The Lupin Annual Report, FY2012-13

There is only one reason why we exist;
to treat disease, to heal and enrich

human life. The bottomline, then, is
just one.
Happiness.
Dr. Desh Bandhu Gupta, Founder & Chairman, Lupin Limited
2 | Lupin Limited
HA P P I NES S
THE B OTTOML I NE I S
Annual Report 2013 | 3
CHAI RMAN S MESSAGE
My Dear Shareowners,
As a young entrepreneur, I was always driven by ideas that would help improve
peoples lives, which is what led me to set up Lupin in 1968. Lupin embodies my
vision to fight life-threatening diseases by manufacturing drugs of the highest
social priority and quality medicines at affordable prices. It personifies the deep
inter-connect between what we do and what society needs.
I am proud to say that today Lupin develops and manufactures drugs with the
objective to treat disease, to heal and enrich human life. The better we do this, the
better we are able to serve the community, the happier we are able to make people.
As a result, happiness is not a business by-product, it is the critical bottomline of
all that we have ever done and will continue to do at Lupin.
This overarching bottomline is the sum of all that every Lupinytt works towards
at every level, function and location of our business, globally.
Some would measure our success by our leadership credentials, growth
in revenues, profits, market shares, customer service records and market
capitalisation. We, at Lupin, measure it by looking at how many new products and
technology platforms we develop, how many lives we touch, how we make quality
medicines more accessible and affordable to the common man globally. This is our
index of success and happiness.
My vision for Lupin, from ` 5000 to USD 5 billion in 50 years, is but the
beginning for a bigger more pertinent goal, a happier tomorrow.
Best Wishes,
Dr. Desh Bandhu Gupta
Founder and Chairman
Lupin Limited
4 | Lupin Limited
CORP ORATE I NF ORMATI ON
DIRECTORS
Dr. Desh Bandhu Gupta, Chairman
Dr. Kamal K. Sharma, Managing Director
Mrs. M. D. Gupta,Executive Director
Ms. Vinita Gupta
Mr. Nilesh Gupta, Executive Director
Dr. Vijay Kelkar
Mr. Richard Zahn
Mr. R. A. Shah
Dr. K. U. Mada
Mr. Dileep C. Choksi, Additional Director
(w.e..OcIober2J,20!2)
Mr. D. K. Contractor
(upIoOcIober2J,20!2)
COMPANY SECRETARY & COMPLIANCE
OFFICER
Mr. R. V. Satam
AUDITORS
DeloiIIeHaskins&Sells
CharIeredAccounIanIs
AUDIT COMMITTEE
Dr. K. U. Mada,Chairman
Dr. Kamal K. Sharma
Mr. Dileep C. Choksi
INVESTORS GRIEVANCES COMMITTEE
Dr. Vijay Kelkar,Chairman
Dr. K. U. Mada
REMUNERATION COMMITTEE
Dr. K. U. Mada,Chairman
Mr. R. A. Shah
BANKERS
CenIral8ankolndia
8anko8aroda
SIaIe8ankolndia
CiIibankN.A.
TheHongkongandShanghai8anking
CorporaIionLimiIed
SIandardCharIered8ank
lClCl8ankLimiIed
KoIakMahindra8ankLimiIed
!PMorganChase8ank,N.A.
SENIOR MANAGEMENT TEAM
Chairman
Dr. Kamal K. Sharma
Managing Director
Ms. Vinita Gupta
Group President & CEO - Lupin
Pharmaceuticals Inc., USA
Mr. Nilesh Gupta
Group President & Executive Director
Mr. Shakti Chakraborty
Group President -
India Region Formulations & CIS
Mr. Vinod Dhawan
Group President -
AAMLA & Business Development
Dr. Rajender Kamboj
President - Novel Drug Discovery &
Development
Mr. Ramesh Swaminathan
President - Finance & Planning
Mr. Naresh Gupta
President - API & Global TB
Mr. Divakar Kaza
President - Human Resources
Mr. Alok Ghosh
President - Technical Operations
Dr. Cyrus Karkaria
President - Biotechnology
Mr. Paul McGarty
President - Lupin Pharmaceuticals Inc., USA
Dr. Sofia Mumtaz
President - IPMG
Mr. Sunil Makharia
Executive Vice President - Finance
Mr. Debabrata Chakravorty
Executive Vice President - Supply Planning &
Strategic Sourcing
Dr. Dhananjay Bakhle
Executive Vice President - Medical Research
Mr. Rajendra B. Chunodkar
Executive Vice President - Technical
Mr. R. S. Raghav
Executive Vice President - Marketing & Sales
Mr. Vilas S. Satpute
Executive Vice President -
API Manufacturing
Mr. Ganadish Kamath
Executive Vice President -
Corporate Quality Assurance
REGISTERED OFFICE
!59,C.S.T.Poad,Kalina,
SanIacruz(LasI),Mumbai400098.
Tel:9!2266402J2J
lax:9!2226528806
CORPORATE OFFICE
LaxmiTowers,8Wing,
8andraKurlaComplex,
8andra(LasI),
Mumbai40005!.
Tel:9!2266402222
lax:9!2266402!J0
www.lupinworld.com
E-mail
ino_lupinworld.com
KEY CONTACTS
ShamsherGorawara
HeadCorporaIeCommunicaIions
LupinLimiIed
Tel:9!9820JJ8555
Lmail:shamshergorawara_lupinpharma.com
PajivPillai
HeadlnvesIorPelaIions
LupinLimiIed
Tel:9!982055208J
Lmail:rajivpillai_lupinpharma.com
B OA RD OF DI RECTORS
AWA RDS 2 0 1 2 - 1 3
Dr. Desh Bandhu Gupta, Chairman
Dr. Kamal K. Sharma, Managing Director
Mrs. M. D. Gupta, Executive Director
Ms. Vinita Gupta
Mr. Nilesh Gupta, Executive Director
Dr. Vijay Kelkar
Mr. Richard Zahn
Mr. R. A. Shah
Dr. K. U. Mada
Mr. Dileep C. Choksi, Additional Director (w.e.f. October 23, 2012)
Mr. D. K. Contractor, (up to October 23, 2012)
The National Stock Exchange included Lupin in the
Standard & Poors CNX NIFTY Index
The Economic Times 500 Indias 10 Most Resilient
Companies 2012
Great Place to Work Best Companies to Work for,
2012, India
Forbes India, Business Leadership Awards, Top 5 CEOs
Private Sector, 2012, Dr. Kamal K. Sharma
The Inaugural Ernst & Young Family Business Award
2012, US, Ms. Vinita Gupta
Ernst & Young Entrepreneur of the Year

2012
Award winner in Maryland, Ms. Vinita Gupta
CNBC TV 18 Best Performing CFO in the Pharma &
Health Care sector, Mr. Ramesh Swaminathan
6 | Lupin Limited
F I NA NCI A L HI GHL I GHTS
EBITDA margin
(%)
F
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0
9
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1
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Business analysis Revenue and Profitability
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Exports
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API Formulation
Revenue composition
(%)
10%
25%
56%
9%
Domestic formulations
API
Advanced Markets
Formulations
Emerging Market
Formulations
Geographic break down
(% contribution)
F
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0
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Exports Emerging
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Net sales
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CAGR
25.7%
EBITDA
(` million)
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CAGR
32.6%
Net profit
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CAGR
27.2%
Profit before tax
(` million)
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Business critical investments Financial leverage
Shareholder value growth
Cumulative R&D spend
(` million)
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(` million)
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8th
5th
3rd
7th
Largest generics player globally
by market capitalisation
Largest and fastest growing
generics player in the US by
prescription
Largest Indian Pharmaceutical
company
Largest generics player in Japan
Earning per share
(`)
F
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CAGR
24.7%
Market capitalisation
(` million)
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CAGR
49.2%
Debt equity ratio
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2
8 | Lupin Limited
EXCEL L ENCE
Dr. Kamal K. Sharma
Managing Director
MANAGI NG DI RECTOR S LETTER
It has been another strong year for
us. A year, where we continued to
maintain and grow our leadership
positions in all markets of direct
operations. A year of heightened
activity where we launched new
products, expanded our product
pipelines and consolidated our
operations globally. This has not
only helped us create one of the most
differentiated, quality businesses
but also arguably one of the best
and most exciting companies in the
pharmaceutical industry globally.
Growth and Performance at Lupin
is a never - ending quest for
Excellence, engineered to deliver
value; value that has enabled 8 years
of sustained growth and leadership.
At Lupin, excellence is derived from
a culture that is engineered towards
creating value across the entire
organisation eco-system through
perceptible differentiation. We have
focused on three distinct elements of
business for creating a differentiated
paradigm products, processes
and people. Operational excellence
and incremental innovation are
common threads that run across our
entire fabric and help us translate
conceptual constructs into value -
enhancing outcomes. An approach,
that has not only made the Company
one of the most innovative from a
research and technical operations
standpoint, but also an employer
of choice. An Excellence ethic, that
has helped Lupin plug in some of
the best growth numbers in the
pharmaceutical world; a CAGR of
27.3% in Gross Sales, 33.9% in
EBITDA and 33.6% in Net Profits
for the last 8 Years. Sustained
performance, that has made the
Company the 8th largest generics
pharmaceutical company globally
by market capitalisation and
the 3rd largest Indian
pharmaceutical company.
Trends & Performance
Over the last 5 years, the global
pharmaceutical environment has
become increasingly volatile and
challenging due to pressures created
by drying research pipelines which has
led to hyper-competition, the blurring
of boundaries between erstwhile
innovator companies and generic
players as they rush to compete in
each others spaces. Higher input
costs, the high cost of bringing
products to the marketplace coupled
with gradual decline in realisations
is also affecting financial viability.
Increased regulatory rigor, discipline
therein and market diversity have
also led to increased complexity in
terms of business opportunities that
one chooses to address; the choice of
markets, the business and the product
mix therein.
Gross sales (` million)
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Net profit (` million)
F
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0
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F
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0
8
F
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7
F
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0
6
F
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1
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8
,
6
7
6
1
3
,
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4
2
Dear Shareholders,
10 | Lupin Limited
The momentum of over 5 years
of sustained growth is a reflection
of Lupins pinpointed focus on
consolidating and building on our
leadership credentials in our key
markets and continued expansion of
market share therein. I am pleased to
report that all our businesses continue
to unlock value on a sustained basis
with robust performance being
delivered by US & Europe, India, Japan
and South Africa.
In FY 2013, the Companys Net Sales
grew by 35.9% to ` 94,616 million
(USD 1.74 billion) up from ` 69,597
million the previous year. EBITDA
margins increased to ` 22,978 (USD
423 million) million from ` 14,591
million in FY 2012, an increase of
57.5%. Net Profit grew by 51.5% to
`13,142 million (USD 242 million)
as compared to ` 8,676 million in
FY 2013.
Advantage Lupin
Over the last decade, Lupin has
successfully ring-fenced its business by
creating competitive advantages which
have become distinctive differentiators.
We have done that by calibrating our
choice of markets; entry into new
geographies, new therapies, the business
and product mix; not to mention
a rigorous attention to input costs
in a never - ending quest for better
efficiencies.
largest global generics
player by revenue
13th
We have innovated with our research
programs in terms of the areas of
research, technology platforms and drug
delivery capabilities that we chose to
develop and the very nature of filings for
key markets. The creation of an advanced
biotechnology program and the expansion
of a truly global Novel Drug Discovery
and Development pipeline have added
another dimension to the Companys
readiness to reinforce sustainability in
the long-term. The capacity to invest in
incremental innovation and the tenacity
to remain invested for the long-term,
backed with the discipline to meet
regulatory rigor consistently has become
a key differentiator.
At Lupin, we have created and nurtured
a value driven, ever-evolving people
ecosystem. A business ecosystem that
is now excelling at every level serving
as an invaluable catalyst enabling it to
consistently outpace and outperform
the industry across all key markets. I
believe we are now entering a new orbit
of growth; from being a global branded
generics leader to fast emerging as a
specialty pharmaceutical major globally.
Sincerely,
Dr. Kamal K. Sharma
Managing Director
Lupin Limited
` 94,616
` 22,978
` 13,142
million in revenue
million EBITDA margins
million Net Profit
12 | Lupin Limited
L EA DERS HI P
Vinita Gupta
Group President & CEO, Lupin Pharmaceuticals Inc.
Lupins high growth performance
is a direct result of the Companys
consistent focus on the creation of a
high-value pipeline and its successful
commercialisation, backed up by a
seamless manufacturing and supply
chain operation.
The journey over the past 10 years has
been very exciting and rewarding. LPI
started from scratch 10 years ago and is
now over USD 700 million in revenues.
We have grown in scale, breadth and
depth. This past year, we focused
on building systems and processes,
expanding our management bandwidth
and most importantly maintaining our
entrepreneurial culture. We brought
important high quality, affordable
medicines to the market that fuelled
the growth of our business. With a
significant pipeline in hand, continued
investments to expand our technology
capabilities and aspiration to grow our
business through organic efforts and
acquisitions, we are just getting started.
US & Europe Formulation sales
contributed 42% to the Companys
overall consolidated revenues for
FY 2013. Formulations sales for US
& Europe grew by 47% to ` 40,051
million during FY 2013 up from
` 27,278 million in FY 2012. For the
fourth year running, Lupin remains the
5th largest and fastest growing top 5
generics player in the US (5.3% market
share by prescriptions, IMS Health
December 2012). The European
business grew by 19% during FY 2013.
United States
Headquartered in Baltimore, Maryland,
the Companys US subsidiary, Lupin
Pharmaceuticals, Inc. (LPI), is
dedicated to delivering high-quality,
branded and generics medicines
trusted by healthcare professionals
and patients across the US. LPI has
built strong relationships in the US
Retail channel with a solid reputation
as a reliable supplier of quality
generics. In addition, LPI continues to
develop and grow a meaningful brand
franchise amongst US Pediatricians
and Primary Care Physicians with a
170 strong specialised field sales force
promoting its entire product line.
Strong commercialisation capabilities
Lupins achievements in US and Europe continue to
fuel its rapid ascension to leadership position within
the global pharmaceutical industry. These markets
remain the major contributors to the Companys
global revenues and overall profitability.
US & EUROPE
5th
7th
47%
42%
USD 80
largest generics player in the
US (by prescriptions)
largest player by dispensed
prescriptions in the US
formulation sales growth in
the US and Europe
US & Europe contribution to
global revenues in FY 2013
billion value of market
opportunity being addressed
by Lupins generics pipeline
for US
14 | Lupin Limited
for the branded and the generics market
position LPI to take full advantage of
emerging opportunities arising out of
the Companys growth strategy built
around high quality niche products,
world-class research, intellectual
property, robust manufacturing and
nimble supply chain capabilities. The
Companys US revenues grew by 54%
to ` 36,830 million during FY 2013,
up from ` 23,930 million in FY 2012.
The Brands business contributed 21%
of total US sales whereas the Generics
business contributed 79% during
FY 2013.
The Company aims to strengthen its
branded portfolio with the launch of
additional products developed and filed
with the US FDA from its own pipeline
as well as through strategic brand
acquisitions.
US Generics Business
LPI remains the 5th largest generic
player in the US (by prescriptions) and
also the fastest growing generic pharma
player in the Top 5 for the fourth year
running, growing at 6.3% (IMS Health,
National Prescription Audit,
December - 2012).
Outlook
US healthcare spending at 17% of a
USD 15 trillion GDP is the second
highest in the world. US generics
account for 14% of total US spending,
making it the worlds second largest
generics market. Over the last decade,
the US government implemented
definitive steps to enhance healthcare
spending effectiveness. Through the
Patient Protection and Affordable Care
Act, the country intends to bring 30
million more Americans under health
insurance through the increased use of
generics. The result is that US generics
spending is expected to nearly double
by 2016 (to more than USD 80 billion
from ~USD 46 billion currently) as
per IMS estimates.
Over the last few years, LPI has built
one of the best generic products pipeline
for the US market addressing a market
opportunity valued at over USD 80
billion. Cumulative ANDA filings with
the US FDA stood at 176 with the
company having received 78 approvals
as of 31st March, 2013. This is in spite
of the fact that the Company withdrew
16 ANDAs during the year after re-
evaluating their business potential.
Dispensed prescriptions - US Industry - Unbranded Generics, MAT December 2012
MAT September 2012 MAT December 2012
Leading corporations Rank % Market share TRx mn % Market share % Growth
US industry 100% 3,137 100.0 7.2
1. Teva 1 15.6 498 15.9 2.0
2. Mylan Labs,Inc. 2 11.9 365 11.6 0.8
3. Actavis U.S (Watson) 3 7.4 290 9.3 3.4
4. Sandoz (Novartis) 4 6.3 187 6.0 -17.1
5. Lupin 5 5.3 165 5.3 9.3
F
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Formulation sales in the US
(` million)
CAGR
33.4%
F
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0
9
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1
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1
1
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1
2
F
Y

1
3
5
4
8
US Generics Revenue
(USD million)
3
6
1
3
0
8
2
2
0
1
9
9
LPI is best characterised by its ability
to achieve leading market share in
almost all of the products it has
launched. 24 out of the 46 generic
products marketed by the Company in
the US rank No. 1 by market share and
as many as 37 of these 46 are in the
Top 3 by market share (IMS Health
March 2013). We have focused
on increasing our market shares by
executing well, by making sure that
we are constantly engaged with our
trade partners and customers and
continuously strengthening our supply
chain by creating efficiencies that
ensure a cutting-edge response time.
During the year, the Company filed
21 ANDAs for the US market and
received approval for 14 ANDAs from
the US FDA. The Company has a
pipeline of 116 products (including
products approved but not launched)
that address a market opportunity of
close to USD 80 billion. Of these, 29
ANDAs are first-to-file opportunities
addressing a market size of close to
USD 15 billion. The Company has 12
exclusive first-to-file opportunities
addressing a market opportunity valued
at around USD 2 billion.
The US Generics business in FY 2013
can be best summarised as a year of
milestones. The Company surpassed
USD 500 million in revenues from
its Generics business for the first
time, clocking in growth of 70%.
New launches contributed 42% of the
US generics revenues. Key launches
included products like Ziprasidone
21%
24
42%
revenue contribution of
the US Bwranded business
in FY 2013
Lupins products ranked No. 1
by market share in the US
(out of a basket of 46)
revenues from new product
launches in FY 2013
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7
6
*
ANDA pipeline
1
7
3
1
4
8
1
2
7
9
0
* Company withdrew 16 ANDAs during the year after
re-evaluating their business potential
Goa
16 | Lupin Limited
and the generic for Tricor
. We
made further inroads into the Oral
Contraceptives (OC) segment in the
US by launching 4 OC products,
having received approvals for 7 OC
from the US FDA. The Company
successfully litigated against Shionogi
and re-launched its generic Fortamet

in the US market.
US Branded Business
LPI maintains a balanced approach to
the US market by participating in both
the Brand and the Generic market. In
FY 2013, LPI continued to expand the
Suprax
franchise with the launch of

Suprax
chewable tablets. Additional

line extensions of a more concentrated
suspension form and a capsule form
have been approved and planned for
launch in FY 2014.
During the year, the Company put in
place a unique set of strategies with
a focus on maintaining market share
for its brand Antara
(Fenofibrate
Capsules 43mg and 130mg) as one
of its competitors prepared to launch
a generic variant of the product in
February, 2013. Leveraging LPIs
capabilities, the Company has been
able to maintain a significant share
of the market with its brand and
authorised generic products.
LPIs strategy is to prudently invest
in its specialty sales force targeting
Pediatricians and select high-
prescribing Primary Care Physicians.
The Company aims to strengthen its
branded portfolio with the launch of
additional products developed and
filed with the US FDA from its own
pipeline as well as through strategic
brand acquisitions.
Europe
The EU finished dosage business
recorded Net Sales of ` 2,356 million
during FY 2013 as against ` 1,975
million in the previous year, a growth
of 19.3%. The Company continues to
focus on building its product offerings
in the EU market and forging deeper
MAT September 2012 MAT December 2012
Leading corporations Rank % Market share TRx mn % Market share % Growth
US Industry 100% 4,074 100.0 1.2
1. Teva 1 13.6 564 13.9 1.6
2. Mylan Labs,Inc. 2 9.0 369 9.1 0.9
3. Actavis U.S (Watson) 3 6.2 322 7.9 1.9
4. Novartis (Inc Sandoz) 4 6.1 252 6.2 -15.2
5. Endo Pharma Inc 5 4.1 172 4.2 5.7
6. Pflzer (Inc Greenstone) 6 4.5 170 4.2 -23.5
7. Lupin 7 4.0 166 4.1 6.3
Dispensed TRx US Industry - Total Industry, MAT December 2012 - Source: IMS Health, National Prescription Audit, December 2012
relationships with select partners in
the EU. The EU partnered business
saw a slew of new launches during
the year and grew by 20.4% during
FY 2013. The Company successfully
launched new products like Tramadol
+ Paracetamol tablets, Perindopril +
Indapamide tablets and Ketoprofen
tablets in the EU market through
partners. Existing products like
Levetiracetam tablets, Desloratidine
tablets and Trimetazidine tablets
clocked in healthy growth during
the year. The Company continued to
focus on building its pipeline in the
UK and German markets through
its own Direct to Market initiative.
The Company filed 10 marketing
authorisation applications during
the year and received approvals for
10 applications during the year. The
Company launched a total of 10 new
products in Europe during FY 2013.
Cumulative filings with European
authorities now stands at 53 with 38
approvals to date.
million in revenues
within 10 years
USD 700
Over
18 | Lupin Limited
PA S S I ON
Shakti Chakraborty
Group President India Region Formulations & CIS
Lupin brings to the Indian Pharmaceutical
Market (IPM) a distinctive differentiator
our Passion. At Lupin, this passion
has been reflected in our ability to
counter industry challenges with a go-
getting spirit; the ability to challenge a
regulated, hyper-competitive fragmented
market environment by providing our
customers and the common man with an
ever-widening product choice of quality,
affordable medicines.
The Drug Price Control Order and the
evolving regulatory framework continue
to pose challenges. The market continues
to become more fragmented, regionally
diverse and localised. Over the years, Lupin
has countered these challenges in the
Indian Pharmaceutical Market by
zContinuing to create new markets in
new therapy areas as opposed to having
a singular focus on just growing market
shares in existing market spaces
zA singular focus on recalibrating our
product mix by adding new products;
moving from acute to chronic therapy
segments
zFocusing on offering new innovative
products
zIn-licensing products and entering into
strategic alliances with leading global
players with the objective to widen our
product basket and address unmet needs
zConsistently focusing on creating and
developing a specialty product marketing
and sales force comprising of talented and
experienced professionals to cater to the
complex needs of niche market spaces;
reinforced by structured training inputs
zLeveraging reach and scale; the Company
has combined the benefits of scale (its
nationwide presence) with a short mind-
to-market cycle that makes it possible to
address local opportunities with speed and
effectiveness
The passion which we have nurtured and
grown, is reflected in the fact that the
Companys India formulations business
grew by 23%, clocking in revenues of
`23,840 million during FY 2013, as
compared to ` 19,374 million in FY 2012.
The business has grown at a CAGR of
20.2% over the last five years.
The Companys product and therapy
segment mix for the IPM coupled with
effective marketing has resulted in Lupin
emerging as not only a market leader
We are proud to be an Indian company and India is a
market of strategic focus. It remains Lupins 2nd largest
business by revenues, a market which is at the very heart
of the Companys growth plans.
I NDI A
2.8%
5,200
23%
25%
8
37
Lupins overall market share
specialty field force in the
Indian Pharmaceutical market
business growth over
FY 2012
contribution to consolidated
revenues in FY 2013
products which were first to be
introduced in India in the last
four years
products in-licensed in the last
four years
of the IPM (as per IMS TSA
MAT, March, 2013)
20 | Lupin Limited
but more importantly, one of the
fastest growing players in high growth
therapies like Cardiology, Central
Nervous System (CNS), Diabetology,
Anti-Asthma, Gynaecology,
Anti-Infective, Gastro Intestinal
and Oncology.
The Company demonstrated a
distinctive capability to emerge among
leading players in niche therapy areas
within a few years of entry. For instance,
the Company emerged as the third
largest player in Indias respiratory
(anti-asthma) segment even though it
entered the space less than five years
in diabetes even though it entered
this segment in 2008. The Company
entered the cardiology segment in 2003
and has within a decade emerged as the
third largest player in the segment too.
We entered the Nephrology segment in
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1
3
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,
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4
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9
,
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7
4
1
5
,
7
3
4
1
3
,
5
0
2
1
1
,
4
1
2
Domestic formulations (` million)
CVS
Anti-TB
Anti-Asthama
Anti Diabetic
Gastro Instestinal (GI)
CNS
Gynaecology
Others
Anti-
Biotics+Cephalosporins
Oral+Cephalosporin Inj
IRF therapeutic contribution (%)
2010 and have already emerged as
the third largest Indian player within
the space.
Over the last decade, the Company
has transitioned from a complete
dependence on acute therapies to
generating more than half of our
revenues (on a significantly enlarged
revenue base) from the higher value and
more frequently used chronic therapies.
10 Brands with sales of over
` 400 million
each with an average growth
of 27%
ago; it is today the fifth largest player
16%
15%
8%
5%
9%
11%
Proportion of revenues
derived from the segment
Acute segment Chronic segment
2012- 2013 37% 63%
2007-2008 56% 44%
2005-2006 69% 31%
Pinnacle Cardiology
The largest division within Lupins
India formulations business grew by
20% during FY 2013. In keeping with
its track record of launching first-in-
class products, Lupin expanded its
association with the American College
of Cardiology (ACC) by creating
training and accreditation programs
for its field force covering not only
inputs on the latest developments
in the Cardiology space but by also
ensuring that its marketing and sales
force receive the ACC Industry Training
Graduate certification from ACC.
Pinnacle Blue Eyes
The division continues to gain traction
in the ophthalmology market and is
building up a comprehensive product
portfolio. The division entered into
an exclusive collaborative knowledge-
sharing arrangement with the American
Academy of Ophthalmology to offer
online scientific content to Indian
Ophthalmologists.
Lupin Diabetic Care
It is estimated that by 2030, every
fifth diabetic in the world is likely
to be an Indian. The Lupin Diabetes
Care division was set up as a response
to this emerging reality five years
ago. Since then it has not only built
a sizeable product portfolio to fight
the disease but has also emerged as the
fourth largest player in the participated
market, growing by 25% in FY 2013.
Lupins Gluconorm continues to be
the Companys largest brand in the
segment. The Division continues to
manage the International Symposia on
Diabetes, a leading scientific forum.
Lupin Metabolics
This division addresses the Companys
business in metabolic diseases like
hypertension and obesity. Lupin
Metabolics continues to grow and is
poised to emerge as a leader in the
Indian Metabolics segment following
the introduction of new products in the
area of Endocrinology and Metabolic
care. The division is also responsible
for promoting and distributing Eli
Lillys Insulin range of products in the
Indian market.
Lupin CVN
Set up in FY 2010, Lupin CVN
is responsible for Lupins business
in the Nephrology and Urology
segments. The division has consistently
outperformed the market and trebled
sales in the last three years.
Lupin
The Lupin division continued to
lead the countrys Anti-Tuberculosis
segment with a 44.7% market share.
Lupins Anti-TB business grew 5.3%
in FY 2013. Lupin takes pride and
responsibility in its role as a leader
in the Anti-TB space, an area of the
highest national priority.
Lupins Gynaecology business was
ranked third in the participated
market of IVF+Gynaec portfolio.
Therapy Segments & Key Divisions
In the last few years, the Company has
introduced 37 in-licensed products,
of which eight were the first to be
introduced in India. During FY 2013,
the Company launched four in-licensed
products.
Going ahead, the Company intends
to emerge as a Top 5 specialty
pharmaceutical powerhouse within the
Indian Pharmaceutical Market.
Lupin Gynaecology
22 | Lupin Limited
The division offers a wide basket of
womens healthcare products including
an Obstetrics and Gynaecology
range, IVF/Anti-Infertility products
and Nutrition product preparations.
The divisions alliance with the
Royal College of Obstetrics and
Gynaecology continues to offer Indian
Gynaecologists and Obstetricians
access to the latest medical journals and
scientific information.
Respira
The Lupin Respira division covers the
Companys presence across the Asthma,
Allergy, COPD and Respiratory Tract
Infections segments. The division has
sustained overall market share growth
and growth in its leading brands. Lupin
continued to be ranked third in the
TSA MAT 2013). Lupin collaborated
with the American College of Chest
Physicians to enhance awareness in
respiratory disease management through
symposia and workshops conducted
across the country.
Endeavour
Lupins Endeavour division is focused
on the Anti-Infective, Gastroenterology
Maxter
during FY 2013, a result of its focus
on introducing high-end injectables
and other life-saving medicines. Lupin
Maxter continues to partner with the
Infectious Disease Society of America,
one of the worlds leading societies in
the Intensive and Critical Care
segment to offer Indian doctors
with the latest scientific breakthroughs
and journals.
Lupin Mindvision
In 2007, Lupin entered the area
of Neuropsychiatry by setting up
Lupin Mindvision. Lupin is ranked
8th in the CNS segment, having
registered prescription growth of 19%
in Neurology (ORG ESPRIT Rx
data MAT March 2013). Cognistar
(Cerebroprotein Hydrolysate) was one
management of stroke, traumatic brain
injury and dementia. Cognistar sales
crossed ` 200 million in just 18 months
and was rated as the best launch in the
CNS segment within the IPM.
Lupin Ikonic
The World Health Organisation has
indicated a rise in the incidence of
neurological and psychiatric disorders
in India owing to increased stress,
sedentary lifestyle and chronic disorders
(diabetes and cardiovascular). Lupin
launched one more CNS division
named Lupin Ikonic in FY 2013 to
progressively invest in research and
development and in-licensing in newer
therapies like Neurological Disorders.
Lupin Ikonic will cater to chronic
disorders like epilepsy, migraine, brain
trauma, neuropathic pain, anxiety
and stroke.
Indian Anti-Asthma market (IMS
and Osteoarthritis businesses and acute
therapy areas like Antibiotics and Pain
Management. The Endeavour business
the participated market, whic grew
grew by 23% in FY 2013, outperforming
by 7% (IMS TSA MAT March 2013).
The Gastroenterology segment grew
26% as against the participated
Lupins Critical Care division grew 21%
grown 16% in FY 2013 as against
MAT March 2013). The division
the market growth of 11% (IMS TSA
of the key launches of FY 2012 for the
market growth of 13% (IMS TSA
March 2013).
Specialty field
force in the Indian
Pharmaceutical market
5,200
Lupins growth versus the Indian Pharmaceutical Market (ORG IMS, March 2013)
Therapeutic segment Lupin growth % Market growth %
(IMS)
CVS
21.0% 12.2%
Anti-Infective 17.8% 7.4%
Respiratory 4.4%
Anti-Diabetic 47.7%* 18.6%
Gastrointestinal+Hepatoprotective 27.7% 12.8%
Neuro/Central Nervous System (CNS) 24.6% 11.0%
Pain/Analgesic 29.1% 8.6%
Nutraceutical 25.6% 10.7%
Gynaecology 6.7%
Anti-TB 2.5%
*Growth of Anti-diabetes portfolio is inclusive of Huminsulin
13.2%
13.8%
5.3%
24 | Lupin Limited
DEP TH
Vinod Dhawan
Group President AAMLA and Business Development
Today, the ROW business spans
markets across Asia Pacific, Africa,
Middle-East and Latin America with
leadership and growing business
presence in key markets such as Japan,
Australia, South Africa and
the Philippines.
IMS Health predicts that these markets
will see their pharmaceutical spending
rise from USD 154 billion in 2010
to over USD 300 billion by 2015
registering even more growth than the
advanced markets of US and Europe.
Today, the Company is consolidating
its presence to build depth within these
markets by drawing on and leveraging
our global research, manufacturing and
supply chain strengths. By depth, we
mean building prudent, well-planned,
localised strategies that would not only
extend Lupins presence in these markets
but ensure long-term growth by
zGrowing and building our existing
markets. Lupin has enjoyed a good
track record of building leadership
credentials in markets like Japan and
South Africa and turning them into
growth assets that increase and
provide stability
zBalancing our global capabilities and
calibrating them to address the right
opportunity. Focusing on markets,
therapies and products which offer
the greatest opportunities to build
long-term competitiveness and
superior realisations
zBuilding and implementing
development and marketing plans
that help identify and address market-
specific demands
zImproving operational performance
and cost effectiveness
This focus on building depth has
resulted in the Companys ROW
business clocking in a growth of 45%,
Lupins Rest of The World (ROW) business is not
only the 3rd largest contributor to the Companys
revenues globally but also the youngest and the
fastest growing business within the Company.
REST OF THE WORLD
7
45%
23%
7th
5th
690
years of uninterrupted
business growth
business growth over
FY 2012
contribution to overall
company revenues in
FY 2013
largest generics player
in Japan
largest generics player
in South Africa
products filed for the
ROW markets
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4
ROW sales (` million)
CAGR
38.3%
26 | Lupin Limited
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5
5
7
4
9
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6
9
0
Finished dosages filings (Rest of World)
registering revenues of ` 21,424
million during FY 2013.
The business contributed 23% to
Lupins total consolidated revenues.
We continue to ramp up filings and
build the pipeline across key and new
markets within the ROW business.
With 16 new product filings, the
cumulative filings for ROW markets
now stand at 690 product applications
a USD 100 billion opportunity over
the next 5 years.
JAPAN
During FY 2013, Lupin maintained its
upward growth trajectory, clocking in
sales of JPY 19,785 million, growing
by 39% over the previous year. Lupin,
today is the 7th largest generic player
in the Japanese market and has over
the years, built a strong presence
in the Neurology, Cardiovascular,
Gastroenterology, Respiratory and
Injectables segments.
During the year, the Company also
consolidated and focused on integrating
Irom Pharmaceutical Co., Ltd (IP),
a niche injectables company that
it had acquired during FY 2012.
IP has a significant presence in the
DPC hospital segment within the
Japanese pharmaceutical market. IP is
in the business of manufacturing and
marketing injectable products, mainly
ampoules and bags. The IP marketing
and sales team covers roughly about 80%
of the DPC hospitals in the country.
Outlook
The Japanese pharmaceutical market
is the second largest pharmaceutical
market in the world and is valued at
over USD 110 billion. The Japanese
generics pharmaceutical industry has
witnessed a lot of changes over the last
7 years; developments like incentives
announced by government to promote
generics, increased competition from
international generics players and entry
of innovator pharma companies into the
Japanese generics space, which led to not
only enhawnced opportunities but also
heightened activity and competition.
At the end of March 2013, Japanese
generics market penetration was
at 26.5%, lower than the Japanese
governments stated target of achieving
a 30% generics penetration by FY 2012.
In March, the Japanese government set
a new target of 34.3% generics market
penetration by the year 2017, which
translates into an additional 30-35%
volumes getting genericised over the
next 4-5 years. In addition, patents for
molecules worth USD 14-16 billion
are likely to expire by 2017. Both these
opportunities translate into significant
market opportunities for Lupin.
The Company expects to address these
opportunities by investing in creating
a robust pipeline of niche products and
back-ending manufacturing of a few key
products to its plants in India. Lupin
expects to file 15 new products in Japan
over the next two years. During the year,
Lupin received three product approvals of
its Goa plant from the Japanese Health
Ministry and the commercialisation of
these products has already commenced.
Lupin also commercialised two APIs in
Japan during the year and expects to file
close to ten DMFs for the market in the
next two years.
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5
Japan sales ( million) Key Markets - ROW (%)
6!%
!5%
6%
4%
!4%
Japan South Africa Australia
Philippines Others
Kyowa
zKyowa reported sales of JPY 13,984
million, growing by 13% during the year
zThe Company has been consistently
expanding its product portfolio and
launched 11 new products including 4
CNS products. Kyowa has a portfolio
of 350+ products
zThe Company set up a dedicated field
force to target CNS hospitals and clinics
zDedicated key account managers and
sales teams to target wholesalers and
pharmacies
zCommissioned a new packaging
facility at its existing manufacturing
location to meet growing market demand
Irom Pharmaceuticals
zIP posted Sales of JPY 5,833 million
for the year ended March 31, 2013
zAdded Oncology Injectables to its
portfolio
zStrengthened and expanded its sales
and marketing team
SOUTH AFRICA
The South African pharmaceutical
market is valued at about USD 3.5
billion. The South African generic
market grew by 7% in value terms
and 5% by volumes during FY 2013.
Lupins South African subsidiary
Pharma Dynamics (PD) recorded
revenues of ZAR 499 million (` 3,210
million), registering growth of 26%
over the previous year.
As per IMS reports, PD remains the
5th largest generic company and the
14th largest pharmaceutical company
in the South African market. Pharma
Dynamics emerged as the number one
company in the Cardiovascular segment
overall. PD maintained its leadership
in the prescription segment and has
8 brands that are market leaders and
another 12 which are amongst the top
3 brands in their respective segments.
PD also focused on growing exports
to the larger African markets and
continues to make new registrations in
neighbouring markets; 50 products are
currently under registration.
During the year, the company launched
10 new products and remains focused
on building and growing into the
CNS & OTC segments within
the South African market. Lupins
planned efforts to move production
to its manufacturing facilities in India
continues with an additional 4 products
being filed by the Company.
AUSTRALIA
The total Australian Pharmaceutical
market is valued at USD 13.5 billion.
The Generics market is estimated
to be USD 2.2 billion, growing at
approximately 8%. Lupin operates
in the Australian market through its
subsidiary Generic Health Pty Ltd.
Over the years, Lupin has focused
on the creation of a robust product
portfolio, increasing market depth and
reach, entering new therapy segments
and acquiring brands to make inroads
into the Australian market. These
strategic initiatives enabled Generic
Health to record revenues of
AUD 24 million (` 1,367 million)
during FY 2013, clocking in a growth
when Generic Health turned EBITDA-
positive. During the year, Lupin
increased its stake in Generic Health
to 91.04%.
PHILIPPINES
The Philippines pharma market is
valued at USD 3.3 billion and grew
by 4.6% for FY 2013 (IMS Health).
Lupins Philippines subsidiary
Multicare Pharmaceuticals (Multicare)
continues to outpace the market,
having grown 30%, clocking in
revenues of Php 659 million (` 859
million) during FY 2013 as compared
to Php 597 million (` 663 million) in
the last fiscal.
Building depth
The focus on the ROW markets
is to build depth to leverage our
research and IP strengths, use our
manufacturing muscle, build strategic
alliances and make the right inorganic
moves to increase our presence and
participation in these markets. Lupin
has also actively sought in-licensing
arrangements and strategic partnerships
to enter new segments and grow in
these markets.
Lupin continues its efforts to make
inroads into the Latin American market.
In addition, the Company entered and
initiated business in Taiwan during
FY 2013. The Company remains
committed to further growing its
presence in these markets and building
depth; a large part of the future growth
will come from these markets.
of 106% over the previous year.
in Australia as it was also the first year
FY 2013 was a hallmark year for Lupin
28 | Lupin Limited
EF F I CI ENCY
Naresh Gupta
President API & Global TB
The global API market continues to
grow and is currently valued at over
USD 110 billion. Patent expiries in
advanced markets like the US and
Europe, growth emerging markets and
demand for new bio-generic drugs are
boosting the growth of the global
API industry.
Lupin brings to its API business a
distinctive focus. Right from the
1980s, the Company recognised that
there were two ways of growing the
API business: manufacture a large API
product basket, or pick a handful of
promising APIs in select therapeutic
categories and grow them over the
long-term. Lupin consciously chose
the latter option and focused on not
only building competencies and adding
scale in those segments but more
importantly, building efficiencies that
would make it the undisputed leader in
these products of choice. Operational
efficiencies built not only with a view
to protect market share and improve
margins but also to add scale to
forge better synergies with our global
formulations business. Efficiencies that
have enabled us to emerge as one of the
most vertically integrated global generic
formulations majors.
This focus has ensured that Lupin
remains the global leader in therapeutic
segments such as Cephalosporins,
CVS and the Anti-TB space for more
than a decade. The Company remains
the undisputed No. 1 globally in
Anti-TB products such as Rifampicin,
Pyrazinamide and Ethambutol, and
Cephalosporins such as Cephalexin and
Cefaclor and their intermediates.
FY 2013 was a record year for the
Companys API business. The business
clocked in revenues of `9,498 million
in FY 2013. We service some the
leading pharmaceutical companies in
the world; clients who have stayed
with us for over a decade which is
a testament to the quality of our
products and the depth of our
relationships. We continue to add more
companies to our growing customer
list and have also made rapid inroads
into new markets like Latin America,
Russia and other East European
countries. Add to this, a deeper dive
into existing markets like US & Europe
Active pharmaceutical ingredients (APIs) are the
foundation of the pharmaceutical industry and the
backbone of Lupins formulations business.
API AND GLOBAL TB
No. 1
40%
10%
in Anti-TB and Cephalosporins
segments globally
90%
captive consumption - APIs
growth in Institutional
business for Anti-TB
in FY 2013
contribution to global revenues
in FY 2013
30 | Lupin Limited
5 API
facilities approved by
US FDA
All
and the API business are slated to be
a sustainable growth opportunities for
the Company.
The Company continues to grow its
value-added finished formulation
business, the Principal-to-Principal
(P2P) business. Lupins P2P business
leverages our rich expertise in API
research and formulation development.
The Company has commissioned a
fully integrated state-of-the-art API
research, formulation development
and manufacturing facility and has
successfully rolled-out over 10 unique
first-to-market products in India. In
FY 2013, the GTB + P2P business
grew by 49%.
The Company also consolidated its
position as one of the leading suppliers
of Anti-TB products to the World
Health Organisations (WHOs)
Global Drug Facility. Seven of the
companys finished formulations and
three Anti-TB APIs were pre-qualified
by the WHO during FY 2013. Lupin is
the only company to have both its APIs
and formulations for TB products pre-
qualified by the WHO globally. Lupins
institutional Anti-TB business grew by
40% during FY 2013. The Company
stands committed to be a responsible
partner in managing the prevention
and treatment of tuberculosis in close
collaboration with various healthcare
institutions.
Anti TB Family Cardio Vascular
Ceps Others
API therapeutic contribution
22%
22%
4%
52%
32 | Lupin Limited
DI F F ERENTI ATI ON
Nilesh Gupta
Group President & Executive Director
A sturdy foundation shoulders towering
growth. At Lupin, our Research &
Development program has been the key
to our sustained growth over the past
ten years; growth that has made us one
of the most exciting research driven
pharmaceutical companies globally; a
hotbed of differentiation and innovation.
In looking back at our research efforts,
what stands out clearly is that we have
always looked beyond the obvious. We
have identified opportunities early
on and turned them into distinctive
differentiated growth drivers, whether it
was in the early choices that we made of
developing complex APIs or be it in the
very nature of our product filings for
both advanced and emerging markets;
to the therapies that we sought
to address; to the brave choice we
made in overhauling and expanding
our drug discovery pipeline with
meaningful targets.
Today, we stand differentiated. The
focus that we have built over the past
ten years has enabled the Company to
successfully adapt to, and understand
an ever-changing complex intellectual
property environment as well as market
conditions, helping us proactively
identify new products, technologies and
therapy areas that the Company should
get into.
Today we are building the future by
strengthening our research foundation
through prudent investments that
position us at the cutting-edge of
technology, helping us deliver complex
products that very few in the world can.
Headquartered at the state-of-the-art
Lupin Research Park in Pune, India, the
Companys research program is home to
over 1,400 scientists. The Companys
global research operations are spread
over multiple research facilities in India
and Japan.
During FY 2013, the Company invested
7.5% of its net sales in Research &
Development and related spends,
amounting to ` 7,098 million. FY 2013
was a record year in terms of progress
made all around, be it our pace of filing
DMFs (Drug Master Files) and ANDAs
(Abbreviated New Drug Applications),
progress in our drug discovery and
development program, milestones in our
Differentiation is the heart of our research efforts
at Lupin. We have created a truly unique world-class
research program, designed to ensure a sustainable
pipeline of high-value opportunities to maximise
growth.
RESEARCH AND DEVELOPMENT
7.5%
R&D expenditure as a
percentage of Net Sales
29
first-to-file products
1,181
cumulative patents filed
as on March 31, 2013
` 27,775
million cumulative R&D spend
in the last 6 years
10
pipeline of biosimilar products
10
pipeline of NDDD / NCE
programs in various phases of
drug discovery & development
34 | Lupin Limited
drug delivery program and approvals in
our biotechnology program.
Highlights, FY 2013
zFiled 15 DMFs and 21 ANDAs
in the US; received approvals for 16
ANDAs including 2 NDAs (New
Drug Applications) during FY
2013. The Company also filed 10
MAAs (Marketing Authorisation
Applications) with European
Authorities, including nine DCPs
(Decentralised Procedure Applications)
zFiled two exclusive first-to-files
for the generic version of Apriso

and Viread 150mg, 200mg & 250mg
strengths
zReceived initial project milestones

payments aggregating over USD 6.5
million for two drug delivery products
zCompleted Phase-I studies in Europe
for a program in the CNS area, which
is being advanced to Phase II clinical
trial now
zLupins biotechnology group received
its first marketing authorisation for
an oncology product following the
successful completion of a Phase III
clinical trial in India
Lupins research and development
programs cover the following
disciplines:
zGenerics Research
Process Research
Formulations Research
zDrug Delivery Systems
zNovel Drug Discovery and
Development (NDDD)
zBiotechnology Research
GENERICS RESEARCH AND
DEVELOPMENT
Lupins Generic products R&D
Program is focused on developing
APIs and pharmaceutical products for
the US, European, Japanese and other
advanced markets. It also focuses on
developing differentiated products for
emerging markets.
API PROCESS RESEARCH
API Process research capabilities are a
vital component of the business strategy
that provides a sustainable, long-term
competitive advantage. The program
supports the companys generic research
program by developing non-infringing
and cost competitive APIs.
Highlights, FY 2013
zIn FY 2013, the Company filed 15
US DMFs taking the cumulative total
to 138 DMF filings. The Company also
filed 5 EDMFs, 3 COSs, 2 Australia
DMFs and 1 Japan DMF during the year
zDevelopment of specialised and
complex APIs like Prostaglandins
and a new class of Anti-Retro Virals
meant for the US, EU, Japan and other
advanced markets
PHARMACEUTICAL
RESEARCH
FY 2013 was a landmark year for
the Pharmaceutical Research Group
Diploma Doctorate
MBBS Post Graduation
Graduation
R&D Scientific pool
2%
7%
5%
1%
85%
F
Y

0
9
F
Y

1
0
F
Y

1
1
F
Y

1
2
F
Y

1
3
5
,
9
4
0
5
,
3
0
1
4
,
1
1
9
2
,
6
6
9
7
,
7
0
8
R&D Trends (` million)
API Process Research
Pharmaceutical Research
Biotechnology Research
Drug Delivery Systems
Intellectual Property Management
Novel Drug Discovery and
Development
Lupin Bio-research Centre
Lupin R&D
as it continued in its single-minded
focus to create a meaningful pipeline
of differentiated products for both
advanced and emerging markets.
The group focuses on working on
difficult to develop products, first
to file products and differentiated
therapy areas. In the past five years,
the group has added therapy areas like
Oral Contraceptives, Ophthalmics,
Inhalation (MDIs, DPIs and Nasal
Sprays) and Dermatology. The Group
ensures that its filings are in line with
all global regulatory requirements and
one of the key initiatives in FY 2013
was adopting processes and procedures
in line with the US FDAs Quality By
Design (QBD) requirements.
Highlights, FY 2013
zFiled 21 ANDAs with the
US FDA and 10 European Union
applications
zThe cumulative number of ANDA
filings with the US FDA now stands at
176, with 78 approvals received to date.
This is in spite of the fact that the
Company withdrew 16 ANDAs
during the year after re-evaluating
their business potential
zCumulative first-to-files
opportunities now stand at 29
zTotal cumulative filings within the
European Union stands at 53, with 38
approvals received so far
zRamped up filings for key markets
like Japan, Australia, India, South Africa
and other emerging markets
DRUG DELIVERY SYSTEMS
RESEARCH
Lupins Drug Delivery program focuses
on creating and leveraging technologies
that provide clinical advantage and
patient convenience. The Company has
not only successfully out-licensed its
drug delivery technologies and platforms
but also leveraged them to provide
significant product life-cycle advantages
to build a differentiated pipeline of
branded products.
Highlights, FY 2013
zThe team hit initial project
milestones resulting in the Company
receiving payments of over USD 6.5
million for two products being jointly
developed with Medicis Pharmaceutical
Corporation. These projects continue
to be on track for further development
zThe Company filed two 505(b)(2)
products in FY 2013 which will help it
further its branded offerings in the US
ANALYTICAL RESEARCH
The Analytical Research Group is
responsible for ensuring all processes
and products transferred to Lupins
global manufacturing operations meet
regulatory guidelines. The group is
responsible for the development and
validation of the right testing methods
and systems and ensuring that all
development and documentation is
in line with regulatory expectations.
The Companys Analytical research
facility is fully automated and equipped
with state-of-the-art technology and
instrumentation needed to support
a top-notch global research program,
for example, equipment like Powder
X-ray Diffraction, Solid State NMR
and Differential Scanning Calorimetry
to study physical properties such as
polymorphism and the latest LC/MS-
MS systems and automated preparative
HPLCs for the isolation/synthesis and
characterisation of impurities in APIs
and drug products.
LUPIN BIORESEARCH
CENTER
The Lupin Bioresearch Center (LBC)
located in Pune, India is responsible for
conducting bioequivalence studies for
Lupins generic products and branded
formulations. LBC also manages out-
sourced Bioequivalence studies, clinical
end-point studies as well as studies for
the Companys drug delivery program.
The center has both Clinical and
Bioanalytical capabilities and houses
2 clinics, a bioanalytical lab with 12
state-of-the-art LC/MS-MS systems
and its own clinical chemistry lab which
is accredited by National Accreditation
Board of Laboratories (NABL).
F
Y

0
9
F
Y

1
0
F
Y

1
1
F
Y

1
2
F
Y

1
3
1
2
3
1
1
1
1
3
8
Cumulative DMF Filings
8
5
1
0
4
F
Y

0
9
F
Y

1
0
F
Y

1
1
F
Y

1
2
F
Y

1
3
1
4
8
1
2
7
9
0
1
7
6
*
Cumulative ANDA Filings
1
7
3
* Company withdrew 16 ANDAs during the year after
re-evaluating their business potential
36 | Lupin Limited
Highlights, FY 2013
zThe team completed 19 full studies
during the year under review, taking the
cumulative tally to 83 full studies
zIn FY 2013, LBC was inspected and
studies were approved by the French
regulatory authorities (ANSM) and
the US FDA for both Bioanalytical and
Clinical areas
INTELLECTUAL PROPERTY
MANAGEMENT
At the very core of Lupins Research is
the Companys Intellectual Property
Management Group (IPMG) which
is not only responsible for its global
product pipeline but also creates and
manages a high-value patent portfolio
that protects our business, research
and technology assets. Lupins IPMG
has built one of the best track records
within the global generic pharmaceutical
industry for wins when it comes to
successfully litigating and protecting
Lupins filings in key markets.
The IP group played a pivotal role in
the US launch of the generic version
of Fortamet
tablets (Metformin
Hydrochloride XR) in September
2011. In December, 2011 Shionogis
request for a preliminary injunction
was granted and prevented Lupin from
supplying additional quantities. A win
at the US Court of Appeals for the
Federal Circuit resulted in Lupin
re-launching the product in April 2012.
Highlights, FY 2013
zThe cumulative first to file products
now stands at 29
zDuring FY 2013, Lupin had 2
exclusive first-to-files for the generic
versions of Apriso
and Viread 150mg,

200mg & 250mg strengths
. The
Company also believes that it would
have 4 non-exclusive first to files
for the generic versions of Toviaz
,
Savella
, Uloric
and Banzel
. Based on
IMS MAT Mar 2013 data, the Brand
Sales for these collective 6 first-to-file
stands at USD 677 million
zLupin successfully launched generic
versions of Combivir
, Tricor
,
Seasonale
and Diovan-HCT
zDuring the year, the Company settled

7 pending litigations with various
global pharmaceutical companies
zThe Company had three patent wins
in FY 2013. In Bayer vs. Lupin on
Yasmin and Yaz at the Federal Circuit
and in Teva vs Lupin on Seasonique at
the District Court
During FY 2013, the Company filed
157 new patents, taking the cumulative
total to 1181 patents filed to date. This
included 60 Formulation patents, 41
API/Process patents, 6 Biotech, and 47
NCE patents. The Company received
approvals for 8 Formulation patents, 10
API patents and 2 NCE patents.
NOVEL DRUG DISCOVERY
AND DEVELOPMENT
Long-term, one of the Companys
biggest differentiators will be its Novel
Drug Discovery and Development
(NDDD) program. The Program
focuses on the discovery, development
and commercialisation of new drugs
that address disease areas with
significantly unmet medical need.
Patents filed
1181
API/Process
435
NCE
328
Formulations
409
Others
9
Lupins NDDD efforts are directed
towards identifying and developing new
therapies for disease areas that include
metabolic/endocrine disorders, pain
and inflammation, autoimmune
diseases, CNS disorders, cancer and
infectious diseases.
Scientists at NDDD have been
able to create a portfolio of novel
compounds that are moving through
a robust pipeline from discovery to
development. This steady movement
will ensure that at least one compound
enters the clinical phase in terms of
first-in-human studies each year.
Lupin has adopted a Quick-win,
fail-fast cost-efficient development
approach, in which novel compounds are
filtered at every stage before entering
development and differentiated by
efficacy with a focus on enhanced safety.
Highlights, FY 2013
zSuccessfully completed Phase I
studies in Europe for a program in the
CNS area, which is being advanced to
Phase II clinical trials in Europe now
zCandidates from two programs in the
area of endocrine disorders and cancer
will enter clinical development in
FY 2014
zSix other programs in various
stages of discovery across different
therapy areas
zStrong intellectual property creation
and management strategy in place, with
a total of over 80 patent applications
filed to date
LUPIN BIOTECHNOLOGY
The Lupin Biotechnology Research
Group was established 5 years ago
with a vision to provide affordable,
high quality biopharmaceuticals with
a focus on biosimilars. In a short span
of 5 years, Lupin Biotech scientists
have created and developed a basket
of 10 biosimilars, which are now
in various stages of development. 8
of these are potential blockbusters
addressing diverse and niche
therapeutic indications like Oncology,
Inflammation, Antivirals, Osteoporosis
and Rheumatoid arthritis.
Highlights, FY 2013
zLupin Biotech received marketing
authorisation for its first oncology
product following the successful
completion of its multi-centric, Phase
III Clinical Trial in India
zAnother long-acting oncology
product is close to receiving marketing
authorisation and has demonstrated
excellent biosimilarity in Phase III
Clinical Trials in India
z5 biosimilar products, including a
basket of Blockbuster Monoclonal
Antibodies and therapeutic
Recombinant Proteins are in advanced
stages of development, having
successfully completed pre-clinical
studies
z3 process patents have been filed for
2 of these products
The product development process
adopted in Lupins biosimilar products
conforms to ICH and biosimilar
guidelines issued by the Indian
regulatory bodies and also in keeping
with global regulatory requirements.
The products have been designed
with proprietary expression systems,
innovative processes and novel
formulations, encompassing 15 patents
filed and 23 publications so far. Novel
formulations have been successfully
developed for three of the products,
thus providing a competitive advantage.
Lupin Biotech teams efforts position
the Company well in the lucrative but
challenging global Biosimilars space.
Lupin Research Park, Pune
38 | Lupin Limited
COMP L I A NCE
Alok Ghosh
President Technical Operations
In a business marked by rapid growth,
increasing complexity and an expanding
global footprint, success is not only
derived from ones ability to deliver
quality products consistently but
by ensuring that the Company is
delivering in line with ever-evolving
regulatory and quality standards.
This deep compliance discipline is
what drives our global manufacturing
operations and supply chain; right from
the markets we choose to serve, to the
products we develop and manufacture;
and how we supply them.
Lupins global manufacturing
operations are spread across India and
Japan. The Company has 12 world-
class facilities (ten in India and two in
Japan) manufacturing and supplying
APIs and formulations approved by
leading pharmaceutical regulatory
authorities like the US FDA, World
Health Organisation, MHRA (UK),
TGA (Australia), MHLW (Japan),
ANVISA (Brazil) and MCC (South
Africa). These world-class facilities
embody a culture of continuous
improvement to deliver complex
products with optimum efficiency.
With a focus on maintaining the right
efficiencies, Lupin has continued on
its quest for manufacturing excellence,
focusing on cost reduction using
principles of six sigma and lean
manufacturing.
We believe Quality and Regulatory
Compliance not only have to be
embedded into the product but have
to be built into people, systems, and
processes through a systematic process
of continuous training and knowledge
sharing. The Company today has
over 700 Global Corporate Quality
Assurance professionals spread across
all manufacturing locations engaged in
developing and implementing policies
that ensure quality and compliance with
global regulatory standards.
Consistency in meeting customer
expectations and meeting regulatory
quality and compliance norms are
the true enablers and the critical
differentiator that has made Lupin the
global generic powerhouse it is today.
At Lupin, we believe that there are no shortcuts to
Quality and constant compliance is the only way to
build a global manufacturing operation; the only
way that a company can do meaningful business in
any market within the pharmaceutical world.
MANUFACTURI NG, SUPPLY CHAI N AND QUALI TY
12
5,000
No. 1
` 25,480
manufacturing facilities
across India & Japan
lupinytts engaged in
manufacturing and quality
million cumulative capital
expenditure over the last
6 years
within US generics players
with 99.6% fill rates
40 | Lupin Limited
The Road Ahead
As we aspire to further accelerate and
scale higher orbits of growth, we are
conscious of the fact that product
and market complexity will increase
exponentially. We are aware that the
Company needs to stay ahead of
the curve by continuously investing
in new technology, automation and
systems to create better efficiencies
that enhance profitability. We are also
investing prudently in expanding our
manufacturing operations by setting up
new facilities and plants to meet future
demand. As a result, the Companys
capital expenditure increased to ` 4,871
million for FY 2013.
We actively engage with leading
consulting organisations to build a
manufacturing operation second to
none and continuously sharpen our
compliance ethic. As we aspire to
further accelerate our growth and in
order to ensure that we consistently
meet our customer expectations, we have
realised that we must invest in building
a future-ready, nimble and strong supply
chain. With that objective in mind, the
Company launched its Supply Chain
Operations Re-Engineering (SCORE)
program covering its manufacturing
facilities, supply chain and all markets
during FY 2013.
Highlights, FY 2013
Operations
zReceived Platinum (for our Goa
finished product facility) and Gold
(for our Tarapur API facility) awards
at the India Manufacturing Excellence
Awards (IMEA) instituted by The
Economic Times in partnership with
Frost and Sullivan for manufacturing
excellence
zSuccessful audits of all facilities by
global regulatory authorities without
any critical or major observations
zFocused on optimising our
manufacturing costs and enhancing
productivity with the rollout of the
DISHA program (based on Lean and
Six Sigma principles)
zExpanded / commissioned new
plants in our Tarapur, Dabhasha and
Indore facilities
zSet up a new formulations
manufacturing facility in Nagpur to
service advanced markets like the US
and Europe. The plant is expected to be
operational by Quarter III, FY 2014
zLaunched a dedicated global program
christened SCORE (Supply Chain
Operations Re-Engineering) to
streamline processes that strengthen
our global supply chain and develop a
cost-optimised supply chain
Cumulative Capital Expenditure
(` million)
F
Y

1
3
2
5
,
4
8
0
F
Y

1
2
2
0
,
6
0
9
F
Y

1
1
1
5
,
0
9
5
F
Y

1
0
1
0
,
2
8
7
F
Y

0
8
2
,
3
6
5
F
Y

0
9
5
,
8
5
4
Indore
Goa
Mandideep
Sanda, Japan
42 | Lupin Limited
P EOP L E
Divakar Kaza
President Human Resources
Being a great workplace is not an
isolated event. Neither is it the
beginning or the end of a good
HR story. It is in fact a journey, a
continuous quest for creating an
organisation that thrives on values
of innovation, people development,
continuous improvement and
entrepreneurship. At Lupin, every
day brings with it new horizons,
new challenges and new opportunities
for employees to excel, outperform
and outshine.
The Lupin DNA
As a company with a large number
of young professionals, our HR
practices revolve around one central
theme: to be in sync with the needs
and aspirations of the millennial
generation. We value the contribution
of our 13,000 + workforce, be it in
Sales, Manufacturing or R&D, and
ensure that similar job-holders at the
junior and middle management levels,
have a common understanding of their
respective roles and their departmental
and functional objectives, which are as
closely aligned with the organisations
business priorities. The focus is on
providing clarity to employees on what
they are expected to do and eliminate
ambiguity from how their performance
is evaluated. Further, there is also a
strong focus on learning on the job and
working on cross-functional projects.
This forms the basis of a collaborative
and coherent global work culture,
fostering engagement and augmenting
one of our core values, Team Work.
Integrity is perhaps one of our most
important core values and we have well-
established processes to ensure that
our employees and management uphold
this value in their professional conduct.
Our universally applicable Code of
Conduct and Whistleblower Policy,
standardised antecedent verification
process, transparent performance
management process and fair and
Our recognition as one of Indias best companies to
work for in the pharmaceutical space for the third
year running is a testimony to our people-centric
work practices and trust-based culture. A culture
that has built a truly engaged and inspired global
workforce.
HUMAN RESOURCES
13,000+
lupinytts globally
28 years
`150
Top3
70%
60%
1,929
Lupinytts
average age of a lupinytt
million invested in training and
development in FY 2013
rank in the Great Place to
Work survey amongst Indian
pharma companies for 3 years
running
employee retention of the team
with Lupin for more than 3
years.
of Lupins global workforce is
less than 30 years of age
covered under the Lupin
employee stock option plan
44 | Lupin Limited
equitable reward opportunities give our
people the confidence and comfort to
function effectively. These practices
have built trust over the years and have
continuously provided guidance on the
manner in which to conduct business.
Our culture also inculcates
Entreprenurial Spirit, empowering
employees to stretch beyond what they
thought was possible and achieve more
than just business goals. In order to
provide the required impetus, we offer
a wide array of educational programs,
development initiatives and career
progression opportunities. Today, Lupin
has created advanced and customised
curriculum in collaboration with
prestigious educational institutions
such as IIM-A, BITS (Pilani), The
Indian School of Business, SP Jain
Institute, NMIMS and more. These
programs not only help Lupinytts
enhance their skills but have also helped
build an internal pool of talent. The
HR function lays significant emphasis
on training in other areas as well,
encompassing technical, functional and
behavioral training modules.
At the top of it all, is our leadership
team and our employees have
tremendous faith in the direction in
which they steer our organisation.
Developing managers has always been
a prime focus area for us. We offer
structured inputs at different levels,
in the form of programs such as
Leader Plus, Managers Excellence
Program, Business Leaders Program
and others that groom employees into
superior People Managers and in turn,
these managers into astute, business-
oriented, Strategists.
Lupins intellectual capital is its people,
our most invaluable asset, extending
from its Board Room to its innovation
and business implementation teams
globally. Our all-inclusive Employee
Stock Option Program aptly named
Partners in Progress extends across
the organisational hierarchy right from
the leadership team to the junior-
most levels of the Company. A total
of 1,27,27,730 stock options were
granted under five separate employee
stock option plans through 37 distinct
tranches at an average exercise price of
` 339.112 between 17.02.2005 and
12.03.2013, covering 1,929 employees.
This, we believe, is one of the largest
stock option grant program ever
offered by any company across sectors.
As a true transnational organisation,
we ensure that our global subsidiaries
with Lupinytts spread across 21
geographies also benefit from these
structured, systemised and standardised
HR practices, processes and programs.
Today, around 18% of Lupins
overall global workforces are women,
one of the highest in the generic
pharmaceutical industry up from 6% in
2004. The focus of Lupins HR is our
People, to ensure that our people enjoy
the work they do, remain committed
and contribute meaningfully.
Today, around 18% of
Lupins overall global
workforce are women,
one of the highest in the
generic pharmaceutical
industry up from 6% in
2004.
Lupin employee demographics
2011 2012 2013
Age Group No. of
Employees
% of
Employees
No. of
Employees
% of
Employees
No. of
Employees
% of
Employees
Under 25 419 4% 1026 9% 1542 12%
25-30 4901 47% 5733 48% 6112 48%
31-35 2526 24% 2543 21% 2490 20%
36-40 1063 10% 1062 9% 1057 8%
Above 40 1581 15% 1550 13% 1509 12%
Total 10490 11914 12710
of total employees covered under the
Employee Stock Option Program
15%
million stock options granted so far
over
12
46 | Lupin Limited
RES P ONS I B I L I TY
Ramesh Swaminathan
President Finance & Planning
Financial Discipline
Our high growth track record has been
delivered around a strong financial
discipline that has helped us focus on
creating commercial and operational
efficiencies to drive margin expansion
with high levels of cash generation.
As expected, our businesses operations
continue to unlock and deliver value
consistently, helping us deliver secular
growth across key markets globally. At
the same time, we have continuously
focused on streamlining processes
which has ensured the mitigation of
volatility and risks, while delivering
consistent returns and improved
profitability, a commitment that
we take as a responsibility to all
our stakeholders. This discipline
has made us the 8th largest generic
pharmaceutical company by market
capitalisation globally and more
importantly, taken us to be the very
best in terms of total shareholder
returns (TSR) and earned us the
moniker of Global Challenger from
the emerging world (The Boston
Consulting Group).
The Business Performance Matrix
The Commitment to Create Value,
FY 2013
zThe Company recorded consolidated
revenues of ` 94,616 million in FY
2013, reflecting a growth of 35.9%, up
from ` 69,597 million in FY 2012
zEarnings before Interest Tax
Depreciation and Amortisation
(EBITDA) grew by 57.5% to ` 22,978
million during FY 2013, up from
` 14,591 million in the previous fiscal
zThe Companys Net Profits grew
by 51.5% to ` 13,142 million during
FY 2013
DIVIDENDS & TAXATION
The Company recorded earnings per
share of ` 29.39 during FY 2013.
Taking into account shareholder
commitment, the Board of Directors
recommended a dividend of 200%.
The aggregate tax obligations of the
Company were significantly higher
during FY 2013 due to changes in
tax regimes; some of our Tax Free
Production Zones losing their benefits,
and tax that was levied on inventories
shipped to overseas subsidiaries for new
launches which resulted in an increase
in effective tax rates. The effective tax
rate for the Company for FY 2013
was 30.4%.
Responsibility towards all our stakeholders, built on
a strong financial discipline and rigor, has helped us
deliver strong margins, up from 19.6% in FY 2009
to 24.3% in FY 2013.
FI NANCE
58%
200%
51%
0.14
` 2,80,000
million market capitalisation as
on FY 2013
Over
EBITDA growth in FY 2013
Dividend, FY 2013
growth in earnings per share
in FY 2013
Debt equity ratio in FY 2013
48 | Lupin Limited
The Company has increased its reserves
and surplus by ` 11,911 million to
` 51,147 million. Lupins Advanced
Markets Formulation sales (US, Europe
and Japan) increased by 48% to
` 53,092 million for FY 2013, up from
` 35,885 million the previous year.
Lupin remains the 5th largest generic
player in the US (by prescriptions,
IMS Health December 2012) for the
fourth year running.
Lupins Japanese subsidiary, Kyowa grew
by 52% to ` 13,040 million during
FY 2013 and contributed 14% of the
Companys overall revenues.
Lupins India Region Formulations
business grew by 24%, recording Net
Sales of ` 23,644 million during
FY 2013.
Lupins South African subsidiary,
Pharma Dynamics, grew by 26% to
` 3,210 million as against ` 2,554
million in FY 2012.
A STRONG BALANCE SHEET
We have delivered a strong balance
sheet year after year; a balance sheet
that can be leveraged to add new
dimensions to the Companys business
globally. Backed by prudent financial
planning and tight financial control, we
have ensured strong and positive cash
flows for the Company. The ability
of the Company to raise credit is
stronger than ever. Lupins short-term
debt program continued to receive the
highest rating from ICRA.
Net operating working capital increased
to ` 24,312 million as on 31st March,
2013 as against ` 19,028 million
the previous year. Lupin continues to
invest in manufacturing and building
new facilities and FY 2013 saw capital
expenditure of ` 4,871 million. The
debt equity ratio stood at 0.14 as on
31st March, 2013 as compared to 0.30
as on 31st March 2012.
RESEARCH &
DEVELOPMENT
INVESTING IN OUR
FUTURE
Revenue Expenditure on R&D
increased to ` 7,098 million, 7.5%
of net sales, which indicates how
aggressively we are investing in our
future by creating meaningful and
differentiated product pipelines for
advanced and emerging markets, a
great pointer to the quality of our
future earnings. We are also focusing
on creating value-added products
built on proprietary advanced drug
delivery platforms. We are investing in
expanding our Novel Drug Discovery
and Development pipeline; investing
in clinical trials as our lead candidates
progress from Phase I to Phase II in
Europe. We continue to ramp up our
investments in our Biotechnology foray.
We believe that the products coming
out of our R&D efforts would be
revenue multipliers for the future that
will take the Company into a different
orbit of growth and leadership.
BUSINESS EXCELLENCE
We continue to calibrate and fine-tune
processes across business operations
globally, sharing and integrating best
practices and ensuring technology
absorption across all our business
functions, i.e. manufacturing, logistics,
finance and human resources. This
constant focus and discipline vis`a
vis operational excellence has resulted
in a marked improvement in margins,
where FY 2013 witnessed our best
ever EBITDA margins. We also realise
that excellence in business cannot
be achieved in isolation and Lupin
has actively sought knowledge and
collaborated with consultants in
the pharmaceutical space as well as
external domain experts, be it legal,
regulatory or financial experts. We have
partnered with consulting powerhouses
like the Boston Consulting Group,
Accenture and others in areas such as
global supply chain and streamlining
manufacturing operations successfully.
We partnered to absorb new
methodologies and techniques like
Six Sigma and Lean Manufacturing in
our quest for quality and excellence
in manufacturing.
INTERNAL CONTROL
SYSTEMS & INFORMATION
TECHNOLOGY (IT)
At Lupin, we are in the process of
continuously creating new and fine-
tuning existing automated internal
business controls; a process framework
that integrates the entire organisation;
from strategic support functions like
finance, human resources, regulatory
affairs to core operations and delivery
units like global procurement, research,
manufacturing and supply chain.
A well-established and empowered
system of internal financial audits and
automated control procedures ensures
prudent financial control but more
importantly ensures accountability
and integrity in every part of our
organisation. Embedded controls
ensure instant reporting of violations
and exceptions.
Chartered Accountants M/s Khimji
Kunverji and Co. are our internal
auditors and submit reports and
updates to the Audit Committee of
the Board, which conducts frequent
reviews and provides direction and
operational guidance on how we can
further enhance efficiencies within
the Company.
Lupin continues to remain invested
in building a truly scalable;
technologically balanced; process-driven
IT environment to support business
and growth globally. This assumes a
more critical tone given the rapid ramp-
up that we have and will continue to
witness in key markets globally.
Global ERP - The SAP Rollout
Program: We successfuly expanded the
rollout of our core SAP ERP system
to include all subsidiaries in the US,
Japan, UK, Switzerland and Germany.
The program also included the creation
of a fully secure global telecom network
to operate SAP and other critical
applications. This has created a single
unified platform for Lupin to not
only operate, manage and monitor
its global businesses but has also
enabled superior business reporting
and analytics through the Business
Warehouse system.
This set the tone for the Company
to re-engineer its supply chain matrix
to enable better Sales Support &
Operations Readiness Planning. The
Company launched the SCORE
Program in FY 2013, Lupins global
initiative to create a future-ready
Supply Chain.
Global Messaging and Collaboration
Platform: The Company migrated
its messaging and collaboration
infrastructure to Office 365, a
cloud-based messaging platform
based on Microsoft technology. This
migration has been completed for five
subsidiaries, including India.
Information Security and Protection
- The Kavach Program: The Company
implemented a major program with
the objective of protecting all its
Intellectual Property assets, and
enhancing enterprise security. This
ongoing project required significant
altering and re-alignment of technology,
processes, policies and people practices
to help build a corporate culture and
system consistent with the objective of
managing information security risk.
RISKS CONCERNS &
THREATS
Over the last 7 years, Lupin has evolved
as a world-class financial organisation
with strong risk management
frameworks enabled by a strong
forecasting discipline that has helped
us manage competitive, economic,
financial, geo-political and social risks
on a regular basis. This has enabled
the Company to continually monitor
the market, the global economic
environment, competitor and regulatory
activity to ensure that the Company
can react quickly to any action which
could directly or indirectly impact
its business. The Company has put
in place response mechanisms that
mitigate environmental, operational and
business risks.
Over 70% of the Companys revenues
come from exports to overseas market
and hence we remain exposed to
currency risk. The Companys ability
to read foreign exchange fluctuations
and volatility coupled with an
ensuing currency hedging strategy
for the short, mid and the long-term
through forward exchange contracts,
have helped minimise risk and have
buffered volatility in exchange rates.
We benefited by the steep depreciation
of the Rupee against major global
currencies like the USD, JPY and
EURO during FY 2013.
The Drug Price Control Order
(DPCO) has been a cause of concern
for the Indian Pharmaceutical Industry.
Under the National Pharmaceutical
Pricing Policy, 2011, the Department
of Pharmaceuticals sought to regulate
prices of 348 essential drugs and
their combinations, which cover
60% of drugs sold in the country.
Lupins current and envisaged therapy
and product mix in the Indian
pharmaceutical market coupled with
a consumer-driven pricing strategy
means that DPCO directives have had
the least impact on Lupins Indian
formulations business.
Lupin has been continuously de-risking
global procurement by working out
long-term contracts with multiple
suppliers for key inputs, including raw
materials, services and finished goods.
We have innovated by creating high-
value differentiated products in niche
therapies for our key markets. We have
invested in developing technology
platforms and drug delivery capabilities
and backed that up by expanding and
adding scale to our manufacturing
operations. Lupin remains one of the
most vertically integrated companies
globally. This coupled with investments
in biotechnology and a highly
evolved Novel Drug Discovery and
Development pipeline, indicate how
we are creating new business segments
with global potential. This has helped
us build a strong competitive advantage
with better earnings visibility in the
long run. We remain committed to
creating value for all our stakeholders,
we remain responsible.
50 | Lupin Limited
Can a business transform distant
villages that have for decades remained
in poverty, isolation and ignorance
into vibrant centers of progress and
development? Of what use are scientific
knowledge, technology development
and economic progress if they cant
be used to restore a villagers lost
confidence or extend the benefits
of modern education to the under-
privileged and transform lives? These
the Lupin Human Welfare & Research
Foundation (LHWRF) in 1988 in
response to addressing the growing
inequity that lay beyond Indias
urban perimeter and to ensure that
growth and development reach rural
India. LHWRF was set up with the
objective of creating a replicable and
ever-evolving model for sustainable
rural development with the simple goal
of uplifting families living below the
poverty line.
From having made humble beginnings
in 1988 by initiating small projects,
LHWRF has come a long way to become
one of the largest NGOs and social
development initiatives undertaken by a
corporate in South-East Asia, touching
and transforming the lives of over 2.5
million people, covering 3,000 villages
spread across the states of Rajasthan,
Madhya Pradesh, Maharashtra and
Uttarakhand. The Foundation operates
through ten centres: Alwar and
Bharatpur in Rajasthan; Aurangabad,
Dhule, Nandurbar, Pune and
Sindhudurg in Maharashtra; Bhopal and
Dhar in Madhya Pradesh and Rishikesh
in Uttarakhand.
The Foundation focuses on rural
development programs that help
promote and enable Economic
Development, Social Development,
Natural Resource Management and
Infrastructure Development.
Economic development
Agricultural development: LHWRF
programs are designed to enhance
farm productivity and ensure resource
utilisation. The programs have focussed
on suggesting contemporary cropping
changes that improve livelihoods
substantially. Dissemination of
knowledge on new cropping techniques,
True progress is when you become the reason for
making others prosper and smile
Lupin Human Welfare and Research Foundation
CONS CI OUS NES S
Touching the lives of over
2.5
million people spread across
3,000
villages
were some of the questions that led
Dr. Desh Bandhu Gupta to set up
2.5
3,000
` 500
million human lives
touched
number of villages where the
Company is present
million mobilised by
LHWRF
CORPORATE SOCI AL OBLI GATI ON
introduction of new technologies and
equipment have enabled the farmers to
increase yields enormously.
Animal husbandry: Livestock provides
vital additional income for sustenance
of poor in rural areas. LHWRF
programs in this area have focussed on
improving productivity by inducting
livestock of superior breeds and on breed
improvement in adopted areas through
artificial and natural inseminations
methods. This is complemented by
routine activities such as organising
animal vaccination camps, providing
animal health care at the door step and
assisting farmers in fodder development.
Rural industries promotion: There
is considerable human potential that
lies untapped in the villages and small
towns of India. LHWRF programs
encourage rural non-farm employment
by providing training on new skills.
These programs go a step further by also
providing credit support, which enable
the rural poor to get new livelihoods and
fixed incomes. In FY 2013, 242 new
enterprises were established and 1,183
old enterprises were either re-established
or upgraded. The team also facilitated
loan disbursement of ` 637 lakhs
and `1,037 lakhs through RMK and
SIDBI respectively.
Financial inclusion: In FY 2013,
LHWRF partnered with State Bank of
Bikaner & Jaipur to enable the financial
inclusion of the rural poor. LHWRF has
developed an innovative programme that
is taking banking to rural households,
who were so far out of the ambit of
banking system. The program has helped
open 99,787 new accounts for rural
women spread across 436 villages in 6
districts of Rajasthan.
Social development
It is universally acknowledged that
economic and social development work
in tandem. LHWRF social development
programs focus on women empowerment,
community health and qualitative
education programs.
Women empowerment: We believe that
it is important to empower women
financially and provide them with
skills that encourage employability.
LHWRF programs for women focus
on the creation of Self Help Groups
(SHGs) and strengthening them through
52 | Lupin Limited
bank linkages and capacity building.
Building of linkages with the financial
institutions and banks ensures that
all women below the poverty line have
access to much-needed credit. Setting
up of successful enterprises by women
through SHG loans have opened up new
horizons and opportunities for them
and encouraged them to step up the
social ladder. Around 1,344 new SHGs
were formed and 14 federations were
established during the current year.
Community health management: Access
to quality and in-time health care is a
critical issue in rural areas. LHWRF
programs are increasingly focussing
on providing Quality health services
at the doorstep complimenting the
governments efforts to reduce IMR
and MMR in adopted areas. LHWRF
is an implementing partner for the
Integrated Child Development Scheme
(ICDS) in one block. In FY 2013, the
LHWRF team organised 45 health
camps, of which 17 were in schools in
our adopted areas. Our Mobile Medical
Diagnostic Unit (MMDU) carried out
1,628 check-ups in adopted areas.
Education: Right from inception,
LHWRF programs focused on
providing relevant education in
rural areas. LHWRF programs not
only impart skill-based training and
education but also help schools get
access to modern training aids and
equipment. LHWRF introduced
e-learning systems in adopted areas
which has made education an exciting
experience for students and teaching
easy. Further, we distributed 702
modern educational equipment and
training aids to schools this year.
Natural resource management
In FY 2013, states such as Maharashtra
were hit by severe drought. LHWRF
programs focussed on water and land
resource development. Several water
storage structures such as 10 new
check dams and 25 farm ponds were
built; old structures were de-silted to
enhance water stocking in local micro
watersheds. Farmers were encouraged to
tackle water scarcity by forming
groups for constructing wells. In
order to enhance water use efficiency,
drip irrigation system for watering
crops was promoted widely covering
49 hectares.
Infrastructure development
The LHWRF undertook numerous
programs to help rural communities
build necessary civil infrastructure.
The Foundation focussed on creating
and building school infrastructure,
better rural sanitation, internal roads
and housing. These initiatives helped
improve the quality of life in adopted
areas and brought much-needed
comfort to women, children and the
poor. In FY 2013, about 200 new-low
cost houses were constructed and 390
previously built houses were repaired
through support provided by LHWRF.
The Foundation also initiated projects
for improved sanitation in rural areas.
LHWRF also established 38 Farmers
Knowledge Centres.
Over the last 25 years, we have grown
with the communities that we have
worked with and served; and are
conscious of our larger responsibility,
aware that a lot needs to be done to
ensure that the benefits of scientific
and economic progress reach rural
areas. True Growth that is all Inclusive.
At LHWRF, the bottomline is
Consciousness.
REP ORTS A ND
F I NA NCI A L S
Six Year Financial Summary ............................................................................................................................. 54
56
66
84
85
95
96
143
146
184
Directors Report ...............................................................................................................................................
Corporate Governance Report .........................................................................................................................
Auditors Certificate on Corporate Governance ...........................................................................................
Business Responsibility Report .......................................................................................................................
Independent Auditors Report on Consolidated Financial Statements ....................................................
Consolidated Financial Statements .................................................................................................................
Independent Auditors Report .........................................................................................................................
Financial Statements ...........,.............................................................................................................................
Section 212 ........................................................................................................................................................
54 | Lupin Limited
CONSOLIDATED BALANCE SHEET H in million
As at March 31, 2008 2009 2010 2011 2012 2013
SOURCES OF FUNDS
Shareholders funds
LquiIyShareCapiIal 820.8 828.2 889.4 892.4 89J.J 895.!
PeservesandSurplus !!,976.0 !J,420.0 24,788.9 J!,9!8.4 J9,2J5.6 5!,!46.7
!2,796.8 !4,248.2 25,678.J J2,8!0.8 40,!28.9 52,04!.8
Minority Interest 94.5 !42.5 254.9 5!5.! 722.9 594.5
Loan Funds
SecuredLoans 7,080.6 7,569.2 8,722.4 7,885.9 8,!6!.2 6,J69.2
UnsecuredLoans 4,948.2 4,66J.5 2,676.! J,7J8.0 8,229.8 5,275.7
!2,028.8 !2,2J2.7 !!,J98.5 !!,62J.9 !6,J9!.0 !!,644.9
Deferred Tax Liabilities (net) !,248.0 !,J87.2 !,6J0.4 !,79!.8 !,9!0.! 2,JJ6.8
TOTAL 26,168.1 28,010.6 38,962.1 46,741.6 59,152.9 66,618.0
APPLICATION OF FUNDS
Fixed Assets
Gross8lock !4,858.8 !8,200.J 22,9J7.! 26,J88.5 J6,878.4 4!,768.9
Less:DepreciaIionand
AmorIisaIion
4,697.5 6,!88.J 7,072.2 9,075.! !4,42!.8 !6,840.4
NeI8lock !0,!6!.J !2,0!2.0 !5,864.9 !7,J!J.4 22,456.6 24,928.5
CapiIalWorkinProgress
(incl.CapiIalAdvances)
96J.8 2,2J9.7 J,578.7 5,J!9.J 4,97J.7 J,909.0
!!,!25.! !4,25!.7 !9,44J.6 22,6J2.7 27,4J0.J 28,8J7.5
Goodwill on Consolidation !,872.J J,!7J.7 J,!96.8 J,254.9 5,040.0 5,07J.2
Investments 58.2 2!5.6 264.J J!.5 28.0 20.6
Deferred Tax Assets (net) !4!.2 222.8 !95.4 J80.5 467.8 704.4
Other Assets
lnvenIories 7,89J.4 9,57!.6 9,7!4.9 !!,999.6 !7,J26.7 !9,489.J
Peceivables 7,4J9.0 9,!79.7 !!,265.7 !2,556.4 !7,800.! 2!,869.9
Cashand8ank8alances 2,74!.8 777.7 2,0!5.J 4,20!.4 4,024.7 4,J48.8
OIhers 2,J67.0 2,779.7 4,758.6 6,!86.6 7,704.6 8,794.9
20,44!.2 22,J08.7 27,754.5 J4,944.0 46,856.! 54,502.9
Other Liabilities
LiabiliIies 6,0!8.8 !0,JJ4.8 9,66J.4 !!,779.J !6,7J0.5 !7,8J6.4
Provisions !,45!.! !,827.! 2,229.! 2,722.7 J,9J8.8 4,684.2
7,469.9 !2,!6!.9 !!,892.5 !4,502.0 20,669.J 22,520.6
Net Other Assets !2,97!.J !0,!46.8 !5,862.0 20,442.0 26,!86.8 J!,982.J
TOTAL 26,168.1 28,010.6 38,962.1 46,741.6 59,152.9 66,618.0
SIX YEAR FINANCIAL SUMMARY
H in million
Year ended March 31, 2008 2009 2010 2011 2012 2013
INCOME
Sales(Gross) 29,007.4 J8,428.9 48,009.5 57,42!.7 70,0!7.2 95,2J5.J
Less:LxciseDuIy 666.4 479.0 27J.2 J5J.5 420.2 6!9.0
Sales(neI) 28,J4!.0 J7,949.9 47,7J6.J 57,068.2 69,597.0 94,6!6.J
OIherOperaIinglncome 575.9 6J7.! 762.5 !,!2!.5 !,2J2.! !,796.7
OIherlncome 2!!.J !25.5 J5!.! 22!.9 !4J.5 278.5
Total Income 29,128.2 38,712.5 48,849.9 58,411.6 70,972.6 96,691.5
EXPENDITURE
CosIoMaIerials !!,6J8.0 !6,04J.! !9,694.2 22,J79.J 26,0J9.0 J5,480.2
Lmployee8eneiIsLxpense J,076.0 4,87!.J 5,87!.5 7,675.6 9,695.J !2,487.9
ManuacIuringandOIher
Lxpenses
7,99!.2 !0,J59.2 !J,J0J.J !6,J56.4 20,647.7 25,745.J
Total Expenses 22,705.2 31,273.6 38,869.0 46,411.3 56,382.0 73,713.4
Profit before Interest,
Depreciation and Tax
6,42J.0 7,4J8.9 9,980.9 !2,000.J !4,590.6 22,978.!
linanceCosIs J7J.5 498.6 J84.9 J44.8 J54.7 4!0.2
DepreciaIionandAmorIisaIion 647.4 879.9 !,2J9.! !,7!!.8 2,275.2 J,J2!.9
Profit before Tax 5,402.! 6,060.4 8,J56.9 9,94J.7 !!,960.7 !9,246.0
CurrenITax !,022.6 727.0 !,!09.8 !,!76.J 2,756.2 5,829.0
DeerredTax !80.6 !06.2 250.4 (26.5) J29.4 !2.6
lringe8eneiITax !!4.8 !49.8
Net Profit before Minority
Interest and Share of Loss in
Associates
4,084.! 5,077.4 6,996.7 8,79J.9 8,875.! !J,404.4
MinoriIylnIeresI !.J 28.6 !!!.6 !48.4 !98.6 262.8
ShareoLossinAssociaIes 0.J JJ.4 68.8 20.0
Net Profit 4,082.5 5,015.4 6,816.3 8,625.5 8,676.5 13,141.6
NoIe:liguresaresuiIablyregroupedIomakeIhemcomparable.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
56 | Lupin Limited
DIRECTORS
REPORT
Your DirecIors have pleasure in presenIing Iheir reporI on Ihe business and operaIions o your Company or Ihe year ended
MarchJ!,20!J.
Financial Results
(Jin million)
Standalone Consolidated
2012-13 2011-12 2012-13 2011-12
Sales(Gross) 7072J.9 5J579.! 952J5.J 700!7.2
ProiIbeoreinIeresI,depreciaIionandIax !9072.J !!65J.5 22978.! !4590.6
Less:lnIeresIandinancecharges JJ2.8 286.8 4!0.2 J54.7
Less:DepreciaIionandamorIisaIion !50!.4 !J!9.6 JJ2!.9 2275.2
ProiIbeoreIax !72J8.! !0047.! !9246.0 !!960.7
Less:ProvisionorIaxaIion(includingdeerredIax) 46JJ.8 200J.4 584!.6 J085.6
NeIProiIbeoreMinoriIylnIeresI !J404.4 8875.!
Less:MinoriIylnIeresI 262.8 !98.6
Net Profit 12604.3 8043.7 13141.6 8676.5
Add:SurplusbroughIorwardrompreviousyear !95J0.2 !4647.9 2!J45.2 !5946.!
AmounIavailableorAppropriaIion 32134.5 22691.6 34486.8 24622.6
AppropriaIions:
TranserIoGeneralPeserve !500.0 !500.0 !500.0 !500.0
Add:TranserromMinoriIylnIeresI 280.6
DividendonLquiIySharesbyanoverseassubsidiary 9J.4
ProposeddividendonLquiIyShares !790.! !429.2 !790.! !429.2
DividendonLquiIySharesorpreviousyear 0.9 0.J 0.9 0.J
CorporaIeIaxondividend J04.J 2J!.9 J04.J 254.5
8alancecarriedIo8alanceSheeI 285J9.2 !95J0.2 J!!72.! 2!J45.2
32134.5 22691.6 34486.8 24622.6
Performance Review
YourCompanyscalednewerheighIsandbenchmarksinIermsosalesandproiIsorIheyearendedMarchJ!,20!J.ConsolidaIed
salesaIH 952J5.JmilliongrewbyJ6%overH 700!7.2millionoIhepreviousyear.lnIernaIionalmarkeIsaccounIedor72%
osales.ProiIbeoreinIeresI,depreciaIionandIaxincreasedby57%aIH 22978.!millionasagainsIH !4590.6millioninIhe
previous year. ProiI beore Iax was H !9246.0 million, higher by 6!% over Ihe previous year. AIer providing or Iaxes and
minoriIyinIeresI,neIproiIwasH !J!4!.6million,higherby5!%overIhepreviousyear.LarningpersharewasH 29.J9.
Dividend
YourDirecIorsarepleasedIorecommenddividendaIH 4/perequiIyshareoH 2/each,absorbinganamounIoH !790.!
million.ThecorporaIeIaxonproposeddividendaggregaIesH J04.Jmillion.
Share Capital
During Ihe year, Ihe paidup equiIy share capiIal o your
Company rose by H !.8 million consequenI Io alloImenI o
8878!2 equiIy shares o H 2/ each Io eligible employees
underIheLupinLmployeesSIockOpIionPlan200J,Lupin
Lmployees SIock OpIion Plan 2005, Lupin Subsidiary
Lmployees SIock OpIion Plan 2005 and Lupin Lmployees
SIockOpIionPlan20!!.
Credit Rating
lCPALimiIedreairmediIs[ICRA] A1+(pronouncedlCPA
Aoneplus)raIingoryourCompanysworkingcapiIallines
oH !5000millionrombanksindicaIingaverysIrongdegree
o saeIy or Iimely paymenI o inancial obligaIions. O Ihis
limiI, H !900 million was assigned a longIerm raIing o
[ICRA] AA+(pronouncedlCPAdoubleAplus)indicaIing
a high degree o saeIy or Iimely servicing o inancial
obligaIions.
The Company also enjoys [ICRA] AA+ raIing or non
converIible debenIures (NCDs) o H !000 million, indicaIing
a high degree o saeIy or Iimely servicing o inancial
obligaIionsorlongIermdebIinsIrumenIs.TheCompanydid
noIissueanylongIermNCDsduringIheyear.
Subsidiary Companies
As on March J!, 20!J, Ihe Company had !9 subsidiaries.
Lupin Middle LasI lZLLC, Dubai, whollyowned subsidiary
wasincorporaIedon!une!J,20!2.SinceIherewasnoImuch
operaIioninAmelTouhoku,!apan,whollyownedsubsidiary
oIheCompany,iIwaswoundupw.e..lebruary28,20!J.
linancials o subsidiary companies are disclosed in Ihe
ConsolidaIed linancial SIaIemenIs which orm parI o Ihis
Annual PeporI. SIaIemenI pursuanI Io SecIion 2!2(!)(e) o
IheCompaniesAcI,!956ormsparIoIhisAnnualPeporI.
Management Discussion and Analysis
AdeIailedManagemenIDiscussionandAnalysisormsparIo
IhisAnnualPeporI.
Corporate Governance
PeporIonCorporaIeGovernanceormsaninIegralparIoIhis
AnnualPeporI.TheAudiIorscerIiicaIecerIiyingcompliance
wiIhIhecondiIionsoCorporaIeGovernanceunderClause49
oIheLisIingAgreemenIisalsoannexedIoIhisPeporI.
Business Responsibility Report
PursuanIIoClause55oIheLisIingAgreemenIwiIhIheSIock
Lxchanges, 8usiness PesponsibiliIy PeporI orms parI o Ihis
AnnualPeporI.
Directors Responsibility Statement
PursuanI Io Ihe provisions o SecIion 2!7(2AA) o Ihe
CompaniesAcI,!956(AcI),yourDirecIorsconirmIhaI:
i) in Ihe preparaIion o Ihe annual accounIs, Ihe
applicable accounIing sIandards had been ollowed
along wiIh proper explanaIion relaIing Io maIerial
deparIures,
ii) Ihe DirecIors had selecIed such accounIing policies
and applied Ihem consisIenIly and made judgmenIs
and esIimaIes IhaI are reasonable and prudenI so as
Io give a Irue and air view o Ihe sIaIe o aairs o
yourCompanyaIIheendoIheinancialyearended
MarchJ!,20!JandoIheproiIoyourCompanyor
IhaIyear,
iii) Ihe DirecIors had Iaken proper and suicienI care
or Ihe mainIenance o adequaIe accounIing records
in accordance wiIh Ihe provisions o Ihe AcI or
saeguarding Ihe asseIs o your Company and or
prevenIinganddeIecIingraudandoIherirregulariIies,
and
iv) IheDirecIorshadpreparedIheannualaccounIsona
goingconcernbasis.
Directors
Dr. Kamal K. Sharma was reappoinIed as Managing
DirecIoroIheCompanyoraperiodoIhreeyearseecIive
SepIember 29, 20!2 or oIher muIually agreed capaciIy. His
reappoinImenIwasapprovedbymembers,videanordinary
resoluIion passed by posIal balloI, Ihe resulI o which was
declaredonDecember!J,20!2.
The Company, led by a sIrong senior managemenI Ieam,
is poised Io enIer higher orbiIs o growIh. ln Ihis direcIion,
Ihe 8oard o DirecIors aI iIs meeIing held on May 8, 20!J
approved Ihe elevaIion o Dr. Kamal K. Sharma as Vice
Chairman, Ms. ViniIa GupIa as Chie LxecuIive Oicer and
Mr. Nilesh GupIa as Managing DirecIor, eecIive
SepIember !, 20!J, on such Ierms and condiIions as may
be inalised and subjecI Io necessary approvals as may be
required.
Dr.SharmahaseecIivelyledIheIeamandasViceChairman,
he would be involved in seIIing vision o Ihe Company,
building sIraIegy and menIoring Ihe managemenI Ieam.
Ms.ViniIahasbuilIasIrongpresenceinIheUSmarkeIwhich
isIhelargesImarkeIoIheCompany.Mr.NileshGupIahas
ablyledIheCompanysresearchandsupplychainuncIions.
Mr. Dileep C. Choksi, who was appoinIed as an AddiIional
DirecIorw.e..OcIober2J,20!2,holdsoiceupIoIhedaIe
o Ihe orIhcoming Annual General MeeIing. NoIices have
beenreceivedromcerIainmembersproposinghisnameor
appoinImenIasadirecIor.
Mr.D.K.ConIracIorsIeppeddownromIhedirecIorshipo
Ihe Company w.e.. OcIober 2J, 20!2 on healIh grounds.
The 8oard records iIs sincere appreciaIion o Ihe valuable
conIribuIionrenderedbyMr.ConIracIorduringhisIenureas
adirecIoroIheCompany.
58 | Lupin Limited
Dr.KamalK.Sharma,Ms.ViniIaGupIaandMr.NileshGupIa
reIirebyroIaIionaIIheorIhcomingAnnualGeneralMeeIing
andareeligibleorreappoinImenI.
Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo
The parIiculars as prescribed by SecIion 2!7(!)(e) o Ihe
Companies AcI, !956 read wiIh Companies (Disclosure o
ParIiculars in Ihe PeporI o 8oard o DirecIors) Pules, !988
relaIing Io conservaIion o energy, Iechnology absorpIion
and oreign exchange earnings and ouIgo are given in
AnnexureA.
Fixed Deposits
Your Company has noI accepIed any ixed deposiI during
Iheyear.NodeposiIwasouIsIandingasonMarchJ!,20!J.
SevendeposiIsaggregaIingH 6J,000/werelyingunclaimed
wiIh Ihe Company, as on March J!, 20!J, none o which,
have since been claimed. Peminders have been senI Io Ihe
concerned deposiIors Io claim repaymenI o Iheir maIured
deposiIs.
Auditors
SIaIuIory AudiIors o Ihe Company, M/s. DeloiIIe Haskins &
Sells, CharIered AccounIanIs, reIire aI Ihe conclusion o Ihe
orIhcoming Annual General MeeIing and are eligible or
reappoinImenI. The AudiI CommiIIee and Ihe 8oard o
DirecIors recommend Iheir reappoinImenI as SIaIuIory
AudiIorsoyourCompany.
M/s.KhimjiKunverji&Co.,CharIeredAccounIanIs,Mumbai,
wereIhelnIernalAudiIorsoIheCompanyduringIheyear.
Cost Auditors
PursuanIIoIheprovisionsoSecIion2JJ8oIheCompanies
AcI,!956,inIermsoGeneralCircularNo.!5/20!!daIedApril
!!,20!!andwiIhIheapprovaloIheCenIralGovernmenI,
Mr. S. D. Shenoy (lellow Membership No.8J!8), pracIising
CosI AccounIanI, was appoinIed Io conducI audiI o cosI
records o 8ulk Drugs and lormulaIions or Ihe year ended
March J!, 20!J. CosI AudiI PeporI would be submiIIed Io
IheCenIralGovernmenIwiIhinIheprescribedIime.
PursuanIIoPule5oIheCompanies(CosIAudiIPeporI)Pules,
20!!andinIermsoCircularsissuedbyIheCosIAudiI8ranch
oIheMinisIryoCorporaIeAairsromIimeIoIime,IheCosI
AudiI PeporI or 8ulk Drugs and lormulaIions, or Ihe year
endedMarchJ!,20!2wasiledwiIhIheCenIralGovernmenI
onDecember27,20!2,inIheLxIensible8usinessPeporIing
Language(X8PL)mode.ThelasIdaIeoilingIheCosIAudiI
PeporIwaslebruary28,20!J.
Employees Stock Appreciation Rights / Stock Options
During Ihe year, Lupin Lmployees 8eneiI TrusI, o which,
8arclays WealIh TrusIees (lndia) PrivaIe LimiIed are
independenI IrusIee, acquired 446!54 ully paidup equiIy
sharesoIheacevalueoH 2/eachunderLupinLmployees
SIockAppreciaIionPighIsScheme20!!.
PursuanI Io Ihe provisions o Ihe SecuriIies and Lxchange
8oardolndia(LmployeeSIockOpIionSchemeandLmployee
SIock Purchase Scheme) Guidelines, !999, Ihe deIails o
sIockopIionsgranIedbyIheCompanyduringIheyearunder
LupinLmployeesSIockOpIionPlan2005,LupinLmployees
SIock OpIion Plan 20!! and Lupin Subsidiary Companies
LmployeesSIockOpIionPlan20!!areseIouIinAnnexure8
ormingparIoIhisPeporI.
Human Resources
The Company was ranked as lndias 8esI Company Io
Work or 20!2 in Ihe 8ioIech and Pharma SecIor, by Ihe
GreaI Places Io Work lnsIiIuIe
and The Lconomic Times,

inIheirannualcrossindusIrysIudycalled8esICompaniesIo
Work or. This recogniIion is a Irue IesIimony and a joyous
relecIionoIheprideoemployees,superiorpeoplepracIices
and overall employee orienIaIion. The Company irmly
believes IhaI employees are Ihe mosI viIal asseIs and key
dierenIiaIors o business success. ln order Io enhance Ihe
eiciency and eecIiveness, Ihe Company insIiIuIed several
peopleriendly policies and peopledevelopmenI programs,
acrossalllevels,IoenIhuseavibranIworkculIureandensure
IhaIIheworkorceremainsinvigoraIedandmoIivaIed.
Particulars of Employees
ParIiculars o employees required Io be urnished pursuanI
Io Ihe provisions o SecIion 2!7(2A) o Ihe Companies AcI,
!956 (AcI), read wiIh Companies (ParIiculars o Lmployees)
AmendmenI Pules, 20!!, are given as an annexure Io Ihis
PeporI.However,pursuanIIoIheprovisionsoSecIion2!9(!)
(b)(iv)oIheAcI,IhePeporIandAccounIsarebeingsenIIo
allIhemembersexcludingIheaoresaidAnnexure.Members,
who are inIeresIed in Ihe inormaIion, may wriIe Io Ihe
CompanySecreIaryaIIheregisIeredoiceoIheCompany.
Acknowledgements
Your DirecIors commend Ihe commiImenI, hardwork,
dedicaIion and conIribuIions o employees across Ihe
Company.TheyexpressgraIiIudeIoIhevariousdeparImenIs
oCenIralandSIaIegovernmenIs,banks,inancialinsIiIuIions,
cusIomers, medical proessionals, disIribuIors, business
associaIes, suppliers, shareholders and analysIs, or Iheir
conIinuedsupporI.
For and on behalf of the Board of Directors
Chairman
Mumbai,May8,20!J
ANNEXURE A TO
THE DIRECTORS REPORT
Pursuant to the Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988.
A. CONSERVATION OF ENERGY
a) Energy conservation measures taken:
i) ConducIedcompressedairaudiI.
ii) UsedelecIronicballasIorlighIixIures.
iii) AuIomaIionosolvenIdisIillaIioncolumns.
iv) lnsIalled molecular sieve dryer or solvenI
dehydraIion.
v) lnsIalledplaIeIypeheaIexchangersandvacuum
Iraps.
vi) lnsIalledsingleDXuniIinplaceoIwo
hermeIicallysealedcompressors.
vii) PedesignedchillingplanIaIoperaIing
IemperaIure.
viii) OpIimisaIionoagrouelboiler.
ix) PeplacedshellandIubeheaIexchangerwiIhPHL
Iype.
x) OpIimisedaircompressorpressure.
xi) PeplacedlurnaceOil8oilerwiIh8riqueIIe8oiler.
b) Additional investments and proposals:
i) lnsIalleicienIsIeamboilerburners.
ii) HarmonicsandpoweracIorimprovemenIs.
iii) lmprovecondensaIerecovery.
iv) lnsIallwindpowerIurbine.
v) lnsIallenergysavinglamps.
vi) lnsIallVlDoraircompressormoIors.
vii) OpIimisaIionuseoAgrowasIeboiler.
c) Impact of measures in (a) & (b):
i) 8eIIerqualiIyopower.
ii) PeducIioninossiluelcombusIion.
iii) OpIimaluIilisaIionoresourcesresulIedinoverall
eiciencyimprovemenI.
iv) PeducedconsumpIionouel,waIerandpower
resulIedinloweringoverallcosIs.
d) Total energy consumption and energy consumption
per unit of production:
DeIailsaregiveninlormA
60 | Lupin Limited
FORM A
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
Year ended
March 31, 2013
Year ended
March 31, 2012
A. POWER & FUEL CONSUMPTION
1. Electricity
a) Purchased Units Thousand KWH 256966 2202J5
ToIalamounI H in Mn. !652 !J4J
PaIe/uniI(KWH)
H
6.4 6.!
b) Own Generation
i) Through Diesel Generator (HSD)
UniIs Thousand KWH 4996 66!4
UniIsperliIreodieseloil KWH J.0 J.2
CosI/uniI(KWH)
H
!5.! !J.!
ii) Through Generator (furnace oil)
UniIs Thousand KWH 6J 242
UniIsperliIreournaceoil KWH J.J 5.8
CosI/uniI(KWH)
H
!2.2 5.2
iii) Through Generator (gas)
UniIs Thousand KWH 8402 !5!2J
UniIsperMJoNaIuralgas KWH J.7 J.7
CosI/uniI(KWH)
H
9.0 6.9
2. Coal Nil Nil
3. Furnace oil (Boiler)
QuanIiIy KL !!947 !6987
ToIalamounI H in Mn. 494.0 628.!
PaIe/uniI(KL)
H
4!J52 J6976
4. i) Natural gas
QuanIiIy Cu. mts. !487!096 !444!656
ToIalamounI H in Mn. 4J2.4 J!9.!
PaIe/uniI(Cu.mI.)
H
29.! 22.!
ii) Briquette (Boiler)
QuanIiIy MT 4557 8!6.!
ToIalamounI H in Mn. !6.7 J.6
PaIe/uniI(MT)
H
J.7 4.4
B. CONSUMPTION PER UNIT OF PRODUCTION:
TheCompanymanuacIuresAPlsandseveraldrugormulaIionsodierenIpacksizes.lIisIhereore,impracIicalIoapporIion
IheconsumpIionandcosIouIiliIiesIoeachproducI.
NOTE:
TherearenospeciicsIandards,asIheconsumpIionperuniIdependsuponIheproducImix.VariaIionsinconsumpIionare
dueIodierenIproducImix.
B. TECHNOLOGY ABSORPTION:
e) Efforts made in technology absorption as per Form B are given below:
FORM B
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTI0N
Research and Development (R & D)
1. Specific areas in which R&D was carried out by the Company:
TheCompanyisbuildingauIurebysIrengIheningiIsresearchoundaIionIhroughconsisIenIinvesImenIsineveryaspecI
o iIs research programs be iI Generics Pesearch, Advanced Drug Delivery SysIems (ADDS), Novel Drug Discovery and
DevelopmenI(NDDD)and8ioIechnology.TheyearsawIheCompanyconIinueIoworkandcrosssigniicanImilesIoneson
collaboraIiveresearchanddevelopmenIdealsoriIsADDSplaIorms.DrugdeliveryIechnologiesandplaIormswerealso
leveragedIoprovidesigniicanIproducIliecycleadvanIagesIoIheCompanysownproprieIaryproducIs.TheGenerics
P&D program conIinues Io creaIe meaningul producI pipelines or boIh APls and ormulaIions or Ihe US, Luropean,
!apaneseandoIheradvancedandemergingmarkeIs.TheCompanysNDDDprogramwiInessedheighIenedacIiviIyasiI
compleIedPhaselsIudiesoroneoiIsprogramsinIheCNSarea,whichisnowbeingadvancedIoPhasellclinicalIrials
inLurope.The8ioIechnologydevelopmenIgroupalsoreceivediIsirsImarkeIingauIhorizaIionoranoncologyproducI
ollowingIhesuccessulcompleIionoPhaselllclinicalIrialsinlndia.
2. Benefits derived as a result of the above R&D:
lY20!JwasasIrongyearorIheCompanysPesearchandDevelopmenIasIheCompanyconIinuedIobeneiIromiIs
consisIenIinvesImenIsinresearch.TheCompanyiled!5DMlsand2!ANDAsinIheUS,IakingIhecumulaIiveIoIalIo
!J8and!76respecIively.TheCompanyreceivedapprovalor!6ANDAsincluding2orNDAsIhusIakingIoIalapprovals
receivedIilldaIeIo78.TheCompanyalsoiled!0MAAswiIhLuropeanauIhoriIies,5LDMls,JCOSs,JCanadianANDS,
JAusIralian&NewZealandMAAs,2AusIraliaDMlsand!!apanDMl.CumulaIiveilingswiIhinIheLUsIandsaI5J
wiIhJ8approvalsreceivedsoar.TheCompanyalsoiled2exclusiveirsIIoileaswellas4nonexclusiveirsIIoile
opporIuniIieswiIhIheUSlDAinlY20!JIakingIhecumulaIiveIoIalIo29.The8randSalesorIhese6irsIIoilesIands
aIUSD677mn.asperlMSMATMar20!J.DuringlY20!J,IheCompanyiledor!57newpaIenIsIakingIhecumulaIive
IoIalIo!,!8!paIenIsiledIilldaIe.Thisincludes60lormulaIionpaIenIs,4!APl/ProcesspaIenIs,68ioIech,and47NCL
paIenIs.TheCompanyreceivedapprovalsor8lormulaIionpaIenIs,!0APlPaIenIsandmoreimporIanIly2NCLpaIenIs.
Lupin8ioresearchCenIercompleIed26ullsIudiesIakingIhecumulaIiveIallyIo!2!.
TheCompanysADDSprogramreceivedprojecImilesIonepaymenIsaggregaIingoverUSD6.5mn.orIwoproducIsIhaI
arecurrenIlyunderjoinIdevelopmenIwiIhMedicisPharmaceuIicalCorporaIion,US.
3. Future plan of action:
lnkeepingwiIhiIsvision,IheCompanyremainscommiIIedIoidenIiyinganddevelopingnewproducIsorIheIreaImenI
o human diseases wiIh unmeI medical needs. The Company conIinues Io undersIand and navigaIe iIs way Ihrough
a complex inIellecIual properIy environmenI Io proacIively idenIiy opporIuniIies Io develop highly dierenIiaIed
Iechnologies and producIs. liling or key markeIs like !apan, AusIralia, lndia, SouIh Arica and emerging markeIs are
beingrampedup.TheCompanyhasidenIiiedmulIipledrugIargeIswhicharebeinginvesIigaIedacrossdiseaseareas.A
porIolioo!0novelcompoundshasalreadybeencreaIedbyscienIisIsaINDDDwhichareprogressingIhroughvarious
phasesromdiscoveryIodevelopmenI.lnIhe8ioIechnologydevelopmenIprogram,5biosimilarproducIs,includinga
baskeIoblockbusIermonoclonalanIibodiesandIherapeuIicrecombinanIproIeinsareaIvarioussIagesodevelopmenI.
4. Expenditure on R&D (Consolidated):
a. CapiIal H889.9Mn.
b. Pecurring(excludingdepreciaIionoH 279.9Mn.) H 68!8.6Mn.
c. ToIal H 7708.5Mn.
d. ToIalP&DexpendiIureasapercenIageoneIsales 8.!%
62 | Lupin Limited
Technology absorption, adaptation and innovation:
i. Efforts in brief, made towards technology absorption, adaptation and innovation:
ArobusIbedrockoanadvancedandhighlyevolvedPesearchandDevelopmenIprogramhasbeenIhekeyIoIhe
CompanyssusIainedandsIronggrowIhperormanceoverIhepasIIenyears,growIhIhaIhasmadeusoneoIhe
mosIexciIingresearchdriven,pharmaceuIicalcompaniesglobally.CreaIing,buildingandleveragingdierenIiaIionis
aIIhecoreoresearchprogramsoIheCompany.PesearchgroupsandlPMGworkinIandemwiIhcorporaIesIraIegy
andbusinessdevelopmenIIeamsIoidenIiynewIherapyareasorcreaIingavaluebasedproducIpipeline.
ii. Benefits derived as a result of the above efforts:
The Companys susIained invesImenIs in Pesearch and DevelopmenI and iIs ocus on enIering new producI areas,
Iherapies and new markeIs consisIenIly have helped iI emerge as Ihe Jrd largesI lndian PharmaceuIical company
globally,Ihe8IhlargesIglobalgenericplayerbymarkeIcapiIalizaIion,Ihe!JIhlargesIgenericpharmaceuIicalplayer
globally.TheCompanyconIinuesIowiInessheighIenedacIiviIyacrossallmarkeIs,beiIadvancedoremergingmarkeIs.
TheCompanyisasigniicanIplayerinIheCardiovascular,DiabeIology,AsIhma,PaediaIric,CNS,Gl,AnIilnecIiveand
NSAlDspaceandconIinuesIoholdgloballeadershipposiIionsinIheAnIiT8andCephalosporinsegmenIs.
The Company remains Ihe 5Ih largesI and asIesI growing Iop 5 generics player in Ihe US (5.J% markeI share by
prescripIions,lMSHealIh).TheCompanyisalsoIheasIesIgrowingIop!0genericpharmaceuIicalplayersin!apan
(ranked7Ih)andSouIhArica(ranked5Ih)lMSHealIh.
iii. Imported technology:
DuringIheyear,IheCompanydidnoIimporIanyspeciicIechnology.TheCompanydevelopedIechnologyIhrough
eorIsoiIsinhousePesearchandDevelopmenI.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
f) lnormaIionregardingexporIsacIiviIiesandrelaIedmaIIersiscoveredelsewhereinIhisAnnualPeporI.
g) LarningsinoreignexchangewasequivalenIIoH 44749.2Mn.andexpendiIureH !J4!!.5Mn.
Chairman
Mumbai,May8,20!J
ANNEXURE B TO
THE DIRECTORS REPORT
DETAILS OF STOCK OPTIONS AS ON MARCH 31, 2013
ln Ierms o Clause !2.! o Ihe SecuriIies and Lxchange 8oard o lndia (Lmployee SIock OpIion Scheme and Lmployee SIock
PurchaseScheme)Guidelines,!999,IheparIicularsoopIionsonMarchJ!,20!Jareasunder:
No. Description Details
a) OpIionsgranIedduringIheyear Plan No. of options
LSOP2005
SLSOP20!!
LSOP20!!
59500
!45400
699750
Total 904650
b) Thepricingormula Lxercise price or 854650 opIions is Ihe markeI price o Ihe shares, as
deinedunderIheSL8lGuidelines.
Lxercise price or 50000 opIions is 50% o Ihe markeI price o Ihe shares, as
deinedunderIheSL8lGuidelines.
c) OpIionsvesIedduringIheyear Plan No. of options
LSOP200J
LSOP2005
SLSOP2005
SLSOP20!!
LSOP20!!
220500
280500
!!90J7
40J42
4J2006
Total 1092385
d) OpIionsexercisedduringIheyear Plan No. of options
LSOP200J
LSOP2005
SLSOP2005
LSOP20!!
24904J
52!295
6J652
5J822
Total 887812
e) ToIalnumberosharesarisingasresulIoexerciseo
opIions
Plan No. of shares
LSOP200J
LSOP2005
SLSOP2005
LSOP20!!
24904J
52!295
6J652
5J822
Total 887812
) OpIionslapsedduringIheyear LapsedonaccounIoresignaIionoemployees:
Plan No. of options
LSOP200J
LSOP2005
SLSOP2005
LSOP20!!
7J!25
J6J75
6650
!46!J!
Total 262281
64 | Lupin Limited
g) VariaIionoIermsoopIions TherehasbeennovariaIioninIermsoIheopIionsgranIedduringIheyear,
romIhoseapprovedbyIheshareholders.
h) MoneyrealisedbyexerciseoopIions Plan Amount (H)
LSOP200J
LSOP2005
SLSOP2005
LSOP20!!
J50786!0.7!
55!95!97.00
!J50459!.!6
2452J994.J0
Total 128302393.17
i) ToIalno.oopIionsinorce Plan No. of options
LSOP200J
LSOP2005
SLSOP2005
SLSOP20!!
LSOP20!!
76J6!5
75!920
4J0!!9
J06780
2259047
Total 4511481
j) LmployeewisedeIailsoopIionsgranIedIo
i. SeniorManagerialPersonnel No. of Options Plan
Dr.KamalK.Sharma 50000 LSOP2005
ii. LmployeesIowhomopIionsgranIed
amounIingIo5%ormore,oIheIoIal
opIionsgranIedduringIheyear
No. of Options Plan
Dr.KamalK.Sharma 50000 LSOP2005
iii. LmployeesIowhomopIionsequalIoor
exceeding!%oIheissuedcapiIalhave
beengranIedduringIheyear
Nil
k) DiluIed earnings per share (LPS) pursuanI Io issue
o shares on exercise o opIions during Ihe year and
LSOPs ouIsIanding as on J!.0J.20!J, calculaIed
in accordance wiIh AccounIing SIandard (AS) 20
Larningspershare
H 28.07
l) Where Ihe company has calculaIed Ihe employee
compensaIion cosI using Ihe inIrinsic value o Ihe
sIock opIions, Ihe dierence beIween Ihe employee
compensaIion cosI so compuIed and Ihe employee
compensaIion cosI IhaI shall have been recognized
i iI had used Ihe air value o Ihe opIions, shall be
disclosed.TheimpacIoIhisdierenceonproiIsand
onLPSoIhecompany
NeIlncomewouldbelowerbyH 229.50mn.
AdjusIedLPS:
8asic : H 27.68
DiluIed : H 27.56
m) WeighIed average exercise prices and weighIed
averageairvaluesoopIionsdisclosedseparaIelyor
opIionswhoseexercisepriceeiIherequalsorexceeds
orislessIhanIhemarkeIpriceoIhesIock
(i)WeighIedaverageexercisepriceoopIionsgranIedduringIheyearwhose:
a.LxercisepriceequalsmarkeIprice:H 562.79
b.LxercisepriceisgreaIerIhanmarkeIprice:N.A.
c.LxercisepriceislessIhanIhemarkeIprice:H 29!.9J
(ii)WeighIedaverageairvalueoopIionsgranIedduringIheyearwhose:
a.LxercisepriceequalsmarkeIprice:H 265.57
b.LxercisepriceisgreaIerIhanmarkeIprice:N.A.
c.LxercisepriceislessIhanIhemarkeIprice:H J78.62
Variables Weighted Average Information
Plan ESOP 2005 ESOP 2005 SESOP 2011 SESOP 2011 SESOP 2011 ESOP 2011 ESOP 2011 ESOP 2011
GranIdaIe 06.!!.!2 22.02.!J 26.07.!2 22.02.!J !2.0J.!J !7.08.!2 24.08.!2 !7.!0.!2
PiskreeraIe(%) 8.!8 7.87 8.07 7.87 7.92 8.27 8.25 8.!6
LxpecIedlie(years) 5.50 6.25 6.25 6.25 6.25 6.25 6.25 6.25
VolaIiliIy(%) JJ.68 JJ.J6 J4.55 JJ.J6 JJ.28 J4.45 J4.J8 J4.25
Dividendyield(%) !.0J !.0J !.0J !.0J !.0J !.0J !.0J !.0J
SIockprice(NSL
closingraIe)H
588.05 600.60 565.55 600.60 600.00 570.50 58!.75 57!.75
Option Fair Value I 378.62 268.11 250.35 268.11 265.57 265.53 266.60 264.84
LSOP200J LupinLmployeesSIockOpIionPlan200J
LSOP2005 LupinLmployeesSIockOpIionPlan2005
SLSOP2005 LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan2005
SLSOP20!! LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan20!!
LSOP20!! LupinLmployeesSIockOpIionPlan20!!
Chairman
Mumbai,May8,20!J
n) DescripIion o Ihe meIhod and signiicanI assumpIions used during Ihe year Io esIimaIe Ihe air values o Ihe opIions, including Ihe
ollowingweighIedaverageinormaIion:
lair value calculaIed by using 8lackScholes opIion pricing model.
SIock price: The closing price on NSL as on Ihe daIe o granI has been considered or valuing Ihe opIions granIed.
VolaIiliIy: The hisIorical volaIiliIy o Ihe sIock Iill Ihe daIe o granI has been considered Io calculaIe Ihe air value o Ihe opIions.
Pisk ree raIe o reIurn: The risk ree inIeresI raIe on Ihe daIe o granI considered or Ihe calculaIion is Ihe inIeresI raIe
applicableoramaIuriIyequalIoIheexpecIedlieoIheopIionsbasedonIhezerocouponyieldcurveorGovernmenISecuriIies.
Time Io MaIuriIy: Time Io MaIuriIy / LxpecIed Lie o opIion is Ihe period or which Ihe Company expecIs Ihe opIions Io be live.
TheminimumlieoasIockopIionisIheminimumperiodbeorewhichIheopIionscannoIbeexercisedandIhemaximumlieis
IheperiodaIerwhichIheopIionscannoIbeexercised.
LxpecIed dividend yield: LxpecIed dividend yield has been calculaIed as an average o dividend yields or Ihe our inancial years
precedingIhedaIeoIhegranI.
66 | Lupin Limited
CORPORATE GOVERNANCE REPORT
[1] Companys Philosophy on Corporate Governance:
Your Company has a legacy o good CorporaIe
Governance wiIh iIs commiImenI Io values and eIhical
conducI o business. CorporaIe Governance signiies a
seIoprocesseswhichIheCompanyadheresIosoasIo
mainIainIhehighesIsIandardsoairness,Iransparency,
IrusIeeship, proessionalism and values IhaI are
embeddedacrossallaceIsoiIsacIiviIies.YourCompany
irmlybelievesIhaIiIisimperaIiveIoadopIIransparenI
accounIing policies, appropriaIe disclosure norms, besI
8oardpracIicesandhighsIandardsocorporaIeconducI
IowardsiIssIakeholders.
The Companys 8oard has a balanced mix o execuIive
and nonexecuIive independenI direcIors who are well
experienced, compeIenI and highly respecIed persons in
Iheirields.The8oardisacIiveinIheCompanysaairsand
commiIIedIoevolvingandadopIingIhebesIpracIiceso
CorporaIeGovernanceonanongoingbasis.
The Company has complied wiIh all Ihe mandaIory
requiremenIsasalsoaewnonmandaIoryrequiremenIs
prescribed by Clause 49 o Ihe LisIing AgreemenI.
The Company has implemenIed nonmandaIory
requiremenIs, such as ormaIion o PemuneraIion
CommiIIee and WhisIle 8lower Policy. Codes o
ConducIhavebeenadopIedbyIhedirecIorsandsenior
managemenI personnel and Ihey have been posIed on
IhewebsiIeoIheCompany(www.lupinworld.com).All
8oardmembersandseniormanagemenIpersonnelhave
airmed compliance wiIh Ihe codes o conducI or Ihe
yearendedMarchJ!,20!J.PursuanIIoClause49(l)(D)
o Ihe LisIing AgreemenI, requisiIe declaraIion Io Ihis
eecIhasbeenmadebyIheManagingDirecIor.
A WhisIle 8lower Policy has been insIiIuIed across
Ihe Company and iIs subsidiaries IhaI relecIs Ihe
organizaIionalvaluesandguidingprinciples.Lmployees
are encouraged/empowered Io reporI any violaIions
o or conIradicIions in Ihis policy in sIricIesI possible
conidence.TheWhisIle8lowerPolicylaysdownIherules
andproceduresunderwhichemployeescouldcomplain
oanysuspecIedwrongdoingsorraudulenIpracIicesby
any oIher employee, irrespecIive o Iheir sIa grade or
operaIing level. The Company views whisIle blowers as
a wiIness Io an evenI and Iakes compleIe responsibiliIy
IoproIecIsuchanindividualagainsIanydiscriminaIion,
persecuIion, reIaliaIion or reIribuIion. All complainIs
are dealI wiIh diligence and care and responded Io
in a prompI and proessional manner by Ihe Oice o
Ihe Ombudsperson, which is Ihe inal auIhoriIy or
invesIigaIion and decisionmaking in such maIIers.
This Ombudsperson CommiIIee comprises Iwo senior
execuIivesandanexecuIivedirecIor.
TheCompanyhassoundsysIemsoinIernalchecksand
balances which are evaluaIed and updaIed aI regular
inIervals. Kavach, an inormaIion securiIy policy, was
implemenIedIocreaIeawarenessabouIvarioussecuriIy
concerns. lI broadly encompasses proIecIing asseIs,
evaluaIingsecuriIyrisksasalsoensuringcompliancesona
susIainablebasis.TheCompanyhasacomprehensiverisk
managemenI policy, wherein key risks are assessed and
alsoraIedinIermsoIheirprobabiliIyandimpacIonIhe
organisaIion.PisksaredeliberaIeduponaImanagemenI
meeIings or Iaking remedial measures. Pisks are
idenIiied by organizing inIerviews, inIeracIive sessions
and workshops aI dierenI levels aI various locaIions.
The sysIem moniIors risks, operaIional eiciency, likely
impacI o risks and eecIiveness o compliance wiIh
applicable laws. lnIernal audiIor prepares process low
charIs o each business process, ineIunes risk grading
meIhodology and inalises risk score calculaIions. There
was no audiI qualiicaIion in Ihe inancial sIaIemenIs
or Ihe year ended March J!, 20!J and Ihe Company
conIinues Io be in Ihe regime o unqualiied inancial
sIaIemenIs.
A deIailed ManagemenI Discussion and Analysis reporI
ormsparIoIhisAnnualPeporI.
Sl.
No.
Name of the director Whether
Promoter/
Executive/
Independent
No. of Board Meetings
during the year
Attendance
at the last
AGM
Number of
directorships
of other
companies
Member/
Chairman of
committees
other than
the Company
Held Attended
!. Dr.Desh8andhuGupIa,Chairman P.&L.D. 4 4 Yes !0
2. Dr.KamalK.Sharma,Managing Director L.D. 4 4 Yes 6
J. Mrs.M.D.GupIa,Executive Director P.&L.D. 4 4 Yes !0
4. Ms.ViniIaGupIa P.&NL.D. 4 4 Yes 2
5. Mr.NileshGupIa,Executive Director P.&L.D. 4 4 Yes 6
6. Dr.VijayKelkar l.NL.D. 4 J Yes 9 J/
7. Mr.PichardZahn l.NL.D. 4 J Yes !
8. Mr.P.A.Shah l.NL.D. 4 4 Yes !8 9/4
9. Dr.K.U.Mada l.NL.D. 4 4 Yes J 5/2
!0. Mr.D.K.ConIracIor(up to 23.10.2012) l.NL.D. J J Yes 4 2/
!!. Mr.DileepC.Choksi(w.e.f. 23.10.2012) l.NL.D. 2 2 N.A. 9 7/J
Notes:
(a)P. & L.D.: PromoIer & LxecuIive DirecIor, L.D.:
LxecuIive DirecIor, P. & NL.D.: PromoIer & Non
LxecuIive DirecIor, l. NL.D.: lndependenI Non
LxecuIiveDirecIor.
(b) lnIhecaseoMr.P.A.Shah,direcIorshipsincludea
oreigncompanyandourAlIernaIedirecIorshipso
publiclimiIedcompanies.
(c)Mrs. M. D. GupIa is Ihe wie o Dr. Desh 8andhu
GupIa, Ms. ViniIa GupIa Iheir daughIer and
Mr.NileshGupIaIheirson.
(d) Membership/Chairmanship o CommiIIees includes
onlyIhoseoIheAudiICommiIIeeandIhelnvesIors
GrievancesCommiIIee.
(e) Mr. D. K. ConIracIor sIepped down rom Ihe
direcIorshipoIheCompanyw.e..OcIober2J,20!2
onhealIhgrounds.Mr.DileepC.ChoksiwasappoinIed
as an AddiIional DirecIor w.e.. OcIober 2J, 20!2
and holds oice up Io Ihe daIe o Ihe orIhcoming
AnnualGeneralMeeIing.NoIicesalongwiIhrequisiIe
deposiIs pursuanI Io Ihe provisions o SecIion 257
o Ihe Companies AcI, !956, have been received
romcerIainmembersproposingIheappoinImenIo
Mr.ChoksiasaDirecIoroIheCompany,whichwill
be considered, aI Ihe orIhcoming Annual General
MeeIing.
Board Meetings
The8oardoDirecIorsoverseesmanagemenIperormance
soasIoensureIhaIIheCompanyadheresIoIhehighesI
sIandardsocorporaIegovernance.The8oardprovides
leadership and guidance Io Ihe managemenI and
evaluaIes Ihe eecIiveness o managemenI policies. lI
gives sIraIegic direcIions or achieving seI goals. 8oard
meeIingdaIesareinalisedinconsulIaIionwiIhalldirecIors
and agenda papers, accompanied by comprehensive
noIesoniIemsunderconsideraIion,arecirculaIedwellin
advancebeoreIhemeeIingdaIesoIhaIIhe8oardcould
IakeinormeddecisionsanddischargeiIsuncIions.The
8oardisregularlyapprisedoimporIanIbusinessrelaIed
inormaIion and developmenIs. DeIailed presenIaIions
are made by key managemenI personnel and business
heads on imporIanI maIIers. 8oard Members express
opinions and bring up maIIers or discussions aI Ihe
meeIings.MinuIesoIhe8oardmeeIingsarecirculaIedIo
alldirecIorsinadvanceandconirmedaIIhesubsequenI
meeIings.CopiesominuIesoIhevariousCommiIIees
oIhe8oard,minuIeso8oardmeeIingsosubsidiaries
o Ihe Company and Compliance PeporI in respecI o
variouslawsandregulaIionsapplicableIoIheCompany
areIabledaI8oardmeeIings.
Details of Board Meetings
The 8oard meeIs aI leasI our Iimes a year and Ihe
Iimegap beIween Iwo meeIings is noI more Ihan our
monIhs, which is in compliance wiIh Clause 49 o Ihe
LisIingAgreemenI.DuringIheyear,our8oardmeeIings
wereheldonMay!0,20!2,!uly24,20!2,OcIober2J,
20!2 and !anuary J!, 20!J. The 8oard also passed by
circulaIion Iwo resoluIions daIed SepIember 27, 20!2
andDecember!8,20!2.
[2] Board of Directors:
The sIrengIh o Ihe 8oard as on March J!, 20!J was
Ien, o which, Ihree are execuIive promoIerdirecIors,
one is a nonexecuIive promoIer direcIor, anoIher an
execuIive direcIor and ive are independenI direcIors.
ThisisinconormiIywiIhClause49(l)(A)(ii)oIheLisIing
AgreemenI.TherequisiIeparIicularsaregivenbelow:
68 | Lupin Limited
Remuneration to Executive Directors
Remuneration during 2012-13 (H million)
Particulars of Remuneration Dr. Desh Bandhu Gupta,
Chairman
Dr. Kamal K. Sharma,
Managing Director
Mrs. M. D. Gupta,
Executive Director
Mr. Nilesh Gupta,
Executive Director
Fixed Component:
Salary J!.80 49.!6 J.60 28.J9
8eneiIs/Allowances 5.02 6.04 0.70 0.8J
ProvidenIlund/SuperannuaIion 4.86 !0.20 0.97 6.02
Variable Component:
PerormanceLinkedlncenIive 25.!8 !4.86
Commission|NoIe(b) !78.00
SIockOpIions J2.78
Total: 219.68 123.36 5.27 50.10
Remuneration to Non - Executive Directors
Sl.
No.
Name of the director No. of equity
shares held
Remuneration during 2012-13 (H million)
Sitting fees Commission
[Note (c)]
Total
!. Ms.ViniIaGupIa 5!600 0.08 0.08
2. Dr.VijayKelkar Nil 0.08 J.00 J.08
J. Mr.PichardZahn Nil 0.06 2.J0 2.J6
4. Mr.P.A.Shah !5000 0.!! J.00 J.!!
5. Dr.K.U.Mada JJ50 0.J0 2.50 2.80
6. Mr.D.K.ConIracIor(up to 23.10.2012) !JJ00 0.!7 0.4J 0.60
7. Mr.DileepC.Choksi(w.e.f. 23.10.2012) Nil 0.!0 !.!0 !.20
Notes:
(a) Dr. Desh 8andhu GupIa, Chairman, Dr. Kamal K.
Sharma, Managing DirecIor, Mrs. M. D. GupIa,
LxecuIive DirecIor and Mr. Nilesh GupIa, LxecuIive
DirecIor, are in wholeIime employmenI o Ihe
Company and Iheir employmenI is conIracIual in
naIure. While Dr. Desh 8andhu GupIa and Mrs. M.
D. GupIa hold oice up Io December J!, 20!5,
Dr. Sharma holds oice up Io SepIember 28, 20!5
and Mr. Nilesh GupIa holds oice up Io OcIober 7,
20!J.
(b)Dr. Desh 8andhu GupIa is enIiIled Io a commission
_ !% o Ihe neI proiI, calculaIed in accordance
wiIh Ihe provisions o SecIions J49 and J50 o Ihe
CompaniesAcI,!956whichwouldbepaidaIerIhe
membersapproveIheaudiIedaccounIsorIheyear
ended,MarchJ!,20!J,aIIheorIhcomingAnnual
GeneralMeeIing.
(c) ThemembersvideaSpecialPesoluIionbyposIalballoI,
IheresulIowhichwasannouncedonDecember2!,
20!0,approvedpaymenIocommissionIoIhenon
execuIive direcIors, noI exceeding in Ihe aggregaIe
0.5%p.a.oIheCompanysneIproiI,compuIedin
Ihe manner laid down by Ihe provisions o SecIions
!98,J49andJ50andoIherapplicableprovisions,i
any,oIheCompaniesAcI,!956,oraperiodoive
yearscommencingromApril!,20!0.The8oardis
auIhorisedIodecideuponIheeligibiliIycriIeriaand
Ihe quanIum o commission payable Io each non
execuIivedirecIor.AnamounIoH !2.JJmillionhas
beenprovidedIowardscommissionpayableIonon
execuIivedirecIorsorIheyear20!2!Jwhichwould
be paid aIer Ihe members approve Ihe audiIed
accounIsorIheyearended,MarchJ!,20!J,aIIhe
orIhcomingAnnualGeneralMeeIing.
(d) On November 6, 20!2, 50,000 sIock opIions were
granIedIoDr.KamalK.SharmaaIanexerciseprice
o H 29!.9J (being 50% o Ihe markeI price) under
Ihe Lupin Lmployees SIock OpIion Plan 2005. The
vesIing period o Ihe opIions is !2 monIhs and Ihe
same are exercisable wiIhin Ien years rom Ihe daIe
oIhegranI.
(e) DuringIheyear,M/s.Craword8ayley&Co.,SoliciIors
&AdvocaIes,owhichMr.P.A.Shah,nonexecuIive
direcIor, is a senior parIner, was paid proessional
ees aggregaIing H 0.!2 million, which consIiIuIe
less Ihan one percenI o Ihe IoIal revenues o Ihe
irm and an insigniicanI racIion o Ihe Companys
List of other directorships Chairman/Member of the Committees of the board of the
companies on which he is a director
KyowaPharmaceuIicallndusIryCo.,LId.,!apan,Director
GenericHealIhPIyLId.,AusIralia,Director
PharmaDynamics(ProprieIary)LId.,SouIhArica,
Director
LupinHealIhcareLId.,Director
laisalinancialPvI.LId.,Director
TempleIreeProperIiesPvI.LId.,Director
List of other directorships Chairman/Member of the Committees of the board of the

companies on which she is a director
LupinPharmaceuIicalslnc.,USA,Group President and
Managing Director
KyowaPharmaceuIicallndusIryCo.LId.,!apan,Director
Mr. Nilesh Gupta

Mr. Nilesh GupIa is a chemical engineer rom UDCT,
MumbaiandagraduaIewiIhhonoursromIheWharIon
School, USA specializing in healIhcare, sIraIegic
managemenIandinance.HisdiverseporIolioincludes
lnIellecIualProperIy,SIraIegy&ManagemenI,Pesearch
&DevelopmenI,ProjecIs,ManuacIuring,QAandSupply
Chain ManagemenI. Mr. GupIa has demonsIraIed
exemplary perormance in inIegraIing and leading Ihis
diversiiedporIolioandablyconIribuIingIoIhegrowIh
and proiIabiliIy o Ihe Advanced markeIs (US & LU)
in parIicular and Ihe Company in general. He direcIed
IhelPsIraIegyoIheCompanyIowardsachievingniche
posiIion or Ihe chosen producIs which enabled Ihe
Company achieve susIainable revenue/proiI. Under his
leadership,IheIeamensuredlawlessandimmaculaIely
Iimed launches o several producIs in Ihe inIernaIional
markeI.HeisasoundbusinessleaderandIeambuilder.
Mr.GupIaispresenIlyLxecuIiveDirecIoroIheCompany.
The8oardaIiIsmeeIingheldonMay8,20!JdecidedIo
appoinIhimasIheManagingDirecIorw.e..SepIember
!,20!J,subjecIIonecessaryapprovals.
Ms. Vinita Gupta
Ms. ViniIa GupIa, an M.8.A. rom Ihe !. L. Kellogg
GraduaIeSchooloManagemenI,USAandapharmacy
graduaIeromIheUniversiIyoMumbai,wasresponsible
ordevelopingIheCompanysenIrysIraIegyinIoNorIh
America and Lurope. Ms. ViniIa has been responsible
or esIablishing Ihe Companys sIrong presence in Ihe
US, Ihe largesI markeI o Ihe Company and Lurope by
orgingallianceswiIhseveralmarkeIinganddisIribuIion
parIners. She has esIablished Ihe Companys brand
and generic business in Ihe US and also oversees Ihe
Companys US lDA ilings. Ms. ViniIa is presenIly
designaIedGroupPresidenI&ChieLxecuIiveOicero
Lupin PharmaceuIicals, lnc., USA, (LPl) a whollyowned
subsidiary o Ihe Company. Today, LPl is a successul
specialIy pharmaceuIical company in Ihe US wiIh a
growing presence in Ihe branded as well as generic
pharmaceuIicalindusIry.
The 8oard o DirecIors aI iIs meeIing held on May 8,
20!J appoinIed Ms. ViniIa as Chie LxecuIive Oicer
o Ihe Company w.e.. SepIember !, 20!J, subjecI Io
necessaryapprovals.
Iurnover. The Company has Iaken a legal opinion
on Ihe subjecI conirming IhaI Ihe said irm does
noI have a maIerial associaIion wiIh Ihe Company
and paymenI o Ihe ees is noI maIerial enough Io
impingeonIheindependenceoMr.Shah.
Brief profiles, other directorships and committee
memberships etc. of directors seeking appointment/
re-appointment at the 31st Annual General Meeting: -
Dr. Kamal K. Sharma
Dr. Kamal K. Sharma is a chemical engineer rom Ihe
lndianlnsIiIuIeoTechnology(llT),KanpurwiIhaposI
graduaIe diploma in indusIrial managemenI rom Ihe
!amnalal8ajajlnsIiIuIeoManagemenISIudies,Mumbai
andaPh.D.inLconomicsromllT,Mumbai.Hehasalso
compleIedanadvancedmanagemenIprogrammerom
Harvard 8usiness School, 8osIon. Dr. Sharma has vasI
indusIryexperiencespanningoverIhreedecadesandhas
heldseveralseniormanagemenIposiIionsinIheieldso
projecIs,operaIions,corporaIedevelopmenIandgeneral
managemenIinpharmaandchemicalindusIries.
Dr. Sharma is presenIly Managing DirecIor o Ihe
Company.The8oardaIiIsmeeIingheldonMay8,20!J
elevaIedhimasViceChairmanw.e..SepIember!,20!J,
subjecIIonecessaryapprovals.
70 | Lupin Limited
List of other directorships Chairman/Member of the Committees of the Board of the
lClClLombardGenerallnsuranceCompanyLimiIed,Director
lClClPrudenIialAsseIManagemenICompanyLimiIed,Director
NSL.lTLimiIed,Director
PelianceGeneMedixPlc.,Director
JilnoIechLimiIed,Director
lClClHomelinanceCompanyLimiIed,Director
AceDerivaIivesandCommodiIyLxchangeLimiIed,Director
DaIamaIicsGlobalServicesLimiIed,Director
MaaIlalCipherspacePrivaIeLimiIed,Director
lClClLombardGenerallnsuranceCompanyLimiIed,
Chairman of Audit Committee.
NSL.lTLimiIed,Chairman of Audit Committee.
lClClPrudenIialAsseIManagemenICompanyLimiIed,
Member of Audit Committee.
PelianceGeneMedixPlc.,Member of Audit Committee.
JilnoIechLimiIed,Chairman of Audit Committee.
lClClHomelinanceCompanyLimiIed,
AceDerivaIivesandCommodiIyLxchangeLimiIed,
[3] Audit Committee:
The AudiI CommiIIee comprises Dr. K. U. Mada
(Chairman) and Mr. Dileep C. Choksi (w.e.. OcIober
2J, 20!2), independenI direcIors, and Dr. Kamal K.
Sharma,ManagingDirecIor.Mr.P.V.SaIam,Company
SecreIary&ComplianceOicer,acIsasIheSecreIaryo
IheCommiIIee.Mr.D.K.ConIracIor,whohadresigned
romIhedirecIorshipoIheCompanyw.e..OcIober2J,
20!2,onhealIhgrounds,wasMemberoIheCommiIIee.
Mr.ChoksiwasappoinIedasMemberoIheCommiIIee
w.e.. OcIober 2J, 20!2 in place o Mr. ConIracIor.
Dr. Mada, Chairman o Ihe CommiIIee, aIIended Ihe
lasI Annual General MeeIing o Ihe members held
on !uly 24, 20!2. All Ihe members o Ihe CommiIIee
are inancially liIeraIe. While Dr. Mada is an eminenI
economisI and developmenI banker, Mr. Choksi is a
leadingCharIeredAccounIanI.TheCommiIIeeaddresses
maIIers perIaining Io reliabiliIy o inancial sIaIemenIs,
appropriaIeness o audiI IesI checks, inIernal conIrols
andadequacyoprovisionsorliabiliIies.TheCommiIIee
acIsasalinkbeIweensIaIuIoryaudiIors,inIernalandcosI
audiIorsandIhe8oard.ThemeeIingsoIheCommiIIee
are aIIended by Ihe inance head, represenIaIives o
accounIs,andsIaIuIory,inIernalandcosIaudiIors.The
CommiIIee lays emphasis on adequaIe disclosures and
compliancewiIhallrelevanIsIaIuIes.
The CommiIIee perorms Ihe uncIions enumeraIed in
Clause49oIheLisIingAgreemenIandSecIion292Ao
IheCompaniesAcI,!956.ThemaIIersdeliberaIedupon
andreviewedbyIheCommiIIeeinIeraliainclude:
!) OversighI o Ihe Companys inancial reporIing
processandIhedisclosureoiIsinancialinormaIion
Io ensure IhaI Ihe inancial sIaIemenIs are correcI,
suicienIandcredible.
2) Pecommending Io Ihe 8oard, Ihe appoinImenI o
sIaIuIoryaudiIors,ixaIionoaudiIeesandapproval
opaymenIsoranyoIherservicesrenderedbyIhem.
J) Peviewing wiIh Ihe managemenI Ihe quarIerly and
annualinancialsIaIemenIsbeoresubmissionIoIhe
8oardorapprovalwiIhparIicularreerenceIo:
Mr. Dileep C. Choksi
Mr.DileepC.ChoksiisaleadingCharIeredAccounIanI,
qualiied lawyer and a CosI AccounIanI wiIh over J5
yearsoexperience.HisareasospecialisaIionincludeIax
planningandsIrucIuringordomesIicandinIernaIional
clienIs, including expaIriaIes, inalising collaboraIions
and joinI venIures, execuIive advisory and decision
supporI, corporaIe resIrucIuring wiIh a ocus on sIarI
ups, Iurnaround and change managemenI sIraIegies
and analysing Iax impacI o various insIrumenIs.
Mr.Choksiadvisessomeolndiaslargebusinesshouses
on various sIraIegic maIIers and mulIinaIional clienIs
on cross border sIrucIuring. Mr. Choksi was Ihe ormer
!oinIManagingParIneroDeloiIIeinlndia.HehasseIup
C. C. Chokshi Advisors PvI. LId., Ihe acIiviIies o which
aim Io provide compleIe soluIions or all business
requiremenIs.
List of other directorships Chairman/Member of the Committees of the Board of the
KyowaPharmaceuIicallndusIryCo.LId.,!apan,Director
LupinHealIhcareLId.,Director
LupinlnIernaIionalPvI.LId.,Director
LupinPerormanceChemicals&PealLsIaIeLId.,
Director
PahaslnvesImenIsPvI.LId.,Director
ZymaLaboraIoriesLId.,Director

a) maIIersrequiredIobeincludedinIheDirecIors
PesponsibiliIy SIaIemenI included in Ihe 8oards
PeporIinIermsoClause(2AA)oSecIion2!7o
IheCompaniesAcI,!956,
b) changes, i any, in accounIing policies and
pracIicesandreasonsIhereor,
c) majoraccounIingenIriesinvolvingesIimaIesbased
onIheexerciseojudgmenIbymanagemenI,
d) signiicanI adjusImenIs made in Ihe inancial
sIaIemenIsarisingouIoaudiIindings,iany,
e) compliance wiIh lisIing and oIher legal
requiremenIsrelaIingIoinancialsIaIemenIs,
) disclosureorelaIedparIyIransacIions,and
g) qualiicaIionsinIhedraIaudiIreporI,iany.
4) Peviewing Ihe inancial sIaIemenIs o subsidiary
companies as also Ihe consolidaIed inancial
sIaIemenIs, including invesImenIs made by Ihe
subsidiarycompanies.
5) PeviewingwiIhIhemanagemenI,Iheperormance
osIaIuIoryandinIernalaudiIorsandadequacyo
IheinIernalconIrolsysIems.
6) PeviewingIheadequacyoinIernalaudiIuncIion,
including Ihe sIrucIure o Ihe inIernal audiI
deparImenI, iIs sIaing, reporIing sIrucIure,
coverageandrequencyoaudiIs.
7) Discussion wiIh Ihe inIernal audiIors on Iheir
signiicanIindingsandollowupIhereon.
8) Peviewing Ihe indings o inIernal audiIors and
reporIingIhemIoIhe8oard.
9) DiscussionwiIhsIaIuIoryaudiIorsbeoreIheaudiI
commences as Io Ihe naIure and scope o audiI
as also posIaudiI discussion Io ascerIain areas o
concern.
!0) Looking inIo Ihe reasons or any deaulIs in Ihe
paymenIIodeposiIors,debenIureholders,members
(incaseononpaymenIodeclareddividends)and
crediIors.
!!) Peview Ihe uncIioning o Ihe WhisIle 8lower
mechanism.
!2) PeviewanddiscusswiIhIhemanagemenIIhesIaIus
andimplicaIionsomajorlegalcases.
!J) Pecommend Io Ihe 8oard, Ihe appoinImenI o a
CosIAccounIanIwiIhinIhemeaningoIheCosI&
WorksAccounIanIsAcI,!959IoconducIaudiIo
cosIrecordsoIheCompanyincompliancewiIhIhe
provisions o Ihe Companies AcI, !956 and rules
madeIhereunder.
!4) Carrying ouI such oIher uncIions as may be
menIioned in Ihe Ierms o reerence o Ihe AudiI
CommiIIee.
ln addiIion Io Ihe above, Ihe CommiIIee reviews Ihe
managemenI discussion and analysis, sIaIemenIs o
signiicanI relaIed parIy IransacIions, managemenI
leIIerseIc.
Details of Audit Committee Meetings
DuringIheyear,sevenmeeIingsoIheAudiICommiIIee
were held on April 25, 20!2, May !0, 20!2, !uly 24,
20!2, OcIober 2J, 20!2, December !8, 20!2, !anuary
J!,20!JandMarch20,20!JandIheaIIendancewas
asollows:
[4] Investors Grievances Committee:
ThelnvesIorsGrievancesCommiIIeecomprisesDr.Vijay
Kelkar,Chairman(w.e..OcIober2J,20!2)andDr.K.U.
Mada,independenIdirecIors.Mr.P.V.SaIam,Company
SecreIary&ComplianceOicer,acIsasIheSecreIaryo
Ihe CommiIIee. Mr. D. K. ConIracIor was Chairman o
IheCommiIIeeupIoOcIober2J,20!2.Dr.VijayKelkar
was appoinIed as Member/Chairman o Ihe CommiIIee
w.e..OcIober2J,20!2inplaceoMr.ConIracIor.
The CommiIIee regularly reviews Ihe uncIioning o Ihe
lnvesIors Services DeparImenI covering all aceIs o
operaIions,includingIranseroshares,complianceswiIh
regulaIoryprovisions,implemenIaIionoemployeesIock
opIionsplans,acIiviIiesrelaIedIodividenddisbursemenI
and deposiIory operaIions. The CommiIIee also closely
moniIors invesIor grievances redressal sysIem o Ihe
DeparImenI.
TheCompanyreceivedandresolved25complainIsrom
shareownersduringIheyear.AsonMarchJ!,20!J,no
complainIsremainedpending/unaIIendedandnoshare
Iransersremainedpendingorover!5days,duringIhe
year.
Details of Investors Grievances Committee Meetings
DuringIheyear,IwomeeIingsoIhelnvesIorsGrievances
CommiIIeewereheldonSepIember26,20!2andMarch
20,20!JandIheaIIendancewasasunder:
Sl. No. Name of the director No. of Meetings
Held Attended
a. Dr.K.U.Mada,Chairman 7 7
b. Dr.KamalK.Sharma 7 6
c. Mr.D.K.ConIracIor(up to 23.10.2012) 4 4
d. Mr.DileepC.Choksi(w.e.f. 23.10.2012) J J
Held Attended
a. Dr.VijayKelkar,Chairman(w.e.f. 23.10.2012) ! !
b. Mr.D.K.ConIracIor,Chairman (up to 23.10.2012) ! !
c. Dr.K.U.Mada 2 2
72 | Lupin Limited
Held Attended
a. Dr.K.U.Mada,Chairman J J
b. Mr.P.A.Shah J J
The CommiIIee passed by circulaIion ive resoluIions daIed AugusI !7, 20!2, AugusI 24, 20!2, OcIober !7, 20!2,
November6,20!2andMarch!2,20!J.
[6] General Body Meetings:
DeIailsoIhelasIIhreeAnnualGeneralMeeIings:
Number of shareholders vis--vis number of complaints:
0
200
400
600
800
!000
!200
2
0
0
2
0
J
2
0
0
6
0
7
2
0
0
4
0
5
2
0
0
8
0
9
2
0
!
!
!
2
2
0
0
J
0
4
2
0
0
7
0
8
2
0
!
0
!
!
2
0
0
5
0
6
2
0
0
9
!
0
2
0
!
2
!
J
No.oshareholders(inhundreds) No.ocomplainIs
786.86
548
229
!90
!26
!07
76
52 45
J7
27 25
5!J.00
468.9!
404.29
45!.7J
506.28
4J!.99
460.J0
849.!6
9!!.6J
!0J8.64
[5] Remuneration Committee:
ThePemuneraIionCommiIIeecomprisesDr.K.U.Mada
(Chairman) and Mr. P. A. Shah, boIh independenI
direcIors. Mr. P. V. SaIam, Company SecreIary &
Compliance Oicer, is Ihe SecreIary o Ihe CommiIIee.
The CommiIIee perorms uncIions enumeraIed in
Clause 49 o Ihe LisIing AgreemenI and Schedule Xlll
oIheCompaniesAcI,!956.TheCommiIIeereviewsas
well as recommends Io Ihe 8oard, Ihe remuneraIion o
execuIivedirecIors.GranIosIockopIionsIoemployees
o Ihe Company and iIs subsidiaries is also approved
by Ihe CommiIIee. The CommiIIee recommends Ihe
remuneraIion package aIer considering acIors, such
as experience, experIise, leadership qualiIies, posiIion,
responsibiliIies shouldered by Ihe individual, volume o
Companys business as well as proiIs earned by iI. The
Company ollows a markeIlinked remuneraIion policy.
The Company has ormulaIed employees sIock opIions
plansIoaIIracI,reIainandrewardIalenIedandqualiied
personnelandcreaIeasenseobelongingamongIhem.
Details of the Remuneration Committee Meetings
During Ihe year, Ihree meeIings o Ihe PemuneraIion
CommiIIee were held on !uly 26, 20!2, OcIober 2J,
20!2 and lebruary 22, 20!J and Ihe aIIendance was
asunder:
Year Day, Date and Time Location No. of Special
Resolutions passed
2009!0 Wednesday,!uly28,20!0aI2.J0p.m. PangShardaNaIyamandir,8andraPeclamaIion,
8andra(WesI),Mumbai400050
20!0!! Wednesday,!uly27,20!!aI2.J0p.m. PangShardaNaIyamandir,8andraPeclamaIion,

20!!!2 Tuesday, !uly 24, 20!2 aI 2.J0 p.m. PangShardaNaIyamandir,8andraPeclamaIion,


NobusinesswasrequiredIobeIransacIedIhroughposIal
balloI aI Ihe above meeIings. Similarly, no business is
required Io be IransacIed Ihrough posIal balloI aI Ihe
orIhcomingAnnualGeneralMeeIing.
During Ihe year, an Ordinary PesoluIion wiIh a
majoriIy o 99.68% was passed by posIal balloI or Ihe
reappoinImenI o Dr. Kamal K. Sharma or a period
o Ihree years, eecIive SepIember 29, 20!2, as Ihe
Managing DirecIor or oIher muIually agreed capaciIy
andapproveIheremuneraIionpayableIohim.
Ms.Neena8haIia,pracIicingCompanySecreIary,acIedas
IheScruIiniserorconducIingIheposIalballoI.Procedure
prescribedbySecIion!92AoIheCompaniesAcI,!956
read wiIh Ihe Companies (Passing o Ihe PesoluIion by
PosIal8alloI)Pules,20!!,wereollowedorconducIing
Ihe said balloI. PosIal balloI orms wiIh ull parIiculars
o shareholders duly prinIed Ihereon were senI in sel
addressed posIage prepaid envelopes IogeIher wiIh
Ihe noIice and explanaIory sIaIemenI speciying Ihe
resoluIionproposedIobepassedbyposIalballoI.
TheCompanyoeredevoIingaciliIyIoiIsshareholders
Ihrough Ihe evoIing sysIem o Ihe NaIional SecuriIies
DeposiIory LimiIed (NSDL) as an alIernaIe. Lmails
conIaining deIailed procedure or evoIing were senI
Io Ihose Members whose email lDs are regisIered or
receipIodocumenIsinelecIronicmodeunderIheGreen
lniIiaIiveoIheMinisIryoCorporaIeAairs,GovernmenI
olndia.Membersholdingsharesinphysical/demaIorm
couldopIIoexercisevoIingrighIsIhroughphysicalballoI
or evoIing. Shareholders were requesIed Io reIurn Ihe
duly compleIed posIal balloI orms Io Ihe ScruIiniser
wiIhin Ihe prescribed Iime. Similarly evoIing could be
exercisedupIoIheprescribedIime.PhysicalposIalballoI
orms received rom shareholders were duly numbered,
segregaIed and scruIinized by Ihe ScruIiniser. A PeporI
wasreceivedromIheNSDLonevoIing.TheScruIiniser
consideredvalidphysicalposIalballoIormsreceivedas
alsoIhedaIareceivedromIheNSDLinherPeporI,which
washandedoverIoIheChairmanoIheCompanywho
announcedIheresulIs.PesulIsoIheposIalballoIwere
prompIlydisplayedonIhenoIiceboardaIIheregisIered
oiceoIheCompany,publishedinIhenewspapersand
hoisIedonIheCompanyswebsiIe.
[7] Disclosure on materially significant related party
transactions:
During Ihe year under review, Ihe Company did noI
haveanymaIeriallysigniicanIrelaIedparIyIransacIions
wiIh iIs promoIers, direcIors and/or Iheir relaIives,
managemenIeIc.whichmayhavepoIenIialconlicIwiIh
IheinIeresIsoIheCompany.SIaIemenIsoIransacIions
wiIh relaIed parIies in Ihe ordinary course o business
andmaIerialindividualIransacIionswiIhrelaIedparIies,
which were noI in Ihe normal course o business, are
placed aI AudiI CommiIIee meeIings and reviewed by
IheCommiIIee.DeIailsoIransacIionsinwhichdirecIors
are inIeresIed are recorded in Ihe PegisIer o ConIracIs
mainIained pursuanI Io Ihe provisions o SecIion J0!
o Ihe Companies AcI, !956 and Ihe same is placed aI
every8oardmeeIingandsignedbyIhedirecIorspresenI.
During Ihe year, M/s. Craword 8ayley & Co., SoliciIors
&AdvocaIes(owhichMr.P.A.ShahisaseniorparIner)
waspaidH0.!2millionIowardsproessionalees.AparI
rom siIIing ees, commission and proessional ees,
Ihere is no pecuniary IransacIion wiIh nonexecuIive
direcIorsoIheCompany.lncompliancewiIhAccounIing
SIandardAS!8,deIailsorelaIedparIyIransacIionsare
disclosedinIhenoIesIoaccounIsIhaIormparIoIhe
8alance SheeI and Ihe SIaIemenI o ProiI and Loss or
Iheyear.
TheCompanyhascompliedwiIhallrequiremenIsoIhe
SIockLxchanges,SL8landoIhersIaIuIoryauIhoriIieson
allmaIIersperIainingIocapiIalmarkeIsduringIhelasI
IhreeyearsandIheyhavenoIimposedanypenalIieson,
orpassedanysIricIuresagainsIIheCompany.
[8] Means of communication:
QuarIerly and annual inancial resulIs o Ihe Company
aresubmiIIedIoIhesIockexchangesimmediaIelyaIer
Ihe8oardapprovesIhem.ThereaIer,Iheyarepublished
inprominenILnglish(TheLconomicTimes,allediIions)
and MaraIhi (MaharashIra Times, Mumbai ediIion)
newspapers.TheresulIsarealsoposIedonIheCompanys
websiIeviz.www.lupinworld.com.PursuanIIoClause52
oIheLisIingAgreemenI,annualreporI,inancialresulIs,
quarIerly corporaIe governance compliance reporIs and
quarIerly shareholding paIIern are uploaded on Ihe
CorporaIe liling and DisseminaIions SysIem websiIe
www.corpiling.co.in. The Companys websiIe also
displaysoicialnewsreleasesandpresenIaIionsmadeIo
insIiIuIionalinvesIorsandanalysIs.DisclosurespursuanI
IovariousclausesoIheLisIingAgreemenIareprompIly
communicaIedIoIhesIockexchanges.
[9] General Members information:
INVESTORS SERVICES DEPARTMENT AT THE SERVICE
OF THE ESTEEMED INVESTORS
lnvesIors Services DeparImenI (lSD) locaIed aI Ihe
PegisIered Oice o Ihe Company is dedicaIed Io iIs
shareowners. LxpediIious response Io Ihe invesIors
queries/complainIsandmainIaininghighesIsIandards
oregulaIorycompliancesrelaIedIosharesareIheIhrusI
areasoIhelSD.
AccenIandocusolSDisIowardsprovidinginnovaIive
andproacIiveservicesIoiIsshareowners,besidesprompI
74 | Lupin Limited
adherence Io regulaIory provisions. lSD has ineIuned
iIs service delivery mechanism over Ihe years and is
commiIIedIhroughiIsproicienIandexperiencedIeam
IoachieveiIsobjecIives.
Your Company has esIablished direcI connecIiviIy
wiIh boIh Ihe deposiIories viz. Ihe NaIional SecuriIies
DeposiIory LimiIed (NSDL) and Ihe CenIral DeposiIory
Services (lndia) LimiIed (CDSL) or reliable and prompI
deposiIoryoperaIions.
TheDeparImenIdealswiIhvariousmaIIersrelaIingIo:
Transer and Iransmission o shares in physical mode
DemaIerialisaIion/remaIerialisaIion o shares
PegulaIory compliances perIaining Io shares
Pedressal o invesIor grievances
DisbursemenI o dividend
LxecuIion o corporaIe acIions and oIher deposiIory
operaIions
lmplemenIaIion o Code o ConducI or prevenIion
oinsiderIrading
AlloImenI o shares and lisIing Ihereo on Ihe sIock
exchanges
Liasoning wiIh sIock exchanges, deposiIories and
oIherregulaIorybodies
LSOP managemenI including liasoning wiIh local
andoverseasemployees
UpdaIion o share relaIed daIa on Company's
oicialwebsiIe
lnvesIor LducaIion and ProIecIion lund (lLPl)
Unclaimed shares
ManagemenI o posIal balloIs
DaIa communicaIion Ihrough:
o NSL LlecIronic ApplicaIion Processing SysIem
(NLAPS),
o CorporaIeliling&DisseminaIionSysIem(ClDS),
o SL8lComplainIsPedressSysIem(SCOPLS),
o MCA websiIe or uploading lisI o unclaimed
dividend,and
o NSDLandCDSLwebsiIesoruploadingDNPs.
The lSD can be approached or any query or
assisIance Ihrough leIIer, Ielephone, ax, email or in
person aI !59, C.S.T. Poad, Kalina, SanIacruz (LasI),
Mumbai 400 098, lndia. Tel: 9! 22 6640 2J2J
(LxI:2402/J)lax:9!2226528806.
Exclusive email id for investors:
PursuanI Io Clause 47 () o Ihe LisIing AgreemenI,
ollowing email id has been designaIed exclusively or
communicaIinginvesIorsgrievances:
invesIorservices_lupinpharma.com
lorIheconvenienceoinvesIors,alinkaIIheCompanys
websiIewww.lupinworld.comhasalsobeenprovidedIo
conIacIlSD.
Person incharge o Ihe DeparImenI: Mr. Pradeep S.
8hagwaI,GeneralManagerlnvesIorsServices.
ANNUAL GENERAL MEETING
The J!sI Annual General MeeIing will be held aI 2.J0
p.m. on Wednesday, AugusI 7, 20!J, aI Pang Sharda
NaIyamandir, 8andra PeclamaIion, 8andra (WesI),
Mumbai400050.
FINANCIAL CALENDAR
lirsIquarIerresulIs : !uly/AugusI20!J
SecondquarIerresulIs : OcIober/November20!J
ThirdquarIerresulIs : !anuary/lebruary20!4
AnnualresulIs : April/May20!4
AnnualGeneralMeeIing : !uly/AugusI20!4
BOOK CLOSURE
ThePegisIeroMembersandIheShareTranserPegisIer
will remain closed rom Wednesday, !uly J!, 20!J Io
Wednesday,AugusI7,20!J,(boIhdaysinclusive).
DividendorIheyearendedMarchJ!,20!J,ideclared,
aIIheAnnualGeneralMeeIing,shallbepaidIo:
a) beneicial owners aI Ihe end o business day on
Tuesday,!ulyJ0,20!JasperlisIsurnishedbyNSDL
andCDSLinrespecIosharesheldinelecIronicorm,
and
b) persons whose names appear on Ihe PegisIer o
Members as aI Ihe end o Ihe business day on
Tuesday, !uly J0, 20!J in respecI o shares held in
physicalorm.
DIVIDEND PAYMENT DATE
Dividend,ideclared,shallbepaidwiIhinIhreeworking
days rom Ihe daIe o Ihe Annual General MeeIing.
Dividend shall be remiIIed Ihrough NaIional LlecIronic
ClearingService(NLCS),whereverbankdeIailsincluding
MlCPno.areavailablewiIhIheCompany,andinoIher
cases,IhroughwarranIs,payableaIpar.
SHARES LISTED AT
TheequiIysharesoIheCompanyarelisIedaI:
Bombay Stock Exchange Limited (BSE)
Phiroze!eejeebhoyTowers,
DalalSIreeI,MumbaiSamacharMarg,
Mumbai40000!.
National Stock Exchange of India Limited (NSE)
LxchangePlaza,
8andraKurlaComplex,
8andra(LasI),
Mumbai40005!.
AnnualLisIingeesorIheyear20!J!4havebeenpaid
IoIhesIockexchanges.TheCompanyhasalsopaidIhe
AnnualCusIodialeesIoboIhIhedeposiIories.
BSE NSE
H H H H
MONTH High Date Low Date High Date Low Date
Apr20!2 574.05 !7.04.!2 529.00 09.04.!2 575.00 !7.04.!2 5!0.05 J0.04.!2
May20!2 559.50 08.05.!2 507.70 !!.05.!2 562.50 08.05.!2 507.50 !!.05.!2
!un20!2 558.95 07.06.!2 507.00 !8.06.!2 559.95 06.06.!2 505.!0 !5.06.!2
!ul20!2 604.00 J!.07.!2 5J6.00 0J.07.!2 604.00 J!.07.!2 5J2.!0 !2.07.!2
Aug20!2 604.00 0!.08.!2 548.50 !6.08.!2 606.00 0!.08.!2 548.25 !6.08.!2
Sep20!2 6J!.90 !0.09.!2 540.95 !7.09.!2 6J!.95 !0.09.!2 554.!0 !7.09.!2
OcI20!2 604.!0 0!.!0.!2 540.!5 !!.!0.!2 60J.70 0!.!0.!2 496.40 05.!0.!2
Nov20!2 594.80 J0.!!.!2 557.!0 !9.!!.!2 594.80 J0.!!.!2 557.!0 !9.!!.!2
Dec20!2 62J.50 !9.!2.!2 58J.90 0J.!2.!2 62J.50 27.!2.!2 582.!0 0J.!2.!2
!an20!J 620.55 0!.0!.!J 57!.!0 !5.0!.!J 62!.25 0!.0!.!J 570.80 !5.0!.!J
leb20!J 625.80 0!.02.!J 577.40 !5.02.!J 626.00 0!.02.!J 577.20 !5.02.!J
Mar20!J 6J8.65 25.0J.!J 569.00 0!.0J.!J 6J9.J0 25.0J.!J 567.65 0!.0J.!J
Lupin Share price movement
TheclosingmarkeIpriceonIheboursesaIIheendoeachinancialyear:
*Share prices are adjusIed considering issue o bonus shares in Ihe raIio o !:! on AugusI !7, 2006 and
urIher, subdivision o ace value o shares rom H !0/ each Io H 2/ each, eecIive AugusI J0, 20!0.
Note:ThesIockpriceperormanceshownaboveshouldnoIbeconsideredindicaIiveopoIenIialuIuresIockpriceperormance.
STOCK CODES
ThesIockcodesoIheCompanyare:
8SL :500257
NSL :LUPIN
INTERNATIONAL SECURITIES IDENTIFICATION NUMBER
(ISIN)
lSlN is a unique idenIiicaIion number alloIIed Io
demaIerialisedscrip.ThelSlNhasIobequoIedineach
IransacIion relaIing Io demaIerialised shares o Ihe
Company.ThelSlNoIheequiIysharesoIheCompany
isINE 326A 01037.
CORPORATE IDENTITY NUMBER (CIN)
ClNoIheCompany,alloIIedbyIheMinisIryoCorporaIe
Aairs,GovernmenIolndia:
L24100MH1983PLC029442.
MARKET PRICE DATA
LquiIysharesoIheCompanyareIradedinAgroupand
also orms a parI o CNX NiIy. The markeI price daIa
covering Ihe year April 20!2 Io March 20!J is given
below:
0.00
!00.00
200.00
J00.00
400.00
500.00
600.00
700.00
M
a
r
0
2
M
a
r
0
6
M
a
r
0
4
M
a
r
0
8
M
a
r
!
!
M
a
r
0
J
M
a
r
0
7
M
a
r
!
0
M
a
r
0
5
M
a
r
0
9
M
a
r
!
2
M
a
r
!
J
P
u
p
e
e
s
(
H
)
ClosingPaIe(8SL) ClosingPaIe(NSL)
!!.70 !2.5J
!2.5J !!.66
65.00
65.00
55.J!
54.7!
98.78
99.70
!0!.86
!0!.40
!2!.!J
!2!.24
!J7.84
!J6.9!
J24.9!
J25.47
4!5.J5
4!6.65
529.65
529.50
629.05
628.55
BSE
NSE
76 | Lupin Limited
DEMATERIALISATION OF SHARES AND LIQUIDITY
The Companys shares are Iraded compulsorily in
demaIerialised orm and Ihey can be demaIerialised
wiIh boIh Ihe deposiIories i.e. Ihe NaIional SecuriIies
DeposiIory LimiIed and Ihe CenIral DeposiIory Services
(lndia)LimiIed.
Your Company has esIablished direcI connecIiviIy wiIh
IhedeposiIoriesandwiIhaviewIoexpediIeIheprocess
o demaIerialisaIion o Companys shares, requesIs or
demaIerialisaIion received rom deposiIory parIicipanIs
arebeingmoniIoredregularly.
DuringIheyear,IheCompanyhaselecIronicallyconirmed
requesIs or demaIerialisaIion o 2566!5 equiIy shares.
As on March J!, 20!J, 99.44% o Ihe share capiIal o
IheCompanywasheldindemaIerialisedorm.
CompanyssharesareairlyliquidonIheboursesorming
parIomajorindicesandareIradedacIivelyaIIhe8SL
andIheNSL.TradingdaIaoIhesameorIheyearApril
20!2IoMarch20!Jisasunder:
(Valueinmn. H)
Month BSE NSE Total
Shares Value (H) Shares Value (H) Shares Value (H)
Apr20!2 !0844!8 594.44 !J2588!9 7289.4! !4J4J2J7 788J.85
May20!2 !0J059! 552.78 !4284659 768J.68 !5J!5250 82J6.46
!un20!2 875088 464.0! !2604427 6646.80 !J4795!5 7!!0.8!
!ul20!2 2!8!!95 !228.68 !5J7822J 87!7.78 !75594!8 9946.46
Aug20!2 !02J698 594.66 !J8JJ065 80!J.6J !485676J 8608.29
Sep20!2 2!558J5 !267.25 25J20692 !49J8.47 27476527 !6205.72
OcI20!2 !97077J !!27.0J 2!76478J !2409.57 2J7J5556 !J5J6.60
Nov20!2 !!89J08 686.29 !2946050 7455.00 !4!J5J58 8!4!.29
Dec20!2 !88J087 !!J0.78 !J490668 8!55.98 !5J7J755 9286.76
!an20!J !894267 !!28.06 !674!25! 9944.2! !86J55!8 !!072.27
leb20!J 957!45 57J.94 !!66!092 6972.22 !26!82J7 7546.!6
Mar20!J !22J50J 748.46 !5995!J! 9795.06 !72!86J4 !054J.52
Total 17468908 10096.38 187278860 108021.81 204747768 118118.19
PERFORMANCE IN COMPARISON WITH BROAD BASED INDICES
LupinsharepricecomparedwiIhS&P8SLSensexandNSLCNXNiIy(MonIhendclosing)duringIheyear,April20!2Io
March20!J:
MONTH BSE NSE
Lupin share price (H) S&P BSE Sensex Lupin share price (H) CNX Nifty
Apr20!2 55!.80 !7J!8.8! 552.40 5248.!5
May20!2 5J9.40 !62!8.5J 54!.70 4924.25
!un20!2 5J9.00 !7429.98 5J7.!5 5278.90
!ul20!2 60!.!0 !72J6.!8 600.90 5229.00
Aug20!2 59J.J5 !7429.56 59J.!0 5258.50
Sep20!2 596.J0 !8762.74 595.95 570J.J0
OcI20!2 566.60 !8505.J8 566.45 56!9.70
Nov20!2 590.70 !9JJ9.90 59!.00 5879.85
Dec20!2 6!J.J0 !9426.7! 6!J.85 5905.!0
!an20!J 604.45 !9894.98 604.J0 60J4.75
leb20!J 585.20 !886!.54 584.95 569J.05
Mar20!J 629.05 !88J5.77 628.55 5682.55
LUPIN SHARE PRICE COMPARED TO S&P BSE SENSEX
0.00
!00.00
200.00
J00.00
400.00
500.00
600.00
700.00
5000
0
!0000
!5000
20000
25000
S&P8SLSLNSLX LUPlN
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BSE
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MonIh
LUPIN SHARE PRICE COMPARED TO NSE CNX NIFTY
0.00
!00.00
200.00
J00.00
400.00
500.00
600.00
700.00
0
!000
2000
J000
4000
5000
6000
7000
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CNXNllTY LUPlN
EVOLUTION OF SHARE CAPITAL
ParIicularsoLquiIyShareCapiIaloIheCompany:
Year Allotment of shares (of the face value of J 10/- each) Total issued
No. of shares during
the year
Capital at the end of
the year (J)
200!02 40!4!!J4sharesuponamalgamaIion* 40!4!!J4 40!4!!J40
200607 !!J60sharesunderLSOP(Pre8onus)
4020J4J0 80J445640
40!52494sharesasbonus(inIheraIioo!:!)
J9576sharesunderLSOP(PosI8onus)
200708 !656!00sharesuponconversionolCC8
!7J6JJ! 820808950 802J!sharesunderLSOP
200809 57!069sharesuponconversionolCC8
7J8655 828!95500 !67586sharesunderLSOP
2009!0 58!6742sharesuponconversionolCC8
6!2428J 8894J8JJ0 J0754!sharesunderLSOP
20!0!! !7069!sharesunderLSOP(PreSubdivision)
799260 892402J78
Allotment of shares (of the face value of J 2/- each)
628569sharesunderLSOP(PosISubdivision)
20!!!2 440492sharesunderLSOP 440492 89J28JJ62
20!2!J 8878!2sharesunderLSOP 8878!2 895058986
*AmalgamaIionoLupinLaboraIoriesLimiIedwiIhLupinChemicalsLimiIedwhosenamewaschangedIoLupinLimiIed.
78 | Lupin Limited
SHARE TRANSFER SYSTEM
LquiIy shares o Ihe Company Iraded in demaI orm
andareIranserredonlyIhroughdeposiIorysysIem.The
acIiviIies relaIed Io Iranser o shares in physical orm
are carried ouI by Ihe lnvesIors Services DeparImenI
o Ihe Company and placed beore Ihe Share Transer
CommiIIeeoriIsapproval.
The 8oard has consIiIuIed Share Transer CommiIIee
comprising Dr. Desh 8andhu GupIa, or in his absence,
Dr.KamalK.SharmaasIheChairmanoIheCommiIIee
and Mrs. M. D. GupIa and Mr. D. K. ConIracIor (up Io
OcIober 2J, 20!2) and Dr. K. U. Mada (w.e.. OcIober
2J,20!2)asIhemembers.
AIer processing valid share Iranser documenIs, Ihe
shares are Iranserred avouring respecIive Iranserees
wiIhin !5 days rom Ihe daIe o receipI and Ihe share
cerIiicaIes are orwarded Io Ihem aIer duly endorsing
Iheirnames.DuringIheyear,2JmeeIingsoIheShare
Transer CommiIIee were held Io approve Iranser o
49850equiIysharesinphysicalorm.
PursuanIIoClause47CoIheLisIingAgreemenI,anaudiI
o share Iranser relaIed acIiviIies are being underIaken
onahalyearlybasisbyaqualiiedCompanySecreIaryin
pracIiceandIhecompliancecerIiicaIeissueduponaudiI
issubmiIIedIoIhesIockexchanges.
ALLOTMENT COMMITTEE
The 8oard has consIiIuIed AlloImenI CommiIIee Io
approve Ihe alloImenI o shares, comprising Dr. Desh
8andhu GupIa, or in his absence, Dr. Kamal K. Sharma
asChairmanoIheCommiIIeeandMrs.M.D.GupIaas
member.
The AlloImenI CommiIIee meI !J Iimes during Ihe
year. lI approved alloImenI o 8878!2 shares Io Ihe
employees, upon exercising Ihe vesIed opIions granIed
IoIhemunderIheLupinLmployeesSIockOpIionPlans.
AlloImenICommiIIeedelegaIedpowersIoIheexecuIives
oIheCompanyIocomplywiIhpreandposIormaliIiesin
respecIoalloImenIosharesviz.execuIionocorporaIe
acIionsorcrediIingalloIIedsharesIoIhedemaIaccounI
oIherespecIivealloIeesandlisIingIhemwiIhIhesIock
exchangeseIc.
UNCLAIMED SHARES
ln Ierms o Clause 5A o Ihe lisIing agreemenI, Ihe
CompanyhadIranserredJ75!50unclaimedsharesheld
by!592shareholdersIoIheLupinLimiIedUnclaimed
Suspense AccounI on lebruary, 29, 20!2. No claims
werelodgedorsharesIillMarchJ!,20!2.
DuringIheyear,JJshareholdershavelodgedIheirclaims
or J750 shares and upon veriicaIion o documenIs
submiIIed by Ihem subsIanIiaIing Iheir claims, Ihose
J750shareswereIranserredromUnclaimedSuspense
AccounI Io Iheir respecIive names eiIher in demaI or
physicalorm,aspreerredbyIheclaimanIshareholders.
As on March J!, 20!J, Ihe balance in Ihe Unclaimed
Suspense AccounI was J7!400 shares comprising
!559 shareholders. VoIing righIs on Ihese shares shall
remainrozenIillIheclaimoIherighIulshareowneris
approvedbyIheCompany.
SHAREHOLDING PROFILE AS ON MARCH 31, 2013
i. Distribution of Shareholding
Shareholding range
(No. of shares)
Shareholders Shareholding
Numbers % Numbers %
!500 8!7!8 89.64 6827570 !.5J
50!!000 J!78 J.49 2479989 0.55
!00!2000 J990 4.J8 5!778J! !.!6
200!J000 646 0.7! !62J655 0.J6
J00!4000 2JJ 0.26 8J2486 0.!9
400!5000 !96 0.2! 9!8420 0.2!
500!!0000 J2J 0.J5 2JJ47!J 0.52
!000!andabove 879 0.96 427JJ4829 95.48
Total: 91163 100.00 447529493 100.00
iii. Shareholders (non-promoter) holding more than 1% of the total shares issued
Name of the shareholder No. of shares %
GenesislndianlnvesImenICo.LId. !592!889 J.56
LielnsuranceCorporaIionolndia !268722! 2.8J
lClClPrudenIialLielnsuranceCo.LId. !J9279!4 J.!!
Mr.PakeshPadheshyam!hunjhunwala 940J405 2.!0
HDlCTrusIeeCompanyLId. 7594647 !.70
GovernmenIPensionlundGlobal 472!864 !.06
iv. Shareholding Profile
Demat Physical Total
(nos.) % (nos.) % (nos.)
Shareholding 4450!2744 99.44 25!6749 0.56 44752949J
Shareholders 82850 90.88 8J!J 9.!2 9!!6J
Shareholding Pattern as on March 31, 2013
loreignlnsIiIuIionallnvesIors(llls)
loreign8odies/8anks
Public
PromoIers
MuIuallunds
lnsuranceCos./8anks/linancial
lnsIiIuIions
NonPesidenIs
9.67
0.00
28.80
0.J6
5.!6
46.84
9.!7
ii. Shareholding Pattern
Category As on 31.03.2013 As on 31.03.2012
No. of shares % No. of shares %
PromoIers 20960!940 46.84 20960!940 46.9J
MuIuallunds 2J085600 5.!6 J0!J79!! 6.75
lnsuranceCos./8anks/
linanciallnsIiIuIions
4!0J69J2 9.!7 4J68574! 9.78
loreignlnsIiIuIional
lnvesIors(llls)
!28874J02 28.80 !229JJ!74 27.52
loreign8odies/8anks 2079 0.00 9784 0.00
NonPesidenIs !6!45J2 0.J6 58!604 0.!J
Public 4JJ!4!08 9.67 J969!527 8.89
Total: 447529493 100.00 446641681 100.00
80 | Lupin Limited
v. Geographical spread of Shareholders
State Shareholders State Shareholders
Nos. % Nos. %
AndhraPradesh J559 J.90 MadhyaPradesh 2068 2.27
Assam J7! 0.4! MaharashIra J849J 42.22
8ihar 6JJ 0.69 NorIhLasIernSIaIes 82 0.09
ChhaIIisgarh 297 0.JJ Orissa 566 0.62
Delhi 5262 5.77 Punjab !504 !.65
GujaraI 8944 9.8! PajasIhan 2669 2.9J
Haryana !50J !.65 Tamilnadu 4455 4.89
HimachalPradesh !J4 0.!5 UIIarakhand !49! !.64
!ammuandKashmir !62 0.!8 UIIarPradesh 40J9 4.4J
!harkhand !2!4 !.JJ WesI8engal 57J0 6.29
KarnaIaka 5569 6.!! OIhers !049 !.!5
Kerala !J69 !.50
Shareholding
Physical
DermaI
0.56
99.44
9.!2
90.88
Shareholders
Physical
DermaI
CODE OF CONDUCT FOR PREVENTION OF INSIDER
TRADING
PursuanIIoIheprovisionsoIheSL8l(ProhibiIionolnsider
Trading) PegulaIions, !992, Ihe Company has insIiIuIed
acomprehensiveCodeoConducIorprevenIionoinsider
IradinginsharesoIheCompany.TheCodeisdesignedIo
mainIainIhehighesIeIhicalsIandardsordealinginshares
oIheCompanybyIhesenioroicialsincludingpromoIers,
direcIorsandaudiIorsoIheCompany.
TheCodeoConducIisimplemenIeddiligenIlymandaIing
iniIial and conIinual disclosures besides annual disclosure
on shareholding and halyearly disclosure on Ihe Irading
o shares in Ihe Company. The Code resIricIs speciied
employeesIodealinIhesharesoIheCompanyonIhebasis
oanyunpublishedpricesensiIiveinormaIionavailableIo
IhembyvirIueoIheirposiIioninIheCompany.
The IransacIions o Companys shares by Ihe insiders are
subjecIed Io cerIain resIricIions, such as noI dealing in
shares during Irading window closures,seeking pre
clearanceoIradeeIc.,asenvisagedinIheCode.TheCode
hasbeendisseminaIedIhroughIheCompanysinIraneIor
easyaccessandincreasedawarenessandisupdaIedrom
IimeIoIime.
RECONCILIATION OF SHARE CAPITAL AUDIT REPORT
A Ihorough audiI is conducIed on a quarIerly basis by
a qualiied pracIicing Company SecreIary, in Ierms o
PegulaIion 55A o SL8l (DeposiIories & ParIicipanIs)
PegulaIions,!996,IoreconcileIheIoIaladmiIIedcapiIal
wiIhNSDLandCDSLandIhoseheldinphysicalormwiIh
IheIoIalissued,paidupandlisIedcapiIaloIheCompany.
ThePeconciliaIionoShareCapiIalAudiIPeporI,inIeralia,
conirmsIhaIIhePegisIeroMembersisdulyupdaIedand
demaI requesIs are conirmed wiIhin sIipulaIed Iime eIc.
DeIailsochangesinsharecapiIaloIheCompanyduring
IhequarIerarealsocoveredinIhePeporI.
The reporIs or each quarIerend during Ihe year were
submiIIed Io Ihe sIock exchanges and were also placed
beore Ihe meeIings o Ihe 8oard o DirecIors and Ihe
lnvesIorsGrievancesCommiIIee.
EMPLOYEES STOCK OPTION PLANS (ESOP)
The Lmployees SIock OpIion Plans o Ihe Company are
ormulaIed and implemenIed according Io Ihe provisions
o SL8l (Lmployee SIock OpIion Scheme and Lmployee
SIockPurchaseScheme)Guidelines,!999,wiIhanexercise
periodo!0yearsromIhedaIeoeachgranI.LachopIion
isconverIibleinIooneullypaidupequiIyshareoIheace
valueoH2/each.
During Ihe year, Ihe Company granIed 59500 opIions
underIheLupinLmployeesSIockOpIionPlan2005and
699750opIionsunderIheLupinLmployeesSIockOpIion
Plan20!!IoiIsemployeesand!45400opIionsunderIhe
LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan
20!!IoemployeesoIhesubsidiarycompanies,ineighI
separaIegranIs.
lnaccordancewiIhIheIermsoIherespecIivesIockopIion
planandoIherapplicableprovisions,IheCompanyalloIIed
8878!2 shares during Ihe year Io Ihose employees who
have exercised Iheir vesIed opIions, Ihe deIails o which
areasunder:
DIVIDEND PROFILE
ParIicularsodividendpaidbyIheCompany:
Financial year Book closure/Record date Dividend % Date of declaration Date of payment
20!!!2 !7.07.!224.07.!2 !60 24.07.20!2 25.07.20!2
20!0!! 20.07.!!27.07.!! !50 27.07.20!! 28.07.20!!
2009!0 2!.07.!028.07.!0 !J5 28.07.20!0 29.07.20!0
200809 22.07.0929.07.09 !25 29.07.2009 J0.07.2009
200708 !5.07.0822.07.08 !00 22.07.2008 2J.07.2008
200607 !2.07.07!9.07.07 50 !9.07.2007 20.07.2007
200506 !!.07.06!2.07.06 65 25.07.2006 26.07.2006
200405 !9.07.0520.07.05 65 28.07.2005 29.07.2005
200J04 !5.07.04!6.07.04 65 29.07.2004 J0.07.2004
20020J !7.07.0J!8.07.0J 50 06.08.200J 07.08.200J
200!02(linal) 20.08.022!.08.02 25 02.09.2002 0J.09.2002
200!02(lnIerim) 07.02.02 25 !7.0!.2002 !5.02.2002
Note:DividendorIheyear200607onwardswasonenhancedsharecapiIal,consequenIIoIhe8onuslssueinIheraIio
o!:!.
82 | Lupin Limited
Sl. No. Date of allotment No. of shares
!. April!0,20!2 90920
2. April27,20!2 42!7J
J. May28,20!2 J2550
4. !uly4,20!2 !07529
5. AugusIJ,20!2 J2425
6. SepIember!!,20!2 702J5
7. SepIember26,20!2 !!649
8. OcIober!2,20!2 !7!675
9. November2,20!2 !86044
!0. DecemberJ,20!2 27J!9
!!. !anuary!6,20!J 5!226
!2. lebruary8,20!J J0464
!J. March!8,20!J JJ60J
Total: 887812
TheCompanyhasobIainednecessaryapprovalsorgranI
o opIions and alloImenI o shares. The alloIIed shares
havebeenlisIedwiIhIhe8SLandNSL.
UNCLAIMED DIVIDENDS
Dividends o Ihe Company and IhaI o Ihe ersIwhile
Lupin LaboraIories LimiIed or Ihe inancial years
!99495 Io 200405 which remained unclaimed/unpaid
were Iranserred Io Ihe lnvesIor LducaIion and ProIecIion
lund (lLPl) as and when due, pursuanI Io Ihe relevanI
provisions. According Io Ihe guidelines, unpaid dividend
amounIs,onceIranserredIoIhelLPl,cannoIbeclaimed.
WiIhaviewIosaeguardinIeresIsoIheshareholders,Ihe
CompanyiniIiaIesproacIivesIepslikesendingpersonalised
reminders Io Ihe shareholders concerned Io claim Iheir
unpaid dividend rom Iime Io Iime and also beore
IranserringIhemIolLPl.lurIher,IhedaIaounclaimed/
unpaiddividendisuploadedonIhewebsiIesoIheMinisIry
oCorporaIeAairs(MCA),GovernmenIolndia,andalso
onIheCompanysoicialwebsiIewww.lupinworld.com.
UnclaimeddividendsorIheyears200506onwardswill
beIranserredIoIhelLPl,asgivenbelow:
Financial Year Date of Declaration Due date for transfer to IEPF
200506 25.07.2006 J0.08.20!J
200607 !9.07.2007 24.08.20!4
200708 22.07.2008 27.08.20!5
200809 29.07.2009 0J.09.20!6
2009!0 28.07.20!0 02.09.20!7
20!0!! 27.07.20!! 0!.09.20!8
20!!!2 24.07.20!2 29.08.20!9
Shareholders are advised Io conirm wiIh Iheir records
andclaimIheirdividendbeoreIheduedaIeoIranser
IolLPl,inoIencashedearlier.
OUTSTANDING GDRs/ADRs/WARRANTS/CONVERTIBLE
INSTRUMENTS
TheCompanyhasgranIedsIockopIionsIoiIsemployees
and Ihose o iIs subsidiaries under Ihe employee sIock
opIionplans.TheCompanyshallalloIequiIysharesrom
IimeIoIime,uponIheemployeesexercisingIheopIions
vesIed in Ihem, pursuanI Io Ihe provisions o SL8l
(Lmployee SIock OpIion Scheme and Lmployee SIock
Purchase Scheme) Guidelines, !999 and Ihe Ierms and
condiIionsoIherespecIiveemployeesIockopIionplan.
There are no ouIsIanding warranIs. The Company has
noIissuedanyGDP/ADP.
PLANT LOCATIONS
TheCompanysplanIsarelocaIedaI:
i) MlDClndusIrialLsIaIe,
TarapurlndusIrialArea,
8oisar,DisI.Thane,
MaharashIra40!506.
ii) NewlndusIrialAreall,
Mandideep,
DisI.Paisen,
MadhyaPradesh462046.
iii) GlDClndusIrialLsIaIe,
Ankleshwar,
GujaraIJ9J002.
iv) MlDCArea,
ChikalIhana,
Aurangabad,
MaharashIra4J!00!.
v) 8!5,PhaselA,
VernalndusIrialArea,
VernaSalceIIe,
Goa40J722.
vi) LxporIPromoIion
lndusIrialPark,
SlDCOlndusIrial
Complex,KarIholi,
8ari8rahmana,
!ammu!8!!JJ.
vii) GaINo.!!56,
VillageGhoIawade,
TalukaMulshi,
DisI.Pune,
MaharashIra4!!042.
viii) 8lock2!,Village
Dabhasa,Taluka:Padra,
DisI.Vadodara,
GujaraIJ9!440.
ix) SpecialLconomicZone,
Misc.Zone,Apparel
Park, PiIhampur,
DisI.Dhar,
MadhyaPradesh454775.
x) KyowaPharmaceuIical
lndusIryCo.LId.,
!!!TechnoPark,Sanda,
Hyogo669!JJ9,
!apan.
xi) lromPharmaceuIical
Co.,LId.,
PosIcode24J00!4
4!829, Asahicho,
AIsugiciIy,Kanagawa
preecIure!apan.
CONTACT PERSONS FOR ENQUIRIES
Financial
matters
:
Mr.SunilMakharia,
email:sunilmakharia_lupinpharma.com
Secretarial
matters
:
Mr.PajvardhanV.SaIam,
email:rajvardhansaIam_lupinpharma.com
Investors
related
matters
:
Mr.Pradeep8hagwaI,
email:pradeepbhagwaI_lupinpharma.com
ADDRESS FOR CORRESPONDENCE
MembersmayaddressIheirqueries/communicaIionsIo:
Registered Office/Investors Services Department:
!59,C.S.T.Poad,Kalina,SanIacruz(LasI),
Mumbai400098,lndia.
Tel:9!2266402J2JLxI:2402/240J
lax:9!2226528806.
Chairman
Mumbai,May8,20!J
DECLARATION PURSUANT TO CLAUSE 49 1(D) (ii) OF THE LISTING AGREEMENT
lnaccordancewiIhClause49!(D)(ii)oIheLisIingAgreemenIwiIhIheSIockLxchanges,lherebydeclareIhaIIheDirecIorsand
SeniorManagemenIoIheCompanyhaveairmedcompliancewiIhIheCodeoConducIasapplicableIoIhemorIheyear
endedMarchJ!,20!J.
lor LUPIN LIMITED
DR. KAMAL K. SHARMA
MANAGING DIRECTOR
Mumbai,May8,20!J
CERTIFICATE PURSUANT TO CLAUSE 49 V OF THE LISTING AGREEMENT
We,Dr.KamalK.Sharma,ManagingDirecIorandMr.PameshSwaminaIhan,PresidenIlinance&PlanningdoherebycerIiy
IoIhe8oardIhaI:
(a) WehavereviewedIhe8alanceSheeIasaIMarchJ!,20!J,SIaIemenIoProiIandLossandIheCashllowSIaIemenI
orIheyearendedonIhaIdaIeandIhaIIoIhebesIoourknowledgeandbelie:
(i) Ihe said sIaIemenIs do noI conIain any alse, misleading or maIerially unIrue sIaIemenIs or igures or omiI any
maIerialacI,whichmaymakeIhesIaIemenIsoriguresconIainedIhereinmisleading,
(ii) IhesaidsIaIemenIsIogeIherpresenIaIrueandairviewoIheCompanysaairsandareincompliancewiIhexisIing
accounIingsIandards,applicablelawsandregulaIions.
(b) Thereare,IoIhebesIoourknowledgeandbelie,noIransacIionsenIeredinIobyIheCompanyduringIheyearwhich
areraudulenI,illegalorviolaIiveoIheCompanyscodeoconducI.
(c) We accepI responsibiliIy or esIablishing and mainIaining inIernal conIrols or inancial reporIing and IhaI we have
evaluaIedIheeecIivenessoIheinIernalconIrolsysIemsoIheCompanyperIainingIoinancialreporIingandhave
disclosedIoIheAudiIorsandIheAudiICommiIIee,deicienciesinIhedesignoroperaIionosuchinIernalconIrols,i
any,owhichweareawareandIhesIepswehaveIakenorproposeIoIakeIorecIiyIhesedeiciencies.
(d) WehaveindicaIedIoIheAudiIorsandIheAudiICommiIIee:
(i) signiicanIchangesininIernalconIroloverinancialreporIingduringIheyear,iany,
(ii) signiicanIchangesinaccounIingpoliciesduringIheyear,iany,andIhaIIhesamehavebeendisclosedinIhenoIes
IoIheinancialsIaIemenIs,and
(iii)insIancesosigniicanIraudowhichwehavebecomeawareandIheinvolvemenIIherein,iany,oIhemanagemenI
oranemployeehavingasigniicanIroleinIheCompanysinIernalconIrolsysIemoverinancialreporIing.
lor LUPIN LIMITED lor LUPIN LIMITED

DR. KAMAL K. SHARMA RAMESH SWAMINATHAN
MANAGING DIRECTOR PRESIDENT - FINANCE & PLANNING
Mumbai,May8,20!J
84 | Lupin Limited
AUDITORS CERTIFICATE ON
CORPORATE GOVERNANCE
TO,
THE MEMBERS OF LUPIN LIMITED
We have examined Ihe compliance o Ihe condiIions o corporaIe governance by LUPIN LIMITED (Ihe Company) or Ihe
yearendedonMarchJ!,20!J,assIipulaIedinClause49oIhelisIingagreemenIsoIhesaidCompanywiIhrelevanIsIock
exchanges.
ThecomplianceoIhecondiIionsocorporaIegovernanceisIheresponsibiliIyoIheManagemenI.OurexaminaIionhasbeen
limiIed Io procedures and implemenIaIion Ihereo, adopIed by Ihe Company or ensuring compliance o Ihe condiIions o
corporaIegovernance.lIisneiIheranaudiInoranexpressionoopiniononIheinancialsIaIemenIsoIheCompany.
lnouropinionandIoIhebesIoourinormaIionandaccordingIoIheexplanaIionsgivenIous,wecerIiyIhaIIheCompany
hascompliedwiIhIhecondiIionsocorporaIegovernanceassIipulaIedinIheabovemenIionedlisIingagreemenIs.
WesIaIeIhaIsuchcomplianceisneiIheranassuranceasIoIheuIureviabiliIyoIheCompanynorIheeiciencyoreecIiveness
wiIhwhichIheManagemenIhasconducIedIheaairsoIheCompany.
lorDeloitte Haskins & Sells
(PegisIraIionNo.!!7J66W)
K. A. Katki
ParIner
(MembershipNo.0J8568)
Mumbai, May08,20!J
BUSINESS RESPONSIBILITY REPORT
Section A: General Information about the Company
1. Corporate Identity Number (CIN) of the Company:L24!00MH!98JPLC029442
2. Name of the Company:LUPlNLlMlTLD
3. Registered address:!59,C.S.T.Poad,Kalina,SanIacruz(LasI),Mumbai400098.
4. Website:www.lupinworld.com
5. E-mail id: hosecreIarial_lupinpharma.com
6. Financial Year reported:YearendedMarchJ!,20!J.
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Industrial Group Description
2!0 ManuacIureoPharmaceuIicals.
As per National Industrial Classification - Ministry of Statistics and Programme Implementation.
8. List three key products/services that the Company manufactures/provides (as in balance sheet):
Cardiovascular,AnIilnecIiveandDiabeIology.
9. Total number of locations where business activity is undertaken by the Company:
i. Number of International Locations:
TheCompanyhas!8inIernaIionalsubsidiarieslocaIedin!JcounIries.TheCompanyalsohasPepresenIaIiveOicesin
China,Pussia,Ukraine,KazakhsIan,UzbekisIanandVieInam.
ii. Number of National Locations:
TheCompanyhasnineplanIssiIuaIedaIAurangabad,TarapurandPuneinMaharashIra,AnkleshwarandDabhasain
GujaraI,MandideepandlndoreinMadhyaPradesh,Goaand!ammu.TheCompanysP&DCenIreislocaIedaIPune.
ThePegisIeredoiceandCorporaIeoiceareinMumbai.TheCompanyalsohas28Carrying&lorwardingAgenIsand
sixCenIralWarehousesacrossIhecounIry.
10. Markets served by the Company - Local/State/National/International:
lnaddiIionIoservingIhelndianmarkeI,IheCompanyexporIsIoaround82counIriesworldwide.
Section B: Financial Details of the Company
1. Paid up Capital (INR) : I 895.!million.
2. Total Turnover (INR) : I7072J.9million(SIandalone).
3. Total profit after taxes (INR) : I!2604.Jmillion(SIandalone).
4. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) : TheCompanysIoIal
spendingonCSPorIheyearendedMarchJ!,20!JwasI9J.7millionwhichis0.74%oproiIaIerIax.
a. LconomicupliImenIIhroughagriculIuraldevelopmenI,animalhusbandry,promoIionoruralindusIriesandinancial
inclusionoIheruralpoor.
b. SocialdevelopmenIIhroughwomenempowermenI,communiIyhealIhmanagemenI,educaIionandIraining.
c. NaIuralresourcemanagemenIandinrasIrucIuredevelopmenI.
Section C: Other Details
1. Does the Company have any Subsidiary Companies?:
AsonMarchJ!,20!J,IheCompanyhad!9subsidiaries.
5. List of activities in which expenditure in 4 above has been incurred:
86 | Lupin Limited
2. Do the Subsidiary Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number
of such subsidiary company(s):
OIhe!9subsidiaries,!8areoreign,whichcomplywiIhIherequiremenIsoIheirrespecIivecounIries.LupinHealIhcare
LId.,Ihelndiansubsidiary,hasnoIcommencedcommercialoperaIions.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with; participate in the
BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%,
More than 60%]:
Whilesuppliers,disIribuIors,eIc.donoIdirecIlyparIicipaIeinIhe8PiniIiaIivesoIheCompany,IheysupporIIhesame.
Section D: BR Information
1. Details of Director/Directors responsible for BR:

',11XPEHU002094J0
1DPHDr.KamalK.Sharma
'HVLJQDWLRQManagingDirecIor
b) Details of the BR head:
Sl.No. Particulars Details
1. DIN Number 002094J0
2. Name Dr.KamalK.Sharma
3. Designation ManagingDirecIor
4. Telephone number 9!2266402222
5. e-mail id hosecreIarial_lupinpharma.com
2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N):
Sl.
No.
Questions
B
u
s
i
n
e
s
s

E
t
h
i
c
s
P
r
o
d
u
c
t

R
e
s
p
o
n
s
i
b
i
l
i
t
y
W
e
l
l
-
b
e
i
n
g

o
f

e
m
p
l
o
y
e
e
s
S
t
a
k
e
h
o
l
d
e
r

e
n
g
a
g
e
m
e
n
t
H
u
m
a
n

R
i
g
h
t
s
E
n
v
i
r
o
n
m
e
n
t
P
u
b
l
i
c

P
o
l
i
c
y
C
S
R
C
u
s
t
o
m
e
r

R
e
l
a
t
i
o
n
s
P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9
1. Do you have a
policy/policies for....
Y Y Y Y Y
(The
policyis
broadly
covered
invarious
HP
policies
and
pracIices
asalso
codeso
conducI)
Y N Y Y
a) Details of the Director/Directors responsible for implementation of the BR policy/policies:
2. Has the policy
being formulated
in consultation
with the relevant
stakeholders?
Y Y Y Y Y Y Y Y
3. Does the policy
conform to
any national /
international
standards?
If yes, specify? (50
words)
Y Y Y Y Y Y Y Y
The policies are broadly based on Ihe NaIional VolunIary Guidelines on social, environmenIal and
economicalresponsibiliIiesobusinessissuedbyIheMinisIryoCorporaIeAairs,GovernmenIolndia.
lnIernaIional SIandards namely, lSO !400! and !800! are in place Io respecI, proIecI and resIore Ihe
environmenI.
4. Has the policy being
approved by the
Board?
If yes, has it been
signed by MD/
owner/CEO/
appropriate Board
Director?
Y
(Signed
byIhe
MD)
Y
(Signed
byIhe
QA
Head)
Y
(Signed
byIhe
HP
Head)
Y
(Signed
byIhe
CSP
Head)
Y
(Signed
byIhe
HP
Head)
Y
(Signed
byIhe
MD)
Y
(Signed
byIhe
CSP
Head)
Y
(Signed
byIhe
MarkeIing
Head)
5. Does the Company
have a specified
committee of the
Board/Director/
Official to oversee
the implementation
of the policy?
Y Y Y Y Y Y Y Y
6. Indicate the link
for the policy to be
viewed online?
*
_ _ _
*
_
* *
7. Has the policy
been formally
communicated to
all relevant internal
and external
stakeholders?
Y Y Y Y Y Y Y Y
8. Does the Company
have in-house
structure to
implement the
policy/policies?
Y Y Y Y Y Y Y Y
9. Does the Company
have a grievance
redressal mechanism
related to the policy/
policies to address
stakeholders
grievances related to
the policy/policies?
Y Y Y Y Y Y Y Y
10. Has the Company
carried out
independent audit/
evaluation of the
working of this
policy by an internal
or external agency?
Y N Y N Y Y Y Y
*
UPL:hIIp://www.lupinworld.com
_hIIp://lupinap.lupinpharma.com/homepage.ns
88 | Lupin Limited
2
Sl.
No.
Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
1. The Company has not
understood the Principles

2. The Company is not at
a stage where it finds
itself in a position to
formulate and implement
the policies on specified
principles

3. The Company does
not have financial or
manpower resources
available for the task

4. It is planned to be done
within next 6 months

5. It is planned to be done
within the next 1 year

6. Any other reason (please
specify)
The Company is a member o
various Irade bodies, chambers and
associaIionsIhroughwhichiIhasbeen
advocaIing rom Iime Io Iime in a
responsiblemanner,abouImeasuresIo
beIakenbyIhegovernmenIIoaddress
issues relaIed Io Ihe pharmaceuIical
indusIry. However, no need has been
elI Io ormulaIe a speciic policy or
Ihesame.

,QGLFDWH WKH IUHTXHQF\ ZLWK ZKLFK WKH %RDUG RI 'LUHFWRUV &RPPLWWHH RI WKH %RDUG RU &(2 WR DVVHVV WKH %5
performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year.
Annually.
'RHVWKH&RPSDQ\SXEOLVKD%5RUD6XVWDLQDELOLW\5HSRUW":KDWLVWKHK\SHUOLQNIRUYLHZLQJWKLVUHSRUW"+RZ
frequently it is published?
The Company does noI publish a 8P or a SusIainabiliIy PeporI, however, deIails perIaining Io CorporaIe Social
PesponsibiliIyhavebeenpresenIedinIheManagemenIDiscussionandAnalysisPeporIwhichormsaparIoIheAnnual
PeporI.
Section E: Principle-wise performance
Principle 1
1. Does the policy relating to ethics, bribery and corruption cover only the Company? Yes/ No.
Does it extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
TheCompanysIronglybelievesinIhebesIpracIicesincorporaIegovernanceinIheIruesenseandspiriI.Transparencyand
accounIabiliIyareIheIwobasicIeneIsocorporaIegovernanceandresponsiblecorporaIeconducIisaninIegralparIo
IheCompanysbusiness.CodesoConducIareinplaceordirecIorsandseniormanagemenIpersonnelandIhesamehave
beenposIedonIhewebsiIeoIheCompanywww.lupinworld.com.TheWhisIle8lowerPolicyinsIiIuIedacrossIheCompany
andiIssubsidiariesempowersemployeesIoraiseIheirconcernsorhighlighIissuesiIhereareanydiscriminaIoryorgender
biasedconducIs,raudulenIbusinesspracIices,uneIhicalbehaviourorviolaIionoIheCodesoConducI.Lmployeeshave
IheopIionIodosoinabsoluIeanonymiIyorbydisclosingIheiridenIiIywiIhouIanyearovicIimisaIion,reprisalsoradverse
acIions.
a. If answer to Sl.No.1 against any principle, is No, please explain why: (Tick up to 2 options)
3. Governance related to BR:
2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily
resolved by the management? If so, provide details thereof, in about 50 words or so.
AssIaIedinIheCorporaIeGovernancePeporI,IheCompanyreceivedandresolved25shareholdercomplainIsduringIhe
yearendedMarchJ!,20!J.
Principle 2
1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/
or opportunities.
i. CognisIar(CerebroproIeinHydrolysaIe)orIreaImenIoSIroke,T8landDemenIia.
ii. TonacI(AIorvasIaIin)orreducingCholesIerol.
iii. Gluconorm(MeIormin)anAnIiDiabeIesdrug.
2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per
unit of product (optional):
i. Reduction during sourcing/production/distribution achieved since the previous year throughout the value chain?
TheCompanyproducesawiderangeobrandedandgenericlormulaIionsandAPlsaIiIsworldclassmanuacIuring
aciliIies.AsconsumpIionperuniIdependsonIheproducImix,IherearenospeciicsIandardsIoascerIainreducIion
achievedaIproducIlevel.
ii Reduction during usage by consumers (energy, water) has been achieved since the previous year?
TheCompanysproducIsdonoIhaveanybroadbasedimpacIonenergyandwaIerconsumpIionbyconsumers.
3. Does the Company have procedures in place for sustainable sourcing (including transportation)?
If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or
so.
ThereisaormulaIedoperaIingprocedureinplaceorapprovingvendors.MaIerialsareprocuredromapprovedvendors
(local as also inIernaIional). ln majoriIy o Ihe cases, Ihe Company has regular vendors wiIh whom iI has longsIanding
business relaIions. Vendors, especially or key maIerials, are periodically audiIed by Ihe qualiIy assurance Ieam o Ihe
Company.AnnualreighIconIracIsareenIeredinIowiIhleadingIransporIersorIransporIingmaIerials.TheCompanyhas
receivedsusIainedsupporIromiIsvendors.
4. Has the Company taken any steps to procure goods and services from local and small producers, including
communities surrounding their place of work?
If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
The Company procures goods and avails o services rom local and small vendors including Ihose locaIed around iIs
manuacIuring locaIions. The Company provides Iechnical supporI and guidance Io vendors in developing producIs.
ProcuremenI rom local vendors is encouraged in order Io promoIe Ihem as also save on IransporIaIion and invenIory
carryingcosIs.
5. Does the Company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of
products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
TheCompanyhasamechanisminplaceorrecyclingproducIsandwasIe.AbouIJ0J5%owaIerrecoveredromwasIe
waIergeneraIedacrossIheCompanyisrecycledandreusedinIheplanIsinsIeadoreshwaIer.TreaIedwasIewaIerisused
orgardeningpremisesinplaceoreshwaIerIherebyreducingconsumpIionoreshwaIer.
AbouI25J0%oincinerablewasIegeneraIedacrosssomeplanIsissenIorcoprocessingincemenIkiln,whichisusedin
placeoossiluelinIhecemenIindusIry.LorIsareonIoexIrapolaIeIhesameIooIherplanIsoIheCompany.
MosIoIhesolvenIsarerecycledandreused.
Principle 3
1. Please indicate the Total number of employees.
TheCompanyhad!2,J5!permanenIemployeesasonMarchJ!,20!J.
90 | Lupin Limited
2. Please indicate the Total number of employees hired on temporary/contractual/casual basis.
TheCompanyhadJ,9!!employeesasonMarchJ!,20!J.
3. Please indicate the number of permanent women employees.
TheCompanyhad850permanenIwomenemployeesasonMarchJ!,20!J.
4. Please indicate the number of permanent employees with disabilities.
TheCompanyhad20employeeswiIhdisabiliIiesasonMarchJ!,20!J.
5. Do you have an employee association that is recognized by management?
TheCompanysPlanIsandOicesaresiIuaIedaImulIipleplaces,Ihus,IhereareunionsandassociaIionoemployeesaI
respecIivelocaIions.
6. What percentage of your permanent employees is members of this recognized employee association?
AbouI7%oIhepermanenIemployeesaremembersorecognisedemployeeassociaIions.
7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment
in the last financial year and pending, as on the end of the financial year.
Sl.
No.
Category No. of complaints filed during the
financial year
No. of complaints pending as on
end of the financial year
!. Childlabour/orcedlabour/
involunIarylabour
Nil,asIheCompanydoesnoIhirechild
labour,orcedlabourorinvolunIarylabour.
N.A.
2. SexualharassmenI Nil N.A.
J. DiscriminaIoryemploymenI Nil N.A.
8. What percentage of your under mentioned employees were given safety and skill up-gradation training in the last
year? (only safety training)
Permanent Employees: - While!00%operaIingpersonnelareIrained,abouI6570%employeeswerereIrainedinsaeIy.
SaeIyIrainingisimparIedIoemployeesaIIheIimeojoiningIheCompany.Trainingsincludeprocedural,ireighIing,irsI
aid,chemicalsaeIy,eIc.WhileproceduralsaeIyIrainingsareimparIedregularly,irsIaidandireighIingIrainingsaregiven
aIscheduledinIervals.
Permanent Women Employees: -While!00%operaIingpersonnelareIrained,abouI6070%employeeswerereIrained
in saeIy. There is no discriminaIion in imparIing saeIy Iraining Io women employees visavis Iheir male counIerparIs.
lnducIionsaeIyIrainingisgivenIonewlyrecruiIedwomenemployeesandoIherIrainingslikeirsIaideIc.areimparIed
periodically.
Casual/Temporary/Contractual Employees: -!00%ocasual/Iemporary/conIracIualemployeesareIrained.
Employees with Disabilities: -ThereisnodiscriminaIioninimparIingIrainingIodierenIlyabledemployeesvisavisIheir
ellowemployees.
Principle 4
1. Has the Company mapped its internal and external stakeholders? Yes/No.
TheCompanyhasmappediIssIakeholders.
2. Out of the above, has the Company identified the disadvantaged, vulnerable and marginalized stakeholders?
TheCompanyhasidenIiiedIhedisadvanIaged,vulnerableandmarginalizedsIakeholders.
3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized
stakeholders. If so, provide details thereof, in about 50 words or so.
Lupin8lueLyes,adivisionoIheCompany,launchedPunarjyoIi(PebirIhoLyes),campaign,whichpromoIesIhenoble
messageoeyedonaIionaIerdeaIh.LachproducIpackromIhedivisionconIainsauniqueinserIoIheeyedonaIionorm
wiIhhelplinenumbersandprovidesIhepaIienI,deIailedinormaIionabouIIheeyedonaIionprocess.
lnlinewiIhiIsphilosophyoconIribuIingIoIhewellbeingopaIienIs,IheCompanyiniIiaIedvariouseducaIionalprogrammes
orcreaIingawarenessabouIdiseasesacrossIhespecIrum.WiIhanobjecIiveIoincreaseundersIandingodiseasesandIheir
managemenI,inIhelndianconIexI,IheCompanycollaboraIedwiIhlederaIiononObsIeIricandGynecologicalSocieIies
olndiaordevelopingPolyCysIicOvarySyndromeregisIryorIheirsIIimeinlndia.PaIienIeducaIionprogramsnamely,
LupinAnginaCell,orAnginapaIienIsandTLPLOSWellnessProgram,whichprovidesreediagnosIicsupporIandnursing
assisIanceIoOsIeoporosispaIienIswerewellreceived.MedicalcampsorscreeninganddiagnosisovariousIherapyareas
like Chronic ObsIrucIive Pulmonary Disease, AsIhma, Lipids, Anemia, DiabeIes, 8one Mineral DensiIy, eIc. are regularly
conducIed.
Principle 5
1. Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/Others?
TheCompanyiscommiIIedIorespecIandproIecIhumanrighIsandIhecodesoconducIandhumanresourcepracIices
covermosIoiIsaspecIs.TheCompanydoesnoIhirechildlabour,orcedlabourorinvolunIarylabour.
2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily
resolved by the management?
DuringIheyearunderreview,IheCompanydidnoIreceiveanysuchcomplainI.
Principle 6
1. Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/Suppliers/
ThepolicycoversIheCompany,iIssubsidiariesandallconIracIorsworkingwiIhinIhepremisesoIheCompany.
2. Does the Company have strategies/initiatives to address global environmental issues such as climate change, global
warming, etc.? Y/N. If yes, please give hyperlink for webpage etc.
ConservaIion and opIimum uIilizaIion o resources has always been a prioriIy or Ihe Company. The LnvironmenI,
HealIh and SaeIy (LHS) policy o Ihe Company lays sIress on conservaIion o energy by eliminaIing/reducing wasIe
(hIIp://lupinap.lupinpharma.com/homepage.ns).LorIsaredirecIedIowardsexploringpossibiliIiesoreusingandrecycling
maIerials. Various energyeiciency iniIiaIives are Iaken wiIh a view Io reduce overall consumpIion. WaIer is a precious
resourceandIheCompanyhasamechanisminplaceorrecyclingwasIewaIer.
The Company has shiIed rom high Ozone depleIing subsIances (P !!) being used as rerigeranIs Io less/zero poIenIial
rerigeranIslikeP22/P!J4A.
Yes,allnewaciliIiesandproducIsareriskassessedIhroughinIernalandexIernalmechanismwhichincludesenvironmenIal
impacI assessmenI, developmenI o environmenIal managemenI plans. These environmenIal managemenI plans are
reviewedduringinIernalreviewmeeIings.
4. Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about
50 words or so. Also, if yes, whether any environmental compliance report is filed?
AIpresenI,IheCompanydoesnoIhaveanyprojecIrelaIedIoCleanDevelopmenIMechanism.
5. Has the Company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc.
Y/N. If yes, please give hyperlink for web page etc.
The Company has iniIiaIed an iniIiaIive Io replace sIeam generaIing boilers running on ossil uel Io agro wasIe Ihereby
savingpreciousossiluel.
SomeenergyeicienIiniIiaIivescarriedouIaIdierenIlocaIionsoIheCompanywere:
o PeplacemenIoluorescenIIubeswiIhLLDlamps.
o lnsIallaIionandrunningosingleDXuniIsinplaceoIwohermiIicallysealedcompressorsinAHU.
o ConversionolowvolIagepowerdisIribuIionlinesIohighvolIageonesIoreducepowerdisIribuIionlosses.
o lnsIallaIionoenergyeicienIilIraIionsysIemslikeANl/PressureilIersinplaceoconvenIionalcenIriuges.
o UseovariablerequencydrivesonuIiliIyservicese.g.brine,chilledwaIer,coolingwaIerandrawwaIerIoreduceoverall
powerconsumpIion.
o ProvidedVlDsonvariouspumpsandreacIors.
3. Does the Company identify and assess potential environmental risks? Y/N.
Contractors/NGOs/others?
92 | Lupin Limited
o HarmonicshighcapaciIyVlDsupgradedrom6pulseIo!2orharmonicsreducIion.
o MainIainingnearIouniIypoweracIor.
6. Are the Emissions/Waste generated by the Company within the permissible limits given by CPCB/SPCB for the financial
year being reported?
YesandIhesamearemoniIoredbyboIhinIernalandapprovedexIernalagencies.
7. Number of show cause/legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as
on end of Financial Year.
Therewerenounresolvedshowcause/legalnoIicesreceivedromCPC8/SPC8.
Principle 7
1. Is your Company a member of any trade and chamber or association? If Yes, name only those major ones that your
business deals with:
TheCompanyisamemberovariousIradebodies,Iaskorcesandorums,chambersandassociaIionsinIeralia:
a. lederaIionolndianChambersoCommerceandlndusIry(llCCl),
b. ConederaIionolndianlndusIry(Cll),
c. TheAssociaIedChambersoCommerceandlndusIry(ASSOCHAM),
d. lndianPharmaceuIicalAssociaIion(lPA),
e. lndianDrugsManuacIurersAssociaIion(lDMA),
. 8ulkDrugsManuacIurersAssociaIion(8DA),
g. PharmaceuIicalLxporIPromoIionCouncilolndia(PHAPMALXClL),
h. 8ombayChamberoCommerceandlndusIry,and
i. lederaIionolndianLxporIOrganisaIion(llLO).
2. Have you advocated/lobbied through above associations for the advancement or improvement of public good?
Yes/No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive
Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others).
OverIheyears,IheCompanyhasadvocaIedaIvariousorums,abouImeasuresIobeIakenIoaddressbasicissuesrelaIed
IoimprovemenIopublichealIhandpromoIebalanced,susIainableeconomicdevelopmenI.ConIinuouseorIsarebeing
madeIopromoIeIheuseogenericmedicineswhichwouldmakemedicalIreaImenIaordableIoIheunderprivileged
secIions o Ihe socieIy. While Ihe Company supporIs Ihe governmenI in iIs eorIs Io harness Ihe counIrys innovaIion
capabiliIies, measures are suggesIed Io oer aciliIies and incenIives viz., inrasIrucIure and weighIed Iax deducIions on
expendiIureincurredbylndiancompaniesonresearch&developmenI(P&D),IoencourageinvesImenIsinP&D.
Principle 8
1. Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes
details thereof.
The Company sIrongly believes in giving back Io Ihe socieIy in which iI has lourished Io ensure collecIive progress. The
CompanyunderIakesiIsCorporaIeSocialPesponsibiliIy(CSP)acIiviIieswiIhamissionIoassisIIhoselessorIunaIeinrural
lndia.
TheCompanycarriedouICSPacIiviIiesinpursuanceoinclusivegrowIhanddevelopmenI,ocusingmainlyon:
AgriculIural DevelopmenI,
Animal Husbandry,
PromoIion o Pural lndusIries,
Women empowermenI,
CommuniIy HealIh ManagemenI,
LducaIion and Training,
NaIural Pesource ManagemenI, and
lnrasIrucIure DevelopmenI.
2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government
structures/any other organization?
The CSP acIiviIies o Ihe Company are implemenIed mainly Ihrough Lupin Human Welare and Pesearch loundaIion
(LHWPl)whichhasevolvedasoneoIhelargesINGOsinIhecounIry.LHWPlhasalongIermcommiImenIIoIransorm
rurallivesacrosslndiaandiIsmainobjecIivesaresocial,economicupliImenIoamiliesbelowIhepoverIylinewiIhspecial
ocusonwomenempowermenI,healIhcareandeducaIion.TheloundaIionhasemergedasasocialandeconomiccaIalysI
empoweringruralcommuniIies.MaIashreeGomaIiDevi!anaSevaNidhi,asisIerorganisaIionoLHWPl,wasadjudgedIhe
besINGObyNA8APD,orpromoIionandlinkageoselhelpgroupsinIhesIaIeoPajasIhan.
3. Have you done any impact assessment of your initiative?
TheCompanyconducIsimpacIassessmenIoiIsCSPiniIiaIivesIhroughqualiIaIiveeedbackscollecIedromIhebeneiciaries
oprojecIsunderIaken.DierenIprojecIsarealsounderIakeninparInershipwiIhgovernmenI/semigovernmenIagencies
whohaveIheirmoniIoringmechanisms.
4. What is your Companys direct contribution to community development projects - Amount in INR and the details of
the projects undertaken?
During Ihe year ended March J!, 20!J, an amounI o H 9J.7 million was spenI on various communiIy developmenI
projecIsnamely,educaIion,healIhcare,ruraldevelopmenI,environmenI,saeIy,womenempowermenI,inrasIrucIureand
agriculIuraldevelopmenI.
5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community?
Please explain in 50 words, or so.
ParIicipaIoryapproachisollowedinIheCSPacIiviIiesbyacIivelyinvolvingIhecommuniIyinIhedecisionmakingprocess.
8eoreiniIiaIinganyCSPacIiviIy,needsoIhecommuniIiesareidenIiied.WiIhalIernaIivesourcesoincomesuchasdairy,
vermincomposI,biogas,eIc.,armersarebecominginanciallysecured,Ihus,beneiIIingamiliesbelowIhepoverIylineas
alsoIhoseabove.SavingspooledrommembersoselhelpgroupsareusedorinIerloaning.
Principle 9
AsonMarchJ!,20!J,abouI7%ocusIomercomplainIsreceivedduringIheyear,werepending,whichhavesincebeen
resolved.
2. Does the Company display product information on the product label, over and above what is mandated as per local
laws? Yes / No / N.A. / Remarks (additional information).
TheCompanyollowsalllegalsIaIuIeswiIhrespecIIoproducIlabelinganddisplayingoproducIinormaIion.
3. Is there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible
advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so,
provide details thereof, in about 50 words or so.
Nil.
4. Did your Company carry out any consumer survey/consumer satisfaction trends?
ConsumersurveysareregularlycarriedouIbyIheCompanyaIdocIorlevel.
Chairman
Mumbai,May8,20!J
1. What percentage of customer complaints / consumer cases are pending as on the end of financial year?
94 | Lupin Limited
CONSOLIDATED ACCOUNTS
INDEPENDENT AUDITORS REPORT
TO THE BOARD OF DIRECTORS OF LUPIN LIMITED
Report on the Consolidated Financial Statements
We have audiIed Ihe accompanying consolidaIed inancial
sIaIemenIs o LUPlN LlMlTLD (Ihe Company), and iIs
subsidiaries(IheCompanyandiIssubsidiariesconsIiIuIeIhe
Group), which comprise Ihe ConsolidaIed 8alance SheeI as
aIMarchJ!,20!J,IheConsolidaIedSIaIemenIoProiIand
LossandIheConsolidaIedCashllowSIaIemenIorIheyear
Ihen ended, and a summary o Ihe signiicanI accounIing
policiesandoIherexplanaIoryinormaIion.
Managements Responsibility for the Consolidated
Financial Statements
TheCompanysManagemenIisresponsibleorIhepreparaIion
oIheseconsolidaIedinancialsIaIemenIsIhaIgiveaIrueand
airviewoIheconsolidaIedinancialposiIion,consolidaIed
inancial perormance and consolidaIed cash lows o Ihe
GroupinaccordancewiIhIheaccounIingprinciplesgenerally
accepIed in lndia. This responsibiliIy includes Ihe design,
implemenIaIionandmainIenanceoinIernalconIrolrelevanI
Io Ihe preparaIion and presenIaIion o Ihe consolidaIed
inancialsIaIemenIsIhaIgiveaIrueandairviewandareree
rommaIerialmissIaIemenI,wheIherdueIoraudorerror.
Auditors Responsibility
OurresponsibiliIyisIoexpressanopiniononIheseconsolidaIed
inancial sIaIemenIs based on our audiI. We conducIed our
audiI in accordance wiIh Ihe SIandards on AudiIing issued
by Ihe lnsIiIuIe o CharIered AccounIanIs o lndia. Those
SIandards require IhaI we comply wiIh eIhical requiremenIs
andplanandperormIheaudiIIoobIainreasonableassurance
abouIwheIherIheconsolidaIedinancialsIaIemenIsareree
rommaIerialmissIaIemenI.
An audiI involves perorming procedures Io obIain audiI
evidence abouI Ihe amounIs and Ihe disclosures in Ihe
consolidaIed inancial sIaIemenIs. The procedures selecIed
dependonIheaudiIorsjudgemenI,includingIheassessmenI
o Ihe risks o maIerial missIaIemenI o Ihe consolidaIed
inancialsIaIemenIs,wheIherdueIoraudorerror.lnmaking
IhoseriskassessmenIs,IheaudiIorconsidersinIernalconIrol
relevanI Io Ihe Companys preparaIion and presenIaIion o
IheconsolidaIedinancialsIaIemenIsIhaIgiveaIrueandair
viewinorderIodesignaudiIproceduresIhaIareappropriaIe
in Ihe circumsIances, buI noI or Ihe purpose o expressing
an opinion on Ihe eecIiveness o Ihe Companys inIernal
conIrol.AnaudiIalsoincludesevaluaIingIheappropriaIeness
o Ihe accounIing policies used and Ihe reasonableness o
IheaccounIingesIimaIesmadebyIheManagemenI,aswell
as evaluaIing Ihe overall presenIaIion o Ihe consolidaIed
inancialsIaIemenIs.
We believe IhaI Ihe audiI evidence we have obIained is
suicienI and appropriaIe Io provide a basis or our audiI
opinion.
Opinion
ln our opinion and Io Ihe besI o our inormaIion and
according Io Ihe explanaIions given Io us, and based on
IheconsideraIionoIhereporIsoIheoIheraudiIorsonIhe
inancial sIaIemenIs o Ihe subsidiaries reerred Io below
in Ihe OIher MaIIer paragraph, Ihe aoresaid consolidaIed
inancial sIaIemenIs give a Irue and air view in conormiIy
wiIhIheaccounIingprinciplesgenerallyaccepIedinlndia:
(a) inIhecaseoIheConsolidaIed8alanceSheeI,oIhe
sIaIeoaairsoIheGroupasaIMarchJ!,20!J,
(b) inIhecaseoIheConsolidaIedSIaIemenIoProiIand
Loss,oIheproiIoIheGrouporIheyearendedon
IhaIdaIe,and
(c) inIhecaseoIheConsolidaIedCashllowSIaIemenI,
oIhecashlowsoIheGrouporIheyearendedon
IhaIdaIe.
Other Matter
WedidnoIaudiIIheinancialsIaIemenIso!6subsidiaries,
whose inancial sIaIemenIs relecI IoIal asseIs (neI) o
H 20,J78.! million as aI March J!, 20!J, IoIal revenues o
H !9,J9!.5 million and neI cash ouIlows amounIing Io
H 746.!millionorIheyearendedonIhaIdaIe,asconsidered
in Ihe consolidaIed inancial sIaIemenIs. These inancial
sIaIemenIs have been audiIed by oIher audiIors, whose
reporIs have been urnished Io us by Ihe ManagemenI
and our opinion, in so ar as iI relaIes Io Ihe amounIs
and disclosures included in respecI o Ihese subsidiaries,
is based solely on Ihe reporIs o Ihe oIher audiIors.
OuropinionisnoIqualiiedinrespecIoIhismaIIer.
(lirmPegisIraIionNo.!!7J66W)
K. A. Katki
ParIner
Place:Mumbai (MembershipNo.0J8568)
DaIed :May8,20!J
96 | Lupin Limited
As at 31.03.2013 AsaIJ!.0J.20!2
Note H in million H inmillion
EQUITY AND LIABILITIES
Shareholders Funds
ShareCapiIal 2 895.! 89J.J
PeservesandSurplus J 5!,!46.7 J9,2J5.6
52,04!.8 40,!28.9
Minority Interest 4J 594.5 722.9
Non-Current Liabilities
LongTerm8orrowings 4 2,470.6 4,J29.6
DeerredTaxLiabiliIies(neI) 5 2,JJ6.8 !,9!0.!
OIherLongTermLiabiliIies 6 50!.2 757.5
LongTermProvisions 7 !,!24.5 770.2
6,4JJ.! 7,767.4
Current Liabilities
ShorITerm8orrowings 8 7,268.2 !0,469.9
TradePayables 9 !5,4J0.9 !J,792.8
OIherCurrenILiabiliIies !0 J,8!0.4 J,77!.7
ShorITermProvisions !! J,559.7 J,!68.6
J0,069.2 J!,20J.0
TOTAL 89,138.6 79,822.2
ASSETS
Non-Current Assets
lixedAsseIs !2
TangibleAsseIs 24,!JJ.9 20,577.0
lnIangibleAsseIsAcquired 794.6 !,879.6
CapiIalWorkinProgress 2,496.9 J,9!5.8
lnIangibleAsseIsUnderDevelopmenI 6!0.! 52!.4
28,0J5.5 26,89J.8
GoodwillonConsolidaIion 4!(c) 5,07J.2 5,040.0
NonCurrenIlnvesImenIs !J 20.6 28.0
DeerredTaxAsseIs(neI) !4 704.4 467.8
LongTermLoansandAdvances !5 J,87J.6 J,969.4
J7,707.J J6,J99.0
Current Assets
lnvenIories !6 !9,489.J !7,J26.7
TradePeceivables !7 2!,869.9 !7,800.!
Cashand8ank8alances !8 4,J48.8 4,024.7
ShorITermLoansandAdvances !9 J,J96.7 J,06!.2
OIherCurrenIAsseIs 20 2,J26.6 !,2!0.5
5!,4J!.J 4J,42J.2
TOTAL 89,138.6 79,822.2
SeeaccompanyingnoIesormingparIoIheconsolidaIedinancialsIaIemenIs
lnIermsoourreporIaIIached
lorDeloitte Haskins & Sells lorLupin Limited
K. A. Katki Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma M. D. Gupta
ParIner Chairman ManagingDirecIor LxecuIiveDirecIor
Nilesh Gupta Vinita Gupta Dr. Vijay Kelkar
LxecuIiveDirecIor DirecIor DirecIor
Richard Zahn R. A. Shah Dr. K. U. Mada
DirecIor DirecIor DirecIor
Dileep C. Choksi
DirecIor
Place : Mumbai R. V. Satam
DaIed : May8,20!J CompanySecreIary
CONSOLIDATED BALANCE SHEET ASATMAPCHJ!,20!J
For the Current
Year Ended
31.03.2013
lorIhePrevious
YearLnded
J!.0J.20!2
INCOME:
PevenueromOperaIions(Gross) 2! 97,0J2.0 7!,249.J
Less:LxciseDuIy 6!9.0 420.2
PevenueromOperaIions(NeI) 96,4!J.0 70,829.!
OIherlncome 22 278.5 !4J.5
Total Revenue 96,691.5 70,972.6
EXPENSES:
CosIoPawandPackingMaIerialsConsumed 2J 22,24J.0 !8,!J8.6
PurchasesoSIockinTrade !5,!59.2 !!,069.5
ChangesinlnvenIories 24 (!,922.0) (J,!69.!)
olinishedGoods,WorkinProcessandSIockinTrade
Lmployee8eneiIsLxpense 25 !2,487.9 9,695.J
linanceCosIs 26 4!0.2 J54.7
DepreciaIionandAmorIisaIionLxpense !2 J,J2!.9 2,275.2
OIherLxpenses 27 25,745.J 20,647.7
Total Expenses 77,445.5 59,011.9
Profit before Tax 19,246.0 11,960.7
Tax Expense / (Benefit):
CurrenITaxLxpense 5,647.6 J,!J!.5
(Less):MATCrediILnIiIlemenI (J7J.5)
TaxexpenseorPriorYears 2J.5 (!.8)
Add:PeversaloMATCrediIorPriorYears !57.9
NeICurrenITaxLxpense 5,829.0 2,756.2
DeerredTax(neI) !2.6 J29.4
Profit after Tax before Minority Interest 13,404.4 8,875.1
Less:MinoriIylnIeresI 262.8 !98.6
Profit for the year 13,141.6 8,676.5
LarningsperequiIyshare(inH) JJ
Basic 29.39 19.43
Diluted 29.26 19.36
laceValueoLquiIyShare(inH) 2.00 2.00
SeeaccompanyingnoIesormingparIoIheconsolidaIedinancialsIaIemenIs
Dileep C. Choksi
DirecIor
CONSOLIDATED STATEMENT OF PROFIT AND LOSSlOPTHLYLAPLNDLDMAPCHJ!,20!J
98 | Lupin Limited
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
H in million H inmillion
A. Cash Flow from Operating Activities
ProiIbeoreTax !9,246.0 !!,960.7
AdjusImenIsor:
DepreciaIionandAmorIisaIionLxpense J,J2!.9 2,275.2
Lossonsale/wriIeoolixedAsseIs(neI) !44.9 !78.4
linanceCosIs 4!0.2 J54.7
Loss/(ProiI)onsaleoNonCurrenIlnvesImenIs(neI) (!0.6)
lnIeresIonlixedDeposiIswiIh8anks (!!5.9) (80.4)
DividendonNonCurrenIlnvesImenIs (0.5) (!.5)
ProvisionorDoubIulTradePeceivables 5!.8 J.J
ProvisionorDoubIulAdvances 7.J
LxpensesonLmployeesSIockOpIions/SIockAppreciaIionPighIs 4J.7 !5.5
ProvisionorlmpairmenIoAsseIs 256.8
ProiIonDisposaloSubsidiary (0.2)
ProvisionorDiminuIioninvalueoNonCurrenIlnvesImenIswriIIenback (0.2) (0.2)
8alanceswriIIenback (J2.7)
Unrealisedexchangeloss/(gain)onrevaluaIion/IranslaIion(neI) 72.5 (99.6)
NeIunrealisedexchangedierenceduringIheyear 4.2 (!7.0)
Operating Profit before Working Capital Changes 2J,442.5 !4,545.8
ChangesinworkingcapiIal:
AdjusImenIsor(increase)/decreaseinoperaIingasseIs:
lnvenIories (2,009.!) (4,!56.4)
TradePeceivables (J,924.8) (2,842.8)
ShorITermLoansandAdvances (J66.2) (749.8)
LongTermLoansandAdvances (277.J) (25!.7)
OIherCurrenIAsseIs (989.4) (J77.!)
AdjusImenIsorincrease/(decrease)inoperaIingliabiliIies:
TradePayables !,464.2 2,285.J
OIherCurrenILiabiliIies J7.4 (!64.0)
OIherNonCurrenILiabiliIies (20.8) !0J.J
ShorITermProvisions 254.8 JJ!.4
LongTermProvisions JJ7.7 !5.J
Cash Generated from Operations !7,949.0 8,7J9.J
NeIlncomeIaxpaid (5,4J8.7) (J,!J8.9)
Net Cash Flow from Operating Activities 12,510.3 5,600.4
B. Cash Flow from Investing Activities
CapiIalexpendiIureonixedasseIs,includingcapiIaladvances (5,5!!.!) (5,098.5)
ProceedsromsaleoixedasseIs 98.7 47.0
ProceedsromsaleoNonCurrenIlnvesImenIs 4.7 !7.9
ConsideraIionoracquisiIionoasubsidiarycompany (!02.!) (2,289.4)
8ankbalancesnoIconsideredasCashandcashequivalenIs(neI) !74.8 (!7!.4)
lnIeresIonlixedDeposiIswiIh8anks !!5.9 80.4
DividendonNonCurrenIlnvesImenIs 0.5 !.5
Net Cash used in Investing Activities (5,218.6) (7,412.5)
CONSOLIDATED CASH FLOW STATEMENT lOPTHLYLAPLNDLDMAPCHJ!,20!J
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
C. Cash Flow from Financing Activities
ProceedsromLongTerm8orrowings(neI) (!,468.8) !,9!6.6
ProceedsromShorITerm8orrowingsWorkingCapiIalLoans(neI) (J,!76.6) !,!50.0
ProceedsromissueoequiIyshares(LSOPs) !.7 0.9
SecuriIiesPremiumPeceived(LSOPs) !26.7 50.7
linanceCosIs (422.7) (J77.4)
Dividendpaid (!,4J4.0) (!,4!5.9)
TaxonDividend (255.2) (2J6.J)
Net Cash Flow (used in) / generated from Financing Activities (6,628.9) 1,088.6
Net increase / (decrease) in Cash and Cash Equivalents 662.8 (723.5)
CashandCashequivalenIsasaIIhebeginningoIheyear 2,446.5 2,958.8
CashandCashequivalenIsIakenoveronacquisiIionosubsidiarycompany - 2!!.2
Cash and Cash equivalents as at the end of the year 3,109.3 2,446.5
Reconciliation of Cash and Cash equivalents with the Balance Sheet
Cashand8ank8alancesasper8alanceSheeI(PeernoIe!8) 4,J48.8 4,024.7
UnrealisedgainonoreigncurrencycashandcashequivalenIs (J.0) (!66.9)
Less:8ankbalancesnoIconsideredasCashandCashequivalenIsas
deinedinASJCashllowSIaIemenIs(PeernoIe!8)
!,2J6.5 !,4!!.J
Cash and Cash equivalents as restated as at the year end 3,109.3 2,446.5
Notes :
!. TheaboveCashllowSIaIemenIhasbeenpreparedunderIhelndirecIMeIhodasseIouIinIheAccounIingSIandardJ
(ASJ),CashllowSIaIemenI.
2. Cash comprises cash on hand, CurrenI AccounIs and deposiIs wiIh banks. Cash equivalenIs are shorIIerm balances
(wiIh an original maIuriIy o Ihree monIhs or less rom Ihe daIe o acquisiIion), highly liquid invesImenIs IhaI are
readilyconverIibleinIoknownamounIsocashandwhicharesubjecIIoinsigniicanIriskochangesinvalue.

Dileep C. Choksi
DirecIor
DaIed: May8,20!J CompanySecreIary
100 | Lupin Limited
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES:
a) 8asisoaccounIingandpreparaIionoConsolidaIedlinancialSIaIemenIs:
i) TheinancialsIaIemenIsoIhesubsidiariesandassociaIeusedinIheconsolidaIionaredrawnupIoIhesamereporIing
daIeasIhaIoIheLupinLimiIed(IheCompany),namelyMarchJ!,20!J.
ii) TheConsolidaIedlinancialSIaIemenIsoIheCompanyhavebeenpreparedinaccordancewiIhIheGenerallyAccepIed
AccounIingPrinciplesinlndia(lndianGAAP)IocomplywiIhIheAccounIingSIandardsnoIiiedunderIheCompanies
(AccounIing SIandards) Pules, 2006 (as amended) and Ihe relevanI provisions o Ihe Companies AcI, !956. The
ConsolidaIed linancial SIaIemenIs have been prepared on accrual basis under Ihe hisIorical cosI convenIion. The
accounIingpoliciesadopIedinIhepreparaIionoIheConsolidaIedlinancialSIaIemenIsareconsisIenIwiIhIhose
ollowedinIhepreviousyear.
b) PrinciplesoConsolidaIion:
i) TheConsolidaIedlinancialSIaIemenIsoIheCompanyandiIssubsidiaries(IheGroup)havebeenconsolidaIedin
accordancewiIhIheAccounIingSIandard2!(AS2!)ConsolidaIedlinancialSIaIemenIs,onlinebylinebasisby
addingIogeIherIhebookvalueolikeiIemsoasseIs,liabiliIies,incomeandexpenses,aIerullyeliminaIinginIra
group balances, inIragroup IransacIions and Ihe unrealised proiIs/losses. Peerence in Ihese noIes Io Company,
Holding Company, Companies or Group shall mean Io include Lupin LimiIed, or any o iIs subsidiaries, unless
oIherwisesIaIed.
ii) The inancial sIaIemenIs o Ihe Company and iIs subsidiaries have been consolidaIed using uniorm accounIing
policiesorlikeIransacIionsandoIherevenIsinsimilarcircumsIancesasmenIionedinIhosepolicies.
iii) TheexcessocosIIoIheCompanyoiIsinvesImenIinIhesubsidiaries,onIheacquisiIiondaIesoverandaboveIhe
CompanysshareoequiIyinIhesubsidiaries,isrecognisedinIheConsolidaIedlinancialSIaIemenIsasGoodwill
on ConsolidaIion and carried orward in Ihe accounIs. The said Goodwill is noI amorIised, however, iI is IesIed
orimpairmenIaIeach8alanceSheeIdaIeandIheimpairmenIloss,iany,isprovidedor.AlIernaIively,whereIhe
shareoequiIyinIhesubsidiariesasonIhedaIeoinvesImenIisinexcessocosIoinvesImenIsoIheGroup,iIis
recognisedasCapiIalPeserveandshownunderIheheadPeservesandSurplus.
iv) MinoriIylnIeresIinIheneIasseIsoIheconsolidaIedsubsidiariesconsisIo:
a) TheamounIoequiIyaIIribuIableIominoriIiesasaIIhedaIeonwhichIheinvesImenIinasubsidiaryismade
and,
b) TheMinoriIiesshareomovemenIsinequiIysinceIhedaIeIheparenIsubsidiaryrelaIionshipcameinIoexisIence.
ThelossesapplicableIoIheminoriIyinexcessoIheminoriIyinIeresIinIheequiIyoIhesubsidiaryandurIher
lossesapplicableIoIheminoriIy,areadjusIedagainsIIhemajoriIyinIeresIexcepIIoIheexIenIIhaIIheminoriIy
hasabindingobligaIionIoandisableIomakegoodIhelosses.lIhesubsidiariessubsequenIlyreporIsproiI,all
suchproiIsareallocaIedIoIhemajoriIyinIeresIunIilIheminoriIysshareolossespreviouslyabsorbedbyIhe
majoriIyhasbeenrecovered.
c) MinoriIy lnIeresI is presenIed separaIely rom Ihe liabiliIies or asseIs and Ihe equiIy o Ihe shareholders in Ihe
consolidaIed8alanceSheeI.MinoriIylnIeresIinIheincomeorlossoIheCompanyisseparaIelypresenIed.
v) lncaseoassociaIe,whereIheCompanydirecIlyorindirecIlyIhroughsubsidiariesholdsmoreIhan20%oequiIy,
invesImenIsinassociaIeareaccounIedorusingequiIymeIhodinaccordancewiIhAccounIingSIandard2J(AS2J)
AccounIingorlnvesImenIinAssociaIesinConsolidaIedlinancialSIaIemenIs.
TheCompanyaccounIsoriIsshareinIhechangeinIheneIasseIsoIheassociaIe,posIacquisiIion,aIereliminaIing
unrealised proiI and losses resulIing rom IransacIions beIween Ihe Company and iIs associaIe, Ihrough iIs
ConsolidaIedSIaIemenIoProiIandLossIoIheexIenIsuchchangeisaIIribuIableIoIheAssociaIesSIaIemenIo
ProiIandLossandIhroughiIsreservesorIhebalance.
ThedierencebeIweenIhecosIoinvesImenIinIheassociaIeandIheshareoneIasseIsaIIheIimeoacquisiIion
oshareinIheassociaIeisidenIiiedasGoodwillorCapiIalPeserve,asIhecasemaybe,andincludedinIhecarrying
amounIoinvesImenIinIheassociaIe,andsodisclosed.
vi) ThedierencebeIweenIheproceedsromsale/disposaloinvesImenIinasubsidiaryandIhecarryingamounIo
asseIslessliabiliIiesasoIhedaIeosale/disposalisrecognisedinIheConsolidaIedSIaIemenIoProiIandLossas
IheproiIorlossonsale/disposaloinvesImenIinsubsidiary.
c) UseoLsIimaIes:
The preparaIion o Ihe ConsolidaIed linancial SIaIemenIs in conormiIy wiIh lndian GAAP requires Ihe ManagemenI
IomakeesIimaIesandassumpIionsconsideredinIhereporIedamounIsoasseIsandliabiliIies(includingconIingenI
liabiliIies)andIhereporIedincomeandexpensesduringIheyear.TheManagemenIbelievesIhaIIheesIimaIesusedin
IhepreparaIionoIheConsolidaIedlinancialSIaIemenIsareprudenIandreasonable.luIureresulIscoulddierdueIo
IheseesIimaIesandIhedierencesbeIweenIheacIualresulIsandIheesIimaIesarerecognisedinIheperiodsinwhich
IheresulIsareknown/maIerialise.
d) TangiblelixedAsseIs:
lixed AsseIs are carried aI cosI less accumulaIed depreciaIion and impairmenI losses, i any. The cosI o ixed asseIs
includesinIeresIonborrowingsaIIribuIableIoacquisiIionoqualiyingixedasseIsupIoIhedaIeIheasseIisreadyor
iIsinIendeduseandoIherincidenIalexpensesincurredupIoIhaIdaIe.LxchangedierencesarisingonresIaIemenI/
seIIlemenIolongIermoreigncurrencyborrowingsrelaIingIoacquisiIionodepreciableixedasseIsareadjusIedIo
IhecosIoIherespecIiveasseIsanddepreciaIedoverIheremaininguseullieosuchasseIs.SubsequenIexpendiIure
relaIingIoixedasseIsiscapiIalisedonlyisuchexpendiIureresulIsinanincreaseinIheuIurebeneiIsromsuchasseI
beyondiIspreviouslyassessedsIandardoperormance.
CapiIalworkinprogressinrespecIoasseIswhicharenoIreadyorIheirinIendedusearecarriedaIcosI,comprisingo
direcIcosIs,relaIedincidenIalexpensesandaIIribuIableinIeresI.
e) lnIangibleAsseIs:
lnIangibleasseIsarecarriedaIcosIlessaccumulaIedamorIisaIionandimpairmenIlosses,iany.ThecosIoaninIangible
asseI comprises o iIs purchase price, including any imporI duIies and oIher Iaxes (oIher Ihan Ihose subsequenIly
recoverable rom Ihe Iaxing auIhoriIies), and any direcIly aIIribuIable expendiIure on making Ihe asseI ready or iIs
inIendeduse.
) loreignCurrencyTransacIions/TranslaIions:
i) TransacIionsdenominaIedinoreigncurrencyarerecordedaIexchangeraIesprevailingaIIhedaIeoIransacIionor
aIraIesIhaIcloselyapproximaIeIheraIeaIIhedaIeoIheIransacIion.
ii) loreigncurrencymoneIaryiIems(oIherIhanderivaIiveconIracIs)oIheCompany,ouIsIandingaIIhebalancesheeI
daIeareresIaIedaIIheyearendraIes.NonmoneIaryiIemsoIheCompanyarecarriedaIhisIoricalcosI.
iii) LxchangedierencesarisingonseIIlemenI/resIaIemenIoshorIIermoreigncurrencymoneIaryasseIsandliabiliIies
oIheCompanyandiIsinIegraloreignoperaIionsarerecognisedasincomeorexpenseinIheConsolidaIedSIaIemenI
oProiIandLoss.
The exchange dierences arising on resIaIemenI / seIIlemenI o longIerm oreign currency moneIary iIems are
capiIalised as parI o Ihe depreciable ixed asseIs Io which Ihe moneIary iIem relaIes and depreciaIed over Ihe
remaininguseullieosuchasseIsoramorIisedonseIIlemenIoverIhemaIuriIyperiodosuchiIemsisuchiIems
donoIrelaIeIoacquisiIionodepreciableixedasseIs.TheunamorIisedbalanceiscarriedinIhe8alanceSheeIas
loreigncurrencymoneIaryiIemIranslaIiondierenceaccounIneIoIheIaxeecIIhereon,whereapplicable.
iv) Premium/discounIonorwardexchangeconIracIs,whicharenoIinIendedorIradingorspeculaIionpurposes,are
amorIisedoverIheperiodoIheconIracIsisuchconIracIsrelaIeIomoneIaryiIemsasaIIhe8alanceSheeIdaIe.
v) lnrespecIoIheoreignoices/branches,whichareinIegraloreignoperaIions,allrevenuesandexpensesduring
IheyeararereporIedaIaverageraIes.OuIsIandingbalancesinrespecIomoneIaryasseIsandliabiliIiesareresIaIed
aIIheyearendexchangeraIes.OuIsIandingbalancesinrespecIononmoneIaryasseIsandliabiliIiesaresIaIedaI
IheraIesprevailingonIhedaIeoIheIransacIion.NeIgain/lossonoreigncurrencyIranslaIionisrecognisedinIhe
ConsolidaIedSIaIemenIoProiIandLoss.
vi) loreignSubsidiaries:
lncaseooreignsubsidiaries,IhelocalaccounIsaremainIainedinIheirlocalcurrencyexcepIIhesubsidiarycompany
aISwiIzerlandwhoseaccounIsaremainIainedinUSD.TheinancialsIaIemenIsoIhesubsidiaries,whoseoperaIions
areinIegraloreignoperaIionsorIheCompany,havebeenIranslaIedIolndianPupeesonIheollowingbasis:
i) AllincomeandexpensesareIranslaIedaIIheaverageraIeoexchangeprevailingduringIheyear.
102 | Lupin Limited
ii) MoneIaryasseIsandliabiliIiesareIranslaIedaIIheclosingraIeonIhe8alanceSheeIdaIe.
iii) NonmoneIaryasseIsandliabiliIiesareIranslaIedaIhisIoricalraIes.
iv) The resulIing exchange dierence is accounIed in Lxchange PaIe Dierence on TranslaIion AccounI and is
charged/crediIedIoIheConsolidaIedSIaIemenIoProiIandLoss.
TheinancialsIaIemenIsosubsidiaries,whoseoperaIionsarenoninIegraloreignoperaIionsorIheCompany,have
beenIranslaIedIolndianPupeesonIheollowingbasis:
i) AllincomeandexpensesareIranslaIedaIIheaverageraIeoexchangeprevailingduringIheyear.
ii) MoneIaryandnonmoneIaryasseIsandliabiliIiesareIranslaIedaIIheclosingraIeasonIhe8alanceSheeIdaIe.
iii) TheresulIingexchangedierenceisaccounIedinloreignCurrencyTranslaIionPeserveandcarriedinIhe8alance
SheeI.
g) HedgeAccounIing:
TheCompanyusesoreigncurrencyorwardconIracIsandcurrencyopIionsIohedgeiIsrisksassociaIedwiIhoreign
currencylucIuaIionsrelaIingIohighlyprobableorecasIIransacIions.TheCompanydesignaIessuchorward/opIion
conIracIsinacashlowhedgingrelaIionshipbyapplyingIhehedgeaccounIingprinciplesseIouIinAccounIingSIandard
J0(ASJ0)linanciallnsIrumenIs:PecogniIionandMeasuremenI.Theseorward/opIionconIracIsaresIaIedaIair
value aI each reporIing daIe. Changes in Ihe air value o Ihese orward / opIion conIracIs IhaI are designaIed and
eecIiveashedgesouIurecashlowsarerecogniseddirecIlyinCashllowHedgePeserveAccounIunderPeservesand
Surplus,neIoapplicabledeerredincomeIaxesandIheineecIiveporIionisrecognisedimmediaIelyinIheConsolidaIed
SIaIemenIoProiIandLoss.AmounIsaccumulaIedinIheCashllowHedgePeserveAccounIarereclassiiedIoIhe
ConsolidaIedSIaIemenIoProiIandLossinIhesameperiodduringwhichIheorecasIedIransacIionaecIsproiIand
loss.HedgeaccounIingisdisconIinuedwhenIhehedginginsIrumenIexpiresorissold,IerminaIed,orexercised,orno
longerqualiiesorhedgeaccounIing.lororecasIedIransacIions,anycumulaIivegainorlossonIhehedginginsIrumenI
recognisedinCashllowHedgePeserveAccounIisreIainedunIilIheorecasIedIransacIionoccurs.lIheorecasIed
IransacIion is no longer expecIed Io occur, Ihe neI cumulaIive gain or loss recognised in Cash llow Hedge Peserve
AccounIisimmediaIelyIranserredIoIheConsolidaIedSIaIemenIoProiIandLoss.
h) DerivaIiveConIracIs:
TheCompanyenIersinIoderivaIiveconIracIsinIhenaIureocurrencyopIionsandorwardconIracIswiIhaninIenIionIo
hedgeiIsexisIingasseIsandliabiliIiesandhighlyprobableorecasIIransacIionsinoreigncurrency.DerivaIiveconIracIs
whicharecloselylinkedIoIheexisIingasseIsandliabiliIiesareaccounIedasperIhepolicysIaIedorloreignCurrency
TransacIions/TranslaIions.
DerivaIiveconIracIsdesignaIedasahedginginsIrumenIorhighlyprobableorecasIIransacIionsareaccounIedasper
IhepolicysIaIedorHedgeAccounIing.
All oIher derivaIive conIracIs are markedIomarkeI on a porIolio basis and losses, i any, are recognised in Ihe
ConsolidaIedSIaIemenIoProiIandLoss.GainsarisingonIhesamearenoIrecognised,unIilrealised,ongroundso
prudence.
i) lnvesImenIs:
LongIerminvesImenIsarecarriedindividuallyaIcosI,lessprovisionordiminuIion,oIherIhanIemporary,inIhevalue
o such invesImenIs. CosI o invesImenIs includes expenses direcIly incurred on acquisiIion o invesImenIs. CurrenI
invesImenIsarecarriedindividuallyaIlowerocosIandairvalue.
j) lnvenIories:
lnvenIoriesoallprocuredmaIerialsandSIockinTradearevaluedaIIhelowerocosI(onmovingweighIedaverage
basis)andIheneIrealisablevalueaIerprovidingorobsolescenceandoIherlosses,whereconsiderednecessary.CosI
includesallchargesinbringingIhegoodsIoIheirpresenIlocaIionandcondiIion,includingocIroiandoIherlevies,IransiI
insuranceandreceivingcharges.WorkinprocessandinishedgoodsincludeappropriaIeproporIionooverheadsand,
whereapplicable,exciseduIy.
k) PevenuePecogniIion:
Pevenue rom sale o goods is recognised neI o reIurns, producI expiry claims and Irade discounIs, on Iranser o
signiicanIrisksandrewardsinrespecIoownershipIoIhebuyer.SalesincludeexciseduIybuIexcludesalesIaxand
valueaddedIax.SalesarealsoneIIedoorprobablenonsaleablereIurnogoodsromIhecusIomers,esIimaIedon
IhebasisohisIoricaldaIaosuchreIurns.
lncomeromPesearchServicesincludingsaleoIechnology/knowhow(righIs,licenses,dossiersandoIherinIangibles)
isrecognisedinaccordancewiIhIheIermsoIheconIracIwiIhcusIomerswhenIherelaIedperormanceobligaIionis
compleIed,orwhenrisksandrewardsoownershipareIranserred,asapplicable.
Pevenue(includinginrespecIoinsuranceoroIherclaimseIc.)isrecognisedwheniIisreasonableIoexpecIIhaIIhe
ulIimaIecollecIionwillbemade.
lnIeresIincomeisaccounIedonaccrualbasis.DividendrominvesImenIisrecognisedasrevenuewhenrighIIoreceive
isesIablished.
Pevenue rom service charges is recognised on rendering o Ihe relaIed services in accordance wiIh Ihe Ierms o Ihe
agreemenI.
l) DepreciaIionandAmorIisaIion:
DepreciaIiononixedasseIsisprovidedonsIraighIlinebasisinIhemannerandaIIheraIesprescribedinScheduleXlV
IoIheCompaniesAcI,!956,excepIinrespecIoIheollowingcaIegoryoasseIs,inwhosecaselieoasseIsisassessed
asunder:
i) TheCompanyandSubsidiaryinlndia
Assets Estimated Useful Life
CapIivePowerPlanIaITarapur !5Years
CerIainAsseIsprovidedIoemployees JYears
LeaseholdLand OverThePeriodoLease
lnIangibleAsseIs(CompuIerSoIware) JIo6Years
lnIangibleAsseIs(GoodwillAcquired) 5Years
lnIangibleAsseIs(TrademarkandLicences) 5Years
AsseIscosIingH5000/orlessaredepreciaIedaI!00%raIeonproraIabasisinIheyearopurchase.
ii) Subsidiariesin!apan
Assets Estimated useful life
8uildings* 7IoJ8years
AIIachedaciliIies* JIo!8years
PlanIandMachineryandLquipmenIs 4Io!0years
Tools 5years
lurniIureandlixIures 2Io20years
Vehicles JIo7years
lnIangibles
MarkeIingPighIs 5years
CompuIerSoIware 5years
TrademarkandLicences JIo!0years
*lorasseIsacquiredromApril!,!998,sIraighIlinemeIhodisollowed.
iii) SubsidiaryinUSA
CompuIers Jyears
lurniIureandliIIings 5years
OiceandOIherLquipmenIs 7years
SoIware 5years
iv) SubsidiariesinAusIralia
lurniIureandlixIures !0years
CompuIers Jyears
OIherLquipmenIs 6.7years
ProducILicences 5Io!0years
Trademarks 5years
CompuIerSoIware Jyears
GoodwillAcquired 5years
104 | Lupin Limited
v) SubsidiaryinSouIhArica
PlanI,MachineryandLquipmenIs 5years
Vehicles 5years
lurniIureandlixIures 6years
OiceLquipmenIs(includingasseIsunderinancelease) 5years
CompuIers Jyears
CompuIerSoIware 2years
Trademarks !0years
Dossiers/Licences !0Io20years*
*ConsideringproducIliecycle,markeIdemandorproducIs,expecIedusageanduIureeconomicbeneiIsIoIhe
Subsidiary.
vi) SubsidiaryinGermany
8uildings* !0IoJ0years
PlanI,MachineryandLquipmenIs 5Io!5years
lurniIureandlixIures JIo!4years
CompuIers JIo5years
CompuIerSoIware JIo5years
MarkeIingPighIs JIo!0years
*8uildingannexcompleIedin!989(esIimaIeduseullie25years)andIheresidenIialbuildingpurchasedin2005
(esIimaIeduseullie50years)aredepreciaIedaccordingIoIhereducingbalancemeIhodinaccordancewiIhIax
regulaIions.
vii) SubsidiariesinPhilippines
LeaseholdimprovemenIs JIo5years
Vehicles(includingunderinancelease) 2Io5years
lurniIureandlixIures 5years
PlanI,MachineryandLquipmenIs JIo5years
CompuIerSoIware Jyears
MarkeIingPighIs !0years
viii)SubsidiaryinSwiIzerland
CompuIers Jyears
MarkeIingPighIs 5years
TheesIimaIeduseullivesoinIangibleasseIsandIheamorIisaIionperiodarereviewedaIIheendoeachinancial
yearandIheamorIisaIionmeIhodisrevisedIorelecIIhechangedpaIIern.
m) Lmployee8eneiIs:
LmployeebeneiIsincludeprovidenIund,socialsecuriIy,graIuiIyund,compensaIedabsences,posIemploymenIand
oIherlongIermbeneiIs.
a. PosILmploymenI8eneiIsandOIherLongIerm8eneiIs:
i) DeinedConIribuIionPlan:
The Groups conIribuIion Iowards providenI und, social securiIy and superannuaIion und or cerIain eligible
employeesareconsideredIobedeinedconIribuIionplansasIheGroupdoesnoIcarryanyurIherobligaIions,
aparI rom Ihe conIribuIions made on a monIhly basis. Such conIribuIions are charged as an expense Io Ihe
ii) Deined8eneiIandOIherLongIerm8eneiIPlans:
CompanysliabiliIiesIowardsdeinedbeneiIplansandoIherlongIermbeneiIsviz.graIuiIyandcompensaIed
absencesnoIexpecIedIooccurwiIhinIwelvemonIhs,aIerIheendoIheperiodinwhichemployeerenders
service,aredeIerminedusingIheProjecIedUniICrediIMeIhod.AcIuarialvaluaIionsunderIheProjecIedUniICrediI
MeIhodarecarriedouIaIIhe8alanceSheeIdaIe.AcIuarialgainsandlossesarerecognisedinIheConsolidaIed
SIaIemenIoProiIandLossinIheperiodooccurrenceosuchgainsandlosses.PasIservicecosIisrecognised
immediaIelyIoIheexIenIbeneiIsarevesIed,oIherwiseiIisamorIisedonsIraighIlinebasisoverIheremaining
averageperiodunIilIhebeneiIsbecomevesIed.
The reIiremenI beneiI obligaIion recognised in Ihe balance sheeI represenIs Ihe presenI value o Ihe deined
beneiIobligaIionasadjusIedorunrecognisedpasIservicecosI,andasreducedbyIheairvalueoplanasseIs.
AnyasseIresulIingromIhiscalculaIionislimiIedIopasIservicecosI,plusIhepresenIvalueoavailablereunds
andreducIionsinuIureconIribuIionsIoIhescheme.
ProvidenI lund or cerIain employees is adminisIered Ihrough Ihe Lupin LimiIed Lmployees ProvidenI lund
TrusI. Periodic conIribuIions Io Ihe lund are charged Io Ihe ConsolidaIed SIaIemenI o ProiI and Loss. The
CompanyhasanobligaIionIomakegoodIheshorIall,iany,beIweenIhereIurnromIheinvesImenIoIhe
TrusIandinIeresIraIenoIiiedbyIheGovernmenI.
b. ShorITermLmployee8eneiIs:
ShorIIermemployeebeneiIsexpecIedIobepaidinexchangeorIheservicesrenderedbyemployeesarerecognised
undiscounIedduringIheperiodemployeerendersservices.ShorIIermcompensaIedabsencesareprovidedorbased
onesIimaIesinaccordancewiIhCompanyrules.
n) Taxesonlncome:
lncomeIaxesareaccounIedorinaccordancewiIhAccounIingSIandard22(AS22)AccounIingorTaxesonlncome.
TaxexpensecomprisesboIhCurrenITaxandDeerredTax.CurrenIIaxisIheamounIoIaxpayableonIaxableincome
orIheyearasdeIerminedinaccordancewiIhIheprovisionsoapplicableIaxlawsoIherespecIivejurisdicIionwhere
IheCompanyandiIsSubsidiariesarelocaIed.
MinimumAlIernaIeTax(MAT)paidinaccordancewiIhIheIaxlaws,whichgivesuIureeconomicbeneiIsinIheormo
adjusImenIIouIureincomeIaxliabiliIy,isconsideredasanasseIiIhereisconvincingevidenceIhaIIheCompanywill
paynormalincomeIax.Accordingly,MATisrecognisedasanasseIinIhe8alanceSheeIwheniIisprobableIhaIuIure
economicbeneiIassociaIedwiIhiIwilllowIoIheCompany.
DeerredIaxisrecognisedonIimingdierences,beingIhedierencesbeIweenIheIaxableincomeandIheaccounIing
income IhaI originaIe in one period and are capable o reversal in one or more subsequenI periods. Deerred Iax is
measuredusingIheIaxraIesandIheIaxlawsenacIedorsubsIanIivelyenacIedasaIIhereporIingdaIe.DeerredIax
liabiliIiesarerecognisedorallIimingdierences.DeerredIaxasseIsinrespecIounabsorbeddepreciaIionandcarry
orwardolossesarerecognisedonlyiIhereisvirIualcerIainIyIhaIIherewillbesuicienIuIureIaxableincomeavailable
Io realise such asseIs. Deerred Iax asseIs are recognised or Iiming dierences o oIher iIems only Io Ihe exIenI IhaI
reasonable cerIainIy exisIs IhaI suicienI uIure Iaxable income will be available againsI which Ihese can be realised.
DeerredIaxasseIsandliabiliIiesareoseIisuchiIemsrelaIeIoIaxesonincomeleviedbyIhesamegoverningIaxlaws
andIheGrouphasalegallyenorceablerighIorsuchseIo.DeerredIaxasseIsarereviewedaIeach8alanceSheeIdaIe
orIheirrealisabiliIy.
o) OperaIingLeases:
AsseIsIakenonleaseunderwhichallrisksandrewardsoownershipareeecIivelyreIainedbyIhelessorareclassiiedas
operaIinglease.LeasepaymenIsunderoperaIingleasesarerecognisedinIheConsolidaIedSIaIemenIoProiIandLoss
onasIraighIlinebasisinaccordancewiIhIherespecIiveleaseagreemenIs.
p) linanceLeases:
AsseIsacquiredunderleasewhereIheCompanyhassubsIanIiallyallIherisksandrewardsoownershipareclassiiedas
inanceleases.SuchasseIsarecapiIalisedaIIheincepIionoIheleaseaIIheloweroIheairvalueorIhepresenIvalueo
minimumleasepaymenIsandaliabiliIyiscreaIedoranequivalenIamounI.TherenIobligaIionsneIoinIeresIcharges
arerelecIedassecuredloans.
q) Provisions,ConIingenILiabiliIiesandConIingenIAsseIs:
AprovisionisrecognisedwhenIheCompanyhasapresenIobligaIionasaresulIopasIevenIsandiIisprobableIhaI
anouIloworesourceswillberequiredIoseIIleIheobligaIioninrespecIowhichareliableesIimaIecanbemade.
Provisions(excludingreIiremenIbeneiIs)arenoIdiscounIedIoIheirpresenIvalueandaredeIerminedbasedonIhebesI
esIimaIerequiredIoseIIleIheobligaIionaIIhe8alanceSheeIdaIe.ThesearereviewedaIeach8alanceSheeIdaIeand
adjusIedIorelecIIhecurrenIbesIesIimaIes.ConIingenIliabiliIiesaredisclosedinIheNoIes.ConIingenIliabiliIiesare
disclosedor(!)possibleobligaIionswhichwillbeconirmedonlybyuIureevenIsnoIwhollywiIhinIheconIroloIhe
Companyor(2)presenIobligaIionsarisingrompasIevenIswhereiIisnoIprobableIhaIanouIloworesourceswillbe
requiredIoseIIleIheobligaIionorareliableesIimaIeoIheamounIoIheobligaIioncannoIbemade.ConIingenIasseIs
arenoIrecognisedinIheConsolidaIedlinancialSIaIemenIs.
106 | Lupin Limited
r) 8orrowingCosIs:
8orrowingcosIsincludeinIeresI,amorIisaIionoancillarycosIsincurredandexchangedierencesarisingromoreign
currency borrowings Io Ihe exIenI Ihey are regarded as an adjusImenI Io Ihe inIeresI cosI. CosIs in connecIion wiIh
Ihe borrowing o unds Io Ihe exIenI noI direcIly relaIed Io Ihe acquisiIion o qualiying asseIs are charged Io Ihe
ConsolidaIed SIaIemenI o ProiI and Loss over Ihe Ienure o Ihe loan. 8orrowing cosIs, allocaIed Io and uIilised or
qualiyingasseIs,perIainingIoIheperiodromcommencemenIoacIiviIiesrelaIingIoconsIrucIion/developmenIoIhe
qualiyingasseIupIoIhedaIeocapiIalisaIionosuchasseIisaddedIoIhecosIoIheasseIs.CapiIalisaIionoborrowing
cosIsissuspendedandchargedIoIheConsolidaIedSIaIemenIoProiIandLossduringexIendedperiodswhenacIive
developmenIacIiviIyonIhequaliyingasseIsisinIerrupIed.
s) SIockbasedCompensaIion:
i) LmployeesSIockOpIionPlans(LSOPs):
The compensaIion cosI o sIock opIions granIed Io employees is measured by Ihe inIrinsic value meIhod, i.e. Ihe
dierencebeIweenIhemarkeIpriceoIheCompanyssharesonIhedaIeoIhegranIoopIionsandIheexercise
priceIobepaidbyIheopIionholders.ThecompensaIioncosI,iany,isamorIiseduniormlyoverIhevesIingperiod
oIheopIions.
ii) SIockAppreciaIionPighIs(SAPs):
ThecompensaIioncosIoSAPsgranIedIoemployeesismeasuredbyIheinIrinsicvaluemeIhod,i.e.Iheexcesso
IhemarkeIpriceoIheCompanyssharesasaIIheperiodendandIheacquisiIionpriceasonIhedaIeogranI.The
compensaIioncosIisamorIiseduniormlyoverIhevesIingperiodoIheSAPs.
I) GovernmenIGranIs,subsidiesandexporIincenIives:
GovernmenI granIs and subsidies are accounIed when Ihere is reasonable assurance IhaI Ihe Company will comply
wiIh Ihe condiIions aIIached Io Ihem and iI is reasonably cerIain IhaI Ihe ulIimaIe collecIion will be made. CapiIal
granIsrelaIingIospeciicixedasseIsarereducedromIhegrossvalueoIherespecIiveixedasseIs.PevenuegranIsare
recognisedinIheConsolidaIedSIaIemenIoProiIandLoss.
LxporIbeneiIsavailableunderprevalenIschemesareaccruedinIheyearinwhichIhegoodsareexporIedandIhereis
nouncerIainIyinreceivingIhesame.
u) PesearchandDevelopmenI:
Pevenue expendiIure incurred on research and developmenI is charged Io Ihe respecIive heads in Ihe ConsolidaIed
SIaIemenIoProiIandLossinIheyeariIisincurred,unlessaproducIsIechnologicaleasibiliIyhasbeenesIablished,
in which case such expendiIure is capiIalised. The amounI capiIalised comprises o expendiIure IhaI can be direcIly
aIIribuIedorallocaIedonareasonableandconsisIenIbasisorcreaIing,producingandmakingIheasseIreadyoriIs
inIendeduse.lixedasseIsuIilisedorresearchanddevelopmenIarecapiIalisedanddepreciaIedinaccordancewiIhIhe
policiessIaIedorTangiblelixedAsseIsandlnIangibleAsseIs.
LxpendiIure on inlicensed developmenI acIiviIies, whereby research indings are applied Io a plan or design or Ihe
producIiononeworsubsIanIiallyimprovedproducIsandprocesses,iscapiIalised,iIhecosIcanbereliablymeasured,
IheproducIorprocessisIechnicallyandcommerciallyeasibleandIheCompanyhassuicienIresourcesIocompleIeIhe
developmenIandIouseandsellIheasseI.
v) lmpairmenIoAsseIs:
The carrying values o asseIs / cash generaIing uniIs aI each 8alance SheeI daIe, are reviewed or impairmenI. l any
indicaIion o impairmenI exisIs, Ihe recoverable amounI o such asseIs is esIimaIed and impairmenI is recognised, i
IhecarryingamounIoIheseasseIsexceedsIheirrecoverableamounI.TherecoverableamounIisIhegreaIeroIheneI
sellingpriceandIheirvalueinuse.ValueinuseisarrivedaIbydiscounIingIheuIurecashlowsIoIheirpresenIvalue
basedonanappropriaIediscounIacIor.WhenIhereisindicaIionIhaIanimpairmenIlossrecognisedoranasseIin
earlieraccounIingperiodsnolongerexisIsormayhavedecreased,suchreversaloimpairmenIlossisrecognisedinIhe
ConsolidaIedSIaIemenIoProiIandLoss,excepIincaseorevaluedasseIs.
w) Larningspershare:
8asicearningspershareiscompuIedbydividingIheproiI/(loss)aIerIax(includingIheposIIaxeecIoexIraordinary
iIems,iany)byIheweighIedaveragenumberoequiIysharesouIsIandingduringIheyear.DiluIedearningspershare
iscompuIedbydividingIheproiI/(loss)aIerIax(includingIheposIIaxeecIoexIraordinaryiIems,iany)byIhe
weighIedaveragenumberoequiIysharesouIsIandingduringIheyearadjusIedorIheeecIsoalldiluIivepoIenIial
equiIyshares.
2. SHARE CAPITAL
a) Share Capital
As at 31 March 2013 AsaIJ!March20!2
No. of Shares Hin million No.oShares Hinmillion
Authorised
LquiIySharesoH2each 500,000,000 !,000.0 500,000,000 !,000.0
Issued, Subscribed and Paid up
LquiIySharesoH2eachullypaid 447,529,49J 895.! 446,64!,68! 89J.J
TOTAL 447,529,493 895.1 446,641,681 893.3
b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period
ParIiculars As at 31 March 2013 AsaIJ!March20!2
LquiIySharesouIsIandingaIIhebeginningoIheyear 446,64!,68! 89J.J 446,20!,!89 892.4
LquiIySharesissuedduringIheyearinIheormoLSOPs 887,8!2 !.8 440,492 0.9
LquiIySharesouIsIandingaIIheendoIheyear 447,529,493 895.1 446,641,681 893.3
c) Rights attached to Equity Shares
TheCompanyhasonlyoneclassoequiIyshareswiIhvoIingrighIshavingaparvalueoH2pershare.TheCompany
declares and pays dividends in lndian Pupees. The inal dividend proposed by Ihe 8oard o DirecIors is subjecI Io Ihe
approvaloIheshareholdersaIIheensuingAnnualGeneralMeeIing.
DuringIheyearendedJ!March20!J,IheamounIopersharedividendrecognisedasdisIribuIionsIoequiIyshareholders
isH 4(previousyearH J.2)
lnIheevenIoliquidaIionoIheCompany,IheshareholdersoequiIyshareswillbeenIiIledIoreceiveremainingasseIso
IheCompanyaIerdisIribuIionoallpreerenIialamounIs.ThedisIribuIionwillbeinproporIionIoIhenumberoequiIy
sharesheldbyIheshareholders.
d) Details of shares held by each shareholder holding more than 5% equity shares
NameoShareholder As at 31 March 2013 AsaIJ!March20!2
No. of Shares % of Holding No.oShares %oHolding
ZymaLaboraIoriesLimiIed 54,960,490 !2.28 54,960,490 !2.J!
PahaslnvesImenIsPvI.LimiIed 45,699,5!0 !0.2! 45,699,5!0 !0.2J
Visiomed(lndia)PvI.LimiIed 4J,5!4,660 9.72 4J,5!4,660 9.74
LupinMarkeIingPvI.LimiIed 40,40!,000 9.0J 40,40!,000 9.05
e) Shares reserved for issuance under Stock Option Plans of the Company
No. of Shares No.oShares
LupinLmployeesSIockOpIionPlan200J 96!,J60 !,2!0,40J
LupinLmployeesSIockOpIionPlan2005 784,995 !,J06,290
LupinLmployeesSIockOpIionPlan20!! J,546,!78 J,600,000
LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan2005 4J7,089 500,74!
LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan20!! 900,000 900,000
f) Aggregate number of shares issued during last five years pursuant to Stock Option Plans of the Company
Aggregate No. of Shares AggregaIeNo.oShares
LquiIyShares:
lssuedundervariousSIockOpIionPlansoIheCompany 5,!85,96J 4,95J,986
g) NoshareshavebeenalloIedwiIhouIpaymenIbeingreceivedincashorbywayobonussharesduringIheperiodoive
yearsimmediaIelyprecedingIhe8alanceSheeIdaIe.
108 | Lupin Limited
3. RESERVES AND SURPLUS
As at
31.03.2013
AsaI
J!.0J.20!2
Capital Reserve
lnvesImenISubsidiesromCenIralGovernmenI
8alanceasperlasI8alanceSheeI !.0 !.0
lnvesImenISubsidiesromSIaIeGovernmenI
8alanceasperlasI8alanceSheeI 8.2 8.2
OnresIrucIuringocapiIaloIheCompanyunderIheSchemeoAmalgamaIion
26J.9 26J.9
Capital Redemption Reserve
8alanceasperlasI8alanceSheeI !26.5 !26.5
!26.5 !26.5
Securities Premium Account
8alanceasperlasI8alanceSheeI 5,248.6 5,!97.9
Add:AddiIionduringIheyear* !29.5 50.7
5,J78.! 5,248.6
Employees Stock Options Outstanding (PeernoIeJ5)
Employees Stock Options Outstanding
8alanceasperlasI8alanceSheeI J!.5 20.J
Add:OpIionsgranIedduringIheyear !4.6 !!.2
Less:LxercisedduringIheyear 2.9
8alanceasaIIheyearend(A) 4J.2 J!.5
Deferred Employees Stock Options Cost
Less:AmorIisaIionduringIheyear !2.9 !2.0
8alanceasaIIheyearend(8) 8.7 7.0
(A8) J4.5 24.5
Employee Stock Appreciation Rights Outstanding (PeernoIeJ6)
8alanceasperlasI8alanceSheeI J.5
Add:AddiIionsduringIheyear J0.8 J.5
8alanceasaIIheyearend J4.J J.5
General Reserve
8alanceasperlasI8alanceSheeI !!,5!5.4 !0,0!5.4
Add:TranserredromSurplusinIheConsolidaIedSIaIemenIoProiIandLoss !,500.0 !,500.0
!J,0!5.4 !!,5!5.4
Amalgamation Reserve
8alanceasperlasI8alanceSheeI J!7.9 J!7.9
J!7.9 J!7.9
Cash Flow Hedge Reserve (PeernoIeJ9)
8alanceasperlasI8alanceSheeI (579.8) 5!.2
Add:CrediIed/(DebiIed)duringIheyear(neI)|neIodeerredIaxo 44!.9 (6J!.0)
H!60.!million(previousyearH2J9.0million)
(!J7.9) (579.8)
Foreign Currency Translation Reserve (PeernoIe42)
8alanceasperlasI8alanceSheeI 969.9 (!J.0)
Add/(Less):LxchangePaIeDierenceonTranslaIion(neI) (28.0) 982.9
94!.9 969.9
Surplus in the Consolidated Statement of Profit and Loss
8alanceasperlasI8alanceSheeI 2!,J45.2 !5,946.!
Add:ProiIorIheyear !J,!4!.6 8,676.5
Less:TranserIoGeneralPeserve !,500.0 !,500.0
Add:TranserromMinoriIylnIeresI(PeernoIe4J) 280.6
Less:DividendsonLquiIySharesbyOverseasSubsidiaries 9J.4
Less:ProposedDividendonLquiIyShares !,790.! !,429.2
Less:DividendonLquiIySharesissuedaIerIhepreviousyearend 0.9 0.J
Less:CorporaIeTaxonDividend J04.J 254.5
8alanceasaIIheyearend J!,!72.! 2!,J45.2
TOTAL 51,146.7 39,235.6
*PepresenIsamounIreceivedonalloImenIo887,8!2(previousyear440,492)LquiIySharesoH2each,pursuanIIo
LupinLmployeesSIockOpIionPlans.|PeernoIeJ5(a).
4. LONG-TERM BORROWINGS
As at
31.03.2013
AsaI
J!.0J.20!2
Secured
loreignCurrencyTermLoansrom8anks J44.2 2!!.!
LongTermMaIuriIiesolinanceLeaseObligaIions|PeernoIeJ4(b) J5.J 66.5
J79.5 277.6
Unsecured
8onds 2!8.6 2J5.7
loreignCurrencyTermLoansrom8anks !,580.5 J,484.6
DeerredSalesTaxLoanromGovernmenIoMaharashIra 54.6 5J.0
TermLoansromCouncilorScienIiicandlndusIrialPesearch(CSlP) !85.6 2!6.5
TermLoansromDeparImenIoScienceandTechnology(DST) 5!.8 62.2
2,09!.! 4,052.0
TOTAL 2,470.6 4,329.6
Notes:
a) TermLoansoasubsidiarycompanylocaIedin!apanaggregaIingH2,577.!milllion(securedH45J.!million)carriesinIeresI
raIeinIherangeo0.52%Io2.!5%p.a.andaresecuredbyirsIlegal/equiIablemorIgageonimmovableasseIsoIhesaid
subsidiary.TheloanmaIuresaIvariousdaIesbeginingromyear20!JupIoyear20!7.
b) SecuredTermLoansoasubsidiarycompanylocaIedinGermanyconsisIso2loansandcarriesinIeresIraIeinIherangeo
4.25%5.05%p.a.LoansaresecuredagainsImorIgageoimmovableproperIy.lirsIloanoH42.9millionisrepayablein
monIhlyinsIallmenIsoH0.5millionIillJ0November2020.SecondloanoH!2.8millionrepayableinmonIhlyinsIallmenIs
(includinginIeresI)oH0.!millionIilllebruary2042.
c) SecuredTermLoanoH!2.!millionoasubsidiarycompanylocaIedinAusIraliacarriesinIeresIraIeo6.45%p.a.Theloan
isrepayableromJ!December20!0onwardsin!6quarIerlyinsIallmenIsoH!.4millioneach.Theloanissecuredbyixed
andloaIingchargeoverallasseIs.
d) 8ondsoasubsidiarycompanylocaIedin!apanareredeemableaIparaIIheendoIhreeyearsromIhedaIeorespecIive
alloImenI.TheycarryinIeresIraIeinIherangeo0.90%Io!.08%p.a.ThesaidsubsidiaryhasanopIionIoredeemIhese
bondsearlier.
e) UnsecuredloreignCurrencyTermLoansrom8anksconsisIsoloanoUSD20million(H!,085.7million).Theloanbears
inIeresI_Ll8OPplus!.05%andisrepayableaIerJyearsininsIallmenIsoUSD!0million(H542.9million)eachromIhe
daIeoIheiroriginaIiononJ!une20!Jand29!uly20!J.
) UnsecuredTermLoanoasubsidiarycompanylocaIedinGermanyconsisIso2loansandcarriesinIeresIraIeinIherange
o4.85%5.80%p.a.LoanshavebeenguaranIeedbyIheCompany.lirsIloanoH7.6millionisrepayableinsixmonIhly
insIallmenIsoH!.!millionIillJ0SepIember20!6.SecondloanoH!7.4millionisrepayablein6biannualinsIallmenIso
H2.9millionsIarIingromJ0March20!4.
g) DeerredSalesTaxLoanisinIeresIreeandpayablein5equalannualinsIallmenIsaIerexpiryoiniIial!0yearsmoraIorium
periodromeachsuchyearodeerralperiodrom!99899Io2009!0.
h) TermLoansromCSlPcarryinIeresIoJ%p.a.andispayablein7annualinsIallmenIsoHJ0.9millioneachalongwiIhinIeresI.
i) TermLoansromDSTcarryinIeresIoJ%p.a.andispayablein6annualinsIallmenIsoH!0.4millioneachalongwiIhinIeresI.
j) linanceleaseobligaIionsIolinanciallnsIiIuIionsrepresenIspresenIvalueominimumleaserenIalspayableandaresecured
byhypoIhecaIionoconcernedplanI,machinery,equipmenIsandvehicles.
k) TheGrouphasnoIdeaulIedonrepaymenIoloansandinIeresIduringIheyear.
5. DEFERRED TAX LIABILITIES (NET)
As at
31.03.2013
AsaI
J!.0J.20!2
Tax effect of items constituting Deferred Tax Liabilities
OndierencesbeIweenbookandIaxdepreciaIion 2,822.J 2,J79.4
AmorIisaIionolnIangibles !2.6 9.2
OIhers !.9 !.J
2,8J6.8 2,J89.9
Less : Tax effect of items constituting Deferred Tax Assets
ProvisionordoubIulIradereceivables J8.2 2J.5
ProvisionorVPSCompensaIion 5J.2 6J.4
ProvisionorLmployee8eneiIs 2J!.! 99.4
ProvisionorLxpenses 5.0 4.5
ProvisionorObsoleIelnvenIory !.7 0.7
LeasingLiabiliIy 0.7 !.2
CashllowHedgePeserve 5J.9 2!4.0
OIhers !!6.2 7J.!
500.0 479.8
TOTAL 2,336.8 1,910.1
110 | Lupin Limited
6. OTHER LONG-TERM LIABILITIES
As at
31.03.2013
AsaI
J!.0J.20!2
TradePayables !J7.6 !J9.J
MarkIoMarkeIDerivaIiveLiabiliIies 2.8 2J8.2
lnIeresIAccruedbuInoIdueon8orrowings 9.9 2J.J
DeposiIs(aIsubsidiary) JJ9.! J44.!
OIherPayables !!.8 !2.6
TOTAL 501.2 757.5
7. LONG-TERM PROVISIONS
ProvisionsorLmployee8eneiIs
GraIuiIy J60.J 90.0
PeIiremenI8eneiIs 44!.0 424.!
CompensaIedAbsences J0J.J 2J!.5
ProvidenIlund !9.9 24.6
TOTAL 1,124.5 770.2
8. SHORT-TERM BORROWINGS
Secured
WorkingCapiIalLoansrom8anks 5,785.9 7,J58.0
5,785.9 7,J58.0
Unsecured
WorkingCapiIalLoansrom8anks !,482.J J,!!!.9
1,482.3 3,111.9
TOTAL 7,268.2 10,469.9
Notes:
a) SecuredWorkingCapiIalLoansrom8anksaggregaIingH4,!!J.0million(previousyearH5,808.2million)compriseoCash
CrediI,ShorITermLoans,PackingCrediI,PosIShipmenICrediI,8illsDiscounIedandOverseaslmporICrediIandaresecured
byhypoIhecaIionoinvenIoriesandIradereceivablesandalloIhermoveableasseIsincludingcurrenIasseIsaIgodowns,
depoIs, in course o IransiI or on high seas and a second charge on immovable properIies and moveable asseIs o Ihe
CompanyboIhpresenIanduIure.LoansinoreigncurrencycarriesinIeresIraIeinIherangeo!.0%Io2.J%p.a.andIhose
inlndianPupeescarriesinIeresIraIeinIherangeo!0%Io!2.J%p.a.
b) SecuredWorkingCapiIalLoansoH!,409.5millionavailedbyIhesubsidiarycompanieslocaIedin!apancarriesinIeresIraIe
o0.68%p.a.andaresecuredbyirsIlegal/equiIablemorIgageonimmovableasseIsoIhesaidsubsidiaries.
c) H228.8millionbeingbilldiscounIingandoverdraIaciliIyavailedbyasubsidiarycompanylocaIedinAusIraliacarriesinIeresI
raIeinIherangeoJ.5%IoJ.95%p.a.andissecuredbylixedandlloaIingchargeoverallasseIsoIhesaidsubsidiary.
d) HJ4.6millionbeingWorkingCapiIalLoanavailedbyasubsidiarycompanylocaIedinPhilippinessecuredbywayopledge
oinishedgoodsoIhesaidsubsidiaryandcarriesinIeresIinIherangeo4.5%Io6.5%p.a.
e) SecuredWorkingCapiIalLoansrom8anksincludeoreigncurrencyloansoH5,205.2million
(previousyearH7,086.!million).
) UnsecuredWorkingCapiIalLoansrom8anksaggregaIingIoH!,!47.9million(previousyearH2,769.!million)compriseo
CashCrediIandShorITermLoans.LoansinoreigncurrencycarriesinIeresIraIeinIherangeo!%Io2.J%p.a.andIhose
inlndianrupeescarriesinIeresIraIeinIherangeo!0%Io!2.J%p.a.
g) H24J.JmillionbeingWorkingCapiIalLoanavailedbyasubsidiarycompanylocaIedinGermanycarriesinIeresIo!.24%and
guaranIeedbyIheCompany.
h) H24.6millionbeingWorkingCapiIalLoanavailedbyasubsidiarycompanylocaIedinUniIedKingdomcarriesinIeresIinIhe
rangeo!.69%Io!.89%andguaranIeedbyIheCompany.
i) UnsecuredWorkingCapiIalLoansamounIingIoH66.5million(previousyearH!05.2million)availedbyasubsidiarycompany
locaIedinPhilippinesouIowhichHJ9.9million(previousyearH8!.4million)areguaranIeedbyIheCompany.Theloans
carryinIeresIraIeinIherangeo4.5%Io6.5%p.a.
j) UnsecuredWorkingCapiIalLoansrom8anksincludeoreigncurrencyloansoH!,420.!million
(previousyearHJ,059.7million).
k) TheGrouphasnoIdeaulIedonrepaymenIoloansandinIeresIduringIheyear.
9. TRADE PAYABLES
As at
31.03.2013
AsaI
J!.0J.20!2
AccepIances 2,428.J 2,J66.4
OIherIhanAccepIances
ToIalouIsIandingduesoMicroLnIerprisesandSmallLnIerprises 262.! 2!9.4
ToIalouIsIandingduesoTradePayablesoIherIhanMicroLnIerprisesand !2,740.5 !!,207.0
SmallLnIerprises
TOTAL 15,430.9 13,792.8
10. OTHER CURRENT LIABILITIES
CurrenIMaIuriIiesoLongTerm8orrowings(PeernoIe4)
loreignCurrencyTermLoansrom8anks !,8J0.8 !,5!J.5
CurrenIMaIuriIiesolinanceLeaseObligaIions|PeernoIeJ4(b) 27.! J!.8
DeerredSalesTaxLoanromGovernmenIoMaharashIra 6.9 4.9
TermLoansromCSlP J0.9 J0.9
TermLoansromDST !0.4 !0.4
lnIeresIAccruedbuInoIdueon8orrowings !6.8 !9.7
UnpaidDividend* !6.5 !5.J
UnpaidMaIuredDeposiIs* 0.! 0.7
UnpaidlnIeresIWarranIs* 0.! 0.J
MarkIoMarkeIDerivaIiveLiabiliIies J92.! 620.!
PayableorPurchaseolixedAsseIs 758.8 900.7
OIherPayables 7!9.9 62J.4
(lncludesSIaIuIoryliabiliIies,DeposiIsreceived,AdvanceromcusIomers,eIc.)
TOTAL 3,810.4 3,771.7
*TherearenoamounIsdueandouIsIandingIobecrediIedIolnvesIorLducaIionandProIecIionlund.
11. SHORT-TERM PROVISIONS
As at
31.03.2013
AsaI
J!.0J.20!2
GraIuiIy !25.5 45.0
CompensaIedAbsences !9!.J !55.!
OIherProvisions
lorSalesPeIurns(PeernoIe50) 72!.7 562.0
lorTaxaIion(neIoAdvanceTax) JJ9.0 629.2
lorProposedDividendonLquiIyShares !,878.0 !,522.2
lorCorporaIeTaxonDividend J04.2 255.!
TOTAL 3,559.7 3,168.6
112 | Lupin Limited
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13. NON-CURRENT INVESTMENTS
Number Face Value As at
31.03.2013
As at
31.03.2012
H in million H in million H inmillion
Trade Investments
a) Others - Unquoted
lnLquiIylnsIrumenIs:
8ioIechConsorIiumlndiaLId.,lndia 50,000
H
0.5 0.5
(50,000) !0
LnvirolnrasIrucIureCo.LId.,lndia !00,000
H
!.0 !.0
(!00,000) !0
8haruchLnvirolnrasIrucIureLId.,lndia 4,585
H
|J!.0J.20!JH45,850/(previousyearH45,850/) (4,585) !0
NarmadaCleanTechLId.,lndia !,!45,!90
H
!!.5 !!.5
(!,!45,!90) !0
TarapurLnvironmenIProIecIionSocieIy,lndia 72,J58
H
7.2 7.2
(72,J58) !00
!apanMedicalProducIsLxporIersAssociaIion,!apan !0 !PY
|J!.0J.20!JH28,765/(previousyearHJ!,0!5/) (!0) 5,000
ThePharmaceuIicalsandMedicalDevicesAgency,!apan J0 !PY 0.2 0.2
(J0) !0,000
OsakalireMuIualAidAssociaIion,!apan !0 !PY
|J!.0J.20!JH575/(previousyearH620/) (!0) !00
lrankurIerVolksbankeG8ank,Germany !0 Lur
|J!.0J.20!JHJ4,760/(previousyearHJJ,948/) (!0) 50
PhilippinesLongDisIanceTelephoneCo.,Philippines 200 PHP
|J!.0J.20!JH2!,280/(previousyearH!8,976/) (200) !
AIsugiGasCorporaIion,!apan 600 Nil 0.2 0.2
(600)
20.6 20.6
b) Others - Quoted
MiIsubishiUl!linanceGroup,!apan 24.5
(!2,820)
SenshulkedaHoldings,!apan 8.6
(J8,480)
MizuholinancialGroup,!apan 7.5
(5,250)
PisonaHoldings,!apan !2.8
(4,!00)
5J.4
Less:ProvisionordiminuIioninvalueolongIerminvesImenIs 46.0
7.4
(liguresinbrackeIsareorpreviousyear)
c) In Government Securities
NaIionalSavingCerIiicaIes
|J!.0J.20!JH6,000/(previousyearH!6,000/)
|DeposiIedwiIhGovernmenIAuIhoriIyJ!.0J.20!JH6,000/
(previousyearH!6,000/)
TOTAL 20.6 28.0
!) AllinvesImenIsinsharesareullypaidup.
2) AllinvesImenIsaresIaIedaIcosI
J) AggregaIeamounIounquoIedinvesImenIs 20.6 20.6
114 | Lupin Limited
14. DEFERRED TAX ASSETS (NET)
As at
31.03.2013
AsaI
J!.0J.20!2
Tax effect of items constituting Deferred Tax Assets
Provisionor8onus !26.J 55.4
ProvisionorLeaveLncashmenI !4.4 8.!
ProvisionorPeIiremenI8eneiIs 7J.! 5J.6
ProvisionorLxpenses J0.0 4!.J
ProvisionorObsoleIelnvenIory 47.0 J5.6
ProvisionorPriceDierenIial J7.8 29.6
ProvisionorSalesPeIurn 26J.9 !68.7
OndierencesbeIweenbookandIaxdepreciaIion 4!.5 82.9
OIhers !!!.0 J0.4
745.0 505.6
Less: Tax effect of items constituting Deferred Tax Liabilities
PeservedorDeerredCapiIalGain !7.9 20.8
OIhers 22.7 !7.0
TOTAL 704.4 467.8
15. LONG-TERM LOANS AND ADVANCES
Unsecured,consideredgoodunlessoIherwisesIaIed
CapiIalAdvances 802.0 5J6.5
SecuriIyDeposiIs J!9.6 29J.!
AdvancepaymenIolncomeTax(neIoProvision) 266.2 J0.5
MATCrediILnIiIlemenI(PeernoIe54) !,99J.8 2,874.0
LoanIoLmployees8eneiITrusI(PeernoIeJ6) 476.9 220.!
LoanIoLmployees 4.J 4.2
OIherLoansandAdvances !0.8 !!.0
TOTAL 3,873.6 3,969.4
16. INVENTORIES
PawMaIerials 4,58J.6 4,50J.4
PackingMaIerials 854.0 877.0
WorkinProcess J,J!8.8 2,8!8.8
linishedGoods 4,202.8 J,958.J
SIockinTrade 4,709.0 2,777.2
ConsumableSIoresandSpares 54J.8 4J0.2
GoodsinTransiI
PawMaIerials JJ!.0 J!2.4
PackingMaIerials !2.0 !.4
SIockinTrade 885.2 !,6J9.5
ConsumableSIoresandSpares 49.! 8.5
TOTAL 19,489.3 17,326.7
17. TRADE RECEIVABLES
As at
31.03.2013
AsaI
J!.0J.20!2
Unsecured
TradereceivablesouIsIandingoraperiodexceeding
sixmonIhsromIhedaIeIheyweredueorpaymenI
ConsideredGood 405.0 !2!.7
ConsideredDoubIul !28.6 86.2
5JJ.6 207.9
OIherTradePeceivables
ConsideredGood 2!,464.9 !7,678.4
ConsideredDoubIul !.7
2!,464.9 !7,680.!
2!,998.5 !7,888.0
Less:ProvisionorDoubIulTradePeceivables !28.6 87.9
TOTAL 21,869.9 17,800.1
18. CASH AND BANK BALANCES
CashandCashLquivalenIs
8ank8alances
lnCurrenIAccounI 2,228.4 !,8!4.8
lnLLlCAccounI 0.J
lnDeposiIAccounI 784.J 726.2
Chequesonhand 95.6 6!.4
Cashonhand 4.0 !0.7
J,!!2.J 2,6!J.4
OIher8ank8alances(PeernoIebelow)
Larmarked8alanceswiIh8anks
UnpaiddividendaccounIs !6.5 !5.J
UnpaidmaIureddeposiIs 0.! 0.2
UnpaidinIeresIwarranIs 0.! 0.J
MarginDeposiIswiIh8anks 2.6
DeposiIsagainsIborrowings,guaranIeesandoIhercommiImenIs 2.9 4.5
8ankDeposiIsmaIuringmoreIhanJmonIhsbuIlessIhan!2monIhs !,2!6.9 !,J86.9
8ankDeposiIsmaIuringaIer!2monIhs !.5
!,2J6.5 !,4!!.J
TOTAL 4,348.8 4,024.7
OIher8ank8alancesLarmarked8alanceswiIh8anksincludedeposiIsH2.9million(previousyearH4.2million)andmargin
moniesamounIingIoHnil(previousyearH2.6million)whichhaveanoriginalmaIuriIyomoreIhan!2monIhs.
116 | Lupin Limited
19. SHORT-TERM LOANS AND ADVANCES
As at
31.03.2013
AsaI
J!.0J.20!2
LoansandAdvancesIoPelaIedParIies|PeernoIe5J(c) 62.2 62.2
SecuriIyDeposiIs !06.5 97.2
AdvancepaymenIolncomeTax(neIoProvision) 8.5 49.J
8alanceswiIhGovernmenIAuIhoriIies !,7J7.7 !,5J7.9
(VAT/CenvaI/ServiceIaxcrediIreceivable/oIherIaxes)
AdvanceIoVendors
ConsideredGood 749.7 9!8.2
ConsideredDoubIul 7.J
757.0 9!8.2
Less:ProvisionorDoubIulAdvances 7.J
749.7 9!8.2
OIherLoansandAdvances 7J2.! J96.4
(includesLoansandAdvancesIoemployees,Prepaidexpenses,eIc.)
TOTAL 3,396.7 3,061.2
20. OTHER CURRENT ASSETS
MarkIoMarkeIDerivaIiveAsseIs !60.4 JJ.7
LxporI8eneiIsPeceivables !,!JJ.4 970.6
OIherCurrenIAsseIs !,0J2.8 206.2
(includeslnIeresIreceivables,receivableonsaleoixedasseIs,eIc.)
TOTAL 2,326.6 1,210.5
21. REVENUE FROM OPERATIONS (GROSS)
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
Sale
Goods 94,J!J.4 68,62J.8
PesearchServices 92!.9 !,J9J.4
95,2J5.J 70,0!7.2
OIherOperaIingPevenue
LxporI8eneiIsandOIherlncenIives 78J.9 526.!
ServiceCharges 584.8 420.8
lnsuranceClaims 47.8 44.9
CompensaIionandSeIIlemenIlncome 280.5 !J0.7
Provisionor8adTradePeceivablesWriIIen8ack 0.2
Miscellaneouslncome 99.5 !09.6
!,796.7 !,2J2.!
TOTAL 97,032.0 71,249.3
22. OTHER INCOME
DividendonNonCurrenIlnvesImenIs 0.5 !.5
lnIeresIonlixedDeposiIswiIh8anks !!5.9 80.4
|TaxDeducIedaISourceH5.8million(previousyearH2.2million)
OIherlnIeresI(includinginIeresIonincomeIaxreunds) 25.6 !!.9
NeIgainonloreignCurrencyTransacIions !!6.2
ProiIonSale/DisposaloCurrenIlnvesImenI(neI) !0.6
ProvisionorDiminuIioninvalueoNonCurrenIlnvesImenIswriIIenback 0.2 0.2
OIherNonOperaIinglncome 20.! J8.9
TOTAL 278.5 143.5
23. COST OF RAW AND PACKING MATERIALS CONSUMED
PawMaIerialsConsumed !8,86!.2 !5,664.J
PackingMaIerialsConsumed J,J8!.8 2,474.J
TOTAL 22,243.0 18,138.6
24. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROCESS AND STOCK-IN-TRADE
OpeningSIock:
linishedGoods J,958.J 2,622.9
SIockinTrade 4,4!6.7 2,727.J
WorkinProcess 2,8!8.8 2,!46.6
!!,!9J.8 7,496.8
AcquiredonacquisiIion:
linishedGoods 240.7
SIockinTrade !57.4
WorkinProcess !29.8
527.9
Less:
ClosingSIock:
linishedGoods 4,202.8 J,958.J
SIockinTrade 5,594.2 4,4!6.7
WorkinProcess J,J!8.8 2,8!8.8
!J,!!5.8 !!,!9J.8
ChangeslnlnvenIories:
linishedGoods (244.5) (!,094.7)
SIockinTrade (!,!77.5) (!,5J2.0)
WorkinProcess (500.0) (542.4)
TOTAL (1,922.0) (3,169.1)
118 | Lupin Limited
25. EMPLOYEE BENEFITS EXPENSE
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
SalariesandWages !0,78J.8 8,J20.J
ConIribuIionIoProvidenIandOIherlunds !,!J6.J 87!.6
LxpensesonLmployeesSIockOpIions/SIockAppreciaIionPighIs 4J.7 !5.5
(PeernoIeJ5andJ6)
SIaWelareLxpenses 524.! 487.9
TOTAL 12,487.9 9,695.3
26. FINANCE COSTS
lnIeresIon8orrowings 2J9.2 2J8.8
OIher8orrowingCosIs(includesbankcharges,eIc.) !69.9 75.8
lnIeresIonlncomeTax !.! 40.!
TOTAL 410.2 354.7
27. OTHER EXPENSES
ProcessingCharges 956.9 709.0
SIoresandSparesConsumed 2,J8J.6 !,9!8.4
PepairsandMainIenance:
8uildings 246.! !45.2
PlanIandMachinery 58!.0 522.0
OIhers 6J0.2 49!.7
PenI 27J.J !26.7
PaIesandTaxes 7!8.8 J50.6
lnsurance J42.! 229.0
Powerandluel J,202.2 2,688.2
ConIracILabourCharges 690.5 498.5
LxciseDuIy(neI)(PeernoIe47) !!6.6 84.0
SellingandPromoIionLxpenses 4,688.0 4,J95.9
Commission,8rokerageandDiscounI !,060.4 9!2.2
|lncludingcashdiscounIoH6.8million(previousyearH6.4million)
lreighIandlorwarding !,J59.9 !,!70.7
LeasePenIandHireCharges(PeernoIeJ4) 600.6 5J!.5
PosIageandTelephoneLxpenses 296.5 24!.8
TravellingandConveyance !,59J.9 !,257.!
LegalandProessionalCharges J,0J6.J !,924.9
|NeIorecoveriesoHnil(previousyearH25J.0million)
DonaIions !69.5 !!6.7
ClinicalandAnalyIicalCharges 890.2 77!.6
Lossonsale/wriIeoolixedAsseIs(neI) !44.9 !78.4
8adTradePeceivables/AdvanceswriIIeno J8.6 JJ.4
ProvisionorlmpairmenIoAsseIs 256.8
ProvisionorDoubIulTradePeceivables/Advances 59.! J.J
DirecIorsSiIIinglees 2.7 J.4
NeILossonloreignCurrencyTransacIions 68.9
LxchangePaIeDierenceonTranslaIion(neI) 24J.4 !5J.6
MiscellaneousLxpenses !,!6J.2 !,!2!.0
TOTAL 25,745.3 20,647.7
28. The ConsolidaIed linancial SIaIemenIs presenI Ihe consolidaIed accounIs o Lupin LimiIed (Ihe Company) and Ihe
ollowingsubsidiaries(IheGroup):
Name of Subsidiaries Country of
Incorporation
Proportion of
Ownership Interest
LupinPharmaceuIicals,lnc. USA !00%
KyowaPharmaceuIicallndusIryCo.,LimiIed !apan !00%
lromPharmaceuIicalCo.,LimiIed(romJ0IhNovember20!!) !apan !00%*
AmelTouhoku(upIo28Ihlebruary20!J) !apan !00%*
HormosanPharmaGmbH Germany !00%
PharmaDynamics(ProprieIary)LimiIed SouIhArica 60%
LupinAusIraliaPIyLimiIed AusIralia !00%
LupinHoldings8.V. NeIherlands !00%
LupinAIlanIisHoldingsSA SwiIzerland !00%
MulIicarePharmaceuIicalsPhilippineslnc. Philippines 5!%
Lupin(Lurope)LimiIed UK !00%
LupinPharmaCanadaLimiIed Canada !00%
LupinHealIhcareLimiIed lndia !00%
GenericHealIhPIyLimiIed AusIralia 9!.04%
8ellweIherPharmaPIyLimiIed AusIralia 9!.04%
MaxPharmaPIyLimiIed AusIralia 9!.04%
GenericHealIhlnc.(upIo4IhOcIober20!!) USA 9!.04%
LupinMexicoSAdeCV Mexico !00%
LupinPhilippineslnc. Philippines !00%
GenericHealIhSDN.8HD.(rom!8IhMay,20!!) Malaysia !00%
LupinMiddleLasIlZLLC(rom!JIh!une20!2) UAL !00%
OwnershipinIeresIheldIhroughLupinHoldings8.V.,NeIherlands.
*WhollyownedsubsidiaryoKyowaPharmaceuIicallndusIryCo.,LimiIed,!apan.
WhollyownedsubsidiariesoGenericHealIhPIyLimiIed,AusIralia.
TheconsolidaIedaccounIsIhusincludeIheresulIsoIheaoresaidsubsidiariesandIherearenooIherbodiescorporaIe/
enIiIies,whereIheCompanyholdsmoreIhan50%oIhesharecapiIalorwhereIheCompanycanconIrolIhecomposiIion
oIhe8oardoDirecIors/Governing8odiesosuchenIiIies,whereIheholdingmaybelessIhan50%.
29. Commitments:
a) LsIimaIedamounIoconIracIsremainingIobeexecuIedoncapiIalaccounIandnoIprovidedor,neIoadvances,
H!J20.8million(previousyearH!590.5million).
b) OIhercommiImenIsNoncancellableoperaIingandinanceleases(PeernoIeJ4).
120 | Lupin Limited
30. Contingent Liabilities:
As at
31.03.2013
AsaI
J!.0J.20!2
a) lncomeIaxdemands/maIIersonaccounIodeducIions/disallowancesinearlier
years,pendinginappeals|H49.7million(previousyearH!7.7million)consequenI
Io deparImenI preerring appeals againsI Ihe orders o Ihe AppellaIe AuIhoriIies
passedinavouroIhecompany.
AmounI paid Ihere againsI and included under noIe !5 LongTerm Loans and
AdvancesH2J.5million(previousyearH27.0million).
82.J 44.7
b) Lxcise duIy, Service Iax and Sales Iax demands or inpuI Iax crediI disallowances
and demand or addiIional LnIry Tax arising rom dispuIe on applicable raIe are
inappealsandpendingdecisions.AmounIpaidIhereagainsIandincludedunder
noIe !9 ShorITerm Loans and Advances H J!.7 million (previous year H 28.4
million).
424.4 4!6.8
c) ClaimsagainsIIheCompanynoIacknowledgedasdebIs|excludinginIeresI(amounI
unascerIained)inrespecIoaclaimorIranserchargesoland,ocIroiduIy,local
bodyIax,employeeclaims,power,IrademarksandsIampduIy.
AmounIpaidIhereagainsIwiIhouIadmiIIingliabiliIyandincludedundernoIe!9
ShorITermLoansandAdvancesH!2.6million(previousyearH78.6million).
4!9.9 4J2.9
d) CounIerguaranIeegivenIoGlDCinconnecIionwiIhrepaymenIoloansancIioned
by a inancial insIiIuIion Io a company, joinIly promoIed by an AssociaIion o
lndusIries(owhich,IheCompanyisamember)andGlDC.
7.5 7.5
e) linancial guaranIee given Io Ihird parIy on behal o subsidiary or conIracIual
obligaIions.
!52.6
) 8ankGuaranIeesgivenonbehaloIheCompanyIoIhirdparIy. !5.9
luIurecashouIlowsinrespecIoIheabove,iany,isdeIerminableonlyonreceipIojudgemenI/decisionspending
wiIhIherelevanIauIhoriIies.TheGroupdoesnoIexpecIIheouIcomeoIhemaIIerssIaIedaboveIohaveamaIerial
adverseimpacIonIheGroupsinancialcondiIion,resulIsooperaIionsorcashlows.
TheGroupdoesnoIenvisageanylikelyreimbursemenIsinrespecIoIheabove.
31. PreoperaIive expenses pending capiIalisaIion included in CapiIal WorklnProgress (Peer noIe !2) represenI direcI
aIIribuIable expendiIure or seIIing up o planIs prior Io Ihe daIe o commencemenI o commercial producIion. The
samewillbecapiIalisedoncompleIionoprojecIsandcommencemenIocommercialoperaIions.ThedeIailsoIhepre
operaIiveexpensesare:
ParIiculars 2012-13 20!!!2
Openingbalance 88.8 !22.4
lncurredduringIhecurrenIyear:
Salaries,allowancesandconIribuIionIounds 65.8 J8.8
Proessionalees !.4 !.J
Travellingexpenses !0.2 4.4
OIhers !!8.! 2J.0
ToIal !95.5 67.5
Less:CapiIalisedduringIheyear 6!.7 !0!.!
Closingbalance 222.6 88.8
32. Segment Reporting:
i) PrimarysegmenI:
TheGroupoperaIesexclusivelyinIhePharmaceuIicalbusinesssegmenIwhichisIheonlyreporIablebusinesssegmenI.
ii) SecondarysegmenIdaIa:
(CurrenIyearHinmillion)
ParIiculars lndia USA !apan OIhers ToIal
PevenuebyGeographicalSegmenI 26044.J J8!98.J !J!5!.! !90!9.J 964!J.0
CarryingamounIoSegmenIAsseIs 456!5.2 !J258.! !5682.J !!6!0.! 86!65.7
CapiIalLxpendiIure 4!90.5 !J6.J !250.2 247.2 5824.2
(PreviousyearHinmillion)
PevenuebyGeographicalSegmenI 2!506.8 246J7.2 8680.! !6005.0 70829.!
CarryingamounIoSegmenIAsseIs J8774.J !0504.! !5!5J.J !!5!6.7 75948.4
CapiIalLxpendiIure 4JJ7.J 50.! 20JJ.7 447.8 6868.9
NoIes:
a)ThesegmenIrevenueingeographicalsegmenIsconsideredordisclosureisasollows:
i) PevenuewiIhinlndiaincludessalesIocusIomerslocaIedwiIhinlndiaandoIheroperaIingincomeearnedin
lndia.
ii) PevenueouIsidelndiaincludessalesIocusIomerslocaIedouIsidelndiaandoIheroperaIingincomeouIside
lndia.
b)SegmenIrevenuecomprises:
(CurrenIyearHinmillion)
Sales(neIoexciseduIy) 25598.! J76!6.0 !J040.4 !8J6!.8 946!6.J
OIherOperaIinglncome 446.2 582.J !!0.7 657.5 !796.7
ToIalPevenue 26044.J J8!98.J !J!5!.! !90!9.J 964!J.0
(PreviousyearHinmillion)
Sales(neIoexciseduIy) 2!!!5.4 242J0.J 8607.J !5644.0 69597.0
OIherOperaIinglncome J9!.4 406.9 72.8 J6!.0 !2J2.!
ToIalPevenue 2!506.8 246J7.2 8680.! !6005.0 70829.!
33. Basic and Diluted Earnings per Share is calculated as under:
ParIiculars 2012-2013 20!!20!2
NeIProiIaIerminoriIyinIeresIaIIribuIableIoequiIyshareholders !J!4!.6 8676.5
WeighIedaveragenumberoLquiIyShares:
8asic 447!25025 4464609JJ
Add:LecIodiluIiveissueoemployeessIockopIions(LSOPs)converIedduring
IheyearandLSOPsouIsIandingasonJ!.0J.20!J
!968!20 !805072
DiluIed 44909J!45 448266005
LarningsperShare(inH)
8asic 29.J9 !9.4J
DiluIed 29.26 !9.J6
122 | Lupin Limited
34. a) The Group procures equipmenIs, vehicles and oice premises under operaIing leases. These renIals recognised in
IheConsolidaIedSIaIemenIoProiIandLoss(PeernoIe27)orIheyearareH474.8million(previousyearHJ67.J
million).TheuIureminimumleasepaymenIsandpaymenIproileononcancellableoperaIingleasesareasunder:
ParIiculars 2012-2013 20!!20!2
NoIlaIerIhanoneyear J26.0 J57.2
LaIerIhanoneyearbuInoIlaIerIhaniveyears 5J2.0 428.6
LaIerIhaniveyears 25.!
TOTAL 883.1 785.8
b) Subsidiary companies in !apan, SouIh Arica and Philippines have uIure obligaIions under inance lease or
procuremenIoPlanI,Machinery,LquipmenIsandVehicleswhicharepayableasunder:
H inmillion
2012-2013
ParIiculars PresenIValueo
minimumleasepaymenI
luIurelnIeresI
CosI
MinimumleasepaymenI
NoIlaIerIhanoneyear 27.! !.6 28.7
(J!.8) (J.8) (J5.6)
LaIerIhanoneyearbuInoI
laIerIhaniveyears
J5.J !.4 J6.7
(66.5) (J.0) (69.5)
LaIerIhaniveyears

TOTAL 62.4 3.0 65.4
(98.J) (6.8) (!05.!)
NoIe:PreviousyeariguresaregiveninbrackeI.
35. Employees Stock Option Plans:
a) TheGroupimplemenIedLupinLmployeesSIockOpIionPlan200J(LSOP200J),LupinLmployeesSIockOpIion
Plan 2005 (LSOP 2005) and Lupin Subsidiary Companies Lmployees SIock OpIion Plan 2005 (SLSOP 2005),
LupinLmployeesSIockOpIionPlan20!!(LSOP20!!)andLupinSubsidiaryCompaniesLmployeesSIockOpIion
Plan20!!(SLSOP20!!)asapprovedinearlieryearsbyIheShareholdersoIheCompanyandIhePemuneraIion/
CompensaIionCommiIIeeoIhe8oardoDirecIors.DeIailsoIheopIionsgranIedduringIheyearunderIheplans
areasunder:
Lupin Employees Stock Option Plan 2005 (ESOP 2005):
GranIDaIe No.oOpIions LxercisePriceH VesIingPeriod
November06,20!2 50000 29!.9J 06.!!.20!2Io06.!!.20!J
50000
lebruary22,20!J 2J75 59J.90 22.02.20!JIo22.02.20!4
2J75 59J.90 22.02.20!JIo22.02.20!5
2J75 59J.90 22.02.20!JIo22.02.20!6
2J75 59J.90 22.02.20!JIo22.02.20!7
9500
AugusI!7,20!2 !7J56J 556.05 !7.08.20!2Io!7.08.20!J
!7J562 556.05 !7.08.20!2Io!7.08.20!4
!7J56J 556.05 !7.08.20!2Io!7.08.20!5
!7J562 556.05 !7.08.20!2Io!7.08.20!6
694250
AugusI24,20!2 !25 578.45 24.08.20!2Io24.08.20!J
!25 578.45 24.08.20!2Io24.08.20!4
!25 578.45 24.08.20!2Io24.08.20!5
!25 578.45 24.08.20!2Io24.08.20!6
500
OcIober!7,20!2 !250 555.55 !7.!0.20!2Io!7.!0.20!J
!250 555.55 !7.!0.20!2Io!7.!0.20!4
!250 555.55 !7.!0.20!2Io!7.!0.20!5
!250 555.55 !7.!0.20!2Io!7.!0.20!6
5000
Lupin Subsidiary Companies Employees Stock Option Plan 2011 (SESOP 2011):
!uly26,20!2 4850 585.70 26.07.20!2Io26.07.20!J
4850 585.70 26.07.20!2Io26.07.20!4
4850 585.70 26.07.20!2Io26.07.20!5
4850 585.70 26.07.20!2Io26.07.20!6
!9400
lebruary22,20!J 29700 59J.90 22.02.20!JIo22.02.20!4
29700 59J.90 22.02.20!JIo22.02.20!5
29700 59J.90 22.02.20!JIo22.02.20!6
29700 59J.90 22.02.20!JIo22.02.20!7
!!8800
March!2,20!J !800 600.90 !2.0J.20!JIo!2.0J.20!4
!800 600.90 !2.0J.20!JIo!2.0J.20!5
!800 600.90 !2.0J.20!JIo!2.0J.20!6
!800 600.90 !2.0J.20!JIo!2.0J.20!7
7200
TheopIionsaregranIedaIanexerciseprice,whichisinaccordancewiIhIherelevanISL8lguidelinesinorce,aIIhe
IimeosuchgranIs.LachopIionenIiIlesIheholderIoexerciseIherighIIoapplyorandseekalloImenIooneequiIy
shareoH2each.TheopIionshavevesIingperiodsassIaIedaboveinaccordancewiIhIhevesIingscheduleasper
IhesaidplanswiIhanexerciseperiodoIenyearsromIherespecIivegranIdaIes.
124 | Lupin Limited
TheparIicularsoIheopIionsgranIedandlapsedunderIheSchemesareasbelow:
ParIiculars Year Ended
31.03.2013
Nos.
YearLnded
J!.0J.20!2
Nos.
OpIionsouIsIandingasaIIhebeginningoIheyear !08578J !J0J850
Add:OpIionsgranIedduringIheyear
Less:OpIionslapsedduringIheyear 7J!25 !!5000
Less:OpIionsexercisedduringIheyear 24904J !0J067
OpIionsouIsIandingasaIIheyearend 76J6!5 !08578J
OpIionsouIsIandingasaIIhebeginningoIheyear !250090 !5J5600
Add:OpIionsgranIedduringIheyear 59500 82500
Less:OpIionslapsedduringIheyear J6J75 89J00
Less:OpIionsexercisedduringIheyear 52!295 2787!0
OpIionsouIsIandingasaIIheyearend 75!920 !250090
OpIionsouIsIandingasaIIhebeginningoIheyear 50042! 548!J6
Add:OpIionsgranIedduringIheyear !!000
Less:OpIionslapsedduringIheyear 6650
Less:OpIionsexercisedduringIheyear 6J652 587!5
OpIionsouIsIandingasaIIheyearend 4J0!!9 50042!
OpIionsouIsIandingasaIIhebeginningoIheyear !759250
Add:OpIionsgranIedduringIheyear 699750 !845750
Less:OpIionslapsedduringIheyear !46!J! 86500
Less:OpIionsexercisedduringIheyear 5J822
OpIionsouIsIandingasaIIheyearend 2259047 !759250
OpIionsouIsIandingasaIIhebeginningoIheyear !6!J80
Add:OpIionsgranIedduringIheyear !45400 !6!J80
Less:OpIionslapsedduringIheyear
Less:OpIionsexercisedduringIheyear
OpIionsouIsIandingasaIIheyearend J06780 !6!J80
b) TheGrouphasollowedIheinIrinsicvaluebasedmeIhodoaccounIingorsIockopIionsgranIedaIerApril!,2005
basedonGuidanceNoIeonAccounIingorLmployeeSharebasedPaymenIs,issuedbyIhelnsIiIuIeoCharIered
AccounIanIs o lndia (lCAl). Had Ihe compensaIion cosI or Ihe Groups sIock based compensaIion plans been
deIerminedinIhemannerconsisIenIwiIhIheairvalueapproachasdescribedinIhesaidGuidanceNoIe,IheGroups
neIincomewouldbelowerbyH229.5million(previousyearH!98.2million)andearningspershareasreporIed
wouldbelowerasindicaIedbelow:
31.03.2013
YearLnded
J!.0J.20!2
NeIproiIasreporIed !J!4!.6 8676.5
Less:ToIalsIockbasedemployeecompensaIionexpense
deIerminedunderairvaluebasedmeIhod
242.4 2!0.2
Add:ToIalsIockbasedemployeecompensaIionexpense
deIerminedunderinIrinsicvaluebasedmeIhod
!2.9 !2.0
AdjusIedneIproiI !29!2.! 8478.J
8asicearningspershare
AsreporIed(inH)* 29.J9 !9.4J
AdjusIed(inH) 28.88 !8.99
DiluIedearningspershare
AsreporIed(inH)* 29.26 !9.J6
AdjusIed(inH) 28.75 !8.9!
*PeernoIeJJ
The air value o each opIion granIed during Ihe year is esIimaIed on Ihe daIe o granI based on Ihe ollowing
assumpIions:
ESOP 2005 Plan ESOP 2011 Plan SESOP 2011 Plan
GranIDaIed Nov6,
20!2
leb22,
20!J
Aug!7,
20!2
Aug24,
20!2
OcI!7,
20!2
!ul26,
20!2
leb22,
20!J
Mar!2,
20!J
ParIiculars
PiskreeinIeresIraIe(%) 8.!8 7.87 8.27 8.25 8.!6 8.07 7.87 7.92
VolaIiliIy(%) JJ.68 JJ.J6 J4.45 J4.J8 J4.25 J4.55 JJ.J6 JJ.28
36. Stock Appreciation Rights:
DuringIhepreviousyear,IheCompanyhasgranIedSIockAppreciaIionPighIs(SAPs)IocerIaineligibleemployeesin
accordancewiIhLupinLmployeesSIockAppreciaIionPighIsScheme(LLSAPs20!!)approvedbyIhe8oardoDirecIors
(8oard)aIIheir8oardMeeIingheldonSepIember!J,20!!.UnderIhescheme,eligibleemployeesareenIiIledIoreceive
appreciaIioninvalueosharesoncompleIionoIhevesIingperiod.
TheSchemeisadminisIeredIhroughIheLupinLmployees8eneiITrusI(IheTrusI)asseIIledbyIheCompany.TheTrusI
isadminisIeredbyanindependenITrusIee.AIIheendoIhevesIingperiodoJyears,IheequiIyshareswillbesoldin
IhemarkeIbyIheTrusIandIheappreciaIiononIhesame(iany)willbedisIribuIedIoIhesaidemployees,subjecIIo
vesIingcondiIions.
PursuanI Io Ihe circular no. ClP/ClD/DlL/J/20!J daIed !anuary !7, 20!J (Ihe Circular) issued by Ihe SecuriIies and
Lxchange 8oard o lndia (SL8l), Ihe Company has submiIIed Ihe required deIails wiIh Ihe sIock exchanges wiIhin a
prescribedperiod.
As approved by Ihe 8oard, Ihe Company has, prior Io Ihe Circular, advanced an inIeresI ree loan o H 256.8 million
(previous year H 220.! million) Io Ihe TrusI during Ihe year Io acquire appropriaIe number o LquiIy Shares o Ihe
CompanyromIhemarkeIonIhegranIdaIeoSAPsandIheloanouIsIandingasaIIhebalancesheeIdaIeaggregaIing
H476.9million(previousyearH220.!million)isincludedunderLongTermLoansandAdvances(PeernoIe!5).
126 | Lupin Limited
TheparIicularsoIherighIsassignedandlapsedunderIheSchemeareasbelow:
Lupin Employees Stock Appreciation Rights 2011:
31.03.2013
YearLnded
J!.0J.20!2
PighIsouIsIandingaIIhebeginningoIheyear 455290
Add:PighIsassignedpriorIoIheCircularduringIheyear 44J049 46J409
Less:PighIslapsedduringIheyear J824! 8!!9
PighIsouIsIandingaIIheyearend 860098 455290
The relaIed compensaIion cosI or ouIsIanding SAPs amounIing Io H J0.8 million (previous year H J.5 million) has
beenrecognizedasLmployee8eneiIsLxpenseandIhecorrespondingcrediIisincludedunderPeservesandSurplus
as Lmployee SIock AppreciaIion PighIs OuIsIanding. Had Ihe compensaIion cosI or Ihe Companys sIock based
compensaIionplansbeendeIerminedinIhemannerconsisIenIwiIhIheairvalueapproachasdescribedinIheGuidance
NoIeonAccounIingorLmployeeSharebasedPaymenIsissuedbylCAl,IheGroupsneIincomewouldbelowerbyH7.9
million(previousyearH5.7million)andearningspershareasreporIedwouldbelowerasindicaIedbelow:
31.03.2013
YearLnded
J!.0J.20!2
NeIproiIasreporIed !J!4!.6 8676.5
Less:ToIalsIockbasedemployeecompensaIionexpensedeIerminedunder
airvaluebasedmeIhod
J8.7 9.2
Add:ToIalsIockbasedemployeecompensaIionexpensedeIerminedunder
inIrinsicvaluebasedmeIhod
J0.8 J.5
AdjusIedneIproiI !J!JJ.7 8670.8
AsreporIed(inH)* 29.J9 !9.4J
AdjusIed(inH) 29.J7 !9.42
AsreporIed(inH)* 29.26 !9.J6
AdjusIed(inH) 29.24 !9.J4
*PeernoIeJJ
37. Post Employment Benefits:
(i) DeinedConIribuIionPlans:
The Group makes conIribuIions Iowards providenI und, superannuaIion und and oIher reIiremenI beneiIs Io a
deined conIribuIion reIiremenI beneiI plan or qualiying employees. Under Ihe plan, Ihe Group is required Io
conIribuIeaspeciiedpercenIageopayrollcosIIoIhereIiremenIbeneiIplanIoundIhebeneiIs.
The Group recognised H J!!.0 million (previous year H 25J.! million) or superannuaIion conIribuIion and oIher
reIiremenIbeneiIconIribuIionsinIheConsolidaIedSIaIemenIoProiIandLoss.
TheconIribuIionspayableIoIheseplansbyIheGroupareaIraIesspeciiedinIherulesoIheschemes.
The Company recognised H 82.9 million (previous year H 72.2 million) or providenI und conIribuIions in Ihe
(ii) Deined8eneiIPlan:
A) TheprovidenIundplanoIheCompany,excepIIwoplanIs,isoperaIedbyIheLupinLimiIedLmployeesProvidenI
lundTrusI(IheTrusI).LligibleemployeesreceivebeneiIsromIhesaidProvidenIlund.8oIhIheemployees
andIheCompanymakemonIhlyconIribuIionsIoIheProvidenIlundPlansequalIoaspeciiedpercenIageo
Ihecoveredemployeessalary.TheminimuminIeresIraIepayablebyIheTrusIIoIhebeneiciarieseveryyearis
beingnoIiiedbyIheGovernmenI.TheCompanyhasanobligaIionIomakegoodIheshorIall,iany,beIween
IhereIurnromIheinvesImenIsoIheTrusIandIhenoIiiedinIeresIraIe.
The AS8 Guidance on lmplemenIing AS!5, Lmployee 8eneiIs (revised 2005) issued by AccounIing SIandards
8oard (AS8) sIaIes IhaI beneiI plans involving employer esIablished providenI unds, which require inIeresI
shorIallsIoberecompensedareIobeconsideredasdeinedbeneiIplans.AsperIheGuidanceNoIeromIhe
AcIuarialSocieIyolndia,IheCompanyhasobIainedIheacIuarialvaluaIionoinIeresIraIeobligaIioninrespecI
oProvidenIlundasaIMarchJ!,20!JandshorIallaggregaIingH!9.9million(previousyearH24.6million)has
beenprovidedor.TheCompanyhasanobligaIionIoserviceIheshorIallonaccounIoinIeresIgeneraIedbyIhe
undandonmaIuriIyoundinvesImenIsandhenceIhesamehasbeenclassiiedasDeined8eneiIPlan.
TheCompanyrecognisedH!86.6million(previousyearH!72.9million)orprovidenIundconIribuIionsinIhe
8) TheCompanymakesannualconIribuIionsIoIheGroupGraIuiIycumLieAssuranceSchemesadminisIeredbyIhe
LlColndia,aundeddeinedbeneiIplanorqualiyingemployees.TheschemeprovidesorpaymenIasunder:
i) OnnormalreIiremenI/earlyreIiremenI/wiIhdrawal/resignaIion:
AsperIheprovisionsoIhePaymenIoGraIuiIyAcI,!972wiIhvesIingperiodo5yearsoservice.
ii) OndeaIhinservice:
AsperIheprovisionsoIhePaymenIoGraIuiIyAcI,!972wiIhouIanyvesIingperiod.
lnaddiIionIoIheabovemenIionedscheme,IheCompanyalsopaysaddiIionalgraIuiIyasanexgraIiaandIhe
saidamounIisprovidedasnonundedliabiliIybasedonacIuarialvaluaIion.
The mosI recenI acIuarial valuaIion o plan asseIs and Ihe presenI value o Ihe deined beneiI obligaIion or
graIuiIy were carried ouI as aI March J!, 20!J. The presenI value o Ihe deined beneiI obligaIions and Ihe
relaIedcurrenIservicecosIandpasIservicecosI,weremeasuredusingIheProjecIedUniICrediIMeIhod.
a) The Company
8asedonIheacIuarialvaluaIionobIainedinIhisrespecI,IheollowingIableseIsouIIhesIaIusoIhegraIuiIyplan
andIheamounIsrecognisedinIheGroupsinancialsIaIemenIsasaIIhebalancesheeIdaIe:
H inmillion
Sr.
No.
ParIiculars GraIuiIy(lunded) GraIuiIy(Ununded)
As on
31.03.2013
Ason
J!.0J.20!2
As on
31.03.2013
Ason
J!.0J.20!2
I) Reconciliation in present value of obligations (PVO)
defined benefit obligation:
CurrenIservicecosI 94.4 74.! 252.6 90.0
PasIservicecosI
lnIeresIcosI J8.6 29.0 24.4
AcIuarialloss/(gain) JJ.9 !8.5 (6.7)
8eneiIspaid (J4.7) (4J.5)
PVOaIIhebeginningoIheyear 462.7 J84.6 90.0
PVOaIIheendoIheyear 594.9 462.7 J60.J 90.0
II) Change in fair value of plan assets:
LxpecIedreIurnonplanasseIs 40.J J5.2
AcIuarialgain/(loss) (0.!) (2.J)
ConIribuIionsbyIheemployer 45.0 57.9
TranserromgraIuiIyundonamalgamaIiono
ersIwhilesubsidiary
5.0
lairvalueoplanasseIsaIIhebeginningoIheyear 4!7.7 J65.4
AdjusImenIIoopeningbalance !.2
lairvalueoplanasseIsaIIheendoIheyear 469.4 4!7.7
III) Reconciliation of PVO and fair value of plan assets:
PVOaIendoIheyear 594.9 462.7 J60.J 90.0
lairValueoplanasseIsaIIheendoIheyear 469.4 4!7.7
lundedsIaIus (!25.5) (45.0) (J60.J) (90.0)
UnrecognisedacIuarialgain/(loss)
NeIliabiliIyrecognisedinIhebalancesheeI (!25.5) (45.0) (J60.J) (90.0)
IV) Net cost for the year:
PasIservicecosI
LxpecIedreIurnonplanasseIs (40.J) (J5.2)
128 | Lupin Limited
H inmillion
Sr.
No.
As on
31.03.2013
Ason
J!.0J.20!2
As on
31.03.2013
Ason
J!.0J.20!2
AcIuariallosses/(gain) J4.0 20.8 (6.7)
ToIalexpenserecognisedinIheConsolidaIed
SIaIemenIoProiIandLoss
!26.7 88.7 270.J 90.0
V) Category of assets as at the end of the year:
lnsurerManagedlunds(!00%) 469.4 4!7.7
(lundisManagedbyLlCasperlPDAguidelines,
caIegorywisecomposiIionoIheplanasseIsisnoI
available)
VI) Actual return on the plan assets: 40.2 J2.9
VII) Assumptions used in accounting for the gratuity
plan:
DiscounIraIe(%) 8.! 8.7 8.!
SalaryescalaIionraIe(%) 6.0 6.0 6.0
LxpecIedraIeoreIurnonplanasseIs(%) 9.5 9.5 NA NA
LsIimaIeoamounIoconIribuIioninimmediaIenexI
year
!25.5 45.0 NA NA
TheesIimaIesosalaryescalaIion,consideredinacIuarialvaluaIion,IakeaccounIoinlaIion,senioriIy,promoIion
andoIherrelevanIacIors,suchassupplyanddemandinIheemploymenImarkeI.
H inmillion
GraIuiIy(lunded) YearLnded
31.03.2013 J!.0J.20!2 J!.0J.20!! J!.0J.20!0 J!.0J.2009
LxperienceadjusImenI
OnplanliabiliIies 6.! 90.5
OnplanasseIs 0.! 2.J
PresenIvalueobeneiIobligaIion (594.9) (462.7) (J84.6) (244.J) (!86.5)
lairvalueoplanasseIs 469.4 4!7.7 J65.4 2!J.J !65.!
Lxcesso(obligaIionoverplanasseIs)/
planasseIsoverobligaIion (!25.5) (45.0) (!9.2) (J!.0) (2!.4)
LxperienceadjusImenIinormaIioninrespecIopreviousIhreeyearsisnoIavailable,hencenoIdisclosed.
8asedonIheacIuarialvaluaIionobIainedinIhisrespecI,IheollowingIableseIsouIIhesIaIusoIheprovidenIund
planandIheamounIsrecognisedinIheGroupsinancialsIaIemenIsasaIIhebalancesheeIdaIe:
Sr.
No.
ParIiculars ProvidenIlund(lunded)
As on 31.03.2013 AsonJ!.0J.20!2
I) Reconciliation in present value of obligations (PVO) defined benefit
obligation:
CurrenIservicecosI 75!.8 6!6.4
PasIservicecosI
lnIeresIcosI 2.! 7.4
AcIuarialloss/(gain) (6.8) (94.6)
8eneiIspaid (!60.8) (24J.5)
PVOaIIhebeginningoIheyear 2!52.8 !867.!
PVOaIIheendoIheyear 27J9.! 2!52.8
LxpecIedreIurnonplanasseIs 208.J !54.0
AdjusImenIIoopeningbalance (7.6)
AcIuarialgain/(loss)
ConIribuIionsbyIheemployer 55!.! 442.5
lairvalueoplanasseIsaIIhebeginningoIheyear 2!28.2 !775.2
lairvalueoplanasseIsaIIheendoIheyear 27!9.2 2!28.2
PVOaIendoIheyear 27J9.! 2!52.8
lairValueoplanasseIsaIIheendoIheyear 27!9.2 2!28.2
lundedsIaIus (!9.9) (24.6)
NeIliabiliIyrecognisedinIhebalancesheeI (!9.9) (24.6)
PasIservicecosI
LxpecIedreIurnonplanasseIs (208.J) (!54.0)
AcIuariallosses/(gain) (6.8) (94.6)
ToIalexpenserecognisedinIheConsolidaIedSIaIemenIoProiIandLoss 5J8.8 J75.2
lnvesImenIinPSUbonds 56% 6J%
lnvesImenIinGovernmenISecuriIies 29% 25%
8ankSpecialDeposiI 8% !0%
lnvesImenIinoIhersecuriIies 5% !%
8ankSavingsDeposiI 2% !%
VI) Actual return on the plan assets: 208.J !54.0
VII) Assumptions used in accounting for the Provident fund plan:
DiscounIraIe(%) 8.! 8.7
SalaryescalaIionraIe(%) 6.0 6.0
LxpecIedraIeoreIurnonplanasseIs(%) 8.7 8.7
130 | Lupin Limited
b) Kyowa Pharmaceutical Industry Co., Limited, Japan
TheCompanyssubsidiaryaI!apanhasreIiremenIplanIocoveralliIsemployees.TheplanconsisIoadeinedbeneiI
nonundedpensionplan(reerredasplan).
UnderIheplan,employeesareenIiIledIobeneiIsbasedonlevelosalaries,lengIhoserviceandcerIainoIheracIors
aIIheIimeoreIiremenIorIerminaIion.
ThepresenIvalueoIhedeinedbeneiIobligaIionsandIherelaIedcurrenIservicecosIandpasIservicecosI,were
measuredusingIheProjecIedUniICrediIMeIhod.
PeIiremenI allowances or direcIors are provided or liabiliIy o Ihe amounI IhaI would be required i all direcIors
reIiredaIIhebalancesheeIdaIe.
TheollowingIableseIsouIIhesIaIusoIhereIiremenIplanandIheamounIsrecognisedinIheGroupsinancial
sIaIemenIsasaIIhebalancesheeIdaIe:
Sr.
No.
ParIiculars LumpsumPeIiremenI8eneiIs
(nonunded)
As on 31.03.2013 AsonJ!.0J.20!2
obligation:
CurrenIservicecosI !4.5 !!.4
lnIeresIcosI !.7 !.6
AcIuarial(gain)/loss 4.2 4.8
8eneiIspaid (5.8) (J.0)
PasIservicecosI
loreignexchangeIranslaIiondierence (9.7) !2.6
PVOaIIhebeginningoIheyear !08.5 8!.!
PVOaIendoIheyear !!J.4 !08.5
II) Reconciliation of PVO and fair value of plan assets:
PVOaIendoIheyear !!J.4 !08.5
lairValueoplanasseIsaIendoIheyear
lundedsIaIus (!!J.4) (!08.5)
NeIasseI/(liabiliIy)recognisedinIhebalancesheeI (!!J.4) (!08.5)
III) Net cost for the year:
CurrenIservicecosI !4.5 !!.4
lnIeresIcosI !.7 !.6
SeIIlemenI(gain)projecIedbeneiIobligaIion
SeIIlemenIlossesplanasseIs
LxpecIedreIurnonplanasseIs
AcIuarial(gain)/losses 4.2 4.8
ToIalexpenserecognisedinIheConsolidaIedSIaIemenIoProiIandLoss 20.4 !7.8
IV) Assumptions used in accounting for the retirement benefit plan:
DiscounIraIe(%) !.J !.5
SalaryescalaIionraIe(%)
LxpecIedraIeoreIurnonplanasseIs(%)
LiabiliIyolumpsumreIiremenIbeneiIasabovealongwiIhliabiliIyorreIiremenIbeneiIsodirecIorsH!J.4million
(previousyearH!0.4million)isshownunderLongTermProvisions.
H inmillion
YearLnded
31.03.2013 J!.0J.20!2 J!.0J.20!! J!.0J.20!0 J!.0J.2009
OnplanliabiliIies !.J 2.0
OnplanasseIs
PresenIvalueobeneiIobligaIion (!!J.4) (!08.5) (8!.!) (64.4) (62.J)
lairvalueoplanasseIs
LxcessoobligaIionoverplanasseIs (!!J.4) (!08.5) (8!.!) (64.4) (62.J)
c) Irom Pharmaceutical Co., Limited, Japan
TheCompanysanoIhersubsidiaryaI!apanhasreIiremenIplanIocoveriIsemployees.
UnderIheplan,employeesareenIiIledIobeneiIsbasedonlevelosalaries,lengIhoserviceandcerIainoIheracIors
aIIheIimeoreIiremenIorIerminaIion.
ThemosIrecenIacIuarialvaluaIionoIhepresenIvalueoIhedeinedbeneiIobligaIionorreIiremenIbeneiIswere
carriedouIasaIMarchJ!,20!J.ThepresenIvalueoIhedeinedbeneiIobligaIionsandIherelaIedcurrenIservice
cosIandpasIservicecosI,weremeasuredusingIheProjecIedUniICrediIMeIhod.
Sr.
No.
ParIiculars LumpsumPeIiremenI8eneiIs
(nonunded)
As on 31.03.2013 AsonJ!.0J.20!2
obligation:
CurrenIServiceCosI 27.2
lnIeresICosI 4.2
AcIuarial(gain)/loss 6.4 (!.0)
8eneiIspaid (J!.7)
loreignexchangeIranslaIiondierence (2!.J) (22.5)
PVOaIbeginningoIheyear 28J.4 J06.9
PVOaIIheendoIheyear 268.2 28J.4
II) Reconciliation of PVO and fair value of plan assets:
PVOaIendoIheyear 268.2 28J.4
lairValueoplannedasseIsaIendoIheyear
lundedsIaIus (268.2) (28J.4)
NeIasseI/(liabiliIy)recognisedinIhebalancesheeI (268.2) (28J.4)
III) Net cost for the year:
CurrenIServicecosI 27.2
lnIeresIcosI 4.2
AcIuarial(gain)/losses 6.4 (!.0)
ToIalexpenserecognisedinIheConsolidaIedSIaIemenIoProiIandLoss J7.8 (!.0)
IV) Assumptions used in accounting for retirement benefit plans:
DiscounIraIe(%) !.0 !.4
SalaryescalaIionraIe(%)
LxpecIedraIeoreIurnonplanasseIs(%)
132 | Lupin Limited
H inmillion
YearLnded
31.03.2013 J!.0J.20!2 J!.0J.20!! J!.0J.20!0 J!.0J.2009
OnreIiremenIbeneiIliabiliIies (J.5) NA NA NA
OnplanasseIs NA NA NA
PresenIvalueobeneiIobligaIion (268.2) (28J.4) NA NA NA
lairvalueoplanasseIs NA NA NA
LxcessoobligaIionoverplanasseIs (268.2) (28J.4) NA NA NA
LxperienceadjusImenIinormaIioninrespecIopreviousyearisnoIavailable,hencenoIdisclosed.
d) Multicare Pharmaceuticals Philippines Inc., Philippines
TheCompanyssubsidiaryaIPhilippinesmakesannualconIribuIionsIoaprivaIebankIounddeinedbeneiIplanor
qualiyingemployees.ThemosIrecenIacIuarialvaluaIionoplanasseIsandIhepresenIvalueoIhedeinedbeneiI
obligaIionorreIiremenIbeneiIwerecarriedouIasaIMarchJ!,20!J.ThepresenIvalueoIhedeinedbeneiI
obligaIionsandIherelaIedcurrenIservicecosIandpasIservicecosI,weremeasuredusingIheProjecIedUniICrediI
MeIhod.
Sr.
No.
ParIiculars PeIiremenI8eneiIs
(unded)
As on 31.03.2013 AsonJ!.0J.20!2
obligation:
CurrenIservicecosI 8.0 6.5
lnIeresIcosI 2.4 !.8
AcIuarial(gain)/loss !9.9 0.J
8eneiIspaid (0.7)
PasIservicecosI
loreignexchangeIranslaIiondierence 4.8 4.0
PVOaIIhebeginningoIheyear J4.6 22.8
PVOaIendoIheyear 69.7 J4.6
LxpecIedreIurnonplanasseIs 0.8 0.7
AcIuarialgain/(loss) !.4 H(JJ,!09)
8eneiIspaid (0.7)
loreignexchangeIranslaIiondierence !.7 !.6
lairvalueoplanasseIsaIbeginningoIheyear !2.0 !0.0
lairvalueoplanasseIsaIendoIheyear 2J.7 !2.0
PVOaIendoyear 69.7 J4.6
lairValueoplanasseIsaIendoyear 2J.7 !2.0
lundedsIaIus (46.0) (22.6)
UnrecognisedacIuarial(loss)/gain 0.7
NeIasseI/(liabiliIy)recognisedinIhebalancesheeI (46.0) (2!.8)
CurrenIServicecosI 8.0 6.5
lnIeresIcosI 2.4 !.8
LxpecIedreIurnonplanasseIs (0.8) (0.7)
AcIuarial(gain)/losses !8.5
ToIalexpenserecognisedinIheConsolidaIedSIaIemenIoProiIandLoss 28.! 7.6
Sr.
No.
ParIiculars PeIiremenI8eneiIs
(unded)
As on 31.03.2013 AsonJ!.0J.20!2
lnvesImenIingovernmenIsecuriIies 4!% 5!%
lnvesImenIincommonIrusIund 44% 4!%
lnvesImenIinoIhersecuriIiesanddebIinsIrumenIs 8% 5%
lnvesImenIinloansandbilldiscounIs 5% !%
8anksavingsdeposiI 2% 2%
VI) Actual return on the plan assets 2.2 0.7
VII) Assumptions used in accounting for retirement benefit plan:
DiscounIraIe(%) 4.9 6.2
H inmillion
YearLnded
31.03.2013 J!.0J.20!2 J!.0J.20!! J!.0J.20!0 J!.0J.2009
OnplanliabiliIies !9.9 0.J NA
OnplanasseIs !.J H(JJ,!09) NA
PresenIvalueobeneiIobligaIion (69.7) (J4.6) (22.8) (!J.4) NA
lairvalueoplanasseIs 2J.7 !2.0 !0.0 8.0 NA
LxcessoobligaIionoverplanasseIs (46.0) (22.6) (!2.8) (5.4) NA
LxperienceadjusImenIinormaIioninrespecIopreviousIwoyearsisnoIavailable,hencenoIdisclosed.
38. Details on unhedged foreign currency exposure:
TheyearendoreigncurrencyexposuresIhaIhavenoIbeenhedgedbyaderivaIiveinsIrumenIoroIherwiseareasgiven
below:
a. AmounIreceivableinoreigncurrencyonaccounIoIheollowing:
ParIiculars loreignCurrency As on 31.03.2013 AsonJ!.0J.20!2
H in million
Amount in
Foreign Currency
H inmillion
AmounIin
loreignCurrency
LxporIogoods
AUD 5J.2 94!600 66.8 !262!47
ACUD 2.0 J6850 !.7 JJ800
LUPO 46J.0 666!0J4 J95.5 5825JJ9
USD J047.0 56!27585 2J!4.6 45495!4!
OIherreceivables
UZS HJ0!88 !!6!058 0.! 26865!J
LUPO 0.! 794
USD !4.! 259596 9.9 !95425
PU8 !.! 646264 2.0 !!!9J22
KZT 0.6 !68929! 0.J 75J799
PM8 !.! !225JJ 2.2 272886
UAH H26009 J822 0.! !255!
CHl 7.J !4J07!

134 | Lupin Limited
b. AmounIpayableinoreigncurrencyonaccounIoIheollowing:
ParIiculars loreignCurrency As on 31.03.2013 AsonJ!.0J.20!2
H in million
Amount in
Foreign Currency
H inmillion
AmounIin
loreignCurrency
lmporIogoods
andservices
USD !545.4 2887!855 !J56.5 26772JJ2
G8P !0J.8 !26J4!! !7.! 225J8!
LUPO 4!6.9 59204!0 282.6 4!48594
CHl 0.4 66!8 6.7 !!904J
!PY 5.5 95!0000
CAD 0.7 !45J9
KZT 0.! J9!06!
SGD 0.6 !44J4
8PL !.! J9756
SLK 0.! !575!
Securedand
Unsecured
Loanspayable
USD 570J.7 !0506986J !0288.2 20222546!
lnIeresIaccrued
andnoIdueon
Securedand
Unsecuredloans
USD 0.2 2964 0.2 J9JJ
OIherpayables
USD J48.4 64J9959 J05.2 60049!2
PU8 0.7 420588 !.0 586988
KZT 0.9 2544909 0.J 869288
ACUD 0.7 !2!!2 J.4 662!0
UAH 2.9 4222!J 2.! J!575J
LUPO 69.2 986454 44.4 664440
AUD 2.0 J4562 2.6 48422
CHl !.! !8440 0.J 4696
ALD 0.J !8594 0.J !8594
8PL 0.5 !6!66
39. Details of Derivative Contracts:
TheCompanyenIersinIoorwardandopIionconIracIsinorderIohedgeandmanageiIsoreigncurrencyexposures
IowardsuIureexporIearnings.SuchderivaIiveconIracIs(includingconIracIsoraperiodexIendingbeyondIheinancial
year20!J!4)areenIeredinIobyIheCompanyorhedgingpurposesonly,andareaccordinglyclassiiedascashlow
hedges.
ThecaIegorywisebreakupIhereoisasunder:
(AmounIinmillion)
ParIiculars Currency As at 31.03.2013 AsaIJ!.0J.20!2 CrossCurrency
lorwardconIracIs USD 244.0 2J2.0 lNP
OpIionconIracIs USD 7.5 J!.5 lNP
lorwardconIracIs LUP !0.0 USD
ThechangesinIheairvalueoIhederivaIiveconIracIsduringIheyearendedMarchJ!,20!J,aggregaIingH44!.9
million(previousyearH6J!.9milliondebiIed)designaIedandeecIiveashedgeshavebeencrediIedIoIheCashllow
HedgePeserveandH!!.8million(previousyearH4.7million)isdebiIedIoIheConsolidaIedSIaIemenIoProiIandLoss,
beingIheineecIiveporIionIhereo.
40. TheaggregaIeamounIorevenueexpendiIureincurredbyIheGroupduringIheyearonPesearchandDevelopmenIand
showninIherespecIiveheadsoaccounIisH7098.4million(previousyearH5228.Jmillion).
41. a) During Ihe year, Ihe Company, Ihrough iIs wholly owned subsidiary Lupin Holdings 8.V., NeIherlands (LH8V),
acquired/subscribedIoIheequiIysIakeoIheollowingsubsidiaries:
i) AddiIionalinvesImenIinHormosanPharmaGmbH,GermanyaIaIoIalcosIoH262.2million(previousyearH!77.!million).
ii) AddiIionalinvesImenIinLupinPhilippineslnc.,PhilippinesaIaIoIalcosIoHJJ.7million(previousyearH6.!million).
iii) AddiIionalinvesImenIinLupinMexicoSAdeCV,MexicoaIaIoIalcosIoH!0.7million(previousyearH8.6million).
iv) AddiIionallnvesImenIinGenericHealIhPIyLimiIed,AusIraliaaIaIoIalcosIoH465.!million(previousyearHnil).
b) DuringIhepreviousyear,KyowaPharmaceuIicallndusIryCo.LId.,!apan(whollyownedsubsidiaryoLH8V)acquired
99.99%equiIysIakeolromPharmaceuIicalCo.LId.,!apanaIaIoIalcosIoH2289.4million.
The above acquisiIions / subscripIions are based on Ihe neI asseI values, Ihe uIure projecIed revenues, operaIing
proiIs,cashlows,eIc.oIheinvesIeecompanies.
c) GoodwillonConsolidaIioncompriseso:
ParIiculars 2012-2013 20!!20!2
Opening8alance 5040.0 J254.9
Add:Onincreasein/acquisiIionosIakeinsubsidiariesduringIheyear 62.J !550.0
Add/(less):LxchangedierenceduringIheyearonIranslaIionoGoodwill
ooreignsubsidiaries
(29.!) 2J5.!
TOTAL 5073.2 5040.0
42. loreignCurrencyTranslaIionPeserve(PeernoIeJ)represenIsIheneIexchangedierenceonIranslaIionoIheinancial
sIaIemenIs o oreign subsidiaries locaIed aI !apan, AusIralia, Germany, SouIh Arica, Philippines, SwiIzerland and
CanadaromIheirlocalcurrencyIoIhelndiancurrency.SuchoperaIionsareconsideredasnoninIegralIoIheCompany.
ConsequenIly, in accordance wiIh Ihe AccounIing SIandard !! (AS!!) The LecIs o Changes in loreign Lxchange
PaIes (Pevised 200J), Ihe exchange raIe dierence on IranslaIion o H 28.0 million (previous year H 982.9 million
crediIed)isdebiIedduringIheyearIosuchreserveinsIeadoIoIheConsolidaIedSIaIemenIoProiIandLoss.
43. MinoriIylnIeresIrepresenIsIheminoriIysshareinequiIyoIhesubsidiariesasbelow:
ParIiculars As on 31.03.2013 AsonJ!.0J.20!2
PharmaDynamics(ProprieIary)LimiIed,SouIhArica
ShareinLquiIyCapiIal 0.2 0.2
ShareinPeservesandSurplus* 44J.4 625.5
44J.6 625.7
MulIicarePharmaceuIicalsPhilippineslnc.,Philippines
ShareinLquiIyCapiIal !J.2 !J.2
ShareinPeservesandSurplus* !0!.4 76.0
!!4.6 89.2
GenericHealIhPIyLimiIed,AusIralia
ShareinLquiIyCapiIal !20.4 2!0.9
ShareinPeservesandSurplus (84.!) (20J.0)
J6.J 7.9
lromPharmaceuIicalCo.,LimiIed,!apan
ShareinLquiIyCapiIal
ShareinPeservesandSurplus 0.!
0.!
TOTAL 594.5 722.9
*NeIoDividendonLquiIyShares(includingCorporaIeTaxonDividend)byOverseasSubsidiariesIoMinoriIyShareholders
orpreviousyears(PeernoIeJ)
136 | Lupin Limited
44. Auditors Remuneration:
2012-2013* 20!!20!2*
PaymenIIoAudiIors:
a)AsAudiIors 4J.0 J0.9
b)loroIherservicesincludingTaxaIionmaIIersandcerIiicaIions !2.7 !6.2
c)PeimbursemenIoouIopockeIexpenses 0.5 0.2
TOTAL 56.2 47.3
*LxcludingIaxes.
45. a) TheCompanyholds!00%equiIysIakeaIacosIoH20.0millioninLupin(Lurope)LimiIed,UK(LLL).Thesaidsubsidiary
hasincurredlossesduringIheyearandneIworIhissubsIanIiallyerodedaIIheendoIheyear.ConsideringIheinancial,
IechnicalandoperaIionalsupporIromIheCompanyandLLLsprojecIions/plansorinIroducingnewproducIs(including
producIsromLupinLimiIed,lndia)inIheUKMarkeIinIhenearuIure,growIhinIheIurnoverandproiIabiliIyisexpecIed,
whichwouldresulIinimprovemenIinneIworIh,overaperiodoIime.
b) TheCompanyIhroughiIswhollyownedsubsidiaryaINeIherlands,namelyLupinHoldings8.V.(LH8V),holds!00%equiIy
sIakeaIcosIoHJ!0.7millioninHormosanPharmaGmbH,Germany(Hormosan).HormosanconIinuedIoincurlosses
duringIheyearandneIworIhissubsIanIiallyerodedasaIIheendoIheyear.LH8V,consideringIhegrowIh&business
plans o Hormosan, has made urIher capiIal conIribuIion o H 262.2 million (previous year H !77.! million) during Ihe
year.ConsideringIheinancial,IechnicalandoperaIionalsupporIromLupinLimiIed(IheholdingcompanyoLH8V)and
HormosansprojecIions/plansorinIroducingnewproducIs(includingproducIsromLupinLimiIed,lndia)inIheGerman
MarkeIinIhenearuIure,IheCompanyisoIheviewIhaIIhiswouldleadIoanimprovemenIingrowIh,Iurnoverand
proiIabiliIy,whichwouldresulIinimprovemenIinneIworIh,overaperiodoIime.
c) TheCompanyIhroughiIswhollyownedsubsidiaryaINeIherlands,namelyLH8V,hasincreasediIssIakeinGenericHealIh
PIyLimiIed,AusIralia(GH)Io9!.04%represenIing!88405J78(previousyear74504090)shares,cosIingH!044.2million
(previousyearH579.!million),consideringIhegrowIh&businessplansoGH.TheCompanyconsidersiIsinvesImenIsin
GHIobelongIermandsIraIegicinnaIure.LH8VhadgiveninIeresIbearingloanoH!70.6million(previousyearH!58.6
million)IoGHwhichhasbeenconverIedinIoLquiIybyissueo60000000shares.DuringIheyear,IhoughGHhasincurred
losses,IhereisanimprovemenIinIheneIworIhposiIionasaIIheyearenddueIourIhercapiIalconIribuIionromLH8V.
GHhasplansIoinIroducenewproducIs(includingproducIsromLupinLimiIed,lndia)inIheAusIralianmarkeIinIhenear
uIure.AsaresulIoIhisiIisexpecIedIhaIGHsIurnoverwouldincreaseleadingIoproiIabiliIyandimprovemenIinneI
worIhoveraperiodoIime.
d) DuringIheyear,basedonnoIiceoIerminaIionromiIsIollmanuacIuringseIupvendor,LupinPharmaCanadaLimiIed
(LPCL), !00% subsidiary o LH8V, has impaired iIs CapiIal WorklnProgress amounIing Io H !28.6 million. The IoIal
invesImenIsmadebyLH8VisH!25.JmillionandaccumulaIedlossesoLPCLisH!!9.!million.AsaresulI,neIworIho
LPCLhasbeenerodedsubsIanIially.
e) lurIher, neIworIh o Lupin Philippines lnc. and Lupin Mexico SA de CV is subsIanIially less Ihan Ihe carrying amounI o
invesImenIsmadebyLH8V.
8ased on Ihe above and considering IhaI Ihe Groups invesImenIs in Ihese subsidiaries are held as sIraIegic long Ierm
invesImenIs, in Ihe opinion o Ihe managemenI, Ihe diminuIion in Ihe value o Ihe aoresaid invesImenIs is considered
Iemporary.
46. a) DuringIheyearendedMarchJ!,20!0,awhollyownedsubsidiarycompanylocaIedinSwiIzerland,LupinAIlanIisHoldings
SA(LAHSA),acquiredcerIainasseIs(ManuacIuringKnowhow/ProducIMarkeIingPighIs,eIc.)relaIedIoaproducI,in
accordance wiIh Ihe Ierms o agreemenI enIered inIo by Ihe said subsidiary. lurIher, anoIher wholly owned subsidiary
oIheCompanylocaIedaICanadawasinIheprocessoseIIingupoplanIandmachineryrelaIedIoIhesaidproducI.
Accordingly,pendingcompleIionoacIiviIiesnecessaryorproducIavailabiliIy,IhesaidasseIswereincludedunderCapiIal
WorklnProgress(CWlP).
DuringIhepreviousyear,IheaoresaidIwosubsidiaries,hadiniIiaIedIrialrunbaIchesIoIesIwheIherIheproducIouIpuI
isasperIhedesiredspeciicaIions.DuringsuchIrialruns,IhereweresomeIechnicalissuesIhaIwereacedorwhichIhese
CompanieswereworkingonresolvingIhesame.
During Ihe currenI year, LAHSA received a IerminaIion noIice rom Ihe Ioll manuacIurer where iIs machinery is locaIed
inormingIhesaidsubsidiaryIoremoveiIsmachineryromIhepremises.ThemanagemenIoIheGroupisinIheprocess
o evaluaIing Ihe Iechnical eicacy aI an alIernaIe locaIion. Considering Ihe esIimaIed cosIs involved in dismanIling and
shiIingoIheplanIandmachinery,IheIechnicalmodiicaIionsIhaImayberequiredorenablingIheexisIingplanIand
machinery Io be conigured and reinsIalled aI Ihe new locaIion, Ihe mangamenI o Ihe Group has on a prudenI basis,
consideredullyimpairingIhevalueosuchplanIandmachineryamounIingIoH!28.6million.
b) DuringIhecurrenIyear,oneoIheMarkeIingPighIsoabrandedproducIoLAHSAormingparIolnIangibleAsseIsin
respecIoaproducIaggregaIingH!0!7.7million(neIoamorIizaIionupIoIhepreviousyear)hasbeenimpairedasgeneric
launchesoIheproducIhaveIakenplace.
c) During Ihe currenI year, one o Ihe MarkeIing PighIs o LAHSA orming parI o lnIangible AsseIs Under DevelopmenI
aggregaIingH!28.!millionhasbeenimpairedasIhesaidsubsidiaryisnoIpursuingurIherdevelopmenIandlaunchoIhe
saidproducI.
47. LxciseduIy(PeernoIe27)includesHJ.2million(previousyearH2J.2million)beingneIimpacIoIheexciseduIyprovisionon
openingandclosingsIock.
48. TheCompanyandiIssubsidiarieslocaIedinUSA,Philippines,SouIhAricaandAusIraliaareinvolvedinvariouslegalproceedings,
includingproducIliabiliIyrelaIedclaims,employmenIclaimsandoIherregulaIorymaIIersrelaIingIoconducIoiIsbusiness.
TheGroupcarriesproducIliabiliIyinsurancepolicywiIhanamounIiIbelievesissuicienIoriIsneeds.lnrespecIooIherclaims,
Ihe Group believes, Ihese claims do noI consIiIuIe maIerial liIigaIion maIIers and wiIh iIs meriIorious deenses Ihe ulIimaIe
disposiIionoIhesemaIIerswillnoIhavemaIerialadverseeecIoniIsConsolidaIedlinancialSIaIemenIs.
49. ThecurrenIIaxinrespecIooreignsubsidiarieshasbeencompuIedconsideringIheapplicableIaxlawsandIaxraIesoIhe
respecIivecounIries,ascerIiiedbyIhelocalIaxconsulIanIs/localmanagemenIoIhesaidsubsidiaries.
50. As per besI esIimaIe o Ihe managemenI, provision has been made Iowards probable nonsaleable reIurn o goods rom
cusIomers,asperAccounIingSIandard29(AS29)noIiiedunderCompanies(AccounIingSIandards)Pules,2006.
ParIiculars 2012-2013 20!!20!2
CarryingamounIaIIhebeginningoIheyear 562.0 267.0
Add:AddiIionalProvisionsmadeduringIheyear !2J!.7 !225.J
Less:AmounIsused/uIilisedduringIheyear !!04.2 977.2
Add:LxchangeDierenceduringIheyear J2.2 46.9
CarryingamounIaIIheendoIheyear 72!.7 562.0
51. NoborrowingcosIhasbeencapiIalisedduringIheyear.
138 | Lupin Limited
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2
.
53. Related Party Disclosures, as required by Accounting Standard 18 (AS-18) are given below :
A. Relationships -
Category I: Key Management Personnel:
Dr.D.8.GupIa Chairman
Dr.K.K.Sharma ManagingDirecIor
Mrs.M.D.GupIa LxecuIiveDirecIor
Mrs.ViniIaGupIa GroupPresidenIandCLOoLupinPharmaceuIicals,lnc.,USA
Mr.NileshGupIa LxecuIiveDirecIor
Category II: Others (Relatives of Key Management Personnel and Entities in which the Key Management
Personnel have control or significant influence)
Dr.AnujaGupIa(DaughIeroChairman)
Mrs.KaviIaGupIaSabharwal(DaughIeroChairman)
Dr.PichaGupIa(DaughIeroChairman)
Mrs.PushpaKhandelwal(SisIeroChairman)
8haraISIeellabricaIionandLngineeringWorks
D.8.GupIa(HUl)
LnzalChemicals(lndia)LimiIed(upIoJ!sIMarch20!2)
LupinHumanWelareandPesearchloundaIion
LupinlnIernaIionalPvI.LimiIed
LupinlnvesImenIsPvI.LimiIed
LupinMarkeIingPvI.LimiIed
MaIashreeGomaIiDevi!anaSevaNidhi
NovamedlnvesImenIsPvI.LimiIed(ormerlyNovamedPharmaceuIicalsPvI.LimiIed)
PolynovalndusIriesLimiIed
PahaslnvesImenIsPvI.LimiIed
SynchemlnvesImenIsPvI.LimiIed(ormerlySynchemChemicals(l)PvI.LimiIed)
Visiomed(lndia)PvI.LimiIed
ZymaLaboraIoriesLimiIed
B. Transactions with the related parties:
H inmillionunlessoIherwisesIaIed
Sr.
No.
TransacIions KeyManagemenI
Personnel
OIhers ToIal
!. MiscellaneousincomeonaccounIosaleo
byproducIs

() (!.7) (!.7)
2. PenILxpenses !0!.0 !0!.0
() (95.9) (95.9)
J. LxpensesPecovered/PenIPeceived 2.9 2.9
() (2.8) (2.8)
4. PemuneraIionPaid 5!0.2 5!0.2
(J55.5) () (J55.5)
5. PurchasesoGoods/MaIerials
() (29.7) (29.7)
6. DonaIionsPaid 9!.4 9!.4
() (57.2) (57.2)
7. DividendPaid 20.J 65!.4 67!.7
(!9.0) (6!0.7) (629.7)
8. DeposiIspaidorLeaveandLicence
arrangemenIorpremises

() (0.2) (0.2)

140 | Lupin Limited
OuIoIheaboveiIemsIransacIionsinexcesso!0%oIheIoIalrelaIedparIyIransacIionsareasunder:
Sr.
No.
TransacIions PelaIedparIy
relaIion
For the year
ended
31.03.2013
lorIheyear
ended
J!.0J.20!2
!. MiscellaneousincomeonaccounIo
saleobyproducIs
LnzalChemicals(lndia)LimiIed OIhers !.7
2. PenILxpenses
LupinlnvesImenIsPvI.LimiIed OIhers 82.0 78.!
8haraISIeellabricaIionand
LngineeringWorks
OIhers !0.J 9.7
J. LxpensesPecovered/PenIPeceived
PolynovalndusIriesLimiIed OIhers 2.9 2.8
4. PemuneraIionsPaid
Dr.D.8.GupIa KeyManagemenIPersonnel 2!9.7 !50.0
Dr.K.K.Sharma KeyManagemenIPersonnel !2J.4 8J.5
Mrs.ViniIaGupIa KeyManagemenIPersonnel !!!.8 77.9
Mr.NileshGupIa KeyManagemenIPersonnel 50.! J8.5
5. PurchasesoGoods/MaIerial
LnzalChemicals(lndia)LimiIed OIhers 29.7
6. DonaIionsPaid
LupinHumanWelareandPesearch
loundaIion
OIhers 8J.6 52.!
7. DividendPaid
LupinMarkeIingPvI.LimiIed OIhers !29.J !2!.2
PahaslnvesImenIsPvI.LimiIed OIhers !46.2 !J7.!
Visiomed(lndia)PvI.LimiIed OIhers !J9.2 !J0.5
ZymaLaboraIoriesLimiIed OIhers !75.9 !64.9
8. DeposiIspaidorLeaveandLicence
arrangemenIorpremises
ZymaLaboraIoriesLimiIed OIhers H88500/
SynchemlnvesImenIsPvI.LimiIed OIhers H88500/
C. Balances due from /to the related parties:
Sr.
No.
TransacIions KeyManagemenI
Personnel
OIhers ToIal
!. DeposiIspaidunderLeaveandLicence
arrangemenIoroicepremises
62.2 62.2
() (62.2) (62.2)
2. TradePayables 44.4 44.4
() (0.6) (0.6)
J. CommissionPayable !78.0 !78.0
(!05.5) () (!05.5)
4. LxpensesPeceivable
() (H27789/) (H27789/)
Notes :
i) liguresinbrackeIsareorpreviousyear.
ii) PelaIedparIyrelaIionshipisasidenIiiedbyIheCompanyandrelieduponbyIheAudiIors.
54. DuringIheyear,IheCompanyhasreceivednoIiceunderSecIion!5JA(!)(a)oIhelncomeTaxAcI,!96!requiringIhe
CompanyIoilerevisedreIurnsorsixassessmenIyearsromAY200607IoAY20!!!2.
lnpursuanceIoIhesame,IheCompanyhasiledrevisedreIurnsorIhesaidassessmenIyearsandIhishasresulIedin
addiIionalIaxpaymenIsoHJ5.!millionandareducIionoMATCrediILnIiIlemenIoH228.2millionasisdisclosed
underSIaIemenIoProiIandLossandnoIe!5LongTermLoansandAdvancesrespecIively.
55. TheConsolidaIedlinancialSIaIemenIsincluderesulIsooperaIionsoonenewsubsidaryincorporaIedduringIheyear,
resulIsooperaIionsoonesubsidiaryliquidaIedduringIheyearandIheresulIsooperaIionsoIheenIireIwelvemonIhs
oIwosubsidiariesacquired/incorporaIedduringIhepreviousyear.Accordingly,IhecurrenIyeariguresarenoIsIricIly
comparablewiIhIhoseoIhepreviousyear.
56. Previous year igures have been regrouped / reclassiied wherever necessary Io correspond wiIh Ihe currenI years
classiicaIion/disclosure.
SignaIuresIoNoIe!Io56

lorLupin Limited
Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma M. D. Gupta Nilesh Gupta
Chairman ManagingDirecIor LxecuIiveDirecIor LxecuIiveDirecIor
Vinita Gupta Dr. Vijay Kelkar Richard Zahn R. A. Shah
DirecIor DirecIor DirecIor DirecIor
Dr. K. U. Mada Dileep C. Choksi
DirecIor DirecIor
Place:Mumbai
DaIed:May8,20!J CompanySecreIary
R. V. Satam
142 | Lupin Limited
STANDALONE ACCOUNTS
INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF LUPIN LIMITED
Report on the Financial Statements
We have audiIed Ihe accompanying inancial sIaIemenIs o
LUPlNLlMlTLD(IheCompany),whichcompriseIhe8alance
SheeIasaIMarchJ!,20!J,IheSIaIemenIoProiIandLoss
and Ihe Cash llow SIaIemenI or Ihe year Ihen ended, and
a summary o Ihe signiicanI accounIing policies and oIher
explanaIoryinormaIion.
Managements Responsibility for the Financial Statements
TheCompanysManagemenIisresponsibleorIhepreparaIion
oIheseinancialsIaIemenIsIhaIgiveaIrueandairviewo
IheinancialposiIion,inancialperormanceandcashlowso
Ihe Company in accordance wiIh Ihe AccounIing SIandards
reerred Io in SecIion 2!!(JC) o Ihe Companies AcI, !956
(IheAcI)andinaccordancewiIhIheaccounIingprinciples
generally accepIed in lndia. This responsibiliIy includes Ihe
design,implemenIaIionandmainIenanceoinIernalconIrol
relevanIIoIhepreparaIionandpresenIaIionoIheinancial
sIaIemenIs IhaI give a Irue and air view and are ree rom
maIerialmissIaIemenI,wheIherdueIoraudorerror.
Auditors Responsibility
OurresponsibiliIyisIoexpressanopiniononIheseinancial
sIaIemenIs based on our audiI. We conducIed our audiI in
accordance wiIh Ihe SIandards on AudiIing issued by Ihe
lnsIiIuIeoCharIeredAccounIanIsolndia.ThoseSIandards
require IhaI we comply wiIh eIhical requiremenIs and plan
andperormIheaudiIIoobIainreasonableassuranceabouI
wheIher Ihe inancial sIaIemenIs are ree rom maIerial
missIaIemenI.
An audiI involves perorming procedures Io obIain audiI
evidence abouI Ihe amounIs and Ihe disclosures in Ihe
inancialsIaIemenIs.TheproceduresselecIeddependonIhe
audiIors judgmenI, including Ihe assessmenI o Ihe risks o
maIerial missIaIemenI o Ihe inancial sIaIemenIs, wheIher
dueIoraudorerror.lnmakingIhoseriskassessmenIs,Ihe
audiIorconsidersinIernalconIrolrelevanIIoIheCompanys
preparaIionandairpresenIaIionoIheinancialsIaIemenIs
in order Io design audiI procedures IhaI are appropriaIe in
Ihe circumsIances, buI noI or Ihe purpose o expressing
an opinion on Ihe eecIiveness o Ihe Companys inIernal
conIrol.AnaudiIalsoincludesevaluaIingIheappropriaIeness
oIheaccounIingpoliciesusedandIhereasonablenessoIhe
accounIing esIimaIes made by Ihe ManagemenI, as well as
evaluaIingIheoverallpresenIaIionoIheinancialsIaIemenIs.
We believe IhaI Ihe audiI evidence we have obIained is
suicienI and appropriaIe Io provide a basis or our audiI
opinion.
Opinion
ln our opinion and Io Ihe besI o our inormaIion and
according Io Ihe explanaIions given Io us, Ihe aoresaid
inancialsIaIemenIsgiveIheinormaIionrequiredbyIheAcI
in Ihe manner so required and give a Irue and air view in
conormiIywiIhIheaccounIingprinciplesgenerallyaccepIed
inlndia:
(a) inIhecaseoIhe8alanceSheeI,oIhesIaIeoaairs
oIheCompanyasaIMarchJ!,20!J,
(b) inIhecaseoIheSIaIemenIoProiIandLoss,oIhe
proiIoIheCompanyorIheyearendedonIhaIdaIe,
and
(c) in Ihe case o Ihe Cash llow SIaIemenI, o Ihe cash
lowsoIheCompanyorIheyearendedonIhaIdaIe.
Report on Other Legal and Regulatory Requirements
!. As required by Ihe Companies (AudiIors PeporI) Order,
200J (Ihe Order) issued by Ihe CenIral GovernmenI
in Ierms o SecIion 227(4A) o Ihe AcI, we give in Ihe
Annexure a sIaIemenI on Ihe maIIers speciied in
paragraphs4and5oIheOrder.
2. AsrequiredbySecIion227(J)oIheAcI,wereporIIhaI:
(a) WehaveobIainedallIheinormaIionandexplanaIions
which Io Ihe besI o our knowledge and belie were
necessaryorIhepurposesoouraudiI.
(b) ln our opinion, proper books o accounI as required
by law have been kepI by Ihe Company so ar as iI
appearsromourexaminaIionoIhosebooks.
(c) The 8alance SheeI, Ihe SIaIemenI o ProiI and Loss,
andIheCashllowSIaIemenIdealIwiIhbyIhisPeporI
areinagreemenIwiIhIhebooksoaccounI.
(d) ln our opinion, Ihe 8alance SheeI, Ihe SIaIemenI o
ProiIandLoss,andIheCashllowSIaIemenIcomply
wiIhIheAccounIingSIandardsreerredIoinSecIion
2!!(JC)oIheAcI.
(e) On Ihe basis o Ihe wriIIen represenIaIions received
rom Ihe direcIors as on March J!, 20!J Iaken on
recordbyIhe8oardoDirecIors,noneoIhedirecIors
is disqualiied as on March J!, 20!J rom being
appoinIedasadirecIorinIermsoSecIion274(!)(g)
oIheAcI.
K. A. Katki
ParIner
DaIed : May8,20!J
144 | Lupin Limited
ANNEXURE TO
THE INDEPENDENT AUDITORS REPORT
(PeerredIoinparagraph!underPeporIonOIherLegaland
PegulaIoryPequiremenIssecIionoourreporIoevendaIe)
Having regard Io Ihe naIure o Ihe Companys business /
acIiviIies/resulIsduringIheyear,clauses(x),(xii),(xiii),(xiv),
(xix)and(xx)oparagraph4oIheOrderarenoIapplicable
IoIheCompany.
(i) lnrespecIoiIsixedasseIs:
(a) TheCompanyhasmainIainedproperrecordsshowing
ull parIiculars, including quanIiIaIive deIails and
siIuaIionoixedasseIs.
(b) The ixed asseIs were physically veriied during Ihe
yearbyIheManagemenIinaccordancewiIharegular
programme o veriicaIion which, in our opinion,
providesorphysicalveriicaIionoallIheixedasseIs
aIreasonableinIervals.AccordingIoIheinormaIion
andexplanaIiongivenIous,nomaIerialdiscrepancies
werenoIicedonsuchveriicaIion.
(c) The ixed asseIs disposed o during Ihe year, in our
opinion, do noI consIiIuIe a subsIanIial parI o Ihe
ixedasseIsoIheCompanyandsuchdisposalhas,in
ouropinion,noIaecIedIhegoingconcernsIaIuso
IheCompany.
(ii) lnrespecIoiIsinvenIories:
(a) As explained Io us, Ihe invenIories were physically
veriied during Ihe year by Ihe ManagemenI aI
reasonableinIervals.
(b) lnouropinionandaccordingIoIheinormaIionand
explanaIions given Io us, Ihe procedures o physical
veriicaIionoinvenIoriesollowedbyIheManagemenI
werereasonableandadequaIeinrelaIionIoIhesize
oIheCompanyandIhenaIureoiIsbusiness.
(c) lnouropinionandaccordingIoIheinormaIionand
explanaIionsgivenIous,IheCompanyhasmainIained
proper records o iIs invenIories and no maIerial
discrepancieswerenoIicedonphysicalveriicaIion.
(iii) TheCompanyhasneiIhergranIednorIakenanyloans,
secured or unsecured, Io / rom companies, irms or
oIher parIies covered in Ihe PegisIer mainIained under
SecIionJ0!oIheCompaniesAcI,!956.
(iv) ln our opinion and according Io Ihe inormaIion and
explanaIionsgivenIous,havingregardIoIheexplanaIions
IhaIsomeoIheiIemspurchasedareospecialnaIure
andsuiIablealIernaIivesourcesarenoIreadilyavailable
or obIaining comparable quoIaIions, Ihere is an
adequaIe inIernal conIrol sysIem commensuraIe wiIh
IhesizeoIheCompanyandIhenaIureoiIsbusiness
wiIh regard Io purchases o invenIory and ixed asseIs
andIhesaleogoodsandservices.DuringIhecourseo
ouraudiI,wehavenoIobservedanymajorweaknessin
suchinIernalconIrolsysIem.
(v) ln respecI o conIracIs or arrangemenIs enIered in Ihe
PegisIermainIainedinpursuanceoSecIionJ0!oIhe
CompaniesAcI,!956,IoIhebesIoourknowledgeand
belieandaccordingIoIheinormaIionandexplanaIions
givenIous:
(a) TheparIicularsoconIracIsorarrangemenIsreerred
Io in SecIion J0! IhaI needed Io be enIered in Ihe
PegisIermainIainedunderIhesaidSecIionhavebeen
soenIered.
(b) Where each o such IransacIion is in excess o H 5
lakhs in respecI o any parIy, Ihe IransacIions have
beenmadeaIpriceswhichareprimaaciereasonable
having regard Io Ihe prevailing markeI prices aI Ihe
relevanIIime,oIherIhancerIainpurchaseswhichare
o a special naIure or which comparable quoIaIions
arenoIavailable.
(vi) AccordingIoIheinormaIionandexplanaIionsgivenIo
us,IheCompanyhasnoIaccepIedanydeposiIromIhe
publicduringIheyear.lnrespecIounclaimeddeposiIs,
Ihe Company has complied wiIh Ihe provisions o
SecIions58A,58AAoranyoIherrelevanIprovisionso
IheCompaniesAcI,!956.
(vii) ln our opinion, Ihe inIernal audiI uncIions carried ouI
during Ihe year by a irm o CharIered AccounIanIs
appoinIedbyIheManagemenIhavebeencommensuraIe
wiIh Ihe size o Ihe Company and Ihe naIure o iIs
business.
(viii) We have broadly reviewed Ihe cosI records mainIained
by Ihe Company pursuanI Io Ihe Companies (CosI
AccounIing Pecords) Pules, 20!! prescribed by Ihe
CenIral GovernmenI under SecIion 209(!)(d) o Ihe
CompaniesAcI,!956andareoIheopinionIhaI,prima
acie,IheprescribedcosIrecordshavebeenmainIained.
Wehave,however,noImadeadeIailedexaminaIiono
IhecosIrecordswiIhaviewIodeIerminewheIherIhey
areaccuraIeorcompleIe.
Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the
Amount Relates
Amount Involved
(H In million)
CenIralLxcise
AcI,!944
LxciseduIy CusIoms,LxciseandServiceTaxAppellaIe
Tribunal(CLSTAT)
!996!997
!9982000
200!20!0
46.2
CommissioneroCenIralLxcise(Appeals) !997!998
20022008
6.2
ServiceIaxcrediI
maIIers
CusIoms,LxciseandServiceTaxAppellaIe
Tribunal(CLSTAT)
20052008 266.6
CenIraland
variousSIaIes
SalesTaxAcIs
SalesIax SalesTaxTribunal 20042005
20062009
7.!
CommissioneroSalesTax(Appeals) 20042007
20082009
J.2
AssisIanICommissioneroSalesTax
(lnvesIigaIions)
200620!! 25.0
AddiIionalCommissioner 2002200J
20052009
2J.0
DepuIyCommissioner 2000200! 0.J
TherewerenounpaiddispuIedduesinrespecIolncomeIax,WealIhTax,CusIomsDuIyandCessduringIheyear.
(ix) AccordingIoIheinormaIionandexplanaIionsgivenIo
us,inrespecIosIaIuIorydues:
(a) TheCompanyhasgenerallybeenregularindeposiIing
undispuIedsIaIuIorydues,includingProvidenIlund,
lnvesIor LducaIion and ProIecIion lund, Lmployees
SIaIe lnsurance, lncomeIax, Sales Tax, WealIh Tax,
Service Tax, CusIoms DuIy, Lxcise DuIy, Cess and
oIhermaIerialsIaIuIoryduesapplicableIoiIwiIhIhe
appropriaIeauIhoriIies.
(b) TherewerenoundispuIedamounIspayableinrespecI
oProvidenIlund,lnvesIorLducaIionandProIecIion
lund, Lmployees SIaIe lnsurance, lncomeIax, Sales
Tax, WealIh Tax, Service Tax, CusIoms DuIy, Lxcise
DuIy,CessandoIhermaIerialsIaIuIoryduesinarrears
as aI March J!, 20!J or a period o more Ihan six
monIhsromIhedaIeIheybecamepayable.
(c) DeIailsoduesoSalesTax,ServiceTaxandLxciseDuIy
whichhavenoIbeendeposiIedasonMarchJ!,20!J
onaccounIodispuIesaregivenbelow:
(x) ln our opinion and according Io Ihe inormaIion and
explanaIionsgivenIous,IheCompanyhasnoIdeaulIed
in Ihe repaymenI o dues Io inancial insIiIuIions and
banks. The Company has noI issued debenIures during
Iheyear.
(xi) ln our opinion and according Io Ihe inormaIion and
explanaIions given Io us, Ihe Ierms and condiIions o
Ihe guaranIees given by Ihe Company or loans Iaken
by oIhers rom banks and inancial insIiIuIions are noI,
primaacie,prejudicialIoIheinIeresIsoIheCompany.
(xii) ln our opinion and according Io Ihe inormaIion and
explanaIions given Io us, Ihe Ierm loans have been
appliedbyIheCompanyduringIheyearorIhepurposes
or which Ihey were obIained, oIher Ihan Iemporary
deploymenIpendingapplicaIion.
(xiii) ln our opinion and according Io Ihe inormaIion and
explanaIionsgivenIous,andonanoverallexaminaIion
o Ihe 8alance SheeI o Ihe Company, we reporI IhaI
unds raised on shorIIerm basis have, prima acie, noI
beenusedduringIheyearorlongIerminvesImenI.
(xiv) AccordingIoIheinormaIionandexplanaIionsgivenIo
us,IheCompanyhasnoImadepreerenIialalloImenIo
sharesIoparIiesandcompaniescoveredinIhePegisIer
mainIained under SecIion J0! o Ihe Companies AcI,
!956.
(xv) To Ihe besI o our knowledge and according Io Ihe
inormaIion and explanaIions given Io us, no raud by
IheCompanyandnomaIerialraudonIheCompanyhas
beennoIicedorreporIedduringIheyear.
K. A. Katki
ParIner
DaIed : May8,20!J
146 | Lupin Limited
BALANCE SHEET AsAIMarchJ!,20!J
As at
31.03.2013
AsaI
J!.0J.20!2
EQUITY AND LIABILITIES
Shareholders Funds
ShareCapiIal 2 895.! 89J.J
PeservesandSurplus J 47,572.0 J6,450.8
48,467.! J7,J44.!
Non-Current Liabilities
LongTerm8orrowings 4 292.0 !,J49.2
DeerredTaxLiabiliIies(neI) 5 2,J29.2 !,905.0
OIherLongTermLiabiliIies 6 !!4.0 J76.!
LongTermProvisions 7 68J.5 J46.!
J,4!8.7 J,976.4
Current Liabilities
ShorITerm8orrowings 8 5,260.9 8,577.J
TradePayables 9 8,694.2 6,984.2
OIherCurrenILiabiliIies !0 2,!89.J 2,502.8
ShorITermProvisions !! 2,427.! 2,202.J
!8,57!.5 20,266.6
TOTAL 70,457.3 61,587.1
ASSETS
Non-Current Assets
lixedAsseIs !2
TangibleAsseIs 20,006.J !6,972.J
lnIangibleAsseIsAcquired !J0.2 !02.5
CapiIalWorkinProgress 2,40!.2 J,57J.J
22,5J7.7 20,648.!
NonCurrenIlnvesImenIs !J 6,880.4 6,872.9
LongTermLoansandAdvances !4 J,620.J J,8J5.6
JJ,0J8.4 J!,J56.6
Current Assets
lnvenIories !5 !J,J08.J !!,2J5.6
TradePeceivables !6 !8,742.7 !4,908.0
Cashand8ank8alances !7 20!.2 !92.0
ShorITermLoansandAdvances !8 2,840.! 2,684.4
OIherCurrenIAsseIs !9 2,J26.6 !,2!0.5
J7,4!8.9 J0,2J0.5
TOTAL 70,457.3 61,587.1
SeeaccompanyingnoIesormingparIoIheinancialsIaIemenIs
Dileep C. Choksi
DirecIor
STATEMENT OF PROFIT AND LOSSorIheYearLndedMarchJ!,20!J
For the
Current
Year Ended
31.03.2013
lorIhe
Previous
YearLnded
J!.0J.20!2
INCOME:
PevenueromOperaIions(Gross) 20 7!,844.! 54,268.5
Less:LxciseDuIy 6!9.0 420.2
PevenueromOperaIions(NeI) 7!,225.! 5J,848.J
OIherlncome 2! 2JJ.! J4.9
Total Revenue 71,458.2 53,883.2
EXPENSES:
CosIoPawandPackingMaIerialsConsumed 22 !9,272.! !5,92!.7
PurchasesoSIockinTrade 45(A) 7,760.J 5,992.7
ChangesinlnvenIories 2J (!,824.4) (!,J25.J)
olinishedGoods,WorkinProcessandSIockinTrade
Lmployee8eneiIsLxpense 24 7,!J0.8 5,8!2.2
linanceCosIs 25 JJ2.8 286.8
DepreciaIionandAmorIisaIionLxpense !2 !,50!.4 !,J!9.6
OIherLxpenses 26 20,047.! !5,828.4
Total Expenses 54,220.1 43,836.1
Profit before Tax 17,238.1 10,047.1
Tax Expense / (Benefit):
CurrenITaxLxpense 4,!8!.6 2,0!8.6
Less:MATCrediILnIiIlemenI (J7J.5)
TaxLxpenseorPriorYears J0.2
Add:PeversaloMATCrediIorPriorYears !57.9
NeICurrenITaxLxpense 4,J69.7 !,645.!
DeerredTax(neI) 264.! J58.J
Profit after Tax for the year 12,604.3 8,043.7
LarningsperequiIyshare(inH) J6
Basic 28.19 18.02
Diluted 28.07 17.94
laceValueoLquiIyShare(inH) 2.00 2.00
SeeaccompanyingnoIesormingparIoIheinancialsIaIemenIs
Dileep C. Choksi
DirecIor
148 | Lupin Limited
For the
Current
Year Ended
31.03.2013
lorIhe
Previous
YearLnded
J!.0J.20!2
A. Cash Flow from Operating Activities
ProiIbeoreTax !7,2J8.! !0,047.!
AdjusImenIsor:
DepreciaIionandAmorIisaIionLxpense !,50!.4 !,J!9.6
LossonSale/WriIeoolixedAsseIs(neI) !J9.8 !74.4
linanceCosIs JJ2.8 286.8
lnIeresIonlixedDeposiIswiIh8anks (57.7) (2J.4)
DividendonNonCurrenIlnvesImenIs (0.2) (0.9)
ProvisionorDoubIulTradePeceivables J2.7 2.0
ProvisionorDoubIulAdvances 7.J
LxpensesonSIockOpIions/SIockAppreciaIionPighIs 4J.7 !5.5
UnrealisedLxchangeloss/(gain)onrevaluaIion(neI) 72.5 (99.6)
Operating Profit before Working Capital Changes !9,J!0.4 !!,72!.5
ChangesinworkingcapiIal:
AdjusImenIsor(increase)/decreaseinoperaIingasseIs:
lnvenIories (2,072.7) (2,824.5)
TradePeceivables (J,908.6) (2,J76.9)
ShorITermLoansandAdvances (!6J.0) (78!.5)
LongTermLoansandAdvances (28J.8) (252.2)
OIherCurrenIAsseIs (989.4) (J77.7)
AdjusImenIsorincrease/(decrease)inoperaIingliabiliIies:
TradePayables !,720.5 !,!07.!
OIherCurrenILiabiliIies 55.5 !67.!
OIherNonCurrenILiabiliIies (!J.J) (!5.9)
ShorITermProvisions !!0.0 !67.5
LongTermProvisions JJ7.4 66.8
Cash Generated from Operations !4,!0J.0 6,60!.J
NeIlncomeIaxpaid (4,020.6) (!,82J.!)
Net Cash Flow from Operating Activities 10,082.4 4,778.2
B. Cash Flow from Investing Activities
CapiIalexpendiIureonixedasseIs,includingcapiIaladvances (J,776.7) (4,0!6.6)
ProceedsromsaleoixedasseIs J.5 6.7
PurchaseoNonCurrenIinvesImenIinsubsidiaries (7.5)
8ankbalancesnoIconsideredasCashandcashequivalenIs(neI) J.6 6.J
DividendonNonCurrenIlnvesImenIs 0.2 0.9
lnIeresIonlixedDeposiIswiIh8anks 57.7 2J.4
Net Cash Used in Investing Activities (3,719.2) (3,979.3)
CASH FLOW STATEMENT orIheYearLndedMarchJ!,20!J
For the
Current
Year Ended
31.03.2013
lorIhe
Previous
YearLnded
J!.0J.20!2
C. Cash Flow from Financing Activities
PepaymenIoLongIerm8orrowings(neI) (!,!J2.!) (97.!)
ProceedsromShorIIerm8orrowingsWorkingCapiIalLoans(neI) (J,J4!.J) 9J7.2
ProceedsromissueoequiIyshares(LSOPs) !.7 0.9
SecuriIiesPremiumPeceived(LSOPs) !26.7 50.7
linanceCosIs (J44.5) (J!2.8)
Dividendpaid (!,428.9) (!,JJ6.9)
TaxonDividend (2J2.0) (2!7.2)
Net Cash Used in Financing Activities (6,350.4) (975.2)
Net increase / (decrease) in Cash and Cash equivalents 12.8 (176.3)
CashandCashequivalenIsasaIIhebeginningoIheyear !68.8 J45.!
Cash and Cash equivalents as at the end of the year 181.6 168.8
Reconciliation of Cash and cash equivalents with the Balance Sheet
Cashand8ank8alancesasper8alanceSheeI(PeernoIe!7) 20!.2 !92.0
Less:8ankbalancesnoIconsideredasCashandcashequivalenIsas
deinedinASJCashllowSIaIemenIs(PeernoIe!7)
!9.6 2J.2
Cash and cash equivalents as restated as at the year end (Refer note 17) 181.6 168.8
Notes:
!. TheaboveCashllowSIaIemenIhasbeenpreparedunderIhelndirecIMeIhodasseIouIinIheAccounIingSIandardJ
(ASJ)CashllowSIaIemenI.
2. PurchaseoNonCurrenIinvesImenIinsubsidiariesexcludesinvesImenIsoHnil(previousyearH6!.7million)madein
exchangeoIranseroland.(PeernoIe!J)
J. CashcomprisescashonhandandCurrenIAccounIswiIhbanks.CashequivalenIsareshorIIermbalances(wiIhan
originalmaIuriIyoIhreemonIhsorlessromIhedaIeoacquisiIion),highlyliquidinvesImenIsIhaIarereadilyconverIible
inIoknownamounIsocashandwhicharesubjecIIoinsigniicanIriskochangesinvalue.
Dileep C. Choksi
DirecIor
DaIed: May8,20!J CompanySecreIary
150 | Lupin Limited
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1A. OVERVIEW:
LupinLimiIed,(IheCompany)wasincorporaIedin!98JasLupinChemicalsPrivaIeLimiIed.LupinLaboraIoriesLimiIed
whichwasincorporaIedin!972wasamalgamaIedwiIhIheCompanyw.e..0!.04.2000,pursuanIIoanOrderpassed
by Ihe Mumbai High CourI. The Company is an innovaIion led TransnaIional PharmaceuIical Company producing a
widerangeoqualiIygenericandbrandedormulaIionsandbulkdrugs.TheCompanyalongwiIhiIssubsidiarieshas
manuacIuringlocaIionsspreadacrosslndiaand!apanwiIhIradingandoIherincidenIalandrelaIedacIiviIiesexIending
IoworldmarkeIs.
1B. SIGNIFICANT ACCOUNTING POLICIES:
a) 8asisoaccounIingandpreparaIionolinancialSIaIemenIs:
TheinancialsIaIemenIsoIheCompanyhavebeenpreparedinaccordancewiIhIheGenerallyAccepIedAccounIing
Principlesinlndia(lndianGAAP)IocomplywiIhIheAccounIingSIandardsnoIiiedunderIheCompanies(AccounIing
SIandards)Pules,2006(asamended)andIherelevanIprovisionsoIheCompaniesAcI,!956.TheinancialsIaIemenIs
have been prepared on accrual basis under Ihe hisIorical cosI convenIion. The accounIing policies adopIed in Ihe
preparaIionoIheinancialsIaIemenIsareconsisIenIwiIhIhoseollowedinIhepreviousyear.
b) UseoLsIimaIes:
The preparaIion o Ihe inancial sIaIemenIs in conormiIy wiIh lndian GAAP requires Ihe ManagemenI Io make
esIimaIesandassumpIionsconsideredinIhereporIedamounIsoasseIsandliabiliIies(includingconIingenIliabiliIies)
andIhereporIedincomeandexpensesduringIheyear.luIureresulIscoulddierdueIoIheseesIimaIesandIhe
dierencesbeIweenIheacIualresulIsandIheesIimaIesarerecognisedinIheperiodsinwhichIheresulIsare
known/maIerialise.
c) TangiblelixedAsseIs:
lixedAsseIsarecarriedaIcosIlessaccumulaIeddepreciaIionandimpairmenIlosses,iany.ThecosIoixedasseIs
includes inIeresI on borrowings aIIribuIable Io acquisiIion o qualiying ixed asseIs up Io Ihe daIe Ihe asseI is
ready or iIs inIended use and oIher incidenIal expenses incurred up Io IhaI daIe. Lxchange dierences arising
on resIaIemenI / seIIlemenI o longIerm oreign currency borrowings relaIing Io acquisiIion o depreciable ixed
asseIsareadjusIedIoIhecosIoIherespecIiveasseIsanddepreciaIedoverIheremaininguseullieosuchasseIs.
SubsequenI expendiIure relaIing Io ixed asseIs is capiIalised only i such expendiIure resulIs in an increase in Ihe
uIurebeneiIsromsuchasseIbeyondiIspreviouslyassessedsIandardoperormance.
CapiIalworkinprogressinrespecIoasseIswhicharenoIreadyorIheirinIendedusearecarriedaIcosI,comprising
odirecIcosIs,relaIedincidenIalexpensesandaIIribuIableinIeresI.
d) lnIangibleAsseIs:
lnIangible asseIs are carried aI cosI less accumulaIed amorIisaIion and impairmenI losses, i any. The cosI o
an inIangible asseI comprises iIs purchase price, including any imporI duIies and oIher Iaxes (oIher Ihan Ihose
subsequenIlyrecoverableromIheIaxingauIhoriIies),andanydirecIlyaIIribuIableexpendiIureonmakingIheasseI
readyoriIsinIendeduse.
e) loreignCurrencyTransacIions/TranslaIions:
i) TransacIionsdenominaIedinoreigncurrencyarerecordedaIexchangeraIesprevailingaIIhedaIeoIransacIion
oraIraIesIhaIcloselyapproximaIeIheraIeaIIhedaIeoIheIransacIion.
ii) loreigncurrencymoneIaryiIems(oIherIhanderivaIiveconIracIs)oIheCompany,ouIsIandingaIIhebalance
sheeIdaIeareresIaIedaIIheyearendraIes.NonmoneIaryiIemsoIheCompanyarecarriedaIhisIoricalcosI.
iii) Lxchange dierences arising on seIIlemenI / resIaIemenI o shorIIerm oreign currency moneIary asseIs and
liabiliIiesoIheCompanyandiIsinIegraloreignoperaIionsarerecognisedasincomeorexpenseinIheSIaIemenI
oProiIandLoss.
TheexchangedierencesarisingonresIaIemenI/seIIlemenIolongIermoreigncurrencymoneIaryiIemsare
capiIalisedasparIoIhedepreciableixedasseIsIowhichIhemoneIaryiIemrelaIesanddepreciaIedoverIhe
remaininguseullieosuchasseIsoramorIisedonseIIlemenIoverIhemaIuriIyperiodosuchiIemsisuchiIems
donoIrelaIeIoacquisiIionodepreciableixedasseIs.TheunamorIisedbalanceiscarriedinIhe8alanceSheeIas
loreigncurrencymoneIaryiIemIranslaIiondierenceaccounIneIoIheIaxeecIIhereon,whereapplicable.
iv) Premium/discounIonorwardexchangeconIracIs,whicharenoIinIendedorIradingorspeculaIionpurposes,
areamorIisedoverIheperiodoIheconIracIsisuchconIracIsrelaIeIomoneIaryiIemsasaIIhe8alanceSheeI
daIe.
v) ln respecI o Ihe oreign oices / branches, which are inIegral oreign operaIions, all revenues and expenses
duringIheyeararereporIedaIaverageraIes.OuIsIandingbalancesinrespecIomoneIaryasseIsandliabiliIies
areresIaIedaIIheyearendexchangeraIes.OuIsIandingbalancesinrespecIononmoneIaryasseIsandliabiliIies
aresIaIedaIIheraIesprevailingonIhedaIeoIheIransacIion.NeIgain/lossonoreigncurrencyIranslaIionis
recognisedinIheSIaIemenIoProiIandLoss.
) HedgeAccounIing:
TheCompanyusesoreigncurrencyorwardconIracIsandcurrencyopIionsIohedgeiIsrisksassociaIedwiIhoreign
currencylucIuaIionsrelaIingIohighlyprobableorecasIIransacIions.TheCompanydesignaIessuchorward/opIion
conIracIs in a cash low hedging relaIionship by applying Ihe hedge accounIing principles seI ouI in AccounIing
SIandardJ0(ASJ0)linanciallnsIrumenIs:PecogniIionandMeasuremenI.Theseorward/opIionconIracIsare
sIaIed aI air value aI each reporIing daIe. Changes in Ihe air value o Ihese orward / opIion conIracIs IhaI are
designaIedandeecIiveashedgesouIurecashlowsarerecogniseddirecIlyinCashllowHedgePeserveAccounI
under Peserves and Surplus, neI o applicable deerred income Iaxes and Ihe ineecIive porIion is recognised
immediaIelyinIheSIaIemenIoProiIandLoss.AmounIsaccumulaIedinIheCashllowHedgePeserveAccounI
arereclassiiedIoIheSIaIemenIoProiIandLossinIhesameperiodduringwhichIheorecasIedIransacIionaecIs
proiI and loss. Hedge accounIing is disconIinued when Ihe hedging insIrumenI expires or is sold, IerminaIed, or
exercised,ornolongerqualiiesorhedgeaccounIing.lororecasIedIransacIions,anycumulaIivegainorlossonIhe
hedginginsIrumenIrecognisedinCashllowHedgePeserveAccounIisreIainedunIilIheorecasIedIransacIion
occurs.lIheorecasIedIransacIionisnolongerexpecIedIooccur,IheneIcumulaIivegainorlossrecognisedin
CashllowHedgePeserveAccounIisimmediaIelyIranserredIoIheSIaIemenIoProiIandLoss.
g) DerivaIiveConIracIs:
The Company enIers inIo derivaIive conIracIs in Ihe naIure o currency opIions and orward conIracIs wiIh an
inIenIion Io hedge iIs exisIing asseIs and liabiliIies and highly probable orecasI IransacIions in oreign currency.
DerivaIiveconIracIswhicharecloselylinkedIoIheexisIingasseIsandliabiliIiesareaccounIedasperIhepolicysIaIed
orloreignCurrencyTransacIions/TranslaIions.
DerivaIiveconIracIsdesignaIedasahedginginsIrumenIorhighlyprobableorecasIIransacIionsareaccounIedas
perIhepolicysIaIedorHedgeAccounIing.
All oIher derivaIive conIracIs are markedIomarkeI on a porIolio basis and losses, i any, are recognised in Ihe
SIaIemenIoProiIandLoss.GainsarisingonIhesamearenoIrecognised,unIilrealised,ongroundsoprudence.
h) lnvesImenIs:
LongIerm invesImenIs are carried individually aI cosI, less provision or diminuIion, oIher Ihan Iemporary, in Ihe
value o such invesImenIs. CosI o invesImenIs includes expenses direcIly incurred on acquisiIion o invesImenIs.
CurrenIinvesImenIsarecarriedindividuallyaIlowerocosIandairvalue.
i) lnvenIories:
lnvenIoriesoallprocuredmaIerialsandSIockinTradearevaluedaIIhelowerocosI(onmovingweighIedaverage
basis) and Ihe neI realisable value aIer providing or obsolescence and oIher losses, where considered necessary.
CosIincludesallchargesinbringingIhegoodsIoIheirpresenIlocaIionandcondiIion,includingocIroiandoIher
levies,IransiIinsuranceandreceivingcharges.WorkinprocessandinishedgoodsincludeappropriaIeproporIiono
overheadsand,whereapplicable,exciseduIy.
j) PevenuerecogniIion:
PevenueromsaleogoodsisrecognisedneIoreIurns,producIexpiryclaimsandIradediscounIs,onIransero
signiicanIrisksandrewardsinrespecIoownershipIoIhebuyer.SalesincludeexciseduIybuIexcludesalesIaxand
valueaddedIax.SalesarealsoneIIedoorprobablenonsaleablereIurnogoodsromIhecusIomers,esIimaIed
onIhebasisohisIoricaldaIaosuchreIurns.
lncome rom Pesearch Services including sale o Iechnology / knowhow (righIs, licenses, dossiers and oIher
inIangibles)isrecognisedinaccordancewiIhIheIermsoIheconIracIwiIhcusIomerswhenIherelaIedperormance
obligaIioniscompleIed,orwhenrisksandrewardsoownershipareIranserred,asapplicable.
Pevenue(includinginrespecIoinsuranceoroIherclaimseIc.)isrecognisedwheniIisreasonableIoexpecIIhaIIhe
ulIimaIecollecIionwillbemade.
lnIeresI income is accounIed on accrual basis. Dividend rom invesImenI is recognised as revenue when righI Io
receiveisesIablished.
152 | Lupin Limited
k) DepreciaIionandAmorIisaIion:
DepreciaIiononixedasseIsisprovidedonsIraighIlinebasisinIhemannerandaIIheraIesprescribedinSchedule
XlVIoIheCompaniesAcI,!956,excepIinrespecIoIheollowingcaIegoryoasseIs,inwhosecaselieoasseIsis
assessedasunder:
CapIivePowerPlanIaITarapur !5Years
CerIainAsseIsprovidedIoemployees JYears
LeaseholdLand OverThePeriodoLease
lnIangibleAsseIs(CompuIerSoIware) JIo6Years
lnIangibleAsseIs(GoodwillAcquired) 5Years
lnIangibleAsseIs(TrademarkAndLicences) 5Years
TheesIimaIeduseullivesoinIangibleasseIsandIheamorIisaIionperiodarereviewedaIIheendoeachinancial
year and Ihe amorIisaIion meIhod is revised Io relecI Ihe changed paIIern. AsseIs cosIing H 5000/ or less are
depreciaIedaI!00%raIeonproraIabasisinIheyearopurchase.
l) Lmployee8eneiIs:
LmployeebeneiIsincludeprovidenIund,graIuiIyund,compensaIedabsencesandposIemploymenIandoIher
longIermbeneiIs.
a) PosILmploymenI8eneiIsandOIherLongTerm8eneiIs:
i) DeinedConIribuIionPlan:
TheCompanysconIribuIionIowardsprovidenIundandsuperannuaIionundorcerIaineligibleemployees
are considered Io be deined conIribuIion plans as Ihe Company does noI carry any urIher obligaIions,
aparIromIheconIribuIionsmadeonamonIhlybasis.SuchconIribuIionsarechargedasanexpenseIoIhe
SIaIemenIoProiIandLoss.
ii) Deined8eneiIandOIherLongTerm8eneiIPlans:
CompanysliabiliIiesIowardsdeinedbeneiIplansandoIherlongIermbeneiIsviz.graIuiIyandcompensaIed
absencesnoIexpecIedIooccurwiIhinIwelvemonIhs,aIerIheendoIheperiodinwhichemployeerenders
service, are deIermined using Ihe ProjecIed UniI CrediI MeIhod. AcIuarial valuaIions under Ihe ProjecIed
UniICrediIMeIhodarecarriedouIaIIhe8alanceSheeIdaIe.AcIuarialgainsandlossesarerecognisedin
Ihe SIaIemenI o ProiI and Loss in Ihe period o occurrence o such gains and losses. PasI service cosI is
recognisedimmediaIelyIoIheexIenIbeneiIsarevesIed,oIherwiseiIisamorIisedonsIraighIlinebasisover
IheremainingaverageperiodunIilIhebeneiIsbecomevesIed.
ThereIiremenIbeneiIobligaIionrecognisedinIhebalancesheeIrepresenIsIhepresenIvalueoIhedeined
beneiI obligaIion as adjusIed or unrecognised pasI service cosI, and as reduced by Ihe air value o plan
asseIs.AnyasseIresulIingromIhiscalculaIionislimiIedIopasIservicecosI,plusIhepresenIvalueoavailable
reundsandreducIionsinuIureconIribuIionsIoIhescheme.
ProvidenIlundorcerIainemployeesisadminisIeredIhroughIheLupinLimiIedLmployeesProvidenIlund
TrusI.PeriodicconIribuIionsIoIhelundarechargedIoIheSIaIemenIoProiIandLoss.TheCompanyhas
anobligaIionIomakegoodIheshorIall,iany,beIweenIhereIurnromIheinvesImenIoIheIrusIand
inIeresIraIenoIiiedbyIheGovernmenI.
b) ShorITermLmployee8eneiIs:
ShorI Ierm employee beneiIs expecIed Io be paid in exchange or Ihe services rendered by employees are
recognised undiscounIed during Ihe period employee renders services. ShorI Ierm compensaIed absences are
providedorbasedonesIimaIesinaccordancewiIhCompanyrules.
m) Taxesonlncome:
lncome Iaxes are accounIed or in accordance wiIh AccounIing SIandard 22 (AS22) AccounIing or Taxes on
lncome. Tax expense comprises boIh CurrenI Tax and Deerred Tax. CurrenI Iax is Ihe amounI o Iax payable on
IaxableincomeorIheyearasdeIerminedinaccordancewiIhIheprovisionsoIhelncomeTaxAcI,!96!.
MinimumAlIernaIeTax(MAT)paidinaccordancewiIhIheIaxlaws,whichgivesuIureeconomicbeneiIsinIheorm
oadjusImenIIouIureincomeIaxliabiliIy,isconsideredasanasseIiIhereisconvincingevidenceIhaIIheCompany
willpaynormalincomeIax.Accordingly,MATisrecognisedasanasseIinIhe8alanceSheeIwheniIisprobableIhaI
uIureeconomicbeneiIassociaIedwiIhiIwilllowIoIheCompany.
DeerredIaxisrecognisedonIimingdierences,beingIhedierencesbeIweenIheIaxableincomeandIheaccounIing
incomeIhaIoriginaIeinoneperiodandarecapableoreversalinoneormoresubsequenIperiods.DeerredIaxis
measuredusingIheIaxraIesandIheIaxlawsenacIedorsubsIanIivelyenacIedasaIIhereporIingdaIe.DeerredIax
liabiliIiesarerecognisedorallIimingdierences.DeerredIaxasseIsinrespecIounabsorbeddepreciaIionandcarry
orwardolossesarerecognisedonlyiIhereisvirIualcerIainIyIhaIIherewillbesuicienIuIureIaxableincome
availableIorealisesuchasseIs.DeerredIaxasseIsarerecognisedorIimingdierencesooIheriIemsonlyIoIhe
exIenIIhaIreasonablecerIainIyexisIsIhaIsuicienIuIureIaxableincomewillbeavailableagainsIwhichIhesecan
berealised.DeerredIaxasseIsandliabiliIiesareoseIisuchiIemsrelaIeIoIaxesonincomeleviedbyIhesame
governingIaxlawsandIheCompanyhasalegallyenorceablerighIorsuchseIo.DeerredIaxasseIsarereviewed
aIeach8alanceSheeIdaIeorIheirrealisabiliIy.
n) OperaIingLeases:
AsseIsIakenonleaseunderwhichallrisksandrewardsoownershipareeecIivelyreIainedbyIhelessorareclassiied
asoperaIinglease.LeasepaymenIsunderoperaIingleasesarerecognisedinIheSIaIemenIoProiIandLossona
sIraighIlinebasisinaccordancewiIhIherespecIiveleaseagreemenIs.
o) Provisions,ConIingenILiabiliIiesandConIingenIAsseIs:
AprovisionisrecognisedwhenIheCompanyhasapresenIobligaIionasaresulIopasIevenIsandiIisprobableIhaI
anouIloworesourceswillberequiredIoseIIleIheobligaIioninrespecIowhichareliableesIimaIecanbemade.
Provisions(excludingreIiremenIbeneiIs)arenoIdiscounIedIoIheirpresenIvalueandaredeIerminedbasedonIhe
besIesIimaIerequiredIoseIIleIheobligaIionaIIhe8alanceSheeIdaIe.ThesearereviewedaIeach8alanceSheeI
daIeandadjusIedIorelecIIhecurrenIbesIesIimaIes.ConIingenIliabiliIiesaredisclosedinIheNoIes.ConIingenI
liabiliIiesaredisclosedor(!)possibleobligaIionswhichwillbeconirmedonlybyuIureevenIsnoIwhollywiIhinIhe
conIroloIheCompanyor(2)presenIobligaIionsarisingrompasIevenIswhereiIisnoIprobableIhaIanouIlow
oresourceswillberequiredIoseIIleIheobligaIionorareliableesIimaIeoIheamounIoIheobligaIioncannoIbe
made.ConIingenIasseIsarenoIrecognisedinIheinancialsIaIemenIs.
p) 8orrowingCosIs:
8orrowing cosIs include inIeresI, amorIisaIion o ancillary cosIs incurred and exchange dierences arising rom
oreigncurrencyborrowingsIoIheexIenIIheyareregardedasanadjusImenIIoIheinIeresIcosI.CosIsinconnecIion
wiIhIheborrowingoundsIoIheexIenInoIdirecIlyrelaIedIoIheacquisiIionoqualiyingasseIsarechargedIo
IheSIaIemenIoProiIandLossoverIheIenureoIheloan.8orrowingcosIs,allocaIedIoanduIilisedorqualiying
asseIs, perIaining Io Ihe period rom commencemenI o acIiviIies relaIing Io consIrucIion / developmenI o Ihe
qualiying asseI upIo Ihe daIe o capiIalisaIion o such asseI is added Io Ihe cosI o Ihe asseIs. CapiIalisaIion o
borrowingcosIsissuspendedandchargedIoIheSIaIemenIoProiIandLossduringexIendedperiodswhenacIive
developmenIacIiviIyonIhequaliyingasseIsisinIerrupIed.
q) SIockbasedCompensaIion:
i) LmployeesSIockOpIionPlans(LSOPs):
ThecompensaIioncosIosIockopIionsgranIedIoemployeesismeasuredbyIheinIrinsicvaluemeIhod,i.e.Ihe
dierencebeIweenIhemarkeIpriceoIheCompanyssharesonIhedaIeoIhegranIoopIionsandIheexercise
priceIobepaidbyIheopIionholders.ThecompensaIioncosI,iany,isamorIiseduniormlyoverIhevesIing
periodoIheopIions.
ii) SIockAppreciaIionPighIs(SAPs):
ThecompensaIioncosIoSAPsgranIedIoemployeesismeasuredbyIheinIrinsicvaluemeIhod,i.e.Iheexcesso
IhemarkeIpriceoIheCompanyssharesasaIIheperiodendandIheacquisiIionpriceasonIhedaIeogranI.
ThecompensaIioncosIisamorIiseduniormlyoverIhevesIingperiodoIheSAPs.
r) GovernmenIGranIs,subsidiesandexporIincenIives:
GovernmenIgranIsandsubsidiesareaccounIedwhenIhereisreasonableassuranceIhaIIheCompanywillcomply
wiIhIhecondiIionsaIIachedIoIhemandiIisreasonablycerIainIhaIIheulIimaIecollecIionwillbemade.CapiIal
granIsrelaIingIospeciicixedasseIsarereducedromIhegrossvalueoIherespecIiveixedasseIs.PevenuegranIs
arerecognisedinIheSIaIemenIoProiIandLoss.
LxporIbeneiIsavailableunderprevalenIschemesareaccruedinIheyearinwhichIhegoodsareexporIedandIhere
isnouncerIainIyinreceivingIhesame.
s) PesearchandDevelopmenI:
PevenueexpendiIureincurredonresearchanddevelopmenIischargedIoIherespecIiveheadsinIheSIaIemenIo
ProiIandLossinIheyeariIisincurred,unlessaproducIsIechnologicaleasibiliIyhasbeenesIablished,inwhich
casesuchexpendiIureiscapiIalised.TheamounIcapiIalisedcomprisesoexpendiIureIhaIcanbedirecIlyaIIribuIed
154 | Lupin Limited
orallocaIedonareasonableandconsisIenIbasisorcreaIing,producingandmakingIheasseIreadyoriIsinIended
use.lixedasseIsuIilisedorresearchanddevelopmenIarecapiIalisedanddepreciaIedinaccordancewiIhIhepolicies
sIaIedorTangiblelixedAsseIsandlnIangibleAsseIs.
I) lmpairmenIoAsseIs:
ThecarryingvaluesoasseIs/cashgeneraIinguniIsaIeach8alanceSheeIdaIe,arereviewedorimpairmenI.lany
indicaIionoimpairmenIexisIs,IherecoverableamounIosuchasseIsisesIimaIedandimpairmenIisrecognised,
iIhecarryingamounIoIheseasseIsexceedsIheirrecoverableamounI.TherecoverableamounIisIhegreaIero
IheneIsellingpriceandIheirvalueinuse.ValueinuseisarrivedaIbydiscounIingIheuIurecashlowsIoIheir
presenIvaluebasedonanappropriaIediscounIacIor.WhenIhereisindicaIionIhaIanimpairmenIlossrecognised
oranasseIinearlieraccounIingperiodsnolongerexisIsormayhavedecreased,suchreversaloimpairmenIlossis
recognisedinIheSIaIemenIoProiIandLoss,excepIincaseorevaluedasseIs.
u) Larningspershare:
8asicearningspershareiscompuIedbydividingIheproiI/(loss)aIerIax(includingIheposIIaxeecIoexIraordinary
iIems,iany)byIheweighIedaveragenumberoequiIysharesouIsIandingduringIheyear.DiluIedearningsper
shareiscompuIedbydividingIheproiI/(loss)aIerIax(includingIheposIIaxeecIoexIraordinaryiIems,iany)
byIheweighIedaveragenumberoequiIysharesouIsIandingduringIheyearadjusIedorIheeecIsoalldiluIive
poIenIialequiIyshares.
2. SHARE CAPITAL
a) Share Capital
As at 31 March 2013 AsaIJ!March20!2
Authorised
LquiIySharesoH2each 500,000,000 !,000.0 500,000,000 !,000.0
Issued, Subscribed and Paid up
LquiIySharesoH2eachullypaid 447,529,49J 895.! 446,64!,68! 89J.J
TOTAL 447,529,493 895.1 446,641,681 893.3
b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period
LquiIySharesouIsIandingaIIhebeginningoIheyear 446,64!,68! 89J.J 446,20!,!89 892.4
LquiIySharesissuedduringIheyearinIheormoLSOPs 887,8!2 !.8 440,492 0.9
LquiIySharesouIsIandingaIIheendoIheyear 447,529,493 895.1 446,641,681 893.3
c) Rights attached to Equity Shares
TheCompanyhasonlyoneclassoequiIyshareswiIhvoIingrighIshavingaparvalueoH2pershare.TheCompany
declares and pays dividends in lndian Pupees. The inal dividend proposed by Ihe 8oard o DirecIors is subjecI Io Ihe
approvaloIheshareholdersaIIheensuingAnnualGeneralMeeIing.
DuringIheyearendedJ!March20!J,IheamounIopersharedividendrecognisedasdisIribuIionsIoequiIyshareholders
isH 4(previousyearH J.2)
lnIheevenIoliquidaIionoIheCompany,IheshareholdersoequiIyshareswillbeenIiIledIoreceiveremainingasseIso
IheCompanyaIerdisIribuIionoallpreerenIialamounIs.ThedisIribuIionwillbeinproporIionIoIhenumberoequiIy
sharesheldbyIheshareholders.
d) Details of shares held by each shareholder holding more than 5% equity shares
NameoShareholder As at 31 March 2013 AsaIJ!March20!2
No. of Shares % of Holding No.oShares %oHolding
ZymaLaboraIoriesLimiIed 54,960,490 !2.28 54,960,490 !2.J!
PahaslnvesImenIsPvI.LimiIed 45,699,5!0 !0.2! 45,699,5!0 !0.2J
Visiomed(lndia)PvI.LimiIed 4J,5!4,660 9.72 4J,5!4,660 9.74
LupinMarkeIingPvI.LimiIed 40,40!,000 9.0J 40,40!,000 9.05
e) Shares reserved for issuance under Stock Option Plans of the Company
No. of Shares No.oShares
LupinLmployeesSIockOpIionPlan200J 96!,J60 !,2!0,40J
LupinLmployeesSIockOpIionPlan2005 784,995 !,J06,290
LupinLmployeesSIockOpIionPlan20!! J,546,!78 J,600,000
LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan2005 4J7,089 500,74!
LupinSubsidiaryCompaniesLmployeesSIockOpIionPlan20!! 900,000 900,000
f) Aggregate number of shares issued during last five years pursuant to Stock Option Plans of the Company
Aggregate No. of Shares AggregaIeNo.oShares
LquiIyShares:
lssuedundervariousSIockOpIionPlansoIheCompany 5,!85,96J 4,95J,986
g) NoshareshavebeenalloIedwiIhouIpaymenIbeingreceivedincashorbywayobonussharesduringIheperiodoive
yearsimmediaIelyprecedingIhe8alanceSheeIdaIe.
156 | Lupin Limited
3. RESERVES AND SURPLUS
As at
31.03.2013
AsaI
J!.0J.20!2
Capital Reserve
lnvesImenISubsidiesromCenIralGovernmenI
8alanceasperlasI8alanceSheeI !.0 !.0
lnvesImenISubsidiesromSIaIeGovernmenI
OnresIrucIuringocapiIaloIheCompanyunderIheSchemeoAmalgamaIion
26J.9 26J.9
Capital Redemption Reserve
8alanceasperlasI8alanceSheeI !26.5 !26.5
!26.5 !26.5
Securities Premium Account
8alanceasperlasI8alanceSheeI 5,248.7 5,!98.0
Add:AddiIionsduringIheyear* !29.5 50.7
5,J78.2 5,248.7
Employee Stock Options Outstanding (PeernoIeJ7)
- Employees Stock Options Outstanding
8alanceasperlasI8alanceSheeI J!.5 20.J
Less:LxercisedduringIheyear 2.9
8alanceasaIIheyearend(A) 4J.2 J!.5
- Deferred Employees Stock Options Cost
Less:AmorIisaIionduringIheyear !2.9 !2.0
8alanceasaIIheyearend(8) 8.7 7.0
(A8) J4.5 24.5
Employee Stock Appreciation Rights Outstanding (PeernoIeJ8)
8alanceasperlasI8alanceSheeI J.5
Add:AddiIionsduringIheyear J0.8 J.5
8alanceasaIIheyearend J4.J J.5
General Reserve
8alanceasperlasI8alanceSheeI !!,5!5.4 !0,0!5.4
Add:TranserredromSurplusinIheSIaIemenIoProiIandLoss !,500.0 !,500.0
!J,0!5.4 !!,5!5.4
Amalgamation Reserve
8alanceasperlasI8alanceSheeI J!7.9 J!7.9
J!7.9 J!7.9
Cash Flow Hedge Reserve (PeernoIe4!)
8alanceasperlasI8alanceSheeI (579.8) 52.!
Add:CrediIed/(DebiIed)duringIheyear(neI)|neIodeerred 44!.9 (6J!.9)
IaxoH!60.!million(previousyearH2J9.0million)
(!J7.9) (579.8)
Surplus in the Statement of Profit and Loss
8alanceasperlasI8alanceSheeI !9,5J0.2 !4,647.9
Add:ProiIaIerTaxorIheyear !2,604.J 8,04J.7
Less:TranserIoGeneralPeserve !,500.0 !,500.0
Less:ProposedDividendonLquiIyShares !,790.! !,429.2
Less:DividendonLquiIySharesissuedaIerIhepreviousyearend 0.9 0.J
Less:CorporaIeTaxonDividend J04.J 2J!.9
8alanceasaIIheyearend 28,5J9.2 !9,5J0.2
TOTAL 47,572.0 36,450.8
*PepresenIsamounIreceivedonalloImenIo887,8!2(previousyear440,492)LquiIySharesoH2each,pursuanIIoLupin
LmployeesSIockOpIionPlans.(PeernoIeJ7(a)).
4. LONG-TERM BORROWINGS
As at
31.03.2013
AsaI
J!.0J.20!2
Unsecured
loreignCurrencyTermLoansrom8anks !,0!7.5
DeerredSalesTaxLoanromGovernmenIoMaharashIra 54.6 5J.0
TermLoansromCouncilorScienIiicandlndusIrialPesearch(CSlP) !85.6 2!6.5
TermLoansromDeparImenIoScienceandTechnology(DST) 5!.8 62.2
TOTAL 292.0 1,349.2
Notes :
a) DeerredSalesTaxLoanisinIeresIreeandpayablein5equalannualinsIallmenIsaIerexpiryoiniIial!0yearsmoraIorium
periodromeachsuchyearodeerralperiodrom!99899Io2009!0.
b) TermLoansromCSlPcarryinIeresIoJ%p.a.andispayablein7annualinsIallmenIsoHJ0.9millioneachalongwiIhinIeresI.
c) TermLoansromDSTcarryinIeresIoJ%p.a.andispayablein6annualinsIallmenIsoH!0.4millioneachalongwiIhinIeresI.
d) TheCompanyhasnoIdeaulIedonrepaymenIoloansandinIeresIduringIheyear.
5. DEFERRED TAX LIABILITIES (NET)
As at
31.03.2013
AsaI
J!.0J.20!2
Tax effect of items constituting Deferred Tax Liabilities
OndierencesbeIweenbookandIaxdepreciaIion 2,82!.7 2,J78.J
2,82!.7 2,J78.J
Less : Tax effect of items constituting Deferred Tax Assets
ProvisionorDoubIulTradePeceivables/Advances J8.! 2J.4
VPSCompensaIion 5J.2 6J.4
ProvisionorLmployee8eneiIs 2J!.! 99.4
CashllowHedgePeserve 5J.9 2!4.0
OIhers !!6.2 7J.!
492.5 47J.J
TOTAL 2,329.2 1,905.0
6. OTHER LONG-TERM LIABILITIES
TradePayables !0!.J !!4.6
MarkIoMarkeIDerivaIiveLiabiliIies 2.8 2J8.2
lnIeresIAccruedbuInoIdueon8orrowings 9.9 2J.J
TOTAL 114.0 376.1
7. LONG-TERM PROVISIONS
GraIuiIy J60.J 90.0
CompensaIedAbsences J0J.J 2J!.5
ProvidenIlund !9.9 24.6
TOTAL 683.5 346.1
158 | Lupin Limited
8. SHORT-TERM BORROWINGS
As at
31.03.2013
AsaI
J!.0J.20!2
Secured
WorkingCapiIalLoansrom8anks 4,!!J.0 5,808.2
4,113.0 5,808.2
Unsecured
WorkingCapiIalLoansrom8anks !,!47.9 2,769.!
1,147.9 2,769.1
TOTAL 5,260.9 8,577.3
Notes:
a) SecuredWorkingCapiIalLoansrom8ankscompriseoCashCrediI,ShorITermLoans,PackingCrediI,PosIShipmenICrediI,8illsDiscounIed
andOverseaslmporICrediIandaresecuredbyhypoIhecaIionoinvenIoriesandIradereceivables,andalloIhermoveableasseIs,including
currenIasseIsaIgodowns,depoIs,incourseoIransiIoronhighseasandasecondchargeonimmovableproperIiesandmoveableasseIs
oIheCompanyboIhpresenIanduIure.
b) SecuredWorkingCapiIalLoansrom8anksincludeoreigncurrencyloansoHJ,5J2.Jmillion(previousyearH5,5J6.Jmillion)
c) Unsecured Working CapiIal Loans rom 8anks comprise o ShorITerm Loans, Packing CrediI, PosIshipmenI CrediI, 8ills DiscounIed and
OverseaslmporICrediI.
d) UnsecuredWorkingCapiIalLoansrom8anksincludeoreigncurrencyloansoH!,085.7million(previousyearH2,7!6.9million).
e) WorkingCapiIalLoansrom8anksinoreigncurrencycarriesinIeresIraIeinIherangeo!.0%Io2.J%p.a.andIhoseinlndianPupees
carriesinIeresIraIeinIherangeo!0.0%Io!2.J%p.a.
) TheCompanyhasnoIdeaulIedonrepaymenIoloansandinIeresIduringIheyear.
9. TRADE PAYABLES
As at
31.03.2013
AsaI
J!.0J.20!2
AccepIances 98!.0 99!.4
OIherIhanAccepIances
ToIalouIsIandingduesoMicroLnIerprisesandSmallLnIerprises
(PeernoIe4J)
262.! 2!9.4
ToIalouIsIandingduesoIradepayablesoIherIhanMicroLnIerprises 7,45!.! 5,77J.4
andSmallLnIerprises
TOTAL 8,694.2 6,984.2
10. OTHER CURRENT LIABILITIES
As at
31.03.2013
AsaI
J!.0J.20!2
CurrenIMaIuriIiesoLongTerm8orrowings(PeernoIe4)
loreignCurrencyTermLoansrom8anks !,085.7 !,0!7.5
DeerredSalesTaxLoanromGovernmenIoMaharashIra 6.9 4.9
TermLoansromCSlP J0.9 J0.9
TermLoansromDST !0.4 !0.4
lnIeresIAccruedbuInoIdueon8orrowings !J.8 !5.9
UnpaidDividend* !6.5 !5.J
UnpaidMaIuredDeposiIs* 0.! 0.7
UnpaidlnIeresIWarranIs* 0.! 0.J
MarkIoMarkeIDerivaIiveLiabiliIies J92.! 620.!
PayablesonPurchaseolixedAsseIs 2J0.5 445.0
OIherPayables 402.J J4!.8
(lncludesSIaIuIoryliabiliIies,DeposiIsreceived,AdvanceromcusIomers,eIc.)
TOTAL 2,189.3 2,502.8
*TherearenoamounIsdueandouIsIandingIobecrediIedIolnvesIorLducaIionandProIecIionlund.
loreign Currency Term Loans rom 8anks consisI o loan o USD 20 million (H !,085.7 million). The loan bears inIeresI _
Ll8OPplus!.05%andisrepayableaIerJyearsininsIallmenIsoUSD!0million(H542.9million)eachromIhedaIeoIheir
originaIiononJ!une20!Jand29!uly20!J.
11. SHORT-TERM PROVISIONS
As at
31.03.2013
AsaI
J!.0J.20!2
ProvisionsorLmployee8eneiIs(PeernoIe7)
GraIuiIy !25.5 45.0
CompensaIedAbsences !29.J 97.8
OIherProvisions
lorSalesPeIurns(PeernoIe44) 78.0 80.0
lorTaxaIion(neIoAdvanceTax) J!8.4
lorProposedDividendonLquiIyShares !,790.! !,429.2
lorCorporaIeTaxonDividend J04.2 2J!.9
TOTAL 2,427.1 2,202.3
160 | Lupin Limited
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13. NON-CURRENT INVESTMENTS
Number Face Value As at
31.03.2013
AsaI
J!.0J.20!2
H in million H in million H inmillion
Trade Investments - Unquoted
a) In Subsidiary Companies
LupinHoldings8.V.,NeIherlands !05,829 Luro 6,720.J 6,720.J
(!05,829) !000
LupinPharmaceuIicals,lnc.,USA J00,000 USD !J.8 !J.8
(J00,000) !
LupinAusIraliaPIyLId.,AusIralia 500,000 AUD !6.9 !6.9
(500,000) !
LupinHealIhcareLId.,lndia 2,6!6,677
H
8!.7 8!.7
(lncluding6sharesheldbynominees) (2,6!6,677) !0
LupinLuropeLId.,UK 25!,000 G8P 20.0 20.0
(25!,000) !
LupinMiddleLasIlZLLC,UAL 500 ALD 7.5
() !000
6,860.2 6,852.7
b) Others
8ioIechConsorIiumlndiaLId.,lndia 50,000
H
0.5 0.5
(50,000) !0
LnvirolnrasIrucIureCo.LId.,lndia !00,000
H
!.0 !.0
(!00,000) !0
8haruchLnvirolnrasIrucIureLId.,lndia 4,585
H
|J!.0J.20!JH45,850/(previousyearH45,850/) (4,585) !0
NarmadaCleanTechLId.,lndia !,!45,!90
H
!!.5 !!.5
(!,!45,!90) !0
TarapurLnvironmenIProIecIionSocieIy,lndia 72,J58
H
7.2 7.2
(72,J58) !00
(liguresinbrackeIsareorpreviousyear)
20.2 20.2
c) In Government Securities
NaIionalSavingCerIiicaIes
|J!.0J.20!JH6,000/(previousyearH!6,000/)
|DeposiIedwiIhGovernmenIAuIhoriIyJ!.0J.20!JH6,000/
(previousyearH!6,000/)
TOTAL 6,880.4 6,872.9
!) AllinvesImenIsinsharesareullypaidup.
2) AllinvesImenIsaresIaIedaIcosI.
J) AllsubsidiariesarewhollyownedbyIheCompany.
4) lnvesImenIinequiIyinsIrumenIoLupinHealIhcareLId.Hnil(previousyearH6!.7million)made
inexchangeoIranseroland.
5) AggregaIeamounIounquoIedinvesImenIs. 6,880.4 6,872.9
162 | Lupin Limited
14. LONG-TERM LOANS AND ADVANCES
As at
31.03.2013
AsaI
J!.0J.20!2
CapiIalAdvances 692.8 520.4
SecuriIyDeposiIs 2!J.J !86.4
AdvancepaymenIolncomeTax(neIoProvision) 2J9.2 J0.5
MATCrediILnIiIlemenI(PeernoIe48) !,99J.8 2,874.0
LoansIoLmployees8eneiITrusI(PeernoIeJ8) 476.9 220.!
LoansIoLmployees 4.J 4.2
TOTAL 3,620.3 3,835.6
15. INVENTORIES
PawMaIerials 4,260.7 4,!7!.6
PackingMaIerials 642.! 666.J
WorkinProcess 2,772.8 2,J08.J
linishedGoods J,229.0 2,296.8
SIockinTrade !,467.8 !,0J8.0
ConsumableSIoresandSpares 54J.8 4J0.2
GoodsinTransiI
PawMaIerials JJ!.0 J!2.4
PackingMaIerials !2.0 !.4
SIockinTrade 2.!
ConsumableSIoresandSpares 49.! 8.5
|PeernoIe!8(i),45(C)&(D) TOTAL 13,308.3 11,235.6
16. TRADE RECEIVABLES
Unsecured
TradereceivablesouIsIandingoraperiodexceeding
sixmonIhsromIhedaIeIheyweredueorpaymenI
ConsideredGood 4JJ.7 !00.!
ConsideredDoubIul !04.7 72.0
5J8.4 !72.!
OIherTradePeceivablesConsideredGood !8,J09.0 !4,807.9
!8,847.4 !4,980.0
Less:ProvisionorDoubIulTradePeceivables !04.7 72.0
TOTAL 18,742.7 14,908.0
Note :
TradereceivablesincludedebIsdueromsubsidiarycompaniesH!2,2J6.2million(previousyearH!0,J59.6million)
|PeernoIe46(C)
17. CASH AND BANK BALANCES
As at
31.03.2013
AsaI
J!.0J.20!2
CashandCashLquivalenIs
8ank8alances
lnCurrenIAccounI 82.8 !04.!
lnLLlCAccounI 0.J
lnDeposiIAccounI 0.2
Chequesonhand 95.! 6!.4
Cashonhand J.5 J.0
!8!.6 !68.8
OIher8ank8alances(PeernoIebelow)
Larmarked8alanceswiIh8anks
UnpaiddividendaccounIs !6.5 !5.J
UnpaidmaIureddeposiIs 0.! 0.2
UnpaidinIeresIwarranIs 0.! 0.J
MarginDeposiIswiIh8anks 2.6
DeposiIsagainsIborrowings,guaranIeesandoIhercommiImenIs 2.9 4.5
8ankDeposiIsmaIuringmoreIhanJmonIhsbuIlessIhan!2monIhs 0.J
!9.6 2J.2
TOTAL 201.2 192.0
OIher8ank8alancesLarmarked8alanceswiIh8anksincludedeposiIsH2.9million(previousyearH4.2million)andmargin
moniesamounIingIoHnil(previousyearH2.6million)whichhaveanoriginalmaIuriIyomoreIhan!2monIhs.
18. SHORT-TERM LOANS AND ADVANCES
As at
31.03.2013
AsaI
J!.0J.20!2
LoansandAdvancesIoPelaIedParIies|PeernoIe46(C) 6J.6 65.2
SecuriIyDeposiIs !04.! 9!.8
8alanceswiIhGovernmenIAuIhoriIies(VAT/CenvaI/ServiceIaxcrediIreceivable) !,7J0.7 !,5J4.2
AdvanceIoVendors
ConsideredGood 748.0 840.4
ConsideredDoubIul 7.J
755.J 840.4
Less:ProvisionorDoubIulAdvances 7.J
748.0 840.4
OIherLoansandAdvances !9J.7 !52.8
(includesLoansandAdvancesIoemployees,Prepaidexpenses,eIc.)
TOTAL 2,840.1 2,684.4
19. OTHER CURRENT ASSETS
MarkIoMarkeIDerivaIiveAsseIs !60.4 JJ.7
LxporI8eneiIsreceivables !,!JJ.4 970.6
OIherCurrenIAsseIs !,0J2.8 206.2
(includeslnIeresIreceivables,receivableonsaleoixedasseIs,eIc.)
TOTAL 2,326.6 1,210.5
164 | Lupin Limited
20. REVENUE FROM OPERATIONS (GROSS)
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
Sale
Goods|PeernoIe45(8) 69,654.7 52,!62.8
PesearchServices !,069.2 !,4!6.J
70,72J.9 5J,579.!
OIherOperaIingPevenue
LxporI8eneiIsandOIherlncenIives 78J.9 526.!
lnsuranceClaims 4J.0 4J.4
CompensaIionandSeIIlemenIlncome !86.0 77.2
Miscellaneouslncome !07.J 42.7
!,!20.2 689.4
TOTAL 71,844.1 54,268.5
21. OTHER INCOME
DividendonNonCurrenIlnvesImenIs 0.2 0.9
lnIeresIonlixedDeposiIswiIh8anks 57.7 2J.4
OIherlnIeresI(includinginIeresIonincomeIaxreunds) 2!.5 !0.6
NeIgainonloreignCurrencyTransacIions !5J.7
TOTAL 233.1 34.9
22. COST OF RAW AND PACKING MATERIALS CONSUMED
PawMaIerialsConsumed(PeernoIeJ2(a)(i)and45(L)) !6,880.J !J,95J.0
PackingMaIerialsConsumed 2,J9!.8 !,968.7
TOTAL 19,272.1 15,921.7
23. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROCESS AND STOCK-IN-TRADE
OpeningSIock:
linishedGoods 2,296.8 !,769.6
SIockinTrade !,040.! 756.!
WorkinProcess 2,J08.J !,794.2
5,645.2 4,J!9.9
Less:
ClosingSIock:
linishedGoods J,229.0 2,296.8
SIockinTrade !,467.8 !,040.!
WorkinProcess 2,772.8 2,J08.J
7,469.6 5,645.2
ChangeslnlnvenIories:
linishedGoods (9J2.2) (527.2)
SIockinTrade (427.7) (284.0)
WorkinProcess (464.5) (5!4.!)
TOTAL (1,824.4) (1,325.3)
24. EMPLOYEE BENEFITS EXPENSE
For the Current
Year ended
31.03.2013
lorIhePrevious
Yearended
J!.0J.20!2
SalariesandWages 6,055.9 4,880.9
ConIribuIionIoProvidenIandOIherlunds 604.4 527.8
LxpenseonLmployeesSIockOpIions/SIockAppreciaIionPighIs 4J.7 !5.5
(PeernoIeJ7andJ8)
SIaWelareLxpenses 426.8 J88.0
TOTAL 7,130.8 5,812.2
25. FINANCE COSTS
lnIeresIon8orrowings !79.8 !80.7
OIher8orrowingCosIs(includesbankcharges,eIc.) !5!.9 66.0
lnIeresIonlncomeTax !.! 40.!
TOTAL 332.8 286.8
26. OTHER EXPENSES
ProcessingCharges 74!.8 J57.!
SIoresandSparesConsumed|PeernoIeJ2(a)(ii) 2,2!2.2 !,860.0
PepairsandMainIenance:
8uildings !65.J !40.4
PlanIandMachinery 459.6 J80.7
OIhers 485.6 4J2.!
PenI !46.0 !04.2
PaIesandTaxes 5!7.! 2!8.5
lnsurance 275.5 !78.6
Powerandluel 2,997.6 2,57!.J
ConIracILabourCharges 559.9 45J.7
LxciseDuIy(neI)(PeernoIe47) !!6.6 84.0
SellingandPromoIionLxpenses 4,095.6 J,70J.0
Commission,8rokerageandDiscounI 854.2 7!!.0
|lncludingcashdiscounIoH6.8million(previousyearH6.4million)
lreighIandlorwarding 574.9 478.8
LeasePenIandHireCharges(PeernoIeJ5) J85.8 J2!.2
PosIageandTelephoneLxpenses !87.2 !64.8
TravellingandConveyance !,!J!.9 906.7
LegalandProessionalCharges 2,592.2 !,4!!.6
|NeIorecoveriesoHnil(previousyearH25J.0million)
DonaIions !68.5 !!6.2
ClinicalandAnalyIicalCharges 508.9 J8J.9
LossonSale/WriIeoolixedAsseIs(neI) !J9.8 !74.4
8adTradePeceivables/AdvanceswriIIeno J8.! 26.5
ProvisionorDoubIulTradePeceivables/Advances 40.0 2.0
DirecIorsSiIIinglees 0.9 !.0
NeIlossonloreignCurrencyTransacIions 62.0
MiscellaneousLxpenses 65!.9 584.7
TOTAL 20,047.1 15,828.4
166 | Lupin Limited
27. Commitments:
a) LsIimaIedamounIoconIracIsremainingIobeexecuIedoncapiIalaccounIandnoIprovidedor,neIoadvances,
H!225.Jmillion(previousyearH!5!8.2million).
b) OIhercommiImenIsNoncancellableoperaIingleases(PeernoIeJ5).
28. Contingent Liabilities:
As at
31.03.2013
AsaI
J!.0J.20!2
a) lncomeIaxdemands/maIIersonaccounIodeducIions/disallowancesinearlier
years,pendinginappeals|H49.7million(previousyearH!7.7million)consequenI
Io deparImenI preerring appeals againsI Ihe orders o Ihe AppellaIe AuIhoriIies
passedinavouroIheCompany.
AmounI paid Ihere againsI and included under noIe !4 LongTerm Loans and
AdvancesH2J.5million(previousyearH27.0million).
82.J 44.7
b) Lxcise duIy, Service Iax and Sales Iax demands or inpuI Iax crediI disallowances
and demand or addiIional LnIry Tax arising rom dispuIe on applicable raIe are
inappealsandpendingdecisions.AmounIpaidIhereagainsIandincludedunder
noIe !8 ShorITerm Loans and Advances H J!.7 million (previous year H 28.4
million).
424.4 4!6.8
c) ClaimsagainsIIheCompanynoIacknowledgedasdebIs|excludinginIeresI(amounI
unascerIained)inrespecIoaclaimorIranserchargesoland,ocIroiduIy,local
bodyIax,employeeclaims,power,IrademarksandsIampduIy.
AmounIpaidIhereagainsIwiIhouIadmiIIingliabiliIyandincludedundernoIe!8
ShorITermLoansandAdvancesH!2.6million(previousyearH78.6million).
4!9.9 4J2.9
d) CounIerguaranIeegivenIoGlDCinconnecIionwiIhrepaymenIoloansancIioned
by a inancial insIiIuIion Io a company, joinIly promoIed by an AssociaIion o
lndusIries(owhich,IheCompanyisamember)andGlDC.
7.5 7.5
e) LeIIerocomorIissuedbyIheCompanyIowardsIhecrediIaciliIiessancIionedby
IhebankersosubsidiarycompaniesaggregaIingH!JJ.0million(previousyearH
!!8.6million).
J9.9 8!.4
) CorporaIe guaranIee given in respecI o crediI aciliIy sancIioned by bankers o
subsidiarycompaniesaggregaIingH27J8.9million(previousyearHJ0J4.2million).
2645.8 2902.8
g) linancial guaranIee given Io Ihird parIy on behal o subsidiary or conIracIual
obligaIions.
!52.6
h) 8ankGuaranIeesgivenonbehaloIheCompanyIoIhirdparIy. !5.9
luIurecashouIlowsinrespecIoIheabove,iany,isdeIerminableonlyonreceipIojudgemenI/decisionspending
wiIhIherelevanIauIhoriIies.TheCompanydoesnoIexpecIIheouIcomeoIhemaIIerssIaIedaboveIohaveamaIerial
adverseimpacIonIheCompanysinancialcondiIion,resulIsooperaIionsorcashlows.
TheCompanydoesnoIenvisageanylikelyreimbursemenIsinrespecIoIheabove.
29. a) During Ihe year, Ihe Company, Ihrough iIs wholly owned subsidiary Lupin Holdings 8.V., NeIherlands (LH8V),
acquired/subscribedIoIheequiIysIakeoIheollowingsubsidiaries:
i) AddiIionalinvesImenIinHormosanPharmaGmbH,GermanyaIaIoIalcosIoH262.2million(previousyearH!77.!million).
ii) AddiIionalinvesImenIinLupinPhilippineslnc.,PhilippinesaIaIoIalcosIoHJJ.7million(previousyearH6.!million).
iii) AddiIionalinvesImenIinLupinMexicoSAdeCV,MexicoaIaIoIalcosIoH!0.7million(previousyearH8.6million).
iv) AddiIionallnvesImenIinGenericHealIhPIyLimiIed,AusIraliaaIaIoIalcosIoH465.!million(previousyearHnil).
b) DuringIhepreviousyear,KyowaPharmaceuIicallndusIryCo.LId.,!apan(whollyownedsubsidiaryoLH8V)acquired
99.99%equiIysIakeolromPharmaceuIicalCo.LId.,!apanaIaIoIalcosIoH2289.4million.
The above acquisiIions / subscripIions are based on Ihe neI asseI values, Ihe uIure projecIed revenues, operaIing
proiIs,cashlowseIc.oIheinvesIeecompanies.
30. PreoperaIive expenses pending capiIalisaIion included in CapiIal WorklnProgress (Peer noIe !2) represenI direcI
aIIribuIableexpendiIureorseIIingupoplanIspriorIoIhedaIeocommencemenIocommercialproducIion.Thesame
willbecapiIalisedoncompleIionoprojecIsandcommencemenIocommercialoperaIions.ThedeIailsopreoperaIive
expensesare:
ParIiculars 2012-2013 20!!20!2
Openingbalance 88.8 !22.4
lncurredduringIhecurrenIyear:
Salaries,allowancesandconIribuIionIounds 65.8 J8.8
Proessionalees !.4 !.J
Travellingexpenses !0.2 4.4
OIhers !!8.! 2J.0
ToIal !95.5 67.5
Less:CapiIalisedduringIheyear 6!.7 !0!.!
Closingbalance 222.6 88.8
31. Segment Reporting:
The Company has presenIed daIa relaIing Io iIs segmenIs based on iIs consolidaIed inancial sIaIemenIs, which are
presenIed in Ihe same Annual PeporI. Accordingly, in Ierms o paragraph 4 o Ihe AccounIing SIandard !7 (AS!7)
SegmenIPeporIing,nodisclosuresrelaIedIosegmenIsarepresenIedinIhissIandaloneinancialsIaIemenI.
32. AddiIionalinormaIionpursuanIIoIheprovisionsoParagraph5(viii)oParIlloScheduleVlIoIheCompaniesAcI,!956.
a) ValueolmporIedandlndigenousconsumpIion:
i) ConsumpIionoPawMaIerials:
2012-2013 20!!20!2
% H in million % H inmillion
lmporIed J8.4 6474.4 J8.9 5422.5
lndigenous 6!.6 !0405.9 6!.! 85J0.5
TOTAL 100.0 16880.3 100.0 13953.0
ii) ConsumpIionoSIoresandSpares:
2012-2013 20!!20!2
% H in million % H inmillion
lmporIed 2.0 44.0 6.0 !!!.0
lndigenous 98.0 2!68.2 94.0 !749.0
TOTAL 100.0 2212.2 100.0 1860.0
b) CllValueolmporIs:
2012-2013 20!!20!2
i) CapiIalGoods 728.4 788.2
ii) PawMaIerials 66!5.6 5905.J
iii) PackingMaIerials 284.7 J27.8
iv) PurchasesoSIockinTrade J88.J 280.2
v) ConsumableSIoresandSpares J74.0 J06.8
TOTAL 8391.0 7608.3
168 | Lupin Limited
c) LxpendiIureinloreigncurrencies(subjecIIodeducIionoIaxwhereapplicable)onaccounIo:
2012-2013 20!!20!2
i) lnIeresI 52.8 56.6
ii) Travelling 29.9 J0.4
iii) Commission 205.4 !90.4
iv) SellingandPromoIionexpenses 2245.7 !64J.4
v) ClinicalandAnalyIicalcharges !99.9 J.!
vi) LegalandProessionalCharges(neIorecoveries) !644.! !255.6
vii) PersonnelLxpenses 85.4 72.6
viii) OIhers 557.J 207.6
TOTAL 5020.5 3459.7
d) LarningsinloreignLxchange(subjecIIodeducIionoIaxwhereapplicable)onaccounIo:
i) lO8valueoLxporIs 4J!56.5 J0J29.2
ii) DeemedLxporIs J72.J
iii) SalePesearchServices !066.J !4!6.J
iv) PeimbursemenIoreighIandinsuranceonLxporIs 28!.2 2J7.4
v) CompensaIion&SeIIlemenIlncome !86.0 77.2
vi) OIhers 59.2 !!.6
TOTAL 44749.2 32444.0
33. Remittance in Foreign currency on account of dividend:
TheCompanyhaspaiddividendinrespecIosharesheldbyNonPesidenIShareholdersonrepaIriaIionbasis.ThisinIer
alia includes porIolio invesImenI and direcI invesImenI, where Ihe amounI is also crediIed Io Non PesidenI LxIernal
AccounI(NPLA/c).TheIoIalamounIremiIIableinIhisrespecIisgivenbelow:
YearIowhichIhedividendrelaIes 20!!20!2 20!020!!
NumberononresidenIshareholders !55! !6!!
NumberosharesheldbyIhem !277700!8 !06858!4!
AmounIodividend(Hinmillion) 408.9 J20.6
NoIe:TheCompanydoesnoIhaveanyinormaIionasIoIheexIenIIowhichremiIIances,iany,inoreigncurrencies
onaccounIodividendshavebeenmadebynonresidenIshareholders.
34. Auditors Remuneration:
2012-2013* 20!!20!2*
PaymenIIoAudiIors:
a) AsAudiIors 9.2 9.2
b) inrespecIoTaxaIionmaIIers** 4.6 6.9
c) oroIherservicesCerIiicaIion 2.0 J.2
d) PeimbursemenIoouIopockeIexpenses 0.4 0.2
TOTAL 16.2 19.5
* LxcludingserviceIax.
** lncludespaymenIorIaxaIionmaIIersIoanailiaIedirmcoveredbyaneIworkingarrangemenIwhichisregisIered
wiIhIhelnsIiIuIeoCharIeredAccounIanIsolndia.
35. TheCompanyprocuresequipmenIs,vehiclesandoicepremisesunderoperaIingleases.TheserenIalsrecognisedinIhe
SIaIemenIoProiIandLoss(PeernoIe26)orIheyearareH294.8million(previousyearH24J.7million).TheuIure
minimumleasepaymenIsandpaymenIproileononcancellableoperaIingleasesareasunder:
2012-2013 20!!20!2
NoIlaIerIhanoneyear !89.4 226.J
LaIerIhanoneyearbuInoIlaIerIhaniveyears J0!.J 2J5.4
LaIerIhaniveyears 25.!
TOTAL 515.8 461.7
36. Basic and Diluted Earnings per Share is calculated as under:
ParIiculars 2012-2013 20!!20!2
ProiIaIIribuIableIoLquiIyShareholders !2604.J 804J.7
WeighIedaveragenumberoLquiIyShares:
8asic 447!25025 4464609JJ
Add:LecIodiluIiveissueoemployeessIockopIions(LSOPs)
converIedduringIheyearandLSOPsouIsIandingasonJ!.0J.20!J
!968!20 !805072
DiluIed 44909J!45 448266005
LarningsperShare(inH)
8asic 28.!9 !8.02
DiluIed 28.07 !7.94
37. Employees Stock Option Plans:
a) TheCompanyimplemenIedLupinLmployeesSIockOpIionPlan200J(LSOP200J),LupinLmployeesSIockOpIion
Plan 2005 (LSOP 2005) and Lupin Subsidiary Companies Lmployees SIock OpIion Plan 2005 (SLSOP 2005),
LupinLmployeesSIockOpIionPlan20!!(LSOP20!!)andLupinSubsidiaryCompaniesLmployeesSIockOpIion
Plan20!!(SLSOP20!!)asapprovedinearlieryearsbyIheShareholdersoIheCompanyandIhePemuneraIion/
CompensaIionCommiIIeeoIhe8oardoDirecIors.DeIailsoIheopIionsgranIedduringIheyearunderIheplans
areasunder:
November06,20!2 50000 29!.9J 06.!!.20!2Io06.!!.20!J
50000
lebruary22,20!J 2J75 59J.90 22.02.20!JIo22.02.20!4
2J75 59J.90 22.02.20!JIo22.02.20!5
2J75 59J.90 22.02.20!JIo22.02.20!6
2J75 59J.90 22.02.20!JIo22.02.20!7
9500
AugusI!7,20!2 !7J56J 556.05 !7.08.20!2Io!7.08.20!J
!7J562 556.05 !7.08.20!2Io!7.08.20!4
!7J56J 556.05 !7.08.20!2Io!7.08.20!5
!7J562 556.05 !7.08.20!2Io!7.08.20!6
694250
AugusI24,20!2 !25 578.45 24.08.20!2Io24.08.20!J
!25 578.45 24.08.20!2Io24.08.20!4
!25 578.45 24.08.20!2Io24.08.20!5
!25 578.45 24.08.20!2Io24.08.20!6
500
OcIober!7,20!2 !250 555.55 !7.!0.20!2Io!7.!0.20!J
!250 555.55 !7.!0.20!2Io!7.!0.20!4
!250 555.55 !7.!0.20!2Io!7.!0.20!5
!250 555.55 !7.!0.20!2Io!7.!0.20!6
5000
170 | Lupin Limited
!uly26,20!2 4850 585.70 26.07.20!2Io26.07.20!J
4850 585.70 26.07.20!2Io26.07.20!4
4850 585.70 26.07.20!2Io26.07.20!5
4850 585.70 26.07.20!2Io26.07.20!6
!9400
lebruary22,20!J 29700 59J.90 22.02.20!JIo22.02.20!4
29700 59J.90 22.02.20!JIo22.02.20!5
29700 59J.90 22.02.20!JIo22.02.20!6
29700 59J.90 22.02.20!JIo22.02.20!7
!!8800
March!2,20!J !800 600.90 !2.0J.20!JIo!2.0J.20!4
!800 600.90 !2.0J.20!JIo!2.0J.20!5
!800 600.90 !2.0J.20!JIo!2.0J.20!6
!800 600.90 !2.0J.20!JIo!2.0J.20!7
7200
TheopIionsaregranIedaIanexerciseprice,whichisinaccordancewiIhIherelevanISL8lguidelinesinorce,aIIhe
IimeosuchgranIs.LachopIionenIiIlesIheholderIoexerciseIherighIIoapplyorandseekalloImenIooneequiIy
shareoH2each.TheopIionshavevesIingperiodsassIaIedaboveinaccordancewiIhIhevesIingscheduleasper
IhesaidplanswiIhanexerciseperiodoIenyearsromIherespecIivegranIdaIes.
TheparIicularsoIheopIionsgranIedandlapsedunderIheSchemesareasbelow:
31.03.2013
Nos.
YearLnded
J!.0J.20!2
Nos.
OpIionsouIsIandingasaIIhebeginningoIheyear !08578J !J0J850
Add:OpIionsgranIedduringIheyear
Less:OpIionslapsedduringIheyear 7J!25 !!5000
Less:OpIionsexercisedduringIheyear 24904J !0J067
OpIionsouIsIandingasaIIheyearend 76J6!5 !08578J
OpIionsouIsIandingasaIIhebeginningoIheyear !250090 !5J5600
Add:OpIionsgranIedduringIheyear 59500 82500
Less:OpIionslapsedduringIheyear J6J75 89J00
Less:OpIionsexercisedduringIheyear 52!295 2787!0
OpIionsouIsIandingasaIIheyearend 75!920 !250090
OpIionsouIsIandingasaIIhebeginningoIheyear 50042! 548!J6
Add:OpIionsgranIedduringIheyear !!000
Less:OpIionslapsedduringIheyear 6650
Less:OpIionsexercisedduringIheyear 6J652 587!5
OpIionsouIsIandingasaIIheyearend 4J0!!9 50042!
31.03.2013
Nos.
YearLnded
J!.0J.20!2
Nos.
OpIionsouIsIandingasaIIhebeginningoIheyear !759250
Add:OpIionsgranIedduringIheyear 699750 !845750
Less:OpIionslapsedduringIheyear !46!J! 86500
Less:OpIionsexercisedduringIheyear 5J822
OpIionsouIsIandingasaIIheyearend 2259047 !759250
OpIionsouIsIandingasaIIhebeginningoIheyear !6!J80
Add:OpIionsgranIedduringIheyear !45400 !6!J80
Less:OpIionslapsedduringIheyear
Less:OpIionsexercisedduringIheyear
OpIionsouIsIandingasaIIheyearend J06780 !6!J80
b) The Company has ollowed Ihe inIrinsic value based meIhod o accounIing or sIock opIions granIed aIer April
!, 2005 based on Guidance NoIe on AccounIing or Lmployee Sharebased PaymenIs, issued by Ihe lnsIiIuIe o
CharIered AccounIanIs o lndia (lCAl). Had Ihe compensaIion cosI or Ihe Companys sIock based compensaIion
plansbeendeIerminedinIhemannerconsisIenIwiIhIheairvalueapproachasdescribedinIhesaidGuidanceNoIe,
IheCompanysneIincomewouldbelowerbyH229.5million(previousyearH!98.2million)andearningspershare
asreporIedwouldbelowerasindicaIedbelow:
31.03.2013
YearLnded
J!.0J.20!2
NeIproiIasreporIed !2604.J 804J.7
Less:ToIalsIockbasedemployeecompensaIionexpense
deIerminedunderairvaluebasedmeIhod
242.4 2!0.2
Add:ToIalsIockbasedemployeecompensaIionexpense
deIerminedunderinIrinsicvaluebasedmeIhod
!2.9 !2.0
AdjusIedneIproiI !2J74.8 7845.5
AsreporIed(inH)* 28.!9 !8.02
AsreporIed(inH)* 28.07 !7.94
*PeernoIeJ6
The air value o each opIion granIed during Ihe year is esIimaIed on Ihe daIe o granI based on Ihe ollowing
assumpIions:
ESOP 2005 Plan ESOP 2011 Plan SESOP 2011 Plan
GranIDaIed Nov6,
20!2
leb22,
20!J
Aug!7,
20!2
Aug24,
20!2
OcI!7,
20!2
!ul26,
20!2
leb22,
20!J
Mar!2,
20!J
ParIiculars
PiskreeinIeresIraIe(%) 8.!8 7.87 8.27 8.25 8.!6 8.07 7.87 7.92
VolaIiliIy(%) JJ.68 JJ.J6 J4.45 J4.J8 J4.25 J4.55 JJ.J6 JJ.28
172 | Lupin Limited
38. Stock Appreciation Rights:
DuringIhepreviousyear,IheCompanyhasgranIedSIockAppreciaIionPighIs(SAPs)IocerIaineligibleemployeesin
accordancewiIhLupinLmployeesSIockAppreciaIionPighIsScheme(LLSAPs20!!)approvedbyIhe8oardoDirecIors
(8oard)aIIheir8oardMeeIingheldonSepIember!J,20!!.UnderIhescheme,eligibleemployeesareenIiIledIoreceive
appreciaIioninvalueosharesoncompleIionoIhevesIingperiod.
TheSchemeisadminisIeredIhroughIheLupinLmployees8eneiITrusI(IheTrusI)asseIIledbyIheCompany.TheTrusI
isadminisIeredbyanindependenITrusIee.AIIheendoIhevesIingperiodoJyears,IheequiIyshareswillbesoldin
IhemarkeIbyIheTrusIandIheappreciaIiononIhesame(iany)willbedisIribuIedIoIhesaidemployees,subjecIIo
vesIingcondiIions.
PursuanI Io Ihe circular no. ClP/ClD/DlL/J/20!J daIed !anuary !7, 20!J (Ihe Circular) issued by Ihe SecuriIies and
Lxchange 8oard o lndia (SL8l), Ihe Company has submiIIed Ihe required deIails wiIh Ihe sIock exchanges wiIhin a
prescribedperiod.
As approved by Ihe 8oard, Ihe Company has, prior Io Ihe Circular, advanced an inIeresI ree loan o H 256.8 million
(previous year H 220.! million) Io Ihe TrusI during Ihe year Io acquire appropriaIe number o LquiIy Shares o Ihe
CompanyromIhemarkeIonIhegranIdaIeoSAPsandIheloanouIsIandingasaIIhebalancesheeIdaIeaggregaIing
IoH476.9million(previousyearH220.!million)isincludedunderLongTermLoansandAdvances(PeernoIe!4).
TheparIicularsoIherighIsassignedandlapsedunderIheSchemeareasbelow:
Lupin Employees Stock Appreciation Rights 2011:
31.03.2013
YearLnded
J!.0J.20!2
PighIsouIsIandingaIIhebeginningoIheyear 455290
Add:PighIsassignedpriorIoIheCircularduringIheyear 44J049 46J409
Less:PighIslapsedduringIheyear J824! 8!!9
PighIsouIsIandingaIIheyearend 860098 455290
The relaIed compensaIion cosI or ouIsIanding SAPs amounIing Io H J0.8 million (previous year H J.5 million) has
beenrecognizedasLmployee8eneiIsLxpenseandIhecorrespondingcrediIisincludedunderPeservesandSurplus
as Lmployee SIock AppreciaIion PighIs OuIsIanding. Had Ihe compensaIion cosI or Ihe Companys sIock based
compensaIionplansbeendeIerminedinIhemannerconsisIenIwiIhIheairvalueapproachasdescribedinIheGuidance
NoIeonAccounIingorLmployeeSharebasedPaymenIsissuedbylCAl,IheCompanysneIincomewouldbelowerby
H7.9million(previousyearH5.7million)andearningspershareasreporIedwouldbelowerasindicaIedbelow:
31.03.2013
YearLnded
J!.0J.20!2
NeIproiIasreporIed !2604.J 804J.7
Less:ToIalsIockbasedemployeecompensaIionexpensedeIerminedunder
airvaluebasedmeIhod
J8.7 9.2
Add:ToIalsIockbasedemployeecompensaIionexpensedeIerminedunder
inIrinsicvaluebasedmeIhod
J0.8 J.5
AdjusIedneIproiI !2596.4 80J8.0
AsreporIed(inH)* 28.!9 !8.02
AdjusIed(inH) 28.!7 !8.00
AsreporIed(inH)* 28.07 !7.94
AdjusIed(inH) 28.05 !7.9J
*PeernoIeJ6
39. Post Employment Benefits:
(i) DeinedConIribuIionPlans:
The Company makes conIribuIions Iowards providenI und and superannuaIion und Io a deined conIribuIion
reIiremenI beneiI plan or qualiying employees. The superannuaIion und is adminisIered by Ihe Lie lnsurance
CorporaIionolndia(LlC).UnderIheplan,IheCompanyisrequiredIoconIribuIeaspeciiedpercenIageopayroll
cosIIoIhereIiremenIbeneiIplanIoundIhebeneiIs.
TheCompanyrecognisedH!4!.9million(previousyearH!20.!million)orsuperannuaIionconIribuIionandH82.9
million(previousyearH72.2million)orprovidenIundandpensionconIribuIionsinIheSIaIemenIoProiIandLoss.
(ii) Deined8eneiIPlan:
A) TheprovidenIundplanoIheCompany,excepIIwoplanIs,isoperaIedbyIheLupinLimiIedLmployeesProvidenI
lundTrusI(IheTrusI).LligibleemployeesreceivebeneiIsromIhesaidProvidenIlund.8oIhIheemployees
andIheCompanymakemonIhlyconIribuIionsIoIheProvidenIlundPlansequalIoaspeciiedpercenIageo
Ihecoveredemployeessalary.TheminimuminIeresIraIepayablebyIheTrusIIoIhebeneiciarieseveryyearis
beingnoIiiedbyIheGovernmenI.TheCompanyhasanobligaIionIomakegoodIheshorIall,iany,beIween
IhereIurnromIheinvesImenIsoIheTrusIandIhenoIiiedinIeresIraIe.
The AS8 Guidance on lmplemenIing AS!5, Lmployee 8eneiIs (revised 2005) issued by AccounIing SIandards
8oard (AS8) sIaIes IhaI beneiI plans involving employer esIablished providenI unds, which require inIeresI
shorIallsIoberecompensedareIobeconsideredasdeinedbeneiIplans.AsperIheGuidanceNoIeromIhe
AcIuarialSocieIyolndia,IheCompanyhasobIainedIheacIuarialvaluaIionoinIeresIraIeobligaIioninrespecI
oProvidenIlundandshorIallaggregaIingH!9.9millionhasbeenprovidedor.TheCompanyhasanobligaIion
IoserviceIheshorIallonaccounIoinIeresIgeneraIedbyIheundandonmaIuriIyoundinvesImenIsand
henceIhesamehasbeenclassiiedasDeined8eneiIPlan.
TheCompanyrecognisedH!86.6million(PreviousyearH!72.9million)orprovidenIundconIribuIionsinIhe
SIaIemenIoProiIandLoss.
8) TheCompanymakesannualconIribuIionsIoIheGroupGraIuiIycumLieAssuranceSchemesadminisIeredbyIhe
LlColndia,aundeddeinedbeneiIplanorqualiyingemployees.TheschemeprovidesorpaymenIasunder:
a) OnnormalreIiremenI/earlyreIiremenI/wiIhdrawal/resignaIion:
AsperIheprovisionsoIhePaymenIoGraIuiIyAcI,!972wiIhvesIingperiodo5yearsoservice.
b) OndeaIhinservice:
AsperIheprovisionsoIhePaymenIoGraIuiIyAcI,!972wiIhouIanyvesIingperiod.
lnaddiIionIoIheabovemenIionedscheme,IheCompanyalsopaysaddiIionalgraIuiIyasanexgraIiaandIhe
saidamounIisprovidedasnonundedliabiliIybasedonacIuarialvaluaIion.
The mosI recenI acIuarial valuaIion o plan asseIs and Ihe presenI value o Ihe deined beneiI obligaIion or
graIuiIy were carried ouI as aI March J!, 20!J. The presenI value o Ihe deined beneiI obligaIions and Ihe
relaIedcurrenIservicecosIandpasIservicecosI,weremeasuredusingIheProjecIedUniICrediIMeIhod.
8asedonIheacIuarialvaluaIionobIainedinIhisrespecI,IheollowingIableseIsouIIhesIaIusoIhegraIuiIy
planandIheamounIsrecognisedinIheCompanysinancialsIaIemenIsasaIIhebalancesheeIdaIe.
H inmillion
Sr.
No.
As on
31.03.2013
Ason
J!.0J.20!2
As on
31.03.2013
Ason
J!.0J.20!2
I) Reconciliation in present value of obligations (PVO)
defined benefit obligation:
PasIservicecosI
AcIuarialloss/(gain) JJ.9 !8.5 (6.7)
PVOaIIhebeginningoIheyear 462.7 J84.6 90.0
PVOaIIheendoIheyear 594.9 462.7 J60.J 90.0
LxpecIedreIurnonplanasseIs 40.J J5.2
AcIuarialgain/(loss) (0.!) (2.J)
TranserromgraIuiIyundonamalgamaIiono
ersIwhilesubsidiary
5.0
lairvalueoplanasseIsaIIhebeginningoIheyear 4!7.7 J65.4
AdjusImenIIoopeningbalance !.2
lairvalueoplanasseIsaIIheendoIheyear 469.4 4!7.7
174 | Lupin Limited
H inmillion
Sr.
No.
As on
31.03.2013
Ason
J!.0J.20!2
As on
31.03.2013
Ason
J!.0J.20!2
PVOaIendoIheyear 594.9 462.7 J60.J 90.0
lairValueoplanasseIsaIIheendoIheyear 469.4 4!7.7
lundedsIaIus (!25.5) (45.0) (J60.J) (90.0)
NeIliabiliIyrecognisedinIhebalancesheeI (!25.5) (45.0) (J60.J) (90.0)
PasIservicecosI
LxpecIedreIurnonplanasseIs (40.J) (J5.2)
AcIuariallosses/(gain) J4.0 20.8 (6.7)
ToIalexpenserecognisedinIheSIaIemenIoProiIandLoss !26.7 88.7 270.J 90.0
lnsurerManagedlunds(!00%)
(lundisManagedbyLlCasperlPDAguidelines,
caIegorywisecomposiIionoIheplanasseIsisnoI
available)
469.4 4!7.7
VI) Actual return on the plan assets: 40.2 J2.9
VII) Assumptions used in accounting for the gratuity
plan:
DiscounIraIe(%) 8.! 8.7 8.!
SalaryescalaIionraIe(%) 6.0 6.0 6.0
LxpecIedraIeoreIurnonplanasseIs(%) 9.5 9.5 NA NA
LsIimaIeoamounIoconIribuIioninimmediaIenexI
year
!25.5 45.0 NA NA
TheesIimaIesosalaryescalaIion,consideredinacIuarialvaluaIion,IakeaccounIoinlaIion,senioriIy,promoIion
andoIherrelevanIacIors,suchassupplyanddemandinIheemploymenImarkeI.
H inmillion
GraIuiIy(lunded) YearLnded
31.03.2013 J!.0J.20!2 J!.0J.20!! J!.0J.20!0 J!.0J.2009
OnplanliabiliIies 6.! 90.5
OnplanasseIs 0.! 2.J
PresenIvalueobeneiIobligaIion (594.9) (462.7) (J84.6) (244.J) (!86.5)
lairvalueoplanasseIs 469.4 4!7.7 J65.4 2!J.J !65.!
Lxcesso(obligaIionoverplanasseIs)/
planasseIsoverobligaIion (!25.5) (45.0) (!9.2) (J!.0) (2!.4)

8asedonIheacIuarialvaluaIionobIainedinIhisrespecI,IheollowingIableseIsouIIhesIaIusoIheprovidenIund
planandIheamounIsrecognisedinIheCompanysinancialsIaIemenIsasaIIhebalancesheeIdaIe:
Sr.
No.
ParIiculars ProvidenIlund(lunded)
As on 31.03.2013 AsonJ!.0J.20!2
obligation:
PasIservicecosI
AcIuarialloss/(gain) (6.8) (94.6)
PVOaIIhebeginningoIheyear 2!52.8 !867.!
PVOaIIheendoIheyear 27J9.! 2!52.8
LxpecIedreIurnonplanasseIs 208.J !54.0
AdjusImenIIoopeningbalance (7.6)
AcIuarialgain/(loss)
ConIribuIionsbyIheemployer 55!.! 442.5
lairvalueoplanasseIsaIIhebeginningoIheyear 2!28.2 !775.2
lairvalueoplanasseIsaIIheendoIheyear 27!9.2 2!28.2
PVOaIendoIheyear 27J9.! 2!52.8
lairValueoplanasseIsaIIheendoIheyear 27!9.2 2!28.2
lundedsIaIus (!9.9) (24.6)
NeIliabiliIyrecognisedinIhebalancesheeI (!9.9) (24.6)
PasIservicecosI
LxpecIedreIurnonplanasseIs (208.J) (!54.0)
AcIuariallosses/(gain) (6.8) (94.6)
ToIalexpenserecognisedinIheSIaIemenIoProiIandLoss 5J8.8 J75.2
lnvesImenIinPSUbonds 56% 6J%
lnvesImenIinGovernmenISecuriIies 29% 25%
8ankSpecialDeposiI 8% !0%
lnvesImenIinoIhersecuriIies 5% !%
8ankSavingsDeposiI 2% !%
VI) Actual return on the plan assets: 208.J !54.0
VII) Assumptions used in accounting for the Provident fund plan:
DiscounIraIe(%) 8.! 8.7
176 | Lupin Limited
40. Details on unhedged foreign currency exposure:
TheyearendoreigncurrencyexposuresIhaIhavenoIbeenhedgedbyaderivaIiveinsIrumenIoroIherwiseareasgiven
below:
a. AmounIreceivableinoreigncurrencyonaccounIoIheollowing:
ParIiculars loreign
Currency
As on 31.03.2013 AsonJ!.0J.20!2
H in million
Amount in
Foreign Currency
Hinmillion
AmounIin
loreignCurrency
LxporIogoods
AUD !JJ.5 2J6J665 !47.9 2794974
ACUD 2.0 J6850 !.7 JJ800
LUPO 688.4 990268J 5J!.5 782824J
G8P 262.7 J!99!95 !22.! !498!49
USD !47!4.5 27!059596 !2JJ6.J 2424825!4
PHP 2.! !7J2800
OIherreceivables
!PY !.4 2J75288 !.5 244780!
UZS HJ0!88 !!6!058 0.! 26865!J
USD !4.4 264596 9.9 !95425
PU8 !.! 646264 2.0 !!!9J22
KZT 0.6 !68929! 0.J 75J799
PM8 !.! !225JJ 2.2 272886
UAH H26009 J822 0.! !255!
LUPO 0.! 794
b. AmounIpayableinoreigncurrencyonaccounIoIheollowing:
ParIiculars loreign
Currency
As on 31.03.2013 AsonJ!.0J.20!2
H in million
Amount in
Foreign Currency
Hinmillion
AmounIin
loreignCurrency
lmporIogoods
andservices
USD 2JJ4.2 4299960! !878.5 J692JJ8J
G8P !J7.6 !6760J8 !!.6 !4!822
LUPO !JJ.J !9!746J 80.0 !!78680
AUD J.4 59669 6.2 !!6896
!PY 5.5 95!0000
CHl 0.4 66!8 6.7 !!904J
CAD 0.7 !4289
KZT 0.! J9!06!
SGD 0.6 !44J4
8PL !.! J9756
SLK 0.! !575!
Securedand
Unsecured
loanspayable
USD 570J.7 !0506986J !0288.2 20222546!
lnIeresIaccrued
andnoIdue
onSecuredand
Unsecuredloans
USD 0.2 2964 0.2 J9JJ
ParIiculars loreign
Currency
As on 31.03.2013 AsonJ!.0J.20!2
H in million
Amount in
Foreign Currency
Hinmillion
AmounIin
loreignCurrency
OIherpayables
USD !8!.2 JJJ7497 !4!.2 27747J4
PU8 0.7 420588 !.0 586988
G8P 0.J J55J
KZT 0.9 2544909 0.J 869288
ACUD 0.7 !2!!2 J.4 662!0
UAH 2.9 4222!J 2.! J!575J
LUPO 56.9 8!8855 20.9 J07972
AUD 2.0 J4562 2.6 48422
ALD 0.J !8594 0.J !8594
8PL 0.5 !6!66
ZAP !.! !6J6J4
41. Details of Derivative Contracts:
TheCompanyenIersinIoorwardandopIionconIracIsinorderIohedgeandmanageiIsoreigncurrencyexposures
IowardsuIureexporIearnings.SuchderivaIiveconIracIs(includingconIracIsoraperiodexIendingbeyondIheinancial
year20!J!4)areenIeredinIobyIheCompanyorhedgingpurposesonly,andareaccordinglyclassiiedascashlow
hedges.
ThecaIegorywisebreakupIhereoisasunder:
(AmounIinmillion)
ParIiculars Currency As at 31.03.2013 AsaIJ!.0J.20!2 CrossCurrency
lorwardconIracIs USD 244.0 2J2.0 lNP
OpIionconIracIs USD 7.5 J!.5 lNP
lorwardconIracIs LUP !0.0 USD
ThechangesinIheairvalueoIhederivaIiveconIracIsduringIheyearendedMarchJ!,20!J,aggregaIingH44!.9
million(previousyearH6J!.9milliondebiIed)designaIedandeecIiveashedgeshavebeencrediIedIoIheCashllow
HedgePeserveandH!!.8million(previousyearH4.7million)isdebiIedIoIheSIaIemenIoProiIandLoss,beingIhe
ineecIiveporIionIhereo.
42. TheaggregaIeamounIorevenueexpendiIureincurredduringIheyearonPesearchandDevelopmenIandshowninIhe
respecIiveheadsoaccounIisH6472.7million(previousyearH46J0.4million).
43. TheinormaIionregardingMicroLnIerprisesandSmallLnIerpriseshasbeendeIerminedIoIheexIenIsuchparIieshave
beenidenIiiedonIhebasisoinormaIionavailablewiIhIheCompany.ThishasbeenrelieduponbyIheaudiIors.
AmounIsdueIoMicroLnIerprisesandSmallLnIerprisesasonMarchJ!,20!JisH262.!million,inIeresIHnil(previous
yearH2!9.4million,inIeresIHnil),inIeresIpaidduringIheyearHnil(previousyearHnil).
44. AsperbesIesIimaIeoIhemanagemenI,provisionhasbeenmadeIowardsprobablenonsaleablereIurnogoodsrom
cusIomers,asperAccounIingSIandard29(AS29)noIiiedunderCompanies(AccounIingSIandards)Pules,2006.
ParIiculars 2012-2013 20!!20!2
CarryingamounIaIIhebeginningoIheyear 80.0 20.0
Add:AddiIionalProvisionsmadeduringIheyear 440.0 506.2
Less:AmounIsused/uIilisedduringIheyear 442.0 446.2
CarryingamounIaIIheendoIheyear 78.0 80.0
178 | Lupin Limited
45. Details of purchases, sale of goods and inventories:
A) DeIailsopurchasesosIockinIrade:
Yearended
31.03.2013 J!.0J.20!2
ClassiicaIion H in million H inmillion
A)lormulaIions:
TableIs 290J.0 2J76.8
Liquids !J86.J !05J.2
Capsules 840.7 642.8
lnjecIions:
Liquids !80.J !42.5
Vials 2!!J.5 !5J!.J
CreamsandPowder !80.8 !J5.7
lnhalers 8.7 J.6
8)8ulkDrugs,lnIermediaIesandChemicals !J.7 6.9
C)OIhers !JJ.J 99.9
TOTAL 7760.3 5992.7
PurchasesoormulaIionsincludessamples.
8) DeIailsosaleogoods:
Yearended
31.03.2013 J!.0J.20!2
A)lormulaIions:
TableIs J799J.5 265J6.4
Liquids 6420.7 489!.7
Capsules 99J2.9 7769.!
lnjecIions:
Liquids J90.9 JJ8.0
Vials J890.6 J070.2
CreamsandPowder 466.J 400.6
lnhalers 476.! 4!8.!
8)8ulkDrugs,lnIermediaIesandChemicals 990J.5 8554.6
C)OIhers !80.2 !84.!
TOTAL 69654.7 52162.8
AboveexcludesiIemsdisIribuIedunderreeschemesandsamplesandIhevalueisneIoIradediscounIs.
C) DeIailsoinvenIories(inishedgoodsincludingsIockinIrade):
As at
31.03.2013 J!.0J.20!2
A)lormulaIion:
TableIs !77!.0 !2!9.0
Liquids J74.4 268.8
Capsules 492.J J0!.!
lnjecIions:
Liquids 44.4 J2.5
Vials 47!.J 406.J
CreamsandPowder 85.5 54.4
lnhalers J0.4 4J.J
8)8ulkDrugs,lnIermediaIesandChemicals !J95.2 984.7
C)OIhers J2.J 26.8
TOTAL 4696.8 3336.9
D) DeIailsoworkinprocess:
As at
31.03.2013 J!.0J.20!2
A)lormulaIion 696.9 60J.8
8)8ulkDrugs,lnIermediaIesandChemicals 2075.9 !704.5
TOTAL 2772.8 2308.3
L) ConsumpIionorawmaIerials:
Year ended
31.03.2013 J!.0J.20!2
lIem H in million H inmillion
A)DL2(PLCLMlC) 9J4.6 8!4.2
8)PLNG !769.4 !840.!
C)OIhers* !4!76.J !!298.7
TOTAL 16880.3 13953.0
*conIainingvariousrawmaIerials,noneowhichrepresenIsmoreIhan5%oIoIalconsumpIionorawmaIerials.
46. Related Party Disclosures, as required by Accounting Standard 18 (AS-18) are given below :
A. Relationships -
Category I : Subsidiaries:
LupinPharmaceuIicals,lnc.,USA
KyowaPharmaceuIicallndusIryCo.,LimiIed,!apan
LupinAusIraliaPIyLimiIed,AusIralia
LupinHoldings8.V.,NeIherlands
PharmaDynamics(ProprieIary)LimiIed,SouIhArica
HormosanPharmaGmbH,Germany
MulIicarePharmaceuIicalsPhilippineslnc.,Philippines
LupinAIlanIisHoldingsSA,SwiIzerland
Lupin(Lurope)LimiIed,UK
AmelTouhoku,!apan(upIo28Ihlebruary20!J)
LupinPharmaCanadaLimiIed,Canada
LupinMexicoSAdeCV,Mexico
GenericHealIhPIyLimiIed,AusIralia
8ellweIherPharmaPIyLimiIed,AusIralia
GenericHealIhlnc.,USA(rom27IhSepIember20!0)(upIo4IhOcIober20!!)
MaxPharmaPIyLimiIed,AusIralia
LupinPhilippineslnc.,Philippines
LupinHealIhcareLimiIed,lndia
GenericHealIhSDN.8HD.,Malaysia(rom!8IhMay20!!)
lromPharmaceuIicalCo.,LimiIed,!apan(romJ0IhNovember20!!)
LupinMiddleLasIlZLLC,UAL(rom!JIh!une20!2)
Category II: Key Management Personnel:
Dr.D.8.GupIa Chairman
Dr.K.K.Sharma ManagingDirecIor
Mrs.M.D.GupIa LxecuIiveDirecIor
Mr.NileshGupIa LxecuIiveDirecIor
Category III: Others (Relatives of Key Management Personnel and Entities in which the Key Management
Personnel have control or significant influence)
Mrs.ViniIaGupIa(DaughIeroChairman)
Dr.AnujaGupIa(DaughIeroChairman)
Mrs.KaviIaGupIaSabharwal(DaughIeroChairman)
Dr.PichaGupIa(DaughIeroChairman)
Mrs.PushpaKhandelwal(SisIeroChairman)
8haraISIeellabricaIionandLngineeringWorks
D.8.GupIa(HUl)
LnzalChemicals(lndia)LimiIed(upIoJ!sIMarch20!2)
LupinHumanWelareandPesearchloundaIion
LupinlnIernaIionalPvI.LimiIed
LupinlnvesImenIsPvI.LimiIed
LupinMarkeIingPvI.LimiIed
MaIashreeGomaIiDevi!anaSevaNidhi
NovamedlnvesImenIsPvI.LimiIed(ormerlyNovamedPharmaceuIicalsPvI.LimiIed)
PolynovalndusIriesLimiIed
PahaslnvesImenIsPvI.LimiIed
SynchemlnvesImenIsPvI.LimiIed(ormerlySynchemChemicals(l)PvI.LimiIed)
Visiomed(lndia)PvI.LimiIed
ZymaLaboraIoriesLimiIed
180 | Lupin Limited
B. Transactions with the related parties:
Sr.
No.
TransacIions Subsidiaries Key
ManagemenI
Personnel
OIhers ToIal
!. SaleoGoods J2028.8 J2028.8
(208J6.4) () () (208J6.4)
2. SalePesearchServices !5!.4 !5!.4
(2J.9) () () (2J.9)
J. lncomeromPoyalIy 50.2 50.2
() () () ()
4. MiscellaneousincomeonaccounIo
saleobyproducIs

() () (!.7) (!.7)
5. GuaranIeeCommissionlncome 6.4 6.4
(2.!) () () (2.!)
6. PenILxpenses !0!.0 !0!.0
() () (95.9) (95.9)
7. AgencyCommissionLxpenses
(J.2) () () (J.2)
8. LxpensesPecovered/PenIPeceived !8.7 2.9 2!.6
(!!.8) () (2.8) (!4.6)
9. PemuneraIionPaid J98.4 J98.4
() (277.7) () (277.7)
!0. PurchasesoGoods/MaIerials H!!!4/ H!!!4/
(0.8) () (29.7) (J0.5)
!!. lnvesImenIsduringIheyear 7.5 7.5
(6!.7) () () (6!.7)
!2. DonaIionsPaid 9!.4 9!.4
() () (57.2) (57.2)
!J. DividendPaid 20.! 65!.4 67!.5
() (!8.9) (6!0.7) (629.6)
!4. ServicesPeceived !865.7 !865.7
(!402.!) () () (!402.!)
!5. LxpensesPeimbursed 4J2.J 4J2.J
(!69.9) () () (!69.9)
!6. DeposiIs paid or Leave and Licence arrangemenI
orpremises

() () (0.2) (0.2)
!7. GuaranIees (wiIhdrawn) / given againsI sIandby
LeIIer o CrediI issued by Companys bankers Io
Ihebankersowhollyownedsubsidiarycompanies

(22!.6) () () (22!.6)
!8. CorporaIe guaranIee (wiIhdrawn) / issued by
Ihe Company Io Ihe bankers o wholly owned
subsidiarycompanies
!4!.6 !4!.6
(2947.J) () () (2947.J)
OuIoIheaboveiIemsIransacIionsinexcesso!0%oIheIoIalrelaIedparIyIransacIionsareasunder:
Sr.
No.
relaIion
For the year
ended
31.03.2013
lorIheyear
ended
J!.0J.20!2
!. SaleoGoods
LupinPharmaceuIicals,lnc. SubsidiaryCompany J!29!.4 20JJ6.9
2. SalePesearchServices
LupinAIlanIisHoldingsSA SubsidiaryCompany !48.! 2J.9
J. lncomeromPoyalIy
GenericHealIhPIyLimiIed SubsidiaryCompany 50.2
4. MiscellaneousincomeonaccounIo
saleobyproducIs
LnzalChemicals(lndia)LimiIed OIhers !.7
5. GuaranIeeCommissionlncome
KyowaPharmaceuIicallndusIryCo.,LimiIed SubsidiaryCompany 6.4 2.!
6. PenILxpenses
LupinlnvesImenIsPvI.LimiIed OIhers 82.0 78.!
8haraISIeellabricaIionandLngineeringWorks OIhers !0.J 9.7
7. AgencyCommissionLxpenses
GenericHealIhPIyLimiIed SubsidiaryCompany J.2
8. LxpensesPecovered/PenIPeceived
LupinPharmaceuIicals,lnc. SubsidiaryCompany 2.9 5.6
PharmaDynamics(ProprieIary)LimiIed SubsidiaryCompany 4.5
PolynovalndusIriesLimiIed OIhers 2.9 2.8
GenericHealIhPIyLimiIed SubsidiaryCompany !2.7
9. PemuneraIionsPaid
Dr.D.8.GupIa KeyManagemenIPersonnel 2!9.7 !50.0
Dr.K.K.Sharma KeyManagemenIPersonnel !2J.4 8J.5
Mr.NileshGupIa KeyManagemenIPersonnel 50.! J8.5
!0. PurchasesoGoods/MaIerial
LnzalChemicals(lndia)LimiIed OIhers 29.7
KyowaPharmaceuIicallndusIryCo.,LimiIed SubsidiaryCompany H!!!4/
!!. lnvesImenIsduringIheyear
LupinHealIhcareLimiIed SubsidiaryCompany 6!.7
LupinMiddleLasIlZLLC SubsidiaryCompany 7.5
!2. DonaIionsPaid
LupinHumanWelareandPesearchloundaIion OIhers 8J.6 52.!
!J. DividendPaid
LupinMarkeIingPvI.LimiIed OIhers !29.J !2!.2
PahaslnvesImenIsPvI.LimiIed OIhers !46.2 !J7.!
Visiomed(l)PvI.LimiIed OIhers !J9.2 !J0.5
ZymaLaboraIoriesLimiIed OIhers !75.9 !64.9
182 | Lupin Limited
Sr.
No.
relaIion
For the year
ended
31.03.2013
lorIheyear
ended
J!.0J.20!2
!4. ServicesPeceived
LupinPharmaceuIicals,lnc. SubsidiaryCompany !5J8.5 !!42.5
Lupin(Lurope)LimiIed SubsidiaryCompany 29!.0 242.8
!5. LxpensesPeimbursed
LupinPharmaceuIicals,lnc. SubsidiaryCompany J9!.4 !25.7
LupinAusIraliaPIyLimiIed SubsidiaryCompany 27.2 J7.4
Lupin(Lurope)LimiIed SubsidiaryCompany 2.9 4.5
PharmaDynamics(ProprieIary)LimiIed SubsidiaryCompany !.0 !.!
!6. DeposiIspaidorLeaveand
LicencearrangemenIorpremises
ZymaLaboraIoriesLimiIed OIhers H88500/
SynchemlnvesImenIsPvI.LimiIed OIhers H88500/
!7. CorporaIe guaranIee (wiIhdrawn) / issued by
Ihe Company Io Ihe bankers o wholly owned
Subsidiarycompany
HormosanPharmaGmbH SubsidiaryCompany 27!.6
Lupin(Lurope)LimiIed SubsidiaryCompany
GenericHealIhPIyLimiIed SubsidiaryCompany 2J2.9
KyowaPharmaceuIicallndusIryCo.,LimiIed SubsidiaryCompany !4!.6 2442.8
C. Balances due from / to the related parties:
Sr.
No.
TransacIions Subsidiaries Key
ManagemenI
Personnel
OIhers ToIal
!. lnvesImenIs 6860.2 6860.2
(6852.7) () () (6852.7)
2. DeposiIspaidunderLeaveandLicence 62.2 62.2
arrangemenIoroicepremises () () (62.2) (62.2)
J. TradePeceivables !22J6.2 !22J6.2
(!0J59.6) () () (!0J59.6)
4. TradePayables 88J.8 88J.8
(6!5.5) () (0.6) (6!6.!)
5. CommissionPayable !78.0 !78.0
() (!05.5) () (!05.5)
6. LxpensesPayable 52.6 52.6
(J2.2) () () (J2.2)
7. LxpensesPeceivable
(!.4) () (H27789/) (!.4)
8. lncomePeceivable !.4 !.4
(!.5) () () (!.5)
9. LeIIeroComorIissuedbyIheCompanyIoIhe
bankersosubsidiarycompanies
!JJ.0 !JJ.0
(!!8.6) () () (!!8.6)
!0. CorporaIe guaranIee issued by Ihe Company
Io Ihe bankers o wholly owned subsidiary
companies
27J8.9 27J8.9
(J0J4.2) () () (J0J4.2)
i)liguresinbrackeIsareorpreviousyear.
ii)PelaIedparIyrelaIionshipisasidenIiiedbyIheCompanyandrelieduponbyIheAudiIors.
47. Lxcise duIy (Peer noIe 26) includes H J.2 million (previous year H 2J.2 million) being neI impacI o Ihe excise duIy
provisiononopeningandclosingsIock.
48. DuringIheyear,IheCompanyhasreceivednoIiceunderSecIion!5JA(!)(a)oIhelncomeTaxAcI,!96!requiringIhe
CompanyIoilerevisedreIurnsorsixassessmenIyearsromAY200607IoAY20!!!2.
lnpursuanceIoIhesame,IheCompanyhasiledrevisedreIurnsorIhesaidassessmenIyearsandIhishasresulIedin
addiIionalIaxpaymenIsoHJ5.!millionandareducIionoMATCrediILnIiIlemenIoH228.2millionasisdisclosed
underSIaIemenIoProiIandLossandnoIe!4LongTermLoansandAdvancesrespecIively.
49. TheCompanyisinvolvedinvariouslegalproceedings,includingproducIliabiliIyrelaIedclaims,employmenIclaimsand
oIherregulaIorymaIIersrelaIingIoconducIoiIsbusiness.TheCompanycarriesproducIliabiliIyinsurancepolicywiIh
anamounIiIbelievesissuicienIoriIsneeds.lnrespecIooIherclaims,IheCompanybelieves,IheseclaimsdonoI
consIiIuIemaIerialliIigaIionmaIIersandwiIhiIsmeriIoriousdeensesIheulIimaIedisposiIionoIhesemaIIerswillnoI
havemaIerialadverseeecIoniIslinancialSIaIemenIs.
50. NoborrowingcosIhasbeencapiIalisedduringIheyear.
51. Previous years igures have been regrouped / reclassiied wherever necessary Io correspond wiIh Ihe currenI years
classiicaIion/disclosure.
SignaIuresIoNoIe!Io5!

lorLupin Limited
Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma M. D. Gupta Nilesh Gupta
Chairman ManagingDirecIor LxecuIiveDirecIor LxecuIiveDirecIor
Vinita Gupta Dr. Vijay Kelkar Richard Zahn R. A. Shah
DirecIor DirecIor DirecIor DirecIor
Dr. K. U. Mada Dileep C. Choksi
DirecIor DirecIor
Place:Mumbai
DaIed:May8,20!J CompanySecreIary
R. V. Satam
184 | Lupin Limited
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There is only one reason why we exist;

to treat disease, to heal and enrich

franchise with the launch of

chewable tablets. Additional

zReceived initial project milestones

and Viread 150mg,

zDuring the year, the Company settled

and The Lconomic Times,

List of other directorships Chairman/Member of the Committees of the board of the

Mr. Nilesh Gupta

Annual Report 2013 | 71

20!0!! Wednesday,!uly27,20!!aI2.J0p.m. PangShardaNaIyamandir,8andraPeclamaIion,

20!!!2 Tuesday, !uly 24, 20!2 aI 2.J0 p.m. PangShardaNaIyamandir,8andraPeclamaIion,

Annual Report 2013 | 73

lor LUPIN LIMITED lor LUPIN LIMITED

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