Sun Pharmaceutical Industries Limited Annual Report 2022-23

Consolidated Balance Sheet

as at March 31, 2023

₹ in Million

As at As at
Particulars Notes
March 31, 2023 March 31, 2022

ASSETS
(1) Non-current assets
(a) Property, plant and equipment 3A (I) & (II) 103,903.8 103,713.8
(b) Capital work-in-progress 3D 9,633.5 7,975.1
(c) Goodwill (Net) 47 87,127.1 65,912.8
(d) Other intangible assets 3B 53,170.3 57,025.0
(e) Intangible assets under development 3E 40,098.1 4,892.9
(f) Investment in associates 4 3,532.3 2,320.6
(g) Investment in joint venture 5 361.6 340.2
(h) Financial assets
(i) Investments 6 50,680.9 49,485.7
(ii) Loans 7 6.1 7.1
(iii) Other financial assets 8 1,652.9 1,259.0
(i) Deferred tax assets (Net) 50 31,642.4 28,495.8
(j) Income tax assets (Net) 9 23,069.8 25,115.3
(k) Other non-current assets 10 3,723.7 2,888.4
Total non-current assets 408,602.5 349,431.7
(2) Current assets
(a) Inventories 11 105,130.5 89,251.3
(b) Financial assets
(i) Investments 12 93,726.1 76,339.4
(ii) Trade receivables 13 114,385.1 104,845.9
(iii) Cash and cash equivalents 14 46,237.3 45,082.5
(iv) Bank balances other than (iii) above 15 11,465.6 5,251.0
(v) Loans 16 413.2 1,699.7
(vi) Other financial assets 17 7,645.1 7,377.3
(c) Other current assets 18 19,616.5 18,798.9
Total current assets 398,619.4 348,646.0
Assets classified as held for sale 3C 214.0 -
TOTAL ASSETS 807,435.9 698,077.7

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 Corporate Overview Statutory Reports Financial Statements
Consolidated

Consolidated Balance Sheet

as at March 31, 2023

₹ in Million

As at As at
Particulars Notes
March 31, 2023 March 31, 2022

EQUITY AND LIABILITIES

Equity
(a) Equity share capital 19 2,399.3 2,399.3
(b) Other equity 20 557,554.5 477,712.9
Equity attributable to the equity shareholders of the Company 559,953.8 480,112.2
Non-controlling interests 71 33,200.9 30,548.9
Total equity 593,154.7 510,661.1
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
(i) Borrowings 21 - 2,299.2
(ii) Lease Liabilities 54 5,599.1 2,517.9
(iii) Other financial liabilities 22 37.9 161.2
(b) Provisions 23 3,429.1 3,690.7
(c) Deferred tax liabilities (Net) 50 316.9 318.6
(d) Other non-current liabilities 24 5,828.2 6,344.5
Total non-current liabilities 15,211.2 15,332.1
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings 25 61,978.8 7,007.7
(ii) Lease Liabilities 54 1,280.8 1,078.2
(iii) Trade payables 74 56,815.2 44,897.6
(iv) Other financial liabilities 26 15,930.9 18,832.7
(b) Other current liabilities 27 6,427.2 7,033.9
(c) Provisions 28 53,543.8 91,478.2
(d) Current tax liabilities (Net) 29 3,087.1 1,756.2
Total current liabilities 199,063.8 172,084.5
Liabilities directly associated with assets classified as held for sale 3C 6.2 -
Total liabilities 214,281.2 187,416.6
TOTAL EQUITY AND LIABILITIES 807,435.9 698,077.7

The accompanying notes are an integral part of the consolidated financial statements
As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Sun Pharmaceutical Industries Limited
ICAI Firm Registration No. : 324982E/E300003

per PAUL ALVARES DILIP S. SHANGHVI

Partner Managing Director
Membership No. : 105754 (DIN : 00005588)
Mumbai, May 26, 2023

SAILESH T. DESAI
Wholetime Director
(DIN : 00005443)

ANOOP DESHPANDE C. S. MURALIDHARAN

Company Secretary & Compliance Officer Chief Financial Officer
Mumbai, May 26, 2023

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 Sun Pharmaceutical Industries Limited Annual Report 2022-23

Consolidated Statement of Profit and Loss

for the year ended March 31, 2023

₹ in Million

Year ended Year ended

Particulars Notes
March 31, 2023 March 31, 2022

(I) Revenue from operations 30 438,856.8 386,544.9

(II) Other income 31 6,345.2 9,215.1
(III) Total income (I+II) 445,202.0 395,760.0
(IV) Expenses
Cost of materials consumed 32 77,775.7 70,491.2
Purchases of stock-in-trade 35,715.0 34,100.3
Changes in inventories of finished goods, stock-in-trade and work-in-progress 33 (6,869.1) (1,076.1)
Employee benefits expense 34 82,960.3 73,008.3
Finance costs 35 1,720.0 1,273.5
Depreciation and amortisation expense 3 (A & B) 25,294.3 21,437.4
Other expenses 36 131,546.0 107,583.6
Net (gain) / loss on foreign currency transactions 1,261.0 (1,539.6)
Total expenses (IV) 349,403.2 305,278.6
(V) Profit before exceptional items and tax (III-IV) 95,798.8 90,481.4
(VI) Exceptional items 61 1,714.5 45,668.2
(VII) Profit before tax (V-VI) 94,084.3 44,813.2
(VIII) Tax expense/(credit)
Current tax 18,692.2 3,543.9
Deferred tax (10,216.3) 7,975.3
Deferred tax - exceptional 61 - (764.2)
Total tax expense (VIII) 49 8,475.9 10,755.0
(IX) Profit for the year before share of profit/(loss) of associates and joint venture 85,608.4 34,058.2
(VII-VIII)
(X) Share of profit/(loss) of associates (net of tax) (476.7) (217.3)
(XI) Share of profit/(loss) of joint venture (net of tax) (2.3) 51.9
(XII) Profit for the year before non-controlling interests (IX+X+XI) 85,129.4 33,892.8
(XIII) Non-controlling interests 71 393.6 1,165.5
(XIV) Profit for the year attributable to owners of the Company (XII-XIII) 84,735.8 32,727.3
(XV) Other comprehensive income
(A) Items that will not be reclassified to profit or loss
(a) Gain/(loss) on remeasurement of the defined benefit plans 157.4 (330.7)
Income tax on above (54.2) 115.3
103.2 (215.4)
(b) Gain/(loss) on equity instruments measured at fair value through other 832.0 (1,542.8)
comprehensive income
Income tax on above (63.8) 45.6
768.2 (1,497.2)
Total (A) 871.4 (1,712.6)

204
 Corporate Overview Statutory Reports Financial Statements
Consolidated

Consolidated Statement of Profit and Loss

for the year ended March 31, 2023

₹ in Million

Year ended Year ended

Particulars Notes
March 31, 2023 March 31, 2022

(B) Items that may be reclassified to profit or loss

(a) Gain/(loss) on debt instruments measured at fair value through other (247.7) (1,567.3)
comprehensive income
Income tax on above (3.8) 131.6
(251.5) (1,435.7)
(b) Effective portion of gain/(loss) on designated portion of hedging (529.6) (515.3)
instruments in a cash flow hedge
Income tax on above 66.1 171.4
(463.5) (343.9)
(c) Exchange differences in translating the financial statements of foreign 22,913.7 9,479.1
operations
Exchange differences on translation of net investment in foreign (504.4) 344.4
operations
Income tax on above - (759.2)
22,409.3 9,064.3
Total (B) 21,694.3 7,284.7
(XV) Total other comprehensive income (A + B) 22,565.7 5,572.1
(XVI) Total comprehensive income for the year (XII+XV) 107,695.1 39,464.9
Other comprehensive income for the year attributable to:
– Owners of the Company 20,298.8 4,794.5
– Non-controlling interests 2,266.9 777.6
Total comprehensive income for the year attributable to:
– Owners of the Company 105,034.6 37,521.8
– Non-controlling interests 2,660.5 1,943.1
Earnings per equity share (face value per equity share – ₹ 1) 51
Basic (in ₹) 35.3 13.6
Diluted (in ₹) 35.3 13.6

The accompanying notes are an integral part of the consolidated financial statements
As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Sun Pharmaceutical Industries Limited
ICAI Firm Registration No. : 324982E/E300003

per PAUL ALVARES DILIP S. SHANGHVI

Partner Managing Director
Membership No. : 105754 (DIN : 00005588)
Mumbai, May 26, 2023

SAILESH T. DESAI
Wholetime Director
(DIN : 00005443)

ANOOP DESHPANDE C. S. MURALIDHARAN

Company Secretary & Compliance Officer Chief Financial Officer
Mumbai, May 26, 2023

Innovation for better patient care 205

 Consolidated Statement of Changes in Equity

206
for the year ended March 31, 2023

₹ in Million
Other equity
Reserves and surplus Other comprehensive income (OCI) Attributable
Equity Non-
Debt Equity Foreign Effective to owners
Particulars share Capital controlling Total
Capital Securities Amalgamation Legal General Retained instrument instrument currency portion of of parent
capital redemption interests
reserve premium reserve reserve reserve earnings through through translation cash flow company
reserve
OCI OCI reserve hedges
Balance as at March 31, 2021 2,399.3 3,681.7 11,874.1 43.8 7.5 285.5 35,621.0 365,980.9 395.0 3,891.1 39,924.5 523.4 464,627.8 30,170.5 494,798.3
Profit for the year - - - - - - - 32,727.3 - - - - 32,727.3 1,165.5 33,892.8
Exchange difference arising on translation of foreign - - - - - - - - - - 8,010.6 - 8,010.6 1,053.7 9,064.3
operations/ net investment in foreign operations, net of tax
Other comprehensive income for the year, net of tax - - - - - - - * (215.6) (1,164.6) (1,497.2) - (338.7) (3,216.1) (276.1) (3,492.2)
Sun Pharmaceutical Industries Limited

Total comprehensive income for the year - - - - - - - 32,511.7 (1,164.6) (1,497.2) 8,010.6 (338.7) 37,521.8 1,943.1 39,464.9
Payment of dividend - - - - - - - (21,589.1) - - - - (21,589.1) (102.7) (21,691.8)
Buy-back / purchase of equity shares - - - - - - - (448.3) - - - - (448.3) (1,462.0) (1,910.3)
Transfer on of sale of equity instrument - - - - - - - 1.3 - (1.3) - - - - -
Balance as at March 31, 2022 2,399.3 3,681.7 11,874.1 43.8 7.5 285.5 35,621.0 376,456.5 (769.6) 2,392.6 47,935.1 184.7 480,112.2 30,548.9 510,661.1
Profit for the year - - - - - - - 84,735.8 - - - - 84,735.8 393.6 85,129.4
Exchange difference arising on translation of foreign - - - - - - - - - - 20,059.8 - 20,059.8 2,349.5 22,409.3
operations/ net investment in foreign operations, net of tax
Other comprehensive income for the year, net of tax - - - - - - - * 103.2 (241.6) 768.2 - (390.8) 239.0 (82.6) 156.4
Total comprehensive income for the year - - - - - - - 84,839.0 (241.6) 768.2 20,059.8 (390.8) 105,034.6 2,660.5 107,695.1
Payment of dividend - - - - - - - (25,193.0) - - - - (25,193.0) (8.5) (25,201.5)
Annual Report 2022-23

Balance as at March 31, 2023 2,399.3 3,681.7 11,874.1 43.8 7.5 285.5 35,621.0 436,102.5 (1,011.2) 3,160.8 67,994.9 (206.1) 559,953.8 33,200.9 593,154.7

* Represents remeasurement of the defined benefit plans.

The accompanying notes are an integral part of the consolidated financial statements
As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Sun Pharmaceutical Industries Limited
ICAI Firm Registration No. : 324982E/E300003

per PAUL ALVARES DILIP S. SHANGHVI

Partner Managing Director
Membership No. : 105754 (DIN : 00005588)
Mumbai, May 26, 2023

SAILESH T. DESAI
Wholetime Director
(DIN : 00005443)

ANOOP DESHPANDE C. S. MURALIDHARAN

Company Secretary & Compliance Officer Chief Financial Officer
Mumbai, May 26, 2023
 Corporate Overview Statutory Reports Financial Statements
Consolidated

Consolidated Cash Flow Statement

for the year ended March 31, 2023

₹ in Million

Year ended Year ended

Particulars
March 31, 2023 March 31, 2022

A. Cash flow from operating activities

Profit / (loss) before tax 94,084.3 44,813.2
Adjustments for:
Depreciation and amortisation expense 25,294.3 21,437.4
Net (gain) / loss on sale / write off / impairment of property, plant and equipment, other 227.1 1,656.0
intangible assets, intangible assets under development and goodwill
Finance costs 1,720.0 1,273.5
Interest income (3,845.4) (5,533.7)
Dividend income on investments (1,464.5) (2,153.3)
Net (gain) / loss arising on financial assets measured at fair value through profit or loss 1,613.0 3,619.5
Net gain on sale of financial assets measured at fair value through profit or loss (1,847.1) (486.1)
Net (gain) / loss on sale of financial assets measured at fair value through other 240.3 (7.7)
comprehensive income
Provision/impairment/write off/(reversal) for doubtful trade receivables/advances/loans 2,070.5 175.7
Sundry balances written back, net (150.7) (59.8)
Effect of exchange rate changes 3,368.1 (172.0)
Operating profit before working capital changes 121,309.9 64,562.7
Movements in working capital:
(Increase) / Decrease in inventories (12,022.0) 3,069.5
(Increase) / Decrease in trade receivables (9,531.7) (13,422.6)
(Increase) / Decrease in other assets (2,158.1) 141.1
Increase / (Decrease) in trade payables 11,823.7 3,699.2
Increase / (Decrease) in other liabilities (6,691.5) (23,333.5)
Increase / (Decrease) in provisions (38,038.6) 45,436.8
Cash generated from operations 64,691.7 80,153.2
Net Income tax (paid) / refund received (including interest on refunds) (15,098.4) 9,692.2
Net cash generated from operating activities (A) 49,593.3 89,845.4
B. Cash flow from investing activities
Payments for purchase of property, plant and equipment (including capital work-in-progress, (20,855.8) (14,950.4)
other intangible assets and intangible assets under development)
Proceeds from disposal of property, plant and equipment and other intangible assets 210.1 606.1
Loans / inter corporate deposits given / placed - (76.8)
Loans / inter corporate deposits received back / matured - 140.4
Purchase of investments
Associates (1,554.9) (152.7)
Others (218,087.4) (241,353.5)
Proceeds from sale of Investments (others) 208,968.4 207,020.8
Bank balances not considered as cash and cash equivalents
Fixed deposits / margin money placed (7,251.0) (5,117.9)
Fixed deposits / margin money matured 1,488.7 1,692.6
Acquisition of subsidiary (46,858.2) (7,395.7)
Disposal of subsidiary - 238.4
Interest received 3,179.3 763.0
Dividend received 1,324.0 1,338.3
Net cash used in investing activities (B) (79,436.8) (57,247.4)

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 Sun Pharmaceutical Industries Limited Annual Report 2022-23

Consolidated Cash Flow Statement

for the year ended March 31, 2023

₹ in Million

Year ended Year ended

Particulars
March 31, 2023 March 31, 2022

C. Cash flow from financing activities

Proceeds of borrowings 81,597.8 16,567.7
Repayment of borrowings (28,996.3) (43,999.0)
Repayment towards lease liabilities (1,346.2) (1,286.5)
Payment for buy-back of equity shares held by non-controlling interests of subsidiaries - (1,857.0)
Net increase / (decrease) in working capital demand loans (1,304.9) 1,064.2
Finance costs (992.4) (732.1)
Dividend payment to non-controlling interests (8.5) (102.7)
Dividend paid (25,188.8) (21,589.2)
Net cash from / (used in) financing activities (C) 23,760.7 (51,934.6)
Net decrease in cash and cash equivalents (A+B+C) (6,082.8) (19,336.6)
Cash and cash equivalents at the beginning of the period 45,082.5 62,730.3
Cash and cash equivalents transferred on sale of subsidiary/taken over on acquisition of 5,666.9 414.5
subsidiary
Effect of exchange differences on restatement of foreign currency cash and cash 1,570.7 1,274.3
equivalents
Cash and cash equivalents at the end of the year 46,237.3 45,082.5

Notes:
₹ in Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Cash and cash equivalents comprises of
Balances with banks
In current accounts 32,249.3 21,487.4
In deposit accounts with original maturity less than 3 months 13,871.7 23,439.1
Cheques, drafts on hand 94.9 140.8
Cash on hand 21.4 15.2
Cash and cash equivalents (Refer Note 14) 46,237.3 45,082.5

208
 Corporate Overview Statutory Reports Financial Statements
Consolidated

Consolidated Cash Flow Statement

for the year ended March 31, 2023

Change in financial liability/ asset arising from financing activities

₹ in Million
Year ended March 31, 2023
Particulars Derivatives, net
Borrowings
[(liabilities) / asset]
Opening balance 9,306.9 (302.7)
Changes from financing cash flows 51,296.6 -
The effect of changes in foreign exchange rates 1375.3 66.1
Closing balance 61,978.8 (236.6)

₹ in Million
Year ended March 31, 2022
Particulars Derivatives, net
Borrowings
[(liabilities) / asset]
Opening balance 35,234.9 (299.5)
Changes from financing cash flows (26,367.1) 133.8
The effect of changes in foreign exchange rates 136.8 (137.0)
Other changes 302.3 -
Closing balance 9,306.9 (302.7)

For movement of lease liabilities, Refer Note 54.

The accompanying notes are an integral part of the consolidated financial statements
As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Sun Pharmaceutical Industries Limited
ICAI Firm Registration No. : 324982E/E300003

per PAUL ALVARES DILIP S. SHANGHVI

Partner Managing Director
Membership No. : 105754 (DIN : 00005588)
Mumbai , May 26, 2023

SAILESH T. DESAI
Wholetime Director
(DIN : 00005443)

ANOOP DESHPANDE C. S. MURALIDHARAN

Company Secretary & Compliance Officer Chief Financial Officer
Mumbai , May 26, 2023

Innovation for better patient care 209