236-460

Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.1 Property, plant and equipment 2.1 Property, plant and equipment (continued)
Leases
Furniture,
Plant and The Company has lease contracts for various items of plant and equipment, vehicles and other equipment used in its operations.
Particulars Land Buildings fixtures and Vehicles Total
Equipment
office equipment Below are the carrying amounts of right-of-use assets recognised and the movements during the year included in the above
Gross carrying value property, plant and equipment:
Balance as at April 01, 2023 4,384 29,651 98,094 7,658 1,975 1,41,762
Additions 25 3,342 10,354 1,169 812 15,702 Furniture,
Plant and
Disposals (43) (85) (1,852) (456) (411) (2,847) Particulars Land Buildings fixtures and Vehicles Total
Equipment
Effect of changes in foreign exchange 24 44 498 3 (112) 457 office equipment
rates Gross carrying value
Balance as at March 31, 2024 4,390 32,952 1,07,094 8,374 2,264 1,55,074 Balance as at April 01, 2023 83 3,206 17 84 978 4,368
Additions - 1,941 - 23 456 2,420
Balance as at April 01, 2024 4,390 32,952 1,07,094 8,374 2,264 1,55,074
Disposals - (70) - (27) (257) (354)
Additions 85 4,972 14,396 1,583 1,073 22,109
Disposals (133) (3,502) (6,105) (1,720) (598) (12,058) Effect of changes in foreign exchange (1) (35) - (1) (7) (44)
Effect of changes in foreign exchange (45) 167 (364) 8 122 (112) rates
rates Balance as at March 31, 2024 82 5,042 17 79 1,170 6,390
Balance as at March 31, 2025 4,297 34,589 1,15,021 8,245 2,861 1,65,013
Balance as at April 01, 2024 82 5,042 17 79 1,170 6,390
Accumulated Depreciation Additions - 2,353 - - 614 2,967
Balance as at April 01, 2023 69 13,628 64,489 6,039 995 85,220
Disposals - (1,215) (16) (82) (443) (1,756)
Depreciation for the year - 1,989 6,310 854 407 9,560
Effect of changes in foreign exchange 5 137 (1) 3 2 146
Impairment for the year(1) - - 43 3 - 46
rates
Disposals - (56) (1,703) (452) (346) (2,557)
Effect of changes in foreign exchange 1 20 341 1 (45) 318 Balance as at March 31, 2025 87 6,317 - - 1,343 7,747
rates
Balance as at March 31, 2024 70 15,581 69,480 6,445 1,011 92,587 Accumulated Depreciation
Balance as at April 01, 2023 - 2,006 16 49 491 2,562
Balance as at April 01, 2024 70 15,581 69,480 6,445 1,011 92,587 Depreciation for the year - 803 - 15 326 1,144
Depreciation for the year - 2,114 6,936 1,011 423 10,484
Disposals - (44) - (27) (213) (284)
Impairment for the year(1) - - 3 - - 3
Effect of changes in foreign exchange - (35) - - (2) (37)
Disposals (73) (3,323) (6,013) (1,283) (345) (11,037)
rates
Effect of changes in foreign exchange 3 101 (154) 17 25 (8)
rates Balance as at March 31, 2024 - 2,730 16 37 602 3,385
Balance as at March 31, 2025 - 14,473 70,252 6,190 1,114 92,029
Balance as at April 01, 2024 - 2,730 16 37 602 3,385
Net carrying value Depreciation for the year - 944 - - 305 1,249
As at March 31, 2024 4,320 17,371 37,614 1,929 1,253 62,487
Disposals - (1,061) (16) (38) (251) (1,366)
As at March 31, 2025 4,297 20,116 44,769 2,055 1,747 72,984
Effect of changes in foreign exchange - 54 - 1 (2) 53
rates
(1)
This represents the impairment loss recognized on additions made during the year in respect of the subsidiary, Dr. Reddy’s Laboratories
Balance as at March 31, 2025 - 2,667 - - 654 3,321
Louisiana, LLC, as the recoverable amount remained lower than the carrying amount. The subsidiary had been fully impaired during the
previous year ended March 31, 2022.
During the year ended March 31, 2025, the Company divested its membership interest in this subsidiary and accordingly derecognized Net carrying value
property, plant, and equipment that were fully depreciated and impaired. As a result, an amount of ` 6,038 was reduced from both the gross As at March 31, 2024 82 2,312 1 42 568 3,005
carrying amount and accumulated depreciation. As at March 31, 2025 87 3,650 - - 689 4,426

Refer to Note 2.16 of these consolidated financial statements for further details on the divestment of [Link]’s
Laboratories Louisiana, LLC.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.1 Property, plant and equipment (continued) 2.2 Capital work-in-progress (continued)
The following are the amounts recognised in consolidated statement of profit and loss:
Amount in CWIP for a period of
For the year ended For the year ended Particulars Less than 1 More than 3 Total
Particulars 1-2 years 2-3 years
March 31, 2025 March 31, 2024 year years
Depreciation expense of right-of-use assets 1,249 1,144 Projects in progress 11,716 1,320 350 88 13,474
Interest expense on lease liabilities 391 256 Projects temporarily suspended 10 14 10 2 36
1,640 1,400 Balance as at March 31, 2024 11,726 1,334 360 90 13,510

The Company had total cash outflows for leases of ` 2,186 and ` 1,807 during the year ended March 31, 2025 and March 31,
Project execution plans and budgets are assessed on an annual basis and all the projects are executed as per
2024, respectively. The maturity analysis of lease liabilities is disclosed in note 2.11 C of these consolidated financial statements.
rolling annual plan.
Capital commitments
For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan the project wise
As of March 31, 2025 and March 31, 2024, the Company was committed to spend `14,567 and ` 18,177, respectively, details of when the project is expected to be completed is given below:
under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such
purchase commitments.
To be completed in
Interest capitalisation Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
During the years ended March 31, 2025 and March 31, 2024, the Company capitalised interest cost of `729 and ` 488, year years
respectively, with respect to qualifying assets. The rate for capitalisation of interest cost for the years ended March 31, 2025 and Projects in progress
March 31, 2024 was 7.01% and 9.31%, respectively. FTO-11 Onco facility 821 - - - 821
Biologics - Infrastructure 453 - - - 453
2.2 Capital work-in-progress
Balance as at March 31, 2025 1,275 - - - 1,275
For the year ended For the year ended
Particulars
March 31, 2025 March 31, 2024
Balance at the beginning of the year 13,510 9,752 To be completed in
Additions 32,966 19,444 Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
Capitalised (22,109) (15,702) year years
Provision for idle assets (341) (22) Projects in progress
Impairment (1) 1
Biologics - Infrastructure 1,089 - - - 1,089
Effect of changes in foreign exchange rates (31) 37
FTO-11 Onco facility 919 - - - 919
Balance at end of the year 23,994 13,510
FTO-11 Non Onco factility 385 - - - 385
Balance as at March 31, 2024 2,393 - - - 2,393
Capital work-in-progress (CWIP) Ageing schedule

Amount in CWIP for a period of

Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
year years
Projects in progress 21,639 2,076 157 57 23,929
Projects temporarily suspended 52 9 3 1 65
Balance as at March 31, 2025 21,691 2,085 160 58 23,994

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.3 Goodwill 2.3 Goodwill (continued)

Goodwill arising upon business combinations is not amortised but tested for impairment at least annually or more frequently into consideration external macroeconomic sources of data. Such long-term growth rate considered does not exceed that of
if there is any indication that the cash generating unit to which goodwill is allocated is impaired. Gross carrying value and the relevant business and industry sector.
accumulated amortisation with respect to goodwill represent Indian GAAP balances, that have been carried forward as such,
d) The post-tax discount rates and pre-tax discount rates used for Active Pharmaceutical Operations and Branded
relating to business combination entered before the transition date i.e., April 01, 2015.
Formulations are 10.88% and 14.54% respectively.
As at As at e) The post-tax discount rates and pre-tax discount rates used for Complex Injectables and North America Operations are
Particulars
March 31, 2025 March 31, 2024 7.44% and 8.55% respectively.
Gross carrying value
Opening balance 40,849 40,665 f) The post-tax discount rates and pre-tax discount rates used for Consumer Healthcare Business is 11.00% and
Goodwill arising on business combinations(1) 7,377 - 12.73% respectively.
Disposals - -
Effect of changes in foreign exchange rates 1,052 184 The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based
Closing balance 49,278 40,849 would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit.

Accumulated amortisation 2.4 Other intangible assets

Opening balance 35,348 35,191
Impairment loss - - Product related Customer related
Particulars Others(5) Total
Effect of changes in foreign exchange rates 791 157 intangibles intangibles
Closing balance 36,139 35,348 Gross carrying value
Net carrying value 13,139 5,501 Balance as at April 01, 2023 69,441 105 3,698 73,244
Additions(1) 9,586 - 1,448 11,034
Effect of changes in foreign exchange rates 417 1 3 421
For the purpose of impairment testing, goodwill is allocated to a cash generating unit, representing the lowest level within
Balance as at March 31, 2024 79,444 106 5,149 84,699
the Company at which goodwill is monitored for internal management purposes and which is not higher than the Company’s
operating segment.
Balance as at April 01, 2024 79,444 106 5,149 84,699
The carrying amount of goodwill (other than those arising upon investment in a joint venture) was allocated to the cash Additions(2) 9,067 - 908 9,975
generating units as follows: Assets acquired through business combinations (Refer note 2.40) 56,955 - - 56,955
Disposals/ De- recognitions (380) - (7) (387)
As at As at Effect of changes in foreign exchange rates 2,059 3 1 2,063
Particulars
March 31, 2025 March 31, 2024 Balance as at March 31, 2025 147,145 109 6,051 153,305
Global Generics-Germany Operations 2,456 2,397
Global Generics-Complex Injectables 2,071 2,021 Amortisation/impairment loss
Global Generics-Branded Formulations(1) 1,112 905 Balance as at April 01, 2023 40,667 105 2,297 43,069
PSAI-Active Pharmaceutical Operations 186 177 Amortisation for the year 4,739 - 401 5,140
Global Generics-Consumer Healthcare Business(1) 7,313 - Impairment loss(3) (59) - 18 (41)
Global Generics-North America Operations 1 1 Disposals/ De- recognitions - - - -
13,139 5,501 Effect of changes in foreign exchange rates 260 1 2 263
Balance as at March 31, 2024 45,607 106 2,718 48,431
(1) Refer to Note 2.40 of these consolidated financial statements for details regarding goodwill arising on business combinations.

The recoverable amounts of the above cash generating units have been assessed using a value-in-use model. Value in use is Balance as at April 01, 2024 45,607 106 2,718 48,431
generally calculated as the net present value of the projected post-tax cash flows plus a terminal value of the cash generating Amortisation for the year 6,146 - 407 6,553
unit to which the goodwill is allocated. Initially, a post-tax discount rate is applied to calculate the net present value of the post-tax Impairment loss(4) 1,646 - - 1,646
cash flows. Key assumptions upon which the Company has based its determinations of value-in-use include: Disposals/ De- recognitions (75) - (1) (76)
Effect of changes in foreign exchange rates 606 3 1 610
a) Estimated cash flows for five years, based on management’s projections. Balance as at March 31, 2025 53,930 109 3,125 57,164

b) The post-tax discount rates used are based on the Company’s weighted average cost of capital. Net carrying value
c) Terminal value is arrived at by extrapolating the last forecasted year cash flows to perpetuity, using constant long-term As at March 31, 2024 33,837 - 2,431 36,268
As at March 31, 2025 93,215 - 2,926 96,141
growth rate of 1.50% for Consumer Healthcare Business CGU and 0% for other CGU’s. This long-term growth rate takes

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.4 Other intangible assets (continued) 2.5 Intangible assets under development
(1) Additions during the year ended March 31, 2024, primarily consists of:
For the year ended For the year ended
(a) The acquisition of a generic prescription products portfolio in the United States from Mayne Pharma Group Limited, which includes Particulars
consideration of ` 7,395 (U.S.$90) attributable to product related intangibles. The portfolio consists of 44 commercial products, March 31, 2025 March 31, 2024
42 approved non-marketed products and 4 pipeline products, including a number of generic products focused on women’s health. Balance at the beginning of the year 683 549
Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.
Add: Additions during the year 85 320
(b) The acquisition of rights in toripalimab in India from Shanghai Junshi Biosciences Co., Limited for a consideration of ` 824 (U.S.$10)
Add: Capitalisations during the year(1) (71) (192)
towards marketing rights in India and 8 other countries.
Less: Impairment during the year (42) -
(2) Additions during the year ended March 31, 2025, primarily consists of:
Effect of changes in exchange rates 7 6
(a) 
` 5,025 (U.S.$58) pertaining to the upfront consideration paid and other additional milestone consideration pursuant to the acquisition
of exclusive rights to commercialize daratumumab biosimilar HLX 15 in the United States and Europe from Shanghai Henlius Biotech, Balance at end of the year 662 683
Inc. (“Henlius”). Under the terms of the agreement, Henlius will be responsible for development, manufacturing and commercial
supply, and is eligible to receive consideration upon achievement of commercial milestones, bringing the total potential consideration (1) Includes `125 towards the product ephedrine, which was capitalized from Intangible assets under development to product related
(including upfront consideration and milestone payments) of up to `11,243 (U.S.$131.6). In addition, Henlius is eligible to receive
royalties on annual net sales of the product upon commercialization intangibles because the same was available for use and subject to amortisation for the period ended March 31, 2024.

(b) 
` 1,764 (U.S.$ 20.70) paid as upfront consideration and additional milestone for the acquisition of exclusive rights in the United Intangible assets under development (IAUD) Ageing schedule *
States, and semi-exclusive rights in Europe and the United Kingdom, to commercialize AVT03 (denosumab), a biosimilar candidate to
Prolia® and Xgeva®.
Amount for a period of
(c) The acquisition of the rights to commercialize Helinorm, a food supplement product, in Russia and other countries, for a consideration
Particulars Less than 1 More than 3 Total
of `820 (RUB 970). 1-2 years 2-3 years
year years
(3) Impairment losses recorded for the year ended March 31, 2024, primarily consists of:
Projects in progress 84 206 298 74 662
(a) For the year ended March 31, 2024, the Company recorded a reversal of impairment loss of ` 226 with respect to saxagliptin/
metformin (generic version of Kombiglyze® - XR) and enalaprilat (generic version of Vasotec®) pursuant to the launches of these two Projects temporarily suspended - - - - -
products during the year. Balance as at March 31, 2025 84 206 298 74 662
(b) As a result of favorable changes in market conditions and in the circumstances that led to the initial impairment during the year ended
March 31, 2021, the Company revisited the market volumes, share and price assumptions of these two products and re-assessed
the recoverable amount. Accordingly, these products were capitalized as product related intangibles, with a corresponding reversal of
impairment loss of `191 and `35, respectively. These impairment loss reversals pertain to the Company’s Global Generics segment. Amount for a period of
Particulars Less than 1 More than 3 Total
Consequent to adverse market conditions with respect to certain products related intangibles and software platforms, the Company 1-2 years 2-3 years
assessed the recoverable amount and recognized impairment loss of `86 and `99 forming part of the Company’s Global Generics year years
and Others segment, respectively, for the year ended March 31, 2024.
Projects in progress 206 332 74 71 683
(4) Impairment losses recorded for the year ended March 31, 2025, primarily consists of: Projects temporarily suspended - - - - -
(a) Impairment of intangibles pertaining to acquisition from Mayne: Balance as at March 31, 2024 206 332 74 71 683
- an amount of ` 907 towards Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on
procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the
carrying value. Details of significant acquired intangible assets (including intangible assets under development) as at March 31, 2025:
- an amount of ` 270 pertaining to impairment of certain product related intangibles, due to adverse market conditions resulting in
lower recoverable value compared to the carrying value. Carrying net book
Particulars Acquired from
value
(b). Other impairments
Consumer Healthcare Portfolio of Nicotine Replacement Therapy Haleon UK Enterprises Limited 54,881
- During the year ended March 31, 2025, consequent to adverse market conditions with respect to certain product related
intangibles, the company assessed the recoverable value of certain products and recognized impairment loss of `512 primarily Select portfolio of branded generics business Wockhardt Limited 10,945
pertaining to business in India and Europe. daratamumab biosimilar HLX 15 Shanghai Henlius Biotechz,Inc 4,958
The above impairment charge pertains to the Company’s Global Generics segment. Cardiovascular brand Cidmus® in India Novartis AG 4,195
The Company used the discounted cash flow approach to calculate the value-in-use which considered assumptions such as revenue Portfolio of generic prescription products Mayne Pharma Group Limited 3,527
projections, rate of generic penetration, estimated price erosion, the useful life of the asset and the net cash flows have been
discounted based on post tax discount rate. Select portfolio of dermatology, respiratory and pediatric assets UCB India Private Limited and affiliates 2,556

(5) Others primarily includes Market rights, Softwares and licences.

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.6 Investment in equity accounted investees 2.6 Investment in equity accounted investees (continued)
Details of the Company's investment in DRES Energy Private Limited :
As at As at
Particulars
March 31, 2025 March 31, 2024 As at As at
Investment in unquoted equity shares Particulars
March 31, 2025 March 31, 2024
Equity shares held in Kunshan Rotam Reddy Pharmaceutical Company Limited, China(1) 4,428 4,130 Carrying value of the Company’s investment 58 55
8,580,000 (March 31, 2024: 8,580,000) equity shares of ` 10/- each of DRES Energy Private 58 55
Company’s share of Profit/(loss) for the year 3 (2)
Limited, India
13,649,600 (March 31, 2024: 427,800) equity shares of `10/- each of O2 Renewable Energy IX 136 4
Details of the Company’s investment in Clean Renewable Energy KK2A Private Limited:
Private Limited, India
20,25,299 (March 31, 2024: Nil) equity shares of ` 10/- each of Clean Renewable Energy KK 2A 17 - As at As at
Particulars
Private Limited,India March 31, 2025 March 31, 2024
4,639 4,189 Carrying value of the Company’s investment 17 -
Investment in compulsory convertible debentures Company’s share of loss for the year (4) -
171,504 (March 31, 2024: 7,284) compulsory convertible debentures of ` 1000/- each of O2 172 7
Renewable Energy IX Private Limited, India
Details of the Company's investment in O2 Renewable Energy IX Private Limited :
Total Investment in equity accounted investees 4,811 4,196
As at As at
(1) 
Shares held in Kunshan Rotam Reddy Pharmaceutical Company Limited, China are not denominated in number of shares as per the laws Particulars
March 31, 2025 March 31, 2024
of the country.
Carrying value of the Company’s investment 308 11
Details of the Company's investment in Kunshan Rotam Reddy Pharmaceuticals Company Limited : Company’s share of loss for the year -* (1)
Kunshan Rotam Reddy Pharmaceuticals Company Limited (“Reddy Kunshan”) is engaged in manufacturing and marketing of
*Rounded to nearest Million
finished dosages in China. The Company’s interest in Reddy Kunshan was 51.33% as of March 31, 2025 and March 31, 2024.
Four directors of the Company are on the board of Reddy Kunshan, which consists of total eight directors. Under the terms of
the joint venture agreement, all major decisions with respect to operating activities, significant financing and other activities are 2.7 Financial assets
taken by the approval of at least five of the eight directors of Reddy Kunshan’s board. As the Company does not control Reddy 2.7 A. Investments
Kunshan’s board and the other partners have significant participation rights, the Company’s interest in Reddy Kunshan has been Investments consist of investments in units of mutual funds, market linked debentures, equity securities, bonds, commercial
accounted for under the equity method of accounting. paper, limited liability partnership firm

Summary financial information of Reddy Kunshan, as translated into the reporting currency of the Company and not adjusted for As at As at
Particulars
the percentage ownership held by the Company, is as follows: March 31, 2025 March 31, 2024
Investments at FVTOCI
As at/ As at/
Quoted equity shares (fully paid up)
Particulars For the year ended For the year ended
March 31, 2025 March 31, 2024 273,285 (March 31, 2024: 273,285) equity shares of US$ 0.01 each of Curis, Inc. 49 248
Ownership 51.33% 51.33% Total investments at FVTOCI (A) 49 248
Current assets 6,551 6,447
Non-current assets 4,514 3,799 Investments at FVTPL
Total assets 11,065 10,246 I. Investment in unquoted equity shares
Equity 8,273 7,692
8,859 (March 31, 2024: 8,859) equity shares of ` 100/- each of Jeedimetla Effluent 1 1
Liabilities 2,792 2,554
Treatment Limited, India
Total equity and liabilities 11,065 10,246
Revenues 9,317 9,688 Ordinary shares of Biomed Russia Limited, Russia (1)(2) - -
Expenses 8,893 9,396 200,000 (March 31, 2024: 200,000) equity shares of ` 10/- each of Altek Engineering - -
Profit for the year 425 292 Limited, India (2)
Company’s share of profits for the year 218 150 24,000 (March 31, 2024: 24,000) equity shares of ` 100/- each of Progressive Effluent - -
Carrying value of the Company’s investment(1) 4,428 4,130 Treatment Limited, India (2)
Translation adjustment arising out of translation of foreign currency balances 552 472
20,250 (March 31, 2024: 20,250) equity shares of ` 10/- each of Shivalik Solid Waste - -
Management Limited, India (2)
(1)
Includes ` 181 representing the goodwill on acquisition of investment.
1 1
 he Company recognized an amount of ` Nil and ` 445 as of March 31, 2025 and 2024, respectively, representing its share of
T
dividend declared by the equity accounted investee, Reddy Kunshan. The amount of dividend is adjusted against the carrying
amount of investment in the consolidated statement of financial position.

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.7 Financial assets (continued) 2.7 Financial assets (continued)

Pursuant to certain arrangement with a bank, the Company sold to the bank certain of its trade receivables forming part of its
As at As at
Particulars Global Generics segment, on a non-recourse basis. The receivables sold were mutually agreed upon with the respective bank
March 31, 2025 March 31, 2024
after considering the creditworthiness and contractual terms with the customer. The Company has transferred substantially
II. Investment in unquoted mutual funds 33,186 40,597
all the risks and rewards of ownership of such receivables sold to the respective bank, and accordingly, the same were
III. Investment in partnership firms
derecognised in the Consolidated Balance Sheet. During the years ended March 31, 2025 and 2024, the amount of trade
ABCD Technologies LLP 397 297
receivables derecognised pursuant to the aforesaid arrangement was ` 13,739 and ` 14,790, respectively.
New Rhein Healthcare LLP 726 347
IV. Investment in quoted equity shares In accordance with Ind AS 109, the Company uses the expected credit loss ("ECL") model for measurement and recognition
174,142 (March 31, 2024: 443,651) equity shares of Journey Medical Corporation 87 136 of impairment loss on its trade receivables or any contractual right to receive cash or another financial asset that result from
V. Others transactions that are within the scope of Ind AS 115. For this purpose, the Company uses a provision matrix to compute the
1,210,986 (March 31, 2024: 1,014,442) preference shares of 0.01 NIS(3) each of Edity 219 166 expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors
Therapeutics Limited and historical data of credit losses from various customers. The details of changes in allowance for credit losses during the year
Total investments at FVTPL (I+II+III+IV+V) (B) 34,616 41,544 ended March 31, 2025 and March 31, 2024 are as follows:

Investments carried at amortised cost

For the year ended For the year ended
I. Investment in bonds 1,001 974 Particulars
March 31, 2025 March 31, 2024
II. Investment in commercial paper - 2,312 Balance at the beginning of the year 1,451 1,258
III. Others 33 31 Provision made during the year, net of reversals 159 242
Total investments carried at amortised cost (C) 1,034 3,316 Trade receivables written off during the year and effect of changes in the foreign exchange rates (132) (49)
Total investments (A+B+C) 35,700 45,109 Balance at the end of the year 1,478 1,451
Current 33,307 44,050
Non-current 2,393 1,059 Trade Receivables Ageing Schedule
35,700 45,109
Aggregate carrying value of quoted investments 136 384 Outstanding for following periods from due date of payment
Aggregate market value of quoted investments 136 384 Particulars Less than 6 months More than Total
Not due 1-2 Years 2-3 years
6 months -1 year 3 years
Aggregate carrying value of unquoted investments 35,564 44,725
(i) Undisputed Trade receivables - considered good 81,010 8,121 949 - - - 90,080
Aggregate amount of impairment in value of investment in unquoted equity shares - -
(ii) Undisputed Trade Receivables - credit impaired - - 0 538 241 177 956
(iii) Disputed Trade receivables - considered good - - - - 467 - 467
(1)
Shares held in Biomed Russia Limited, Russia are not denominated in number of shares as per the laws of the country.
(iv) Disputed Trade Receivables - credit impaired - - - 18 42 335 395
(2)
Rounded off to millions.
91,898
(3)
NIS - New Israeli shekel Less: Allowance for credit losses (1,478)
2.7 B. Trade receivables Balance as at March 31, 2025 90,420

As at As at
Particulars
March 31, 2025 March 31, 2024
Outstanding for following periods from due date of payment
Trade receivables 90,378 80,249
Particulars Less than 6 months More than Total
Receivables from related parties (Refer note 2.25) 42 49 Not due 1-2 Years 2-3 years
6 months -1 year 3 years
90,420 80,298
(i) Undisputed Trade receivables - considered good 71,350 5,693 2,954 - - - 79,998
Details of security
Considered good, Unsecured 90,547 80,410 (ii) Undisputed Trade Receivables - credit impaired - 6 8 847 30 115 1,006
Credit impaired 1,351 1,339 (iii) Disputed Trade Receivables - considered good - - - 412 - - 412
91,898 81,749 (iii) Disputed Trade Receivables - credit impaired - 10 8 45 - 270 333
Less: Allowance for credit losses (1,478) (1,451)
81,749
90,420 80,298
Less: Allowance for credit losses (1,451)
Current 90,420 80,298
Balance as at March 31, 2024 80,298
Total carried at amortised cost 90,420 80,298

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.7 Financial assets (continued) 2.7 Financial assets (continued)

2.7 C. Other financial assets 2.7 E. Other bank balances

As at As at As at As at
Particulars Particulars
March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024
I. Non-current assets Term deposits with banks (original maturities more than 3 months but less than 12 months) 9,948 10,170
Considered good, Unsecured 9,948 10,170
Term deposits with banks (remaining maturity more than 12 months) 4,000 -
Term deposits with financial institutions (remaining maturity more than 12 months) 4,000 - 2.8 Other assets
Security deposits 750 747
Other assets 125 465 As at As at
Particulars
Total 8,875 1,212 March 31, 2025 March 31, 2024
II. Current assets A. Non-current assets
Considered good, Unsecured Unsecured, considered good
Term deposits with banks (remaining maturity less than 12 months) Capital advances 843 953
Claims receivable - 20,143 Others 97 420
Other receivables (refer note 2.7 B) 257 135 940 1,373
Other assets(1) 646 165 B. Current assets
Unsecured, considered doubtful 2,239 2,084 Unsecured, considered good
Claims receivable 134 134 Balances and receivables from statutory authorities (1) 16,405 12,132
3,276 22,661 Government incentives receivable(2) 2,967 2,909
Less: Allowance for doubtful advances (134) (134) Prepaid expenses 1,883 1,947
Total 3,142 22,527 Dues from other related parties (Refer note 2.25) 8 8
(1)
Others primarily includes other advances, settlement income receivable and tender rebate receivable. Advances to material suppliers 2,992 323
Others(3) 2,813 2,861
2.7 D. Cash and cash equivalents Unsecured, considered doubtful
Other advances 156 130
As at As at
Particulars 27,224 20,310
March 31, 2025 March 31, 2024
Balances with banks Less: Allowance for doubtful advances (156) (130)

In current accounts(1) 11,996 4,349 27,068 20,180

In EEFC accounts 66 85 (1)

Balances and receivables from statutory authorities primarily consist of amounts recoverable towards the goods and service tax (“GST”),
In term deposits with banks (original maturities less than 3 months) 2,441 2,515 excise duty, and value added tax and from customs authorities of India.
Cash on hand 1 1 (2)
Primarily consist of amounts receivable from various government authorities of India towards benefits on export sales made by the
Others Company and other incentives.
In unclaimed dividend accounts 80 87 (3)
Others primarily includes advances given to vendors, employees
LC and Bank guarantee margin money 70 70
Cash and cash equivalents in the consolidated balance sheet 14,654 7,107
Less: Bank overdraft used for cash management purposes 61 -
Cash and cash equivalents in the consolidated statement of cash flow (including restricted 14,593 7,107
cash)
(1)
includes restricted bank balance of ` 361 (March 31, 2024 : ` 143)

Restricted cash balances included above

Balance in unclaimed dividend and debenture interest account 80 87
Other restricted cash balances 464 213

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.10 Share capital (continued)

2.9 Inventories *Rounded to the nearest million
**The Board of Directors of the Company at their meeting held on July 27, 2024 have approved the sub-division/ stock split of each equity
As at As at share having a face value of ` 5/- each, fully paid-up, into five equity shares having a face value of ` 1/- each, fully paid-up (the “stock
Particulars
March 31, 2025 March 31, 2024 split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share
Raw materials (includes in transit March 31, 2025: ` 286; March 31, 2024: ` 423) 20,165 19,030 ("ADS") of the Company will continue to represent one underlying equity share and, therefore, the number of ADSs held by an American
Depositary Receipt ("ADR") holder would consequently increase in proportion to the increase in number of equity shares. On 12
Work-in-progress 16,525 14,222 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.
Finished goods 21,462 19,869 Consequently, the authorized share capital, the outstanding shares and Treasury shares were sub-divided into equity shares having a
face value of ` 1/- each with effective from record date of October 28, 2024.
Stock-in-trade 6,933 5,382
(1) During the years ended March 31, 2025 and March 31, 2024, equity shares were issued as a result of the exercise of vested options
Packing material , stores and spares 6,000 5,049
granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2002 and the Dr. Reddy’s Employees Stock
71,085 63,552 Option Scheme, 2007. The options exercised had an exercise price of ` 5, ` 2,607, ` 3,679 or ` 5,301 (prior to stock split) and ` 1
(after stock split) per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date
fair value) previously recognised in the "share-based payment reserve” was transferred to“securities premium” in the Statement of
During the year ended March 31, 2025, the Company recorded inventory write-down of `5,220 (March 31, 2024 : ` 3,563) in the
Changes in Equity.
consolidated statement of profit and loss.
(2) Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr.
Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme,
2.10 Share capital 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance
to eligible employees (as defined therein) upon exercise of stock options thereunder. During the year ended March 31, 2025,
As at As at 1,168,490 shares were acquired from the open market. The total amount paid to acquire the shares was ` 1,389. During the years
Particulars
March 31, 2025 March 31, 2024 ended March 31, 2025 and March 31, 2024, an aggregate of 22,077 (prior to stock split) and 54,800 (after stock split) and 81,353
Authorised share capital** equity shares, respectively were issued as a result of the exercise of vested options granted to employees pursuant to the Dr.
Reddy’s Employees Stock Option Scheme, 2018. The options exercised had an exercise price of ` 2,607, ` 2,814, ` 3,679,` 3,906
1,450,000,000 equity shares of ` 1/- each (March 31, 2024: 290,000,000 equity shares of ` 5/ 1,450 1,450
` 4,212,` 4,338 ,` 4,663 or ` 5,301 (prior to stock split) and ` 521, ` 563, ` 736, ` 889, ` 933, ` 981 and ` 1,060 (after stock split) per
each) share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously
Issued equity capital** recognised in the “share based payment reserve” was transferred to “securities premium” in the statement of changes in equity.
In addition, any difference between the carrying amount of treasury shares and the consideration received was recognised in the
834,456,365 equity shares of ` 1/- each fully paid-up (March 31, 2024: 166,818,466 equity shares 834 834
“securities premium”.
of ` 5/ each)
Subscribed and fully paid-up** As of March 31, 2025 and March 31, 2024, the ESOS Trust had outstanding 2,452,260 (after stock split) and 289,791
834,455,365 equity shares of ` 1/- each fully paid-up (March 31, 2024: 166,818,266 equity shares 834 834 shares, respectively, which it purchased from the secondary market for an aggregate consideration of ` 2,264 and
of ` 5/ each) ` 991, respectively. Refer note 2.25 of these financial statements for further details on the Dr. Reddy’s Employees Stock
Add: Forfeited share capital(e) - - Option Scheme, 2018.
834 834
(b) Terms / rights attached to the equity shares

(a) Reconciliation of the equity shares outstanding is set out below: The Company has only one class of equity shares having a par value of ` 1 per share (March 31, 2024: ` 5 per share).
For all matters submitted to vote in a shareholders meeting of the Company, every holder of an equity share, as reflected
For the year ended For the year ended in the records of the Company as on the record date set for the shareholders meeting, shall have one vote in respect of
March 31, 2025 March 31, 2024 each share held.
Particulars
No. of shares** No. of shares
Amount Amount
(of ` 1/- each) (of ` 5/- each) Should the Company declare and pay any dividends, such dividends will be paid in Indian rupees to each holder of equity
Opening number of equity shares/share capital (face value of ` 166,818,266 834 166,527,876 833 shares in proportion to the number of shares held to the total equity shares outstanding as on that date. Indian law on
5 each) foreign exchange governs the remittance of dividends outside India.
Add: Equity shares issued pursuant to employee stock option 58,680 -* 290,390 1
plan (1) In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company.
Add: Increase in outstanding shares on account of stock split** 667,507,784 - Not applicable The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of
Add: Equity shares issued pursuant to employee stock option 70,635 -* - - shares held to the total equity shares outstanding as on that date.
plan(1) after stock split
Closing number of equity shares/share capital ** 834,455,365 834 166,818,266 834
Final dividends on equity shares are recorded as a liability on the date of their approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the Company’s Board of Director.
Treasury shares (2)
2,452,260 2,264 289,791 991

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.10 Share capital (continued) 2.10 Share capital (continued)

The details of dividends paid by the Company are as follows: (f) Details of shares held by promoters

As at March 31, 2025 As at March 31, 2024

During the Year During the Year % change
Promoter Name No. of shares at No. of shares at the during the
Particulars Ended Ended % of Total % of Total
the end of the year end of the year year *
March 31, 2025 March 31, 2024 Shares Shares
(of ` 1/- each) (of ` 5/- each)
Dividend per share prior to effect of stock split (in absolute `) (face value of ` 5 per share) 40 40 G V Prasad 96,095,920 11.52% - 0.00% 100.00%
Dividend paid during the year (net of treasury shares) 6,662 6,648 Satish Reddy Kallam 85,738,125 10.27% 901,002 0.54% 1803.17%
Towards the fiscal year 2024 2023 APS Trust (1) - 0.00% 34,345,308 20.59% -100.00%
Satish Reddy Kallam (HUF) 27,618,385 3.31% 5,523,677 3.31% 0.00%
At the Company’s Board of Directors’ meeting held on May 09, 2025, the Board proposed a dividend of ` 8 per share (face Gunupati Venkateswara Prasad (HUF) 12,717,090 1.52% 2,543,418 1.52% 0.00%
value of ` 1 per share) and aggregating to ` 6,676, which is subject to the approval of the Company’s shareholders. Samrajyam Reddy Kallam - 0.00% 1,120,499 0.67% -100.00%
Anuradha Gunupati 46,025 1.00% 9,205 0.01% 0.00%
(c) Details of shareholders holding more than 5% shares in the Company
Deepti Reddy Kallam 25,700 0.00% 5,140 0.00% 0.00%
As at As at G.V. Sanjana Reddy 25,700 0.00% 5,140 0.00% 0.00%
March 31, 2025 March 31, 2024
G. Mallika Reddy 25,695 0.00% 5,139 0.00% 0.00%
Particulars No. of shares at No. of shares at
the end of the the end of the Sharathchandra Reddy Gunupati 13,000 0.00% 2,600 0.00% 0.00%
% holding % holding
year year
(of ` 1/- each) (of ` 5/- each)
G V Prasad 96,095,920 11.52 - - As at March 31, 2024 As at March 31, 2023
% change
Satish Reddy Kallam 85,738,125 10.27 - - Promoter Name No. of shares at the No. of shares at the during the
% of Total % of Total
end of the year end of the year
APS Trust (refer note 2.36) - - 34,345,308 20.59 Shares Shares year
(of ` 5/- each) (of ` 5/- each)
Life Insurance Corporation of India and their associates 60,015,393 7.19 8,421,089 5.05
APS Trust 34,345,308 20.59% 34,345,308 20.62% 0.00%
Satish Reddy Kallam (HUF) 5,523,677 3.31% 5,523,677 3.32% 0.00%
(d) 313,790 (March 31, 2024: 501,045) stock options are outstanding and are to be issued by the Company upon exercise of
Gunupati Venkateswara Prasad (HUF) 2,543,418 1.52% 2,543,418 1.53% 0.00%
the same in accordance with the terms of exercise under the "Dr. Reddy's Employees Stock Option Plan, 2002", 1,140,235
(March 31, 2024: 1,382,995) stock options are outstanding and are to be issued by the Company upon exercise of the Samrajyam Reddy Kallam 1,120,499 0.67% 1,120,499 0.67% 0.00%
same in accordance with the terms of exercise under the "Dr. Reddy’s Employees ADR Stock Option Plan, 2007" and Satish Reddy Kallam 901,002 0.54% 901,002 0.54% 0.00%
2,399,070 (March 31, 2024: 2,087,265) stock options are outstanding and are to be issued by the Company upon exercise Anuradha Gunupati 9,205 0.01% 9,205 0.01% 0.00%
of the same in accordance with the terms of exercise under the "Dr. Reddy’s Employees Stock Option Scheme, 2018 ". Deepti Reddy Kallam 5,140 0.00% 5,140 0.00% 0.00%
(Refer note 2.29) G.V. Sanjana Reddy 5,140 0.00% 5,140 0.00% 0.00%
G. Mallika Reddy 5,139 0.00% 5,139 0.00% 0.00%
(e) Represents 1000 equity shares( after effect of stock split) of ` 1/- each, amount paid-up ` 500/- (rounded off to millions in
Sharathchandra Reddy Gunupati 2,600 0.00% 2,600 0.00% 0.00%
the note above) forfeited due to non-payment of allotment money.

The percentage shareholding above has been computed considering the outstanding number of shares 834,455,365 and
166,818,266 As at March 31, 2025 and March 31, 2024, respectively.

*T
 he outstanding number of shares as at March 31, 2024 and shares held during the year by respective promoters have been adjusted to
give the the effect of stock split i.e., 1:5 for the computation of % change during the year ended March 31, 2025.
(1)
On May 22, 2024, the APS Trust transferred 15,126,124 (prior to stock split) equity shares, representing 9.07% of outstanding equity
shares, to Satish Reddy Kallam and 19,219,184 (prior to stock split) equity shares, representing 11.52% of outstanding equity shares,
to G V Prasad. This change has not resulted in any change in the total promoter shareholding of the company. Further, there are no
shares held by APS after May 22, 2024.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.11 Financial Liabilities 2.11 Financial Liabilities (continued)

2.11 A. Non-current borrowings d) The interest rate profile of short-term borrowings from banks is given below:

As at As at As at March 31, 2025 As at March 31, 2024

Particulars Particulars
March 31, 2025 March 31, 2024
Currency (1)
Interest Rate ) (2
Currency(1) Interest Rate(2)
Unsecured
Pre-shipment credit INR 3 Months T-bill+35 bps to 60 bps INR 3 months T-bill + 0.05%
Long-term loans from banks (a and b)(1) 3,800 3,800
INR 1 Month T-bill +35 bps
3,800 3,800
USD 6 Month SOFR + 10 bps to 65 bps
Other working capital borrowings EUR _ EUR 4.44%
2.11 B. Current borrowings
MXN TIIE + 1.35% MXN TIIE + 1.35%
As at As at RUB Key rate + 470 bps to 590 bps RUB Key rate + 235 bps to
Particulars 276 bps
March 31, 2025 March 31, 2024
From Banks BRL CDI + 1.55% BRL -
Unsecured INR 7.50% INR 3 Month T-bill + 10 bps
Pre-shipment credit (c and d) 32,855 2,500
(1) “BRL” means Brazilian reals, “EUR” means Euro, “INR” means Indian rupees, “MXN” means Mexican pesos, “RUB” means Russian
Working capital borrowings (c and d) 5,129 10,223
rubles and “U.S.$” means U.S. dollars.
Bank overdraft 61 -
(2) “CDI” means Brazilian interbank deposit rate (Certificado de Depósito Interbancário), “Key rate” means the key interest rate published
38,045 12,723
by the Central Bank of Russia, “SOFR” means Secured Overnight Financing Rate, “T-bill” means India Treasury bill interest rate and
“TIIE” means the Equilibrium Inter-banking Interest Rate (Tasa de Interés Interbancaria de Equilibrio).
(1)
The Rupee term loan obtained from bank by the subsidiary i.e., Aurigene Pharmaceutical Services Limited is subject to certain covenants
that are required to be maintained on a consolidated basis during the period of the loan. The covenant is to be tested on an annual basis
at the end of each financial year. As at March 31, 2025 and March 31, 2024, the Company is in compliance with the covenants and has no e) The Company had uncommitted lines of credit of ` 50,904 and ` 61,131 as of March 31, 2025 and March 31, 2024,
indication that it will have difficulty in complying with the same. respectively, from its banks for working capital requirements. The Company draw upon these lines of credit based on its
working capital requirements.
a) The interest rate profiles of long-term borrowings as at March 31, 2025 and March 31, 2024 were as follows:
f) Reconciliation of liabilities arising from financing activities
As at March 31, 2025 As at March 31, 2024
Particulars
Currency Interest Rate Currency Interest Rate During the year ended March 31, 2025
Long-term loans from banks INR 3 months T-bill + 84 bps INR 3 months T-bill + 84 bps
Particulars Non-current borrowings Current borrowings Total
Opening balance 3,800 12,723 16,523
b) The aggregate maturities of long-term loans and borrowings, based on contractual maturities : Borrowings made during the year (1) - 80,646 80,646

As at As at Borrowings repaid during the year - (56,156) (56,156)

Particulars
March 31, 2025 March 31, 2024 Effect of changes in foreign exchange rates - 771 771
Maturing in Closing balance 3,800 37,984 41,784
Less than 1 year - -
(1)
Adjusted for Bank-overdraft of ` 61
1-2 years 3,800 -
2-3 years - 3,800 During the year ended March 31, 2024
3-4 years - -
4-5 years - - Particulars Non-current borrowings Current borrowings Total
Thereafter - - Opening balance - 11,190 11,190
3,800 3,800 Borrowings made during the year 3,800 15,566 19,366
Borrowings repaid during the year - (13,873) (13,873)
c) Short-term borrowings primarily consist of “pre-shipment credit” drawn by the parent company and other unsecured loans Effect of changes in foreign exchange rates - (160) (160)
drawn by the parent company and certain of its subsidiaries in Russia, Brazil, Ukraine and Mexico which are repayable Closing balance 3,800 12,723 16,523
within 12 months from the date of drawdown.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.11 Financial Liabilities (continued) 2.11 Financial Liabilities (continued)

2.11 C. Lease liabilities 2.11 D. Other financial liabilities

As at As at As at As at
Particulars Particulars
March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024
Non-current Lease liabilities Non-current financial liabilities
Long-term maturities of lease obligation 4,064 2,190 Capital creditors 198 -
4,064 2,190 198 -
Current Lease liabilities Current financial liabilities
Current maturities of lease obligation 857 1,307 Accrued expenses 25,201 24,784
857 1,307 Capital creditors 9,039 4,774
DRHL Merger Payable a/c (1) 203 144
a) The aggregate maturities of long-term leases, based on contractual maturities Trade and security deposits received 156 203
Unclaimed dividends(2) 80 87
As at As at
Particulars Others (3)
5,019 4,548
March 31, 2025 March 31, 2024
39,698 34,540
Maturing in
Less than 1 year 1,104 1,529
(1)
Represents balance portion of costs, charges and expenses relating to merger scheme to borne out of the surplus assets of DRHL
1-2 years 911 910 including `59 tax refund received during the year ended March 31, 2025 for AY 21-22
2-3 years 840 491 (2)
Unclaimed amounts are transferred to Investor Protection and Education Fund after seven years from the due date.
3-4 years 594 391 (3)
Includes earn-out consideration payable to Haleon UK Enterprises Limited. Refer to Note 2.40 B of these consolidated financial statements
4-5 years 539 201 for further details.
Thereafter 2,736 709
Total 6,724 4,231 2.11 E. Trade payables
Less : Finance component (1,803) (734) As at As at
Particulars
4,921 3,497 March 31, 2025 March 31, 2024
Due to micro, small and medium enterprises (MSME)(1) 210 282
b) Reconciliation of lease liabilities arising from financing activities Other than micro, small and medium enterprises (Others) 26,268 25,862
26,478 26,144
For the year ended For the year ended
Particulars
March 31, 2025 March 31, 2024
Opening balance 3,497 2,282 For details regarding the Company’s exposure to currency and liquidity risks, refer note 2.32 of these consolidated financial
statements under “Liquidity risk”.
Recognition of right-of-use liability during the year 2,576 2,348
Payment of principal portion of lease liabilities (1,294) (1,147)
Trade payables and other financial liabilities includes amount due to related party ` 62 and ` 24 as on March 31, 2025 and
Effect of changes in foreign exchange rates 142 14 March 31, 2024, refer note 2.25 of these consolidated financial statements.
Closing balance 4,921 3,497
(1)
(a) The principal amount remaining unpaid as at March 31, 2025 in respect of enterprises covered under the "Micro, Small and Medium
Enterprises Development Act, 2006" (MSMED) is ` 210 (March 31, 2024: ` 268). The interest amount computed based on the
provisions under Section 16 of the MSMED is ` 0.00 (March 31, 2024: ` 0.00) is remaining unpaid as of March 31, 2025.
(b) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed
day during the year) but without adding the interest specified under this Act is ` Nil
(March 31, 2024: ` Nil).
(c) Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
collected by the Management.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.11 Financial Liabilities (continued) 2.12 Provisions (continued)

Trade Payables ageing schedule a) Details of changes in other provisions during the year ended March 31, 2025 are as follows:

Outstanding for following periods from due date of payment Refund Environmental Legal and
Particulars Total Total
Less than 1 year 1-2 Years 2-3 Years More than 3 years liability(1) liability(2) others (3)

(i) Undisputed dues - MSME 210 - - - 210 Balance at the beginning of the year 4,579 61 804 5,444

(ii) Undisputed dues - Others 25,296 244 55 161 25,756 Provision made during the year, net of reversals 4,784 - 159 4,943

(ii) Disputed dues - Others - - 512 - 512 Provision used during the year (4,129) - - (4,129)

Balance as at March 31, 2025 25,506 244 567 161 26,478 Effect of changes in foreign exchange rates 63 3 - 66
Balance at end of the year 5,297 64 963 6,324

Outstanding for following periods from due date of payment Current 5,297 - 871 6,168
Particulars Total
Less than 1 year 1-2 Years 2-3 Years More than 3 years Non- current - 64 92 156
(i) Undisputed dues - MSME 282 - - - 282 5,297 64 963 6,324
(ii) Undisputed dues - Others 24,889 231 50 182 25,351
(ii) Disputed dues - Others - 511 - - 511 b) Details of changes in other provisions during the year ended March 31, 2024 are as follows:
Balance as at March 31, 2024 25,171 742 50 182 26,144
Refund Environmental Legal and
Total
liability(1) liability(2) others (3)
2.12 Provisions
Balance at the beginning of the year 4,716 59 738 5,513
As at As at Provision made during the year, net of reversals 3,321 - 66 3,387
Particulars
March 31, 2025 March 31, 2024 Provision used during the year (3,502) - - (3,502)
A. Non-current provisions Effect of changes in foreign exchange rates 44 2 - 46
Provision for employee benefits (Refer note 2.28) Balance at end of the year 4,579 61 804 5,444
Long service award benefit plan 32 63
Pension, seniority and severance indemnity plans 46 56 Current 4,579 - 804 5,383
Compensated absences 64 59 Non- current - 61 - 61
Environmental liability (a)(b) 64 61 4,579 61 804 5,444
Legal and others 92 -
298 239 (1)
Refund liability is accounted for by recording a provision based on the Company’s estimate of expected sales returns. Refer note 1.3
B. Current provisions (n) of these consolidated financial statements for the Company’s accounting policy on refund liability.
Provision for employee benefits (Refer note 2.28) (2)
As a result of the acquisition of a unit of The Dow Chemical Company in April 2008, the Company assumed a liability for
contamination of the Mirfield site acquired of ` 39 (carrying value ` 64). The seller is required to indemnify the Company for this
Gratuity 603 361
liability. Accordingly, a corresponding asset has also been recorded in these consolidated financial statements.
Long service award benefit plan 95 14 (3)
Primarily consists of provision recorded towards the potential liability arising out of a litigation relating to cardiovascular and anti-
Pension, seniority and severance indemnity plans 15 16 diabetic formulations. Refer note 2.33 of these consolidated financial statements under “Product and patent related matters - Matters
Compensated absences 875 1,146 relating to National Pharmaceutical Pricing Authority” for further details.
Other provisions (a)(b)

Refund liability 5,297 4,579

Legal and others 871 804
7,756 6,920

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.13 Other liabilities 2.14 Revenue from contracts with customers and trade receivables (continued)
Details of significant gross to net adjustments relating to Company's North America Generics business (amounts in
As at As at
Particulars US$ millions)
March 31, 2025 March 31, 2024
A roll-forward for each major accrual for the Company’s North America Generics business for the financial years ended
A. Non-current liabilities
March 31, 2025 and March 31, 2024 is as follows:
Deferred revenue(1) 1,162 1,193
All values in US$ millions
Cash settled ESOP Liability (Refer note 2.29) 202 211
Other non-current liabilities 892 1,736 Particulars Chargebacks Rebates Medicaid Refund Liability(2)
2,256 3,140 Balance as at April 01, 2023 247 87 13 35
B. Current liabilities Current provisions relating to sales during the year 2,844 322 31 21
Salary and bonus payable 5,209 4,865 Provisions and adjustments relating to sales in prior -* - - -
Cash settled ESOP Liability (Refer note 2.29) 420 365 years

Statutory dues payable 4,947 4,169 Credits and payments** (2,803) (307) (25) (21)
Deferred revenue (1)
421 374 Balance as at March 31, 2024 288 102 19 35
Advance from customers 1,562 1,061
Others 631 603 Balance as at April 01, 2024 288 102 19 35
13,190 11,437 Current provisions relating to sales during the year(1) 2,720 253 23 34
Provisions and adjustments relating to sales in prior -* - - -
(1)
Refer note 2.14 for details of deferred revenue.
years*
Credits and payments** (2,665) (252) (29) (27)
2.14 Revenue from contracts with customers and trade receivables
Revenue from contracts with customers: Balance as at March 31, 2025 343 103 13 42

For the year ended For the year ended * Currently, the Company does not separately track provisions and adjustments, in each case to the extent relating to prior years for
Particulars
March 31, 2025 March 31, 2024 chargebacks. However, the adjustments are expected to be non-material. The volumes used to calculate the closing balance of chargebacks
Sales 316,320 271,396 represent approximately 1.0 to 1.4 months equivalent of sales, which corresponds to the pending chargeback claims yet to be processed.
Service income 5,426 5,655 **Currently, the Company does not separately track the credits and payments, in each case to the extent relating to prior years for chargebacks,
License fees(1) 3,789 2,113 rebates, Medicaid payments or refund liability.

325,535 279,164
(1)
Chargebacks provisions and payments for the year ended March 31, 2025 were each lower as compared to the year ended March 31,
2024, primarily as a result of reduction in the invoice price to wholesalers for few of the Company’s major products. This was offset to some
extent due to higher pricing rates on account of reductions in the contract prices through which the product is resold in the retail part of the
(1)
During the year ended March 31, 2025, the license fees includes an amount of `1,266 (U.S.$15) as a milestone payment received upon supply chain for certain of the Company’s products.
U.S. FDA approval of DFD 29, in accordance with the license and collaboration agreement dated June 29, 2021 with Journey Medical
Corporation. This transaction pertains to the Company’s Others segment;
(2)
The Company’s overall provision for refund liability as of March 31, 2025 relating to the Company’s North America Generics business was
U.S.$42, compared to a liability of U.S.$35 as of March 31, 2024. The refund liability created for new product launches and volume growth,
were off-set by the reductions in the contract prices and by product mix changes
Analysis of revenues by segments:
The following table shows the analysis of revenues (excluding other operating income) by segments: The estimates of “gross-to-net” adjustments for the Company’s operations in India and other countries outside of the United States relate mainly
to refund liability in all such operations, and certain rebates to healthcare insurance providers are specific to the Company’s German operations.
The pattern of such refund liability is generally consistent with the Company’s gross sales. In Germany, the rebates to healthcare insurance
For the year ended For the year ended
Particulars providers mentioned above are contractually fixed in nature and do not involve significant estimations by the Company.
March 31, 2025 March 31, 2024
Global Generics 289,552 245,453
PSAI 33,846 29,801
Others 2,137 3,910
325,535 279,164

Refer to Note 2.26 (“Segment reporting”) for details on revenues by therapeutic area, and revenues by geography.

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.14 Revenue from contracts with customers and trade receivables (continued) 2.15 Other operating income
Details of refund liabilities:
For the year ended For the year ended
Particulars
For the year ended For the year ended March 31, 2025 March 31, 2024
Particulars
March 31, 2025 March 31, 2024 Sale of spent chemicals 437 489
Balance at the beginning of the year 4,579 4,716 Scrap sales 323 338
Provision made during the year, net of reversals 4,784 3,321 Miscellaneous income, net 144 120

Provision used during the year (4,129) (3,502) 904 947

Effect of changes in foreign exchange rates 63 44

Balance at end of the year 5,297 4,579
2.16 Other income
Current 5,297 4,579 For the year ended For the year ended
Particulars
Non-current - - March 31, 2025 March 31, 2024
5,297 4,579 Interest income 2,677 2,278
Fair value gain on financial instruments measured at fair value through profit or loss(1) 3,554 3,149
Details of contract asset: Foreign exchange gain, net 1,322 274
Profit on disposal of property, plant and equipment and other intangible assets,net (2)
1,512 900
As mentioned in the accounting policies for refund liability set forth in note 1.3 (n) of these consolidated financial statements, the
Company recognises an asset, (i.e., the right to the returned goods), which is included in inventories for the products expected to Miscellaneous income, net(3) 1,908 2,342
be returned. The Company initially measures this asset at the former carrying amount of the inventory, less any expected costs 10,973 8,943
to recover the goods, including any potential decreases in the value of the returned goods. Along with re-measuring the refund (1) Total Net gains on fair value changes includes net realised gain on sale of investments of `3,203 (March 31, 2024: `994)
liability at the end of each reporting period, the Company updates the measurement of the asset recorded for any revisions to its
(2) In the year ended March 31, 2025, profit on disposal of property, plant and equipment and other intangible assets, net includes cumulative
expected level of returns, as well as any additional decreases in the value of the returned products. amount of foreign exchange gain of ` 1,493, reclassed from the foreign currency translation reserve, and a loss of ` 52 due to turnaround
fees paid upon divestment of the membership interest in the subsidiary “Dr. Reddy’s Laboratories Louisiana LLC”.
As on March 31, 2025 and March 31, 2024, the Company had ` 51 and ` 48, respectively, as contract assets representing the
In addition to the above, in connection with this divestment the Company also has recognized an amount of ` 293, primarily comprising
right to returned goods. severance payments to employees in the consolidated profit or loss account. This transaction pertains to the Company’s Global
Generics Segment.
Details of contract liabilities:
(3) Miscellaneous income, net for the year ended March 31, 2024 includes:
As at As at `984 recognized pursuant to a settlement of product related litigation by the Company and its affiliates in the United Kingdom; and `540

Particulars recognized pursuant to a settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by
March 31, 2025 March 31, 2024
the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in
Advance from customers 1,562 1,061 regard to the Company’s ANDS for a generic version of Zytiga® (Abiraterone).
1,562 1,061
2.17 Changes in inventories of finished goods, work-in-progress and stock-in-trade :
Details of deferred revenue:
For the year ended For the year ended
Tabulated below is the reconciliation of deferred revenue for the years ended March 31, 2025 and March 31, 2024: Particulars
March 31, 2025 March 31, 2024
Opening
For the year ended For the year ended
Particulars Work-in-progress 14,222 11,698
March 31, 2025 March 31, 2024
Finished goods 19,869 13,617
Balance at the beginning of the year 1,567 2,367
Stock-in-trade 5,382 39,473 7,353 32,668
Revenue recognised during the year (1,799) (1,768)
Milestone received during the year 1,815 968 Closing
Balance at end of the year 1,583 1,567 Work-in-progress 16,525 14,222
Current 421 374 Finished goods 21,462 19,869
Non-current 1,162 1,193 Stock-in-trade 6,933 44,920 5,382 39,473
(Increase)/Decrease in inventory (5,447) (6,805)
1,583 1,567

During the year ended March 31, 2025 and March 31, 2024, an amount of ` 3,331 and ` 4,232 representing government grants
has been accounted for as a reduction from cost of material consumed respectively.

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Integrated Annual Report FY 2024-25 Corporate Overview Strategic Review Statutory Reports Financial Statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in Indian Rupees millions, except share data and where otherwise stated) (All amounts in Indian Rupees millions, except share data and where otherwise stated)

2.18 Employee benefits expense 2.21 Other expenses (continued)

For the year ended For the year ended For the year ended For the year ended
Particulars Particulars
March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024
Salaries, wages and bonus 45,442 41,250 Rent 543 405
Contribution to provident and other funds 4,507 3,974 Rates and taxes 2,051 1,468
Staff welfare expenses 5,055 4,256
Corporate social responsibility(1) 793 596
Share-based payment expenses 796 821
Donations (2)
478 343
55,800 50,301
Allowance for credit losses, net (Refer note 2.7 B) 159 242

2.19 Depreciation and amortisation expense Allowance for doubtful advances, net 2 33
Non-Executive Directors’ remuneration 144 143
For the year ended For the year ended
Particulars Auditors’ remuneration (Refer note 2.23) 45 39
March 31, 2025 March 31, 2024
Depreciation of property, plant and equipment 10,484 9,560 Other general expenses 3,624 3,861

Amortisation of other intangible assets 6,553 5,140 83,676 68,389

17,037 14,700
(1)
Details of corporate social responsibility expenditure in accordance with section 135 of the Companies Act, 2013:
2.20 Finance costs For the year ended For the year ended
Particulars
March 31, 2025 March 31, 2024
For the year ended For the year ended
Particulars i) Amount required to be spent by the company during the year 793 596
March 31, 2025 March 31, 2024
Interest on long-term borrowings 287 226 ii) Amount required to be set off for the financial year, if any - -
Interest on lease liabilities 391 256 iii) Total CSR obligation for the financial year 793 596
Interest on other borrowings 2,151 1,229 iv) Amount of expenditure incurred
2,829 1,711 (a) Construction/acquisition of any asset 2 21
(b) On purposes other than (a) above 743 578
2.21 Other expenses 745 599
v) Shortfall at the end of the year** 50 0*
For the year ended For the year ended
Particulars vi) Total of previous years shortfall - 5
March 31, 2025 March 31, 2024
Consumption of stores, spares and other materials 12,263 9,541 vii) Reason for shortfall Pertains to ongoing Pertains to ongoing
projects projects
Clinical trials and other research and development expenses 7,695 5,822
viii) Nature of CSR activities Environmental Sustainability, promoting
Advertisements 3,346 2,721
education, healthcare, livelihood
Commission on sales 441 363 enhancement projects, and rural
development projects
Carriage outward 7,569 5,468
ix) Details of related party transactions, e.g.,contribution to a trust controlled by the company in 626 493
Communication expenses 1,566 1,207
relation to CSR expenditure as per relevant Accounting Standard(1)
Other selling expenses 17,899 12,723 x) Where a provision is made with respect to a liability incurred by entering into a contractual NA NA
Legal and professional 9,363 8,545 obligation, the movements in the provision
Power and fuel 5,625 5,339
(1)
Refer note 2.25 for Contributions towards social development.
Repairs and maintenance
* Rounded off to miillion
Buildings 420 456
** Total amount unspent for the year ended March 31, 2025 ` 50 has been transferred to Unspent CSR Account on April 25, 2025.
Plant and equipment 1,757 1,608 (2)
Donations for the year ended March 31, 2025 include Political contributions amounting to ` 350 made to Prudent Electoral Trust.
Others 3,497 3,445 For the year ended March 31, 2024, political contributions amounting to ` 310 were made by the Company through electoral bonds
Insurance 1,073 1,047 prior to the Hon’ble Supreme Court judgement pronounced on February 15, 2024 in relation to reinstatement of section 182 of the
Companies Act, 2013.
Travel and conveyance 3,323 2,973

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