, independence of a director

98 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

and other matters are adopted as per the provisions of Dividend Distribution Policy:
the Companies Act, 2013. The remuneration paid to the The web link of the Dividend Distribution Policy has been
Directors is as per the terms laid out in the nomination and provided below for the perusal of the shareholders.
remuneration policy of the Company.
h ttps://w w w.lauruslabs.com/Investors/PDF/Policies/
The nomination and remuneration policy is adopted by the Dividend_Policy.pdf
Board and the salient features of the policy are as follows:
Risk Management:
• N
 on-Executive and Independent Directors (“NEDs”)
Your Company had formulated a risk management policy
will be paid remuneration by way of sitting fees
for dealing with different kinds of risks that it faces in the
and commission. The remuneration/ commission/
day-to-day operations of the Company. Risk Management
compensation to the NEDs will be determined by
Policy of the company outlines different kinds of risks and
the Nomination and Remuneration Committee
risk mitigating measures to be adopted by the Board. The
(“Compensation Committee”) and recommended to
Company has adequate internal financial control systems
the Board for its approval.
and procedures to mitigate the risk. The risk management
• A
 s approved by the shareholders at the shareholders procedure is reviewed by the Risk Management Committee
meeting held on July 20, 2016, commission will be paid and Board of Directors on a regular basis at the time of review
at a rate not exceeding 1% per annum of the profits of of quarterly financial results of the Company. Further, your
the Company computed in accordance with section 198 Company had constituted a Risk Management Committee
of the Act. which lays down various risk mitigating practices that your
• T
 he payment of the Commission to the NEDs will be Company is required to implement in the Company.
placed before the Board every year for its consideration
and approval. The sitting fee payable to the NEDs for Adequacy of Internal Financial Controls:
attending the Board and Compensation Committee The internal financial controls with reference to the Financial
meetings will be fixed, subject to the statutory ceiling. Statements, apart from statutory audit, internal audit and
The fee will be reviewed periodically and aligned to cost compliance, are adequate to the size and operations of
comparable best in class companies. the Company.
• N
 EDs will not be eligible to receive stock options under the
Directors’ Responsibility Statement:
existing employee stock option scheme(s) (“ESOP”) of
the Company. In terms of Section 134(3)(c) of the Companies Act, 2013,
the Board of Directors of the Company states that:
• T
 he compensation paid to the executive directors
(including the Managing Director) will be within the (a) 
i n the preparation of the annual accounts, the
scale approved by the shareholders. The elements of applicable accounting standards had been
the total compensation, approved by the Compensation followed along with proper explanation relating to
Committee will be within the overall limits specified under material departures;
the Act.
(b) 
t he directors had selected such accounting policies
• The Company’s total compensation for Directors and Key and applied them consistently and made judgments
Managerial Personnel as defined under the Act / other and estimates that are reasonable and prudent so as
employees will consist of: to give a true and fair view of the state of affairs of the
− fixed compensation Company at the end of the financial year and of the
profit and loss of the Company for that period;
− variable compensation in the form of annual incentive
− benefits (c) 
the directors had taken proper and sufficient care for
the maintenance of adequate accounting records
− work related facilities and, perquisites
in accordance with the provisions of Companies Act
Changes made to the policy: Nil for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
The Nomination and Remuneration Policy is placed on the
Company’s website and the following is web address of the (d) 
the directors had prepared the annual accounts on a
said policy. going concern basis;
h ttps://w w w.lauruslabs.com/Investors/PDF/Policies/ (e) 
the directors had laid down internal financial controls
Remuneration_Policy.pdf to be followed by the company and that such internal
financial controls are adequate and were operative
effectively; and

Annual Report 2023-24 99

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Board’s Report

(f) 
t he directors had devised proper systems to ensure issued in Form MR-3 is in Annexure-3 to this Report.
compliance with the provisions of all applicable There are no qualifications, reservations or adverse
laws and that such systems were adequate and remarks in the Secretarial Audit Report.
operative effectively.
Auditors’ Qualifications/reservations/adverse remarks/
Related Party Transactions: Frauds reported:
In accordance with Sec 134(h) of the Companies Act, 2013 There are no Auditors’ Qualifications or reservations
and Rule 8(2) of Companies (Accounts) Rules, 2014, the or adverse remarks on the financial statements of the
particulars of contracts or arrangements entered into by the Company. The Auditors have not reported any frauds to the
Company with the Related Parties referred to in Sec.188(1) of Audit Committee as prescribed under Sec. 143(12) of the
the Act, have been provided in Form AOC-2 and attached the Companies Act, 2013.
same as Annexure-2.
Significant and material orders passed by the Courts/
The details of related party disclosures as stated in the notes Regulators:
to the financial statements forms part of this annual report.
There are no significant and material orders passed by the
Vigil Mechanism: Courts or Regulators against the Company.

The Company established a whistleblower policy in order to Rating:

assure that the business is conducted with integrity and that
CARE has continued with its rating of “AA Stable” on the long
the Company’s financial information is accurate.
term bank facilities of the Company and Reaffirmed A1+ on
Auditors: the short term bank facilities of the Company.

(i) Statutory Auditors: Insurance:

M/s. Deloitte, Haskins & Sells LLP, Firm Registration All properties and insurable interests of the Company
No.117366W/W-100018 have been appointed as including buildings, plant and machinery and stocks have
Statutory Auditors of the Company for the second been fully insured.
term of Five years from the conclusion of 17th AGM
till the conclusion of 22nd AGM of the Company at a Corporate Social Responsibility initiatives:
remuneration to be decided by the Board. Pursuant to the provisions of Section 135 and Schedule VII
of the Companies Act, 2013, CSR Committee of the Board
(ii) Cost records and Auditors:
of Directors had framed the policy on Corporate Social
The Company is required under Section 148(1) of the Responsibility and the relevant details have been provided in
Companies Act, 2013 read with Companies (Audit Annexure-4 and forms part of this Report.
& Auditors’) Rules, 2014 and the Companies (Cost
Records and Audit) Amendments Rules, 2014, the Annual Return:
Company is required to maintain the cost records in As required pursuant to section 92(3) of the Companies
respect of its business and accordingly such accounts Act, 2013 and rule 12(1) of the Companies (Management
and records are made and maintained. and Administration) Rules, 2014 (as amended), a copy of
Your Board has re-appointed M/s. Sagar & Associates, the Annual Return of the Company shall be placed on the
Cost Accountants, as the Cost Auditors of the Company Website of the Company at www.lauruslabs.com.
for the Financial Year 2024-25. As required by the
 Statement of Particulars of Appointment
Act, the remuneration of the Cost Auditors has to be
and Remuneration of Managerial Personnel/
ratified by the Members and accordingly the resolution
employees:
relating to the Cost Auditors is being placed before the
Members for their ratification. In accordance with the provisions of Section 134 and
Rule 5 of Companies (Appointment and Remuneration
(iii) Secretarial Auditors & Secretarial Audit Report: of Managerial Personnel) Rules, 2014, the statement of
Pursuant to the provisions of Section 204 of the particulars of appointment and remuneration of managerial
Companies Act, 2013 and Rule 9 of the Companies personnel and employees is attached in Annexure-5 to
(Appointment and Remuneration of Managerial this Report.
Personnel) Rules, 2014, the Company has re-appointed
Human resources:
Y. Ravi Prasada Reddy, Practising Company Secretary
(CP No. 5360) proprietor of RPR & Associates, to The management believes that competent and committed
undertake the Secretarial Audit of the Company for the human resources are vitally important to attain success in
financial year 2023-24. The Secretarial Audit Report the organisation. In line with this philosophy, utmost care
is being exercised to attract quality resources and suitable

100 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

training is imparted on various skill-sets and behavior. The certificate of the Practising Company Secretary Mr.Y.Ravi
Various initiatives were undertaken to enhance the Prasada Reddy with regard to compliance of conditions of
competitive spirit and encourage bonding teamwork among corporate governance as stipulated under Schedule V (E) of
the employees and could achieve the targeted growth in the the SEBI (LODR) Regulations, 2015 is annexed to the Report
performance of the Company. on Corporate Governance.

Employee Stock Options: Business Responsibility and Sustainability Report (BRSR)

During the year, the Company has allotted 3,14,933 (Three The Listing Regulations mandate the inclusion of the BRSR
lakh fourteen thousand nine hundred and thirty three only) as part of the Annual Report for top 1000 listed entities
equity shares of `2/- to various eligible employees of the based on market capitalisation. In accordance with the
Company under Employee Stock Option Scheme 2018 upon Listing Regulations, we have integrated BRSR disclosures into
exercise of their vesting rights in December, 2023. our Annual Report.

The details of stock options are as mentioned in Annexure-6 Awards:

and forms part of this Report. Further, the details of the
• Dr. Satyanarayana Chava, Founder & CEO has been
stock options stated in the notes to accounts of the financial
awarded by Business Today as the Best CEO 2024 in
statements also forms part of this Annual Report.
Pharma & Health Care sector.
Conservation of energy, technology absorption • The following Laurus Labs Units won the Confederation of
and foreign exchange earnings/outgo: Indian Industry (CII), Andhra Pradesh – Industrial Safety
The information required under Section 134 (3) (m) of the Excellence Awards for the Performance Year 2023: -
Companies Act, 2013, read with Rule 8(3) of Companies − Laur us La bs L imite d, Unit-2: B e s t S afet y
(Accounts) Rules, 2014, is appended hereto as Annexure-7 Performer Award
and forms part of this Report.
− Laurus Labs Limite d, Unit- 4: B e s t S afety
Policy on Prevention of Sexual Harassment: performer Award

The Company has formulated and implemented a policy for − Laurus Labs Limited, Unit-5: Industrial Safety
Prevention of Sexual Harassment of Women at workplace. Leadership Award
During the year under review, the Company has not received Acknowledgements:
any complaints under the policy.
Your Directors would like to place on record their sincere
The Company has many systems, processes and policies appreciation to customers, business associates, bankers,
to ensure professional ethics and harmonious working vendors, government agencies and shareholders for their
environment. We follow Zero Tolerance towards Corruption continued support.
and unethical conduct. These are ensured through Whistle
Your Directors are also happy to place on record their
Blower Policy, Anti-Corruption Policy, Gift Policy, Sexual
sincere appreciation to the co-operation, commitment and
Harassment Policy and Redressal Guidelines.
contribution extended by all the employees of the Laurus
The Company has complied with provisions relating to the family and look forward to enjoying their continued support
constitution of Internal Complaints Committee under the and cooperation.
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. For and on behalf of the Board

Corporate Governance: Dr. Satyanarayana Chava Ravi Kumar V.V

A separate section on Corporate Governance practices Executive Director & Executive Director &
followed by your Company, as stipulated under Schedule Chief Executive Officer Chief Financial Officer
V(C) of the SEBI (LODR) Regulations, 2015 is enclosed and DIN: 00211921 DIN: 01424180
forming part of this report.
Hyderabad
June 06, 2024

Annual Report 2023-24 101

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – 1

FORM AOC – 1
PART – A: SUBSIDIARIES INFORMATION

S.No. Particulars Details

1 Name of Subsidiary Sriam Labs Laurus Synthesis Laurus Holdings Laurus Generics Laurus Laurus Specialty
Private Limited Private Linmited Ltd. UK SA (Pty) Ltd. Bio PrivateChemicals Private
Limited Limited
2 Reporting period for the subsidiary April 1, 2023 to March 31, 2024
concerned, if different from the holding
company's reporting period
3 Reporting currency and Exchange rate as Indian Rupees Indian Rupees GB Pound (in Cr.) ZAR (in Cr.) Indian Rupees Indian Rupees
on the last date of the relevant Financial (in Cr.) (in Cr.) (in Cr.) (in Cr.)
year in the case of foreign subsidiaries
4 Share capital 14.20 0.11 0.11 0.00 0.26 0.09
5 Reserves & Surplus 41.54 110.76 (0.14) 2.43 52.26 -
6 Total Assets 68.34 852.49 2.08 4.49 240.28 -
7 Total Liabilities 12.59 741.62 2.11 2.06 187.76 -
8 Investments -
9 Turnover 72.84 85.68 1.95 - 164.17 -
10 Profit before taxation 13.21 (40.63) (0.17) (3.23) 6.28 -
11 Provision for taxation 3.43 (11.74) 0.00 0.13 1.89 -
12 Profit after taxation 9.77 (28.89) (0.17) (3.36) 4.39 -
13 Proposed Dividend - - - - - -
14 % of shareholding 100% 100% 100% 100% 91.14% 100%

Laurus Holdings Ltd. is a UK based foreign subsidiary and its local currency is GBP

Exchange rate 104.0528852 INR/GBP for profit and loss account and 105.211 INR/GBP for Balance sheet items

Laurus Generics SA (Pty) Ltd. is a South Africa based foreign subsidiary and its local currency is ZAR

Exchange rate 4.42124 ZAR/INR for profit and loss account transactions and 4.41521 ZAR/INR for Balance sheet items.

PART – B: ASSOCIATES AND JOINT VENTURES

S.No. Name of Associates/Joint Ventures Immunoadoptive Cell Tgerapy Private Limited Ethan Energy India Pvt. Ltd.
1 Latest Audited Balance Sheet Date / Management 31-03-2024 31-03-2024
Accounts Date
2 Shares of Associate/Joint Ventures held by the Company 34.89% 26%
on the year end
No. 996 Equity shares of `10/- each, fully paid up 7,40,000 Equity shares of `10/-
6011 CPS of `10/- each (`10 /- each fully paid up) each, fully paid up
Amount of Investment in Associates/Joint Venture / ` in 126.02 3.90
Crores
Extend of Holding % 34.89% 26.00%
3 Description of how there is significant influence Shareholding & Shareholders Agreement (SHA) Shareholding & Shareholders
Agreement (SHA)
4 Reason why the associate/joint venture is not NIL NIL
consolidated
5 Networth attributable to Shareholding as per latest 106.14 (11.57)
audited Balance Sheet (` Cr.)
6 Profit/Loss for the year:
i. Considered in Consolidation (` Cr.) (5.29) (0.65)
ii. Not Considered in Consolidation (` Cr.) (9.87) (1.84)

102 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure – 2

AOC – 2
Particulars of contracts/arrangements entered into by the Company with related parties
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2)
of the Companies (Accounts) Rules, 2014)

(Referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s
length transactions under third proviso thereto)

1. Details of contracts or arrangements or transactions not at arm’s length basis: Nil

All contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the
Companies Act, 2013 are at arm’s length basis.

2. Details of material contracts or arrangement or transactions at arm’s length basis: The details are set out in the standalone
financial statements forming part of this Annual Report. The same may be referred for this purpose.

Salient terms of the

Nature of contracts Duration of the contracts
Nature of the related contracts or arrangements
Nature of relationship / arrangements / / arrangements / Amount
party or transactions including
transactions transactions
the value, if any

Appropriate approvals have been taken for related party transactions. No amount was paid as advance.

Annual Report 2023-24 103

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – 3

Form No. MR-3

SECRETARIAL AUDIT REPORT
For the Financial Year ended March 31, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To E. The following Regulations and Guidelines prescribed under

The Members, the Securities and Exchange Board of India Act, 1992 (‘SEBI
M/s. LAURUS LABS LIMITED Act’) to the extent applicable to the Company:-
Laurus Enclave, Plot Office 01, E. Bonangi Village,
(a) 
The Securities and Exchange Board of India
Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021.
(Substantial Acquisition of Shares and Takeovers)
We have conducted the Secretarial Audit on the compliance Regulations, 2011;
of applicable statutory provisions and the adherence to good
(b) The Securities and Exchange Board of India (Prohibition
corporate practices by M/s. Laurus Labs Limited (hereinafter
of Insider Trading) Regulations, 2015 and amendments
referred to as the “Company”). Secretarial Audit was conducted
from time to time;
in a manner that provided us a reasonable basis for evaluating
the corporate conducts/statutory compliances and expressing our (c) The Securities and Exchange Board of India (Issue of
opinion thereon. Capital and Disclosure Requirements) Regulations,
2018 and amendments from time to time;
Based on our verification of the Company’s books, papers, minute
books, forms and returns filed and other records maintained by (d) The Securities and Exchange Board of India (Share
the Company and also the information provided by the Company, Based Employee Benefits and Sweat Equity)
its officers, agents and authorised representatives during the Regulations, 2021;
conduct of Secretarial Audit, the explanations and clarifications
(e) The Securities and Exchange Board of India (Issue
given to us and the representations made by the Management,
and Listing of Debt Securities) Regulations, 2008 (Not
we hereby report that in our opinion, the Company has, during
applicable to the Company during the financial year);
the audit period covering the Financial Year ended on March 31,
2024, (i.e. from April 1, 2023 to March 31, 2024) complied with the (f) The Securities and Exchange Board of India (Registrars
statutory provisions listed hereunder and also that the Company to an Issue and Share Transfer Agents) Regulations,
has proper Board processes and compliance-mechanism in 2018 regarding the Companies Act and dealing
place to the extent, in the manner and subject to the reporting with client;
made hereinafter:
(g) The Securities and Exchange Board of India (Delisting
The Company is carrying on the business of offering broad and of Equity Shares) Regulations, 2018 (Not applicable to
integrated portfolio of Active Pharmaceutical Ingredients (API) the Company during the financial year);
including intermediates, Finished Dosage Forms (FDFs), Contract
(h) The Securities and Exchange Board of India (Buyback
Research Services, Biologics and Cell and Gene Therapy to cater to
of Securities) Regulations, 2018 (Not applicable to the
the needs of the global pharmaceutical industry.
Company during the financial year).
We have examined the books, papers, minute books, forms and
F. The Memorandum and Articles of Association.
returns filed and other records maintained by the Company to the
applicable extent for the financial year ended on March 31, 2024 G. The Company has identified and confirmed the following
according to the provisions of: laws as specifically applicable to the Company.

A. The Companies Act, 2013 (the “Act”) and the rules (a) Drugs (Control) Act, 1950
made thereunder;
(b) Drugs and Cosmetics Act, 1940 and the Drugs and
B. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and Cosmetics Rules, 1945
the rules made thereunder;
(c) Narcotic Drugs and Psychotropic Substances Act, 1985
C. The Depositories Act, 1996 and the Regulations and
(d) The Food Safety and Standards Act, 2006
Bye‑laws framed thereunder;
(e) The Indian Boilers Act, 1923
D. Foreign Exchange Management Act, 1999 and the Rules
and Regulations made thereunder to the extent of Foreign We have also examined compliance with the applicable
Direct Investment, Overseas Direct Investment and External clauses/regulations of the following:
Commercial Borrowings;

104 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

(i) Auditing and Secretarial Standards issued by The We further report that during the financial year the Company
Institute of Company Secretaries of India (ICSI) had following events which had bearing on the Company’s affairs
in pursuance of the above referred Laws, Rules, Regulations,
(ii) The Securities and Exchange Board of India (Listing
Standards etc.,
Obligations and Disclosure Requirements) Regulations,
2015 and the Listing Agreements entered into with BSE 1. The Company has subscribed during the year an amount
Limited and National Stock Exchange of India Limited; of `80 crores to the capital of M/s. Immunoadaptive Cell
Therapy Private Limited, thereby the equity capital has gone
During the period under review the Company has complied with
up from 27.57% to 34.89%.
the provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. mentioned above. 2. The Company has purchased 37,641 equity shares of `10/-
each of Laurus Bio Pvt. Ltd. from one of the Promoters
We further report that, having regard to the compliance system
and others for an amount of `71.59 crores, thereby the
prevailing in the Company and on examination of relevant
shareholding of the Company has gone up from 76.60% to
documents and records in pursuance thereof, on test check basis,
91.14%.
the Company has complied with all the applicable laws.
3. The Company has issued and allotted 2,83,790 equity shares
We further report that: of `2/- each and 31,143 equity shares of `2/- each to the
The Board of Directors of the Company is duly constituted with eligible employees during December, 2023 under Grant-1
proper balance of Executive Directors, Non-Executive Directors and Grant-2 of ESOP 2018 schemes respectively.
and Independent Directors. The changes in the composition of
the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the
Act/Listing Agreement. For RPR & ASSOCIATES
Company Secretaries
Adequate notice is given to all directors to schedule the board
meetings, agenda and detailed notes on agenda were sent in
Y Ravi Prasada Reddy
advance as required, and a system exists for seeking and obtaining
Proprietor
further information and clarifications on the agenda items before
FCS No. 5783, C P No. 5360
the meeting and for meaningful participation at the meeting.
UDIN: F005783F000239863
All the decisions at Board Meetings and Committee Meetings Peer Review Certificate No. 1425/2021
are carried out unanimously as recorded in the minutes of the
meetings of the Board of Directors or Committee of the Board, Place: Hyderabad
as the case may be. We further report that there are adequate Date: April 25, 2024
systems and processes in the Company commensurate with
the size and operations of the Company to monitor and ensure This Report is to be read with our letter of even date which is
compliance with applicable laws, rules, regulations and guidelines. annexed as Annexure and forms part of this report.

Annual Report 2023-24 105

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure

To
The Members,
M/s. LAURUS LABS LIMITED
Laurus Enclave, Plot Office 01, E. Bonangi Village,
Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021.

Our report of even date is to be read along with this letter.

1. Maintenance of Secretarial records is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.

2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in Secretarial
records. We believe that the process and practices followed by us provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

4. Wherever required, we have obtained the Management representations about the compliance of laws, rules and regulations and
happening of events etc.,

5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedure on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company.

For RPR & ASSOCIATES

Company Secretaries

Y Ravi Prasada Reddy

Proprietor
FCS No. 5783, C P No. 5360
Peer Review Certificate No. 1425/2021

Place: Hyderabad
Date: April 25, 2024

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Annexure – 4

Annual Report on CSR Activities for FY 2023-24

1 Brief outline on CSR Policy of the Commpany: The scope of the CSR Policy would including all/any acitivities specified in
Schedule VII of the Companies Act, 2013

2 Composition of the CSR Committee:

Number of Number of meetins

Sr. meetings of CSR of CSR Committee
Name of the Director Designation/Nature of Directorship
No. Committee held attended during
during the year the year
1 Mr. VV Ravi Kumar Chairman of the Committee. Executive Director 3 3
and Chief Financial Officer
2 Mrs. Aruna Bhinge Member and Independent Director 3 3
3 Mr. Chandrakanth Ch Member and Non-Executive Director 2 1
4 Dr. CV Lakshmana Rao Member and Executive Director 1 1

3 Provide the web-link where Composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on
the website of the Commpany: www.lauruslabs.com

4 Provide the executive summary along with web-link(s) of Impact assessment of CSR projects carried out in pursuance of sub-rule
(3) of Rule 8, if applicable: www.lauruslabs.com

5 (a) Average Net Profit of the Company as per sub-section (5) of Section 135: `1,100.48 crores

(b) Two percent of average net profit of the Company as per sub section (5) of Section 135: `22.01 crores

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil

(d) Amount required to be set off for the financial year if any: Nil

(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: `22.01 crores

6 (a) Amount spent on CSR Projects (both Ongoing Projects and other than Ongoing Projects): `22.28 crores

(b) Amount spent in Administrative Overheads: NIL

(c) Amount spent on Impact Assessment, if applicable: `4.00 Lakhs

(d) Total amount spent for the Financial year [(a)+(b)+(c)]: `22.28 crores

(e) CSR Amount spent or unspent for the Financial Year:

Total amount spent for the

Amount unspent (in `)
FY (in `)
Total amount transferred to Unspent
CSR Account as per Section 135(6) Amount transferred to fund specified under Schedule
Amount Date of Transfer VII as per second proviso to Section 135 (5)
Name of the Fund Amount Date of Transfer
22.28 cr. Nil Not Applicable

(f) Excess Amount for set off, if any:

Sr.
Particulars Amount (`in crores)
No.
1 2 3
i Two percent of average net profit of the company as per sub-section (5) of section 135 `22.01 crores
ii Total amount spent for the Financial Year `22.28 crores
iii Excess amount spent for the Financial Year [(ii)-(i)] `0.27 crores
iv Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any Nil
v Amount available for set off in succeeding Financial Years [(iii)-(iv)] Nil

Annual Report 2023-24 107

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – 4

7 Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years: Not Applicable

1 2 3 4 5 6 7 8
Amount Amount transferred to a fund specified Amount
Balance Amount
transferred to under Schedule VII as per second remaining to
Preceding in Unspent CSR Amount spent
Sr. Unspent CSR proviso to Section 135(6), if any be spent in
Financial Account under in the Financial Deficit, if any
No. Account under succeeding
Year(s) subsection (6) of Year (In `) Amount Date of
Section 135(6) financial years
section 135 (in `) (In `) Transfer
(In `) (In `)
1 FY-1
2 FY-2
3 FY-3

8 Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial
Year: No

If Yes, enter the number of Capital assets created/ acquired

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the
Financial Year:

Particulars of the property or

asset(s) [including complete Pincode of the Details of entity/ Authority/ beneficiary
S. No. Date of Creation Amount spent
address and location of the property or asset(s) of the registered owner
property]
1 2 3 4 5 6
CSR Registration Registered
Name
No. if applicable Address
Not Applicable

9 Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per Section 135(5):
Not Applicable


Sd/- Sd/-
Dr. Satyanarayana Chava Mr. V. V. Ravi Kumar
Whole time Director & CEO Chairman of CSR Committee
Whole time Director & CFO

108 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure – 5.1

Employee Worked for full Financial year & Received Aggregate Remuneration of not Less Than One Hundred And Two Lakh Rupees / Top
Ten Employees (Including Employer Contribution to PF)
Last
Remuneration Whether
Nature Qualification Date of Employment No. of
Sr. Name of the received Age of relative
Designation Contract/ & Experience commencement held before Equity
No. Employee (CTC in `) employee of
Permanent in years of employment joining the shares held
FY 2023-24 Director
Company
1 Dr. Satyanarayana Executive 13,47,14,409 Permanent M.sc., Ph.D; 21-Jan-06 63 Matrix 124126740 Yes
Chava* Director & Chief 38 Laboratories
Executive Officer Ltd.
2 Mr. Venkata Ravi Executive 4,38,11,860 Permanent M.Com, 30-Nov-06 59 Matrix 7705000 No
Kumar Vantaram # Director & Chief FCMA; 35 Laboratories
Financial Officer Ltd.
3 Dr. Chunduru Executive 2,87,33,337 Permanent M.sc., Ph.D; 07-Feb-07 62 Mayne 13450145 No
Venkata Lakshmana Director 36 Pharma,
Rao Australia
4 Mr. Srinivasa Rao President 1,89,11,604 Permanent M.Sc; 30 02-Apr-08 56 Matrix 845108 No
Suryadevara Laboratories
Ltd.
5 Mr. Krishna President 1,61,28,115 Permanent M.S; M.B.A, 17-Apr-17 34 Dr.Reddy's 20699 Yes
Chaitanya Chava 10 Laboratories
Ltd.
6 Mr. Sumeet Sobti Senior 1,60,40,050 Permanent B.Pharmacy: 14-Sep-15 52 Ranbaxy 74470 No
Vice-President 29 Laboratories
Ltd.
7 Mr. Chagarlamudi Executive Vice- 1,42,54,945 Permanent FCA; 24 20-Aug-07 51 Matrix 550000 No
Sita Ramaiah President Laboratories
Ltd.
8 Mr. Suryadevara Executive Vice- 1,21,58,124 Permanent M.Sc; 31 27-Jul-06 57 Auctus Pharma 125000 No
Srinivasa Rao President
9 Mr. Narasimha Rao Executive Vice 1,24,36,235 Permanent M.A, 31 14-Mar-07 56 Dolphin 119675 Yes
Chava President Chemicals PVt
Ltd.
10 Mr. Rajaram Executive Vice- 1,23,56,879 Permanent MICA,MBA: 04-Mar-20 50 Mankind 6703 No
President 26 Pharma
11 Mr. Girish Kottapalli Vice-President 1,08,17,881 Permanent B.Tech;25 10-Dec-10 49 Ecologic 133820 No
Technologies
Pvt. Ltd.
12 Mr. Babchand Vice-President 1,03,06,161 Permanent M.P.I.B, 23 01-Nov-07 48 Matrix 327145 No
Nurubasha Laboratories
Ltd.
13 Mr. Radhakrishna Vice-President 1,06,39,887 Permanent M.SC.,PH.D; 05-Nov-11 54 Johnson & 167000 No
Sunkara 28 Johnson
14 Mr. Giridhar Senior Vice- 1,05,51,647 Permanent B.SC,PGDCA, 19-Nov-07 56 Matrix 121080 No
Mukkamala President PGDCAQM, Laboratories
27 Ltd.

Note: 1. Dr. Satyanarayana Chava is holding shares on behalf of M/s. NSN Holdings as an Authorised Representative

2. Mr. V.V. Ravi Kumar is holding 6705000 shares on behalf of M/s. Leven Holdings as an Authorised Representative and 1000000
shares on his individual capacity

Employee Worked Part of the Financial year & Received Aggregate Remuneration of not Less Than Eight Lakh Fifty Thousand Rupees Per
Month (Including Employer Contribution to PF)
Remuneration
Nature Qualification Date of Date of Last Employment No. of
S. Name of the received Age of
Designation Contract/ & Experience commencement exit of held before joining Equity
No. Employee (CTC in `) employee
Permanent in years of employment employment the Company shares held
FY 2023-24
1 Mr. Executive 88,44,658 Permanent M.Sc; 04-Sep-07 30-Jun-23 55 Matrix 485000
Dammalapati Vice- PGDEM; Laboratories Ltd.
Venkata President PGDCA;30
Lakshmi
Narasimha Rao
2 Ms. Soumya Executive 59,33,585 Permanent MS, PG 02-Aug-23 continuing 37 Theia Jewellery 10440
Chava Vice- Diploma Pvt. Ltd.
President in patent
Laws;13

Annual Report 2023-24 109

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – 5.2

Information pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

1 The ratio of remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Sr. No. Name & Designation Ratio

1 Dr. Satyanarayana, Whole-time Director & CEO 294
2 Mr. V. V. Ravi Kumar, Whole-time Director & CFO 96
3 Venkata Lakshmana Rao C, Whole-time Director 63
4 Mr. Chandrakanth Chereddi, Director 6
5 Dr. Ravindranath K, Independent Director 5
6 Mrs. Aruna Bhinge, Independent Director 6
7 Dr. Rajesh Koshy Chandy, Independent Director 9
8 Dr. M. Venu Gopala Rao, Independent Director 6

2 The percentage increase in remuneration of each Director, Chief Financial Officer; Chief Executive Officer, Company Secretary or
Manager, if any, in the financial year:

Increase in
Name & Designation
percentage
1 Dr. Satyanarayana, Whole-time Director & CEO (25%)
2 Mr. VV Ravi Kumar, Whole-time Director & CFO (8%)
3 Venkata Lakshmana Rao C, Whole-time Director (9%)
4 Mr. Chandrakanth Chereddi, Director (45%)
5 Dr. Ravindranath K, Independent Director 10%
6 Mrs. Aruna Bhinge, Independent Director 7%
7 Dr. Rajesh Koshy Chandy, Independent Director 2%
8 Dr. M.Venu Gopala Rao, Independent Director 4%
9 Mr. G. Venkateswar Reddy, Vie President (Legal & Secretarial) and Company Secretary 0%

3 The percentage increase in the median remuneration of employees in the financial year was 3%
4 The number of permanent employees on the rolls of the Company as on March 31, 2024 was 6,007
5 Average increment of other than the managerial personnel 13%

It is hereby affirmed that the above remuneration is as per the Remuneration policy of the Company

110 Chemistry for Better Living

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Annexure – 6

Details of Employees Stock Option Scheme

Pursuant to Rule 12(9) of Companies (Share Capital and Debentures) Rules, 2014

1. The details of Stock Options as on March 31, 2024 under the Employees Stock Option Scheme-2016 of the Company are as under:

S.No. Particulars Grant-1 Grant-2 Grant-3 Grant-4 Total

a Options granted
Options granted initially 1,78,438 5,37,150 2,70,750 3,50,500
Additional options granted pursuant to Bonus Issue 5,15,814 - -
Total Options granted 6,94,252 5,37,150 2,70,750 3,50,500
Total Options in force - After Split 6,94,252 25,14,750 2,70,750 3,50,500 38,30,252
b Options vested 6,06,500 23,55,100 -- -- 29,61,600
c Options exercised 6,06,500 23,55,100 -- -- 29,61,600

d The total no. of shares arising as a result of exercise of 6,06,500 23,55,100 -- -- 29,61,600
options
e Options lapsed - After Split 87,752 1,59,650 28,500 2,75,902
f The Exercise Price (`) 137.50 292.00 350.00 301.50 --
g The Exercise Price (`) - After Split 58.40 -- -- --
h Variations of terms of Options Nil Nil Nil Nil Nil
i Money realised by exercise of options 8,33,93,750.00 13,75,37,840.00 -- -- 22,09,31,590.00
j Total number of options in force 0 0 2,42,250 3,50,500 5,92,750

Employee-wise details of options granted during the year 2023-24 to –

(i) Key Managerial Personnel : Nil

(ii) Any other employee who receives a grant of options in any one year of options amounting to five percent or more of options
granted during that year: Nil

(iii) I dentified employees who were granted options, during any one year, equal to or exceeding one percent of the issued capital
(excluding outstanding warrants and conversions) of the company at the time of grant: Nil

2. The details of Stock Options as on March 31, 2024 under the Employees Stock Option Scheme-2018 of the Company are
as under

S.No. Particulars Grant-1 Grant-2 Grant-3 Total

a Options granted
Options granted initially 1,49,750 7,07,000 5,000 8,61,750
Additional options granted pursuant to Split 5,99,000 -- -- 5,99,000
Total Options in force - After Split 7,48,750 7,07,000 5,000 14,60,750
b Options vested 5,84,620 1,55,428 -- 7,40,048
c Options exercised 5,84,620 31,143 -- 6,15,763
d The total no. of shares arising as a result of 5,84,620 31,143 -- 6,15,763
exercise of options
e Options lapsed 1,64,130 1,00,438 -- 2,64,568
f The Exercise Price (`) 255.50 -- -- --
The Exercise Price (`) - After Split 51.10 356.00 350.00 --
g Variations of terms of Options Nil Nil Nil Nil
h Money realised by exercise of options 2,98,74,082.00 1,10,86,908.00 -- 4,09,60,990.00
i Total number of options in force -- 5,75,419 5,000 5,80,419

Annual Report 2023-24 111

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – 6

Employee-wise details of options granted during the year 2023-24 to –

(iv) Key Managerial Personnel : Nil

(v)  ny other employee who receives a grant of options in any one year of options amounting to five percent or more of options
A
granted during that year: Nil

(vi) Identified employees who were granted options, during any one year, equal to or exceeding one percent of the issued capital
(excluding outstanding warrants and conversions) of the company at the time of grant: Nil

3. The details of Stock Options as on March 31, 2024 under the Employees Stock Option Scheme-2021 of the Company are as under:

S.No. Particulars Grant-1 Total

a Options granted 7,87,500 7,87,500
b Options vested -- --
c Options exercised -- --
d The total no. of shares arising as a result of exercise of options
--
--
e Options lapsed -- --
f The Exercise Price (`) 301.50 --
g Variations of terms of Options Nil Nil
h Money realised by exercise of options -- --
i Total number of options in force 7,87,500 7,87,500

Employee-wise details of options granted during the year 2023-24 to –

(i) Key Managerial Personnel : Nil

(ii) Any other employee who receives a grant of options in any one year of options amounting to five percent or more of options
granted during that year: Nil

(iii) Identified employees who were granted options, during any one year, equal to or exceeding one percent of the issued capital
(excluding outstanding warrants and conversions) of the company at the time of grant: Nil

112 Chemistry for Better Living

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Annexure – 7

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

A. Conservation of energy:
(i) The steps taken or impact on • Energy optimisation through HVAC system in Unit-2
conservation of energy • New Tata E.V vehicles purchased for Unit-1&3
(ii) The steps taken by the Company for • During the year 42,594 tons of steam purchased from waste heat recovery boiler which saved
utilising alternate sources of energy natural resource and energy.
• We have taken significant step towards sustainability by securing a 26% stake in Ethan
Energy India. This strategic move empowers us to fully harness the clean energy generated by
Ethan Energy India’s 10 MW solar plant
• We have taken the initiative to install solar power panels in Unit-2 & Unit-6.
(iii) The capital investment on energy • Energy optimisation through HVAC system approximately 2.5 crore.
conservation equipment

B. Technology Absorption:
(i) The efforts made towards technology • Energy optimisation through HVAC system in Unit-2
absorption
(ii) The benefits derived like product • During the year 42,594 tons of steam purchased from waste heat recovery boiler which saved
improvement, cost reduction, product around 117,672 GJ of energy.
development or import substitution • Step towards increasing green energy, 74,426 GJ of solar power generated and consumed
during the year 2023-24
• 6,223 GJ of Power saved by Installing Variable-frequency drive (VFD) at various equipment’s
across the organisation
(iii) In case of imported technology
(imported during the last three years
reckoned from the beginning of the
financial year)
(a) The details of technology Nil
imported
(b) The year of import
(c) Whether the technology has
been absorbed
(d) If not fully absorbed, areas
where absorption has not taken
place, and the reasons thereof;
(iv) The expenditure incurred on Research ` 219 crores (Opex), ` 22 crores (Capex) and Total ` 241 crores
and Development

C. Foreign Exchange Earnings and Outgo:

Total Forex Inflow ` 3,054 crores

Total Forex Outflow ` 1,215 crores

Annual Report 2023-24 113

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

ESOP Certificate

To
The Board of Directors
M/s. Laurus Labs Limited
Laurus Enclave, Plot Office 01, E. Bonangi Village,
Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021.

Secretarial Auditors Certificate on implementation of “Employee Stock Option Scheme 2016”, “Employee Stock
Option Scheme 2018” and “Employee Stock Option Scheme 2021” of “Laurus Labs Limited”
1. This certificate is issued in accordance with the terms of our engagement letter dated April 8, 2024.

2. We, RPR & Associates, Company Secretaries, the Secretarial Auditors of M/s. Laurus Labs Limited (the Company) having its
registered office at Laurus Enclave, Plot Office 01, E. Bonangi Village, Parawada Mandal, Anakapalli District, Andhra Pradesh –
531021, have examined the implementation of Employee Stock Option Scheme 2016, Employee Stock Option Scheme 2018 and
Employee Stock Option Scheme 2021 of the Company for the year ended March 31, 2024 as stipulated under Regulation 13 of the
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (“SEBI Regulations”),
as amended from time to time.

Management’s Responsibility
3. The implementation of the said Schemes, in accordance with the SEBI Regulations, as amended from time to time, and also in
accordance with the resolutions passed by the Members of the Company is the responsibility of the Management of the Company.
The Management of the Company is also responsible for design, implementation and maintenance of internal control relevant
to the preparation and presentation of the said Schemes, maintenance of proper books of account, other relevant records and
documents as prescribed under the aforesaid Regulations.

Auditor’s Responsibility
4. Our responsibility, for the purpose of this certificate, is limited to the review of the procedures and implementation thereof, adopted
by the Company for the year ended March 31, 2024 in respect of the compliance with the aforesaid SEBI Regulations.

Opinion
5. Based on our examination as above, and according to the information and explanations provided to us by the Management of the
Company, we certify that the Employee Stock Option Scheme 2016, Employee Stock Option Scheme 2018 and Employee Stock
Option Scheme 2021 the of the Company, have been implemented for the year ended March 31, 2024 in accordance with the
provisions of SEBI Regulations, as amended from time to time, and in accordance with the resolutions passed by the Members of
the Company.

Restriction on Use
6. This Certificate is addressed to and provided to the Board of Directors of the Company for the purpose of placing the same before
the Members of the Company at the ensuing Annual General Meeting of the Company and should not be used for any other
purpose without our prior written consent.

For RPR & ASSOCIATES

Company Secretaries
UDIN: 005783F000239973

Y. Ravi Prasada Reddy

Proprietor
FCS No.5783, CP No.5360
Peer Review Certificate No. 1425/2021

Place: Hyderabad
Date: April 25, 2024

114 Chemistry for Better Living

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Report on Corporate Governance

1. Company’s Philosophy: 2. Board and its Composition:

Laurus Labs works towards improving health outcomes for Your Board comprises optimal combination of Independent
patients around the world through the manufacture of high- Directors, Non-Executive Directors and Executive Directors
quality medicines and active pharmaceutical ingredients having in-depth knowledge in the business of the
with one quality products for all Markets. Our Corporate pharmaceutical industry. The Chairman, who is a Non-
Governance policies and procedures set the standard for how Executive and Independent Director, and the Chief Executive
we engage with our stakeholders. We prioritise the long-term Officer (CEO) of the Company have their own roles for better
over the short-term to drive sustainable growth and create Corporate Governance Standards. The size and composition
lasting value. With empowerment and accountability as its of the Board confirms to the requirements of the Corporate
two pillars, our Corporate Governance code guides all our Governance code under SEBI (Listing Obligations and
actions. We aim for total transparency and meet our societal Disclosure Requirements) Regulations, 2015, and the brief
commitments by being a responsible corporate citizen. profiles of the Directors are placed in the Company’s website
https://www.lauruslabs.com/leadership.html.

The composition of directors, their attendance and other details are as follows:

No of
Directorship
in listed Number of memberships /
entities chairmanship in Audit /
including Stakeholders Committee(s) Whether
Attendance at Board
Sl this listed including this listed entity present at the
Name of the Director & DIN Category of Directorship Meetings
No. entity (Refer (Refer Regulation previous AGM
Regulation 26(1) of Listing
25(1) of Regulations)
Listing
Regulations)
Held Attended Chairman Member
1. Dr. Malempati Venugopala Chairman, Non-Executive and 8 8 1 1 0 Yes
Rao Independent Director
DIN: 00012704
2. Dr. Chava Satyanarayana Promoter, Executive Director 8 8 1 0 0 Yes
DIN: 00211921 and Chief Executive Officer
3. Mr. Venkata Ravi Kumar Promoter, Executive Director 8 7 1 0 1 Yes
Vantaram and Chief Financial Officer
DIN: 01424180
4. **Dr. Chunduru Venkata Promoter and Executive 8 8 1 0 1 Yes
Lakshmana Rao Director
DIN: 06885453
5. *Mr. Chereddi Chandrakanth Non-Executive Director 4 4 1 1 1 Yes
DIN: 06838798

6. Mrs. Aruna Rajendra Bhinge Non-Executive and 8 8 3 0 3 Yes

DIN: 07474950 Independent Director
7. Dr. Rajesh Koshy Chandy Non-Executive and 8 7 1 0 1 Yes
DIN: 07575240 Independent Director
8. **Dr. Ravindranath Non-Executive and 8 6 1 1 1 Yes
Kancherla Independent Director
DIN: 00117940

The Board met eight times in Financial Year 2023-24. The following are the dates in which the Board Meetings were held:

April 27, 2023; July 27, 2023; September 11, 2023; October 20, 2023; November 6, 2023; January 24, 2024; January 25, 2024 and
March 15, 2024

* Mr. Chandrakanth Chereddi has resigned as a Director from the Board w.e.f. October 21, 2023.
** D
 r. C.V. Lakshmana Rao has been appointed as member of Stakeholders Relationship Committee, Dr. Ravindranath Kancherla has been appointed
as Chairman of Stakeholders Relationship Committee and Mrs.Aruna Bhinge has been appointed as member of Nomination and Remuneration
Committee w.e.f. October 21, 2023 in place of Mr. Chandrakanth Chereddi.

Annual Report 2023-24 115

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

The names of the listed entities where the person The Board members possess the following core
is a director and the category of directorship: skills / expertise / competencies:
Other than on the Board of the Company, which is a listed Dr. M V G Rao – a,b,e and f of above
entity, the following Directors are holding directorship in
Dr. Satyanarayana Chava – a, d, e and f of above
other listed entities as shown below:
Mr. V. V. Ravi Kumar – b, c, e and f of above
Mrs. Aruna Bhinge as an independent Director in:
Dr. C. V. Lakshmana Rao – d, e and f of above
a. Punjab Chemicals and Crop Protection Ltd. as
Independent Director; Dr. Rajesh Chandy – a, b, e and f of above
b. Mahindra EPC Irrigation Limited as Independent Mrs. Aruna Bhinge – a, b, e and f of above
Director
Dr. Ravindranath Kancherla – a, e and f of above
Other than the above, no other directors are directors on any
other listed entity. Confirmation about Independent Directors:
This is to confirm that in the opinion of the board, the
Disclosure of relationships between directors inter-se: independent directors fulfil the conditions specified in
M r. C h a n d ra ka n t h C h e re d d i is s o n - i n - l a w o f SEBI (LODR) Regulations, 2015 and are independent of
Dr. Satyanarayana Chava. Other than these two directors, the management.
none of the directors are related to any other director.
As required by SEBI (LODR) Regulations, 2015, a certificate
Number of shares held by non-executive directors: from Company Secretary in Practice that none of the
directors on the Board of the Company have been debarred
Mr. Chandrakanth Chereddi, Dr. MVG Rao, Mrs. Aruna
or disqualified from being appointed or continuing as
Bhinge, and Mr. Ravindranath Kancherla are holding 42,000,
directors of companies by the Board / Ministry of Corporate
38,500, 17,500 and 5,60,000 equity shares respectively as
Affairs or any such statutory authority, is attached to this
on March 31, 2024. Dr. Rajesh Chandy is not holding any
Report as Annexure-A.
shares or convertible instruments in the Company.
Further, Annual Secretarial Compliance Report issued by the
Details about familiarisation programme: Company Secretary in Practice pursuant to Circular dated
During the year, no new Director was inducted on the board. February 8, 2019 issued by SEBI is also attached to this
Report as Annexure-B.
The senior management personnel of the Company
regularly make presentations to the Board members on the Details of Directors proposed for re-appointment
operations of the Company, its plans, strategy, risks involved, and regularisation at the Annual General
new initiatives etc. and seek their views and suggestions on Meeting:
the same. The Board members have been provided with
Mr. V.V. Ravi Kumar shall retire by rotation and being
various policies of the Company including Code of Conduct
eligible, seek re-appointment. The details of the director are
for Directors and Senior Management Personnel etc.
as follows:
The details of these familiarisation programs have been
placed on the Company’s website at Mr. V. V. Ravi Kumar:
Mr. Ravi Kumar is an Executive Director at Laurus Labs
https://w w w.lauruslabs.com/corporate- governance-
since 2006. He holds bachelor’s and master’s degrees
familiarization.html
in Commerce from Andhra University and is a fellow
List of core skills / expertise / competencies identified by member of the Institute of Cost Accountants of India
the board as required in the context of its business(es) (formerly ICWAI). With over three decades of experience in
and sector(s) for an efficient functioning and those finance, information technology, HR and supply chain, he
actually available with the Board: contributes significantly to formulating and executing core
strategies for the Company. His knowledge in dealing with
a. Hands on Pharma industry experience in sourcing,
mergers, acquisitions and joint venture management in
manufacturing, marketing and business development
the global context helped Laurus Labs emerge as a global
b. Accounting, Financial, Budget, Costing expertise pharmaceutical player.
c. Legal and HR expertise
d. Experience in Quality
e. Expertise in Corporate Governance
f. Formulation of effective strategy

116 Chemistry for Better Living

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Directorship Details:
Sr. Name of the Companies/Bodies Corporate / Firms / Nature of Interest or Concern / Date on which interest or
Share holding
No. Association of Individuals change in Interest or Concern Concern arose / changed
1. Laurus Labs Limited Whole-time Director 77,05,000 Shares 30/11/2006
CIN: L24239AP2005PLC047518 and Member (1.43%)
2. Laurus Bio Private Limited Director Nil 20/01/2021
CIN: U02423KA2005PTC036770
3. Laurus Holdings Limited (UK Company) Director Nil 10/07/2017
4. Leven Holdings Managing Partner 80% 02/07/2021

Committee Membership Details:

Sr.
Name of the Company Name of the Committee Whether Chairman/Member
No.
1. Laurus Labs Limited Stakeholders Relationship Committee Member
CIN: L24239AP2005PLC047518
2. Laurus Labs Limited Corporate Social Responsibility Chairman
CIN: L24239AP2005PLC047518
3. Laurus Labs Limited Risk Management Committee Member
CIN: L24239AP2005PLC047518

3. Committees of the Board:

(I). Audit Committee
The Audit Committee of the Board is headed under the stewardship of Dr. Malempati Venugopala Rao. The other members
of the Committee are Mrs. Aruna Bhinge and Dr. Rajesh Chandy. The Composition of the Audit Committee meets the
requirement of Section 177 of the Companies Act, 2013 read with SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Audit Committee reviews reports of the Internal Auditors, meets Statutory Auditors as and when
required and discusses their findings, suggestions, observations and other related matters. It also reviews major accounting
policies followed by the Company. The terms of reference of this Committee are as per SEBI (LODR) Regulations, 2015,
as amended.

 uring the year, the Audit Committee met 4 (Four) times on April 27, 2023; July 27, 2023; October 20, 2023 and January 24,
D
2024 and the attendance of members is as follows:
Sl No. of No. of
Name of the Audit Committee Member
No. Meetings held Meetings attended
1. Dr. Malempati Venugopala Rao 4 4
Chairman & Independent Director
DIN: 00012704
2. Mrs. Aruna Bhinge 4 4
Independent Director
DIN: 07474950
3. Dr.Rajesh Koshy Chandy 4 4
Independent Director
DIN: 07575240
4. *Mr. Chandrakanth Chereddi 3 3
Non-Executive Director
DIN: 06838798

* Mr. Chandrakanth Chereddi has resigned as a Director from the Board w.e.f. October 21,2023.

(II). NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee of the Board is headed by Dr. Ravindranath Kancherla. The other members of
the Committee are Dr. Rajesh Koshy Chandy and Mrs.Aruna Bhinge.

Pursuant to the resignation of Mr. Chandrakanth Chereddi as a Director from the Board, the committee has been
reconstituted and Mrs. Aruna Bhinge has been appointed as member of the Committee w.e.f. October 21, 2023 in place of
Mr. Chandrakanth Chereddi.

The Nominations & Remuneration Committee has reviewed and evaluated the performance evaluation criteria for Board
and its Committees and Directors including Independent Directors as per SEBI Circular dated January 5, 2017.

During the year, the Nomination and Remuneration Committee met 3 (Three) times on April 26, 2023; January 23, 2024 and
March 14, 2024 and the attendance of members is as follows:
Annual Report 2023-24 117
LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

Sl No. Name of the Committee Member No. of Meetings held No. of Meetings attended
1. Dr. Ravindranath Kancherla. 3 3
Independent Director
DIN: 00117940
2. Dr. Rajesh Koshy Chandy 3 3
Independent Director
DIN: 07575240
3. Mr. Chandrakanth Chereddi 1 1
Non-Executive Director
DIN: 06838798
4. Mrs. Aruna Bhinge 2 2
Independent Director
DIN: 07474950

(III). STAKEHOLDERS RELATIONSHIP COMMITTEE:

The Stakeholders Relationship Committee is previously headed under the stewardship of Mr. Chandrakanth Chereddi and the
other members of the committee were Mr. V.V. Ravi Kumar and Dr. K. Ravindranath.

Pursuant to the resignation of Mr. Chandrakanth Chereddi as a Director from the Board, the committee has been reconstituted
and is now headed under the stewardship of Mr. Ravindranath Kancherla. The Other members of the Committee are Mr. V.V.
Ravi Kumar and Dr. C.V. Lakshmana Rao w.e.f. October 21, 2023.

Mr. G. Venkateswar Reddy, Company Secretary is the Compliance Officer of the Company.

 The Company has received 24 complaints during the year 2023-24; resolved 24 complaints and no complaints were pending
as on March 31, 2024.

During the year, the Stakeholders’ Relationship Committee met once on April 26, 2023.

(IV). CSR COMMITTEE:

The CSR Committee was headed by Mr. V.V. Ravi Kumar, the other members being Mrs. Aruna Rajendra Bhinge and
Mr. Chandrakanth Chereddi.

 Pursuant to the resignation of Mr. Chandrakanth Chereddi as a Director from the Board, the committee has been
reconstituted and Dr. C.V. Lakshmana Rao has been appointed as member of CSR Committee w.e.f. October 21, 2023 in place
of Mr. Chandrakanth Chereddi.
During the year, the CSR Committee has met 3 (Three) times on April 26, 2023; October 19, 2023 and January 23, 2024 and
attendance of members is as follows:
No. of
Sl No. Name of the Committee Member No. of Meetings attended
Meetings held
1. Mr. V. V. Ravi Kumar 3 3
Executive Director & CFO
DIN: 01424180
2. Mrs. Aruna Bhinge 3 3
Independent Director
DIN: 07474950
3. Mr. Chandrakanth Chereddi 2 1
Non-Executive Director
DIN: 06838798
4. Dr. C V Lakshmana Rao 1 1
Executive Director
DIN: 06885453

(V). RISK MANAGEMENT COMMITTEE:

The Risk Management is headed by Dr. Satyanarayana Chava, CEO of the Company and the following are the other members:

Mr. V.V.Ravi Kumar

Mr. Chandrakanth Chereddi

Dr. Rajesh Koshy Chandy

Dr. C.V. Lakshmana Rao

118 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

The Risk Management Committee shall review the Risk Management Plan of the Company at periodic intervals and takes
steps to identify and mitigate the risks involved.

During the year, The Risk Management Committee met twice on September 7, 2023 and February 29, 2024 and the
attendance of the members is as follows;

Sl No. of No. of Meetings

Name of the Committee Member
No. Meetings held attended
1. Dr. Satyanarayana Chava 2 2
Executive Director & CEO
DIN: 00211921
2. Mr. V. V. Ravi Kumar 2 2
Executive Director & CFO
DIN: 01424180
3. Dr. C V Lakshmana Rao 2 1
Executive Director
DIN: 06885453
4. Dr. Rajesh Koshy Chandy 2 2
Independent Director
DIN: 07575240
5. *Mr. Chandrakanth Chereddi 1 0
Non-Executive Director
DIN: 06838798

*Mr. Chandrakanth Chereddi has resigned as a Director from the Board w.e.f. October 21,2023.

Senior management:
Particulars of senior management including the changes therein since the close of the previous financial year:

Please refer page no. 79 for the details

Remuneration to Directors:
Details of remuneration paid to Directors during the financial year 2023-24 are as follows:

a) Executive Directors:
In Rupees
Sr.
Name of the Director Salary Bonus Perks Others Total
No.
1 Dr. Satyanarayana Chava 10,86,11,172 59,16,826 2,01,86,411 13,47,14,409
2 Mr. Venkata Ravi Kumar Vantaram 3,59,08,368 16,24,703 62,78,789 4,38,11,860
3 Dr. Chunduru Venkata Lakshmana Rao 2,38,16,232 8,84,114 40,32,991 2,87,33,337

b) Non-Executive Directors:
Non-Executive Independent Directors are paid sitting fee of `50,000 for attending each meeting of the Board of
Directors and each meeting of the Committee of Directors. Further, Independent Directors are paid Remuneration as
well, the details of which are provided below:
In Rupees
S. No. Name of the Director Remuneration/` Sitting Fee/`
1. Dr. Malempati Venugopala Rao 20,00,000 6,00,000
2. Mrs. Aruna Rajendra Bhinge 20,00,000 8,50,000
3. Dr. Rajesh Koshy Chandy 33,13,712 8,00,000
4. Dr. Ravindranath Kancherla 20,00,000 5,00,000
5. Mr. Chandrakanth Chereddi* 22,17,391 5,00,000

*Mr. Chandrakanth Chereddi has resigned as a Director from the Board w.e.f. October 21, 2023.

Annual Report 2023-24 119

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

Service Contracts, Severance Fee: Nil term of appointment of Independent Director subject to all
other applicable provisions.
Notice Period for Executive Directors: 3 months

Stock Options details, if any: Nil Independent Directors Meeting:

Schedule IV of the Companies Act, 2013 and the Rule
Nomination/Remuneration Policy: thereunder mandate that the independent directors
The compensation of the Executive Directors comprises of the Company hold at least one meeting in a year,
of fixed component, perquisites and performance based without the attendance of non-independent directors and
incentive and is determined based on the remuneration members of the Management. It is recommended that all
prevailing in the industry and the performance of the the independent directors of the Company be present at
Company. The remuneration package of the Executive such meetings.
Directors is periodically reviewed and suitable revision
Independent Directors meeting was held on March 14, 2024
is recommended to the Board by the Nomination and
and all the Independent Directors attended the meeting.
Remuneration Committee. The Board shall recommend the
same for the approval of the Shareholders. Disclosure of Board Evaluation:
The nomination and remuneration policy as adopted by the The Performance Evaluation has been carried out for:
Board is placed on the Company’s website at:
(i) The board as a whole,
https://w w w.lauruslabs.com/Investors/PDF/Policies/ (ii) Individual directors (including Independent Directors
Remuneration_Policy.pdf and chairperson) and

Performance evaluation criteria for independent (ii) Various committees of the board.
directors: Previous year’s observations and actions taken:
The performance evaluation is done on an annual basis by
There are no observations and actions pending to be
the Board of Directors of the Company.
taken by the Company and the Board is satisfied with all
On the basis of the report of performance evaluation, it is the processes being followed by the management and is
determined by the Board whether to extend or continue the hopeful in continuing the same good governance practices
in the Company.

Shareholders
Annual General Meetings (AGM’s):
Venue, date and time of the Last Three Annual General Meetings:
(i). Financial Year 2020-21
Date July 15, 2021 – 03.00 PM
Venue Video Conference/Other Audio Visual Means (OAVM)
Special Resolutions Modification of terms of Bonus in Employment Contrat Of Dr. Satyanarayana Chava (Din 00211921),
Executive Director And Chief Executive Officer Of The Company
Modification of terms of Bonus In Employment Contrat of Mr. V. V. Ravi Kumar (DIN 01424180), Executive
Director and Chief Financial Officer of the Company
Modification of terms of Bonus in Employment Contrat of Dr. Lakshmana Rao C V, (DIN 06885453), Whole-
Time Director of the Company
Reappointment of Mrs. Aruna Bhinge as Independent Director
Reappointment of Dr. Rajesh Koshy Chandy as Independent Director
Approval of Laurus Labs Employees Stock Option Scheme 2021
Approval for grant of options under Laurus Labs ESOP Scheme 2021 (ESOP Scheme 2021) to the eligible
employees of the subsidiary companies
Alteration of Clauses of Articles of Association of the Company
(ii). Financial Year 2021-22
Date June 30, 2022 – 04.00 PM
Venue Video Conference/Other Audio Visual Means (OAVM)
Special Resolutions Reappointment of Dr. Malempati Venugopala Rao as Independent Director for a further period of 2 years
Reappointment of Dr. Ravindranath Kancherla as Independent Director for a further period of 5 years
(iii). Financial Year 2022-23
Date July 14, 2023 – 03.00 PM
Venue Video Conference/Other Audio Visual Means (OAVM)
Special Resolutions NIL

120 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Whether any special resolution passed last year through postal The Financial Year of the Company is from April 1, to March 31,
ballot – No next every year.

Person who conducted Postal Ballot – Not Applicable. The Board has declared one interim dividend @ 20% as 1st interim
dividend (i.e. `0.40 per share of the face value of `2/- each) in
Whether any special resolution is proposed to be conducted
October, 2023 for FY 2023-24 and also proposed a second interim
through postal ballot – No
dividend @ `0.40 per share. Book closure for the purpose of AGM
Procedure for Postal Ballot: As per Rule 22 of Companies will be from July 5, 2024 to July 11, 2024 (both days inclusive). Cut-
(Management and Administration) Rules, 2014. off date for e-voting is July 4, 2024.

Means of Communication: The Shares of the Company are listed on the following
Stock Exchanges:
The quarterly reports, along with additional information and
official news releases, are posted on our website www.lauruslabs. (i). BSE Limited, Phiroze Jeejeebhoy Towers, 25th Floor, Dalal
com. Moreover, the quarterly / annual results and official news Street, Mumbai-400001; and
releases are generally published in Business Standard (English)
(ii). National Stock Exchange of India Limited (NSE), Exchange
and Prajasakthi (Telugu) newspapers.
Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai
Earnings calls with analysts and investors and their transcripts – 400051.
and audio recordings are also posted on the website. Further, all
The listing fees for the financial year has been paid to the
material information which has any impact on the operations of
respective stock exchanges.
the Company is sent to the Stock Exchanges and also the same
shall be placed on the Company’s website. Stock code: BSE Limited: 540222, NSE: LAURUSLABS. International
Securities Identification Number (ISIN) for the Company’s Equity
The Management Discussion and Analysis forms part of this
Shares is INE947Q01028.
Report and is provided separately in this Annual Report.
Depositories for Equity Shares:
General Shareholder Information:
(i). National Securities Depository Limited (NSDL) and
The 19 th Annual General Meeting of the Company will be held
through Video Conference (VC) at 3 p.m. on Thursday the 11th day (ii). Central Depository Services Limited (CDSL).
of July, 2024.

Market Price data:

High, low market price during each month in the financial year and volume of shares traded on NSE:

NSE NIFTY 50
Month High Low Close Volume High Low Close
Apr-23 328.90 278.85 307.60 7,42,06,000 18,089.15 17,312.75 18,065.00
May-23 341.05 299.30 330.70 5,89,07,000 18,662.45 18,042.40 18,534.40
Jun-23 374.95 325.30 366.65 4,91,55,000 19,201.70 18,464.55 19,189.05
Jul-23 376.90 328.15 352.00 6,14,53,000 19,991.85 19,234.40 19,753.80
Aug-23 418.00 352.00 399.60 6,60,57,000 19,795.60 19,223.65 19,253.80
Sep-23 415.50 377.25 395.40 3,70,41,000 20,222.45 19,255.70 19,638.30
Oct-23 411.40 349.40 361.75 5,26,76,000 19,849.75 18,837.85 19,079.60
Nov-23 382.90 356.65 380.85 2,51,55,000 20,158.70 18,973.85 20,133.15
Dec-23 438.75 373.10 430.20 5,19,20,000 21,801.45 20,183.70 21,731.40
Jan-24 444.70 360.85 381.35 5,82,14,000 22,124.15 21,137.20 21,725.70
Feb-24 413.30 379.70 406.05 3,13,92,000 22,297.50 21,530.20 21,982.80
Mar-24 425.85 373.10 392.35 3,35,89,000 22,526.60 21,710.20 22,326.90

Chart given below shows the stock performance at closing prices in comparison to the broad-based index such as NSE Nifty 50.

Annual Report 2023-24 121

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

NSE NIFTY 50 VS LAURUS SHARE PRICE

24000 800
22326,90
22000 21725.7 700
21731.4 21982.8
19753.8
20000 19253.8 600
19079.6 20133.15
18534.4 19638.3
19189.05
18000 500

Laurus Share Price

18065 430.2
406.05
NSE Nifty 50

399.6
16000 400
330.7 395.4 381.35 392.35
366.65 361.75 380.85
352
14000 300
307.6

12000 200

10000 100

8000 0
Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24

Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24
NSE Nifty 50 18065 18534.4 19189.05 19753.8 19253.8 19638.3 19079.6 20133.15 21731.4 21725.7 21982.8 22326,90
Laurus Share Price 307.6 330.7 366.65 352 399.6 395.4 361.75 380.85 430.2 381.35 406.05 392.35
NSE Nifty 50 Vs Laurus Share Price NSE Nifty 50 Laurus Share Price

High, low market price during each month in the financial year and volume of shares traded on BSE:

BSE S&P BSE SENSEX

Month High (`) Low (`) Close (`) Volume High (`) Low (`) Close (`)
Apr-23 328.90 279.65 307.65 39,79,194 61,209.46 58,793.08 61,112.44
May-23 340.80 299.30 330.55 31,09,660 63,036.12 61,002.17 62,622.24
Jun-23 375.00 324.95 366.50 23,65,144 64,768.58 62,359.14 64,718.56
Jul-23 376.85 328.15 352.10 31,01,090 67,619.17 64,836.16 66,527.67
Aug-23 417.85 351.95 399.70 27,92,127 66,658.12 64,723.63 64,831.41
Sep-23 415.05 377.75 395.20 17,46,464 67,927.23 64,818.37 65,828.41
Oct-23 411.85 349.80 361.50 17,76,439 66,592.16 63,092.98 63,874.93
Nov-23 382.80 357.15 380.90 13,95,286 67,069.89 63,550.46 66,988.44
Dec-23 439.00 373.15 430.15 19,44,341 72,484.34 67,149.07 72,240.26
Jan-24 444.50 358.70 381.10 28,88,789 73,427.59 70,001.60 71,752.11
Feb-24 413.35 380.00 406.15 13,13,235 73,413.93 70,809.84 72,500.30
Mar-24 426.30 372.20 391.75 12,93,368 74,245.17 71,674.42 73,651.35

Chart given below shows the stock performance at closing prices in comparison to the broad-based index such as BSE Sensex.

122 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

BSE SENSEX VS LAURUS SHARE PRICE

77000 800
75000 73651.35
73000 71752.11
71000 72500.3 700
69000 72240.26
67000 66527.67
64831.41
65000 62622.24 63874.93
66988.44 600
63000 65828.41
61000 64718.56
59000 61112.44 500

Laurus Share Price

55000
53000 430.15
51000 399.7 406.15
BSE Sensex

400
49000
47000 330.55 395.2 391.75
366.5 380.9 381.1
45000 352.1 361.5
43000 300
307.65
41000
39000
37000 200
35000
33000
31000 100
29000
27000
25000 0
Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24

Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24
NSE Nifty 50 61112.44 62622.24 64718.56 66527.67 64831.41 65828.41 63874.93 66988.44 72240.26 71752.11 72500.3 73651.35
Laurus Share Price 307.65 330.55 366.5 352.1 399.7 395.2 361.5 380.9 430.15 381.1 406.15 391.75
BSE Sensex Vs Laurus Share Price BSE Sensex Laurus Share Price

There was no suspension of trading of securities of the Company may contact for the redressal of their grievances to either KFin
during the year under review. Technologies or the Company Secretary of the Company.

The Company’s shares are transferable through the depository KFin Technologies Limited
system. The Company has appointed KFin Technologies Limited Selenium Building, Tower B, Plot No. 31-32,
(Formerly KFin Technologies Private Limited) as its Registrars and Financial District, Nanakramguda,
Share Transfer Agents and also Depository Transfer Agent. Shares Serilingampally, Hyderabad,
received for physical transfers are generally registered within a Telangana, 500032.
period of 15 days from the date of receipt of the valid and duly Tel: +91 40 6716 2222; Toll Free No.: 1-800-3454-001
filled up transfer deeds. The Company has signed a tripartite Fax: +91 040-23001153
agreement with NSDL/CDSL and KFin Technologies Limited to Email: einward.ris@kfintech.com
facilitate dematerialisation of shares. As on March 31, 2024, the Website: https://www.kfintech.com
total shares of the Company are in demat form only. The Members

Distribution of Shareholding as on March 31, 2024:

Category (No. of Shares) No. of Share Holders % No. of Shares %
1 500 3,41,498 93.38 2,47,58,223 4.59
501 1,000 11,473 3.13 87,17,395 1.62
1,001 2,000 6,069 1.66 88,23,243 1.64
2,001 3,000 2,157 0.59 54,09,154 1.00
3,001 4,000 946 0.26 33,45,519 0.62
4,001 5,000 699 0.19 32,57,571 0.60
5,001 10,000 1,317 0.36 95,28,292 1.77
10,001andabove 1,533 0.42 47,51,26,461 88.15
Total 3,65,692 100.00 53,89,65,858 100.00

Annual Report 2023-24 123

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

Details of Shareholding as on March 31, 2024:

S. No. Description % of Shareholders No. of Shares % of Equity

1. Physical 0 0 0
2. NSDL 31.09 46,23,44,707 85.78
3. CDSL 68.91 7,66,21,151 14.22
Total 100.00 53,89,65,858 100.00

Dematerialisation of shares and liquidity: Unit 6

53,89,65,858 shares representing 100% shares have been in Plot No 22 D and 22 E, APSEZ Denotified Area, Atchutapuram,
dematerialisation form. Visakhapatnam 531011, Andhra Pradesh, India.

The Company has not issued any GDR/ADR and there are no Unit 8
outstanding warrants or any convertible instruments.
Plot No. 18B, APSEZ De-Notified Area, Moturupalem, Pudi and
The Company has undertaken hedging activities for foreign Gurajapalem Villages, Rambilli Mandal, Anakapalli – 531 011
exchange risk, whereas the Company has not undertaken any
Andhra Pradesh, India.
hedging for commodity price risk.
Unit 10
Location of Plants:
Plot No.18B, APSEZ De-Notified Area, Gurajapalem and
Unit 1
Pudi Villages, Rambilli Mandal, Anakapalli – 531 011 Andhra
Plot No 21, Jawaharlal Nehru Pharma City, Parawada Pradesh, India.
Visakhapatnam 531021, Andhra Pradesh, India.
Unit 11
Unit 2
6 th Floor, Technopark, Indian Institute of Technology (IIT),
APSEZ, Unit-2, Plot No 19, 20 and 21, APSEZ Gurajapalem, Kalyanpur, Kanpur - 208016, Uttar Pradesh
Atchutapuram, Visakhapatnam 531011, Andhra Pradesh, India.
Research & Development Centre
Unit 3
Plot No.DS 1&2, IKP Knowledge Park, Turkapally, Shameerpet,
Plot No 18, Jawaharlal Nehru Pharma City, Parawada Hyderabad 500078, Telangana, India.
Visakhapatnam 531021, Andhra Pradesh, India.
Address for correspondence:
Unit 4
Registered Office: Laurus Enclave, Plot Office 01, E.bonangi
Plot No 25, Lalamkoduru, Atchutapuram, Visakhapatnam 531011, Village, Parawada Mandal, Anakapalli District, 531021, Andhra
Andhra Pradesh, India. Pradesh, India.

Unit 5 Corporate Office: 2nd Floor, Serene Chambers, Road No. 7,

Plot No 102 and 103, SEZ, Lemarthi, Parawada, Visakhapatnam Banjara Hills, Hyderabad 500034, Telangana, India.
531021, Andhra Pradesh, India.

Disclosures pertaining to credit rating:

Following are the Credit ratings obtained during the financial year, which are also available in the website of the Company http://
lauruslabs.com/:

Rating Agency Facilities Rated Amount Rated (`In crores) Rating Assigned Date of Rating

CARE Ratings Limited Long Term Bank Facilities 2,289.56 CAREAA; Stable June 22, 2023
CARE Ratings Limited Short Term Bank Facilities 1206.00 CARE A1+ June 22, 2023
(Assigned: 150 crores
Reaffirmed:1056 crores)

Other Disclosures: Company. The Register of Contracts containing transactions, in

Related Party transactions: which Directors are interested, is placed before the Board regularly.

No transaction of material nature has been entered into by the Transactions with Related Parties are disclosed in the Notes to
Company with its Directors/Management and their relatives Accounts in the Annual Report.
etc. that may have a potential conflict with the interest of the
In terms of SEBI (LODR) Regulations 2015, the Audit Committee
and Board of Directors of the Company have adopted a policy to

124 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

determine the related party transactions. The policy is placed on h t t p s : // w w w . l a u r u s l a b s . c o m / I n v e s t o r s / P D F/ P o l i c i e s /

the Company’s website at PolicyOnMaterialityOfSubsidiaries.pdf

h t t p s : // w w w . l a u r u s l a b s . c o m / I n v e s t o r s / P D F/ P o l i c i e s / Disclosures pertaining to Commodity risk:

POLICYONRELATEDPARTYTRANSACTIONSANDMATERIALITY
The Company has framed a policy on Forex Risk Management
-2022.pdf
Policy for managing the risks faced and hedging activities.
Details of Non-compliances and penalties: The risk management activities during the year, including their
There were no instances of non-compliance or penalties/strictures commodity hedging positions and the risks faced and managed:
by the stock exchanges/SEBI/statutory authorities on any matter The Company has not undertaken any commodity hedging
related to capital markets during the last three years. positions and therefore no risk exists.

Vigil mechanism/Whistle Blower Policy: Details of utilisation funds raised through preferential allotment
or qualified institutions placement as specified under Regulation
The Board of Directors of the Company had adopted the Whistle
32(7A): The Company has not raised any funds through
Blower policy. The Company has established a mechanism for
preferential allotment or qualified institutions placement during
employees and Directors to report to the management, concerns
the current financial year and hence not applicable.
about unethical behaviour, actual or suspected fraud or violation
of the Company’s Code of conduct etc. The employees have been The Board had accepted recommendations of various committees
appropriately communicated within the organisation about the of the board which were mandatorily required in the relevant
mechanism and have been provided direct access to the Chairman financial year.
of the Audit Committee. The mechanism also lays emphasis
Total fees for all services paid by the Company and its subsidiaries,
on making enquiry into whistle blower complaint received by
on a consolidated basis, to the statutory auditor and all entities in
the Company. The Audit Committee reviews periodically the
the network firm/network entity of which the statutory auditor is a
functioning of the whistle blower mechanism. No employee has
part, for the FY 2023-24 is as follows:
been denied access to the Audit Committee. A copy of the Whistle
Blower Policy is hosted on the Company’s website at ` in crores
Particulars 2023-24 2022-23
https://www.lauruslabs.com/Investors/PDF/Policies/Whistle_ Statutory Auditors: 0.98 0.92
Blower_Policy_29-07-2021.pdf
Tax Audit Fee - 0.14
Details of compliance with mandatory requirements and Limited Review 0.50 0.41
adoption of the non-mandatory requirements: Others 0.09 0.18
The Company has complied with all the mandatory requirements Total 1.57 1.65
of Corporate Governance as per SEBI (LODR) Regulations,
2015 and is in the process of implementing the non- Disclosures in relation to the Sexual Harassment of Women at
mandatory requirements. Workplace (Prevention, Prohibition and Redressal) Act, 2013:
a. number of complaints filed during the financial year - Nil
Policy on material subsidiaries:
b. number of complaints disposed of during the financial year
In terms of the SEBI (LODR) Regulations, 2015, the Board of
- Nil
Directors of the Company has adopted a policy with regard to
determination of material subsidiaries. The policy is placed on the c. number of complaints pending as on end of the financial
Company’s website at year - Nil

Disclosures in relation to Loans and advances in the nature of loans to firms/companies in which directors are interested:
Name of Firm/company to which
Sl. Amount Name of the interested
Loans or Advances have been Nature of Interest Name and status of the Disclosing Entity
No (in crores) Director
provided
1 Laurus Synthesis Private Limited Mr. Krishna Chaitanya Common Director Sriam Labs Private Limited
Chava (Wholly owned subsidiary of Laurus Labs
Limited)
2 Laurus Bio Private Limited Dr. Satyanarayana Common Directors Laurus Labs Limited
Chava and Mr. V. V. Ravi (Holding Company of Laurus Bio Private
Kumar Limited)
3 Laurus Synthesis Private Limited Dr. Satyanarayana Common Directors Laurus Labs Limited
Chava and Mr. V. V. Ravi (Holding Company of Laurus Synthesis
Kumar Private Limited)

Annual Report 2023-24 125

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Report on Corporate Governance

Details of material subsidiaries of the listed entity; including Adoption of discretionary requirements as specified in
the date and place of incorporation and the name and Part E of Schedule II of SEBI (LODR) Regulations, 2015
date of appointment of the statutory auditors of such With regard to discretionary requirements, the Company has
subsidiaries: Nil adopted clauses relating to the following:

Non-compliance of any requirements of Report on Separate persons were appointed for the post of the Chairman
Corporate Governance of sub-paras (2) to (10) of and the CEO. The financial statements of the Company so far
Schedule V have an unmodified audit opinion. Internal auditors report directly
The Company has complied with the requirement of Report on to the Audit Committee.
Corporate Governance of sub-paras (2) to (10) of Schedule V of
the SEBI (LODR) Regulations, 2015.

The disclosures of the compliance with Corporate Governance requirements specified in Regulation 17 to 27 and
clauses (b) to (i) of sub-regulation (2) of regulation 46 are as follows:
Compliance Status
Regulation Particulars of Regulations
Yes/No
17 Board of Directors Yes
18 Audit Committee Yes
19 Nomination and Remuneration Committee Yes
20 Stakeholders Relationship Committee Yes
21 Risk Management Committee Yes
22 Vigil Mechanism Yes
23 Related Party Transactions Yes
24 Corporate Governance requirements with respect to subsidiary of listed entity Yes
25 Obligations with respect to Independent Directors Yes
26 Obligations with respect to Directors and Senior Management Yes
27 Other Corporate Governance requirements Yes
46 (2)(b) to (i) Functional Website Yes

Code of Conduct: Auditors’ Certificate on Corporate Governance

In compliance with Regulation 26(3) of the SEBI (Listing As required by Schedule V of the SEBI (Listing Obligations and
Obligations and Disclosure Requirements) Regulation, 2015 and Disclosure Requirements) Regulation, 2015, the Certificate on
the Companies Act, 2013, the Company has framed and adopted Corporate Governance issued by practising Company Secretary is
a Code of Conduct policy. The Code is applicable to the members annexed to the Board’s report as Annexure-D.
of the Board, the executive officers and all employees of the
Company and its subsidiaries. The Code is available on our website Declaration
https://www.lauruslabs.com/Investors/PDF/Policies/Code_of_ I, Dr. Satyanarayana Chava, Chief Executive Officer, hereby
Conduct_Policy.pdf declare that as provided under SEBI (LODR) Regulations, 2015,
the Board Members and the senior management personnel have
All members of the Board, the executive officers and senior
confirmed compliance with the Code of Conduct for the year
financial officers have affirmed compliance to the Code as on
ended March 31, 2024.
March 31, 2024.
Disclosures with respect to demat suspense account/
Prevention of Insider Trading: unclaimed suspense account: Nil
The Company has adopted an Insider trading Policy to regulate,
Disclosure of certain types of agreements binding listed
monitor and report trading by insiders under the SEBI (Prohibition
entity: Nil
of Insider Trading) Regulations, 2015. This policy includes practices
and procedures for fair disclosure of unpublished price-sensitive For Laurus Labs Limited
information, initial and continual disclosure. The Board reviews
the policy on a need basis. The policy is available on our website
https://www.lauruslabs.com/Investors/PDF/Policies/Code_of_ Dr. Satyanarayana Chava
Prohibition_of_Insider_Trading.pdf
Chief Executive Officer
CEO and CFO Certification: Place: Hyderabad
As required by SEBI (Listing Obligations and Disclosure Date: June 06, 2024
Requirements) Regulation, 2015, the CEO & CFO certification is
provided in this Annual report as Annexure-C.

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Annexure – A

CERTIFICATE
(Pursuant to Regulation 34(3) read with Schedule V of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015)

To
The Members,
M/s. LAURUS LABS LIMITED
Laurus Enclave, Plot Office 01, E. Bonangi Village,
Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021.

We have examined and verified the books, papers, minute books, forms and returns filed and other records maintained by M/s. Laurus
Labs Limited (hereinafter referred to as the “Company”) having its registered office at Laurus Enclave, Plot Office 01, E. Bonangi
Village, Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021 and the information provided by the Company and its directors
and also based on the information available at the websites of Ministry of Corporate Affairs (i.e www.mca.gov.in) and Securities and
Exchange Board of India (i.e. www.sebi.gov.in), we hereby certify that as on the date of this certificate, none of the directors on the board
of the Company have been debarred or disqualified from being appointed or continuing as directors of Company by Securities and
Exchange Board of India /Ministry of Corporate Affairs or any such statutory authority.

For RPR & ASSOCIATES

Company Secretaries

Y Ravi Prasada Reddy

Proprietor
FCS No: 5783, C P No: 5360
Peer Review Certificate No. 1425/2021
UDIN: F005783F000239918

Place: Hyderabad
Date: April 25, 2024

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – B

Annual Secretarial Compliance Report of

M/s. Laurus Labs Limited for the year ended March 31, 2024
(Pursuant to circular dated February 8, 2019 issued by SEBI and amendments thereof)

We, M/s. RPR and Associates, Company Secretaries, Hyderabad, have examined:

(a) all the documents and records made available to us and explanation provided by M/s. Laurus Labs Limited
(CIN: L24239AP2005PLC047518) having its registered office at Laurus Enclave, Plot Office 01, E. Bonangi Village, Parawada
Mandal, Anakapalli District, Andhra Pradesh – 531021, (“the listed entity”);
(b) the filings/ submissions made by the listed entity to the stock exchanges;
(c) website of the listed entity; and
(d) any other document/ filing, as may be relevant, which has been relied upon to make this certification/report, for the year ended
March 31, 2024 (“Review Period”) in respect of compliance with the provisions of:
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the Regulations, circulars, guidelines issued
thereunder by the Securities and Exchange Board of India (“SEBI”);

The specific Regulations, whose provisions and the circulars/guidelines issued thereunder, have been examined, include:-

(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; - No Buyback of securities during the
review period.
(e) Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(f) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; - Not Applicable during the
review period.
(g) Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Securities) Regulations, 2021; - Not Applicable
during the review period.
(h) Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable Preference Shares) Regulations,
2013; - Not Applicable during the review period.
(i) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and amendments from time to time;
(j) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2018
regarding the Companies Act and dealing with client; and circulars/ guidelines issued thereunder and the additional affirmations
as per the circulars issued by the stock exchanges on March 16, 2023 and subsequent amendments thereon; and based on the
above examination, we hereby report that, during the Review Period:

The compliances related to resignation of statutory auditors from listed entities and their material subsidiaries (as per SEBI Circular
CIR/CFD/CMD/114/2019 dated October 18, 2019) were not applicable during review period;

We hereby report that, during the Review Period the compliance status of the listed entity is appended as below:
Sr. Compliance status Observations/
Particulars
No. (Yes/No/NA) Remarks by PCS
1. Secretarial Standards: Yes -
The compliances of the listed entity are in accordance with the applicable Secretarial Standards
(SS) issued by the Institute of Company Secretaries India (ICSI), as notified by the Central
Government under section 118(10) of the Companies Act, 2013 and mandatorily applicable.
2. Adoption and timely updation of the Policies: Yes -
• All applicable policies under SEBI Regulations are adopted with the approval of board of
directors of the listed entities
• All the policies are in conformity with SEBI Regulations and has been reviewed & timely
updated as per the regulations/circulars/ guidelines issued by SEBI
3. Maintenance and disclosures on Website: Yes -
• The Listed entity is maintaining a functional website
• Timely dissemination of the documents/ information under a separate section on the website
• Web-links provided in annual Report on Corporate Governances under Regulation 27(2) are
accurate and specific which re-directs to the relevant document(s)/ section of the website

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Sr. Compliance status Observations/

Particulars
No. (Yes/No/NA) Remarks by PCS
4. Disqualification of Director: Yes -
None of the Director of the Company are disqualified under Section 164 of Companies Act, 2013
5. Details related to Subsidiaries of listed entities have been examined w.r.t.: Yes -
(a) Identification of material subsidiary companies
(b) Disclosure requirement of material as well as other subsidiaries
6. Preservation of Documents: Yes -
The listed entity is preserving and maintaining records as prescribed under SEBI Regulations and
disposal of records as per Policy of Preservation of Documents and Archival policy prescribed under
SEBI LODR Regulations, 2015.
7. Performance Evaluation: Yes -
The listed entity has conducted performance evaluation of the Board, Independent Directors and
the Committees at the start of every financial year as prescribed in SEBI Regulations
8. Related Party Transactions: Yes -
(a) The listed entity has obtained prior approval of Audit Committee for all related party
transactions; or
(b) The listed entity has provided detailed reasons along with confirmation whether the
transactions were subsequently approved/ ratified/ rejected by the Audit Committee, in case no
prior approval has been obtained.
9. Disclosure of events or information: Yes -
The listed entity has provided all the required disclosure(s) under Regulation 30 along with
Schedule III of SEBI LODR Regulations, 2015 within the time limits prescribed thereunder.
10. Prohibition of Insider Trading: Yes -
The listed entity is in compliance with Regulation 3(5) & 3(6) SEBI (Prohibition of Insider Trading)
Regulations, 2015
11. Actions taken by SEBI or Stock Exchange(s), if any: Yes -
No Actions taken against the listed entity/ its promoters/ directors/ subsidiaries either by SEBI or
by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through
various circulars) under SEBI Regulations and circulars/ guidelines issued thereunder
12. Additional Non-compliances, if any: Yes -
No additional non-compliance observed for all SEBI regulation/circular/guidance note etc.

(a) The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder, except in
respect of matters specified below:
Type of Action
Observatio
Compliance Requirement
Regulation Action Advisory ns/Remarks of Manag
Sl. (Regulations Detailss of Fine
/Circular Deviations Taken /Clarification/Fine/ the Practicing ement Remarks
No. /circulars/guidelines Violaion Amount
No. By Show Cause Notice/ Company Response
including specific clause)
Warning, etc. Secretary

No deviations / non-compliance during the review period

(b) The listed entity has taken the following actions to comply with the observations made in previous reports;

Compliance Type of Action

Requirement Observations/
(Regulations Regulation Action Advisory Detailss of Fine Remarks of the Manag
Sl.
/circulars/ /Circular Deviations Taken /Clarification/Fine/ Viola Amo Practicing ement Remarks
No.
guidelines No. By Show Cause Notice/ ion unt Company Response
including specific Warning, etc. Secretary
clause)
Not applicable during the review period

For RPR & ASSOCIATES

Company Secretaries

Y Ravi Prasada Reddy

Proprietor
FCS No. 5783, C P No. 5360
UDIN: F005783F000239907
Peer Review Certificate No. 1425/2021

Place: Hyderabad
Date: April 25, 2024

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure – C

Date: April 22, 2024

To
The Audit Committee &
The Board of Directors
Laurus Labs Limited

We, Dr. C. Satyanarayana, CEO and Mr. V.V. Ravi Kumar, CFO hereby certify as under:

A. We have reviewed financial statements and the cash flow statement for the year ended March 31, 2024 and that to the best of our
knowledge and belief:

(1). These statements do not contain any materially untrue statement or omit any material fact or contain statements that might
be misleading;

(2). These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
Accounting Standards, applicable laws and regulations.

B. To the best of our knowledge and belief, no transactions entered into by the Company during the year ended March 31, 2024 are
fraudulent, illegal or violative of the Company’s Code of Conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or operation
of such internal controls, if any, of which we are aware have been disclosed to the auditors and the Audit Committee and steps have
been taken to rectify these deficiencies.

D. (1). There have not been any significant changes in internal control over financial reporting during the year;

(2). There have not been any significant changes in accounting policies during the year requiring disclosure in the notes to the
financial statements; and

(3). We are not aware of any instances during the year of significant fraud with involvement therein of the management or an
employee having a significant role in the Company’s internal control system over financial reporting.

Thanking you,

For Laurus Labs Limited For Laurus Labs Limited

Dr. C. Satyanarayana Mr. V.V. Ravi Kumar

Chief Executive Officer Chief Financial Officer

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Annexure – D

Certificate on Corporate Governance

To
The Members of
M/s. LAURUS LABS LIMITED
Laurus Enclave, Plot Office 01, E. Bonangi Village,
Parawada Mandal, Anakapalli District, Andhra Pradesh – 531021.

We have examined the compliance conditions of Corporate Governance by M/s. Laurus Labs Limited for the financial year ended March
31, 2024, as stipulated in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 [“SEBI (LODR) Regulations, 2015”] and the Uniform Listing Agreement entered between the Company & Stock Exchanges.

The compliance of conditions of Corporate Governance is the responsibility of the Company’s management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our knowledge and according to the explanations given to us, we certify that the Company has complied
with the conditions of applicable Corporate Governance as stipulated in the above mentioned SEBI (LODR) Regulations, 2015 and the
Uniform Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

For RPR & ASSOCIATES

Company Secretaries
UDIN: F005783F000239940

Y. Ravi Prasada Reddy

Proprietor
FCS No.5783, CP No.5360
Peer Review Certificate No. 1425/2021

Place: Hyderabad
Date: April 25, 2024

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Business Responsibility & Sustainability Reporting

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity
1 Corporate Identity Number (CIN) of the Listed Entity : L24239AP2005PLC047518
2 Name of the Listed Entity : Laurus Labs Limited
3 Year of incorporation : 2005
4 Registered office address : Laurus Enclave, Plot Office 01, E. Bonangi Village, Parawada Mandal,
Anakapalli District – 531 021, Andhra Pradesh, India.
5 Corporate address : 2nd Floor, Serene Chambers, Road No. 7, Banjara Hills,
Hyderabad – 500 034, Telangana, India
6 E-mail : secretarial@lauruslabs.com
7 Telephone : +91 40 6659 4333
8 Website : www.lauruslabs.com
9 Financial year for which reporting is being done : 2023-24
10 Name of the Stock Exchange(s) where shares are listed : NSE & BSE
11 Paid-up Capital : `107,79,31,716
12 Name and contact details (telephone, e-mail address) of the person who : Mr. G. Venkateswar Reddy,
may be contacted in case of any queries on the BRSR report. Company Secretary and Compliance Officer,
Telephone: +91 40 6659 4333,
E-mail: secretarial@lauruslabs.com
Address: 2nd Floor, Serene Chambers, Road No. 7,
Banjara Hills, Hyderabad – 500 034, Telangana, India
13 Reporting boundary – Are the disclosures under this report made on a : Standalone
standalone basis (i.e. only for the entity) or on a consolidated basis
(i.e. for the entity and all the entities which form a part of its consolidated
financial statements, taken together).
14 Name of assurance provider : NA
15 Type of assurance obtained : NA

II. Products/services
16. Details of business activities (accounting for 90% of the turnover):

Sr.
Description of Main Activity Description of Business Activity % of Turnover of the entity
No.
01 Pharmaceuticals & Bio Development, manufacturing & services of Chemical & Chemical products, 100%
product Pharmaceuticals, Medicinal Chemical, Bio & Botanical Products

17. Products/Services sold by the entity (accounting for 90% of the entity’s turnover):

Sr.
Product/Service NIC Code % of total Turnover contributed
No.
01 Development, manufacture and sale of API & Formulations 21009 100%

III. Operations
18. Number of locations where plants and/ or operations/ offices of the entity are situated:

Location Number of plants Number of offices Total

National
Visakhapatnam, Andhra Pradesh, India 6 1 7
Hyderabad, Telangana, India 1 1 2
International NIL NIL NIL

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19. Markets served by the entity:

a) Number of locations

Locations Number
National (No. of States) 26
International (No. of Countries) 114

b) What is the contribution of exports as a percentage of the total turnover of the entity? 58.76%

c) A brief on types of customers

Our Company caters to a diverse range of customers includes major pharma companies, generics players and institutional
customers across various countries.

IV. Employees
20. Details as at the end of Financial Year:

a) Employees and workers (including differently abled):

Sr. Total Male Female

Particulars
No. (A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 6,007 5,567 93% 440 7%
2. Other than Permanent (E) NIL NIL NIL NIL NIL
3. Total employees (D + E) 6,007 5,567 93% 440 7%
WORKERS
4. Permanent (F) NIL NIL NIL NIL NIL
5. Other than Permanent (G) 5,623 5,556 99% 67 1%
6. Total workers (F + G) 5,623 5,556 99% 67 1%

b) Differently abled Employees and workers:

Sr. Total Male Female

Particulars
No (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 1 NIL NIL 1 100%
2. Other than Permanent (E) NIL NIL NIL NIL NIL
3. Total differently abled employees (D + E) 1 NIL NIL 1 100%
DIFFERENTLY ABLED WORKERS
4. Permanent (F) NIL NIL NIL NIL NIL
5. Other than permanent (G) NIL NIL NIL NIL NIL
6. Total differently abled workers (F + G) NIL NIL NIL NIL NIL

21. Participation/ Inclusion/ Representation of women

Total No. and percentage of Females

(A) No. (B) % (B / A)
Board of Directors 7 1 14%
Key Management Personnel 1 NIL --

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Business Responsibility & Sustainability Reporting

22. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)

FY22 (Turnover rate in the year

FY24 (Turnover rate in current FY) FY23 (Turnover rate in previous FY)
prior to the previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 18% 22% 18% 19% 26% 19% 14% 18% 15%
Permanent Workers NIL NIL NIL NIL NIL NIL NIL NIL NIL

V. Holding, Subsidiary and Associate Companies (including joint ventures)

23. (a) Names of holding/ subsidiary/ associate companies/ joint ventures

Does the entity indicated

Name of the holding/ subsidiary/ Indicate whether holding/ at column A, participate in
Sr. % of shares held
associate companies/ joint CIN / FCRN Subsidiary/ Associate/ the Business Responsibility
No. by listed entity
ventures (A) Joint Venture initiatives of the listed
entity? (Yes/No)
1 Sriam Labs Private Limited U24239TG2002PTC038490 Subsidiary 100% No
2 Laurus Synthesis Private Limited U24110TG2020PTC140333 Subsidiary 100% No
3 Laurus Specialty Chemicals U24110TG2022PTC168791 Subsidiary 100% No
Private Limited
4 Laurus Bio Private Limited U02423KA2005PTC036770 Subsidiary 87.58% No
(Fully diluted basis)
5 Immunoadoptive Cell Therapy U74999MH2018PTC315497 Associate 33.86% No
Private Limited (Fully diluted basis)
6 Ethan Energy India Private U40100TG2018FTC125395 Associate 26% No
Limited
7 Laurus Generics SA (Pty.) Ltd. Subsidiary 100% No
8 Laurus Holdings Limited Subsidiary 100% No
9 Laurus Generics GmbH Step Down Subsidiary 100% No
10 Laurus Generics Inc. Step Down Subsidiary 49.24% Directly and No
50.76% through Laurus
Holdings Limited

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover (in `) 4,812 crores

(iii) Net worth (in `) 4,207 crores

VII. Transparency and Disclosures Compliances

25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Grievance Redressal
FY24 FY23
Mechanism in Place
(Current Financial Year) (Previous Financial Year)
(Yes/No)
Stakeholder group from
whom complaint is received (If Yes, then Number of Number of Number of Number of
provide web-link for complaints complaints complaints complaints
Remarks Remarks
grievance redress filed during the pending resolution filed during the pending resolution
policy) year at close of the year year at close of the year
Communities Yes NIL NIL NA NIL NIL NA
Investors (other than Yes NIL NIL NA NIL NIL NA
shareholders)
Shareholders Yes NIL NIL NA NIL NIL NA
Employees and workers Yes NIL NIL NA NIL NIL NA
Customers Yes NIL NIL NA NIL NIL NA
Value Chain Partners Yes NIL NIL NA NIL NIL NA
Other (please specify) NIL NIL NIL NA NIL NIL NA

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Policies:

Comminity: https://www.lauruslabs.com/Investors/PDF/Policies/Corporate_Social_Responsibility_Policy.pdf

Investor & Shareholders: https://www.lauruslabs.com/investors_home.html

Employees & workers: https://www.lauruslabs.com/Investors/PDF/Policies/PGH.pdf

Customers: Customer feedback policy

26. Overview of the entity’s material responsible business conduct issues

Indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that
present a risk or an opportunity to your business, the rationale for identifying the same, approach to adapt or mitigate the risk
along with its financial implications, as per the following format

 ur approach to materiality: At Laurus Labs, we acknowledge our responsibility to meet stakeholder expectations to position
O
our business better and enhance the value we create. The materiality assessment has allowed us to comprehend stakeholder
concerns and helps in developing a strategy that fits our business, prioritising the most relevant topics and impact. We performed
a sustainability-related materiality assessment to identify the sustainability issues that are most critical to our business and
our stakeholders. This process assists us in identifying sustainability focus areas and informs our strategy and the content of
our reporting.

We align our identification of material sustainability topics with the GRI Universal Standards considering information relating to
the pharmaceutical sector, our regulatory requirements and matters raised during engagements with our people and our external
stakeholders. This year we’ve focused on five top priority areas i.e. product safety, ownership and control, waste management
and circularity, leadership policy and oversight on sustainability, tax transparency and labelling, protection of human rights and
occupational health and safety. More information on our sustainability materiality assessment process and outcomes can be
found in our Integrated Report

Sr. Rational for identifying In case of risk approach to Financial implication

Material Issue Identified Risk Opportunity
No. or opportunity adapt or mitigate of risk or opportunity
1 Environment, Health and Risk Operations are subjected to varieties -  Improving focus on Risk
Safety (EHS) of regional and global governmental, sustainable energy
and non-governmental EHS rules and -  Strengthening and promoting
regulations. a safety culture programme
and awareness across the
company
-  Conducting periodic audits in
high-risk sites
2 Industry risk Risk Sectoral and market downturns could -  Analysing industry and Risk
have potential and immediate impact pharma-sectoral trends and
on company performance periodic horizon scanning
-  Ongoing plans to implement
a business continuity plan to
minimise risks
3 Regulatory risk Risk The pharmaceutical sector is -  Improving compliance/ Risk
highly regulated and it is under regulatory requirements
continual surveillance and scrutiny review mechanism
by regulatory bodies and authorities. -  Utilising the information
Inability to meet requirements may management system to detect
have potential negative impacts on changes in the regulatory
the business environment and their impact
periodically

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Business Responsibility & Sustainability Reporting

Sr. Rational for identifying In case of risk approach to Financial implication

Material Issue Identified Risk Opportunity
No. or opportunity adapt or mitigate of risk or opportunity
4 Competition risk Risk Market presence and penetration -  Building economies of scale Risk
can be affected by domestic and in manufacturing, distribution
international competitions and procurement to maintain
cost advantage
-  Strengthening long-term
relationships with key
customers by offering better
quality and service know-how
-  Introducing cost improvement
initiatives and enhancing
manufacturing efficiency at
plants
-  Undertaking R&D initiatives,
focusing on optimising raw
material consumption and
increasing manufacturing
capability
5 Innovation risk Risk Development of innovative products -  Ensuring R&D capabilities Risk
is critical in improving the product and proven track record
portfolio of the company, Lack of in filing, approval and
innovation may negatively affect commercialisation of niche
business growth. products and processes.
-  Improving internal capabilities,
know-how and enhancing
process optimisation to
strengthen market leadership

6 Financial risks Risk The foreign exchange rate - 

Implementing a strong Risk
fluctuations could impact our currency hedging plan/
company’s net expenses and other strategy and periodically
future investments. evaluating derivatives to
address risks
7 Capacity planning and Risk Inability to meet dynamic customer - Tracking trends and horizon Risk
Optimisation risk needs can impact business growth scanning to keep up with the
market and deliver and satisfy
customer needs
- Implementing plans to ensure
plant capacities meet market
expectations
-  Process optimisation and
improving efficiency to reduce
production related risks such as
plant malfunctions

8 Operational risk Risk Efficiency and effectiveness -  Stabilising vendor risks Risk
of business operations can be and challenges by the
significantly impacted if and when implementation of action
vendor customer relations are not plans
managed effectively -  Forging long-term partnerships
with regional and global
pharmaceutical companies to
ensure revenue visibility

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SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting
the NGRBC Principles and Core Elements.

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

Policy and Management Processes

1. a) Whether your entity’s policy/policies Yes No Yes No formal No formal Yes No Yes No
cover each principle and its core policy yet policy yet
elements of the NGRBCs. (Yes/No)
b) Has the policy been approved by the Approved No Yes No No Yes No Yes No
Board? (Yes/No) by HOD
c) Web Link of the Policies, if available No Please refer No No Please refer NA Please refer No
Policy A Policy B Policy C
below the below the below the
table table table
2. Whether the entity has translated the Yes No Yes No No Yes No Yes No
policy into procedures. (Yes / No)
3. Do the enlisted policies extend to your Yes No No No No Yes No No No
value chain partners? (Yes/No)
4. Name of the national and international Yes, We No Yes. No No Yes No Yes No
codes/certifications/labels/ standards follow GRI We follow ISO 14001
(e.g. Forest Stewardship Council, guidelines ISO45001
Fairtrade, Rainforest Alliance and
Trustee) standards (e.g. SA 8000,
OHSAS, ISO, BIS) adopted by your
entity and mapped to each principle.
5. Specific commitments, goals and Nil Nil Nil Nil Nil Nil Nil Nil Nil
targets set by the entity with defined
timelines, if any.
6. Performance of the entity against Nil Nil Nil Nil Nil Nil Nil Nil Nil
the specific commitments, goals and
targets along-with reasons in case the
same are not met.
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity
has flexibility regarding the placement of this disclosure): Refer Chairman’s statement in page number 14
8. Details of the highest authority Dr. Satyanarayana Chava, Executive Director and Chief Executive Officer
responsible for implementation and
oversight of the Business Responsibility
policy(ies).
9. Does the entity have a specified Yes. Dr. Satyanarayana Chava, Executive Director and Chief Executive Officer is responsible
Committee of the Board/ Director
responsible for decision making on
sustainability related issues? (Yes / No).
If yes, details.

Policy A: https://www.lauruslabs.com/images/pdfs/Business_Code_of_Conduct_and_Ethics_Policy.pdf

Policy B: https://www.lauruslabs.com/images/pdfs/EHSS_Policy.pdf

Policy C: https://www.lauruslabs.com/Investors/PDF/Policies/Corporate_Social_Responsibility_Policy.pdf

Annual Report 2023-24 137

 10 Details of Review of NGRBCs by the Company:

138
Frequency
Indicate whether review was undertaken by Director/ Committee of the Board/ Any other Committee
Subject for Review (Annually/ Half yearly/ Quarterly/ Any other – please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against above Business Steering Committee Annually
policies and follow up action
Compliance with statutory Yes Yes Yes Yes Yes Yes Yes Yes Yes
LAURUS LABS LIMITED

requirements of relevance to
the principles, and, rectification
of any non-compliances

Chemistry for Better Living

11. Has the entity carried out independent assessment/evaluation of the working of its policies by an external P1 P2 P3 P4 P5 P6 P7 P8 P9
agency? (Yes/No). If yes, Name of the agency. No No No No No No No No No

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles material to its business (Yes/No) No No No No No No No No No
The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles The Company has no direct policies. However, our ESG initiatives are mostly in alignment
(Yes/No) with the goals of these 9 policies
The entity does not have the financial or/human and technical resources available for the task (Yes/No) No No No No No No No No No
It is planned to be done in the next financial year (Yes/No) The Company has plans to implement these policies going forward
CORPORATE OVERVIEW

Any other reason (please specify) Nil

Business Responsibility & Sustainability Reporting
YEAR IN REVIEW
STRATEGIC REVIEW
 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key
processes and decisions. The information sought is categorised as “Essential” and “Leadership”. While the essential indicators are
expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by
entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

% age of persons in
respective category
Total number of training and awareness Topics/principles covered under the training
Segment covered by the
programmes held and its impact
awareness
programmes
Board of Directors NIL NA NA
Key Managerial NIL NA NA
Personnel
Employees & Trainings by Board of Directors
Workers other than 15 sessions were conducted Workshop on the importance of employee’s Profession/role and 25
BoD and KMPs accommodating approximately enhancing their time management, skills, knowledge, ownership,
1500 employees. adaptability, leadership, teamwork, and customer service (internal
and external)
5 sessions were conducted Improvements in content creation, tailoring content, simulations, 8
accommodating approximately and interactive activities.
500 employees.
2 Sessions were conducted for 25 Key Stakeholder engagement: Engaging key stakeholders, like the -
stakeholders. site Heads and functional Heads for the alignment with the
organisational goals.
4 sessions were conducted Town Hall: Organisation direction, Interactive session, that
accommodating approximately encourages open communication and taking valuable insights and
500 employees. feedback from the senior employees.
Employees & Workers other than BoD and KMPs
6,21,590 training sessions were 1. The employees/operators’ training is being controlled through the 96
conducted for approximately electronic system known as LMS ( Learning Management System)
6089 employees. This system manages employee training in a comprehensive
approach that ensures employees receive the necessary training and
certifications to perform their roles effectively and safely. The LMS
generates and tracks various types of training including
• Induction Training
• Standard Operating Procedures (SOPs)
• current Good Manufacturing Practices (cGMP)
• External Training
• Miscellaneous Training
• Unscheduled Training
• General Training (Prevention of Sexual Harassment (POSH)
The LMS schedules these trainings according to employees’ roles,
job responsibilities, and regulatory requirements ensuring that they
receive timely and appropriate training throughout their tenure with
the company.
Additionally, the system tracks employees’ progress, completion
status, and certification facilitating compliance and audit readiness.
Overall using an LMS streamlines the training process, enhances
compliance, and contributes to a well-trained and knowledgeable
workforce.
25 sessions were conducted for Skill & Knowledge enhancement - Mock tests to improve Review 26
approximately 1130 capability, Procedure familiarity, and Problem-solving skills.

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Business Responsibility & Sustainability Reporting

2. Details of fines/ penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by
directors/KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note:
the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure
Obligations) Regulations, 2015 and as disclosed on the entity’s website):

Monetary
Name of the
regulatory/ Has an
NGRBC
enforcement Amount (In `) Brief of the Case Appeal been
Principle
agencies/ preferred? (Yes/No)
judicial institutions
Penalty/ Fine NA NIL NIL NA NA
Settlement NA NIL NIL NA NA
Compounding fee NA NIL NIL NA NA

Non-Monetary
Name of the
regulatory/ Has an
NGRBC
enforcement Brief of the Case Appeal been
Principle
agencies/ preferred? (Yes/No)
judicial institutions
Imprisonment NA NIL NA NA
Punishment NA NIL NA NA

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary
action has been appealed. NIL

Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

NA NA

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to
the policy. Yes

https://www.lauruslabs.com/Investors/PDF/Policies/LaurusLabsLimitedPrivacy-policy.pdf

5. Number of Directors/ KMPs/ employees/ workers against whom disciplinary action was taken by any law enforcement agency for
the charges of bribery/ corruption: NIL

FY24 FY23
(Current (Previous
Financial Year) Financial Year)(
Directors NIL NIL
KMPs NIL NIL
Employees NIL NIL
Workers NIL NIL

6. Details of complaints with regard to conflict of interest: NIL

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict of NIL NA NIL NA
Interest of the Directors
Number of complaints received in relation to issues of Conflict of NIL NA NIL NA
Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law
enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest. NIL

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8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:

FY24 FY23
(Current (Previous
Financial Year) Financial Year)
Number of days of accounts payables 123 109

9. Open-ness of business

FY24 FY23
Parameter Metrics (Current (Previous
Financial Year) Financial Year)
Concentration of Purchases a) Purchases from trading houses as % of total purchases 41% 43%
b) Number of trading houses where purchases are made from - -
c)  Purchases from top 10 trading houses as % of total purchases from - -
trading houses
Concentration of Sales a) Sales to dealers / distributors as % of total sales 0.11% 0.03%
b) Number of dealers / distributors to whom sales are made 1 1
c) Sales to top 10 dealers / distributors as % of total sales to dealers / 100% 100%
distributors
Share of RPTs in a) Purchases (Purchases with related parties / Total Purchases) 3.16% 3.28%
b) Sales (Sales to related parties / Total Sales) 3.75% 1.49%
c) Loans & advances (Loans & advances given to related parties / Total 92.41% 76.05%
loans & advances)
d) Investments 99.46% 99.11%
(Investments in related parties / Total Investments made)

Note:
For Purchases from trading houses – considering that the company sources its purchases from both traders and manufacturers, for calculation purpose herein
we have considered purchases of raw materials and packing materials from traders
For Sales to Dealers/Distributors - The nature of Sales made by the Company are largely direct sales, sales to dealers and distributors is limited to only one
vendor, wherein, it is low both in terms of value and volume.

Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

% age of value chain partners covered by value

Total number of awareness programs held Topics / principles covered under meeting of business done with such partners under the
awareness programs
1. One Training Session was conducted Laurus Supplier Code of Conduct encompasses 63%
with the elected Strategic supplier base the following aspects of Sustainability
which clearly explained the key areas of 1. Business Ethics
Laurus Code of conduct and the necessity
to assess, monitor and improve on 2. Human rights
these aspects 3. Employment Practices
2. We engage with the Strategic supplier 4. Environment
base on individual basis to make 5. Health & Safety
them aware of Laurus expectations
6. Supporting Communities
on Sustainable practices and get their
feedback Laurus had identified key strategic suppliers and
have evaluated their Sustainability practices
through Supplier assessment framework. The
strategic suppliers were classified as critical and
non-critical based on various criteria.
The total RM Spend of the selected Strategic
suppliers was

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes,
provide details of the same.

Yes. Declaration and recusing the respective board members in discussions and voting.

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Business Responsibility & Sustainability Reporting

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social
impacts of product and processes to total R&D and capex investments made by the entity, respectively.

Category Current Financial Year Previous Financial Year Details of improvements in environmental and social impacts
R&D 7.29% 0.92% In-licensed 4 gene assets from IIT-Kanpur. Necessary funding support provided
to advance clinical trials
Capex NIL NIL

2. a) Does the entity have procedures in place for sustainable sourcing? - Yes

b) If yes, what percentage of inputs were sourced sustainably? 63% (as per Sustainability Report for FY23)

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics
(including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

In keeping with our focus on sustainable company operations, Laurus Labs strives to reduce waste generated at the source
whenever possible and recycle the residual waste. A considerable portion of the waste generated in the pharmaceutical industry is
categorised as hazardous and must be handled with caution. We ensure that the waste generated by our operations is effectively
monitored and disposed of in accordance with all relevant regulatory standards.

We also regularly monitor our waste management systems and procedures to ensure that the waste generated throughout our
sites undergoes proper and safe treatment. Solvent recovery systems deployed at our API locations allow predefined volumes of
used solvent to be recovered. Our operational efficiency allows us to use resources conservatively and reduce waste. We comply
with all the local and national regulations, in addition to adopting global standards in safe handling and disposal of emissions
and effluents.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection
plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps
taken to address the same. No

Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its
services (for service industry)? If yes, provide details in the following format? NIL

Boundary for which the Whether conducted by Results communicated in

Name of Product % of total Turnover
NIC Code Life Cycle Perspective / independent external agency public domain (Yes/No)
/Service contributed
Assessment was conducted (Yes/No) If yes, provide the web-link.
NA NA NA NA NA NA

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products /
services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same
along-with action taken to mitigate the same. NIL

Name of Product / Service Description of the risk / concern Action Taken

NA NA NA

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or
providing services (for service industry).

Recycled or re-used input material to total material

Indicate input material FY24 FY23

Current Previous
Financial Year Financial Year
Total Recycled input material 160,252 MT 118,612 MT

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4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed,
as per the following format: NIL

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Safely Safely
Re-Used Recycled Re-Used Recycled
Disposed Disposed
Plastics (including packaging) NIL NIL NIL NIL NIL NIL
E-waste NIL NIL NIL NIL NIL NIL
Hazardous waste NIL NIL NIL NIL NIL NIL
Other waste NIL NIL NIL NIL NIL NIL

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category. NIL

Indicate product category Reclaimed products and their packaging materials as % of total products sold in respective category
NA NA

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their
value chains
Essential Indicator
1. a) Details of measures for the well-being of employees:

% of employees covered by
Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
Total (A) Number Number Number Number Number
% (B / A) % (C / A) % (D / A) % (E / A) % (F / A)
(B) (C) (D) (E) (F)
Permanent employees
Male 5,567 5,567 100% 5,567 100% NA NA 5,567 100% NA NA
Female 440 440 100% 440 100% 440 100% NA NA 440 100%
Total 6,007 6,007 100% 6,007 100% 400 100% 5,567 100% 440 100%
Other than Permanent employees
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Total NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Details of measures of the well-being of workers:

% of workers covered by

Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
Total (A)
Number Number Number Number Number
% (B / A) % (C / A) % (D / A) % (E / A) % (F / A)
(B) (C) (D) (E) (F)
Permanent workers
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Total NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Other than Permanent workers
Male NIL NIL NIL 5,556 100% NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL 67 100% NIL NIL NIL NIL 67 100%
Total NIL NIL NIL 5,623 100% NIL NIL NIL NIL 67 100%

Note: Workers are not on payroll of Laurus, other benefits will be taken care by contractor

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Business Responsibility & Sustainability Reporting

C. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the
following format –

FY24 FY23
(Current (Previous
Financial Year) Financial Year)
Cost incurred on well- being measures as a % of total revenue of the company 1.67% 1.22%

Aforementioned well-being costs, includes costs incurred for bus transportation charges, canteen expenses, Medical insurance, health
insurance, medical expenses amongst others for employees and workers.

2. Details of retirement benefits, for Current FY and Previous Financial Year.

FY24 FY23
(Current Financial Year) (Previous Financial Year)

Benefits Deducted and Deducted and

No. of employees No. of workers No. of employees No. of workers
deposited with deposited with
covered as a % of covered as a % of covered as a % of covered as a % of
the authority the authority
total employees total workers total employees total workers
(Y/N/N.A.) (Y/N/N.A.)
PF 100% NA YES 100% NA YES
Gratuity 34% NA NA 39% NA NA
ESI 23% NA YES 22% NA YES
Others – please specify -- - - -- -- NA

3. Statutory benefits to workers as per applicable laws being reimbursed by Company to the agencies for contract workers.
Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights
of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard. YES

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to
the policy. YES

https://www.lauruslabs.com/Investors/PDF/Policies/NDP.pdf

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Permanent employees Permanent workers

Gender
Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100% NA NA
Female 91% 100% NA NA
Total 99.53% 100% NA NA

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give
details of the mechanism in brief.

Yes/No
(If Yes, then give
details of the
mechanism in
brief)
Permanent Workers NA
Other than Permanent Workers YES
Permanent Employees YES
Other than Permanent Employees YES

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7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

FY24 FY23
(Current Financial Year) (Previous Financial Year)
No. of
No. of employees
employees /workers
Total employees / workers in Total employees
Category in respective
/ workers in respective category, / workers in
category, who
respective who are part of % (B / A) respective % (D / C)
are part of
category association(s) or category
association(s) or
(A) Union (C)
Union
(B)
(D)
Total Permanent Employees
- Male NIL NIL
- Female NIL NIL
Total Permanent Workers
- Male NIL NIL
- Female NIL NIL

8. Details of training given to employees and workers:

FY24 FY23
(Current Financial Year) (Previous Financial Year)

Category On Health On Skill On Health and

On Skill upgradation
and safety measures upgradation safety measures
Total (A) Total (D)
No. % (B No. % (C / No.
% (E / D) No. (F) % (F / D)
(B) / A) (C) A) (E)
Employees
Male 5,567 5,567 100% 5,567 100% 5,335 5,335 100% 5,335 100%
Female 440 440 100% 440 100% 418 418 100% 418 100%
Total 6,007 6,007 100% 6,007 100% 5,753 5,753 100% 5,753 100%
Workers
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Total NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

9. Details of performance and career development reviews of employees and worker:

FY24 FY23
Category (Current Financial Year) (Previous Financial Year)
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 5,567 5,567 100% 5,335 5,335 100%
Female 440 440 100% 418 418 100%
Total 6,007 6,007 100% 5,753 5,753 100%
Workers
Male NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL
Total NIL NIL NIL NIL NIL NIL

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10. Health and safety management system:

a) Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the
coverage such system?

 es, all units are certified with ISO 45001:2018. We carry out internal audits to check the effectiveness of EHSMS
Y
periodically. Trained EHSMS coordinators are appointed to implement OHSMS.

b) What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

 arious standard operating procedures such as (EHS/004: EHS Risk Assessment and EHS/028: EHS Internal audits,
V
inspection) implementing to identify work related hazards and their associated risks. Before execution of any process
we carry out the activity based risk assessment (ABRA) followed by HAZOP study (Hazard Operability) and ERA
(Exposure Risk Assessment). We implement all recommendations to ensure the process is safe before execution. We
have implemented change control program where all changes (which may create potential risks) are assessed prior
to implementation and after thorough review, all changes are accepted. We follow line management responsibility
approach in implementing safety and hence we engage our employees as One Day safety officer from other functions to
identify unsafe situations. EHS department takes round on the shop floor and highlights the unsafe situations as well.

We have engaged few employees as safety champion and they are available in each shift, observe and highlight all
unsafe situations. These observations are reviewed by their respective Block in-charge followed by unit EHS lead.

c) Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N)

 es, SOP EHS 028: EHS Internal Audit, Inspections, NC, and CAPA is in place. We encourage our workers to report all
Y
unsafe observations immediately. We have engaged our employees as safety champion who are reporting in each shift,
takes round on the shop floor, monitors critical activities and reports all unsafe situations. Also we have dedicated EHS
department who takes frequent rounds in shop floor to identify unsafe situations.

SOP EHS 007: EHS Committee is in place. We have EHS committee members who highlight all unsafe situations to the
EHS Department and in EHS committee as well.

We have implemented Safety Suggestion Scheme and installed safety suggestion box at the main gate and encourage
workers to share suggestions. EHS department collects all suggestions and take action accordingly. We do encourage
workers to share suggestions during different EHS promotional activities such as National Safety Day celebration, World
Environment Day Celebration etc. and EHS department also awards the worker to promote EHS culture.
d) Do the employees/worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)

Yes, the employees/workers of the entity have access to non-occupational medical and healthcare services. All
employees are covered under health insurance, statutory health insurance (ESIC) as per eligibility, providing periodical
health checkups and wellness programs.

11. Details of safety related incidents, in the following format

FY24 FY23
Safety Incident/Number Category* Current Previous
Financial Year Financial Year
Lost Time Injury Frequency Rate (LTIFR) (per one million-person Employees NIL 0.23
hours worked) Workers NIL NIL
Total recordable work-related injuries Employees NIL NIL
Workers NIL NIL
No. of fatalities Employees NIL 3
Workers NIL 2
High consequence work-related injury or ill-health (excluding fatalities) Employees NIL NIL
Workers NIL NIL

*Including in the contract workforce

Note:
The reporting boundary for the above indicator includes the Company’s manufacturing units

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12. Describe the measures taken by the entity to ensure a safe and healthy work place.

a) We have implemented various standard operating procedures (SOP) and Operational Control Procedures (OCP) to
ensure safety at workplace.

b) Periodical trainings are given to all workers on safe practices.

c) Continuous inspections and periodical audits are carried out to identify all unsafe acts & conditions.

d) We are carrying out several audits in the specific areas by the third party to identify the gaps and to make
further improvement.

e) Designed the workplace based on the latest statutory requirements and complying with all safety norms.

f) Process safety studies are carried out for all processes before execution, risk assessment is done to make the
process safe. All process safety requirements are implemented. Workplace monitoring is carried out to improve the
industrial hygiene.

g) EHS promotional activities are carried out to encourage safe practices and promote safety as a culture.

h) Periodical review meeting with senior management to improve safety requirement.

i) Emergency preparedness and response:

• Fire protection which comprises of Detection, Alarm and Suppression system installed at all workplaces.

• Two numbers of Multi-purpose Fire Tenders are in place and procuring another Two numbers in this year.

• All sites have Occupational Health Centers and Ambulances. Additionally, Two numbers of Advanced Life
Support Ambulances are in place.

• Emergency Response Teams on-site, who undergone a specific training from External Expert Agency.

13. Number of Complaints on the following made by employees and workers:

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Filed during Pending resolution Filed during Pending resolution
Remarks Remarks
the year at the end of year the year at the end of year
Working Conditions NIL NIL NIL NIL
Health & Safety NIL NIL NIL NIL

14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100%

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks /
concerns arising from assessments of health & safety practices and working conditions.

We implement all recommendations related to different safety audits, statutory audits and incidents. Best practices
from other industries are implemented as well.

All recommendations related to risk assessments are implemented to make the process safe.

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Business Responsibility & Sustainability Reporting

Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers
(Y/N).

Yes, for both the employees and workers

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value
chain partners.

The Company collects the proofs of deposits of statutory dues like payment challans etc. from the service value chain
partners before releasing their bills regularly and ensures that the statutory dues have been deducted and deposited by
the value chain partners with the relevant statutory authorities.

3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health / fatalities
(as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose
family members have been placed in suitable employment:

No. of employees/workers that are

rehabilitated and placed in suitable
Total no. of affected employees/ workers employment or whose family
members have been placed in
suitable employment
FY24 FY23 FY24 FY23
(Current (Previous (Current (Previous
Financial Year) Financial Year) Financial Year) Financial Year)
Employees NIL 3 NIL NIL
Workers NIL 2 NIL NIL

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career
endings resulting from retirement or termination of employment? (Yes/ No)

NO

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices We conduct yearly once sustainability assessment of our value chain partners, providing
Working Conditions awareness program, conducting assessment. During the year 60% of our value chain partners
have been assessed.

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of
health and safety practices and working conditions of value chain partners.

No such cases

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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.

Our stakeholders includes Individuals, Groups, Companies or institutions that are part of our value chain.

We follow the process of identification of the stakeholders is defined by their interest, impact and participation in
operations of the Company including engagement on various environmental, social and governance matters and we
classify accordingly. Our operations are integrated with stakeholder needs, interests and expectations.

O ver the years we have developed firm-level processes to encourage open and constructive interaction with our

stakeholders. It reinforces our understanding of relevant matters and helps us identify those attributes of stakeholders
that make them important to our business and necessitate meaningful engagement. Engaging with stakeholders
provides us an opportunity to serve them in the best sustainable way and redefine our strategies to deliver the
maximum value.

By Partnering with our stakeholders, we involve them in the decision making, product and process improvement and
create an enabling environment to do better together.
Our sustainability programme brings together stakeholders from across the pharmaceutical value chain to identify
and address the industry’s most pressing environmental issues. One-on-one meetings, annual general meetings,
training, group discussions, surveys, and supplier and custodial relationships are all examples of systematic channels of
interaction with our stakeholders integrated throughout our business operations.

At a strategic level, stakeholder issues are examined and taken into account. The stakeholder engagement framework
represents how we connect with our stakeholders and address their major problems. The table below details the various
stakeholder groups that have had direct or indirect contact with Laurus Labs, as well as their ways of involvement and
key concerns.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Frequency of
Whether Channels of Communication (Email,
engagement
identified as SMS, Newspapers, Pamphlets, Purpose and scope of engagement
Stakeholder (Annually/Half
Vulnerable & Advertisement, Community including key topics and concerns raised
Group Yearly/Quarterly/
Marginalised Meetings, Notice Board, Website), during such engagement
Others – Please
Group (Yes/No) Others
specify)

Customers No • Customer audits Regular interval • Safety

• One-on-one meetings • Customer data protection and privacy
• Exhibitions • Product efficacy
• Quality
• Sustainable supplies
Investors and No • Financial results/ investor calls Quarterly & need basis • Business growth/ profitability
Shareholders • Television and print media • Newer opportunities
interviews • Risk management,
• Annual bankers meet • Governance
• Email announcements
Government and No • Regulatory audits On need basis • Compliance
regulators • Engagement on a need basis • Stipulated timely reporting
• Participation in forums • Sustainable practices
• Inclusive growth
Employees No • Formal induction at the time Frequently • Workplace safety, employee welfare,
of joining IR issues
• Technical and non-technical • Professional growth
training programs • Employee benefits and other facilities
• Town hall meetings • Diversity at the workplace
• Operations review meetings • Leadership connect sessions
• Quarterly newsletters

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Frequency of
Whether Channels of Communication (Email,
engagement
identified as SMS, Newspapers, Pamphlets, Purpose and scope of engagement
Stakeholder (Annually/Half
Vulnerable & Advertisement, Community including key topics and concerns raised
Group Yearly/Quarterly/
Marginalised Meetings, Notice Board, Website), during such engagement
Others – Please
Group (Yes/No) Others
specify)

• Intranet portal • Equal opportunities

• International Safety Day • Wages and benefits
celebrations • Work-life balance
• Laurus Labs Family Day–an annual
cultural extravaganza
• Annual sports meet
• Programs and competitions for
employees and their families
• Grievance redressal mechanism
• Continual feedback sessions
• Mailers on Safety, Health especially
COVID-19 awareness
Business No • Contract agreements Regularly on need basis • Payment processing cycles
partners / • Global pharma meets • Business ethics and transparency
suppliers and
service providers • Symposiums • Sustainability performance
• Seminars
Communities No • Direct meets with Frequent and need • Community development (education,
and NGOs local representatives basis healthcare, sanitation, water)
• Science exhibitions & health camps • Livelihood creation
• Initiatives like community tree • Other social benefits
plantations, RO water facilities at • Local sourcing of labour
public places, building community
infrastructure, aid to government • Managing conflict
schools, hospitals and NGOs • Social licence to operate
• Collaboration with government/
NGOs

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if
consultation is delegated, how is feedback from such consultations provided to the Board.

 ur Board of Directors serves as a source of advice and counsel in ensuring highest levels of corporate governance
O
through risk control and regulatory compliance. The Board of Directors oversees the organisational management to
assure that all the stakeholder demands are met promptly. By responsibly addressing the concerns of the stakeholders in
our value chain, the Board of Directors and the senior management team ensure that the long-term interests of multiple
parties are recognised. The committees appointed by the board focus on specific areas where they can make informed
decisions and provide recommendations to the board on the matters in their areas.

The Board commits to providing accurate and thorough financial and non-financial reporting, as well as a rigorous
feedback mechanism. To protect stakeholder interests, we will adopt best practices for disclosures and be subject to
internal and/or external assurance and governance procedures.

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2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics
(Yes / No).

Yes

If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies
and activities of the entity.

Over the years we have developed firm-level processes to encourage open and constructive interaction with our
stakeholders. It reinforces our understanding of relevant matters and helps us identify those attributes of stakeholders
that make them important to our business and necessitate meaningful engagement. Engaging with stakeholders
provides us an opportunity to serve them in the best sustainable way and redefine our strategies to deliver the maximum
value. By partnering with our stakeholders, we involve them in the decision making, product and process improvement
and create an enabling environment to do better together.

We have adopted a structured approach to materiality assessment aligned to the GRI standards and IR framework that
includes identifying a broad umbrella of relevant issues and prioritising them based on changing business needs and
stakeholder feedback.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalised
stakeholder groups.

At a strategic level, stakeholder issues are examined and taken into account. The stakeholder engagement framework
represents how we connect with our stakeholders and address their major problems. The table provided in the principle 4
details the various stakeholder groups that have had direct or indirect contact with Laurus Labs, as well as their ways of
involvement and key concerns.

PRINCIPLE 5: Businesses should respect and promote human rights

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

FY24 FY23
(Current Financial Year) (Previous Financial Year)

Category No. of No. of

employees / employees /
Total (A) % (B / A) Total (C) % (D / C)
workers covered workers covered
(B) (D)
Employees
Permanent 6,007 6,007 100% 5,753 5,753 100%
Other than permanent NIL NIL NIL NIL NIL NIL
Total Employees 6,007 6,007 100% 5,753 5,753 100%
Workers
Permanent NIL NIL NIL NIL NIL NIL
Other than permanent 5,623 5,623 100% 4,561 4,561 100%
Total Workers 5,623 5,623 100% 4,561 4,561 100%

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2. Details of minimum wages paid to employees and workers, in the following format:

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Category
Equal to More than Equal to More than
Total (A)
Total (A) Minimum Wage Minimum Wage Total (D) Minimum Wage Minimum Wage
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Permanent 6,007 NIL 0% 6,007 100% 5,753 NIL NIL 5,753 100%
Male 5,567 NIL 0% 5,567 100% 5,335 NIL NIL 5,335 100%
Female 440 NIL 0% 440 100% 418 NIL NIL 418 100%
Other than Permanent NIL NIL 0% NIL NIL NIL NIL NIL NIL NIL
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Workers
Permanent NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Other than Permanent 5,623 NIL 0% 5,623 100% 4,561 NIL NIL 4,561 100%
Male 5,556 NIL 0% 5,556 100% 4,528 NIL NIL NIL 100%
Female 67 NIL 0% 67 100% 33 NIL NIL NIL 100%

3. Details of remuneration/ salary/ wages

a) Median remuneration/wages:

Male Female
Median remuneration/ Median remuneration/
Number salary/ wages of Number salary/ wages of
respective category respective category
Board of Directors (BoD) 6 2,25,26,856 1 28,50,000
Key Managerial Personnel 1 83,01,595 NIL NA
Employees other than BoD and KMP 5563 4,66,596 440 3,48,084
Workers 5556 19,069 67 19,069

b) Gross wages paid to females as % of total wages paid by the entity, in the following format:

FY24 FY23
(Current (Previous
Financial Year) Financial Year)
Gross wages paid to females as % of total wages 6% 6%

Gross wages are considered as Cost-to-Company (CTC) for the employees & workers

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed
to by the business? (Yes/No)

YES

Head of Human Resources i.e. Mr. Narasimha Rao Chava, Executive Vice President (HR) and Head of Legal Department

i.e. Mr. G. Venkateswar Reddy, Vice President (Legal and Company Secretary ) will be responsible.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

The Company has enforced various policies which take care of human rights and any grievances shall be escalated to the

HR team which is basically responsible to implement the policies and accordingly HR team shall take suitable measures
to redress grievances relating to violation of human rights, if any.

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6. Number of Complaints on the following made by employees and workers:

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Pending Pending
Filed during Filed during
resolution at Remarks resolution at Remarks
the year the year
the end of year the end of year
Sexual Harassment NIL NIL NA NIL NIL NA
Discrimination at workplace NIL NIL NA NIL NIL NA
Child Labour NIL NIL NA NIL NIL NA
Forced Labour/Involuntary Labour NIL NIL NA NIL NIL NA
Wages NIL NIL NA NIL NIL NA
Other human rights related issues NIL NIL NA NIL NIL NA

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the
following format:

FY24 FY23
(Current (Previous
Financial Year) Financial Year)
Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, Prohibition NIL NIL
and Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees / workers NIL NIL
Complaints on POSH upheld NIL NIL

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

The company has implemented Whistle Blower Mechanism where any discrimination and harassment cases can be

directly brought to the notice of Board of Directors. Similarly, in sexual harassment cases, there is Internal Complaints
Committees (ICCs) and relevant policies to ensure that complaint(s) shall not be met with adverse consequences.

9. Do human rights requirements form part of your business agreements and contracts?

(Yes/No)

Yes, particularly relating to non-engagement of child labour, forced labour, non-discrimination at work places etc.

10. Assessments for the year: NIL

% of your plants and offices that were assessed

(by entity or statutory authorities or third parties)
Child labour 0%
Forced/involuntary labour 0%
Sexual harassment 0%
Discrimination at workplace 0%
Wages 0%
Others – please specify 0%

11. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at
Question 10 above. No

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Leadership Indicators
1. Details of a business process being modified/ introduced as a result of addressing human rights grievances/ complaints.

There were no such grievances/complaints in the Company.

2. Details of the scope and coverage of any Human rights due-diligence conducted.

No such third party due diligence was conducted.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with
Disabilities Act, 2016?

Yes.

4. Details on assessment of value chain partners: No

% of value chain partners

Particulars
(by value of business done with such partners) that were assessed
Sexual Harassment
Discrimination at workplace
63%
Child Labour (As part of sustainability SCM conducts
Forced Labour/Involuntary Labour assessment on yearly basis)
Wages
Others – please specify

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at
Question 4 above. Not applicable

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
The reporting boundary for environment indicators includes the Company’s manufacturing units.

The source for Purchasing Power Parity (PPP) is International Monetary Fund (IMF). The PPP rate considered is 22.40 for FY 23-24 and
22.17 for FY 22-23.

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

FY24 FY23
Parameter (Current (Previous
Financial Year) Financial Year)
From renewable sources
Total electricity consumption (A) 74,426 GJ 2,795 GJ
Total fuel consumption (B) -- --
Energy consumption through other sources (C) 117,672 GJ 120,719 GJ
Total energy consumed from renewable sources (A+B+C) 192,098 GJ 123,514 GJ
From non-renewable sources
Total electricity consumption (D) 895,833 GJ 806,676 GJ
Total fuel consumption (E) 2,466,440 GJ 2,080,293 GJ
Energy consumption other sources (F)
Total energy consumed from non-renewable sources (D+E+F) 3,362,273 GJ 2,886,969 GJ
Total energy consumed (A+B+C+D+E+F) 3,554,371 GJ 3,010,483 GJ
Energy intensity per rupee of turnover (Total energy consumed/Revenue from operations) 0.00007 0.00005
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) 0.0016 0.0011
(Total energy consumed / Revenue from operations adjusted for PPP)
Energy intensity in terms of physical output -- --
Energy intensity (optional) – the relevant metric may be selected by the entity -- --

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

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2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade
(PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In
case targets have not been achieved, provide the remedial action taken, if any. No

3. Provide details of the following disclosures related to water, in the following format:

FY24 FY23
Parameter (Current (Previous
Financial Year) Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water -- --
(ii) Groundwater -- --
(iii)  Third party water 1,583,058 1,385,309
(iv) Seawater / desalinated water -- --
(v) Others -- --
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,583,058 1,385,309
Total volume of water consumption (in kilolitres) 964,759 904,457
Water intensity per rupee of turnover (Total water consumption / Revenue from operations) 0.000020 KL / rupee 0.000023 KL / rupee
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) 0.00045 0.00035
(Total water consumption / Revenue from operations adjusted for PPP)
Water intensity in terms of physical output -- --
Water intensity (optional) – the relevant metric may be selected by the entity -- --

Note: In FY 2023-24 water consumption is equal to water withdrawal less water discharged. The information reported for FY 2022-23 is
restated on the same basis.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

4. Provide the following details related to water discharged:

FY24 FY23
Parameter (Current / (Previous
Financial Year) Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water -- --
- No treatment
- With treatment – please specify level of treatment
(ii) To Groundwater -- --
- No treatment
- With treatment – please specify level of treatment
(iii) To Seawater -- --
- No treatment
- With treatment – please specify level of treatment
(iv) Sent to third-parties
- No treatment
- With treatment – please specify level of treatment* 618,299 480,852
(v) Others
- No treatment
- With treatment – please specify level of treatment
Total water discharged (in kilolitres) 618,299 480,852

*Water discharged which is sent to third-party undergoes through primary level of treatment as required by the norms.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

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5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

Our operational units are not designed as ZLD. As per the EC terms of industrial cluster, we are disposing waste water

to the common effluent treatment plants authorised by State Pollution Control Board (SPCB).

6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

FY24 FY23
Parameter Please specify unit (Current (Previous
Financial Year) Financial Year)
NOx Tonnes 296 213
SOx Tonnes 798 631
Particulate matter (PM) Tonnes 170 128
Persistent organic pollutants (POP) -- --
Volatile organic compounds (VOC) ppm 383 --
Hazardous air pollutants (HAP) -- --
Others – please specify -- --

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

FY24 FY23
Parameter Unit (Current (Previous
Financial Year) Financial Year)
Total Scope 1 emissions Metric tonnes of CO2 equivalent 198,782 182,215
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 2 emissions Metric tonnes of CO2 equivalent 176,678 159,094
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 1 and Scope 2 emission intensity per rupee of turnover 0.0000078 0.0000058
(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations)
Total Scope 1 and Scope 2 emission intensity per rupee of turnover 0.00017 0.00013
adjusted for Purchasing Power Parity (PPP) (Total Scope 1 and Scope 2
GHG emissions / Revenue from operations adjusted for PPP)
Total Scope 1 and Scope 2 emission intensity in terms of physical -- --
output
Total Scope 1 and Scope 2 emission intensity -- --
(optional) – the relevant metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

Co-gen Boiler- We generates Power & Steam at a single platform:

Earlier, we used to generate steam from our in-house boilers of capacity 2*16TPH and the steam produced from the boilers are
used for our manufacturing activities in the same unit.

Later, we installed the co-gen boiler of 35MT capacity in view of reducing the burden towards purchasing the electricity and to
reduce our SCOPE-2 GHG emissions.

This Boiler generates steam as well as 4.5MW of power per day which indirectly reducing the fuel consumption to produce
equivalent power by an external provider. Installation of Cogen boiler system benefiting as mentioned below:

• Reduced Scope 2 GHG emissions

• Optimised the fuel consumption
• Utilising the waste heat appropriately

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9. Provide details related to waste management by the entity, in the following format:

FY24 FY23
Parameter (Current (Previous
Financial Year) Financial Year)
Total Waste generated (in metric tonnes)
Plastic waste (A) 540 465
E-waste (B) 0.97 2.69
Bio-medical waste (C) 13.35 11.58
Construction and demolition waste (D)
Battery waste (E)
Radioactive waste (F)
Other Hazardous waste. Please specify, if any. (G) 33,162 29,053
Other Non-hazardous waste generated (H). Please specify, if any. 11,126 5,950
(Break-up by composition i.e. by materials relevant to the sector)
Total (A+B + C + D + E + F + G+ H) 44,843 35,483
Waste intensity per rupee of turnover 0.00000093 0.00000061
(Total waste generated /Revenue from operations)
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) 0.000021 0.000014
(Total waste generated / Revenue from operations adjusted for PPP)
Waste intensity in terms of physical output
Waste intensity (optional) – the relevant metric may be selected by the entity
For each category of waste generated, total waste recovered through recycling, re-using or other
recovery operations (in metric tonnes)
Category of waste
(i) Recycled 22,884 20,719
(ii) Re-used NIL NIL
(iii) Other recovery operations 4,263 6,552
Total 27,147 27,271
For each category of waste generated, total waste disposed by nature of disposal method (in metric
tonnes)
Category of waste
(i) Incineration 818 529
(ii) Landfilling 5,752 1,696
(iii) Other disposal operations 11,126 5,987
Total 17,697 8,212

Note: Other hazardous waste comprises of items such as spent solvents, evaporation salts, ETP sludge among others.

Other non-hazardous waste comprises of items such as fly ash, fiber drums, scrap pipes, others.

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

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10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage
such wastes.

In keeping with our focus on sustainable company operations, Laurus Labs strives to reduce waste generated at the source
whenever possible and recycle the residual waste. A considerable portion of the waste generated in the pharmaceutical industry is
categorised as hazardous and must be handled with caution. We ensure that the waste generated by our operations is effectively
monitored and disposed of in accordance with all relevant regulatory standards.

We also regularly monitor our waste management systems and procedures to ensure that the waste generated throughout our
sites undergoes proper and safe treatment. Solvent recovery systems deployed at our API locations allow predefined volumes of
used solvent to be recovered. Our operational efficiency allows us to use resources conservatively and reduce waste. We comply
with all the local and national regulations, in addition to adopting global standards in safe handling and disposal of emissions
and effluents.

Some of the active measures and interventions to reduce processed waste from our operations are:
• All used batteries are returned to the supplier or recycler. E-waste is collected and delivered to authorised recyclers
• 100% of the hazardous waste produced was disposed safely across all units
• E-waste is being sent to authorised recyclers

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere
reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are
required, please specify details in the following format: Nil

Sr. Whether the conditions of environmental approval / clearance are being complied
Location of operations/offices Type of operations
No. with? (Y/N) If no, the reasons thereof and Corrective action taken, if any.
NA NA NA

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial
year: Nil

Whether conducted by
Results communicated in
Name and brief details EIA independent external
Date public domain Relevant Web link
of project Notification No. agency
(Yes / No)
(Yes / No)
NA NA NA NA NA NA

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and
Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If
not, provide details of all such non-compliances, in the following format: Nil

Specify the law / regulation / Any fines / penalties / action taken

Sr. Provide details of the
guidelines which was by regulatory agencies such as Corrective action taken, if any
No. non‑compliance
not complied with pollution control boards or by courts
NA NA NA NA

Leadership Indicators
1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

For each facility / plant located in areas of water stress, provide the following information:

(i) Name of the area

(ii) Nature of operations

(iii) Water withdrawal, consumption and discharge in the following format:

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FY24 FY23
Parameter (Current (Previous
Financial Year) Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water NIL NIL
(ii) Groundwater NIL NIL
(iii) Third party water 1,583,058 1,385,309
(iv) Seawater / desalinated water NIL NIL
(v) Others NIL NIL
Total volume of water withdrawal (in kilolitres) 1,583,058 1,385,309
Total volume of water consumption (in kilolitres) 964,759 904,457
Water intensity per rupee of turnover (Water consumed / turnover) 0.000020 KL / rupee 0.000023 KL / rupee
Water intensity (optional) – the relevant metric may be selected by the entity
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water -- --
- No treatment
- With treatment – please specify level of treatment
(ii) Into Groundwater -- --
- No treatment
- With treatment – please specify level of treatment
(iii) Into Seawater -- --
- No treatment
- With treatment – please specify level of treatment
(iv) Sent to third-parties
- No treatment
- With treatment – please specify level of treatment 618,299 480,852
(v) Others -- --
- No treatment
- With treatment – please specify level of treatment
Total water discharged (in kilolitres) 618,299 480,852

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

2. Please provide details of total Scope 3 emissions & its intensity, in the following format:

FY24 FY23
Parameter Unit (Current (Previous
Financial Year) Financial Year)
Total Scope 3 emissions Metric tonnes of CO2 equivalent 87,212 73,322
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3,
if available)
Total Scope 3 emissions per rupee of turnover 0.0000018 0.00000121
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No

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3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant
direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities. Nil

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or
reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of
such initiatives, as per the following format:

Sr. Outcome of
Initiative undertaken
No. the initiative
1 During the year 42,594 tons of steam purchased from waste heat recovery boiler which saved natural resource and energy 117,672 GJ
2 Step towards increasing green energy purchase, generated in-house. and consumed solar power during the year 2023-24 74,426 GJ
3 By installing Temperature controller for process Cooling Tower fans saved energy 6,007 GJ
4 Power Saving by Installing Variable-frequency drive (VFD) at various equipment’s across the organisation 216 GJ
5 By installing movement sensors across the facilities saved energy 131 GJ
6 Fresh water saved by utilising MGF Back wash water to greenery development in and around the plant premises 284,801 KL
7 By using waste steam from the adjacent industry saved water around 42,599 KL
8 Installed an electrolytic water treatment system for cooling tower 28,780 KL
9 Installation of flow restrictors in water lines to washrooms 12,781 KL

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link.

 es, a procedure EHS 041 Business Continuity Plan is in place. As per the procedure each function identifies the risks which
Y
will disrupt the business and their control measures. Functional Head leads this activity and engage the experienced
person from the function to carry out this. Against each risks, response strategy and recovery plan are be prepared. Each
function carry out the testing of business continuity plan once in a year and record the observations. All the recorded
points are discussed in Management Review Committee. Each unit has prepared the disaster management plan in the
form of On-site emergency management plan (OSEP).

OSEP is designed based on quantitative risk assessment and HARA (Hazard Analysis and Risk Assessment). It covers all
the scenarios such as explosion, fire, toxic gas release etc. OSEP organogram is prepared to execute if required. Roles
and responsibilities are assigned to personnel. Adequate resources are maintained in the unit. Periodical mock drills are
conducted to assess the gaps.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.

No significant adverse impact to the environment, arising from the value chain.

We ensure sustainability within the supply chain: The quality of our products is of utmost importance and suppliers
are only on boarded after a series of stringent checks to warrant that they are aligned with the expectations of the
company. We onboard our suppliers after taking into consideration the required quality, EHS, and sustainability criteria.
Our critical tier 1 suppliers are further assessed based on vendor audits. During the year, around 67 vendors have been
evaluated on sustainability criteria.

We are committed to engaging with our suppliers to help them improve the social and environmental impact of the
materials and services they offer. The supplier code of conduct (CoC) and sustainable supply chain questionnaire helps
us assess and align our suppliers with core values as they sign up to foster a culture of honesty, accountability, and
integrity. The CoC also helps us in integrating sustainability parameters into our supply chain. The CoC covers aspects
such as labour rights, anti-bribery and corruption, health and safety, environment, ethics, data privacy, confidentiality,
and information protection.

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts. Nil

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PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner
that is responsible and transparent
Essential Indicators
1. a) Number of affiliations with trade and industry chambers/associations.

b) List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the entity is
a member of/ affiliated to.

Sr. Reach of trade and industry chambers/

Name of the trade and industry chambers/associations
No. associations (State/National)
1 Confederation of Indian Industry National
2 Pharmaceuticals Export Promotion Council of India National
3 The Federation of TG and AP Chambers of Commerce & Industry (FTAPCCI) State
4 Bulk Drugs Manufacturers Association State
5 JNPC Manufacturers Association State
6 The Associated Chambers of Commerce & Industry of India National
7 Indo American Chamber of Commerce, Hyderabad State
8 Indian Drug Manufacturers Association National
9 Federation of Indian Chambers of Commerce and Industry National

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based on
adverse orders from regulatory authorities.

Name of authority Brief of the case Corrective action taken

NA NA NA

Leadership Indicators
1. Details of public policy positions advocated by the entity: NIL

Frequency of review by
Whether information
Sr. Method resorted for such Board (Annually/Half Yearly/
Public Policy Advocated available in public domain Web link if available
No. advocacy Quarterly, others- please
(Yes/No)
specify)
NIL NIL NIL NIL NIL

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial
year. NIL

Whether conducted by
Results communicated in
Name and brief details SIA independent external
Date of notification public domain Relevant Web link
of project Notification No. agency (Yes /
(Yes / No)
No)
NA NA NA NA NA NA

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in
the following format: NIL

Sr. Name of Project for No. of Project Affected % of PAFs covered Amounts paid to PAFs
State District
No. which R&R is ongoing Families (PAFs) by R&R in the FY(In `)
NA NA NA NA NA NA

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Business Responsibility & Sustainability Reporting

3. Describe the mechanisms to receive and redress grievances of the community.

Consent of the community is obtained in major or the activities taken up by company. In case of any grievances,

company representatives from each plant are accessible to community. And also through Mail or written communication
and once been addressed, communicate back on the same channel of communication.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY24 FY23
(Current Financial Year) (Previous Financial Year)
Directly sourced from MSMEs/ small producers 5% 6%
Directly from within India 70% 58%

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a
permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost.

FY24 FY23
Location
(Current Financial Year) (Previous Financial Year)
Rural 77% 77%
Semi-urban 16% 16%
Urban NIL NIL
Metropolitan 7% 7%

(Place to be categorised as per RBI Classification System - rural/ semi-urban/ urban/ metropolitan)

Note: Numbers mentioned above are specific to India locations geography.

Classification is based on the RBI Guidelines and Census 2011

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference:
Question 1 of Essential Indicators above): Not applicable

Details of negative social impact identified Corrective action taken

NA NA

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by
government bodies: NIL

Sr.
State Aspirational District Amount spent (In `)
No.
NA NA NA

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalised/
vulnerable groups? (Yes/No) NO

(b) From which marginalised/vulnerable groups do you procure?

(c) What percentage of total procurement (by value) does it constitute?

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial
year), based on traditional knowledge: NIL

Sr. Intellectual Property based on

Owned/ Acquired (Yes/No) Benefit shared (Yes / No) Basis of calculating benefit share
No. traditional knowledge
NA NA NA NA

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage
of traditional knowledge is involved. NIL

Name of authority Brief of the Case Corrective action taken

NA NA NA

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6. Details of beneficiaries of CSR Projects:

No. of persons % of beneficiaries

Sr.
CSR Project benefitted from from vulnerable and
No.
CSR Projects marginalised groups

(i) Promoting health care, eradicating hunger & Water Plant

Pure Little Hearts Foundation 38 100%
Hrudaya Foundation 22 100%
Anna Prasadam for Eradicate hunger by Touch Stone Charities Group of people
Water Plant Group of people
Contribution for construction of community Kitchen Group of people
Total
(ii) Promoting Education
Financial Support Super 60 Coaching programme 60 100%
School Building at Moguluru 200 100%
Support for ZP High School Kothur 450 100%
Renovation of IGIAT Boys Hostel 700 100%
Toilet Block at Andhra University Group of people
School Teacher Salary 141
Stipend for Gitam University Students 40 100%
Total
(iii) Promoting gender equality
Renovation of APSWR (G) Hostel 500 100%
Financail support for Sewing Mechines under women empowerment programme 100 100%
Total
(iv) Ensuring environmental sustainability
Construction of Public Toilets & Parks Group of people
Garden Adopton at Tirumala Group of people
Utkarsh Global Foundation for Environment awareness program Group of people
Construction of Public Toilets & Parks Group of people
Total
(vii) Promoting Sports
Financial Support for Ground renovation Group of people
Financial Support for Golf Player 1
Financial Support for Tennis Player Player 1
(x) Rural Development projects
Fogging Mechine at Dibbapalem Grama Panchayat Group of people
Garbage Vehicle to Pudimadaka Gram Panchayat Group of people
Construction of Rythu Market at Munagapaka Group of people
Rural Development projects Group of people
Financial Support for District Fire Ofiice Group of people
Laurus Skill Development Center Group of people

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Business Responsibility & Sustainability Reporting

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

Consumer complaints will be received by mail and reply to them after due investigations.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about: NIL

Particulars As a percentage to total turnover

Environmental and social parameters relevant to the product We comply with the applicable and relevant laws and regulations of
Safe and responsible usage the countries we operate in with respect to disclosure of information
on environmental and social parameters relevant to the products
Recycling and/or safe disposal

3. Number of consumer complaints in respect of the following: NIL

FY24 (Current Financial Year) FY23 (Previous Financial Year)
Pending Remarks Received during Pending Remarks
Received during
resolution resolution
the year the year
at end of year at end of year
Data privacy NIL NIL NA NIL NIL NA
Advertising NIL NIL NA NIL NIL NA
Cyber-security NIL NIL NA NIL NIL NA
Delivery of essential services NIL NIL NA NIL NIL NA
Restrictive Trade Practices NIL NIL NA NIL NIL NA
Unfair Trade Practices NIL NIL NA NIL NIL NA
Other NIL NIL NA NIL NIL NA

4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall

Voluntary recalls NIL NIL
Forced recalls NIL NIL

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-
link of the policy.

Yes

https://www.lauruslabs.com/Investors/PDF/Policies/LaurusLabsLimitedPrivacy-policy.pdf

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services;
cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory
authorities on safety of products / services.

N/A

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7. Provide the following information relating to data breaches: NIL

a) Number of instances of data breaches - NIL

b) Percentage of data breaches involving personally identifiable information of customers - NIL

c) Impact, if any, of the data breaches - NIL

Leadership Indicators
1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).
https://www.lauruslabs.com/

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

Proper labelling based on the regulatory requirements. – Yes

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services. NIL

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/ No/ Not
Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the
major products/services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No) No

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Independent Auditors’ Report

To The Members of Basis for Opinion

Laurus Labs Limited We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (“SAs”) specified
Report on the Audit of the Standalone Financial
under section 143(10) of the Act. Our responsibilities under those
Statements
Standards are further described in the Auditor’s Responsibility for
Opinion the Audit of the Standalone Financial Statements section of our
We have audited the accompanying standalone financial report. We are independent of the Company in accordance with
statements of Laurus Labs Limited (“the Company”), which the Code of Ethics issued by the Institute of Chartered Accountants
comprise the Balance Sheet as at March 31, 2024, the Statement of India (“ICAI”) together with the ethical requirements that are
of Profit and Loss (including Other Comprehensive Income), relevant to our audit of the standalone financial statements under
the Statement of Cash Flows and the Statement of Changes in the provisions of the Act and the Rules made thereunder, and we
Equity for the year ended on that date, and notes to the financial have fulfilled our other ethical responsibilities in accordance with
statements, including a summary of material accounting policies these requirements and the ICAI’s Code of Ethics. We believe that
and other explanatory information. the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to
financial statements.
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, Key Audit Matters
2013 (“the Act”) in the manner so required and give a true and
Key audit matters are those matters that, in our professional
fair view in conformity with the Indian Accounting Standards
judgement, were of most significance in our audit of the
prescribed under section 133 of the Act, (“Ind AS”) and other
standalone financial statements of the current period. These
accounting principles generally accepted in India, of the state of
matters were addressed in the context of our audit of the
affairs of the Company as at March 31, 2024, and its profit, total
standalone financial statements as a whole, and in forming our
comprehensive income, its cash flows and the changes in equity
opinion thereon, and we do not provide a separate opinion on
for the year ended on that date.
these matters. We have determined the matters described below
to be the key audit matters to be communicated in our report.

Sr.
Key Audit Matter Auditor’s Response
No.
1 Revenue Recognition – Refer Note 17 of standalone Principal audit procedures performed included the following:
financial statements We obtained an understanding of the revenue recognition process
The Company recognises revenue from products based on and tested the Company’s controls around the timely and accurate
the terms and conditions of transactions which varies with recording of sales transactions.
different customers. We have obtained an understanding of a sample of customer
For sale transactions in a certain period of time around the contracts.
Balance Sheet date, it is essential to ensure that the control of We tested the access and change management controls of the
goods have transferred to the customers. relevant information technology system in which shipments are
As revenue recognition is subject to management’s judgement recorded.
on whether the control of the goods have been transferred, we Our test of revenue samples focused on sales recorded immediately
consider cut-off of revenue as a key audit matter. before the year-end, obtaining evidence to support the appropriate
timing of revenue recognition, based on terms and conditions set
out in sales contracts and delivery documents.

Information Other than the Financial Statements and and Sustainability Report is expected to be made available to
Auditors’ Report Thereon us after the date of this auditor’s report.
• The Company’s Board of Directors is responsible for the other • Our opinion on the standalone financial statements does not
information. The other information comprises the information cover the other information and will not express any form of
included in the Management Discussion and Analysis, assurance conclusion thereon.
Board’s report including annexures to Board’s report, Report • In connection with our audit of the standalone financial
on Corporate Governance and Business Responsibility and statements, our responsibility is to read the other information
Sustainability Report, but does not include the consolidated identified above when it becomes available and, in doing
financial statements, standalone financial statements and so, consider whether the other information is materially
our auditor’s report thereon. The Management Discussion and inconsistent with the standalone financial statements or our
Analysis, Board’s report including annexures to Board’s report, knowledge obtained during the course of our audit or otherwise
Report on Corporate Governance and Business Responsibility appears to be materially misstated.

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• When we read the Management Discussion and Analysis, As part of an audit in accordance with SAs, we exercise professional
Board’s report including annexures to Board’s report, Report judgement and maintain professional skepticism throughout the
on Corporate Governance and Business Responsibility and audit. We also:
Sustainability Report, if we conclude that there is a material
misstatement therein, we are required to communicate the • Identify and assess the risks of material misstatement of the
matter to those charged with governance as required under SA standalone financial statements, whether due to fraud or error,
720 ‘The Auditor’s responsibilities Relating to Other Information’. design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
Responsibilities of Management and Those Charged to provide a basis for our opinion. The risk of not detecting a
with Governance for the Standalone Financial material misstatement resulting from fraud is higher than for
Statements one resulting from error, as fraud may involve collusion, forgery,
The Company’s Board of Directors is responsible for the matters intentional omissions, misrepresentations, or the override of
stated in section 134(5) of the Act with respect to the preparation internal control.
of these standalone financial statements that give a true • Obtain an understanding of internal financial controls relevant
and fair view of the financial position, financial performance to the audit in order to design audit procedures that are
including other comprehensive income, cash flows and changes appropriate in the circumstances. Under section 143(3)(i) of
in equity of the Company in accordance with the accounting the Act, we are also responsible for expressing our opinion on
principles generally accepted in India, including Ind AS specified whether the Company has adequate internal financial controls
under section 133 of the Act. This responsibility also includes with reference to standalone financial statements in place and
maintenance of adequate accounting records in accordance the operating effectiveness of such controls.
with the provisions of the Act for safeguarding the assets of the
• Evaluate the appropriateness of accounting policies used
Company and for preventing and detecting frauds and other
and the reasonableness of accounting estimates and related
irregularities; selection and application of appropriate accounting
disclosures made by the management.
policies; making judgements and estimates that are reasonable
and prudent; and design, implementation and maintenance • Conclude on the appropriateness of management’s use of the
of adequate internal financial controls, that were operating going concern basis of accounting and, based on the audit
effectively for ensuring the accuracy and completeness of the evidence obtained, whether a material uncertainty exists
accounting records, relevant to the preparation and presentation related to events or conditions that may cast significant doubt
of the financial statements that give a true and fair view and are on the Company’s ability to continue as a going concern. If we
free from material misstatement, whether due to fraud or error. conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures
In preparing the standalone financial statements, management in the standalone financial statements or, if such disclosures
and Board of Directors is responsible for assessing the Company’s are inadequate, to modify our opinion. Our conclusions are
ability to continue as a going concern, disclosing, as applicable, based on the audit evidence obtained up to the date of our
matters related to going concern and using the going concern auditor’s report. However, future events or conditions may
basis of accounting unless the Board of Directors either intend to cause the Company to cease to continue as a going concern.
liquidate the Company or to cease operations, or has no realistic
• Evaluate the overall presentation, structure and content of the
alternative but to do so.
standalone financial statements, including the disclosures, and
The Company’s Board of Directors are also responsible for whether the standalone financial statements represent the
overseeing the Company’s financial reporting process. underlying transactions and events in a manner that achieves
fair presentation.
Auditor’s Responsibility for the Audit of the Standalone
Financial Statements Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
Our objectives are to obtain reasonable assurance about whether
it probable that the economic decisions of a reasonably
the standalone financial statements as a whole are free from
knowledgeable user of the standalone financial statements
material misstatement, whether due to fraud or error, and to
may be influenced. We consider quantitative materiality and
issue an auditor’s report that includes our opinion. Reasonable
qualitative factors in (i) planning the scope of our audit work
assurance is a high level of assurance, but is not a guarantee that
and in evaluating the results of our work; and (ii) to evaluate
an audit conducted in accordance with SAs will always detect a
the effect of any identified misstatements in the standalone
material misstatement when it exists. Misstatements can arise
financial statements.
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence We communicate with those charged with governance regarding,
the economic decisions of users taken on the basis of these among other matters, the planned scope and timing of the audit
standalone financial statements. and significant audit findings, including any significant deficiencies
in internal financial controls that we identify during our audit.

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

We also provide those charged with governance with a statement g) With respect to the other matters to be included in the
that we have complied with relevant ethical requirements Auditors’ Report in accordance with the requirements of
regarding independence, and to communicate with them section 197(16) of the Act, as amended, in our opinion
all relationships and other matters that may reasonably be and to the best of our information and according
thought to bear on our independence, and where applicable, to the explanations given to us, the remuneration
related safeguards. paid by the Company to its directors during the year
is in accordance with the provisions of section 197
From the matters communicated with those charged with
of the Act.
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements h) With respect to the other matters to be included in
of the current period and are therefore the key audit matters. the Auditors’ Report in accordance with Rule 11 of
We describe these matters in our auditor’s report unless law or the Companies (Audit and Auditors) Rules, 2014,
regulation precludes public disclosure about the matter or when, as amended in our opinion and to the best of our
in extremely rare circumstances, we determine that a matter information and according to the explanations given
should not be communicated in our report because the adverse to us:
consequences of doing so would reasonably be expected to
i. The Company has disclosed the impact of
outweigh the public interest benefits of such communication.
pending litigations on its financial position in its
Report on Other Legal and Regulatory Requirements standalone financial statements - Refer Note
39(C) to the standalone financial statements;
1. As required by Section 143(3) of the Act, based on our audit,
we report that: ii. The Company did not have any long-term
contracts including derivative contracts for which
a) We have sought and obtained all the information and
there were any material foreseeable losses.
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit. iii. There were no amounts which were required to
be transferred to the Investor Education and
b) In our opinion, proper books of account as required by
Protection Fund by the Company.
law have been kept by the Company so far as it appears
from our examination of those books of account. iv. (a) The Management has represented that, to the
best of its knowledge and belief, as disclosed
c) The Balance Sheet, the Statement of Profit and Loss
in the note 41(vi) to the Standalone financial
including Other Comprehensive Income, the Statement
statements, no funds have been advanced or
of Cash Flows and Statement of Changes in Equity
loaned or invested (either from borrowed funds
dealt with by this Report are in agreement with the
or share premium or any other sources or kind
books of account.
of funds) by the Company to or in any other
d) In our opinion, the aforesaid standalone financial person(s) or entity(ies), including foreign entities
statements comply with the Ind AS specified under (“Intermediaries”), with the understanding,
Section 133 of the Act. whether recorded in writing or otherwise, that
the Intermediary shall, directly or indirectly lend
e) On the basis of the written representations received
or invest in other persons or entities identified in
from the directors as on March 31, 2024 taken on
any manner whatsoever by or on behalf of the
record by the Board of Directors, none of the directors
Company (“Ultimate Beneficiaries”) or provide
is disqualified as on March 31, 2024 from being
any guarantee, security or the like on behalf of
appointed as a director in terms of Section 164(2) of
the Ultimate Beneficiaries.
the Act.
(b) The Management has represented, that, to the
f) With respect to the adequacy of the internal financial
best of its knowledge and belief, as disclosed
controls with reference to standalone financial
in the note 41(vii) to the Standalone financial
statements of the Company and the operating
statements, no funds have been received by
effectiveness of such controls, refer to our separate
the Company from any person(s) or entity(ies),
Report in “Annexure A”. Our report expresses an
including foreign entities (“Funding Parties”), with
unmodified opinion on the adequacy and operating
the understanding, whether recorded in writing
effectiveness of the Company’s internal financial
or otherwise, that the Company shall, directly
controls with reference to standalone financial
or indirectly, lend or invest in other persons or
statements on the operating effectiveness of the
entities identified in any manner whatsoever
Company’s internal financial controls with reference
by or on behalf of the Funding Party (“Ultimate
to standalone financial statements for the reasons
Beneficiaries”) or provide any guarantee, security
stated therein.
or the like on behalf of the Ultimate Beneficiaries.

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(c) Based on the audit procedures performed throughout the year for all relevant transactions
that have been considered reasonable and recorded in the software. Further, during the course of
appropriate in the circumstances, nothing has our audit we did not come across any instance of the
come to our notice that has caused us to believe audit trail feature being tampered with.
that the representations under sub-clause (i) and
As proviso to Rule 3(1) of the Companies (Accounts)
(ii) of Rule 11(e), as provided under (a) and (b)
Rules, 2014 is applicable from April 1, 2023, reporting
above, contain any material misstatement.
under Rule 11 (g) of the Companies (Audit and Auditors)
v. (a) The first interim dividend declared and paid by Rules, 2014 on preservation of audit trail as per the
the company during the year and until the date of statutory requirements for record retention is not
this report is in accordance with section 123 of the applicable for the financial year ended March 31, 2024.
Act, as applicable.
2. As required by the Companies (Auditors’ Report) Order, 2020
(b) The second interim dividend declared by the (“the Order”) issued by the Central Government in terms
Company during the year is in accordance with of Section 143(11) of the Act, we give in “Annexure B” a
section 123 of the Companies Act 2013 to the statement on the matters specified in paragraphs 3 and 4 of
extent it applies to declaration of dividend. the Order.
However, the said dividend was not due for
payment on the date of this audit report. For Deloitte Haskins & Sells LLP
(c) The interim dividend paid by the Company during Chartered Accountants
the year in respect of the same declared for the (Firm’s Registration No. 117366W/W-100018)
previous year is in accordance with section 123 of
the Companies Act 2013 to the extent it applies
to payment of dividend. C Manish Muralidhar
Partner
vi. Based on our examination, which included test checks,
Place: Hyderabad (Membership No. 213649)
the Company has used an accounting software for
maintaining its books of account for the financial year Date: April 25, 2024 (UDIN: 24213649BKCJEN6949)
ended March 31, 2024 which has a feature of recording
audit trail (edit log) facility and the same has operated

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Annexure “A” to the Independent Auditors’ Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls with reference reference to standalone financial statements included obtaining
to standalone financial statements under Clause (i) of an understanding of internal financial controls with reference to
Sub-section 3 of Section 143 of the Companies Act, standalone financial statements, assessing the risk that a material
2013 (“the Act”) weakness exists, and testing and evaluating the design and
We have audited the internal financial controls with reference operating effectiveness of internal control based on the assessed
to standalone financial statements of Laurus Labs Limited (“the risk. The procedures selected depend on the auditor’s judgement,
Company”) as at March 31, 2024 in conjunction with our audit of including the assessment of the risks of material misstatement of
the standalone financial statements of the Company for the year the financial statements, whether due to fraud or error.
ended on that date. We believe that the audit evidence we have obtained, is sufficient
and appropriate to provide a basis for our audit opinion on the
Management’s Responsibility for Internal Financial
Company’s internal financial controls with reference to standalone
Controls
financial statements.
The Company’s management is responsible for establishing
and maintaining internal financial controls with reference to Meaning of Internal Financial Controls with reference
standalone financial statements based on the internal control to standalone financial statements
over financial reporting criteria established by the Company A company’s internal financial control with reference to standalone
considering the essential components of internal control stated financial statements is a process designed to provide reasonable
in the Guidance Note on Audit of Internal Financial Controls assurance regarding the reliability of financial reporting and
Over Financial Reporting issued by the Institute of Chartered the preparation of standalone financial statements for external
Accountants of India. These responsibilities include the design, purposes in accordance with generally accepted accounting
implementation and maintenance of adequate internal financial principles. A company’s internal financial control with reference
controls that were operating effectively for ensuring the orderly to standalone financial statements includes those policies and
and efficient conduct of its business, including adherence to the procedures that (1) pertain to the maintenance of records that, in
company’s policies, the safeguarding of its assets, the prevention reasonable detail, accurately and fairly reflect the transactions and
and detection of frauds and errors, the accuracy and completeness dispositions of the assets of the company; (2) provide reasonable
of the accounting records, and the timely preparation of reliable assurance that transactions are recorded as necessary to permit
financial information, as required under the Companies Act, 2013. preparation of standalone financial statements in accordance
with generally accepted accounting principles, and that receipts
Auditor’s Responsibility
and expenditures of the company are being made only in
Our responsibility is to express an opinion on the Company’s accordance with authorisations of management and directors of
internal financial controls with reference to standalone financial the company; and (3) provide reasonable assurance regarding
statements of the Company based on our audit. We conducted our prevention or timely detection of unauthorised acquisition, use,
audit in accordance with the Guidance Note on Audit of Internal or disposition of the company’s assets that could have a material
Financial Controls Over Financial Reporting (the “Guidance Note”) effect on the financial statements.
issued by the Institute of Chartered Accountants of India and
the Standards on Auditing prescribed under Section 143(10) of Inherent Limitations of Internal Financial Controls
the Companies Act, 2013, to the extent applicable to an audit of with reference to standalone financial statements
internal financial controls with reference to standalone financial Because of the inherent limitations of internal financial controls
statements. Those Standards and the Guidance Note require that with reference to standalone financial statements, including
we comply with ethical requirements and plan and perform the the possibility of collusion or improper management override of
audit to obtain reasonable assurance about whether adequate controls, material misstatements due to error or fraud may occur
internal financial controls with reference to standalone financial and not be detected. Also, projections of any evaluation of the
statements was established and maintained and if such controls internal financial controls with reference to standalone financial
operated effectively in all material respects. statements to future periods are subject to the risk that the
Our audit involves performing procedures to obtain audit evidence internal financial control with reference to standalone financial
about the adequacy of the internal financial controls with statements may become inadequate because of changes in
reference to standalone financial statements and their operating conditions, or that the degree of compliance with the policies or
effectiveness. Our audit of internal financial controls with procedures may deteriorate.

170 Chemistry for Better Living

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Opinion
In our opinion, to the best of our information and according to
the explanations given to us the Company has, in all material
respects, an adequate internal financial controls with reference
to standalone financial statements and such internal financial
controls with reference to standalone financial statements were
operating effectively as at March 31, 2024, based on the criteria
for internal financial control with reference to standalone financial
statements established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

C Manish Muralidhar
Place: Hyderabad Partner
Date: April 25, 2024 (Membership No. 213649)

Annual Report 2023-24 171

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure “B” to the Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

In terms of the information and explanations sought by us and (e) No proceedings have been initiated during the year or
given by the Company and the books of account and records are pending against the Company as at March 31, 2024
examined by us in the normal course of audit and to the best of for holding any benami property under the Benami
our knowledge and belief, we state that: Transactions (Prohibition) Act, 1988 (as amended in
2016) and rules made thereunder.
(i) (a) A. The Company has maintained proper records
showing full particulars, including quantitative (ii) (a) The inventories (except for goods-in-transit, which
details and situation of property, plant and have been received subsequent to the year-end), were
equipment, capital work-in-progress and relevant physically verified during the year by the Management
details of right-of-use assets. at reasonable intervals. In our opinion and based
on the information and explanations given to us, the
B. The Company has maintained proper records
coverage and procedure of such verification by the
showing full particulars of intangible assets.
Management is appropriate having regard to the size
(b) The Company has a program of verification of property, of the Company and the nature of its operations. No
plant and equipment, capital work-in-progress and discrepancies of 10% or more in the aggregate for
right-of-use assets so to cover all the items once in each class of inventories were noticed on such physical
every three years which, in our opinion, is reasonable verification of inventories when compared with books
having regard to the size of the Company and the of account.
nature of its assets. Pursuant to the program, certain
(b) According to the information and explanations given
property, plant and equipment were due for physical
to us, the Company has been sanctioned working
verification during the year and were physically verified
capital limits in excess of `5 crores, in aggregate, at
by the Management during the year. According to the
points of time during the year, from banks on the
information and explanations given to us, no material
basis of security of current assets. In our opinion and
discrepancies were noticed on such verification.
according to the information and explanations given
(c) Based on our examination of the registered sale deed to us, the quarterly returns or statements comprising
provided to us, we report that, the title deeds of all the stock statements, book debt statements, statements
immovable properties (other than properties where the on ageing analysis of the debtors and other stipulated
Company is the lessee and the lease agreements are financial information filed by the Company with such
duly executed in favour of the Company) disclosed in banks are in agreement with the unaudited books of
the financial statements included in property, plant account of the Company of the respective quarters and
and equipment and capital work-in progress are held no material discrepancies have been observed.
in the name of the Company as at the balance sheet
(iii) The Company has made investments in, provided guarantee
date. Immovable properties of land whose title deeds
and granted unsecured loans to companies during the year,
have been pledged as security for term loans and
in respect of which:
working capital limits are held in the name of the
Company based on the confirmations directly received (a) The Company has made investments in, provided /
by us from lenders. stood guarantee and granted unsecured loans during
the year and details of which are given below:
(d) The Company has not revalued any of its property,
plant and equipment (including right-of-use assets)
and intangible assets during the year.

(` in crores)
Investments Loans Guarantees
A. Aggregate amount granted / provided during the year:
– Subsidiaries 170.73 283.00 155.00
– Associates 80.02 - -
– Others - 1.36 -
B. Balance outstanding as at balance sheet date in respect of above cases:
– Subsidiaries 431.27 232.50 434.22
– Associates 126.02 - -
– Others - 0.60 -

172 Chemistry for Better Living

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The Company has not provided any advances in the (v) The Company has not accepted any deposit or amounts
nature of loans or security to any other entity during which are deemed to be deposits. Hence, reporting under
the year. clause (v) of the Order is not applicable.

(b) The investments made, guarantees provided and the (vi) The maintenance of cost records has been specified by the
terms and conditions of the grant of all the above- Central Government under section 148(1) of the Companies
mentioned loans during the year are in our opinion, Act, 2013. We have broadly reviewed the books of account
prima facie, not prejudicial to the Company’s interest. maintained by the Company pursuant to the Companies
(Cost Records and Audit) Rules, 2014, as amended, prescribed
(c) In respect of loans granted by the Company, the
by the Central Government for maintenance of cost records
schedule of repayment of principal and payment of
under Section 148(1) of the Companies Act, 2013, and are
interest has been stipulated and the repayments of
of the opinion that, prima facie, the prescribed cost records
principal amounts and receipts of interest are regular
have been made and maintained by the Company. We
as per stipulation.
have, however, not made a detailed examination of the cost
(d) According to information and explanations given to records with a view to determine whether they are accurate
us and based on the audit procedures performed, in or complete.
respect of loans granted by the Company, there is
(vii) (a) Undisputed statutory dues, including Goods and
no overdue amount remaining outstanding as at the
Service tax, Provident Fund, Employees’ State
balance sheet date.
Insurance, Income-tax, Sales Tax, duty of Custom,
(e) No loan granted by the Company which has fallen due duty of Excise, Value Added Tax, cess and other
during the year, has been renewed or extended or fresh material statutory dues applicable to the Company
loans granted to settle the overdues of existing loans have generally been regularly deposited by it with the
given to the same parties. appropriate authorities in all cases during the year.

(f) According to information and explanations given to There were no undisputed amounts payable in respect
us and based on the audit procedures performed, of Goods and Service tax, Provident Fund, Employees’
the Company has not granted any loans or advances State Insurance, Income-tax, Sales Tax, duty of
in the nature of loans either repayable on demand or Custom, duty of Excise, Value Added Tax, cess and other
without specifying any terms or period of repayment material statutory dues in arrears as at March 31, 2024
during the year. Hence, reporting under clause (iii)(f) is for a period of more than six months from the date they
not applicable. became payable.

(iv) The Company has complied with the provisions of Sections (b) Details of statutory dues referred to in sub-clause (a)
185 and 186 of the Companies Act, 2013 in respect of loans above which have not been deposited as on March 31,
granted, investments made, guarantees, and securities 2024 on account of disputes are given below:
provided, as applicable.

Amount Period for which the

Name of Statute Nature of Dues Forum where dispute is pending
(in ` crores) amount relates to
AP VAT Act, 2005 Sales Tax 0.00^ 2014-2016 Sales Tax and VAT Appellate Tribunal, Andhra Pradesh
Finance Act, 1994 Service Tax 21.01* 2010-2015
17.66** 2015-2017 Customs Excise and Service Tax Appellate Tribunal
Customs Act, 1962 Customs Duty 17.53# 2012-2013

^ Net of ` 0.36 crores paid under protest

* Net of ` 0.37 crores paid under protest
**Net of ` 0.61 crores paid under protest
# Net of ` 2.00 crores paid under protest

Annual Report 2023-24 173

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

(viii) There were no transactions relating to previously unrecorded (b) To the best of our knowledge, no report under sub-
income that were surrendered or disclosed as income in the section (12) of section 143 of the Companies Act has
tax assessments under the Income Tax Act, 1961 (43 of been filed in Form ADT-4 as prescribed under rule 13 of
1961) during the year. Companies (Audit and Auditors) Rules, 2014 with the
Central Government, during the year and upto the date
(ix) (a) In our opinion, the Company has not defaulted in
of this report.
the repayment of loans or other borrowings or in the
payment of interest thereon to any lender during (c) As represented to us by the management, there were
the year. no whistle blower complaints received by the company
during the year.
(b) The Company has not been declared wilful defaulter by
any bank or financial institution or government or any (xii) The Company is not a Nidhi Company and hence reporting
government authority. under clause (xii) of the Order is not applicable.

(c) To the best of our knowledge and belief, in our opinion, (xiii) In our opinion, the Company is in compliance with Section
term loans availed by the Company were, applied 177 and 188 of the Companies Act, where applicable, for
by the Company during the year for the purposes for all transactions with the related parties and the details
which the loans were obtained. of related party transactions have been disclosed in the
financial statements etc. as required by the applicable
(d) On an overall examination of the financial statements
accounting standards.
of the Company, funds raised on short-term basis have,
prima facie, not been used during the year for long- (xiv) (a) In our opinion the Company has an adequate internal
term purposes by the Company. audit system commensurate with the size and the
nature of its business.
(e) On an overall examination of the financial statements
of the Company, the Company has not taken any funds (b) We have considered, the internal audit reports issued to
from any entity or person on account of or to meet the the Company during the year and covering the period
obligations of its subsidiaries or associates. upto March 2024.

(f) The Company has not raised loans during the year (xv) In our opinion during the year the Company has not entered
on the pledge of securities held in its subsidiaries or into any non-cash transactions with its directors or persons
associate companies. connected with its directors and hence provisions of section
192 of the Companies Act, 2013 are not applicable to
(x) (a) The Company has not raised moneys by way of initial
the Company.
public offer or further public offer (including debt
instruments) during the year and hence reporting (xvi) (a) The Company is not required to be registered under
under clause (x)(a) of the Order is not applicable. section 45-IA of the Reserve Bank of India Act, 1934.
Hence, reporting under clause (xvi)(a), (b) and (c) of the
(b) During the year the Company has not made any
Order is not applicable.
preferential allotment or private placement of shares
or convertible debentures (fully or partly or optionally) (d) The Group does not have any core investment company
and hence reporting under clause (x)(b) of the Order is as part of the group and accordingly reporting under
not applicable to the Company. clause (xvi)(d) of the Order is not applicable.

(xi) (a) To the best of our knowledge, no fraud by the Company (xvii) T he Company has not incurred cash losses during the
and no material fraud on the Company has been financial year covered by our audit and the immediately
noticed or reported during the year. preceding financial year.

174 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

(xviii) There has been no resignation of the statutory auditors of there are no unspent CSR amount for the year requiring
the Company during the year. a transfer to a Fund specified in Schedule VII to the
Companies Act or special account in compliance with
(xix) O n the basis of the financial ratios, ageing and expected
the provision of sub-section (6) of section 135 of the
dates of realisation of financial assets and payment of
said Act. Accordingly, reporting under clause (xx) of the
financial liabilities, other information accompanying the
Order is not applicable for the year.
financial statements and our knowledge of the Board
of Directors and Management plans and based on our (b) In respect of ongoing projects, the company does
examination of the evidence supporting the assumptions, not have any unspent Corporate Social Responsibility
nothing has come to our attention, which causes us to (CSR) amount as at the end of the previous financial
believe that any material uncertainty exists as on the date year and also at the end of the current financial year.
of the audit report indicating that Company is not capable Hence, reporting under this clause is not applicable for
of meeting its liabilities existing at the date of balance sheet the year.
as and when they fall due within a period of one year from
the balance sheet date. We, however, state that this is not For Deloitte Haskins & Sells LLP
an assurance as to the future viability of the Company. Chartered Accountants
We further state that our reporting is based on the facts (Firm’s Registration No. 117366W/W-100018)
up to the date of the audit report and we neither give any
guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will C Manish Muralidhar
get discharged by the Company as and when they fall due. Place: Hyderabad Partner
(xx) (a) The Company has fully spent the required amount Date: April 25, 2024 (Membership No. 213649)
towards Corporate Social Responsibility (CSR) and

Annual Report 2023-24 175

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Balance Sheet
as at March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Particulars Note March 31, 2024 March 31, 2023

ASSETS
Non-current assets
Property, plant and equipment 3 2,902.77 2,780.98
Right-of-use assets 39A 115.99 90.54
Capital work-in-progress 3 155.51 357.06
Other Intangible assets 4 17.55 12.64
Financial assets
Investments 5A 634.87 384.12
Other financial assets 5C 43.90 46.78
Loans 5B 226.50 64.50
Other non-current assets 7A 53.28 50.08
Total non-current assets 4,150.37 3,786.70
Current assets
Inventories 8 1,697.16 1,569.27
Financial assets
Trade receivables 9 1,640.50 1,487.42
Cash and cash equivalents 10A 42.63 1.42
Other balances with banks 10B 0.29 0.28
Loans 5B 6.60 6.59
Other financial assets 5C 8.82 16.31
Other current assets 7B 121.11 89.97
Total current assets 3,517.11 3,171.26
Total assets 7,667.48 6,957.96
EQUITY AND LIABILITIES
Equity
Equity share capital 11 107.79 107.73
Other equity 4,099.26 3,949.09
Total equity 4,207.05 4,056.82
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 13A 490.53 565.49
Lease liabilities 39A 53.10 28.06
Provisions 15A 88.26 78.54
Deferred tax liability (net) 6 66.31 76.74
Other non-current liabilities 14A 26.44 45.99
Total non-current liabilities 724.64 794.82
Current liabilities
Financial liabilities
Borrowings 13B 1,558.53 1,115.89
Trade payables
-total outstanding dues of micro enterprises and small enterprises 13C 22.78 28.15
-total outstanding dues of creditors other than micro enterprises and small enterprises 13C 974.00 638.21
Lease liabilities 39A 7.66 4.82
Other financial liabilities 13D 39.33 144.04
Other current liabilities 14B 75.48 111.74
Provisions 15B 24.00 19.42
Income tax liabilities (net) 16 34.01 44.05
Total current liabilities 2,735.79 2,106.32
Total - equity and liabilities 7,667.48 6,957.96
Summary of material accounting policies 2.2
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

176 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Statement of Profit and Loss

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars Note
March 31, 2024 March 31, 2023
I. INCOME
Revenue from operations 17 4,812.39 5,773.45
Other income 18 27.05 4.75
Total income (I) 4,839.44 5,778.20
II. EXPENSES
Cost of materials consumed 19 2,396.95 2,515.94
Purchase of traded goods 110.92 155.71
Changes in inventories of finished goods, work-in-progress and stock-in-trade 20 (102.48) 40.82
Employee benefits expenses 21 552.21 496.57
Other expenses 22 1,104.91 1,082.65
Total expenses (II) 4,062.51 4,291.69
III. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) (I-II) 776.93 1,486.51
Depreciation and amortisation 3,4 & 39A 345.01 300.58
Finance income 23A (20.37) (11.20)
Finance costs 23B 150.82 145.70
IV. Profit before tax 301.47 1,051.43
V. Tax expense 27
Current tax 87.94 270.78
Deferred tax (10.17) 20.27
Income tax expense 77.77 291.05
VI. Profit for the year (IV-V) 223.70 760.38
Other comprehensive income (OCI) 24
Items that will not be reclassified subsequently to profit or loss:
Remeasurement gains/(losses) on defined benefit plans (1.02) 1.06
Tax on remeasurement of defined benefit plans 0.26 (0.27)
Total other comprehensive income/(loss) for the year, net of tax (0.76) 0.79
Total comprehensive income for the year, net of tax 222.94 761.17
Earnings per equity share `2/- each fully paid (March 31, 2023: `2/- each fully paid) 25
Computed on the basis of total profit for the year
Basic (`) 4.15 14.14
Diluted (`) 4.15 14.09
Summary of material accounting policies 2.2

The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

Annual Report 2023-24 177

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Statement of Changes in Equity

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

a) Equity share capitall

Equity shares of `2/- each, fully paid up No. `
As at April 01, 2022 537,359,335 107.47
Issued during the year - ESOP 1,291,590 0.26
As at March 31, 2023 538,650,925 107.73
Issued during the year - ESOP 314,933 0.06
As at March 31, 2024 538,965,858 107.79

b) Other equity
Other
Reserves and surplus comprehensive
income
Particulars Re-measurement Total
Share based
Capital Securities Retained gains or losses on
payments
reserve Premium Earnings employee defined
reserve
benefit plans
As at April 01, 2022 1.79 701.32 9.14 2,577.18 (8.69) 3,280.74
Profit for the year - - - 760.38 - 760.38
Expense arising from equity-settled share-based payment - - 7.48 - - 7.48
transactions
Transferred from stock options outstanding - 11.74 (4.57) - - 7.17
Dividend on equity shares - - - (107.47) - (107.47)
Remeasurement on net defined benefit liability, net of tax - - - - 0.79 0.79
As at March 31, 2023 1.79 713.06 12.05 3,230.09 (7.90) 3,949.09
Profit for the year - - - 223.70 - 223.70
Expense arising from equity-settled share-based payment - - 10.92 - - 10.92
transactions
Transferred from stock options outstanding - 4.02 (1.53) - - 2.49
Dividend on equity shares - - - (86.18) - (86.18)
Remeasurement on net defined benefit liability, net of tax - - - - (0.76) (0.76)
As at March 31, 2024 1.79 717.08 21.44 3,367.61 (8.66) 4,099.26

The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

178 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Statement of Cash Flows

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Profit before tax 301.47 1,051.43
Cash Flows from operating activities
Adjustments for:
Depreciation and amortisation 345.01 300.58
Loss on sale of Property, plant and equipment (net) 0.80 0.19
Finance income (20.37) (11.20)
Interest expense 143.81 126.84
Share based payment expense 10.92 7.48
Net (gain)/loss on foreign exchange fluctuations (unrealised) (6.77) 18.58
Provisions no longer required written back - (1.04)
Allowance for bad and doubtful advance and debts 4.92 1.08
Operating profit before working capital changes 779.79 1,493.94
Movement in working capital:
(Increase)/Decrease in inventories (127.87) 119.43
Increase in trade receivables (155.78) (219.23)
(Increase)/ Decrease in financial and non-financial assets (26.66) 12.55
Increase/(Decrease) in trade payables 328.90 (180.98)
Decrease in financial, non-financial liabilities and provisions (41.86) (76.03)
Cash generated from operations 756.52 1,149.68
Income tax paid (97.98) (268.13)
Net cash flows from operating activities (A) 658.54 881.55
Cash flows used in investing activities
Purchase of property, plant and equipment, including intangible assets, capital work in progress and (367.32) (741.84)
capital advances
Proceeds from sale of property, plant and equipment 1.55 1.23
Movement in other bank balances - (0.05)
Investment in associates (80.02) (22.30)
Investment in subsidiaries (170.73) (0.10)
Loan given to subsidiaries (283.00) (48.20)
Loan repaid by subsidiaries 121.00 65.92
Interest received 21.78 10.07
Net cash flows used in investing activities (B) (756.74) (735.27)
Net cash flows from financing activities
Proceeds from exercise of employee stock options 2.56 7.44
Repayment of long - term borrowings (179.33) (226.18)
Proceeds from long - term borrowings 177.37 200.00
Proceeds from Short - term borrowings (net) 375.60 69.60
Payment of lease liabilities (7.41) (5.79)
Dividend paid (86.18) (107.47)
Interest paid (143.20) (122.79)
Net cash flows from/(used in) financing activities (C) 139.41 (185.19)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 41.21 (38.91)
Cash and cash equivalents at the beginning of the year 1.42 40.33
Cash and cash equivalents at the year end 42.63 1.42
Components of cash and cash equivalents:
Cash on hand 0.06 0.07
Balances with banks
On current accounts 42.57 1.35
Total cash and cash equivalents 42.63 1.42

The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

Annual Report 2023-24 179

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

1. Corporate information A liability is current when:

Laurus Labs Limited (the “Company”) offers a broad and
• It is expected to be settled in normal operating cycle
integrated portfolio of Active Pharma Ingredients (API)
including intermediates, Generic Finished dosage forms • It is held primarily for the purpose of trading
(FDF) and Contract Research services to cater to the needs • It is due to be settled within twelve months after the
of the global pharmaceutical industry. The Company is a reporting period, or
public company domiciled in India and is incorporated under • There is no unconditional right to defer the settlement
the provisions of the Companies Act applicable in India. of the liability for at least twelve months after the
Its shares are listed on two recognised stock exchanges in reporting period
India. The registered office of the company is located at
Laurus Enclave, Plot Office 01, E. Bonangi Village, Parawada The Company classifies all other liabilities as non-current.
Mandal, Anakapalli District, Andhra Pradesh – 531021. Deferred tax assets and liabilities are classified as non-
The Company is equipped with an Active Pharma Ingredients current assets and liabilities.
(API) manufacturing facilities, FDF drug manufacturing The operating cycle is the time between the acquisition of
facility situated in Parawada and Achutapuram at assets for processing and their realisation in cash and cash
Visakhapatnam and a Research and Development Centre in equivalents. The Company has identified twelve months as
IKP Knowledge Park at Hyderabad. its operating cycle.
These financial statements are authorised by the Board of
(b) Foreign currencies
Directors for issue in accordance with their resolution dated
April 25, 2024. The financial statements are presented in Indian rupees,
which is the functional currency of the Company and the
2. Material accounting policies currency of the primary economic environment in which the
2.1 Basis of preparation Company operates.

(a) The financial statements of the Company have been Transactions and balances
prepared in accordance with Indian Accounting
Transactions in foreign currencies are initially recorded by
Standards (‘Ind AS’), under the historical cost basis
the Company at its functional currency spot rates at the
except for certain financial instruments which are
date the transaction first qualifies for recognition. Monetary
measured at fair values at the end of each reporting
assets and liabilities denominated in foreign currencies
period as explained in the accounting policies below,
are translated at the functional currency spot rates of
the provisions of the Companies Act, 2013 (‘the Act’)
exchange at the reporting date. Non-monetary items that
(to the extent notified) and guidelines issued by
are measured in terms of historical cost in a foreign currency
Securities and Exchange Board of India (SEBI). The
are translated using the exchange rates at the dates of the
Ind AS are prescribed under Section 133 of the Act
initial transactions.
read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules Exchange differences arising on settlement or translation
issued there after and presentation requirements of of monetary items are recognised in Statement of Profit
Division II of Schedule III to the Companies Act, 2013. and Loss.

2.2 Summary of material accounting policies (c) Fair value measurement

(a) Current versus non-current classification The Company measures financial instruments, such as,
The Company presents assets and liabilities in the balance derivatives at fair value at each balance sheet date.
sheet based on current/ non-current classification. An asset Fair value is the price that would be received to sell an
is treated as current when it is: asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
• Expected to be realised or intended to be sold or
fair value measurement is based on the presumption that
consumed in normal operating cycle
the transaction to sell the asset or transfer the liability takes
• Held primarily for the purpose of trading place either:
• Expected to be realised within twelve months after the • In the principal market for the asset or liability, or
reporting period, or • In the absence of a principal market, in the most
• Cash or cash equivalent unless restricted from being advantageous market for the asset or liability
exchanged or used to settle a liability for at least twelve
The principal or the most advantageous market must be
months after the reporting period
accessible by the Company.
All other assets are classified as non-current.

180 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

The fair value of an asset or a liability is measured using to the Company and the revenue can be reliably measured,
the assumptions that market participants would use regardless of when the payment is being made. When a
when pricing the asset or liability, assuming that market performance obligation is satisfied, the revenue is measured
participants act in their economic best interest. at the transaction price which is consideration received or
receivable, net of returns and allowances, trade discounts
A fair value measurement of a non-financial asset takes into
and volume rebates after taking into account contractually
account a market participant’s ability to generate economic
defined terms of payment and excluding taxes or duties
benefits by using the asset in its highest and best use or by
collected on behalf of the government. The Company
selling it to another market participant that would use the
derives revenues primarily from manufacture and sale of
asset in its highest and best use.
Active Pharma Ingredients (API) including intermediates,
The Company uses valuation techniques that are Generic Finished dosage forms (FDF) and Contract Research
appropriate in the circumstances and for which sufficient services (together called as “Pharmaceuticals”).
data are available to measure fair value, maximising the
The following is summary of material accounting policies
use of relevant observable inputs and minimising the use of
relating to revenue recognition. Further, refer note no. 17 for
unobservable inputs.
disaggregate revenues from contracts with customers.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised Sale of products
within the fair value hierarchy, described as follows, based The Company recognises revenue for supply of goods
on the lowest level input that is significant to the fair value to customers against orders received. The majority of
measurement as a whole: contracts that company enters into relate to sales orders
containing single performance obligations for the delivery
• Level 1: Quoted (unadjusted) market prices in active of pharmaceutical products as per Ind AS 115. Product
markets for identical assets or liabilities revenue is recognised when control of the goods is passed
• Level 2: Valuation techniques for which the lowest level to the customer. The point at which control passes is
input that is significant to the fair value measurement is determined based on the terms and conditions by each
directly or indirectly observable customer arrangement. Revenue is not recognised until it
• Level 3: Valuation techniques for which the lowest level is highly probable that a significant reversal in the amount
input that is significant to the fair value measurement of cumulative revenue recognised will not occur. Amount
is unobservable representing the profit share component is recognised as
revenue only to the extent that it is highly probable that a
For assets and liabilities that are recognised in the financial significant reversal will not occur.
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the The Company also recognises revenue where goods are
hierarchy by re-assessing categorisation (based on the lowest ready as per customer request and pending dispatch at the
level input that is significant to the fair value measurement instance of the customer. In such cases, the products are
as a whole) at the end of each reporting period. separately identified as belonging to the customer and the
Company does not hold the right to redirect the product
The Company’s chief financial officer and the financial to another customer. On satisfaction of all performance
controller of the Company determines the appropriate obligations, invoice is raised on the customer in accordance
valuation techniques and inputs for fair value measurements. with customer request at regular payment terms.
In estimating the fair value of an asset or a liability, the
Company uses market-observable data to the extent it Sale of services
is available. Where level 1 inputs are not available, the Revenue from services rendered, which primarily relate
Company engages third party qualified valuers to perform to contract research, is recognised in the statement of
the valuation. Any change in the fair value of each asset and profit and loss as the underlying services are performed.
liability is also compared with relevant external sources to Upfront non-refundable payments received under these
determine whether the change is reasonable. arrangements are deferred and recognised as revenue over
For the purpose of fair value disclosures, the Company has the expected period over which the related services are
determined classes of assets and liabilities on the basis of expected to be performed.
the nature, characteristics and risks of the asset or liability
Contract Liabilities
and the level of the fair value hierarchy as explained above.
A contract liability is the obligation to transfer goods or
(d) Revenue recognition services to a customer for which the Company has received
Revenue from contracts with customers is recognised to the consideration (or the amount is due) from the customer. If a
extent that it is probable that the economic benefits will flow customer pays consideration before the Company transfers
goods or services to the customer, a contract liability is

Annual Report 2023-24 181

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

recognised when the payment is made, or the payment is Deferred tax

due (whichever is earlier). Contract liabilities are recognised Deferred tax is provided using the liability method on
as revenue when the Company performs under the contract. temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
Interest income
purposes at the reporting date.
For all debt financial instruments measured either at
amortised cost or at fair value through other comprehensive Deferred tax liabilities are recognised for all taxable
income, interest income is recorded using the effective temporary differences.
interest rate (EIR). EIR is the rate that exactly discounts Deferred tax assets are recognised for all deductible
the estimated future cash payments or receipts over temporary differences, the carry forward of unused tax
the expected life of the financial instrument or a shorter credits and any unused tax losses. Deferred tax assets are
period, where appropriate, to the gross carrying amount of recognised to the extent that it is probable that taxable profit
the financial asset or to the amortised cost of a financial will be available against which the deductible temporary
liability. Interest income is included in finance income in the differences, and the carry forward of unused tax credits and
Statement of Profit and Loss. unused tax losses can be utilised.

Dividends The carrying amount of deferred tax assets is reviewed at

Revenue is recognised when the Company’s right to receive each reporting date and reduced to the extent that it is no
the payment is established, which is generally when longer probable that sufficient taxable profit will be available
shareholders approve the dividend. to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each
(e) Government Grants reporting date and are recognised to the extent that it has
Government grants are recognised where there is reasonable become probable that future taxable profits will allow the
assurance that the grant will be received and all attached deferred tax asset to be recovered.
conditions will be complied with. When the grant relates to Deferred tax assets and liabilities are measured at the tax
an expense item, it is recognised as income on a systematic rates that are expected to apply in the year when the asset is
basis over the periods that the related costs, for which it is realised or the liability is settled, based on tax rates and tax
intended to compensate, are expensed. When the grant laws that have been enacted or substantively enacted at the
relates to an asset, it is recognised as income in equal reporting date.
amounts over the expected useful life of the related asset.
Deferred tax relating to items recognised outside profit
Export incentives are recognised as income when the right to or loss is recognised outside profit or loss (either in other
receive credit as per the terms of the scheme is established in comprehensive income or in equity). Deferred tax items are
respect of the exports made and where there is no significant recognised in correlation to the underlying transaction either
uncertainty regarding the ultimate collection of the relevant in OCI or directly in equity.
export proceeds.
Deferred tax assets and deferred tax liabilities are offset if a
(f) Taxes legally enforceable right exists to set off current tax assets
Current income tax against current tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority.
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to Minimum alternate tax (MAT) paid in a year is charged to
the taxation authorities. The tax rates and tax laws used the statement of profit and loss as current tax. The Company
to compute the amount are those that are enacted or recognises MAT credit available as an asset only to the extent
substantively enacted, at the reporting date in the countries that there is convincing evidence that the Company will
where the Company operates and generates taxable income. pay normal income tax during the specified period, i.e., the
Current income tax relating to items recognised outside period for which MAT credit is allowed to be carried forward.
profit or loss is recognised outside profit or loss (either in The Company reviews the “MAT credit entitlement” asset at
other comprehensive income (“OCI”) or in equity). Current each reporting date and writes down the asset to the extent
tax items are recognised in correlation to the underlying the Company does not have convincing evidence that it will
transaction either in OCI or directly in equity. pay normal tax during the specified period.

Management periodically evaluates positions taken in the (g) Property, plant and equipment
tax returns with respect to situations in which applicable
Under the previous GAAP (Indian GAAP), property, plant
tax regulations are subject to interpretation and establishes
and equipment and capital wok in progress were carried
provision where appropriate.

182 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

in the balance sheet at cost of acquisition. The Company of the asset (calculated as the difference between the net
has elected to regard those values of property, plant and disposal proceeds and the carrying amount of the asset) is
equipment as deemed cost at the date of the acquisition included in the statement of profit and loss when the asset
since there is no change in the functional currency as at 1 is derecognised.
April 2015 (date of transition to Ind AS) on the date of
The residual values, useful lives and methods of depreciation
transition to Ind AS. The Company has also determined
of property, plant and equipment are reviewed at each
that cost of acquisition or construction at deemed cost as at
financial year end and adjusted prospectively/retrospectively,
1 April 2015.
as appropriate.
Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment (h) Intangible assets
losses, if any. Such cost includes the cost of replacing part Computer Software
of the plant and equipment and borrowing costs for long- Costs relating to software, which is acquired, are capitalised
term construction projects if the recognition criteria are met. and amortised on a straight-line basis over their estimated
When significant parts of plant and equipment are required useful lives of five years.
to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise, Gains or losses arising from derecognition of an intangible
when a major inspection is performed, its cost is recognised asset are measured as the difference between the net
in the carrying amount of the plant and equipment as a disposal proceeds and the carrying amount of the asset and
replacement if the recognition criteria are satisfied. All are recognised in the statement of profit or loss when the
other expenses on existing property, plant and equipment, asset is derecognised.
including day-to-day repair and maintenance expenditure Amortisation method, useful lives and residual values are
and cost of replacing parts, are charged to the statement reviewed at the end of each financial year and adjusted
of profit and loss for the period during which such expenses if appropriate.
are incurred.
(i) Leases
Capital work in progress is stated at cost, net of accumulated
impairment loss, if any. The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
Subsequent expenditure related to an item of property, of a lease requires significant judgement. A contract is,
plant and equipment is added to its book value only if it or contains, a lease if the contract conveys the right to
increases the future benefits from the existing asset beyond control the use of an identified asset for a period of time in
its previously assessed standard of performance or extends exchange for consideration. The determination of whether
its estimated useful life. Freehold land is not depreciated. an arrangement is (or contains) a lease is based on the
Depreciation is calculated on a straight-line basis over the substance of the arrangement at the inception of the lease.
estimated useful lives of the assets as follows: The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset
Factory buildings : 30 years or assets and the arrangement conveys a right to use the
Other buildings : 60 years asset or assets, even if that right is not explicitly specified in
Plant and equipment : 5 to 20 years an arrangement.
Furniture and fixtures : 10 years
Vehicles : 4 to 5 years Company as a lessee
Computers : 3 to 6 years The Company assesses whether a contract contains a
lease, at inception of a contract. A contract is, or contains,
The Company, based on technical assessment and
a lease if the contract conveys the right to control the use
management estimate, depreciates certain items of plant
of an identified asset for a period of time in exchange for
and equipment and vehicles over estimated useful lives
consideration. To assess whether a contract conveys the
which are different from the useful life prescribed in Schedule
right to control the use of an identified asset, the Company
II to the Companies Act, 2013. The management believes
assesses whether: (i) the contract involves the use of an
that these estimated useful lives are realistic and reflect fair
identified asset (ii) the Company has substantially all of the
approximation of the period over which the assets are likely
economic benefits from use of the asset through the period
to be used.
of the lease and (iii) the Company has the right to direct the
An item of property, plant and equipment and any significant use of the asset. The Company uses significant judgement
part initially recognised is derecognised upon disposal or in assessing the lease term (including anticipated renewals)
when no future economic benefits are expected from its and the applicable discount rate. The determination of
use or disposal. Any gain or loss arising on derecognition whether an arrangement is (or contains) a lease is based on

Annual Report 2023-24 183

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

the substance of the arrangement at the inception of the (j) Borrowing costs
lease. The arrangement is, or contains, a lease if fulfilment of Borrowing costs directly attributable to the acquisition,
the arrangement is dependent on the use of a specific asset construction or production of an asset that necessarily takes
or assets and the arrangement conveys a right to use the a substantial period of time to get ready for its intended use
asset or assets, even if that right is not explicitly specified in or sale are capitalised as part of the cost of the asset. All other
an arrangement. borrowing costs are expensed in the period in which they
At the date of commencement of the lease, the Company occur. Borrowing costs consist of interest and other costs that
recognises a right-of-use asset (“ROU”) and a corresponding an entity incurs in connection with the borrowing of funds.
lease liability for all lease arrangements in which it is a lessee, Borrowing cost also includes exchange differences to the
except for leases with a term of twelve months or less (short- extent regarded as an adjustment to the borrowing costs.
term leases) and low value leases. For these short-term
(k) Inventories
and low value leases, the Company recognises the lease
payments as an operating expense on a straight-line basis Inventories are valued at the lower of cost and net realisable
over the term of the lease. value. Cost is determined on weighted average basis.

The right-of-use assets are initially recognised at cost, which Costs incurred in bringing each product to its present location
comprises the initial amount of the lease liability adjusted for and condition are accounted for as follows:
any lease payments made at or prior to the commencement
• Raw materials: Materials and other items held for use
date of the lease plus any initial direct costs less any lease
in the production of inventories are not written down
incentives. They are subsequently measured at cost less
below cost if the finished products in which they will be
accumulated depreciation and impairment losses.
incorporated are expected to be sold at or above cost.
Right-of-use assets are depreciated from the commencement Cost includes cost of purchase and other costs incurred
date on a straight-line basis over the lease term and useful in bringing the inventories to their present location
life of the underlying asset. The lease liability is initially and condition.
measured at amortised cost at the present value of the • Finished goods and work in progress: cost includes
future lease payments. The lease payments are discounted cost of direct materials and labour and a proportion
using the interest rate implicit in the lease or, if not readily of manufacturing overheads based on the normal
determinable, using the incremental borrowing rates in operating capacity.
the country of domicile of these leases. Lease liabilities are
• Traded goods: cost includes cost of purchase and other
remeasured with a corresponding adjustment to the related
costs incurred in bringing the inventories to their present
right of use asset if the Company changes its assessment if
location and condition.
whether it will exercise an extension or a termination option.
• Stores, spares and packing materials are valued at the
Lease liability and ROU asset have been separately lower of cost and net realisable value.
presented in the Balance Sheet and lease payments have
been classified as financing cash flows. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
Company as a lessor completion and the estimated costs necessary to make
Leases in which the Company does not transfer substantially the sale.
all the risks and rewards of ownership of an asset are
(l) Impairment of non-financial assets
classified as operating leases. Rental income from operating
lease is recognised on a straight-line basis over the term of The Company assesses, at each reporting date, whether
the relevant lease. Initial direct costs incurred in negotiating there is an indication that an asset may be impaired. If
and arranging an operating lease are added to the carrying any indication exists, or when annual impairment testing
amount of the leased asset and recognised over the lease for an asset is required, the Company estimates the asset’s
term on the same basis as rental income. recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s (CGU) fair
Leases are classified as finance leases when substantially value less costs of disposal and its value in use. Recoverable
all of the risks and rewards of ownership transfer from the amount is determined for an individual asset, unless the
Company to the lessee. Amounts due from lessees under asset does not generate cash inflows that are largely
finance leases are recorded as receivables at the Company’s independent of those from other assets or groups of assets.
net investment in the leases. Finance lease income is When the carrying amount of an asset or CGU exceeds its
allocated to accounting periods so as to reflect a constant recoverable amount, the asset is considered impaired and is
periodic rate of return on the net investment outstanding in written down to its recoverable amount.
respect of the lease.

184 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

In assessing value in use, the estimated future cash flows are (n) Retirement and other employee benefits
discounted to their present value using a pre-tax discount Retirement benefit in the form of provident fund is a defined
rate that reflects current market assessments of the time contribution scheme. The Company has no obligation, other
value of money and the risks specific to the asset. In than the contribution payable to the provident fund. The
determining fair value less costs of disposal, recent market Company recognises contribution payable to the provident
transactions are taken into account. If no such transactions fund scheme as an expense, when an employee renders the
can be identified, an appropriate valuation model is used. related service. If the contribution payable to the scheme for
These calculations are corroborated by valuation multiples, service received before the balance sheet date exceeds the
quoted share prices for publicly traded companies or other contribution already paid, the deficit payable to the scheme
available fair value indicators. is recognised as a liability after deducting the contribution
The Company bases its impairment calculation on detailed already paid. If the contribution already paid exceeds the
budgets and forecast calculations, which are prepared contribution due for services received before the balance
separately for each of the Company’s CGUs to which the sheet date, then excess is recognised as an asset to the
individual assets are allocated. extent that the pre-payment will lead to, for example, a
reduction in future payment or a cash refund.
Impairment losses, including impairment on inventories,
are recognised in the statement of profit and loss. An The Company operates a defined benefit gratuity plan
assessment is made at each reporting date to determine in India, which requires contributions to be made to a
whether there is an indication that previously recognised separately administered fund by a third party.
impairment losses no longer exist or have decreased. If The cost of providing benefits under the defined benefit plan
such indication exists, the Company estimates the asset’s is determined based on projected unit credit method.
or CGU’s recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change Remeasurements, comprising of actuarial gains and losses,
in the assumptions used to determine the asset’s recoverable the effect of the asset ceiling, excluding amounts included in
amount since the last impairment loss was recognised. The net interest on the net defined benefit liability and the return
reversal is limited so that the carrying amount of the asset on plan assets (excluding amounts included in net interest on
does not exceed its recoverable amount, nor exceed the the net defined benefit liability), are recognised immediately
carrying amount that would have been determined, net of in the balance sheet with a corresponding debit or credit to
depreciation, had no impairment loss been recognised for retained earnings through OCI in the period in which they
the asset in prior periods/ years. Such reversal is recognised in occur. Remeasurements are not reclassified to Statement of
the Statement of Profit and Loss unless the asset is carried at Profit or Loss in subsequent periods.
a revalued amount, in which case, the reversal is treated as a Past service costs are recognised in profit or loss on the
revaluation increase. earlier of:

(m) Provisions • The date of the plan amendment or curtailment, and

Provisions are recognised when the Company has a present • The date that the Company recognises related
obligation (legal or constructive) as a result of a past event, restructuring costs
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation Net interest is calculated by applying the discount rate to
and a reliable estimate can be made of the amount of the the net defined benefit liability or asset. The Company
obligation. When the Company expects some or all of a recognises the following changes in the net defined benefit
provision to be reimbursed, for example, under an insurance obligation as an expense in the statement of profit and loss:
contract, the reimbursement is recognised as a separate
• Service costs comprising current service costs, past-
asset, but only when the reimbursement is virtually certain.
service costs, gains and losses on curtailments and non-
The expense relating to a provision is presented in the
routine settlements; and
Statement of Profit and Loss net of any reimbursement.
• Net interest expense or income
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that The Company treats accumulated leaves which are to be
reflects, when appropriate, the risks specific to the liability. settled after 12 months as a long-term employee benefit and
When discounting is used, the increase in the provision due accumulated leaves which are to be settled in the next 12
to the passage of time is recognised as a finance cost. months as a short-term employee benefit for measurement

Annual Report 2023-24 185

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

purposes. Such accumulated leaves are provided for measured at transaction price. Purchases or sales of financial
based on an actuarial valuation using the projected unit assets that require delivery of assets within a time frame
credit method at the year-end. Actuarial gains/losses are established by regulation or convention in the market place
immediately taken to the statement of profit and loss and (regular way trades) are recognised on the trade date, i.e.,
are not deferred. the date that the Company commits to purchase or sell
the asset.
(o) Share-based payments
Employees of the Company receive remuneration in the Subsequent measurement
form of share-based payments, whereby employees render For purposes of subsequent measurement, a ‘debt
services as consideration for equity instruments. instrument’ is measured at the amortised cost if both the
following conditions are met:
Equity-settled transactions
(a) The asset is held within a business model whose
The cost of equity-settled transactions is determined by the
objective is to hold assets for collecting contractual
fair value at the date when the grant is made using Black
cash flows, and
Scholes valuation model.
(b) Contractual terms of the asset give rise on specified
That cost is recognised, together with a corresponding
dates to cash flows that are solely payments
increase in share-based payment reserves in equity, over the
of principal and interest (SPPI) on the principal
period in which the performance and/or service conditions
amount outstanding.
are fulfilled in employee benefits expense. The cumulative
expense recognised for equity-settled transactions at each After initial measurement, such financial assets are
reporting date until the vesting date reflects the extent to subsequently measured at amortised cost using the effective
which the vesting period has expired and the Company’s interest rate (EIR) method. Amortised cost is calculated by
best estimate of the number of equity instruments that will taking into account any discount or premium on acquisition
ultimately vest. The statement of profit and loss expense or and fees or costs that are an integral part of the EIR. The
credit for a period represents the movement in cumulative EIR amortisation is included in finance income in the profit
expense recognised as at the beginning and end of that or loss. This category generally applies to trade and other
period and is recognised in employee benefits expense. receivables. For more information on receivables, refer to
Note 9.
Service and non-market performance conditions are not
taken into account when determining the grant date fair Derecognition
value of awards, but the likelihood of the conditions being
A financial asset (or, where applicable, a part of a financial
met is assessed as part of the Company’s best estimate of
asset or part of a group of similar financial assets) is primarily
the number of equity instruments that will ultimately vest.
derecognised (i.e. removed from the Company’s balance
Market performance conditions are reflected within the
sheet) when:
grant date fair value.
a) the rights to receive cash flows from the asset have
The dilutive effect of outstanding options is reflected as
expired, or
additional share dilution in the computation of diluted
earnings per share. b) the Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
(p) Financial instruments pay the received cash flows in full without material
A financial instrument is any contract that gives rise to a delay to a third party under a ‘pass-through’
financial asset of one entity and a financial liability or equity arrangement; and either
instrument of another entity.
i. the Company has transferred substantially all the
Financial assets risks and rewards of the asset, or

Initial recognition and measurement ii. the Company has neither transferred nor retained
All financial assets are recognised initially at fair value plus, in substantially all the risks and rewards of the asset,
the case of financial assets not recorded at fair value through but has transferred control of the asset.
profit or loss, transaction costs that are attributable to the When the Company has transferred its rights to receive
acquisition of the financial asset. However, trade receivables cash flows from an asset or has entered into a pass-through
that do not contain a siginficant financing component are arrangement, it evaluates if and to what extent it has

186 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

retained the risks and rewards of ownership. When it has all the cash flows that the entity expects to receive (i.e., all
neither transferred nor retained substantially all of the risks cash shortfalls), discounted at the original effective interest
and rewards of the asset, nor transferred control of the asset, rate. When estimating the cash flows, an entity is required
the Company continues to recognise the transferred asset to consider:
to the extent of the Company’s continuing involvement.
In that case, the Company also recognises an associated • All contractual terms of the financial instrument
liability. The transferred asset and the associated liability are (including prepayment, extension and similar options)
measured on a basis that reflects the rights and obligations over the expected life of the financial instrument.
that the Company has retained. However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably, then
Continuing involvement that takes the form of a guarantee the entity is required to use the remaining contractual
over the transferred asset is measured at the lower of the term of the financial instrument
original carrying amount of the asset and the maximum
• Cash flows from the sale of collateral held or other credit
amount of consideration that the Company could be
enhancements that are integral to the contractual terms
required to repay.
As a practical expedient, the Company uses a provision
Impairment of financial assets matrix to determine impairment loss allowance on portfolio
In accordance with Ind AS 109, the Company applies of its trade receivables. The provision matrix is based on
expected credit loss (ECL) model for measurement and its historically observed default rates over the expected
recognition of impairment loss on the following financial life of the trade receivables and is adjusted for forward-
assets and credit risk exposure: looking estimates. At every reporting date, the historical
observed default rates are updated and changes in the
a) Financial assets that are debt instruments, and are
forward-looking estimates are analysed. On that basis, the
measured at amortised cost e.g., loans, deposits and
Company estimates the following provision matrix at the
bank balances.
reporting date:
b) Trade receivables that result from transactions that are
% of provision on outstanding
within the scope of Ind AS 115. Particulars
receivables

The Company follows ‘simplified approach’ for recognition > 1 year and < 2 years 25%
of impairment loss. The application of simplified approach > 2 years and < 3 years 50%
does not require the Company to track changes in credit > 3 years 100%
risk. Rather, it recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right from its initial Financial liabilities
recognition. For recognition of impairment loss on other Initial recognition and measurement
financial assets and risk exposure, the Company determines Financial liabilities are classified, at initial recognition,
that whether there has been a significant increase in the as financial liabilities at fair value through profit or loss
credit risk since initial recognition. (“FVTPL”), loans and borrowings, payables, or as derivatives
If credit risk has not increased significantly, 12-month ECL designated as hedging instruments in an effective hedge,
is used to provide for impairment loss. However, if credit as appropriate.
risk has increased significantly, lifetime ECL is used. If, in a All financial liabilities are recognised initially at fair value
subsequent period, credit quality of the instrument improves and, in the case of loans and borrowings and payables, net of
such that there is no longer a significant increase in credit risk directly attributable transaction costs.
since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL. The Company’s financial liabilities include trade and
other payables, loans and borrowings including bank
Lifetime ECL are the expected credit losses resulting from all overdrafts, financial guarantee contracts and derivative
possible default events over the expected life of a financial financial instruments.
instrument. The 12-month ECL is a portion of the lifetime ECL
which results from default events that are possible within 12 Subsequent measurement
months after the reporting date. The measurement of financial liabilities depends on their
ECL is the difference between all contractual cash flows that classification, as described below:
are due to the Company in accordance with the contract and

Annual Report 2023-24 187

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Financial liabilities at fair value through profit or loss Company’s operations. Such changes are evident to external
Financial liabilities at fair value through profit or loss include parties. A change in the business model occurs when the
financial liabilities designated upon initial recognition as at Company either begins or ceases to perform an activity that
fair value through profit or loss. is significant to its operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively
Financial liabilities designated upon initial recognition at from the reclassification date which is the first day of the
fair value through profit or loss are designated as such at immediately next reporting period following the change
the initial date of recognition, and only if the criteria in Ind in business model. The Company does not restate any
AS 109 are satisfied. For liabilities designated as FVTPL, fair previously recognised gains, losses (including impairment
value gains/ losses attributable to changes in own credit risk gains or losses) or interest.
are recognised in OCI. These gains/ loss are not subsequently
transferred to Statement of Profit or Loss. However, the Offsetting of financial instruments
Company may transfer the cumulative gain or loss within Financial assets and financial liabilities are offset and the net
equity. All other changes in fair value of such liability are amount is reported in the Balance Sheet if there is a currently
recognised in the Statement of Profit or Loss. The Company enforceable legal right to offset the recognised amounts and
has not designated any financial liability as at fair value there is an intention to settle on a net basis, to realise the
through profit and loss. assets and settle the liabilities simultaneously.

Loans and borrowings (q) Investments in subsidiaries

After initial recognition, interest-bearing loans and In respect of equity investments, the entity prepares separate
borrowings are subsequently measured at amortised cost financial statements and account for its investments in
using the EIR method. Gains and losses are recognised in subsidiaries at cost, net of impairment if any.
profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process. (r) Derivative instruments and hedge accounting
Amortised cost is calculated by taking into account any The Company uses derivative financial instruments, such as
discount or premium on acquisition and fees or costs that are forward currency contracts to hedge its foreign currency risks.
an integral part of the EIR. The EIR amortisation is included Such derivative financial instruments are initially recognised
as finance costs in the Statement of Profit and Loss. at fair value on the date on which a derivative contract is
entered into and are subsequently re-measured at fair value.
Derecognition Derivatives are carried as financial assets when the fair value
A financial liability is derecognised when the obligation is positive and as financial liabilities when the fair value is
under the liability is discharged or cancelled or expires. When negative. Any gains or losses arising from changes in the fair
an existing financial liability is replaced by another from the value of derivatives are taken directly to profit or loss.
same lender on substantially different terms, or the terms Changes in the fair value of derivative contracts that
of an existing liability are substantially modified, such an economically hedge monetary assets and liabilities in foreign
exchange or modification is treated as the derecognition of currencies, and for which no hedge accounting is applied, are
the original liability and the recognition of a new liability. The recognised in the statement of profit and loss. The changes
difference in the respective carrying amounts is recognised in fair value of such derivative contracts, as well as the
in the Statement of Profit or Loss. foreign exchange gains and losses relating to the monetary
items, are recognised in the Statement of Profit and Loss.
Reclassification of financial assets
The Company determines classification of financial assets (s) Cash and cash equivalents
and liabilities on initial recognition. After initial recognition, Cash and cash equivalent in the balance sheet comprise
no reclassification is made for financial assets which are cash at banks and on hand and short-term deposits with an
equity instruments and financial liabilities. For financial original maturity of three months or less, which are subject to
assets which are debt instruments, a reclassification is made an insignificant risk of changes in value.
only if there is a change in the business model for managing
those assets. Changes to the business model are expected For the purpose of the statement of cash flows, cash and
to be infrequent. The Company’s senior management cash equivalents consist of cash and short-term deposits,
determines change in the business model as a result of as defined above, net of outstanding bank overdrafts as
external or internal changes which are significant to the they are considered an integral part of the Company’s
cash management.

188 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(t) Research and Development Accordingly, the Company has elected to present EBITDA as
Revenue expenditure on research and development is a separate line item on the face of the Statement of Profit
charged to revenue in the period in which it is incurred. and Loss and does not include depreciation and amortisation
Capital expenditure on research and development is added expense, finance income, finance costs, share of profit/
to property, plant and equipment and depreciated in loss from associate and tax expense in the measurement
accordance with the policies of the Company. of EBITDA.

(u) Measurement of EBITDA (v) New standards and interpretations not yet
adopted
The Company presents EBITDA in the statement of profit
or loss, which is neither specifically required by Ind AS 1 nor Ministry of Corporate Affairs (“MCA”) notifies new standard
defined under Ind AS. Ind AS complaint Schedule III allows or amendments to the existing standards under Companies
companies to present line items, sub-line items and sub- (Indian Accounting Standards) Rules as issued from time
totals shall be presented as an addition or substitution on to time. For the year ended March 31, 2024, MCA has not
the face of the financial statements when such presentation notified any new standards or amendments to the existing
is relevant to an understanding of the company’s financial standards applicable to the Company.
position or performance or to cater to industry/sector-
specific disclosure requirements or when required for
compliance with the amendments to the Companies Act or
under the Indian Accounting Standards.

Annual Report 2023-24 189

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

3. Property, plant and equipment

Freehold Plant and Furniture
Particulars Buildings Computers Vehicles Total
land equipment and fixtures
Gross carrying value at cost
As at April 01, 2022 170.86 829.78 2,025.79 49.19 27.67 21.80 3,125.09
Additions 0.35 286.51 644.64 34.09 12.78 11.97 990.34
Disposals - - (25.47) (0.26) (0.01) (3.60) (29.34)
As at March 31, 2023 171.21 1,116.29 2,644.96 83.02 40.44 30.17 4,086.09
Additions 3.61 90.13 335.08 9.93 9.28 9.79 457.82
Disposals - - (5.16) - - (4.61) (9.77)
As at March 31, 2024 174.82 1,206.42 2,974.88 92.95 49.72 35.35 4,534.14
Depreciation
As at April 01, 2022 - 164.69 826.88 25.60 16.94 8.49 1,042.60
Charge for the year - 41.30 231.85 5.22 4.97 7.09 290.43
Disposals - - (25.01) (0.04) - (2.87) (27.92)
As at March 31, 2023 - 205.99 1,033.72 30.78 21.91 12.71 1,305.11
Charge for the year - 46.43 264.02 9.53 6.06 7.64 333.68
Disposals - (0.05) (3.52) - - (3.85) (7.42)
As at March 31, 2024 - 252.37 1,294.22 40.31 27.97 16.50 1,631.37
Net carrying value
As at March 31, 2023 171.21 910.30 1,611.24 52.24 18.53 17.46 2,780.98
As at March 31, 2024 174.82 954.05 1,680.66 52.64 21.75 18.85 2,902.77

Notes:

(i) Pledge on Property, plant and equipment:

Property, plant and equipment (other than vehicles) with a net carrying amount aggregating `2,883.92 (March 31, 2023: `2,763.52)
are subject to a pari passu first charge on the Company’s term loans. Further, the property, plant and equipment (other than
vehicles) are subject to a pari passu second charge on the Company’s current borrowings. Also, refer note 13A and 13B.

(ii) The title deeds of all immovable properties are held in the name of the Company. The Company has not revalued its property,plant
and equipment.

(iii) Refer note no. 33 for purchase and sale of Property, plant and equipment to related parties.

(iv) Capital work-in-progress (CWIP) ageing schedule:

For the year ended March 31, 2024
Amount in CWIP for a period of
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 138.83 14.15 2.53 - 155.51
Projects temporarily suspended - - - - -

For the year ended March 31, 2023

Amount in CWIP for a period of
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 345.20 11.86 - - 357.06
Projects temporarily suspended - - - - -

190 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(v) For CWIP, whose completion is overdue or has exceeded its cost compared to its original plan the project wise details of when the
project is expected to be completed it given below:

To be completed in
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress - - - - -
Balance as on March 31, 2024 - - - - -
Projects in progress
MB 9 - Unit IV 118.49 - - - 118.49
MB 6 - Unit VI 131.03 - - - 131.03
Balance as on March 31, 2023 249.52 - - - 249.52

4. Other Intangible assets

Computer Total
Particulars
software intangible assets
Gross carrying value at cost
As at April 01, 2022 32.98 32.98
Additions 7.03 7.03
Disposals - -
As at March 31, 2023 40.01 40.01
Additions 9.54 9.54
Disposals - -
As at March 31, 2024 49.55 49.55
Amortisation
As at April 01, 2022 22.43 22.43
Charge for the year 4.94 4.94
Disposals - -
As at March 31, 2023 27.37 27.37
Charge for the year 4.63 4.63
Disposals - -
As at March 31, 2024 32.00 32.00
Net carrying value
As at March 31, 2023 12.64 12.64
As at March 31, 2024 17.55 17.55

5. Financial assets
March 31, 2024 March 31, 2023
A. Investments
Equity instruments of subsidiaries and associates 514.64 343.91
Compulsorily convertible preference shares of associate 116.82 36.80
Others 3.41 3.41
Total 634.87 384.12

Annual Report 2023-24 191

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(Unquoted ,except otherwise stated)

(a) Investment in equity instruments - carried at cost March 31, 2024 March 31, 2023
I. Investments in subsidiaries
- 9,700 Equity Shares of Laurus Generics Inc (March 31, 2023: 9,700) of US$ 100 each fully paid-up 34.16 34.16
-1
 4,203,363 (March 31, 2023:14,203,363) Equity Shares of `10 each fully paid-up of Sriam Labs Private 28.19 28.19
Limited
- 8,500 (March 31, 2023: 8,500) Equity Shares of GBP 100 each fully paid-up in Laurus Holdings Limited 7.79 7.79
-1
 07,600 (March 31, 2023:100,000) Equity Shares of `10 each fully paid-up of Laurus Synthesis Private 99.23 0.10
Limited (Note v)
-2
 ,000 (March 31, 2023: 2,000) Equity Shares of ZAR 1.00 each fully paid-up in Laurus Generics SA (Pty) 0.03 0.03
Limited
-2
 ,35,919 (March 31, 2023: 198,278) Equity Shares of `10 each fully paid-up in Laurus Bio Private 332.04 260.44
Limited (Note i)
-1
 00,000 (March 31, 2023:100,000) Equity Shares of `10 each fully paid-up of Laurus Specialty 0.10 0.10
Chemicals Private Limited (Note iv)
Sub-Total (I) 501.54 330.81
II. Investments in associates
-996 (March 31, 2023: 996) Equity shares of `10 each fully paid-up of Immunoadoptive Cell Therapy 9.20 9.20
Private Limited
-7
 40,000 (March 31, 2023: 740,000) Equity shares of `10 each fully paid-up of Ethan Energy India 3.90 3.90
Private Limited (Note iii)
Sub-Total (II) 13.10 13.10
Total (a) (I+II) 514.64 343.91

(b) Investment in Compulsorily convertible preference shares - carried at cost March 31, 2024 March 31, 2023
Investments in associates
- 3,983 Compulsorily Convertible preference shares of `10 each fully paid Series A of Immunoadoptive Cell 36.80 36.80
Therapy Private Limited (March 31, 2023: 3,983 of `10 each fully paid)
- 2,028 Compulsorily Convertible preference shares of `10 each fully paid Series B of Immunoadoptive Cell 80.02 -
Therapy Private Limited (March 31, 2023: nil) (Note ii)
Total (b) 116.82 36.80
Total (a+b) 631.46 380.71

Notes:
i) During the year ended March 31, 2024, the Company acquired additional 14.54% stake in Laurus Bio Private Limited (LBPL) for a
purchase consideration of `71.60 crores. Consequently, the total shareholding in LBPL has increased to 91.14%. (As on March 31,
2023, the Company holds 76.60%).

ii) During the year ended March 31, 2024, Pursuant to the investment agreement entered into by the Company with Immunoadoptive
Cell Therapy Private Limited (ImmunoAct), the Company made further capital contribution towards tranche 1 of Series B
Compulsorily convertible preference shares (CCPS) amounting to `48.01 crores during the quarter ended September 30, 2023
and `32.01 crores towards tranche 2 of Series B CCPS during the quarter ended March 31,2024 in ImmunoAct. Accordingly,
the Company’s stake in ImmunoAct has increased to 34.89% as on March 31, 2024. (As on March 31, 2023, the Company
holds 27.57%)

iii) During the year ended March 31, 2023, the Company entered into an investment agreement with Ethan Energy India Private
Limited (“Ethan Energy”) to acquire 26% stake, for agreed consideration of `3.90 Crores.

iv) The Company incorporated wholly owned subsidiary, Laurus Specialty Chemicals Private Limited (LSCPL) in India on December 01,
2022. LSCPL has not commenced its operations.

v) During the year ended March 31, 2024, the Company infused further equity into LSPL by subscribing to rights issue offered for
acquiring 7,600 equity shares of `10 each for a consideration of `99.13 crores.

192 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

vi) The Company has complied with number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with
the Companies (Restriction on number of layers) Rules, 2017.

Unquoted investments (measured at fair value through profit and loss) March 31, 2024 March 31, 2023

- 3,405,000 (March 31, 2023: 3,405,000) Equity Shares of `10 each of Atchutapuram Effluent 3.41 3.41
Treatment Ltd.
Total 3.41 3.41

B. Loans
Particulars March 31, 2024 March 31, 2023
Non-current (unsecured, considered good unless otherwise stated)
Other loans
- Loans to related parties* (Refer note no. 33) 226.50 64.50
Total 226.50 64.50
Current (unsecured, considered good unless otherwise stated)
Other loans
- Loans to employees 0.60 0.59
- Loans to related parties* (Refer note no. 33) 6.00 6.00
Total 6.60 6.59

* Percentage to the total loans 99.7% (March 31, 2023: 99.2%)

C. Other financial assets

Particulars March 31, 2024 March 31, 2023
Non-current (unsecured, considered good unless otherwise stated)
Security deposits 31.39 30.27
Export and other incentives receivable (net)* 12.51 16.51
Total 43.90 46.78
Current (unsecured, considered good unless stated otherwise)
Export and other incentives receivable (net)* 8.60 14.73
Insurance claim receivable - 0.60
Derivative foreign currency forward contracts 0.22 0.98
Total 8.82 16.31

* Export and other incentives have been recognised on the following:

a) Incentive in the form of duty credit scrip upon sale of exports under Merchandise Exports from India Scheme under Foreign
Trade Policy of India 2015-20.

b) Existing Foreign Trade Policy 2015-20, has been extended till September 30, 2022 vide notification no.64/2015-2020 dated
31.03.2022 & Public Notice No.53/2015-2020 dated 31.03.2022

c) Sales tax incentive and reimbursement of power cost under the Andhra Pradesh state incentives IIPP 2015-20 scheme.
Incentives are eligible for five years from the date of commencement of production. There are no unfulfilled conditions or
contingencies attached to these incentives.

Annual Report 2023-24 193

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

6. Deferred tax assets/(liability) (Net)

Particulars March 31, 2024 March 31, 2023
Deferred tax liability
Income tax at the applicable rate on the difference between the aggregate book written down value (119.93) (121.80)
and tax written down value of property, plant and equipment
(A) (119.93) (121.80)
Deferred tax asset
Expenses allowable on payment basis 32.95 24.64
Other items giving raise to temporary differences 20.67 20.42
(B) 53.62 45.06
Deferred tax assets/(liability) (Net) (A+B) (66.31) (76.74)

For the year ended March 31, 2024:

Recognised
Recognised/
in other
Particulars Opening balance Utilised during the Closing balance
comprehensive
year
income
Accelerated depreciation for tax purposes (121.80) 1.87 - (119.93)
Expenses allowable on payment basis 24.65 8.30 - 32.95
Other items giving rise to temporary differences 20.41 0.26 20.67
Total (76.74) 10.17 0.26 (66.31)

For the year ended March 31, 2023:

Recognised
Recognised/
in other Closing
Particulars Opening balance Utilised
comprehensive balance
during the year
income
Accelerated depreciation for tax purposes (151.86) 30.07 - (121.80)
Expenses allowable on payment basis 30.00 (5.35) - 24.65
Other items giving rise to temporary differences 18.43 2.25 (0.27) 20.41
Total (a) (103.44) 26.97 (0.27) (76.74)
MAT credit entitlement written off (b) {refer note 27(d)} 33.21 (33.21) - -
Total (a+b) (70.23) (6.24) (0.27) (76.74)

The Company has accounted for deferred tax liabilities (net) of `66.31 (March 31, 2023: `76.74) based on approval of business plan by
board, agreements entered with customers, orders on hand, successful patent filings and a portfolio of drugs.

There are no unrecognised deferred tax assets and liabilities as at March 31, 2024 and March 31, 2023.

7. Other assets
Particulars March 31, 2024 March 31, 2023
A) Non-current (unsecured, considered good unless otherwise stated)
Capital advances 30.88 34.72
Advances recoverable in cash or kind - 0.04
Prepayments 19.06 12.01
Balances with statutory/Government authorities 2.00 2.00
Taxes paid under protest 1.34 1.35
53.28 50.12
Less: Allowance for doubtful advances - (0.04)
Total 53.28 50.08
B) Current (unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind 19.38 21.58
Advances to related parties (Refer note no. 33) 0.82 -
Prepayments 23.73 18.14
Balances with statutory/Government authorities 76.45 48.16
Others 0.73 2.09
Total 121.11 89.97

194 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

8. Inventories
Particulars March 31, 2024 March 31, 2023
(At lower of cost and net realisable value)
Raw materials [including port stock and stock-in-transit `78.61 (March 31, 2023: `83.87)] 479.57 465.30
Work-in-progress 666.05 543.50
Finished goods 481.88 501.95
Stores, spares and packing materials 69.66 58.52
Total 1,697.16 1,569.27

9. Trade receivables
Particulars March 31, 2024 March 31, 2023
Unsecured
Considered good 1,525.33 1,422.59
Receivable from related parties (Refer note no. 33) 115.17 64.83
Credit impaired 5.57 1.32
1,646.07 1,488.74
Less: Allowance for doubtful debts (5.57) (1.32)
Total 1,640.50 1,487.42

a) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a
director or a member.

b) Trade receivables are non-interest bearing and are generally on terms of 30 - 120 days.

c) Of the trade receivables balance, `538.10 in aggregate (as at March 31, 2023 `487.71) is due from the Company’s customers
individually representing more than 5 % of the total trade receivables balance.

d) The Company has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based
on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking
estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the
provision matrix.

e) Trade receivables is net of bills discounted without recourse aggregating `33.82 (as at March 31, 2023 `37.63)

(f) Movement in the expected credit loss allowance March 31, 2024 March 31, 2023
Balance at the beginning of the year 1.32 0.30
Movement in expected credit loss allowance on trade receivables 4.25 1.02
Balance at the end of the year 5.57 1.32

Trade Receivables ageing schedule for the year ended March 31,2024:
Outstanding from due date of payment
Particulars Not Due Less than 6 6 months More than Total
1- 2 years 2-3 years
months - 1 year 3 years
i) Undisputed Trade receivables - considered good 1,052.84 521.15 50.31 16.20 - - 1,640.50
ii) Undisputed Trade receivables - which have - - - - - - -
significant increase in credit risk
iii) Undisputed Trade receivables - credit impaired - - - 5.57 - - 5.57
iv) Disputed trade receivables - considered good - - - - - - -
v) Disputed trade receivables - which have significant - - - - - - -
increase in credit risk
vi) Disputed trade receivables - credit impaired - - - - - - -
Total 1,052.84 521.15 50.31 21.77 - - 1,646.07

Annual Report 2023-24 195

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Trade Receivables ageing schedule for the year ended March 31,2023:
Outstanding from due date of payment
Particulars Not Due Less than 6 6 months - More than Total
1- 2 years 2-3 years
months 1 year 3 years
i) Undisputed Trade receivables - considered good 1,077.17 330.75 77.38 2.12 - - 1,487.42
ii) Undisputed Trade receivables - which have - - - - - - -
significant increase in credit risk
iii) Undisputed Trade receivables - credit impaired - - - 1.32 - - 1.32
iv) Disputed trade receivables - considered good - - - - - - -
v) Disputed trade receivables - which have significant - - - - - - -
increase in credit risk
vi) Disputed trade receivables - credit impaired - - - - - - -
Total 1,077.17 330.75 77.38 3.44 - - 1,488.74

10. Cash and cash equivalents and other bank balances

Particulars March 31, 2024 March 31, 2023
A) Cash and cash equivalents
Balances with banks
- On current accounts 42.57 1.35
Cash on hand 0.06 0.07
Total 42.63 1.42
B) Other balances with banks
On deposit accounts
- Unclaimed dividend accounts 0.29 0.28
Total 0.29 0.28

11. Equity share capital

Particulars March 31, 2024 March 31, 2023
Authorised
555,000,000 (March 31, 2023: 555,000,000) Equity shares of `2/- each 111.00 111.00
Total 111.00 111.00
Issued, Subscribed and Paid Up
538,965,858 (March 31, 2023: 538,650,925) Equity shares of `2/- each 107.79 107.73
Total 107.79 107.73

11.1. Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
For the year ended March 31, 2024 For the year ended March 31, 2023
Equity Shares of `2/- each, fully paid up
No. ` No. `

Balance as per last financial statements (`2/- each) 538,650,925 107.73 537,359,335 107.47
Issued during the year - ESOP (`2/-each) 314,933 0.06 1,291,590 0.26
Outstanding at the end of the year 538,965,858 107.79 538,650,925 107.73

11.2. Rights attached to equity shares

The Company has only one class of equity shares having a par value of `2/- per share. Each holder of equity shares is entitled to one
vote per share at the general meetings of the Company. For liquidation terms refer note 11.2a.

The Company declares and pays dividends in Indian rupees. The final dividend, if any, proposed by the Board of Directors is subject
to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2024, the amount of dividend (first interim dividend `0.40 and second interim dividend `0.40)
per share declared as distribution to equity shareholders was `0.80 (March 31, 2023: first interim dividend `0.80 and second
interim dividend `1.20 per share declared as distribution to equity shareholders was `2.00).

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

11. 2a. Liquidation terms and preferential rights

The liquidation terms of the equity shares are as follows:

(a) If the company shall be wound up, the Liquidator may, with the sanction of a special resolution of the company and any other
sanction required by the Act divide amongst the shareholders, in specie or kind the whole or any part of the assets of the company,
whether they shall consist of property of the same kind or not.

(b) For the purpose aforesaid, the Liquidator may set such value as he deems fair upon any property to be divided as aforesaid and
may determine how such division shall be carried out as between the shareholders or different classes of shareholders.

11.3 Details of shareholders holding more than 5% shares of the Company:

Particulars March 31, 2024 March 31, 2023
Equity shares of `2/- each held by % Holding No. % Holding No.
M/s. NSN Holdings represented by Dr. Satyanarayana Chava 23.03% 124,126,740 23.04% 124,126,740
New World Fund Inc 6.50% 35,030,409 5.29% 28,511,600

11.4 Details of shares held by the promoters of the Company:

Equity Shares held by promoters as at March 31, 2024 and March 31, 2023

March 31, 2024 March 31, 2023

Promoter Name % Change % Change

% of total % of total
No of shares during the No of shares during the
shares shares
year year
M/s. NSN Holdings (represented by Dr. Satyanarayana Chava) 124,126,740 23.03% - 124,126,740 23.04% -
Dr. C.V. Lakshmana Rao 13,450,145 2.50% - 13,450,145 2.50% -
M/s. Leven Holdings (represented by Mr. V.V. Ravi Kumar) * 6,705,000 1.24% - 6,705,000 1.24% 100.00%
Mr. V. V. Ravi Kumar* 1,000,000 0.19% - 1,000,000 0.19% -87.02%
Mr. Narasimha Rao Chava 119,675 0.02% - 119,675 0.02% -
Mr. Chandrakanth Chereddi 42,000 0.01% - 42,000 0.01% -
Mrs. V. Krishnaveni 201,397 0.04% - 201,397 0.04% -
Mr. C. Sekhar Babu 100,000 0.02% - 100,000 0.02% -
Mrs. V. Hymavathi 225,000 0.04% - 225,000 0.04% -
Mrs. Soumya Chava 10,440 0.00% - 10,440 0.00% -
Mr. Krishna Chaitanya Chava 20,699 0.00% - 20,699 0.00% -
Mrs. T. Nagamani 100,000 0.02% - 100,000 0.02% -
Mrs. K. Kamala 100,000 0.02% - 100,000 0.02% -
Mr. S. Narasimha Rao 147,500 0.03% - 147,500 0.03% -
Mrs. S. Rama 170,000 0.03% - 170,000 0.03% -

* Mr. V.V. Ravi Kumar, Promoter of the Company had transferred 67,05,000 shares to partnership firm M/s. Leven Holdings on November 02, 2022.

11.5. Details of shares reserved for issue under options

For details of shares reserved for issue under Employee Stock Options Scheme plan of the Company, refer note no. 29

11.6. Other equity

Particulars March 31, 2024 March 31, 2023
Capital reserve 1.79 1.79
Securities premium 717.08 713.06
Share based payment reserve 21.44 12.05
Retained earnings 3,367.61 3,230.09
Other comprehensive income (8.66) (7.90)
Total 4,099.26 3,949.09

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Nature and purpose of reserves

Capital reserve:
Represents capital reserve balances of acquired entities which are transferred to the Company upon merger.

Securities premium:
Securities premium is used to record the premium on issue of shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.

Share based payments reserve:

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 Share based payments reserve. This will be utilised for allotment of equity shares against outstanding employee
stock options.

Retained earnings:
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distribution to share holders.

Other Comprehensive Income:

Comprises of: Re-measurement of defined employee benefit plans: Difference between the interest income on plan assets and the
return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments
with in the plans, are recognised in other comprehensive income and subsequently not reclassified in to statement of profit and loss.

12. Dividends paid and proposed

2023-24 2022-23
Cash dividends on equity shares declared and paid: Dividend per Dividend per
Amount Amount
equity share equity share
First interim dividend for the financial year 2022-23 (face value of - - 0.80 42.99
`2/- each)
Second interim dividend for the financial year 2022-23 (face value 1.20 64.64 - -
of `2/- each)
First interim dividend for the financial year 2023-24 (face value of 0.40 21.54 - -
`2/- each)
Total 86.18 42.99
Proposed dividends on equity shares:
Second interim dividend for the financial year 2022-23 (face value - - 1.20 64.64
of `2/- each)
Second interim dividend for the financial year 2023-24 (face value 0.40 21.56 - -
of `2/- each)*
Total 21.56 64.64

*The Board of Directors of the Company in their meeting held on April 25, 2024 have approved for payment of second interim dividend and the Company
has fixed May 08, 2024 as “Record Date” for determining the eligibility of the Shareholders. Accordingly, the Company has not recognised the said proposed
dividend as a liability as at March 31, 2024.

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

13. Financial liabilities

Particulars March 31, 2024 March 31, 2023
A) Non-current borrowings
Term loans
Indian rupee loans from banks (Secured) 359.72 341.88
Foreign currency loans from banks (Secured) 130.81 223.61
Total 490.53 565.49
Current maturities of non-current borrowings
Term loans
Indian rupee loans from banks (Secured) 154.97 75.41
Foreign currency loans from banks (Secured) 93.37 105.53
248.34 180.94
Less: Amount disclosed under the head "current borrowings" (248.34) (180.94)
Total - -
B) Current borrowings
Cash credits and working capital demand loans
Indian rupee loans from banks (Secured) 696.68 353.30
Indian rupee loans from banks (Un Secured) 516.53 487.11
Buyers credit from banks (Secured) 44.09 34.34
Buyers credit from banks (Unsecured) 52.89 60.20
Current maturities of non-current borrowings 248.34 180.94
Total 1,558.53 1,115.89

(a) The details of Indian rupee term loans from banks are as under:
Outstanding Outstanding
Sanction Commencement of
Name of the Bank as on March as on March No. of Instalments Effective interest rate^
Amount instalments
31, 2024 31, 2023
HDFC Bank (HDFC) 100.00 140.00 200.00 20 quarterly instalments December 2021 Repo + 1.25% (March 31,
of `10 2023: Repo + 1.25%)
The Hongkong & 46.88 65.63 150.00 16 quarterly instalments of July 2021 T Bill + 0.29% (March 31,
Shanghai Banking `9.375 2023: T Bill + 0.29%)
Corporation (HSBC)
CITI Bank (CITI) 5.00 11.67 40.00 24 quarterly instalments of January 2019 T Bill + 0.28% (March 31,
`1.67 2023: T Bill + 0.28%)
HDFC Bank (HDFC) 172.93 - 200.00 22 quarterly instalments March 2024 1M T Bill + 1.20%
ranging from `5 to `10
Axis Bank (Axis) 189.88 200.00 200.00 20 quarterly instalments May 2023 Repo +1.50% (March 31,
ranging from `2.50 to 2023: Repo + 1.50%)
`11.875

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(b) Foreign Currency loans from banks comprise of Foreign Currency Non Resident Term Loan (FCNR TL) and
ECB loan:
Outstanding Outstanding
Name of the Bank & Sanction Commencement of
as on March as on March No. of Instalments Effective interest rate^
Nature of Loan Amount instalments
31, 2024 31, 2023
State Bank of India - 66.86 US$ 13.80 Mn 18 quarterly instalments of December 2021 SOFR plus 1.25% p.a.
(SBI) - FCNR TL* `5.55 (March 31, 2023: SOFR plus
1.50% p.a.)
State Bank of India - 68.36 US$ 13.25 Mn 18 quarterly instalments of December 2021 SOFR plus 1.50% p.a.
(SBI) - FCNR TL* `5.55 (March 31, 2023: SOFR plus
1.05% p.a.)
State Bank of India 89.40 - US$ 12.08 Mn 11 quarterly instalments of July 2023 SOFR plus 1.25% p.a.
(SBI) - FCNR TL* `11.113 (March 31, 2023: nil)
The Hongkong & - 12.83 US$ 25 Mn 16 quarterly instalments of July 2019 LIBOR plus 0.76% p.a.
Shanghai Banking `12.84 (March 31, 2023: LIBOR plus
Corporation (HSBC), 0.76% p.a.)
Singapore - ECB TL
State Bank of India 134.78 181.08 US$ 25 Mn 17 quarterly instalments of November 2022 LIBOR plus 0.97% p.a.
(SBI) - New York - `12.07 (March 31, 2023: LIBOR plus
ECB TL 0.97% p.a.)

*During year ended March 31, 2024, SBI FCNR Term Loans have been converted to a single SBI Term Loan and converted back to SBI
FCNR Term Loan.

^Secured Overnight Financing Rate (SOFR), London Interbank Offer Rate (LIBOR) and Marginal Cost of Funds based Lending Rate
(MCLR)

(c) All term loans are secured by pari passu first charge on the property, plant and equipment (both present and future) except to the
extent of assets exclusively charged to banks. They are further secured by pari passu second charge on current assets (both present
and future).

(d) Current borrowings are availed in both Rupee and Foreign currencies. Interest on rupee loans ranges from MCLR plus 0% to 0.10%
(March 31, 2023: MCLR plus 0% to 0.10%). Buyers credit loan interest ranges from SOFR plus 0.30% to SOFR plus 0.45% (March 31,
2023: SOFR plus 0.15% to SOFR plus 0.67%). The secured current borrowings are backed by pari passu first charge on current assets
and pari passu second charge on the fixed assets (both present and future). [March 31, 2023: The secured current borrowings are
backed by pari passu first charge on current assets and pari passu second charge on the fixed assets (both present and future)].

(e) The Company has used the borrowings for the purposes for which it was taken.

(f) The quarterly returns of current assets filed by the Company with banks are in agreement with the books of account.

(g) Reconciliation of liabilities from financing activities are given below:

Non-cash
transactions
Particulars March 31, 2023 Cash flows March 31, 2024
foreign exchange
loss
Non-current borrowings including current maturities 746.43 (1.96) 5.60 738.87
Current borrowings 934.95 375.60 0.36 1,310.19

Non-cash
transactions
Particulars March 31, 2022 Cash flows March 31, 2023
foreign exchange
gain
Non-current borrowings including current maturities 754.39 (26.18) (18.22) 746.43
Current borrowings 865.27 69.60 (0.08) 934.95

200 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

C) Trade payables
Particulars March 31, 2024 March 31, 2023
Valued at amortised cost
- Total outstanding dues to creditors other than micro enterprises and small enterprises 954.31 608.17
- Outstanding dues to related parties (refer note no. 33) 19.69 30.04
Total 974.00 638.21
- Total outstanding dues to micro enterprises and small enterprises (refer note no. 30) 22.78 28.15
Total 22.78 28.15

Terms and conditions of the above financial liabilities:

Trade payables are non-interest bearing and are normally settled on 30-120 day terms.

For explanations on the Company’s credit risk management processes, refer note no. 37.

Trade Payables ageing schedule for the year ended March 31, 2024
Outstanding from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 Years 2-3 Years
Year 3 years
i) Total outstanding dues to micro enterprises and - 22.78 - - - - 22.78
small enterprises
ii) Total outstanding dues to creditors other than 115.80 499.90 355.29 2.70 0.30 0.01 974.00
micro enterprises and small enterprises
iii) Disputed dues of micro enterprises and small - - - - - - -
enterprises
iv) Disputed dues of creditors other than micro - - - - - - -
enterprises and small enterprises
Total 115.80 522.68 355.29 2.70 0.30 0.01 996.78

Trade Payables ageing schedule for the year ended March 31, 2023
Outstanding from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 Years 2-3 Years
Year 3 years
i) Total outstanding dues to micro enterprises and - 28.15 - - - - 28.15
small enterprises
ii) Total outstanding dues to creditors other than 119.12 268.80 243.80 2.70 0.05 3.74 638.21
micro enterprises and small enterprises
iii) Disputed dues of micro enterprises and small - - - - - - -
enterprises
iv) Disputed dues of creditors other than micro - - - - - - -
enterprises and small enterprises
Total 119.12 296.95 243.80 2.70 0.05 3.74 666.36

D) Other financial liabilities

Particulars March 31, 2024 March 31, 2023
Capital creditors 31.49 136.82
Interest accrued* 7.84 7.22
Total 39.33 144.04

* Interest accrued but not due is normally settled monthly/quarterly throughout the financial year.

Annual Report 2023-24 201

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

14. Other non-current and current liabilities

Particulars March 31, 2024 March 31, 2023
A) Non-current
Advances from customers 26.44 45.99
26.44 45.99
B) Current
Advances from customers 63.81 97.97
Unclaimed dividend 0.29 0.28
Statutory dues 11.38 13.49
Total 75.48 111.74

15. Provisions
Particulars March 31, 2024 March 31, 2023
A) Non-current provisions
Provision for gratuity (Refer note no. 28) 55.97 49.35
Provision for compensated absences 32.29 29.19
Total 88.26 78.54
B) Current provisions
Provision for gratuity (Refer note no. 28) 10.23 7.59
Provision for compensated absences 13.77 11.83
Total 24.00 19.42

16. Income tax liabilities

Particulars March 31, 2024 March 31, 2023
Income tax liabilities
Provision for taxes [net of advance tax `809.25 (March 31, 2023: `737.77)] 34.01 44.05
Total 34.01 44.05

17. Revenue from operations

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Sale of products
Income from sale of API, Intermediates and Formulations 4,508.61 5,469.39
Income from sale of traded goods 111.67 158.80
(A) 4,620.28 5,628.19
Sale of services
Contract research services 153.91 114.13
(B) 153.91 114.13
Other operating revenue
Sale of scrap 12.81 11.44
Others 25.39 19.69
(C) 38.20 31.13
Revenue from operations (A+B+C) 4,812.39 5,773.45

202 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Notes:
For the year ended For the year ended
(i) Reconciliation of revenue from sale of products with the contracted price
March 31, 2024 March 31, 2023
Revenue as per contracted price, net of returns 4,451.38 5,417.06
Adjusted for:
Profit sharing adjustments 57.23 52.33
Total revenue from contracts with customers 4,508.61 5,469.39

For the year ended For the year ended

(ii) Disaggregated revenue information
March 31, 2024 March 31, 2023
Below is the disaggregation of the Company's revenue from contracts with customers.
Revenue from operations - Domestic 1,984.55 1,684.00
Revenue from operations - Exports 2,827.84 4,089.45
Total 4,812.39 5,773.45
Timing of revenue recognition
Goods transferred at a point of time 4,658.48 5,659.32
Services transferred over time 153.91 114.13
Total 4,812.39 5,773.45

(iii) Details of contract balances March 31, 2024 March 31, 2023
Trade receivables (Refer note no. 9) 1,640.50 1,487.42
Advance from customers (Refer note no. 14) 90.25 143.96
(iv) The amount of revenue recognised from advances from customers at the beginning of the year `96.13 (March 31, 2023: `165.69)
(v) Revenue from customers contributing more than 10% of total revenue amounts to `nil (March 31, 2023: `1,432.09)

18. Other income

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Net gain on foreign exchange fluctuations 4.59 -
Bad debts recovered - 0.40
Provision no longer required written back - 1.04
Insurance claim 17.05 -
Corporate support service income 5.40 3.31
Miscellaneous income 0.01 -
Total 27.05 4.75

19. Cost of materials consumed

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Raw materials consumed
Opening stock at the beginning of the year 465.30 547.35
Add: Purchases 2,353.20 2,389.27
2,818.50 2,936.62
Less: Closing stock at the end of the year 479.57 465.30
(A) 2,338.93 2,471.32
Packing materials consumed (B) 58.02 44.62
Total (A+B) 2,396.95 2,515.94

Annual Report 2023-24 203

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

20. Changes in inventories of finished goods, work-in-progress and stock-in-trade

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Opening stock of inventories
Finished goods of API, Intermediates and Formulations 501.95 491.62
Work-in-progress of API, Intermediates and Formulations 543.50 594.65
1,045.45 1,086.27
Closing stock of inventories
Finished goods of API, Intermediates and Formulations 481.88 501.95
Work-in-Progress of API, Intermediates and Formulations 666.05 543.50
1,147.93 1,045.45
(Increase)/Decrease in inventories of finished goods and work-in-progress (102.48) 40.82
(Increase)/Decrease in finished goods of API, Intermediates and Formulations 20.07 (10.33)
(Increase)/Decrease in Work-in-Progress of API, Intermediates and Formulations (122.55) 51.15
(Increase)/Decrease in inventories of finished goods and work-in-progress (102.48) 40.82

21. Employee benefits expenses

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Salaries, allowances and wages 414.40 373.96
Contribution to provident fund and other funds 26.68 24.05
Gratuity expense (Refer note no. 28) 12.77 11.56
Share based payment expense (Refer note no. 29) 10.92 7.48
Managerial remuneration 20.28 18.69
Recruitment and training 1.00 1.30
Staff welfare expenses 66.16 59.53
Total 552.21 496.57

22. Other expenses

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Consumption of stores and spares 58.66 60.42
Conversion charges 59.72 52.78
Factory maintenance 189.63 171.27
Effluent treatment expenses 84.43 66.32
Power and fuel 309.67 301.10
Repairs and maintenance
Plant and machinery 82.05 66.15
Buildings 10.24 9.11
Others 2.66 2.65
Product development 47.31 29.77
Testing and analysis charges 2.57 0.89
Rent 1.39 1.50
Rates and taxes 25.44 30.84
Office maintenance 4.55 3.29
Insurance 30.67 25.86
Printing and stationery 3.07 3.26
Consultancy and other professional charges 18.21 22.46
Membership and subscription 9.64 8.34
Remuneration to auditors

204 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
-Audit fee 0.62 0.56
-Tax audit fee - 0.06
-Limited review 0.36 0.36
-Other services 0.05 0.09
-Out of pocket expenses 0.04 0.03
Travelling and conveyance 7.71 6.96
Communication expenses 2.92 2.77
Loss on sale of property, plant and equipment (net) 0.80 0.19
Allowance for bad and doubtful advance and debts 4.92 1.08
Net loss on foreign exchange fluctuations - 24.10
Carriage outwards 44.80 42.38
Commission on sales 28.80 32.35
Other selling expenses 1.91 3.26
Business promotion and advertisement 48.17 93.52
CSR expenditure (Refer note no. 26) 22.28 17.90
Donations 1.50 0.88
Miscellaneous expenses 0.12 0.15
Total 1,104.91 1,082.65

23A. Finance Income

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Interest income on
Intercorporate loan 16.77 8.54
Electricity deposits and others 3.60 2.66
Total 20.37 11.20

23B. Finance costs

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Interest
- on term loans 52.57 32.68
- on working capital loans 83.57 65.56
- on others 4.43 6.02
Total interest expense 140.57 104.26
Bank charges 7.01 18.86
Exchange differences to the extent considered as an adjustment to finance costs 3.24 22.58
Total 150.82 145.70

24. Components of other comprehensive income (OCI)

The disaggregation of changes to OCI by each type of reserve in equity is shown below:

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Remeasurement gains/(losses) on defined benefit plans (1.02) 1.06
Deferred tax on remeasurement of defined benefit plans 0.26 (0.27)
Total (0.76) 0.79

Annual Report 2023-24 205

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

25. Earnings per share (EPS)

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
The following reflects the profit and share data used in the basic and diluted EPS computations:
Profit available for equity shareholders 223.70 760.38
Weighted average number of equity shares in computing basic EPS 538,749,879 537,730,888
Add: Effect of dilution
Stock options granted under ESOP 915,791 1,869,599
Weighted Average number of Equity Shares in computing diluted earnings per share 539,665,671 539,600,487
Face value of each equity share (`) 2.00 2.00
Earnings per share
- Basic (`) 4.15 14.14
- Diluted (`) 4.15 14.09

26. Details of CSR expenditure

As per the requirement of the Companies Act, 2013, gross amount required to be spent by the Company during the year is `22.01
(March 31, 2023: `17.03). The nature of CSR activities undertaken by the company includes promoting education, health care and
environmental sustainability. The details of CSR expenditure is given below.

For the year ended March 31, 2024

CSR Activities Yet to be paid in
In cach Total
cash
(i) Construction/acquisition of any asset - - -
(-) (-) (-)
(ii) On purposes other than (i) above 22.28 - 22.28
(17.90) (-) (17.90)

Amounts in bracket indicate previous year numbers. There is no shortfall at the end of March 31,2024 and March 31, 2023 in terms of
amount required to be spent by the company.

The above includes contribution made to Laurus Charitable Trust amounting to `22.12 (March 31, 2023: `10.18) (Refer note no.33)

27. Taxes
(a) Income tax expense:
The major components of income tax expenses for the period ended March 31, 2024 and for the year ended March 31, 2023 are:

(i) Statement of Profit and Loss

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current tax 87.94 270.78
Deferred tax credit* (10.17) 20.27
Total income tax expense recognised in Statement of Profit and Loss 77.77 291.05

* Including Mat credit entitlement/(utilisation/reversals) of `nil (March 31, 2023: `(33.21) crores)

(ii) Other comprehensive income (OCI)

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Tax on remeasurement of defined benefit plans 0.26 (0.27)
Tax on fair value movements on cash flow hedges - -
Total tax recognised in OCI 0.26 (0.27)

206 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(b) Reconciliation of effective tax rate:

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Profit before tax (A) 301.47 1,051.43
Enacted tax rate in India (B) 25.17% 25.17%
Expected tax expenses (C = A*B) 75.87 264.62
Permanent Difference
Expenses disallowed under Income Tax Act, 1961 24.52 28.04
Impact of rate change on deferred tax - (25.43)
Deferred Tax Liability Originating and reversing during tax holiday period - 39.49
MAT Credit reversal - 33.21
Tax pertaining to earlier years (10.98) 14.04
Others (6.01) 15.65
Total (D) 7.53 105.00
Profit after adjusting permanent difference 309.00 1,156.43
Expected tax expense 77.77 291.05
Total Tax expense 77.77 291.05
Effective Tax rate 25.80% 27.68%

(c) The details of component of deferred tax assets are given under note 6.
(d) During the year ended March 31, 2023, the Company elected to exercise the option permitted under Section 115BAA of the
Income-Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has
recognised provision for income tax for the year ended March 31, 2023 and remeasured its deferred tax assets/liabilities based on
the rate prescribed in the said Section.

28. Gratuity
Defined Benefit Plans
The Company has a defined benefit gratuity plan and governed by Payment of Gratuity Act, 1972. Every employee who has completed
five years or more of service is entitled to a gratuity on departure at 15 days salary for each completed year of service. The scheme is
funded through a policy with SBI Life Insurance Company Limited. The following tables summarise net benefit expenses recognised in
the Statement of Profit and Loss, the status of funding and the amount recognised in the Balance sheet for the gratuity plan:

Particulars March 31, 2024 March 31, 2023

A) Net employee benefit expense (recognised in Employee benefits expenses)
Current service cost 8.67 8.05
Interest cost 4.32 3.63
Expected return on plan assets (0.22) (0.12)
Net employee benefit expenses 12.77 11.56
Actual return on plan asset (0.15) (0.09)
B) Amount recognised in the Balance Sheet
Defined benefit obligation 69.92 59.24
Fair value of plan assets 3.72 2.30
66.20 56.94
C) Changes in the present value of the defined benefit obligation
Opening defined benefit obligation 59.24 50.34
Current service cost 8.67 8.05
Interest cost 4.32 3.63
Benefits paid (3.33) (1.72)
Net actuarial (gains) / losses on obligation for the year recognised under OCI 1.02 (1.06)
Closing defined benefit obligation 69.92 59.24

Annual Report 2023-24 207

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Particulars March 31, 2024 March 31, 2023

D) Change in the fair value of plan assets
Opening fair value of plan assets 2.30 1.13
Actual return on plan assets 0.15 0.09
Contributions 4.60 2.80
Benefits paid (3.33) (1.72)
Closing fair value of plan assets 3.72 2.30
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Investments with SBI Life Insurance Company Limited 100.00% 100.00%
E) Remeasurement adjustments:
Financial (loss)/ gain on plan assets (1.02) 1.06
Remeasurement gains/(losses) recognised in other comprehensive income: (1.02) 1.06

(i) The principal assumptions used in determining gratuity for the Company’s plans are shown below:
Particulars March 31, 2024 March 31, 2023
Discount rate 7.23% 7.51%
Expected rate of return on assets 7.23% 7.51%
Salary escalation 11.00% 11.00%
Attrition rate 17.00% 15.00%

The estimates of future salary increases, considered in the actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.

(ii) Disclosure related to indication of effect of the defined benefit plan on the entity’s future cashflows:
Expected benefit payments for the year ending:

Year ending March 31, 2024 March 31, 2023

Year 1 10.27 7.62
Year 2 9.54 7.11
Year 3 9.03 7.24
Year 4 8.35 6.90
Year 5 7.91 6.43
Beyond 5 years 67.84 35.33

The average duration of the defined benefit plan obligation at the end of the reporting period is 25.70 years (March 31, 2023: 25.72
years).

(iii) Sensitivity analysis:

A quantitative sensitivity analysis for significant assumption is as shown below:

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
(a) Effect of 1% change in assumed discount rate on defined benefit obligation
- 1% increase (3.72) (3.44)
- 1% decrease 3.80 3.69
(b) Effect of 1% change in assumed salary escalation rate on defined benefit obligation
- 1% increase 3.37 3.31
- 1% decrease (3.53) (3.29)
(c) Effect of 1% change in assumed attrition rate on defined benefit obligation
- 1% increase (0.74) (0.64)
- 1% decrease 0.47 0.53

208 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(iv) Defined contribution plan

Particulars March 31, 2024 March 31, 2023
Contribution to Provident Fund 24.64 22.14
Contribution to Superannuation Fund 2.34 2.14

29. Share based payments

ESOP 2016 Scheme
The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2016 for issue
of stock options to eligible employees of the Company effective from June 09, 2016. According to the Scheme, the options granted
vest within a period of four years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as
the employee continues to be in the employment of the Company as on the date of vesting. Subject to an employee’s continued
employment with the Company, options can be exercised any time on or after the date of vesting of options as specified in the
respective grants under the Scheme.

ESOP 2018 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2018 for issue
of stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of four
years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues
to be in the employment of the Company as on the date of vesting. Subject to an employee’s continued employment with the
Company, options can be exercised any time on or after the date of vesting of options as specified in the respective grants under
the Scheme.

ESOP 2021 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2021 for issue
of stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of five
years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues
to be in the employment of the Company as on the date of vesting. Subject to an employee’s continued employment with the
Company, options can be exercised any time on or after the date of vesting of options as specified in the respective grants under
the Scheme.

Exercise period
Weighted
Number
Exercise Average Fair Year 1 Year 2 Year 3
Scheme Grant Date of Grant of options
price value of option 25% 25% 50%
Granted
at grant date
ESOP 2016 Grant II December 01, 2018 292.00 167.83 537,150 01-Dec-20 01-Dec-21 01-Dec-22
ESOP 2016 Grant III April 01, 2022 350.00 199.73 270,750 01-Apr-24 01-Apr-25 01-Apr-26
ESOP 2016 Grant IV April 01, 2023 301.50 194.81 350,500 01-Apr-25 01-Apr-26 01-Apr-27
ESOP 2018 Grant I December 01, 2019 255.50 150.88 149,750 01-Dec-21 01-Dec-22 01-Dec-23
ESOP 2018 Grant II April 01, 2021 356.00 217.10 707,000 01-Apr-23 01-Apr-24 01-Apr-25
ESOP 2018 Grant III April 01, 2022 350.00 199.73 5,000 01-Apr-24 01-Apr-25 01-Apr-26

Weighted
Average Number
Exercise Year 1 Year 2 Year 3 Year 4
Scheme Grant Date of Grant Fair value of options
price 25% 25% 25% 25%
of option at Granted
grant date
ESOP 2021 Grant I April 01, 2023 301.50 197.44 787,500 01-Apr-25 01-Apr-26 01-Apr-27 01-Apr-28

Annual Report 2023-24 209

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

The details of activity under the Scheme ESOP 2016 are summarised below:
March 31, 2024 March 31, 2023
Particulars
No. of options No. of options
Outstanding at the beginning of the year 258,435 1,158,460
Granted during the year 350,500 270,750
Forfeited during the year 16,185 26,640
Exercised during the year - 1,144,135
Outstanding at the end of the year 592,750 258,435
Weighted average exercise price for all the above options 321.53 292.00

The details of activity under the Scheme ESOP 2018 are summarised below:
March 31, 2024 March 31, 2023
Particulars
No. of options No. of options
Outstanding at the beginning of the year 947,950 1,135,685
Granted during the year - 5,000
Forfeited during the year 52,598 45,280
Exercised during the year 314,933 147,455
Outstanding at the end of the year 580,419 947,950
Weighted average exercise price for all the above options 355.95 255.50

The details of activity under the Scheme ESOP 2021 are summarised below:
March 31, 2024 March 31, 2023
Particulars
No. of options No. of options
Outstanding at the beginning of the year - -
Granted during the year 787,500 -
Forfeited during the year - -
Exercised during the year - -
Outstanding at the end of the year 787,500 -
Weighted average exercise price for all the above options 301.50 -

For options exercised during the year, the weighted average share price at the exercise date under under ESOP 2016 scheme, as at
March 31, 2024 ` nil per share (March 31, 2023: `58.40 per share) and under ESOP 2018 scheme, as at March 31, 2024 `81.25 per share
(March 31, 2023: `51.10 per share).

The weighted average remaining contractual life for the stock options outstanding under ESOP 2016 as at March 31, 2024 is 3.59 years
(March 31, 2023: 4.01 years) , under ESOP 2018 as at March 31, 2024 is 2.01 years (March 31, 2023: 2.90) and under ESOP 2021 as
at March 31, 2024 is 5 years (March 31, 2023: nil). The range of exercise prices for options outstanding under ESOP 2016 as at March
31, 2024 was `301.50 to `350.00 (March 31, 2023: `292.00 to `352.50) and under ESOP 2018 as at March 31, 2024 was `350.00 to
`356.00 (March 31, 2023: `255.50 to `356.00) and ESOP 2021 as at March 31, 2024 was `301.50 (March 31, 2023: ` Nil)

210 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

The weighted average fair value of stock options granted during the year under ESOP 2016 scheme as at March 31, 2024 `194.81
(March 31, 2023: `167.83) , under ESOP 2018 scheme as at March 31, 2024 ` nil (March 31, 2023: `150.08) and under ESOP 2021 scheme
as at March 31, 2024 `197.44 (March 31, 2023: ` Nil). The Black Scholes valuation model has been used for computing the weighted
average fair value considering the following inputs:

March 31, 2024

ESOP 2021
ESOP 2016 scheme ESOP 2018 scheme
scheme
Grant IV Grant III Grant II Grant III Grant II Grant I Grant I
Dividend yield 0.40% 0.34% 0.39% 0.34% 0.25% 0.43% 0.40%
Expected volatility 36.4% - 41.56% 36.37% - 44.27% 26.90% 36.37% - 44.27%36.22% - 42.13% 26.3% - 27.18% 36.4% - 41.56%
Risk-free interest rate 7.10% - 7.14% 6.15% - 6.94% 7.19% - 7.43% 6.15% - 6.94% 4.74% - 5.54% 5.53% - 6.07% 7.1% - 7.14%
Weighted average 401.85 466.60 384.00 466.60 474.70 350.25 401.85
share price of `
Exercise price of ` 301.50 350.00 292.00 350.00 217.10 255.50 301.50
Expected life of 2.5 - 4.51 1.26 - 3.26 2.5 - 4.5 1.26 - 3.26 2.43 - 4.43 2.5 - 4.51 2.5 - 4.51
options granted in
years

March 31, 2023

ESOP 2016 scheme ESOP 2018 scheme
Grant III Grant II Grant I Grant III Grant II Grant I
Dividend yield 0.34% 0.39% 0.39% 0.34% 0.25% 0.43%
Expected volatility 36.37% - 44.27% 26.90% 0.00% 36.37% - 44.27% 36.22% - 42.13% 26.3% - 27.18%
Risk-free interest rate 6.15% - 6.94% 7.19% - 7.43% 7.03% 6.15% - 6.94% 4.74% - 5.54% 5.53% - 6.07%
Weighted average share price of ` 466.60 384.00 514.79 466.60 474.70 350.25
Exercise price of ` 350.00 292.00 550.00 350.00 217.10 255.50
Expected life of options granted in 1.26 - 3.26 2.5 - 4.5 2.50 1.26 - 3.26 2.43 - 4.43 2.5 - 4.51
years

The expected life of the stock is based on the historical data and current expectations and is not necessarily indicative of exercise pattern
that may occur.

30. Trade Payables (Details of dues to Micro and Small Enterprises as per MSMED Act,2006)
Particulars March 31, 2024 March 31, 2023
The principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier 22.78 28.15
as at the end of each accounting year
The amount of interest paid by the buyer in terms of section 16, of the Micro Small and Medium Enterprise - -
Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed
day during each accounting year
The amount of interest due and payable for the period of delay in making payment (which have been paid - -
but beyond the appointed day during the year) but without adding the interest specified under Micro Small
and Medium Enterprise Development Act, 2006.
The amount of interest accrued and remaining unpaid at the end of each accounting year; and - -
The amount of further interest remaining due and payable even in the succeeding years, until such date - -
when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the Micro Small and Medium Enterprise Development Act, 2006.
Total 22.78 28.15

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
collected by the Management. This has been relied upon by the auditors.

31. In accordance with Indian Accounting Standard (Ind AS) 108 on Operating segments, segment information has been given in the
consolidated financial statements of the Company, and therefore no separate disclosure on segment information is given in these
financial statements.

Annual Report 2023-24 211

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

32. Research and development

i) Details of Revenue expenditure (expensed as and when incurred):
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Cost of materials consumed
Raw materials consumed 28.66 29.16
Employee benefits expenses
Salaries, allowances and wages 74.45 69.98
Staff welfare expenses 5.52 5.35
Recruitment and training 0.13 0.13
Other expenses
Consumption of stores and spares 1.37 1.43
Factory maintenance 8.89 6.51
Repairs and maintenance
Plant and machinery 5.08 4.08
Effluent treatment expenses 1.81 1.56
Power and fuel 9.23 6.98
Product development 39.96 25.81
Testing and analysis charges 1.37 1.28
Rates and taxes 11.64 14.65
Insurance 1.50 1.50
Membership and subscription 3.66 2.84
Consultancy and other professional charges 9.00 11.26
Travelling and conveyance 1.32 0.75
Printing and stationery 0.18 0.66
Communication expenses 0.36 0.41
Business promotion and advertisement 0.03 0.25
Total 204.16 184.59

ii) Details of property, plant and equipment:

Total Property,
Plant and Furniture and
Particulars Buildings Computers plant and
equipment fixtures
equipment
Gross carrying value at cost
As at April 01, 2022 9.89 89.86 14.16 4.39 118.30
Additions 1.96 18.95 3.52 2.06 26.50
As at March 31, 2023 11.85 108.81 17.68 6.45 144.80
Additions 1.22 17.19 0.06 3.47 21.94
As at March 31, 2024 13.07 126.00 17.74 9.92 166.74
Depreciation
As at April 01, 2022 5.76 50.84 7.78 2.40 66.78
Charge for the year 1.33 9.90 1.53 1.29 14.04
As at March 31, 2023 7.09 60.74 9.31 3.69 80.82
Charge for the year 1.50 13.60 1.84 1.38 18.32
As at March 31, 2024 8.59 74.34 11.15 5.07 99.14
Net carrying value
As at March 31, 2023 4.76 48.07 8.37 2.76 63.98
As at March 31, 2024 4.48 51.66 6.59 4.85 67.60
* For details of pledge, refer note no. 3

212 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

33. Related party disclosures

Names of related parties and description of relationship
Name of the related party Relationship
Subsidiary Companies
i) Sriam Labs Private Limited (Wholly owned subsidiary)
ii) Laurus Synthesis Private Limited (Wholly owned subsidiary)
iii) Laurus Holdings Limited (Wholly owned subsidiary)
iv) Laurus Generics Inc (Subsidiary of Laurus Holdings Limited)
v) Laurus Generics GmbH (Wholly owned subsidiary of Laurus Holdings Limited)
vi) Laurus Generics SA (Pty) Limited (Wholly owned subsidiary)
vii) Laurus Bio Private Limited (Formerly known as Richcore Lifesciences Private Limited)
viii) Laurus Ingredients Private Limited (Wholly owned subsidiary of Laurus Synthesis
Private Limited) *
ix) Laurus Specialty Chemicals Private Limited (Wholly owned subsidiary)
Associate Companies
i) ImmunoAdoptive Cell Therapy Private Limited
ii) Ethan Energy India Private Limited (w.e.f. January 03,2023)
Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited (Formerly known as Laurus Infosystems (India) Private
Limited)
ii) HRV Global Life Sciences Private Limited
iii) Laurus Charitable Trust
iv) Kapston Facilities Management limited
v) Sterotherapeutics, LLC
vi) NSN Investments
Key Management Personnel
i) Dr. Satyanarayana Chava Executive Director & Chief executive officer
ii) Mr. V.V. Ravi Kumar Executive Director & Chief financial officer
iii) Dr. C.V. Lakshmana Rao Executive Director
iv) Mr. Chandrakanth Chereddi Non-executive Director (Resigned w.e.f. October 21, 2023)
v) Mrs. Aruna Bhinge Independent Director
vi) Dr. Rajesh Koshy Chandy Independent Director
vii) Dr. Venugopala Rao Malempati Independent Director
viii) Dr. Ravindranath Kancherla Independent Director
ix) Mr. G Venkateswar Reddy Company Secretary
Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava Brother of Dr. Satyanarayana Chava
ii) Mr. Chandrakanth Chereddi Son-in-Law of Dr. Satyanarayana Chava
iii) Mr. Krishna Chaitanya Chava Son of Dr. Satyanarayana Chava
iv) Mrs. Soumya Chava Daughter of Dr. Satyanarayana Chava

*The Company has not commenced its operations and no share capital has been infused and the Company has filed for striking off of the name of the
company as on February 21, 2022 and MCA has approved the striking off with effect from June 01, 2023.

Annual Report 2023-24 213

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Transactions during the year:

For the year ended For the year ended
March 31, 2024 March 31, 2023
a) Subsidiary Companies
i) Sriam Labs Private Limited
Conversion charges 12.82 8.45
Purchase of goods 28.07 36.43
Sale of goods 3.12 3.82
Corporate Support service income 0.54 0.27
Product development expenses 0.54 -
Sale of assets 0.07 -
ii) Laurus Holdings Limited
Business promotion 4.92 4.21
Sale of services - 5.39
Corporate Support service income 0.05 -
iii) Laurus Synthesis Private Limited
Investments made 99.13 -
Loan given/(repaid) (net)* 154.00 (17.72)
Interest income 10.86 5.50
Conversion charges 22.60 8.84
Purchase of goods 6.43 4.91
Sale of goods 15.89 1.32
Sale of assets 0.85 2.97
Purchase of fixed assets 0.14 1.51
Conversion Income 2.84 5.85
Business promotion 3.14 45.10
Corporate Support service income 3.21 2.18
Reimbursement of expenses 1.67 0.62
Interest received on Corporate guarantee 2.88 0.97
iv) Laurus Bio Private Limited
Investments made 71.60 -
Corporate Support service income 0.95 0.85
Product development expenses 3.63 4.26
Loan given/(repaid) (net)** 8.00 -
Interest income 1.82 1.50
Interest received on corporate guarantee 0.90 0.37
v) Laurus Specialty Chemicals Private Limited
Investment made - 0.10
b) Step-down subsidiary companies
i) Laurus Generics Inc
Sale of goods (net) 152.83 61.22
Business promotion 29.75 28.24
Corporate Support service income 0.41 -
Conversion income 2.96 -
Interest received on corporate guarantee 0.31 0.20
ii) Laurus Generics GmbH
Product filing fee - 0.91
Sale of goods 7.08 11.23
Corporate Support service income 0.22 -

214 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

March 31, 2024 March 31, 2023
c) Associate companies
i) ImmunoAdoptive Cell Therapy Private Limited
Investment made 80.02 18.40
ii) Ethan Energy India Private Limited
Investment made - 3.90
Performance guarantee deposit received - 3.73
Purchase of solar power 4.14 -
d) Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited
Software maintenance 2.67 1.76
ii) HRV Global Life Sciences Private Limited
Sale of goods 0.38 -
iii) Laurus Charitable Trust
Donations 0.94 0.36
CSR expenditure 22.12 10.18
iv) Kapston Facilities Management limited
Factory maintenance 2.65 2.34
v) Sterotherapeutics, LLC
Sale of goods/services 0.04 0.08
vi) NSN Investments
Rent 4.57 3.40
Reimbursement of expenses 1.00 0.21
e) Key Management Personnel
i) Dr. Satyanarayana Chava
Remuneration 12.01 10.93
ii) Mr. V.V. Ravi Kumar
Remuneration 4.04 3.67
Rent 0.11 0.10
iii) Dr. C.V. Lakshmana Rao
Remuneration 2.71 2.45
iv) Mr. Chandrakanth Chereddi
Independent directors fee 0.22 0.40
Sitting fee 0.05 0.09
v) Mrs. Aruna Bhinge
Independent directors fee 0.20 0.20
Sitting fee 0.09 0.06
vi) Dr. Rajesh Koshy Chandy
Independent directors fee 0.33 0.33
Sitting fee 0.08 0.06
vii) Dr. Venugopala Rao Malempati
Independent directors fee 0.20 0.20
Sitting fee 0.06 0.05
viii) Dr. Ravindranath Kancherla
Independent directors fee 0.20 0.20
Sitting fee 0.05 0.05
ix) Mr. G.Venkateswar Reddy
Remuneration 0.84 0.67

Annual Report 2023-24 215

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

March 31, 2024 March 31, 2023
f) Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava
Remuneration 1.53 1.16
ii) Mr. Krishna Chaitanya Chava
Remuneration 1.96 1.56
iii) Mrs. Soumya Chava
Remuneration 0.77 -
Rent 0.22 0.21

Closing balances (Unsecured)

March 31, 2024 March 31, 2023
a) Subsidiary Companies
i) Sriam Labs Private Limited
Trade receivable 1.02 0.01
Trade payable 9.46 6.58
ii) Laurus Holdings Limited
Trade payables 0.36 2.12
Trade receivable 0.01 -
iii) Laurus Synthesis Private Limited
Trade payable 7.69 18.21
Trade receivable 8.08 5.64
Inter corporate loan 204.50 50.50
iv) Laurus Bio Private Limited
Trade payable 0.89 1.67
Trade receivable 1.31 1.37
Inter corporate loan 28.00 20.00
b) Step-down subsidiary Companies
i) Laurus Generics Inc.
Trade receivable 104.65 46.96
Trade payables - 0.22
Advance 0.82 -
ii) Laurus Generics GmbH
Trade receivable 0.06 10.85
c) Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited
Trade payables 0.11 -
ii) Kapston Facilities Management limited
Trade payable 0.19 0.17
iii) Sterotherapeutics, LLC
Trade receivable 0.04 -
iii) NSN Investments
Security deposit 0.92 0.92
d) Key Management Personnel
i) Dr. Satyanarayana Chava
Remuneration payable - 0.41
ii) Mr. V.V. Ravi Kumar
Remuneration payable - 0.14
Rent payable 0.01 0.01

216 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

March 31, 2024 March 31, 2023

iii) Dr. C.V. Lakshmana Rao
Remuneration payable - 0.09
iv) Mr. Rajesh Chandy
Remuneration payable 0.11 -
v) Mr. G.Venkateswar Reddy
Remuneration payable 0.12 0.11
e) Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava
Remuneration payable 0.26 0.22
ii) Mr. Krishna Chaitanya Chava
Remuneration payable 0.32 0.25
iii) Mrs. Soumya Chava
Remuneration payable 0.15 -
Rent Payable 0.02 0.02

* Net of loan given `154.00 Maximum balance outstanding during the year `204.50; (March 31, 2023: `106.42) loan given for business purposes at the rate of
interest 8.50% (March 31,2023: 8.00%)
**Maximum balance outstanding during the year `29.00; (March 31, 2023: `20.00) loan given for business purposes at the rate of interest 8.50%
(March 31,2023: 8.00%)

The Company has provided guarantees for `595.91 in the form of Corporate guarantees to CITI, SBI and DBS Bank for the loans
obtained by Laurus Synthesis Private Limited, Laurus Bio Private Limited & Laurus Generics Inc, USA. (March 31, 2023: `440.33 in the
form of Corporate guarantees to CITI, SBI and DBS Bank for the loans obtained by Laurus Synthesis Private Limited, Laurus Bio Private
Limited & Laurus Generics Inc, USA).

As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount
pertaining to the Key Management personnel and their relatives is not ascertainable and, therefore, not included above.

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. This assessment is
undertaken each financial year through examining the financial position of the related party and the market in which the related party
operates. Outstanding balances at the year-end are unsecured.

34. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods. 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. In particular,
information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have
the most significant effect on the amounts recognised in the financial statements are disclosed in notes to financial statements.

(i) Taxes
During the year ended March 31, 2023, the Company elected to exercise the option permitted under Section 115BAA of the
Income-Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has
recognised provision for income tax for the year ended March 31, 2023 and remeasured its deferred tax assets/liabilities
based on the rate prescribed in the said Section.

Annual Report 2023-24 217

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(ii) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation
model, which is dependent on the terms and conditions of the grant. This estimation requires determination of the most
appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and
making assumptions about them. The Black Scholes valuation model has been used by the Management for share-based
payment transactions. The assumptions and models used for estimating fair value for share-based payment transactions
are disclosed in Note 29.

(iii) Defined employee benefit plans (Gratuity)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates for the respective countries. Further details about gratuity obligations are given in Note 28.

(iv) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow
(‘DCF’) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments. Refer note 37 and 38 for further disclosures.

(v) Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the
useful lives and residual values of all its property, plant and equipment estimated by the management. The management
believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant
and equipment, though these rates in certain cases are different from lives prescribed under Schedule II of the Companies
Act, 2013.

(vi) Impairment of investments

The Company reviews its carrying value of investments annually, or more frequently when there is an indication for
impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

218 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(vii) Recognition and measurement of other provisions:

The recognition and measurement of other provisions is based on the assessment of the probability of an outflow of
resources, and on past experience and circumstances known at the closing date. The actual outflow of resources at a future
date may therefore, vary from the amount included in other provisions.

(viii) Impairment of non-financial assets - Refer Note (2(l))

(ix) Inventories - Refer Note (2(k))
(x) Leases: whether an arrangement contains a lease; lease classification- Refer Note (2(i))
(xi) Contingent liabilities: Measurement and likelihood of occurrence of provisions and contingencies.- Refer Note (39 (c))
(xii) Revenue and receivables - Refer Note (2 (d) and 2(p))

35. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments:

Carrying value Fair value

Particulars
March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
Financial assets at fair value through profit & loss:
Investments 3.41 3.41 3.41 3.41
Derivative contracts 0.22 0.98 0.22 0.98
Financial assets at cost:
Investments 631.46 380.71 631.46 380.71
Financial assets at amortised cost:
Loans 233.10 71.09 233.10 71.09
Other financial assets 52.72 63.09 52.72 63.09
Trade receivables 1,640.50 1,487.42 1,640.50 1,487.42
Cash and cash equivalents 42.63 1.42 42.63 1.42
Other balances with banks 0.29 0.28 0.29 0.28
Financial liabilities at amortised cost:
Borrowings (Non-current and current) 2,049.06 1,681.38 2,049.06 1,681.38
Interest accrued 7.84 7.22 7.84 7.22
Trade payables 996.78 666.36 996.78 666.36
Capital creditors and others 31.49 136.82 31.49 136.82
Lease liabilities 60.76 32.88 60.76 32.88

The management assessed that cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments. Further, the management has assessed that fair
value of borrowings approximate their carrying amounts largely since they are carried at floating rate of interest.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

Annual Report 2023-24 219

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

36. Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at March 31, 2024:
Fair value measurement using
Significant Significant
Quoted prices in
Particulars Date of observable unobservable
Total active markets
valuation inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets at fair value through profit and loss:
Investments March 31, 2024 3.41 - - 3.41
Financial assets at fair value through profit and loss:
Derivative financial instruments March 31, 2024 0.22 - 0.22 -

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at March 31, 2023:
Fair value measurement using
Significant Significant
Quoted prices in
Particulars Date of observable unobservable
Total active markets
valuation inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets at fair value through profit and loss:
Investments March 31, 2023 3.41 - - 3.41
Financial assets at fair value through profit and loss:
Derivative financial instruments March 31, 2023 0.98 - 0.98 -

Measurement of fair value

Valuation techniques
The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for assets and liabilities carried at
fair value through profit or loss.

Type Valuation technique

Assets measured at fair value:
Investments Discounted cash flow method
Derivative financial instruments The fair value is determined using quoted forward exchange rates at the reporting date and present value
calculations based on high credit quality yield curve in reporting currency.

37. Financial risk management objectives and policies

Financial risk management framework
The Company is exposed primarily to credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and
interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of
the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

A Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a
continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments
that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial
instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the
Company result in material concentration of credit risk, except for trade receivables.

220 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Trade receivables:
The customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on the individual credit limits are defined in accordance with
this assessment and outstanding customer receivables are regularly monitored. Of the trade receivables balance, `538.10
in aggregate (as at March 31, 2023 `487.71) is due from the Company’s customers individually representing more than 5 %
of the total trade receivables balance and accounted for approximately 33% (March 31, 2023: 32%) of all the receivables
outstanding. The Company’ receivables turnover is quick and historically, there was no significant defaults on account of
those customer in the past. Ind AS requires an entity to recognise in profit or loss, the amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised
in accordance with Ind AS 109. The Company assesses at each date of statements of financial position whether a financial
asset or a group of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition. The Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit
loss experience and adjusted for forward-looking information.

Before accepting any new customer, the Company uses an internal credit scoring system to assess the potential customer’s
credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed on periodic basis.
The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the
provision matrix.

Exposure to credit risk:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk
includes the carrying amount of balances with trade receivables and other financial assets.
Loans are given to subsidiaries for the purpose of working capital and other business requirements.

Other than trade receivables and loans, the Company has no significant class of financial assets that is past due but
not impaired.

B Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:

Particulars Up to 1 Year 1 to 3 years 3 to 5 years > 5 years Total

March 31, 2024:
Non-current borrowings (including 248.34 462.60 27.93 - 738.87
current maturities)
Current borrowings 1,310.19 - - - 1,310.19
Interest accrued 7.84 - - - 7.84
Trade payables 996.78 - - - 996.78
Other payables 31.49 - - - 31.49
2,594.64 462.60 27.93 - 3,085.17
March 31, 2023:
Non-current borrowings (including 180.94 518.03 47.46 - 746.43
current maturities)
Current borrowings 934.95 - - - 934.95
Interest accrued 7.22 - - - 7.22
Trade payables 666.36 - - - 666.36
Other payables 136.82 - - - 136.82
1,926.29 518.03 47.46 - 2,491.79

Excludes lease liabilities. Refer note no. 39A for contractual cash flows relating leases

Annual Report 2023-24 221

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

C Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange
rates, interest rates, credit, liquidity and other market changes.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in
market interest rates. In order to optimise the Company’s position with regards to interest income and interest expenses and
to manage the interest rate risk, treasury performs a comprehensive corporate interest risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of
borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Company’s profit
before tax is affected through the impact on borrowings, as follows:

Change in basis points Effect on profit before tax

Particulars
Increase Decrease Decrease Increase
March 31, 2024
Indian Rupees 0.50% 0.50% (7.56) 7.56
US Dollars 0.50% 0.50% (1.88) 1.88
March 31, 2023
Indian Rupees 0.50% 0.50% (6.16) 6.16
US Dollars 0.50% 0.50% (3.36) 3.36

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities
are denominated in a currency other than the functional currency of the respective entities. Considering the countries
and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in
exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar against the functional currencies
of the Company. The Company, as per its risk management policy, uses derivative instruments primarily to hedge foreign
exchange. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange
rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies. The
information on derivative instruments is as follows:

a) Forward contract (Derivatives):

Forward contract outstanding as at Balance Sheet date:
March 31, 2024 Sell US $ 10,000,000 Designated as fair value hedge - receivables
March 31, 2024 Sell ZAR 2,74,87,587.24 Designated as fair value hedge - receivables
March 31, 2023 Sell US $ 45,000,000 Designated as fair value hedge - receivables

222 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

b) Details of Unhedged Foreign Currency Exposure:

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

March 31, 2024 March 31, 2023

Particulars Currency Amount in Amount in
Amount in ` Conversion rate Amount in ` Conversion rate
foreign currency foreign currency
Secured loans USD 32,207,468 268.53 83.37 44,274,390 364.01 82.22
Unsecured loans USD 6,344,535 52.90 83.37 7,322,340 60.20 82.22
Interest accrued USD 261,090 2.18 83.37 300,126 2.47 82.22
but not due on
borrowings
Trade payables USD 25,919,496 216.10 83.37 16,406,319 134.89 82.22
EURO 719,101 6.49 90.22 230,088 2.06 89.61
GBP 28,917 0.30 105.29 31,660 0.32 101.87
CHF - - 92.09 3,507 0.03 89.70
Capital creditors USD 306 0.00 83.37 91,608 0.75 82.22
GBP - - 105.29 13,887 0.14 101.87
EURO 44,808 0.40 90.22 5,391 0.05 89.61
Trade receivables USD 81,638,735 680.65 83.37 57,520,270 472.91 82.22
EURO 7,556,379 68.17 90.22 7,023,201 62.93 89.61
GBP 67,207 0.71 105.29 65,957 0.67 101.87
CAD 618,149 3.79 61.33 2,530,203 15.35 60.65
JPY - - 0.55 250,000 0.02 0.62
Cash and cash USD 5,077,586 42.33 83.37 64 0.00 82.22
equivalents*

*Amount less than Indian Rupees 100,000.

c) Foreign currency sensitivity:

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other
variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and
liabilities including foreign currency derivatives. The Company’s exposure to foreign currency changes for all other currencies is
not material.

Change in forex rate Effect on profit before tax

Particulars Increase/
Increase Decrease
(Decrease)
March 31, 2024
USD 1.00% 1.00% 1.83 (1.83)
EURO 1.00% 1.00% 0.61 (0.61)
March 31, 2023
USD 1.00% 1.00% (0.89) 0.89
EURO 1.00% 1.00% 0.61 (0.61)

Annual Report 2023-24 223

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

38. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the
shareholder value.

The Company manages its capital structure in consideration to the changes in economic conditions and the requirements of the
financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company
intends to keep the gearing ratio between 0.4 to 1.5. The Company includes within net debt, borrowings including interest accrued
on borrowings less cash and short-term deposits.

Particulars March 31, 2024 March 31, 2023

Borrowings including interest accrued on borrowings (Note 13) 2,056.90 1,688.60
Less: Cash and cash equivalents; other balances with banks (Note 10A & 10B) (42.92) (1.70)
Net debt 2,013.98 1,686.90
Equity 107.79 107.73
Other equity 4,099.26 3,949.09
Total equity 4,207.05 4,056.82
Gearing ratio (Net debt/ Total equity) 0.48 0.42

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2024.

39. Commitments and Contingencies

A. Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Operating lease commitments - Company as lessee

The Company’s lease asset classes primarily consist of leases for land. The Company recognises right-of-use asset representing its
right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured
at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs
to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it
is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested
for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date
of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined.
If that rate cannot be readily determined, the Company uses incremental borrowing rate.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease
term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these
leases are recognised as an expense on a straight-line basis over the lease term.

224 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Following are the changes in the carrying value of right of use assets for the year ended March 31, 2024 and March
31, 2023
Particulars March 31, 2024 March 31, 2023
Opening Balance 90.54 93.19
Additions 32.15 2.56
Depreciation (6.70) (5.21)
Closing Balance 115.99 90.54

The aggregate depreciation expense on ROU assets is included under depreciation and amortisation expense in the statement of
profit and loss

The following is the movement in lease liabilities during the year ended March 31, 2024 and March 31,2023
Particulars March 31, 2024 March 31, 2023
Opening Balance 32.88 33.44
Additions 32.15 2.56
Finance cost accrued during the year 3.14 2.67
Payment of lease liabilities (7.41) (5.79)
Closing Balance 60.76 32.88

The following is the break-up of current and non-current lease liabilities as at March 31, 2024 and March 31, 2023
Particulars March 31, 2024 March 31, 2023
Non-current lease liabilities 53.10 28.06
Current lease liabilities 7.66 4.82
Total 60.76 32.88

The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2024 and
March 31,2023 on discounted basis
Particulars March 31, 2024 March 31, 2023
Within one year 7.66 4.82
After one year but not more than five years 38.30 24.10
More than five years 14.80 3.96
Total 60.76 32.88

B. Commitments
Particulars March 31, 2024 March 31, 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for 157.85 160.96

C. Contingent liabilities
Particulars March 31, 2024 March 31, 2023
(i) Outstanding bank guarantees (excluding performance obligations) 51.27 63.00
(ii) Claims arising from disputes not acknowledged as debts - direct taxes 15.39 5.89
(iii) Claims arising from disputes not acknowledged as debts - indirect taxes 59.55 56.53
(iv) On account of provident fund liability 7.57 7.57
(v) Corporate guarantees 595.91 440.33

Annual Report 2023-24 225

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

40. Ratios
The following are analytical ratios for the year ended March 31, 2024 and March 31, 2023
March 31, March 31,
Particulars Numerator Denominator Variance Reasons for varaince
2024 2023
Current Ratio Current Assets Current Liabilities 1.29 1.51 (15%)
Debt-Equity Ratio Total Debt(1) Shareholder's Equity 0.49 0.42 17%
Debt Service Coverage Earnings available for Debt service(3) 2.61 4.47 (42%) The variance is due to decrese
Ratio debt service(2) in profits
Return on Equity (ROE) Net profit after taxes Average Shareholder's 5.4% 20.4% (73%) The variance is due to decrease
Equity in profits
Inventory Turnover Ratio Revenue from Average Inventory 2.95 3.54 (17%)
Operations
Trade Receivables Turnover Revenue from Average Receivables 3.08 4.19 (27%) The variance is on account of
Ratio Operations decrease in revenue increase in
average receivables
Trade Payables Turnover Purchases Average Trade Payables 2.96 3.36 (12%)
Ratio
Net Capital Turnover Ratio Revenue from Working Capital(4) 6.16 5.42 14%
Operations
Net Profit Ratio Net Profit Revenue from 4.6% 13.2% (65%) The variance is on account
Operations of decrease in Profit after tax
which is
primarily on account of decrease
in revenue
Return on Capital Earnings Before Interest Capital Employed(5) 7.2% 22.2% (67%) The variance is on account of
Employed (ROCE) and Taxes (EBIT) decrease in Profits and increase
in total debt which primarily
comprises of working capital
loans.
Return on Investment(6) Income generated from Investment N.A. N.A. -
investments

(1) Long Term borrowings + Short Term borrowings + interest accrued

(2) Net profit after tax + Depreciation and amortisation + Term loan Interest
(3) Term loan Interest + Principal repayments

(4) Current assets - current liabilities

(5) Networth + net total debt including interest accrued - cash and cash equivalents

(6) The Company is not having any market linked investments.

226 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

41. Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

ii) The Company does not have any transactions with companies struck off.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

vi) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
vii) 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

viii) The Company doesn’t have 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.

42. 
The Code on Social Security, 2020 (“Code”) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the
Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will
record any related impact in the period the Code becomes effective.

For and on behalf of the Board of Directors

LAURUS LABS LIMITED

Dr. Satyanarayana Chava V.V. Ravi Kumar

Executive Director & Chief Executive Director & Chief
Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Company Secretary

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Independent Auditors’ Report

To The Members of Basis for Opinion

Laurus Labs Limited We conducted our audit of the consolidated financial statements
in accordance with the Standards on Auditing (“SAs”) specified
Report on the Audit of the Consolidated Financial
under section 143 (10) of the Act. Our responsibilities under those
Statements
Standards are further described in the Auditor’s Responsibility for
Opinion the Audit of the Consolidated Financial Statements section of
We have audited the accompanying consolidated financial our report. We are independent of the Group and its associates
statements of Laurus Labs Limited (”the Parent”) and its in accordance with the Code of Ethics issued by the Institute of
subsidiaries, (the Parent and its subsidiaries together referred Chartered Accountants of India (“ICAI”) together with the ethical
to as “the Group”) which includes Group’s share of loss in its requirements that are relevant to our audit of the consolidated
associates which comprise the Consolidated Balance Sheet as at financial statements under the provisions of the Act and the
March 31, 2024, and the Consolidated Statement of Profit and Rules made thereunder, and we have fulfilled our other ethical
Loss (including Other Comprehensive Income), the Consolidated responsibilities in accordance with these requirements and the
Statement of Cash Flows and the Consolidated Statement of ICAI’s Code of Ethics. We believe that the audit evidence obtained
Changes in Equity for the year ended on that date, and notes by us and the audit evidence obtained by the other auditors in
to the financial statements, including a summary of material terms of their reports referred to in the sub-paragraphs (a) and (b)
accounting policies and other explanatory information. of the Other Matters section below, is sufficient and appropriate
to provide a basis for our audit opinion on the consolidated
In our opinion and to the best of our information and according
financial statements.
to the explanations given to us, and based on the consideration
of reports of the other auditors on separate financial statements Key Audit Matters
of the subsidiaries and associate referred to in the Other Matters
Key audit matters are those matters that, in our professional
section below, the aforesaid consolidated financial statements
judgement, were of most significance in our audit of the
give the information required by the Companies Act, 2013 (“the
consolidated financial statements of the current period. These
Act”) in the manner so required and give a true and fair view in
matters were addressed in the context of our audit of the
conformity with the Indian Accounting Standards prescribed
consolidated financial statements as a whole, and in forming our
under section 133 of the Act, (“Ind AS”) and other accounting
opinion thereon, and we do not provide a separate opinion on
principles generally accepted in India, of the consolidated state of
these matters. We have determined the matters described below
affairs of the Group as at March 31, 2024, and their consolidated
to be the key audit matters to be communicated in our report.
profit, their consolidated total comprehensive income, their
consolidated cash flows and their consolidated changes in equity
for the year ended on that date.

Sr.
Key Audit Matter Auditor’s Response
No.
1 Revenue Recognition – Refer Note 17 of consolidated Principal audit procedure performed included the following:
financial statements
We obtained an understanding of the revenue recognition process
The Parent recognises revenue from sale of products based and tested the Parent’s controls around the timely and accurate
on the terms and conditions of transactions which varies recording of sales transactions.
with different customers.
We have obtained an understanding of a sample of
For sale transactions in a certain period of time around the customer contracts.
Balance Sheet date, it is essential to ensure that the control
We tested the access and change management controls of the
of the goods have been transferred to the customers.
relevant information technology system in which shipments
As revenue recognition is subject to management’s are recorded.
judgement on whether the control of the goods have
Our test of revenue samples focused on sales recorded immediately
been transferred, we consider cut-off of revenue as a key
before the year-end, obtaining evidence to support the appropriate
audit matter.
timing of revenue recognition, based on terms and conditions set
out in sales contracts and delivery documents.

Information Other than the Financial Statements and Board’s report including annexures to Board’s report, Report
Auditors’ Report Thereon on Corporate Governance and Business Responsibility And
• The Parent’s Board of Directors is responsible for the other Sustainability Report, but does not include the consolidated
information. The other information comprises the information financial statements, standalone financial statements and
included in the Management Discussion and Analysis, our auditor’s report thereon. The Management Discussion and

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Analysis, Board’s report including annexures to Board’s report, In preparing the consolidated financial statements, the respective
Report on Corporate Governance and Business Responsibility Management and Board of Directors of the companies included
And Sustainability Report is expected to be made available to in the Group and of its associates are responsible for assessing the
us after the date of this auditor’s report. ability of the respective entities to continue as a going concern,
• Our opinion on the consolidated financial statements does not disclosing, as applicable, matters related to going concern and
cover the other information and will not express any form of using the going concern basis of accounting unless the respective
assurance conclusion thereon. Board of Directors either intend to liquidate their respective
entities or to cease operations, or has no realistic alternative but
• In connection with our audit of the consolidated financial
to do so.
statements, our responsibility is to read the other information
identified above when it becomes available, compare with the The respective Board of Directors of the companies included in the
financial statements of the subsidiaries and associate audited Group and of its associates and are also responsible for overseeing
by the other auditors, to the extent it relates to these entities the financial reporting process of the Group and of its associates.
and, in doing so, place reliance on the work of the other auditors
and consider whether the other information is materially Auditor’s Responsibility for the Audit of the
inconsistent with the consolidated financial statements or our Consolidated Financial Statements
knowledge obtained during the course of our audit or otherwise Our objectives are to obtain reasonable assurance about whether
appears to be materially misstated. Other information so far as the consolidated financial statements as a whole are free from
it relates to the subsidiaries and associate, is traced from their material misstatement, whether due to fraud or error, and to
financial statements audited by the other auditors. issue an auditor’s report that includes our opinion. Reasonable
• When we read the Management Discussion and Analysis, assurance is a high level of assurance, but is not a guarantee that
Board’s report including annexures to Board’s report, Report an audit conducted in accordance with SAs will always detect a
on Corporate Governance and Business Responsibility And material misstatement when it exists. Misstatements can arise
Sustainability Report, if we conclude that there is a material from fraud or error and are considered material if, individually or
misstatement therein, we are required to communicate the in the aggregate, they could reasonably be expected to influence
matter to those charged with governance as required under the economic decisions of users taken on the basis of these
SA 720 ‘The Auditor’s responsibilities Relating to Other consolidated financial statements.
Information’. As part of an audit in accordance with SAs, we exercise professional
Responsibilities of Management and Those Charged judgement and maintain professional skepticism throughout the
with Governance for the Consolidated Financial audit. We also:
Statements
• Identify and assess the risks of material misstatement of
The Parent’s Board of Directors is responsible for the matters the consolidated financial statements, whether due to fraud
stated in section 134(5) of the Act with respect to the preparation or error, design and perform audit procedures responsive to
of these consolidated financial statements that give a true and those risks, and obtain audit evidence that is sufficient and
fair view of the consolidated financial position, consolidated appropriate to provide a basis for our opinion. The risk of not
financial performance including other comprehensive income, detecting a material misstatement resulting from fraud is
consolidated cash flows and consolidated changes in equity higher than for one resulting from error, as fraud may involve
of the Group including its Associates in accordance with the collusion, forgery, intentional omissions, misrepresentations, or
accounting principles generally accepted in India, including the override of internal control.
Ind AS specified under section 133 of the Act. The respective
• Obtain an understanding of internal financial controls relevant
Board of Directors of the companies included in the Group and
to the audit in order to design audit procedures that are
of its associates are responsible for maintenance of adequate
appropriate in the circumstances. Under section 143(3)(i) of
accounting records in accordance with the provisions of the Act
the Act, we are also responsible for expressing our opinion on
for safeguarding the assets of the Group and its associates for
whether the Parent has adequate internal financial controls
preventing and detecting frauds and other irregularities; selection
with reference to consolidated financial statements in place
and application of appropriate accounting policies; making
and the operating effectiveness of such controls.
judgements and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal • Evaluate the appropriateness of accounting policies used
financial controls, that were operating effectively for ensuring the and the reasonableness of accounting estimates and related
accuracy and completeness of the accounting records, relevant to disclosures made by the management.
the preparation and presentation of the financial statements that • Conclude on the appropriateness of management’s use of the
give a true and fair view and are free from material misstatement, going concern basis of accounting and, based on the audit
whether due to fraud or error, which have been used for the evidence obtained, whether a material uncertainty exists
purpose of preparation of the consolidated financial statements related to events or conditions that may cast significant doubt
by the Directors of the Parent, as aforesaid. on the ability of the Group and its associates to continue as

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

a going concern. If we conclude that a material uncertainty in extremely rare circumstances, we determine that a matter
exists, we are required to draw attention in our auditor’s should not be communicated in our report because the adverse
report to the related disclosures in the consolidated financial consequences of doing so would reasonably be expected to
statements or, if such disclosures are inadequate, to modify outweigh the public interest benefits of such communication.
our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future Other Matters
events or conditions may cause the Group and its associates to (a) We did not audit the financial statements of five subsidiaries,
cease to continue as a going concern. whose financial statements reflect total assets of `238.74
• Evaluate the overall presentation, structure and content of the crores as at March 31, 2024, total revenues of `202.39 crores
consolidated financial statements, including the disclosures, and net cash outflows amounting to `16.27 crores for the
and whether the consolidated financial statements represent year ended on that date, as considered in the consolidated
the underlying transactions and events in a manner that financial statements. These financial statements have
achieves fair presentation. been audited by other auditors whose reports have been
furnished to us by the Management and our opinion on
• Obtain sufficient appropriate audit evidence regarding the
the consolidated financial statements, in so far as it relates
financial information of the entities or business activities
to the amounts and disclosures included in respect of
within the Group and its associates to express an opinion on
these subsidiaries, and our report in terms of subsection
the consolidated financial statements. We are responsible for
(3) of Section 143 of the Act, in so far as it relates to the
the direction, supervision and performance of the audit of
aforesaid subsidiaries is based solely on the reports of the
the financial statements of such entities or business activities
other auditors.
included in the consolidated financial statements of which we
are the independent auditors. For the other entities or business (b) The consolidated financial statements also include the
activities included in the consolidated financial statements, Group’s share of net loss after tax of `0.65 crores for the year
which have been audited by the other auditors, such other ended March 31, 2024, as considered in the consolidated
auditors remain responsible for the direction, supervision and financial statements, in respect of one associate whose
performance of the audits carried out by them. We remain financial statements have not been audited by us. These
solely responsible for our audit opinion. financial statements are unaudited and have been
furnished to us by the Management and our opinion on
Materiality is the magnitude of misstatements in the consolidated
the consolidated financial statements, in so far as it relates
financial statements that, individually or in aggregate, makes
to the amounts and disclosures included in respect of
it probable that the economic decisions of a reasonably
this associate, is based solely on such unaudited financial
knowledgeable user of the consolidated financial statements
statements. In our opinion and according to the information
may be influenced. We consider quantitative materiality and
and explanations given to us by the Management, these
qualitative factors in (i) planning the scope of our audit work
financial statements are not material to the Group.
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the consolidated Our opinion on the consolidated financial statements above and
financial statements. our report on Other Legal and Regulatory Requirements below, is
not modified in respect of the above matters with respect to our
We communicate with those charged with governance of the
reliance on the work done and the reports of the other auditors
Parent and such other entities included in the consolidated
and the financial statements certified by the Management.
financial statements of which we are the independent auditors
regarding, among other matters, the planned scope and timing of Report on Other Legal and Regulatory Requirements
the audit and significant audit findings, including any significant
1. As required by Section 143(3) of the Act, based on our audit
deficiencies in internal financial controls that we identify during
and on the consideration of the reports of the other auditors
our audit.
on the separate financial statements of the subsidiaries,
We also provide those charged with governance with a statement associate referred to in the Other Matters section above we
that we have complied with relevant ethical requirements report, to the extent applicable that:
regarding independence, and to communicate with them
a) We have sought and obtained all the information and
all relationships and other matters that may reasonably be
explanations which to the best of our knowledge and
thought to bear on our independence, and where applicable,
belief were necessary for the purposes of our audit of
related safeguards.
the aforesaid consolidated financial statements.
From the matters communicated with those charged with
b) In our opinion, proper books of account as required by
governance, we determine those matters that were of most
law maintained by the Group, its associates including
significance in the audit of the consolidated financial statements
relevant records relating to preparation of the aforesaid
of the current period and are therefore the key audit matters.
consolidated financial statements have been kept so
We describe these matters in our auditor’s report unless law or
far as it appears from our examination of those books
regulation precludes public disclosure about the matter or when,
of account.
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CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

c) The Consolidated Balance Sheet, the Consolidated ii) The Group did not have any material foreseeable
Statement of Profit and Loss including Other losses on long-term contrac ts including
Comprehensive Income, the Consolidated Statement derivative contracts.
of Cash Flows and the Consolidated Statement
iii) There were no amounts which were required to
of Changes in Equity dealt with by this Report are
be transferred to the Investor Education and
in agreement with the relevant books of account
Protection Fund by the Parent its subsidiary
maintained for the purpose of preparation of the
companies incorporated in India.
consolidated financial statements.
iv) (a) The respective Managements of the Parent,
d) In our opinion, the aforesaid consolidated financial
its subsidiaries and associates incorporated
statements comply with the Ind AS specified under
in India, whose financial statements
Section 133 of the Act.
have been audited under the Act, have
e) On the basis of the written representations received represented to us and to the other auditors of
from the directors of the Parent as on March 31, such subsidiaries, associates that, to the best
2024 taken on record by the Board of Directors of the of their knowledge and belief as disclosed in
Company and the reports of the statutory auditors the note 40 (vi) to the consolidated financial
of its subsidiary companies and associate companies statements, no funds have been advanced
incorporated in India, none of the directors of the Group or loaned or invested (either from borrowed
companies, its associate companies incorporated in funds or share premium or any other sources
India is disqualified as on March 31, 2024 from being or kind of funds) by the Parent or any of
appointed as a director in terms of Section 164 (2) of such subsidiaries and associates with the
the Act. understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
f) With respect to the adequacy of the internal financial
directly or indirectly lend or invest in other
controls with reference to consolidated financial
persons or entities identified in any manner
statements and the operating effectiveness of such
whatsoever by or on behalf of the Parent or
controls, refer to our separate Report in “Annexure A”
any of such subsidiaries and associates or
which is based on the auditors’ reports of the Parent,
provide any guarantee, security or the like
Subsidiary companies and associate company
on behalf of the Ultimate Beneficiaries.
incorporated in India. Our report expresses an
unmodified opinion on the adequacy and operating (b) The respective Managements of the Parent,
effectiveness of internal financial controls with its subsidiaries and associates which are
reference to consolidated financial statements of companies incorporated in India, whose
those companies. financial statements have been audited
under the Act, have represented to us and to
g) With respect to the other matters to be included in the
the other auditors of such subsidiaries and
Auditors’ Report in accordance with the requirements
associates respectively that, to the best of
of section 197(16) of the Act, as amended, in our
their knowledge and belief, as disclosed in
opinion and to the best of our information and
the note 40 (vii) to the consolidated financial
according to the explanations given to us and based
statements, no funds have been received by
on the auditor’s reports of subsidiary companies, the
the Parent or any of such subsidiaries and
remuneration paid by the Parent and such subsidiary
associates from any person(s) or entity(ies),
companies to their respective directors during the year
including foreign entities (“Funding
is in accordance with the provisions of section 197 of
Parties”), with the understanding, whether
the Act.
recorded in writing or otherwise, that the
h) With respect to the other matters to be included in Parent of such subsidiaries and associates
the Auditors’ Report in accordance with Rule 11 of shall, directly or indirectly, lend or invest in
the Companies (Audit and Auditors) Rules, 2014, other persons or entities identified in any
as amended in our opinion and to the best of our manner whatsoever by or on behalf of the
information and according to the explanations given Funding Party (“Ultimate Beneficiaries”) or
to us: provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
i) 
T he consolidated financial s tatement s
disclose the impact of pending litigations (c) Based on the audit procedures performed
on the consolidated financial position of the that have been considered reasonable and
Group Refer Note 39 (C) to the consolidated appropriate in the circumstances performed
financial statements. by us and that performed by the auditors

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

of the subsidiaries and associates which March 31, 2024 which has a feature of recording
are companies incorporated in India whose audit trail (edit log) facility and the same has
financial statements have been audited operated throughout the year for all relevant
under the Act, nothing has come to our transactions recorded in the software(s). Further,
or other auditor’s notice that has caused during the course of audit, we and respective
us or the other auditors to believe that the other auditor, whose report have been furnished
representations under sub-clause (i) and (ii) to us by the Management of the Parent Company,
of Rule 11(e), as provided under (a) and (b) have not come across any instance of the audit
above, contain any material misstatement. trail feature being tampered with.

v) (a) The first interim dividend declared and paid The financial statements of one associate
by the Parent during the year and until the company that is not material to the Consolidated
date of this report is in accordance with Financial Statements of the Group, have not been
section 123 of the Act, as applicable. audited under the provisions of the Act as of the
date of this report. Therefore, we are unable to
(b) The second interim dividend declared by
comment on the reporting requirement under
the Parent during the year is in accordance
Rule 11(g) of the Companies (Audit and Auditors)
with section 123 of the Companies Act
Rules, 2014 in respect of this associate.
2013 to the extent it applies to declaration
of dividend. However, the said dividend was As proviso to Rule 3(1) of the Companies
not due for payment on the date of this (Accounts) Rules, 2014 is applicable from
audit report. April 1, 2023, reporting under Rule 11 (g) of the
Companies (Audit and Auditors) Rules, 2014 on
(c) The interim dividend paid by the Parent
preservation of audit trail as per the statutory
during the year in respect of the same
requirements for record retention is not applicable
declared for the previous year is in
for the financial year ended March 31, 2024.
accordance with section 123 of the
Companies Act 2013 to the extent it applies 2. With respect to the matters specified in clause (xxi) of
to payment of dividend. paragraph 3 and paragraph 4 of the Companies (Auditors’
Report) Order, 2020 (“CARO”/ “the Order”) issued by the
vi) Based on our examination which included
Central Government in terms of Section 143(11) of the Act,
test checks performed by us on the Parent, its
according to the information and explanations given to us,
subsidiaries and associate Company incorporated
and based on the CARO reports issued by us and the auditors
in India and based on the other auditor’s report
of respective companies included in the consolidated
of its subsidiary company incorporated in India
financial statements to which reporting under CARO is
whose financial statements have been audited
applicable, as provided to us by the Management of the
under the Act, except for the instance mentioned
Parent Company, we report that there are no qualifications
below, the Parent Company, its subsidiary
or adverse remarks by the respective auditors in the CARO
companies and the associate Company
reports of the said respective companies included in the
incorporated in India have used accounting
consolidated financial statements except for the following:
software for maintaining their respective
books of account for the financial year ended

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Clause Number of CARO report

Name of the Company CIN Nature of relationship with qualification or adverse
remark
Laurus Synthesis Private Limited U24110TG2020PTC140333 Wholly Owned Subsidiary Clause (xvii)
Sriam Labs Private Limited U24239TG2002PTC038490 Wholly Owned Subsidiary Clause i(c)
Laurus Bio Private Limited U02423KA2005PTC036770 Subsidiary Clause i(c)
Immunoadoptive Cell Therapy Private Limited U74999MH2018PTC315497 Associate Clause (xvii)

Further, in respect of the following company included in the consolidated financial statements, whose audit under section 143 of the Act
has not yet been completed, the CARO report as applicable in respect of those companies are not available and consequently have not
been provided to us as on the date of this audit report:

Name of the Company CIN Nature of relationship

Ethan Energy India Private Limited U40100TG2018FTC125395 Associate

For Deloitte Haskins & Sells LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

C Manish Muralidhar
Partner
Place: Hyderabad (Membership No. 213649)
Date: April 25, 2024 (UDIN: 24213649BKCJEO5273)

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Annexure “A” to the Independent Auditors’ Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls with perform the audit to obtain reasonable assurance about whether
reference to consolidated financial statements under adequate internal financial controls with reference to consolidated
Clause (i) of Sub-section 3 of Section 143 of the financial statements was established and maintained and if such
Companies Act, 2013 (“the Act”) controls operated effectively in all material respects.
In conjunction with our audit of the consolidated financial Our audit involves performing procedures to obtain audit
statements of the Company as of and for the year ended evidence about the adequacy of the internal financial controls
March 31, 2024, we have audited the internal financial controls with reference to consolidated financial statements and their
with reference to consolidated financial statements of Laurus Labs operating effectiveness. Our audit of internal financial controls
Limited (hereinafter referred to as “Parent”) and its subsidiary with reference to consolidated financial statements included
Companies, which includes internal financial controls with obtaining an understanding of internal financial controls with
reference to consolidated financial statements of its subsidiaries reference to consolidated financial statements, assessing the risk
which are Companies incorporated in India and its associate that a material weakness exists, and testing and evaluating the
Company incorporated in India, as of that date. design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor’s
Management’s Responsibility for Internal Financial
judgement, including the assessment of the risks of material
Controls
misstatement of the financial statements, whether due to fraud
The respective Board of Directors of the Parent, its subsidiary or error.
companies and its associate companies, which are companies
incorporated in India, are responsible for establishing and We believe that the audit evidence we have obtained and the
maintaining internal financial controls with reference to audit evidence obtained by the other auditors of the subsidiary
consolidated financial statements based on the internal control companies and associate company which are companies
over financial reporting criteria established by the respective incorporated in India, in terms of their reports referred to in the
Companies considering the essential components of internal Other Matters paragraph below, is sufficient and appropriate
control stated in the Guidance Note on Audit of Internal Financial to provide a basis for our audit opinion on the internal financial
Controls Over Financial Reporting issued by the Institute of controls with reference to consolidated financial statements of the
Chartered Accountants of India (ICAI)”. These responsibilities Parent, its subsidiary companies and its associate company which
include the design, implementation and maintenance of adequate are companies incorporated in India.
internal financial controls that were operating effectively for
Meaning of Internal Financial Controls with reference
ensuring the orderly and efficient conduct of its business, including
to consolidated financial statements
adherence to the respective company’s policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, A company’s internal financial control with reference to
the accuracy and completeness of the accounting records, and the consolidated financial statements is a process designed to
timely preparation of reliable financial information, as required provide reasonable assurance regarding the reliability of financial
under the Companies Act, 2013. reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
Auditor’s Responsibility principles. A company’s internal financial control with reference
Our responsibility is to express an opinion on the internal financial to consolidated financial statements includes those policies and
controls with reference to consolidated financial statements of procedures that (1) pertain to the maintenance of records that,
the Parent, its subsidiary Companies and its associate Companies in reasonable detail, accurately and fairly reflect the transactions
which are companies incorporated in India, based on our audit. and dispositions of the assets of the company; (2) provide
We conducted our audit in accordance with the Guidance Note on reasonable assurance that transactions are recorded as necessary
Audit of Internal Financial Controls Over Financial Reporting (the to permit preparation of financial statements in accordance
“Guidance Note”) issued by the Institute of Chartered Accountants with generally accepted accounting principles, and that receipts
of India and the Standards on Auditing, prescribed under Section and expenditures of the company are being made only in
143(10) of the Companies Act, 2013, to the extent applicable to an accordance with authorisations of management and directors of
audit of internal financial controls with reference to consolidated the company; and (3) provide reasonable assurance regarding
financial statements. Those Standards and the Guidance Note prevention or timely detection of unauthorised acquisition, use,
require that we comply with ethical requirements and plan and or disposition of the company’s assets that could have a material
effect on the financial statements.

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Inherent Limitations of Internal Financial Controls Other Matters

with reference to consolidated financial statements Our aforesaid report under Section 143(3)(i) of the Act on the
Because of the inherent limitations of internal financial controls adequacy and operating effectiveness of the internal financial
with reference to consolidated financial statements, including controls with reference to consolidated financial statements in
the possibility of collusion or improper management override of so far as it relates to a subsidiary company, which is company
controls, material misstatements due to error or fraud may occur incorporated in India, is based solely on the corresponding report
and not be detected. Also, projections of any evaluation of the of the auditor of such Company incorporated in India.
internal financial controls with reference to consolidated financial
The Parent has consolidated financial information of an associate
statements to future periods are subject to the risk that the
company incorporated in India on the basis of unaudited financial
internal financial control with reference to consolidated financial
statements prepared by the management. In our opinion and
statements may become inadequate because of changes in
according to the information and explanations given to us by
conditions, or that the degree of compliance with the policies or
Management, such associate is not material to the Group.
procedures may deteriorate.
Our opinion is not modified in respect of the above matters.
Opinion
In our opinion to the best of our information and according to
For Deloitte Haskins & Sells LLP
the explanations given to us and based on the consideration
of the reports of the other auditors referred to in the Other Chartered Accountants
Matters paragraph below, Parent, its subsidiary companies (Firm’s Registration No. 117366W/W-100018)
which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls with reference
C Manish Muralidhar
to consolidated financial statements and such internal financial
Place: Hyderabad Partner
controls with reference to consolidated financial statements
were operating effectively as at March 31, 2024, based on the Date: April 25, 2024 (Membership No. 213649)
criteria for internal financial control with reference to consolidated
financial statements established by the respective companies
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered
Accountants of India.

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Consolidated Balance Sheet

as at March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Particulars Note March 31, 2024 March 31, 2023

ASSETS
Non-current assets
Property, plant and equipment 3 3,446.37 3,015.96
Right-of-use assets 39A 178.32 133.43
Capital work-in-progress 3 422.84 550.78
Goodwill 4 246.30 246.30
Other intangible assets 4 19.02 12.93
Financial assets
Investments 5A 123.98 49.90
Other financial assets 5C 47.38 49.41
Income tax assets (net) 16A 2.97 20.44
Other non-current assets 7A 64.88 119.57
Total non-current assets 4,552.06 4,198.72
Current assets
Inventories 8 1,845.41 1,684.81
Financial assets
Trade receivables 9 1,662.92 1,580.44
Cash and cash equivalents 10A 138.94 45.67
Other balances with banks 10B 2.71 2.79
Loans 5B 0.95 0.97
Other financial assets 5C 8.82 16.31
Other current assets 7B 175.22 130.69
Total current assets 3,834.97 3,461.68
Total assets 8,387.03 7,660.40
EQUITY AND LIABILITIES
Equity
Equity share capital 11 107.79 107.73
Other equity 4,003.16 3,929.80
Total equity attributable to equity holders of parent company 4,110.95 4,037.53
Non-controlling interests 4.62 11.13
Total equity 4,115.57 4,048.66
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 13A 798.23 761.42
Lease liabilities 39A 62.16 37.44
Other financial liabilities 13E 42.33 91.20
Provisions 15A 93.47 81.47
Deferred tax liability (net) 6 57.04 82.45
Other non-current liabilities 14A 105.95 125.50
Total non-current liabilities 1,159.18 1,179.48
Current liabilities
Financial liabilities
Borrowings 13B 1,708.82 1,210.55
Trade payables
-total outstanding dues of micro enterprises and small enterprises 13C 29.60 38.34
-total outstanding dues of creditors other than micro enterprises and small enterprises 13C 1,021.64 672.31
Lease liabilities 39A 8.19 5.68
Other financial liabilities 13D 138.76 192.33
Other current liabilities 14B 144.25 227.96
Provisions 15B 24.81 20.09
Income tax liabilities (net) 16B 36.21 65.00
Total current liabilities 3,112.28 2,432.26
Total - equity and liabilities 8,387.03 7,660.40
Summary of material accounting policies 2.2
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

236 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Profit and Loss

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars Note
March 31, 2024 March 31, 2023
I. INCOME
Revenue from operations 17 5,040.83 6,040.55
Other income 18 20.73 1.44
Total income ( I ) 5,061.56 6,041.99
II. EXPENSES
Cost of materials consumed 19 2,422.38 2,596.57
Purchase of traded goods 110.92 155.71
Changes in inventories of finished goods, work-in-progress and stock-in-trade 20 (100.88) 22.04
Employee benefits expense 21 639.93 580.64
Other expenses 22 1,190.98 1,093.40
Total expenses ( II ) 4,263.33 4,448.36
III. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) (I-II) 798.23 1,593.63
Depreciation and amortisation 3,4 & 39A 384.58 324.08
Finance income 23A (5.61) (4.56)
Finance costs 23B 182.90 165.17
IV. Profit before tax 236.36 1,108.94
V. Tax expense 27
Current tax 93.11 289.83
Deferred tax (24.96) 22.47
Total tax expense 68.15 312.30
VI. Profit for the year before share of loss from associates (IV-V) 168.21 796.64
VII. Share of loss from associates, net of tax (5.94) (3.21)
VIII. Profit for the year after share of loss from associates (VI-VII) 162.27 793.43
Other comprehensive income (OCI) 24
Items that will not be reclassified subsequently to profit or loss:
Remeasurement gains/(losses) on defined benefit plans (1.20) 0.75
Tax on remeasurement of defined benefit plans 0.31 (0.17)
(0.89) (0.58)
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations (1.98) (6.21)
(1.98) (6.21)
Total other comprehensive income/(loss) for the year, net of tax (2.87) (5.63)
Total comprehensive income for the year, net of tax 159.40 787.80
Profit for the year attributable to:
Equity holders of the parent company 160.55 790.11
Non-controlling interests 1.72 3.32
Total comprehensive income for the year attributable to:
Equity holders of the parent company 157.68 784.53
Non-controlling interests 1.72 3.27
Earnings per equity share `2/- each fully paid (March 31, 2023: `2/- each fully 25
paid)
Computed on the basis of total profit for the year
Basic (`) 2.98 14.69
Diluted (`) 2.97 14.64
Summary of material accounting policies 2.2

The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

Annual Report 2023-24 237

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Consolidated Statement of Changes in Equity

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

a) Equity share capital

Equity shares of `2/- each, fully paid up No. `
At April 01, 2022 537,359,335 107.47
Issued during the year - ESOP 1,291,590 0.26
At March 31, 2023 538,650,925 107.73
Issued during the year - ESOP 314,933 0.06
At March 31, 2024 538,965,858 107.79

b) Other equity
Reserves and surplus Other comprehensive income
Gross Re-
Employee obligation measurement Foreign Non-
Particulars Capital Securities Stock Retained liability gains or losses currency controlling Total
reserve Premium option Earnings to acquire on employee translation Interests
reserve noncontrolling defined reserve
interest benefit plans
At April 01, 2022 1.79 701.32 9.17 2,624.95 (83.20) (8.71) (1.60) 7.86 3,251.58
Profit for the year - - - 784.53 - - - 3.27 787.80
Expense arising from equity- - - 7.48 - - - - - 7.48
settled share-based payment
transactions
Transferred from stock options - 11.74 (4.57) - - - - - 7.17
outstanding
Dividend on equity shares - - - (107.47) - - - - (107.47)
Foreign currency translation - - - - - - (6.21) - (6.21)
reserve
Remeasurement on net defined - - - - - 0.58 - - 0.58
benefit liability, net of tax
At March 31, 2023 1.79 713.06 12.08 3,302.01 (83.20) (8.13) (7.81) 11.13 3,940.93
Profit for the year - - - 157.68 - - - 1.72 159.40
Expense arising from equity- - - 10.92 - - - - - 10.92
settled share-based payment
transactions
Transferred from stock options - 4.02 (1.53) - - - - - 2.49
outstanding
Dividend on equity shares - - - (86.18) - - - - (86.18)
Acquisition of Non-controlling - - - - - (8.23) (8.23)
interest
Gross obligation liability to - - - (58.56) 49.88 - - - (8.68)
acquire Non-controlling interest
(refer note no. 13E)
Foreign currency translation - - - - - - (1.98) - (1.98)
reserve
Remeasurement on net defined - - - - - (0.89) - - (0.89)
benefit liability, net of tax
At March 31, 2024 1.79 717.08 21.47 3,314.95 (33.32) (9.02) (9.79) 4.62 4,007.78
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

238 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Cash Flows

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Profit before tax 236.36 1,108.94
Cash flows from operating activities
Adjustments for:
Depreciation and amortisation 384.58 324.08
Loss on sale of Property, plant and equipment (net) 1.93 0.21
Interest income (5.61) (4.56)
Interest expenses 175.00 145.47
Share based payment expense 10.92 7.48
Net (gain) / loss on foreign exchange fluctuations (unrealised) (8.82) 12.42
Allowance for bad and doubtful advances and receivables 4.93 1.65
Provisions no longer required written back (0.01) (1.04)
Operating profit before working capital changes 799.28 1,594.65
Movement In working capital:
(Increase)/Decrease in inventories (151.31) 81.83
Increase in trade receivables (85.10) (227.86)
(Increase)/Decrease in financial and non-financial assets (38.50) 9.94
Increase/(Decrease) in trade payables 334.41 (168.87)
Decrease in financial, non-financial liabilities and provisions (88.52) (10.30)
Cash generated from operations 770.26 1,279.39
Income tax paid (104.57) (285.49)
Net cash flows from operating activities (A) 665.69 993.90
Cash flows used in investing activities
Purchase of property, plant and equipment, including intangible assets, capital work in progress and (678.31) (990.16)
capital advances
Proceeds from sale of property, plant and equipment 2.30 2.67
Movement in other bank balances (0.40) 9.17
Investment in associates (80.02) (22.30)
Acquisition of Non-controlling interest (71.60) -
Interest received 5.61 4.56
Net cash flows used in investing activities (B) (822.42) (996.06)
Net cash flows (used in)/ from financing activities
Proceeds from exercise of employee stock options 2.56 7.44
Repayment of long - term borrowings (216.69) (246.83)
Proceeds from long - term borrowings 363.86 383.50
Proceeds from short - term borrowings (net) 393.88 84.95
Payment of lease liabilities (33.29) (7.83)
Dividend paid (86.18) (107.47)
Interest paid (174.31) (140.40)
Net cash flows from / (used in) financing activities (C) 249.83 (26.64)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 93.10 (28.80)
Effect of exchange differences on cash and cash equivalents 0.17 (0.88)
Cash and cash equivalents at the beginning of the year 45.67 75.35
Cash and cash equivalents at the year end 138.94 45.67
Components of cash and cash equivalents:
Cash on hand 0.10 0.09
Balances with banks
On current accounts 121.71 19.25
On deposit accounts 17.13 26.33
Total cash and cash equivalents 138.94 45.67

The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants LAURUS LABS LIMITED
ICAI Firm Registration Number: 117366W/W-100018

C Manish Muralidhar Dr. Satyanarayana Chava V.V. Ravi Kumar

Partner Executive Director & Chief Executive Director & Chief
Membership No. 213649 Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Date: April 25, 2024 Company Secretary

Annual Report 2023-24 239

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

1. Corporate information Basis of consolidation

The consolidated financial statements comprise financial The Consolidated financial statements comprise the
statements of Laurus Labs Limited (the ‘Company’) and financial statements of the Group as at March 31, 2024 and
its subsidiaries (collectively, the ‘Group’) for the year March 31, 2023.
ended March 31, 2024. The Company is a public company
Control is achieved when the Group is exposed, or has rights,
domiciled in India and is incorporated under the provisions
to variable returns from its involvement with the investee
of the Companies Act applicable in India. The Company’s
and has the ability to affect those returns through its power
shares are listed on BSE Limited and National Stock
over the investee. Specifically, the Group controls an investee
Exchange of India Limited in India. The registered office
if and only if the Group has:
of the company is located at Laurus Enclave, Plot Office 01,
E. Bonangi Village, Parawada Mandal, Anakapalli District, • Power over the investee (i.e. existing rights that give it
Andhra Pradesh – 531021. the current ability to direct the relevant activities of the
The Group is principally engaged in offering a broad and investee).
integrated portfolio of Active Pharmaceuticals Ingredients • Exposure, or rights, to variable returns from its involvement
(API) including intermediates, Generic Finished dosage with the investee, and
forms (FDF) and Contract Research services to cater to the • The ability to use its power over the investee to affect
needs of the global pharmaceutical industry and to develop its returns.
novel enzyme solutions for Industrial Biotechnology and
Animal Origin Free recombinant proteins and enzymes for Generally, there is a presumption that a majority of voting
biopharma. Information on the Group’s structure is provided rights result in control. To support this presumption and when
in Note 37. Information on other related party relationships the Group has less than a majority of the voting or similar
of the Group is provided in Note 32. rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an
The consolidated financial statements were authorised for investee, including:
issue in accordance with a resolution of the directors on
April 25, 2024. • The contractual arrangement with the other vote holders
of the investee
2. Material accounting policies
• Rights arising from other contractual arrangements
2.1 Basis of preparation
• The Group’s voting rights and potential voting rights
(a) The financial statements of the Group have been
prepared in accordance with Indian Accounting The Group re-assesses whether or not it controls an investee
Standards (‘Ind AS’), under the historical cost except if facts and circumstances indicate that there are changes to
for certain financial instruments which are measured one or more of the three elements of control. Consolidation
at fair values at the end of each reporting period of a subsidiary begins when the Group obtains control over
as explained in the accounting policies below, the the subsidiary and ceases when the Group loses control of
provisions of the Companies Act, 2013 (‘the Act’) (to the subsidiary. Assets, liabilities, income and expenses of
the extent notified) and guidelines issued by Securities a subsidiary acquired or disposed of during the year are
and Exchange Board of India (SEBI). The Ind AS are included in the consolidated financial statements from the
prescribed under Section 133 of the Act read with Rule date the Group gains control until the date the Group ceases
3 of the Companies (Indian Accounting Standards) to control the subsidiary.
Rules, 2015 and relevant amendment rules issued there Consolidated financial statements are prepared using
after and presentation requirements of Division II of uniform accounting policies for like transactions and other
Schedule III to the Companies Act, 2013. events in similar circumstances. If a member of the group
The consolidated financial statements have been uses accounting policies other than those adopted in the
prepared on a historical cost except for certain financial consolidated financial statements for like transactions and
instruments that are measured at fair values at the end events in similar circumstances, appropriate adjustments
of each reporting period, as explained in accounting are made to that group member’s financial statements in
policies below. preparing the consolidated financial statements to ensure
conformity with the group’s accounting policies.
The financial statements are presented in Indian
Rupees and all values are rounded to the nearest crores,
except otherwise indicated.

240 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

The Group has following investments in subsidiaries and associate:

Principal place Investee relationship Proportion of ownership interest
of business
Name of Entity
and Country of March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
Incorporation
Sriam Labs Private Limited India Subsidiary Subsidiary 100% 100%
Laurus Synthesis Private Limited (Refer note v) India Subsidiary Subsidiary 100% 100%
Laurus Holdings Limited UK Subsidiary Subsidiary 100% 100%
Laurus Generics Inc. USA Step-down Step-down 100% 100%
subsidiary subsidiary
Laurus Generics GmbH Germany Step-down Step-down 100% 100%
subsidiary subsidiary
Laurus Generics SA (Pty) Ltd. South Africa Subsidiary Subsidiary 100% 100%
Laurus Bio Private Limited (Refer note iv) India Subsidiary Subsidiary 91.14% 76.60%
Laurus Specialty Chemicals Private Limited (Refer note i) India Subsidiary Subsidiary 100% 100%
Immuno Adopative Cell Therapy Private Limited (Refer India Associate Associate 34.89% 27.57%
note ii)
Ethan Energy India Private Limited (Refer note iii) India Associate Associate 26.00% 26.00%

i) During the year ended March 31, 2023, the Company b) Eliminate the carrying amount of the parent’s
incorporated wholly owned subsidiary, Laurus investment in each subsidiary and the parent’s portion
Specialty Chemicals Private Limited (LSCPL) in India on of equity of each subsidiary. Business combinations
December 01, 2022. policy explains how to account for any related goodwill.

ii) During the year ended March 31, 2024, Pursuant c) Eliminate in full intragroup assets and liabilities,
to investment agreement entered into by the equity, income, expenses and cash flows relating to
Company with Immunoadoptive Cell Therapy Private transactions between entities of the group (profits
Limited (ImmunoAct), the Company made further or losses resulting from intragroup transactions that
capital contribution towards Series B Compulsorily are recognised in assets, such as inventory and fixed
convertible preference shares (CCPS) amounting to assets, are eliminated in full). Intragroup losses may
`80.02 crores in lmmunoAct in terms of the aforesaid indicate an impairment that requires recognition in the
agreement. Consequent to additional acquisition, consolidated financial statements. Ind AS 12 Income
the total shareholding in ImmunoAct has increased Taxes applies to temporary differences that arise from
from 27.57% to 34.89% (As on March 31, 2023, the the elimination of profits and losses resulting from
Company holds 27.57%) intragroup transactions.

iii) During the year ended March 31, 2023, the Company d) 
Profit or loss and each component of other
entered into an investment agreement with Ethan comprehensive income (OCI) are attributed to the
Energy India Private Limited (“Ethan Energy”) to acquire equity holders of the parent of the Group and to the
26% stake, for agreed consideration of `3.90 crores. non-controlling interests.

iv) During the year ended March 31, 2024, the Company e) When necessary, adjustments are made to the financial
acquired additional 14.54% stake in Laurus Bio Private statements of subsidiaries to bring their accounting
Limited (LBPL) for a purchase consideration of `71.60 policies into line with the Group’s accounting policies.
crores. Consequently, the total shareholding in LBPL
A change in the ownership interest of a subsidiary, without
has increased from 76.60% to 91.14%.
a loss of control, is accounted for as an equity transaction. If
v) During the year ended March 31, 2024 , the Company the Group loses control over a subsidiary, it:
infused further equity into Laurus Synthesis Private
Limited by subscribing to rights issue offered for • Derecognises the assets (including goodwill) and liabilities
acquiring 7,600 equity shares of `10 each for a of the subsidiary
consideration of `99.13 crores. • Derecognises the carrying amount of any non-
controlling interests
(b) Consolidation procedure:
• Derecognises the cumulative translation differences
a) Combine like items of assets, liabilities, equity, income, recorded in equity
expenses and cash flows of the parent with those of
• Recognises the fair value of the consideration received
its subsidiaries.
• Recognises the fair value of any investment retained

Annual Report 2023-24 241

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

• Recognises any surplus or deficit in profit or loss acquisition date fair value and any resulting gain or loss is
• Reclassifies the parent’s share of components previously recognised in profit or loss or OCI.
recognised in OCI to profit or loss or retained earnings, Goodwill is initially measured at cost, being the excess of the
as appropriate, as would be required if the Group had aggregate of the consideration transferred and the amount
directly disposed of the related assets or liabilities. recognised for non-controlling interests, and any previous
2.2 Summary of material accounting policies interest held, over the net identifiable assets acquired and
liabilities assumed. If the fair value of the net assets acquired
(a) Business combinations and goodwill
is in excess of the aggregate consideration transferred, the
In accordance with Ind-AS 101 provisions related to first Group re-assesses whether it has correctly identified all of
time adoption, the Group has elected to apply Ind AS the assets acquired and all of the liabilities assumed and
accounting for business combinations prospectively from reviews the procedures used to measure the amounts to be
April 01, 2015. As such, Indian GAAP balances relating recognised at the acquisition date. If the reassessment still
to business combinations entered into before that date, results in an excess of the fair value of net assets acquired
including goodwill, have been carried forward with minimal over the aggregate consideration transferred, then the gain
adjustment. Similarly, such first time adoption exemption is is recognised in OCI and accumulated in equity as capital
also adopted for associate. reserve. However, if there is no clear evidence of bargain
Business combinations are accounted for using the purchase, the entity recognises the gain directly in equity as
acquisition method. The cost of an acquisition is measured capital reserve, without routing the same through OCI.
as the aggregate of the consideration transferred measured After initial recognition, goodwill is measured at cost less
at acquisition date fair value and the amount of any non- any accumulated impairment losses. For the purpose
controlling interests in the acquiree. For each business of impairment testing, goodwill acquired in a business
combination, the Group elects whether to measure the non- combination is, from the acquisition date, allocated to each
controlling interests in the acquiree at fair value or at the of the Group’s cash-generating units that are expected to
proportionate share of the acquiree’s identifiable net assets. benefit from the combination, irrespective of whether other
Acquisition-related costs are expensed as incurred. assets or liabilities of the acquiree are assigned to those units.
At the acquisition date, the identifiable assets acquired and A cash generating unit to which goodwill has been allocated
the liabilities assumed are recognised at their acquisition is tested for impairment annually, or more frequently when
date fair values. For this purpose, the liabilities assumed there is an indication that the unit may be impaired. If the
include contingent liabilities representing present obligation recoverable amount of the cash generating unit is less than
and they are measured at their acquisition fair values its carrying amount, the impairment loss is allocated first to
irrespective of the fact that outflow of resources embodying reduce the carrying amount of any goodwill allocated to the
economic benefits is not probable. However, the following unit and then to the other assets of the unit pro rata based
assets and liabilities acquired in a business combination are on the carrying amount of each asset in the unit.
measured at the basis indicated below:
Any impairment loss for goodwill is recognised in Statement
• Deferred tax assets or liabilities, and the assets or liabilities of Profit and Loss. An impairment loss recognised for goodwill
related to employee benefit arrangements are recognised is not reversed in subsequent periods.
and measured in accordance with Ind AS 12 Income Tax
Where goodwill has been allocated to a cash-generating
and Ind AS 19 Employee Benefits respectively.
unit and part of the operation within that unit is disposed
• Liabilities or equity instruments related to share based of, the goodwill associated with the disposed operation
payment arrangements of the acquiree or share based is included in the carrying amount of the operation when
payments arrangements of the Group entered into to determining the gain or loss on disposal. Goodwill disposed
replace share-based payment arrangements of the in these circumstances is measured based on the relative
acquiree are measured in accordance with Ind AS 102 values of the disposed operation and the portion of the cash-
Share-based Payments at the acquisition date. generating unit retained.
When the Group acquires a business, it assesses the financial
Investment in associates:
assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, An associate is an entity over which the Group has significant
economic circumstances and pertinent conditions as at the influence. Significant influence is the power to participate in
acquisition date. This includes the separation of embedded the financial and operating policy decisions of the investee
derivatives in host contracts by the acquiree. but is not control or joint control over those policies.

If the business combination is achieved in stages, any The results and assets and liabilities of associate are
previously held equity interest is re-measured at its incorporated in these Consolidated Financial Statements
using the equity method of accounting, except when

242 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

the investment, or a portion thereof, is classified as held for practical reasons, the group uses an average rate if
for sale, in which case it is accounted for in accordance the average approximates the actual rate at the date of
with Ind AS 105 – Non-current Assets Held for Sale and the transaction.
Discontinued Operations.
Monetary assets and liabilities denominated in foreign
(b) Current versus non-current classification currencies are translated at the functional currency spot
rates of exchange at the reporting date.
The Group presents assets and liabilities in the Balance
Sheet based on current/ non-current classification. An asset Non-monetary items that are measured in terms of historical
is treated as current when it is: cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
• Expected to be realised or intended to be sold or
consumed in normal operating cycle Exchange differences arising on settlement or translation of
monetary items are recognised in profit or loss except with
• Held primarily for the purpose of trading
the exception of exchange differences arising on monetary
• Expected to be realised within twelve months after the items that forms part of a reporting entity’s net investment
reporting period, or in a foreign operation are recognised in profit or loss in the
• Cash or cash equivalent unless restricted from being separate financial statements of the reporting entity or the
exchanged or used to settle a liability for at least twelve individual financial statements of the foreign operation, as
months after the reporting period appropriate. In the financial statements that include the
foreign operation and the reporting entity, such exchange
All other assets are classified as non-current.
differences are recognised initially in OCI. These exchange
A liability is current when: differences are reclassified from equity to profit or loss on
disposal of the net investment.
• It is expected to be settled in normal operating cycle
Non-monetary items that are measured in terms of historical
• It is held primarily for the purpose of trading
cost in a foreign currency are translated using the exchange
• It is due to be settled within twelve months after the rates at the dates of the initial transactions. Non-monetary
reporting period, or items measured at fair value in a foreign currency are
• There is no unconditional right to defer the settlement translated using the exchange rates at the date when the fair
of the liability for at least twelve months after the value is determined. The gain or loss arising on translation of
reporting period non-monetary items measured at fair value is treated in line
with the recognition of the gain or loss on the change in fair
The Group classifies all other liabilities as non-current.
value of the item (i.e., translation differences on items whose
Deferred tax assets and liabilities are classified as non- fair value gain or loss is recognised in OCI or profit or loss are
current assets and liabilities. also recognised in OCI or profit or loss, respectively).

The operating cycle is the time between the acquisition of Group Companies
assets for processing and their realisation in cash and cash
On consolidation, the assets and liabilities of foreign
equivalents. The Group has identified twelve months as its
operations are translated into functional currency at the
operating cycle.
rate of exchange prevailing at the reporting date and their
(c) Foreign currencies Statements of Profit or Loss are translated at exchange rates
prevailing at the dates of the transactions. For practical
The Group’s consolidated financial statements are
reasons, the Group uses an average rate to translate income
presented in Indian rupees, which is also the parent
and expense items, if the average rate approximates the
company’s functional currency. For each entity the Group
exchange rates at the date of transactions. The exchange
determines the functional currency and items included in the
differences arising on translation for consolidation are
financial statements of each entity are measured using that
recognised in OCI. On disposal of a foreign operation,
functional currency. The Group uses the direct method of
the component of OCI relating to that particular foreign
consolidation and on disposal of a foreign operation the gain
operation is recognised in Statement of Profit and Loss.
or loss that is reclassified to profit or loss reflects the amount
that arises from using this method. (d) Fair value measurement
Transactions and balances The Group measures financial instruments, such as,
derivatives at fair value at each balance sheet date.
Transactions in foreign currencies are initially recorded by
the Group at its functional currency spot rates at the date Fair value is the price that would be received to sell an
the transaction first qualifies for recognition. However, asset or paid to transfer a liability in an orderly transaction

Annual Report 2023-24 243

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

between market participants at the measurement date. The liability is also compared with relevant external sources to
fair value measurement is based on the presumption that determine whether the change is reasonable.
the transaction to sell the asset or transfer the liability takes
For the purpose of fair value disclosures, the Group has
place either:
determined classes of assets and liabilities on the basis of
• In the principal market for the asset or liability, or the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.
• In the absence of a principal market, in the most
advantageous market for the asset or liability (e) Revenue recognition
The principal or the most advantageous market must be Revenue from contracts with customers is recognised to the
accessible by the Group. The fair value of an asset or a liability extent that it is probable that the economic benefits will
is measured using the assumptions that market participants flow to the Group and the revenue can be reliably measured,
would use when pricing the asset or liability, assuming that regardless of when the payment is being made. When a
market participants act in their economic best interest. performance obligation is satisfied, the revenue is measured
at the transaction price which is consideration received or
A fair value measurement of a non-financial asset takes into
receivable, net of returns and allowances, trade discounts
account a market participant’s ability to generate economic
and volume rebates after taking into account contractually
benefits by using the asset in its highest and best use or by
defined terms of payment and excluding taxes or duties
selling it to another market participant that would use the
collected on behalf of the government. The Group derives
asset in its highest and best use.
revenues primarily from manufacture and sale of Active
The Group uses valuation techniques that are appropriate Pharma Ingredients (API) including intermediates, Generic
in the circumstances and for which sufficient data are Finished dosage forms (FDF) and Contract Research services
available to measure fair value, maximising the use of (together called as “Pharmaceuticals”).
relevant observable inputs and minimising the use of
The following is summary of significant accounting policies
unobservable inputs.
relating to revenue recognition. Further, refer note no. 17 for
All assets and liabilities for which fair value is measured disaggregate revenues from contracts with customers.
or disclosed in the consolidated financial statements are
categorised within the fair value hierarchy, described as Sale of products
follows, based on the lowest level input that is significant to The Group recognises revenue for supply of goods to
the fair value measurement as a whole: customers against orders received. The majority of contracts
that Group enters into relate to sales orders containing single
• Level 1: Quoted (unadjusted) market prices in active performance obligations for the delivery of pharmaceutical
markets for identical assets or liabilities products as per Ind AS 115. Product revenue is recognised
• Level 2: Valuation techniques for which the lowest level when control of the goods is passed to the customer. The
input that is significant to the fair value measurement is point at which control passes is determined based on the
directly or indirectly observable terms and conditions by each customer arrangement.
• Level 3: Valuation techniques for which the lowest level Revenue is not recognised until it is highly probable that a
input that is significant to the fair value measurement significant reversal in the amount of cumulative revenue
is unobservable recognised will not occur. Amount representing the profit
share component is recognised as revenue only to the extent
For assets and liabilities that are recognised in the that it is highly probable that a significant reversal will
consolidated financial statements on a recurring basis, the not occur.
Group determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation The Group also recognises revenue where goods are ready as
(based on the lowest level input that is significant to the per customer request and pending dispatch at the instance
fair value measurement as a whole) at the end of each of the customer. In such cases, the products are separately
reporting period. identified as belonging to the customer and the Group does
not hold the right to redirect the product to another customer.
The Company’s chief financial officer determines the On satisfaction of all performance obligations, invoice is
appropriate valuation techniques and inputs for fair value raised on the customer in accordance with customer request
measurements. In estimating the fair value of an asset or at regular payment terms.
a liability, the Group uses market-observable data to the
extent it is available. Where level 1 inputs are not available, Provisions for chargeback, rebates and discounts are
the Group engages third party qualified valuers to perform estimated and provided for in the year of sales and recorded
the valuation. Any change in the fair value of each asset and as reduction of revenue.

244 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Sale of services the taxation authorities. The tax rates and tax laws used
Revenue from services rendered, which primarily relate to compute the amount are those that are enacted or
to contract research, is recognised in the statement of substantively enacted, at the reporting date in the countries
profit and loss as the underlying services are performed. where the Group operates and generates taxable income.
Upfront non-refundable payments received under these Current income tax relating to items recognised outside
arrangements are deferred and recognised as revenue over profit or loss is recognised outside profit or loss (either in
the expected period over which the related services are other comprehensive income or in equity). Current tax items
expected to be performed. are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
Contract Liabilities
Management periodically evaluates positions taken in the
A contract liability is the obligation to transfer goods or tax returns with respect to situations in which applicable
services to a customer for which the Group has received tax regulations are subject to interpretation and establishes
consideration (or the amount is due) from the customer. If provision where appropriate.
a customer pays consideration before the Group transfers
goods or services to the customer, a contract liability is Deferred tax
recognised when the payment is made, or the payment is Deferred tax is provided using the liability method on
due (whichever is earlier). Contract liabilities are recognised temporary differences between the tax bases of assets and
as revenue when the Group performs under the contract. liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
Interest income
For all debt financial instruments measured either at Deferred tax liabilities are recognised for all taxable
amortised cost or at fair value through other comprehensive temporary differences, except:
income, interest income is recorded using the effective
• When the deferred tax liability arises from the initial
interest rate (EIR). EIR is the rate that exactly discounts
recognition of goodwill or an asset or liability in a
the estimated future cash payments or receipts over
transaction that is not a business combination and, at the
the expected life of the financial instrument or a shorter
time of the transaction, affects neither the accounting
period, where appropriate, to the gross carrying amount of
profit nor taxable profit or loss.
the financial asset or to the amortised cost of a financial
liability. Interest income is included in finance income in the • In respect of taxable temporary differences associated
Statement of Profit and Loss. with investments in subsidiaries and associate, when
the timing of the reversal of the temporary differences
Dividends can be controlled and it is probable that the temporary
Revenue is recognised when the Group’s right to receive the differences will not reverse in the foreseeable future.
payment is established, which is generally when shareholders Deferred tax assets are recognised for all deductible
approve the dividend. temporary differences, the carry forward of unused tax
credits (MAT Credit) and any unused tax losses. Deferred tax
Government grants
assets are recognised to the extent that it is probable that
Government grants are recognised where there is reasonable taxable profit will be available against which the deductible
assurance that the grant will be received and all attached temporary differences, and the carry forward of unused tax
conditions will be complied with. When the grant relates to credits and unused tax losses can be utilised, except:
an expense item, it is recognised as income on a systematic
basis over the periods that the related costs, for which it is • When the deferred tax asset relating to the deductible
intended to compensate, are expensed. When the grant temporary difference arises from the initial recognition of
relates to an asset, it is recognised as income in equal an asset or liability in a transaction that is not a business
amounts over the expected useful life of the related asset. combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
Export incentives are recognised as income when the right to
receive credit as per the terms of the scheme is established in • In respect of deductible temporary differences associated
respect of the exports made and where there is no significant with investments in subsidiaries and associate, deferred
uncertainty regarding the ultimate collection of the relevant tax assets are recognised only to the extent that it is
export proceeds. probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available
(f) Taxes against which the temporary differences can be utilised.
Current income tax The carrying amount of deferred tax assets is reviewed at
Current income tax assets and liabilities are measured each reporting date and reduced to the extent that it is no
at the amount expected to be recovered from or paid to longer probable that sufficient taxable profit will be available

Annual Report 2023-24 245

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

to allow all or part of the deferred tax asset to be utilised. its previously assessed standard of performance or extends
Unrecognised deferred tax assets are re-assessed at each its estimated useful life. Freehold land is not depreciated.
reporting date and are recognised to the extent that it has
Depreciation is calculated on a straight-line basis over the
become probable that future taxable profits will allow the
estimated useful lives of the assets as follows:
deferred tax asset to be recovered.
Factory buildings : 30 years
Deferred tax assets and liabilities are measured at the tax
Other buildings : 60 years
rates that are expected to apply in the period/ year when
Plant and equipment : 5 to 20 years
the asset is realised or the liability is settled, based on tax
rates and tax laws that have been enacted or substantively Furniture and fixtures : 10 years
enacted at the reporting date. Vehicles : 4 to 5 years
Computers : 3 to 6 years
Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other The Group, based on technical assessment and
comprehensive income or in equity). Deferred tax items are management estimate, depreciates certain items of plant
recognised in correlation to the underlying transaction either and equipment and vehicles over estimated useful lives
in OCI or directly in equity. which are different from the useful life prescribed in Schedule
II to the Companies Act, 2013. The management believes
Deferred tax assets and deferred tax liabilities are offset if a that these estimated useful lives are realistic and reflect fair
legally enforceable right exists to set off current tax assets approximation of the period over which the assets are likely
against current tax liabilities and the deferred taxes relate to to be used.
the same taxable entity and the same taxation authority.
An item of property, plant and equipment and any significant
(g) Property, plant and equipment part initially recognised is derecognised upon disposal or
Under the previous GAAP (Indian GAAP), property, plant and when no future economic benefits are expected from its
equipment and capital wok in progress were carried in the use or disposal. Any gain or loss arising on derecognition
Balance Sheet at cost of acquisition. The Group has elected of the asset (calculated as the difference between the net
to regard those values of property, plant and equipment as disposal proceeds and the carrying amount of the asset) is
deemed cost at the date of the acquisition since there is no included in the Statement of Profit and Loss when the asset
change in the functional currency as at April 01, 2015 (date is derecognised.
of transition to Ind AS) on the date of transition to Ind AS. The residual values, useful lives and methods of depreciation
The Group has also determined that cost of acquisition or of property, plant and equipment are reviewed at each
construction at deemed cost as at April 01, 2015. financial year end and adjusted prospectively/retrospectively,
Property, plant and equipment is stated at cost, net of as appropriate.
accumulated depreciation and accumulated impairment
(h) Intangible assets
losses, if any. Such cost includes the cost of replacing part
of the plant and equipment and borrowing costs for long- Intangible assets acquired separately are measured on initial
term construction projects if the recognition criteria are recognition at cost. The cost of intangible assets acquired
met. When significant parts of plant and equipment are in a business combination is their fair value at the date of
required to be replaced at intervals, the Group depreciates acquisition. Following initial recognition, intangible assets
them separately based on their specific useful lives. Likewise, are carried at cost less any accumulated amortisation and
when a major inspection is performed, its cost is recognised accumulated impairment losses.
in the carrying amount of the plant and equipment as a
Computer Software
replacement if the recognition criteria are satisfied. All
other expenses on existing property, plant and equipment, Costs relating to software, which is acquired, are capitalised
including day-to-day repair and maintenance expenditure and amortised on a straight-line basis over their estimated
and cost of replacing parts, are charged to the Statement useful lives of five years.
of Profit and Loss for the period during which such expenses Gains or losses arising from derecognition of an intangible
are incurred. asset are measured as the difference between the net
Capital work in progress is stated at cost, net of accumulated disposal proceeds and the carrying amount of the asset and
impairment loss, if any. are recognised in the Statement of Profit and Loss when the
asset is derecognised.
Subsequent expenditure related to an item of property,
plant and equipment is added to its book value only if it Amortisation method, useful lives and residual values are
increases the future benefits from the existing asset beyond reviewed at the end of each financial year and adjusted if
appropriate. The amortisation period and the amortisation

246 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

method for an intangible asset with a finite useful life The right-of-use assets are initially recognised at cost, which
are reviewed at least at the end of each reporting period. comprises the initial amount of the lease liability adjusted for
Changes in the expected useful life or the expected pattern any lease payments made at or prior to the commencement
of consumption of future economic benefits embodied in date of the lease plus any initial direct costs less any lease
the asset are considered to modify the amortisation period incentives. They are subsequently measured at cost less
or method, as appropriate, and are treated as changes accumulated depreciation and impairment losses.
in accounting estimates. The amortisation expense on
Right-of-use assets are depreciated from the commencement
intangible assets with finite lives is recognised in the
date on a straight-line basis over the lease term and useful
Statement of Profit and Loss unless such expenditure forms
life of the underlying asset. The lease liability is initially
part of carrying value of another asset.
measured at amortised cost at the present value of the
(i) Leases future lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily
The Group evaluates if an arrangement qualifies to be a
determinable, using the incremental borrowing rates in
lease as per the requirements of Ind AS 116. Identification
the country of domicile of these leases. Lease liabilities are
ofa lease requires significant judgement. A contract is,
remeasured with a corresponding adjustment to the related
or contains, a lease if the contract conveys the right to
right of use asset if the Group changes its assessment if
control the use of an identified asset for a period of time in
whether it will exercise an extension or a termination option.
exchange for consideration. The determination of whether
an arrangement is (or contains) a lease is based on the Lease liability and ROU asset have been separately
substance of the arrangement at the inception of the lease. presented in the Balance Sheet and lease payments have
The arrangement is, or contains, a lease if fulfilment of the been classified as financing cash flows.
arrangement is dependent on the use of a specific asset
or assets and the arrangement conveys a right to use the Group as a lessor
asset or assets, even if that right is not explicitly specified in Leases in which the Group does not transfer substantially all
an arrangement. the risks and rewards of ownership of an asset are classified
as operating leases. Rental income from operating lease
Group as a lessee is recognised on a straight-line basis over the term of the
The Group assesses whether a contract contains a lease, at relevant lease. Initial direct costs incurred in negotiating
inception of a contract. A contract is, or contains, a lease if the and arranging an operating lease are added to the carrying
contract conveys the right to control the use of an identified amount of the leased asset and recognised over the lease
asset for a period of time in exchange for consideration. To term on the same basis as rental income. Contingent rents
assess whether a contract conveys the right to control the are recognised as revenue in the period in which they
use of an identified asset, the Group assesses whether: (i) the are earned.
contract involves the use of an identified asset (ii) the Group
Leases are classified as finance leases when substantially all
has substantially all of the economic benefits from use of
of the risks and rewards of ownership transfer from the Group
the asset through the period of the lease and (iii) the Group
to the lessee. Amounts due from lessees under finance leases
has the right to direct the use of the asset. The Group uses
are recorded as receivables at the Group’s net investment in
significant judgement in assessing the lease term (including
the leases. Finance lease income is allocated to accounting
anticipated renewals) and the applicable discount rate. The
periods so as to reflect a constant periodic rate of return on
determination of whether an arrangement is (or contains)
the net investment outstanding in respect of the lease.
a lease is based on the substance of the arrangement at
the inception of the lease. The arrangement is, or contains, (j) Borrowing costs
a lease if fulfilment of the arrangement is dependent on
Borrowing costs directly attributable to the acquisition,
the use of a specific asset or assets and the arrangement
construction or production of an asset that necessarily takes
conveys a right to use the asset or assets, even if that right is
a substantial period of time to get ready for its intended use
not explicitly specified in an arrangement.
or sale are capitalised as part of the cost of the asset. All other
At the date of commencement of the lease, the Group borrowing costs are expensed in the period in which they
recognises a right-of-use asset (“ROU”) and a corresponding occur. Borrowing costs consist of interest and other costs that
lease liability for all lease arrangements in which it is a lessee, an entity incurs in connection with the borrowing of funds.
except for leases with a term of twelve months or less (short- Borrowing cost also includes exchange differences to the
term leases) and low value leases. For these short-term and extent regarded as an adjustment to the borrowing costs.
low value leases, the Group recognises the lease payments
as an operating expense on a straight-line basis over the
term of the lease.

Annual Report 2023-24 247

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

(k) Inventories The Group bases its impairment calculation on detailed

Inventories are valued at the lower of cost and net realisable budgets and forecast calculations, which are prepared
value. Cost is determined on weighted average basis. separately for each of the Group’s CGUs to which the
individual assets are allocated.
Costs incurred in bringing each product to its present location
and condition are accounted for as follows: Impairment losses, including impairment on inventories,
are recognised in the Statement of Profit and Loss. For
• Raw materials and packing material: Materials and other assets excluding goodwill, an assessment is made at each
items held for use in the production of inventories are reporting date to determine whether there is an indication
not written down below cost if the finished products in that previously recognised impairment losses no longer
which they will be incorporated are expected to be sold exist or have decreased. If such indication exists, the
at or above cost. Cost includes cost of purchase and other Group estimates the asset’s or CGU’s recoverable amount.
costs incurred in bringing the inventories to their present A previously recognised impairment loss is reversed only
location and condition. if there has been a change in the assumptions used to
• Finished goods and work in progress: cost includes determine the asset’s recoverable amount since the last
cost of direct materials and labour and a proportion of impairment loss was recognised. The reversal is limited so
manufacturing overheads based on the normal operating that the carrying amount of the asset does not exceed its
capacity, but excluding borrowing costs. recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had
• Traded goods and spare parts: cost includes cost of
no impairment loss been recognised for the asset in prior
purchase and other costs incurred in bringing the
periods/ years. Such reversal is recognised in the Statement
inventories to their present location and condition.
of Profit and Loss.
• Stores and spares are valued at the lower of cost and net
realisable value. Goodwill is tested for impairment annually and when
circumstances indicate that the carrying value may
Net realisable value is the estimated selling price in the be impaired.
ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make Impairment is determined for goodwill by assessing the
the sale. recoverable amount of each CGU (or group of CGUs) to
which the goodwill relates. When the recoverable amount of
(l) Impairment of non-financial assets the CGU is less than its carrying amount, an impairment loss
The Group assesses, at each reporting date, whether there is recognised. Impairment losses relating to goodwill cannot
is an indication that an asset may be impaired. If any be reversed in future periods.
indication exists, or when annual impairment testing for an
(m) Provisions
asset is required, the Group estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of an Provisions are recognised when the Group has a present
asset’s or cash-generating unit’s (CGU) fair value less costs obligation (legal or constructive) as a result of a past event,
of disposal and its value in use. Recoverable amount is it is probable that an outflow of resources embodying
determined for an individual asset, unless the asset does not economic benefits will be required to settle the obligation
generate cash inflows that are largely independent of those and a reliable estimate can be made of the amount of
from other assets or groups of assets. When the carrying the obligation. When the Group expects some or all of a
amount of an asset or CGU exceeds its recoverable amount, provision to be reimbursed, for example, under an insurance
the asset is considered impaired and is written down to its contract, the reimbursement is recognised as a separate
recoverable amount. asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
In assessing value in use, the estimated future cash flows are Statement of Profit and Loss net of any reimbursement.
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time If the effect of the time value of money is material,
value of money and the risks specific to the asset. In provisions are discounted using a current pre-tax rate that
determining fair value less costs of disposal, recent market reflects, when appropriate, the risks specific to the liability.
transactions are taken into account. If no such transactions When discounting is used, the increase in the provision due
can be identified, an appropriate valuation model is used. to the passage of time is recognised as a finance cost.
These calculations are corroborated by valuation multiples,
(n) Retirement and other employee benefits
quoted share prices for publicly traded companies or other
available fair value indicators. Retirement benefit in the form of provident fund is a defined
contribution scheme. The Group has no obligation, other
than the contribution payable to the provident fund. The

248 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Group recognises contribution payable to the provident (o) Share-based payments

fund scheme as an expense, when an employee renders the Employees of the Group receive remuneration in the form of
related service. If the contribution payable to the scheme for share-based payments, whereby employees render services
service received before the balance sheet date exceeds the as consideration for equity instruments.
contribution already paid, the deficit payable to the scheme
is recognised as a liability after deducting the contribution Equity-settled transactions
already paid. If the contribution already paid exceeds the The cost of equity-settled transactions is determined by the
contribution due for services received before the balance fair value at the date when the grant is made using Black
sheet date, then excess is recognised as an asset to the Scholes valuation model.
extent that the pre-payment will lead to, for example, a
reduction in future payment or a cash refund. That cost is recognised, together with a corresponding
increase in share-based payment reserves in equity, over the
The Group operates a defined benefit gratuity plan in India, period in which the performance and/or service conditions
which requires contributions to be made to a separately are fulfilled in employee benefits expense. The cumulative
administered fund by a third party. expense recognised for equity-settled transactions at each
The cost of providing benefits under the defined benefit plan reporting date until the vesting date reflects the extent to
is determined based on projected unit credit method. which the vesting period has expired and the Group’s best
estimate of the number of equity instruments that will
Remeasurements, comprising of actuarial gains and losses, ultimately vest. The Statement of Profit and Loss expense or
the effect of the asset ceiling, excluding amounts included in credit for a period represents the movement in cumulative
net interest on the net defined benefit liability and the return expense recognised as at the beginning and end of that
on plan assets (excluding amounts included in net interest on period and is recognised in employee benefits expense.
the net defined benefit liability), are recognised immediately
in the Balance Sheet with a corresponding debit or credit Service and non-market performance conditions are not
to retained earnings through Other comprehensive income taken into account when determining the grant date fair
(“OCI”) in the period in which they occur. Remeasurements value of awards, but the likelihood of the conditions being
are not reclassified to Statement of Profit and Loss in met is assessed as part of the Group’s best estimate of
subsequent periods. the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the
Past service costs are recognised in profit or loss on the grant date fair value.
earlier of:
The dilutive effect of outstanding options is reflected as
• The date of the plan amendment or curtailment, and additional share dilution in the computation of diluted
• The date that the Group recognises related earnings per share.
restructuring costs
(p) Financial instruments
Net interest is calculated by applying the discount rate to the A financial instrument is any contract that gives rise to a
net defined benefit liability or asset. The Group recognises financial asset of one entity and a financial liability or equity
the following changes in the net defined benefit obligation instrument of another entity.
as an expense in the Statement of Profit and Loss:
Financial assets:
• Service costs comprising current service costs, past-service
Initial recognition and measurement
costs, gains and losses on curtailments and non-routine
settlements; and All financial assets are recognised initially at fair value plus, in
the case of financial assets not recorded at fair value through
• Net interest expense or income
profit or loss, transaction costs that are attributable to the
The Group treats accumulated leaves which are to be settled acquisition of the financial asset. However, trade receivables
after 12 months as a long-term employee benefit and that do not contain a siginficant financing component are
accumulated leaves which are to be settled in the next 12 measured at transaction price. Purchases or sales of financial
months as a short-term employee benefit for measurement assets that require delivery of assets within a time frame
purposes. Such accumulated leaves are provided for established by regulation or convention in the market place
based on an actuarial valuation using the projected unit (regular way trades) are recognised on the trade date, i.e., the
credit method at the year-end. Actuarial gains/losses are date that the Group commits to purchase or sell the asset.
immediately taken to the Statement of Profit and Loss and
are not deferred. The Group presents the entire liability in Subsequent measurement
respect of leave as a current liability in the balance sheet, For purposes of subsequent measurement, a ‘debt
since it does not have an unconditional right to defer its instrument’ is measured at the amortised cost if both the
settlement beyond 12 months after the reporting date. following conditions are met:

Annual Report 2023-24 249

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

a) The asset is held within a business model whose a) the rights to receive cash flows from the asset have
objective is to hold assets for collecting contractual expired, or
cash flows, and
b) the Group has transferred its rights to receive cash flows
b) Contractual terms of the asset give rise on specified from the asset or has assumed an obligation to pay
dates to cash flows that are solely payments the received cash flows in full without material delay
of principal and interest (SPPI) on the principal to a third party under a ‘pass-through’ arrangement;
amount outstanding. and either

After initial measurement, such financial assets are i. the Group has transferred substantially all the
subsequently measured at amortised cost using the risks and rewards of the asset, or
effective interest rate (EIR) method. Amortised cost is
ii. the Group has neither transferred nor retained
calculated by taking into account any discount or premium
substantially all the risks and rewards of the asset,
on acquisition and fees or costs that are an integral part of
but has transferred control of the asset.
the EIR. The EIR amortisation is included in finance income
in the profit or loss. This category generally applies to trade When the Group has transferred its rights to receive cash
and other receivables. flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has
For purposes of subsequent measurement, Any debt
retained the risks and rewards of ownership. When it
instrument, which does not meet the criteria for
has neither transferred nor retained substantially all
categorisation as at amortised cost or as FVTOCI, is
of the risks and rewards of the asset, nor transferred
classified as at FVTPL. FVTPL is a residual category for
control of the asset, the Group continues to recognise
debt instruments.
the transferred asset to the extent of the Group’s
In addition, the group may elect to designate a debt continuing involvement. In that case, the Group also
instrument, which otherwise meets amortised cost or FVTOCI recognises an associated liability. The transferred asset
criteria, as at FVTPL. However, such election is allowed only if and the associated liability are measured on a basis
doing so reduces or eliminates a measurement or recognition that reflects the rights and obligations that the Group
inconsistency (referred to as ‘accounting mismatch’). The has retained.
group has not designated any debt instrument as at FVTPL
Continuing involvement that takes the form of a
due to recognition inconsistency.
guarantee over the transferred asset is measured at the
Debt instruments included within the FVTPL category are lower of the original carrying amount of the asset and
measured at fair value with all changes recognised in the the maximum amount of consideration that the Group
Statement of Profit and Loss. could be required to repay.

Further, All equity investments in scope of Ind AS 109 are Impairment of financial assets
measured at fair value. For equity instruments which are not
In accordance with Ind AS 109, the Group applies expected
held for trading, the group may make an irrevocable election
credit loss (ECL) model for measurement and recognition of
to present in other comprehensive income subsequent
impairment loss on the following financial assets and credit
changes in the fair value. The group makes such election
risk exposure:
on an instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable. If the group a) Financial assets that are debt instruments, and are
decides to classify an equity instrument as at FVTOCI, measured at amortised cost e.g., loans, deposits and
then all fair value changes on the instrument, excluding bank balances.
dividends, are recognised in the OCI. There is no recycling of
b) Trade receivables that result from transactions that are
the amounts from OCI to P&L, even on sale of investment.
within the scope of Ind AS 115.
However, the group may transfer the cumulative gain or
loss within equity. Equity instruments included within the The Group follows ‘simplified approach’ for recognition of
FVTPL category are measured at fair value with all changes impairment loss. The application of simplified approach
recognised in the Statement of Profit and Loss. does not require the Group to track changes in credit risk.
Rather, it recognises impairment loss allowance based on
Derecognition lifetime ECLs at each reporting date, right from its initial
A financial asset (or, where applicable, a part of a financial recognition. For recognition of impairment loss on other
asset or part of a group of similar financial assets) is primarily financial assets and risk exposure, the Group determines that
derecognised (i.e. removed from the Group’s balance whether there has been a significant increase in the credit
sheet) when: 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

250 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

ECL is used. If, in a subsequent period, credit quality of the The Group’s financial liabilities include trade and other
instrument improves such that there is no longer a significant payables, loans and borrowings including bank overdrafts,
increase in credit risk since initial recognition, then the entity and derivative financial instruments.
reverts to recognising impairment loss allowance based on
12-month ECL. Subsequent measurement
The measurement of financial liabilities depends on their
Lifetime ECL are the expected credit losses resulting from all
classification, as described below:
possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL Financial liabilities at fair value through profit or loss
which results from default events that are possible within 12
Financial liabilities at fair value through profit or loss include
months after the reporting date.
financial liabilities designated upon initial recognition as at
ECL is the difference between all contractual cash flows that fair value through profit or loss.
are due to the Group in accordance with the contract and
Financial liabilities designated upon initial recognition at
all the cash flows that the entity expects to receive (i.e., all
fair value through profit or loss are designated as such at
cash shortfalls), discounted at the original effective interest
the initial date of recognition, and only if the criteria in Ind
rate. When estimating the cash flows, an entity is required
AS 109 are satisfied. For liabilities designated as FVTPL, fair
to consider:
value gains/ losses attributable to changes in own credit risk
• All contractual terms of the financial instrument are recognised in OCI. These gains/ loss are not subsequently
(including prepayment, extension and similar options) transferred to P&L. However, the Group may transfer the
over the expected life of the financial instrument. cumulative gain or loss within equity. All other changes in
However, in rare cases when the expected life of the fair value of such liability are recognised in the Statement of
financial instrument cannot be estimated reliably, then Profit and Loss. The Group has not designated any financial
the entity is required to use the remaining contractual liability as at fair value through profit and loss.
term of the financial instrument
Loans and borrowings
• Cash flows from the sale of collateral held or other credit
This is the category most relevant to the group. After initial
enhancements that are integral to the contractual terms
recognition, interest-bearing loans and borrowings are
As a practical expedient, the Group uses a provision matrix to subsequently measured at amortised cost using the EIR
determine impairment loss allowance on portfolio of its trade method. Gains and losses are recognised in profit or loss
receivables. The provision matrix is based on its historically when the liabilities are derecognised as well as through the
observed default rates over the expected life of the trade EIR amortisation process.
receivables and is adjusted for forward-looking estimates. At
Amortised cost is calculated by taking into account any
every reporting date, the historical observed default rates are
discount or premium on acquisition and fees or costs that are
updated and changes in the forward-looking estimates are
an integral part of the EIR. The EIR amortisation is included
analysed. On that basis, the Group estimates the following
as finance costs in the Statement of Profit and Loss.
provision matrix at the reporting date:

Receivables past due % of allowance

Derecognition
> 1 year and < 2 years 25% A financial liability is derecognised when the obligation
> 2 years and < 3 years 50% under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the
> 3 years 100%
same lender on substantially different terms, or the terms
Financial liabilities of an existing liability are substantially modified, such an
Initial recognition and measurement exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The
Financial liabilities are classified, at initial recognition,
difference in the respective carrying amounts is recognised
as financial liabilities at fair value through profit or loss
in the Statement of Profit and Loss.
(‘FVTPL’), loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge, Reclassification of financial assets
as appropriate.
The group determines classification of financial assets and
All financial liabilities are recognised initially at fair value liabilities on initial recognition. After initial recognition,
and, in the case of loans and borrowings and payables, net of no reclassification is made for financial assets which are
directly attributable transaction costs. equity instruments and financial liabilities. For financial
assets which are debt instruments, a reclassification is

Annual Report 2023-24 251

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

made only if there is a change in the business model for For the purpose of the statement of cash flows, cash and
managing those assets. Changes to the business model are cash equivalents consist of cash and short-term deposits,
expected to be infrequent. The group’s senior management as defined above, net of outstanding bank overdrafts
determines change in the business model as a result of as they are considered an integral part of the Group’s
external or internal changes which are significant to the cash management.
group’s operations. Such changes are evident to external
parties. A change in the business model occurs when the (s) Research and development
group either begins or ceases to perform an activity that Revenue expenditure on research and development is
is significant to its operations. If the group reclassifies charged to the Statement of Profit and Loss in the year
financial assets, it applies the reclassification prospectively in which it is incurred. The Group does not generate any
from the reclassification date which is the first day of the intangible asset internally.
immediately next reporting period following the change in
business model. The group does not restate any previously (t) Measurement of EBITDA
recognised gains, losses (including impairment gains or The Group presents EBITDA in the Statement of Profit
losses) or interest. and Loss, which is neither specifically required by Ind AS 1
nor defined under Ind AS. Ind AS complaint Schedule III
Offsetting of financial instruments allows companies to present line items, sub-line items and
Financial assets and financial liabilities are offset and the net sub-totals shall be presented as an addition or substitution
amount is reported in the consolidated balance sheet if there on the face of the financial statements when such
is a currently enforceable legal right to offset the recognised presentation is relevant to an understanding of the group’s
amounts and there is an intention to settle on a net basis, to financial position or performance or to cater to industry/
realise the assets and settle the liabilities simultaneously. sector-specific disclosure requirements or when required for
compliance with the amendments to the Companies Act or
(q) Derivative financial instruments under the Indian Accounting Standards.
The Group uses derivative financial instruments, such as
Accordingly, the Group has elected to present EBITDA as a
forward currency contracts to hedge its foreign currency risks.
separate line item on the face of the Statement of Profit and
Such derivative financial instruments are initially recognised
Loss and does not include depreciation and amortisation
at fair value on the date on which a derivative contract is
expense, finance income, finance costs, share of profit/
entered into and are subsequently re-measured at fair value.
loss from associate and tax expense in the measurement
Derivatives are carried as financial assets when the fair value
of EBITDA.
is positive and as financial liabilities when the fair value is
negative. Any gains or losses arising from changes in the fair (u) New standards and interpretations not yet adopted
value of derivatives are taken directly to profit or loss.
Ministry of Corporate Affairs (“MCA”) notifies new standard
Changes in the fair value of derivative contracts that or amendments to the existing standards under Companies
economically hedge monetary assets and liabilities in foreign (Indian Accounting Standards) Rules as issued from time
currencies, and for which no hedge accounting is applied, are to time. For the year ended March 31, 2024, MCA has not
recognised in the statement of profit and loss. The changes notified any new standards or amendments to the existing
in fair value of such derivative contracts, as well as the standards applicable to the Company.
foreign exchange gains and losses relating to the monetary
items, are recognised in the Statement of Profit and Loss.

(r) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
an insignificant risk of changes in value.

252 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

3. Property, plant and equipment

Plant and Furniture and
Particulars Freehold Land Buildings Computers Vehicles Total
Equipment Fixtures
Gross carrying value at cost
As at April 01, 2022 223.81 864.06 2,141.04 51.01 29.16 22.28 3,331.36
Additions 0.35 311.67 697.83 36.94 13.58 12.36 1,072.73
Disposals - - (26.86) (0.26) (0.01) (3.60) (30.73)
Adjustment
- Exchange difference - - - 0.01 - - 0.01
As at March 31, 2023 224.16 1,175.73 2,812.01 87.70 42.73 31.04 4,373.37
Additions 3.61 190.81 570.86 15.66 11.80 9.94 802.68
Disposals - - (8.17) - - (4.69) (12.86)
Adjustment
- Exchange difference - - - - - - -
As at March 31, 2024 227.77 1,366.54 3,374.70 103.36 54.53 36.29 5,163.19
Depreciation
As at April 01, 2022 - 167.92 853.44 26.04 17.94 8.73 1,074.07
Charge for the year - 43.26 249.45 5.70 5.60 7.24 311.25
Disposals - - (24.91) (0.04) - (2.90) (27.85)
Adjustment
- Exchange difference - - - (0.06) - - (0.06)
As at March 31, 2023 - 211.18 1,077.98 31.64 23.54 13.07 1,357.41
Charge for the year - 50.19 292.39 10.50 7.08 7.83 367.99
Disposals - (0.05) (4.64) - - (3.94) (8.63)
Adjustment
- Exchange difference - - - 0.04 0.01 - 0.05
As at March 31, 2024 - 261.32 1,365.73 42.18 30.63 16.96 1,716.82
Net carrying value
As at March 31, 2023 224.16 964.55 1,734.03 56.06 19.19 17.97 3,015.96
As at March 31, 2024 227.77 1,105.22 2,008.97 61.18 23.90 19.33 3,446.37

Notes:

(i) Pledge on Property, plant and equipment - Laurus Labs Limited:

Property, plant and equipment (other than vehicles) with a net carrying amount aggregating `3,427.04 (March 31, 2023: `2,997.99)
are subject to a pari passu first charge on the Company’s term loans. Further, the property, plant and equipment (other than
vehicles) are subject to a pari passu second charge on the Company’s current borrowings and SBI buyer’s credit. Also, refer note 13A
and 13B.

(ii) The Group has not revalued its property,plant and equipment.
(iii) Capital work-in-progress (CWIP) ageing schedule:

For the year ended March 31, 2024

Amount in CWIP for a period of
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 377.11 40.10 3.20 2.43 422.84
Projects temporarily suspended - - - - -

Annual Report 2023-24 253

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended March 31, 2023

Amount in CWIP for a period of
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 535.48 12.88 2.42 - 550.78
Projects temporarily suspended - - - - -

(vi) CWIP includes borrowing cost of `4.20 which is capitalised during the year (March 31, 2023: `1.62).
(v) 
For CWIP, whose completion is overdue or has exceeded its cost compared to its original plan the project wise details of when the
project is expected to be completed it given below:

To be completed in
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress - - - - -

Balance as on March 31, 2024

To be completed in
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress
MB 9 - Unit IV 118.49 - - - 118.49
MB 6 - Unit VI 131.03 - - - 131.03
Balance as on March 31, 2023 249.52 - - - 249.52

4. Other intangible assets

Goodwill on Computer
Particulars Total
consolidation software
Gross carrying value at cost
As at April 01, 2022 246.30 34.49 280.79
Additions - 7.23 7.23
As at March 31, 2023 246.30 41.72 288.02
Additions - 11.00 11.00
As at March 31, 2024 246.30 52.72 299.02
Amortisation
As at April 01, 2022 - 23.66 23.66
Charge for the year - 5.13 5.13
As at March 31, 2023 - 28.79 28.79
Charge for the year - 4.91 4.91
As at March 31, 2024 - 33.70 33.70
Net carrying value
As at March 31, 2023 246.30 12.93 259.23
As at March 31, 2024 246.30 19.02 265.32

Impairment test of goodwill:

Goodwill is tested for impairment on annual basis and whenever there is an indication that the recoverable amount of cash generating
unit is less than its carrying amount based on number of factors including business plan, operating results, future cash flows and
economic conditions. The recoverable amount of cash generating units (CGU) is determined based on higher of value in use and fair
value less cost to sell.

The Group generally uses discounted cash flow based methods to determine the recoverable amount. These discounted cash flows use
five-year projections that are based on financial forecasts. Cash flow projections take into account past experience and management’s
best estimate about future developments.

Discount rate represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of
money and the risks specific to the asset for which future cash flow estimates have not been adjusted. The discount rate calculation

254 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

is derived weighted average cost of capital of specific company. Terminal value growth rates take into consideration of external
macroeconomic sources of data and industry specific trends.

The following table presents the key assumptions used to determine value in use/fair value less cost to sell for impairment test purpose:

Particulars March 31, 2024 March 31, 2023

Terminal value growth rate 6% 6%
Pre tax discount rate 14.10% 14.05%

Based on the above, no impairment was identified as at March 31, 2024 as the recoverable value exceeds the carrying value.

5. Financial assets
March 31, 2024 March 31, 2023
A. Investments
Equity instruments of associates (net of share of loss) 10.57 11.97
Compulsorily convertible preference shares of associate 110.00 34.52
Others 3.41 3.41
Total 123.98 49.90

(a) Unquoted equity investments March 31, 2024 March 31, 2023
I. Investments in associates
-9
 96 (March 31, 2023: 996) Equity shares of `10 each fully paid-up of Immunoadoptive Cell Therapy 7.68 8.43
Private Limited (net of share of loss) (Note i)
-7
 40,000 (March 31, 2023: 740,00) Equity shares of `10 each fully paid-up of Ethan Energy India 2.89 3.54
Private Limited (net of share of loss) (Note ii)
Total 10.57 11.97
II. Investments in others (valued at fair value through profit and loss)
-3
 ,405,000 (March 31, 2023: 3,405,000) Equity shares of `10/- each of Atchutapuram Effluent 3.41 3.41
Treatment Limited.
Total 3.41 3.41

(b) Unquoted Investment in Compulsorily convertible preference shares - carried at cost March 31, 2024 March 31, 2023

- 3,983 compulsorily Convertible preference shares of `10 each fully paid Series A of Immunoadoptive Cell 29.98 34.52
Therapy Private Limited (March 31, 2023: 3,983 of `10 each fully paid) (Note i)
- 2,028 compulsorily Convertible preference shares of `10 each fully paid Series B of Immunoadoptive Cell 80.02 -
Therapy Private Limited (March 31, 2023: nil) (Note i)
Total 110.00 34.52

Notes:
i) During the year ended March 31, 2024, Pursuant to investment agreement entered into by the Company with Immunoadoptive
Cell Therapy Private Limited (ImmunoAct), the Company made further capital contribution towards Series B Compulsorily
convertible preference shares (CCPS) amounting to `80.02 crores in lmmunoAct in terms of the aforesaid agreement. Consequent
to additional acquisition, the total shareholding in ImmunoAct has increased from 27.57% to 34.89% (As on March 31, 2023, the
Company holds 27.57%)
ii) During the year ended March 31, 2023, the Company entered into an investment agreement with Ethan Energy India Private
Limited (“Ethan Energy”) to acquire 26% stake, for agreed consideration of `3.90 crores.

iii) The Group has complied with number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with the
Companies (Restriction on number of layers) Rules, 2017.

Annual Report 2023-24 255

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

B. Loans
Particulars March 31, 2024 March 31, 2023
Current (unsecured, considered good unless stated otherwise)
Other loans
- Loans to employees 0.95 0.97
Total 0.95 0.97

C. Other financial assets

Particulars March 31, 2024 March 31, 2023
Non-current (unsecured, considered good unless stated otherwise)
Security deposits 34.86 32.80
Other balances with banks 0.01 0.10
Export and other incentives receivable (net)* 12.51 16.51
Total 47.38 49.41
Current (unsecured, considered good unless stated otherwise)
Export and other incentives receivable (net)* 8.60 14.73
Insurance claim receivable - 0.60
Derivative foreign currency forward contracts 0.22 0.98
Total 8.82 16.31

*Export and other incentives have been recognised on the following:

a) Incentive in the form of duty credit scrip upon sale of exports under Merchandise Exports from India Scheme under Foreign
Trade Policy of India 2015-20.

b) Existing Foreign Trade Policy 2015-20, has been extended till September 30, 2022 vide notification no.64/2015-2020 dated
31.03.2022 & Public Notice No.53/2015-2020 dated 31.03.2022

c) Sales tax incentive and reimbursement of power cost under the Andhra Pradesh state incentives IIPP 2015-20 scheme.
Incentives are eligible for five years from the date of commencement of production. There are no unfulfilled conditions or
contingencies attached to these incentives.

6. Deferred tax assets/(liability) (net)

Particulars March 31, 2024 March 31, 2023
Deferred tax liability relating to
Accelerated depreciation for tax purposes (142.99) (129.59)
(A) (142.99) (129.59)
Deferred tax asset relating to
MAT credit entitlement 0.66 0.87
Expenses allowable on payment basis 60.33 25.33
Other items giving rise to temporary differences 24.96 20.94
(B) 85.95 47.14
Deferred tax assets/(liability) (net) (A+B) (57.04) (82.45)

Deferred tax assets/(liabilities):

For the year ended March 31, 2024:
Recognised
Recognised/
in other
Particulars Opening balance Utilised during the Closing balance
comprehensive
year
income
Accelerated depreciation for tax purposes (129.59) (13.40) - (142.99)
MAT credit entitlement/(utilisation) 0.87 (0.21) - 0.66
Expenses allowable on payment basis 25.33 35.00 - 60.33
Other items giving rise to temporary differences 20.94 3.71 0.31 24.96
(82.45) 25.10 0.31 (57.04)

256 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

For the year ended March 31, 2023:

Recognised
Recognised/
in other
Particulars Opening balance Utilised during the Closing balance
comprehensive
year
income
Accelerated depreciation for tax purposes (156.46) 26.87 - (129.59)
MAT credit entitlement/(utilisation) 34.56 (33.69) - 0.87
Expenses allowable on payment basis 30.52 (5.19) - 25.33
Other items giving rise to temporary differences 22.27 (1.16) (0.17) 20.94
(69.11) (13.17) (0.17) (82.45)

The Group has accounted for deferred tax liabilities (net) of `57.04 (March 31, 2023: `82.45) based on approval of business plan by the
board, agreements entered with customers, orders on hand, fresh infusion of funds, successful patent filings and a portfolio of drugs.

There are no unrecognised deferred tax assets and liabilities as at March 31, 2024 and March 31, 2023.

7. Other assets
Particulars March 31, 2024 March 31, 2023
A) Non-current (unsecured, considered good unless otherwise stated)
Capital advances 42.33 103.99
Advances recoverable in cash or kind - 0.04
Prepayments 19.21 12.23
Balances with statutory/Government authorities 2.00 2.00
Taxes paid under protest 1.34 1.35
64.88 119.61
Less: Allowance for doubtful advances - (0.04)
Total 64.88 119.57
B) Current (unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind 22.73 37.90
Prepayments 28.05 20.45
Balances with statutory/Government authorities 123.48 70.03
Others 0.96 2.31
Total 175.22 130.69

8. Inventories
Particulars March 31, 2024 March 31, 2023
(At lower of cost and net realisable value)
Raw materials [including port stock and stock-in-transit `78.61 (March 31, 2023: `83.87)] 589.99 557.90
Work-in-progress 679.47 562.08
Finished goods 495.80 499.80
Stores, spares and packing materials 80.15 65.03
Total 1,845.41 1,684.81

9. Trade receivables
Particulars March 31, 2024 March 31, 2023
Unsecured
Considered good 1,662.17 1,580.44
Reveivable from related parties (Refer note no. 32) 0.75 -
Credit impaired 5.61 1.36
1,668.53 1,581.80
Less: Allowance for doubtful debts (5.61) (1.36)
Total 1,662.92 1,580.44

a) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a
director or a member.

Annual Report 2023-24 257

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

b) Trade receivables are non-interest bearing and are generally on terms of 30 - 120 days.

c) Of the trade receivables balance, `433.41 in aggregate (as at March 31, 2023 `487.71) is due from the Company’s customers
individually representing more than 5 % of the total trade receivables balance.

d) The Group has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based
on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking
estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the
provision matrix.

e) Trade receivables is net of bills discounted without recourse amounting to `33.82 (as at March 31, 2023 `37.63)

(f) Movement in the expected credit loss allowance March 31, 2024 March 31, 2023
Balance at the beginning of the year 1.36 0.30
Movement in expected credit loss allowance on trade receivables 4.25 1.06
Balance at the end of the year 5.61 1.36

Trade Receivables ageing schedule for the year ended March 31,2024:
Outstanding from due date of payment
Particulars Not Due Less than 6 6 months - More than Total
1- 2 years 2-3 years
months 1 year 3 years
i) Undisputed Trade receivables - considered good 1,049.28 545.31 52.10 16.23 - - 1,662.92
ii) Undisputed Trade receivables - which have - - - - - - -
significant increase in credit risk
iii) Undisputed Trade receivables - credit impaired - - - 5.61 - - 5.61
iv) Disputed trade receivables - considered good - - - - - - -
v) Disputed trade receivables - which have significant - - - - - - -
increase in credit risk
vi) Disputed trade receivables - credit impaired - - - - - - -
Total 1,049.28 545.31 52.10 21.84 - - 1,668.53

Trade Receivables ageing schedule for the year ended March 31,2023:
Outstanding from due date of payment
Particulars Not Due Less than 6 6 months - More than Total
1- 2 years 2-3 years
months 1 year 3 years
i) Undisputed Trade receivables - considered good 1,115.48 385.28 77.53 2.15 - - 1,580.44
ii) Undisputed Trade receivables - which have - - - - - - -
significant increase in credit risk
iii) Undisputed Trade receivables - credit impaired - - - 1.36 - - 1.36
iv) Disputed trade receivables - considered good - - - - - - -
v) Disputed trade receivables - which have significant - - - - - - -
increase in credit risk
vi) Disputed trade receivables - credit impaired - - - - - - -
Total 1,115.48 385.28 77.53 3.51 - - 1,581.80

258 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

10. Cash and cash equivalents and other bank balances

Particulars March 31, 2024 March 31, 2023
A) Cash and cash equivalents
Balances with banks
- On current accounts 121.71 19.25
- Deposits with original maturity of less than three months 17.13 26.33
Cash on hand 0.10 0.09
Total 138.94 45.67
B) Other balances with banks
On deposit accounts
- Remaining maturity for less than twelve months* 2.42 2.51
- Unclaimed dividend accounts 0.29 0.28
Total 2.71 2.79

*Deposits with a carrying amount of `2.42 (March 31, 2023: `2.51) are towards margin money given for letter of credit and bank guarantees.

11. Equity share capital

Particulars March 31, 2024 March 31, 2023
Authorised
555,000,000 (March 31, 2023: 555,000,000) Equity shares of `2/- each 111.00 111.00
Total 111.00 111.00
Issued, Subscribed and Paid Up
538,965,858 (March 31, 2023: 538,650,925) Equity shares of `2/- each 107.79 107.73
107.79 107.73
Total 107.79 107.73

11.1. Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
For the year ended March 31, 2024 For the year ended March 31, 2023
Equity Shares of `2/- each, fully paid up
No. ` No. `

Balance as per last financial statements (`2/- each) 538,650,925 107.73 537,359,335 107.47
Issued during the year - ESOP (`2/-each) 314,933 0.06 1,291,590 0.26
Outstanding at the end of the year 538,965,858 107.79 538,650,925 107.73

11.2. Rights attached to equity shares

The Company has only one class of equity shares having a par value of `2/- per share. Each holder of equity shares is entitled to one
vote per share at the general meetings of the Company. For liquidation terms refer note 11.2a.

The Company declares and pays dividends in Indian rupees. The final dividend, if any, proposed by the Board of Directors is subject
to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2024, the amount of dividend (first interim dividend `0.40 and second interim dividend `0.40)
per share declared as distribution to equity shareholders was `0.80 (March 31, 2023: first interim dividend `0.80 and second
interim dividend `1.20 per share declared as distribution to equity shareholders was `2.00).

11.2a. Liquidation terms and preferential rights

The liquidation terms of the equity shares are as follows:

(a) If the company shall be wound up, the Liquidator may, with the sanction of a special resolution of the company and any other
sanction required by the Act divide amongst the shareholders, in specie or kind the whole or any part of the assets of the company,
whether they shall consist of property of the same kind or not.

(b) For the purpose aforesaid, the Liquidator may set such value as he deems fair upon any property to be divided as aforesaid and
may determine how such division shall be carried out as between the shareholders or different classes of shareholders.

Annual Report 2023-24 259

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

11.3. Details of Shareholders holding more than 5 % shares of the Group:

Particulars March 31, 2024 March 31, 2023
Equity shares of `2/- each held by % Holding No. % Holding No.
M/s. NSN Holdings represented by Dr. Satyanarayana Chava 23.03% 124,126,740 23.04% 124,126,740
New World Fund Inc 6.50% 35,030,409 5.29% 28,511,600

11.4 Details of shares held by the promoters of the Company:

Equotu Shares held by promoters as at March 31, 2024 and March 31, 2023

March 31, 2024 March 31, 2023

Promoter Name % Change % Change

% of total % of total
No of shares during the No of shares during the
shares shares
year year
M/s. NSN Holdings (represented by Dr. Satyanarayana Chava) 124,126,740 23.03% - 124,126,740 23.04% -
Dr. C.V. Lakshmana Rao 13,450,145 2.50% - 13,450,145 2.50% -
M/s. Leven Holdings (represented by Mr. V.V. Ravi Kumar)^ 6,705,000 1.24% - 6,705,000 1.24% 100.00%
Mr. V. V. Ravi Kumar^ 1,000,000 0.19% - 1,000,000 0.19% -87.02%
Mr. Narasimha Rao Chava 119,675 0.02% - 119,675 0.02% -
Mr. Chandrakanth Chereddi 42,000 0.01% - 42,000 0.01% -
Mrs. V. Krishnaveni 201,397 0.04% - 201,397 0.04% -
Mr. C. Sekhar Babu 100,000 0.02% - 100,000 0.02% -
Mrs. V. Hymavathi 225,000 0.04% - 225,000 0.04% -
Mrs. Soumya Chava 10,440 0.00% - 10,440 0.00% -
Mr. Krishna Chaitanya Chava 20,699 0.00% - 20,699 0.00% -
Mrs. T. Nagamani 100,000 0.02% - 100,000 0.02% -
Mrs. K. Kamala 100,000 0.02% - 100,000 0.02% -
Mr. S. Narasimha Rao 147,500 0.03% - 147,500 0.03% -
Mrs. S. Rama 170,000 0.03% - 170,000 0.03% -

^Mr. V.V. Ravi Kumar, Promoter of the Company had transferred 67,05,000 shares to partnership firm M/s. Leven Holdings on November 02, 2022.

11.5. Details of shares reserved for issue under options

For details of shares reserved for issue under Employee Stock Options Scheme plan of the Group, refer note no. 29.

11.6. Other equity

Particulars March 31, 2024 March 31, 2023
Capital reserve 1.79 1.79
Securities premium 717.08 713.06
Employee Stock option reserve 21.47 12.08
Retained earnings 3,314.95 3,302.01
Gross obligation liability to acquire non-controlling interest (33.32) (83.20)
Other comprehensive income (9.02) (8.13)
Foreign currency translation reserve (9.79) (7.81)
Total 4,003.16 3,929.80

Nature and purpose of reserves

Capital reserve:
Represents capital reserve balances of acquired entities which are transferred to the Company upon merger.

Securities premium:
Securities premium is used to record the premium on issue of shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.

260 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Employee Stock option reserve:

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 option reserve. This will be utilised for allotment of equity shares against outstanding employee
stock options.

Retained earnings:
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distribution to share holders.

Gross obligation liability to acquire non-controlling interest:

Gross obligation liability to acquire non-controlling interest Represents the put option held by non-controlling interests recognised at
present value of redemption amount.

Foreign currency translation reserve:

Exchange difference relating to the translation of the Group’s foreign operations from their functional currencies to the Company’s
presentation currency are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve.

Other Comprehensive Income:

Comprises of: (i) Re-measurement of defined employee benefit plans: Difference between the interest income on plan assets and the
return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments
with in the plans, are recognised in other comprehensive income and subsequently not reclassified in to consolidated statement of profit
and loss. (ii) Exchange differences on translation of financial statements of foreign operations: Represents exchange differences arising
on account of conversion of foreign operations to Group’s functional currency.

12. Dividends paid and proposed

2023-24 2022-23
Cash dividends on equity shares declared and paid: Dividend per Dividend per
Amount Amount
equity share equity share
First interim dividend for the financial year 2022-23 (face value of - - 0.80 42.99
`2/- each)
Second interim dividend for the financial year 2022-23 (face value 1.20 64.64 - -
of `2/- each)
First interim dividend for the financial year 2023-24 (face value of 0.40 21.54 - -
`2/- each)
86.18 42.99
Proposed dividends on equity shares:
Second interim dividend for the financial year 2022-23 (face value - - 1.20 64.64
of `2/- each)
Second interim dividend for the financial year 2023-24 (face value 0.40 21.56 - -
of `2/- each)*
21.56 64.64

*The Board of Directors of the Company in their meeting held on April 25, 2024 have approved for payment of second interim dividend and the Company
has fixed May 08, 2024 as “Record Date” for determining the eligibility of the Shareholders. Accordingly, the Company has not recognised the said proposed
dividend as a liability as at March 31, 2024.

Annual Report 2023-24 261

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

13. Financial liabilities

Particulars March 31, 2024 March 31, 2023
A) Non-current borrowings
Term loans
Indian rupee loans from banks (Secured) 667.42 537.81
Foreign currency loans from banks (Secured) 130.81 223.61
Total 798.23 761.42
Current maturities of non-current borrowings
Term loans
Indian rupee loans from banks (Secured) 226.16 109.25
Foreign currency loans from banks (Secured) 93.37 105.53
319.53 214.78
Less: Amount disclosed under the head "current borrowings" (319.53) (214.78)
Total - -
B) Current borrowings
Cash credits and working capital demand loans
Indian rupee loans from banks (Secured) 726.68 375.09
Indian rupee loans from banks (Un Secured) 526.03 487.11
Foreign currency loans from banks (Secured) 39.59 39.03
Buyer's credit from banks (Secured) 44.09 34.34
Buyers credit from banks (Unsecured) 52.90 60.20
Current maturities of non-current borrowings 319.53 214.78
Total 1,708.82 1,210.55

Terms and conditions of borrowings - Laurus Labs Limited:

(a) The details of Indian rupee term loans from banks are as under:

Outstanding Outstanding
Sanction Commencement of
Name of the Bank as on March as on March No. of Instalments Effective interest rate^
Amount instalments
31, 2024 31, 2023
HDFC Bank (HDFC) 100.00 140.00 200.00 20 quarterly instalments December 2021 Repo + 1.25% (March 31,
of `10 2023: Repo + 1.25%)
The Hongkong & 46.88 65.63 150.00 16 quarterly instalments of July 2021 T Bill + 0.29% (March 31,
Shanghai Banking `9.375 2023: T Bill + 0.29%)
Corporation (HSBC)
CITI Bank (CITI) 5.00 11.67 40.00 24 quarterly instalments of January 2019 T Bill + 0.28% (March 31,
`1.67 2023: T Bill + 0.28%)
HDFC Bank (HDFC) 172.93 - 200.00 22 quarterly instalments March 2024 1M T Bill + 1.20%
ranging from `5 to `10
Axis Bank (Axis) 189.88 200.00 200.00 20 quarterly instalments May 2023 Repo +1.50% (March 31,
ranging from `2.50 to 2023: Repo + 1.50%)
`11.875

262 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

(b) Foreign Currency loans from banks comprise of Foreign Currency Non Resident Term Loan (FCNR TL) and ECB loan:

Outstanding Outstanding
Name of the Bank & Sanction Commencement of
as on March as on March No. of Instalments Effective interest rate^
Nature of Loan Amount instalments
31, 2024 31, 2023
State Bank of India - 66.86 US$ 13.80 Mn 18 quarterly instalments of December 2021 SOFR plus 1.25% p.a. (March
(SBI) - FCNR TL* `5.55 31, 2023: SOFR plus 1.50%
p.a.)
State Bank of India - 68.36 US$ 13.25 Mn 18 quarterly instalments of December 2021 SOFR plus 1.50% p.a. (March
(SBI) - FCNR TL* `5.55 31, 2023: SOFR plus 1.05%
p.a.)
State Bank of India 89.40 - US$ 12.08 Mn 11 quarterly instalments of July 2023 SOFR plus 1.25% p.a. (March
(SBI) - FCNR TL* `11.113 31, 2023: nil )
The Hongkong & - 12.83 US$ 25 Mn 16 quarterly instalments of July 2019 LIBOR plus 0.76% p.a.
Shanghai Banking `12.84 (March 31, 2023: LIBOR plus
Corporation (HSBC), 0.76% p.a.)
Singapore - ECB TL
State Bank of India 134.78 181.08 US$ 25 Mn 17 quarterly instalments of November 2022 LIBOR plus 0.97% p.a.
(SBI) - New York - `12.07 (March 31, 2023: LIBOR plus
ECB TL 0.97% p.a.)

*During year ended March 31, 2024, SBI FCNR Term Loans have been converted to a single SBI Term Loan and converted back to SBI
FCNR Term Loan.

^Secured Overnight Financing Rate (SOFR), London Interbank Offer Rate (LIBOR) and Marginal Cost of Funds based Lending Rate
(MCLR)

(c) All term loans are secured by pari passu first charge on the property, plant and equipment (both present and future) except to the
extent of assets exclusively charged to banks. They are further secured by pari passu second charge on current assets (both present
and future).

(d) Current borrowings are availed in both Rupee and Foreign currencies. Interest on rupee loans ranges from MCLR plus 0% to 0.10%
(March 31, 2023: MCLR plus 0% to 0.10%). Buyers credit loan interest ranges from SOFR plus 0.30% to SOFR plus 0.45% (March 31,
2023: SOFR plus 0.15% to SOFR plus 0.67%). The secured current borrowings are backed by pari passu first charge on current assets
and pari passu second charge on the fixed assets (both present and future). [March 31, 2023: The secured current borrowings are
backed by pari passu first charge on current assets and pari passu second charge on the fixed assets (both present and future)].

(e) The Group has used the borrowings for the purposes for which it was taken.

(f) The quarterly returns of current assets filed by the Group with banks are in agreement with the books of account.

(g) Reconciliation of liabilities from financing activities are given below:

Non-cash
transactions
Particulars March 31, 2023 Cash flows March 31, 2024
foreign exchange
loss
Non-current borrowings including current maturities 976.20 147.17 5.61 1,117.76
Current borrowings 995.77 393.88 0.36 1,389.29

Non-cash
transactions
Particulars March 31, 2022 Cash flows March 31, 2023
foreign exchange
gain
Non-current borrowings including current maturities 821.31 136.67 (18.22) 976.20
Current borrowings 910.75 84.95 (0.07) 995.77

Annual Report 2023-24 263

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Terms and conditions of borrowings - Laurus Synthesis Private Limited.

Outstanding as on Outstanding as on Commencement of Effective interest
Name of the Bank Sanction Amount No. of Instalments
March 31, 2024 March 31, 2023 instalments rate
DBS Bank India Limited 13.98 27.95 48.00 16 quarterly April 2021 Repo plus 2.25%
instalments ranging (March 31 2023:
from `15 to 35 Repo plus 2.25%)
State Bank of India 139.63 149.57 150.00 28 quarterly June 2023 Repo plus 2.25%
instalments ranging (March 31 2023:
from `25 to 75 Repo plus 2.25%)
HDFC Bank 149.25 - 150.00 20 quarterly January 2024 1M T-Bill plus
instalments ranging 0.88%
from `7.5 to 91.88

(a) Term Loans are secured by pari passu first charge on fixed assets (both present & future) and pari passu second charge on current
assets of the company and are also backed by corporate guarantee issued by Laurus Labs Limited.

Current borrowings are availed in Rupee. Interest on rupee loans at MCLR+0.5%. These borrowings are secured by pari passu first
charge on the current assets and pari passu second charge on fixed assets of the company, and are also backed by corporate
guarantee from Laurus Labs Limited.

Terms and conditions of borrowings - Laurus Bio Private Limited:

Outstanding as on Outstanding as on Commencement of Effective interest
Name of the Bank Sanction Amount No. of Instalments
March 31, 2024 March 31, 2023 instalments rate
CITI Bank Term Loan I 10.42 18.75 25.00 Tenor of 4 August 2022 3M T-Bill+1.86%
years including
moratorium of
12 month and
repayable in
12 quarterly
Installments
CITI Bank Term Loan II 65.63 33.50 70.00 Tenor of 5 March 2024 3M T-Bill+1.5%
years including
moratorium of
12 month and
repayable in
16 quarterly
Installments

(a) March 31 2024: Term Loan from Citi bank is secured by an first exclusive charge on present and future movable fixed assets and
a second charge on present and future stocks and book debts of the company. The loan is also backed by Corporate guarantee
issued by Laurus Labs Limited. (March 31 2023: Term Loan from Citi bank is secured by an first exclusive charge on present and
future movable fixed assets and a second charge on present and future stocks and book debts of the company. The loan is also
backed by Corporate guarantee issued by Laurus Labs Limited).

(b) Current borrowings are availed in Rupee. Interest on rupee loans range from MCLR plus 0.15% to MCLR plus 0.20%. These
borrowings are secured by first exclusive charge on current assets and second exclusive charge on fixed assets of the company (both
present & future) and are also backed by corporate guarantee issued by Laurus Labs Limited (March 31, 2023: Current borrowings
are secured by first exclusive charge on current assets and second exclusive charge on fixed assets of the company (both present &
future) and are also backed by corporate guarantee issued by Laurus Labs Limited).

C) Trade payables
Particulars March 31, 2024 March 31, 2023
Valued at amortised cost
- Total outstanding dues to creditors other than micro enterprises and small enterprises 1,020.35 671.06
- Outstanding dues to related parties (refer note no. 32) 1.29 1.25
Total 1,021.64 672.31
- Total outstanding dues to micro enterprises and small enterprises (refer note no. 30) 29.60 38.34
Total 29.60 38.34

Terms and conditions of the above financial liabilities:

264 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Trade payables are non-interest bearing and are normally settled on 30-120 day terms.

For explanations on the Group’s credit risk management processes, refer to note 36.

Trade Payables ageing schedule for the year ended March 31, 2024
Outstanding from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 Years 2-3 Years
Year 3 years
i) Total outstanding dues to micro enterprises and - 29.60 - - - - 29.60
small enterprises
ii) Total outstanding dues to creditors other than 125.31 519.39 372.97 3.66 0.30 0.01 1,021.64
micro enterprises and small enterprises
iii) Disputed dues of micro enterprises and small - - - - - - -
enterprises
iv) Disputed dues of creditors other than micro - - - - - - -
enterprises and small enterprises
Total 125.31 548.99 372.97 3.66 0.30 0.01 1,051.24

Trade Payables ageing schedule for the year ended March 31, 2023
Outstanding from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 Years 2-3 Years
Year 3 years
i) Total outstanding dues to micro enterprises and - 38.34 - - - - 38.34
small enterprises
ii) Total outstanding dues to creditors other than 127.65 274.90 263.27 2.70 0.05 3.74 672.31
micro enterprises and small enterprises
iii) Disputed dues of micro enterprises and small - - - - - - -
enterprises
iv) Disputed dues of creditors other than micro - - - - - - -
enterprises and small enterprises
Total 127.65 313.24 263.27 2.70 0.05 3.74 710.65

D) Other financial liabilities

Particulars March 31, 2024 March 31, 2023
Valued at amortised cost
Capital creditors 129.45 183.71
Interest accrued* 9.31 8.62
Total 138.76 192.33

* Interest accrued but not due is normally settled monthly/quarterly throughout the financial year.

E) Other financial liabilities

Particulars March 31, 2024 March 31, 2023
Gross obligation liability to acquire Non-controlling interest 42.33 91.20
42.33 91.20

*During the year ended March 31, 2021, the Company acquired 72.55% stake in Laurus Bio Private Limited {‘’Laurus Bio’’} (Formerly known as Richcore
Lifesciences Private Limited) on January 20, 2021. Laurus bio became the subsidiary w.e.f. January 20, 2021. The Company further acquired 6.66% stake
on February 10, 2021 from promoters of Laurus bio. As at March 31, 2023 the Company holds 76.60% (March 31, 2022: 76.60%) stake in Laurus Bio Private
Limited. According to conditions stipulated in the Investment Agreement, the selling shareholders (Promoters) have “put option” over 23.40% shareholding at
any time between January 20, 2024 and January 20, 2026 for a consideration equal to their proportion of the equity value of Laurus Bio. This option has been
recognised as a financial liability at the fair value of the redemption amount with a corresponding adjustment to other equity.

During the year ended March 31, 2024, the Company acquired additional 14.54% stake in Laurus Bio Private Limited (LBPL) from its
promoters and employees for a purchase consideration of `71.60 crores. Consequently, the total shareholding in LBPL has increased to
91.14%. (As on March 31, 2023, the Company holds 76.60%).

Annual Report 2023-24 265

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

14. Other Non-current and current liabilities

Particulars March 31, 2024 March 31, 2023
A) Non-current
Advances from customers 105.95 125.50
105.95 125.50
B) Current
Advances from customers 81.85 148.21
Unclaimed dividend 0.29 0.28
Charge back reserves and rebates* 48.84 63.00
Statutory dues 13.27 16.47
Total 144.25 227.96
*Details of charge back reserves and rebates
Opening Balance 63.00 47.89
Provisions relating to sales during the year 437.29 317.06
Credits/payments during the year (451.45) (301.95)
Closing Balance 48.84 63.00

15. Provisions
Particulars March 31, 2024 March 31, 2023
A) Non-current provisions
Provision for gratuity (Refer note no. 28) 59.32 51.08
Provision for compensated absences 34.15 30.39
Total 93.47 81.47
B) Current provisions
Provision for gratuity (Refer note no. 28) 10.59 7.95
Provision for compensated absences 14.22 12.14
Total 24.81 20.09

16. Income tax assets / liabilities

Particulars March 31, 2024 March 31, 2023
A) Income tax assets
Advance tax (net) 2.97 20.44
2.97 20.44
B) Income tax liabilities
Provision for taxes (net) 36.21 65.00
36.21 65.0

17. Revenue from operations

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Sale of products
Income from sale of API, Intermediates and Formulations 4,626.62 5,644.83
Income from sale of traded goods 111.98 162.89
(A) 4,738.60 5,807.72
Sale of services
Contract research services 263.20 206.50
(B) 263.20 206.50

266 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Other operating revenue
Sale of scrap 13.31 11.80
Export and other incentives* 0.19 0.23
Others 25.53 14.30
(C) 39.03 26.33
Revenue from operations (A+B+C) 5,040.83 6,040.55

*Export and other incentives have been recognised on the following:

a) Incentive in the form of duty credit scrip upon sale of exports under Merchandise Exports from India Scheme under Foreign Trade
Policy of India 2015-20.

b) Existing Foreign Trade Policy 2015-20, has been extended till September 30, 2022 vide notification no.64/2015-2020 dated
31.03.2022 & Public Notice No.53/2015-2020 dated 31.03.2022

For the year ended For the year ended

(i) Reconciliation of revenue from sale of products with the contracted price
March 31, 2024 March 31, 2023
Revenue as per contracted price, net of returns 5,004.48 5,907.86
Adjusted for:
Chargebacks, rebates and discounts (437.29) (317.06)
Profit sharing adjustments 59.43 54.03
Total revenue from contracts with customers 4,626.62 5,644.83

For the year ended For the year ended

(ii) Disaggregated revenue information:
March 31, 2024 March 31, 2023
Below is the disaggregation of the Company's revenue from contracts with customers.
Revenue from operations - Domestic 1,972.76 1,673.82
Revenue from operations - Exports 3,068.07 4,366.73
Total 5,040.83 6,040.55
Timing of revenue recognition
Goods transferred at a point of time 4,777.63 5,834.05
Services transferred over time 263.20 206.50
Total 5,040.83 6,040.55

(iii) Details of contract balances March 31, 2024 March 31, 2023
Trade receivables (Refer note no. 9) 1,662.92 1,580.44
Advance from customers (Refer note no. 14) 187.80 273.71
(iv) The amount of revenue recognised from advances from customers at the beginning of the year `145.92 (March 31, 2023: `186.93 )
(v) Revenue from customers contributing more than 10% of total revenue amounts to ` nil (March 31, 2023: `1,432.09)

18. Other income

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Net gain on foreign exchange fluctuations 3.66 -
Bad debts recovered - 0.40
Provision no longer required written back 0.01 1.04
Insurance claim 17.05 -
Miscellaneous income 0.01 -
Total 20.73 1.44

Annual Report 2023-24 267

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

19. Cost of materials consumed

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Raw materials consumed
Opening stock at the beginning of the year 549.81 607.01
Add: Purchases 2,404.49 2,494.72
2,954.30 3,101.73
Less: Closing stock at the end of the year 589.99 549.81
(A) 2,364.31 2,551.92
Packing materials consumed (B) 58.07 44.65
Total (A+B) 2,422.38 2,596.57

20. Changes in inventories of finished goods, work-in-progress and stock-in-trade

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Opening stock of inventories
Finished goods of API, Intermediates and Formulations 512.31 496.07
Work-in-progress of API, Intermediates and Formulations 562.08 600.36
1,074.39 1,096.43
Closing stock of inventories
Finished goods of API, Intermediates and Formulations 495.80 512.31
Work-in-progress of API, Intermediates and Formulations 679.47 562.08
1,175.27 1,074.39
(Increase)/Decrease in inventories of finished goods and work-in-progress (100.88) 22.04
(Increase)/Decrease in finished goods of API, Intermediates and Formulations 16.51 (16.24)
(Increase)/Decrease in Work-in-Progress of API, Intermediates and Formulations (117.39) 38.28
(Increase)/Decrease in inventories of finished goods and work-in-progress (100.88) 22.04

21. Employee benefits expense

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Salaries, allowances and wages 483.48 444.51
Contribution to provident fund and other funds 29.12 25.76
Gratuity expense (Refer note no. 28) 13.81 12.26
Share based payment expense (Refer note no. 29) 10.92 7.48
Managerial remuneration 25.08 23.21
Recruitment and training 1.48 1.40
Staff welfare expenses 76.04 66.02
Total 639.93 580.64

268 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

22. Other expenses

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Consumption of stores and spares 66.67 66.39
Conversion charges 27.86 39.04
Factory maintenance 212.62 187.02
Effluent treatment expenses 91.96 73.30
Power and fuel 338.15 324.10
Repairs and maintenance
Plant and machinery 92.51 71.72
Buildings 11.21 10.58
Others 3.65 3.16
Product development 43.76 25.59
Testing and analysis charges 3.49 1.45
Rent 2.26 2.30
Rates and taxes 31.82 35.24
Office maintenance 4.56 3.32
Insurance 34.08 28.07
Printing and stationery 3.88 3.74
Consultancy and other professional charges 27.13 30.69
Membership and subscription 11.00 9.07
Auditors' remuneration 1.60 1.65
Travelling and conveyance 12.66 10.45
Communication expenses 3.82 3.41
Loss on sale of property, plant and equipment (net) 1.93 0.21
Allowance for bad and doubtful advance and debts 4.93 1.65
Net Loss on foreign exchange fluctuations - 24.92
Carriage outwards 45.99 44.51
Commission on sales 28.85 32.55
Other selling expenses 48.97 22.48
Business promotion and advertisement 10.68 16.60
CSR expenditure (Refer note no. 26) 23.31 18.59
Donations 1.50 0.88
Miscellaneous expenses 0.13 0.73
Total 1,190.98 1,093.40

23A. Finance income

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Interest Income on
Deposits and margin money held 1.77 1.68
Electricity deposits and others 3.84 2.88
Total 5.61 4.56

Annual Report 2023-24 269

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

23B. Finance costs

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Interest
- on term loans* 72.29 38.84
- on working capital loans 88.54 68.91
- on others 10.93 15.14
171.76 122.89
Bank charges 7.90 19.70
Exchange differences to the extent considered as an adjustment to finance costs 3.24 22.58
Total 182.90 165.17

*Borrowing cost of `4.20 (March 31, 2023: `1.62) has been capitalised and transferred to CWIP. Capitalisation rate considered is 7.83% p.a. (March 31, 2023:
7.25 % p.a.)

24. Components of other comprehensive income (OCI)

The disaggregation of changes to OCI by each type of reserve in equity is shown below:

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Retained earnings:
Remeasurement gains/(losses) on defined benefit plans (1.20) 0.75
Deferred tax on remeasurement of defined benefit plans 0.31 (0.17)
Exchange differences on translating the financial statements of foreign operations (1.98) (6.21)
Total other comprehensive income for the year, net of tax (2.87) (5.63)

25. Earnings per share (EPS)

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
The following reflects the profit and share data used in the basic and diluted EPS computations:
Profit available for equity shareholders 160.55 790.11
Weighted average number of equity shares in computing basic EPS 538,749,879 537,730,888
Add: Effect of dilution
Stock options granted under ESOP 915,791 1,869,599
Weighted average number of equity shares in computing diluted earnings per share 539,665,671 539,600,487
Face value of each equity share (`) 2.00 2.00
Earnings per share
- Basic (`) 2.98 14.69
- Diluted (`) 2.97 14.64

26. Details of CSR expenditure

As per the requirement of the Companies Act, 2013, gross amount required to be spent by the Company during the year is `22.01
(March 31, 2023: `17.03).The nature of CSR activities undertaken by the company includes promoting education, health care and
environmental sustainability. The details of CSR expenditure is given below.

For the year ended March 31, 2024

CSR Activities Yet to be paid in
In cach Total
cash
(i) Construction/acquisition of any asset - - -
(-) (-) (-)
(ii) On purposes other than (i) above 22.28 - 22.28
(17.90) (-) (17.90)

270 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Amounts in bracket indicate previous year numbers. There is no shortfall at the end of March 31, 2024 and March 31, 2023 in terms of
amount required to be spent by the company.

The above includes contribution made to Laurus Charitable Trust amounting to `22.12 (March 31, 2023: `10.18) (Refer note no. 32)

27. Taxes
(a) Income tax expense:
The major components of income tax expenses for the year ended March 31, 2024 and for the year ended March 31, 2023 are:

(i) Statement of Profit and Loss

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current tax 93.11 289.83
Deferred tax credit* (24.96) 22.47
Total income tax expense recognised in Statement of Profit and Loss 68.15 312.30

*Including Mat credit utilisation (net) of `0.14 crores (March 31, 2023: `30.71 crores)

(ii) Other comprehensive income (OCI)

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Tax on remeasurement of defined benefit plans 0.31 (0.17)
Total tax recognised in OCI 0.31 (0.17)

(b) Reconciliation of effective tax rate:

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Profit before tax (A) 236.36 1,108.94
Enacted tax rate in India (B) 25.17% 25.17%
Expected tax expenses (C = A*B) 59.49 279.10
Other than temporary difference
Expenses disallowed under Income Tax Act, 1961 24.52 28.04
Effect of higher tax rate in subsidiaries (3.27) 9.72
Impact of rate change on deferred tax - (25.43)
Deferred Tax Liability Originating and reversing during tax holiday period - 39.49
Results of subsidiaries not taxable 29.46 1.89
MAT Credit reversal - 33.21
Tax pertaining to earlier years (10.98) 14.04
Others (5.32) 30.96
Total (D) 34.42 131.92
Profit after adjusting permanent difference 270.78 1,240.86
Expected tax expense 68.15 312.30
Actual income tax expense (benefit) 68.15 312.30
Effective tax rate 28.83% 28.16%

(c) The details of component of deferred tax assets are given under note 6.
(d) During the year ended March 31, 2023, the Parent Company elected to exercise the option permitted under Section 115BAA of the
Income-Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Parent Company has
recognised provision for income tax for the year ended March 31, 2023 and remeasured its deferred tax assets/liabilities based on
the rate prescribed in the said Section.

Annual Report 2023-24 271

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

28. Gratuity
Defined Benefit Plans
The Group has a defined benefit gratuity plan and governed by Payment of Gratuity Act, 1972. Every employee who has completed five
years or more of service is entitled to a gratuity on departure at 15 days salary for each completed year of service. The scheme is funded
through a policy with SBI Life Insurance Company Limited. The following tables summarise net benefit expenses recognised in the
Statement of Profit and Loss, the status of funding and the amount recognised in the Balance sheet for the gratuity plan:

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
A) Net employee benefit expense (recognised in employee benefits expenses)
Current service cost 10.30 8.58
Interest cost 4.53 3.80
Expected return on plan assets (0.22) (0.12)
Net employee benefit expenses 14.61 12.26
Actual return on plan asset (0.15) (0.09)
B) Amount recognised in the Balance Sheet
Defined benefit obligation 73.63 61.33
Fair value of plan assets 3.72 2.30
69.91 59.03
C) Changes in the present value of the defined benefit obligation
Opening defined benefit obligation 61.33 51.92
Current service cost 10.30 8.58
Interest cost 4.53 3.80
Benefits paid (3.73) (2.22)
Net actuarial (gains) / losses on obligation for the year recognised under OCI 1.20 (0.75)
Closing defined benefit obligation 73.63 61.33
D) Change in the fair value of plan assets
Opening fair value of plan assets 2.30 1.13
Actual return on plan assets 0.15 0.09
Contributions 4.60 2.80
Benefits paid (3.33) (1.72)
Closing fair value of plan assets 3.72 2.30
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Investments with SBI Life Insurance Company Limited 100.00% 100.00%
E) Remeasurement adjustments:
Financial (loss)/ gain on plan assets (1.20) 0.75
Remeasurement gains/(losses) recognised in other comprehensive income: (1.20) 0.75

272 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

(i) The principal assumptions used in determining gratuity for the Group’s plans are shown below:
For the year ended For the year ended
March 31, 2024 March 31, 2023
Discount rate 7.23% 7.51%
Expected rate of return on assets 7.23% 6.90%
Salary escalation 11.00% 11.00%
Attrition rate 15.00% 15.00%

The estimates of future salary increases, considered in the actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.

(ii) Disclosure related to indication of effect of the defined benefit plan on the entity’s future cashflows:
Expected benefit payments for the year ending:

For the year ended For the year ended

Year ending
March 31, 2024 March 31, 2023
Year 1 10.63 7.98
Year 2 9.99 7.46
Year 3 9.49 7.64
Year 4 8.78 7.29
Year 5 8.31 6.75
Beyond 5 years 23.56 21.91

The average duration of the defined benefit plan obligation at the end of the reporting period is 26.04 years (March 31, 2023: 26.04
years).

(iii) Sensitivity analysis:

A quantitative sensitivity analysis for significant assumption is as shown below:

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
(a) Effect of 1% change in assumed discount rate on defined benefit obligation
- 1% increase (6.87) (2.68)
- 1% decrease 3.94 4.83
(b) Effect of 1% change in assumed salary escalation rate on defined benefit obligation
- 1% increase 3.49 4.43
- 1% decrease (6.68) (2.52)
(c) Effect of 1% change in assumed attrition rate on defined benefit obligation
- 1% increase (3.82) 0.26
- 1% decrease 0.41 1.52

Defined contribution plan

Particulars March 31, 2024 March 31, 2023
Contribution to provident fund 27.07 23.75
Contribution to superannuation fund 2.33 2.14

Annual Report 2023-24 273

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

29. Share based payments - Equity settled

ESOP 2016 Scheme
The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2016 for issue
of stock options to eligible employees of the Company effective from June 09, 2016. According to the Scheme, the options granted
vest within a period of four years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as
the employee continues to be in the employment of the Company as on the date of vesting. Subject to an employee’s continued
employment with the Company, options can be exercised any time on or after the date of vesting of options as specified in the respective
grants under the Scheme.

ESOP 2018 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2018 for issue of
stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of four years,
subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues to be in the
employment of the Company as on the date of vesting. Subject to an employee’s continued employment with the Company, options
can be exercised any time on or after the date of vesting of options as specified in the respective grants under the Scheme.

ESOP 2021 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2021 for issue of
stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of five years,
subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues to be in the
employment of the Company as on the date of vesting. Subject to an employee’s continued employment with the Company, options
can be exercised any time on or after the date of vesting of options as specified in the respective grants under the Scheme.

Exercise period
Weighted
Exercise Average Fair Number of
Scheme Grant Date of Grant Year 1 25% Year 2 25% Year 3 50%
price value of option options
at grant date
ESOP 2016 Grant II December 01, 2018 292.00 167.83 537,150 01-Dec-20 01-Dec-21 01-Dec-22
ESOP 2016 Grant III April 01, 2022 350.00 199.73 270,750 01-Apr-24 01-Apr-25 01-Apr-26
ESOP 2016 Grant IV April 01, 2023 301.50 194.81 350,500 01-Apr-25 01-Apr-26 01-Apr-27
ESOP 2018 Grant I December 01, 2019 255.50 150.88 149,750 01-Dec-21 01-Dec-22 01-Dec-23
ESOP 2018 Grant II April 01, 2021 356.00 217.1 707,000 01-Apr-23 01-Apr-24 01-Apr-25
ESOP 2018 Grant III April 01, 2022 350.00 199.73 5,000 01-Apr-24 01-Apr-25 01-Apr-26

Weighted
Average
Exercise Number of Year1 Year 2 Year 3 Year 4
Scheme Grant Date of Grant Fair value
price options 20% 25% 25% 25%
of option at
grant date
ESOP 2021 Grant I April 01, 2023 301.50 197.44 787,500 01-Apr-25 01-Apr-26 01-Apr-27 01-Apr-28

The details of activity under the Scheme ESOP 2016 are summarised below:
For the year ended For the year ended
Particulars March 31, 2024 March 31, 2023
No. of options No. of options
Outstanding at the beginning of the year 258,435 1,158,460
Granted during the year 350,500 270,750
Forfeited during the year 16,185 26,640
Exercised during the year - 1,144,135
Outstanding at the end of the year 592,750 258,435
Weighted average exercise price for all the above options 321.53 292.00

274 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

The details of activity under the Scheme ESOP 2018 are summarised below:
For the year ended For the year ended
Particulars March 31, 2024 March 31, 2023
No. of options No. of options
Outstanding at the beginning of the year 947,950 1,135,685
Granted during the year - 5,000
Forfeited during the year 52,598 45,280
Exercised during the year 314,933 147,455
Outstanding at the end of the year 580,419 947,950
Weighted average exercise price for all the above options 355.95 255.50

The details of activity under the Scheme ESOP 2018 are summarised below:
For the year ended For the year ended
Particulars March 31, 2024 March 31, 2023
No. of options No. of options
Granted during the year 787,500 -
Forfeited during the year - -
Exercised during the year - -
Outstanding at the end of the year 787,500 -
Weighted average exercise price for all the above options 301.50 -

For options exercised during the year, the weighted average share price at the exercise date under under ESOP 2016 scheme, as at
March 31, 2024 ` nil per share (March 31, 2023: `58.40 per share) and under ESOP 2018 scheme, as at March 31, 2024 `81.25 per share
(March 31, 2023: `51.10 per share).

The weighted average remaining contractual life for the stock options outstanding under ESOP 2016 as at March 31, 2024 is 3.59 years
(March 31, 2023: 4.01 years) , under ESOP 2018 as at March 31, 2024 is 2.01 years (March 31, 2023: 2.90) and under ESOP 2021 as at
March 31, 2024 is 5 years (March 31, 2023: nil). The range of exercise prices for options outstanding under ESOP 2016 as at March 31,
2024 was `301.50 to `350.00 (March 31, 2023: `292.00 to `352.50) and under ESOP 2018 as at March 31, 2024 was `350.00 to `356.00
(March 31, 2023: `255.50 to `356.00) and ESOP 2021 as at March 31, 2024 was `301.50 (March 31, 2023: ` Nil)

The weighted average fair value of stock options granted during the year under ESOP 2016 scheme as at March 31, 2024 `194.81
(March 31, 2023: `167.83) , under ESOP 2018 scheme as at March 31, 2024 ` nil (March 31, 2023: `150.08) and under ESOP 2021 scheme
as at March 31, 2024 `197.44 (March 31, 2023: ` Nil). The Black Scholes valuation model has been used for computing the weighted
average fair value considering the following inputs:

March 31, 2024

ESOP 2021
ESOP 2016 scheme ESOP 2018 scheme
scheme
Grant IV Grant III Grant II Grant III Grant II Grant I Grant I
Dividend yield 0.40% 0.34% 0.39% 0.34% 0.25% 0.43% 0.40%
Expected volatility 36.4% - 41.56% 36.37% - 44.27% 26.90% 36.37% - 44.27%36.22% - 42.13% 26.3% - 27.18% 36.4% - 41.56%
Risk-free interest rate 7.10% - 7.14% 6.15% - 6.94% 7.19% - 7.43% 6.15% - 6.94% 4.74% - 5.54% 5.53% - 6.07% 7.1% - 7.14%
Weighted average 401.85 466.60 384.00 466.60 474.70 350.25 401.85
share price of `
Exercise price of ` 301.50 350.00 292.00 350.00 217.10 255.50 301.50
Expected life of 2.5 - 4.51 1.26 - 3.26 2.5 - 4.5 1.26 - 3.26 2.43 - 4.43 2.5 - 4.51 2.5 - 4.51
options granted in
years

Annual Report 2023-24 275

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

March 31, 2023

ESOP 2016 scheme ESOP 2018 scheme
Grant III Grant II Grant I Grant III Grant II Grant I
Dividend yield 0.34% 0.39% 0.39% 0.34% 0.25% 0.43%
Expected volatility 36.37% - 44.27% 26.90% 0.00% 36.37% - 44.27% 36.22% - 42.13% 26.3% - 27.18%
Risk-free interest rate 6.15% - 6.94% 7.19% - 7.43% 7.03% 6.15% - 6.94% 4.74% - 5.54% 5.53% - 6.07%
Weighted average share price of ` 466.60 384.00 514.79 466.60 474.70 350.25
Exercise price of ` 350.00 292.00 550.00 350.00 217.10 255.50
Expected life of options granted in 1.26 - 3.26 2.5 - 4.5 2.50 1.26 - 3.26 2.43 - 4.43 2.5 - 4.51
years

The expected life of the stock is based on the historical data and current expectations and is not necessarily indicative of exercise pattern
that may occur.

30. Trade payables (Details of dues to Micro and Small Enterprises as per MSMED Act,2006):
For the year ended For the year ended
March 31, 2024 March 31, 2023
The principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier 29.60 38.34
as at the end of each accounting year
The amount of interest paid by the buyer in terms of section 16, of the Micro Small and Medium Enterprise - -
Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed
day during each accounting year
The amount of interest due and payable for the period of delay in making payment (which have been paid - -
but beyond the appointed day during the year) but without adding the interest specified under Micro Small
and Medium Enterprise Development Act, 2006.
The amount of interest accrued and remaining unpaid at the end of each accounting year; and - -
The amount of further interest remaining due and payable even in the succeeding years, until such date - -
when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the Micro Small and Medium Enterprise Development Act, 2006.
Total 29.60 38.34

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
collected by the Management. This has been relied upon by the auditors.

31. Segment reporting

A. The Group is engaged in the manufacture of Active Pharmaceutical Ingredients, intermediates and formulations and the
same constitutes a single reportable business segment as per Ind AS 108.

B. Segment information for secondary segment reporting (by geographical segment)

The Company has reportable geographical segments based on location of its customers:

(i) Revenue from customers within India – Domestic

(ii) Revenue from customers outside India – Exports

Geographical segments
For the year ended March 31, 2024
Particulars
Outside India Within India Total
Revenue 3,068.07 1,972.76 5,040.83
Non-current assets (other than financial instruments and deferred tax assets) 2.32 4,378.38 4,380.70
Cost incurred to acquire capital assets - 678.31 678.31

276 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

For the year ended March 31, 2023

Particulars
Outside India Within India Total
Revenue 4,366.73 1,673.82 6,040.55
Non-current assets (other than financial instruments and deferred tax assets) 6.53 4,092.88 4,099.41
Cost incurred to acquire capital assets - 990.16 990.16

32. Related party disclosures

Names of related parties and description of relationship
Name of the related party Relationship
Associate Companies
i) ImmunoAdoptive Cell Therapy Private Limited
ii) Ethan Energy India Private Limited (w.e.f. January 03, 2023)
Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited (Formerly known as Laurus Infosystems (India) Private
Limited)
ii) HRV Global Life Sciences Private Limited
iii) Laurus Charitable Trust
iv) Kapston Facilities Management limited
v) Sterotherapeutics, LLC
vi) NSN Investments
Key Management Personnel
i) Dr. Satyanarayana Chava Executive Director & Chief executive officer
ii) Mr. V.V. Ravi Kumar Executive Director & Chief financial officer
iii) Dr. C.V. Lakshmana Rao Executive Director
iv) Mr. Chandrakanth Chereddi Non-executive Director (Resigned w.e.f. October 21, 2023)
v) Mrs. Aruna Bhinge Independent Director
vi) Dr. Rajesh Koshy Chandy Independent Director
vii) Dr. Venugopala Rao Malempati Independent Director
viii) Dr. Ravindranath Kancherla Independent Director
ix) Mr. G Venkateswar Reddy Company Secretary
Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava Brother of Dr. Satyanarayana Chava
ii) Mr. Chandrakanth Chereddi Son-in-Law of Dr. Satyanarayana Chava
iii) Mr. Krishna Chaitanya Chava Son of Dr. Satyanarayana Chava
iv) Mrs. Soumya Chava Daughter of Dr. Satyanarayana Chava

Transactions during the year:

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
a) Associate companies
i) ImmunoAdoptive Cell Therapy Private Limited
Investment made 80.02 18.40
ii) Ethan Energy India Private Limited
Investment made - 3.90
Performance guarantee deposit received - 3.73
Purchase of solar power 4.14 -
b) Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited
Software maintenance 2.67 1.76
ii) HRV Global Life Sciences Private Limited
Sale of goods 2.24 1.16

Annual Report 2023-24 277

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
iii) Laurus Charitable Trust
Donations 0.94 0.36
CSR expenditure 22.79 10.48
iv) Kapston Facilities Management limited
Factory maintenance 2.65 2.34
v) Sterotherapeutics, LLC
Sale of goods 0.04 0.08
vi) NSN Investments
Rent 4.57 3.40
Reimbursement of expenses 1.00 0.21
c) Key Management Personnel
i) Dr. Satyanarayana Chava
Remuneration 12.01 10.93
ii) Mr. V.V. Ravi Kumar
Remuneration 4.04 3.67
Rent 0.11 0.10
iii) Dr. C.V. Lakshmana Rao
Remuneration 2.71 2.45
iv) Mr. Chandrakanth Chereddi
Independent directors fee 0.22 0.40
Sitting fee 0.05 0.09
v) Mrs. Aruna Bhinge
Independent directors fee 0.20 0.20
Sitting fee 0.11 0.06
vi) Dr. Rajesh Koshy Chandy
Independent directors fee 0.33 0.33
Sitting fee 0.08 0.06
vii) Dr. Venugopala Rao Malempati
Independent directors fee 0.20 0.20
Sitting fee 0.06 0.05
viii) Dr. Ravindranath Kancherla
Independent directors fee 0.20 0.20
Sitting fee 0.05 0.05
ix) Mr. G.Venkateswar Reddy
Remuneration 0.84 0.67
d) Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava
Remuneration 1.53 1.16
ii) Mr. Krishna Chaitanya Chava
Remuneration 1.96 1.56
iii) Mrs. Soumya Chava
Remuneration 0.77 -
Rent 0.22 0.21

278 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Closing balances (Unsecured)

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
a) Enterprise over which Key Management Personnel exercise significant influence
i) Chemiasoft Private Limited
Trade payables 0.11 -
ii) HRV Global Life Sciences Private Limited
Trade receivable 0.71 0.39
iii) Kapston Facilities Management limited
Trade payables 0.19 0.17
iv) Sterotherapeutics, LLC
Trade receivable 0.04 -
v) NSN Investments
Security Deposit 0.92 0.92
b) Key Management Personnel
i) Dr. Satyanarayana Chava
Remuneration payable - 0.41
ii) Mr. V.V. Ravi Kumar
Remuneration payable - 0.14
Rent payable 0.01 0.01
iii) Dr. C.V. Lakshmana Rao
Remuneration payable - 0.09
iv) Mr. Rajesh Chandy
Remuneration payable 0.11 -
v) Mrs. Aruna Bhinge
Remuneration payable 0.01 -
vi) Mr. G.Venkateswar Reddy
Remuneration payable 0.12 0.11
c) Relatives of Key Management Personnel
i) Mr. Narasimha Rao Chava
Remuneration payable 0.26 0.22
ii) Mr. Krishna Chaitanya Chava
Remuneration payable 0.32 0.25
iii) Mrs. Soumya Chava
Remuneration payable 0.15 -
Rent payable 0.02 0.02

The advance given to subsidiaries are in the nature of trade advances against orders for supply of goods & services and hence not
disclosed as required under regulation 53 (f) read with para A of Schedule V of Securities And Exchange Board Of India (Listing
Obligations And Disclosure Requirements) Regulations, 2015.

As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Group as a whole, the amount pertaining
to the Key Management personnel and their relatives is not ascertainable and, therefore, not included above.

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. This assessment is
undertaken each financial year through examining the financial position of the related party and the market in which the related party
operates. Outstanding balances at the year-end are unsecured.

Annual Report 2023-24 279

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

33. Significant accounting judgements, estimates and assumptions

The preparation of the Group’s Consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods. 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. In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are
disclosed in notes to financial statements.

(i) Taxes
The Group has a Minimum Alternate Tax (MAT) credit of `0.66 as on March 31, 2024 (March 31, 2023: `0.87). The Group
recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Group will pay normal
income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. The Group based
on its future projections of profit believes that the MAT credit would be utilised by financial year 2024-25. During the year
ended March 31, 2023, the Holding Company elected to exercise the option permitted under Section 115BAA of the Income-
Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Holding Company has
recognised provision for income tax for the year ended March 31, 2023 and remeasured its deferred tax assets/liabilities
based on the rate prescribed in the said Section.

(ii) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model,
which is dependent on the terms and conditions of the grant. This estimation requires determination of the most appropriate
inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making
assumptions about them. The Black Scholes valuation model has been used by the Management for share-based payment
transactions. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed
in Note 29.

(iii) Defined employee benefit plans (Gratuity)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates for the respective countries. Further details about gratuity obligations are given in Note 28.

(iv) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow
(‘DCF’) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments. See note 34, 35 and 36 for further disclosures.

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

(v) Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the
useful lives and residual values of all its property, plant and equipment estimated by the management. The management
believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant
and equipment, though these rates in certain cases are different from lives prescribed under Schedule II of the Companies
Act, 2013.

(vi) Impairment of goodwill

The Group estimates the value-in-use of the cash generating units (CGUs) based on the future cash flows after considering
current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic
and regulatory conditions. The estimated cash flows are developed using internal forecasts. The discount rates used for the
CGUs represent the weighted average cost of capital based on the historical market returns of comparable companies.

(vii) Recognition and measurement of other provisions:

The recognition and measurement of other provisions is based on the assessment of the probability of an outflow of
resources, and on past experience and circumstances known at the closing date. The actual outflow of resources at a future
date may therefore, vary from the amount included in other provisions.

(viii) Impairment of non-financial assets - Refer Note (2(l))

(ix) Inventories - Refer Note (2(k))
(x) Leases: whether an arrangement contains a lease; lease classification- Refer Note (2(i))
(xi) Contingent liabilities: Measurement and likelihood of occurrence of provisions and contingencies.- Refer Note (39(c))
(xii) Revenue and receivables - Refer Note (2 (e) and 2(p))

34. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments, other than
those with carrying amounts that are reasonable approximations of fair values:

Carrying value Fair value

March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
Financial assets at fair value through profit or loss:
Investments 3.41 3.41 3.41 3.41
Derivative contracts 0.22 0.98 0.22 0.98
Financial assets at cost (net of share of loss):
Investments 120.57 46.49 120.57 46.49
Financial assets at amortised cost:
Loans 0.95 0.97 0.95 0.97
Other financial assets 56.20 65.72 56.20 65.72
Trade receivables 1,662.92 1,580.44 1,662.92 1,580.44
Cash and cash equivalents 138.94 45.67 138.94 45.67
Other balances with banks 2.71 2.79 2.71 2.79
Financial liabilities at amortised cost:
Borrowings (Non-current and current) 2,507.05 1,971.97 2,507.05 1,971.97
Interest accrued 9.31 8.62 9.31 8.62
Trade payables 1,051.24 710.65 1,051.24 710.65
Capital creditors and others 129.45 183.71 129.45 183.71
Lease liabilities 70.35 43.12 70.35 43.12
Gross obligation liability to acquire Non-controlling interest 42.33 91.20 42.33 91.20

The management assessed that cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments. Further, the management has assessed that fair
value of borrowings approximate their carrying amounts largely since they are carried at floating rate of interest.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
Annual Report 2023-24 281
LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

35. Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at March 31, 2024:
Fair value measurement using
Significant Significant
Quoted prices in
Date of valuation observable unobservable
Total active markets
inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets at fair value through profit and loss:
Investments March 31, 2024 3.41 - - 3.41
Financial assets at fair value through profit and loss:
Derivative financial instruments March 31, 2024 0.22 - 0.22 -

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at March 31, 2023:
Fair value measurement using
Significant Significant
Quoted prices in
Date of valuation Total observable unobservable
active markets
inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets at fair value through profit and loss:
Investments March 31, 2023 3.41 - - 3.41
Financial assets at fair value through profit and loss:
Derivative financial instruments March 31, 2023 0.98 - 0.98 -

Measurement of fair value

Valuation techniques
The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for assets and liabilities carried at
fair value through profit or loss.

Type Valuation Technique

Assets measured at fair value:
Investments Discounted cash flow method
Derivative financial instruments The fair value is determined using quoted forward exchange rates at the reporting date and
present value calculations based on high credit quality yield curve in reporting currency.

36. Financial risk management objectives and policies

Financial Risk Management Framework
The Group is exposed primarily to Credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and
interest rate), which may adversely impact the fair value of its financial instruments. The Group assesses the unpredictability of the
financial environment and seeks to mitigate potential adverse effects on the financial performance of the Group.

Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well
as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous
basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject
to concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments, cash and
cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Group result in material
concentration of credit risk, except for trade receivables.

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

Trade receivables:
The customer credit risk is managed by the Group’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on the individual credit limits are defined in accordance with this
assessment and outstanding customer receivables are regularly monitored. Of the trade receivables balance, `538.10 in aggregate
(as at March 31, 2023 `487.71 is due from the Group’s customers individually representing more than 5% of the total trade
receivables balance and accounted for approximately 32%(March 31, 2023: 31%) of all the receivables outstanding. The Group’
receivables turnover is quick and historically, there was no significant defaults on account of those customer in the past. Ind AS
requires an entity to recognise in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recognised in accordance with Ind AS 109. The Group assesses
at each date of statements of financial position whether a financial asset or a group of financial assets is impaired. Expected
credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time
expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The Group has
used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The
provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.

Before accepting any new customer, the Group uses an internal credit scoring system to assess the potential customer’s credit quality
and defines credit limits by customer. Limits and scoring attributed to customers are reviewed on periodic basis. The expected
credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

Exposure to credit risk:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk includes
the carrying amount of balances with trade receivables and other financial assets.

Other than trade receivables the Company has no significant class of financial assets that is past due but not impaired.

Liquidity risk
Liquidity risk refers to the risk that the Group cannot meet its financial obligations. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Group manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

Up to 1 Year 1 to 3 years 3 to 5 years > 5 years Total

March 31, 2024:
Non-current borrowings (including 319.52 613.08 155.16 30.00 1,117.76
current maturities)
Current borrowings 1,389.29 - - - 1,389.29
Interest accrued 9.31 - - - 9.31
Trade payables 1,051.24 - - - 1,051.24
Other payables 129.45 - - 129.45
Gross obligation liability to acquire - 42.33 - - 42.33
Non‑controlling interest
2,898.81 655.41 155.16 30.00 3,739.38
March 31, 2023:
Non-current borrowings (including 247.25 681.49 47.46 - 976.20
current maturities)
Current borrowings 995.77 - - - 995.77
Interest accrued 8.62 - - - 8.62
Trade payables 710.65 - - - 710.65
Other payables 183.71 - - 183.71
Gross obligation liability to acquire - - 91.20 - 91.20
Non‑controlling interest
2,146.00 681.49 138.66 - 2,966.15

Excludes lease liabilities. Refer note no. 39A for contractual cash flows relating leases

Annual Report 2023-24 283

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest
rates, credit, liquidity and other market changes. The Group’s exposure to market risk is primarily on account of foreign currency
exchange rate risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in
market interest rates. In order to optimise the Group’s position with regards to interest income and interest expenses and to
manage the interest rate risk, treasury performs a comprehensive corporate interest risk management by balancing the proportion
of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings
affected, after the impact of hedge accounting. With all other variables held constant, the Group’s profit before tax is affected
through the impact on borrowings, as follows:

Change in basis points Effect on profit before tax

Particulars
Increase Decrease Decrease Increase
March 31, 2024
Indian Rupees 0.50% 0.50% (9.26) 9.26
US Dollars 0.50% 0.50% (1.88) 1.88
March 31, 2023
Indian Rupees 0.50% 0.50% (7.01) 7.01
US Dollars 0.50% 0.50% (3.36) 3.36

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.

Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic
environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange rates in those
countries. The risks primarily relate to fluctuations in US Dollar against the functional currencies of the Group. The Group, as per
its risk management policy, uses derivative instruments primarily to hedge foreign exchange. The Group evaluates the impact
of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using
derivative financial instruments in line with its risk management policies. The information on derivative instruments is as follows:

a) Forward Contract (Derivatives):

Forward contract outstanding as at Balance Sheet date:
March 31, 2024 Sell US $ 10,000,000 Designated as fair value hedge - receivables
March 31, 2024 Sell ZAR 2,74,87,587.24 Designated as fair value hedge - receivables
March 31, 2023 Sell US $ 45,000,000 Designated as fair value hedge - receivables

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

b) Details of Unhedged Foreign Currency Exposure:

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

March 31, 2024 March 31, 2023

Particulars Currency Amount in Amount in
Amount in ` Conversion rate Amount in ` Conversion rate
Foreign currency foreign currency
Secured loans USD 32,207,468 268.53 83.37 49,024,390 403.06 82.22
Unsecured loans USD 6,344,535 52.90 83.37 7,322,340 60.20 82.22
Interest accrued USD 261,090 2.18 83.37 300,126 2.47 82.22
but not due on
borrowings
Trade payables USD 26,401,421 220.12 83.37 16,565,841 136.20 82.22
EURO 761,514 6.87 90.22 230,088 2.06 89.61
GBP 28,917 0.30 105.29 31,660 0.32 101.87
CHF - - 92.09 3,507 0.03 89.70
Capital creditors USD 306 0.00 83.37 91,608 0.75 82.22
GBP - - 105.29 13,887 0.14 101.87
EURO 44,808 0.40 90.22 5,391 0.05 89.61
Trade receivables USD 70,793,674 590.23 83.37 55,564,229 456.83 82.22
EURO 7,602,959 68.59 90.22 5,874,165 52.64 89.61
GBP 67,207 0.71 105.29 65,957 0.67 101.87
CAD 618,149 3.79 61.33 2,530,203 15.35 60.65
JPY - - 0.55 250,000 0.02 0.62
Cash and cash USD 5,077,586 42.33 83.37 64 0.00 82.22
equivalents*
JPY 2,000 0.00 0.55 11,000 0.00 0.62

*Amount less than Indian Rupees 100,000

c) Foreign currency sensitivity:

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all
other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets
and liabilities including foreign currency derivatives. The Group’s exposure to foreign currency changes for all other currencies is
not material.

Change in forex rate Effect on profit before tax

Increase/
Increase Decrease
(Decrease)
March 31, 2024
USD 1.00% 1.00% 0.89 (0.89)
EURO 1.00% 1.00% 0.61 (0.61)
March 31, 2023
USD 1.00% 1.00% (1.46) 1.46
EURO 1.00% 1.00% 0.51 (0.51)

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LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

37. Group Information

Information about subsidiaries and associates
The consolidated financial statements of the Group includes subsidiaries listed in the table below:

Name Principal activities Country of incorporation March 31, 2024 March 31, 2023
Sriam Labs Private Limited Active Pharmaceutical Ingredients (APIs) India 100% 100%
and Intermediates
Laurus Synthesis Private Limited Contract Development & Manufacturing India 100% 100%
(Refer note 5) Organisation (CDMO)
Laurus Bio Private Limited Develops novel enzymatic solutions for India 91.14% 76.60%
(Refer note 3) Industrial Biotechnology and Animal Origin
Free recombinant proteins and enzymes for
Biopharma.
Laurus Holdings Limited Business support services in the fields of UK 100% 100%
pharmaceuticals
Laurus Generics Inc. Pharmaceutical and related services USA 100% 100%
Laurus Generics GmbH Pharmaceutical and related services Germany 100% 100%
Laurus Generics SA (Pty) Ltd. Pharmaceutical and related services South Africa 100% 100%
Laurus Specialty Chemicals Private Pharmaceutical and related services India 100% 100%
Limited (Refer note 1)
Immunoadoptive Cell Therapy Advanced cell and gene therapy India 34.89% 27.57%
Private Limited (Refer note 4)
Ethan Energy India Private Limited Power generation India 26.00% 26.00%
(Refer note 2)

1) During the year ended March 31, 2023, the Company incorporated wholly owned subsidiary, Laurus Specialty Chemicals Private
Limited (LSCPL) in India on December 01, 2022. LSCPL has not commenced its operations and no share capital has been infused as
at March 31, 2023.

2) Pursuant to investment agreement entered into by the Company with Ethan Energy India Private Limited (Ethan Energy), capital
contributions have been made into Ethan Energy in terms of the aforesaid agreement during the quarter ended March 31, 2023.
The Company has accounted for its investment in Ethan Energy as an associate w.e.f January 03, 2023.

3) During the year ended March 31, 2024, the Company acquired additional 14.54% stake in Laurus Bio Private Limited (LBPL) for a
purchase consideration of `71.60 crores. Consequently, the total shareholding in LBPL has increased to 91.14%. (As on March 31,
2023, the Company holds 76.60%).

4) During the year ended March 31, 2024, Pursuant to the investment agreement entered into by the Company with Immunoadoptive
Cell Therapy Private Limited (ImmunoAct), the Company made further capital contribution towards tranche 1 of Series B
Compulsorily convertible preference shares (CCPS) amounting to `48.01 crores during the quarter ended September 30, 2023
and `32.01 crores towards tranche 2 of Series B CCPS during the quarter ended March 31,2024 in ImmunoAct. Accordingly, the
Company’s stake in ImmunoAct has increased to 34.89% as on March 31, 2024. (As on March 31, 2023, the Company holds
27.57%)

5) During the year ended March 31, 2024 , the Company infused further equity into Laurus Synthesis Private Limited by subscribing to
rights issue offered for acquiring 7,600 equity shares of `10 each for a consideration of `99.13 crores.

286 Chemistry for Better Living

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Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

38. Capital management

For the purpose of the Group’s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders. The primary objective of the Group’s capital management is to maximise the
shareholder value.

The Group manages its capital structure in consideration to the changes in economic conditions and the requirements of the
financial covenants. The Group monitors capital using a gearing ratio, which is net debt divided by total equity. The Group intends to
keep the gearing ratio between 0.4 to 1.5.The Group includes within net debt, borrowings including interest accrued on borrowings,
less cash and short-term deposits.

Particulars March 31, 2024 March 31, 2023

Borrowings including interest accrued on borrowings (Note 13) 2,516.36 1,980.59
Less: cash and cash equivalents; other balances with banks (Note 10A and 10B) (141.65) (48.46)
Net debt 2,374.71 1,932.13
Equity 107.79 107.73
Other equity 4,003.16 3,929.80
Total Equity 4,110.95 4,037.53
Gearing ratio (Net debt/ Total equity) 0.58 0.48

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2024.

39. Commitments and Contingencies

A. Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Operating lease commitments - Group as lessee

The Group recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and
removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement
of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the
shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-ofuse assets are determined on the same
basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication
that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of
the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If
that rate cannot be readily determined, the Group uses incremental borrowing rate.

The Group has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term
of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are
recognised as an expense on a straight-line basis over the lease term.

Annual Report 2023-24 287

LAURUS LABS LIMITED CORPORATE OVERVIEW YEAR IN REVIEW STRATEGIC REVIEW

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crores rupees except for share data or as otherwise stated)

Following are the changes in the carrying value of right of use assets for the year ended March 31, 2024 and
March 31, 2023
Particulars March 31, 2024 March 31, 2023
Opening Balance 133.43 138.05
Additions 56.56 3.08
Depreciation (11.67) (7.70)
Closing Balance 178.32 133.43

The aggregate depreciation expense on ROU assets is included under depreciation and amortisation expense in the statement of
profit and loss

The following is the movement in lease liabilities during the year ended March 31, 2024 and March 31,2023
Particulars March 31, 2024 March 31, 2023
Opening Balance 43.12 44.63
Additions 56.56 3.08
Finance cost accrued during the year 3.96 3.23
Payment of lease liabilities (33.29) (7.83)
Closing Balance 70.35 43.12

The following is the break-up of current and non-current lease liabilities as at March 31, 2024 and March 31, 2023
Particulars March 31, 2024 March 31, 2023
Non-current lease liabilities 62.16 37.44
Current lease liabilities 8.19 5.68
Total 70.35 43.13

The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2024 and
March 31,2023 on discounted basis
Particulars March 31, 2024 March 31, 2023
Within one year 8.19 5.68
After one year but not more than five years 42.67 29.90
More than five years 19.49 7.54
70.35 43.12

B. Commitments
Particulars March 31, 2024 March 31, 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for 260.22 342.65

288 Chemistry for Better Living

 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

C. Contingent Liabilities
Particulars March 31, 2024 March 31, 2023
(i) Outstanding bank guarantees (excluding performance obligations) 70.78 79.89
(ii) Claims arising from disputes not acknowledged as debts - direct taxes 16.02 8.24
(iii) Claims arising from disputes not acknowledged as debts - indirect taxes 59.55 56.53
(iv) On account of provident fund liability 7.57 7.57

40. Other statutory information

i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for
holding any Benami property.

ii) The Group does not have any transactions with companies struck off.

iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Group has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

vi) The Group 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Group (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vii) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

viii) The Group does not have 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.

Annual Report 2023-24 289

 41. Summary of net assets and profit and loss:

290
Net Assets* Share in Profit/ (Loss) Share in other comprehensive income Share in total comprehensive income

As % of As % of As % of As % of
As % of As % of As % of As % of consolidated consolidated consolidated consolidated
Name of the entity consolidated Amount consolidated Amount consolidated Amount consolidated Amount other Amount other Amount total Amount total Amount
net assets net assets profit/ (loss) profit/ (loss) comprehensive comprehensive comprehensive comprehensive
income income income income

March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023

A. Parent 102.22% 4,207.05 99.05% 4,010.33 132.99% 223.70 95.45% 760.38 85.39% (0.76) 136.21% 0.79 139.86% 222.94 96.62% 761.17
LAURUS LABS LIMITED

B. Subsidiary incorporated
in India
Sriam Labs Private Limited 1.35% 55.75 1.14% 46.01 5.81% 9.77 0.99% 7.91 4.49% (0.04) -1.72% (0.01) 6.10% 9.73 1.00% 7.90

Chemistry for Better Living

for the year ended March 31, 2024

Laurus Synthesis Private 2.69% 110.87 1.00% 40.68 -17.17% (28.89) 2.79% 22.21 5.62% (0.05) -1.72% (0.01) -18.16% (28.94) 2.82% 22.20
Limited
Laurus Bio Private Limited 1.28% 52.52 1.19% 48.16 2.61% 4.39 1.78% 14.19 4.49% (0.04) -32.76% (0.19) 2.73% 4.35 1.78% 14.00
Laurus Specialty Chemicals 0.00% 0.10 0.00% 0.10 - - - - - - - - - - - -
Private Limited
C. Subsidiary incorporated
outside India
Laurus Holdings Limited -0.06% (2.35) 0.32% 13.10 -8.69% (14.62) -0.93% (7.40) - - - - -9.17% (14.62) -0.94% (7.40)
Laurus Generics SA (Pty) 0.26% 10.72 0.66% 26.71 -8.82% (14.84) 0.69% 5.51 - - - - -9.31% (14.84) 0.70% 5.51
Limited
Total 107.75% 4,434.66 103.37% 4,185.10 106.72% 179.51 100.77% 802.80 100.00% (0.89) 100.00% 0.58 112.06% 178.62 101.98% 803.38
Non-controlling interest 0.11% 4.62 0.27% 11.13 1.02% 1.72 0.42% 3.32 - - - - 1.08% 1.72 0.42% 3.32
CORPORATE OVERVIEW

Notes to Financial Statements

D. Associate
Immunoadoptive Cell N.A N.A N.A N.A -3.14% (5.29) -0.36% (2.85) - - - - - - - -
Therapy Private Limited
Ethan Energy India Private N.A N.A N.A N.A -0.39% (0.65) -0.04% (0.36)
Limited
Consolidation adjustments -7.87% (323.71) -3.64% (147.57) -4.21% (7.08) -0.79% (6.27) - - - - -13.14% (20.94) -2.40% (18.90)
Net amount 100.00% 4,115.57 100.00% 4,048.66 100.00% 168.21 100.00% 796.64 100.00% (0.89) 100.00% 0.58 100.00% 159.40 100.00% 787.80

* Net assets means total assets minus total liabilities excluding shareholders funds.
YEAR IN REVIEW

Note:
The disclosure as above represents separate information for each of the consolidated entities before elimination of inter-company transactions. The net impact on elimination of inter-
company transactions/profits/consolidation adjustments have been disclosed separately. Based on the group structure, the management is of the view that the above disclosure is
appropriate under requirements of the Companies Act, 2013.
STRATEGIC REVIEW

(All amounts in crores rupees except for share data or as otherwise stated)
 CREATING VALUE FOR STAKEHOLDERS CONDUCTING BUSINESS RESPONSIBLY STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to Financial Statements

for the year ended March 31, 2024
(All amounts in crorer rupees except for share data or as otherwise stated)

42. 
The Code on Social Security, 2020 (“Code”) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which
the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes into effect and
will record any related impact in the period the Code becomes effective.

For and on behalf of the Board of Directors

LAURUS LABS LIMITED

Dr. Satyanarayana Chava V.V. Ravi Kumar

Executive Director & Chief Executive Director & Chief
Executive Officer Financial Officer
DIN: 00211921 DIN: 01424180

Place: Hyderabad G.Venkateswar Reddy

Date: April 25, 2024 Company Secretary

Annual Report 2023-24 291

LAURUS LABS LIMITED

Notice

Notice is hereby given that the 19 th Annual General Meeting of of the Members of the Company be and is hereby accorded
the Members of Laurus Labs Limited (the “Company”) will be held for appointment of Mr. Krishna Chaitanya Chava, having
through Video Conferencing (VC) at 3.00 p.m. on Thursday the Director Identification Number 06831883, as Director of the
11th day of July 2024, to transact the following business: Company whose period of office is liable to determination by
retirement of directors by rotation u/s. 152 of the Companies
ORDINARY BUSINESS: Act, 2013”
1. To consider and adopt the audited Standalone Financial
“RESOLVED FURTHER THAT Dr. Satyanarayana Chava,
Statements of the Company for the Financial Year ended
CEO of the Company, Mr. VV Ravi Kumar, Executive Director
March 31, 2024, the reports of Board of Directors and
& CFO of the Company and Mr. G. Venkateswar Reddy,
Auditors thereon
Company Secretary of the Company be and are hereby
2. To consider and adopt the audited Consolidated Financial severally authorised to do all the needful activities in this
Statements of the Company for the Financial Year ended regard including any filings with the Registrar of Companies,
March 31, 2024 and report of Auditors thereon. Andhra Pradesh”

3. To approve and ratify the interim dividend on equity shares @ 8. 

APPOINTMENT OF Ms. SOUMYA CHAVA AS
`0.40 per share already paid for the Financial Year 2023‑24. DIRECTOR
4. To approve and ratify the 2nd interim dividend on equity To consider and, if thought fit, to pass with or
shares @ `0.40 per share already paid for the Financial Year without modification, the following resolution as an
2023-24. Ordinary Resolution:

5. To appoint a Director in place of Mr. V V Ravi Kumar (DIN “RESOLVED THAT in terms of Section 161 and other
01424180) who retires by rotation and, being eligible, offers applicable provisions of the Companies Act, 2013 together
himself, for re-appointment. with applicable rules and provisions made thereunder
and in terms of Articles of Association of the Company,
SPECIAL BUSINESS: consent of the Members of the Company be and is hereby
6. TO APPROVE THE REMUNERATION PAYABLE accorded for appointment of Ms. Soumya Chava, having
TO COST AUDITORS FOR THE FINANCIAL YEAR Director Identification Number 06831892, as Director of the
ENDING 2024‑25 Company whose period of office is liable to determination by
To consider, and if thought fit, to pass, with or retirement of directors by rotation u/s. 152 of the Companies
without modification(s) the following resolution as an Act, 2013”
Ordinary Resolution: “ RESOLVED FURTHER THAT Dr. Satyanarayana Chava,

“RESOLVED THAT pursuant to the provisions of Section 148 CEO of the Company, Mr. VV Ravi Kumar, Executive Director
and other applicable provisions, if any, of the Companies & CFO of the Company and Mr. G. Venkateswar Reddy,
Act, 2013 and rules made thereunder, the Cost Auditors, Company Secretary of the Company be and are hereby
M/s. Sagar & Associates, appointed by the Board of severally authorised to do all the needful activities in this
Directors of the Company, to conduct the audit of the cost regard including any filings with the Registrar of Companies,
records of the Company for the financial year 2023-24, be Andhra Pradesh”
paid a remuneration of `5,50,000/- (Rupees Five lakh and
9. 
TO APPROVE THE APPOINTMENT OF MR.
Fifty thousand only) per annum and out of pocket & other
KRISHNA CHAITNANYA CHAVA (DIN 06831883)
expenses and GST at actuals.”
AS EXECUTIVE DIRECTOR OF THE COMPANY
“RESOLVED FURTHER THAT the Board of Directors of the To consider and, if thought fit, to pass the following resolution
Company be and are hereby authorised to do all such acts, with or without modifications, as Special Resolution:
matters, deeds and things as may be necessary to give effect
to the above resolution.” “RESOLVED THAT pursuant to the recommendation of the
Nomination and Remuneration Committee and approval of
7. 
APPOINTMENT OF Mr. KRISHNA CHAITANYA the Board of Directors of the Company and in accordance
CHAVA AS DIRECTOR with sections 196, 197, 198, 203 and all other applicable
To consider and, if thought fit, to pass with or provisions of the Companies Act 2013 (“the Act”) and the
without modification, the following resolution as an Companies (Appointment and Remuneration of Managerial
Ordinary Resolution: Personnel) Rules, 2014 (including any statutory modification
or reenactment thereof for the time being in force) read with
“RESOLVED THAT in terms of Section 161 and other Schedule V to the Act, as amended from time to time, and
applicable provisions of the Companies Act, 2013 together pursuant to Regulation 17(6)(e) of SEBI (LODR) Regulations,
with applicable rules and provisions made thereunder and 2015, consent of the members of the Company be and
in terms of Articles of Association of the Company, consent is hereby accorded for the appointment of Mr. Krishna

292 Chemistry for Better Living

 NOTICE

Chaitanaya Chava, having Director Identification Number (B) 75% or more of the Target = bonus equal
06831883, as Executive Director of the Company, whose to the percentage of the Target achieved
office will be liable to determination by retirement by multiplied by the 25% of Annual Salary (as
rotation, for a period of five (05) years effective from April increased on a yearly basis),
25, 2024 up to April 24, 2029 on the following remuneration
terms and conditions: (d) Leave entitlement
During the Term, the Executive Director shall be entitled
(a) Salary: (in addition to the usual public and bank holidays) to 20
The Executive Director’s aggregate salary shall be (twenty) calendar days’ of paid leave in each year as
`1,60,00,000 (Rupees one crore and sixty lakhs only) per the Company policy.
per annum payable in 12 (twelve) monthly instalments
(“Annual Salary”). The aforesaid salary shall be (e) Benefits
subject to deductions for income tax, contributions The Executive Director shall be entitled to participate,
to provident fund, gratuity fund or superannuation along with the other employees of the Company, in
fund and all other statutory deductions required to be any of the employee benefit and compensation plans,
made by the Company in accordance with applicable whether statutory or otherwise, as may be generally
Laws. The Annual Salary shall stand increased by 10% available to employees of the Company including
every financial year (effective from April 1, of each car, leave travel allowance, gratuity, medical, health,
year and the first due date for such increment shall be insurance plans but excluding employee stock option
April 1, 2025). plans. The Executive Director shall be provided with one
recognised club membership of his choice for himself
(b) Business Expenses: and his family at Hyderabad and the Executive Director
The Executive Director shall be reimbursed by the shall inform the Board of his choice.”
Company for all reasonable out of pocket expenses
“RESOLVED FURTHER THAT the Board of Directors of
incurred pertaining to or in connection with the
the Company (including its Committee thereof) and / or
performance of his duties in line with the Company’s
Company Secretary of the Company, be and are hereby
expenses policy. In the event, the Executive Director
authorised to do all such acts, deeds, matters and things as
is required to travel, whether within India or abroad in
may be considered necessary, desirable or expedient to give
relation to the obligations imposed on the Executive
effect to this resolution.”
Director, such travel shall be in accordance with the
Company travel policy. 10. TO APPROVE THE APPOINTMENT OF MS. SOUMYA
CHAVA (DIN 06831892) AS EXECUTIVE DIRECTOR
(c) Annual Bonus:
OF THE COMPANY
(i) The Company shall pay the Executive Director
To consider and, if thought fit, to pass the following resolution
a bonus of 25% of his Annual Salary as may be
with or without modifications, as Special Resolution:
determined in accordance with (ii) below, based
upon achievement of performance criteria in “RESOLVED THAT pursuant to the recommendation of the
respect of each completed financial year with Nomination and Remuneration Committee and approval of
effect from April 1, 2024. the Board of Directors of the Company and in accordance
with sections 196, 197, 198, 203 and all other applicable
(ii) For every financial year, the Executive Director
provisions of the Companies Act 2013 (“the Act”) and the
shall be eligible to receive a bonus (which shall
Companies (Appointment and Remuneration of Managerial
be paid immediately upon the Board approving
Personnel) Rules, 2014 (including any statutory modification
the audited accounts of the Company for the
or reenactment thereof for the time being in force) read with
corresponding financial year) based upon the
Schedule V to the Act, as amended from time to time, and
Company’s achievement of the consolidated
pursuant to Regulation 17(.6)(e) of SEBI (LODR) Regulations,
EBITDA projection for a financial year (on
2015, consent of the members of the Company be and
the basis that the consolidated non-interest
is hereby accorded for the appointment of Ms. Soumya
financial charges are deducted while calculating
Chava, having Director Identification Number 06831892,
the consolidated EBITDA and any EBITDA from
as Executive Director of the Company, whose office will be
acquisitions during the year be excluded, if it is so
liable to determination by retirement by rotation, for a period
included in the consolidated EBITDA) (“Target”)
of five (05) years effective from April 25, 2024 up to April 24,
in the following manner:
2029 on the following remuneration terms and conditions:
(A) Less than 75% of the Target = zero bonus;

Annual Report 2023-24 293

LAURUS LABS LIMITED

Notice

(a) Salary: (d) Leave entitlement

The Executive Director’s aggregate salary shall be During the Term, the Executive Director shall be entitled
`1,04,00,000 (Rupees one crore and four lakhs only) (in addition to the usual public and bank holidays) to 20
per annum payable in 12 (twelve) monthly instalments (twenty) calendar days’ of paid leave in each year as
(“Annual Salary”). The aforesaid salary shall be per the Company policy.
subject to deductions for income tax, contributions
to provident fund, gratuity fund or superannuation (e) Benefits
fund and all other statutory deductions required to be The Executive Director shall be entitled to participate,
made by the Company in accordance with applicable along with the other employees of the Company, in
Laws. The Annual Salary shall stand increased by 10% any of the employee benefit and compensation plans,
every financial year (effective from April 1, of each whether statutory or otherwise, as may be generally
year and the first due date for such increment shall be available to employees of the Company including
April 1, 2025). car, leave travel allowance, gratuity, medical, health,
insurance plans but excluding employee stock option
(b) Business Expenses: plans. The Executive Director shall be provided with
The Executive Director shall be reimbursed by the one recognised club membership of her choice for
Company for all reasonable out of pocket expenses herself and her family at Hyderabad and the Executive
incurred pertaining to or in connection with the Director shall inform the Board of her choice.”
performance of her duties in line with the Company’s
“RESOLVED FURTHER THAT the Board of Directors of
expenses policy. In the event, the Executive Director
the Company (including its Committee thereof) and / or
is required to travel, whether within India or abroad in
Company Secretary of the Company, be and are hereby
relation to the obligations imposed on the Executive
authorised to do all such acts, deeds, matters and things as
Director, such travel shall be in accordance with the
may be considered necessary, desirable or expedient to give
Company travel policy.
effect to this resolution.”
(c) Annual Bonus:
11. 
TO APPROVE THE APPOINTMENT OF MR.
(i) The Company shall pay the Executive Director KARNAM SEKAR AS INDEPENDENT DIRECTOR
a bonus of 25% of Annual Salary as may be FOR A PERIOD OF 5 YEARS
determined in accordance with (ii) below, based
To consider and, if thought fit, to pass with or without
upon achievement of performance criteria in
modification, the following resolution as a Special Resolution:
respect of each completed financial year with
effect from April 1, 2024. “RESOLVED THAT in terms of Section 149,152 read with
Schedule IV of the Companies Act, 2013 together with
(ii) For every financial year, the Executive Director
applicable rules and provisions made thereunder and
shall be eligible to receive a bonus (which shall
pursuant to SEBI (LODR) Regulations, 2015 and in terms
be paid immediately upon the Board approving
of Articles of Association of the Company and based on
the audited accounts of the Company for the
the approval and recommendation of the Nomination and
corresponding financial year) based upon the
Remuneration Committee, and that of the Board, consent
Company’s achievement of the consolidated
of the Members of the Company be and is hereby accorded
EBITDA projection for a financial year (on
for the appointment of Mr. Karnam Sekar having Director
the basis that the consolidated non-interest
Identification Number 07400094, as Independent Director
financial charges are deducted while calculating
of the Company not liable to retire by rotation, for a first
the consolidated EBITDA and any EBITDA from
term of 5 (five) years with effect from April 25, 2024 i.e. up to
acquisitions during the year be excluded, if it is so
April 24, 2029”.
included in the consolidated EBITDA) (“Target”)
in the following manner: “RESOLVED FURTHER THAT, subject to applicable
provisions of the Companies Act, 2013 and rules made
(A) Less than 75% of the Target = zero bonus;
thereunder, Mr.Karnam Sekar be paid a fixed remuneration
(B) 75% or more of the Target = bonus equal to the of `20 lakhs (Rupees Twenty lakhs only) per annum and also
percentage of the Target achieved multiplied be paid a sitting fee for attending board meeting(s) and
by the 25% of Annual Salary (as increased on a committee meeting(s), if any on par with other independent
yearly basis), directors of the Company”.

294 Chemistry for Better Living

 NOTICE

“RESOLVED FURTHER THAT Dr. C. Satyanarayana, b. Appointment of proxy to attend and cast vote on
Executive Director & CEO of the Company, and Mr. V V Ravi behalf of the member is not available.
Kumar, Executive Director & CFO of the Company and Mr. G.
c. Body Corporates are entitled to appoint authorised
Venkateswar Reddy, Company Secretary of the Company
representatives to attend the e-AGM through VC
be and are hereby severally authorised to do all the needful
and participate thereat and cast their votes through
activities in this regard including any filings with the Registrar
e-voting.
of Companies, Andhra Pradesh or with any other regulatory
authorities”. 6. The Register of Members and Share Transfer Books of
the Company will remain closed from July 5, 2024 to July
11, 2024 (both days inclusive) for the purpose of Annual
By order of the Board General Meeting.
Laurus Labs Limited
7. The Securities and Exchange Board of India (SEBI) has
mandated the submission of Permanent Account Number
G. Venkateswar Reddy (PAN) by every participant in securities market. Members
Company Secretary holding shares in electronic form are, therefore, requested to
submit their PAN to their depository participants with whom
Regd. Office: they are maintaining their demat accounts.
Laurus Enclave, Plot Office 01, 8. Members are requested to note that the dividend remaining
E. Bonangi Village, unclaimed for a continuous period of seven years from the
Parawada Mandal, date of transfer to the Company’s Unpaid Dividend Account
Anakapalli District – 531 021 shall be transferred to the Investor Education and Protection
E-mail: secretarial@lauruslabs.com Fund (IEPF). In addition, all equity shares in respect of which
Place: Hyderabad dividend has not been paid or claimed for seven consecutive
Date: April 25, 2024 years or more shall be transferred by the Company to demat
account of the IEPF authority within a period of thirty days
Notes: of such equity shares becoming due to be transferred to
1. The Explanatory Statement pursuant to Section 102 of the the IEPF. In the event of transfer of equity shares and the
Companies Act, 2013 in respect of Special Business set out unclaimed dividends to IEPF, Members are entitled to claim
above is annexed hereto and forms part of the Notice. the same from IEPF authority by submitting an online
application in the prescribed Form IEPF-5 available on the
2. Brief resume of Directors proposed to be appointed/re- website www.iepf.gov.in and sending a physical copy of the
appointed, (in item nos. 5, 7, 8, 9, 10 & 11) nature of their same duly signed to the Company along with the requisite
expertise in specific functional areas, name of companies documents enumerated in Form IEPF-5. Members can file
in which they hold directorships and membership/ only one consolidated claim in a financial year as per the
chairmanships of Board Committees and shareholding in IEPF rules.
the Company as stipulated under SEBI (LODR) Regulations,
2015 are provided as an Annexure to this notice and also in 9. Pursuant to Rule 5(8) of Investor Education and Protection
the Report on Corporate Governance forming part of the Authority (Accounting, Audit, Transfer and Refund) Rules,
Annual Report. 2016, the Company has uploaded details of unpaid and
unclaimed amounts lying with the Company as on March 31,
3. In compliance with the MCA and SEBI Circulars to conduct 2023 on its website at www.lauruslabs.com and also on the
their Annual General Meetings on or before September 30, website of the Ministry of Corporate Affairs.
2024 through video conferencing (VC) or other Audio Visual
Means (OAVMs), the 19 th Annual General Meeting of the 10. 
T he Notice calling the e-AGM has been uploaded on the
Company shall be conducted through Video Conferencing website of the Company at www.lauruslabs.com. The
(VC) to be referred to as “e-AGM”. Notice can also be accessed from the websites of the Stock
Exchanges i.e. BSE Limited and National Stock Exchange
4. The Company has appointed M/s. National Securities of India Limited at www.bseindia.com and www.nseindia.
Depository Limited (NSDL) to provide Video Conferencing com respectively.
facility for the e-AGM.
11. The Members can join the e-AGM 15 minutes before and
5. In the e-AGM: after the scheduled time of the commencement of the
a. M embers can attend the meeting through log in Meeting by following the procedure mentioned in the Notice.
credentials provided to them to connect to Video 12. Up to 1000 members will be able to join on a First Come First
Conference. Physical attendance of the Members at Serve basis to the e-AGM.
the Meeting venue is not required.

Annual Report 2023-24 295

LAURUS LABS LIMITED

Notice

13. No restrictions on account of First Come First Serve Hotspot may experience Audio/Video loss due to fluctuation
basis entry into e-AGM in respect of large Shareholders in their respective network. It is therefore recommended to
(Shareholders holding 2% or more shareholding), Promoters, use stable Wi-Fi or LAN connection to mitigate any kind of
Institutional Investors, Directors, Key Managerial Personnel, aforesaid glitches.
the Chairpersons of the Audit Committee, Nomination and
5. S hareholders who would like to express their views/ask
Remuneration Committee and Stakeholders Relationship
questions during the meeting may register themselves as
Committee, Auditors etc.
a speaker may send their request mentioning their name,
14. T he attendance of the Members (members’ logins) demat account number/folio number, email id, mobile
attending the e-AGM will be counted for the purpose of number at secretarial@lauruslabs.com.
reckoning the quorum under Section 103 of the Companies
6. Shareholders who would like to express their views/have
Act, 2013.
questions may send their questions in advance mentioning
Remote e-Voting: Pursuant to the provisions of Section
15.  their name demat account number/folio number, email id,
108 of the Companies Act, 2013 read with Rule 20 of the mobile number at secretarial@lauruslabs.com. The same will
Companies (Management and Administration) Rules, 2014 be replied by the company suitably.
(as amended) and Regulation 44 of SEBI (Listing Obligations
7. Those shareholders who have registered themselves as
& Disclosure Requirements) Regulations 2015 (as amended),
a speaker will only be allowed to express their views/ask
the Company is providing facility of remote e-voting to its
questions during the meeting.
Members through e-Voting agency M/s. National Securities
Depository Limited (NSDL). Instructions for members for remote e-Voting
16. Voting at the e-AGM: Members who could not vote through 8. In compliance with provisions of Section 108 of the
remote e-voting may avail the e-voting system provided in Companies Act, 2013 and Rule 20 of the Companies
the e-AGM by M/s. National Securities Depository Limited (Management and Administration) Rules, 2014, as amended
(NSDL). and as per the requirements of the SEBI (LODR) Regulations
2015, your Company is pleased to provide members facility
17. The Statutory Registers and the documents pertaining
to exercise their right to vote at the 19 th Annual General
to the items of business to be transacted at the AGM are
Meeting (AGM) by electronic means and the business
available for inspection in electronic mode. The shareholders
may be transacted through e-Voting Services provided by
may write an e-mail to secretarial@lauruslabs.com and the
M/s. National Securities Depository Limited.
Company shall respond suitably.
9. The remote e-voting period begins on July 8, 2024 at
Instructions for the Members for attending the e-AGM 09:00 A.M. and ends on July 10, 2024 at 05:00 P.M. and
through Video Conference: the remote e-voting module shall be disabled by NSDL for
1. Member will be provided with a facility to attend the EGM/ voting thereafter.
AGM through VC/OAVM through the NSDL e-Voting system.
10. The Instructions for remote voting are as under:
Members may access by following the steps mentioned
above for Access to NSDL e-Voting system. After How do I vote electronically using NSDL e-Voting
successful login, you can see link of “VC/OAVM link” placed system?
under “Join General meeting” menu against company
The way to vote electronically on NSDL e-Voting system consists of
name. You are requested to click on VC/OAVM link placed
“Two Steps” which are mentioned below:
under Join General Meeting menu. The link for VC/OAVM will
be available in Shareholder/Member login where the EVEN Step 1: Access to NSDL e-Voting system
of Company will be displayed. Please note that the members
A) Login method for e-Voting and joining virtual meeting
who do not have the User ID and Password for e-Voting
for Individual shareholders holding securities in demat
or have forgotten the User ID and Password may retrieve
mode:
the same by following the remote e-Voting instructions
mentioned in the notice to avoid last minute rush. In terms of SEBI circular dated December 9, 2020 on
e-Voting facility provided by Listed Companies, Individual
2. Members are encouraged to join the Meeting through shareholders holding securities in demat mode are allowed
Laptops for better experience. to vote through their demat account maintained with
3. Further Members will be required to allow Camera and use Depositories and Depository Participants. Shareholders are
Internet with a good speed to avoid any disturbance during advised to update their mobile number and email Id in their
the meeting. demat accounts in order to access e-Voting facility.

4. Please note that Participants connecting from Mobile Login method for Individual shareholders holding securities
Devices or Tablets or through Laptop connecting via Mobile in demat mode is given below:

296 Chemistry for Better Living

 NOTICE

Type of shareholders Login Method

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

Individual Shareholders holding 1. Existing users who have opted for Easi / Easiest, they can login through their user id and
securities in demat mode with password. Option will be made available to reach e-Voting page without any further
CDSL authentication. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/
home/login or www.cdslindia.com and click on New System Myeasi.
2. After successful login of Easi/Easiest the user will be also able to see the E Voting Menu. The
Menu will have links of e-Voting service provider i.e. NSDL. Click on NSDL to cast your vote.
3. If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.
com/myeasi/Registration/EasiRegistration
4. Alternatively, the user can directly access e-Voting page by providing demat Account Number
and PAN No. from a link in www.cdslindia.com home page. The system will authenticate the
user by sending OTP on registered Mobile & Email as recorded in the demat Account. After
successful authentication, user will be provided links for the respective ESP i.e. NSDL where the
e-Voting is in progress.
Individual Shareholders (holding You can also login using the login credentials of your demat account through your Depository
securities in demat mode) Participant registered with NSDL/CDSL for e-Voting facility. upon logging in, you will be able to see
login through their depository e-Voting option. Click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after
participants successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting
service provider i.e. NSDL and you will be redirected to e-Voting website of NSDL for casting your vote
during the remote e-Voting period or joining virtual meeting & voting during the meeting.

Annual Report 2023-24 297

LAURUS LABS LIMITED

Notice

Login type Helpdesk details

Individual Shareholders holding securities in Members facing any technical issue in login can contact NSDL helpdesk by sending a
demat mode with NSDL request at evoting@nsdl.com or call at 022 - 4886 7000
Individual Shareholders holding securities in Members facing any technical issue in login can contact CDSL helpdesk by sending a
demat mode with CDSL request at helpdesk.evoting@cdslindia.com or contact at toll free no. 1800 22 55 33

B) Login Method for e-Voting and joining virtual you will need to retrieve the ‘initial password’ which was
meeting for shareholders other than Individual communicated to you. Once you retrieve your ‘initial
shareholders holding securities in demat password’, you need to enter the ‘initial password’ and the
mode and shareholders holding securities in system will force you to change your password.
physical mode. c) How to retrieve your ‘initial password’?
How to Log-in to NSDL e-Voting website? • If your email ID is registered in your demat account or with
1. Visit the e-Voting website of NSDL. Open web browser the company, your ‘initial password’ is communicated to
by typing the following URL: https://www.evoting.nsdl. you on your email ID. Trace the email sent to you from
com/ either on a Personal Computer or on a mobile. NSDL from your mailbox. Open the email and open
2. Once the home page of e-Voting system is launched, click the attachment i.e. a .pdf file. Open the .pdf file. The
on the icon “Login” which is available under ‘Shareholder/ password to open the .pdf file is your 8 digit client ID for
Member’ section. NSDL account, last 8 digits of client ID for CDSL account
or folio number for shares held in physical form. The .pdf
3. A new screen will open. You will have to enter your User ID,
file contains your ‘User ID’ and your ‘initial password’.
your Password/OTP and a Verification Code as shown on the
screen. • If your email ID is not registered, please follow steps
mentioned below in process for those shareholders
Alternatively, if you are registered for NSDL eservices i.e.
whose email ids are not registered.
IDEAS, you can log-in at https://eservices.nsdl.com/ with your
existing IDEAS login. Once you log-in to NSDL eservices after 6. If you are unable to retrieve or have not received the “ Initial
using your log-in credentials, click on e-Voting and you can password” or have forgotten your password:
proceed to Step 2 i.e. Cast your vote electronically. a) Click on “Forgot User Details/Password?”(If you are holding
4. Your User ID details are given below: shares in your demat account with NSDL or CDSL) option
 anner of holding shares
M available on www.evoting.nsdl.com.
i.e. Demat (NSDL or CDSL) or Your User ID is:
b) P hysical User Reset Password?” (If you are holding shares in
Physical
a) For Members who hold 8 Character DP ID followed by 8
physical mode) option available on www.evoting.nsdl.com.
shares in demat account Digit Client ID c) If you are still unable to get the password by aforesaid
with NSDL. For example if your DP ID two options, you can send a request at evoting@nsdl.com
is IN300*** and Client ID is
12****** then your user ID is mentioning your demat account number/folio number, your
IN300***12******. PAN, your name and your registered address etc.
b) For Members who hold 16 Digit Beneficiary ID d) Members can also use the OTP (One Time Password) based
shares in demat account For example if your Beneficiary ID
login for casting the votes on the e-Voting system of NSDL.
with CDSL. is 12************** then your user ID is
12************** 7. After entering your password, tick on Agree to “Terms and
c)  For Members holding EVEN Number followed by Folio Conditions” by selecting on the check box.
shares in Physical Form. Number registered with the
company 8. Now, you will have to click on “Login” button.
For example if folio number is 9. After you click on the “Login” button, Home page of e-Voting
001*** and EVEN is 101456 then
will open.
user ID is 101456001***
5. Password details for shareholders other than Individual
shareholders are given below:
a) If you are already registered for e-Voting, then you can user
your existing password to login and cast your vote.
b) If you are using NSDL e-Voting system for the first time,

298 Chemistry for Better Living

 NOTICE

Step 2: Cast your vote electronically and join General 11. Process for those shareholders whose email ids are
Meeting on NSDL e-Voting system. not registered with the depositories for procuring
How to cast your vote electronically and join General user id and password and registration of e mail
Meeting on NSDL e-Voting system? ids for e-voting for the resolutions set out in this
notice:
i). After successful login at Step 1, you will be able to see all
the companies “EVEN” in which you are holding shares and i)  In case shares are held in physical mode please provide
whose voting cycle and General Meeting is in active status. Folio No., Name of shareholder, scanned copy of the share
certificate (front and back), PAN (self attested scanned copy
ii) Select “EVEN” of company for which you wish to cast your of PAN card), AADHAR (self attested scanned copy of Aadhar
vote during the remote e-Voting period and casting your vote Card) by email to secretarial@lauruslabs.com and evoting@
during the General Meeting. For joining virtual meeting, you nsdl.com.
need to click on “VC/OAVM” link placed under “Join General
Meeting”. ii) In case shares are held in demat mode, please provide DPID-
CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name,
iii) Now you are ready for e-Voting as the Voting page opens. client master or copy of Consolidated Account statement,
iv) Cast your vote by selecting appropriate options i.e. assent PAN (self attested scanned copy of PAN card), AADHAR
or dissent, verify/modify the number of shares for which (self attested scanned copy of Aadhar Card) to secretarial@
you wish to cast your vote and click on “Submit” and also lauruslabs.com and evoting@nsdl.com. If you are an
“Confirm” when prompted. Individual shareholders holding securities in demat mode,
you are requested to refer to the login method explained
v) Upon confirmation, the message “Vote cast successfully” will at step 1 (A) i.e. Login method for e-Voting and joining
be displayed. virtual meeting for Individual shareholders holding
vi) You can also take the printout of the votes cast by you by securities in demat mode.
clicking on the print option on the confirmation page. iii)  Alternatively shareholder/members may send a request to
vii)  Once you confirm your vote on the resolution, you will not be evoting@nsdl.com for procuring user id and password for
allowed to modify your vote. e-voting by providing above mentioned documents.
iv) In terms of SEBI circular dated December 9, 2020 on
General guidelines for shareholders
e-Voting facility provided by Listed Companies, Individual
i) Institutional shareholders (i.e. other than individuals, HUF, shareholders holding securities in demat mode are allowed
NRI etc.) are required to send scanned copy (PDF/JPG to vote through their demat account maintained with
Format) of the relevant Board Resolution/ Authority letter Depositories and Depository Participants. Shareholders
etc. with attested specimen signature of the duly authorised are required to update their mobile number and email
signatory(ies) who are authorised to vote, to the Scrutiniser ID correctly in their demat account in order to access
by e-mail to yravifcs@gmail.com with a copy marked to e-Voting facility.
evoting@nsdl.com.
Instructions for members for e-Voting during the
ii) It is strongly recommended not to share your password
e-AGM session:
with any other person and take utmost care to keep your
password confidential. Login to the e-voting website will 12. The procedure for e-Voting on the day of the e-AGM is same
be disabled upon five unsuccessful attempts to key in the as the instructions mentioned above for remote e-voting.
correct password. In such an event, you will need to go 13 Only those Members/ shareholders, who will be present in
through the “Forgot User Details/Password?” or “Physical the e-AGM through Video Conference facility and have not
User Reset Password?” option available on www.evoting. casted their vote through remote e-Voting are eligible to vote
nsdl.com to reset the password. through e-Voting in the e-AGM and they can exercise their
iii) In case of any queries, you may refer the Frequently Asked vote while they are connected in the Video Conference by
Questions (FAQs) for Shareholders and e-voting user manual following the guidelines provided therein.
for Shareholders available at the download section of www. 14. However, members who have voted through Remote
evoting.nsdl.com or call on.: 022 - 4886 7000 or send a e-Voting will be eligible to attend the e-AGM.
request by email to evoting@nsdl.com

Annual Report 2023-24 299

LAURUS LABS LIMITED

Notice

15. The Board of Directors of the Company has appointed None of the Directors or Key Managerial Personnel or relatives of
Mr.Y.Ravi Prasada Reddy, Proprietor of RPR Associates, a Directors and Key Managerial Persons are, in any way, concerned
Practicing Company Secretary, as scrutiniser to scrutinise or interested, financially or otherwise, in this resolution.
the remote e-voting process and voting at the meeting in
a fair and transparent manner and he has communicated Item No. 9: To approve the appointment of Mr.
his willingness to be appointed and will be available for the Krishna Chaitanya Chava as Executive Director of the
said purpose. Company
Mr. Krishna Chaitanya Chava was initially appointed as Assistant
16. The voting rights shall be reckoned on the paid-up value of
Vice President in the year 2017 in the Company and was elevated
shares registered in the name of the member/ beneficial
to the position of President subsequently and is currently heading
owner (in case of electronic shareholding) as on the cut-off
the Synthesis Business unit of the Company. Under his leadership,
date i.e. July 4, 2024.
Synthesis Business is performing extremely outstanding and
17. A person, whose name is recorded in the register of members contributing for the major revenues of the Company.
or in the register of beneficial owners maintained by the
Brief Profile of Mr. Krishna Chaitanya Chava is as follows:
depositories as on the cut-off date i.e. July 4, 2024 only shall
be entitled to avail the facility of remote e-voting/ e-voting at Mr. Krishna Chaitanya spearheads the Synthesis division of the
the meeting. Company and has rich work experience in strategy, skill workshops
and marketing within the Indian pharma market. He completed
18. Any person who becomes a member of the Company after
his PGP MFAB from Indian School of Business, Hyderabad, has a
dispatch of the Notice of the meeting and holding shares as
master’s degree in Mechanical Engineering from North Carolina
on the cut-off date may obtain the USER ID and Password by
State University, USA and a bachelor’s degree in Mechanical
sending an e-mail request to evoting@nsdl.com.
Engineering from BITS Pilani, Dubai. Before joining team Laurus,
19. The Scrutiniser, after scrutinising the votes cast at the he was associated with M/s. Dr.Reddy’s Laboratories Ltd.
meeting and through remote e-voting, will, not later than
Further details of Mr. Krishna Chaitanya Chava, nature of his
three days of conclusion of the meeting, make a consolidated
expertise in specific functional areas, names of companies in
Scrutiniser’s Report and submit the same to the Chairman.
which he holds directorships and memberships / chairmanships
The results declared along with the consolidated scrutiniser’s
of Board Committees and shareholding etc. as stipulated under
report shall be placed on the website of the Company at
the Listing Regulations, are provided as an Annexure to this notice.
www.lauruslabs.com. The results shall simultaneously be
communicated to the Stock Exchanges. Overall remuneration: The aggregate of salary, allowances,
perquisites and performance bonus in any one financial year
EXPLANATORY STATEMENT UNDER SECTION 102 OF shall not exceed the limits prescribed under Section 197, 198 and
THE COMPANIES ACT 2013 other applicable provisions of the Companies Act, 2013 read with
Item No.6: To approve the remuneration payable to Schedule V to the said Act or any modifications or re-enactment
cost auditors for the financial year ending 2024-25 for the time being in force.
The Board, on the recommendation of the Audit Committee, Minimum remuneration: In the event of loss or inadequacy of
has approved the appointment of M/s. Sagar & Associates, Cost profits in any financial year during the currency of tenure of service
Accountants, as Cost Auditors at a remuneration of `5,50,000/- of the Executive Director, the payment of salary, performance
(Rupees Five lakhs and Fifty thousand only) per annum plus out incentives, perquisites and other allowances shall be governed by
of pocket expenses at actuals and GST, to conduct the audit of the limits prescribed under Section II of Part II of Schedule V of
the cost records of the Company for the financial year ending the Companies Act, 2013 as may for the time being be in force.
March 31, 2025.
Income-Tax in respect of the above remuneration will be deducted
In accordance with the provisions of the Section 148 of the at source as per the applicable Income Tax Laws / Rules.
Companies Act 2013, read with the Companies (Audit and
Auditors) Rules, 2014, the remuneration payable to the Cost If at any time the Executive Director ceases to be a Director of
Auditors has to be approved by the members of the Company. the Company, for any reason whatsoever, he shall cease to be the
Executive Director and his Agreement with the Company shall
Accordingly, consent of the members is sought for passing an stand terminated forthwith.
Ordinary Resolution as set out at Item No.6 of the Notice for
approval of the remuneration payable to the Cost Auditors for the The above may be treated as a written memorandum setting out
financial year ending March 31, 2025. the terms & conditions of appointment of Mr. Krishna Chaitanya
Chava under Section 190 of the Act.
The Board recommends the resolution set forth in the Item No. 6
of the Notice for approval of the members.

300 Chemistry for Better Living

 NOTICE

The Nomination & Remuneration Committee, the Audit Overall remuneration: The aggregate of salary, allowances,
Committee and the Board of Directors are of the opinion that perquisites and performance bonus in any one financial year
Mr. Krishna Chaitanya’s vast knowledge and varied experience shall not exceed the limits prescribed under Section 197, 198 and
will be of great value to the Company and has recommended the other applicable provisions of the Companies Act, 2013 read with
Resolution of this Notice relating to his appointment as Executive Schedule V to the said Act or any modifications or re-enactment
Director of the Company for a period of five years w.e.f. April for the time being in force.
25, 2024 and up to April 24, 2029 as a Special Resolution for
Minimum remuneration: In the event of loss or inadequacy of
your approval.
profits in any financial year during the currency of tenure of service
Except Mr. Krishna Chaitanya Chava and Dr. Satyanarayana of the Executive Director, the payment of salary, performance
Chava, Executive Director and Chief Executive Officer being incentives, perquisites and other allowances shall be governed by
Father of Mr. Krishna Chaitanya Chava and Ms. Soumya Chava the limits prescribed under Section II of Part II of Schedule V of
proposed Executive Director and sister of Mr.Krishna Chaitanya the Companies Act, 2013 as may for the time being be in force.
Chava, none of the other Directors, Key Managerial Personnel or
Income-Tax in respect of the above remuneration will be deducted
the relatives of Directors and Key Managerial Persons (KMP) are,
at source as per the applicable Income Tax Laws / Rules.
in any way, concerned or interested, financially or otherwise, in the
Resolution set out at item no.9 of the Notice. If at any time the Executive Director ceases to be a Director of the
Company, for any reason whatsoever, she shall cease to be the
Item No. 10: To approve the appointment of Ms. Executive Director and her Agreement with the Company shall
Soumya Chava as Executive Director of the Company stand terminated forthwith.
Ms. Soumya Chava was initially appointed as Executive Vice
The above may be treated as a written memorandum setting out
President in the year 2023 spearheading the Commercial Function
the terms & conditions of appointment of Ms. Soumya Chava
(Supply Chain Management and Business Development) of
under Section 190 of the Act.
the Company.
The Nomination & Remuneration Committee, the Audit
Brief Profile of Ms. Soumya Chava is as follows:
Committee and the Board of Directors are of the opinion that
Ms. Soumya has gained overall experience of more than twelve Ms. Soumya Chava’s vast knowledge and varied experience will
years in the Pharma Industry. Initially, she gained experience be of great value to the Company and has recommended the
in Clinical trial management in Quintiles Transnational and Resolution of this Notice relating to her appointment as Executive
Laurus Infosystems. After her initial working experience, she Director of the Company for a period of five years w.e.f. April
tried to quench her entrepreneurial zeal. She has conceptualised 25, 2024 and up to April 24, 2029 as a Special Resolution for
a jewellery boutique for children, from designing to marketing your approval.
in the name of Theia Jewellery. She could establish Theia as a
Except Ms. Soumya Chava, Dr. Satyanarayana Chava, Executive
good quality and reliable player in this field. With this venture,
Director and Chief Executive Officer being Father of Ms. Soumya
she gained overall business expertise, including marketing,
Chava and Mr.Krishna Chaitanya, being brother and proposed
apart from other facets of the business. Ms. Soumya has been
executive director, none of the other Directors, Key Managerial
serving as Director since 2021 in Laurus Synthesis Private Limited
Personnel or the relatives of Directors and Key Managerial Persons
(a wholly owned subsidiary of Laurus labs) She has also been
(KMP) are, in any way, concerned or interested, financially or
taking care of the CSR activities of Laurus Charitable Trust for the
otherwise, in the Resolution set out at Item No.10 of the Notice.
last one year as Head CSR. With all these, she got familiar with
Laurus’s business and Laureates. Item No. 11: To approve the appointment of
She has completed her Bachelor of Pharmacy from Osmania Mr. Karnam Sekar as Independent Director for
University in 2007. In addition, she completed a Master’s in a period of 5 years
Clinical Research and Business Administration from Campbell The Board, on the recommendation of the Nomination and
University, NC, USA, between 2007 and 2010. Ms. Soumya also Remuneration Committee, has approved the appointment of
completed Postgraduate Diploma in Patents Law from Nalsar Mr. Karnam Sekar as Independent Director for a first term of 5
University of Law, Hyderabad, in 2011. years with effect from April 25, 2024.
Further details of Ms. Soumya Chava, nature of her expertise Brief profile of Mr. Karnam Sekar:
in specific functional areas, names of companies in which she
Mr. Karnam Sekar is a business leader with more than four
holds directorships and memberships / chairmanships of Board
decades of rich experience in the Financial Services industry
Committees and shareholding etc. as stipulated under the Listing
and with extensive knowledge of Corporate Finance, Treasury
Regulations, are provided as an Annexure to this notice.
Management and Stressed Asset Management.

Annual Report 2023-24 301

LAURUS LABS LIMITED

Notice

He joined as a Probationary Officer with State Bank of India in Mr. Karnam Sekar, subject to applicable provisions of the
1983 and rose to the level of Deputy Managing Director. Companies Act, 2013 and rules made thereunder, will be entitled
for a fixed remuneration of `20 lakhs per annum and also he will be
Selected as Managing Director of two Public Sector Banks
entitled for a sitting fee for Board and other Committee meetings,
viz., Dena Bank and Indian Overseas Bank, during very critical
if applicable, like any other independent director is entitled to in
juncture of their history. He has proven track record of building
the Company.
competent teams and of delivering consistent results. He
possesses superior analytical skills complemented by excellent The Board recommends the resolution in relation to appointment
people skills. of Mr. Karnam Sekar as an Independent Director, for the approval
by the shareholders of the Company.
He was the Chairman of the board of National Asset
Reconstruction Company Ltd., NARCL (May 2022-August Except Mr. Karnam Sekar, being an appointee, none of the
2023), a premier Asset Reconstruction Company in the country. Directors, managers and key managerial personnel of the
Was instrumental in initial setting up the organisation and Company and their relatives are concerned or interested, financial
commencement of business. or otherwise, in the resolution set out at Item No. 11 of the Notice.

Presently, on the board of three new age NBFCs viz., Incred

Financial services Ltd (since July 2022), Incred Prime Finance Ltd
By order of the Board
(since March 2023) and UGRO Capital Limited (since February
Laurus Labs Limited
2022). Also on the board of a Merchant Banker viz., Incred
Holdings Ltd (Since July 2022).

In terms of Section 149, 152 and 161 read with Schedule IV and G. Venkateswar Reddy
other applicable provisions of the Companies Act, 2013, and the Company Secretary
rules and regulations issued thereunder, each as amended, (the
Regd. Office:
“Companies Act”) Mr. Karnam Sekar, being eligible, is proposed
Laurus Enclave, Plot Office 01,
to be appointed as an independent director for a first term
E. Bonangi Village,
period of 5 consecutive years from April 25, 2024 to April 24,
Parawada Mandal, Anakapalli District – 531 021
2029. In the opinion of the Board, Mr. Karnam Sekar fulfils the
E-mail: secretarial@lauruslabs.com
conditions specified in the Companies Act for his appointment as
an independent director of the Company and is independent of Place: Hyderabad
the management. Date: April 25, 2024

302 Chemistry for Better Living

 NOTICE

Annexure

Details of Directors seeking appointment/re-appointment at the 19th Annual General Meeting of the Company to be held on July 11, 2024
[Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

Mr. Krishna Chaitanya

Name of the Director Mr. V V Ravi Kumar Mr. Karnam Sekar Ms. Soumya Chava
Chava
Date of Birth 01-07-1965 01-07-1960 26-05-1990 29-06-1986
Age 59 Years 64 Years 33 years 37 Years
Date of Appointment 21-01-2006 25-04-2024 25-04-2024 25-04-2024
Relationship with No Relationship No Relationship Son of Dr. Daughter of Dr.
Directors and Key Satyanarayana Chava, Satyanarayana Chava,
Managerial Personnel Executive Director & Executive Director & Chief
Chief Executive Officer Executive Officer
Expertise in specific Finance, Legal, Supply Chain Banking Marketing, Business Marketing, Supply Chain
functional area* Management and Information Development Management, Business
Technology Development
Qualifications Fellow Member of Institute B.Sc (Ag), CAIIB, Diploma in MS, MBA from ISB Master's in Clinical
of Cost Accountants of India Mgmt. (AIMA) Research and Business
(ICWAI), M.Com. Administration, Diploma in
Patent Law from NALSAR
Names of Listed Entities NIL NIL NIL NIL
from which the Director
has resigned in the past
three years
Board Membership of Director of: Director of: Director of: Director of:
other companies as on a) Laurus Bio Private Limited a) Ugro Capital Limited a) Laurus Synthesis a) Laurus Synthesis
the date of Notice b) KRKA Pharma Private b) Incred Financial Services Private Limited Private Limited
Limited Limited b) Sriam Labs b) Theia Jewellery
c) Incred Prime Finance Private Limited Private Limited
Limited c)  Laurus Specialty
d) Incred Holdings Limited Chemicals Private
Limited
d) Chemiasoft
Private Limited
Committees Membership − CSR Committee of Laurus Labs − Chairman of Audit − Member of Risk − Member of CSR
of other companies as on Limited – Chairman Committee of Laurus Committee of
the date of Notice Labs Limited Management
− Stakeholders Relationship Committee of Laurus Laurus Labs Limited
Committee of Laurus Labs − Member of Audit, Labs Limited & Laurus Synthesis
Limited – Member Nomination and Private Limited
Remuneration and Asset − Member of CSR
− Risk Management Committee Committee of Sriam − Member of Risk
of Laurus Labs Limited Liability Committee of Management
– Member Ugro Capital Limited Labs Private Limited Committee of Laurus
− Member of Audit Labs Limited
Committee of:
e) Incred Financial Services
Limited
f) Incred Prime Finance
Limited
g) Incred Holdings Limited
Number of equity shares 77,05,000 Equity Shares Nil 20699 10440
held in the Company as (67,05,000 shares held by his
on the date of Notice Partnership Firm M/s. Leven
Holdings and he is representing
as a Managing Partner of the
Partnership Firm and 10,00,000
shares on his individual name)

* For additional details on skills, expertise, knowledge and competencies of Directors, please refer to Report on Corporate Governance forming part of the
Annual Report

Notes:

1. Information pertaining to remuneration paid to the Directors who are being appointed/ re-appointed and the number of Board
Meetings attended by them during the year 2023-24 have been provided in the Report on Corporate Governance forming part of the
Annual Report.

Annual Report 2023-24 303

LAURUS LABS LIMITED

Unit-wise KPIs
Key performance
Unit-wise KPIs Unit-1 Unit-2 Unit-3
indicators
Energy Consumed Non-renewable 197,426 475,591 1,480,676
(Values in GJ)
Renewable 143,627 8,195 31,305
GHG Emissions Scope 1 4,066 24,433 100,666
(Values in tCO2)
Scope 2 36,833 31,568 42,874
Scope 3 85,911
Water (Values in m3) Withdrawal 297,002 218,613 582,741
Consumption
Discharged 218,594 25,900 250,731
Hazardous waste HW – Landfillable 884.3 0.0 617.6
(Values in tons)
HW – Incinerable 154.4 47.5 448.3
HW – Recyclable 106.9 162.3 159.0
HW – utilisable 5,595.8 67.1 7,331.0
Bio-medical waste 0.0 5.1 4.3
E-waste 0.3 0.0 0.6
NonHazardous Waste 11,126
Materials Total Recycled Input 37,531.6 3,296.1 84,961.7
(tonnes/annum) material
Raw Materials used 0 16,255.183 66,461
Associated Materials 3.6 3.1 130.7
used
Semi-manufactured 46,295.7 4,271.7 21,544.1
Materials used
Packaging Materials 819.6 5,219.5 266.6
used
Air Emissions Particulate Matter 0.01 57.30 20.86
(PPM)
SO2 0.0 217.0 161.1
NOx 0.14 65.14 40.52
Others (Including 143.3 53.8 0.0
Hazardous Air
Emissions, POP, and
VOC)
Workplace safety Fatality 0 0 0
Near miss incidents 13 8 7
Absenteeism rate 0 0 0
LTIFR 0 0 0
Ethics and Complaints received 0 0 0
Compliance (No.)
Grievances reported 0 0 0
Whistle blower cases 0 0 0
Corruption cases 0 0 0
Bribery Cases 0 0 0
IT related incidents/ 0 0 0
Data breach
POSH related 0 0 0
complaints
Human rights 0 0 0
violations
Workforce Permanent Employee 1,125 1,120 1,224
Count
Temporary Workforce 1,462 774 1,555

304 Chemistry for Better Living

 Unit-4 Unit-5 Unit-6 R&D Total

1,001,462 66,673 102,384 38,062 3,362,274

8,384 0 0 587 192,098
64,006 2,257 2,105 1,250 198,782
32,885 7,996 18,258 6,264 176,678
87,212 87,212
349,926 50,100 48,488 36,188 1,583,058
44,069 21,458 49,027 8,520 618,299
2,137.4 44.1 2,067.0 2.0 5,752
58.6 14.3 81.4 0.0 805
48.8 0.3 63.1 7.5 548
7,745.1 2,381.5 3,473.0 3.7 26,597
1.3 0.0 2.6 0.0 13
0.0 0.0 0.0 0.0 1
11,126 11,126
24,180.2 0.0 10,282.5 0.0 160,252

43,749.55 1,175.476 19.896 0 127,661

2.0 0.4 3.4 5.1 148

8,251.2 14,393.9 50,842.5 1,614.0 147,213

122.1 5.1 2,325.3 2.5 8,761

77.89 12.10 2.18 0.03 170

394.6 25.8 0.0 0.0 798
179.00 10.55 0.86 0.18 296
151.4 34.6 0.0 0.0 383

0 0 0 0 0
23 5 16 0 72
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

699 240 415 968 6,007

867 210 482 207 5,557

Annual Report 2023-24 305

LAURUS LABS LIMITED

GRI Index
Disclosure Section/Subsection Page No./
GRI Standard Number Description
number Title Explanation

General Disclosures
GRI 2 - General 2-1 Organizational details Who we are, BRSR 2,4,132
disclosures 2-2 Entities included in the organization’s sustainability reporting About the report, BRSR 2,132
2-3 Reporting period, frequency and contact point About the report, BRSR 2,132
2-4 Restatements of information About the report, BRSR 3, 106
2-5 External assurance About the report 5-7
2-6 Activities, value chain and other business relationships About the report 133
2-7 Employees BRSR 133
2-8 Workers who are not employees BRSR 74-81
2-9 Governance structure and composition About the board 98, 117, 118
2-10 Nomination and selection of the highest governance body About the board 76-79
2-11 Chair of the highest governance body About the board 74-75, 82
2-12 Role of the highest governance body in overseeing the management About the board 80-82
of impacts
2-13 Delegation of responsibility for managing impacts Management team 80-82
2-14 Role of the highest governance body in sustainability reporting Management team 140
2-15 Conflicts of interest BRSR 82
2-16 Communication of critical concerns BRSR 82
2-17 Collective knowledge of the highest governance body About the board 74-75
2-18 Evaluation of the performance of the highest governance body Board’s report 98
2-19 Remuneration policies Board’s report 98-99
2-20 Process to determine remuneration Board’s report 98-99
2-21 Annual total compensation ratio Annexure- 5.2, BRSR 110, 152
2-22 Statement on sustainable development strategy Chairman’s statement 14-15
2-23 Policy commitments Human rights and fair 51,82, 151
labour practices
Governance Approach
BRSR
2-24 Embedding policy commitments Report of Corporate 117-121
Governance
2-25 Processes to remediate negative impacts Risk Management 83, 134, 153
2-26 Mechanisms for seeking advice and raising concerns About the report 3
2-27 Compliance with laws and regulations Corporate governance 69, 99, 100,
and regulatory 158
compliance, Boards
report, BRSR
2-28 Membership associations BRSR 161
2-29 Approach to stakeholder engagement Stakeholder 34-35, 75
engagement
GRI 3: Material Topics 3-1 Process to determine material topics Materiality 36-39
3-2 List of material topics Materiality 36-39
3-3 Management of material topics Materiality 36-39
GRI 200 Economic Standard Series
GRI 201 - Economic 201-1 Direct economic value generated and distributed Annual report 83-85
performance 201-2 Financial implications and other risks and Risk management 83-85
opportunities due to climate change
201-3 Defined benefit plan obligations and other retirement plans BRSR 144, 185
GRI 202- Market 202-1 Ratios of standard entry level wage by gender compared to local BRSR 152
Presence minimum wage
202-2 Proportion of senior management hired from the local community BRSR 162

306 Chemistry for Better Living

 Disclosure Section/Subsection Page No./
GRI Standard Number Description
number Title Explanation

GRI 204: 204-1 Proportion of spending on local suppliers BRSR 162

Procurement
Practices
GRI 205: Anti 205-1 Operations assessed for risks related to corruption
Corruption
205-2 Communication and training about anti corruption policies and
procedures
GRI 205: Anti 205-3 Confirmed incidents of corruption and actions taken Reporting breaches 304
Corruption
GRI 300 Environmental Standards Series
GRI 301 - Materials 301-1 Materials used by weight and volume BRSR 304
GRI 302 - Energy 302-1 Energy consumption within the organization BRSR 154
302-3 Energy intensity Stakeholder 29
management
302-4 Reduction of energy consumption BRSR 154
GRI 303 - Water and 303-1 Interactions with water as a shared resource BRSR 155
Effluents 303-2 Management of water BRSR 155
discharge-related impacts
303-3 Total water withdrawal by source BRSR 155, 159
303-4 Water discharge BRSR 155
303-5 Water consumption BRSR 156
GRI 305 - Emissions 305-1 Direct (Scope 1) GHG emissions BRSR 156
305-2 Energy indirect (Scope 2) GHG emissions BRSR 156
305-3 Other indirect (Scope 3) GHG emissions) BRSR 159
305-4 GHG emissions intensity BRSR 69, 157,159
305-5 Reduction of GHG BRSR 156
emissions
305-7 Nitrogen Oxides (NOX), Sulphur Oxides (SOX), and other significant BRSR 156
air emissions
GRI 306 - Waste 306-1 Waste generation and significant waste related impacts Waste management 64
306-2 Management of significant waste-related impact Waste management 157
306-3 Waste generated BRSR 157
306-4 Waste diverted from disposal BRSR 157
306-5 Waste directed to disposal BRSR 157
GRI 308: Supplier 308-1 New suppliers that were screened Our suppliers 81
Environmental using environmental criteria
Assessment
GRI 400 Social Standards Series
GRI 401 Employment 401-2 Benefits provided to full-time employees BRSR 143
401-3 Parental leave BRSR 144
GRI 403 - Occupational 403-1 Occupational health and safety management system Health and safety 50
health and safety 403-2 Hazard identification, risk assessment, and incident investigation Health and safety 50
403-4 Worker participation, consultation and communication on BRSR 145
occupational health and safety
403-5 Worker training on occupational health and safety BRSR 145

Annual Report 2023-24 307

LAURUS LABS LIMITED

GRI Index

Disclosure Section/Subsection Page No./

GRI Standard Number Description
number Title Explanation

403-6 Promotion of worker health Employee well being 145-146

403-7 Prevention and mitigation of occupational health and safety impacts BRSR 146
directly linked by business relationships
403-8 Workers covered by an occupational health and safety management Health and safety 145-146
system
403-9 Work-related injuries BRSR 146
403-10 Work-related health BRSR 146
GRI 404- Training and 404-1 Average hours of training per year per employee BRSR 145
education 404-2 Programs for upgrading employee skills and transition assistance BRSR 145
programs
403-3 Percentage of employees receiving regular performance and career BRSR 145
development reviews
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees Board of directors, 78-79,133
Equal Opportunity BRSR
405-2 Ratio of basic salary and remuneration of women to men BRSR 152
GRI 406: Non- 406-1 Incidents of discrimination and BRSR 153
discrimination corrective actions taken
GRI 407: Freedom 407-1 Operations and suppliers in which the right to freedom of association BRSR 145
of Association and and collective bargaining may be at risk
Collective Bargaining
GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of child BRSR 153,154
labour
GRI 409: Forced or 409-1 Operations and suppliers at significant risk for incidents of forced or BRSR 153,154
Compulsory Labor compulsory labor
GRI 411: Rights of 411-1 Incidents of violations involving rights of indigenous peoples BRSR 153
Indigenous Peoples
GRI 412: Human Rights 412-1 Operations that have been subject to human rights reviews or Human Rights and fair 51
Assessment impact assessments labour practices
412-2 Employee training on human rights policies and procedures BRSR 151
412-3 Significant investment agreements and contracts that include Human Rights and fair 51
human rights clauses or that underwent human rights screening labour practices
GRI 413- Local 413-1 Operations with local community engagement, impact assessments, Communities 52-55
communities and development programs
413-2 Operations with significant actual and potential negative impacts on Communities 52-55
local communities
GRI 414: Supplier Social 414-1 New suppliers that were screened using social criteria Suppliers 59
Assessment 414-2 Negative social impacts in the supply chain and actions taken Suppliers 58-59
GRI 416: Customer 416-1 Assessment of the health and safety impacts of product and service ESG Databook 28,57
Health and Safety categories
416-2 Incidents of noncompliance concerning the health and safety ESG Databook 28
impacts of products and services
GRI 417: Marketing and 417-1 Requirements for product and service information and labeling Customers 57
Labeling 417-2 Incidents of non-compliance concerning product and service Customers 28,57
information and labeling
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of customer privacy BRSR 164
Privacy and losses of customer data

308 Chemistry for Better Living

Corporate Information
Directors Unit 1 R2 Facility:
Dr. Ravindranath Kancherla Plot No 21, J N Pharma City, Parawada Plot No 114, Vasanthanarasapura, 2nd Phase,
Non-Executive Chairman and Village and Mandal, JN Pharmacity, Industrial Area, Yalladadllu, Kora Hobli,
Independent Director Paravada Industrial Area, Anakapalli, Andhra Tumakuru Taluk, Karnataka, India, 572102
Pradesh, 531021
Dr. Satyanarayana Chava Laurus Synthesis Private Limited
Executive Director and CEO Unit 2 Manufacturing Unit-1:
APSEZ, Unit-2, Plot No 19, 20 and 21, Plot No. 74B, Jawaharlal Nehru Pharma
Mr. V.V. Ravi Kumar Gurajapalem Village, Rambilli Mandal, City, Parawada, Visakhapatnam –531 021,
Executive Director and CFO Atchutapuram APSEZ, Anakapalli, Andhra Andhra Pradesh, India
Pradesh, 531011
Dr. C.V. Lakshmana Rao
Executive Director Unit 3 Manufacturing Unit-2:
Plot No 18, J N Pharma City, Parawada
Mr. Krishna Chaitanya Chava Village and Mandal, JN Pharmacity, Plot No. 18A1, APSEZ De-Notified Area,
Executive Director Paravada Industrial Area, Anakapalli, Andhra Moturupalem, Pudi and Gurajapalem
Pradesh, 531021 Villages, Rambilli Mandal, Anakapalli -
Ms. Soumya Chava
531 011 Andhra Pradesh, India.
Executive Director
Unit 4
Plot No 25, 25A To 25 K, APSEZ Denotified Registered Office:
Mrs. Aruna Bhinge
Area, Lalamkoduru Village, Rambilli Mandal, 2nd Floor, Serene Chambers, Road No.
Independent Director
Atchutapuram APSEZ, Anakapalli, Andhra 7, Banjara Hills, Hyderabad – 500 034,
Dr. Rajesh Koshy Chandy Pradesh, 531011 Telangana, India
Independent Director Sriam Labs Private Limited
Unit 5 Sy No. 505, Padamati Somaram Road,
Mr. Karnam Sekar Plot No 102 and 103, Visakha Pharmacity
Independent Director Bibinagar (Village & Mandal), Yadadri
Limited SEZ, Lemarth Village, Paravada Bhuvanagiri District, Telangana-508126
Industrial Area, Anakapalli, Andhra
Auditors Pradesh, 531019 Laurus Specialty Chemicals Private
Limited
M/s. Deloitte Haskins & Sells LLP Unit 6
Chartered Accountants Plot No 22 D and 22 E, Denotified Area 2nd Floor, Serene Chambers, Road No.
KRB Towers, Plot No. 1 to 4& 4A APSEZ, Gurajapalem and Lalamkodur 7, Banjara Hills, Hyderabad – 500 034,
1st, 2nd & 3rd Floor, Jubilee Enclave Villages,Rambilli Mandal, Atchutapuram Telangana, India
Madhapur, Hyderabad – 500 081 APSEZ, Anakapalli, Andhra Pradesh, 531011
Laurus Holdings Limited
Unit 8 Unit 32, City Business Centre Hyde Street,
Bankers Plot No. 18B, APSEZ De-Notified Area, Winchester Hants United Kingdom,
State Bank of India Moturupalem, Pudi and Gurajapalem SO23 7TA
Bank of Bahrain & Kuwait B.S.C. Villages, Rambilli Mandal, Anakapalli –
CITI Bank NA 531 011 Laurus Generics SA (Pty) Ltd.
Andhra Pradesh, India. Building 8 Healthcare Park, Woodlands Drive,
HDFC Bank Limited
Unit 10 Woodmead Gauteng, 2191
Hongkong and Shanghai Banking
Plot No.18B, APSEZ De-Notified Area,
Corporation (HSBC) Step-down Subsidiaries
Gurajapalem and Pudi Villages, Rambilli
J.P. Morgan Chase Bank N.A. Mandal, Anakapalli – 531 011 Andhra Laurus Generics Inc.
RBL Bank Limited Pradesh, India.
200 Bellevue Parkway, Suite 210 Wilmington,
Axis Bank Limited Unit 11 County of New Castle United States of
MUFG Bank Limited 6th Floor, Technopark, Indian Institute America, 19809
of Technology (IIT), Kalyanpur, Kanpur -
DBS Bank India Limited Laurus Generics GmbH
208016, Uttar Pradesh
C/o. Alfred E. Tiefenbacher Van-Der-Smissen-
Manufacturing Facilities Research & Development Centre (R&D)
Strasse 1 Hamburg, DE, 22767
Registered Office Plot No.DS 1&2, IKP Knowledge
Laurus Enclave, Plot Office 01, Park,Genome Valley,Shamirpet Mandal, Associate Companies
Edulapakabonangi Village, Parawada Turkapally,, Medchal- Malkajgiri ,
Mandal, Visakhapatnam, Anakapalli, Andhra Immunoadoptive Cell Therapy Private
Telangana, 500101
Pradesh, 531021 Limited
CM-05, SINE Office, 3rd Floor, CSRE
Corporate Office Subsidiaries Building, IIT Bombay, Powai, Mumbai City,
2nd Floor, Serene Chanbers, Road Laurus Bio Private Limited
Maharashtra, India, 400076
No. 7, Banjara Hills, Hyderabad, Registered Office and R1 Facility:
Telangana, 500034 Plot No-204 & 237, Bommasandra- Ethan Energy India Private Limited
Jigani Link Road, KIADB Industrial Area, 9th Floor, My Home Twitza, Plot No 30/A,
Bangalore-560105 Karnataka, India TSIIC Hyderabad Knowledge City, Raidurg,
Hyderabad, Telangana, India, 500081
 | whatsup@stirrup.works

Corporate Office
Concept, content and design at

2nd floor, Serene Chambers, Road No. 7,

Banjara Hills, Hyderabad - 500 034, India.

Phone: +91 40 3980 4333

Fax: +91 40 3980 4320
Email: info@lauruslabs.com
Website: www.lauruslabs.com
CIN: L24239AP2005PLC047518