Aurobindo Pharma Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2023

1. The above standalone financial results of Aurobindo Pharma Limited ("the Company") have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued thereunder and in terms of Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
2. The above standalone financial results of the Company as reviewed by the Audit Committee has been approved by the Board of Directors at its meeting held on May 27, 2023. The results for the year ended March 31, 2023 has been audited and for the quarter ended March 31, 2023 has been reviewed by our statutory auditors. The statutory auditors of the Company have expressed an unmodified opinion on the financial results for the year ended March 31, 2023 and have issued an unmodified conclusion in respect of the limited review for the quarter ended March 31, 2023.
3. The Company operates in only one reportable segment viz., 'Pharmaceutical Products'.
4. a) The Board of Directors of the Company at its meeting held on March 28, 2022 had approved the acquisition of business including certain assets of Veritaz Healthcare Limited (Veritaz). Consequently the Company entered into a definitive agreement with Veritaz for the said acquisition for a total consideration of Rs. 1,689.2 and obtained control w.e.f. April 1, 2022 over such business and assets.

b) The Board of Directors of the Company at its meeting held on June 17, 2022 had approved investment in GLS Pharma Limited (GLS) through subscription of 204,819 equity shares for an aggregate consideration of Rs. 93.5 (constituting 17% of the equity share capital of GLS) and acquisition of 409,339 equity shares from the selling shareholders for an aggregate consideration of Rs. 187 (constituting of 34% of equity share capital of GLS). During the quarter ended June 30, 2022, the Holding Company subscribed to 204,819 equity shares of GLS consequent to execution of share subscription and purchase agreement. During the year on satisfaction of the closing conditions, the Company acquired the additional 409,339 equity shares. As at March 31, 2023 the Company holds 51% of the equity shares in GLS.

c) During the previous year, pursuant to Board approvals obtained, the following units were transferred within the Group:
(i) The undertaking of Unit 10 located at Multiproduct Special Economic Zone, Naidupet, Mandal, SPSR Nellore District, Andhra Pradesh, transferred to its wholly-owned subsidiary APL Healthcare Limited through a slump sale w.e.f April 1, 2021.
(ii) The undertaking of Unit-4 of the Company located at Pashamylaram, Patancheru Mandal, Sangareddy district, Telangana, transferred to Eugia Pharma Specialities Limited, a wholly owned subsidiary of the Company w.e.f. July 1, 2021.
(iii) The undertaking of Unit-16 of the Company located at TSIIC, SEZ, Polepally Village, Jadcherla Mandal, Mahbubnagar district, Telangana, transferred to Wytells Pharma Private Limited, a wholly owned step-down subsidiary of the Company and 100% subsidiary of Eugia Pharma Specialities Limited w.e.f June 1, 2021.
(iv) The undertaking of Unit 18 of the Company located at Survey No.69, 70, 71 & 72, Indrakaran Village, Kandi Mandal, Sangareddy District - 502203, Telangana, to Auro Vaccines Private Limited, a wholly owned subsidiary of the Company w.e.f. January 1, 2022.

Consequent to the above transfers/acquisitions, the results of the current quarter/year are strictly not comparable to the previous quarters/year.

d) The Board of Directors of the Company at its meeting held on February 9, 2023 and subsequently on March 23, 2023, Shareholders of the Company approved through postal ballot the transfer of certain Active Pharmaceutical Ingredients (API) busines units (Unit I, VIII, IX, XI, XIV and RC – 02) for consideration of Rs. 33,031.7 to its wholly owned subsidiary, Apitoria Pharma Private Limited (APPL) (formerly known as Auro Pharma India Private Limited) on going concern basis by way of a slump sale w.e.f April 01, 2023.

Subsequent to year end, on April 01, 2023 Board of Directors of the Company approved the transfer of two API units (Unit V and XVII) for consideration of Rs. 5,026.2 to its wholly owned subsidiary, APPL on going concern basis by way of a slump sale w.e.f April 01, 2023.

5. Exceptional item of Rs. 747.1 for the quarter and year ended March 31, 2022 represents impairment of investment relating to a subsidiary.
6. During the quarter ended March 31, 2022, 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, 2022 and re-measured its deferred tax assets /liabilities based on the rate prescribed in the said Section. The impact of this change has been recognised in the statement of profit and loss during the year ended March 31, 2022.
7. The standalone financial results of the Company for the quarter and year ended March 31, 2022, were audited by the M/s BSR & Associates LLP, Chartered Accountants, the predecessor auditor, who have expressed an unmodified opinion.
8. The figures for the current quarter and quarter ended March 31, 2022, are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2023 and March 31, 2022, respectively and published year to date figures up to third quarter ended December 31, 2022 and December 31, 2021, respectively, which were subject to limited review by the statutory auditors.