IFRS Balance sheet of Dr.

Reddy Labs March 31, 2019 March 31, 2020

ASSETS
Current assets
Cash and cash equivalents 2,228 2,053
Other investments 22529 23687
Trade and other receivables 39869 50278
Inventories 33579 35066
Derivative financial instruments 360 1105
Tax assets 3400 4379
Other current assets 12536 13802
Total current assets 114,501 130,370

Non-current assets
Property, plant and equipment 54,088 52,332
Goodwill 3902 3994
Other intangible assets 44367 27659
Trade and other receivables 113 1737
Investment in equity accounted investees 2529 2763
Other investments 813 328
Deferred tax assets 4168 12214
Other non-current assets 946 844
Total non-current assets 110,926 101,871
Total assets 225,427 232,241

LIABILITIES AND EQUITY

Current liabilities
Trade and other payables 14,553 16,659
Short-term borrowings 12125 16441
Long-term borrowings, current portion 4256 4266
Provisions 4166 3800
Tax liabilities 181 573
Derivative financial instruments 68 1602
Bank overdraft - 91
Other current liabilities 24351 29382
Total current liabilities 59,700 72,814

Non-current liabilities
Long-term borrowings 22,000 1,304
Deferred tax liabilities 610 275
Provisions 52 54
Other non-current liabilities 2868 2806
Total non-current liabilities 25,530 4,439
Total liabilities 85,230 77,253

Equity
 Share capital 830 831
Treasury shares -535 -1006
Share premium 8211 8495
Share-based payment reserve 990 1233
Capital redemption reserve 173 173
Retained earnings 128646 144247
Other components of equity 1882 1015
Total equity 140,197 154,988
Total liabilities and equity 225,427 232,241
YOY change Common size 2020

-7.85% 0.88%
5.14% 10.20%
26.11% 21.65%
4.43% 15.10%
206.94% 0.48%
28.79% 1.89%
10.10% 5.94%
13.86% 56.14%

-3.25% 22.53%
2.36% 1.72%
-37.66% 11.91%
1437.17% 0.75%
9.25% 1.19%
-59.66% 0.14%
193.04% 5.26%
-10.78% 0.36%
-8.16% 43.86%
3.02% 100.00%

14.47% 7.17%
35.60% 7.08%
0.23% 1.84%
-8.79% 1.64%
216.57% 0.25%
2255.88% 0.69%
0.04%
20.66% 12.65%
21.97% 31.35%

-94.07% 0.56%
-54.92% 0.12%
3.85% 0.02%
-2.16% 1.21%
-82.61% 1.91%
-9.36% 33.26%
0.12% 0.36%
88.04% -0.43%
3.46% 3.66%
24.55% 0.53%
0.00% 0.07%
12.13% 62.11%
-46.07% 0.44%
10.55% 66.74%
3.02% 100.00%
IFRS Balance sheet of Dr. Reddy Labs 2020
ASSETS
Current assets
Cash and cash equivalents 2,053
Other investments 23,687
Trade and other receivables 50,278
Inventories 35,066
Derivative financial instruments 1,105
Tax assets 4,379
Other current assets 13,802
Total current assets 130,370
Non-current assets
Property, plant and equipment, net 52,332
Goodwill 3,994
Other intangible assets 27,659
Trade and other receivables 1,737
Investment in equity accounted investees 2,763
Other investments 328
Deferred tax assets 12,214
Other non-current assets 844
Total non-current assets 101,871

TOTAL ASSETS 232,241

LIABILITIES AND EQUITY (IFRS)

Current liabilities
Trade and other payables 16,659
Short-term borrowings 16,441
Long-term borrowings, current portion 4,266
Provisions 3,800
Tax liabilities 573
Derivative financial instruments 1,602
Bank overdraft 91
Other current liabilities 29,382
Total current liabilities 72,814

Non-current liabilities
Long-term borrowings 1,304
 Deferred tax liabilities 275
Provisions 54
Other non-current liabilities 2,806
Total non-current liabilities 4,439
Total liabilities 77,253

Equity
Share capital 831
Treasury shares -1,006
Share premium 8,495
Share-based payment reserve 1,233
Capital redemption reserve 173
Retained earnings 144,247
Other components of equity 1,015
Total equity 154,988
Total liabilities and equity 232,241
Ind AS Balance sheet of Dr. Reddy Labs 2020
ASSETS
Non-current assets
Property, plant and equipment 47,779
Capital work-in-progress 4,364
Goodwill 4,913
Other intangible assets 15,811
Intangible assets under development 10,987
Investment in equity accounted investees 2,763
Financial assets
Investments 328
Trade receivables 1,737
Other financial assets 793
Deferred tax assets, net 12,199
Tax assets, net 4,379
Other non-current assets 209
Total non-current assets 106,262
Current assets
Inventories 35,067
Financial assets
Investments 23,687
Trade receivables 50,278
Derivative instruments 1,105
Cash and cash equivalents 2,053
Other financial assets 3,377
Other current assets 10,424
Total current assets 125,991
TOTAL ASSETS 232,253

EQUITY AND LIABILITIES (Ind AS)

Equity
Equity share capital 831
Other equity 155157
Total Equity 155,988

Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 1,304
Other financial liabilities -
Provisions 745
Deferred tax liabilities, net 20
Other non-current liabilities 2,055
Total Non-current liabilities 4,124

Current liabilities
Financial Liabilities
Borrowings 16,532
Trade payables
Total outstanding dues of SME 55
Total outstanding dues of creditors other than SME 15193
Derivative instruments 1,602
Other financial liabilities 27006
Liabilities for current tax, net 572
Provisions 4669
Other current liabilities 6,512
Total liabilities 72,141
Total equity and liabilities 232,253
IFRS Balance sheet of Dr. Reddy Labs 2019 2020

Revenues 153,851 174,600

Cost of revenues 70421 80591
Gross profit 83430 94009
Selling, general and administrative expenses 48680 50129
Research and development expenses 15607 15410
Impairment of non-current assets 210 16767
Other income, net -1955 -4290
Total operating expenses 62542 78016
Results from operating activities (A) 20888 15993
Finance income 2280 2461
Finance expense -1163 -983
Finance income, net (B) 1117 1478
Share of profit of equity accounted investees, net of tax ( C) 438 561
Profit before tax [(A)+(B)+(C)] 22443 18032
Tax (expense)/benefit, net -3648 1466
Profit for the year 18795 19498
Earnings per share:
Basic EPS 113.28 117.63
Diluted EPS 113.09 117.4
Common size 2019 Common size 2020

100.00% 100.00%
45.77% 46.16%
54.23% 53.84%
31.64% 28.71%
10.14% 8.83%
0.14% 9.60%
-1.27% -2.46%
40.65% 44.68%
13.58% 9.16%
1.48% 1.41%
-0.76% -0.56%
0.73% 0.85%
0.28% 0.32%
14.59% 10.33%
-2.37% 0.84%
12.22% 11.17%
 Income statement as per IFRS
Income 2020
Revenues 174,600
Cost of revenues 80,591
Gross profit 94,009
Selling, general and administrative expenses 50,129
Research and development expenses 15,410
Impairment of non-current assets 16,767
Other income, net -4,290
Total operating expenses 78,016
Results from operating activities (A) 15,993
Finance income 2,461
Finance expense -983
Finance income, net (B) 1,478
Share of profit of equity accounted investees, net of tax ( C) 561
Profit before tax [(A)+(B)+(C)] 18,032
Tax (expense)/benefit, net 1,466
Profit for the year 19,498
Earnings per share:
Basic 117.63
Diluted 117.40
 Income statement as per Ind AS
Income
Sales 163,574
Service income and License fees 11,026
Other operating income 570
Total revenue from operations 175,170
Other income 6,206
Total income 181,376
Expenses
Cost of materials consumed 29,848
Purchase of stock-in-trade 25,459
Changes in inventories 237
Employee benefits expense 33,802
Depreciation and amortisation expense 11,631
Impairment of non-current assets 16,767
Finance costs 983
Selling and other expenses 44,353
Total expenses 163,080
Profit before tax and before share of equity accounted investees 18,296
Share of profit of equity accounted investees 561
Profit before tax 18,857
Tax expense/(benefit)
Current tax 6,616
Deferred tax -8,019
Profit for the year 20,260
Earnings per share:
Basic 122.22
Diluted 121.99
IFRS Statement of cash flows of Dr. Reddy Labs 2020
Cash flows from/(used in) operating activities:
Profit for the year 19,498
Adjustments for:
Income tax expense/(benefit) -1,466
Fair value changes and profit on sale of mutual funds -929
Depreciation and amortization 12,472
Impairment of non-current assets 16767
Allowance for credit losses (on trade receivables and other advances) 190
Gain)/loss on sale or de-recognition of pp&e and other intangible assets, net 68
Share of profit of equity accounted investees -561
Foreign exchange gain, net -2168
Interest expense, net 95
Equity settled share-based payment expense 521
Dividends income -5

Changes in operating assets and liabilities:

Trade and other receivables -12,446
Inventories (Refer to Note 9 for inventory writedowns) -1487
Trade and other payables 1,576
Other assets and other liabilities, net 4821
Cash generated from operations 36,946
Income tax paid, net -7105
Net cash from operating activities 29,841

Cash flows from/(used in) investing activities:

Expenditure on property, plant and equipment -4,846
Proceeds from sale of property, plant and equipment 131
Expenditures on other intangible assets -1,269
Proceeds from sale of other intangible assets 259
Purchase of other investments -111,918
Proceeds from sale of other investments 111704
Dividends received from equity accounted investees 392
Interest and dividend received 624
Net cash used in investing activities -4,923

Cash flows from/(used in) financing activities:

Proceeds from issuance of equity shares (including treasury shares) 4
Purchase of treasury shares -474
Proceeds from/(repayment of) short-term borrowings, net (Refer to Note 16) 4,235
Repayment of)/proceeds from long-term borrowings, net (Refer to Note 16) -22918
Payment of principal portion of lease liabilities (Refer to Note 16) -482
Dividend paid (including corporate dividend tax) -3916
Interest paid -1,608
Net cash used in financing activities -25,159

Net decrease in cash and cash equivalents -241

Effect of exchange rate changes on cash and cash equivalents -25
Cash and cash equivalents at the beginning of the year 2,228
Cash and cash equivalents at the end of the year Rs. 1,962
Summary of SCF 2020
Net cash from operating activities (1) 29,841
Net cash used in investing activities (2) -4,923
Net cash used in financing activities (3) -25,159
Net decrease in cash and cash equivalents (4) = (1) + (2) + (3) -241
Effect of exchange rate changes (5) -25
Cash and cash equivalents at the beginning of the year (6) 2,228
Cash and cash equivalents at the end of the year (7) = (4) + (5) + (6) 1,962
 Generics PSAI Proprietary Others Total
Products
Revenue 138,264 26,176 7,949 2,781 175,170
% 79% 15% 5% 2% 100%

Gross profit 78,449 6,219 7,744 1,626 94,038

Gross profit margin 56.74% 23.76% 97.42% 58.47% 53.68%

Country Revenue %
India 32,089 18.38%
United States 76,028 43.54%
Russia 16,900 9.68%
Others 49,583 28.40%
Total 174,600 100.00%

Therapeutic areas Generics PSAI

Nervous System 26,825 19% 2,797 2%
Gastrointestinal 19,394 14%
Oncology 18,245 13% 1,798 1%
Cardiovascular 14,729 11% 8,567 6%
Pain Management 13,808 10% 5,073 4%
Respiratory 10,433 8%
Anti-Infective 9,402 7% 1,097 1%
Dermatology 1,370 1%
Others 25,287 18% 5,045 4%
Total 138,123 100% 138,123 100%
Select numbers as per IFRS 2019 2020
Net income (1) 19,498
Total equity 140,197 154,988
Avergae SE (2) 147,593

ROE (1) / (2) 13.21%

Select numbers as per IFRS 2019 2020

Net income 19,498

Sales 174,600
Net income / Sales (1) 11.17%

Total assets 225,427 232,241

Average total assets 228,834
Sales / Avg total assets (2) 0.76

SE 140,197 154,988
Avg SE 147,593
Avg total assets / Avg SE (3) 1.55

ROE (1) X (2) X (3) 13.21%

Select numbers as per IFRS 2019 2020

Net income 19,498

Interest expense I 983
Statutory tax rate t 35%
I*(1-t) 639
Net income + Interest *(1-t) (1) 20,137
Total assets 225,427 232,241
Average total assets (2) 228,834
Adj ROA (1) / (2) 8.80%
Income statement 2020
Revenues 174,600
Cost of revenues 80,591
Gross profit 94,009
Selling, general and administrative expenses 50,129
Research and development expenses 15,410
Impairment of non-current assets 16,767
Other income, net -4,290
Total operating expenses 78,016
Results from operating activities (A) 15,993
Finance income 2,461
Finance expense -983
Finance income, net (B) 1,478
Share of profit of equity accounted investees, net of tax ( C) 561
Profit before tax [(A)+(B)+(C)] 18,032
Tax (expense)/benefit, net 1,466
Profit for the year 19,498
Earnings per share:
Basic 117.63
Diluted 117.40
Gross profit margin 53.84%

Operating profit margin 9.16%

Pre-tax profit margin 10.33%

Net income margin 11.17%

Select numbers as per IFRS 2019 2020
Sales 174,600
COGS 80,591

Trade and other receivables 39,869 50,278

Inventories 33,579 35,066
Accounts payable 14,553 16,659
PP&E 54,088 52,332

AR Days
Avg AR 45,074
AR turnover [ Sales / Avg AR] 3.87
AR Days [ 365 / AR turnover] 94

Inventory Days
Avg inventory 34,323
Inventory turnover [ COGS / Avg inventory] 2.35
Inventory Days [ 365 / Inventory turnover] 155

AP Days
Avg AP 15,606
AP turnover [ COGS / Avg AR] 5.16
AP Days [ 365 / AP turnover] 71

WC DAYS = AR days + Inventory days - AP days 179

Fixed asset turnover

Avg PP&E 53,210
Fixed asset turnover [ Sales / Avg PP&E] 3.28