Zydus Lifesciences Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1. The above financial results were reviewed by the Audit Committee ancf then approved by the Board oF Directors at their meeting held on May 27, 2021.

2. The Board of Directors have recommended a dividend of Rs.3.50 [@ 350%] per equity share on 1,023,742,600 equity shares of Re. 1/- each for the financial year ended on March 31, 2021. The recommended dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting.

3. Other income includes dividend income, mainly from subsidiaries of the Company, of INR 111 Million for the quarter ended March 31, 2021 and Nil for the quarter ended December 31, 2020 [INR 3,550 Million for the quarter ended March 31, 2020], The same is INR 474 Million for the year ended March 31, 2021 [INR 7,417 Million for the previous year ended March 31, 2020].

4. Deferred tax for the quarter and year ended March 31, 2021 includes INR 717 Million of benefit on account of recognition of deferred tax asset consequent to a merger of a wholly owned subsidiary with the Company in the previous year.

5. Pursuant to the Definitive Agreement [ "DA"] entered Into by the Company on March 11, 2020 with its subsidiary Zydus Animal Health and Investments Limited ["ZAHL"] [formerly known as Violio Pharmaceuticals and Investments Limited] to achieve certain strategic and commercial objectives, the Company's Animal Healthcare Business ["AHB"] comprising of two undertakings viz. Animal Healthcare Established Markets Undertaking [AHE5TM] and Animal Healthcare Emerging Markets Undertaking [AHEMGM ] had been transferred to and vested in ZAHL on a going concern basis, on a lump sum basis, without values being assigned to individual assets and liabilities. The said transfer had been given effect to in the books of the Company as on March 20, 2020 being the Closing Date for the transaction. Consequently, AHB had been considered and disclosed as "Discontinued Operations" as per Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations".

6. The Company has issued unsecured Commercial Papers [CPs] during the year. The total CPs outstanding as at March 31, 2021 amounts to INR 6,014 Million. The CPs are repayable on October 22, 2021. The CPs are having credit rating of CRISIL A1+* There is no change in rating of CPs post their issuance.

7. The Ratios have been calculated as under:

Debt Equity Ratio = Total Borrowings / Total Equity

Total Borrowings = Long Term Borrowings + Short Term Borrowings + Current Maturities of Long Term Debt Total Equity = Equity Share Capital + Other Equity Debt Service Coverage Ratio = Earnings before Finance cost, Depreciation & Amortisation and Tax / Current Maturities of Long Term Debt Interest Service Coverage Ratio = Earnings before Finance cost, Depreciation & Amortisation and Tax / Finance cost Net worth of the Company as at March 31, 2021 is INR 127,445 Million [as at March 31, 2020: INR 112,602 Million].

8. As per the current assessment of the situation based on the internal and external information available up to the date of approval of these financial results by the Board of Directors, the Company continues to believe that the impact of Covid-19 on its business, assets, internal financial controls, profitability and liquidity, both present and future, would be limited and there is no indication of any material impact on the carrying amounts of inventories, goodwill, intangible assets, trade receivables, investments and other financial assets. The eventual outcome of the impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results and the Company will closely monitor any material changes to the economic environment and their impact on its business in the times to come.

9. The figures of the quarters ended March 31, 2021 and March 31, 2020 are balancing figures between audited figures in respect of the full financial year and year to date figures upto the third quarter of the respective fmandal years.

10. Figures of previous reporting periods have been regrouped/ reclassified wherever necessary to correspond with the figures of the current reporting period.

11. The Company has one segment of activity viz., "Pharmaceuticals".