Meta

morphosis
Biocon 5.0

ANNUAL REPORT 2022

Meta
morphosis
The metaverse, which will encompass
a set of interconnected virtual worlds,
is going to radically transform every
aspect of the human experience.
This collective vision of the future, where
digital innovation and human interaction
intersects, presents an immense innovation
opportunity for the healthcare sector. The
convergence of powerful technological
platforms will give birth to disruptive new
healthcare ecosystems with the potential
to lower costs, widen access and vastly
improve patient outcomes.

Biocon 5.0
With the metaverse poised to reshape the world, enterprises will
need to undergo the kind of metamorphosis that prepares them
to thrive in this brave new future.

This organizational metamorphosis will be multi-dimensional,

from acquiring and integrating new skills to creating a culture of
continuous innovation, from achieving operational excellence to
increasing risk taking agility, from reimagining business models
to digital reinvention. The focus of organizational metamorphosis
will be on ensuring sustainable performance across operational,
financial, environmental, societal, governance and humanitarian
facets of our enterprise.

Biocon is an organization that thrives on change. Since our

foundation in 1978, we have witnessed a transformational event
every decade, enabling us to expand our business and unlock
value across segments. From our founding business of enzymes,
we gradually evolved into a company making fermentation-based
small molecule generics, followed by a rapid metamorphosis into
a diversified biopharmaceuticals group with businesses spanning
bulk drugs and finished formulations at our Generics vertical,
novel biologics and biosimilars at Biocon Biologics, and research
services at Syngene.

FY22 marks the beginning of a process of accelerated

transformation that will not only take us closer to patients
but also steer us into new growth paths. It heralds the
emergence of Biocon 5.0 – a technology-enabled, future-
ready biopharmaceuticals leader and a well-recognized,
global brand, touching a billion lives.
The Emergence of
Biocon 5.0

Biocon 3.0
Working Towards
Health Equity

Biocon 2.0
Evolving from Enzymes
to Research Services to
Biopharmaceuticals
Biocon 1.0
Innovating Enzyme
Technologies

02 | Annual Report 2022

 Biocon Limited

Biocon 5.0
Building a Company
of the Future

Biocon 4.0
Building Scale for
Global Impact

Metamorphosis | 03
 Biocon 1.0
Innovating Enzyme
Technologies

Biocon started in 1978 as

a joint venture with an
Irish biotech company to
manufacture and export
enzymes for the brewing
industry globally through
its partner.
Subsequently, we developed a solid-state fermentation
technology for producing novel bio-enzymes for global
customers in the food and pharmaceutical industries.
Our focus on innovation led us to develop PlaFractor
technology using a unique bioreactor which allowed us to
acquire our first patent. We progressed to develop other
proprietary fermentation technologies, such as a Pichia
pastoris yeast based expression system, for producing a
range of specialty enzymes. These enzymes were a new
technological intervention to replace polluting chemical
processes with eco-friendly enzymatic bio-processes in
textiles, paper, leather and starch processing industries. In
BIOCON WAS
1989, Unilever Plc acquired our Irish partners and made
LARGELY AN
Biocon India a part of the Unilever system, allowing us
EXPORT-DRIVEN
to professionalize rapidly by adopting international best
ENZYMES COMPANY
practices. The association with this global conglomerate
SUPPLYING TO
enabled us to build world-class manufacturing capabilities
CUSTOMERS
and a strong quality culture. We also learnt the nuances
WORLDWIDE.
of building intellectual property. We became the first life
sciences company in India to get the ISO 9001 Certification
from RWTUV, Germany in 1993. Biocon in its first avatar
was an export-driven enzymes company supplying to
customers worldwide.

04 | Annual Report 2022

 Biocon Limited

Biocon 2.0
Evolving from Enzymes
to Research Services to
Biopharmaceuticals

Biocon had attained

leadership in a variety
of specialty enzymes by
the Nineties.
As the enzymes business grew steadily, we explored the
opportunity of starting another business that would
emulate the success of India’s information technology (IT)
services model. We set up a new subsidiary, Syngene, as
a ’pure play‘ research services company catering to the
R&D needs of the global pharmaceutical industry. We
then applied our recombinant technologies for enzymes
to biopharmaceuticals, starting with our proprietary fungal
solid-state fermentation technology to produce statins.
We used our microbial fermentation platforms to develop
immunosuppressants and harnessed our proprietary yeast-
based platform to develop the world’s first Pichia pastoris-
derived recombinant human Insulin. This heralded our
entry into biopharmaceuticals. Going beyond insulins,
we ventured into developing monoclonal antibodies. The
combination of research services and biopharmaceuticals
made Biocon a unique and diversified biotechnology
GOING BEYOND
enterprise.
INSULINS, WE VENTURED
INTO DEVELOPING
MONOCLONAL
ANTIBODIES.

Metamorphosis | 05
 Biocon 3.0
Working Towards
Health Equity

As early movers in the domain of

biologics, we realized that patients
in most of the developing world
could not afford these advanced
therapeutics.
This catalyzed our early entry into biosimilars. We wanted to bring in
competition for expensive innovator biologics through our biosimilars for
diabetes and cancer. However, the long gestation period for development
and the capital intensity of creating new capacity for biosimilars entailed
effective management of scientific and regulatory uncertainty and financial
risk. To fuel our mission, we unlocked value through an IPO in 2004 and
divested our enzymes business in 2007. To bring in complementary skills
and experience as well as share risks and rewards, we entered into a global
partnership with Mylan (now Viatris) for a range of biosimilar antibodies
and insulin analogs. Biocon was aligned to the global imperative of driving
greater health equity through its diversified and differentiated pipeline of
fermentation-derived complex generics, biosimilars that included insulins &
monoclonal antibodies, and novel biologics.

TO FUEL OUR
MISSION, WE
UNLOCKED VALUE
THROUGH AN IPO IN
2004 AND DIVESTED
OUR ENZYMES
BUSINESS IN 2007.

06 | Annual Report 2022

 Biocon Limited

Biocon 4.0
Building Scale for
Global Impact

To benefit from our first-mover

advantage, we embarked on
building global scale and credibility.
We invested in cutting-edge R&D and commercial scale, globally compliant
manufacturing facilities across diverse technology platforms spanning
insulins, monoclonal antibodies and conjugated recombinant proteins.
We established global credibility as a serious biosimilars player through
several ground-breaking achievements, starting with the Indian approval
for the world’s first bTrastuzumab in 2014 and the Japanese approval for
bGlargine in 2016. We were the first in the world to obtain U.S. approvals
for bTrastuzumab in 2017 and bPegfilgrastim in 2018. Our investments
in building global scale have led us to rank among the world’s Top 15
biomanufacturing companies. We are among the leading insulin producers
worldwide and have one of the largest antibodies manufacturing capacities
in South Asia. Our Generics business forward integrated into formulations
for our differentiated APIs to capture a bigger share of the value through
a direct commercial presence in U.S. and Europe. Syngene’s emergence as
India’s leading contract development and manufacturing company (CDMO)
triggered its successful public listing in 2015.

OUR INVESTMENTS
IN BUILDING GLOBAL
SCALE HAVE LED US
TO RANK AMONG
THE WORLD’S TOP 15
BIOMANUFACTURING
COMPANIES.

Metamorphosis | 07
 Biocon 5.0
Building a Company
of the Future

Having emerged as one of the

leading global biopharmaceutical
companies with consolidated
revenues of USD 1.1 billion and
a ~15,000-strong workforce,
we have started building an
organization of the future.
08 | Annual Report 2022
 Biocon Limited

We are building Biocon into an innovative and trustworthy global

brand. We are leveraging our scale and cost advantages to gain
world leadership. We are creating a business with impeccable quality
compliance, world-class ethics and a robust corporate governance
structure. We are harnessing digital and data analytics to get closer to
patients, as well as reach a larger patient population. Each of our three
business segments, Generics, Biosimilars and Research Services, is well
positioned for future growth.

The acquisition of Viatris’ biosimilars business by our subsidiary Biocon

Biologics will create a fully, vertically integrated biosimilars company
with a direct commercial presence in the developed and emerging
markets. The strategic alliance with Serum Institute Life Sciences
provides us an ‘asset-light’ and accelerated entry into vaccines. These
strategic developments will catapult us to a higher growth orbit,
setting us up for significant value unlocking through Biocon Biologics’
future IPO.

Our Generics business is scripting the next leg of its growth story
through portfolio and geographical expansions, capacity additions,
improved cost competitiveness and operational excellence.

Syngene is moving beyond a traditional research services outsourcing

model expediting innovation for its customers towards true end-to-end
discovery, development and manufacturing collaborations. It is building
expertise in immuno-oncology, CAR-T, mRNA and small interfering RNA
(siRNA) platforms for researching next-generation therapies.

IN OUR BIOCON 5.0 AVATAR, WE ENDEAVOR TO FOCUS ON

CONSCIOUS CAPITALISM, ENVIRONMENTAL STEWARDSHIP, DIVERSITY,
EQUITY & INCLUSION, COMPLIANCE & GOVERNANCE AND PATIENT-
CENTRICITY. WE ARE BUILDING A TECHNOLOGY-LED, ESG-CONSCIOUS
COMPANY THAT WILL CREATE EXPONENTIAL AND ENDURING VALUE
FOR ALL OUR STAKEHOLDERS WHILE IMPACTING HUMANITY IN
PROFOUND WAYS.

Metamorphosis | 09
 Contents
Corporate Overview
12 Chairperson's Message
20 Biocon: CEO's Message
28 Biocon Biologics: MD's Message
36 Q&A with the CFO
40 Financial Highlights
43 Board of Directors
50 Scientific Advisory Board
Business Segments Review
52 A Year of Transformative Developments
55 Our Generics Business
63 
Our Novel Biologics Business
65 Our Biosimilars Business:
Biocon Biologics
69 
Deputy CEO's Message
87 
Our Research Services Business:
Syngene

Corporate Social Responsibility

96 Biocon Foundation
99 Biocon Academy

Statutory Reports
100 Corporate Information
102 Board’s Report
134 Management Discussion & Analysis
161 Corporate Governance Report
*** 
Business Responsibility &
Sustainability Report

Financial Statements
183 Standalone Financial Statements
249 Consolidated Financial Statements

*** A separate report 'TransformAction', encompassing Scan this QR code Scan this QR code
Business Responsibility & Sustainability Report (BRSR) and to download the to download the
Environmental, Social & Governance (ESG) Report, is being ESG Report. Annual Report.
released as a supplement to Annual Report 2022.

10 | Annual Report 2022

 Biocon Limited

FY22 at a Glance

Geographic Distribution

17%
Revenue EBITDA Margin R&D Spend

83,967 26% 7,105

E Million E Million

83%

International Domestic

Profit for the year* EPS Employees

6,484 5.44 ~15,000
E Million E

* Includes exceptional items

Business Segment Revenue#

Business Revenue Mix

Generics Biosimilars Research Services 31%

28%

23,409 34,643 26,042

E Million E Million E Million

41%

Generics Biosimilars
#
Includes inter-segment revenue Research Services

Metamorphosis | 11
CHAIRPERSON’S
MESSAGE
Kiran Mazumdar-Shaw
Executive Chairperson
Biocon Limited &
Biocon Biologics Limited

12 | Annual Report 2022

 Biocon Limited

Metamorphosis:
Biocon 5.0
Dear Shareholders,
Biocon’s pioneering journey of over four
decades in biotechnology has an underlying
EACH OF OUR
theme of metamorphosis. From enzymes to BUSINESSES IS UNIQUELY
biopharmaceuticals, from research services to DIFFERENTIATED AND HAS
integrated drug development and from active ATTAINED A LEADERSHIP
PROFILE THAT PREPARES
pharmaceutical ingredients (APIs) to finished US FOR AN EXCITING
formulations, the evolution has sustained and FUTURE.
is now accelerating to an inflection point of
transformational advancement. Biocon 5.0 denotes
our fifth decade which is poised for breakthrough
growth derived from two decades of investing
in advanced scientific research and global-scale
bio-manufacturing. Each of our businesses is uniquely
differentiated and has attained a leadership profile
that prepares us for an exciting future.
Our endeavor to build global health equity through affordable access to
essential and lifesaving therapeutics has brought in a patient-centric focus
in all that we measure. From a fledgling biotech company in 1978, we are
today among the largest in Asia with ~15,000* employees and consolidated
revenues of USD 1.1 billion.

Biocon is exclusively positioned with three distinctive and diverse businesses

that balance the headwinds of one business with tailwinds in others. Pricing
pressure on generics, for example, is mitigated with preferential pricing both
from contract manufacturing and market exclusivity.

Our relentless strategic intent to stand out and stand apart through research
and innovation has steered us into new growth paths that include a mega
acquisition and multiple new investments that will generate both inorganic
and organic growth momentum in the decade ahead.

Metamorphosis | 13
A Transformative Acquisition
Our landmark decision to acquire the global biosimilars business of our long- THE VIATRIS DEAL IS GOING
term partner Viatris for USD 3.335 billion in cash and stock, is a transformational TO BE HIGHLY VALUE
inflection point that steers us into accelerated, inorganic business expansion. ACCRETIVE TO BOTH
BIOCON AND BIOCON
This game-changing transaction will create a world leader in a space that is BIOLOGICS SHAREHOLDERS.
extremely attractive for investors. Biologic brands worth over USD 70 billion^
will lose exclusivity over the next five years, presenting multiple new
opportunities for the biosimilars sector.

This acquisition by Biocon Biologics will enable the Company to seamlessly

move from the current collaboration model to full ownership of Viatris’ rights
in partnered and in-licensed biosimilars assets, allowing recognition of 100%
of revenues and profits. Furthermore, it will enable full vertical integration
across the biosimilars value chain from lab to market and take us closer to
patients, payors and healthcare providers in developed and emerging markets.

The deal is a strategic fit for Biocon Biologics and valued fairly. By giving us
visibility on the growth trajectory of our Biosimilars portfolio over the next
decade, this deal is going to be highly value accretive to both Biocon and
Biocon Biologics shareholders. Viatris’ biosimilar business is expected to
generate over USD 1 billion in revenue in calendar year 2023.

Foraying into Vaccines and Infectious Diseases

Biocon’s quest to impact global healthcare has steered us towards a strategic
expansion into adjacencies such as vaccines.

Biocon Biologics has entered into an alliance with Serum Institute Life Sciences
(SILS) to join the effort of addressing the inequitable access to vaccines.

We expect a very attractive return on investment from this strategic transaction.

Strong Biosimilars Business Performance

Prudent investments over the years in advanced R&D and global manufacturing
scale have led Biocon Biologics to build a unique biosimilars portfolio
THE HISTORIC APPROVAL
comprising basal and rapid acting insulins, as well as antibodies for cancer
OF THE WORLD’S FIRST
and inflammatory diseases.
INTERCHANGEABLE
BIOSIMILAR, OUR
The performance of our portfolio of commercialized biosimilars in both bGLARGINE, IN THE U.S.
developed and emerging markets yielded a 24% growth in our Biosimilars WAS A KEY HIGHLIGHT
business revenues this year. OF FY22.

The highlight of the year was the historic approval of the world’s first
interchangeable biosimilar, our bGlargine, in the U.S. The launch of our
interchangeable bGlargine in the U.S. by our partner Viatris is in line with our

^IQVIA 2021

14 | Annual Report 2022

 Biocon Limited

aspiration to provide our biosimilar insulins to ‘one in five’ insulin-dependent

people with diabetes, globally. Post this launch, the market share of our
OUR REPURPOSED NOVEL
bGlargine in the U.S. has moved up from a low single-digit share last year to
BIOLOGIC ALZUMAb-L
a double-digit market share in March 2022. (ITOLIZUMAB) HAS
BENEFITED OVER 40,000
As we commemorate 100 years of the discovery of Insulin, we are positioning COVID-19 PATIENTS SO FAR.
ourselves to build global leadership through unlocking equitable access to
insulin and meeting varied patient needs through our comprehensive portfolio.

We have also focused on best-in-class therapies for cancer patients

worldwide through our biosimilars such as bTrastuzumab, bPegfilgrastim and
bBevacizumab. Our bTrastuzumab, which was the first to receive U.S. FDA
regulatory approval in the world, continued to witness good demand in both
developed and emerging markets. We commercialized our bBevacizumab in
selected European markets during the year to bolster our oncology franchise.

Saving Lives During the Pandemic

At the height of the pandemic, we were able to realize the potential of bio-
therapeutics in the fight against COVID-19 induced cytokine storm. Our
repurposed novel biologic ALZUMAb-L (Itolizumab) has benefited over 40,000
COVID-19 patients so far.

Good Progress in Generic Formulations

Our investments in our Generics business have translated into new DMF and
ANDA filings as well as approvals globally, which led to our first ‘Day 1’ launch
THE GENERICS BUSINESS
in the U.S. for generic Everolimus 10 mg tablets. We also have made steady
MARKED ITS FIRST ‘DAY 1’
progress in establishing a strong global footprint for our Generics business LAUNCH IN THE U.S. WITH
during the year. THE COMMERCIALIZATION
OF GENERIC EVEROLIMUS
We continue to build a strong pipeline of niche formulations such as 10 MG TABLETS.
injectables, as well as peptides and potent APIs. A key element of our
investment is a large greenfield fermentation-based manufacturing plant,
largely for immunosuppressants, in the Visakhapatnam SEZ that will be
operational in FY23.

We believe our API business stands to benefit from the ‘China Plus One’
strategy at a time when pharma MNCs are trying to diversify their supply
chains to include sourcing from India to mitigate their dependence on China.

A Strong Year for Research Services

Our Research Services business, Syngene, which delivered a revenue growth
of 19%, is well poised to capture opportunities arising from the growing
global demand for CRO and CDMO services through its offering of integrated
research, development and manufacturing services. Syngene is leveraging
its existing relationships to provide forward integration on the discovery and

Metamorphosis | 15
development continuum by catering to its clients’ requirements for early-
stage, late-stage and commercial launch supplies.
OUR RECENT ENTRY IN THE
DJSI EMERGING MARKETS
Syngene extended its long-standing research collaboration with Amgen this
INDEX, WHERE WE
year. These contract extensions confirm the stability of the relationship with
ACHIEVED A 93rd PERCENTILE
both key clients and provide a very clear perspective on the future of Syngene’s POSITION WITH A TOTAL
Dedicated Centers. SUSTAINABILITY SCORE OF
45, IS A TESTIMONY TO
To capture a higher share of biologics manufacturing opportunities, Syngene OUR RESPONSIBLE AND
is also investing in expanding both microbial and mammalian manufacturing SUSTAINABLE BUSINESS
capacities. PRACTICES.

Embedding ESG at the Core of our Business

At Biocon Group, our key priorities of ‘patient centricity’ and ‘access to all’
drive our strategy and the way we operate. Our philosophy of ensuring
health equity resonates with our Environmental, Social and Governance
(ESG) aspirations, which have assumed a greater prominence in our business
objectives. By serving patients, protecting the environment and promoting
business integrity, we are reinforcing our commitment to building a sustainable
future. Our recent entry in the prestigious Dow Jones Sustainability Index
(DJSI) Emerging Markets Index, where we achieved a 93rd percentile position
with a Total Sustainability Score of 45, is a testimony to our responsible and
sustainable business practices.

We were also certified by Great Place to Work® India as a Workplace

with Inclusive Practices, acknowledging our investment in our people and
our inclusive culture. We are refining our policies and increasing career
opportunities for women to improve gender diversity at the Group, where
women currently constitute 21% of our workforce.

As a Group, we believe that health equity is synergistic with restoring the WE ACHIEVED 680,000
ecological balance. This belief is driving us in continuously identifying LITERS OF INCREMENTAL
opportunities to increase the share of renewables in our energy mix, WATER SAVINGS PER
improving energy efficiency, innovating to drive productivity across our value DAY FROM WATER
CONSERVATION INITIATIVES
chain, implementing the principles of a circular economy and adopting digital
ACROSS THE GLOBAL
solutions that minimize inefficiencies. Onsite solar installations and sourcing
MANUFACTURING
of power from renewable sources have increased the share of ‘green power’ OPERATIONS OF BIOCON
to 54%* of our total energy consumption for FY22 across Biocon Group. AND BIOCON BIOLOGICS.
We reduced our total carbon footprint by 186,500* tCO2 during the year.
Through our water conservation initiatives across the global manufacturing
operations of Biocon and Biocon Biologics we achieved 680,000 liters of
incremental water savings per day.

*Biocon Group: Biocon + Biocon Biologics + Syngene

16 | Annual Report 2022

 Biocon Limited

Ensuring Sustainable Social Change

Biocon Group’s corporate philanthropy aims to build resilient solutions that BIOCON FOUNDATION
enable and empower disadvantaged communities to live better. In FY22, we HELPED STRENGTHEN
implemented several initiatives targeted at increasing access to healthcare for HOSPITAL INFRASTRUCTURE
underserved communities, improving the nutritional standing of school-age BY INSTALLING A 2,000-LITER
children, promoting science & technology and sponsoring urban afforestation LIQUID MEDICAL OXYGEN
initiatives. STORAGE TANK AT THE
ANEKAL GENERAL HOSPITAL
Biocon Foundation supported the Government of Karnataka in the IN KARNATAKA.
implementation of its ‘test, treat, track and vaccinate’ strategy at 20
Primary Health Centers across seven districts. We helped strengthen hospital
infrastructure by installing a 2,000-liter Liquid Medical Oxygen (LMO) storage
tank at the Anekal General Hospital in Karnataka. As a part of our healthcare
initiatives, we contributed to the capacity building of frontline health workers
and screened over 4,000 people using the mHealth oral cancer screening tool.

Continuing our partnership with the Akshaya Patra Foundation, we

contributed to raising the nutrition profile of students in over 70 government
schools through the PM Poshan, Mid Day Meal Scheme.

As a part of our environmental outreach program, the Foundation is developing

a second Miyawaki micro-forest in Mangaluru.

The Foundation is funding construction of the proposed Biocon-Hebbagodi

Metro Station. Metro connectivity will reduce traffic congestion in Bengaluru
BIOCON ACADEMY, WHICH
and help lower the environmental impact from vehicular pollution. AIMS TO BUILD THE TALENT
ECOSYSTEM FOR BIOTECH-
As a part of our commitment to strengthen the medical science ecosystem in RELATED SKILLS, SAW OVER
the country, the Foundation signed a memorandum of understanding with the 180 YOUNG LIFE SCIENCES
Indian Institute of Science to contribute funds for the construction of a not- STUDENTS GRADUATE
for-profit, 490-bed multi-specialty hospital and medical school in Bengaluru. THIS YEAR.
This hospital will offer an integrated dual degree MD-PhD program in clinical
research. In recognition of the funding support, the General Medicine Block
will bear the name of Biocon-Syngene.

Our flagship initiative, Biocon Academy, which aims to build the talent
ecosystem for biotech-related skills, saw over 180 young life sciences students
graduate this year.

Metamorphosis | 17
A Technology-Enabled Organization for the Future
The digital transformation journey we embarked on in 2020 was further BIOCON’S CONSOLIDATED
accelerated as we maneuvered through the COVID-19 pandemic. REVENUES GREW 14%
TO `83,967 MILLION FOR
The significant investments we are making in organization-wide digital THE FULL YEAR, LED
transformation initiatives are going to transform the Biocon Group into a data BY BIOSIMILARS AND
and digital-led global biopharmaceuticals organization, spearheading Biocon RESEARCH SERVICES
5.0. Digitalization, we firmly believe, can build higher standards of governance REVENUES INCREASING 24%
and deliver greater levels of trust to all our stakeholders. AND 19%, RESPECTIVELY.

Good Financial Performance

Biocon’s consolidated revenues grew 14% to `83,967 million for the full year,
led by Biosimilars and Research Services revenues increasing 24% and 19%,
respectively. For the year, the Biosimilars business posted revenue of `34,643
million, Generics reported `23,409 million and Research Services turned in
`26,042 million. Our EBITDA increased 14% to `21,829 million for the year,
representing a healthy margin of 26%. Adjusted for licensing, forex, gain on
dilution in Bicara, mark-to-market loss on investments and R&D expense, Core
EBITDA for the year grew 18% to `26,690 million, representing a margin of
32%. Our Net Profit for the year was `6,484 million. Net Profit was impacted
on account of certain exceptional items, mark-to-market losses on investments
and gain on dilution in Bicara. Adjusted for these items, Net Profit grew by
23% for the full year.

Management & Board Updates

We have appointed Naina Lal Kidwai, an accomplished banker and business
leader, as an Additional Director on the Board of Biocon Limited, with effect I WOULD LIKE TO EXPRESS
from April 28, 2022 for a period of three years. We also appointed Dr. MY DEEP APPRECIATION
Eric Mazumdar as a Non-Executive Director to the Board, with effect from AND GRATITUDE TO
November 1, 2021. JOHN SHAW FOR HIS
STEWARDSHIP AND
I would like to express my deep appreciation and gratitude to John Shaw JUDICIOUS GUIDANCE
for his stewardship and judicious guidance as a key member of the Board AS A KEY MEMBER OF
THE BOARD AND THE
and the management team since 1999. He has contributed significantly to
MANAGEMENT TEAM
the transformation of Biocon from a small enzymes company to a globally
SINCE 1999.
recognized biopharmaceutical enterprise. He has played a critical role in
building Biocon, ensuring the highest levels of corporate governance, as well
as contributing to the financial and strategic development of the Group in his
role as Vice Chairman for over two decades.

18 | Annual Report 2022

 Biocon Limited

Dividend
The Company and its Board of Directors acknowledge with deep appreciation, AS WE COME OUT OF THE
the support received from the shareholders during the pandemic over the PANDEMIC WITH A STRONG
last two years. As we come out of the pandemic with a strong financial FINANCIAL PERFORMANCE,
performance, the Board of Directors has recommended a dividend of 10% of THE BOARD OF DIRECTORS
the face value of each share for FY22. HAS RECOMMENDED A
DIVIDEND OF 10% OF FACE
Ushering in Transformative Change VALUE OF EACH SHARE
FOR FY22.
We have demonstrated a clear commitment to the highest standards of
corporate governance as we pursue our purpose and deliver on our promise
to protect patients from both communicable and non-communicable
diseases. We have invested with a clear focus on efficiency and end-to-end
digital transformation, coupled with ambitious targets in exciting new growth
avenues, namely, a comprehensive portfolio of generic formulations, complex
APIs, biosimilars, vaccines and research services.

The year ahead holds tremendous promise for all our business segments.
We expect strong growth from our Biosimilars business on the back of the
strategic transactions with SILS and Viatris, which are progressing towards
various regulatory approvals. We expect these deals to close by the second
half of calendar year 2022.

I would like to appreciate the contribution of our employees, executives and

Boards who have worked tirelessly and passionately throughout the pandemic
to realize our core purpose of serving patients and partners.

I would also like to thank all our shareholders for trusting our uniquely
differentiated Company, over the years. With your unstinted support, we will
continue to make progress towards ushering in transformative change that
will make our world a healthier place.

Thank You.

Yours sincerely,
Sd/-
Kiran Mazumdar-Shaw
Executive Chairperson
May 27, 2022

Metamorphosis | 19
CEO’S
MESSAGE
Siddharth Mittal
Managing Director and
Chief Executive Officer,
Biocon Limited

20 | Annual Report 2022

 Biocon Limited

Facing the
Future Together

Dear Shareholders,
Biocon’s transcendence to a global biopharmaceutical
company, serving millions of patients around the WE ADAPTED WITH
world, has been defined by repeated and purposeful AGILITY TO CHANGED
transformation throughout its four-decade-long PARADIGMS AND
CONTINUED TO
journey. Right from inception, when we started out DELIVER THE BEST
as a manufacturer of enzymes, we have responded POSSIBLE OUTCOMES
to changing market needs and constantly reinvented FOR OUR PATIENTS,
CUSTOMERS, EMPLOYEES,
ourselves to emerge as one of the leading biotech SHAREHOLDERS, AND
companies. SOCIETY AT LARGE.

The last two years brought to the forefront, like never before, the need for
agility, adaptability and transformation, as industry and businesses battled
one of the most challenging periods in recent history. Biocon once again rose
to the challenge, going above and beyond during this period of disruption.
We adapted with agility to changed paradigms and continued to deliver the
best possible outcomes for our patients, customers, employees, shareholders,
and society at large.

While the first half of FY22 brought its share of headwinds, it was a relief to
see the year close on a note of resurgence and optimism.

Let me now discuss the performance of our business verticals during the year.

Generics
Our Generics business remained flat over the previous year, clocking revenues
of `23,409 million for FY22. This muted performance was largely due to
pandemic-related supply and operational challenges earlier in the year, even
as the business battled pricing pressure in various markets and price increases

Metamorphosis | 21
of key raw materials and solvents, which squeezed margins further. Besides
this, travel restrictions that were imposed on account of the pandemic,
OUR STATIN FORMULATIONS
delayed the inspection of our facilities, and consequently, product launches PORTFOLIO IN THE
as well as expansion into some key markets. The curve began to tick upwards U.S., COMPRISING
in the second half of the year on the back of contributions from new product ATORVASTATIN,
launches in the U.S., a resurgence in our API business and the easing of supply SIMVASTATIN AND
chain challenges. ROSUVASTATIN, HELD
ON TO ITS MARKET
You may recall that in last year’s message to you, I had stated that we would SHARE, DESPITE INTENSE
continue to focus on portfolio and geographical expansion, strengthening PRICING PRESSURE.
our development pipeline, expediting our capex projects and accelerating
our digitalization programs. I am happy to inform you that we have made
progress in these areas, the details of which I will now outline for you.

To begin with, our statin formulations portfolio in the U.S., comprising

Atorvastatin, Simvastatin and Rosuvastatin, held on to its market share,
despite intense pricing pressure. We further strengthened our U.S.
formulations portfolio with the launch of Labetalol Hydrochloride tablets
and Esomeprazole Magnesium Delayed-Release capsules early in the year.
Labetalol Hydrochloride is used to treat high blood pressure and helps in the
prevention of cardiovascular complications, while Esomeprazole Magnesium,
a proton pump inhibitor, is indicated in the treatment of gastroesophageal
reflux diseases. This was followed by the key launch of Everolimus tablets,
our vertically integrated complex formulation, which we took to the market
in four strengths of 2.5mg, 5mg, 7.5mg and 10mg, with the 10mg tablet
being a ‘Day-1’ generic launch. Everolimus is a prescription medicine used in
the treatment of certain types of cancers and tumors. We closed the year with
two more launches in the fourth quarter – Posaconazole, an anti-fungal drug,
WITH THE FILING OF 34
and Dorzolamide, an ophthalmic product. DRUG MASTER FILES (DMFs)
GLOBALLY, INCLUDING
During the year, we received approval from the U.S. FDA for our ANDA for
5 IN THE U.S. AND 16
Mycophenolic Acid, which is indicated for the prophylaxis of organ rejection DMF APPROVALS THAT
in adult patients receiving kidney transplants. WE RECEIVED IN THE
U.S., EUROPE AND MoW
In other geographies, we commenced our first Most of the World (MoW)
MARKETS, OUR PORTFOLIO
market supply of Tacrolimus capsules to Mexico, and received our first EXPANSION HOLDS PROMISE
approval for Tacrolimus in Singapore, and for Rosuvastatin and Tacrolimus in FOR THE NEAR FUTURE.
the UAE. We also obtained Marketing Authorization for Everolimus tablets
in the Netherlands and Spain. With the filing of 34 Drug Master Files (DMFs)
globally, including five in the U.S. and 16 DMF approvals that we received in
the U.S., Europe and MoW markets, our portfolio expansion holds promise for
the near future. Our regional expansion efforts got a boost as we concluded a
partnering deal with Tabuk Pharmaceuticals to commercialize select specialty
generic medicines in the Middle East and North Africa. All of this underscores
our commitment to make high-quality, affordable medicines available to
patients who need them around the world.

Quality is at the core of all we do at Biocon. I am, therefore, pleased to

report some key successful inspections that were conducted at our facilities

22 | Annual Report 2022

 Biocon Limited

during the year. In September, the U.S. FDA conducted a Remote Interactive
Evaluation for our oral solid dosage manufacturing facility in Bengaluru,
OUR GREENFIELD
as part of a pre-approval review for previously filed ANDAs. The Medicines IMMUNOSUPPRESSANT API
and Healthcare Products Regulatory Agency (MHRA), U.K., gave our oral MANUFACTURING PROJECT
solid dosage formulations manufacturing facility located at Biocon Park in IN VISAKHAPATNAM,
Bengaluru a certificate of Good Manufacturing Practice (GMP) Compliance ANDHRA PRADESH, IS
based on a remote inspection. We also received a Certificate of Good NEARING COMPLETION,
Distribution Practice (GDP) Compliance of a Wholesale Distributor from the SOON AFTER WHICH
WE WILL COMMENCE
Maltese authorities for the import and marketing of drug products in the
QUALIFICATION AND
European Union. More recently, we received a Compliant rating from Health
VALIDATION.
Canada for our API manufacturing facility in Bengaluru.

These approvals speak of our quality and compliance track record. We

continue to improve our systems and processes through continuous training
to build an all-pervasive culture of quality.

Turning to our capacity expansion projects, while we did encounter

some pandemic-related delays in our greenfield immunosuppressant API
manufacturing project in Visakhapatnam, Andhra Pradesh, I am happy to
report that commissioning is nearing completion, soon after which, we will
commence qualification and validation. During the year, we also repurposed
a few of our existing facilities to add incremental capacities, which will enable
us to meet customer demand. We are also investing in a synthetic API facility
in Hyderabad and an injectable facility in Bengaluru, both of which are
strategically important for our long-term growth.

I am also happy to inform you that the Company has been selected to
participate in the Production Linked Incentive (PLI) scheme announced WE ARE ALSO INVESTING IN
by the Government of India, which will provide financial incentives A SYNTHETIC API FACILITY
linked to investments in manufacturing infrastructure and corresponding IN HYDERABAD AND AN
revenue growth. INJECTABLE FACILITY IN
BENGALURU, BOTH OF
Cognizant of the fact that cost competitiveness is going to be a critical factor WHICH ARE STRATEGICALLY
IMPORTANT FOR OUR
in our success, we undertook several cost improvement projects across the
LONG-TERM GROWTH.
organization, which are at various stages of execution. Many new projects
were also identified to mitigate the impact of rising prices, especially of
solvents and reagents. We also continue our efforts to de-risk the supply
chain, by identifying and developing alternative vendors for materials. Our
energy cost savings too got a fillip as we diversified our renewable energy
sources to include both wind and solar.

Our journey to all pervasive excellence gathered momentum in FY22 with

several digital tools being implemented, including a Quality Management
System, Document Management System and Scientific Data Management
System, among others. We also simplified Standard Operating Procedures
and Batch Manufacturing Records to enhance efficiencies in the system. We
have taken a major step towards digital manufacturing, with our Industry
4.0 standard new facility in Visakhapatnam, which will be equipped with a

Metamorphosis | 23
state-of-the-art Manufacturing Execution System. Excellence is, of course, a
journey, and we will continue to accelerate our progress towards becoming a
IN JULY 2021, BIOCON
Company with a deep, rich and comprehensive culture of quality. BIOLOGICS' bGLARGINE
(SEMGLEE) MADE
Going forward, I believe that the Generics business is well-positioned to
HISTORY AS IT BECAME
grow in FY23, as we focus on accelerating our product pipeline, expediting THE WORLD’S FIRST
our capacity expansion plans, concentrating on cost improvement projects, BIOSIMILAR TO RECEIVE
furthering our regional expansion and sustaining our base business. INTERCHANGEABILITY
APPROVAL FROM
Biosimilars THE U.S. FDA.
In FY22, Biocon Biologics recorded a healthy 24% growth over the previous
year, taking its revenues to `34,643 million, with the most significant growth
driver being interchangeable bGlargine attaining double-digit market share in
the U.S., as well as continued improvement in the market share of some key
existing products.

FY22 was a transformational one in many ways for Biocon Biologics.

In July 2021, Biocon Biologics' bGlargine (Semglee*) made history as it

became the world’s first biosimilar to receive interchangeability approval by
the U.S. FDA. This also paved the way for a preferred formulary status for the
product at two major pharmacy benefit managers in the U.S., Express Scripts
& Prime Therapeutics. Intent upon enhancing its impact on global health,

*Our partner Viatris' brand

24 | Annual Report 2022

 Biocon Limited

Biocon Biologics entered the infectious and non-communicable disease

segments through a strategic alliance with the Serum Institute Life Sciences to OUR NOVEL BIOLOGICS
gain access to 100 million doses of vaccine from their portfolio, with assured DEVELOPMENT PROGRAMS
revenues and related margins. HAVE BEEN PROGRESSING
AT AN ENCOURAGING PACE.
FY22 also saw a transformative milestone for Biocon Biologics with the
acquisition of Viatris’ global biosimilars business, which positions it to become
a fully integrated, world leading, biosimilars enterprise. The acquisition will
significantly strengthen the Company’s position in providing affordable access
to patients through its portfolio in diabetes, oncology, immunology and other
non-communicable diseases.

These strategic moves demonstrate the business’ commitment to creating

long-term shareholder value.

Novel Biologics
Our Novel Biologics development programs have been progressing at an
encouraging pace.

Our partner, Equillium, Inc., initiated a global Phase III clinical study of
Itolizumab in patients with acute graft-versus-host-disease (aGVHD) in March
2022. During the year, the European Medicines Agency’s Committee for
Orphan Medicinal Products granted an orphan medical product designation
to Itolizumab for the treatment of both acute and chronic graft versus host
disease. Itolizumab was also at the forefront of our fight against COVID-19
in India.

Our Boston-based associate, Bicara Therapeutics, continues to make progress

on its lead molecule, BCA101, a bifunctional antibody designed to target a
TGF-ß trap to EGFR-positive tumors. It has successfully established the highest
dose, both as a single agent and in combination with a PD1 inhibitor, with
desired level of safety and tolerability for patients with EGFR-driven advanced
solid tumors. The proof of concept is expected in the second half of 2022.
Bicara also initiated dose expansion cohorts evaluating BCA101 in patients with
head and neck squamous cell carcinoma (HNSCC), squamous cell carcinoma
of the anal canal (SCAC) and cutaneous squamous cell carcinoma (cSCC).

Research Services - Syngene

In FY22, Syngene, our contract research, development and manufacturing
company, delivered revenue growth of 19% to `26,042 million on the back of
sustained growth in all divisions, across small and large molecules.

During the year, Syngene renewed its strategic collaboration with Amgen Inc.
till 2026. The Company also expanded its client base during the year with
particular growth from the small to medium-size biotech sector. All of which
bear testimony to the clients’ confidence in Syngene's capabilities and the
expertise of highly experienced scientists.

Metamorphosis | 25
Syngene remains committed to expanding its research and manufacturing
facilities to accommodate future growth. During the year, the third phase
SYNGENE IS WELL-
of expansion of the laboratory campus in Hyderabad was completed and POSITIONED WITH ITS
continued expansion in Hyderabad and Bengaluru is planned during the CAPABILITIES AND
current year. In Development Services, Syngene continued to enhance its INFRASTRUCTURE TO
capabilities with a new injectable fill finish facility, which is currently under LEVERAGE THE STRONG
qualification and validation. An expansion of the existing mammalian facility MARKET DEMAND FOR
and a new cGMP microbial manufacturing facility were also commissioned THE DEVELOPMENT
AND MANUFACTURE
during the year. The Mangaluru API manufacturing facility is on track to obtain
OF BIOLOGICS.
international regulatory approvals in FY24.

Syngene is well-positioned with its capabilities and infrastructure to leverage

the strong market demand for the development and manufacture of biologics.
The Company remains focused on augmenting capacity utilization to cater to
market demands.

Sustainability
The Company fully recognizes its responsibilities towards the environment,
the planet and society at large. We have a comprehensive Environmental,
Social and Governance (ESG) program in place which ensures that all our

26 | Annual Report 2022

 Biocon Limited

operations comply with global best practices. I am happy to inform you that
during FY22, the Company's ESG efforts and initiatives were recognized at
EACH OF OUR BUSINESS
multiple international forums. Biocon was inducted into the DJSI for Emerging SEGMENTS IS WELL-
Markets with a 93-percentile for the industry sector, placing us amongst the POSITIONED FOR FUTURE
top 15 companies from India to feature in the 2021 listing. We also secured GROWTH ON THE BACK OF
an improved Carbon Disclosure Project (CDP) rating of ‘B’ from ‘C’ earlier as CAPACITY EXPANSIONS,
per the 2021 CDP report. CUSTOMER ACQUISITIONS
AND A ROBUST PIPELINE.
Conclusion
Each of our business segments is well-positioned for future growth on the
back of capacity expansions, customer acquisitions and a robust pipeline, to
address the needs of patients and customers.

I would like to express my appreciation of the Biocon team, who displayed

remarkable resilience and tenacity to stay the course, thus ensuring that we
were well-positioned to seize opportunities that will further our purpose of
providing everyone, everywhere, affordable access to a specialty portfolio of
medicines.

Let me also place on record my gratitude to our shareholders for continuing

to repose your trust in Biocon as we prepare the Company for the next phase
of its growth.

Thank You.
Yours sincerely,

Sd/-
Siddharth Mittal
Managing Director & CEO
Biocon Limited
May 27, 2022

Metamorphosis | 27
MANAGING
DIRECTOR’S
MESSAGE
Dr. Arun Chandavarkar
Managing Director,
Biocon Biologics Limited

28 | Annual Report 2022

 Biocon Limited

A Year of
Transformation

We are living through a time of rapid transformation.

Climate disruption, changing geopolitics,
technological transformation and digital BIOCON BIOLOGICS IS NOW
ADAPTING TO A SWIFTLY
convergence are challenging our fundamental MATURING INDUSTRY,
assumptions about work, the world, and our place WHERE AGENCIES LIKE
in it. The COVID-19 pandemic has made us realize THE U.S. FDA ARE SETTING
PRECEDENTS, SUCH AS
that the next big disruption may just be around DEEMING BIOSIMILARS
the corner. It has also made it clear that dealing TO BE INTERCHANGEABLE
with change requires a strong sense of ownership, WITH THE INNOVATOR
PRODUCTS.
agility of decision-making, process innovations,
operational excellence and forward thinking.

Biocon is no stranger to change. We built our Biosimilars business by effectively

navigating a fast-evolving regulatory landscape, rapid scientific advancement
and accelerated technological progression. Biocon Biologics is now adapting
to a swiftly maturing industry, where agencies like the U.S. FDA are setting
precedents, such as deeming biosimilars to be interchangeable with the
innovator products.

Up until now, we have maneuvered change through shared risk-reward

partnerships that brought in complementary skills and experience, such as
our long-standing, successful global partnership with Viatris for a range of
biosimilar antibodies and insulin analogs.

Metamorphosis | 29
Going forward, Biocon Biologics intends to be a fully, vertically integrated
company supplementing its established capabilities in development, operations
and presence in emerging markets with commercial infrastructure in advanced
markets. We have demonstrated success with a proven track record of multiple
successful biosimilar approvals in U.S., Europe and several other developed
and developing countries. We have created global scale capacities for insulins
and antibodies that meet the most stringent of regulatory norms to support
our near-term growth. Our commercial footprint for biosimilars straddles the
developed and developing countries by leveraging strong regional and global
partnerships.

The tectonic shifts afoot in the global healthcare industry calls for bold and
transformational changes to adapt to the evolving market dynamics, and drive THE ACQUISITION OF
sustainable growth. VIATRIS' BIOSIMILARS
BUSINESS IS UNIQUE AS
A Transformative Acquisition IT BRINGS TOGETHER
THE TWO COMPANIES’
In FY22, Biocon Biologics announced a transformative acquisition of its long-
TEAMS, WHICH HAVE
term partner Viatris’ biosimilars business for USD 3.335 billion in cash and
BEEN COLLABORATING ON
stock. This acquisition, upon closing, will accelerate our strategy to create a COMMON PROJECTS, INTO
fully, vertically integrated company with direct commercial presence in the A SINGLE, INTEGRATED
developed markets. ORGANIZATION.

This acquisition is unique as it brings together the two companies’ teams,

which have been collaborating on common projects, into a single, integrated
organization driven by a common vision and mission.

Through this deal, we intend to integrate Viatris’ biosimilars commercial

infrastructure globally. We will gain from Viatris’ experience on navigating the
formulary positioning, contracting, front end sales, regulatory interface and
distribution in these markets.

As a vertically integrated enterprise, we will be able to drive efficiencies in

the system with quicker decision-making, improved market insights and
common focus across functions. This deal gives us better strategic agility
to improve overall cost of supply chain, capital allocation and distribution,
among others.

30 | Annual Report 2022

 Biocon Limited

Viatris Biosimilars Business Acquisition: Deal Dynamics

Post completion of the transaction, Viatris will receive consideration of up to USD 3.335 billion, including cash
up to USD 2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in Biocon Biologics valued at
USD 1 billion, equivalent to an equity stake of at least 12.9% on a fully diluted basis.

Cash consideration will be distributed over the next few years with USD 2 billion payable on closing of the
transaction and up to USD 335 million as additional payments expected to be paid in 2024. The deferred
considerations include USD 175 million to be paid for the acquisition of Viatris’ rights in its bAflibercept. Viatris
will pay USD 50 million to Biocon Biologics to fund certain capital expenditures.

Cash payment of USD 2 billion will be funded by ~USD 800 million raised through equity infusion in Biocon
Biologics and the remainder will be funded by debt. The equity infusion will see participation from Serum
Institute Life Sciences (SILS), Biocon Limited and other private equity investors.

Our long-standing relationship with Viatris will help us integrate smoothly and rapidly. To ensure seamless
transition and continued service to our patients and partners, Viatris will provide commercial and other
transition services to Biocon Biologics for up to two years.

Entering Vaccines & Infectious Diseases Segment

The COVID-19 pandemic brought home to us the serious threat posed by
viral and other infectious diseases and the role that biologics such as vaccines
and antibodies have in addressing this threat. We had responded to the crisis VACCINES AND ANTIBODIES
FOR INFECTIOUS
by repurposing Biocon’s novel biologic drug, Itolizumab, to treat COVID-19
DISEASE ARE A NATURAL
patients, especially those with moderate to severe Acute Respiratory Distress ADJACENCY TO BIOCON
Syndrome (ARDS). BIOLOGICS’ EXISTING
CAPABILITIES IN BIOLOGICS
Realizing the difference we could make to patient lives, Biocon Biologics FOR NON-COMMUNICABLE
entered into a strategic alliance with SILS this year to make a meaningful DISEASES.
impact in fighting infectious diseases.

Vaccines and antibodies for infectious disease are a natural adjacency to

Biocon Biologics’ existing capabilities in biologics for non-communicable
diseases. The structure of the alliance provides us with an ‘asset-light’ and
accelerated entry into this segment.

Metamorphosis | 31
Together, we believe we can address the needs of patients in various infectious
diseases, including COVID-19.

The companies will complement each other by leveraging each other’s

commercial strengths in existing and new markets. The greater objective is
to address inequitable access both in emerging and developed markets for
lifesaving vaccines and biologics.

Biocon Biologics will have access to the entire portfolio of SILS including
vaccines already commercialized and the ones in development. Additionally,
the partnership will have access to SILS’ current development pipeline to
address unmet needs in other communicable diseases like mosquito-borne
infections.

The 15-year supply arrangement of 100 million vaccine doses annually from THE 15-YEAR SUPPLY
ARRANGEMENT OF
SILS provides Biocon Biologics with an additional assured revenue stream and
100 MILLION VACCINE
associated margins from the second half of FY23. DOSES ANNUALLY FROM
SILS PROVIDES BIOCON
The partnership provides a framework to explore several other opportunities BIOLOGICS WITH AN
that would be value accretive to both our organizations and make a difference ADDITIONAL ASSURED
in the often-overlooked infectious diseases segment. Developing both REVENUE STREAM AND
vaccines and biologics for communicable diseases will provide us long-term ASSOCIATED MARGINS FROM
growth drivers. THE SECOND HALF OF FY23.

Partnering for a COVID-19 Antibody

Furthermore, we partnered with U.S.-based Adagio Therapeutics to bring a
novel monoclonal antibody for the prevention and treatment of COVID-19 to
patients in India and select emerging markets. ADG20 is a novel monoclonal
antibody targeting the spike protein of SARS-CoV-2 and related coronaviruses.
This treatment potentially offers a convenient outpatient administration as a
single intra-muscular injection for both prevention and treatment of COVID-19.

The preliminary results from Phase II / III clinical trials of ADG20 showed that
in the pre-Omicron population, ADG20 administered as a single 300mg intra-
muscular dose met primary endpoints with statistical significance. However,
given the lack of neutralizing activity against the BA.2 variant, Adagio has
paused the submission of an Emergency Use Authorization (EUA) request to
the U.S. FDA.

32 | Annual Report 2022

 Biocon Limited

Historic Interchangeability Approval

Following the landmark commercialization of bGlargine in the U.S. in FY21, WE ARE THE FIRST TO
we marked another milestone by obtaining interchangeable designation from OBTAIN APPROVAL FOR
the U.S. FDA for our bGlargine in FY22. We are the first to obtain approval AN INTERCHANGEABLE
for an interchangeable biosimilar product, Semglee*, in the U.S. This approval BIOSIMILAR PRODUCT,
sets the stage for approvals of our other biosimilars. The interchangeability SEMGLEE, IN THE U.S. THIS
APPROVAL SETS THE STAGE
approval, which allowed substitution of our product for the innovator brand
FOR APPROVALS OF OUR
at the pharmacy counter, demonstrated our scientific, quality and regulatory OTHER BIOSIMILARS.
capabilities. The interchangeability status allowed us to get a preferred
formulary status from some large formularies, which helped us to rapidly
ramp-up market share in the U.S. These developments augur well not only for
the future growth of our business but also for our ability to offer people living
with diabetes in the U.S. more treatment options, rationalize cost of therapy
and generate savings for the overall healthcare system.

*Our partner Viatris' brand

Metamorphosis | 33
Building a Robust Product Portfolio
We continue to invest on research and development to support our biosimilars WE WON A THREE-YEAR
pipeline. We have built a sizeable portfolio of over 20 biosimilar assets, including CONTRACT FOR
some which are unpartnered, that are at various stages of development. This RH-INSULIN IN MALAYSIA,
year, two of our antibodies, bUstekinumab and bDenosumab, entered the VALUED AT ~USD 90
clinical phase, which represents a large part of the overall cost that goes into MILLION.
developing a molecule.

We are developing various presentations of rh-Insulin for the U.S. Our biosimilar
referencing Eli Lilly’s Humulin-R, a short-acting rh-Insulin, demonstrated
equivalence in a pharmacokinetic and pharmacodynamic study published in
the journal, ‘Diabetes, Obesity and Metabolism’, in January 2022.

We exercised the option to acquire Viatris’ rights in bAflibercept, which is an

advanced asset and has the status of ‘first to file’ with the U.S. FDA.

Our second wave of biosimilars will address a market opportunity of ~USD 20

billion in innovator sales to drive growth in the medium-term.

Expanding Insulins Manufacturing Capacity

The investments in manufacturing infrastructure in Malaysia to support our
insulins franchise have given us the capacity to supply our insulins, including
interchangeable bGlargine, to meet patients’ needs in many developed and
emerging countries. We have been expanding access to life-saving insulin
therapy in Malaysia, too. Recently, we won a three-year contract for rh-Insulin
in Malaysia, valued at ~USD 90 million. With sales from Malaysia ramping up, THE BIGGEST DRIVER OF
GROWTH FOR FY22 WAS
our operations there turned profitable in the fourth quarter of FY22.
OUR bGLARGINE IN THE
U.S., WHICH EXPANDED
Encouraged by the demand for our insulins and in anticipation of new
ITS MARKET SHARE
opportunities opening in terms of product approvals and geographic FROM 2% TO 10% IN SIX
expansion, we have initiated the expansion of our facility in Malaysia. We MONTHS DUE TO THE
expect to invest in a phase-wise manner with the investments being within INTERCHANGEABLE STATUS.
the overall USD 100-150 million range for annual capex over three years.

Making a Difference in India

The Branded Formulations India business recorded a 35% growth in FY22.
Whilst our COVID-19 portfolio, including ALZUMAb-L, contributed to our
growth in Q1FY22 during the second wave of the pandemic in India, we
performed well across therapeutic divisions during the rest of the financial year.
We continue to strengthen our patient-centric programs and engagement
initiatives with healthcare professionals. This year, we expanded our insulins
access program to address the needs of young people with Type 1 diabetes
in India in collaboration with the Research Society for the Study of Diabetes
in India (RSSDI).

34 | Annual Report 2022

 Biocon Limited

Robust Financial Performance

Biocon Biologics has delivered strong revenue and profit growth this fiscal. ON THE COMPLETION
Revenues grew by 24% over last year to `34,643 million. The biggest driver OF THE TWO STRATEGIC
of growth for FY22 was our bGlargine in the U.S., which expanded its market TRANSACTIONS, BIOCON
share from 2% to 10% in six months due to the interchangeable status. BIOLOGICS WILL SEE A
Consequently, our revenues moved up from `7,581 million in Q1FY22 to SIGNIFICANT RAMP-UP
IN REVENUES, ENABLING
`9,823 million in Q4FY22. This clearly demonstrates the success that can be
CONTINUED INVESTMENTS
achieved by adopting the right strategy when approaching markets that allow FOR LONG-TERM GROWTH.
a switch from innovator to biosimilar products. Our other products, including
bTrastuzumab and bPegfilgrastim, gained market share or held steady. We
witnessed good growth for our biosimilars in emerging markets too. Our Core
EBITDA margin, which is EBITDA less licensing, forex, mark-to-market loss
on investments and R&D expense, was at 39% versus 36% in FY21. The
improved margins are a reflection of our strong operating performance. The
business delivered EBITDA margins of 29% in FY22.

Stage Set for Long-Term Growth

We expect Biocon Biologics’ earnings momentum to sustain on the back of
strong performance in advanced markets like the U.S., with our bGlargine’s
market share expected to go up to mid-teens by the end of calendar year 2022.
We are awaiting approval for two more products, bAspart and bBevacizumab,
in the U.S. which would add significantly to revenues from this market. WE LOOK FORWARD
TO USHERING IN
FY22 has been a transformational year for Biocon Biologics on account TRANSFORMATIONAL
of the two strategic deals with Viatris and SILS. These transactions, which CHANGE TO GLOBAL
HEALTHCARE THROUGH
are progressing through regulatory approvals, are expected to close by the
OUR AFFORDABLE, HIGH
second half of calendar year 2022. On their closing, Biocon Biologics will see QUALITY BIOLOGICS.
a significant ramp-up in revenues, enabling continued investments for long-
term growth.

At Biocon Biologics, we look forward to leveraging our early successes, robust

business fundamentals, technical excellence, high quality operations and
global scale to usher in transformational change to global healthcare through
our affordable, high quality biologics.

Thank You.

Yours sincerely,

Sd/-
Dr. Arun Chandavarkar
Managing Director
Biocon Biologics Limited
May 27, 2022

Metamorphosis | 35
Q&A WITH
THE CFO

Indranil Sen
Chief Financial Officer,
Biocon Limited

36 | Annual Report 2022

 Biocon Limited

Q1 How will you describe the financial performance of Biocon in

FY22?
A Our total consolidated revenues grew 14% to `83,967 million in FY22 (`73,976
million in FY21). Revenues from the Biosimilars business grew at a strong rate
of 24% to `34,643 million (`28,002 million in FY21), contributing to ~41% of total
consolidated revenues. The Research Services business grew at a healthy rate of 19%
to `26,042 million (`21,843 million in FY21), which accounts for ~31% of total FY22 TOTAL
consolidated revenues. The Generics segment reported revenues of `23,409 million CONSOLIDATED REVENUES
(`23,627 million in FY21), accounting for ~28% of total consolidated revenues. GREW 14% TO `83,967
MILLION.
EBITDA grew 14% to `21,829 million (`19,073 million in FY21), with margins at 26%
(same in FY21). Net Profit was at `6,484 million (`7,405 million in FY21).
The current year’s profitability includes certain non-recurring items such as a stake
dilution gain in Bicara Therapeutics Inc. and mark-to-market loss on investment in
Adagio Therapeutics as well as exceptional items like provisions for export incentives,
impact due to modification in terms of a certain debt instrument and professional fees
towards strategic deals executed in the Biosimilars business.
The profitability last year, i.e. in FY21, included a gain upon Biocon ceding control over
Bicara.
Adjusting for these items, our FY22 EBITDA stood at `21,799 million (`17,476 million),
reflecting a growth in EBITDA of 25%. Core EBITDA Margin, that is, EBITDA margin
further adjusted for licensing, forex and R&D, stood at 32% (31% in FY21). Adjusted
Net Profit stood at `7,190 million, reflecting a growth of 23% over FY21.

Q2 While the Generics business saw a turnaround in the latter

half of the fiscal, the first half of the year was challenging.
What steps have we taken to improve performance of this
business in the coming year?
A The Generics business faced COVID led operational and supply challenges
at the start of the fiscal, which impacted our API manufacturing. The business
saw a turnaround in the second half of the year, driven by new product launches
in the U.S., particularly Everolimus and an uptick in our API business. Pricing NEW PRODUCT LAUNCHES
pressure headwinds in the U.S., higher input costs, particularly solvents and fuel AND ADDITIONAL
as well as higher cost of logistics also impacted profitability. Profit before Tax (PBT) CAPACITIES IN FY23 WILL
margin for the business was slightly lower at ~11% in FY22 as against ~12% in DRIVE GROWTH FOR THE
the previous fiscal. GENERICS SEGMENT.
Looking ahead, new product launches and additional capacities will drive growth
for the Generics business in FY23. While we hope that the supply chain challenges
witnessed last year will not continue in FY23, the business continues to focus
on de-risking its supply chain by developing alternative vendors for critical raw
material or where there is dependence on single vendors.
Another area of focus is operational excellence, which will drive cost efficiencies
through yield and productivity improvement. We believe these will enable us to
counter continued pricing pressure concerns as well as increasing input costs. Last but
not least, we are continuously improving processes through our digitization efforts.

Q3 FY22 has been truly a transformational year for the Biosimilars

business, particularly due to the two strategic deals with
Serum Institute Life Sciences and Viatris. Could you provide more
color on how we plan to fund these transactions? What are your
views on the performance and the outlook for this business?
A The Biosimilars business entered into two strategic partnerships during the
year to expand vertically through the acquisition of Viatris’ biosimilars business, for

Metamorphosis | 37
a consideration of ~USD 3.335 billion and horizontally through the alliance with Serum
Institute Life Sciences (SILS) for a 15% stake in Biocon Biologics Limited (BBL), on a fully
diluted basis.
Of the total consideration for the Viatris deal, USD 2 billion is payable in cash upon
closing of the transaction and up to USD 335 million is a deferred consideration,
expected to be paid in 2024. For the remaining consideration, we will issue Compulsorily
Convertible Preference Shares (CCPS) in BBL valued at USD 1 billion, equivalent to an THE BIOSIMILARS BUSINESS
equity stake of ~12.9% on a fully diluted basis. We have structured this deal optimally WILL BE WELL-POSITIONED
to strike a balance between the debt on our balance sheet and retaining equity in Biocon TO GET SEPARATELY LISTED
Biologics to benefit from the strong potential in this business. Upfront cash payment ON THE BOURSES IN THE
of USD 2 billion will be funded by ~USD 800 million raised through equity infusion in FUTURE TO UNLOCK VALUE
Biocon Biologics and the remainder will be funded by debt. The equity infusion will see FOR ITS SHAREHOLDERS.
participation from SILS, Biocon Limited and other private equity investors.
As far as the FY22 performance is concerned, the segment saw a strong revenue growth
primarily on account of a higher uptake of interchangeable biosimilar insulin glargine
and an improved performance of other products across geographies. The segment also
delivered healthy profitability with EBITDA margins of 29% and Core EBITDA margin
higher at 39%.
The next milestones on this journey of transformation are the consummation of both
the transactions in FY23 upon completion of customary closing conditions and receipt
of regulatory approvals and a seamless integration of the acquired Viatris business with
our Biosimilars segment. Post this, we will continue to receive transitionary services
from Viatris for a period of two years. FY23 will also witness a full year’s benefit of
interchangeability for insulin glargine in the U.S., advancement of the product pipeline
through clinical development and potential approvals for those under review with the
regulators. We will continue to invest in R&D as we advance our biosimilar pipeline,
with two products entering the clinic in FY22. On the back of these achievements, the
Biosimilars business will be well positioned to get separately listed on the bourses in
the future to unlock value for its shareholders. Biocon Limited will continue to hold a
majority stake in BBL after the listing.

Q4 Can you share your views on the performance of the Research

Services segment in FY22 and its outlook going
forward?
A Syngene, our Research Services business, delivered a strong performance
across all its divisions in FY22. Its Dedicated R&D Centers witnessed renewal
of its strategic collaboration with Amgen, Inc. while its Discovery Services saw
several client wins. Syngene continues to expand research, development and
manufacturing capacities and capabilities in being a world-class partner delivering
innovative scientific solutions for its customers. The Research Services business’
growth momentum is expected to continue in FY23.

Q5 Gross R&D investments during the last two years was 13% of
revenues (ex-Syngene). Do you see this trend continuing GROSS R&D EXPENDITURE
going forward? IS EXPECTED TO REMAIN
BETWEEN 12% AND 14%
A Innovation is at the core of our business model. We continue to make
investments in R&D to be able to bring more products into the market in OF REVENUES FOR THE
both Generics and Biosimilars, in line with our commitment to making affordable GENERICS BUSINESS AND
healthcare accessible to all. The R&D investment in Biosimilars will continue BETWEEN 10% AND 15%
to increase as we progress the clinical development of bUstekinumab and FOR THE BIOSIMILARS
bDenosumab and early-stage development of several biosimilar assets. Novel BUSINESS.
Biologics will continue to advance its current programs, particularly, Itolizumab.

38 | Annual Report 2022

 Biocon Limited

Gross R&D expenditure is expected to remain between 12% and 14%

of revenues for the Generics business and between 10% and 15% for the
Biosimilars business.

Q6 Bicara has secured funding from external sources to fund its

development programs. Can you provide an update on the
same and explain the accounting implications of this fund raise?
A In the last quarter of FY22, our associate, Bicara, secured its first round
of funding from external sources since the ceding of control by Biocon, and
continued to raise funds in Q1FY23. We expect the fund raising to complete
by the first half of FY23, at which point Biocon will hold ~50% stake in Bicara.
Stake dilution due to this fund raise has resulted in a gain which is recorded as
‘Other Income’ in the consolidated financial statements.
Further, as part of the fund raise, Biocon converted debt provided earlier to Bicara
to equity. Biocon will continue to consolidate its share of loss from its associate
in the proportion of its holding, capped at the carrying value of its investment.

Q7 Biocon had provided guidance of USD 300 million for capital

expenditure across its three businesses in FY22. What is the CAPEX GUIDANCE FOR
guidance for FY23? FY23 IS ~USD 300-350
MILLION ACROSS THE THREE
A In FY22, we injected much needed capital to expand capacities and BUSINESSES.
capabilities across businesses in line with our guidance. The capex guidance
for FY23 is ~USD 300-350 million across the three businesses. The capex will
be funded through a combination of internal accruals and funds already raised
through private equity investments in Biocon Biologics. This will be further
supplemented by financial incentives granted to us under the Government of
India’s Production Linked Incentive Scheme 2.0 for the Pharmaceutical Sector.
Under the scheme, we expect to receive up to `2500 million over a period of 6
years, linked to investments in manufacturing infrastructure and corresponding
incremental sales of pharmaceutical goods.

Q8 Given the focus on Environment, Social and Governance

(ESG), what initiatives from the CFO’s desk have been taken
to strengthen governance practices this year?

A Sustainable growth has always been a key priority in Biocon, and we are in IN THE SPIRIT OF GOOD
the process of developing a robust framework to strengthen our ESG
GOVERNANCE, WE ARE
practices.
VOLUNTARILY PUBLISHING
In the spirit of good governance, we are voluntarily publishing our first Business OUR FIRST BUSINESS
Responsibility and Sustainability Report this year, in line with the framework RESPONSIBILITY AND
provided by the Securities and Exchange Board of India (SEBI), along with our SUSTAINABILITY REPORT,
first Global Reporting Initiative (GRI) aligned ESG Report, which articulates several GRI-ALIGNED ESG REPORT,
ESG parameters and initiatives undertaken by the Company. OUR TAX POLICY AND OUR
FIRST TAX TRANSPARENCY
We are also publishing our Tax Policy as well as our first Tax Transparency Report
REPORT FOR FY22.
for FY22. Our Tax Policy articulates the strategies, principles and processes
that guide our approach to tax while the Report further talks about our tax
management approaches, in addition to tax related information.
We are also in the process of integrating ESG risks within our overall risk
management framework. We will continue to implement initiatives that will
help maximize value for all our stakeholders through accountability, transparency
and good corporate citizenship.

Metamorphosis | 39
Financial Highlights
Segment-wise Revenue*#

GENERICS (` Million) BIOSIMILARS (` Million)

-1% 24%
2022 23,409 2022 34,643

2021 23,627 2021 28,002

2020 22,070 2020 23,151

2019 17,728 2019 15,169

2018 15,077 2018 7,702

RESEARCH (` Million) OTHER INCOME (` Million)

19% -16%
2022 26,042 2022 2,127

2021 21,843 2021^ 2,545

2020 20,119 2020 1,614

2019 18,256 2019 1,444

2018 14,231 2018 2,062

TOTAL REVENUE (` Million)

14%
2022* 83,967

2021* 73,976

2020 64,619

2019 56,588

2018 43,359

* includes inter-segment revenue

#
Effective April 1, 2020, the Group pursuant to its internal restructuring process has restated segment information for FY21 and FY20
^ includes fair valuation gain of Bicara `1,597 million

40 | Annual Report 2022

 Biocon Limited

PROFIT ^ (` Million) NET WORTH (` Million)

-12% 11%
2022 6,484 2022 84,325

2021 7,405 2021 76,269

2020 7,482 2020 67,058

2019 9,053 2019 60,980

2018 3,724 2018 51,808

TOTAL ASSETS (` Million) CURRENT RATIO

10%
2022 203,940 2022 2.19

2021 185,223 2021 1.81

2020 144,438 2020 1.33

2019 121,924 2019 1.61

2018 99,897 2018 1.94

GROSS R&D SPEND (` Million) DEBT : EQUITY (` Million)

13% Debt Equity

49,040
2022 7,105 2022
43,586 84,325
2021 6,270 2021
26,254 76,269
2020 5,271 2020
24,070 67,058
2019 4,796 2019
22,640 60,980
2018 3,804 2018
51,808

^ includes exceptional items for the year 2019, 2020, 2021 and 2022

Metamorphosis | 41
EPS AND BOOK VALUE PER SHARE# (`) EPS AND DIVIDEND PER SHARE# (`)

7.65
70
64

6.32

6.24
56

5.44
51

7.65
43

6.24

3.10
6.32
5.44

0.50 0.50 0.50

3.10

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022*

Book Value per share EPS

EPS Dividend per share

RETURN ON NET ASSETS^@ (` Million) RETURN ON NET EQUITY^ (` Million)

165,660

80,297
143,122

71,664
16%
10%
64,019
56,394
104,358

50,093

12%
91,539

10%
78,484

7%
8%
7%
5% 5%

4%
9,053

7,482

7,405

6,484
9,053

7,405
7,482

6,484

3,724
3,724

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Profit Net Assets Profit^ Average Equity

Return on Net Assets Return on Net Equity

^
includes exceptional items for the years 2019, 2020, 2021 and 2022
#
2018-2019 are adjusted for bonus issue in 2020
@
Net Assets = Total Assets - Current Liabilities
* Proposed a dividend @ 10% of face value per share

42 | Annual Report 2022

 Biocon Limited

Board of Directors

Catalysts in the Metamorphosis

1. Kiran Mazumdar-Shaw
2. M. Damodaran
10 9 8 7 6 5 4 3
3. Bobby Parikh
4. Naina Lal Kidwai
5. Dr. Vijay Kuchroo
1 2 6. Prof. Ravi Mazumdar
7. Siddharth Mittal
8. Mary Harney
9. Dr. Eric Mazumdar
10. Daniel Bradbury

Metamorphosis | 43
 Professional Experience • Victorian Business • Recipient of Othmer
• First-generation Ambassador, The Gold Medal (2014)
entrepreneur State Govt. of Victoria, • Recipient of Global
• Founded Biocon in 1978 Australia Economy Prize for
• Executive Chairperson, • Signatory, The Giving Business (2014)
Biocon Biologics Pledge • Recognized on ‘Legacies
• Non-Executive • 45+ years of experience 60’ list honoring 60
Kiran Mazumdar-Shaw
Chairperson, Syngene in Biotechnology biopharma pioneers over
Executive Chairperson 60 by EndPoints News
Chairperson of the • Lead Independent Recognitions
Director, Infosys • University of Glasgow
Board of Directors since • Recipient of Padma Shri named their Advanced
inception • Board member, Narayana (1989), Padma Bhushan Research Center after
Year of birth: 1953 Hrudayalaya (2005) John Shaw and Kiran
Nationality: India • Board member, United • Elected Fellow of Royal Mazumdar-Shaw
Breweries Society of Edinburgh to recognize their
• Member, National (RSE) (2022) philanthropic initiatives
Academy of Engineering • Recipient of EY World
(NAE), U.S. Entrepreneur of the Education
• Member, The Advisory Year (2020) and EY • B.Sc. (Zoology Hons.),
Board of The France- Entrepreneur of the Year Bangalore University
India Foundation India Award (2019) • Post-Graduate Diploma,
• Full-term member, MIT • Recipient of Order of Malting and Brewing,
Corporation, U.S. Australia (2020) Ballarat Institute of
Advanced Education,
• Member of the Board of • Recipient of ICMR’s
Melbourne, Australia
Trustees, Memorial Sloan Lifetime Achievement
Kettering Cancer Center, Award for Outstanding • Honorary Doctorates
U.S. Achievement in from several prestigious
Healthcare (2019) universities, including
• Member, Board of
Deakin University,
Trustees, Keck Graduate • Recipient of AWSM
Victoria, Australia;
Institute, U.S. Award for Excellence
Heriot-Watt University,
• Global Alumni (2017)
Edinburgh, UK;
Ambassador, India, • Knight of the National University of Glasgow,
Department of Foreign Order of the French Scotland, UK; University
Affairs and Trade, Legion of Honour (2016) of Abertay, Dundee,
Australia Scotland, UK; Ballarat
University, Australia;
Presidency University,
Kolkata, India; Bennett
University, India.

44 | Annual Report 2022

 Biocon Limited

Professional Experience • Held senior leadership Education

• CFO, Biocon Limited positions in finance, • Certified Public
(2014-2019) including Finance Accountant from
Director of BPO and Colorado, U.S.
• Co-Chairman, CII
IT divisions at the U.S. • Chartered Accountant,
Southern Region –
subsidiary of Xchanging Institute of Chartered
Healthcare & Life
Plc. Accountants of India
Siddharth Mittal Sciences
• 20+ years of global and • B.Com, Symbiosis
Managing Director & CEO • Chairman, CII Southern
diversified experience College of Arts and
Member of the Board of Region Task Force on
in strategic finance and Commerce, Pune
Directors since 2019 Pharmaceuticals
accounting, mergers and
Year of Birth: 1978 • Vice President, Finance acquisitions, taxation and
and Corporate Controller general management
Nationality: India
with Symphony Teleca

Professional Experience o University of Essex, UK • Fellow of the Institute of

• University Research Chair o INRS Electrical and Electronics
Professor, Department of Telecommunications, Engineers (IEEE)
Electrical and Computer Canada • Recipient of several Best
Engineering, University o McGill University, Paper Awards from the
of Waterloo, Canada Canada IEEE and ITC
• On the editorial board of • Distinguished Visiting
Prof. Ravi Mazumdar Professor at IIT Bombay Education
several technical journals
Non-Executive Director • Ph.D., University of
• Previously professor • Adjunct Professor at TIFR,
Member of the Board of California, Los Angeles
in several prestigious Mumbai
Directors since 2000 (UCLA)
universities including:
Recognitions • M.Sc., Imperial College,
Year of Birth: 1955 o Purdue University, U.S.
o Columbia University, • Fellow of the Royal London
Nationality: Canada/OCI
U.S. Statistical Society • B. Tech in Electrical
Engineering, IIT Bombay

Professional Experience Engineering, Machine Education

• Assistant Professor, Learning and Economics • Ph.D., Electrical
Computing & • Developing tools and Engineering and
Mathematical Sciences understanding necessary Computer Science,
and Economics at the for deploying Machine University of California,
California Institute of Learning algorithms in Berkeley
Technology (Caltech) societal-scale systems • B.Sc., Electrical
Dr. Eric Mazumdar
• Simons-Berkeley Engineering and
Non-Executive Director Recognitions
Research Fellow for Computer Science,
Member of the Board of program on Learning in • Simons Institute Massachusetts
Directors since 2021 Games at the Simons Research Fellowship to Institute of Technology,
Year of Birth: 1993 Institute for Theoretical pursue research at the Cambridge, MA
Nationality: UK / OCI Computer Science intersection of machine
• Research focused learning and economics
on intersection of

Metamorphosis | 45
 Professional Experience • On the boards of leading • Chairman, Ministry of
• Former Chairman, Indian corporates as well Finance’s Committee on
Securities and Exchange as on the advisory boards setting up Resolution
Board of India (SEBI) of a few foreign entities Corporation of India
• Former Chairman, Unit • Founder Chairman, • Chairman, MCA’s
Trust of India (UTI) Excellence Enablers Committee on
• Former Chairman, Pvt Ltd, a Corporate Reforming Regulatory
M. Damodaran
Industrial Development Governance advisory firm Environment for Ease of
Lead Independent Director
Bank of India (IDBI) • Founder Chairman, Doing Business
Member of the Board of
• Former Chief Secretary, Indian Institute
Directors since 2016 Education
Government of Tripura of Management,
Year of Birth: 1947 • LLB, University of Delhi
Tiruchirappalli
Nationality: India • Career civil servant from • B.A. (Economics), Loyola
1971 • Chairman, RBI
College, University of
Committee on Customer
• 40+ years of experience Madras
Service in Banks
in financial services &
public sector

Professional Experience • Board Chairman, Castle Recognitions

• Executive Chairman, Biosciences Inc & Biolinq • Recipient of Director of
former CEO and Co- • Member, Advisory the Year Award from
Founder of Equillium Council, Rady School Corporate Directors
Inc., a company of Management, San Forum (2012)
developing products to Diego, U.S. • EY’s Entrepreneur of the
treat severe autoimmune • Life sciences executive Year Finalist (2012)
Daniel Bradbury and inflammatory with over 38 years of
Independent Director disorders Education
experience in creating
Member of the Board of • Managing Member, and implementing • International Executive
Directors since 2013 BioBrit LLC strategies and Program, INSEAD, France
Year of Birth: 1961 • Member, Board of transforming businesses • Diploma in Management
Nationality: U.S. Trustees, Keck Graduate • Former CEO, Amylin Studies, Harrow and
Institute, U.S. Pharmaceuticals, a Ealing Colleges of Higher
leading metabolic Education, UK
• Director, Intercept
Pharmaceuticals and disease company, • Bachelor of Pharmacy,
several private companies acquired by Bristol Myers Nottingham University,
and philanthropic Squibb in 2012 UK
organizations

46 | Annual Report 2022

 Biocon Limited

Professional Experience Recognitions • The Javitz Neuroscience

• Samuel L. Wasserstrom • Dystel Prize for MS Investigator Award,
Professor of Neurology Research, National National Institutes of
and Director of Multiple Sclerosis Society, Health, Bethesda, MD
Evergrande Center for New York and American (2002-2009)
Immunologic Diseases at Association of Neurology • N.I.H. FIRST Award
Dr. Vijay Kuchroo Harvard Medical School (AAN) (2021) (1992)
Independent Director • Institute Member, Broad • AAI 2021 Distinguished • Fred Z. Eager Research
Member of the Board of Institute Fellow Award, Prize for best Ph.D.
Directors since 2015 • Senior Investigator, American Association of research thesis at the
Klarman Cell Observatory Immunologists, Rockville, University of Queensland
Year of Birth: 1955
project that focuses on T MD (2021) (medal and cash prize)
Nationality: U.S. / OCI (1985)
cell differentiation • ICIS 2020 BioLegend
• Holds over 50 patents William E. Paul Award, • D.B. Duncan Fellowship,
International Cytokine (annual USD 10,000)
• Founded 8 different
Society, Oradell, NJ by Queensland Cancer
biotech companies
(2020) Fund to a young scientist
including CoStim
Pharmaceuticals and • Milestones in Research in Australia for cancer
Tempero Pharmaceuticals Award, National M.S. research. Recipient
Society, New York (2019) of the Daniel Walker
• Published over 400
• William E. Paul McLeod Bursary, Faculty
original research papers
Distinguished Innovator of Veterinary Medicine,
in immunology
Award, Lupus Research University of Queensland
• Serves on scientific (1984)
Alliance, New York
advisory boards and
(2018) • Commonwealth
works in an advisory
• Newsome-Davis Lecture, Foundations Travel Award
capacity to several
International Society to undertake higher
companies, including
of Neuroimmunology studies in Australia (1980)
Pfizer, Novartis and
GlaxoSmithKline (2016) • Indian Council of
• Garber Lecture, French Agricultural Research
• Senior Scientist, Brigham
Society of Immunology graduate scholarship
and Women’s Hospital,
(2014) (based on National
all in United States
competition) (1976)
• Eberly Distinguished
Lecture, University of • University Merit
Pittsburg (2014) Scholarship (1972-1976)

• Peter Doherty Education

Distinguished Lecture
• Ph.D., University of
and Prize (2014)
Queensland, Brisbane,
• Ranbaxy Science Australia
Foundation Prize, Award
• Fogarty International
in Medical Research
Fellow at The National
(2011)
Institutes of Health,
Bethesda

Metamorphosis | 47
 Professional Experience • Director of several • Board member,
• Former Deputy Prime private companies HealthBeacon plc
Minister of the Republic and a public company • Chancellor, University of
of Ireland (1997-2006) in pharmaceutical, Limerick Foundation
• President of EU Council healthcare, technology
and financial services Recognitions
of Ministers during Irish
presidency sectors • Won European awards as
Mary Harney
• Chancellor, University of employment minister for
Independent Director • First woman leader of an
Limerick promoting science and
Member of the Board of Irish political party
innovation
Directors since 2012 • Youngest member of the • Chairperson, Pharmed
Senate at the time and Ltd Education
Year of Birth: 1953
longest-serving female • Board member, Diona • B.A. (Economics and
Nationality: Ireland
member of the Irish Technology Social Studies), Trinity
Parliament • Board member, Brindley College, Dublin
Healthcare • Honorary Doctorate,
Trinity College, Dublin

Professional Experience and private as well as groups, investment

• Founder, Bobby Parikh listed Indian companies banks, brokerage
Associates • CEO, EY in India houses, fund managers
• Co-founder, BMR • Country Managing and other financial
Advisors Partner, Arthur Andersen services intermediaries
• Has been a member • Works closely with Education
Bobby Parikh of several trade and regulators and policy • Chartered Accountant,
Independent Director business associations formulators Institute of Chartered
Member of the Board of • Member of the advisory • Over 30 years of Accountants of India
Directors since 2018 or executive boards of experience in advising • B.Com, University of
Year of Birth: 1964 non-governmental, not- several private equity Mumbai
Nationality: India for-profit organizations investors, banking

48 | Annual Report 2022

 Biocon Limited

Professional Experience • Member, India Advisory • Member, The Rockefeller

• Additional Director and Council of U.S.-India Foundation Economic
Senior Advisor, Rothschild Business Council (USIBC) Council for Planetary
India • Member, Army Group Health
• Senior Advisor, Advent Insurance Fund’s • Former Executive Director,
International investment advisory HSBC Asia Pacific
• Non-Executive Director committee • Former Chairperson,
Naina Lal Kidwai • Trustee, Asia House in the HSBC India
on the boards of Holcim,
Additional Director UK
Max Financial Services, • Served 12 years as a Non-
(Category: Independent
Nayara Energy, Gland • Member, Board of Shakti Executive Director on the
Director) Pharma, UPL Sustainable Energy global board of Nestlé
Member of the Board of • Chairperson, Financial Foundation • Past President, Federation
Directors since 2022 Services Working Group • Member, International of Indian Chambers of
Year of Birth: 1957 of the BRICS Business Advisory Council of Commerce & Industry
Nationality: India Council the United Nations
Environment Program Recognitions
• Member, INDO-ASEAN
Business Council (UNEP) • Padma Shri
• Chairperson, FICCI • Alumni Achievement
• Member, Harvard
Water Mission and India Award, Harvard Business
Business School’s South
Sanitation Coalition School
Asia Advisory Board
• Member, Standard • Commissioner, The Education
Chartered Bank’s Global Commission on • MBA, Harvard Business
International Advisory the Economy and Climate School
Council • Member, Advisory Board, • BA, Economics, Lady Shri
• Member, Mission Board Wildlife Conservation Ram College for Women
of the global EQT Future Trust
Fund

Key Expertise of the Board

Board of Research & General Finance & Corporate Global Technology Scientific
Directors Innovation Management Risk Governance & Healthcare & Digital Knowledge
Management Compliance Perspective
Kiran Mazumdar-
Shaw
Siddharth Mittal

Prof. Ravi Mazumdar

Dr. Eric Mazumdar

M. Damodaran

Daniel Bradbury

Dr. Vijay Kuchroo

Mary Harney

Bobby Parikh

Naina Lal Kidwai

Metamorphosis | 49
Scientific Advisory Board

Satish K. Garg MD, John Petrie Vijay Kuchroo

DM Ph.D. DVM Ph.D.
Professor of Medicine and Pediatrics, Professor of Diabetic Medicine, Institute Samuel L. Wasserstrom Professor of
Garg Endowed Chairs & Director of Cardiovascular & Medical Sciences, Neurology and Director of Evergrande
Adult Program, Barbara Davis Center University of Glasgow + President, Center for Immunologic Diseases at
for Diabetes, University of Colorado, European Group for the Study of Insulin Harvard Medical School, U.S. + Senior
Denver + Editor-in-chief of Diabetes Resistance + Lead author of a statement Scientist at Brigham and Women’s
Technology and Therapeutics journal on the risks and benefits of Insulin Hospital & Co-Director of the Center
since 2006 + Chair of the planning Pumps in 2015 + Member of the joint for Infection and Immunity at the
committee for Clinical Therapeutics ADA and European Association for the Brigham Research Institute, Boston
and New Technology area for 2007 & Study of Diabetes (EASD) Technology + Associate member of the Broad
2008 Annual ADA meetings + Member Committee + Associate Editor of the Institute + Participant in a Klarman
of several Endocrine and Diabetes journal of EASD, Diabetologia and Cell Observatory project that focuses
Societies + On the editorial boards joined its Advisory Board in 2014 + on T-cell differentiation + Named
for many diabetes journals globally Currently, Senior Associate Editor of the ‘Distinguished Eberly Lecturer’ in 2014
+ Published more than 285 original journal Cardiovascular Endocrinology + + Recipient of Peter Doherty Award for
manuscripts in peer-review journals Served in the grant-awarding panels of Excellence in STEM in 2014 + Holds 25
and several book chapters multiple reputed organizations like NIH, patents and numerous publications +
JDRF etc. + Authored more than 100 Founded 5 different biotech companies
publications in peer-reviewed journals including, CoStim Pharmaceuticals
and Tempero Pharmaceuticals +
Serves on scientific advisory boards
and works in advisory capacity to
several internationally recognized
pharmaceutical companies + Javits
Neuroscience Award by NIH

Shashank R. Joshi
MD
President of Indian Academy of American College of Physicians & AIAARO (All India Association of
Diabetes + Immediate Past President, (USA) + Fellow of the Royal College Advancement for Research in Obesity,
API (Association of Physicians of India) of Physicians (London, Glasgow IASO Affiliate) + Past Chapter Chair
(2014-15) + Past President of Endocrine and Edinburgh) + 800 research (India), American Association of Clinical
Society of India + Past President of RSSDI publications + Emeritus Editor of Endocrinology (AACE) + Visiting faculty
(Research Society for Study of Diabetes JAPI (Journal of The Association of to several Indian and International
in India) + Consultant Endocrinologist Physicians of India) + Ex Editor of Indian Universities + Actively involved with
at Lilavati and Bhatia Hospitals & Journal of Obesity, Indian Journal of evidence based work in Endocrinology
Joshi Clinic + Former faculty at Grant Endocrinology and Metabolism and including Diabetes, Obesity, Thyroid,
Medical College and Seth GS Medical Indian Journal of Clinical Pharmacology Osteoporosis and Growth + Awarded
College in Medicine and Endocrinology and Therapeutics and several other “International Clinician of the year
+ Practicing Endocrinologist and leading medical journals + Affiliated 2012” by the American College of
Diabetologist + Fellow of the American to several leading hospitals of the city Endocrinology + Conferred “Padma
College of Endocrinology (USA), including Lilavati, Bhatia Hospitals Shri” in 2014 by Government of India.

50 | Annual Report 2022

 Biocon Limited

Business Segments
Review
55 Generics Business
65 Biosimilars Business
87 Research Services Business

Metamorphosis | 51
A Year of Transformative
Developments
To truly transform, businesses need to rethink how they will create value today
and in the future. In FY22, the Biocon Group demonstrated its prowess at agile
reinvention by adding new growth avenues, which include two strategic moves and
multiple new investments that will generate both inorganic and organic growth
momentum in the decade ahead.

Biocon Biologics
received the
world’s first
interchangeable
biosimilar
approval from
the U.S. FDA for
its bGlargine
(Semglee*).

Biocon Biologics
Biocon debuted on announced
the DJSI Emerging a landmark
Markets Index with acquisition of the
a 93rd percentile global biosimilars
position and a Total business of
Sustainability Score of its long-term
45 for its progressive partner Viatris for
Environmental, Social USD 3.335 billion
and Governance (ESG) in cash and stock.
*Our partner Viatris' brand practices.

52 | Annual Report 2022

 Biocon Limited

Syngene
Biocon Limited expanded its
partnered bio-manufacturing
with Tabuk capacity,
Pharmaceuticals to commissioning a
commercialize its state-of-the-art
specialty generic microbial facility
medicines in and enlarging its
the Middle East, mammalian facility.
Biocon Limited expanding the
executed a global presence
‘Day 1’ U.S. of the Generic
launch of Formulations
Everolimus 10 mg business.
tablet, a generic
formulation for
Biocon Biologics treating certain
The European
signed a strategic cancers and
Medicines Agency’s
alliance with tumors.
Committee for
Serum Institute Life Orphan Medicinal
Sciences, marking Products granted
an ‘asset-light’ and Biocon Limited
an orphan
accelerated entry completed 34
medicinal product
into vaccines. product filings
designation to
globally for APIs,
Itolizumab for the
as well as 28
treatment of both
filings for
Biocon Biologics acute and chronic
formulations
successfully graft-versus-host
in FY22.
advanced two disease.
unpartnered
antibody
programs,
bUstekinumab and
bDenosumab, to
the clinical phase.

Metamorphosis | 53
Our Vision
To enhance global healthcare through innovative
and affordable biopharmaceuticals for patients,
partners and healthcare systems across the globe.

Our Values
• Integrity and Ethical • Performance-Driven
Behavior Work Culture

• Value Creation • Quality through

through Innovation Compliance and Best
and Differentiation Practices

• Collaboration, Team
Work and Mutual
Respect

54 | Annual Report 2022

Our Generics Business

Reengineering the
Generic Code

Metamorphosis | 55
 Our Generics Business

Executive
Leadership Team

Siddharth Mittal Amitava Saha Vijaya Kumar S

Managing Director and Chief Human Head, Operations
Chief Executive Officer Resources Officer

Indranil Sen Abhijit Zutshi Nehal Vora

Chief Financial Commercial Head, Commercial Head,
Officer Global Generics Global APIs

Manoj Kumar Prasad Deshpande Sriram AV

Pananchukunnath Head, Supply Chain and Head, Quality
Head, R&D and Central Engineering
Regulatory Sciences

56 | Annual Report 2022

 Biocon Limited

Our Generics Business

Reengineering the
Generic Code

The Generics business, which

contributed 28% of consolidated
group revenues at `23,409 million
in FY22, saw a resurgence in its
performance during the second half
of the fiscal, driven mainly by new
product launches and an uptick in
our Active Pharmaceutical Ingredients
(API) business.
Year-on-year growth, however, remained flat, as
the business was confronted with COVID-related
headwinds in the first half of the year. Operational
and supply chain challenges impacted our API
manufacturing, while continued pricing pressure
and increases in the price of solvents and reagents,
as well as a surge in logistical costs affected
margins. Revenue growth in the first half of the
fiscal was also subdued on account of stockpiling
of APIs by customers during the same period in
the previous fiscal, i.e. FY21, anticipating COVID-
related disruptions at the time. Additionally, travel
restrictions delayed facility inspections by regulatory
authorities, impacting our product approvals, and
consequently, launches and regional expansion
plans. On the positive side, meticulous planning
and our vertical integration strategy enabled our
Generic Formulations business in the U.S. to fulfill
customer demand, with no backorders throughout
the pandemic.

Metamorphosis | 57
The year ended on a reassuring slowly but surely began to return to entered into with key customers
note as business saw a recovery in normalcy. and customer lock-ins were secured
the second half. New products that for some important new product
During the year, our API business
launched during the year, particularly launches.
saw a consistent performance of its
Everolimus, supported a revival in
immunosuppressants portfolio. The All of these factors provided the
growth. The API segment too saw
business focused on sustaining its impetus for a healthy sequential
the benefit of renewed demand from
base business, new product launches, as well as year-on-year growth in
customers towards the later part of
and expansion into regions such the third and fourth quarters of
the fiscal. Supply chain disruptions
as China, Japan and Russia. Long- the fiscal.
began to abate, and operations
term strategic arrangements were

58 | Annual Report 2022

 Biocon Limited

Strengthening Our Product Portfolio

Our statins portfolio in the U.S., Esomeprazole Magnesium Delayed- Leveraging our product pipeline of
comprising Atorvastatin, Simvastatin Release capsules, a proton pump niche, difficult-to-make molecules,
and Rosuvastatin, retained its market inhibitor, indicated in the treatment we secured several drug approvals
share despite continued pricing of gastroesophageal reflux diseases. in FY22. The U.S. FDA approved
pressure. This was followed by the key launch our ANDA for Mycophenolic Acid,
of Everolimus tablets, a generic which is indicated for the prophylaxis
Reaffirming our commitment to
version of Afinitor®. A prescription of organ rejection in adult patients
establish a global footprint for
medication used to treat certain receiving kidney transplants and
our formulations to treat chronic
types of cancers and tumors, it was is available in 180mg and 360mg
conditions, we launched five
introduced in four dosage strengths, strengths. We also received several
products in the U.S. in FY22. The
with the 10mg strength being a product approvals in MoW markets
year began with the launch of
'Day-1' generic launch. Posaconazole, during the year.
Labetalol Hydrochloride tablets,
a vertically integrated anti-fungal
used in the treatment of high In FY22, we completed 34 product
drug, and Dorzolamide, an
blood pressure and to help prevent filings globally for APIs, including
ophthalmic product, were launched
cardiovascular complications, and five in the U.S., and 28 filings for
in the fourth quarter of the fiscal.
formulations, out of which 11 were
in the U.S.

Broad Generics Pipeline

GENERICS
APIs Formulations
Niche Device
Potent Peptide Molecules for Potent Oral
Injectables Topicals Dependent
APIs APIs Hospitals Solids
Products

Expansion Into Regional Markets

While we continue to consolidate We also signed a partnership deal with in Saudi Arabia and other Middle
and grow our business in the U.S., Tabuk Pharmaceutical Manufacturing East countries. This development
we believe it is strategically important Company, a fully-owned subsidiary paves the way for expansion into
to drive growth and expand our of Astra Industrial Group, to the Middle East and North Africa
footprint in other regions as well. commercialize select specialty generic (MENA) region and is another
medicines in the Middle East region. important milestone in our journey
We commenced our first Most of
Under the terms of this agreement, to providing patients around the
the World (MoW) market supply of
Tabuk Pharmaceuticals will hold the globe with affordable medications by
Tacrolimus Capsules in Mexico this
marketing authorization for these establishing a strong global portfolio
fiscal.
products and will be responsible for of products, either directly or through
registering, importing and promoting strategic partnerships.

Metamorphosis | 59
Strengthening Quality

Adherence to the highest quality and A Learning Management System tablets and capsules in the non-
compliance standards have always that was implemented ensures that potent and potent blocks of the
taken priority at Biocon. In keeping our employees are put through facility.
with this philosophy, we continuously regular training programs and
Furthermore, the Maltese authorities
look at ways to strengthen our quality refresher courses to equip them with
conducted a Wholesale Dealer
culture and improve our systems and a thorough knowledge of current
License (WDL) and Manufacturing/
processes to best-in-class regulatory Good Manufacturing Practices and
Importation Authorization (MIA)
standards. regulatory requirements.
inspection, and thereafter, granted
Digitization is a critical part of our During the year, we went through us a Certificate of Good Distribution
strategy and plays an important role various regulatory audits at some Practice (GDP) of a Wholesale
in ensuring consistency of quality of our key sites, with successful Distributor, that enabled us to import
and process efficiency. We have outcomes. At our Oral Solid Dosage and market our products in the
implemented multiple digitization (OSD) facility in Bengaluru, the U.S. European Union. Towards the end
initiatives, such as a Quality FDA conducted a Remote Interactive of the fiscal, Health Canada also
Management System, Scientific Data Evaluation (RIE) in September 2021, conducted a remote inspection of our
Management System, Regulatory which was a pre-approval review API manufacturing unit in Bengaluru
Information Management System for ANDAs filed earlier. The facility and rated it as ‘Compliant’.
and Lab Information Management also secured a certificate of Good
While these outcomes validate the
System to ensure quality excellence Manufacturing Practice (GMP)
importance we place on quality
and compliance. To this end, we have from the Medicines and Healthcare
excellence, we will continue to
also commenced a project to simplify Products Regulatory Agency
focus on strengthening our quality
Batch Manufacturing Records (BMRs) (MHRA), U.K. based on a remote
management systems across the
and Standard Operating Procedures inspection. The certificate included
organization.
(SOPs) for major commercial products manufacturing and packaging of
across sites.

Manufacturing Expansion
Our capacity expansion projects, This will be our first facility to be come up at Biocon Park, Bengaluru.
which are important in driving Industry 4.0 enabled and will add We have also firmed up plans to
long-term value for the business, the much-needed capacity boost repurpose some of our existing
have been making progress. to serve our customers better and API facilities in Bengaluru and
Our greenfield, fermentation- drive operational efficiencies and Hyderabad to cater to the growing
based immunosuppressant compliance. customer demand for a couple of
API manufacturing facility in other key products. All of these
We have commenced work on a new
Visakhapatnam will be commissioned CAPEX investments are important
synthetic API plant that will come up
in the first half of FY23, followed in providing further impetus to our
within our Hyderabad facility, as well
by qualification and validation. future growth.
as a new injectable plant that will

60 | Annual Report 2022

 Biocon Limited

Cost Competitiveness

The pricing pressure that the business include setting up a cross-functional have been identified to de-risk the
is encountering is unlikely to diminish Governance Committee and a supply chain, such as the qualification
any time soon. If anything, it will defined process that ensures the of alternate vendors and the recovery
most likely intensify. We recognize right selection of products for a of solvents, to alleviate the pressure
the fact that the only way to stay Cost Improvement Project (CIP), of rising raw material costs.
competitive is by reducing the cost maximizing the use of renewable
We will continue to identify and
of the product. power across sites, and a continuous
implement initiatives that enable us
process improvement using the
Towards this objective, a number to take our products to market at the
Kaizen approach, to name a few.
of measures have been instituted right time and cost.
Several CIPs are at various stages of
across the organization. These
execution, along with new ones that

Metamorphosis | 61
People Focus
If there was one factor that enabled
the business to successfully confront
the challenges we faced during the
year, it was the grit and resilience of
our employees, who went beyond
the call of duty to steer the business
through the turbulence.
We have introduced several initiatives
that enable employees to fulfill
their individual career development
aspiration, thereby, helping retain
talent.
We launched an in-house career
portal called MyCareer, which
recommends roles to employees
based on their career aspirations,
experience and skills, which enables
and empowers them to drive their
career growth through opportunities
within the Company. Our internal
job posting process now opens up
most vacant positions for employees,
before looking for talent outside the
Company. This is also a step toward standardization, ultimately resulting ranked against job descriptions and
building a role-based organization, in a better employee experience. shortlisted candidates are taken
where an employee’s growth through video interviews.
We continue to attract and retain
potential is given as much importance
a diverse set of talent and aspire to The well-being of every employee is
as the technical skills required for a
reach a balanced gender ratio by the important to us and we continue to
particular role.
end of the decade. In line with that, provide care and wellness programs to
Digitalization of the entire over 200 women employees joined improve their health and productivity.
employee life cycle, from sourcing us in FY22. Furthermore, to attract To develop our leadership pipeline
and hiring to talent development, the right talent in an efficient and and create future leaders, we
career progression and separation, unbiased manner, we introduced partnered with leading organizations
has brought about data-backed Artificial Intelligence (AI) in talent to chart the development journey of
decision making, efficiencies and acquisition, whereby profiles are high-potential employees.

Outlook
The outlook for the Generics business promote affordable healthcare. As quality medicines for patients across
continues to look promising, with the industry re-evaluates its operating the world. Our focus will remain on
the global market expected to model, its growth will rely on its ability growing our portfolio by expeditiously
grow around 50% by 2030 by to manage the entire value chain commercializing new products,
most estimates, owing largely to more efficiently to become more expanding manufacturing capacities,
the increasing demand for more agile and flexible against shifting exploring new cost improvement
affordable generics products, a large paradigms. projects, and leveraging the digital
number of branded drug product ecosystem to capitalize on the growth
We continue to deliver on our mission
patents expiring and initiatives by opportunities in the generics market.
to improve access to affordable
governments around the globe to

62 | Annual Report 2022

 Biocon Limited

Our Novel Biologics Business

Altering Frontiers

Drug innovation that pushes

scientific frontiers and creates new
knowledge can be breakthrough in
its impact to human existence. This
is what we are trying to do through
our Novel Biologics business.
Our portfolio of novel assets
comprises an exciting combination of
early and advanced stage programs
in the therapeutic areas of oncology
and autoimmune / inflammatory
diseases. All the programs are
proceeding as per schedule.

Metamorphosis | 63
ITOLIZUMAB
Our novel molecule, Itolizumab, Equillium also expanded the Part B we intend to develop this drug for
is currently being developed for portion of its Phase I b study for SLE patients in Europe upon regulatory
indications such as acute graft- and LN indications to clinical centers approval.
versus-host disease (aGVHD) and in India after observing positive
systemic lupus erythematosus (SLE) trends in the Part A portion of the Itolizumab has been at the forefront
or lupus nephritis (LN) by our U.S.- clinical trial. of our fight against COVID-19 in
based partner Equillium. India, after we repurposed it for the
In July 2021, the European Medicines prevention and treatment of Cytokine
Equillium initiated a Phase III clinical Agency’s Committee for Orphan Release Syndrome (CRS) in moderate
study of Itolizumab in patients Medicinal Products granted an to severe Acute Respiratory Distress
with aGVHD in March 2022. The orphan medical product designation Syndrome (ARDS) patients due to
randomized, double-blind study will to Itolizumab for the treatment COVID-19. We completed our Phase
assess the efficacy and safety of of both acute and chronic GVHD. IV study of Itolizumab to treat CRS in
the drug versus placebo as a first- This was a milestone for Biocon as moderate to severe ARDS patients.
line therapy in combination with
corticosteroids.

BICARA
Our Boston-based associate, Bicara a better therapeutic window. A first- Following the completion of this
Therapeutics, continued to make in-human, Phase I / II study in EGFR- study, in February 2022, Bicara
progress on its lead molecule, driven tumors was activated in July initiated dose expansion cohorts
BCA101. BCA101 is a bifunctional 2020 at leading institutions in the evaluating BCA101 in patients
antibody designed to target a TGF-ß U.S. and Canada. with head and neck squamous cell
trap to EGFR-positive tumors by carcinoma (HNSCC), squamous cell
Bicara completed enrollment for the
inhibiting epidermal growth factor carcinoma of the anal canal (SCAC)
dose finding part of the Phase I trial
receptor (EGFR) and disabling TGF-ß and cutaneous squamous cell
as a single agent and in combination
directly at the site of the tumor, carcinoma (cSCC).
with a PD1 inhibitor for patients with
ideally achieving superior anti-tumor
EGFR-driven advanced solid tumors. Bicara has secured external funding
efficacy with an improved therapeutic
Bicara established the highest dose to support clinical development of
window.
with desired level of safety and BCA101 and its pipeline. This has
BCA101 has a potential to target tolerability for both formats. Proof further diluted Biocon’s stake in
multiple tumor types and has a of concept is expected in the second Bicara.
higher local tumor concentration of half of 2022.
immuno-modulatory arm resulting in

64 | Annual Report 2022

Our Biosimilars Business

Changing to Win;
Transforming
to Lead
Metamorphosis | 65
Biocon Biologics Limited

Board of
Directors

Kiran Mazumdar-Shaw Dr. Arun Chandavarkar Bobby Parikh

Executive Chairperson Managing Director Independent Director

Daniel Bradbury Russell Walls Peter Piot

Independent Director Independent Director Independent Director

Thomas Roberts Nivruti Rai

Non-Independent Independent Director
Non-Executive Director

66 | Annual Report 2022

 Biocon Limited

Biocon Biologics Limited

Executive
Leadership Team

Dr. Arun Chandavarkar Shreehas Tambe Chinappa MB Dr. Anuj Goel

Managing Director Deputy Chief Executive Chief Financial Officer Chief Scientific Officer
Officer

Dr. Sandeep N Athalye Susheel Umesh Matthew Erick Paul Thomas

Chief Medical Officer Chief Commercial Officer, Chief Commercial Officer, Chief Commercial Officer
Emerging Markets Advanced Markets U.S., Business Development
& Licensing

Ganesh Reddy Kiran Kumar Gandhirajan Seema Ahuja Akhilesh Nand

Global Head, Biologics Site Head, Malaysia Chief Communications Company Secretary
Manufacturing Officer and Chief Legal, Risk &
Compliance Officer

Amitava Saha Naveen Narayanan

Chief Human Resources Chief Human Resources
Officer, Biocon Group Officer

Metamorphosis | 67
DEPUTY CEO’s
REVIEW
Shreehas Tambe
President & Deputy CEO, Biocon Biologics

68 | Annual Report 2022

 Biocon Limited

Deputy CEO's Message

Laying the Runway

to Growth
Just when we had begun to think that we had got the
better of the coronavirus, it hit back with a vengeance. This
time, even harder than it did in 2020. FY22 began under
the gloom of the second wave of the COVID-19 pandemic.
The devastation it left behind was unprecedented, with
a cascading impact on global health, economy and life in
general. It changed the world as we knew it. It was against
this backdrop, that we, at Biocon Biologics, set out our Three
Top Priorities – Strengthen the Core, Accelerate Growth and
Invest in the Future.

Strengthen the Core

A key focus area was to ensure that the business delivered a profitable
growth on a year-on-year basis and a steady sequential increase over each
preceding quarter. In FY22, Biocon Biologics’ revenues grew by 24% over the
previous year to `34,643 million. Focus on business priorities and operational IN FY22, BIOCON BIOLOGICS
performance led to an improvement in the quality of our earnings. This was SET OUT THREE TOP
reflected in our Core EBITDA, which is EBITDA less licensing, forex, mark- PRIORITIES – STRENGTHEN
to-market loss on investments and R&D expense, which grew 30% over THE CORE, ACCELERATE
FY21. With an increase in market share of our commercialized biosimilars GROWTH AND INVEST IN
and launches in over 25 new markets, we were able to further our mission to THE FUTURE.
broaden access to essential therapies. In FY22 alone, Biocon Biologics served
over 5 million patients through our lifesaving drugs.

Investing in our biosimilars development pipeline has been a top focus and
we continue to invest in R&D to advance our portfolio. In FY22, two of our
Wave 2 biosimilar assets, bUstekinumab and bDenosumab, entered the clinic.
Having now exercised the option to acquire Viatris’ rights in bAflibercept,
which is 'first to file' with the U.S. Food and Drug Administration (FDA), we
have opened a market opportunity of ~USD 20 billion in innovator sales for
our Wave 2 biosimilar assets.

Accelerate Growth
On July 28, 2021, the U.S. FDA made a historic decision when it approved
bGlargine (Semglee*), co-developed by Biocon Biologics and Viatris, as the
first interchangeable biosimilar insulin product to improve glycemic control

*Our partner Viatris' brand

Metamorphosis | 69
in adults and pediatric patients with Type 1 diabetes mellitus and in adults
with Type 2 diabetes mellitus. Semglee (insulin glargine-yfgn) was approved
WITH SALES FROM
both as biosimilar to and interchangeable with (can be substituted for) its
MALAYSIA RAMPING
reference product Lantus (Insulin Glargine), a long-acting insulin analog.
UP, OUR MALAYSIA
Semglee (insulin glargine-yfgn) is the first interchangeable biosimilar product OPERATIONS TURNED
approved in the U.S. for the treatment of diabetes. Acting FDA Commissioner PROFITABLE IN THE
Janet Woodcock, M.D. called it a “…momentous day for people who rely FOURTH QUARTER
daily on insulin for treatment of diabetes...” Our bGlargine sales in the U.S. OF FY22.
have been the most significant contributor in accelerating growth in FY22.
The interchangeability status allowed us to get a preferred listing at some of
the largest formularies, which helped us to rapidly ramp-up market share in
the U.S.

Business in Emerging Markets also saw significant acceleration with our

insulins and bTrastuzumab leading the way. Recently, we won a three-year
contract for rh-Insulin in Malaysia, valued at ~USD 90 million, continuing our
long-standing relationship with the Ministry of Health (MoH), Malaysia. With
sales from Malaysia ramping up, our Malaysia operations turned profitable in
the fourth quarter of FY22. Insulins and bTrastuzumab sales in several Latin
American markets and the Africa and Middle East region also contributed to
growth in the business.

The Branded Formulations India business made us proud as the team went out
of the way to ensure continuity in supply of our lifesaving drugs all through
the pandemic. Our Critical Care division, armed with ALZUMAb-L (Itolizumab)
and other products, worked tirelessly with doctors across the country to help BIOCON BIOLOGICS
manage COVID-19 patients. This made a significant contribution to the India HAS DEMONSTRATED
business in the first half of FY22. Most importantly, they touched ~40,000 SCIENTIFIC CREDIBILITY,
patients' lives during the year. In FY22, our Branded Formulations India GLOBAL-SCALE
business recorded a growth of 35% over last year on the back of strong MANUFACTURING AND A
performance across therapeutic areas. PROVEN TRACK RECORD
OF COMMERCIAL SUCCESS
Invest in the Future ACROSS GEOGRAPHIES.
Even as we have continued to strengthen our biosimilars portfolio to broaden
access to patients, our investments so far have focused on debilitating
non-communicable diseases. The COVID-19 pandemic and the ensuing
crisis exposed the inequity in access to global health, particularly when
combating communicable diseases. Biocon Biologics has demonstrated
scientific credibility, global-scale manufacturing and a proven track record
of commercial success across geographies. Our strategy of “Expanding on
Adjacencies” is about leveraging our strengths to invest in growth drivers for
the future. The strategic alliance with Serum Institute Life Sciences (SILS) is an
important step in that direction as we expand into developing vaccines as a
potential future growth driver. The ‘asset-light’ deal structure of this alliance
with the world’s largest vaccine maker has ensured that Biocon Biologics has
access to assured vaccine manufacturing capacity for the next 15 years. This
investment becomes accretive to the P&L from the second half of FY23 as we
work through the statutory approval process.

70 | Annual Report 2022

 Biocon Limited

Our Transformative Journey

SEVERAL FIRSTS IN THE AREA OF BIOSIMILARS

2017 2018 2020 2021

1st company to get 1st company to 1st company 1st company

U.S. FDA approval get U.S. FDA from India to globally to
for bTrastuzumab approval for commercialize commercialize
bPegfilgrastim bGlargine in U.S. interchangeable
bGlargine in U.S.

2014 2013 2009 2004

bTrastuzumab Expands Viatris Enters partnership World’s

launched in partnership to add with Viatris to 1st Pichia pastoris
India; world’s insulin analogs co-develop technology based
1st approved biosimilar mAbs rh-Insulin developed &
bTrastuzumab commercialized in India

The acquisition of Viatris’ global biosimilars business accelerates our vision of

building a unique, vertically integrated biologics company. In addition to the
immediate accrual of economic benefit to the P&L, this deal enables Biocon
Biologics with direct presence in the advanced markets of U.S., Canada, EU,
Australia and New Zealand, in addition to several emerging markets. With
biosimilars gaining ground globally, particularly in the U.S., and several
products from our portfolio lined up for market entry in the near term, the
timing of this deal couldn’t have been better. This deal will provide Biocon
Biologics greater agility in decision-making and help improve operational
efficiencies in supply chain, capital allocation and distribution, and will also
bring us closer to patients.

The Way Ahead

The coronavirus has morphed to a new variant today and it is possible that
there may be more in future, but our achievements show that we have learnt
and adapted quickly and are now stronger than ever before. Our track record
of endurance, tenacity and more importantly a strong sense of purpose
continues to differentiate us and has allowed us to win. With the core business
back on track and key products accelerating growth, Biocon Biologics is well
placed to leverage its strengths and realize the full potential of the strategic
investments that we have made, in the coming years.

Thank You.

Yours sincerely,
Sd/-
Shreehas Tambe
President & Deputy CEO
Biocon Biologics
May 27, 2022

Metamorphosis | 71
 Our Biosimilars Business

Changing to Win;
Transforming to Lead
Biologics represent the cutting-edge
of biomedical research, and biosimilars
present an enormous opportunity to
provide affordable access to these
advanced therapies. Biosimilars can
bring in a transformational shift in the
treatment paradigm of life-threatening
conditions for patients worldwide. We
are witnessing a gradual increase in
biosimilar adoption, and greater clarity
around scientific expectations and
the regulatory pathway will further
drive a higher uptake of biosimilars
globally. To provide patient access to
affordable biologics and enable health
equity, Biocon Biologics is developing a
strong portfolio of biosimilars that will
address a USD 70 billion# global market
opportunity by FY27.

FY22 was a transformative year for

Biocon Biologics as we acted to
Strengthen the Core, Accelerate Growth
and Invest in the Future. We announced
the acquisition of Viatris’ global
biosimilars business to get closer to
patients and entered a strategic alliance
with Serum Institute Life Sciences (SILS)
in line with our strategy of ‘Expanding
on Adjacencies.’

We believe these strategic moves will

fundamentally transform the Company’s
position and growth trajectory for
#
Market opportunity size of Biocon Biologics' portfolio based on reported
sustainable value creation in the coming
CY 2021 sales of originator brands and biosimilars years.

72 | Annual Report 2022

 Biocon Limited

Creating a Unique, Fully

Integrated Biosimilars Leader
Strategic Move to Acquire the Global Biosimilars Business of Viatris
The strategic decision to acquire the global biosimilars business of our long-term partner Viatris for USD 3.335 billion
in a ‘cash and stock’ deal is a historic inflection point in Biocon Biologics’ journey to become a world leading, fully
integrated biosimilars enterprise.

Building Out Commercial Capabilities in Developed Markets

Our collaboration with Viatris for over a decade led us to combine our advanced R&D strengths and robust
manufacturing capabilities in biosimilars with our partner’s regulatory and commercialization expertise in developed
markets to together achieve many 'firsts' and set new global benchmarks.
By bringing together the complementary capabilities and strengths of both partners, this acquisition will help us add
regulatory, supply chain and commercialization competencies in U.S., UK, EU, Canada, Australia and New Zealand, as
well as key emerging markets.
Direct commercial presence in these markets will support our existing and future pipeline of products. It will take us
closer to patients, payors and healthcare systems and strengthen our position as a global biosimilars player.

Fortifying our Biosimilars Portfolio

The deal with Viatris will allow us to have full rights on our partnered assets and Viatris’ rights for in-licensed products
like bAdalimumab and bEtanercept.
As a part of this deal, Biocon Biologics has also exercised the option to acquire Viatris’ rights for its bAflibercept asset,
a proposed biosimilar to Regeneron's Eylea, which is indicated for use in multiple ophthalmology indications. Viatris
has been the 'first to file' for a biosimilar Aflibercept in the U.S.
This acquisition of bAflibercept will expand our portfolio.

Metamorphosis | 73
Improving our Financial Health
Currently, Viatris enjoys majority of the economic benefit from our partnered biosimilars portfolio. Upon closing of the
transaction, Biocon Biologics will realize the full revenue and associated profits from these products; a step-up from
the existing arrangement.

Biocon Biologics expects Viatris’ biosimilars business to contribute over USD 1 billion in revenue in CY23.

The deal will expand Biocon Biologics’ EBITDA base and strengthen our overall financials, enabling investments in
product portfolio and geographical expansion for sustained long-term growth.

Financial Details of the Transaction

Viatris will receive consideration of up to USD 3.335 billion, including cash up to USD 2.335 billion and Compulsorily
Convertible Preference Shares (CCPS) in Biocon Biologics valued at USD 1 billion, equivalent to an equity stake of at
least 12.9% on a fully diluted basis.

The cash consideration for the acquisition comprises USD 2 billion payable on closing of the transaction and up to USD
335 million deferred payments expected to be paid in 2024.

The deferred considerations include USD 175 million to be paid for the acquisition of Viatris’ rights in its bAflibercept.
Viatris will pay USD 50 million to Biocon Biologics to fund certain capital expenditures.

Biocon Biologics will enter into a Transition Service Agreement with Viatris, for an expected two-year period,
encompassing commercialization and other services.

Cash payment of USD 2 billion will be funded by ~USD 800 million raised through equity infusion in Biocon Biologics
and the remainder will be funded by debt. The equity infusion will see participation from existing and potential
investors.

We have firm commitments from lenders for debt financing.

Viatris will designate Rajiv Malik, President of Viatris, to serve on the Biocon Biologics Board of Directors.

Creating Long-Term Value

Our longstanding relationship with Viatris positions us well to integrate seamlessly and rapidly. Vertical integration
will drive operational efficiencies and business agility, thereby underpinning cost competitiveness. This acquisition
will make us future-ready and help us accelerate our strategy of building a direct commercial presence in developed
markets for our next wave of biosimilars.

As a fully integrated global company, we will be able to enhance patient access, reduce healthcare inequities worldwide
and drive immense value for all our stakeholders.

74 | Annual Report 2022

 Biocon Limited

Transaction to Add Financial Depth, Commercial Capabilities

Revenue EBITDA
Biocon Biologics to realize full revenue and
1 Financial
profits from all its collaboration programs USD 1.1 bn USD 250 mn
Viatris Biosimilars CY23 estimate1

Commercialization*, Supply Chain and

2 Operational Regulatory capabilities in
Developed Markets

bBevacizumab
Launch of collaboration products in the U.S. bAspart
New Growth
3 Drivers Exercised option for new in-licensed bAdalimumab
biosimilar asset bAflibercept

* Viatris to provide commercial and transition services for an expected

two-year period. 1
Biocon Biologics' estimates of acquired Viatris’ business

Viatris Will Receive up to USD 3.335 billion in Cash & Stock

USD 2 Bn
Cash Payment at Closing

Viatris will have one nominee on

the Board of Biocon Biologics
USD 3.335
Bn

USD 335 Mn USD 1 Bn

(Additional payments to be Payment in Equity*
paid in 2024) (CCPS)

*CCPS : Compulsorily Convertible Preference Shares equivalent to equity stake of at least 12.9% on a fully diluted basis

Metamorphosis | 75
Positioned for Value Creation Through Vaccines
Strategic Alliance with Serum Institute Life Sciences
The COVID-19 pandemic has led the world to acknowledge the serious threat posed by viral and other infectious
diseases and the role that biologics such as vaccines and antibodies have in addressing this danger.

Realizing the acute need for an effective treatment for people hospitalized with COVID-19 and those at risk of developing
severe illness, Biocon had repurposed its novel antibody, Itolizumab, to treat patients experiencing moderate to severe
Acute Respiratory Distress Syndrome (ARDS) due to COVID-19. We also in-licensed a novel monoclonal antibody
therapy from U.S.-based Adagio Therapeutics for the prevention and treatment of COVID-19.

Vaccines and antibodies for infectious disease are a natural adjacency to Biocon Biologics’ existing capabilities in
biologics for non-communicable diseases. The strong synergies between our existing capabilities and the evolving
demand for biologics or vaccines against infectious diseases led Biocon Biologics to enter into a strategic alliance with
Serum Institute Life Sciences (SILS) for vaccines and infectious disease antibodies in September 2021.

Under the terms of the agreement, Biocon Biologics will offer ~15% stake to SILS, at a post-money valuation of
~USD 4.9 billion*. Serum Institute CEO, Adar Poonawala, will join Biocon Biologics' board following the closing of the
Viatris / SILS deal.

‘Asset-Light’ Entry into Vaccines

The structure of the alliance provides Biocon Biologics with an ‘asset-light’ and accelerated entry into the vaccines
segment.

*Calculated as on the date of signing of the deal

76 | Annual Report 2021-22

 Biocon Limited

Serum Institute is the world's largest

vaccine manufacturer by volume of
doses produced and sold globally. It
has world-class vaccines production
facilities, capable of producing
multi-billion doses of high quality
vaccines.

Upon closing of the transaction,

Biocon Biologics will get committed
access to a 100 million doses of
vaccines annually for ~15 years along
with commercialization rights to the
entire vaccines portfolio of SILS.

Adding a Growth Pillar

Biocon Biologics will have global commercialization rights for SILS’ vaccine portfolio, including COVID-19 vaccines.

Beyond the COVID-19 vaccines portfolio, the partnership provides access to SILS’ current development pipeline to
address unmet needs in the areas of infectious and vector-borne diseases.

The SILS alliance will provide a committed annual revenue stream of nearly USD 300 million to Biocon Biologics. This
will reflect in our P&L from the second half of FY23, post closing of the deal.

Leveraging Complementary Capabilities

Biocon’s investments in biologics over the decades have provided us a strong foundation to contribute to the global
fight against infectious diseases.

Biocon Biologics’ manufacturing and R&D strengths in biologics will complement SILS’ capabilities in vaccines. The two
companies will leverage each other’s commercial strengths in existing and new markets.

The deal would not only give Biocon Biologics an entry into vaccines, but it would also allow Serum Institute to
participate in the global biologics space through its ~15% stake in Biocon Biologics.

Complementing each other’s capabilities and capacities will enable both companies to address the issue of access
to cost-effective vaccines and biologics in emerging and developed markets and make a meaningful impact in the
infectious diseases space globally.

Future Plans
We have agreed to establish a vaccine R&D division to support the development of both vaccines and biologics for
communicable diseases, providing long-term growth drivers for this business.
Biocon Biologics will issue shares and receive the rights through a merger with Covidshield Technologies Pvt. Ltd.
(CTPL), a wholly-owned subsidiary of SILS, on customary closing conditions and receipt of regulatory approvals. The
Competition Commission of India (CCI) has approved the merger.

Metamorphosis | 77
Achieving Efficient Business Growth
Financial Performance
Biocon Biologics delivered a very of our interchangeable bGlargine in to-market loss on investments and
strong financial performance in the second half of the year, improved R&D expense was at 39% versus
FY22, reporting a robust top line market share of bTrastuzumab in the 36% in FY21. The business delivered
growth with continuous profitability U.S. and an improved performance EBITDA margins of 29% in FY22. The
improvement. Revenues grew by in other developed and emerging improved margins reflect our strong
24% to `34,643 million in FY22. The markets. Core EBITDA margin, which operating performance.
growth was driven by a strong uptake is EBITDA less licensing, forex, mark-

Business Performance
Developed Markets: Setting New the first interchangeable biosimilar share has ramped up from low single-
Benchmarks product under the 351(k) regulatory digits at the end of 2021 to double
A key milestone in FY22 was the U.S. pathway. There has been strong digits in early 2022.
Food and Drug Administration’s (FDA) demand for our interchangeable
approval of our bGlargine 100U as bGlargine in the U.S. and its market

78 | Annual Report 2022

 Biocon Limited

Historic U.S. approval for interchangeable bGlargine

In July 2021, the U.S. Food and Drug Administration deemed our bGlargine to be interchangeable with the
innovator product (Lantus) under the 351(k) regulatory pathway, marking another global ‘first’ for Biocon
Biologics. The decision set the precedent for approvals of other interchangeable biosimilars.
Interchangeability allows pharmacists to substitute the reference drug with the interchangeable biosimilar,
thus providing a convenient and affordable alternative. It has the potential to bring significant cost savings
for patients and the healthcare system as a whole. It can also maximize access to an important therapy like
bGlargine, regardless of financial circumstances, insurance or channel.
U.S. FDA Commissioner Janet Woodcock hailed it as a “momentous day for people who rely daily on insulin
for the treatment of diabetes”.
The interchangeability approval for our bGlargine in the U.S. is a testament to our scientific excellence and
robust comparability data. It has improved the confidence of prescribers, patients and payors in our product
in the U.S. and beyond.
Our interchangeable product has been listed as a preferred insulin brand on the national formularies of two
leading pharmacy benefit managers (PBMs) in the U.S., Express Scripts and Prime Therapeutics, which together
have a reach of over 60 million members. It will also be offered through the Walgreens Prescription Savings
Club, saving members up to 80% on the cash price of comparable long-acting insulins purchased at Walgreens.
We launched our interchangeable bGlargine in the U.S. in November 2021, paving the way for interchangeable
biosimilars in the region.

Making a Difference in Oncology In Europe, both these products in key emerging markets through
Treatments reported gradual improvement in partnerships with leading local
Our bTrastuzumab (Ogivri*), which performance. pharmaceutical players, as well as
has made a difference to cancer through Viatris’ commercial engine.
patients worldwide, witnessed a Our bBevacizumab (Abevmy*) was In FY22, we ramped up our presence
gradual increase in market share in commercialized in EU and Canada, in emerging markets by signing 44
the U.S. throughout the year. It also further bolstering our oncology new partnerships across 50 countries
reported a strong performance in franchise in these markets. for our products, opening growth
Canada and Australia. opportunities in new and existing
Emerging Markets: Widening & markets. These will be an important
Deepening our Presence
Our bPegfilgrastim (Fulphila*) was near-term growth driver for our
resilient against the competition in Biocon Biologics has been making emerging markets franchise. To build
the U.S. market, recording an uptick biosimilars available to patients a direct commercial footprint in
in its market share versus FY21.

*Our partner Viatris' brand

Metamorphosis | 79
emerging markets for our biosimilars, biosimilars. Our oncology portfolio Our insulins, which include bGlargine
we added field force in UAE and led by bTrastuzumab reported strong and rh-Insulin, continue to retain
Saudi Arabia. double-digit growth, capturing close a significant share of the market in
to half the market in Brazil, Indonesia several countries such as Malaysia,
During the year, our Emerging and Algeria. We also commercialized Egypt, Morocco and Mexico.
Markets business reported impressive our bTrastuzumab in few new
growth, driven by higher sales of our markets through our partners. Going ahead, we expect a greater
biosimilar insulins and bTrastuzumab play in emerging markets following
in the Africa Middle East and Turkey We launched our bBevacizumab in integration of the biosimilars business
(AFMET) region. Malaysia and received regulatory of Viatris.
approvals for the product in several
We continued to see strong demand other emerging markets.
for a majority of our commercialized

80 | Annual Report 2022

 Biocon Limited

India: Picking up Momentum EGFR, identified by the India business with Type 1 diabetes (T1D) from
In FY22, the Branded Formulations recorded strong double-digit growth the marginalized communities who
India (BFI) business recorded a in FY22. otherwise cannot afford this therapy.
year-on-year growth of 35%. Even
Our commercial team has served over Empowering Clinicians
after excluding the sales from the
COVID-19 portfolio, the Core BFI 60,000 COVID-19 patients so far In FY22, we trained over 5,000
business reported a strong double- through our comprehensive COVID physicians through over 180
digit growth in FY22. The good Care portfolio, including ALZUMAb-L workshops as part of our ABIDE
performance came on the back of (Itolizumab). 2.0 program aimed at empowering
significant ramp-up in prescriptions clinicians in India with continuously
Expanding Insulins Access to T1D updated in-depth training on
for Basalog (bGlargine), improved Patients
patient acquisition and key account diabetes, through a case-based
Biocon Biologics tied up with the interactive approach.
penetrations for oncology biosimilars
Research Society for the Study of
such as CANMAb (bTrastuzumab) and
Diabetes in India (RSSDI), Asia’s Contributing to the Battle
KRABEVA (bBevacizumab), targeted
largest organization of researchers against Cancer
engagement with healthcare
and healthcare professionals for Our novel biologic, Nimotuzumab,
professionals through judicious
diabetes, to identify and train ~400 was included in the Indian Cancer
use of both digital and physical
physicians in different districts across Guidelines and National Cancer Grid
marketing channels. Our strategy
the country on the management of for the treatment of head & neck
of focusing on building strong
Type 1 diabetes. We will enable them cancer.
brands is showing results. The Top
with a free supply of our insulins
5 power brands, Basalog, Insugen,
portfolio to help over 1,000 children
ALZUMAb-L, CANMAb and BIOMAb

Metamorphosis | 81
Malaysia: Making an Impact

Our interchangeable bGlargine, diabetes worldwide, we have been MoH, Malaysia recently awarded our
produced at our Center of Excellence partnering with the Malaysian Malaysia subsidiary a 3-year tender
(CoE) for Insulins in Malaysia, received government since 2016. Since our worth USD 90 million (MYR 370+
a historic U.S. approval as the first entry to Malaysia in 2011, prices million) for the supply of Insugen
interchangeable biosimilar under of human insulin have dropped by (rh-Insulin) products.
the 351(k) regulatory pathway. The over 20% and insulinization has
strong uptake of our interchangeable also improved by 30%. As the only Encouraged by the demand for our
bGlargine in the U.S. helped our insulin manufacturer in Malaysia, we current insulin portfolio globally and
Malaysia operations to deliver an have been able to achieve insulin self- the pipeline ahead of us, we have
operating profit for the first time. sufficiency and improved access while initiated investments to expand our
providing savings to our partner, insulins manufacturing facility in
In line with our aspiration of taking Ministry of Health (MoH), Malaysia. Malaysia.
our biosimilar insulins to ‘one in
five’ insulin-depended people with

82 | Annual Report 2022

 Biocon Limited

Biosimilars Pipeline: Forging Humulin-R, a short-acting rh-Insulin, commercial engine acquired as a part
Ahead demonstrated equivalence in a of the Viatris deal.
Biocon Biologics has one of the Pharmacokinetic / Pharmacodynamic
Biocon Biologics is trying to
deepest and widest biosimilars (PK/PD) study published in the journal,
reimagine the traditional approach
pipelines globally. We have a portfolio Diabetes, Obesity and Metabolism, in
to biosimilars development to get
of 20 biosimilar assets, including January 2022.
these therapies to patients faster
those partnered with Viatris and In FY22, we also commenced and reduce development costs. Our
Sandoz, as well as the ones we are clinical trials for two of our efforts come at a time when rapid
developing independently. unpartnered assets, bUstekinumab scientific and technological advances
During the year, we received for inflammatory conditions and are generating new insights and data,
regulatory approvals for our key bDenosumab to treat osteoporosis helping reduce clinical development
biosimilars in several advanced and cancer. timelines without taking undue risks
markets. Health Canada approved or compromising insight generation.
The acquisition of bAflibercept
our bAspart and bBevacizumab from Viatris fits well with our We have sharpened our development
during the year. We also received next wave of biosimilar programs, and regulatory strategy to expedite
marketing authorization approval including bUstekinumab and the review and approval of Marketing
from the European Commission, bDenosumab, which will address Authorization Applications for our
TGA, Australia and MHRA, UK for a market opportunity of over USD biosimilars. We have successfully
our bBevacizumab. 20 billion# and are expected to be leveraged the approvals received
We continued to invest further to commercialized in the medium term. in developed markets to fast-track
advance our pipeline programs. the review and approval of those
These will supplement our
Our net R&D spending in FY22 was biosimilars in several emerging
commercialized portfolio of eight
`3,100 million, representing 9% of markets.
products.
revenues. The efforts of the Regulatory Affairs
Our portfolio will be further fortified
We are developing various team led to Biocon Biologics receiving
by 10 early-stage programs, including
presentations of rh-Insulin for the U.S. over 50 approvals across the world
bPertuzumab and bGlargine U300,
Our biosimilar referencing Eli Lilly’s for its basket of biosimilars in FY22.
allowing us to consistently fuel the

Our Pipeline
ROBUST PORTFOLIO TO ADDRESS GLOBAL DISEASE BURDEN

Today < 2 years 2-4 years > 4 years

• Pegfilgrastim • Bevacizumab (US) • Aflibercept2 • Pertuzumab

• Trastuzumab • Aspart (US) • Ustekinumab • Glargine 300 IU
• Bevacizumab (EU) • Adalimumab (US) • Denosumab • Seven undisclosed
• Glargine 100 IU • rh-Insulin (US) programs
• Aspart (EU)
• Vaccines1 (SILS deal Wave 2 biosimilars to
• Adalimumab (EU)
expected to close address ~ USD 20 billion
• Etanercept (EU) in H2 2022) market opportunity3

1
Subject to completion of the acquisition of Covidshield Technologes Private Limited (CTPL) | 2 Expected to be included in BBL portfolio post the
completion of BBL’s acquisition of Viatris’ biosimilar business (Viatris has global rights to the program partnered with Momenta) | 3 Based on reported
CY 2021 sales of originator brands

#
Market opportunity based on reported CY 2021 sales of originator brands

Metamorphosis | 83
Building Robust Intellectual across the U.S. by invalidating Ushering in Operational
Property certain patents related to the device Excellence through Digital
Biocon Biologics' robust in-house and formulation of the originator. Transformation
Intellectual Property (IP) strategy is In FY22, we received favorable Biocon Biologics has drawn on the
helping overcome patent issues in the rulings from the U.S. Federal Circuit latest global technology trends in
courts as litigation remains one of the related to patents covering the the health and life sciences industry
key defence tactics used by branded originator’s device and formulation to draw up its digital transformation
developers to delay biosimilar entry. for administering bGlargine. Biocon strategy and dovetailed it with the
We successfully enabled access to Biologics’ IP portfolio currently Company’s strategic business goals.
bGlargine for millions of patients comprises ~1,000 granted patents. We are deploying digital initiatives

84 | Annual Report 2022

 Biocon Limited

to enhance quality and compliance, We intensified the use of digital tools paper-based questionnaires and
augment productivity through to manage ongoing clinical trials. entries.
enhanced operational excellence Electronic data capture tools were
and enable data integrity through used in all our clinical trials to collect We conducted several pilot projects
technology-led data transparency. data in a timely manner from multiple to evaluate Augmented Reality
sites globally. Data analytics ensured and Artificial Intelligence / Machine
In FY22, we made significant real-time data review while ensuring Learning technologies in our
progress on several key digital high data quality. We deployed an manufacturing and R&D operations.
projects across various functions, electronic patient-reported outcome The results were encouraging and are
including Quality Assurance, Quality (ePRO) tool, allowing patients to being evaluated for production scale
Control, R&D, Supply Chain, fill up questionnaires remotely. This deployment.
Manufacturing Operations, Clinical has not only increased adherence to
Trial Management and Learning & clinical trial protocols but also yielded Our Center of Excellence (Quality
Development. higher quality data compared with Systems Digital Transformation &
Operation Excellence) has enabled
the identification and execution of
digital and process solutions through
structured root cause analysis. The
vision of the CoE is to transform
the quality culture of Biocon Group
through the adoption of Lean Six
Sigma Principles to enable continuous
innovation, consistent right-first-
time delivery, enhanced efficiency,
productivity and agility.

The CoE is developing an overarching

operational excellence framework
through the deployment of digital
solutions to enhance quality and
compliance, augment productivity,
enable data integrity. It will create an
enterprise where everybody works
unitedly to build higher standards of
governance and deliver greater levels
of trust to all our stakeholders.

Metamorphosis | 85
Caring for Our People
At Biocon Biologics, we pride ourselves comprehensive training program to equal organization by 2030. We
on our people-centric approach. We re-skill and cross-skill our employees. have developed a DEI framework and
have built a meritocratic and value- We initiated working on designing a strategy that will be implemented
driven culture, which is appreciated Career Pathing Framework for our throughout the organization going
by our over 5,000-strong workforce. employees, which will further enable forward. We also launched various
internal talent mobility and help career development programs for
During the year, we implemented employees to learn and grow. women leaders and institutionalized
talent strategies to foster learning the DEI Council. In FY22, women
and growth for our employees We continue to make progress on comprised 21% of Biocon Biologics
thus ensuring a high-performance our commitment to Diversity, Equity workforce, signaling an improvement
culture through education, exposure and Inclusion (DEI) in line with our in our gender diversity ratio compared
and experiences. We deployed a ambition of becoming a gender to last year.

Outlook
Biocon Biologics delivered a healthy markets. We continue to see strong portfolio, which targets a USD
performance backed by strong demand for our products in emerging 70 billion# global opportunity, will
demand and seamless execution markets and expect a greater play in provide us with sustainable growth
in FY22. Continued improvement these markets post integration of in the years ahead. The two strategic
in the performance of our existing Viatris' biosimilars business. As we agreements signed with Serum and
products coupled with potential U.S. make progress on the development Viatris will propel us on our path to
launches of bAspart, bBevacizumab of our next wave of biosimilars, we be a fast-growing, global biologics
and bAdalimumab will enable us to expect R&D expenses to increase player with an expected revenue of
deliver robust growth in developed further. Our consolidated biosimilars ~USD 1.8 billion in FY24.

#
Market opportunity size of Biocon Biologics' portfolio based on reported CY 2021 sales of originator brands and biosimilars

86 | Annual Report 2022

Our Research Services Business

Reshaping Scientific
Research
Metamorphosis | 87
Syngene International Limited

Board of
Directors

Kiran Mazumdar-Shaw Jonathan Hunt Prof. Catherine Rosenberg

Non-Executive Chairperson Managing Director and Non-Executive Director
Chief Executive Officer

Kush Parmar Vinita Bali Dr. Carl Decicco

Independent Director Lead Independent Director Non-Executive Director

Paul Blackburn Sharmila Abhay Karve Dr. Vijay Kuchroo

Independent Director Independent Director Independent Director

88 | Annual Report 2022

 Biocon Limited

Syngene International Limited

Executive
Leadership Team

Jonathan Hunt Sibaji Biswas Mahesh Bhalgat

Managing Director and Chief Financial Officer Chief Operating Officer
Chief Executive Officer

Alok Mehrotra Ashu Tandon Jan-Olav Henck

Chief Quality Officer Chief Commercial Sr. Vice President –
Officer Development Services

Kenneth Barr Alex Del Priore Sanjeev Sukumaran

Sr. Vice President – Sr. Vice President – Chief Human Resources Officer
Discovery Services Manufacturing Services

Metamorphosis | 89
 “Looking back over the year, I
am proud of the adaptability
and determination shown by our
employees which has enabled
us to deliver strong operational
performance, despite the continuing
pandemic. Syngene’s strong financial
fundamentals and business continuity
planning delivered a very reliable
service to our customers and this in
turn delivered sustained growth. We
enter the new financial year amid
favorable market conditions with
strong demand and growth prospects
for our services.”

Jonathan Hunt
Managing Director and CEO,
Syngene International Limited

90 | Annual Report 2022

 Biocon Limited

Our Research Services Business

Reshaping Scientific Research

Working with clients around the globe,

Syngene, our integrated research,
development and manufacturing services
subsidiary, delivers innovation to benefit
human and animal health and shape next-
generation materials to improve people’s
lives in the years to come.
Through a combination of prudent
management, disciplined implementation
of COVID protocols on site and in the
laboratories and proactive supply chain
management by advancing purchases and
securing supplies, Syngene was able to
operate at normal levels throughout the year
and mitigate the impact of the pandemic on
operations. This was particularly important
for many clients as the Company was able
to advance their science when their own
facilities were shut. In addition to expanding
existing collaborations, Syngene onboarded
new customers and continued to build
capability and capacity in line with its growth
strategy.
In FY22, overall revenue from operations grew 19%
year-on-year to `26,042 million driven by solid sustained
performances across all revenue streams. Overall, Profit
before tax increased 19% year-on-year. Profit after tax and
before exceptional items grew 10% to `4,211 million as
compared to `3,821 million in FY21.
During the year, the Company formalized its commitment
towards Environmental, Social and Governance (ESG)
activities by forming an ESG Council and publishing its
first ESG Report for the year FY21, aligned with Global
Reporting Initiative reporting standards.

Metamorphosis | 91
Dedicated R&D Centers Discovery Services
Syngene operates dedicated facilities Discovery Services had a strong year. year, the third phase of expansion of
for three global companies: Amgen, The majority of research was focused the laboratory campus in Hyderabad
Baxter Inc. and Bristol Myers Squibb on human health although projects was completed. The facility now
(BMS) at its Bengaluru campus. related to specialty chemicals, other houses approximately 600 scientists
These facilities offer science at scale materials and consumer packaged working on synthetic and organic
delivered by teams of scientists goods were also undertaken. chemistry and integrated drug
working exclusively with in-house discovery projects. Continued
client R&D teams to design sustainable SynVent, the Company’s proprietary expansion in Hyderabad and
solutions to the challenges associated platform for integrated drug discovery Bengaluru is planned during the
with discovering and developing new programs, made strong progress. It is current financial year.
medicines. proving to be a particularly attractive
model for biotech companies that do In a year marked by COVID-19,
Following the 10-year extension of not wish to invest in building their Discovery Biology scientists built
the collaboration with BMS at the own infrastructure or developing on earlier research to continue
end of the previous financial year, their own large-scale discovery and to contribute to the fight against
Syngene’s long-standing contract development teams. At the end of the global pandemic. Early in the
with Amgen was also renewed and SynVent's first full year, there were pandemic, high-quality viral proteins
will run until 2026. Under the new 15 active integrated drug discovery (S1, RBD, N) were initiated for use
contract, the scope of services was programs with more in the pipeline. in diagnostic kits and assays used
expanded and a new dedicated in clinical trials. Syngene is the sole
laboratory will be commissioned to To accommodate sustained growth supplier of S1 protein to U.S.-based
accelerate research and development in this division, investment in diagnostics company Diabetomics for
for Amgen projects. infrastructure continues. During the use in their point-of-care COVID-19
antibody kit. The maker of COVAXIN,
India’s indigenous COVID-19 vaccine,
utilized Syngene’s RBD, S1 and N
proteins in its assays to monitor
clinical efficacy, as published in The
Lancet*.

Development Services
In the Development Services division,
clients can access differentiated
science and expertise from integrated
development solutions including
chemistry, manufacturing and control
(CMC) services, non-GMP and GMP-
compliant clinical manufacturing
facilities and clinical trials services.

Development Services delivered

steady performance throughout the
year. A key feature of the year was
the continued manufacturing of
Remdesivir under a voluntary license

92 | Annual Report 2022

 Biocon Limited

from Gilead. Demand was particularly

high in the first quarter of the year as
India suffered a second wave of the
coronavirus. The Company remains
committed to manufacturing this
important treatment while the
pandemic persists, although it
expects demand to be significantly
less this year.

Recognition of the skill of Syngene

scientists in designing novel solutions
was highlighted by the U.S. patent
filed by Panbela Therapeutics Inc.
citing six employees among the
inventors. The patent was related to
the synthesis of a lead investigational
product in which the number of
production steps was reduced from
17 to six. If the drug is approved, Development. This enabled the unit Manufacturing Services
a streamlined production process to transition from paper to an e-data The complexity of manufacturing
would result in simpler, more cost- laboratory workflow. modern medicines and materials
effective production and the drug at scale requires state-of-the-art
would reach patients quicker. Formulations Development is at
technology, specialist expertise
the forefront of scientific problem-
and industry know-how. Syngene’s
In Clinical Development, investments solving. During the year, the team
manufacturing infrastructure
in new capabilities during the year developed a drug combining four
includes both GMP and non-
included the acquisition of Luminex APIs in a single tablet, which is a
GMP facilities for small molecules,
and flow cytometer technologies for significant challenge from both a
as well as a disposables-based
GLP-compliant biologics, biomarker formulation development and an
mammalian manufacturing facility
and vaccine studies. Commissioning analytical development perspective.
with multiple 2,000L bioreactors.
of a sterile fill-finish facility for With one drug serving the purpose
A microbial manufacturing facility
injectables to support clinical supplies of multiple drugs, combination
was commissioned during the year
is on track and completion is planned therapies are particularly convenient
under review. The facilities, which
for the current fiscal year. This for elderly patients and for use in
are designed to U.S. FDA and EMA
facility will enable clients to fulfill the animal health.
standards, are equipped with flexible,
complete product lifecycle from one
single-use systems for both upstream
single location. The analytical research and
and downstream activities providing
development facility was expanded
advantages of time, cost and
Digitization continues to streamline by an additional 4,000 sq.ft. of
compliance.
bench and trial data handling laboratory space. This will help
with the completion of the to meet the growing demand for
project to introduce electronic analytical solutions and the specialty
laboratory notebooks across Clinical chemicals business.

*Safety and immunogenicity of an inactivated SARS-CoV-2 vaccine, BBV152: interim results from
a double-blind, randomized, multicenter, Phase 2 trial, and 3-month follow-up of a double-blind,
randomized Phase 1 trial (thelancet.com)

Metamorphosis | 93
 Operational Excellence
Operational excellence is a continuing
focus across all operations. During the
year, Syngene made improvements
on multiple metrics and reaped the
benefit of continued investment in
training employees on tools such as
Lean and Six Sigma. The Company
also embraced the Japanese practices
of Gemba and Kaizen which, in
different ways, harness the ideas and
creativity of all its employees to drive
improvement.

Mitigating the Impact of

A new cell banking capability was global regulators in the next
COVID-19
established to manufacture and two years.
characterize GMP cell banks. With this, Despite the pandemic showing signs
the Company can offer a complete In Manufacturing Services, biologics of receding toward the end of the
start-to-end service for both microbial manufacturing continued to gain financial year, protecting the health
and mammalian biopharmaceutical momentum. This business was and safety of Syngene’s workforce
product developers. impacted by global supply chain remained a key area of focus. The
challenges as a result of high demand Company continued to implement
The API manufacturing facility in for certain raw materials due to COVID appropriate safety and control
Mangaluru was certified by the COVID-19 vaccine manufacturing. measures such as regular testing,
Central Drugs Standard Control Looking ahead, there is strong working in shift patterns and social
Organization (CDSCO), the Indian demand for biologics development distancing in line with government
regulatory body for pharmaceuticals. and manufacturing capacity reflecting regulations. There was a campus-
Spread across 46 acres, the site has the growing range of applications wide vaccination drive for employees,
benefited from some USD 80 million of these therapies to treat viruses their families and the community. By
in investment to create a facility and diseases such as cancer. Recent the end of the financial year, 100%
well suited to manufacturing high- investments in mammalian and employees had been vaccinated
value bulk drugs and new chemical microbial facilities put Syngene in a with at least one dose and 96% of
entities. Commercial manufacturing strong position to capture some of employees had received both doses.
is underway with a plan to achieve that demand.
regulatory approvals from major

Outlook
Syngene has entered the new AI-enabled drug discovery. Alongside In biologics development and
financial year amid favorable market the emphasis on digitization and manufacturing, the Company remains
conditions with strong demand and automation, the Company is also focused on building operational
growth prospects for its services. evolving its business models to offer momentum while increasing overall
In the Discovery Research division, clients the choice between existing capacity to meet demand. For small
Syngene will continue to drive FTE- or fee-based contracts and molecules, Syngene’s focus on new
Integrated Drug Discovery solutions contracts based on the achievement chemical entities and molecule flow-
and invest in different capabilities, of predefined milestones. through from Discovery Services
technologies and platforms, including is expected to accelerate capacity
utilization.

94 | Annual Report 2022

 Biocon Limited

Corporate Social Responsibility

Driving Sustainable
Social Change
Metamorphosis | 95
Corporate Social Responsibility

Biocon Foundation

Foundation
EMPOWERING COMMUNITIES

At Biocon, we are intensely conscious

of our role as a responsible corporate
citizen. Our business philosophy,
emphasizing on sustainable
healthcare solutions, finds resonance
in our engagement with our
employees, the environment and
the society at large. Our Corporate
Social Responsibility (CSR) initiatives
are based on the principle of making
transformational and sustainable
impact through programs that
promote social and economic
inclusion.

96 | Annual Report 2022

 Biocon Limited

The Biocon Foundation is the FY22. Over 22,000 hematology Specialist Clinics
principal channel for our corporate and biochemistry lab investigations Over 14,000 patients availed services
philanthropy to build resilient were performed at the clinics during at the Foundation’s community-based
solutions. the year. Specialist Clinics, which address issues
Trained on the use of electronic related to maternal and child health,
eLAJ Smart Clinics geriatric health, oral health, and
medical records (EMRs) and integrated
Biocon Foundation has continually diagnostics, staff at these eLAJ clinics chronic diseases such as diabetes,
invested in ICT-enabled process have been at the forefront of the hypertension and common cancers.
innovations to build sustainable government’s ‘test, track, treat and The continuum of care is ensured
primary healthcare delivery systems. vaccinate’ strategy for COVID-19. through regular follow-ups by
The eLAJ Smart Clinic platform, Community Health Workers (CHWs)
developed in-house, has been Oral Cancer Screening with connecting care given between
deployed to transform Primary Health households and health facilities.
Over 4,000 individuals were screened
Centers (PHCs) into clinics providing
through our Oral Cancer Screening
digitized clinical consultation, Community Vaccination Drive
program using the mobile phone-
advanced diagnostic services and More than 2,700 eligible individuals,
based health (mHealth) application.
non-communicable diseases (NCDs) including senior citizens, people with
A fourth of those screened were
screening. co-morbidities and differently abled
diagnosed and treated for abnormal
The 23 eLAJ centers run by the lesions. This program connects high- individuals, were vaccinated for
Foundation across seven districts risk rural populations in resource- COVID-19 as part of a community
of Karnataka recorded over 70,000 limited settings with specialists for vaccination drive in Huskur
patients' visits. These smart clinics early diagnosis and treatment of oral panchayat, utilizing vaccines donated
benefited over 46,000 patients in cancer. by Syngene International.

Metamorphosis | 97
COVID Care Infrastructure by a third party NABL-accredited quality training and research in
The Foundation supplied oxygen laboratory found the values related biological sciences.
concentrators, Intensive Care to the water quality index of
Unit (ICU) monitors, digital X-Ray Hebbagodi Lake showed incremental Awards & Recognitions
machines, ultrasound machines, improvement as the water moves • 
Mahatma Award 2021 under
pulse oximeters and other medical from inlet towards outlet. ‘Good Health and Well-being’
equipment to bolster the COVID care The Foundation also continued to category
infrastructure at the Anekal General maintain the Huskur Kalyani (pond) • Biocon Foundation Mission Director
Hospital. A Liquid Medical Oxygen through routine cleaning of garbage, Anupama Shetty conferred with
(LMO) storage tank of 2,000-liter weeding and increasing the green South India’s Best CSR Leaders
capacity was installed at the hospital, cover. Award at the National CSR
more than doubling the availability Leadership Congress & Awards
of oxygen-supported beds to 100. It Mass Transit System
also led to five extra ICU beds being • 
Anupama Shetty conferred with
The Foundation released funds for
added to the existing capacity of Bengaluru Women Achievers
the construction of Bengaluru Metro
three ICU beds. Award 2022 by Bangalore Political
Rail Corporation Ltd’s (BMRCL)
Action Committee (B.PAC)
Biocon-Hebbagodi Metro Station.
Rejuvenation of Waterbodies • 
Biocon Foundation’s Oral Cancer
Once inaugurated, the mass rail
Biocon Foundation continued to transit system will provide a people- mHealth program recognized by
maintain the resuscitated 35-acre oriented and environment-friendly the CSR Journal as one of the Top
Hebbagodi Lake through regular transport alternative to commuters. CSR Initiatives for cancer prevention
weeding, clearing of sludge and and early detection on the occasion
garbage, bioremediation, aeration, Higher Education of the National Cancer Awareness
floating wetlands treatment, cleaning The Foundation sponsored the Biocon Day 2021
of lake surroundings and upkeep of Chair at the Institute of Bioinformatics
the children’s park. Security cameras and Applied Biotechnology (IBAB). Read more on Biocon's efforts to
have been installed for enhanced Dr H.S. Subramanya, Director, IBAB, ensure a sustainable and equitable
surveillance. An annual trend analysis holds the chair which drives high future in the ESG Report for FY22.

98 | Annual Report 2022

 Biocon Limited

Biocon Academy

Biocon Academy, which is helping In FY22, over 180 students graduated

build the ecosystem for biotech- from the Academy and all of them
related skills in India, launched a new were placed with leading life sciences
course in Global Regulatory Affairs and pharmaceutical companies.
in collaboration with JSS University, Apart from Biocon and Syngene,
Mysuru. companies like Thermo Fisher,
Dr. Reddy’s Laboratories, Baxter,
The Academy also inducted new Kemwell, Farcast Biosciences, String
batches for its existing courses, Bio, Symbio Generics, Omix Labs etc.
including the Certificate Program participated in our placement drives
in Biosciences in partnership with this year.
Keck Graduate Institute, California;
Certificate Program in Applied The Academy was conferred with the
Industrial Microbiology in partnership Smart Bio Award 2021 in the category
with Birla Institute of Technology & of ‘Best Social Enterprise/Institute’ at
Science, Pilani; and the Certificate the Bengaluru Tech Summit 2021 for
Program in Quality Control Analytical training biotech students to bridge
with MS Ramaiah College of Arts, the academia-industry skill gap.
Science & Commerce, Bengaluru.

Metamorphosis | 99
Corporate Information
BOARD OF DIRECTORS Stakeholders Relationship Committee
Daniel Mark Bradbury, Chairperson
Executive Chairperson
Bobby Kanubhai Parikh
Kiran Mazumdar-Shaw
Prof. Ravi Rasendra Mazumdar
Managing Director and CEO
Siddharth Mittal Chief Financial Officer
Indranil Sen
Non-Executive, Non-Independent Directors
Prof. Ravi Rasendra Mazumdar Company Secretary and Compliance Officer
Eric Vivek Mazumdar Mayank Verma
Independent Directors
Meleveetil Damodaran – Lead Independent Director Statutory Auditors
Bobby Kanubhai Parikh M/s. B S R & Co. LLP
Dr. Vijay Kumar Kuchroo Chartered Accountants
Daniel Mark Bradbury 3rd Floor, Embassy Golf Links Business Park,
Mary Harney Pebble Beach, Off Intermediate Road,
Naina Lal Kidwai (Inducted on April 28, 2022) Domlur, Bengaluru – 560 071, Karnataka, India

BOARD COMMITTEES Secretarial Auditors

Audit Committee M/s. V Sreedharan & Associates

Bobby Kanubhai Parikh, Chairperson Company Secretaries
Daniel Mark Bradbury No. 291, 1st Floor, 10th Main Road,
Meleveetil Damodaran 3rd Block, Jayanagar, Bengaluru - 560 011
Karnataka, India
Risk Management Committee
Bobby Kanubhai Parikh, Chairperson Cost Auditors
Daniel Mark Bradbury M/s. Rao, Murthy & Associates
Meleveetil Damodaran Cost Accountants
Kiran Mazumdar-Shaw Sampurna Chambers
Siddharth Mittal No. 13, 1st Floor-FF2,
Eric Vivek Mazumdar Vasavi Temple Road, VV Puram,
Bengaluru, Karnataka, 560 004, India
Nomination and Remuneration Committee
Mary Harney, Chairperson Registered Office
Dr. Vijay Kumar Kuchroo
Biocon Limited
Daniel Mark Bradbury
20th KM, Hosur Road, Electronic City,
Prof. Ravi Rasendra Mazumdar
Bengaluru, Karnataka, 560 100, India
Naina Lal Kidwai (Inducted on April 28, 2022)

Corporate Social Responsibility and ESG Committee Registrar and Share Transfer Agents (‘RTA’)
Mary Harney, Chairperson KFin Technologies Limited
Dr. Vijay Kumar Kuchroo (formerly known as KFin Technologies Private Limited)
Prof. Ravi Rasendra Mazumdar (Unit: Biocon Limited)
Siddharth Mittal Selenium, Tower – B, Plot No. 31 & 32, Financial District,
Eric Vivek Mazumdar Nanakramguda, Hyderabad - 500 032, India
Naina Lal Kidwai (Inducted on April 28, 2022) E-mail id: [email protected]

100
100 || Annual
Annual Report
Report 2022
 Biocon Limited

FINANCIAL REPORT

Statutory Reports

Boards’ Report 102

Management Discussion and Analysis 134
Corporate Governance Report 161
Business Responsibility & Sustainability Report ***

Financial Statements

Standalone Financial Statements 183

Consolidated Financial Statements 249

*** A separate report ‘TransformAction’, encompassing Business Responsibility & Sustainability Report (BRSR) and Environmental, Social &
Governance (ESG) Report, is being released as a supplement to Annual Report 2022.

Metamorphosis | 101
Board’s Report
Dear Members,

We are pleased to present the Forty-Fourth (44th) Annual Report on the business and operations along with the audited standalone
and consolidated financial statements and the Auditor’s Report of the Company, for the financial year ended March 31, 2022.

Financial Highlights
In ` Million (except EPS)
Particulars Standalone Consolidated
FY22 FY21 FY22 FY21
Total revenue 19,254 21,786 83,967 73,976
Expenses 17,857 18,198 70,956 62,631
Share of Loss of joint venture and associate, net - - (2,069) (794)
Profit before tax and exceptional items 1,397 3,588 10,942 10,551
Exceptional items, net - - (1,111) 126
Profit before tax 1,397 3,588 9,831 10,677
Income tax 536 783 2,115 2,215
Non-controlling interest - - 1,232 1,057
Profit for the year 861 2,805 6,484 7,405
Other comprehensive income, net 80 24 967 1,582
Total comprehensive income 941 2,829 7,451 8,987
Earnings per Share (EPS) after exceptional items 0.72 2.36 5.44 6.24

Standalone and Consolidated Financial Statements State of Affairs

The standalone and consolidated financial statements of the The highlights of the Company’s Consolidated Financial
Company have been prepared in accordance with the Indian performance are as under:
Accounting Standards (‘Ind AS’) as notified under the Companies
(Indian Accounting Standards) Rules, 2015, as amended. The • During the year, our consolidated revenues registered
financial highlights and the results of the operations, including a growth of 13% to ` 83,967 mn from ` 73,976 mn in
major developments have been further discussed in detail in the FY21. From a segment perspective, Biologics recorded an
Management Discussion and Analysis Report. annual growth of 24% and Research services grew by
19% while Generics registered a de-growth of 1%.
Further, a statement containing the salient features of the
financial statements of our subsidiaries pursuant to sub-section • Adjusting for the market to market loss of Biocon Biologics’
3 of Section 129 of the Companies Act, 2013 in the prescribed equity investment in Adagio, Core operating margins
form AOC‑1 is appended as Annexure 1 to the Board’s Report. (EBITDA margins net of licensing, forex and R&D) stood at
The statement also provides the details of performance and the 32% in line with FY21.
financial positions of each of the subsidiaries, associates and
joint venture. • Profit for the year including non-controlling interest stood
at ` 7,716 mn compared to ` 8,462 mn for FY21.

102 | Annual Report 2022

 Biocon Limited

• The effective tax rate (ETR) for the year before the exceptional including cash up to USD 2.335 billion and Compulsorily
item was 22% (20% in FY21). ETR is up 2% since FY21 Convertible Preference Shares (CCPS) in BBL, valued at
included credit for reversal of tax provision for earlier years. USD 1 billion. This transaction is also subject to necessary
regulatory and other approvals.
Exceptional items (Consolidated):
• During the year, Biocon Biologics Limited (“BBL”), a The highlights of the Company’s Standalone Financial
subsidiary of the Company and Goldman Sachs India performance are as under:
AIF Scheme – 1 (Goldman Sachs) entered into an
amendment agreement which resulted in modification • Revenue from operations for FY22 stood at ` 17,382
in the terms of the compound financial instrument. This mn compared to ` 20,284 mn for FY21. Other
resulted into a charge of ` 274 million which is presented income for FY22 amounted to ` 1,872 mn as against
under Exceptional items in the financial statements. ` 1,502 mn in FY21.
Consequential tax impact of `49 million is included within
tax expense during the year ended March 31, 2022. • Core operating margins (EBIDTA margins net of
licensing, impact of forex, R&D and dividend from
• The Government of India capped the total entitlement of subsidiaries) was 17% compared to 25% in the
benefit under the Service Exports from India Scheme (SEIS) previous financial year, primarily due to lower
for services rendered in financial year 2019-2020 to `50 volumes in Generics business.
million per exporter for the period. The Group reversed
the SEIS claim receivables of ` 427 million for the financial • Profit before tax stood at ` 1,397 mn compared to
year 2019-2020 and the same has been presented ` 3,588 mn in FY21. Decrease in standalone profit
under exceptional items in the financial statements. is mainly due to challenges in selling price, increased
Consequential tax impact of `75 million is included within solvents and natural gas price and increased
tax expense. competition in some of our products.

• BBL had obtained services of professional experts (like • Effective tax rate (ETR) for the year was 38% against
advisory, legal counsel, valuation experts etc.) for the asset 22% in FY21. ETR is up since FY21 included credit for
acquisition deal with Viatris and Merger by absorption of reversal of tax provision for earlier years.
Covidshield technologies. These services were availed during
• Profit for the year stood at ` 861 mn compared to
the financial year ended March 31, 2022 and hence, in
` 2,805 mn for FY21.
accordance with Ind AS 103 - Business Combinations, these
have been recorded as expense amounting to ` 410 million
Impact of the COVID-19 pandemic
in the financial statements. Given these are material and
infrequent in nature, the Group has disclosed these expenses The rise of different variants of the COVID-19 once again
under the head ‘Exceptional items’ in the financial statement. dented the pace of economic activity in India. Despite the
Consequential tax impact of ` 169 million is included within unsettling global developments, India’s economy is on the path
tax expense in financial statements. of revival. The Company was dedicatedly committed towards
safeguarding the health and safety of its employees, their
Corporate Acquisitions: families, and other stakeholders.
• The Board of Directors of BBL approved the scheme of
The impact of the pandemic on our business performance is
Merger by Absorption (“the Scheme”) of Covidshield
outlined in the Financial FAQs and under the Management
Technologies Private Limited (“CTPL”), a wholly owned
Discussion and Analysis Report.
subsidiary of Serum Institute Life Sciences Private Limited
(“SILS”), with and into BBL, with an appointed date of
Subsidiaries, Associates and Joint Ventures
October 01, 2022. However, the Scheme is subject to
statutory approvals of certain authorities, shareholders The Company has 20 subsidiaries, 1 joint venture and 2 associates
and creditors. as on March 31, 2022. A report on the performance and financial
position of each Subsidiary, associate and joint venture is outlined
• BBL entered into a definitive agreement with its partner in AOC-1 which is annexed to this report as Annexure 1.
Viatris Inc. to acquire Viatris’ biosimilars business to create
a unique fully integrated global biosimilars enterprise. In accordance with the provisions of Section 136 of the
Viatris will receive consideration of up to USD 3.335 billion, Companies Act, 2013 and the amendments thereto, read
with SEBI (Listing Obligations and Disclosure Requirements)

Metamorphosis | 103
Regulations, 2015 (‘SEBI Listing Regulations’), the audited Biocon Biologics is uniquely positioned as a fully integrated,
financial statements, including the consolidated financial global, ‘pure play’ biosimilars organization and aspires to
statements and related information of the Company and transform patient lives through innovative and inclusive
financial statements of the subsidiary companies will be healthcare solutions. The portfolio of biosimilar molecules
available on our website www.biocon.com. includes a rich pipeline of approved and in-development
biosimilars, outcome of its world class R&D and global scale
The Company has also formulated a policy for determining manufacturing expertise. It is a leading global insulins player
‘material’ subsidiaries pursuant to the provisions of the SEBI with over 15 years of experience in addressing the needs of
Listing Regulations. The policy is available at the website of patients with diabetes, having provided over 2 billion doses
the Company at https://www.biocon.com/investor-relations/ of human insulin worldwide. BBL was the first to receive
corporate-governance/governance-documents-policies/. interchangeability status for Glargine in the US.

A report of the salient features and a summary of the financial During the year, BBL Board of Directors approved the scheme of
performance of each of the subsidiaries, associates and joint Merger (the Scheme) by Absorption of Covidshield Technologies
venture is presented as below: Private Limited (“CTPL”), a wholly owned subsidiary of Serum
Institute Life Sciences Private Limited (“SILS”), with and into
Syngene International Limited, India BBL, with an appointed date of October 01, 2022.
Syngene International Limited (Syngene), subsidiary of
the Company, is an innovation-focused global discovery, BBL entered into a definitive agreement with its partner Viatris
development and manufacturing organisation providing Inc. to acquire Viatris’ biosimilars business to create a unique
integrated scientific services to the pharmaceutical, fully integrated global biosimilars enterprise. Viatris will receive
biotechnology, nutrition, animal health, consumer consideration of up to USD 3.335 billion, including cash up to
goods and specialty chemical industries around the USD 2.335 billion and Compulsorily Convertible Preference
world. Its services include integrated drug discovery and Shares (CCPS) in BBL, valued at USD 1 billion.
development capabilities in chemistry, biology, in vivo and
in vitro pharmacology, toxicology, custom synthesis, process During the year ended March 31, 2022, BBL posted standalone
R&D, cGMP manufacturing, formulation and analytical revenue growth of 22% to ` 23,728 mn (FY21 - ` 19,471 mn)
development along with clinical development services. and a standalone net profit of ` 860 mn (FY21 – ` 2,097 mn).
Syngene is a public limited company incorporated and
domiciled in India and has its registered office in Bengaluru, During the year ended March 31, 2022, BBL posted consolidated
Karnataka, India. The Company’s shares are listed on the revenue growth of 23% to ` 34,747 mn (FY21 - ` 28,036 mn)
BSE Limited (BSE) and the National Stock Exchange of India and a consolidated net profit of ` 3,825 mn (FY21 – ` 2,675 mn).
Limited (NSE) in India.
Biocon Biologics UK Limited, UK (formerly known as
During the year ended March 31, 2022, Syngene (consolidated) Biocon Biologics Limited)
registered a revenue growth of 18% to ` 26,570 mn (FY21 - ` 22,489 Biocon Biologics UK Limited (‘BUK’) which was incorporated
mn). EBIDTA margin for the year was 32% with the operating margin in the United Kingdom in March, 2016 is a wholly owned
at ` 8,489 mn (FY21 - ` 7,364 mn), registering a growth of 15%. subsidiary of BBL. In addition to the interchangeability
designation for Glargine in the United States, biosimilar
Syngene USA Inc. Bevacizumab, was commercialised in the European union
Syngene USA Inc. is a wholly owned subsidiary of Syngene, during the year.
incorporated on August 24, 2017, with its registered office
in the State of Delaware, United States of America (USA). It During the year ended March 31, 2022, BUK earned ` 16,035
provides sales and business support services to the operations mn as revenue and reported a net profit of ` 2,525 mn as against
of Syngene in USA. During FY22, Syngene USA Inc., posted a revenue of ` 13,869 mn and net profit of ` 2,454 mn in FY21. This
revenue of ` 284 mn and reported a net profit of ` 20 mn. growth was a combination of increase in base business as well as
the launch of co-developed products in new territories.
Biocon Biologics Limited, India (formerly known as
Biocon Biologics India Limited) Biocon Sdn. Bhd., Malaysia
Biocon Biologics Limited (‘BBL’), a subsidiary of the Company, Biocon Sdn. Bhd. (‘BSB’) , Malaysia is a wholly owned subsidiary
was incorporated on June 08, 2016 in India with an objective to of BUK. BSB was established with an objective to set up the
set up Greenfield biosimilar biologics facilities. group’s first overseas manufacturing facility at Malaysia. The

104 | Annual Report 2022

 Biocon Limited

facility is located within BioXcell, a biotechnology park in Storage, support services activities related to Therapeutics.
Iskandar Puteri, Johor.
During the year ended March 31, 2022, reported a net profit
The facility is approved for manufacture of Human insulin of ` 1 mn.
and Glargine drug product from National Pharmaceutical
Regulatory Authority (‘NPRA’), Malaysia, cGMP certification Biocon Pharma Limited, India
from HPRA (‘EMA’) and received EIR from U.S. Food and Drug Biocon Pharma Limited (‘BPL’) is a wholly owned subsidiary
Administration (‘USFDA’). of the Company. BPL is engaged in the development and
manufacture of generic formulations for sale in global markets,
BSB holds the commercial and development rights of human with a focus on opportunities in the US and EU. BPL has setup
insulin and analogs and continues the related Research and its formulations manufacturing facility for oral solid dosages at
Development activities. Bengaluru.

During the year, BSB reported a total revenue of ` 7,869 mn BPL launched Everolimus capsules, following an approval from
and net loss of ` 1,080 mn in FY22 against a total revenue of the US FDA in October, 2021.
` 5,309 mn and a net loss of ` 2,481 mn in FY21.
During the year ended March 31, 2022, BPL reported a total
Biocon Biologics Healthcare Malaysia Sdn. Bhd., revenue of ` 6,314 mn and a net profit of ` 1,056 mn as against
Malaysia (formerly known as Biocon Healthcare revenue of ` 2,012 mn and net loss of ` 1,259 mn in FY21. This
Sdn. Bhd.) growth was driven by launch of inhouse developed molecules
Biocon Biologics Healthcare Malaysia Sdn. Bhd. (‘BBHMSB’) in the US.
was incorporated in August, 2017 and is subsidiary of BUK
which undertakes operations for biologics in Malaysia. BBHMSB Biocon Pharma Inc., USA
was set up to carry on the business as importers and distributors Biocon Pharma Inc., (‘BPI’), a wholly owned subsidiary of Biocon
of drugs and devices in the Malaysian market. Pharma Limited was incorporated in July 2015 in USA. BPI is
engaged in the commercialization of generic formulations in
During the year ended March 31, 2022, there were no the United States.
operations in BBHMSB.
BPI registered a total revenue of ` 4,707 mn and net profit of
Biocon Biologics Inc., USA ` 208 mn in FY22 against a total revenue of ` 4,419 mn and a
Biocon Biologics Inc., USA (‘BBIU’) is a subsidiary of BUK net profit of ` 249 mn in FY21.
which was set-up in 2020 to undertake all activities relating to
pharmaceuticals, bio-pharmaceuticals and biologics products, Biocon Pharma UK Limited
i.e. commercialization, distribution etc. in the USA and other Biocon Pharma UK Limited (‘BPUK’), a wholly owned subsidiary of
geographies. Biocon Pharma Limited was incorporated in December, 2018 in
the United Kingdom. BPUK is engaged in the commercialization
During the year ended March 31, 2022, reported a net loss of of generic formulations in the United Kingdom. As on March
` 110 mn as against a net loss of ` 82 mn in FY21. 31, 2022, BPUK has not commenced its commercial operations.

Biocon Biologics Do Brasil Ltda, Brazil During the financial year ended March 31, 2022, BPUK reported
Biocon Biologics Do Brasil Ltda (‘BBDBL’) is a wholly owned Nil loss against a loss of ` 51 mn in FY21.
subsidiary of BUK which was incorporated in FY 21 to undertake
direct marketing services and representatives’ activities and Biocon Pharma Ireland Limited
intermediation in general.
Biocon Pharma Ireland Limited (‘BPIL’), a wholly owned subsidiary
During the year ended March 31, 2022, reported a net loss of of Biocon Pharma Limited was incorporated in December, 2018
` 49 mn as against a net loss of ` 19 mn in FY21. in Ireland. BPIL is engaged in commercialization of generic
formulations in Ireland. As on March 31, 2022, BPIL is yet to
Biocon Biologics FZ–LLC, UAE commence commercial operations. During the financial year
Biocon Biologics FZ-LLC (‘BBFL’) is a wholly owned subsidiary of ended March 31, 2022, BPIL reported a loss of ` 1 mn against
BUK which was incorporated in FY 21 to undertake Import & ` 23 mn in FY21.
Export, Marketing & Sales Promotion, Research & Development,

Metamorphosis | 105
Biocon Pharma Malta Limited (BPML) and Biocon In the current year, BSA registered a net loss of ` 1 mn against
Pharma Malta I Limited (BPMIL) a loss of ` 58 mn in FY21.
BPML and BPMIL, wholly owned subsidiaries of BPL, were
incorporated on January 25, 2021 in Malta. These subsidiaries Biocon FZ LLC
will be engaged in commercialization of generic formulations Biocon FZ LLC is a wholly owned subsidiary of the Company,
and are yet to commence commercial operations as on March based in Dubai. Incorporated in June 2015, Biocon FZ LLC was
31, 2022. During the financial year ended March 31, 2022, established as a marketing entity for pharmaceutical products
BPML reported a loss of ` 1 mn. to target markets in the Middle East and GCC. During the year
ended March 31, 2022, Biocon FZ LLC earned ` 419 mn in
Biocon Biosphere Limited revenue and reported a net profit of ` 2 mn against a revenue
Biocon Biosphere Limited (“BBSL”) is a wholly owned subsidiary of ` 469 mn and a net profit of ` 15 mn in FY21.
of Biocon Limited formed for undertaking similar business to
that of Biocon Limited vide a Greenfield facility in Vizag to de- Bicara Therapeutics Inc., USA
risk fermentation manufacturing at Bengaluru. As on March 31, Bicara Therapeutics Inc., USA (‘Bicara’), was incorporated
2022, BBSL has not commenced commercial operations and in December, 2018 in the United States of America as a
had capital work in progress of ` 3,707 mn as against ` 706 subsidiary of the Company. Bicara was a subsidiary of the
mn in FY21. Company upto January 09, 2021 and thereafter became an
associate company. Bicara is anchoring the development of
Biofusion Therapeutics Limited a pipeline of functional antibodies that exploit the recent
Biofusion Therapeutics Limited is a wholly owned subsidiary of advances in immuno-oncology.
Biocon Limited with its registered office situated in Bangalore,
Karnataka. The Company was incorporated under the In FY21, to enable Bicara to raise further funding for R&D plans,
Companies Act, 2013 on March 18, 2021 for undertaking the existing shareholder arrangements (voting rights & Board
Contract Research and Manufacturing Services (CRAMS) and composition) of Bicara were amended, which resulted in loss
other R & D in the field of pharmaceuticals, including but not of control over Bicara. Accordingly, the Company fair valued
restricted to drug discovery, biotechnology pharmaceuticals, its investment in Bicara on the date of loss of control, which
medicinal sciences etc. During the year ended March 31, 2022, resulted in a dilution gain of `1,597 million. Further during
Biofusion Therapeutics Limited reported a total revenue of FY22, Bicara recorded ` 299 million in Other Income towards
` 402 mn and a net profit of ` 9 mn. stake dilution in associate.

Biocon Academy Bicara, an associate company, is currently in R&D phase and

has incurred losses during the year ended March 31, 2022 of
Biocon Academy, a wholly owned subsidiary of the Company,
` 2,564 million. Bicara accounted a share of loss of ` 2,106
spearheads Biocon Group’s CSR initiatives in technical and
million which resulted in decrease in investment in associates.
professional education. The Academy was established as a
Centre of Excellence for Advanced Learning in Biosciences in
Neo Biocon FZ LLC, UAE
2014. Biocon Academy leverages the rich industry experience
of Biocon, its subject matter expertise alongside international
Neo Biocon FZ LLC, UAE (‘NB’) is a joint venture (‘JV’) based in
Education Partners such as Keck Graduate Institute of Claremont,
Dubai. Incorporated in 2007, NB was established as a market
California (USA) and BITS-Pilani, India to deliver industry-oriented
entity for the pharmaceutical products to target markets in the
advanced learning and skill building programs for pharma and
Middle East and GCC. During the year ended March 31, 2022
biotech graduates. Biocon Academy is dedicated exclusively
NB reported ` 367 mn as revenue and a net profit of ` 78 mn as
to industry-oriented biosciences education. The programs
against a revenue of ` 335 mn and a net loss of ` 198 mn in FY21.
offered by the Academy aim to empower the Biotechnology
The entity has faced significant business challenges in the last
and Engineering graduates with advanced learning, industrial
fiscal resulting from a price reduction mandated by the Ministry
proficiency and job-skills development, the essential building
of Health, UAE. Whilst this challenge was being addressed, our JV
blocks for a promising career in the Biotech industry.
partner has come under investigation for governance issues which
is likely to have a reputational impact on the JV.
Biocon SA, Switzerland
Biocon SA (‘BSA’), a wholly owned subsidiary of the Company, is Due to regulatory challenges, the group has not been able to
primarily engaged in identifying and developing novel molecules exit, and it continues to evaluate its option with respect to
into commercial products or licensable assets through strategic exit.
partnerships.

106 | Annual Report 2022

 Biocon Limited

Hinduja Renewables Two Private Limited Management’s Discussion and Analysis

During the financial year ended March 31, 2021, the Company Pursuant to Regulation 34 of the SEBI Listing Regulations, the
had acquired 26% equity stake in Hinduja Renewables Two Management Discussion and Analysis Report for the year under
Private Limited towards enhancing the renewable based power review, is forming part of the Annual Report.
consumption. The Company does not consolidate the associate
since it does not exercise significant influence over it. Corporate Governance
The Company is committed to maintain the highest standards
Dividend of corporate governance. We believe in adherence to good
In line with the Dividend Distribution Policy of the Company, we corporate practices, implementing effective policies and guidelines
recommend a final dividend of ` 0.50/- per equity share (i.e. 10% and developing a culture of the best management practices and
of face value) for the financial year ended March 31, 2022. The compliance with the law at all levels. Our corporate governance
dividend, if approved at the ensuing 44th Annual General Meeting practices strive to foster and attain the highest standards of integrity,
(‘AGM’), will be paid to those members whose names appear in transparency, accountability and ethics in all business matters to
the Register of Members as on close of July 01, 2022. The total enhance and retain investor trust, long-term shareholder value and
dividend payout will be approximately ` 60 Crores. respect minority rights in all our business decisions.

Dividend Distribution Policy A separate section on Corporate Governance as stipulated

In terms of Regulation 43A of the SEBI Listing Regulations, the under Schedule V (C) of the SEBI Listing Regulations forms part
Board has formulated and adopted the Dividend Distribution of this report. The Corporate Governance Report along with the
Policy. The Policy is available on the website of the Company requisite certificate from the statutory auditors of the Company
at https://www.biocon.com/investor-relations/corporate- confirming compliance with the conditions of corporate
governance/governance-documents-policies/. governance as stipulated under SEBI Listing Regulations forms
part of this Annual Report.
Transfer to reserves
Business Responsibility and Sustainability Reporting
No amount is proposed to be transferred to reserves for the
financial year ended March 31, 2022. The Business Responsibility and Sustainability Reporting
(“BRSR”), originating from the MCA report on Business
Share Capital Responsibility Reporting, had found its way into the regulatory
provisions by way of an amendment to the Regulation 34(2)(f)
During the year, the Company had allotted 6,00,000 equity
of the SEBI Listing Regulations, notified on May 05, 2021.
shares of ` 5/- each in pursuance of the Biocon Restricted
Stock Units -Long Term Incentive Plan 2020-24 to the Biocon
The BRSR has replaced the existing Business Responsibility
Employees Welfare Limited Trust. The share capital of the
Reporting (‘BRR’) format w.e.f. FY 2022-23. For the FY 2021-
Company as on March 31, 2022 is as follows:
22, the top 1000 listed entities may voluntarily submit the BRSR,
and from FY 2022-23 onwards, the same must be prepared and
Particulars FY 2022 FY 2021 submitted mandatorily.
Amount in ` Amount in `
Authorized Equity Share 6,250,000,000 6,250,000,000 The Company has, on a voluntary basis furnished the
Capital requirements on the BRSR for FY 2021-22. The same forms part
(Equity shares of ` 5/- each) of this Annual Report as a separate report and is also available
at the website of the Company at www.biocon.com.
Paid up Equity Share Capital 6,003,000,000 6,000,000,000
(Equity shares of ` 5/- each)
Employee Stock Option Plan (ESOP)
Biocon’s Employee Stock Option Plan (‘Plan’) is administered
Human Resource Development
by the Biocon India Limited Employees’ Welfare Trust (ESOP
We, at Biocon, give paramount importance to our employees, Trust) under the instructions and supervision of the Nomination
who we believe to be our greatest assets. Attracting and and Remuneration Committee (NRC). The Plan is implemented
retaining the best talents have been the cornerstone of the through a trust route in accordance with SEBI (Share Based
Human Resource function at Biocon. We strive to create a diverse Employee Benefits and Sweat Equity) Regulations, 2021 (‘SEBI
and inclusive environment that is value driven, collaborating Regulations’) with a view to attracting and retaining the best
and growth inducing. The total head count as on March 31, talent, encouraging employees to align individual performances
2022 stood at 3,203. with Company objectives, and promoting increased participation

Metamorphosis | 107
by them in the growth of the Company. diversity and specific qualifications required for the position.

During the year, a total of 38,17,697 and 4,30,762 shares were For the purpose of selection of any Director, the Nomination
transferred from the ESOP Trust to the eligible employees under and Remuneration Committee identifies persons of integrity
the Company’s prevailing ESOP plan and Biocon Restricted who possess relevant expertise, experience and leadership
Stock Unit Long Term Incentive Plan FY 2020-24, respectively. qualities required for the position. A potential board member is
also assessed based on independence criteria defined in Section
As on March 31, 2022, the ESOP Trust cumulatively held 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of
75,20,315 equity shares of the Company both under the ESOP the SEBI Listing Regulations.
Plans of the Company. During the year ended March 31, 2022,
there has been no material change in the Company’s existing In accordance with Section 178(3) of the Companies Act, 2013
plans and they both are in compliance with SEBI Regulations. and Regulation 19(4) of the SEBI Listing Regulations, as amended
from time to time, and on recommendation of the Company’s
The applicable disclosures as stipulated under the SEBI Nomination and Remuneration Committee, the Board had
Regulations as on March 31, 2022 are appended herewith as adopted a remuneration policy for Directors, Key Managerial
Annexure 2 to the Board’s report. The details of the Plan form Personnel, Senior Management and other employees. This
part of the notes to accounts of the Financial Statements in policy is available at the website of the Company at https://
this Annual Report. The Company has received a certificate www.biocon.com/investor-relations/corporate-governance/
from the Practicing Company Secretary, that the ESOP and governance-documents-policies/.
RSU schemes have been implemented in accordance with SEBI
Regulations and the resolutions passed by the shareholders. As on March 31, 2022, the Board comprised of 9 (nine)
The certificate would be placed at the AGM for inspection by members, consisting of 2 (two) Executive Directors, 2 (two)
the members. Non-Executive Non-Independent Directors, and 5 (five)
Independent Directors. Out of the total members, 2 (two) are
women directors. The Board periodically evaluates the need for
Further, based on the recommendation of Nomination and
change in its composition and size.
Remuneration Committee, the Board at its meeting held on
April 28, 2022, has approved the amendment (with respect
Board Diversity
to the options granted but not yet exercised) and termination
of the Biocon Limited Employee Stock Option Plan 2000 and The Company recognises and embraces the importance of a
amendment to the Biocon Restricted Stock Unit Long Term diverse board in contributing to its success. Adequate diversity
Incentive Plan FY 2020-24 of the Company subject to the on the Board is essential to meet the challenges of business
shareholders’ approval at the ensuing AGM of the Company. globalisation, rapid deployment of technology, greater social
responsibility, increasing emphasis on corporate governance
Deposits and enhanced need for risk management. The Board enables
efficient functioning through differences in perspective and
The Company has not accepted any deposit, including from the
skill, and fosters differentiated thought processes at the
public, and as such no amount of principal and interest were
back of varied industrial and management expertise, gender,
outstanding as at March 31, 2022.
knowledge and geographical backgrounds. The Board has
adopted the Board Diversity Policy which sets out the approach
Particulars of Loans, Guarantees or Investments
to diversity of the Board. The policy is available at the website
Details of loans, guarantees and investments covered under the of the Company at https://www.biocon.com/investor-relations/
provisions of Section 186 of the Companies Act, 2013 forms corporate-governance/governance-documents-policies/.
part of the notes to the Financial Statements provided in this
Annual Report. Declaration by Independent Directors
All Independent Directors of the Company have submitted the
Policy on Directors’ Appointment and Remuneration
requisite declarations confirming that they meet the criteria
The Company’s current policy centralises on having an of independence as prescribed under Section 149(6) of the
appropriate mix of Executive, Non-Executive and Independent Act read with Regulation 16 and 25(8) of the SEBI Listing
Directors to maintain the independence of the Board and Regulations. The Independent Directors have also confirmed
separate its functions of governance and management. that they have complied with Schedule IV of the Act and the
Assessment and appointment of Directors to the Board are Company’s Code of Conduct.
based on a combination of criterion that includes ethics,
personal and professional stature, domain expertise, gender

108 | Annual Report 2022

 Biocon Limited

They have further confirmed that they are not aware of any Non-Executive, Non-Independent Director of the Company
circumstance or situation which exists or may be reasonably with effect from November 1, 2021, subject to the approval of
anticipated that could impair or impact their ability to discharge members at its ensuing AGM.
their duties and that they are independent of the management.
Further, the Independent Directors have also submitted their Further, the Board of the Company at its meeting held on April
declaration in compliance with the provision of Rule 6(3) of the 28, 2022, based on the recommendation of Nomination and
Companies (Appointment and Qualification of Directors) Rules, Remuneration Committee, had approved the appointment
2014, which mandated the inclusion of an Independent Director’s of Naina Lal Kidwai as an Additional Director categorised as
name in the data bank of the Indian Institute of Corporate Non-Executive and Independent Director of the Company with
Affairs (‘IICA’) for a period of one year or five years or life time effect from April 28, 2022 till the conclusion of the 47th AGM
till they continue to hold the office of an independent director. proposed to be held in the year 2025, subject to the approval
All the Independent Directors are exempted from appearing the of members at its ensuing AGM.
Online Proficiency Self-Assessment Test conducted by IICA.
Re-appointment
In the opinion of the Board, all the independent directors have
integrity, expertise and experience.
As per the provisions of the Companies Act, 2013 and Articles
of Association of the Company, Kiran Mazumdar-Shaw is
Board Evaluation
liable to retire by rotation at the ensuing AGM and being
Pursuant to the provisions of Section 134 of the Companies eligible, seeks re-appointment. Once she is re-appointed by the
Act, 2013 and Regulation 19 of the SEBI Listing Regulations, members at the ensuing AGM, she will continue as an Executive
the annual performance evaluation of the Board, Board level Chairperson for her term of 5 (five) years as approved by the
Committees and individual directors was conducted during shareholders at AGM held on Friday, July 24, 2020.
the year, in order to ensure that the Board and Board level
Committees are functioning effectively and demonstrating The Board at its meeting held on April 28, 2022, had
good governance. Once in every 3 (three) years, the Board recommended above appointments and re-appointment and
evaluation is done by an external agency. For the current FY separate Resolution(s) shall be placed before the members for
2021-22, the Board had undertaken this exercise through self- their approval at the ensuing AGM.
evaluation questionnaires.
In the opinion of the Board, all the Directors, as well as the
The evaluation was carried out based on the criteria and directors proposed to be appointed/re-appointed possess the
framework approved by the Nomination and Remuneration requisite qualifications, experience, expertise and hold high
Committee. A detailed disclosure on the parameters and the standards of integrity and relevant proficiency.
process of Board evaluation has been provided in the Report on
Corporate Governance. Completion of tenure of Directors

Directors Daniel Bradbury and Mary Harney, Independent Directors of the

Company, would complete their second term of tenure with
As on March 31, 2022, the Board of Directors comprised of 9 the Company on July 27, 2022. Accordingly, they would cease
(nine) members including 2 (two) women members. The Board to be the Directors of the Company with effect from that date.
has an appropriate mix of Executive Directors (‘EDs’), Non- The Board places on record its appreciation for the extensive
Executive Non-Independent Directors (‘NEDs’) and Independent contribution rendered by Daniel Bradbury and Mary Harney
Directors (‘ID’), which is compliant with the Companies Act, during their tenure at Biocon.
2013, the SEBI Listing Regulations and is also aligned with the
best practices of Corporate Governance. During the year, John Shaw has stepped down as the
Non-Executive Director of the Company, owing to health
Appointment conditions, with effect from the conclusion of the 43rd Annual
General Meeting held on July 23, 2021. The Board expressed
The Board of the Company at its meeting held on October deep appreciation and gratitude to him, for his stewardship and
21, 2021, based on the recommendation of Nomination and guidance over the past 22 years.
Remuneration Committee, had approved the appointment of
Eric Vivek Mazumdar as an Additional Director categorised as

Metamorphosis | 109
Key Managerial Personnel

The Key Managerial Personnel(s) of the Company as on March 31, 2022 are Kiran Mazumdar-Shaw, Executive Chairperson,
Siddharth Mittal, Managing Director & CEO, Indranil Sen, Chief Financial Officer and Mayank Verma, Company Secretary &
Compliance Officer.

On April 28, 2021, Anupam Jindal has stepped down as the Chief Financial Officer of the Company, owing to personal reasons and
the Board has appointed Indranil Sen as the Chief Financial Officer of the Company with immediate effect.

Kiran Mazumdar-Shaw, Executive Chairperson of the Company, is also the Non-Executive Chairperson of Syngene International
Limited (Syngene) and Executive Chairperson of Biocon Biologics Limited (BBL), both being subsidiaries of the Company and is in
receipt of remuneration from the respective companies for the Financial Year 2021-22.

Committees of the Board

Currently, the Company has 5 (five) Board level Committees: Audit Committee (‘AC’), Risk Management Committee (‘RMC’),
Nomination and Remuneration Committee (‘NRC’), Stakeholders Relationship Committee (‘SRC’) and Corporate Social Responsibility
and ESG Committee (‘CSR & ESG’). The composition of the above committees, as on March 31, 2022 is disclosed as under:

S. Name of Members Category AC RMC NRC SRC CSR & ESG

No. C M C M C M C M C M
1 Kiran Mazumdar-Shaw Executive Chairperson •
2 Siddharth Mittal Managing Director & CEO • •
3 Prof. Ravi Rasendra Mazumdar Non-Executive Director • • •
4 Eric Vivek Mazumdar Non-Executive Director • •
5 Bobby Kanubhai Parikh Independent Director • • •
6 Daniel Mark Bradbury Independent Director • • • •
7 Meleveetil Damodaran Independent Director • •
8 Mary Harney Independent Director • •
9 Dr. Vijay Kumar Kuchroo Independent Director • •
C: Chairperson and M: Member.

Meetings of the Board Related Party Contracts or Arrangements

The meetings of the Board are scheduled at regular intervals There were no materially significant related party transactions
to discuss and decide on matters of business performance, entered between the Company, Directors, management and their
policies, strategies and other matters of significance. The relatives, except for those disclosed in the financial statements.
schedule of the meetings is circulated in advance, to ensure All the contracts/arrangements/transactions entered by the
proper planning and effective participation. In certain Company with the related parties during FY 2021-22 were in
exigencies, decisions of the Board are also accorded through the ordinary course of business and on an arm’s length basis, and
circulation. whenever required the Company has obtained necessary approval
as per the related party transaction policy of the Company.
During the financial year 2021-22, the Board met 5 (five)
times virtually on April 28, 2021, July 22, 2021, October Accordingly, particulars of contracts or arrangements with
21, 2021, January 20, 2022 and February 27, 2022. The related parties referred to in Section 188(1) along with the
maximum interval between any two meetings did not exceed justification for entering into such a contract or arrangement in
120 days, as prescribed in the Companies Act, 2013. Detailed Form AOC-2 does not form a part of the Report.
information regarding the meetings of the Board is included
in the report on Corporate Governance, which forms part of The Company formulated the policy on ‘Materiality of
this annual report. Related Party’ transactions and on dealing with Related Party
Transactions’, and the same is available at the website of

110 | Annual Report 2022

 Biocon Limited

the Company at https://www.biocon.com/investor-relations/ financial year ended March 31, 2021, was filed with the
corporate-governance/governance-documents-policies/. The Central Government within the prescribed time. The Board, on
details of related party disclosures form part of the notes to the recommendation of the Audit Committee, had appointed M/s
Financial Statements provided in the Annual Report. Rao & Murthy, Cost Accountants (Firm Registration Number
000065) as the Cost Auditors to conduct the audit of Company’s
Credit Ratings cost records for the financial year ended March 31, 2022. The
During the year under review, CRISIL vide its letter dated March Cost Auditors will submit their report for the FY 2021-22 on or
9, 2022 has placed its ‘CRISIL AA+’ rating on the long-term before the due date.
bank facilities of the Company on ‘Watch with Developing
The Board, on recommendation of the Audit Committee
Implications’. The rating on the short-term bank facilities has
has appointed M/s Rao & Murthy, Cost Accountants (Firm
been reaffirmed at ‘CRISIL A1+’.
Registration Number 000065) as the Cost Auditors to conduct
Further, ICRA Limited vide its letter dated March 10, 2022 has the audit of Company’s cost records for the FY 2022-23. The
placed its ‘ICRA AA+’ and ‘ICRA A1+’ ratings on the long term Cost Auditors have confirmed that their appointment is within
and short-term banking facilities of the Company on ‘Watch the limits of Section 141(3) (g) of the Companies Act, 2013 and
with Developing Implications’. have also certified that they are free from any disqualifications
specified under Section 141(3) and proviso to Section 148(3)
The above ratings were placed under watch with developing read with Section 141(4) of the Companies Act, 2013. The
implications, pursuant to the announcement made by the Audit Committee has also received a certificate from the
Company vide its letter dated February 27, 2022, on the Cost Auditors certifying their independence and arm’s length
acquisition of the biosimilar assets of US-based Viatris Inc. by relationship with your Company.
Biocon Biologics Limited (‘BBL’), a subsidiary of the Company,
for a total consideration of USD 3.335 billion. In accordance with the provisions of Section 148 of the Act read
with the Companies (Audit and Auditors) Rules, 2014, since
Conservation of Energy, Technology Absorption, the remuneration payable to the Cost Auditor is required to be
Foreign Exchange Earnings & Outgo ratified by the members, the Board recommends the same for
approval by members at the ensuing AGM.
The particulars as prescribed under sub-section (3)(m) of Section
134 of the Companies Act, 2013, read with the Companies
Secretarial Auditors
(Accounts) Rules, 2014, is appended herewith as Annexure 3 to
the Boards’ report. Pursuant to the provisions of Section 204 of the Companies
Act, 2013 and rules thereunder, M/s V. Sreedharan & Associates,
AUDITORS Practicing Company Secretaries were appointed to conduct the
secretarial audit of the Company for the financial year 2021-
Statutory Auditors
22. The Secretarial Audit Report for the FY 2021-22 does not
M/s. B S R & Co. LLP, Chartered Accountants (ICAI Registration contain any qualification, reservation or adverse remark or
No. 101248W/W-100022) were appointed as the Statutory disclaimer and is appended herewith as Annexure 4 to the
Auditors of the Company for a term of 5 (five) years, to hold Boards’ report.
office from the conclusion of the 43rd AGM held on July 23,
2021 till the conclusion of the 48th AGM, on such remuneration Pursuant to the provisions of Regulation 24A of the SEBI Listing
as may be decided by the Board in consultation with the Regulations, Biocon Biologics Limited, a material unlisted
Statutory Auditors of the Company. subsidiary of the Company undertook the secretarial audit for
the financial year 2021-22. The secretarial audit report for FY
The Auditors’ Report on the financial statements of the Company 2021-22 given by M/s V. Sreedharan & Associates, Practicing
for the financial year ended March 31, 2022 is unmodified i.e. Company Secretaries is appended herewith as Annexure 4A of
it does not contain any qualification, reservation or adverse the Boards’ report.
remark or disclaimer. The Auditors’ Report is enclosed with the
financial statements forming part of the annual report. Pursuant to the SEBI circular vide no. CIR/CFD/CMD/1/27/2019
dated February 8, 2019, the Annual Secretarial Compliance
Cost Auditors Report for the FY 2021-22, issued by M/s. V. Sreedharan &
The Cost Records of the Company are maintained in accordance Associates, Practicing Company Secretaries shall be submitted
with the provisions of Section 148(1) of the Act as specified with the stock exchanges where shares of the Company are
by the Central Government. The Cost Audit Report, for the listed, within stipulated timeline.

Metamorphosis | 111
Reporting of fraud by Auditors criteria established by the Company considering the essential
During the year, the statutory auditors have not reported to the components of internal control stated in the guidance note on
Audit Committee any material fraud on the Company by its audit of internal control over financial reporting issued by the
officers or employees under Section 143(12) of the Companies Institute of Chartered Accountants of India.
Act, 2013, the details of which need to be provided in this
report. Vigil Mechanism
The Vigil Mechanism as envisaged in the Companies Act,
Risk Management Policy 2013, the rules prescribed thereunder, and the SEBI Listing
The Company has formed a Risk Management Committee Regulations is implemented through the Whistle Blower Policy
and has put in place an enterprise wide Risk Management of the Company to enable the Directors, employees and all
Framework with the objective of timely identification of risks, stakeholders of the Company to report genuine concerns, to
assessment and evaluation of such risks in line with the overall adequately safeguard against victimisation of persons who use
business objectives or strategies and define adequate mitigation such mechanism and make provision for direct access to the
strategy. On a quarterly basis, the Risk Management Committee Chairperson of the Audit Committee.
reviews critical risks on a rotation basis in line with the risk
management plan to measure effectiveness of mitigation Whistle Blower Policy of the Company is available on the
actions defined against critical risks and its impact on overall risk Company’s website and can be accessed at https://www.biocon.
exposure of the Company. All the critical risk areas are covered com/investor-relations/corporate-governance/governance-
at least once a year. All critical risk areas as identified by the documents-policies/.
Company are re-evaluated annually. During the course of year,
appropriate changes were made to the risk register, considering Directors’ Responsibility Statement
internal or external changes. Pursuant to the requirement under Section 134 (3) (c) of the
Companies Act, 2013, your directors confirm that:
Internal Financial Control
The Company has laid down guidelines, processes and structures, a. In the preparation of the annual accounts, the applicable
which enable implementation of appropriate internal financial accounting standards have been followed along with
controls across the organisation. Such internal financial controls proper explanation relating to material departures;
encompass policies and procedures adopted by the Company
b. they have selected such accounting policies and applied
for ensuring the orderly and efficient conduct of business,
them consistently and made judgements and estimates
including adherence to its policies, safeguarding of its assets,
that are reasonable and prudent so as to give a true and
prevention and detection of frauds and errors, the accuracy and
fair view of the state of affairs of the Company at the
completeness of accounting records and the timely preparation
end of the financial year and of the profit and loss of the
of reliable financial information. These include controls in the
Company for that period;
nature of manual or automated (IT applications including the
ERP applications wherein the transactions are approved and
c. they have taken proper and sufficient care for the
recorded). Appropriate review and control mechanisms are put
maintenance of adequate accounting records in
in place to ensure that such control systems are adequate and
accordance with the provisions of the Companies Act,
are operating effectively on an ongoing basis.
2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
Because of the inherent limitations of internal financial controls,
including the possibility of collusion or improper management
d. they have prepared the annual accounts on a going
override of controls, material misstatements in financial reporting
concern basis;
due to error or fraud may occur and not be detected. Also,
evaluation of the internal financial controls are subject to the
e. they have laid down internal financial controls based on the
risk that the internal financial control may become inadequate
internal controls framework established by the Company,
because of changes in conditions, or that the compliance with
which were adequate and are operating effectively; and
the policies or procedures may deteriorate.
f. they have devised proper systems to ensure compliance
The Company has, in all material respects, an adequate internal
with the provisions of all applicable laws and that such
financial control system and such internal financial controls
systems were adequate and operating effectively.
which were operating effectively based on the internal control

112 | Annual Report 2022

 Biocon Limited

Particulars of Employees support the grant towards Biocon-Hebbagodi Metro station. The
The statement containing particulars in terms of Section Biocon-Hebbagodi Metro station will form part of the new line
197(12) of the Companies Act, 2013 read with rule 5(1) of the of 18.82 KM from R V Road to Bommasandra, being constructed
Companies (Appointment and Remuneration of Managerial under Phase II of the Bengaluru Metro Rail Project. The Metro
Personnel) Rules, 2014 forms part of this report and is appended connectivity would provide a sustainable and efficient mode of
herewith as Annexure 5 to the Boards’ report. transport to residents and business commuters from all parts of
Bengaluru, reducing traffic congestion on Hosur Road and helping
The statement containing particulars in terms of Section lower the environmental impact from vehicular pollution.
197(12) of the Companies Act, 2013 read with rule 5(2) and
5(3) of the Companies (Appointment and Remuneration of In the commitment towards natural resource conservation, the
Managerial Personnel) Rules, 2014 forms part of this report. The company has resuscitated the 35-acre Hebbagodi Lake, and
above statement is available on the website of the Company at the existing efforts are focused on maintenance of the lake.
www.biocon.com. It involves bioremediation, aeration, floating island treatment,
removal of weeds, sludge and garbage, cleaning of lake
However, considering the first proviso to Section 136(1) of surroundings and upkeep of a children’s park. Security cameras
the Companies Act, 2013, the Annual Report, excluding the have been installed for enhanced surveillance. Water quality
aforesaid information, is being sent to the members of the analysis by a third-party NABL-accredited laboratory suggests
Company and others entitled thereto. The said information is that several parameters indicative of chemical, physical, and
available for inspection at the registered office of the Company biological properties are normal as a result of remediation
during business hours on working days of the Company up to efforts undertaken. Biocon Academy is dedicated exclusively to
the date of the ensuing AGM. Any shareholder interested in industry-oriented biosciences education which aims to address
obtaining a copy thereof, may write to the secretarial team of the skill deficit in the Biopharma sector, by developing high-end
the Company in this regard. talent through advanced learning. The programs offered by the
Academy aim to empower the Biotechnology and Engineering
Corporate Social Responsibility (CSR) graduates with advanced learning, industrial proficiency and
At Biocon, CSR has been an integral part of our business since its job-skills development, the essential building blocks for a
inception. With the incorporation of Biocon Foundation in 2004, promising career in the Biotech industry.
the Company formally structured its CSR activities. Today, the
Company span its CSR efforts through the Biocon Foundation, In compliance with the provisions of Section 135 of the Companies
the Biocon Academy and select partnership programs with Act, 2013, the Board has formed a Corporate Social Responsibility
like-minded private organizations and Government, aimed at and ESG Committee, which monitors and oversees various CSR
promoting social and economic inclusion for the marginalized initiatives and activities of the Company. As on March 31, 2022, the
communities. In the year under consideration, the CSR programs CSR & ESG Committee comprises of Mary Harney (Chairperson),
of the Company were focused on providing financial assistance Dr. Vijay Kumar Kuchroo, Prof. Ravi Rasendra Mazumdar, Eric Vivek
for sustainable urban public transport system and high-quality Mazumdar and Siddharth Mittal.
vocational training for youth in biosciences.
A detailed report regarding Corporate Social Responsibility is
Environmental Sustainability - appended herewith as Annexure 6 to the Boards’ report. The
Policy on Corporate Social Responsibility and Annual Action
Air pollution levels continue to be a serious public health concern Plan have been uploaded on to the website of the Company
in Bengaluru. Traffic congestions and abysmally slow commute and is available at https://www.biocon.com/investor-relations/
speed have tremendous adverse impacts on the quality of life of corporate-governance/governance-documents-policies/.
the residents in the city.
Sexual Harassment of Women at Workplace
In keeping with the unwavering commitment to ecological balance (Prevention, Prohibition and Redressal) Act, 2013
and sustainability, the Company has supported a people-oriented Your Company has in place an Anti-Sexual Harassment Policy in
and environment-friendly transport alternative. Mass rail transit line with the requirements of the Sexual Harassment of Women
systems lessen the usage of individual vehicles thereby reducing at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
toxic emissions and greenhouse gases. Biocon Foundation has An Internal Complaints Committee (ICC) has been set up to
signed a memorandum of understanding with Bengaluru Metro redress complaints received regarding sexual harassment. All
Rail Corporation (BMRCL) in 2020 to fund the construction of employees (permanent, contractual, temporary, trainees) are
the proposed Metro Station at Hebbagodi, and we continue to covered under this Policy. The Policy is gender neutral.

Metamorphosis | 113
During the financial year under review, 2 (two) complaints with There has been no change in the nature of the business of the
allegations of sexual harassment were filed and both were Company.
disposed-off and no complaint is pending for closure as per the
timelines of the Sexual Harassment of Women at Workplace Annual Return
(Prevention, Prohibition and Redressal) Act, 2013. The Annual Return of the Company as per the provisions of
Section 134(3)(a) and 92(3) of the Companies Act, 2013, is
Transfer of Unpaid and Unclaimed Amounts to available on the website of the Company at www.biocon.com.
Investor Education and Protection Fund (‘IEPF’)
Pursuant to the provisions of Section 124(5) of the Companies Secretarial Standards issued by the Institute of
Act, 2013, read with the IEPF Authority (Accounting, Audit, Company Secretaries of India (ICSI)
Transfer and Refund) Rules, 2016, all dividends which remains In terms of Section 118(10) of the Act, the Company has
unpaid or unclaimed for a period of seven years from the date complied with the applicable Secretarial Standards i.e. SS-1,
of their transfer to the unpaid dividend account are required to SS-2 and SS-4, relating to the ‘Meetings of the Board , ‘General
be transferred by the Company to the Investor Education and Meetings’ and ‘Report of the Board of Directors’ respectively, as
Protection Fund (‘IEPF’), established by the Central Government. specified by the Institute of Company Secretaries of India (ICSI)
Further, as per IEPF Rules, the shares on which dividend has not and approved by the Central Government.
been paid or claimed by the members for seven consecutive
years or more shall also be transferred to the demat account Green Initiative
of the IEPF Authority. Further, as per Rule 6(8) of IEPF Rules, all We request all the shareholders to support the ‘Green Initiative’
benefits such as bonus shares, split, consolidation except right of the Ministry of Corporate Affairs and Biocon’s continuance
issue, accruing on shares which are transferred to IEPF, shall also towards greener environment by enabling the service of the
be credited to the demat account of the IEPF authority. Annual Report, AGM Notice and other documents electronically
to your email address registered with your Depository Participant/
During the year ended March 31, 2022, the Company has Registrar and Share Transfer Agent.
transferred unpaid and unclaimed dividends of `7,75,020 for
the financial year 2013-14 and 16,297 corresponding equity Acknowledgement
shares on which dividends were unclaimed for seven consecutive
years were transferred as per requirements of the IEPF Rules. We place on record our appreciation for the committed
services by every member of the Biocon family globally whose
Significant and Material Orders contribution was significant to the growth and success of the
There are no significant and material orders passed during the Company. We would like to thank all our clients, partners,
year by the regulators, courts or tribunals impacting the going vendors, investors, bankers and other business associates for
concern status and Company’s operations in the future. their continued support and encouragement during the year.

Statutory Disclosures We also thank the Government of India and Malaysia,

Government of Karnataka, Government of Telangana,
None of the Directors of the Company are disqualified as per
Government of Andhra Pradesh, Ministry of Information
the provisions of Section 164(2) of the Companies Act, 2013.
Technology and Biotechnology, Ministry of Health, Ministry
Your Directors have made necessary disclosures, as required
of Commerce and Industry, Ministry of Finance, Department
under various provisions of the Companies Act, 2013 and the
of Pharmaceuticals, Department of Scientific and Industrial
SEBI Listing Regulations.
Research, Ministry of Corporate Affairs, Central Board of
Material Changes and Commitments Indirect Taxes and Customs, Income Tax Department, CSEZ,
and all other regulatory agencies for their assistance and co-
No material changes and commitments affecting the financial
operation during the year and look forward to their continued
position of the Company have occurred between March 31,
support in the future.
2022 and the date of this report.
For and on behalf of the Board
Change in Nature of Business
The Company continues to be a pioneer biopharmaceutical
company engaged in manufacturing active pharmaceutical Sd/-
ingredients and formulations, including biosimilar drugs for Kiran Mazumdar-Shaw
diabetics, oncology and autoimmune diseases with sales in Place: Bengaluru Executive Chairperson
markets across the globe. Date: April 28, 2022 DIN: 00347229

114 | Annual Report 2022

 FORM AOC -1
Annexure 1- Statement containing salient features of the financial statement of subsidiaries /associate companies/ joint ventures
[Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013, read with rule 5 of Companies (Accounts) Rules, 2014 - AOC-1]
Part A - Subsidiaries
In ` Million
Sl. Name of the subsidiary Date since Reporting Reporting Share Reserves Total Total Investments Turnover# Profit/ Provision Profit/ Proposed % of
No subsidiary Period currency capital* & Surplus Assets* Liabilities (excluding in (loss) for (loss) for dividend Shareholding
was acquired/ (other (excl. capital subsidiaries)* before taxation# the year# by the
incorporated equity)* & reserves)* taxation# Company
1 Syngene International Limited, November 18, April - March INR 4,008 28,912 55,608 22,688 10,342 26,542 4,817 879 3,938 401 70.24%
India 1993
2 Biocon Academy, India December 03, April - March INR 1 - 58 57 - - - - - - 100.00%
2013
3 Biocon Pharma Limited, India October 31, 2014 April - March INR 141 (1,208) 11,834 12,901 1,826 6,314 1,056 - 1,056 - 100.00%
4 Biocon SA, Switzerland April 21, 2008 April - March USD 7 4,835 4,885 43 - - (1) - (1) - 100.00%
5 Biocon Biologics Limited, India June 08, 2016 April - March INR 10,588 10,618 73,539 52,333 105 23,728 923 63 860 - 93.47%
6 Biocon Biologics UK Limited, UK March 02, 2016 April - March USD 19,678 9,000 50,900 22,222 102 16,035 3,307 782 2,525 - Refer note 2
7 Biocon SDN BHD, Malaysia January 19, 2011 April - March USD 36,659 (8,806) 34,819 6,966 - 7,869 (1,080) - (1,080) - Refer note 3
8 Biocon Pharma Inc, USA July 27, 2015 April - March USD 1,389 405 5,383 3,589 4,720 297 89 208 - Refer note 4
9 Biocon FZ LLC, UAE June 16, 2015 April - March AED 3 77 585 505 - 393 2 - 2 - 100.00%
10 Biocon Biologics Healthcare August 10, 2017 April - March MYR 36 (37) 1 2 - - - - - - Refer note 3
Malaysia SDN BHD, Malaysia
11 Syngene USA Inc., USA August 24, 2017 April - March USD 4 49 120 67 - 284 28 8 20 - Refer note 6
12 Biocon Pharma UK Limited December 07, April - March GBP 167 (101) 70 4 - - 0 - 0 - Refer note 4
2018
13 Biocon Pharma Ireland Limited December 14, April - March EUR 65 (39) 38 12 - - (1) - (1) - Refer note 4
2018
14 Biocon Biologics Inc, USA November 12, April - March USD 129 (201) 29 101 - 12 (110) - (110) - Refer note 3
2019
15 Biocon Biosphere Limited, India December 24, April - March INR 1 117 4,092 3,974 - - (3) 1 (4) - 100.00%
2019
16 Biocon Biologics FZ LLC November 26, April - March USD 76 (2) 136 62 - 129 1 - 1 - Refer note 3
2020
17 Biocon Biologics Do Brasil Ltda August 17, 2020 April - March USD 53 (69) 0 16 - - (49) - (49) - Refer note 3
18 Biocon Pharma Malta Limited January 25, 2021 April - March EUR 0 (1) 1 2 - - (1) - (1) - Refer note 4
19 Biocon Pharma Malta I Limited January 25, 2021 April - March EUR 0 (1) 19 20 - - - - - Refer note 5
20 Biofusion Therapeutics Limited March 18, 2021 April - March INR 1 9 1,594 1,584 - 402 12 3 9 - 100.00%
* Exchange rate considered in the case of foreign subsidiaries - 1 USD = ` 75.92; 1 AED = ` 20.68; 1 MYR = ` 18.05; 1 GBP = ` 99.78; 1 EUR = ` 84.02
#
Converted at monthly average exchange rates
Notes
1. Syngene International Limited, India has proposed a final dividend of 10% or Re. 1 per equity share as on the record date for distribution of final dividend (comprising of regular dividend of 5% or Rs.0.5 per equity share and additional
special dividend of 5% or Rs.0.5 per equity share). The proposed dividend is subject to the approval of the shareholders in the Annual General Meeting.
2. Biocon Biologics Limited holds 100% of equity stake in Biocon Biologics UK Limited, UK.
3. Biocon Biologics Limited, UK holds 100% of equity stake in:-
a) Biocon Biologics FZ LLC
b) Biocon Biologics Do Brasil Ltda
c) Biocon Biologics Healthcare Malaysia SDN BHD, Malaysia
d) Biocon SDN BHD, Malaysia*
e) Biocon Biologics Inc, USA
*The reporting currency of Biocon SDN BHD is MYR, however USD is disclosed since it is the functional currency.
4. Biocon Pharma Limited, India holds 100% of equity stake in:-

Metamorphosis |
a) Biocon Pharma Inc, US
b) Biocon Pharma UK Limited

115
Biocon Limited

c) Biocon Pharma Ireland Limited

d) Biocon Pharma Malta
5. Biocon Pharma Malta Limited holds 100% of equity stake in Biocon Pharma Malta I Limited.
6. Syngene International Limited holds 100% of equity stake in Syngene USA Inc.
 Part B - Associates & Joint Ventures

116
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
In ` Million
S.No Name of Associate / Joint Date on which Latest audited Share of Associate / Joint Venture held by the Description of how Reason why Net worth Profit / (Loss) for the year
Venture the Associate Balance Sheet Company at the year end there is significant the Associate attributable to
/ Joint Venture date influence / Joint share holding as
Number of Amount of Extent of Considered in Not
was acquired Venture is not per latest audited
shares investments in Holding % consolidation considered in
consolidated Balance Sheet
Associate / Joint consolidation
Venture

| Annual Report 2022

1 NeoBiocon, UAE April 29, 2007 March 31, 147,000 80 49% By way of control of NA 80 37 39
2022 more than twenty
percent of total share
capital

2 Bicara Therapeutics Inc January 09, March 31, 41,070,000^ - 74% By way of control of NA - (2,106) (458)
2021 2022 more than twenty
percent of total share
capital

^Includes Preference shares

For and on behalf of the Board

Sd/- Sd/- Sd/-

Place: Bengaluru Kiran Mazumdar-Shaw Siddharth Mittal Mayank Verma

Date: April 28, 2022 Chairperson Managing Director & CEO Company Secretary
 Biocon Limited

Annexure 2 - Disclosure with respect to Employees Stock Option Plan of the Company
[Pursuant to Regulation 14 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021]

Sl. Particulars Status of compliance

No
1. The Board of Directors in their report shall disclose any material There was no material changes in the scheme and
change in the scheme(s) and whether the scheme(s) is / are in scheme is in compliance with the regulations.
compliance with the regulations
A Relevant disclosures in terms of the 'Guidance note on accounting Yes - Disclosed in notes to accounts – Refer note 30
for employee share-based payments' issued by ICAI or any other to standalone financial statements for the year ended
relevant accounting standards as prescribed from time to time. March 31, 2022
B Diluted EPS on issue of shares pursuant to all the schemes covered Yes - Disclosed in notes to accounts – Refer note 30
under the regulations shall be disclosed in accordance with to standalone financial statements for the year ended
'Accounting Standard on Earnings Per Share' issued by ICAI or any March 31, 2022
other relevant accounting standards as prescribed from time to time
C Details related to ESOS
A description of each ESOS that existed at any time during the Refer notes to standalone financial statements for the
year, including the general terms and conditions of each ESOS, year ended March 31, 2022
including

1. Summary of Status of ESOP:

Sl. No Particulars
1 Date of shareholders’ approval September 27, 2001
2 Total number of options approved under ESOS
3 Vesting requirements Refer note 30 of the standalone financial statements
4 Exercise price or pricing formula
5 Maximum term of options granted
6 Source of shares (primary, secondary or combination) Combination
7 Variation in terms of options No variation
8 Method used to account for ESOS - Intrinsic or fair value Intrinsic or fair value
9 The impact on the profits and EPS of the company Refer note 30 of the standalone financial statements

*Number of options approved under ESOP 2000 is adjusted for subdivision of face value of equity shares in FY 2001-02 and
FY 2003-04 and issue of bonus shares in FY 2003-04, FY 2008-09, FY 2017-18, FY 2018-19, FY 2019-20.

2. Summary of Status of Biocon Restricted Stock Unit (RSU) Long Term Incentive Plan FY 2020-24:
Sl. No Particulars
1 Date of shareholders’ approval July 24, 2020
2 Total number of options approved under ESOS
3 Vesting requirements
Refer note 30 of the standalone financial statements
4 Exercise price or pricing formula
5 Maximum term of options granted
6 Source of shares (primary, secondary or combination) Combination
7 Variation in terms of options No variation
8 Method used to account for ESOS - Intrinsic or fair value Intrinsic or fair value
9 The impact on the profits and EPS of the company Refer note 30 of the standalone financial statements

Metamorphosis | 117
3. Option movement during the year 2021-22 :

Sl. No Particulars Grant VII Grant VIII Grant IX Grant X RSU

1 Number of options outstanding at the beginning of 2,008,750 147,000 5,307,574 4,857,076 2,630,000
the period
2 Number of options granted during the year - - - - 724,083
3 Number of options forfeited / lapsed during the year 84,000 - 1,390,500 256,125 408,345
4 Number of options vested during the year 1,081,500 48,000 570,187 2,172,877 476,909
5 Number of options exercised during the year 1,335,750 42,000 470,870 1,969,077 430,762
6 Number of shares arising as a result of exercise of 1,335,750 42,000 470,870 1,969,077 430,762
options
7 Money realized by exercise of options (INR), if - - - - -
scheme is implemented directly by the Company
8 Loan repaid by the Trust during the year from - - - - -
exercise price received
9 Number of options outstanding at the end of the 589,000 105,000 3,446,204 2,631,874 2,514,976
year
10 Number of options exercisable at the end of the year 103,000 105,000 205,079 951,249 46,147
11 Weighted-average exercise prices of options 88 76 125 151 5
outstanding at the end of year
12 Weighted-average fair values of options granted - - - - 369

4. Options granted to the employees of the company during the year:

(a) Options granted to Senior managerial personnel (Chief Financial Officer) during the year under the Biocon Restricted
Stock Unit (RSU) Long Term Incentive Plan FY 2020-24, with exercise price in par with the face value i.e.` 5/- is as follows:

Sl. No. Name of Employee Designation No. of options granted

1 Indranil Sen Chief Financial Officer 50,000

(b) Any other employee who received a grant during the year, options amounting to 5% or more of option granted during
the year is as follows:

Sl. No. Name of Employee Designation No. of options granted

1 Sriram Akundi Senior Vice President 40,000
2 Manoj Pananchukunnath Senior Vice President 1,00,000

(c) Identified employees who were granted options during the year, equal to or exceeding 1% of the issued capital (excluding
outstanding warrants and conversions) of the company at the time of grant – NIL

5. Description of the method and significant assumptions used during the year to estimate the fair value of options
including the following information:

1 Weighted-average values of share price, exercise price, expected volatility, expected

option life, expected dividends, the risk-free interest rate and any other inputs to the
model Refer note 30 of the
2 Method used and the assumptions made to incorporate the effects of expected early standalone financial
exercise statements
3 How expected volatility was determined, including an explanation of the extent to
which expected volatility was based on historical volatility 
4 Whether and how any other features of the option grant were incorporated into the None
measurement of fair value, such as a market condition

118 | Annual Report 2022

 Biocon Limited

D. Details related to ESPS - Not Applicable

E. Details related to SAR - Not Applicable

F. Details related to GEBS / RBS - Not Applicable

G. Details related to Trust

(i) General information on schemes

Sl. No. Particulars

1 Name of the Trust Biocon India Limited
Employees Welfare Trust
2 Details of the Trustee(s) Mr. Murali Krishnan KN
Mr. Amitava Saha
3 Amount of loan disbursed by company / any company in the group, -
during the year
4 Amount of loan outstanding (repayable to company / any company in the -
group) as at the end of the year
5 Amount of loan, if any, taken from any other source for which company / -
any company in the group has provided any security or guarantee
6 Any other contribution made to the Trust during the year -

(ii) Brief details of transactions in shares by the Trust

(a) Number of shares held at the beginning of the year i.e. April 1, 2021 – 11,168,774
(b) Number of shares acquired during the year through
(i) primary issuance – 6,00,000
(ii) secondary acquisition, also as a percentage of paid up equity capital as at the end of the previous financial
year, along with information on weighted average cost of acquisition per share – Nil
(c) Number of shares transferred to the employees / sold along with the purpose thereof – 42,48,459
(d) Number of shares held at the end of the year i.e. March 31, 2022 – (a +b-c) – 75,20,315

(iii) In case of secondary acquisition of shares by the Trust – Not Applicable

For and on behalf of the Board

Sd/-
Kiran Mazumdar-Shaw
Place: Bangalore Executive Chairperson
Date: April 28, 2022 DIN: 00347229

Metamorphosis | 119
Annexure 3 - Conservation of energy, technology absorption, foreign
exchange earnings and outgo

[Particulars pursuant to Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules,
2014]

A. Conservation of energy
i) The steps taken or impact on conservation of Power consumption for FY22 was 191 mn units as against 178 mn units
energy in FY21. The unit consumption has increased by 7% YOY.
ii) The steps taken by the company for utilizing By using renewable energy for 58% of total power requirement and
alternate source of energy using cleaner fossil fuel for steam generation (Natural gas instead of
furnace oil), led to a reduction of CO2 emission by 1,16,120 Tons.
iii) The Capital investment on energy conservation Total Investment on energy conservation stands at 48.4 mn.
equipments

S. Power and fuel consumption details FY 22 FY21

No.
1 Electricity
A Purchased
Million Units 190 174
Total amount (` mn) 1,225 1,166
Rate / Unit (`) 6.4 6.7
B Captive generation
HSD Quantity, KL 2,418 1,477
Million Units 8 5
Units / Litre 3.2 3.3
Cost / Litre (`) 49.6 45.8
Generation cost, Rate / Unit (`) 14.9 14.0
2 Steam
A Furnace oil
Quantity, KL - 20
Total amount (` mn) - 0.6
Average rate - 28.5
B Natural gas
Quantity, MMBTU 2,02,88,626 1,86,71,681
Total amount (` mn) 922 589.3
Average rate 45.4 32
C Coal
Quantity, TO 5,596 4,891
Total amount (` mn) 43.8 36.6
Average rate 7,833 7,467

120 | Annual Report 2022

 Biocon Limited

S. Energy conservation measures Investment Energy saved per Annum

No. (In ` Mn) Units Amount
(In ` Mn)
1 Installed energy efficient Economizers in Boilers for 40 32,500 MMBTU 39
steam generation (Biocon Campus & Biocon Park)
2 Installed energy efficient motors for Air Compressor 6.6 0.15 Million Units 0.95
and ETP (Biocon Park)
3 Installed energy efficient motors for Chilled water 1.2 0.05 Million Units 0.35
and cooling water pumps (Biocon Campus)
4 Installed Variable Frequency Drives for Chilled water 0.6 0.07 Million Units 0.45
pumps (Biocon Campus)

Continuous monitoring of high energy consumption areas/equipment and taking appropriate corrective measures as and when
required, resulted in energy saving and reduction in power consumption.

B. Technology Absorption
i) The efforts made towards technology absorption
ii) The benefits derived like product improvement, cost reduction,
product development or import substitution
iii) In case of imported technology (imported during the last three years
reckoned from the beginning of the financial year)
No technology was imported by the Company during
(a) The details of technology imported
the year.
(b) The year of import
(c) Whether the technology been fully absorbed
(d) If not fully absorbed, areas where absorption has not taken
place, and the reasons thereof; and

iv) The expenditure incurred on Research and Development (R&D) Detailed disclosure on R&D are provided below

Research and Development

Specific areas in which R&D work has been carried out by the Company:

1. Development of Synthetic and Fermentation based Generic Small Molecules for Anti-infective, Oncology, Cardio-vascular,
Nephrology and Transplantation segments.
2. Formulation development for Abbreviated New Drug Applications (ANDAs).
3. Generation of Intellectual Property Development – Process Patents for manufacture of key Generic Small Molecules and
Biotherapeutics.
4. Focus on innovative technologies in API process development.
5. Oncology API lab is functional.
6. Clinical development pertaining to Novel programs.
Benefits derived as a result of R&D activities
1. Global presence in supply of fermentation based Small Molecules to the Generic Industry in regulated markets.
2. Rich pipeline of Generic Small Molecules catering to varied therapeutic areas.
3. Internationally competitive prices and product quality.

Metamorphosis | 121
4. The Company has been granted 1,300 patents and around 1,059 trademarks as on date in various jurisdictions.
5. Safe and environment friendly processes.
6. Launch of ANDA products in US & EU.
7. Clinical trial in progress for one of the Novel molecule.
Future Plan of Action
1. Strategic Collaborations for increased speed and cost competitiveness in Drug Discovery.
2. Vertical integration for the entire portfolio.
3. Developing a portfolio of Complex Generics.
4. Collaborate with global Academia and Industry to build value & visibility to the portfolio.
5. Increase capital spend to build a stronger R&D base which is in line to current industry changes.
6. New collaborations for high yield strain developments.
7. Next generation bio-transformation labs.
Expenditure incurred on Research & Development
In ` Million
FY22 FY21
a) Capital 198 15
b) Recurring 906 1,223
Total 1,104 1,237
Less: Recharge - (13)
Net R&D Expenses 1,104 1,224

C. Foreign Exchange Earnings and Outgo

In ` Million
Foreign exchange earned and used during the year: FY22 FY21
Gross Earnings 8,885 11,791
Outflow 6,360 5,084
Net foreign exchange earnings 2,525 6,707

For and on behalf of the Board

Sd/-
Kiran Mazumdar-Shaw
Place: Bengaluru Executive Chairperson
Date: April 28, 2022 DIN: 00347229

122 | Annual Report 2022

 Biocon Limited

Annexure 4 - Secretarial Audit Report for the financial year ended

March 31, 2022
Form No. MR-3
SECRETARIAL AUDIT REPORT
[Pursuant to Sub Section (1) of Section 204 of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]

To, (v) The following Regulations and Guidelines prescribed

The Members under the Securities and Exchange Board of India Act,
Biocon Limited 1992 (‘SEBI Act’):
20th K.M. Hosur Road, Electronic City,
Bengaluru - 560100 a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
We have conducted the secretarial audit of the compliance Regulations, 2011;
of applicable statutory provisions and the adherence to good
corporate practices by Biocon Limited (hereinafter called “the b. The Securities and Exchange Board of India
Company”). Secretarial Audit was conducted in a manner that (Prohibition of Insider Trading) Regulations, 2015;
provided us a reasonable basis for evaluating the corporate
conducts / statutory compliances and expressing our opinion c. The Securities and Exchange Board of India (Issue of
thereon. Capital and Disclosure Requirements) Regulations,
2018;
Based on our verification of the Company’s Books, Papers,
Minute Books, Forms and Returns filed and other Records d. The Securities and Exchange Board of India (Share
maintained by the Company and also the information Based Employee Benefits and Sweat Equity)
provided by the Company, its officers, agents and authorized Regulations, 2021;
representatives during the conduct of secretarial audit, we
hereby report that in our opinion, the Company has, during e. The Securities and Exchange Board of India (Issue and
the financial year ended on March 31, 2022 (the audit period) Listing of Debt Securities) Regulations, 2008 (Not
complied with the statutory provisions listed hereunder and also Applicable to the Company during the Audit Period);
that the Company has proper Board-processes and compliance-
mechanism in place to the extent, in the manner and subject to f. The Securities and Exchange Board of India (Registrars
the reporting made hereinafter: to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with
We have examined the books, papers, minute books, forms and client;
returns filed, and other records maintained by the Company
during the audit period according to the provisions of: g. The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2021 (Not Applicable
(i) The Companies Act, 2013 (the Act) and the rules made to the Company during the Audit Period);
thereunder;
h. The Securities and Exchange Board of India (Issue and
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) Listing of Non-Convertible Securities) Regulations,
and the rules made thereunder; 2021 (Not Applicable to the Company during
the Audit Period);
(iii) The Depositories Act, 1996 and the Regulations and
Byelaws framed thereunder; i. The Securities and Exchange Board of India (Buyback
of Securities) Regulations, 2018 (Not Applicable to
(iv) Foreign Exchange Management Act, 1999 and the rules the Company during the Audit Period); and
and regulations made thereunder to the extent of Foreign
Direct Investment and Overseas Direct Investment. There j. The Securities and Exchange Board of India
was no External Commercial Borrowing by the Company (Listing Obligations and Disclosure Requirements)
during the period under review; Regulations, 2015 (SEBI LODR).

Metamorphosis | 123
(vi) Other Laws Applicable Specifically to the Company items before the meeting and for meaningful participation at
namely: the meeting.

a. Drugs and Cosmetics Act 1940 As per the minutes of the meetings duly recorded and signed by
the Chairperson, the decisions of the Board were unanimous,
b. Bio Medical Waste (Management & Handling) Rules, and no dissenting views have been recorded.
1998 Based on the review of systems and processes adopted by the
Company and the Statutory Compliance self-certification by
c. ICH Guidelines (this is the base on which US FDA/ EU the Managing Director of the Company which was taken on
Guidelines etc. are created on). record by the Board of Directors, there are adequate systems
and processes in the Company commensurate with the size and
d. UCPMP (Currently voluntary – however proposed to operations of the Company to monitor and ensure compliance
be made mandatory). with applicable laws, rules, regulations and guidelines as per
the list of such laws as mentioned above in Point No. vi of para
e. National Biodiversity Act 2002 3 of this report.

f. Drugs & Magical Remedies (Objectionable The following events/actions were having a major bearing on
Advertisements) Rules, 1955 the company’s affairs in pursuance of the above referred laws,
rules, regulations, guidelines etc., during the audit period:
g. Narcotic Drugs and Psychotropic substance Act
a. Re-Appointment of Mr. Bobby Kanubhai Parikh
(DIN:00019437) as an Independent Director of the
h. Drugs (Control) Act, 1950
Company for the second term of five years.
We have also examined compliance with the applicable clauses b. Appointment of Mr. Indranil Sen as the Chief Financial
of the following: Officer (‘CFO’) of the Company in the place of Mr. Anupam
Jindal with effect from April 28, 2021.
a. Secretarial Standards issued by the Institute of Company
Secretaries of India on Meetings of the Board of Directors c. Allotment of 6,00,000 (Six Lakh) Equity Shares of `5/-
and General Meeting. (Rupees Five) each to Biocon India Limited Employee
Welfare Trust under Biocon restricted stock unit long term
b. Listing Agreements entered into by the Company with BSE incentive plan.
Limited and National Stock Exchange of India Limited.
d. Mr. John McCallum Marshall Shaw (DIN:00347250), Vice
Chairperson had resigned as a Non-Executive Director of
During the period under review the Company has complied
the Company with effect from July 23, 2021.
with the provisions of the Act, Rules, Regulations, Guidelines,
Standards etc., mentioned above.
e. Mr. Eric Vivek Mazumdar (DIN:09381549) was appointed
We have not examined compliance with applicable Financial as Non-Executive Non-Independent Additional Director
Laws, like Direct and Indirect Tax Laws, since the same have with effect from November 01, 2021.
been subject to review by statutory financial audit and other
designated professionals. For V. SREEDHARAN & ASSOCIATES

We further report that: Sd/-

(Pradeep B. Kulkarni)
The Board of Directors of the Company is duly constituted with Partner
proper balance of Executive Directors, Non-Executive Directors, Place: Bengaluru FCS: 7260; CP No. 7835
and Independent Directors. The changes in the composition of the Date: April 28, 2022 UDIN number: F007260D000226171
Board of Directors that took place during the period under review Peer Review Certificate No. 589/2019
were carried out in compliance with the provisions of the Act.
This report (i.e., Form No. MR-3) is to be read with our letter of
Adequate notice is given to all directors to schedule the Board even date which is annexed as Annexure and forms an integral
Meetings, agenda and detailed notes on agenda were sent at part of this report.
least seven days in advance, and a system exists for seeking and
obtaining further information and clarifications on the agenda

124 | Annual Report 2022

 Biocon Limited

‘Annexure’
To,
The Members
Biocon Limited
20th K.M. Hosur Road, Electronic City,
Bengaluru - 560100

Our report of even date is to be read along with this letter:

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an
opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.

4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the company.

For V. SREEDHARAN & ASSOCIATES

Sd/-
(Pradeep B. Kulkarni)
Partner
FCS: 7260; CP No. 7835
Place: Bengaluru UDIN Number: F007260D000226171
Date: April 28, 2022 Peer Review Certificate No. 589/2019

Metamorphosis | 125
Annexure 4A - Secretarial Audit Report of Biocon Biologics Limited for
the financial year ended March 31, 2022
Form No. MR-3
SECRETARIAL AUDIT REPORT
[Pursuant to Sub Section (1) of Section 204 of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]

a. Drugs and Cosmetics Act, 1940

To,
The Members, b. Drugs and Cosmetics Rules, 1945
BIOCON BIOLOGICS LIMITED c. Bio Medical Waste (Management & Handling) Rules,
Biocon House, Ground Floor, Tower-3, 1998
Semicon Park, Electronic City, Phase - II,
Hosur Road, Bengaluru - 560100 d. Drugs & Magical Remedies (Objectionable
Advertisements) Rules, 1954
We have conducted the secretarial audit of the compliance e. Narcotic Drugs and Psychotropic substance Act
of applicable statutory provisions and the adherence to good
corporate practices by Biocon Biologics Limited (“the f. Atomic Energy Act, 1962
Company”). The Secretarial Audit was conducted in a manner g. The Hazardous Waste (Management, Handling and
that provided us a reasonable basis for evaluating the corporate Trans-boundary movement) Rules 2008, amended in
conducts / statutory compliances and expressing our opinion 2016.
thereon.
h. Hazardous Substances (Classification packaging and
Based on our verification of the Company’s books, papers, labelling) Rules 2011
minute books, forms and returns filed and other records
i. The Explosives Act, 1983
maintained by the Company and also the information
provided by the Company, its officers, agents and authorized j. Manufacture, Storage, and Import of Hazardous
representatives during the conduct of secretarial audit, we Chemicals Rules, 1989
hereby report that in our opinion, the Company has, during k. Drug (Price Control) Order (DPCO) 2013 (NPPA)
the financial year ended on March 31, 2022 (the audit period)
complied with the statutory provisions listed hereunder and also l. Regulation of Drug Act, 1978
that the Company has proper Board-processes and compliance- m. National Biodiversity Act, 2002
mechanism in place to the extent, in the manner and subject to
n. Uniform Code of Pharmaceuticals Marketing
the reporting made hereinafter:
Practices (UCPMP) Guidelines

We have examined the books, papers, minute books, forms and o. Livestock Importation Act, 1898
returns filed, and other records maintained by the Company for p. Generic Drug User Fee Amendment (GDUFA) 2012
the financial year ended on March 31, 2022 according to the
q. Cosmetics, Devices and Drugs Act, 1980
provisions of:
r. Registration Guideline for Registration of the
i. The Companies Act, 2013 (the Act) and the rules made
Medicinal Products, 2013
thereunder;
s. The Special Economic Zone Act 2005, Special
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
Economic Zone Rules 2006
and the rules made thereunder;
The Company being an unlisted public limited company,
iii. The Depositories Act, 1996 and the Regulations and
the following Regulations prescribed under Securities and
Byelaws framed thereunder;
Exchange Board of India Act, 1992 (‘SEBI Act’) were not
iv. Foreign Exchange Management Act, 1999 and the rules applicable to the Company during the audit period:
and regulations made thereunder to the extent of Foreign
(a) The Securities and Exchange Board of India (Substantial
Direct Investment, Overseas Direct Investment and External
Acquisition of Shares and Takeovers) Regulations, 2011;
Commercial Borrowing;
(b) The Securities and Exchange Board of India (Prohibition
v. Other laws specifically applicable to the Company:
of Insider Trading) Regulations, 2015;

126 | Annual Report 2022

 Biocon Limited

(c) The Securities and Exchange Board of India (Issue of As per the minutes of the meetings duly recorded and
Capital and Disclosure Requirements) Regulations, 2018; signed by the Chairperson, the decisions of the Board were
unanimous, and no dissenting views have been recorded.
(d) The Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021; We further report that, there are adequate systems and
processes in the Company in line with Biocon’s group level
(e) The Securities and Exchange Board of India (Issue and practices, commensurate with the size and operations of the
Listing of Debt Securities) Regulations, 2008; Company to monitor and ensure compliance with applicable
laws, rules, regulations, and guidelines which are listed under
(f) The Securities and Exchange Board of India (Registrar to point no. v of 3rd para of this report.
an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client; The following events/actions were having a major bearing
on the Company’s affairs in pursuance of the above referred
(g) The Securities and Exchange Board of India (Delisting of laws, rules, regulations, guidelines etc., during the audit
Equity shares) Regulations, 2021; period:

(h) The Securities and Exchange Board of India (Issue and a. Mr. John Russell Fortheringham Walls (DIN:03528496)
Listing of Non-Convertible Securities) Regulations, was re-appointed as the Independent Director for the
2021; second term of 3 (three) years w.e.f June 08, 2021;

(i) The Securities and Exchange Board of India (Buyback of b. Implementation of “Biocon Biologics Limited Restricted
Securities) Regulations, 2018; and Stock Units Long Term Incentive Plan” through trust
route for the financial year 2022-24;
(j) Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015 c. Mr. Peter Baron Piot (DIN:09015343) was appointed as
an Independent Director of the Company for a period of
We have also examined compliance with the applicable
3 (three) years w.e.f January 21, 2021;
clauses of Secretarial Standards issued by the Institute of
Company Secretaries of India on Meetings of the Board of d. Mr. Thomas Jason Roberts (DIN:09337723) was
Directors and General Meeting. appointed as an Additional Director by the Board w.e.f
November 15, 2021;
During the period under review the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines e. Scheme of Merger for absorption of Covishield
and Standards etc., mentioned above. Technologies Private Limited with the Company was
approved by the Board.
We have not examined compliance with applicable Financial
Laws, like Direct and Indirect Tax Laws, since the same have For V. SREEDHARAN & ASSOCIATES
been subject to review by statutory financial audit and other
designated professionals.

We further report that the Board of Directors of the Company

Sd/-
is duly constituted. The changes in the composition of the (Pradeep B. Kulkarni)
Board of Directors that took place during the period under Partner
review were carried out in compliance with the provisions of FCS: 7260; C.P. No: 7835
the Act. Place: Bengaluru  UDIN: F007260D000216381
Date: April 27, 2022 Peer Review Certificate No. 589/2019
Adequate notice is given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda
were sent to all the directors for all the Board Meetings held
during the period under review. A system exists for seeking This report (i.e., Form No. MR-3) is to be read with our letter
and obtaining further information and clarifications on of even date which is annexed as Annexure and forms an
the agenda items before the meeting and for meaningful integral part of this report.
participation at the meeting.

Metamorphosis | 127
 ‘Annexure’
To,
The Members,
BIOCON BIOLOGICS LIMITED
Biocon House, Ground Floor, Tower-3,
Semicon Park, Electronic City, Phase - II,
Hosur Road, Bengaluru - 560100

Our report of even date is to be read along with this letter:

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an
opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.

4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the company.

7. Due to Covid-19 pandemic situation, we have conducted online verification and examination of records, as facilitated by the
Company for the purpose of issuing Secretarial Audit Report (Form No. MR-3).

For V. SREEDHARAN & ASSOCIATES

Sd/-
(Pradeep B. Kulkarni)
Partner
FCS: 7260; CP No. 7835
Place: Bengaluru UDIN: F007260D000216381
Date: April 27, 2022 Peer Review Certificate No. 589/2019

128 | Annual Report 2022

 Biocon Limited

Annexure 5 - Particulars of Remuneration

Information pursuant to Section 197(12) of the Companies Act, 2013
(Read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)

S. Name of the Director/Key Managerial Personnel and Percentage increase in Ratio of the remuneration of each
No. Designation remuneration of each Director/ Director to the median remuneration
CFO/CEO/CS in the FY 2021-22 of the employees
Executive Directors
1 Kiran Mazumdar-Shaw (39.41) 41.1
Executive Chairperson
2 Siddharth Mittal (1.90) 70.4
Managing Director and CEO
Non-Executive Directors
3 John Shaw* NA 1.6
4 Prof. Ravi Rasendra Mazumdar 75.58 8.9
5 Eric Vivek Mazumdar** NA 4.2
Independent Directors
6 Mary Harney 72.73 9.2
7 Daniel Mark Bradbury 109.09 11.1
8 Dr. Vijay Kumar Kuchroo 77.12 8.0
9 Meleveetil Damodaran 80.88 9.6
10 Bobby Kanubhai Parikh 70.74 11.9
Key Managerial Personnel
11 Indranil Sen*** NA 16.4
Chief Financial Officer
12 Anupam Jindal*** NA 2.3
Chief Financial Officer
13 Mayank Verma 10 7.3
Company Secretary

*John Shaw was in office only for part of the year (stepped down w.e.f. conclusion of the Company’s 43rd AGM held on July 23, 2021) and hence
the percentage of increase of remuneration in his case is not comparable with that of the previous year.
**Eric Vivek Mazumdar was in office only for part of the year (appointed w.e.f. November 1, 2021) and hence the percentage of increase of
remuneration in his case is not comparable with that of the previous year.
***Anupam Jindal (ceased as CFO w.e.f. April 28, 2021) and Indranil Sen (appointed as CFO w.e.f. April 28, 2021) were in office as CFO only for
part of the year and hence the percentage of increase of remuneration in their case is not comparable with that of the previous year.

Notes:
• The remuneration paid to Non-Executive Directors (including Independent Directors) includes commission and sitting fees and is based on
the position they occupied in various committees and meetings attended by them during FY 2021-22.
• The remuneration does not include perquisite value on account of stock options exercised during the year.
• The remuneration to the Executive Director and Key Managerial Personnel does not include provisions made for gratuity and compensated
absences, as they are obtained on an actuarial basis for the Company as a whole.

I Percentage increase / (decrease) in median remuneration The median remuneration of employees increased from INR 5,77,728 as at March
of employees in the financial year 31, 2021 to INR 5,99,040 as at March 31, 2022, representing an increase of 3.69%.
II Number of permanent employees on the rolls of the Company There were 3,203 permanent employees as on March 31, 2022.
III Average percentile increase in salaries of employees other The average increase in employee remuneration other than managerial personnel
than managerial personnel in the last financial year and was 10%. The increase in managerial remuneration is in line with the measures to
its comparison with the percentile increase in managerial attract and retain the best talent. The Company also uses a mix of fixed, variable
remuneration and justification thereof and point out if and ESOP based compensation on a mid-to-long-term basis to align middle and
there are any exceptional circumstances for increase in senior management compensation to enhance shareholder values.
the managerial remuneration

It is hereby affirmed that the remuneration paid for the financial year 2021-22 was as per the Company’s Policy on Director’s Appointment and
Remuneration.

Metamorphosis | 129
Annexure 6 - Annual Report on CSR Activities

1. Brief outline on CSR Policy of the Company. such scenario, the Foundation employs its expertise to
Biocon believes in making a difference to the lives of evaluate the proposals of grant seekers and conducts
people who are underprivileged. It promotes social due diligence when necessary before seeking
and economic inclusion by ensuring that marginalized approval from CSR Committee for releasing grants
communities have equal access to healthcare services, to them. Organisations with an established record of
educational opportunities, civic infrastructure and healthy at least three years in undertaking similar initiatives,
environment. mandatory CSR Registration Number, as well as 80G
and 12A registrations to undertake CSR activities are
Your company’s CSR activities are implemented through: selected to implement CSR, in pursuance of the Act.

A. Biocon Foundation, through which implementation of B. Biocon Academy, which aims to address the skill deficit
CSR activities are in the following modes: in the Biopharma sector, by developing high-end talent
through advanced learning.
• Direct execution of projects/programs.
C. Any other Agency: CSR activities can be undertaken
• Partnership - Build fruitful collaborations with like- through any other implementing agency. Such agency
minded organisations through memorandum of shall satisfy the statutory requirements as specified in the
understandings. Act.

• Grants - Provide grants to NGOs, trusts and academic The CSR Vision of the Company is to strive towards
institutions under grant-in-aid initiative for innovative developing and sustaining healthy and empowered
and impactful social and environmental projects. In communities by promoting social & economic inclusion
and improving overall quality of life.

2. Composition of CSR Committee:

The CSR Committee of our Board provides oversight of CSR Policy and monitors execution of various activities to meet the set
CSR objectives.

S. Name of Director Designation Category Number of Number of

No. meetings of CSR meetings of
Committee held CSR Committee
during the year attended during
the year
1. Mary Harney Chairperson Independent 2 2
Director
2. Dr. Vijay Kumar Kuchroo Member Independent 2 2
Director
3. Prof. Ravi Rasendra Mazumdar Member Non-Executive 2 2
Director
4. Siddharth Mittal* Member Executive Director NA NA
5. Eric Vivek Mazumdar* Member Non-Executive NA NA
Director
*Siddharth Mittal and Eric Vivek Mazumdar were inducted as members of the Committee with effect from March 28, 2022.

130 | Annual Report 2022

 Biocon Limited

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by
the board are disclosed on the website of the company.

i. The CSR policy : https://www.biocon.com/docs/Biocon_CSR_Policy_2021.pdf

ii. The composition of the CSR committee : https://www.biocon.com/investor-relations/corporate-governance/board-committees/

iii. The projects as approved by the Board shall be disclosed on the website at www.biocon.com.

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule
8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable.

Not Applicable.

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies
(Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial
year, if any.
S. No. Financial Year Amount available for Amount required to be
set-off from preceding set-off for the financial
financial years (in `) year, if any (in `)
Not Applicable

6. Average net profit of the company as per section 135(5) : ` 3,496.7 Million

7. (` In Million)
(a) Two percent of average net profit of the company as per section 135(5) 69.9
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years Nil
(c) Amount required to be set off for the financial year, if any Nil
(d) Total CSR obligation for the financial year (7a+7b- 7c) 69.9

8. (a) CSR amount spent or unspent for the financial year:

(` In Million)
Total Amount Amount Unspent (in `)
Spent for the Total Amount transferred to Amount transferred to any fund specified under
Financial Year Unspent CSR Account as per Schedule VII as per second proviso to section 135(5)
(in `) section 135(6)
Amount Date of Name of the Amount Date of transfer
transfer Fund
69.9 NIL NA NA NA NA

Metamorphosis | 131
 (b) Details of CSR amount spent against ongoing projects for the financial year:

132
(` In Million)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
S. Name of the Item from the list Local Location of the project. Project Amount Amount Amount Mode of Mode of Implementation -
No. Project of activities in area duration allocated spent in the transferred to Implementation- Through Implementing Agency
Schedule VII to (Yes / for the current Unspent CSR Direct (Yes /No)
State District. Name CSR Registration
the Act No) project financial Account for

| Annual Report 2022

number
(in `) year (in `) the project as
per
Section 135(6)
(in `)
1 Mass Transit Environmental Yes Karnataka Bengaluru 4 years 32.0 32.0 Nil No Biocon CSR00002304
System sustainability Urban Foundation
2 Lake Environmental Yes Karnataka Bengaluru 2 years 5.3 5.3 Nil No Biocon CSR00002304
Rejuvenation sustainability Urban Foundation
3 Biotechnology Promoting Yes Karnataka Bengaluru 4 years 32.6 32.6 Nil No Biocon CSR00002303
Education Urban Academy
TOTAL 69.9 69.9 Nil

(c) Details of CSR amount spent against other than ongoing projects for the financial year:  (` In Million)

(1) (2) (3) (4) (5) (6) (7) (8)

S. Name of the Project Item from the list Local area (Yes/No). Location of the project Amount spent Mode Mode of implementation
No. of activities in for the project of implementation –Through implementing
schedule VII to the (in `) Direct (Yes/No). agency.
Act State District Name CSR
registration
number
Not Applicable

(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: NIL

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 69.9 Million

(g) Excess amount for set off, if any: NIL

 Biocon Limited

S. Particular (` In Million)
No.
(i) Two percent of average net profit of the company as per section 135(5) 69.9

(ii) Total amount spent for the financial year 69.9

(iii) Excess amount spent for the financial year [(ii)-(i)] NIL
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any NIL

(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NIL

9. (a) Details of Unspent CSR amount for the preceding three financial years:
Nil

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s):
Not Applicable for FY 2021-22

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired
through CSR spent in the financial year: Nil

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section
135(5).

Not Applicable.

For and on behalf of the Board of Directors

For Biocon Limited

Sd/ Sd/
Siddharth Mittal Mary Harney
Place: Bengaluru Managing Director and CEO Chairperson – CSR Committee
Date: April 28, 2022 DIN: 03230757 DIN: 05321964

Metamorphosis | 133
Management Discussion and Analysis
Disrupted but Continued Recovery of the Global Global Medicine Market
Economy Amid COVID-19 A recent IQVIA report2 estimates the global medicine market
A report by the International Monetary Fund (IMF) indicated 1
to grow to ~US $1.8 trillion by 2026, at a compounded
that global growth is expected to weaken from the 2021 annual growth rate (CAGR) between 3% and 6%. Over the
levels of 5.9% to 4.4% in 2022. While 2021 did witness past decade, medicine use grew over 40% primarily due to
some global growth recovery, the momentum was subdued higher access to medicines in developing countries. The spend
due to the outbreaks of the Delta and Omicron variants of on COVID-19 vaccines alone through 2026 is expected to be
COVID-19. The pandemic outbreaks affected critical links of $251 billion. Growth in overall medicine spending is expected
global supply chains, causing longer-than-expected supply to slow down because of loss of exclusivity and higher adoption
disruptions that impacted manufacturing. It also compelled of biosimilars. With ~300 new active substances (NAS) expected
countries to reimpose lockdowns and mobility restrictions. to be launched by 2026, spending on newly launched products
These disruptions, coupled with rising energy prices, resulted
is expected to offset this slowdown.
in higher, broad-based inflation as well as market volatility in
several developed and emerging economies around the globe.
Top 20 Therapy Areas in 2026 in terms of Global Spending, with 5 year
Inflation is expected to remain high in the near term, averaging
CAGRs (In US$bn)
3.9% in developed countries and 5.9% in emerging countries
in 2022. The situation could potentially worsen due to higher
5-year CAGR
2026 Spending
crude oil prices if the Ukraine-Russia conflict continues. Oncologics
2022-2026 Const US$
9-12%
Immunology 6-9%
Antidiabetics 6-9%
Neurology 3-6%
Assuming that the pandemic and the Ukraine-Russia conflict Anticoagulants
Cardiovascular
8-11%
4-7%
Respiratory 5-8%
abate over the course of 2022, supply chain issues are expected Pain
HIV Antivirals
6-9%
3-6%
Antibacterials 2-5%
to ease in the later part of the year. However, global trade levels GI Products
Ophthalmology
4-7%
3-6%
-1-2%
will continue to remain moderate in 2022 and 2023. Vaccines ex COVID
Dermatologics 8-11%
5-8%
Lipid Regulators
Hospital Solutions 2-5%
Anti-ulcerants 1-4%
Blood Coagulation 5-8%
-1-2%
Global Growth Projections Traditional Chinese Med
Cough, Cold, incl Flu Antivirals
-1-2%

Global Advanced Emerging Markets

Economy Economies and Developing Economies Source: IQVIA Institute, November 2021
5.9 6.5
5.0
4.4 3.9 4.8 4.7
3.8 The U.S. medicine market is expected to flatten between
2.6
0 and 3% CAGR over the next five years as against a modest
3.5% CAGR during the preceding five years. Spending growth
2021 2022 2023 2021 2022 2023 2021 2022 2023 in China is expected to slow down, due to pricing pressure,
Source: ‘World Economic Outlook Update', January 2022 published by partially offset by better uptake and use of innovator drugs.
International Monetary Fund Japan, the third largest global market, will have a flat-to-
declining medicine spend and will shift from biennial to annual
Global growth, too, is expected to slow down further to 3.8% in price cuts. In Europe, medicine spending is expected to grow
2023, subject to adverse health outcomes remaining low in most by ~4% CAGR over the next five years, with a focus on greater
countries this year, given improved vaccination rates worldwide adoption of generics and biosimilars. Drugs are expected to
and effective therapies. If the pandemic prolongs over the become cheaper and more widely available with biosimilars
medium term, it could reduce global Gross Domestic Product by a entering the market. This can result in significant cost savings if
cumulative $5.3 trillion over the next five years. reimbursement is granted to wider patient groups. Affordability
of expensive innovator medication is becoming a challenge
The uncertainty around further outbreaks of the virus once again especially in geographies where patients have to pay for their
emphasizes the urgent need for an effective, global healthcare own healthcare, such as the U.S.
strategy that ensures equitable access to tests, treatments and
vaccines for all. It is incumbent upon policy makers to ensure
that fiscal policies prioritize health and social spending such that
they reach the most marginalized of populations.

'World Economic Outlook Update', January 2022 published by International Monetary Fund
1

‘The Global Use of Medicines 2022: Outlook to 2026’, January 2022 published by IQVIA
2

134 | Annual Report 2022

 Biocon Limited

Oncology and immunology, the two largest therapeutic Worldwide Total Pharmaceutical R&D Spends (2012-2026, in US$bn)
indications, are expected to grow at a healthy CAGR of
9 to 12% and 6 to 9% respectively through 2026. This will be 280 +16.0%
260
driven by newer treatments and higher use of medicines, offset +4.2% CAGR 2020-26 254
+14.0%

WW Pharma R&D Spend ($bn)

240 237 239
248

220 226
+12.0%
by losses of exclusivity and a growing adoption of biosimilars.

R&D Spend Growth (%)

200 +4.7% CAGR 2012-20 198
212

180 182
190
+10.0%
About a hundred new drugs are expected to be added for 160
140 137 139 145 149
160
169
+7.8
+7.0 +8.0%
120
cancer treatment alone over the next five years, contributing
+5.8
100 +4.4
+7.1
+5.9
+6.0%
+4.2
80 +3.5 +3.5
+4.0%
~$120 billion to grow the total market size to $300+ billion in 60
40 +2.9
+4.1
+3.3
+2.5

+2.0%
2026. Alzheimer’s and migraine, along with niche therapies in 20
0
+1.7
+0.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
rare neurological disorders, are expected to increase spending
in neurology. On the other hand, Diabetes spending is expected Source: Evaluate Pharma®, May 2021
to grow in low single-digits in most developed markets while it
is expected to decline in the U.S. due to increased competition Despite the clinical and commercial uncertainties involved in next-
and the emergence of biosimilars. generation biotherapeutics such as cell, gene and Ribonucleic acid
(RNA) based therapies, ~60 new launches are expected by 2026,
Worldwide Total Prescription Drug Sales (2012-2026, in US$bn) in addition to the 30 already launched to date. There are now, on
an average, a dozen such launches each year, as compared to the
annual average of three over the past five years.
WW Prescription Drug Sales ($Bn)

1,600
1,400
1,200
1,000 COVID-19 Impact on the Global Pharmaceutical Sector
800
600
COVID-19 served as a wake-up call for the global pharmaceutical
400 sector, forcing the community to rapidly innovate and rethink
200
0 new ways of working to ensure business continuity.
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Generics Orphan Prescription excl. Generics & Orphan

With many vaccines and drugs being rapidly tested, 2021
Source: Evaluate Pharma®, May 2021 saw an acceleration in all phases of development for
potential COVID-19 interventions. This is, however, expected
Worldwide prescription drug sales are to sharply decline in 2022. There are, currently, about
forecasted to grow at a CAGR of 6.4%3 2,0004 agents that are part of the COVID-19 pipeline, with over
between 2021 and 2026 to $1.4 trillion. Drug pricing pressure 500 in advanced stages of development. While the pipeline also
is unlikely to ease and continues to be an important political includes several small molecules, it is dominated by biologics,
agenda in the U.S. Orphan drug indications and rare diseases particularly vaccines and antibodies. Vaccine development
remain an area of focus for innovators with orphan drug accounted for a large number of the clinical trials conducted
sales expected to double between 2020 and 2026, to reach in 2021, most of which were across Europe, followed by Asia-
$268 billion. Biologics will account for more than a third of total Pacific and North America. Around 2,000 COVID-19 trials have
prescription and Over-the-Counter (OTC) sales in 2026, and for been completed, with 4,000+ that are ongoing or yet to start
more than half of the 100 highest selling medicines, generating across markets.
55-60% of the sales.
While the widespread administration of vaccines and improved
Worldwide pharmaceutical Research and Development treatments have helped reduce morbidity and mortality, millions
(R&D) spend is forecasted to grow at a slightly slower pace of are expected to have long-term complications from the infection,
4.2% CAGR between 2020 and 2026 to reach $ 254 billion, in known as post-acute sequelae of COVID-19 (PASC), across almost
comparison to the historical CAGR of 4.7% between 2012 and all organ systems. This is estimated to impact between 10 to 30%
2020. While biopharma is focused on improving R&D efficiencies, of COVID patients. Research is ongoing to better understand the
drug development spend is expected to increase in the coming prevalence of PASC, as well as to develop therapeutic solutions to
years with a conducive financing environment, allowing smaller address these symptoms.
players to also participate in the market.

3
‘World Preview 2021 Outlook to 2026’, July 2021 published by Evaluate Pharma®
4
‘Embracing Disruption in Pharma’, January 2022 published by Global Data

Metamorphosis | 135
Longer term Complications of COVID - 19 Infection in Patients With significant advancement in sequencing technologies and
data analytics, genomics can help speed up diagnosis processes
Longer-term complications of COVID-19 infection on patients

Neurological Psychiatric
and can support personalization of patient treatment.
Brain fog, Fatigue, Headache, Strokes, Seizures, Depression, Anxiety, Psychotic disorders,
Encephalopathies, Nerve disorders, Disturbance in Mood disorders, Sleep disorders, Substance misuse,
smell and/taste, POTS, Parkinson's disease, Post-Traumatic Stress Disorder, Delirium, Suicidality.
Dementia, dry eyes, pink eye.
Cardiac
Dysrhythmias/ Arrhythmias, Hypertension,
Dyslipidemia, Myocardial injury, Myocarditis,
Ear, Nose and Throat (ENT)
Tinnitus, Sore throat, Earache,
The genomics market is expected to grow further due to the
Hearing loss, Inner ear disorder.

increasing prevalence of chronic diseases, dipping costs for

Heart failure, Acute Coronary Syndrome,
Cardiomyopathy, Hypercoagulation, DIC,
VTE, Cardiogenic shock, Cardiac arrest, Renal
Low blood pressure. Renal damage, Acute renal injury,
Respiratory
Chronic cough, Bronchiectasis, Pulmonary
fibrosis, Pulmonary vascular disease, Worsening
Chronic Kidney Disease, Accentuation of post
hypertension/Diabetes Mellitus renal disorders.
Deoxyribonucleic acid (DNA) sequencing, accelerated funding
Musculoskeletal
and a growing emphasis on value-based healthcare models and
of pre-existing respiratory conditions
(asthma/COPD), Shortness of breath. Myositis, Chest pain Rhabdomyolysis, Muscle
pain, Joint pain, Muscle disorders including
Endocrine increase severity of pre-existing diseases.

patient-centric strategies.
New onset diabetes mellitus.
Gastrointestinal disorders Dermatological
Post infectious dysmotility, Abdominal pain, Nausea, Vasculitis rash, Urticaria, Chilblains, Vesicular
Diarrhea, Anorexia, GI vascular diseases, Gastroesophageal reflux. Purpura, Irritant dermatitis, Hair loss.
In pediatric age-group: Multi system inflammatory syndrome.

Source: IQVIA Institute: Assessing the Global Burden of Post-COVID-19 Conditions, Dec 2021
Greater Need for Digitization and other Emerging
Source: IQVIA Institute, December 2021
Technologies
COVID-19 further accelerated digitization and the use of emerging
Emerging Trends within the Pharmaceutical Sector
technologies such as Artificial Intelligence (AI), Big Data, Real-world
Amid COVID -19
Evidence (RWE) and Remote patient monitoring (RPM).
The pandemic changed the pharma landscape in no small measure.
As treatment paradigms and the healthcare delivery systems across The healthcare industry had to make quick decisions and
the globe continue to evolve, some key industry trends impacting investments to digitise its operations to ensure business continuity.
the global pharmaceutical industry have emerged : Digitization of manufacturing, production and sales processes
were swiftly adopted and implemented, using technologies such
Emerging Trends within the Pharmaceutical Sector Amid
as Industry 4.0, converged architecture and AI. This also helped
COVID-19
to effectively analyse the increasing volumes and complexity
of the data being generated. Given the restrictions on physical
Emerging Game
interactions due to COVID, use of virtual or augmented reality
Changers in increased, allowing the industry to continue to provide effective
Treatment interactive patient experiences. Developing competence quickly in
Paradigms these areas will not only support improved patient care but will
also help the industry to gather higher levels of insight that will
Growing Greater Need for benefit operational and clinical efficiency.
importance of Digitization and
Environment, Social other emerging
and Governance Emerging industry themes in disease treatment paradigms
technologies
(ESG) practices Emerging
Trends within the Past (Jan 2020) Now (Jan 2022)
Global
Immuno-oncology Genomics
Pharmaceutical 30% 27%

Personalized/ Personalized/
Sector Precious Medicine 21%
Precious Medicine
16%

Real World Evidence 11 % Remote Patient 15%

Monitoring
Remote Patient Immuno-oncology
Continued New operating Monitoring
8% 11%

Biosimilar Uptake Decentralized/

pressures due to models, new
7%
Virtual Clinical Trials
8%

Electronic Health
drug pricing and ways of working Records
3% Real World Evidence 7%

Patient Empowerment Biosimilar Uptake

reimbursement 2% 6%

Decentralized/ Digital Therapeutics

constraints Virtual Clinical Trials 2% 4%

Microbiome Drug 2% Patient Empowerment 4%

Development
Medical Marijuana 2% Regenerative Medicine 2%

Source: ‘Embracing Disruption in Pharma’, January 2022 published by Global Data

Emerging Game Changers in Treatment Paradigms
Genomics, immuno-oncology (IO) and personalized / precision Stakeholders such as regulators, healthcare payers, clinicians
medicine are likely to become game changers for the industry. and patients are becoming more aware and are increasingly
They are increasingly being used in developing more effective demanding evidence of the benefits of treatment approaches.
and innovative treatment paradigms across therapeutic areas, In the case of COVID-19, RWE demonstrated the effectiveness
including oncology and infectious diseases. of the vaccines in preventing infections. Further, RWE is now
helping pharma companies to discover new drug targets and
Given its recent contribution towards fast tracking the development is enabling more efficient clinical trials. RWE signifies clinical
of COVID-19 vaccines, the role of genetics in diseases is garnering and economic evidence of a medical product based on data as
attention and interest in medical research and clinical care provision. against traditional clinical trials.

136 | Annual Report 2022

 Biocon Limited

RPM technologies, such as wearables, mHealth, and allows Medicare to negotiate drug prices will not come into
telemedicine, are continuing to be used by the healthcare effect until 2025. With drug pricing concerns showing no signs
industry across its value chain, from drug development through of abating, the industry is also facing inflationary pressure on
post-commercialization strategies. Since patients and healthy the cost of raw materials, active ingredients, and intermediates.
volunteers were unable to participate in traditional clinical trials This inflationary trend is not only a cause of concern for the
during the COVID-19 shutdowns, adoption of decentralized/ industry but also for the patient population, since it can further
virtual clinical trials accelerated and highlighted the critical drive up prices of life saving pharmaceutical drugs.
benefits of RPM through higher patient participation and real-
time data collection and analytics. Growing importance of Environment, Social and
Governance (ESG) practices
New Operating Models, New Ways of Working ESG has gained momentum, especially during the pandemic,
Anticipated Future Working Models in the Pharmaceutical Industry (% of with citizens, governments and regulators turning the spotlight
respondents) on businesses. Industries, including pharma, are now being
asked to address social inequality, corruption, tax avoidance and
inaction on climate change. Post-COVID-19 recovery agendas of
several businesses now seem to incorporate greener processes
in R&D, supply chain, waste, and resource management. The
pharmaceutical industry will have to place ESG at its very core,
given its ability to enable the industry to capture opportunities
and be resilient to vulnerabilities.

Trends, such as the ones stated above, will continue to

transform the ever-evolving pharmaceutical industry. Through
agility and innovation, the industry continues to reinforce a
Source: McKinsey Future of Organisation Survey, February 2021
positive agenda for growth and sustainability, in managing and
maintaining patient care globally.
The industry’s growth relies heavily on new capacities and
talent. With the increasing proportion of remote work resulting
Biocon’s Approach towards Sustainable growth
in talent distribution, organizations are re-evaluating their sales
and distribution network costs. As they relook at their operating
models, organizations are moving away from managing the
entire value chain inhouse to partnering with external vendors,
with the intent of making manufacturing more flexible. The post-
COVID-19 workforce is expected be more resilient to change,
given that the need to work on-site is becoming less acute. The
PATIENT CENTRICITY FOCUS ON SCIENCE ACCESS TO ALL
industry will need to adopt agile ways of working and upskill its
talent to ensure that people can continue to program, operate,
and interpret data. Further, during the pandemic, companies
have adopted remote communication strategies through use of
virtual and augmented reality and have enhanced their social
media presence to market directly to the customers, and to
connect directly with the patients.
QUALITY FIRST PEOPLE POWER SUSTAINABLE GROWTH

Continued pressures due to drug pricing and Over the last four decades, Biocon has leveraged India’s value
reimbursement constraints advantage of scientific talent and cost-competitive manufacturing
Concern around increasing healthcare spends, inflation and to deliver scale, speed and quality that enabled affordable access
borrowings caused by COVID-19 related financial burden have to complex therapies for chronic conditions like diabetes, cancer
resulted in the scrutiny of drug pricing and reimbursement by and autoimmune diseases. Our mission has driven the way we
governments across the globe. While there is an intent to reduce conduct business. We continue to discover novel approaches that
U.S. prescription drug prices, which are significantly higher as improve patient outcomes and provide global communities with
compared to other countries, the important policy change that differentiated, high-quality and affordable healthcare solutions.

Metamorphosis | 137
Conducting our business with the highest standard of people processes, covering talent acquisition, performance
compliance and ethical governance and ensuring that we evaluation, talent development and succession planning.
adhere to best-in-class quality and regulatory systems is central
to the way we operate. We take great pride in our culture that With special focus required on employee wellness, particularly
breeds entrepreneurship and values our diverse workforce during the pandemic period, several online programs from health
enabling us to attract the best and bring out the best in them. tips to counselling and yoga were offered to our employees.
This has helped us create value for stakeholders by delivering a The Company continued to take all necessary precautions on
sustained financial performance and growth. the pandemic front including regular sanitisation, testing , daily
temperature checks and zoning to ensure a safe workplace.
Business Review COVID insurance and free vaccinations were provided to
FY22 Highlights: employees and their family members.
• Biocon achieved the billion-dollar milestone by generating
Biocon has always strived to create a diverse and inclusive
revenues of ~`83,966 million or ~$1.1 billion in FY22,
environment for its workforce and aspires to reach a balanced
recording a year-on-year growth of 14%, driven by a
gender ratio by the end of the decade. We have been consistently
strong growth of 24% by Biosimilars and 20% by Research
awarded for our endeavours on this front. This year, too, we
Services over FY21.
received several awards and recognitions for our efforts:
• Biocon became the first company to receive an
o Ranked among the ‘Top 10- India’s Best Workplaces in
interchangeability designation for its biosimilar (insulin
Diversity, Equity and Inclusion, 2021’ and recognized as
glargine) in the U.S. in 2021. This was a major milestone
a ‘Certified Workplace with Inclusive Practices’ by Great
in making affordable healthcare accessible to all.
Place to Work.
• With the intent of providing holistic healthcare solutions to
o Recognised by ‘UN Women’ as a winner in the
patients, Biocon entered into two strategic partnerships this
‘Transparency and Reporting’ category for exemplary
year. Given the impact of infectious diseases on human life,
practices embracing Women’s Empowerment Principles,
Biocon expanded into adjacencies such as vaccines through
Asia Pacific.
a strategic alliance between Biocon Biologics and Serum
Institute Life Sciences (SILS), which will provide Biocon with
o Featured in Avatar’s Top 100 ‘Best Companies for Working
15 years of committed access to 100 million annual doses
Mothers’ list in 2021, 100 ‘Best Hall of Fame’ for the fifth
of vaccines. Biocon also entered into a definitive agreement
consecutive year, the ‘Most Inclusive Companies Index List’
to acquire Viatris’ biosimilars business, enabling it to become
2021 for the second time and bagged the ‘Exemplar of
a fully integrated global biosimilars player which in turn will
Inclusion’ award.
help enhance patient access.
o Ranked among the ‘Top 5 Most Innovative Practices
• The Generics business launched five new formulation
— Women Leadership Development’ as well as
products in the U.S., including our first day-one U.S. launch
‘Top 20 Companies in DivHERsity’ in the Large Enterprises
for a vertically integrated formulation, Everolimus 10mg
category by JobsforHer.
tablet. The business also expanded into new geographies
furthering our commitment to make affordable medicines • Given our focus on sustainable growth, initiatives on that
available to patients around the world. front have been pursued across the organisation since
many years. Biocon’s efforts are now earning recognition
• The Research Services arm witnessed contract extensions
globally:
with key customers such as Bristol-Myers Squibb and
Amgen Inc. enabling Syngene to continue to cater to o Featured on the Dow Jones Sustainability Index for
customer needs. Emerging Markets in 2021.

Other FY22 updates: o Secured an improved Carbon Disclosure Project rating.

• At Biocon, we believe that it is important to enable our
employees to create sustainable careers for themselves o Awarded a Bronze place by EcoVadis this year.
while contributing towards the organization’s objectives
and goals. Towards this objective, we developed a Biocon continues to develop a robust framework for its
competency framework as the foundation for all our Environment, Social and Governance (ESG) practices in

138 | Annual Report 2022

 Biocon Limited

alignment with stakeholder expectations and to build a long- increasing need for supply assurance and independence, and
term portfolio of purpose, planet, people. this resulted in a shift in purchasing trends, with organisations
becoming selective in their purchasing decisions and preferring
Biocon operates four distinct business segments: local suppliers, particularly in the U.S., EU, India and Japan.
a. Generics
Active Pharmaceutical Ingredients (API) Market - Growth Rates by Region
b. Novel Biologics
c. Biosimilars (Under Biocon Biologics Limited)
d. Research Services (Under Syngene International Limited)

Generics
Strategic priorities icons
Generics’ Strategic Priorities

Product Manufacturing Base Regional

Pipeline Expansion Business Expansion

Source: Active Pharmaceutical Ingredients (API) Market (2022 - 2027), February

2022 published by Research and Markets

Strengthen Talent Digital

Cost
Competitiveness Quality Development Initiatives The global API market is estimated to grow at a CAGR of 6.4%
to reach $ 2725 billion by 2026. This growth will be driven by
an increasing disease prevalence particularly chronic indications,
Our Generics Business comprises of a growing portfolio of Active
a rising aging population and increasing R&D activities,
Pharmaceutical Ingredients (APIs) as well as finished dosages.
combined with the growing importance of generics and uptake
The business started in the late 90s with a fermentation based,
of biosimilars, primarily due to patent expiries.
cholesterol–lowering, statin API called Lovastatin and shortly
after, in 2001, Biocon became the first Indian company to be
While North America is currently the largest consumer of APIs,
approved by the United States Food and Drug Administration
followed by Europe, the Asian market is expected to grow the
(U.S. FDA) to manufacture the API. Today, we are one of the
fastest, being the hub for outsourced drug manufacturing. Most
largest manufacturers of statin and immunosuppressant APIs
APIs are manufactured using synthetic organic chemistry, given
in the world. With a strategy to forward integrate our in-house
that raw materials are easily available, and the development
APIs, in 2013, we forayed into the generic formulation space.
process is less complicated. Recent R&D trends indicate a shift
This allowed us to move up the value chain while ensuring
in the demand towards the development of more complex APIs
reliability of supplies to our customers and patients. The
for use in novel formulations and niche therapeutic indications.
business has five API manufacturing facilities across Bengaluru,
Hyderabad and Visakhapatnam in India. In addition to our in-
China and India have the maximum number of manufacturing
house manufacturing, we also leverage the capabilities of global
facilities. India also leads the number of Drug Master Files
Contract Manufacturing Organisations (CMOs) for formulations,
(DMFs) for the U.S. markets as well as Certificate of Suitability
as required. In line with our strategic priorities, we are focused
(COS) for the European Markets.
on growing our product pipeline through vertical integration,
where possible, while also expanding our regional presence. If there is one thing that the industry has learnt from the
We will continue to add capacities and niche capabilities such pandemic, it is the importance of agility in adapting to
as peptides, high potent drugs, and injectables, in addition to unprecedented events. The need to continue focusing on
driving cost and operational leadership. optimizing supply-chains, being more self-reliant, prioritizing
portfolio selection and execution excellence are all going to be
Active Pharmaceutical Ingredients (API) critical attributes in the segments’ future growth story.
Global API Market:
The pandemic had a favourable impact on the global API Generic API Business:
industry, given the increased demand for COVID related Our API business comprises of a balanced portfolio of
treatments in addition to non-pandemic related medications. 40+ APIs spread across Cardiovascular, Anti-Diabetics,
Against the backdrop of COVID led disruptions, there was an Immunosuppressants, Oncology based High Potent API

Global Active Pharmaceutical Ingredient Market (2021-2026), December 2021 published by Research and Markets
5

Metamorphosis | 139
(HPAPI), and a few speciality and niche molecules for hospitals ~700 pharma companies in 75+ countries. Further, the Company
and institutional channels. We leverage our R&D and has been successfully inspected by several regulatory agencies,
manufacturing technology platforms to develop and produce including the U.S. FDA, EMA, TGA Australia, Health Canada
complex and differentiated APIs using fermentation, large scale and Cofepris Mexico, standing testament to our quality track
chromatography, synthetic chemistry and peptide synthesis (both record. Over the last few years, we have invested in expanding
solid and solvate phase as well as recombinant technology). With our portfolio and capacities as well as in adding complementary
a track record of over 20 years of Current Good Manufacturing capabilities to support our growth plans and to better serve the
Practice (cGMP) compliance, we are a preferred API partner for increasing market demand for API.

Our API Strategy

Expand portfolio beyond fermentation

Expansion of business in
- derived molecules to niche molecules
select key markets
such as peptides, potent APIs

(1) Focus on new & strategic customer

acquisitions for existing products
Expand manufacturing capacities
(2) De-risking dependence for
critical intermediates

Our API Portfolio*

Dapagliflozin Mycophenolate Anidulafungin

Pep des

Mul ple Sclerosis

Others
Oncology
An -Diabe cs
Cardiovascular

Immunosuppressants

Apixaban Dasa nib Liraglu de Fingolimod

Atorvasta n Empagliflozin Mofe l Everolimus Teriflunomide Micafungin
Linaglip n Mycophenolate Posaconazole
Dabigatran Lenalidomide
Sodium
Fluvasta n Repaglinide Temsirolimus Orlistat
Pimecrolimus
Ivabradine Sitaglip n Deferasirox
Sirolimus
Pravasta n Vildaglip n Brinzolamide
Tacrolimus
Rivaroxaban Pioglitazone Mirabegron
Rosuvasta n
Simvasta n
Lovasta n
Sacubitril Na
Valsartan Disodium

*Filed DMFs

Generic Formulations
increasing adoption of biosimilars, approximately two thirds of
Global Generic Formulations Market: the market will continue to comprise of small molecule generic
The global generics drug market is anticipated to grow at a drugs.
CAGR of 10% to $ 786 billion6 by 2030, driven by increasing
population, prevalence of chronic diseases, upcoming patent The U.S. continues to be the largest generics market. However,
expiries and initiatives from governments and global regulatory in recent months, the growth of the U.S. generics market has
bodies promoting the use of low-cost generics as an effective been muted, largely due to the substantial slowdown in product
alternative to branded drugs, partially offset by price erosion. approvals by the U.S. FDA and a limited number of high-value,
While innovator pharma companies continue to invest in high-margin generics. This has led to intensified price erosion,
developing novel branded drugs, generic drugs are expected to which quickly went from low-single digits at the end of the
continue to provide cost effective remedies for the therapeutic 2020 to low-mid teens by December 2021.
needs of majority of the population. While there is a trend of
6
‘Generic Drugs Market Research Report - Global Industry Analysis and Demand Forecast to 2030", March 2021 published by Research and Markets
7
‘Indian Pharmaceuticals Industry’, November 2021 published by India Brand Equity Foundation

140 | Annual Report 2022

 Biocon Limited

Given its low-cost advantage, India ranks 3rd7 in terms of solvents and raw materials, squeezing margins, requiring
pharmaceutical production by volume and 14th by value, companies to drive cost efficiencies and stabilise profitability.
positioning the country as the one of the largest providers The pressing need to be self-sufficient by boosting domestic
of generic drugs globally. It is also ranked third in bulk drug manufacturing led to the Government of India announcing
supplies, after China and Italy. The Indian pharmaceutical several packages during the pandemic, including ` 30 billion
sector, comprising of around 3,000 drug companies with over the next five years to promote bulk drug parks. Likewise,
over 10,500 manufacturing units, supplies over 50% of a Production-Linked Incentive (PLI) scheme of ` 69.4 billion was
the global demand for various vaccines, 40% of the generic announced by the Government of India to promote domestic
demand in the U.S. and 25% of all medicines in the United manufacturing of critical KSMs, drug intermediaries and APIs.
Kingdom (UK). Incentives such as these will provide further support to make
Advantage India in the Pharmaceutical Sector
India self-reliant and to create a large domestic market for API
players.
INCREASING
INCREASING
INVESTMENT
INVESTMENT
POLICY SUPPORT
POLICY
The FDI inflows in the Indian drugs
and pharmaceuticals sector reached
US$ 1.206 billion between April-
Our Generic Formulation Business:
In June 2021, Finance Minister December 2021.

SUPPORT
announced an additional outlay of The FDI inflows
ECONOMIC
ECONOMIC DRIVERS
US$ 26.5bn that will be utilised over
In line with our commitment of providing affordable healthcare
High economic growth along with
five years for the pharmaceutical PLI
scheme in 13 key sectors such as in the Indian
DRIVERS
increasing penetration of health
insurance to push expenditure on
active pharmaceutical ingredients,
In June 2021,
drug intermediaries and key starting
drugs and access to all, we have invested in a portfolio of generic
COST
COST EFFICIENCY healthcare and medicine in India materials

Low cost of production and R&D the Finance pharmaceuticals formulation drugs. Ten drug products have been commercialised
EFFICIENCY
boosts efficiency, leading to
High economic
competitive exports
Minister sector reached
Low cost of
growth along announced in the U.S. till date, and another six drugs are approved or
with increasing US$ 1.2 billion
production and an additional between April- tentatively approved by the U.S. FDA. Commercialised products
penetration outlay of US$
R&D boosts December 2021. alone have an addressable market in the U.S. of $ 2+ billion.
of health 26.5bn for
efficiency,
leading to
insurance the pharma Apart from these, there are several products that have been
to push PLI scheme in filed and are under review with the U.S. FDA. By leveraging
competitive
expenditure on 13 key sectors
exports in-house API capabilities, some of our products are vertically
healthcare and such as APIs,
medicine in intermediaries integrated, providing better control over the supply chain
India & key starting and thereby ensuring continuity of supplies to customers and
materials eventually to patients.

Source: Indian Pharmaceuticals Industry Report, November 2021 published by Our portfolio is focused on therapeutic segments such as
India Brand Equity Foundation Cardiology, Oncology, Immunology, Auto-immune indications
amongst others and comprises of oral solid dosage forms
However, over the last decade, India has become dependent (potent and non-potent), injectables, which include vials, Pre-
on the import of raw materials from China, including APIs, Filled Syringes (PFS) and auto-injectors and other dosage forms.
key starting materials (KSMs), drug intermediaries, etc. due
to lower costs, with APIs being cheaper by ~35-40%. As per We have also identified a group of key markets to commercialize
government estimates, India currently imports nearly 70% our generic formulations either directly or through strong local
of its API requirements from China as against ~20+% in late partnerships. In line with this strategy, partnerships have been
1990s, with 100% dependence in case of a few large volume forged in Southeast Asia (China, Singapore, Hong Kong and
KSMs/intermediaries. Imports have also led to the gradual Thailand), Mexico, Brazil and in the Middle East and North
repurposing of bulk drug manufacturing capacity in India and Africa. We have also established a direct presence in the United
even discontinuation of some units, as against historical trends Arab Emirates (UAE) and have plans to enter some select
where API was largely sourced from India. European markets directly as well.

In FY22, the industry faced a double whammy in the form of We continue to expand our portfolio and our regional presence
pricing pressure coupled with rising input costs, particularly while also building in-house manufacturing capabilities to
support our future growth.

Metamorphosis | 141
Our Generic Formulations Strategy

Expand portfolio
Investment in an Expansion of
beyond vertically
injectable facility to commercial footprint
integrating with
ensure reliability of beyond the U.S.,
in-house APIs;
supplies to customers either direct or
supplemented by an
and patients through partners
in-licensing strategy

Our Generic Formulations Portfolio*

Generics - FY22 Highlights:

Product Status Update
Continuing to grow our Generic Formulations business in the
Cardiovascular
U.S.: Our statin formulations portfolio in the U.S., comprising
Rosuvastatin Calcium Launched in U.S. and EU; Atorvastatin, Simvastatin and Rosuvastatin, held on to its
approved in select most-of-the- market share, despite intense pricing pressure. The year began
world (MoW) countries with two new formulation product launches – Labetalol
Simvastatin Launched in U.S. Hydrochloride tablets and Esomeprazole Magnesium Delayed-
Release capsules. Labetalol is used to treat high blood pressure
Atorvastatin Launched in U.S. and helps in prevention of cardiovascular complications such
Pravastatin Launched in U.S. as heart attack and stroke, while Esomeprazole Magnesium,
a proton pump inhibitor, is indicated for treatment of
Labetalol HCl Launched in U.S.
gastroesophageal reflux diseases. This was followed by a
Oncology key launch of our vertically integrated complex formulation,
Everolimus Launched in U.S. and approved Everolimus tablets in October 2021. Everolimus is a prescription
in EU medication that is used to treat certain types of cancers and
Pemetrexed Tentatively approved in U.S. tumors. Everolimus was introduced in four strengths of 2.5mg,
5mg, 7.5mg and 10mg, with the 10 mg tablet being a ‘day-
Immunosuppressants 1’ generic launch. Further, we secured product approvals for
Tacrolimus Launched in U.S. and approved Mycophenolic Acid, which is indicated for the prophylaxis of
& launched in select MoW organ rejection, Posaconazole, an anti-fungal drug, as well
countries as an ophthalmic product, Dorzolamide; the first two being
Mycophenolic Acid Approved in U.S. vertically integrated as well. Before the close of the fiscal, we
were able to commercialize the latter two products.
Others
Esomeprazole DR Launched in U.S. Expanding Generic Formulations in beyond the U.S. market:
(Gastrointestinal) In line with our strategic priority of ‘Regional Expansion’, the
Posaconazole (Anti-Fungal) Launched in U.S. business forayed into the MoW markets with the launch of
Dorzolamide (Ophthalmic) Launched in U.S. Tacrolimus Capsules in Mexico. We signed a partnering deal
with Tabuk Pharmaceuticals to commercialize select specialty
Dorzolamide Timolol Approved in U.S.
generic medicines in the Middle East and North Africa (MENA).
(Ophthalmic)
As a commercial partner, Tabuk will be responsible to register,
Fingolimod (Multiple Approved in U.S. and EU import, and promote products through both tender and retail
Sclerosis) markets while we will develop and manufacture the product.
Vigabatrin (Central Nervous Approved in U.S. We also received our first approval in the UAE for Rosuvastatin
System) and Tacrolimus as well as in Singapore for the latter. In Europe,
Dapagliflozin (Anti Diabetic) Tentatively approved in U.S. we received approvals for Everolimus tablets and Fingolimod
capsules and have necessary infrastructure in place to bring
*Approved or Tentatively Approved these products into the market. We continue to expand our
commercial footprint in ex-U.S. geographies, through direct
presence as well as through partnerships.

142 | Annual Report 2022

 Biocon Limited

Expanding our DMF portfolio: During the fiscal, we filed a customer portal, a sales force management system, a contract
34 DMFs globally, including 5 in the U.S. We also received management system, etc. are being put in place. Continuous
approvals for 16 DMFs in various geographies across U.S., process improvement using the Kaizen approach has also been
Europe and MoW. undertaken.

Strengthening manufacturing capacities and capabilities: Attracting and Developing Talent: To attract the right talent
The commissioning of our greenfield, fermentation- in an efficient and unbiased manner, we introduced Artificial
based immunosuppressant API manufacturing facility in Intelligence (AI) in our talent acquisition program, whereby
Visakhapatnam, Andhra Pradesh is nearing completion, profiles are ranked against job descriptions and shortlisted
following which our efforts will be focused on qualification candidates are taken through video interviews. We also
and validation. This is our first facility to be enabled with revamped our internal job posting process, and opened up all
Industry 4.0. and will add much needed capacities to serve our vacant positions to be filled in internally first, before looking for
customers’ demands. We also repurposed existing facilities to talent externally. This process is managed by our newly launched
release capacity and optimize capital expenditure. We are also in-house career portal, MyCareer, which suggests internal roles
investing in synthetic, potent and peptides API manufacturing to employees based on their career aspirations, experience, skills
capacities in addition to injectables in alignment with our and competencies, thereby enabling and empowering them to
strategic priorities. drive their career growth through internal opportunities. This
is a step towards building a role based organization, where an
Apart from manufacturing capacity and capability expansion, employee’s growth potential is given as much importance as
we strengthened our R&D capabilities as well through an technical and behavioral skills required for a particular role.
improved organization structure.
At Biocon, we promote a culture that is meritocratic and value-
Driving Operational Excellence and Digitization: Cognizant driven. By investing in the best talent, we actively look to create
of the fact that digital transformation is critical to our future future leaders. In order to develop our leadership pipeline
success, several digital tools have either been implemented or and critical talent, we partnered with leading organizations
are at various stages of implementation across the organization to conduct assessments for such employees and chart their
such as : individual development journeys.

• Regulatory Information Management Systems (RIMS) Securing supply chains and energy sourcing for a sustainable
future: We continue our efforts to de-risk the supply chain,
• Lab Information Management Systems (LIMS) especially for key products, as well as develop alternative
vendors for materials where we are dependent on a single
• Scientific Data Management Systems (SDMS) source in specific geographies.

• Quality Management Systems (QMS) In line with Biocon’s priority of sustainable growth, substantial
efforts have been made to replace the use of non-renewable
• Learning Management Systems (LMS) energy sources. Today, more than 70% of the energy
requirements at our Bengaluru facilities are met through green
• Document Management Systems (DMS) energy, which is significantly higher than the industry average.

• Cleaning Validation Ensuring Continued Compliance through Quality Management:

Based on a remote inspection conducted by Medicines and
• Annual Product Quality Review (APQR) and Healthcare products Regulatory Agency (MHRA), UK, at our
oral solid dosage formulations manufacturing facility located
• Process Mining
at Biocon Park in Bengaluru, we received a certificate of Good
Manufacturing Practice (GMP) compliance in April 2021. The
To improve efficiencies, simplified Batch Manufacturing
certificate included manufacturing and packaging of tablets
Records (BMRs) and Standard Operating Procedures (SOPs)
and capsules in the non-potent and potent blocks of the
have been implemented for major commercial products across
facility. In September 2021, the US FDA conducted a Remote
sites. As indicated earlier, Manufacturing Execution System as
Interactive Evaluation (RIE) at the same facility following which
part of Industry 4.0 is also being planned in the new facility
some previously filed ANDAs received approvals. In December
in Vishakhapatnam and is expected to drive operational
2021, Health Canada conducted a remote inspection of our API
efficiencies and compliance. To enhance customer experience,
manufacturing unit, which is also located in Biocon Park, for

Metamorphosis | 143
which we received a Compliant rating. In July 2021, the Maltese 2013 to treat chronic plaque psoriasis. In 2017, we licensed
authorities conducted a Wholesale Dealer License (WDL) and out the rights to develop and commercialize Itolizumab to
Manufacturing/Importation Authorization (MIA) inspection for U.S.-based biotechnology company, Equillium Inc. for the U.S.,
the import and marketing of drug products in the European Canada, Australia and New Zealand. Itolizumab is currently
Union. Thereafter, the authorities issued the Certificate of being developed for indications such as acute graft-versus-host
Good Distribution Practice (GDP) Compliance of a Wholesale disease (aGVHD) and systemic lupus erythematosus (SLE) or
Distributor, enabling us to commercialize in Europe. While these lupus nephritis (LN). Equillium has received fast track designation
approvals are testament to our strong Quality systems and from the FDA for Itolizumab for the treatment of patients with
compliance track record, we continue our endeavor to improve aGVHD and LN. Itolizumab has also received orphan drug
our systems and processes for sustained compliance through designations from the FDA for both prevention and treatment of
continuous training and use of data analytics for improved aGVHD. The drug has also been granted ‘Restricted Emergency
Quality culture. Use’ approval in 2020 in India for the treatment of Cytokine
Release Syndrome in ‘Moderate to Severe’ Acute Respiratory
Generics - FY22 Financial Performance: Distress Syndrome (ARDS) patients and was repurposed for the
The Generics business contributed 29% of consolidated group prevention and treatment of COVID-19 complications.
revenues with revenues at `23,409 million in FY22 compared
to `23,627 million in FY21. The segment witnessed a muted With respect to Tregopil, a first-in-class oral, prandial Insulin,
largely due to supply and operational challenges earlier in the we had partnered with U.S. based Juvenile Diabetes Research
year, coupled with headwinds in the form of pricing pressures, Foundation (JDRF), a leading non-profit organization to
and higher cost of solvents, raw material and logistics. The conduct a Phase I multiple ascending dose study in Germany
segment saw a recovery in the second half of the fiscal driven among patients with type 1 diabetes. The drug at various doses
by contributions from new product launches in the U.S., had shown glucose-lowering ability, however variability was
particularly Everolimus, an uptick in our API business and a observed between different patients as well as variability in the
normalization of supply challenges that impacted the business same patient on different days. Hence, we have decided to not
in the first half of the fiscal. conduct part 2 of the study.

Generics – Outlook: Our Boston based associate, Bicara Therapeutics, is a clinical-

stage biotechnology company developing first-in-class biologics
We expect the business to continue to recover in FY23, on the
drugs, engineered to bring together the precision of targeted
back of new product approvals and additional capacities to
therapy and the power of immunotherapy. In line with its vision
support unmet demand. While unknown variants of the virus
to develop meaningful therapies for cancer patients, Bicara
continue to pose as a potential threat, we believe that the
continues to make progress on its lead molecule, BCA101.
pandemic is reaching an endemic state and we will, hopefully,
BCA101 is a bifunctional antibody designed to target a TGF-β
not face any further operational or supply chain challenges that
trap to EGFR-positive tumors by inhibiting epidermal growth
we witnessed in FY22. Having said that, we continue to de-risk
factor receptor (EGFR) and disabling TGF-β directly at the site
our base business and improve processes, including through
of the tumor, ideally achieving superior anti-tumor efficacy
digitization, to drive operational and cost efficiencies. We
with an improved therapeutic window. BCA101 has a potential
believe that this would equip us to cope with future unknown
to target multiple tumor types and has a higher local tumor
or continuing headwinds such as pricing pressure and rising
concentration of immuno-modulatory arm resulting in a better
input costs. We will continue to focus on flawless execution
therapeutic window. A first-in-human, Phase 1/2 study in EGFR-
that will enable us to bring new products into the market
driven tumors was activated in July 2020 at leading institutions
expeditiously, further bolster our manufacturing and R&D
in the U.S. and Canada. In addition to the deep relationships
capabilities and develop our people and processes to drive long
with the world’s top cancer centers, Bicara is well positioned
term, sustainable growth.
to benefit from its Bengaluru-based dedicated research team’s
track record of developing highly complex FDA-approved drugs,
Novel Biologics
on one hand, and the company building and drug development
Our Novels Biologics business continues to address unmet experience of its leadership and clinical development team
patient needs with a focus on diabetes, oncology and respectively in Cambridge on the other.
immunology. The lead molecule, Itolizumab, is the world’s first
novel humanized anti-CD6 monoclonal antibody that selectively Novel Biologics - FY22 Highlights:
targets the CD6-ALCAM pathway. The drug is Biocon’s second
Our partner, Equillium, Inc., initiated a Phase III clinical study
global ‘lab to market’ novel biologic after Nimotuzumab. Under
of Itolizumab in patients with aGVHD in March 2022. The
the brand ALZUMAb™, Itolizumab was launched in India in
randomized, double-blind study will assess the efficacy and

144 | Annual Report 2022

 Biocon Limited

safety of the drug versus placebo as a first-line therapy in introduced for several multi-billion-dollar therapeutics have been
combination with corticosteroids. well received by the patients, doctors, customers and payers.

In July 2021, the European Medicines Agency’s Committee for Since 2015, biosimilars have been launched in the US
Orphan Medicinal Products granted an orphan medical product referencing eight innovator molecules in oncology, immunology,
designation to Itolizumab for the treatment of both acute and diabetes (as of March 2022). Biosimilar penetration has
and chronic GVHD. This was a milestone for us as we intend continued to improve with increased acceptance from all the
to develop this drug for patients in Europe upon regulatory stakeholders, including payors and providers.
approval.
Biosimilars Penetration in US
After observing positive trends in Part A of its Phase 1b EQUALISE 90%

Market Share by Normalized SU

study for SLE and LN indication, Equillium has expanded the 80% Bevacizumab, 79%
Trastuzumab, 77%
70%
Part B portion to clinical centers in India.
60% Rituzimab, 61%
50%
Infliximab, 42%
Itolizumab was at the forefront of our fight against COVID-19 40% Pegfilgras�m, 41%

30% Glargine, 32%

in India. Biocon completed the Phase 4 study of Itolizumab to
20%
treat Cytokine Release Syndrome in moderate to severe ARDS 10%

patients due to COVID-19. 0%

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N -20
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N -21
Fe 21
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22
-

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Bicara completed enrolment for the dose finding part of the
Phase 1 trial as a single agent and in combination with a PD1 Note: Biosimilar penetration based on IQVIA monthly data; Glargine includes

inhibitor for patients with EGFR-driven advanced solid tumors. Lantus, Basaglar and Semglee

Bicara established the highest dose with desired level of safety

and tolerability for both formats. Proof of concept is expected Europe has been a frontrunner in biosimilar adoption with
in the second half of 2022. penetration being over 60% across most molecules. The
introduction of biosimilars has led to market expansion for
Following the completion of this study, in February 2022, most molecules, improving access for patients. The level of
Bicara initiated dose expansion cohorts evaluating BCA101 biosimilar penetration varies across countries considering the
in patients with head and neck squamous cell carcinoma heterogenous market dynamics.
(HNSCC), squamous cell carcinoma of the anal canal (SCAC)
and cutaneous squamous cell carcinoma (cSCC). Biosimilars Penetration in EU
90%
Rituximab, 80%
Inflximab, 79%
Bicara has secured external funding to support BCA101 clinical 80% Bevacizumab, 76%
Market Share by Normalized SU

development and its pipeline. This has further diluted Biocon’s 70% Pegfilgrastim, 69%
Etanercept, 62%
stake in Bicara, resulting in a step up gain in the current fiscal. 60% Adalimumab, 62%

50% Trastuzumab, 50%

Biosimilars (Biocon Biologics Limited) 40%

Biocon operates its biosimilar business through its subsidiary Biocon 30%
Glargine, 27%
Biologics Limited (BBL). We develop high-quality and affordable 20%
biosimilars that can expand access to cutting-edge therapeutics for 10%
patients globally at our R&D sites in Bengaluru and Chennai (India). 0%
Aspart, 3%

These are manufactured at scale for both developed and emerging

2 5
2 6
2 6
2 6
2 6
2 7
2 7
2 7
2 7
2 8
2 8
2 8
20 8
2 19

2 9
2 9
2 9
2 0
2 0
2 0
2 0
2 1
2 1
20 1
21
Q 01
Q 01
Q 01
Q 01
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Q 01
Q 01
Q 01
Q 01
Q 01
Q 01
Q 01
Q 01

Q 01
Q 01
Q 01
Q 02
Q 02
Q 02
Q 02
Q 02
Q 02
Q 02
2

2
4
1
2
3
4
1
2
3
4
1
2
3
4
1

3
4
1
2
3
4
1
2
3
4
Q

markets in Bengaluru (India) and Johor (Malaysia). Our products

are marketed globally through a hybrid commercial model, Note: Biosimilar penetration based on IQVIA quarterly data; Glargine includes
wherein we have direct commercial presence in a few countries Lantus, Basaglar and Semglee
and in others, we leverage partners such as Viatris.
Biosimilars have an important role in improving access to cutting-
Biosimilars : An attractive market edge therapeutics in emerging markets. We have witnessed
In the last decade, the biosimilar industry has grown significantly growing demand for biosimilars in several countries. There has
in all parts of the world. We have witnessed rapid adoption of been an adverse impact of COVID-19 on healthcare budgets
biosimilars in Europe and emerging markets. More recently, there in these markets as countries have been diverting resources to
has been strong penetration of biosimilars in the US. Biosimilars mitigate the impact of the pandemic, further increasing the
demand for affordable therapies.

Metamorphosis | 145
Over the next 5 years, biologic brands having revenues of more R&D, manufacturing, and emerging markets commercial platform.
than $70 billion will lose exclusivity, presenting multiple new We have made substantial investments with Viatris to build
opportunities for the biosimilar industry; a significant step up complimentary capabilities – a strategy which has allowed us to
against $25 billion in the prior 5-year period8. According to de-risk our journey in an uncharted territory.
IQVIA, this has the potential to generate about $215 billion
in cumulative savings for healthcare systems globally. Biologic The aspiration to build a world leading biosimilar company
therapies form a large proportion of the total new drugs under calls for bold and transformational changes, adapting to the
development, paving the way for a significant increase in evolving market dynamics in the coming decade.
biosimilar market size in the long-term.
In February 2022, we entered into a definitive agreement to
Inception of Biocon’s biosimilars business acquire our partner Viatris’ biosimilars business. The combined
Biocon’s early entry into the biosimilar segment, more than business will have all the elements to serve the global
20 years ago, has enabled us to become a frontrunner in the biosimilar market, including R&D capabilities, product portfolio,
biosimilars industry. Our journey started with the development manufacturing capacity, global commercial infrastructure,
and commercialization of our proprietary Pichia pastoris and an experienced management team, creating a global
platform-based recombinant Human Insulin which was followed organization for the next decade and beyond.
by our entry into oncology monoclonal antibodies (mAbs). In
2009, we entered a global strategic collaboration with Viatris The acquisition will allow us to capture the full value from all of
(earlier Mylan) for the development, manufacturing, supply, the collaboration programs post completion of the transaction.
and commercialization of a few biosimilars. The higher economic benefit from these molecules will further
strengthen our financials and provide us with the scale and
The Viatris collaboration is a cost-share and profit-share model incremental capabilities to support the next wave of products.
wherein we participate in about one-third of the economics
from the developed markets where Viatris has exclusive It will enable us to directly leverage the biosimilar commercial
commercial rights and about a half in emerging markets where infrastructure built by Viatris for our existing and future pipeline
we have shared commercial rights. The investments made of products. The commercial team will be dedicated to biosimilars
by both companies in scaling complementary skills in R&D, when they become a part of Biocon Biologics, providing
manufacturing, and commercialization, ahead of our peers, sharper focus in their respective territories. A combination of
have allowed us to develop a strong foundation in each of these longstanding track record with patients and customers, growing
areas. Despite the nascent biosimilars regulatory pathway, we biosimilar portfolio and focused commercial efforts forms the
have been able to achieve many firsts, setting new benchmarks basis of our developed markets biosimilar strategy.
for the industry.
We believe that vertical integration in the biosimilars industry
The experience and early success of our first wave of molecules is critical to be both agile and competitive. A fully integrated
enabled us to go up the value chain and garner a higher model will help us bring efficiencies in the system with quicker
share in commercial rights along with increased participation decision making, improved market insights and common focus
in the risk-reward equation of sharing costs and profits. The across functions, backed by one common organizational vision
partnership with Sandoz is structured on an equal economic and mission. The acquisition of Viatris’ biosimilar business
share with Biocon Biologics having increased rights in developed enables a vertically integrated structure and fills the gap in our
markets and exclusive rights in most emerging markets. The missing capabilities in developed markets, especially around
responsibility for development, manufacturing and ownership local supply chain, regulatory and commercialization.
of the marketing authorizations is shared between the partners.
Seamless integration and focused execution will allow us to
Evolving Biocon Biologics to a fully integrated global maximize the value from this transaction. The companies
biosimilars enterprise will enter into a Transition Services Agreement, pursuant to
which Viatris will provide certain transition services, including
The biosimilar industry has been maturing rapidly with increased
commercialization services, for an expected two-year period.
acceptance across the globe. Improved clarity on the regulatory
Our long-standing relationship with Viatris, positions us well to
pathway, success stories of several biosimilars and a growing
ensure smooth integration of the two businesses.
market opportunity have drawn interest from several companies.
Biocon’s initial foray into biosimilars through a partner led model Expansion into adjacencies
wherein we focused on certain activities while benefitting from
We have been primarily focused on bio-therapeutics for non-
partners’ capabilities for others has enabled us to build a strong
communicable disease to deliver on our vision of affordable,
8
IQVIA Market Prognosis, Sep 2021; IQVIA Institute, Nov 2021

146 | Annual Report 2022

 Biocon Limited

innovative, and inclusive healthcare solutions. However, a strong the terms of the agreement, commencing H2FY23, the business
presence in communicable disease is an essential element to will generate a committed revenue stream and related margins.
have a holistic impact on patient lives. In the last couple of Gradually we will establish a vaccine R&D division to support
decades, we have seen a rapid increase in the frequency of viral the strategic alliance in developing both vaccines and biologics
outbreaks. Besides COVID-19, there have been several other for communicable diseases, providing long-term growth drivers
viral outbreaks in different parts of the world such as Dengue, for this business.
Zika, Ebola, etc. Infectious diseases led by viral outbreaks have
a devastating impact on human life as demonstrated in the Building a robust product portfolio
recent pandemic. Through our Covid-care portfolio, anchored We have one of the deepest portfolios of biosimilars in the
by Alzumab-L (our novel antibody Itolizumab), we were able industry, spanning across insulin, antibodies and recombinant
to realize the potential of bio-therapeutics in the fight against proteins. The partnership with Viatris has yielded several
infectious diseases. Biocon’s more than 20 years of investments molecules in diabetes, oncology, and immunology of which
in biologics provides a strong foundation to contribute further five have been already commercialized in markets globally9.
to this fight, leading to our strategic expansion into adjacencies We were the first company to receive US FDA approval for
such as vaccines and antibodies. bTrastuzumab and bPegfilgrastim. The commercial success of
bPegfilgrastim, bTrastuzumab and bGlargine and in-licensed
In July 2021, we partnered with US based Adagio Therapeutics biosimilars, bAdalimumab and bEtanercept has allowed us to
for an exclusive license to manufacture and commercialize continue to invest in our pipeline. Launches of bBevacizumab,
ADG20 in India and select emerging markets. ADG20 is a bAspart and bAdalimumab, especially in the US, are expected
novel monoclonal antibody targeting the spike protein of to contribute to the near-term growth of the business.
SARS-CoV-2 and related coronaviruses. The preliminary results
from Phase 2/3 clinical trials of ADG20 showed that in the pre- We have built a sizeable portfolio of unpartnered biosimilars that
Omicron population, ADG20 administered as a single 300mg are at various stages of development. We are developing various
IM dose met primary endpoints with statistical significance. presentations of recombinant human insulins (rHI) for the US.
However, given the lack of neutralizing activity against the BA.2 Our biosimilar referencing Eli Lilly’s Humulin-R, a short-acting
variant, Adagio has paused the submission of an Emergency rHI, demonstrated equivalence in a pharmacokinetic (PK) and
Use Authorization (EUA) request to the US FDA. pharmacodynamic (PD) study published in the journal, ‘Diabetes,
Obesity and Metabolism’, in January 2022. We have also advanced
In September 2021, Biocon Biologics and Serum Institute Life bUstekinumab and bDenosumab into clinical development. We
Sciences (SILS) entered into a strategic alliance for vaccines are conducting Phase 1 and Phase 3 clinical trials for both the
and infectious disease antibodies. We will get committed programs backed by the robust pre-clinical CMC packages. The
access to 100 million doses of vaccines per annum from SILS’ pipeline will be augmented by Viatris’ bAflibercept, wherein we
upcoming vaccine facility in Pune for about 15 years post- have the option to acquire Viatris’ rights in the program as a part
closing of the transaction. We will also get commercialization of the aforementioned acquisition.
rights to SILS’ vaccine portfolio, including COVID-19 vaccines
for markets where SILS has rights. The near to medium-term Our portfolio also includes bPertuzumab, bGlargine 300U
focus will be on commercialization of SILS portfolio wherein and seven other early stage undisclosed programs that would
our commercial teams will collaborate to maximize the value sustain our growth in the long-term.
of the vaccines which are a part of the alliance. Pursuant to

9
Does not include Viatris in-licensed programs (bAdalimumab and bEtanercept)

Metamorphosis | 147
Status of Biocon Biologics Portfolio (April 2022)

Therapeutic Area Molecule US Dev. Markets: ex-US MoW4

Pegfilgrastim1 Europe, CANZ
Trastuzumab1 Europe, CANZ
Oncology Bevacizumab1 Europe, AU, CA
Denosumab Europe, CANZ, JP
Pertuzumab1
Adalimumab1,2 Europe, CA, JP
Immunology Etanercept1,2 Europe
Ustekinumab UK, CANZ, JP
Glargine 100U1,3 Europe, CANZ, JP
Glargine 300U1 Europe
Diabetes
Aspart1 Europe, CA
rHI
Ophthalmology Aflibercept5
Bone Health Denosumab Europe, CANZ, JP
Undisclosed 7 Assets

Early Dev./
Clinical Filed Approved
Preclinical

Access to SILS vaccine portfolio (Covishield and Covovax) and other next generation vaccines (e.g., mosquito-borne disease vaccines)6
1 In partnership with Viatris; 2 Partner Viatris has in-licensed product (Biocon benefits from economic interest) | 3 Japan is outside of Viatris partnership | 4 MoW represents Most of the World markets. Chart represents the status of the country where
the product is in most advanced stage. Every country has a different status | 5 Expected to be included in BBL portfolio post the completion of BBL’s acquisition of Viatris’ biosimilar business (Product partnered with Momenta) | 6 Subject to
completion of the acquisition of Covishield Technologies Private Limited (CTPL) 1
B I O C O N L I M I T E D 1

Commercial performance of Biocon Biologics Our presence in emerging markets has been fortified through
our organically developed B2B business and Viatris’ emerging
Through our partnership with Viatris, we have been able to markets business. Our B2B business has increased its breadth
access all the key developed markets with multiple products by entering new countries through regional partnerships and
across therapy areas, creating a strong track record. Market addition of new products following approval in developed
shares garnered by our products have meaningfully contributed markets. In addition to the products developed in collaboration
to the growing biosimilar penetration in the US. In July 2021, with Viatris, we have been commercializing recombinant
US FDA granted ‘interchangeability’ designation to biosimilars human insulin (rHI) through our B2B platform. During the year,
with Semglee, our bGlargine 100U, being the first to achieve we entered 44 new partnerships across 50 countries for our
the feat. Interchangeability allows pharmacists to automatically products, enabling entry into new markets. We continue to
substitute the reference drug with the interchangeable see strong demand for our commercialized products in existing
biosimilar, increasing the confidence of patients, doctors, and markets. For example, in FY22, we have won a three-year
payors. There has been strong demand for our interchangeable contract for Insugen in Malaysia, valued at $90 million.
bGlargine in the US evidenced by the market share ramp up seen
in Q4 FY22. The evolving market dynamics around biosimilars Biocon Biologics has been investing to build its direct commercial
indicate a preference for the interchangeability designation for footprint in emerging markets, allowing it to capture higher
patient-administered drugs. value from the products sold in the region. We have added field
force in the UAE and Saudi Arabia to augment commercialization
We have pursued select European countries thus far as a part efforts for our biosimilars in the region, enabling us to get closer
of our Viatris collaboration. It will continue to be an important to the patients and customers.
market for Biocon Biologics, benefitting from the strong
acceptance of biosimilars in the region. In other developed Our Branded Formulations India (BFI) business has a large field
markets of Canada, Australia and Japan, our products continue force network focusing on specialty brands in critical therapies
to see strong demand. For instance, we have one of the and offering world-class quality therapeutics to thousands of
leading bTrastuzumab in Canada and Australia. In February patients in India. These include biologics (including biosimilars,
2021, Viatris received regulatory approval for bAdalimumab in novel molecules, and others), in-licensed products, and branded
Japan, wherein we have an economic interest, and it will be an generics for acute and chronic conditions. The business
important growth driver in the region. focuses on therapeutic areas such as metabolics (diabetes,
cardiovascular), oncology, nephrology, and autoimmune

148 | Annual Report 2022

 Biocon Limited

diseases. In FY22, our BFI commercial team was instrumental outstanding scientific issues with the product and the CRL
in helping more than 50,000 COVID-19 patients through was responded to in due course. bAspart is approved in
distribution of our comprehensive Covid-care portfolio. EU, Canada, and Malaysia.

Biosimilars - FY22 Highlights: • Recombinant Human Insulin (rHI): We have commercialized

FY22 was an important year for Biocon Biologics as we witnessed recombinant human insulin in several emerging markets
several transformational events, both strategic and operational. worldwide. We continue to progressively file Biologics
Both the BBL-led business and the Viatris-led business have License Applications for various formulations of rHI.
delivered strong performance during the year.
Our product portfolio continues to grow as we develop existing
• bPegfilgrastim: In the US, we have seen an uptick in products for new markets and develop new products for global
market share of Fulphila® versus FY21 with resilience markets. We progressed our bUstekinumab and bDenosumab
demonstrated throughout the year despite competitive into clinical development. We have initiated the expansion of
dynamics. our insulin manufacturing facility in Malaysia, driven by a strong
demand for our current insulin portfolio. This will also support
• bTrastuzumab: In the US, there has been a gradual increase our future pipeline. We have built two mAbs Drug Substance
in the market share of Ogivri® through the year. We have facility (B3 and B5) located in Bengaluru catering to the growing
also seen a strong performance of Ogivri® in Canada and demand for our existing products along with the upcoming
Australia. We continue to enter new markets through our pipeline. These facilities are going through regulatory process to
B2B business, opening new opportunities for growth. qualify existing portfolio as well as our pipeline. Our investment
strategy is to build capacity in a modular manner, in-line with
• bBevacizumab: We launched bBevacizumab in the EU, our projection of market opportunity.
Canada and Malaysia. We have received regulatory
approvals in several emerging markets, supporting our B2B As the world celebrates the 100th anniversary of the discovery
business. We are awaiting site inspection of our Bengaluru of insulin, Biocon Biologics tied up with the Research Society for
facility by the US FDA in Q2 FY23 which has been delayed the Study of Diabetes in India (RSSDI), Asia’s largest organization
because of the pandemic. of researchers and healthcare professionals for diabetes. We will
launch a Comprehensive Care Program, BRIDGE-1, the Biocon
• bAdalimumab: Hulio™ continues to improve market share & RSSDI Initiative for Diabetes Knowledge in Type 1 patients.
in EU. It has been approved by the US FDA with launch The program will identify and train ~400 physicians in different
expected in July 2023. districts across India country. It reinforces our commitment
towards affordable access of our products.
• bEtanercept: We have an economic interest in Nepexto®
due to our three-way collaboration with Viatris and Lupin. In September 2021, we entered a strategic alliance with SILS
Nepexto® was launched in the EU in August 2020. wherein we will offer approximately 15% stake in BBL to SILS,
at a post-money valuation of ~$4.9 billion. As mentioned
• bGlargine: Semglee® received interchangeability previously, we will get committed access to a 100 million doses
designation in July 2021. Effective January 2022, Express of vaccines per annum for about 15 years. Adar Poonawalla
Scripts and Prime Therapeutics, leading pharmacy benefit will have a Board seat in BBL. We will issue shares and receive
management organizations, have listed our bGlargine as a the contemplated rights through a merger with Covidshield
preferred insulin brand on their national formularies that Technologies Pvt. Ltd. (CTPL), a wholly owned subsidiary of
together include more than 60 million lives in the US. It SILS, on customary closing conditions and receipt of regulatory
will also be offered through the Walgreens Prescription approvals.
Savings Club, saving members up to 80% off the cash
price of comparable long-acting insulins purchased at In February 2022, we entered into a definitive agreement to
Walgreens. We have seen strong growth in market shares acquire Viatris’ biosimilars business to create a unique fully
of our bGlargine from January 2022 on account of these integrated global biosimilars enterprise. Post completion
commercial arrangements. of the transaction, Viatris will receive consideration of up to
$3.335 billion, including cash up to $2.335 billion and
• bAspart: US FDA conducted an on-site pre-approval Compulsorily Convertible Preference Shares (CCPS) in BBL
inspection (PAI) of our Malaysian manufacturing facility valued at $1 billion, equivalent to an equity stake of at least
in September 2021. Following the inspection, it issued a 12.9% on a fully diluted basis. Cash consideration will be
Complete Response Letter (CRL) which did not identify any distributed over the next few years with $2 billion payable

Metamorphosis | 149
on closing of the transaction and up to $335 million as Research Services (Syngene)
additional payments expected to be paid in 2024. The deferred The discovery and development of new medicines is a long,
considerations include $175 million to be paid for the acquisition complicated and costly process. With the aim to improve
of Viatris’ rights in its bAflibercept. Viatris will pay $50 million productivity and efficiency in the different stages of the
to BBL to fund certain capital expenditures. Cash payment of drug development process, a growing number of innovator
$2 billion will be funded by ~$800 million raised through equity companies (also known as ‘sponsors’) are outsourcing a large
infusion in BBL and the remainder will be funded by debt. Equity part of the pharmaceutical value chain. Contract Research
infusion of ~$800m will see participation from SILS, Biocon Organizations (CROs) offer outsourced services to support
Limited and other private equity investors. drug discovery and development, while Contract Development
and Manufacturing Organizations (CDMOs) offer drug
The two strategic partnerships have enabled Biocon Biologics development and manufacturing services on a contractual
to expand its business horizontally and vertically. It reflects a basis. Biocon’s publicly listed subsidiary, Syngene International
high level of conviction in Biocon Biologics’ position as a global Ltd. (‘Syngene’) is one of the key players in the CRO market
frontrunner in biosimilars, transforming to be the world’s and has an emerging presence in the CDMO market. Syngene
leading fully integrated biosimilar company. is an integrated research, development and manufacturing
services company providing scientific services for small and
Biosimilars - FY22 Financial Performance:
large molecules. Syngene provides end-to-end services within
The biosimilars business continued to see strong growth with the CRO segment and a growing range of services within the
sustainable profitability. Biocon Biologics’ revenues have grown CDMO segment. This makes Syngene’s business a combination
by 24% over last year to `34,643 million, representing 42% of many businesses. The Company has built state-of-the-art
of consolidated revenues from operations. Revenue growth facilities, spread over 2 million sq. ft., across three locations in
was driven by a strong uptake of our interchangeable insulin India - Bengaluru, Hyderabad and Mangalore which have been
glargine in the second half of the year, improved market inspected by regulators including the U.S.FDA, EMA and PMDA.
shares of Trastuzumab in US and an improved performance in The Company has a well-spread and growing clientele base
other developed and emerging markets. Core EBITDA margin, of ~420 active clients across global pharmaceutical, biotech,
which is EBITDA less licensing, forex, mark-to-market loss on nutrition, animal health, consumer goods, agro-chemicals and
investments and R&D expense was at 39% versus 36% in FY21. specialty chemical sectors. In the pharmaceutical space, 15 of
The improved margins were a result of a higher revenue base. the top 20 pharmaceutical companies are Syngene’s clients.
The business delivered EBITDA margins of 29% in FY22.
Contract Research Organisation (CRO)
Biosimilars - FY23 Outlook:
CRO Market:
FY22 has been a transformational year for Biocon Biologics
on account of the two strategic deals entered into. We will The CRO market is expected to grow at a CAGR of 6% with
be focused on completing these deals and integrating the overall market size increasing from USD 21 billion in 2021 to USD
acquired businesses into Biocon Biologics. Combining the 28 billion by 202610. The CRO industry is highly fragmented with
Viatris’ biosimilar business with BBL will accelerate the build hundreds of small to mid-sized companies amid low barriers to
out of our commercial capabilities in developed markets in entry. The participants consist of a range of functional service
order to become a strong global brand. Vertical integration providers to full suite integrated service providers capable of
will drive operational efficiencies and business agility, thereby providing an end to end platform of services from early stage
underpinning cost competitiveness. The vaccines alliance with drug discovery to IND filing. Reliability, intellectual property
Serum and our continued investment in R&D, adding products (IP) protection, track record, expertise in preclinical animal
to our portfolio, opens up new growth avenues for Biocon models for select therapies, pricing, nature of engagement,
Biologics in the coming years. FY23 will witness the first full year communication channels and methodology, scalability, ability to
of revenues from our interchangeable insulin glargine in the support end-to-end drug discovery, and development projects
US. In FY23 we are anticipating several regulatory milestones are key attributes for service providers in this segment.
including potential approval of bBevacizumab and bAspart
in the US. We will be progressing our in-house biosimilar Our CRO Business:
programs, bUstekinumab and bDenosumab, through clinical Discovery Services and Dedicated R&D Centers are part of
development. The business catalysts and strategic levers will our CRO business. Syngene’s Discovery Services are engaged
further strengthen Biocon Biologics as a platform to become in early-stage research from target identification to delivery of
the world’s leading vertically integrated biosimilar enterprise drug candidates for further development. It spans functional
augmented by presence in strategic adjacencies. services covering Chemistry, Biology, Safety Assessment,
10
‘Global Drug Discovery and Early Development Outsourcing Growth Opportunities’, August 2021 published by Frost & Sullivan

150 | Annual Report 2022

 Biocon Limited

Research Informatics and fully integrated therapeutic discovery The global small molecule CDMO market is expected to grow
and development across small and large molecules. Syngene from ~USD 80 billion in 2020 to ~USD 115 billion in 2026
operates Dedicated R&D Centers providing scientists, complete at a CAGR of 6.2%11. This is being driven by pharmaceutical
infrastructure and an ecosystem to run an R&D facility that is manufacturers growing reliance on the expertise of CDMOs
exclusively for a particular client. Such centers are currently run for the development and manufacturing of innovator active
for three clients: Bristol-Myers Squibb (BMS), Baxter Inc. and pharmaceutical ingredients (APIs) and high-potency small
Amgen Inc. Our strategy is to drive integrated play in Discovery molecules (HPAPI). While innovator APIs are highly complex and
Services and to extend and expand our Dedicated R&D Centers. require enabling technology to advance to the clinic and beyond,
HPAPIs are highly toxic and require specialized manufacturing
Contract Development and Manufacturing and handling capabilities.
Organisation (CDMO)
CDMO Market: While small molecules command the prominent share of the
pharmaceutical market, the market share of large molecules
Pharmaceutical companies are strategically outsourcing (biologics) has steadily increased over the past decade for
manufacturing work to Contract Manufacturing Organizations having revolutionized the treatment of several serious illnesses.
(CMOs). The work can range from production of small quantities of Cancer therapies are among the primary drivers for a large
materials for R&D purposes, larger amounts for clinical study usage proportion of the growth in the biologics market. Further,
and ultimately full-scale production for commercial purposes. over the past five years there has been a 50% increase in the
Further, these companies are increasingly preferring to partner large molecule drug pipeline. In 2021, the USFDA’s Center for
with Contract Development and Manufacturing Organizations Biologics Evaluation and Research (CBER) approved 10 different
(CDMOs) as they offer both development and manufacturing biological products12. The number of companies working with
service expertise. The CDMOs end-to-end capabilities address biologics has also grown, particularly the number of small and
the twin challenges of developing complex molecules and of virtual biotech players.
technology transfer during the drug commercialization stage.
The manufacturing and development of large molecules is,
While limited or lack of well-equipped in-house facilities is the however, more complex and capital-intensive than that of
foremost factor behind outsourcing decisions, the services of small molecules. These challenges are more acute for clinical-
CMOs/CDMOs are being increasingly tapped to gain access to stage and virtual biopharmaceutical companies with limited or
advanced technologies and high containment capabilities, reduce no infrastructure to develop and commercialize their clinical
costs, lower drug development risk, gain access to manufacturing pipelines. To address these challenges, biopharmaceutical
expertise, and reduce drug commercialization timelines. Supply companies are partnering with CDMOs. The specialized
chain resilience and drug shortage challenges due to COVID-19 capabilities of CDMOs are also being tapped to drive accelerated
further strengthen the case for having backup manufacturing. development, speed to market and cost efficiency.
The CDMO market remains highly fragmented with top players
together accounting for only a quarter of the market. The large molecules CDMO market was valued at
~USD 11 billion in 2020 and is expected to reach ~USD 20 billion
The small molecule CDMO segment comprises of clinical by 2026, at a CAGR of 10.1%13. In the short term, a growth
manufacturing services and commercial manufacturing spurt is expected from COVID-19 vaccine manufacturing deals
services. The clinical manufacturing services encompass cGMP and overall biopharmaceutical market expansion.
development of small molecules for clinical studies. Depending
on the stages of the clinical trial, the total number of doses Our CDMO Business:
that need to be manufactured can range from hundreds to Syngene’s CDMO business consists of development services
thousands. Commercial manufacturing services involve large- for clinical trials and commercial manufacturing services.
scale commercial development of small molecules that have Development services include delivering drug substances and
received regulatory approval. drug products for clinical trials, providing analytical services,
managing clinical trials, cGMP compliant manufacturing of
Small molecules have long been the basis for drug development clinical supplies, and registration batches for small molecules.
and continue to dominate in terms of market share and future Manufacturing services include the manufacturing of small as
developments in the pipeline. Of the approved 50 new molecular well as large molecules for commercial use.
entities in 2021, 31 were small molecules, accounting for 62%
of the new drug pipeline.

11
‘Global Small Molecule Contract Development and Manufacturing Organization (CDMO) Growth Opportunities’, September 2021 published by Frost & Sullivan
12
News Article published in January 2022 by Regulatory Affairs Professionals Society’s Regulatory Focus™
13
Frost & Sullivan - Global Biologics Contract Development and Manufacturing Organizations Growth Opportunities, June 2021 published by Frost & Sullivan
14
The International AIDS Vaccine Initiative is a global not-for-profit, public-private partnership

Metamorphosis | 151
Company’s strategy for the former is to strengthen its position growth of 19% over FY21. Syngene’s CRO business (Dedicated
as an integrated CMC solutions provider, while that for the R&D Centers and Discovery Services) delivered strong growth
latter is to continue to secure regulatory approvals for small momentum on the back of successful renewal of strategic
molecule manufacturing. The Company also aspires to drive partnerships, expansion and extension in scope of client
biologics development and manufacturing. engagement and addition of new clients. Within Discovery
Services, growth was driven by integrated projects, accelerating
Research Services (Syngene) - FY22 Highlights: capacity utilization and addition of new capabilities. In the
Contract extensions for Dedicated R&D Centers: During FY22, small molecule development and manufacturing business, we
the strategic collaboration contract with Amgen Inc. was strengthened our technical capabilities, which helped us build
extended till 2026. client confidence on scale up manufacturing for clinical supplies
and win repeat orders. In Biologics, client contracts won during
Client wins of Discovery Services division and successes in the year will support capacity utilization ramp up.
Development Services: The Discovery Services division witnessed
excellent client demand, particularly within the emerging The consolidated financial performance of the Company for
biopharmaceutical segment. Within the Development Services FY22 is available in its Annual Report.
segment, in addition to supporting client successes and entering
into a collaboration for COVID vaccines with IAVI14, Syngene Research Services (Syngene) - Outlook:
set a new industry benchmark by completing the development Syngene is well positioned to capture market opportunities,
phase of a generic drug for lymphoma, within an aggressive given its strong foundation and excellent track record, further
timeline of five months. The Company expanded its research strengthened by expanded capacities. For Discovery Services,
facilities in Bengaluru and Hyderabad as well as a new injectable lab capacity expansion is expected to continue, with increasing
fill-finish facility under its Development Services vertical, which is focus on integrated drug discovery, enabling the organization
currently under qualification and validation. Phase-III expansion to move up the value chain. The extension and expansion of
of the research facility in Hyderabad has been completed. collaboration with BMS and Amgen gives good visibility to
growth and stability in business. We have built our capabilities in
Getting future ready in Manufacturing Services Division: The manufacturing and process development, which we believe can
Company expanded the capacity of its USFDA and EMA- help play a pivotal role in the development and manufacturing
compliant mammalian manufacturing facility in Bengaluru of complex large molecule new drugs. We expect to build
while the Mangalore API manufacturing facility is on track to out further capacity in the next 2 to 3 years, with focus on
get regulatory approvals in FY24. In Biologics manufacturing, improving capacity utilization. Overall, the growth momentum
the Company expanded its client base to include IAVI and in business is expected to continue.
Dyadic International, Inc.
Operational Performance
Research Services (Syngene) - FY22 Financial Performance: An overview of the Company’s financial performance is given
Syngene generated revenues of `26,042 million, contributing on the next page, which forms part of the MDA.
to 32% of Biocon’s overall revenues and reflecting a healthy

152 | Annual Report 2022

 Biocon Limited

Financial Performance - An Overview

Consolidated Balance Sheet
The following table highlights the Consolidated Balance Sheet as on March 31, 2022 (FY22) and March 31, 2021 (FY21):

All Figures in ` Million

Particulars Mar-22 Mar-21 Change
ASSETS
Non-current assets
Tangible and intangible assets 1,06,794 91,641 17%
Investment in associates and a joint venture 80 1,795 (96)%
Financial assets 5,715 8,302 (31)%
Assets for current tax (net) 3,135 2,648 18%
Deferred tax assets (net) 2,933 3,077 (5)%
Other non-current assets 1,631 1,756 (7)%
1,20,288 1,09,219 10%
Current Assets
Inventories 22,982 18,666 23%
Financial assets 56,463 53,178 6%
Other current assets 4,207 3,638 16%
Assets held for sale - 522 100%
83,652 76,004 10%
Total 2,03,940 1,85,223 10%

EQUITY AND LIABILITIES

Equity
Equity share capital 6,003 6,000 0%
Other equity 78,322 70,269 11%
Non-controlling interests 10,375 8,807 18%
94,700 85,076 11%
Non-current liabilities
Borrowings 39,985 29,616 35%
Other financial Liabilities 17,384 16,792 4%
Provisions and other non-current liabilities 13,591 11,638 17%
70,960 58,046 22%
Current liabilities
Borrowings 9,055 13,970 (35)%
Other financial Liabilities 20,052 19,299 4%
Income tax liability (net) 1,618 1,524 6%
Provisions and other current liabilities 7,555 6,904 9%
Liabilities directly associated with assets held for sale 0 404 100%
38,280 42,101 (9)%
Total 2,03,940 1,85,223 10%

Metamorphosis | 153
Tangible and intangible assets Other equity
Tangible and intangible assets grew 17%, primarily due to Other equity majorly comprises of securities premium, treasury
additions in the tangible assets including the Biosimilars’ facility shares, retained earnings, and further reserves. The Company’s total
in India and Malaysia, Generics’ immunosuppressant facility other equity increased by 11% in FY22 due to profit accumulation.
in Vishakhapatnam, India, Research Services in Hyderabad,
and other manufacturing facilities as well as capitalization of Non-controlling interests
product development expenses, partly offset by depreciation The Profit attributable to minority shareholders increased
and amortization for the year. by 18% in FY22, attributable to the current year’s profits
accumulation.
Investment in associates and a joint venture
To enable Bicara to raise further funding for R&D plans, the Borrowings (includes non-current and current)
shareholder arrangements (voting rights & Board composition) Total Borrowings stood at ` 49,040 million as at March 31,
of Bicara were amended, which resulted in loss of control over 2022. During the year ended March 31, 2022, the Biosimilars
the subsidiary. Accordingly, the Group fair valued its investment business refinanced USD 100 million in Biocon Biologics UK
in Bicara on the date of loss of control, which resulted in a limited and repaid the loan in Biocon Sdn. Bhd., Malaysia.
dilution gain of `1,597 million in FY21.
Other Non-current financial liabilities
Further during FY22, Bicara has raised additional fund from
Other non-current financial liabilities primarily include ` 15,033
third parties which resulted in our stake dilution in associate.
million of gross liability on written put options to enable
Accordingly, we recorded ` 299 million in Other Income towards
investors of our subsidiary, Biocon Biologics Limited, to exit over
stake dilution.
a period of time. Further, it also includes non-current lease and
derivative liabilities.
Bicara is currently in R&D phase and has incurred losses
during the year ended March 31, 2022 of ` 2,564 million. We
Provisions and other non-current liabilities
accounted our share of loss of ` 2,107 million which resulted in
decrease in investment in associates. Provisions and other non-current liabilities primarily include
deferred revenue, deferred tax liability and provision for gratuity
The above investment of ` 80 million as at March 31, 2022, and compensated absences.
represents investment in joint venture Neo Biocon FZ LLC.
Assets and liabilities held for sale
Non-current financial assets Pursuant to the approval of the Board of Directors on May 14,
Non-current financial assets primarily include investment 2020, the Group was in process of disposing off its interest in
in Equillium, our partner for the Novels business, derivative the JV entity. Accordingly, in the previous year share of profit
instruments and investments for more than 12 months in inter / (loss) from the JV and results of its related business were
corporate deposits with financial institutions. disclosed as discontinuing operations.

The decrease in this component is due to reduction in fair value During the year ended March 31, 2022, Biocon decided to
of investment in Equillium by ` 658 million and reclassification commercialize its generic formulation products which are being
of investment in deposits partly offset by increase in derivative developed for the US, EU and other markets in the UAE through
assets. its wholly owned subsidiary. Biocon is taking steps to register
the formulation manufacturing site and seeking approval of
marketing authorization under its own brand. Accordingly, it
was concluded that the UAE operations no longer meets the
definition of a discontinued operations and the same has been
reclassified as continued operation in the financial statements.

154 | Annual Report 2022

 Biocon Limited

Working capital (current assets less current liabilities)

Below table represents working capital as at March 31, 2022 and March 31, 2021:

All Figures in ` Million

Particulars Mar-22 Mar-21 Change
Inventories 22,982 18,666 23%
Trade receivables 20,582 15,033 37%
Cash and Cash (incl. current other bank balance, investments) 29,652 32,241 -8%
Other financial assets 6,400 5,904 8%
Other current assets 4,207 4,160 1%
Total current assets 83,823 76,004 10%

Borrowings 9,055 13,970 -35%

Trade payables 16,085 15,139 6%
Other financial liabilities 3,967 4,160 -5%
Provisions and other current liabilities 7,555 7,308 3%
Income tax liabilities 1,618 1,524 6%
Total current liabilities 38,280 42,101 -9%

Working capital 45,543 33,903 34%

As at March 31, 2022, working capital stood at ` 45,543 million, up by 34% compared to FY21 due to increase in inventories
primarily on account of new product launches, trade receivables on account of higher sales and decrease in short term borrowing
(incl. current maturities of long term loan) on account of refinancing/ repayment.

Consolidated Statement of Profit and Loss

The following table highlights key components of the statement of Profit and Loss for the fiscal years ended March 31, 2022 (FY22)
and March 31, 2021 (FY21):

All Figures in ` Million

Particulars FY22 FY21 Change
Total revenue 83,967 73,976 14%
Expenses
Cost of materials consumed 27,184 22,437 21%
Employee benefit expense 17,098 15,657 9%
Finance costs 676 577 17%
Depreciation and amortisation expense 8,142 7,151 14%
Research and development expenses, net of recovery from co-
5,950 5,531
development partners 8%
Other expenses 11,906 11,278 6%
Total expenses 70,956 62,631 13%
Share of profit / (loss) of joint venture and associate (net) (2,069) (794) 161%
Profit before tax and exceptional item 10,942 10,551 4%
Exceptional items, net (1,111) 126 (982)%
Profit before tax 9,831 10,677 (8)%
Tax expense 2,407 2,120 14%
Tax on exceptional item (292) 95 (407)%
Profit for the year 7,716 8,462 (9)%
Non-controlling interest 1,316 989 33%
Non-controlling interest on exceptional item (84) 68 (224)%
Profit attributable to shareholders of the Company 6,484 7,405 (12)%
Other comprehensive income attributable to shareholders 967 1,582 (39)%
Total comprehensive income attributable to shareholders of the
7,451 8,987
Company -17%

Metamorphosis | 155
Revenue which resulted in a dilution gain of `1,597 million. Further
During the year under review, total revenue grew by 14% on during FY22, we recorded ` 299 million in Other Income
a consolidated basis from `73,976 million to `83,967 million. towards stake dilution in associate.

Our Biosimilar revenues have increased by 24% over last year Material and Power costs
to ` 34,643 million, primarily due to strong sales growth from Material and power costs includes raw materials, packing
our partnered program, driven by commercialization of world’s materials and change in inventories. In FY22, material costs, as
first interchangeable biosimilar, insulin Glargine in the US, a percentage of revenue from operations ex-licensing, increased
new product launches, gradual improvement in market share by ~2% compared to FY21 due to increase in solvents and
of Trastuzumab in the U.S., strong performance in emerging natural gas pricing.
markets and improved performance in other developed markets.
Staff costs
The Generics revenues were `23,409 million in FY22 compared
Staff costs comprise of the following items:
to `23,627 million in FY21. The generics segment reported a
muted performance against the backdrop of Covid-19 related • Salaries, wages, allowances, and bonuses
challenges, increasing competition, and pricing pressure in • Contributions to Provident Fund
some of our commercialized formulation products. This was
partially offset by launch of its generic formulation, Everolimus. • Contributions to gratuity
• Amortisation of employees’ stock compensation expenses and
The Research services grew 19% to `26,042 million. The growth welfare expenses (including employee insurance schemes)
was driven by strong performance across Discovery Services,
Dedicated Centres, Development and Manufacturing Services. These expenses increased by 9% in FY22, driven by business
growth, increased headcount, and stock compensation costs.
The Total Income composition for FY22 and FY21 is detailed below:
Research and development expenses
Particulars FY22 FY21 The net R&D expenditure for FY22 increased by 8% to
`5,950 million (`5,531 million in FY21). Net R&D spend was at
(` million) (%) (` million) (%)
11% (~11% in FY21) of revenue ex-Syngene. We capitalized
Generics 23,409 29 23,627 32 ` 1,155 million, taking gross R&D spend to `7,105 million for
the year compared to `6,270 million in FY21. Gross R&D spend
Biosimilars 34,643 42 28,002 38
was at 13% (~13% in FY21) of revenue ex-Syngene. The gross
Novel Biologics 510 1 105 - R&D spend increased due to higher spend in the biosimilar
development programs, ANDA programs.
Research Services 26,042 32 21,843 30

Inter-segment (2,764) (3) (2,146) (3) Interest and Finance charges

Revenue from 81,840 71,431 The finance cost for FY22 at `676 Million (`577 Million in
operations FY21) primarily comprises of interest cost on borrowings for
Biosimilars and Research Services businesses.
Other income 2,127 3 2,545 3
Depreciation and Amortisation
Total income 83,967 73,976
During this fiscal, depreciation and amortization increased 14%
Other income to `8,142 million from `7,151 million in FY21, primarily due to
commissioning of new facilities and capitalisation of intangibles
Other income comprises of interest on surplus funds and gains
in Biologics and Research Services segments.
due to foreign exchange movement.
Tax expenses
In FY21, to enable Bicara to raise further funding for R&D plans,
the existing shareholder arrangements (voting rights & Board The effective tax rate (ETR) for the year before the exceptional
composition) of Bicara were amended, which resulted in loss item was 22% (20% in FY21). ETR is up 2%, since FY21
of control over the subsidiary. Accordingly, the Company fair included a credit for reversal of tax provision for earlier years.
valued its investment in Bicara on the date of loss of control,

156 | Annual Report 2022

 Biocon Limited

Exceptional items (net) Key financial ratios

The Exceptional items during the year comprised the following:
Particulars FY22 FY21
a) Biocon Biologics Limited (BBL) and Goldman Sachs India AIF Debtors turnover 3.98 4.73
Scheme – 1 (Goldman Sachs) entered into an amendment Inventory turnover 1.93 2.02
agreement which resulted in modification in the terms
Interest coverage ratio 13.84 12.90
of the compound financial instrument. This resulted
Current ratio 2.19 1.81
into a charge of ` 274 million which is presented under
Debt equity ratio 0.76 0.77
Exceptional items in the consolidated financial statements.
Operating profit margin (%)# 16% 16%
Consequential tax impact of `49 million is included within
Net profit margin (%)* 9% 10%
tax expense during the year ended March 31, 2022.
Return on net worth^ 9% 10%
# Operating margin is defined as Profit before taxes and interest
b) The Ministry of Commerce and Industry, Government of
* Net Profit before exceptional income and tax thereon
India issued a Gazette notification number 29/2015-2020
^ Net Profit before exceptional income and tax thereon as a percentage of equity
dated 23 September 2021 on Service Exports from India
Scheme (SEIS) for services rendered in financial year 2019
Risks, Threats, and Concerns
- 2020 with the total entitlement capped at Rs. 50 million
per exporter for the period. The Group during the year Organizations can create sustainable value for its stakeholders
ended March 31, 2022 reversed the SEIS claim accruals by effectively managing the risks they are willing to take, be it
of ` 427 million for the financial year 2019-2020 and at a strategic, financial or operational. Therefore, identifying,
the same has been presented under exceptional items in analyzing and promptly managing risks is critical from a Corporate
the consolidated financial statements for the year ended Governance standpoint to enable an organization to attain its
March 31, 2022. Consequential tax impact of `75 million strategic objectives and protect the interest of its stakeholders.
is included within tax expense for the year ended March
31, 2022. Further, related minority interest of `77 million A risk is a potential event or non-event, the occurrence or
is included within non-controlling interest in consolidated non-occurrence of which can adversely affect the objectives
financial statements for the year ended March 31, 2022. or strategy of the Company or result in opportunities being
missed. Risk is measured in terms of likelihood of occurrence
c) BBL had obtained services of professional experts (like and potential impact if it materializes. Risks can be categorized
advisory, legal counsel, valuation experts etc.) towards as financial, operational, strategic, regulatory/statutory,
acquisition deals. These services were availed during reputational, geo-political, catastrophic/pandemic.
the financial year ended March 31, 2022 and hence, in
accordance with Ind AS 103 - Business Combinations, Amongst the risks discussed above, regulatory/statutory,
these have been recorded as expense amounting to operational, strategic, and financial are usually controllable,
` 410 million in the consolidated financial statements. while geo-political and catastrophic/pandemic (impacting
business continuity) risks are not usually within the control of
Given these are material and infrequent in nature, the
an organization.
Company has disclosed these expenses under the head
‘Exceptional items’ in the statement of profit and loss.
Consequential tax impact of ` 169 million is included Process
within tax expense in consolidated financial statements
Risk Assessment

Other comprehensive income Risk Mitigation

Other comprehensive income includes re-measurement gains/ Risk Monitoring and Reporting
losses on defined benefit plans, gains/losses on hedging
instruments designated as cash flow hedges and exchange Structure
differences on translation of foreign operations, gains/losses on Roles and Risk Management
Responsibilities Activity Calendar
the fair value of the investment in equity through Fair Value
through Other Comprehensive Income (FVOCI).

Metamorphosis | 157
Risk Management : An enterprise-wide risk evaluation and validation process is
Risk management is a structured, consistent, and continuous conducted regularly and reviewed by the Risk Management
process across the organization for identifying, assessing, Committee and the Board of Directors. The Governance,
deciding on responses to, and reporting on opportunities and Risk and Compliance (GRC) team coordinates and monitors
threats that may affect the achievement of its objectives. organization-wide risk management activities and reports the
progress to the Risk Management Committee on a quarterly
Risk management does not aim at eliminating the risks, as basis.
that would simultaneously eliminate all chances of rewards or
opportunities. Instead, constant efforts are made to analyze their Our Risk Management Process:
potential impact, assess the changes to the risk environment, The risk management process at Biocon involves the following
and define actions to mitigate their adverse impact. three steps:

At Biocon, we have implemented a risk management 1. Risk Identification and Assessment

framework that ensures timely identification, analysis, and
assessment of risks and potential consequences, formulation 2. Risk Mitigation
of specific mitigation strategies, and their seamless execution.
The framework recognizes that risks are highly interconnected 3. Risk Monitoring and Reporting
and interdependent. This evolved approach views risks within
a coordinated and strategic framework integrated throughout Our effective process ensures that these three steps are aligned
the organization. with regular operations, thereby, ensuring relevant and timely
reporting and action on all risks which the organization faces.
Our Risk Management Structure : The organization’s risks are identified, analyzed, and prioritized
Biocon Limited’s Board of Directors has direct oversight over from time to time. Once a risk is identified, there are four
the Company’s overall risk management framework. The Board different ways in which a risk can be handled – Treat, Terminate,
has formed a Risk Management Committee which reviews Transfer, Take. At Biocon, a responsive action plan is initiated
critical existing or emerging risks, monitors the adequacy of de- for treating or managing the key risks identified and restricting
risking strategies as well as the progress on implementing such them to a tolerable level.
strategies. The subsidiaries also have a structure and process
similar to that of the parent. The risk monitoring and reporting process aims to provide
assurance to the Management that risks have been adequately
Our Risk Management Structure identified, prioritized and critical risks are well managed. The
Board of Directors
• Reviews the risk management and internal control Risk Management Committee reviews the critical risks with
framework, key risks, and mitigation controls
respect to their gross exposure, mitigation action status, and
• Reviews and assesses the effectiveness of risk net exposure periodically.
management framework
Risk Management
• Recommends changes to the risk management
Committee
and/or associated frameworks, processes, and
practices Company Key Business Risks:
• Provides direction and ensures sustainable Biocon is committed to conducting business while adhering
implementation of the risk framework
Senior
• Reports the outcome of its periodic review of the risk
to all applicable statutory laws, government notifications and
Leadership Team
management process to the Board of Directors and regulations. Given the complex and highly regulated nature of
Risk Management Committee
the global pharmaceutical industry in which Biocon operates,
• Coordinates with the senior leadership team
and functional heads and assists in carrying out the Company can potentially be exposed to the risks inherent
Chief Risk risk identification, assessment, prioritization, to the industry such as product safety and quality issues,
Officer and mitigation
• Prepares consolidated risk reports and presents to intellectual property tangles, regulatory delays, etc. These risks
senior leadership/Risk Management Committee.
could lead to penalties, product recalls, brand/reputation loss,
• Directs and implements risk management initiatives and revenue loss, unless properly mitigated. In this context, it
Department/ pertaining to their team/ department
Functional Heads • Performs risk assessment on a regular basis, reviews is imperative to respond to risk with a holistic risk mitigation
of risk mitigation procedures etc.
framework that can help the organization maintain consistency
in product quality, patient and employee safety and long-term
sustainability.
The Risk Management Committee, which comprises of the
Chairperson, Managing Director and CEO and Independent Our established risk management framework addresses risks
Directors, meets once every quarter and invites senior business that are inherent to the pharma business and any others that
leaders, who are essential to the discussions, to these meetings. may impact our strategic goals.

158 | Annual Report 2022

 Biocon Limited

The following summary indicates some of our key risks and mitigation measures, other than for Syngene*, drawn from management
reviews and deliberations with Risk Management Committee:

# Risk Description Mitigation Actions in place

1 Regulatory Continuous compliance • Framework in place to continuously monitor the compliance and
Compliance Risk to GxP requirements will ensure anytime audit readiness
enable to obtain approvals • Regular shop floor visits by Quality/ operations leaders to understand
/ regulatory audit clearance on-ground issues and suggest practical solutions
and provide quality drugs to
• Regular training programmes to improve the overall quality
patients
environment
• Digitization of quality systems for improving product standards and
data integrity
2 Research and Meeting the planned • Comprehensive review by the leadership team of portfolio strategy
Development timelines and development and new products selection
Risk cost budget will ensure • Use of digital and innovative solutions to increase the efficiency of
timely launch and R&D operations and reduce development cost
commercial success of
• Internal alignment on execution amongst cross functional teams
differentiated drugs
• Continuous program monitoring to avoid potential delays
• Proactive interaction with regulators to secure timely inputs
3 Human Capital Retention of talent and skill • Continuous upskill and development of talent across levels
Risk development will ensure • Providing career path visibility and internal movement options
continuity of operations
• Succession planning efforts especially for critical roles
and professional growth of
people • Improving employee connect and morale through various employee
engagement initiatives
• Attracting the right talent by becoming an employer of choice
through aforesaid mentioned strategies
4 Commercial/ Right cost and pricing • Initiatives aimed at bringing in efficiencies and reducing the cost of
Pricing Risks strategy will improve production
affordable access • Focused partnership initiatives to establish presence in new markets
• Product differentiation and vertical integration to provide
commercial advantage with customers
5 Supply Chain Having multi source vendors • Focused alternate vendor development to reduce dependence
Risks for critical materials will on any specific country or single source for procurement of key
provide supply continuity materials
assurance • Building strategic inventory to address any unanticipated disruption
in supply
6 Information and Having appropriate cyber • Established Security Operations Center to proactively and effectively
Cyber Security and information security manage security requirements
Risk controls will reduce • Robust incident monitoring and response measures
probability of loss of critical
• Continuous effort to increase employee awareness on information
information or any external
and cyber security
cyber attack
• Periodic vulnerability assessments and implementation of actions to
address gaps

Metamorphosis | 159
 # Risk Description Mitigation Actions in place
7 Safety Risks Adherence to all safety • Framework to ensure continuous compliance of environment,
norms will reduce health and safety (EHS) requirements
probability of any critical • Focus on workforce awareness as well as enhanced safety
safety incidents which might infrastructure
impact business continuity
• Internal / external reviews or audit of EHS activities to identify any
gaps and remediate them
8 Statutory Continuous compliance • Process to independently track and ensure compliance of various
Compliance and to the law of the land will statutory requirements
Governance prevent penalties and loss • Timely identification of compliance changes and assessment of their
Risks of reputation applicability
• Technical support is sought as appropriate, including from external
experts
9 Project/ Capital Meeting the planned • Strong technical support during planning and execution stages
Investment Risk project milestones and • Alignment with cross functional teams on overall plan
capex budget will ensure
• Cost tracking at a detailed level to identify cost escalation in early
timely launch and seamless
stages and address them appropriately
supplies

*Syngene’s Risks are available in its Annual Report (https://www.syngeneintl.com/investors/financial-information/)

Note on COVID-19 related risks Internal Controls

While the impact of the pandemic risk in FY22 was lower in A robust, comprehensive internal control system is a prerequisite
comparison with the year before, the industry continued to for an organization to function ethically, commensurate with its
witness risks related to workforce safety, supply chain and abilities and objectives. We have established a strong internal
logistics bottlenecks, delays in the development programs control system for the Company, which comprises of policies,
including regulatory reviews or approvals, delays in completion guidelines, and procedures adopted to ensure operational
of capex projects etc. Key mitigation actions were put in effectiveness and efficiency, compliance with laws and
place to support business continuity plans and continued safe regulations, asset safeguarding and reliability of financial and
operations, including but not limited to: management reporting. The Company is staffed by experienced,
qualified professionals who play an important role in designing,
• Vaccination campaigns for workforce and their family implementing, maintaining, and monitoring our internal control
members systems.

• Other safety precautions such as continuous temperature An independent firm of Chartered Accountants carry out
monitoring, remote working options etc. periodic internal audits to provide reasonable assurance of
internal control effectiveness, and advises the Company on
• Inventory build up in case of any supply chain disruptions industry-wide best practices. The Audit Committee, consisting
of Independent Directors, reviews important issues raised by
• Virtual reviews by regulators
the internal and statutory auditors regularly and the status
of rectification measures to ensure that risks are mitigated
appropriately on a timely basis.

160 | Annual Report 2022

 Biocon Limited

Corporate Governance Report

I. Company’s philosophy on Code of Governance Biocon’s focus is not only to ensure compliance with the
Biocon Limited (“Biocon” or “the Company”) believes in requirements as stipulated under SEBI (Listing Obligations
implementation of good corporate practices, policies and & Disclosure Requirements) Regulations, 2015 (‘SEBI Listing
guidelines and always ensures adherence to regulatory Regulations’) regarding corporate governance, but is also
requirements. Our aim is to develop a culture of the best committed to sound corporate governance principles and
management practices and compliance with the law coupled practices, and constantly strives to adopt emerging best
with the highest standards of integrity, transparency, corporate governance practices being followed worldwide.
accountability and ethics in all business matters.
A report on compliance with corporate governance principles as
Commitment to adoption of good and effective corporate prescribed under Regulation 17 to 27 read with Schedule V of
governance practices in all the spheres of working, has always SEBI Listing Regulations, as applicable, is given below.
been an imperative factor in driving the Company’s decisions
and activities. Abidance with such governance practices has II. Board of Directors
given the Company immense value addition and competitive The corporate governance structure of the Company comprises
advantage. Our corporate governance framework comprises of the Board, as the apex decision making body and the Executive
a formal system of control and administration that helps the Leadership Team (ELT), which comprises experts in running and
management take prudent decisions whilst in the interest of managing the Company. The Board of Directors (‘the Board’)
the stakeholders, and at the same time enables the Company to
are elected by the shareholders to oversee the Company’s
utilise its resources in a systematic and effective manner.
overall functioning. The Board is responsible for providing
strategic guidance & supervision, overseeing the management
Sustainable performance and governance of the Company on behalf of
Growth
the shareholders and other stakeholders. The Board exercises
independent judgement and plays a vital role in the oversight
People Quality
Power First of the Company’s affairs. To sum up, the board’s key purpose is
to ensure the Company’s prosperity by collectively directing the
Our Key company’s affairs, while meeting the appropriate interests of its
Priorities shareholders and relevant stakeholders.
Patient Access to
Centricity all The Company’s day to day affairs are managed by the ELT, under the
overall supervision of the Board. The Board is committed to representing
Focus on the long-term interests of the stakeholders and in providing effective
Science
governance over the Company’s affairs and exercising reasonable
business judgement on the affairs of the Company.
While implementing corporate practices, the Company focuses
on areas such as transparency, accountability and integrity Composition of the Board
to nurture a good corporate governance culture that fosters Our Board represents an appropriate mix of Executive Directors
employee morale and satisfaction, stakeholder acceptance (‘EDs’), Non-Executive Non-Independent Directors (‘NEDs’)
and regulatory recognition. The Company’s policy on various and Independent Directors (‘ID’), which is compliant with
corporate governance aspects can be accessed from our website the Companies Act, 2013 (‘the Act’) and the SEBI Listing
at, https://www.biocon.com/investor-relations/corporate- Regulations and is also aligned with the best practices of
governance/governance-documents-policies/. Corporate Governance.

56% 22% 78% 22% 78% 22%

22%

Executive Non-Executive
Executive Women Men Promoter Non-Promoter

Metamorphosis | 161
The Board periodically evaluates the need for change in its Director. Further, none of our IDs serve as Non-Independent
composition and size. As on March 31, 2022, the Board Director of any company on the board of which any of our Non-
comprised of 9 (nine) members, consisting of 2 (two) Executive Independent Director of the Company is an ID.
Directors, 2 (two) Non-Executive Non-Independent Directors,
and 5 (five) Independent Directors. Out of the total members, 2 The Company has 2 (two) Executive Directors and 2 (two)
(two) are women directors. Non- Executive, Non-Independent Directors. The other 5 (five)
Directors of the Company are Independent Directors. Mary
Effective November 1, 2021, Eric Vivek Mazumdar was Harney is an Independent Woman Director on the Board of
appointed as an Additional Director categorised as Non- the Company. The details of the directorship(s) of the members
Executive Director of the Company. Further, his appointment as on the Board are as mentioned in the following table titled
a Non-Executive Director is also being proposed at the ensuing ‘Composition of the Board’.
Annual General Meeting (AGM) for the approval of Members.
Based on the declarations received from the Independent Directors,
To ensure enhanced corporate governance practices and be the Board of Directors have confirmed that they meet the criteria of
complied with the provisions of SEBI Listing Regulations, the Board independence as mentioned under Section 149 of the Companies
at its meeting held on January 23, 2020 had separated the roles of Act, 2013 and Regulation 16(1)(b) of the SEBI Listing Regulations
the Chairperson and Managing Director, by appointing Siddharth and that they are independent of the management and also they
Mittal as the Managing Director & CEO and Kiran Mazumdar-Shaw have confirmed that they are not aware of any circumstance or
as the Executive Chairperson of the Company, effective from April situation which exists or may be reasonably anticipated that could
1, 2020. During the year, the requirement to mandatory separate impair or impact their ability to discharge their duties. Further,
the positions of Chairperson and Managing Director or CEO, has the Independent Directors have also submitted their declaration
been made voluntary by the SEBI. under compliance with the provision of Rule 6(3) of Companies
(Appointment and Qualification of Directors) Rules, 2014, which
The detailed profile of our Directors is available on our website mandated the inclusion of an Independent Director’s name in the
at https://www.biocon.com/investor-relations/corporate- data bank of the Indian Institute of Corporate Affairs (“IICA”) for
governance/board-of-directors/. a period of one year or five years or life time till they continue to
hold the office of an independent director. All the Independent
None of the Directors serve as a Director in more than 7 (seven) Directors are exempted from appearing the Online Proficiency Self-
listed companies. Further, none of the Director serves as an Assessment Test conducted by IICA.
ID in more than 7 (seven) listed companies or 3 (three) listed
companies in case he/she serves as an ED in any listed company. The statutory details of the directors, including the directorships
None of the Directors of the Company, are a member of more held by them in other listed companies and their committee
than 10 (ten) committees and chairperson of more than 5 (five) memberships/chairmanships in other public companies, are
committees, across all public companies in which he/she is a listed in the table below:
Name of the Category Directors Total Number of Directorships, Committee Name of Category of
Director Identification Chairpersonships and Memberships of Indian Indian Listed Directorship
Number Public Limited Companies, as on March 31, 2022 Entities
Including this
Directorships$ Committee Committee Listed Entity
Chairperson Memberships where person
ships^ is a Director
Executive Directors
Kiran Promoter & 00347229 9 1 1 Biocon Limited Executive
Mazumdar- Executive Chairperson
Shaw# Syngene Non-Executive
International Chairperson
Limited
Infosys Limited Independent,
Non-Executive
Narayana Non-Executive
Hrudayalaya Non-
Limited Independent
United Independent,
Breweries Non-Executive
Limited
Siddharth Executive 03230757 4 - 1 Biocon Limited Managing
Mittal Director and
CEO

162 | Annual Report 2022

 Biocon Limited

Name of the Category Directors Total Number of Directorships, Committee Name of Category of
Director Identification Chairpersonships and Memberships of Indian Indian Listed Directorship
Number Public Limited Companies, as on March 31, 2022 Entities
Including this
Directorships$ Committee Committee Listed Entity
Chairperson Memberships where person
ships^ is a Director
Non-Executive, Non-Independent Directors
Prof. Ravi Promoter & 00109213 1 - 1 Biocon Limited Non-Executive,
Rasendra Non-Executive Non-
Mazumdar## Independent
Eric Vivek Non-Executive 09381549 1 - - Biocon Limited Non-Executive,
Mazumdar* Non-
Independent
Independent Directors
Daniel Mark Independent 06599933 2 1 3 Biocon Limited Independent,
Bradbury Non-Executive
Mary Harney Independent 05321964 1 - - Biocon Limited Independent,
Non-Executive
Dr. Vijay Kumar Independent 07071727 2 - - Biocon Limited Independent,
Kuchroo Non-Executive
Syngene Independent,
International Non-Executive
Limited
Meleveetil Independent 02106990 8 3 7 Biocon Limited Independent,
Damodaran Non-Executive
InterGlobe Independent,
Aviation Non-Executive
Limited
Hero MotoCorp Independent,
Limited Non-Executive
Larsen & Independent,
Toubro Limited Non-Executive
Tech Mahindra Independent,
Limited Non-Executive
Bobby Kanubhai Independent 00019437 5 4 8 Biocon Limited Independent,
Parikh Non-Executive
Infosys Limited Independent,
Non-Executive
Indostar Capital Independent,
Finance Limited Non-Executive

Note: A. Board Membership Criteria and Selection Process

• $ Includes Additional Directorships and Directorship in The responsibility for identifying and evaluating a candidate for
Biocon Limited. the Board is discharged by the Nomination and Remuneration
Committee (“NRC”) formed under Section 178 of the
• ^ As required under Regulation 26(1)(b) of the SEBI Listing Companies Act, 2013. While selecting a candidate, the NRC
Regulations, Committees considered are Audit Committee reviews and evaluates the Board’s composition and diversity to
and Stakeholders Relationship Committee, including that ensure that the Board and its committees have the appropriate
of Biocon Limited. mix of skills, experience, independence and knowledge for
continued effectiveness. For the Board, diversity comprehends
• # Prof. Ravi Rasendra Mazumdar is the brother of Kiran plurality in perspective, experience, education, background,
Mazumdar-Shaw. ethnicity, nationality, age, gender and other personal attributes.
• ## Eric Vivek Mazumdar is the son of Prof. Ravi Rasendra These attributes may extend to professional experience,
Mazumdar. functional expertise, educational and professional background.

• * Eric Vivek Mazumdar was appointed as an Additional The Independent Directors annually provide a certificate
Director of the Company w.e.f. November 1, 2021. of Independence, in accordance with the applicable laws,

Metamorphosis | 163
which is taken on record by the Board. All Board members The Board reviews strategy and business plans, annual operating
are encouraged to meet and interact with the management. plans and capital expenditure budgets, investment and exposure
Board Members are invited to key meetings to provide strategic limits, compliance reports of all laws applicable to the Company,
guidance and advice. as well as steps taken by the Company to rectify instances of
non-compliances, if any. To enable the Board to discharge its
B. Board Procedure responsibilities effectively, the Chairperson provides an overview
The Board and committee meetings are pre-scheduled based of the overall performance of the Company at the meeting of
on the availability of the Director(s), and an annual calendar the Board of directors. The Board also reviews major legal issues,
of the meetings is circulated to them well in advance to minutes of meetings of various committees of the Board and
facilitate planning of their schedule and ensure participation in subsidiary companies, significant transactions and arrangements
the meetings. However, in case of urgent matters, subject to entered into by the subsidiary companies, approval of financial
regulatory conditions, the Board’s approval is taken by passing results and statements, transactions pertaining to purchase or
resolutions by circulation. The Board meets at least once in a disposal of properties, major accounting provisions and write-
quarter to review and approve the quarterly financial results/ offs, corporate restructuring, details of any joint ventures or
statements and other agenda items. The Committees of the collaboration agreements, material defaults, if any, in financial
Board usually meet prior on the same day of the Board meeting. obligations, fatal or serious accidents, any material effluent
The recommendations of the Committees are placed before the or pollution problems, transactions that involve substantial
Board for necessary approval/noting. There was no situation / payment towards goodwill, brand equity or intellectual property,
matter where the Board has not accepted recommendation of any issue that involves possible public product liability, claims
the Committee. of substantial nature and the information as required under
Regulation 17(7) read with Schedule II Part A of SEBI Listing
With a view to leverage technology, the Company has adopted Regulations, as amended.
a digital meeting(s) platform for its Board and Committee
meetings, which can be accessed through web version, iOS At the Board and Committee Meetings, apart from Board
and Android based application. The Board/Committee Agenda Members and the Company Secretary, the management team
and related notes are made available to the Directors, at least 7 are invited to present the Company’s performance in key areas
(seven) days in advance of the meetings, through this application such as the major business segments and their operations,
which meets high standards of security and integrity that is subsidiaries and key functions.
required for storage and transmission of Board/ Committee
related documents in electronic form. All material information The Company Secretary records Minutes of the proceedings
is incorporated in the agenda along with supporting documents of each Board and Committee meeting. Draft Minutes are
and relevant presentations. Where it is not practicable to attach circulated to Board /Committee Members within 15 (fifteen) days
any document to the agenda, the same is tabled at the meeting from the meeting for their comments. Directors communicate
with specific reference to this effect in the agenda. In special their comments (if any) in writing on the draft minutes within
and exceptional circumstances, additional or supplementary 7 (seven) days from the date of circulation. The Minutes are
item(s) on the agenda are permitted. entered in the Minute Books within 30 (thirty) days from the
conclusion of the Meeting and signed by the Chairperson. The

164 | Annual Report 2022

 Biocon Limited

copy of the signed Minutes, certified by the Company Secretary or in his absence by any Director authorised by the Board, are made
available to all the Directors.

The guidelines for Board and Committee Meetings facilitate an effective post meeting follow-up, review and reporting process
for decisions taken by the Board and Committees thereof. Important decisions taken at Board/Committee Meetings are promptly
communicated to the concerned departments/ divisions. Action Taken Report on decisions/Minutes of the previous meeting(s) is
placed at the succeeding meeting of the Board/Committee for noting.

C. Number of Board meetings, attendance of the Directors at meetings of the Board and the Annual General Meeting
(“AGM”)
During the financial year under review, 5 (five) Board Meetings were held virtually on the following dates:

S. Date of Board Meeting Total Number of directors Attendance

No. associated as on the date Number of Directors % of Attendance
of meeting attended
1. April 28, 2021 9 8 88.89
2. July 22, 2021 9 9 100.00
3. October 21, 2021 8 8 100.00
4. January 20, 2022 9 9 100.00
5. February 27, 2022 9 7 77.78

The Board met at least once in every calendar quarter and the gap between two meetings did not exceed 120 (one hundred and
twenty) days.

In view of continuing COVID-19 pandemic, the 43rd AGM of the Company was held on Friday, July 23, 2021 through video
conferencing (‘VC’) or other audio-visual means (OAVM), in compliance with the applicable provisions of the Companies Act, 2013,
General circular No. 14/2020 dated April 8, 2020, Circular No.17/2020 dated April 13, 2020, Circular No. 20/2020 dated May 5,
2020 and Circular No. 02/2021 dated January 13, 2021 issued by Ministry of Corporate Affairs (‘MCA’). The deemed venue for the
meeting was registered office of the Company at 20th KM, Hosur Road, Bengaluru, 560 100, Karnataka, India.

The attendance of the Directors at these meetings is mentioned in the table below:

Name of the Director No. of Board No. of Board % of Attendance Attendance at the
Meetings which Meetings Attended 43rd AGM
director was
entitled to attend
Kiran Mazumdar-Shaw 5 5 100.00 Yes
John Shaw* 2 2 100.00 Yes
Siddharth Mittal 5 5 100.00 Yes
Prof. Ravi Rasendra Mazumdar 5 5 100.00 Yes
Daniel Mark Bradbury 5 4 80.00 No
Mary Harney 5 4 100.00 No
Dr. Vijay Kumar Kuchroo 5 4 100.00 Yes
Meleveetil Damodaran 5 5 100.00 Yes
Bobby Kanubhai Parikh 5 5 100.00 Yes
Eric Vivek Mazumdar** 2 2 100.00 NA

*John Shaw had stepped down from the Board as a Non-Executive Director with effect from the conclusion of the Company’s 43rd
Annual General Meeting which was held on July 23, 2021.
**Eric Vivek Mazumdar was appointed as an Additional Director of the Company with effect from November 1, 2021.

Metamorphosis | 165
D. Shareholding of Non-Executive Directors Directors at periodic intervals on the performance and future
None of the Non-Executive Directors, including Independent strategy of their respective business units. The Independent
Directors, hold any equity shares of the Company except the Directors were also regularly apprised of all regulatory and policy
below: changes including their roles, rights and responsibilities. Among
other matters, presentations on internal control over financial
reporting, operational control over financial reporting were also
Name of Director Category No. of %
made to the Board Members during the year. The Directors were
Shares holding
encouraged to interact with members of Senior Management as
Prof. Ravi Rasendra Non-Executive 48,15,084 0.40 part of the induction programme.
Mazumdar Director
Eric Vivek Non-Executive 21,68,000 0.18 The Company’s familiarization policy and the details of programs
Mazumdar Director attended, and hours spent by Independent Directors during the
financial year 2021-22 is available on the Company’s website
E. Meeting of the Independent Directors at https://www.biocon.com/investor-relations/corporate-
Pursuant to Schedule IV of the Companies Act, 2013 governance/governance-documents-policies/.
and Regulation 25(3) of the SEBI Listing Regulations, the
Independent Directors met twice on July 16, 2021 and January G. 
Board evaluation, Key expertise and attributes of
17, 2022 without the presence of Non-Independent Directors the Board of Directors
and Members of the management.
Board Evaluation
They had discussed and reviewed the below -
One of the key functions of the Board is to monitor and
review the Board evaluation framework. The Nomination and
• The performance of Non-Independent Directors and the
Remuneration Committee in consultation with the Board, had
Board as a whole;
laid down the evaluation criteria for the performance of the
• The performance of the Chairperson of the Company after Chairperson, Board, Committees of the Board, and executive/
taking into account the views of the Executive and Non- non-executive/ independent directors through peer evaluation,
Executive Directors; excluding the director being evaluated. Further, the Board
had agreed to undertake the Board Evaluation by an external
• The quality, quantity and timeliness of flow of information agency, at least once in 3 (three) financial years, pursuant to
between the Company management and the Board, that is which for the FY 2020-21, Egon Zehnder, a leadership advisory
necessary for the Board to perform their duties effectively firm on board matters, had conducted the Board Evaluation.
and reasonably.
However, for the current FY 2021-22, the Board had undertaken
The evaluation of Independent Directors is done by the entire this exercise through self-evaluation questionnaires. The
Board of Directors of the Company which includes: evaluation process focused on the below aspects –

• Performance of such directors; and • Board dynamics and other aspects towards Board
effectiveness
• Fulfilment of the Independence criteria and their • Board Composition, Quality and Culture
Independence from the management. • Board Meeting & Procedures
• Execution & performance of specific duties
F. 
Details of familiarization program imparted to
Directors • Board & Management relations
The familiarisation programme for our Directors is customised • Succession Planning
to suit their individual interests and area of expertise. • Committee effectiveness
• Evaluation of Chairperson, Executive & Non-Executive
During the financial year under review, the Independent Directors Directors.
were apprised at frequent intervals on the industry trends, an
overview of the Company’s business model, strategy, products, The evaluation report was also discussed at the meeting of the
market, risk management, group structure and its subsidiaries, and Board of Directors and Committees. In order to further uphold
its operations by the senior management team. Further, various the effectiveness of the Board’s governance, an overview of
business unit heads made presentations to the Independent the suggestions as drawn from the evaluation exercise was

166 | Annual Report 2022

 Biocon Limited

deliberated and recommended for implementation in due

course of time, by the Board.
Research &
Innovation
Key expertise and attributes of the Board of Directors Technology General
& digital
Management
In compliance with the SEBI Listing Regulations, the Board perspective
has identified the following skills/ expertise/ competencies
fundamental for the effective functioning of the Company
Board Expertise
which are taken into consideration by the Nomination and Global Finance & Risk
Remuneration Committee while recommending appointment healthcare Management

of any candidate to the Board of the Company.

Corporate
Scientific
Governance &
Knowledge
compliance

Based on the above-mentioned skill matrix, the skills which are currently available with the Board have been mapped below:

Board of Directors Research & General Finance Corporate Global Technology Scientific
Innovation Management & Risk Governance healthcare & digital knowledge
Management and perspective
Compliance
Kiran Mazumdar-Shaw • • • • • •
Siddharth Mittal • • • • • •
Prof. Ravi Rasendra Mazumdar • • •
Eric Vivek Mazumdar • • •
Mary Harney • • •
Daniel Mark Bradbury • • • • •
Dr. Vijay Kumar Kuchroo • • •
Meleveetil Damodaran • • •
Bobby Kanubhai Parikh • • •

H. Role of Company Secretary authority. Each committee is directed by its charter which outlines
their scope, roles, responsibilities and powers. All the decisions
The Company Secretary is the Compliance Officer and plays
and recommendations of the committee are placed before
a key role in ensuring that effective board procedures are
the Board for its approval. The Company’s guidelines relating
followed and reviewed periodically. The Company Secretary is
to Board Meetings are also applicable to committee meetings
primarily responsible to ensure compliance with the provisions
as far as is practicable. Each committee has the authority to
of Companies Act, 2013 and provisions of all other laws
engage outside experts, advisors and counsels to the extent it
applicable to the Company. The Company Secretary ensures
considers appropriate to assist in its functions. Senior officers/
that all relevant information, details and documents are made
function heads are invited to present various details called for
available to the Board of Directors for effective decision-making
by the committee at its meeting. The Company Secretary of the
at the meetings. The Company Secretary is also the interface
Company acts as the Secretary to all Committees of the Board
between the management and regulatory authorities for
as detailed below:
governance matters. All the Directors of the Company have
access to the advice and services of the Company Secretary.
A. Audit Committee
III. Committees of the Board
B. Risk Management Committee
The Board has constituted various committees to focus on
specific areas and to make informed decisions within their C. Stakeholders Relationship Committee

Metamorphosis | 167
D. Corporate Social Responsibility and ESG Committee The terms of reference and responsibilities of the committee
include review of the quarterly, half-yearly and annual financial
E. Nomination and Remuneration Committee statements before submission to Board, review of compliance
of internal control system, approval or any subsequent
A. Audit Committee modification of transactions with related parties, oversight
I. Brief description of terms of reference of the financial reporting process to ensure transparency,
sufficiency, fairness and credibility of financial statements,
The Company has constituted an Audit Committee (“AC”) recommendation for appointment, remuneration and terms of
which acts as a link between the management, external and appointment of auditors of the Company etc. The Committee
internal auditors and the Board of Directors of the Company. also reviews the adequacy and effectiveness of internal audit
The committee’s role flows directly from the board’s oversight function and control systems. The Committee meets at least
function and delegation to various committees. It acts as once in a calendar quarter.
an oversight body for transparent, effective anti-fraud and
risk management mechanisms, and efficient Internal Audit During the financial year under review, 6 (six) meetings of the
and External Audit functions financial reporting. The Audit Audit Committee were held. The dates of the Meetings were
Committee considers the matters which are specifically referred April 28, 2021, July 22, 2021, September 24, 2021, October
to it by the Board of Directors besides considering the mandatory 21, 2021, January 20, 2022 and March 17, 2022.
requirements of the Regulation 18 read with Part C of Schedule
II of SEBI Listing Regulations and provisions of Section 177 of II. The composition of the Committee and attendance
the Act. The brief description of the terms of reference of the details:
Committee is given below: The composition of the Committee and attendance details of
the members for the year ended March 31, 2022 are given
below:

S. Name of Members Category Position No. of Meetings which No. of % of

No. director was entitled to Meeting Attendance
Attend attended
1 Bobby Kanubhai Parikh ID Chairperson 6 6 100.00
2 Daniel Mark Bradbury ID Member 6 5 83.33
3 Meleveetil Damodaran ID Member 6 6 100.00

ID - Independent Director

The members of the Committee possess sound knowledge of operational, strategic, regulatory, statutory, reputational,
accounts, finance, audit, governance and legal matters. political, catastrophic and others) faced by the Company.
The Committee has overall responsibility for monitoring and
Senior staff from the Finance & Accounts Department and approving the enterprise risk management framework and is
representatives of the Statutory and Internal Auditors attend all capable of effectively addressing and monitoring these risks.
Audit Committee meetings. The Company Secretary acts as the The Committee also approves and oversees a Company-wide
Secretary to the Committee. risk management framework, capable of effectively addressing
these risks.
The Committee, as a good governance practice, also meets
external auditors, internal auditors and the Chief Financial The terms of reference of the RMC are in line with the provisions
Officer of the Company separately, to understand their of the Act and Regulation 21 of the SEBI Listing Regulations.
independent opinion on the performance of the Company.
During the financial year under review, four (4) Meetings were
B. Risk Management Committee held. The dates of the Meetings were April 22, 2021, July 16,
I. Brief description of terms of reference 2021, October 14, 2021 and January 20, 2022.

The Company has constituted a Risk Management Committee

(“RMC”), which assist the Board of Directors in timely
identification, assessment and mitigation of risks (i.e. financial,

168 | Annual Report 2022

 Biocon Limited

II. The composition of the Committee and attendance details:

The composition of the Committee and attendance details of the members for the year ended March 31, 2022, are given below:

S. Name of Members Category Position No. of Meetings which No. of % of

No. director was entitled Meeting Attendance
to attend attended
1 Bobby Kanubhai Parikh ID Chairperson 4 4 100.00
2 Daniel Mark Bradbury ID Member 4 4 100.00
3 Meleveetil Damodaran ID Member 4 4 100.00
4 Kiran Mazumdar-Shaw ED Member 4 4 100.00
5 Siddharth Mittal ED Member 4 4 100.00
6 Eric Vivek Mazumdar* NED Member 1 1 100.00

ID - Independent Director; ED - Executive Director; NED- Non-Executive Director

* Eric Vivek Mazumdar was inducted as a member with effect from November 1, 2021.

C. Stakeholders Relationship Committee receipt of dividends, annual reports and such other grievances
as may be raised by the security holders from time to time.
I. Brief Description of the terms of reference
The Committee also reviews:
The Company has constituted a Stakeholders Relationship
Committee (“SRC”) pursuant to the provisions of Regulation 20 • Measures taken to ensure the effective exercise of voting
of the SEBI Listing Regulations and Section 178 of the Companies rights by the shareholders/ investors;
Act, 2013. During the year, for meeting Environmental, Social • Measures and initiatives taken to reduce the quantum
and Governance (ESG) objectives of the Company, the oversight of unclaimed dividends and ensure timely receipt of
of implementation of ESG related activities were aligned dividend/ annual report/ notices and other information by
within the scope of the Committee. Subsequently, the said Shareholders;
ESG function has been realigned within the Corporate Social • Service standards adopted by the Company in respect of
Responsibility Committee of the Company. services rendered by our Registrars and Share Transfer Agent.

The SRC is primarily responsible to redress the grievances During the financial year under review, four (4) Meetings were
of shareholders/ investors/ other security holders including held. The dates of the Meetings were April 22, 2021, July 16,
complaints related to transfer or transmission of shares, non- 2021, October 14, 2021 and January 17, 2022.

II. The composition of the Committee and attendance details:

The composition of the Committee and attendance details of the members for the year ended March 31, 2022 are given below:

S. Name of Members Category Position No. of Meetings No. of % of

No. which director was Meeting Attendance
entitled to attend attended
1 Daniel Mark Bradbury ID Chairperson 4 4 100.00
2 Bobby Kanubhai Parikh ID Member 4 4 100.00
3 Prof. Ravi Rasendra NED Member 4 4 100.00
Mazumdar
4 Mary Harney* ID Member 1 1 100.00
5 Siddharth Mittal* ED Member NA NA NA
6 Eric Vivek Mazumdar* NED Member 1 1 100.00

ID - Independent Director; ED - Executive Director; NED - Non-Executive Director

* Eric Vivek Mazumdar & Mary Harney were inducted as members with effect from November 1, 2021 and Siddharth Mittal with
effect from January 20, 2022. Further, the aforesaid Directors ceased to be the members of the Committee with effect from March
28, 2022.

Metamorphosis | 169
Mayank Verma, Company Secretary of the Company is D. Corporate Social Responsibility and ESG Committee
the Secretary to the Committee. Further, he also acts as the
Compliance Officer of the Company. I. Brief description of terms of reference
The Company is driven by a vision to make a difference in global
The table below encompasses the details of the complaints
healthcare through improved access to high quality and life-
received and disposed off during the year ended March 31, 2022.
saving bio therapeutics by making them affordable for patients
across the world. The Company’s contributions and initiatives
Particulars Complaints towards social welfare and environment sustainability have
Remaining unsolved at the beginning of - been integral to its business.
the year
Received during the year 119 During the year, the Board has delegated oversight over ESG related
Disposed off during the year 118 activities to Corporate Social Responsibility (CSR) Committee
and renamed it as “Corporate Social Responsibility and ESG
Number of complaints not solved to the -
Committee” (hereinafter referred to as “the Committee”). The
satisfaction of shareholders
CSR & ESG activities of the Company shall continuously evolve for
Remaining unsolved at the end of the year 1* a long-term sustainability of business, society and environment
at large. The CSR & ESG shall further align and integrate social
*The complaint has been resolved in April, 2022. wellbeing, economic growth and environmental sustainability with
The quarterly statement on investor complaints received and the Company’s core values, operations and growth.
disposed of are filed with Stock Exchanges within 21 (twenty-one)
days from the end of each quarter and the statement filed is also The terms of reference of the CSR & ESG Committee are in line
placed before the subsequent meeting of Board of Directors. with the provisions of Section 135 of the Companies Act, 2013,
which inter alia includes the following:
Further, with regards to the unpaid or unclaimed dividend, the
company has sent out reminders to the shareholders to claim their • Identifying the areas of CSR activities, its implementation
unpaid or unclaimed dividends before the dividend amounts are and monitoring;
transferred to Investor Education and Protection Fund (‘IEPF’).
• Formulate and amend the CSR Policy, from time to time;
In terms of the SEBI Circular dated November 3, 2021, the
Company had sent out communications to holders of physical • Adoption of Annual Action Plan or modification thereof;
securities to furnish their PAN, KYC details and Nomination as
per the prescribed conditions embedded in the circular.
• Oversee Company’s ESG program, strategy, initiatives,
Additionally, as mandated by SEBI, the members of the Committee execution and disclosures. Reporting progress of various
reviewed and took note of the Internal Annual Audit Report and initiatives with respect to CSR & ESG.
observations along with action taken in this regard for the FY
2020-21 as submitted by the KFin Technologies Limited, Registrar During the financial year under review, the Committee met 2
and Share Transfer Agent (‘RTA’) of the Company. (two) time i.e. on April 22, 2021 and October 21, 2021.

II. The composition of the Committee and attendance details:

The composition of the Committee and attendance details of the members for the year ended March 31, 2022 are given below:

S. Name of Members Category Position No. of Meetings which No. of % of

No. director was entitled to Meeting Attendance
Attend attended
1 Mary Harney ID Chairperson 2 2 100.00
2 Dr. Vijay Kumar Kuchroo ID Member 2 2 100.00
3 Prof. Ravi Rasendra Mazumdar NED Member 2 2 100.00
4 Siddharth Mittal* ED Member NA NA NA
5 Eric Vivek Mazumdar* NED Member NA NA NA

ID - Independent Director; NED – Non-Executive Director.

* Siddharth Mittal and Eric Vivek Mazumdar were inducted as members of the Committee with effect from March 28, 2022.

170 | Annual Report 2022

 Biocon Limited

E. Nomination and Remuneration Committee The NRC also formulates the criteria for determining
qualifications, positive attributes and independence of a
I. Brief description of terms of reference Director. The Committee on a periodical basis, recommends to
the Board, policies relating to the remuneration of Directors,
The Company has a Nomination and Remuneration Committee Key Managerial Personnel and Senior Management. The Policy
(“NRC”) pursuant to the provisions of Regulation 19, read with on Director’s Appointment and Remuneration is available on
Part D of Schedule II of the SEBI Listing Regulations and Section our website at https://www.biocon.com/investor-relations/
178 of the Act. As per the Securities and Exchange Board of India corporate-governance/governance-documents-policies/.
(Share Based Employee Benefits and Sweat Equity) Regulations,
2021, the NRC of the Company acts as the Compensation The NRC has undertaken the exercise to evaluate the performance
Committee for administration of the ESOP plan. The NRC has of individual Directors. Feedback is sought by way of structured
been vested with the authority to recommend nominations questionnaires covering various aspects of the Board’s functioning
for Board membership, succession planning for the senior such as adequacy of the composition of the Board and its
management and the Board, develop and recommend policies committees, Board culture, execution & performance of specific
with respect to composition of the Board commensurate with duties, obligations and governances. Performance evaluation is
the size, nature of the business and operations of the Company, carried out based on the responses received from all Directors.
establish criteria for selection of Board Members with respect to
competencies, qualifications, experience, track record, integrity, The performance evaluation of Independent Directors is
devise appropriate succession plans and determine overall based on various criteria including experience and expertise,
compensation policies of the Company. independent judgement, ethics & values, adherence to the
corporate governance norms, interpersonal relationships,
The scope of the NRC also includes review of the market attendance and contribution at meetings, amongst others.
practices, decision on the remuneration to the Executive
Director(s) and laying down of performance parameters for the During the financial year under review, 4 (four) Meetings of the
Chairperson, Managing Director, the Executive Director(s), Key NRC were held. The dates of the Meetings were April 22, 2021,
Managerial Personnel and Senior Management. July 19, 2021, October 14, 2021 and January 17, 2022.

In addition to the above, the NRC’s role includes identifying

persons who may be appointed to a senior management position
in accordance with the criteria laid down, recommending to the
Board their appointment and removal.

II. The composition of the Committee and attendance details:

The composition of the Committee and attendance details of the members for the year ended March 31, 2022 are given below:

S. Name of Members Category Position No. of Meetings which No. of % of

No. director was entitled Meeting Attendance
to Attend attended
1 Mary Harney ID Chairperson 4 4 100.00
2 Dr. Vijay Kumar Kuchroo ID Member 4 4 100.00
3 Prof. Ravi Rasendra Mazumdar NED Member 4 4 100.00
4 Kiran Mazumdar-Shaw* ED Member 3 3 100.00
5 Daniel Bradbury* ID Member 1 1 100.00

ID - Independent Director; NED – Non-Executive Director; ED – Executive Director.

* Daniel Bradbury was inducted as a member with effect from November 1, 2021 and Kiran Mazumdar-Shaw had ceased to be a
member of this Committee with effect from November 1, 2021.

Metamorphosis | 171
III. Remuneration of Directors Officer and Managing Director of the Company for a period
effective from April 1, 2020, till the end of his current tenure
A. Remuneration Policy of appointment i.e. November 30, 2024. The remuneration
Your Company has a well-defined policy for remuneration of the includes fixed and variable salary, performance bonus,
Directors, Key Managerial Personnel and Senior Management. contribution to provident fund, superannuation, gratuity,
The policy of the Company is designed to create a high- perquisites and allowances, reimbursement of expenses, long
performance culture and enables the Company to attract, term rewards etc. as applicable to employees of the Company.
retain and motivate employees to achieve results. The policy
is available on the Company’s website at https://www.biocon. Subsequently, the shareholders at their 43rd AGM held on July
com/investor-relations/corporate-governance/governance- 23, 2021, have approved the increase in the limit of managerial
documents-policies/. remuneration payable to Siddharth Mittal, Managing Director
& CEO of the Company, which was in excess of 5% of the
The elements of remuneration to the Executive Directors include net profits of the Company for the financial year 2021-22 and
fixed and variable salary, performance bonus, contribution thereafter during his remaining tenure as the Managing Director
to provident fund, superannuation, gratuity, perquisites and of the Company. However, the total managerial remuneration
allowance, reimbursement of expenses, stock options etc., paid to the Executive Director(s) of the Company taken together
as applicable to employees of the Company. The Executive in any financial year have not exceeded the limit of 10% of net
Directors are employees of the Company and are subject to profit, and overall managerial remuneration paid to all directors
service conditions as per the Company policy, which is 3 (three) have not exceeded the overall limit of 11% of net profit of the
months’ notice period, or such period as mutually agreed Company as prescribed under Section 197 of the Act read with
upon. There is no provision for payment of severance fees rules made thereunder or other applicable provisions or any
to Non-Executive Directors. Independent Directors are paid statutory modifications thereof.
remuneration in the form of commission, apart from the sitting
fees and are not subject to any notice period and severance D. Criteria for Making Payment to Non-Executive Directors
fees. The Company’s Non-Executive Directors are leading
professionals with high level of expertise and rich experience in
B. Remuneration to Non - Executive Directors functional areas such as business strategy, financial governance,
corporate governance, research and innovation amongst others.
The shareholders at their 43rd Annual General Meeting, based The Company’s Non-Executive Directors have been shaping
on the recommendation of Nomination and Remuneration and steering the long-term strategy and make invaluable
Committee and Board of Directors, have approved the payment contributions towards Biocon group level strategy, monitoring
of remuneration to Non-Executive Directors, at an amount not of risk management and compliances.
exceeding 3% of the net profit of the Company effective from
the financial year 2021-22. The payment of such remuneration The Nomination and Remuneration Committee determines and
would be in addition to the sitting fees for attending Board/ recommends to the Board the compensation payable to all the
Committee meetings. Directors from time to time.

C. Remuneration to Executive Directors Based on the recommendation of Nomination and Remuneration

The shareholders, at their 42nd Annual General Meeting Committee and the Board of Directors, the shareholders
(“AGM”) held on July 24, 2020, have approved the re- at their 43rd AGM held on July 23, 2021 have approved to
appointment of Kiran Mazumdar-Shaw as an Executive Director, pay remuneration by way of commission or otherwise to the
designated as an Executive Chairperson for a period of 5 (five) Non-Executive Directors of the Company for the financial year
years effective April 1, 2020 on certain terms and conditions, 2021-22 and thereafter, at an amount not exceeding 3% of
including her remuneration subject to prescribed limit under the net profits of the Company computed in accordance with
the rules and regulations. The remuneration includes fixed and the provisions of Section 198 of the Companies Act, 2013
variable salary, performance bonus, contribution to provident and the said remuneration is in addition to sitting fees and
fund, superannuation, gratuity, perquisites and allowances, reimbursement of expenses for attending the meetings of
reimbursement of expenses, etc. as applicable to employees of the Board of Directors or Committees thereof and the said
the Company. remuneration is paid in such amount, proportion and manner
as may be decided by the Board of Directors of the Company
Further, at the same AGM, the shareholders have approved from time to time.
the appointment of Siddharth Mittal as the Chief Executive

172 | Annual Report 2022

 Biocon Limited

E. Service Contracts, Notice Period and Severance Fees F. 

All Pecuniary Relationship or Transactions of the
As on March 31, 2022, the Board comprised of 9 (nine) Non-Executive Directors
members, including 2 (two) Executive Directors and 7 (seven) There was no pecuniary relationship or transactions of the Non-
Non-Executive Directors, of which 5 (five) are Independent Executive Directors vis-a-vis the Company, which has potential
Directors. Kiran Mazumdar-Shaw, Executive Chairperson and conflict with the interest of the organisation at large.
Siddharth Mittal, Managing Director and CEO are employees of
the Company. Hence, the provision for payment of severance
fees to them shall be as per the terms mentioned in the
Company’s policy. However, other Directors are not subject to
any notice period and severance fees.

G. Remuneration to Directors
The details of remuneration of Directors for the year ended March 31, 2022 are given below:

Amount in ` Million
Directors Salary and Perquisites Others
Fixed Pay & Perquisites^ Retirement Commission Sitting Fees Total
Bonus Benefits
Kiran Mazumdar-Shaw 24.60 - - - - 24.60
Siddharth Mittal 42.20 - - - - 42.20
Prof. Ravi Rasendra Mazumdar - - - 4.20 1.12 5.32
Eric Vivek Mazumdar* - - - 1.99 0.53 2.52
Mary Harney - - - 4.68 0.82 5.51
Daniel Mark Bradbury - - - 5.10 1.57 6.67
Dr. Vijay Kumar Kuchroo - - - 4.05 0.75 4.80
Meleveetil Damodaran - - - 4.64 1.12 5.77
Bobby Kanubhai Parikh - - - 5.70 1.42 7.12
John Shaw** - - - 0.86 0.07 0.93
*Eric Vivek Mazumdar was appointed as an Additional Director w.e.f. November 1, 2021.
**John Shaw had stepped down from the Board as a Non-Executive Director with effect from the conclusion of the Company’s 43rd
Annual General Meeting which was held on July 23, 2021.

Note:
• ^Perquisites valued as per Income Tax Act, 1961. Excludes perquisite value on account of stock options exercised during the year.

• The remuneration to Executive Directors and Key Managerial Personnel does not include provisions made for gratuity and
compensated absences, as they are obtained on an actuarial basis for the Company as a whole.

During the financial year, no options under the Company’s ESOP plan were granted to any Executive/Non-Executive Directors of
the Company.

Metamorphosis | 173
IV. General Body Meetings
A. Annual General Meetings
The date, time, location of Annual General Meetings held during the last 3 (three) years and the special resolutions passed thereat
are as follows:

Year Date and Time Venue Special Resolution(s) Passed

2020-21 July 23, 2021 at *Held through video 1. Re-appointment of Mr. Bobby Kanubhai Parikh (DIN:
3.30 pm conferencing (‘VC’) or other 00019437) as an Independent Director of the Company.
audio-visual means (OAVM)
2. To approve revision in remuneration payable to Non-
Executive Directors by way of Commission.

3. To approve and increase in the limit of managerial

remuneration payable to Mr. Siddharth Mittal, Managing
Director in excess of 5% of the net profits of the Company.
2019-20 July 24, 2020 at *Held through video 1. Re-appointment of Ms. Kiran Mazumdar-Shaw (DIN:
3.30 pm conferencing (‘VC’) or other 00347229) as an Executive Director (designated as “an
audio-visual means (OAVM) Executive Chairperson”) of the Company.

2. To approve Biocon Restricted Stock Unit Long Term

Incentive Plan FY 2020-24 and grant of Restricted Stock
Units to eligible employees of the Company.

3. To approve grant of Restricted Stock Units to the

employees of present and future subsidiary company (ies)
under Biocon Restricted Stock Unit Long Term Incentive
Plan FY 2020-24.
2018-19 July 26, 2019 at Sathya Sai Samskruta 1. Re-appointment of Mr. Meleveetil Damodaran
3.30 pm Sadanam, No. 20, Hosur Main (DIN: 02106990) as an Independent Director for five years.
Road, CL Layout, Bengaluru
560 029 2. Variation in terms of Employees Stock Option Plan 2000
for grant of stock options to Ms. Christiane Hamacher,
CEO of Biocon Biologics India Limited.

*The AGM held on July 23, 2021 and July 24, 2020 were in compliance with the applicable provisions of the Companies Act, 2013,
General Circular No. 14/2020 dated April 8, 2020, Circular No.17/2020 dated April 13, 2020 and Circular No. 20/2020 dated May
5, 2020, issued by Ministry of Corporate Affairs (‘MCA’). The deemed venue for the meeting was registered office of the Company
at 20th KM, Hosur Road, Bengaluru, 560 100, Karnataka, India.

During the financial year under review, no Special Resolution was passed by the Company through Postal Ballot. None of the
businesses proposed to be transacted at the ensuing AGM require passing a Special Resolution through Postal Ballot.

B. Means of Communication
I. Quarterly financial results
The quarterly financial results are normally published in nationwide newspaper i.e. Financial Express and Vijayavani (Kannada
edition) and are also displayed on Company’s website www.biocon.com.

II. News Releases, Presentations

Official news/press releases are disclosed to both the Stock Exchanges i.e. NSE and BSE from time to time and are also displayed on
the website of the Company at www.biocon.com.

174 | Annual Report 2022

 Biocon Limited

III. Presentations to Institutional Investors/ Analysts V. 

NSE Electronic Application Processing System
Presentations are made to institutional investors and financial (NEAPS) and BSE Listing Centre
analysts on the quarterly financial results of the Company. These NEAPS and BSE Listing Centre are web-based applications
presentations are also published at the website of the Company designed by NSE and BSE, respectively, for the Corporates
and are disclosed to both the Stock Exchanges i.e. NSE and BSE. for smooth filing of information with the stock exchanges.
The schedule of meetings with institutional investors/financial All periodical compliance filings like shareholding pattern,
analysts are intimated to the Stock Exchanges and disclosed on corporate governance report, press releases, financial results
website of the Company at www.biocon.com. and other disclosures under SEBI Listing Regulations are
electronically filed on NEAPS and BSE Listing Centre.
IV. Website
The website of the Company i.e. www.biocon.com contains VI. SEBI Complaints Redress System (‘SCORES’)
a separate and dedicated “investors” section to serve Investor complaints are processed through a centralized web-
shareholders, by giving complete information pertaining to the based complaints redressal system. Centralised database of all
Board of Directors and its Committees, annual reports along with complaints received, online upload of the Action Taken Reports
supporting documents, financial results including subsidiaries (ATRs) by the Company, online viewing by investors of actions
financials, stock exchange disclosures and compliances such taken on the complaint and the current status are updated/
as shareholding pattern, corporate governance report and resolved electronically in the SEBI SCORES system.
press releases, Notice of the Board and General Meetings,
contact details of Registrar and share Transfer Agents, details V. General Shareholders Information
of unclaimed or unpaid dividend and Investor Education and A. Company Registration Details
Protection Fund (‘IEPF’) related information, amongst others.
The registered office of the Company is Biocon Limited, 20th
These are made available on the website in a user-friendly and
KM, Hosur Road, Electronic City, Bengaluru - 560 100 and it
downloadable form.
is registered in the State of Karnataka, India. The Corporate
Identity Number (‘CIN’) allotted to the Company by the Ministry
of Corporate Affairs (‘MCA’) is L24234KA1978PLC003417.

B. Annual General Meeting

Day, Date and Time Thursday, July 28, 2022 at 3:30 P.M. (IST)
Venue * 44th Annual General Meeting of the Company will be held at
20th KM, Hosur Road, Electronic City, Bangalore – 560 100,
Karnataka, India (Deemed venue)
Financial Year April 1, 2021 – March 31, 2022
Dividend Payment date Within 30 (thirty) days of declaration of dividend
Record Date (Dividend) July 01, 2022
Cut-off (e-voting) July 21, 2022
Financial Results Calendar for 2022-23 (tentative)
Q1- FY 23 July 27, 2022
Q2- FY 23 October 20, 2022
Q3- FY 23 January 24, 2023
Q4- FY 23 April 27, 2023
Listed on Stock Exchanges National Stock Exchange of India Limited (‘NSE’)
Exchange Plaza, Bandra-Kurla Complex, Bandra (E),
Mumbai – 400 051
BSE Limited (‘BSE’)
PJ Towers, Dalal Street,
Mumbai - 400 001
Stock Code/Symbol NSE – BIOCON
BSE - 532523
International Securities Identification Number (“ISIN”) INE 376G01013
Payment of Annual listing fees to Stock Exchanges Paid

Metamorphosis | 175
* In terms of the MCA Circular No. 14/2020 dated April 8, 2020, Circular No.17/2020 dated April 13, 2020 and Circular No.
20/2020 dated May 05, 2020, the 44th AGM of the Company shall be held through video conferencing (VC) or other audio visual
means (OAVM). Hence, Members can attend and participate in the AGM through VC/OAVM only. The detailed procedure for
participating in the meeting through VC/OAVM is annexed to the AGM notice and available at the website of the Company at
www.biocon.com.

I. Market price data during 2021-22

The monthly high/low closing prices and volume of shares of the Company from April 1, 2021 to March 31, 2022 are given below:

Month BSE NSE

High Price Low Price Volume of High Price Low Price Volume of
Equity Shares Equity Shares
Apr-21 424.10 378.00 4,042,626 424.40 378.20 84,840,355
May-21 393.70 370.15 2,592,921 393.65 370.15 55,544,400
Jun-21 420.25 382.85 3,537,472 420.25 382.85 60,320,960
Jul-21 414.30 376.95 3,226,466 414.40 376.70 59,979,772
Aug-21 392.35 327.75 2,145,556 392.45 327.55 42,858,605
Sep-21 398.60 350.00 3,062,262 394.15 350.05 58,722,361
Oct-21 370.40 314.90 4,027,520 370.60 314.80 55,033,772
Nov-21 378.00 342.75 8,666,082 377.60 342.50 53,408,750
Dec-21 387.80 343.10 2,729,977 387.90 343.05 71,401,931
Jan-22 382.45 347.10 3,216,556 382.50 347.00 58,285,375
Feb-22 410.50 347.10 3,078,047 410.70 347.00 66,067,524
Mar-22 353.40 319.00 3,138,802 353.45 319.10 79,269,906

II. Performance in comparison with broad based indices Biocon & BSE Sensex share price movement from April 01,
The chart below depicts the performance of the Company’s 2021 to March 31, 2022
share price in comparison to broad-based indices, such as 500
BSE Sensex and NSE Nifty. The Biocon Management cautions 450
that the stock movement shown in the graph below should 400
not be considered indicative of potential future stock price 350
performance. 300
250
Biocon & Nifty share price movement from April 01, 2021 200
to March 31, 2022 150
100
500
1

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Share Price

Sensex Biocon
300

200
III. Share transfer system
100
The Company has Stakeholders Relationship Committee to
0 review and resolve the complaints by shareholders which may
arise from time to time and the status of such complaints or
1

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requests is placed before the Board. The Company has complied

Se

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Nifty Biocon NSE with the requirements as specified in Regulation 40 of SEBI

Listing Regulations for effecting transfer of securities of the
Company.

176 | Annual Report 2022

 Biocon Limited

On receipt of proper documentation, the Company registers transposition of securities held in physical or dematerialised
transfers of securities in the name of the transferee(s) and form shall be effected only in dematerialised form. Transfers
issue certificates or receipts or advices, as applicable, of such of equity shares in electronic form are effected through the
transfers, within a period of 15 (fifteen) days from the date of depositories with no involvement of the Company. Members
such receipt of request for transfer, subject to documents being holding shares in physical form are requested to consider
valid and complete in all respects. converting their holdings to dematerialized form.

In terms of Regulation 40(9) of the SEBI Listing Regulations, IV. Dematerialization of shares and liquidity
the Company obtains an annual compliance certificate, from a As on March 31, 2022, 99.77% of the equity shares were in
Company Secretary in Practice with respect to due compliance electronic form. Trading in equity shares of the Company is
of share and security transfer formalities by the Company and permitted only in dematerialized form. The Company’s equity
the copy of the compliance certificate is submitted to the Stock shares are actively traded on both National Stock Exchange of
Exchanges. India Limited (NSE) and BSE Limited (BSE).

SEBI, effective from April 1, 2019, barred physical transfer of Further, as mandated by the Securities and Exchange Board of
shares of the listed companies and mandated transfers only India (“SEBI”), existing members of the Company, who hold
in dematerialised form. However, shareholders are not barred securities in physical form and intend to transfer their securities,
from holding shares in physical form. SEBI vide its notification can do so only in dematerialised form. Hence, shareholders
dated January 24, 2022 further notified that transmission or who hold shares in physical form are requested to dematerialise
these shares to ensure such shares are freely transferable.
V. Distribution of shareholding (category wise) as on March 31, 2022 is as under:

S. Category No. of Shares % to Equity

No
1 Promoters (Indian & Foreign) 728,024,176 60.64
2 Foreign Institutional Investor & FPI 187,494,014 15.62
3 Mutual Funds, Banks, IFIs 42,564,674 3.54
4 NRIs & Foreign Nationals 9,940,103 0.83
5 Corporate Bodies 12,252,020 1.02
6 Trusts 25,983,892 2.16
7 Indian Public & Others 194,341,121 16.19
Total 1,200,600,000 100.00

16%
Promoters (Indian & Foreign)
2%
1% Foreign Institutional Investor & FPI
1% Mutual Funds, Banks, IFIs
3%
NRIs & Foreign Nationals
Corporate Bodies
Trusts
16%
Indian Public & Others

61%

Metamorphosis | 177
VI. Distribution of shareholding as on March 31, 2022:

Sl. No Category (Amount) No. of Holders % To Holders Amount (`) % To Equity

1 1 - 5,000 3,32,303 95.51 18,92,13,865.00 3.15
2 5,001 - 10,000 8,346 2.40 5,92,58,425.00 0.99
3 10,001 - 20,000 3,705 1.06 5,20,86,070.00 0.87
4 20,001 - 30,000 1,216 0.35 3,09,99,775.00 0.52
5 30,001 - 40,000 442 0.13 1,54,78,345.00 0.26
6 40,001 - 50,000 341 0.10 1,56,25,775.00 0.26
7 50,001 - 1,00,000 641 0.18 4,51,93,655.00 0.75
8 1,00,001 and above 917 0.26 5,59,51,44,090.00 93.20
TOTAL: 3,47,911 100.00 6,00,30,00,000.00 100.00

VII. Outstanding ADRs/GDRs/Warrants or any convertible instruments, conversion date and likely impact on equity.
The Company has not issued any ADRs/GDRs/Warrants or any convertible instruments.

VIII. Commodity price risk or foreign exchange risk and hedging activities
The input pricing risk is managed through appropriate long-term rate contracts and constant evaluation of alternate support
sources for key raw materials. The Company has an approved Foreign Exchange Risk Management Policy and accordingly, during
the financial year ended March 31, 2022, the Company managed foreign exchange risk and hedged these to the extent considered
necessary. The details of foreign currency exposure and hedging are disclosed in Notes to Standalone Financial Statements.

IX. Plant locations

1 2 3 4
20th KM, Hosur Road, Biocon Park, Plot No. 2, 3, 4 & Plot 213-215, IDA Phase - Plot No. 2, J.N. Pharma City,
Electronics City, Bengaluru, 5, Bommasandra- Jigani Link II, Pashamylaram, Medak IDA, Parvada, Vizag, Andhra
Karnataka - 560 100, India Road, Bengaluru, Karnataka - District, 502 307, Andhra Pradesh – 531 021, India
560 099, India Pradesh, India

X. Address for correspondence

Corporate Governance & Compliance, Investor Grievances Financial Disclosure and Information
Redressal Mr. Indranil Sen
Mr. Mayank Verma Chief Financial Officer
Company Secretary, Compliance Officer & Nodal Officer Tel: 91 80 - 2808 2808
Tel: 91 80-2808 2038 E-mail id: [email protected]
E-mail id: [email protected]
Media & Corporate Communications Corporate Communications
Ms. Seema Shah Ahuja Mr. Calvin Printer
Senior Vice-President & Global Head Vice President
Corporate Communications & Corporate Brand Corporate Communications
Biocon Group Tel: 91 80- 2808 2808
Tel: 91 80- 2808 2808 E-mail id: [email protected]
E-mail id: [email protected]
Investor Relations (Institutional Investors & Research Registrar and Share Transfer Agents (‘RTA’)
Analysts) KFin Technologies Limited
Ms. Aishwarya Sitharam (Unit: Biocon Limited)
Head - Investor Relations Plot 31-32, Selenium, Tower B, Gachibowli, Financial District,
Tel: 91 80 2808 2040 Nanakramgud, Hyderabad – 500 032
E-mail id: [email protected] E-mail id: [email protected]

178 | Annual Report 2022

 Biocon Limited

XI. Credit Ratings V. Compliance with mandatory and discretionary

During the year under review, CRISIL vide its letter dated March requirements
9, 2022, has placed its ‘CRISIL AA+’ rating on the long-term The Company has complied with all mandatory requirements
bank facilities of the Company on ‘Watch with Developing prescribed by SEBI Listing Regulations and the Company has also
Implications’. The rating on the short-term bank facilities has complied with below mentioned discretionary requirements as
been reaffirmed at ‘CRISIL A1+’. Further, ICRA Limited vide its stated under Part E of Schedule II to the SEBI Listing Regulations,
letter dated March 10, 2022 has placed its ‘ICRA AA+’ and ‘ICRA as under:
A1+’ ratings on the long term and short-term banking facilities
of the Company on ‘Watch with Developing Implications’. • Modified opinion(s) in audit report: During the financial
year under review, there is no audit qualification in the
C. Other Disclosures Company’s financial statements. The Company continues
I. Materially significant related party transactions to adopt best practices to ensure regime of unqualified
financial statements.
During the financial year under review, no materially significant
transactions or arrangements were entered into between the • Reporting of Internal Auditors: Internal Auditors report
Company and its promoters, management, Directors or their directly to the Audit Committee.
relatives, subsidiaries, etc. that may have potential conflict
with the interests of the Company at large. The Company has VI. Policy for determining material subsidiary
formulated a policy on dealing with Related Party Transactions, The Company has formulated a policy for determining Material
which specifies the manner of entering into Related Party subsidiaries as defined under the SEBI Listing Regulations.
Transactions. This policy has also been posted on the website This policy is also published on the website of the Company
of the Company at https://www.biocon.com/investor-relations/ at https://www.biocon.com/investor-relations/corporate-
corporate-governance/governance-documents-policies/. governance/governance-documents-policies/.

II. Details of Non-compliance VII. Policy for determining Related Party transactions
During the last 3 (three) years, there were no instances of non- The Company has formulated a policy on materiality of related
compliances by the Company related to capital markets and party transactions and on dealings with such transactions. This
no penalty or strictures were imposed on the Company by the policy has also been published on the website of the Company
Stock Exchanges or SEBI or any statutory authorities. Further, at https://www.biocon.com/investor-relations/corporate-
the securities of the Company were not suspended from trading governance/governance-documents-policies/.
at any time during the year.
VIII. Details of utilization of funds raised through preferential
III. Compliance with corporate governance requirements allotment or qualified institutions placement as specified
The Company has complied with the requirements of corporate under Regulation 32 (7A)
governance specified in Regulation 17 to 27 and clause (b) to The Company has not raised any funds through preferential
(i) of sub-regulation (2) of Regulation 46 of the SEBI Listing allotment or qualified institutions placement as specified under
Regulations. Regulation 32 (7A) during the financial year 2021-22.

IV. Vigil Mechanism IX. Total fees for all services paid by the Company and
The vigil mechanism as envisaged in the Companies Act, its subsidiaries, on a consolidated basis, to the statutory
2013 and SEBI Listing Regulations is implemented through auditors of the Company
the Company’s Whistle Blower Policy to adequately safeguard The details of payment made to them on consolidated basis
against victimisation of persons who use such mechanism. are available under Note 28 to the Financial Statements of this
During the year, no personnel was denied access to the Audit report.
Committee of the Company. The address of the Chairperson
of the Audit Committee has been given in the policy for the X. Certificate from Company Secretary in Practice
employees, Directors, vendors, suppliers or other stakeholders As required under Regulation 34(3) read with Clause 10(i), Part
associated with the Company to report any matter of concern. C of Schedule V of the SEBI Listing Regulations, the Company
Vigil mechanism of the Company is available on the website has received a Certificate from Mr. Pradeep Kulkarni, Company
of the Company at https://www.biocon.com/investor-relations/ Secretary in Practice, Partner of M/s. V Sreedharan and
corporate-governance/governance-documents-policies/. Associates, certifying that none of our directors on the Board
of the Company have been debarred or disqualified from being

Metamorphosis | 179
appointed or to continue as directors of Company by the SEBI XVII. CEO and CFO certification
or Ministry of Corporate Affairs or any such statutory authority.
As required by Regulation 17(8) read with Schedule II Part B of
This document is annexed to this report.
the SEBI Listing Regulations, the Chief Executive Officer and the
Chief Financial Officer of the Company have furnished to the
XI. Disclosures in relation to the Sexual Harassment
Board, the requisite compliance certificate for the financial year
of Women at Workplace (Prevention, Prohibition and
ended March 31, 2022.
Redressal) Act, 2013
The disclosure regarding the complaints of sexual harassment XVIII. Certificate for compliance with Corporate
are given in the Board’s Report. Governance
A certificate from the statutory auditors confirming compliance
XII. Disclosure by listed entity and its subsidiaries of ‘Loans
with conditions of Corporate Governance is annexed to this
and advances in the nature of loans to firms/ companies in
Report.
which directors are interested by name and amount’
There were no loans and advances provided to firms/companies XIX. Secretarial Audit
in which directors are interested.
The secretarial audit report of the Company for the year ended
March 31, 2022, issued by Mr. Pradeep Kulkarni, Partner of M/s.
XIII. Disclosures with respect to demat suspense account/
V. Sreedharan & Associates, Practicing Company Secretaries
unclaimed suspense account
forms part of the Board’s Report as Annexure 4.
The Company does not have any securities in the demat
suspense account/unclaimed suspense account. As on March 31, 2022, none of the subsidiaries of the Company
except Biocon Biologics Limited (BBL) qualified to be material
XIV. Code of Conduct unlisted subsidiaries. Further, pursuant to the provisions of the
The Code of Conduct (‘the Code’) for Board Members and Regulation 24A of SEBI Listing Regulations, the secretarial audit
senior management personnel as adopted by the Board, is report of BBL forms part of the Boards’ Report as Annexure 4A.
a comprehensive Code applicable to Directors and senior
management personnel. The Code lays down in detail, the XX. Agreement on compensation of profit sharing in
standards of business conduct, ethics and strict governance norms connection with dealings in securities of the Company
for the Board and senior management personnel. A copy of the During the financial year under review, no employee including
Code is available on the website of the Company at https://www. Key Managerial Personnel or Director or Promoter of the
biocon.com/investor-relations/corporate-governance/governance- Company had entered into any agreement, either for themselves
documents-policies/ . The Code has been circulated to Directors or on behalf of any other person, with any shareholder or any
and senior management personnel and its compliance is affirmed other third party with regard to compensation or profit sharing
by them annually. A declaration signed by the Chief Executive in connection with dealings in securities of the Company.
Officer to this effect is annexed with this Report.
XXI. Declaration on Code of Conduct
XV. Code of Conduct for Prevention of Insider Trading
Biocon is committed to conducting its business in accordance
The Company has formulated a comprehensive Code of with the applicable laws, rules and regulations and with the
Conduct for Prevention of Insider Trading for its designated highest standards of business ethics. The Company has adopted
persons, in compliance with Securities and Exchange Board a “Code of Ethics and Business Conduct” which is applicable to
of India (Prohibition of Insider Trading) Regulations, 2015, as all Directors, officers and employees.
amended from time to time. The Directors, officers, designated
persons and other connected persons of the Company are I hereby certify that the Board Members and senior management
governed by the Code. The Code is also posted on the website personnel of the Company have affirmed compliance with the
of the Company at https://www.biocon.com/investor-relations/ Code of Ethics and Business conduct for the financial year
corporate-governance/governance-documents-policies/. 2021-22.

XVI. Disclosure by Senior Management Personnel For Biocon Limited

The senior management of your Company have made
disclosures to the Board confirming that there are no material,
financial and commercial transactions where they have personal Sd/-
interest that may have a potential conflict of interest with the Date: April 28, 2022 Siddharth Mittal
Company at large. Place: Bengaluru Managing Director and CEO

180 | Annual Report 2022

 Biocon Limited

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015)

To,
The Members of
BIOCON LIMITED
20th K.M. Hosur Road,
Electronic City, Bengaluru - 560100

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of BIOCON LIMITED,
having CIN L24234KA1978PLC003417 and having registered office at 20th K.M. Hosur Road, Electronic City, Bengaluru - 560100
(hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in
accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, we
hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on March
31, 2022 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and
Exchange Board of India (SEBI) and Ministry of Corporate Affairs (MCA).

Details of Directors:

S. Name of Director DIN Date of appointment in Company

No.
1. Ms. Kiran Mazumdar-Shaw 00347229 01/04/2010
2. Mr. Eric Vivek Mazumdar 09381549 01/11/2021
3. Mr. Bobby Kanubhai Parikh 00019437 27/07/2018
4. Mr. Ravi Rasendra Mazumdar 00109213 08/08/2000
5. Mr. Meleveetil Damodaran 02106990 26/04/2016
6 Mr. Siddharth Mittal 03230757 01/12/2019
7. Ms. Mary Harney 05321964 26/04/2012
8. Mr. Daniel Mark Bradbury 06599933 25/04/2013
9. Mr. Vijay Kumar Kuchroo 07071727 22/01/2015

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance as to the
future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.

For V Sreedharan and Associates

Sd/-
(Pradeep B Kulkarni)
Partner
Place: Bengaluru FCS: 7260; CP No.7835
Date: April 28, 2022 UDIN Number: F007260D000226237

Metamorphosis | 181
INDEPENDENT AUDITORS’ CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS
UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

TO, “ICAI”), in so far as applicable for the purpose of this

The Members of Biocon Limited certificate. The Guidance Note requires that we comply
with the ethical requirements of the Code of Ethics issued
1. This certificate is issued in accordance with the terms of our
by the ICAI.
engagement letter dated 10 August 2021 and addendum
to the engagement letter dated 18 April 2022.
7. We have complied with the relevant applicable
requirements of the Standard on Quality Control (SQC) 1,
2. We have examined the compliance of conditions
Quality Control for Firms that Perform Audits and Reviews
of Corporate Governance by Biocon Limited (“the
of Historical Financial Information, and Other Assurance
Company”), for the year ended 31 March 2022, as
and Related Services Engagements.
stipulated in regulations 17 to 27, clauses (b) to (i) of
regulation 46(2) and paragraphs C, D and E of Schedule
Opinion
V of the Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 8. In our opinion and to the best of our information and
2015 as amended from time to time (“Listing Regulations”) according to the explanations given to us, we certify
pursuant to the Listing Agreement of the Company with that the Company has complied with the conditions
Stock Exchanges. of Corporate Governance as stipulated in the above-
mentioned Listing Regulations.
Management’s Responsibility
9. We state that such compliance is neither an assurance as
3. The compliance of conditions of Corporate Governance as
to the future viability of the Company nor the efficiency or
stipulated under the listing regulations is the responsibility
effectiveness with which the management has conducted
of the Company’s Management including the preparation
the affairs of the Company.
and maintenance of all the relevant records and documents.
This responsibility includes the design, implementation Restriction on use
and maintenance of internal control and procedures to
10. The certificate is addressed and provided to the Members
ensure the compliance with the conditions of Corporate
of the Company solely for the purpose of enabling the
Governance stipulated in the Listing Regulations.
Company to comply with the requirement of the Listing
Auditors’ Responsibility Regulations and should not be used by any other person
or for any other purpose. Accordingly, we do not accept
4. Our examination was limited to procedures and
or assume any liability or any duty of care for any other
implementation thereof, adopted by the Company for
purpose or to any other person to whom this certificate is
ensuring the compliance of the conditions of the Corporate
shown or into whose hands it may come without our prior
Governance. It is neither an audit nor an expression of
consent in writing.
opinion on the financial statements of the Company.
for B S R & Co. LLP
5. Pursuant to the requirements of the Listing Regulations,
Chartered Accountants
it is our responsibility to provide a reasonable assurance
Firm Registration Number: 101248W/ W-100022
whether the Company has complied with the conditions of
Corporate Governance as stipulated in Listing Regulations
for the year ended 31 March 2022. sd/-
Sampad Guha Thakurta
6. We conducted our examination of the above corporate Partner
governance compliance by the Company in accordance Membership Number: 060573
with the Guidance Note on Reports or Certificates for Unique Document Identification Number (UDIN):
Special Purposes (Revised 2016) and Guidance Note on 22060573AIAMAP7120
Certification of Corporate Governance both issued by Place: Bengaluru
the Institute of the Chartered Accountants of India (the Date: 28 April 2022

182 | Annual Report 2022

 Biocon Limited

Independent Auditor Report

To the Members of Biocon Limited

Report on the Audit of the Standalone Financial Statements

Opinion
We have audited the standalone financial statements of Biocon Limited (the “Company”) and its employee welfare trusts, which
comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other
comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then
ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other
explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March
2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our
responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Taxation
The key audit matters How the matter was addressed in our audit
The Company is subject to complexities with respect to various Our audit procedures in relation to Taxation include the
tax positions on matters such as: following:

- deductibility of transactions • Tested the design of key internal financial controls and
operating effectiveness of the relevant key controls around
- availability of tax incentives and exemptions, the tax computation and tax matters;

- cross border transfer pricing arrangements etc. • We obtained an understanding of the key uncertain tax
positions based on list of ongoing litigations and tax
Judgment is required in assessing the range of possible computation for the current year;
outcomes for some of these tax matters. These judgments
could change over time as each of the matter progresses • We analysed select key correspondences with the tax
depending on experience on actual assessment proceedings by authorities to identify any additional uncertain tax
tax authorities and other judicial precedents. positions;

The Company makes an assessment to determine the outcome

of these uncertain tax positions and decides to make an accrual
or consider it to be a possible contingent liability.

Metamorphosis | 183
Taxation
The key audit matters How the matter was addressed in our audit
Where the amount of tax liabilities are uncertain, the Company • We analysed the Company’s judgment regarding the
recognizes accruals which reflect its best estimate of the eventual resolution of matters with various tax authorities.
outcome based on the facts known. Accordingly, we focused In this regard, we understood how the Company has
on this area. considered past experience, where available, with the tax
authorities;
For further information refer to:
• We also considered external legal opinions and
- Significant accounting policies which includes General consultations made by the Company for key uncertain tax
accounting principles, Key accounting judgements, positions during current and past periods; and
estimates and assumptions - Note 2(m)
• We used our own tax specialists’ expertise to assess key
- financial disclosures set out in Note 33 for Tax expense assumptions made by the Company.
and Note 34 for contingent liabilities.

in the standalone financial statements for the year ended

March 31, 2022.

Revenue and receivables

The key audit matter How the matter was addressed in our audit
Revenue from sale of goods is recognised when a promise Our audit procedures in relation to revenue recognition includes
in a customer contract (performance obligation) has been the following:
satisfied by transferring control over the promised goods to
the customer. • Assessed the appropriateness of the Group’s revenue
recognition accounting policies and assessed compliance
Control is usually transferred upon shipment, delivery to certain
with the policies in terms of applicable accounting
named location, or upon receipt of goods by the customer, in
standards.
accordance with the delivery and acceptance terms agreed
with the customers and other terms generally recognised
under internationally accepted commercial arrangements. • Tested the design and operating effectiveness of the Group’s
The amount of revenue to be recognised is based on the controls around revenue recognition.
consideration expected to be received in exchange for goods,
excluding trade discounts, volume discounts, sales returns • Performed substantive testing (including year-end cutoff
and any taxes or duties collected on behalf of the government testing) by selecting samples of revenue transactions
which are levied on sales such as sales tax, value added tax, recorded during the year and verifying the underlying
goods and services tax etc., where applicable. documents, which includes sales invoices/contracts and
shipping documents.
Revenue is one of the key performance indicators of the
Group and there could be a risk that revenue is recognized in
• Assessing journal entries posted to revenue to identify
the incorrect period or before the control has been transferred
to the customer. unusual items not already covered by our audit testing

Further, the Company has significant trade receivables at year • Evaluated management’s assessment of the impact on
end including certain balances with related parties. Given revenue recognition and consequential impact on the
the size of the balances and the risk of some of the trade expected credit loss allowance on receivables.
receivables not being recoverable, judgment is required to
evaluate the adequacy of allowance recorded to reflect the
risk.

Refer to Note 2(k) of the summary of significant accounting

policies to the standalone financial statements

184 | Annual Report 2021-22

 Biocon Limited

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company’s Management and Board of Directors are responsible for the other information. The other information comprises of
Management Reports such as Board’s Report, Management Discussion and Analysis, Corporate Governance Report and Business
Responsibility Report (but does not include the Standalone Financial Statements and our Auditors’ Report thereon) which we
have obtained prior to the date of this Auditors’ Report, and the remaining sections of the Company’s Annual Report, which are
expected to be made available to us after that date.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this Auditors’ Report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
When we read the other sections of the Annual Report (other than those mentioned above), if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions,
as applicable under the applicable laws and regulations.
Management’s and Board of Directors’/Board of Trustees’ Responsibilities for the Standalone Financial
Statements
The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/
loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
The respective Management and Board of Directors of the Company/Board of Trustees of the employee welfare trusts (“Trust”)
are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company/Trust and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the respective Management and Board of Directors/Board of Trustees are
responsible for assessing the ability of the Company/Trust to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Board of Directors/Board of Trustees either intends
to liquidate the Company/Trust or to cease operations, or has no realistic alternative but to do so.
The Board of Directors/Board of Trustees are also responsible for overseeing the financial reporting process of each Company/Trust.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

Metamorphosis | 185
 circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management and Board of Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting
in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms
of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. (A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books.
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income),
the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report
are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133
of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in
terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company
and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
(B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us:
a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on its financial position in its
standalone financial statements - Refer Note 34 to the standalone financial statements.

186 | Annual Report 2021-22

 Biocon Limited

b) The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 36 to the standalone
financial statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
d) (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 43
to the standalone financial statements, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Company; or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the Note 43
to the standalone financial statements, no funds have been received by the Company from any persons or
entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or
otherwise, that the Company shall:
• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has
come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii)
contain any material mis-statement.
e) As stated in Note 46 to the standalone financial statements, the Board of Directors of the Company has proposed
final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting.
The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
(C) With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company
to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration
paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs
has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
for B S R & Co. LLP
Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Membership Number: 060573
UDIN: 22060573AIAPOM9875

Place: Bangalore
Date: 28 April 2022

Metamorphosis | 187
Annexure A to the Independent Auditors’ Report
With reference to the Annexure A referred to in the Independent Auditor’s Report to the members of the Company on the
standalone financial statements for the year ended 31 March 2022, we report the following:

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of
property, plant and equipment.

(i) (a) (B) The Company has maintained proper records showing full particulars of intangible assets.

(i) (b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has a regular programme of physical verification of its property, plant and equipment by which
all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this
programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the Company and the nature of its assets. No discrepancies
were noticed on such verification.

(i) (c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee
and the leases agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are
held in the name of the Company, except for the following which is not held in the name of the Company:

Description Gross Held in the Whether Period held- Reason for not being held in
of property carrying name of promoter, indicate the name of the Company
value (INR director or range, Also indicate if in dispute
in million) their relative where
or employee appropriate
Freehold 35 Telangana No 6 to 7 years The land will be transferred
Land State Industrial to the Company once certain
Infrastructure terms and conditions of the sale
Corporation agreement are complied with
Limited which is currently pending.
There is no dispute.

(i) (d) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has not revalued its property, plant and equipment (including right of use assets) or intangible
assets or both during the year.

(i) (e) According to information and explanations given to us and on the basis of our examination of the records of the
Company, there are no proceedings initiated or pending against the Company for holding any benami property under
the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(ii) (a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management
during the year. For stocks lying with third parties at the year-end, written confirmations have been obtained and for
goods-in-transit subsequent evidence of receipts has been linked with inventory records. In our opinion, the frequency
of such verification is reasonable and procedures and coverage as followed by management were appropriate. No
discrepancies were noticed on verification between the physical stocks and the book records that were more than 10%
in the aggregate of each class of inventory.

188 | Annual Report 2021-22

 Biocon Limited

(ii) (b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has not been sanctioned any working capital limits in excess of five crore rupees in aggregate
from banks and financial institutions on the basis of security of current assets at any point of time of the year. Accordingly,
clause 3(ii)(b) of the Order is not applicable to the Company.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the Company has not provided any security or granted any advances in the nature of loans, secured or unsecured to companies,
limited liability partnership and other parties during the year. The Company has made investments, provided guarantees and
granted loans to companies during the year, in respect of which the requisite information is as below. The Company has not
provided any guarantee and granted any loans, secured or unsecured, to limited liability partnership or any other parties
during the year.

(a) (A) Based on the audit procedures carried on by us and as per the information and explanations given to us, the
Company has provided loans and stood guarantee to subsidiaries as below:

Particulars Guarantees Loans

Aggregate amount during the year - Subsidiaries* 16,009 millions 474 millions
Balance outstanding as at balance sheet date - Subsidiaries* 3,398 millions 413 millions

*As per the Companies Act, 2013

(B) Based on the audit procedures carried on by us and as per the information and explanations given to us, the
Company has not provided loans and stood guarantee to a party other than subsidiaries.

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our
opinion the investments made, guarantees provided during the year and the terms and conditions of the grant of loans
and guarantees provided during the year are, prima facie, not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, in the case of loans given, in our opinion the principal and interest is repayable on demand. As informed to us,
the Company has not demanded repayment of the loan and interest during the year. Thus, there has been no default on
the part of the party to whom the money has been lent. Further, the Company has not given any advance in the nature
of loan to any party during the year.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, there are no overdue amount for more than ninety days in respect of loans given. Further, the Company has
not given any advances in the nature of loans to any party during the year.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, there are no loan granted falling due during the year, which has been renewed or extended or fresh loans
granted to settle the overdues of existing loans given to same parties.

(f) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, in our opinion the Company has not granted any loans either repayable on demand or without specifying any
terms or period of repayment except for the following loans to its related parties as defined in Clause (76) of Section 2
of the Companies Act, 2013 (“the Act”):

Related Parties
Aggregate of loans
- Repayable on demand (A) 474 millions
- Agreement does not specify any terms or period of Repayment (B) Nil
Total (A+B) 474 millions
Percentage of loans to the total loans 100%

Metamorphosis | 189
(iv) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the Company has not given any loans, or provided any guarantee or security as specified under Section 185 and 186 of the
Companies Act, 2013 (“the Act”). In respect of the investments made by the Company, in our opinion the provisions of
Section 186 of the Act have been complied with.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause
3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central
Government for maintenance of cost records under Section 148(1) of the Act in respect of its manufactured goods and
services provided by it and are of the opinion that prima facie, the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of the records with a view to determine whether these
are accurate or complete.

(vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax during the
year since effective 1 July 2017, these statutory dues has been subsumed into Goods and Services Tax (‘GST’).

According to the information and explanations given to us and on the basis of our examination of the records of the
Company, in our opinion amounts deducted/ accrued in the books of account in respect of undisputed statutory dues
including GST, Provident Fund, Employees’ State Insurance, Income-Tax, Duty of Customs, Cess and other statutory dues
have been regularly deposited by the Company with the appropriate authorities.

According to the information and explanations given to us and on the basis of our examination of the records of the
Company, no undisputed amounts payable in respect of GST, Provident fund, Employees’ State Insurance, Income-Tax,
Duty of Customs, Cess and other statutory dues were in arrears as at 31 March 2022 for a period of more than six
months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, there are no statutory dues relating to GST, Provident Fund, Employees State Insurance, Income-Tax, Duty of
Customs or Cess or other statutory dues which have not been deposited on account of any disputes, other than those
set out in Appendix 1.

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has not defaulted in repayment of loans and borrowing or in the payment of interest thereon
to any lender.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has not been declared a wilful defaulter by any bank or financial institution or government or
government authority.

(c) In our opinion and according to the information and explanations given to us by the management, term loans were
applied for the purpose for which the loans were obtained.

(d) According to the information and explanations given to us and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the standalone financial
statements of the Company, we report that the Company has not taken any funds from any entity or person on account
of or to meet the obligations of its subsidiary as defined under the Act.

190 | Annual Report 2021-22

 Biocon Limited

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company
has not raised loans during the year on the pledge of securities held in its subsidiary (as defined under the Act).

(x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).
Accordingly, clause 3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of our examination of the records of
the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable to the Company.

(xi) (a) Based on examination of the books and records of the Company and according to the information and explanations
given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the
Company or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act
has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules,
2014 with the Central Government.

(c) We have taken into consideration the whistle blower complaints received by the Company during the year while
determining the nature, timing and extent of our audit procedures.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of
the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in
compliance with Section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been
disclosed in the standalone financial statements as required by the applicable accounting standards.

(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an
internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date for the period under audit.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash
transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Act are not
applicable to the Company.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
clause 3(xvi)(a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
clause 3(xvi)(b) of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.
Accordingly, clause 3(xvi)(c) of the Order is not applicable.

(d) The Company is not part of any group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions,
2016 as amended). Accordingly, the requirements of clause 3(xvi)(d) are not applicable

(xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

Metamorphosis | 191
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates
of realisation of financial assets and payment of financial liabilities, our knowledge of the Board of Directors and management
plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which
causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of
meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state
that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance
that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as
and when they fall due.

Also refer to the Other Information paragraph of our main audit report which explains that the other information comprising
of Management Reports such as Board’s Report, Management Discussion and Analysis, Corporate Governance Report and
Business Responsibility Report which we obtained prior to the date of this Auditor’s report and the remaining sections of the
Company’s Annual Report are expected to be made available to us after the date of this auditor’s report.

(xx) (a) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-
section (5) of Section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.

for B S R & Co. LLP

Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Membership Number: 060573
UDIN: 22060573AIAPOM9875

Place: Bangalore
Date: 28 April 2022

192 | Annual Report 2021-22

 Biocon Limited

Appendix I Referred to in paragraph vii (b) of Annexure A to the Independent Auditors’ Report
Name of the statute Nature of Amount Amount Period to which the Forum where dispute is
the dues (INR In paid in protest amount relates pending
Million) (INR In Million)
Income-Tax Act, 1961 Income Tax 4 4 FY 1996 - 97 Supreme Court
Income-Tax Act, 1961 Income Tax 1,348 635 FY 2009-10 to FY 2016-17 Income Tax Appellate
Tribunal (“ITAT”)
Income-Tax Act, 1961 Income Tax 13 12 FY 1997-98, FY 2003-04 to High Court of Karnataka
FY 2004-05
Income-Tax Act, 1961 Income Tax 62 62 FY 2013-14 Commissioner (Appeals)
Finance Act, 1994 Service-Tax -* - FY 2017-18 Deputy Commissioner
Finance Act, 1994 Service-Tax 188 - FY 2006-07 to FY 2016-17 Customs, Excise and
Service Tax Appellate
Tribunal (“CESTAT”)
Entry Tax (The West Entry Tax 20 - FY 2012-13 to FY 2016-17 High Court of West Bengal
Bengal Tax on Entry
of goods into Local
Areas Act, 2012)
Value Added Tax Act, Value Added 2 1 FY 2005-06 Commissioner (Appeals)
2005 Tax
Value Added Tax Act, Value Added 84 11 FY 2008-09 to FY 2015-16 Joint Commissioner
2005 Tax Appeals
Central Sales Tax Act CST 38 1 FY 2008-09 to FY 2013-14 Joint Commissioner
1956 Appeals
The Central Excise Excise Duty 273 53 FY 2005-06 to FY 2009- Customs, Excise and
Act, 1944 10 and FY 2011-12 to FY Service Tax Appellate
2013-14 Tribunal (“CESTAT”)
The Central Excise Excise Duty 56 - FY 2008-09 to FY 2013-14 Commissioner (Appeals)
Act, 1944
The Customs Act, Customs 45 45 FY 1994-95, FY 2004-05 to Customs, Excise and
1962 duty FY 2008-09 Service Tax Appellate
Tribunal (“CESTAT”)
The Customs Act, Customs 5 1 FY 2003-04, FY 2005-06, Commissioner (Appeals)
1962 duty FY 2007-08, FY 2008-09,
FY 2010-11, FY 2011-12,
FY 2013-14 & 2014-15
The Customs Act, 47 - FY 2012 -16 Karnataka High Court
1962

* Amounts are not presented since the amounts are rounded off to INR million.

Metamorphosis | 193
Annexure B to the Independent Auditor’s report on the standalone financial statements of Biocon Limited
for the year ended 31 March 2022.

Report on the internal financial controls with reference to the aforesaid standalone financial statements
under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph (2h) under ‘Report on Other Legal and Regulatory Requirements’ section of our
report of even date)

Opinion
We have audited the internal financial controls with reference to the standalone financial statements of Biocon Limited (“the
Company”) as of 31 March 2022 in conjunction with our audit of the standalone financial statements of the Company for the year
ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone
financial statements and such internal financial controls were operating effectively as at 31 March 2022, based on the internal
financial controls with reference to standalone financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (the “Guidance Note”).

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls
based on the internal financial controls with reference to standalone financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013 (hereinafter referred to as “the Act”).

Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to standalone financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing,
prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to
standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference
to standalone financial statements were established and maintained and whether such controls operated effectively in all
material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with
reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with
reference to standalone financial statements included obtaining an understanding of such internal financial controls, assessing the
risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls with reference to standalone financial statements.

194 | Annual Report 2021-22

 Biocon Limited

Meaning of Internal Financial controls with Reference to Standalone Financial Statements

A company’s internal financial controls with reference to standalone financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with
reference to standalone financial statements include those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material
effect on the standalone financial statements.

Inherent Limitations of Internal Financial controls with Reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial
statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial
statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

for B S R & Co. LLP

Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Membership Number: 060573
UDIN: 22060573AIAPOM9875

Place: Bangalore
Date: 28 April 2022

Metamorphosis | 195
Balance Sheet as at March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Note As at As at
No. March 31, 2022 March 31, 2021
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 3 7,466 6,691
Capital work-in-progress 3 2,703 1,646
Investment properties 4(a) 655 695
Right-of-use-assets 4(b) 377 391
Other intangible assets 5 204 204
Intangible assets under development 5 146 146
Financial assets
(i) Investments 6 50,178 50,734
(ii) Loans 7(a) 190 -
(iii) Other financial assets 8(a) 331 704
Income-tax asset (net) 887 887
Deferred tax assets (net) 18 1,200 1,464
Other non-current assets 9(a) 331 482
Total Non-Current Assets 64,668 64,044
CURRENT ASSETS
Inventories 10 5,415 4,309
Financial Assets
(i) Investments 11 2,622 3,393
(ii) Trade receivables 12 7,006 6,054
(iii) Cash and cash equivalents 13(a) 1,110 2,535
(iv) Bank balances other than (iii) above 13(b) 5,783 3,477
(v) Loans 7(b) 223 -
(vi) Other financial assets 8(b) 1,318 1,223
Other Current Assets 9(b) 545 702
Total Current Assets 24,022 21,693
TOTAL ASSETS 88,690 85,737
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 14(a) 6,003 6,000
Other Equity 14(b) 74,926 73,071
Total equity 80,929 79,071
NON-CURRENT LIABILITIES
Financial Liabilities
(i) Lease Liabilities 38 1 12
(ii) Borrowings 15(a) 759 -
(iii) Other financial liabilities 16(a) 141 144
Provisions 17(a) 256 263
Other non-current liabilities 19(a) 695 745
Total Non-Current Liabilities 1,852 1,164
CURRENT LIABILITIES
Financial Liabilities
(i) Lease liabilities 38 9 12
(ii) Borrowings 15(b) - 7
(iii) Trade payables
Total Outstanding Dues of Micro Enterprises and Small Enterprises 413 198
Total outstanding dues of creditors other than micro and small enterprises 20 3,396 3,522
(iv) Other financial liabilities 16(b) 683 448
Provisions 17(b) 248 255
Current Tax Liabilities (Net) 909 872
Other current liabilities 19(b) 251 188
Total Current Liabilities 5,909 5,502
TOTAL EQUITY AND LIABILITIES 88,690 85,737
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022

Sampad Guha Thakurta Kiran Mazumdar-Shaw Siddharth Mittal

Partner Executive Chairperson Managing Director & CEO
Membership No. 060573 DIN: 00347229 DIN: 03230757

Indranil Sen Mayank Verma

Chief Financial Officer Company Secretary
Bengaluru Bengaluru
April 28, 2022 April 28, 2022

196 | Annual Report 2021-22

 Biocon Limited

Statement of Profit and Loss for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

Note Year ended Year ended

No. March 31, 2022 March 31, 2021
Income
Revenue from operations 21 17,382 20,284
Other income 22 1,872 1,502
Total income 19,254 21,786
Expenses
Cost of materials consumed 23 9,123 7,607
Purchases of stock-in-trade 17 9
Changes in inventories of stock-in-trade, finished goods and work-in-progress 24 (1,058) 367
Employee benefits expense 25 3,677 3,902
Finance costs 26 4 4
Depreciation and amortisation expense 27 1,082 1,035
Other expenses 28 5,012 5,287
17,857 18,211
Less: Recovery of cost from co-development partners (net) - (13)
Total expenses 17,857 18,198
Profit before tax 1,397 3,588
Tax expense
Current tax 33 322 462
Deferred tax
MAT credit utilised/(entitlement) 285 273
Other deferred tax (credit)/charge (71) 48
Total tax expense 536 783
Profit after tax 861 2,805
Other comprehensive income/(expense)
(i) Items that will not be reclassified subsequently to profit or loss
Re-measurement on defined benefit plans 22 14
Equity investments through other comprehensive income - net change in fair value (35) (25)
Income tax effect 1 6
(12) (5)
(ii) Items that will be reclassified subsequently to profit or loss
Effective portion of gains/(losses) on hedging instrument in cash flow hedges 142 45
Income tax effect (50) (16)
92 29
Other comprehensive income for the year, net of taxes 80 24
Total comprehensive income for the year 941 2,829
Earning per equity share 31
Basic (in `) 0.72 2.36
Diluted (in `) 0.72 2.34
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022

Sampad Guha Thakurta Kiran Mazumdar-Shaw Siddharth Mittal

Partner Executive Chairperson Managing Director & CEO
Membership No. 060573 DIN: 00347229 DIN: 03230757

Indranil Sen Mayank Verma

Chief Financial Officer Company Secretary
Bengaluru Bengaluru
April 28, 2022 April 28, 2022

Metamorphosis | 197
Statement of Changes in Equity for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
As at As at
March 31, 2022 March 31, 2021
(A) Equity share capital
Opening balance 6,000 6,000
Issued during the year 3 -
Closing balance 6,003 6,000

(B) Other equity

Reserves and surplus Items of other

comprehensive income
Total
Particulars Securities Revaluation General Retained SEZ Share based Treasury Cash Other items other
Premium reserve reserve earnings reinvestment payment shares flow of other equity
reserve reserve hedging comprehensive
reserves income
Balance at April 01, 2020 238 9 1,616 67,952 - 835 (1,345) (7) 75 69,373
Profit for the year - - - 2,805 - - - - - 2,805
Other comprehensive income, net of tax - - - - - - - 29 (5) 24
Total comprehensive income for the year - - - 2,805 - - - 29 (5) 2,829
Transactions recorded directly in equity
Share based payment - - - - - 563 - - - 563
Purchase of treasury shares - - - - - - (93) - - (93)
Transfer to SEZ reinvestment reserve - - - (539) 539 - - - - -
Transfer from SEZ reinvestment reserve on utilisation - - - 539 (539) - - - - -
Exercise of share options 381 - - 304 - (381) 95 - - 399
Balance at March 31, 2021 619 9 1,616 71,061 - 1,017 (1,343) 22 70 73,071
Profit for the year - - - 861 - - - - - 861
Other comprehensive income, net of tax - - - - - - - 92 (12) 80
Total comprehensive income for the year - - - 861 - - - 92 (12) 941
Transactions recorded directly in equity
Share based payment - - - - - 489 - - - 489
Purchase of treasury shares - - - - - - (3) - - (3)
Exercise of share options 573 - - (594) - (573) 1,022 - - 428
Balance at March 31, 2022 1,192 9 1,616 71,328 - 933 (324) 114 58 74,926
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022

Sampad Guha Thakurta Kiran Mazumdar-Shaw Siddharth Mittal

Partner Executive Chairperson Managing Director & CEO
Membership No. 060573 DIN: 00347229 DIN: 03230757

Indranil Sen Mayank Verma

Chief Financial Officer Company Secretary
Bengaluru Bengaluru
April 28, 2022 April 28, 2022

198 | Annual Report 2021-22

 Biocon Limited

Statement of Cash Flows for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Particulars March 31, 2022 March 31, 2021
I Cash flows from operating activities
Profit for the year 861 2,805
Adjustments to reconcile profit for the year to net cash flows
Depreciation and amortisation expense 1,082 1,035
Unrealised foreign exchange (gain)/loss (45) 106
Share based compensation expense 295 388
Provision/(reversal of provision) for doubtful debts, (net) 201 -
Interest expense 4 4
Interest income (415) (288)
Net (gain)/ loss on financial assets measured at fair value through profit or loss (1) (32)
Profit on property, plant and equipment sold, (net) (8) (16)
Net gain on sale of investments (30) (19)
Tax expense 536 783
Operating profit before changes in operating assets and liabilities 2,480 4,766

Movements in operating assets and liabilities

Decrease/(increase) in inventories (1,106) 1,038
Increase in trade receivables (1,136) (321)
Decrease in other assets 466 1,772
Increase/(decrease) in trade payable, other liabilities and provisions 56 (929)
Cash generated from operations 760 6,326
Income taxes paid (net of refunds) (284) (613)
Net cash flow generated from operating activities 476 5,713

II Cash flows from investing activities

Purchase of Property, plant and equipment (2,392) (1,477)
Purchase of other intangible assets (75) (151)
Proceeds from sale of Property, plant and equipment 21 96
Proceeds from sales of other intangible assets - 16
Loan given to subsidiaries (960) (5,750)
Recovery of loans from subsidiaries 30 2,390
Purchase of investments (11,065) (24,832)
Proceeds from sale of current investments 12,332 24,039
Proceeds from sale of investments in subsidiary - 5,000
Investment in bank deposits and inter corporate deposits (7,629) (7,324)
Redemption/maturity of bank deposits and inter corporate deposits 6,397 800
Interest received 285 81
Net cash flow used in investing activities (3,056) (7,112)

III Cash flows from financing activities

Purchase of Treasury shares (3) (93)
Exercise of share options 428 399
Repayment of long-term borrowings (7) (7)
Proceeds from long-term borrowings 733 -
Repayment of principal portion of lease liabilities (17) (21)
Interest Paid (14) -
Net cash flow generated from financing activities 1,120 278

Metamorphosis | 199
Statement of Cash Flows for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Particulars March 31, 2022 March 31, 2021
IV Net decrease in cash and cash equivalents (I + II + III) (1,460) (1,121)

V Effect of exchange differences on cash and cash equivalents held in foreign currency 35 (94)

VI Cash and cash equivalents at the beginning of the year 2,535 3,750

VII Cash and cash equivalents at the end o f the year (IV + V + VI) 1,110 2,535

Reconciliation of cash and cash equivalents as per statement of cash flow

Cash and cash equivalents (Note 13)
Balances with banks - on current accounts 1,106 2,530
Balances with Banks - on unpaid dividend accounts# 4 5
Balance as per statement of cash flows 1,110 2,535
#The Company can utilize these balances only towards settlement of the respective unpaid dividend liabilities.

Reconciliation between opening and closing balance sheet for liabilities arising from financing activities as at March 31, 2022
Particulars Opening balance Cash flows Non-cash Closing balance
April 1, 2021 movement March 31, 2022
Borrowings (including current maturities) 7 726 26 759
Interest accrued but not due 1 (14) 15 2
Total liabilities from financing activities 8 712 41 761
Reconciliation between opening and closing balance sheet for liabilities arising from financing activities as at March 31, 2021
Particulars Opening balance Cash flows Non-cash Closing balance
April 1, 2020 movement March 31, 2021
Borrowings (including current maturities) 14 (7) - 7
Interest accrued but not due 1 -* - 1
Total liabilities from financing activities 15 (7) - 8
(a) Statement of Cash Flows has been prepared under the indirect method as set out in the Ind AS 7 “Statement of Cash Flows”.

* Amounts are not presented since the amounts are rounded off to Rupees million.
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022

Sampad Guha Thakurta Kiran Mazumdar-Shaw Siddharth Mittal

Partner Executive Chairperson Managing Director & CEO
Membership No. 060573 DIN: 00347229 DIN: 03230757

Indranil Sen Mayank Verma

Chief Financial Officer Company Secretary
Bengaluru Bengaluru
April 28, 2022 April 28, 2022

200 | Annual Report 2021-22

 Biocon Limited

Notes to the Standalone Financial Statements

for the year ended March 31, 2022

1. Company Overview
1.1 Reporting entity
Biocon Limited (“Biocon” or “the Company”), is engaged in the manufacture of biotechnology products and research services. The
Company is a public limited company incorporated and domiciled in India and has its registered office in Bengaluru, Karnataka,
India. The Company’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.

1.2 Basis of preparation of financial statements

a) Statement of compliance
The standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the
‘Act’) and other relevant provisions of the Act.
These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant
Ind AS that are effective at the Company’s annual reporting date, March 31, 2022. These standalone financial statements
were authorised for issuance by the Company’s Board of Directors on April 28, 2022.
Details of the Company’s accounting policies are included in Note 2.
b) Functional and presentation currency
These standalone financial statements are presented in Indian rupees (INR), which is also the functional currency of the
Company. All amounts have been rounded-off to the nearest million, unless otherwise indicated.
c) Basis of measurement
These standalone financial statements have been prepared on the historical cost basis (i.e on accrual basis), except for the
following items:
Certain financial assets and liabilities (including derivative instruments) are measured at fair value; and
Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations.
d) Use of estimates and judgements
The preparation of the standalone financial statements in conformity with Ind AS requires Management to make
estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities
at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in
estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects
are disclosed in the notes to the standalone financial statements.
Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the
amounts recognised in the financial statements is included in the following notes:
• Note 2(a) and 36 — Financial instruments;
• Note 2(b), 2(c) and 2(d) — Useful lives of property, plant and equipment, intangible assets and investment property;
• Note 2(p) and 38 — Lease, whether an agreement contains a lease;
• Note 35 — Measurement of defined benefit obligation; key actuarial assumptions;
• Note 30 — Share based payments;
• Note 2(m) and 33 — 
Provision for income taxes and related tax contingencies and Evaluation of
recoverability of deferred tax assets.
• Note 2(k) and 21 — Revenue Recognition: whether revenue from sale of product and licensing income is
recognised over time or at a point in time;

Metamorphosis | 201
1.3 Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment
in the year ended March 31, 2022 is included in the following notes:
— Note 2(h)(ii) – impairment test of non-financial assets; key assumptions underlying recoverable amounts including the
recoverability of expenditure on internally-generated intangible assets;
— Note 18 and 33 – recognition of deferred tax assets: availability of future taxable profit against which tax losses carried
forward can be used;
— Note 36 – impairment of financial assets; and
— Note 17 and 34 – recognition and measurement of provisions and contingencies: key assumptions about the likelihood
and magnitude of an outflow of resources.
1.4 Measurement of fair values
A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial assets and liabilities.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows:
— Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
— Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
— Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company has an established control framework with respect to the measurement of fair values. This includes a finance
team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.
The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used
to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the conclusion
that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations
should be classified
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
— Note 30 – share based payment arrangements;
— Note 4 (a) – investment property; and
— Note 2(a) and 36 – financial instruments.
2. Significant accounting policies
a. Financial instruments
i. Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and
loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

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 Biocon Limited

ii. Classification and subsequent measurement

Financial assets
On initial recognition, a financial asset is classified as measured at
— amortised cost;
— Fair value through other comprehensive income – equity investment; or
— Fair value through profit and loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:
— the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
— the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
— the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and
— the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present
subsequent changes in the investment’s fair value in OCI (designated as FVOCI – equity investment). This election is
made on an investment‑ by‑ investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading
and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are
classified as at FVPL. For all other equity instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-
instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify
an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in
the OCI. There is no recycling of the amounts from OCI to the Statement of Profit and Loss, even on sale of investment.
However, the Company may transfer the cumulative gain or loss to retained earnings. Equity instruments included within
the FVPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Investments in subsidiaries
Equity investments in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication of
impairment exists,the carrying amount of the investment is assessed and written down immediately to its recoverable
amount. On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying
amounts are recognised in the Statement of Profit and Loss.

Metamorphosis | 203
 Financial assets: Subsequent measurement and gains and losses
Financial These assets are subsequently measured at fair value. Net gains and losses, including any interest or
assets at dividend income, are recognised in statement of profit and loss. However, see Note 36 for derivatives
FVTPL designated as hedging instruments.
Financial These assets are subsequently measured at amortised cost using the effective interest method. The
assets at amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses
amortised and impairment are recognised in statement of profit and loss. Any gain or loss on derecognition is
cost recognised in statement of profit and loss.
Equity These assets are subsequently measured at fair value. Dividends are recognised as income in statement
investments of profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment.
at FVOCI Other net gains and losses are recognised in OCI and are not reclassified to statement of profit and loss.
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it
is classified as held‑ for‑ trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in statement of
profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in statement of profit and loss. Any gain or loss
on derecognition is also recognised in statement of profit and loss.
iii. Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that
case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the Company has retained.
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair
value. The difference between the carrying amount of the financial liability extinguished and the new financial liability
with modified terms is recognised in statement of profit and loss.
iv. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.
v. Derivative financial instruments and hedge accounting
The Company holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures.
Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a
financial asset and certain criteria are met.
Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value,
and changes therein are generally recognised in statement of profit and loss.
The Company designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with
highly probable forecast transactions arising from changes in foreign exchange rates and interest rates.

204 | Annual Report 2021-22

 Biocon Limited

At inception of designated hedging relationships, the Company documents the risk management objective and strategy
for undertaking the hedge. The Company also documents the economic relationship between the hedged item and
the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are
expected to offset each other.
vi. Cash flow hedges
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the derivative is recognised in OCI and accumulated in other equity under ‘effective portion of cash flow hedges’.
The effective portion of changes in the fair value of the derivative that is recognised in OCI is limited to the cumulative
change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any
ineffective portion of changes in the fair value of the derivative is recognised immediately in statement of profit and loss.
If a hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated
or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is
discontinued, the amount that has been accumulated in other equity remains there until, for a hedge of a transaction
resulting in recognition of a non‑financial item, it is included in the non‑financial item’s cost on its initial recognition or,
for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future
cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in other
equity are immediately reclassified to statement of profit and loss.
vii. Treasury shares
The Company has created an Employee Welfare Trust (EWT) for providing share-based payment to its employees. Own
equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. When the
treasury shares are issued to the employees by EWT, the amount received is recognised as an increase in equity and the
resultant gain / (loss) is transferred to / from securities premium.
viii. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose
of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
Cash dividend to equity holders
The Company recognises a liability to make cash to equity holders when the distribution is authorised and the distribution
is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is
approved by the shareholders. A corresponding amount is recognised directly in equity. Interim dividends are recorded
as a liability on the date of declaration by the Company’s Board of Directors.
b. Property, plant and equipment
i. Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses, if any. The cost of an item of property, plant and equipment comprises its purchase price including import duty
and non refundable taxes or levies , any other costs directly attributable to bringing the item to working condition for its
intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.
Property, plant and equipment (continued)
Expenditure incurred on startup and commissioning of the project and/or substantial expansion, including the expenditure
incurred on trial runs (net of trial run receipts, if any) up to the date of commencement of commercial production are
capitalised.If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit and loss.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.

Metamorphosis | 205
 Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shown
under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital
work-in-progress.
ii. Depreciation
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their
estimated useful lives using the straight-line method. Freehold land is not depreciated.
The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as
follows:
Asset Assets Classification Management estimate Useful life as
of useful life per Schedule II
Building Building 25 years 30 years
Roads Building 5 years 5 years
Plant and equipment (including Electrical Plant and Machinery 9-11 years 8-20 years
installation and Lab equipment )
Computers and servers Plant and Machinery 3 years 3-6 years
Office equipment Plant and Machinery 5 years 5 years
Research and development equipment Research and 9 years 5-10 years
development equipment
Furniture and fixtures Furniture and fixtures 6 years 10 years
Vehicles Vehicles 6 years 6-10 years
Leasehold improvements Leasehold improvements 5 years or lease period
whichever is lower
Leasehold land Land and Right to use-assets 90 years or lease period
whichever is lower

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given
above best represent the period over which management expects to use these assets.
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for
use (disposed of).
Property, plant and equipment (continued)
iii. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassified as
investment property at its carrying amount on the date of reclassification.

c. Intangible assets
Internally generated: Research and development
Expenditure on research activities is recognised in statement of profit and loss as incurred.
Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditure can be
measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable,
and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it
is recognised in statement of profit and loss as incurred. Subsequent to initial recognition, the asset is measured at cost less
accumulated amortisation and any accumulated impairment losses.
Others
Other intangible assets are initially measured at cost. Subsequently, such intangible assets are measured at cost less accumulated
amortisation and any accumulated impairment losses.

i. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. All other expenditure, including expenditure on brands, is recognised in statement of profit and loss
as incurred.

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 Biocon Limited

ii. Amortisation
Intangible assets are amortised on a straight line basis over the estimated useful life as follows:
— Computer software 3-5 years
— Marketing and Manufacturing rights 5-10 years
— Customer related intangibles 5 years
— Intellectual property rights 5-10 years
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.
d. Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Upon initial
recognition, an investment property is measured at cost. Subsequent to initial recognition, investment property is measured at
cost less accumulated depreciation and accumulated impairment losses, if any.
Based on technical evaluation and consequent advice, the management believes a period of 25 years as representing the best
estimate of the period over which investment properties (which are quite similar) are expected to be used. Accordingly, the
Company depreciates investment properties over a period of 25 years on a straight-line basis. The useful life estimate of 25
years is different from the indicative useful life of relevant type of buildings mentioned in Part C of Schedule II to the Act i.e.
30 years. Any gain or loss on disposal of an investment property is recognised in statement of profit and loss.

e. Business combination
In accordance with Ind AS 103, Business combinations, the Company accounts for business combinations after acquisition
date using the acquisition method when control is transferred to the Company. The cost of an acquisition is measured at
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.
The cost of acquisition also includes the fair value of any contingent consideration and deferred consideration, if any. Any
goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in OCI and accumulated
in equity as capital reserve if there exists clear evidence of the underlying reasons for classifying the business combination
as resulting in a bargain purchase; otherwise the gain is recognised directly in equity as capital reserve. Transaction costs are
expensed as incurred.
Business combinations between entities under common control is accounted for at carrying value.
f. Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-
out formula, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs
incurred in bringing them to their present location and condition. In the case of manufactured inventories and work-in-
progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity.

Provisions are made towards slow-moving and obsolete items based on historical experience of utilisation on a product
category basis, which consideration of product lines and market conditions.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses. The net realisable value of work-in-progress is determined with reference to the selling prices of related
finished products.
Raw materials, components and other supplies held for use in the production of finished products are not written down below
cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed
their net realisable value.
The comparison of cost and net realisable value is made on an item-by-item basis.

g. Foreign currency Transactions and translations:

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of

Metamorphosis | 207
 monetary assets and liabilities denominated in foreign currencies at balance sheet date exchange rates are generally recognised
in Statement of Profit and Loss.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of
the fair value gain or loss. For example translation differences on non-monetary assets such as equity investments classified as
FVOCI are recognised in other comprehensive income (OCI).
h. Impairment
i. Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (“ECL”) model for measurement and recognition
of impairment loss on following:
— financial assets measured at amortised cost; and
Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime
expected credit losses. For all other financial assets, ECL are measured at an amount equal to the 12-month ECL, unless
there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime
ECL.
Loss allowance for financial assets measured at amortised cost are deducted from gross carrying amount of the assets.
The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an
impairment gain or loss in the Statement of Profit and Loss.
ii. Impairment of non-financial assets
The Company assess at each reporting date whether there is any indication that the carrying amount may not be
recoverable. If any such indication exists, then the asset’s recoverable amount is estimated and an impairment loss is
recognised if the carrying amount of an asset or Cash Generating Unit (CGU) exceeds its estimated recoverable amount
in the statement of profit and loss.
The recoverable amount of a CGU (or an individual asset) is higher of its value in use and its fair value less costs to sell.
Value in use is based on the estimated future cash flow, discounted to their present value using a pre-tax discount rate
that reflects current market assessment of the time value of money and the risks specific to CGU (or the asset).
The Company’s non-financial assets, are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For impairment testing,
assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows
of other assets or CGUs.
Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated
to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata
basis.

An impairment loss in respect of other assets for which impairment loss has been recognised in prior periods, the
Company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
Such a reversal is made only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

i. Employee benefits
i. Short-term employee benefits:
All employee benefits falling due within twelve months from the end of the period in which the employees render the
related services are classified as short-term employee benefits, which include benefits like salaries, wages, short term
compensated absences, performance incentives, etc. and are recognised as expenses in the period in which the employee
renders the related service and measured accordingly.”

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 Biocon Limited

ii. Post-employment benefits:

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:”

Gratuity
The Company provides for gratuity, a defined benefit plan (“the Gratuity Plan”) covering the eligible employees of the
Company. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or
termination of employment, of an amount based on the respective employee’s salary and the tenure of the employment
with the Company.
Liability with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary,
at each balance sheet date using the projected unit credit method. The defined benefit plan is administered by a trust
formed for this purpose through the Company gratuity scheme.
The Company recognises the net obligation of a defined benefit plan as a liability in its balance sheet. Gains or losses
through re-measurement of the net defined benefit liability are recognised in other comprehensive income and are not
reclassified to profit and loss in the subsequent periods. The actual return of the portfolio of plan assets, in excess of
the yields computed by applying the discount rate used to measure the defined benefit obligation is recognised in other
comprehensive income. The effect of any plan amendments are recognised in the statement of profit and loss.
Provident Fund
Eligible employees of the Company receive benefits from provident fund, which is a defined contribution plan. Both
the eligible employees and the Company make monthly contributions to the Government administered provident fund
scheme equal to a specified percentage of the eligible employee’s salary. Amounts collected under the provident fund
plan are deposited with in a government administered provident fund. The Company has no further obligation to
the plan beyond its monthly contributions. Company’s contribution to the provident fund is charged to Statement of
Profit and Loss.
iii. Compensated absences: ]
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The
expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent
actuary at each balance sheet date using the projected unit credit method on the additional amount expected to be
paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-
accumulating compensated absences is recognised is the period in which the absences occur.
The liability in respect of all defined benefit plans and other long term benefits is accrued in the books of account on the
basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method. The obligation
is measured at the present value of estimated future cash flows. The discount rates used for determining the present
value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance
Sheet date, having maturity periods approximating to the terms of related obligations.
Remeasurement gains and losses on other long term benefits are recognised in the Statement of Profit and Loss in the
year in which they arise. Remeasurement gains and losses in respect of all defined benefit plans arising from experience
adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other
comprehensive income. They are included in other equity in the Statement of Changes in Equity and in the Balance
Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service cost. Gains or losses on the curtailment or settlement of any
defined benefit plan are recognised when the curtailment or settlement occurs. Any differential between the plan assets
(for a funded defined benefit plan) and the defined benefit obligation as per actuarial valuation is recognised as a liability
if it is a deficit or as an asset if it is a surplus (to the extent of the lower of present value of any economic benefits available
in the form of refunds from the plan or reduction in future contribution to the plan).
Past service cost is recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the average
period until the benefits become vested. To the extent that the benefits are already vested immediately following the
introduction of, or changes to, a defined benefit plan, the past service cost is recognised immediately in the Statement of
Profit and Loss. Past service cost may be either positive (where benefits are introduced or improved) or negative (where
existing benefits are reduced).

Metamorphosis | 209
 iv. Share-based compensation
The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become
entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for
which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately
recognised as an expense is based on the number of awards that do meet the related service and non-market vesting
conditions at the vesting date.
The grant date fair value of options granted (net of estimated forfeiture) to employees of the Company is recognised as
an employee expense.
The Company has adopted the policy to account for Employees Welfare Trust as a legal entity separate from the Company
but as a subsidiary of the Company. Any loan from the Company to the trust is accounted for as a loan in accordance
with its term.
The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple
awards. The increase in equity recognised in connection with share based payment transaction is presented as a separate
component in equity under “share based payment reserve”. The amount recognised as an expense is adjusted to reflect
the actual number of stock options that vest. For the option awards, grant date fair value is determined under the
option-pricing model (Black-Scholes-Merton). Forfeitures are estimated at the time of grant and revised, if necessary, in
subsequent periods if actual forfeitures materially differ from those estimates.
j. Provisions (other than for employee benefits)
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to
settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Expected
future operating losses are not provided for.

Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the Company from the contract
are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is
measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of
continuing with the contract. Before such a provision is made, the Company recognises any impairment loss on the assets
associated with that contract.

k. Revenue from contracts with customers

i. Sale of goods
Revenue is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring
control over the promised goods to the customer. Control over a promised goods refers to the ability to direct the use of,
and obtain substantially all of the remaining benefits from, those goods. Control is usually transferred upon shipment,
delivery to, upon receipt of goods by the customer, in accordance with the delivery and acceptance terms agreed with
the customers. However, in certain cases, revenue is recognized on sale of products where shipment is on hold at
specific request of the customer provided performance obligation conditions has been satisfied and control is transferred,
with customer taking title of the goods. The amount of revenue to be recognised (transaction price) is based on the
consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties
such as goods and services tax or other taxes directly linked to sales. If a contract contains more than one performance
obligation, the transaction price is allocated to each performance obligation based on their relative stand-alone selling
prices. Revenue from product sales are recorded net of allowances for estimated rebates, cash discounts and estimates
of product returns, all of which are established at the time of sale.

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For contracts with distributors, no sales are recognised when goods are physically transferred to the distributor under a
consignment arrangement, or if the distributor acts as an agent. In such cases, sales are recognised when control over
the goods transfers to the end-customer, and distributor’s commissions are presented within marketing and distribution.
The consideration received by the Company in exchange for its goods may be fixed or variable. Variable consideration
is only recognised when it is considered highly probable that a significant revenue reversal will not occur once the
underlying uncertainty related to variable consideration is subsequently resolved.
ii. Milestone payments and out licensing arrangements
The Company enters into certain dossier sales, licensing and supply arrangements that, in certain instances, include
certain performance obligations. Based on an evaluation of whether or not these obligations are inconsequential or
perfunctory, the Company recognise or defer the upfront payments received under these arrangements.
Income from out-licensing agreements typically arises from the receipt of upfront, milestone and other similar payments
from third parties for granting a license to product- or technology- related intellectual property (IP). These agreements
may be entered into with no further obligation or may include commitments to regulatory approval, co-marketing or
manufacturing. These may be settled by a combination of upfront payments, milestone payments and other fees. These
arrangements typically also consist of subsequent payments dependent on achieving certain milestones in accordance with
the terms prescribed in the agreement. Milestone payments which are contingent on achieving certain clinical milestones
are recognised as revenues either on achievement of such milestones, if the milestones are considered substantive, or
over the period we have continuing performance obligations, if the milestones are not considered substantive. Whether
to consider these commitments as a single performance obligation or separate ones, or even being in scope of Ind-AS
115‘Revenues from Contracts with Customers, is not straightforward and requires some judgement. Depending on
the conclusion, this may result in all revenue being calculated at inception and either being recognised at point in time
or spread over the term of a longer performance obligation. Where performance obligations may not be distinct, this
will bundled with the subsequent product supply obligations. The new standard provides an exemption for sales-based
royalties for licenses of intellectual property which will continue to be recognised as revenue as underlying sales are
incurred.

The Company recognises a deferred income (contract liability) if consideration has been received (or has become
receivable) before the company transfers the promised goods or services to the customer. Deferred income mainly
relates to remaining performance obligations in (partially) unsatisfied long-term contracts or are related to amounts the
Company expects to receive for goods and services that have not yet been transferred to customers under existing, non-
cancellable or otherwise enforceable contracts.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and
only passage of time is required, as per contractual terms.

iii. Royalty income and profit share

The Royalty income and profit share earned through a License or collaboration partners is recognised as the underlying
sales are recorded by the Licensee or collaboration partners.

iv. Sales Return Allowances

The Company accounts for sales return by recording an allowance for sales return concurrent with the recognition of
revenue at the time of a product sale. The allowance is based on Company’s estimate of expected sales returns. The
estimate of sales return is determined primarily by the Company’s historical experience in the markets in which the
Company operates.

v. Dividends
Dividend is recognised when the Company’s right to receive the payment is established, which is generally when
shareholders approve the dividend.

Metamorphosis | 211
 vi. Rental income
Rental income from investment property is recognised in statement of profit and loss on a straight-line basis over the
term of the lease except where the rentals are structured to increase in line with expected general inflation. Lease
incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

vii. Contribution received from customers/co-development partners towards plant and equipment
Contributions received from customers/co-development partners towards items of property, plant and equipment which
require an obligation to supply goods to the customer in the future, are recognised as a credit to deferred revenue. The
contribution received is recognised as revenue from operations over the useful life of the assets. The Company capitalises
the gross cost of these assets as the Company controls these assets.

viii. Interest income and expense

Interest income or expense is recognised using the effective interest method.

l. Government grants
The Company recognises government grants at their fair value only when there is reasonable assurance that the conditions
attached to them will be complied with, and the grants will be received. Government grants received in relation to assets
are recognised as deferred income and amortised over the useful life of such asset. Government grants, which are revenue
in nature are either recognised as income or deducted in reporting the related expense based on the terms of the grant, as
applicable.

m. Income taxes
Income tax comprises of current and deferred income tax. Income tax expense is recognised in statement of profit and
loss except to the extent that it relates to an item recognised directly in equity in which case it is recognised in other
comprehensive income. Current income tax for current year and prior periods is recognised at the amount expected to be
paid or recovered from the tax authorities, using the tax rates and laws that have been enacted or substantively enacted by
the balance sheet date.
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements except when:
— temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss at the time of transaction; and
— temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the
Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse
in the foreseeable future.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Deferred tax assets (DTA) include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely
to give future economic benefits in the form of availability of set off against future income tax liability.
Deferred income tax assets and liabilities are measured using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and
liabilities is recognised as income or expense in the period that includes the enactment or substantive enactment date. A
deferred income tax assets is recognised to the extent it is probable that future taxable income will be available against
which the deductible temporary timing differences and tax losses can be utilised. The Company offsets income-tax assets and
liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.

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Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against which they can be used
n. Borrowing cost
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of
time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
o. Earnings per share
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period
adjusted for treasury shares held. Diluted earnings per share is computed using the weighted-average number of equity and
dilutive equivalent shares outstanding during the period, using the treasury stock method for options and warrants, except
where the results would be anti-dilutive.

p. Leases
(i) The Company as lessee:
The Company assesses whether a contract contains a lease, at the inception of contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assesses whether a contract conveys the right to control use of an identified asset, the Company
assesses whether:
• The contract involves use of an identified asset;
• The Company has substantially all the economic benefits from the use of the asset through the period of lease; and
• The Company has the right to direct the use of an asset.
At the date of commencement of lease, the Company recognises a Right-of-use asset (“ROU”) and a corresponding liability
for all lease arrangements in which it is a lessee, except for leases with the term of twelve months or less (short term leases)
and low value leases. For short term and low value leases, the Company recognises the lease payment as an operating
expense on straight line basis over the term of lease. Certain lease agreements include an option to extend or terminate the
lease before the end of lease term. ROU assets and the lease liabilities includes these options when it is reasonably certain that
they will be exercised.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e., higher of fair value less cost to sell and the value-in-use) is determined on individual asset basis
unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate explicit in the lease or, if not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related
right-of- use assets if the Company changes its assessment if whether it will exercise an extension or a termination of option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and the lease payments have been classified
as financing cash flows.
(ii) The Company as a Lessor:
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease
transfer substantially all the risk and rewards of ownership to the lessee, the contract is classified as finance lease. All
other leases are classified as operating lease.
q. Operating cycle

Metamorphosis | 213
 The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

r. Exceptional items
Exceptional items refer to items of income or expense within the statement of profit and loss from ordinary activities which
are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the
performance of the Company.

s. Recent accounting developments

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

Ind AS 103 – Reference to Conceptual Framework

The amendments specifiy that to qualify for recognition as part of applying the acquisition method, the identifiable assets
acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial
Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of
India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does
not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 – Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received
from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise
such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in
its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’.
Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct
labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a
clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 – Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether
to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial
statements.

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3. Property, plant and equipment and Capital work-in-progress

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated) (C in lakh)
Land Buildings Leasehold Plant and equipment Research and Furniture Vehicles Total Capital
[Refer note (c)] improvements [Refer note (a)] development and work-in-
equipments fixtures progress
Gross carrying amount
At April 01, 2020 542 3,925 3 11,442 1,052 456 118 17,538 1,519
Additions 35 84 - 853 - 22 6 1,000 1,200
Disposals/transfers - - - - - - (34) (34) (1,073)
Transfer to investment property (8) (4) - - - - - (12) -
At March 31, 2021 569 4,005 3 12,295 1,052 478 90 18,492 1,646
Additions 61 233 - 1,398 1 15 25 1,733 2,790
Disposals/transfers - - - (5) - - (8) (13) (1,733)
Transfer to investment property - - - - - - - - -
At March 31, 2022 630 4,238 3 13,688 1,053 493 107 20,212 2,703
Accumulated depreciation
At April 01, 2020 - 1,491 3 8,178 818 383 75 10,948 -
Depreciation for the year - 174 - 626 55 21 13 889 -
Disposals/transfers - - - - - - (34) (34) -
Transfer to investment property - (2) - - - - - (2) -
At March 31, 2021 - 1,663 3 8,804 873 404 54 11,801 -
Depreciation for the year - 180 - 693 46 23 12 954 -
Disposals/transfers - - - (5) - - (4) (9) -
Transfer to investment property - - - - - - - - -
At March 31, 2022 - 1,843 3 9,492 919 427 62 12,746 -
Net carrying amount
At March 31, 2021 569 2,342 - 3,491 179 74 36 6,691 1,646
At March 31, 2022 630 2,395 - 4,196 134 66 45 7,466 2,703

(a) Plant and equipment include computers and office equipment.

(b) Refer note 34 (b) (ii) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(c)

Relevant Description Gross Title deeds Whether title deed Property Reason for not being
line item of item of carrying held in the holder is a promoter, held held in the name of
in the property value name of director or relative of since the company
Balance promoter/director or which
sheet employee of promoter/ date
director
Property, Freehold 35 Telangana NA November The land will be
plant and Land state 30, 2015 transferred to the
equipment Industrial company once certain
Infrastructure terms and conditions of
Corporation the sale agreement are
limited complied with which is
currently pending. There
is no dispute.

(d) Borrowing costs capitalised during the year amounted to ` 41 (March 31, 2021 - ` Nil).

Metamorphosis | 215
3. Property, plant and equipment and Capital work-in-progress (continued)

3 (a) Capital work in progress ageing schedule

As at March 31, 2022
Amount in CWIP for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 2,480 180 43 - 2,703
Projects temporarily suspended - - - - -
Total 2,480 180 43 - 2,703

As at March 31, 2021

Amount in CWIP for a period of Total
Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 793 679 172 2 1,646
Projects temporarily suspended - - - - -
Total 793 679 172 2 1,646

(i) There are no capital work-in-process whose completion is overdue or has exceeded its cost compared to its original plan as at March 31,
2022 and March 31, 2021

4 (a) Investment property

Gross carrying amount
At April 01, 2020 1,089
Transfer from property, plant and equipment 12
At March 31, 2021 1,101
Transfer from property, plant and equipment -
At March 31, 2022 1,101

Accumulated depreciation
At April 01, 2020 364
Depreciation for the year 40
Transfer from property, plant and equipment 2
At March 31, 2021 406
Depreciation for the year 40
Transfer from property, plant and equipment -
At March 31, 2022 446

Net carrying amount

At March 31, 2021 695
At March 31, 2022 655
(a) During the year, the Company has recognised rental income of ` 303 (March 31, 2021 ` 283) in the statement of profit and loss for
investment property.
(b) The fair value of investment property is ` 2,194 (March 31, 2021 ` 2,234), based on market observable data. The company has not engaged
any registered valuer for determining the above fair value.
(c) Company’s investment properties consist of land and building in Bangalore.

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4(b) Right-of-use assets

Particulars Land Buildings Vehicles Total
Gross carrying amount
At April 01, 2020 374 3 32 409
Additions - - 15 15
Disposals/transfer - - (6) (6)
At March 31, 2021 374 3 41 418
Additions - - - -
Disposals/transfer - - (5) (5)
At March 31, 2022 374 3 36 413

Accumulated depreciation
At April 01, 2020 2 1 10 13
Disposals/transfer - - (2) (2)
Depreciation for the year 2 2 12 16
At March 31, 2021 4 3 20 27
Disposals/transfer - - (4) (4)
Depreciation for the year 2 - 11 13
At March 31, 2022 6 3 27 36

Net carrying amount

At March 31, 2021 370 - 21 391
At March 31, 2022 368 - 9 377

5. Other intangible assets

Particulars Intellectual Computer Marketing and Customer Total Intangible assets
property rights software Manufacturing rights related intangible under development
Gross carrying amount
At April 01, 2020 81 448 294 77 900 -
Additions - 73 - - 73 146
Disposals - - - - - -
At March 31, 2021 81 521 294 77 973 146
Additions - 75 - - 75 -
Disposals - - - - - -
At March 31, 2022 81 596 294 77 1,048 146

Accumulated amortisation
As at April 01, 2020 81 269 264 65 679 -
Disposals - - - - -
Amortisation for the year - 61 17 12 90 -
At March 31, 2021 81 330 281 77 769 -
Disposals - - - - - -
Amortisation for the year - 68 7 - 75 -
At March 31, 2022 81 398 288 77 844 -

Net carrying amount

At March 31, 2021 - 191 13 - 204 146
At March 31, 2022 - 198 6 - 204 146

Refer note 34 (b) (ii) for disclosure of contractual commitments for the acquisition of other intangible assets.

Metamorphosis | 217
5 (a) Intangible assets under development ageing schedule
As at March 31, 2022
Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress - - 146 - 146
Projects temporarily suspended - - - - -
Total - - 146 - 146

As at March 31, 2021

Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress - 146 - - 146
Projects temporarily suspended - - - - -
Total - 146 - - 146

(i) There are no intangible assets under development whose completion is overdue or has exceeded its cost compared to its original plan as at March 31, 2022
and as at March 31, 2021.

6. Non-current investments
March 31, 2022 March 31, 2021
I. Quoted equity instruments
In subsidiary company at cost:
Syngene International Limited - 282,276,145 (March 31, 2021 - 282,276,145) equity shares of `10 each 26,692 26,692
In others at fair value through other comprehensive income:
Vaccinex Inc.,USA - 299,226 (March 31, 2021 - 299,226) common stock of USD 0.0001 each 30 65
Total quoted non-current investments 26,722 26,757
II. Unquoted equity instruments
In subsidiary companies at cost:
Biocon Pharma Limited - 14,050,000 (March 31, 2021 - 14,050,000) equity shares of ` 10 each 141 141
Biocon SA, Switzerland - 100,000 (March 31, 2021 - 100,000) equity shares of CHF 1 each 4 4
Biocon FZ LLC, UAE - 150 (March 31, 2021 - 150) equity shares of AED 1,000 each 3 3
Biocon Academy - 50,000 (March 31, 2021 - 50,000) equity shares of ` 10 each 1 1
Biocon Biologics Limited 1,000,526,870 (March 31, 2021 - 1,000,526,870) equity shares of ` 10 each 605 605
(Formely known as Biocon Biologics India Limited)
Biofusion Therapeutics Limited -50,000 (March 31, 2021 - Nil) equity shares of ` 10 each 1 -
Biocon Biosphere Limited -50,000 (March 31, 2021 - 50,000) equity shares of ` 10 each 1 1
In joint venture company at cost:
NeoBiocon FZ LLC, UAE - 147 (March 31, 2021 - 147) equity shares of AED 1,000 each 2 2
In associate company at cost:
Bicara Therapeutics Inc. : 2,500,000 (March 31, 2021 - 2,500,000) equity shares of USD 0.0001 each -* -*
In others at fair value through profit or loss:
Energon KN Wind Power Private Limited - 38,500 (March 31, 2021 - 38,500) equity shares of ` 10 each 1 1
Less: Provision for decline, other than temporary, in the value of non current investments (1) (1)
Four Ef Renewables Private Limited - 164,271 (March 31, 2021 - 164,271) equity share of ` 100 each 16 16
Hinduja Renewables Two Private Limited - 5,913,566 equity shares (March 31, 2021 - 2,369,000) of ` 10 each 59 24
Total unquoted investments in equity instruments 833 797
III. Unquoted preference shares
In subsidiary company at fair value through profit or loss:
Biocon Biologics Limited (Formely known as Biocon Biologics India Limited) :
4% Optionally convertible redeemable- non cumulative preference shares of ` 10 each 10,810 10,810
1,081,000,000 (March 31, 2021 - 1,081,000,000) fully paid
9% Non cumulative redeemable preference shares of ` 10 each 2,054 2,054
205,420,000 (March 31, 2021 - 205,420,000) fully paid
Biocon Pharma Limited: 873,000,000 (March 31, 2021 - 873,000,000)
0.01% Optionally convertible redeemable non- cumulative preference shares of ` 10 each fully paid. 8,862 8,862
Biocon Biosphere Limited: 63,812,289 (March 31, 2021 - 12,082,125)
0.01% Optionally convertible Redeemable non- cumulative preference shares of ` 10 each fully paid 638 121

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March 31, 2022 March 31, 2021

In associate company at cost:
IATRICa Inc., USA - 4,285,714 (March 31, 2021 - 4,285,714) Series A preferred stock at US$ 0.70 each, par 139 139
value US $ 0.00001 each
Less: Provision for decline, other than temporary, in the value of non-current investments (139) (139)
Others at fair value through profit or Loss:
Four Ef Renewables Private Limited : 328,541 (March 31, 2021 - 328,541 )
0.001% Compulsorily convertible preference Shares of ` 100 each fully paid [refer note (a)] 33 33
Energon KN Wind Power Private Limited - 14,666 (March 31, 2021 - 14,666) convertible preference shares, 1 1
par value ` 100 each
Less: Provision for decline, other than temporary, in the value of non current investments (1) (1)
Total unquoted investments in preference shares 22,397 21,880
IV. Inter corporate deposits with financial institutions and banks carried at amortised cost 226 1,300
Total non-current investments 50,178 50,734
Aggregate book value of quoted investments 26,722 26,757
Aggregate market value of quoted investments 168,718 153,468
Aggregate value of unquoted investments 23,597 24,118
Aggregate amount of impairment in value of investments 141 141
(a) Terms of conversion: 1 compulsory convertible preference share of face value ` 100/- each will convert to 1 equity share of face value ` 100/- at end of the
tenure of 20 years from allotment.
* Amounts are not presented since the amounts are rounded off to Rupees million. w.e.f. January 9, 2021, Investment in Bicara Therapeutics Inc. is an associate
of the Company.

7. Loans
March 31, 2022 March 31, 2021
Unsecured considered good
(a) Non-current
Loans to related parties [refer note 32] 190 -
190 -
(b) Current
Loans to related parties [refer note 32] 223 -
223 -
Loans to related parties comprise loans to the following:
(i) Biocon Pharma Limited - -
Maximum amount outstanding during the year - 2,392
(ii) Bicara Therapeutics Inc. - -
Maximum amount outstanding during the year - 1,384
(iii) Biocon Biologics Limited - -
Maximum amount outstanding during the year - 1,006
(iv) Biocon Biosphere Limited 190 -
Maximum amount outstanding during the year 251 87
(v) Biofusion Therapeutics Limited 223 -
Maximum amount outstanding during the year 223 -

Loans are granted to related parties (as defined under Companies Act, 2013) that are repayable on demand:

Name of borrower Amount of Percentage to Amount of Percentage to

loan outstanding the total Loans loan outstanding the total Loans
(i) Biocon Biosphere Limited 190 46% - -
(ii) Biofusion Therapeutics Limited 223 54% - -

The Company has not granted any advances in the nature of loans to promoters, KMPs and the related parties (as defined under Companies Act,
2013) either severally or jointly

Metamorphosis | 219
 March 31, 2022 March 31, 2021
8. Other financial assets
(a) Non-current
Derivative assets 132 7
Non-current cash and bank balances - 500
Deposits 199 197
331 704
(b) Current
Derivative assets 29 13
Interest accrued but not due 232 107
Other receivables (considered good - Unsecured) from:
Related parties [refer note 32] 1,050 1,099
Others 7 4
1,318 1,223
9. Other assets
(Unsecured considered good, unless otherwise stated)
(a) Non-current
Capital advances 53 136
Duty drawback receivables 46 47
Balances with statutory/government authorities 213 285
Prepayments 19 14
331 482
(b) Current
Advance to suppliers 63 115
Contract assets - 25
Balances with statutory/government authorities 262 375
Prepayments 220 187
545 702
10. Inventories
Raw materials, including goods-in-transit* 1,640 1,594
Packing materials 22 20
Work-in-progress 3,606 1,483
Finished goods 147 1,212
5,415 4,309

* includes goods in-transit ` 68 (March 31, 2021 - ` 74)

Write-down of inventories to net realisable value amounted to ` 145 (March 31, 2021 - ` 166). These were recognised as an expense during the
year and included in ‘changes in inventories of finished goods and work-in-progress’ in statement of profit and loss.

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March 31, 2022 March 31, 2021

11. Current investments
Quoted
At fair value through profit or Loss:
Investment in mutual funds 72 1,343
Unquoted
At amortised cost:
Inter corporate deposits with financial institutions 2,550 2,050
Total current investments 2,622 3,393
Aggregate book and market value of quoted investments 72 1,343
Aggregate value of unquoted investments 2,550 2,050

12. Trade receivables

(a) Trade receivables considered good - Unsecured 7,006 6,054
(b) Trade receivables - credit impaired 235 34
7,241 6,088
Allowance for credit loss (235) (34)
Total Trade Receivable 7,006 6,054
(i) The Company’s exposure to credit and currency risk, and loss allowances are disclosed in Note 36
(ii) Includes receivables from related parties [refer note 32]

Trade receivables Ageing Schedule

Unbilled Not due Outstanding for following periods from due
date of payment
Total
Less than 6 months - 1-2 2-3 More than
6 Months 1 year years years 3 years
Undisputed Trade Receivables - considered good 277 3,541 2,374 747 44 12 11 7,006
Undisputed Trade receivables - credit impaired - - - 27 177 5 26 235
As at March 31, 2022 277 3,541 2,374 774 221 17 37 7,241

Undisputed Trade Receivables – considered good 175 3,433 2,062 88 124 145 27 6,054
Undisputed Trade receivables - credit impaired - - - - 7 7 20 34
As at March 31, 2021 175 3,433 2,062 88 131 152 47 6,088

March 31, 2022 March 31, 2021

13(a) Cash and cash equivalents
Balances with banks:
On current accounts 1,106 2,530
On unpaid dividend account 4 5
Total cash and cash equivalents 1,110 2,535

13(b) Other bank balances

Deposits with maturity of less than 12 months 5,780 3,474
Margin money deposit [refer note (a) below] 3 3
Total other bank balances 5,783 3,477
(a) Margin money deposits with carrying amount of ` 3 (March 31, 2021 - ` 3) are subject to first charge against bank guarantees obtained.
(b) The Company has cash on hand which are not disclosed above since amounts are rounded off to Rupees million.

Metamorphosis | 221
 March 31, 2022 March 31, 2021
14(a). Equity share capital
Authorised
1,250,000,000 (March 31, 2021 - 1,250,000,000) equity shares of ` 5 each 6,250 6,250
(March 31, 2021 - ` 5 each)
Issued, subscribed and fully paid-up
1,200,600,000 (March 31, 2021 - 1,200,000,000) equity shares of ` 5 each 6,003 6,000
(March 31, 2021 - ` 5 each)

(i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
Equity shares March 31, 2022 March 31, 2021
No. of shares ` No. of shares `
At the beginning of the year 1,200,000,000 6,000 1,200,000,000 6,000
Equity Share Capital issued during the year 600,000 3 - -
Outstanding at the end of the year 1,200,600,000 6,003 1,200,000,000 6,000

(ii) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ` 5 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(iii) Details of shareholders holding more than 5% shares in the Company

March 31, 2022 March 31, 2021
Equity shares
No. of shares % holding No. of shares % holding
Equity shares of ` 5 each fully paid
Kiran Mazumdar-Shaw 475,725,384 39.62% 475,725,384 39.64%
Glentec International Limited 237,211,164 19.76% 237,211,164 19.77%
As per records of the Company, including its register of shareholders/members, the above shareholding represents both legal and
beneficial ownerships of shares.

(iv) 
Aggregate number of bonus shares issued during the period of five years immediately preceding the
reporting date:
Year ended March 31
Particulars
2022 2021 2020 2019 2018
Equity shares of ` 5 each fully paid - - 600,000,000 - 400,000,000
The Company had allotted 600,000,000 equity shares of ` 5 each fully paid up as bonus shares on June 19, 2019 in the ratio of 1:1
(one equity shares of ` 5 each for every one equity share of ` 5 each held in the Company as on the record date i.e. June 13, 2019)
by capitalisation of securities premium and general reserve. In accordance with Ind AS 33, the Earnings per share data adjusted to
give effect to the bonus issue.
(v) Shares reserved for issue under options
For details of shares reserved for issue under the Share based payment plan of the company, please refer note 30.

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 Biocon Limited

(vi) Details of shares held by promoters

March 31, 2022
No. of shares at the % of Total Shares % change
Name of the Promoter
end of the year during the year
Kiran Mazumdar Shaw 475,725,384 39.62% -0.02%
Yamini R Mazumdar 1,308,712 0.11% -
J M M Shaw 8,445,348 0.70% -
Ravi Mazumdar 4,815,084 0.40% -
Dev Mazumdar 518,484 0.04% -
Glentec International Limited 237,211,164 19.76% -0.01%
Total 728,024,176 60.64% -0.03%
March 31, 2021
No. of shares at the % of Total Shares % change
Name of the Promoter
end of the year during the year
Kiran Mazumdar Shaw 475,725,384 39.64% -
Yamini R Mazumdar 1,308,712 0.11% 0.001%
J M M Shaw 8,445,348 0.70% -
Ravi Mazumdar 4,815,084 0.40% -
Dev Mazumdar 518,484 0.04% -
Glentec International Limited 237,211,164 19.77% -
Total 728,024,176 60.67% 0.001%

14(b). Other equity

Securities premium
Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.
General reserve
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
Retained earnings
The amount that can be distributed by the Company as dividends to its equity shareholders.
SEZ re-investment reserve
The Special Economic Zone (SEZ) re-investment reserve has been created out of profit of eligible SEZ units in terms of the provisions of section
10AA(1)(ii) of the Income-tax Act, 1961. The reserve has been utilised for acquiring new plant and machinery for the purpose of its business in
terms of section 10AA(2) of the Income-tax Act, 1961.
Share based payment reserve
The Company has established equity settled share based payment plans for certain categories of employees of the Company and
its subsidiaries / joint venture company. Refer note 30 for further details on these plans.
Treasury shares
Own equity instruments that are reacquired [treasury shares] are recognised at cost and disclosed as deducted from equity.
Cash flow hedging reserves
The cash flow hedging reserve represents the cumulative effective portion of gains or losses (net of taxes, if any) arising on changes
in fair value of designated portion of hedging instruments entered into for cash flow hedges.
Other Items of other comprehensive income
Other Items of other comprehensive income represents mark to market gain or loss on financial assets classified as FVTOCI and
re-measurements of the defined benefits plan.

Metamorphosis | 223
 March 31, 2022 March 31, 2021
15. Borrowings
(a) Non-current
Loans from banks (secured) 759 -
Term loan [refer note (a) below] 759 -
(b) Current
Other loans and advances (unsecured) - 7
Financial assistance from DST [refer note (b) below] - 7
The above amount includes
Secured borrowings 759 -
Unsecured borrowings - 7
Net amount 759 7

(a) During the year ended March 31, 2021, HDFC bank has sanctioned external commercial borrowing (ECB) facility of USD 25 million to the
Company. During the current year, the Company has drawn ECB of USD 10 million, carrying interest @ Libor + 1.75% per annum. The loan
is repayable in 3 yearly instalments commencing from June 16, 2025. The loan is secured by exclusive charge on the property, plant and
equipments created out of the term loan facility. The Company has entered into interest rate swap converting the floating rate to fixed rate
of interest. [Refer note 36]
(b) On August 25, 2010, the Department of Science and Technology (‘DST’) under the Drugs and Pharmaceutical Research Programme (‘DPRP’)
had sanctioned financial assistance for a sum of ` 70 to the Company for financing one of its research projects. The loan was repayable
over 10 annual instalments of ` 7 each starting from July 1, 2012, and carried an interest rate of 3% p.a. The Company was required to
utilise the funds for the specified projects and was required to obtain prior approvals from the said authorities for disposal of assets/
Intellectual property rights acquired/developed under the above programmes. The Company has repaid the loan during the year ended
March 31, 2022
(c) The Company’s exposure to liquidity, interest rate and currency risks are disclosed in note 36.
March 31, 2022 March 31, 2021
16. Other financial liabilities
(a) Non-current
Derivative liabilities 141 144
141 144
(b) Current
Unpaid dividends 4 5
Payables for capital goods 673 390
Interest accrued but not due 2 1
Book overdraft - 50
Derivative liabilities 4 2
683 448
17. Provisions
(a) Non-current
Provision for employee benefits
Gratuity [refer note 35] 256 263
256 263
(b) Current
Provision for employee benefits
Gratuity [refer note 35] 79 85
Compensated absences 169 170
248 255

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 Biocon Limited

Gratuity Compensated
absences
(i) Movement in provisions
Opening balance as at April 01, 2021 348 170
Provision recognised/(utilised) during the year (13) (1)
Closing balance as at March 31, 2022 335 169

Opening balance as at April 01, 2020 297 161

Provision recognised/(utilised) during the year 51 9
Closing balance as at March 31, 2021 348 170

March 31, 2022 March 31, 2021

18. Deferred tax liabilities/(assets) (net)
Deferred tax liabilities
Property, plant and equipment, investment property and intangible assets 498 485
Derivative liabilities 54 5
Gross deferred tax liabilities 552 490
Deferred tax assets
Employee benefit obligations 242 248
Allowance for doubtful debts 82 12
Other disallowable expenses 93 89
Deferred revenue 24 32
MAT credit entitlement 1,071 1,356
Others 240 217
Gross deferred tax assets 1,752 1,954

Net deferred tax liabilities/(assets) (1,200) (1,464)

19. Other liabilities

(a) Non-current 695 745
Contract Liabilities 695 745
(b) Current
Contract Liabilities 101 59
Advances from customers 73 44
Statutory taxes and dues payable 77 85
251 188

Metamorphosis | 225
 March 31, 2022 March 31, 2021
20. Trade payables
Trade payables
Total outstanding dues of micro and small enterprises [refer note (a) below] 413 198
Total outstanding dues of creditors other than micro and small enterprises* 3,396 3,522
3,809 3,720
*Includes dues to related parties [refer note 32]
(a) Trade payables Ageing Schedule

Unbilled Not Due Outstanding for following periods from due

date of payment Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Total outstanding dues of micro enterprises and small enterprises - 352 58 3 -* -* 413
Total outstanding dues of creditors other than micro enterprises and 1,564 926 825 13 24 44 3,396
small enterprises
As at March 31, 2022 1,564 1,278 883 16 24 44 3,809
Total outstanding dues of micro enterprises and small enterprises - 143 55 -* -* - 198
Total outstanding dues of creditors other than micro enterprises and 1,737 765 914 43 15 48 3,522
small enterprises
As at March 31, 2021 1,737 908 969 43 15 48 3,720

* Amounts are not presented since the amounts are rounded off to Rupees million.
(b) Disclosure required under Clause 22 of Micro, Small and Medium Enterprise Development (‘MSMED’) Act, 2006
March 31, 2022 March 31, 2021
(i) The principal amount and the interest due thereon remaining unpaid to any supplier as at the
end of each year.
Principal amount due to micro and small enterprises 413 198
Interest due on the above -* 1
(ii) The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 2006 along 501 954
with the amounts of the payment made to the supplier beyond the appointed day during each
accounting year.
(iii) The amount of interest due and payable for the period of delay in making payment (which has 3 6
been paid but beyond appointed day during the year) but without adding the interest specified
under the MSMED Act, 2006.
(iv) The amount of interest accrued and remaining un-paid at the end of each accounting year. - -
(v) The amount of further interest remaining due and payable even in the succeeding years, until 67 64
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006.
The above disclosures are provided by the Company based on the information available with the Company in respect of the registration status of
its vendors/suppliers.
(c) All Trade Payables are ‘current’. The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in note 36.
* Amounts are not presented since the amounts are rounded off to Rupees million.

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 Biocon Limited

Year ended Year ended

March 31, 2022 March 31, 2021
21. Revenue from operations
Sale of products
Finished goods 14,907 18,166
Traded goods 42 22
Sale of services
Licensing and development fees 25 40
Other operating revenue
Sale of process waste 203 130
Others [refer note (a) below] 2,205 1,926
Revenue from operations 17,382 20,284
(a) Others include, rentals and cross charge of research and development, power and other facilities
by the SEZ Developer/SEZ unit of the Company.

21.1 Disaggregated revenue information

Set out below is the disaggregation of the Company’s revenue from contracts with customers:
Revenues by Geography
India 6,260 7,098
Brazil 1,925 2,037
United States of America 1,341 2,850
Rest of the world 5,448 6,243
Total revenues by Geography 14,974 18,228

Revenue from other sources

Other operating revenue 2,408 2,056
2,408 2,056
Total revenue from operations 17,382 20,284
Geographical revenue is allocated based on the location of the customers.
March 31, 2022 March 31, 2021
21.2 Changes in contract liabilities:
Balance at the beginning of the year 848 351
Add:- Increase due to invoicing during the year 132 718
Less:- Amount recognised as revenue/other adjustments during the year (111) (221)
Balance at the end of the year 869 848
Expected revenue recognition from remaining performance obligations:
- within one year 174 103
- More than one year 695 745
869 848
21.3 Contract balances
Trade receivables (including unbilled revenue) 7,006 6,054
Contract assets - 25
Contract liabilities 869 848

Trade receivables are non-interest bearing.

Contract liabilities include deferred revenue and advance from customers.

21.4 Performance obligation:

In relation to information about Company’s performance obligations in contracts with customers [refer note 2(k)].

Metamorphosis | 227
 Year ended Year ended
March 31, 2022 March 31, 2021
22. Other income
Interest income on:
Deposits with banks and financial institutions 389 125
Others 26 163
Net gain on sale of current investments 30 19
Net gain on financial assets measured at fair value through profit or loss 1 16
Net gain on derivative liability measured at fair value through profit or loss - 16
Profit on property, plant and equipment sold, (net) 8 16
Foreign exchange gain, net 126 -
Other non-operating income [refer note (a)] 1,292 1,147
1,872 1,502
(a) Others non operating income includes, rentals, cross charge of power and other facilities.

23. Cost of materials consumed

Inventory at the beginning of the year 1,614 2,285
Add: Purchases 9,171 6,936
Less: Inventory at the end of the year (1,662) (1,614)
Cost of materials consumed 9,123 7,607

24. Changes in inventories of stock-in-trade, finished goods and work-in-

progress
Inventory at the beginning of the year
Finished goods 1,212 1,751
Work-in-progress 1,483 1,311
2,695 3,062
Inventory at the end of the year
Finished goods 147 1,212
Work-in-progress 3,606 1,483
3,753 2,695
(1,058) 367
25. Employee benefits expenses
Salaries, wages and bonus 2,881 2,999
Contribution to provident and other funds 134 132
Gratuity [refer note 35] 54 52
Share based compensation expense [refer note 30] 295 388
Staff welfare expenses 313 331
3,677 3,902
26. Finance costs
Interest on finance lease [refer note 38] 4 4
4 4
27. Depreciation and amortisation expense
Depreciation on Property, plant and equipment [refer note 3] 954 889
Depreciation on Investment property [refer note 4 (a)] 40 40
Amortisation on intangible assets [refer note 5] 75 90
Depreciation on Right-of-use-assets [refer note 4(b) ] 13 16
1,082 1,035

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Year ended Year ended

March 31, 2022 March 31, 2021
28. Other expenses
Rent 4 3
Communication expenses 30 27
Travelling and conveyance 44 16
Professional charges 126 294
Payments to auditors [refer note 29 below] 8 8
Directors’ fees including commission 39 22
Power and fuel 2,310 1,860
Insurance 108 104
Rates, taxes and fees 23 27
Lab consumables 186 314
Repairs and maintenance
Plant and machinery 636 661
Buildings 106 114
Others 377 381
Selling expenses
Freight outwards and clearing charges 119 131
Sales promotion expenses 7 3
Commission and brokerage (other than sole selling agents) 61 65
Provision/(reversal) for doubtful debts, net 201 -
Foreign exchange fluctuation, net - 103
Printing and stationery 32 31
Research and development expenses 466 553
CSR expenditure [refer note 40] 70 66
Miscellaneous expenses [refer note 32] 59 504
5,012 5,287
29. Payments to auditors
As auditor:
Statutory audit fee 3 3
Tax audit fee 1 1
Limited review 1 1
In other capacity:
Other services (certification fees) 2 2
Reimbursement of out-of-pocket expenses 1 1
8 8

Metamorphosis | 229
30. Employee stock compensation
(a) Biocon ESOP Plan
On September 27, 2001, Biocon’s Board of Directors approved the Biocon Employee Stock Option Plan (‘ESOP Plan 2000’) for the grant of
stock options to the employees of the Company and its subsidiaries / joint venture company. The Nomination and Remuneration Committee
(‘Remuneration Committee’) administers the plan through a trust established specifically for this purpose, called the Biocon India Limited Employee
Welfare Trust (ESOP Trust).
The ESOP Trust shall make additional purchase of equity shares of the Company using the proceeds from the loan obtained from the Company,
other cash inflows from allotment of shares to employees under the ESOP Plan and shall subscribe, when allotted to such number of shares
as is necessary for transferring to the employees. The ESOP Trust may also receive shares from the promoters for the purpose of issuance to
the employees under the ESOP Plan. The Remuneration Committee shall determine the exercise price which will not be less than the face
value of the shares.
Grant V
In April 2008, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to
the employees as 25%, 35% and 40% of the total grant at the end of first, second and third year from the date of grant for existing employees
and at the end of 3rd, 4th and 5th year from the date of grant for new employees. Exercise period is 3 years for each grant. The conditions for
number of options granted include service terms and performance grade of the employees. These options are exercisable at the market price of
Company’s shares on the date of grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year - - 87,000 75
Granted during the year - - - -
Lapses/Forfeited during the year - - - -
Exercised during the year - - (87,000) 75
Expired during the year - - - -
Outstanding at the end of the year - - - -
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) - - - -
Range of exercise prices for outstanding options at the end of year - - - -
Grant VI
In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the
employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively,
with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. These options are exercisable at the closing market price of Company’s shares existing on the date preceding to the date of grant.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year - - 33,000 78
Granted during the year - - - -
Lapses/Forfeited during the year - - - -
Exercised during the year - - (33,000) 78
Expired during the year - - - -
Outstanding at the end of the year - - - -
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) - - - -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the end of year - - - -

230 | Annual Report 2021-22

 Biocon Limited

Grant VII
In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the
employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively,
with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. These options are exercisable at the closing market price of Company’s shares existing on the date preceding to the date of grant.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 2,008,750 82 3,392,275 81
Granted during the year - - - -
Lapses/Forfeited during the year (84,000) 77 (120,000) 75
Exercised during the year (1,335,750) 79 (1,263,525) 81
Expired during the year - - - -
Outstanding at the end of the year 589,000 88 2,008,750 82
Exercisable at the end of the year 103,000 82 357,250 79
Weighted average remaining contractual life (in years) 0.9 - 1.6 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the end of year 76-124 - 69-124 -

Grant VIII
In July 2015, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the
employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively,
with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. These options are exercisable at the closing price as per National Stock Exchange as on the last day of the month preceding the month
of first grant.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 147,000 75 711,500 80
Granted during the year - - - -
Lapses/Forfeited during the year - - (136,500) 38
Exercised during the year (42,000) 73 (428,000) 73
Expired during the year - - - -
Outstanding at the end of the year 105,000 76 147,000 75
Exercisable at the end of the year 105,000 76 99,000 76
Weighted average remaining contractual life (in years) - - 1 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the end of year 76 - 71-76 -

Metamorphosis | 231
Grant IX
In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the
employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively,
with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 5,307,574 124 7,351,312 127
Granted during the year - - - -
Lapses/Forfeited during the year (1,390,500) 135 (1,780,875) 136
Exercised during the year (470,870) 95 (262,863) 98
Expired during the year - - - -
Outstanding at the end of the year 3,446,204 125 5,307,574 124
Exercisable at the end of the year 205,079 98 105,762 81
Weighted average remaining contractual life (in years) 3.0 - 4.1 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the end of year 69-173 - 69-173 -

Grant X
In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the
employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively,
with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 4,857,076 142 7,010,758 137
Granted during the year - - - -
Lapses/Forfeited during the year (256,125) 148 (340,498) 152
Exercised during the year (1,969,077) 130 (1,813,184) 120
Expired during the year - - - -
Outstanding at the end of the year 2,631,874 151 4,857,076 142
Exercisable at the end of the year 951,249 139 777,449 125
Weighted average remaining contractual life (in years) 1.3 - 2.2 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the end of year 69-167 - 62-167 -
The average market price of the Company’s share during the year ended March 31, 2022 is ` 373 (March 31, 2021 - ` 407) per share .

232 | Annual Report 2021-22

 Biocon Limited

(b) RSU Plan 2015

On March 11, 2015, Biocon’s Remuneration Committee approved the Biocon - Restricted Stock Units (RSUs) of Syngene (‘RSU Plan 2015’) for
the grant of RSUs to the employees of the Company and its subsidiaries other than Syngene. The Remuneration Committee administers the plan
through a trust, called the Biocon Limited Employee Welfare Trust. For this purpose, on March 31, 2015, the Company transferred 2,000,000
equity shares of Syngene to Biocon Limited Employees Welfare Trust.
In April 2015, the Company approved the grant to its employees under the RSU Plan 2015. The RSUs under this grant would vest to the employees
as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with
an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the
employees. Exercise price of RSUs will be Nil.

March 31, 2022 March 31, 2021

Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 285,974 - 750,819 -
Granted during the year - - - -
Lapses/Forfeited during the year (50,398) - (28,749) -
Exercised during the year (122,640) - (436,096) -
Expired during the year (9,178) - - -
Outstanding at the end of the year 103,758 - 285,974 -
Exercisable at the end of the year 58,797 - 49,873 -
Weighted average remaining contractual life (in years) 1.1 - 2.8 -
Weighted average fair value of options granted (`) - -

(c) RSU Plan 2019

On January 7, 2019, Biocon’s Nomination and Remuneration Committee (‘NRC’) and the Board of Directors approved the Biocon Biologics -
Restricted Stock Units (RSUs) of Biocon Biologics India Limited (‘RSU Plan 2019’) for grant of RSUs to employees of the Group. The NRC administers
the plan though a trust called, Biocon Limited Employee Welfare Trust. For this purpose on January 8, 2020, the Company transferred 2,161,904
equity shares of Biocon Biologics India Limited to Biocon Limited Employee Welfare Trust.
The RSUs under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year, respectively, from the date of grant or from the date of occurrence of certain future events, whichever is later, with an exercise period ending
one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 8,514,615 2 9,960,570 2
Granted during the year - - 1,125,470 2
Lapses/Forfeited during the year (1,511,608) 2 (2,571,425) 2
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 7,003,007 2 8,514,615 2
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) 6.0 - 7.0 -
Weighted average fair value of options granted (`) 244 244
Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:

Particulars March 31, 2022 March 31, 2021

Weighted Average Exercise Price - 2
Expected volatility - 33.7% to 36.9%
Life of the options granted (vesting and exercise period) in years - 7
Average risk-free interest rate - 5.4%
Expected dividend rate - 0%

Metamorphosis | 233
(d) RSU Plan 2020
On May 14, 2020, Biocon’s Nomination and Remuneration Committee (‘NRC’) and the Board of Directors approved the Biocon Restricted Stock
Units (RSUs) Long Term Incentive Plan FY2020-24 (“RSU Plan 2020”) for grant of RSUs to present and/or future employees of the Company and
its present and future subsidiary companies. The plan is implemented though a trust called, Biocon India Limited Employee Welfare Trust wherein
the Company will issue shares to the trust by way of fresh allotment over a period of time.
The RSUs granted under this Plan shall vest over a period of time (service condition) and based upon the performance of the employee. The
period of vesting shall be determined as per the date of grant and the maximum period of vesting shall not extend beyond August 1, 2024. The
actual number of RSUs to be vested each year for each Grantee shall be based on his individual performance conditions, the key parameters of
which shall be measured through growth in revenue and profits, delivering on key strategic initiatives and shareholders’ value creation and such
other conditions as may be determined by the Managing Director and Chief Executive Officer of the Company in accordance with the overall
terms set by the NRC.
March 31, 2022 March 31, 2021
Particulars No of Weighted No of Weighted
Options Average Options Average
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 2,630,000 5 - -
Granted during the year 724,083 5 2,930,000 5
Lapses/Forfeited during the year (408,345) 5 (300,000) 5
Exercised during the year (430,762) 5 - -
Expired during the year - - - -
Outstanding at the end of the year 2,514,976 5 2,630,000 5
Exercisable at the end of the year 46,147 5 - -
Weighted average remaining contractual life (in years) 3.3 - 4.2 -
Weighted average fair value of options granted (Rs) 369 337
Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:
Particulars March 31, 2022 March 31, 2021
Weighted Average Exercise Price 5 5
Expected volatility 33.0% to 36.2% 34.0% to 36.4%
Life of the options granted (vesting and exercise period) in years 4.03 5
Average risk-free interest rate 5.6% 5.3%
Expected dividend rate 0.6% 0.8%

Particulars March 31, 2022 March 31, 2021

Summary of movement in respect of shares held by ESOP Trust is as follows:
Opening balance 11,168,774 14,811,872
Add: Shares purchased by the ESOP trust - 244,474
Add: Shares issued by the Company 600,000
Less: Shares exercised by employees (4,248,459) (3,887,572)
Closing balance 7,520,315 11,168,774
Options granted and eligible for exercise at end of the year 1,410,475 1,339,461
Options granted but not eligible for exercise at end of the year 7,876,579 10,980,980
Summary of movement in respect of equity shares of Syngene held by the RSU Trust is as follows:
Opening balance 1,301,373 1,737,469
Less: Shares exercised by employees (122,640) (436,096)
Closing balance 1,178,733 1,301,373
Options granted and eligible for exercise at end of the year 58,797 49,873
Options granted but not eligible for exercise at end of the year 44,961 236,101
Summary of movement in respect of equity shares of BBIL held by the RSU Trust is as follows:
Opening balance 10,809,520 10,809,520
Add: Shares purchased by the RSU Trust from Biocon Limited - -
Closing balance 10,809,520 10,809,520
Options granted and eligible for exercise at end of the year - -
Options granted but not eligible for exercise at end of the year 7,003,007 8,514,615

234 | Annual Report 2021-22

 Biocon Limited

Particulars March 31, 2022 March 31, 2021

31. Earnings per share (EPS)
Earnings
Profit for the year 861 2,805
Shares
Basic outstanding shares 1,200,550,000 1,200,000,000
Less: Weighted average shares held with the ESOP Trust (9,475,319) (12,869,238)
Weighted average shares used for computing basic EPS 1,191,074,681 1,187,130,762
Add: Effect of dilutive options granted but not yet exercised/not yet eligible for exercise 5,276,990 9,630,143
Weighted average shares used for computing diluted EPS 1,196,351,671 1,196,760,905
Earnings per equity share:
Basic (in `) 0.72 2.36
Diluted (in `) 0.72 2.34

32. Related party transactions

List of related parties:
Particulars Nature of relationship
Key management personnel
Kiran Mazumdar Shaw Executive Chairperson
Siddharth Mittal Managing Director & Chief Executive Officer
Indranil Sen Chief Financial Officer (w.e.f April 28, 2021)
Interim Chief Financial Officer (w.e.f May 15, 2020 upto September 22, 2020)
Anupam Jindal Chief Financial Officer (w.e.f September 22, 2020 upto April 28, 2021)
Mayank Verma Company Secretary
Daniel Mark Bradbury Independent director
Mary Harney Independent director
Vijay Kumar Kuchroo Independent director
Meleveetil Damodaran Independent director
Bobby Kanubhai Parikh Independent director
Ravi Rasendra Mazumdar Non-executive director
Eric Vivek Mazumdar Non-executive director (w.e.f November 01, 2021)
John Shaw Non-executive director (upto July 23, 2021)
Subsidiaries
Syngene International Limited Subsidiary
Syngene USA Inc. Wholly-owned subsidiary of Syngene International Limited
Biocon Pharma Limited Wholly-owned subsidiary
Biocon Biologics Limited Subsidiary
(Formely known as Biocon Biologics India Limited)
Biocon Academy Wholly-owned subsidiary
Biocon SA Wholly-owned subsidiary
Biocon Biologics UK Limited Wholly-owned subsidiary of Biocon Biologics Limited
(Formely known as Biocon Biologics Limited)
Biocon FZ LLC Wholly-owned subsidiary
Biocon Biologics Healthcare Sdn Bhd Wholly-owned subsidiary of Biocon Biologics UK Limited
(Formely known as Biocon Healthcare Sdn Bhd)
Biocon Biosphere Limited Wholly-owned subsidiary
Bicara Therapeutics Inc. Subsidiary (Upto January 09, 2021)
Biocon Pharma Inc Wholly-owned subsidiary of Biocon Pharma Limited
Biocon Sdn.Bhd. Wholly-owned subsidiary of Biocon Biologics UK Limited
Biocon Pharma Ireland Limited Wholly-owned subsidiary of Biocon Pharma Limited

Metamorphosis | 235
Particulars Nature of relationship
Biocon Pharma UK Limited Wholly-owned subsidiary of Biocon Pharma Limited
Biocon Biologics Inc. USA Wholly-owned subsidiary of Biocon Biologics UK Limited
Biocon Biologics FZ LLC Wholly-owned subsidiary of Biocon Biologics UK Limited
Biocon Biologics Do Brasil Ltda Wholly-owned subsidiary of Biocon Biologics UK Limited
Biocon Pharma Malta Limited Wholly-owned subsidiary of Biocon Pharma Limited
Biocon Pharma Malta I Limited Wholly-owned subsidiary of Biocon Pharma Limited
Biofusion Therapeutics Limited Wholly-owned subsidiary
Associate
Bicara Therapeutics Inc. Associate (w.e.f. January 09, 2021)
Joint Ventures
NeoBiocon FZ LLC Joint-venture
Other related parties
Biocon Foundation Trust in which key management personnel are the Board of Trustees
Mazumdar Shaw Medical Foundation Trust in which key management personnel are the Board of Trustees
Glentec International Limited Enterprise owned by key management personnel
Narayana Hrudayalaya Limited Enterprise in which a director of the Company is a member of board of directors
Immuneel Therapeutics Private Limited Enterprise in which a director of the Company is a member of board of directors
Jeeves Enterprise in which relative to a director of the Company is proprietor
The Company has the following related parties transactions
Year ended Year ended
Particulars Transaction / Balances
March 31, 2022 March 31, 2021
Key Salary and perquisites [refer note (d) & (e) below] 82 101
management Sitting fees and commission 39 21
personnel
Outstanding as at the year end:
- Trade and other payables - 4
Subsidiaries Sale of goods/other products 2,676 1,907
Sales on behalf of a subsidiary - 164
Purchase on behalf of a subsidiary - 424
Rent income [refer note (b) below] 300 283
Cross charges towards facility and other expenses [refer note (a) &(b)] 2,562 1,851
Interest income 11 161
Expenses incurred on behalf of the related party 423 354
Guarantee income 45 42
Research services received 104 164
Purchase of goods 12 188
Capacity Reservation Fees - 450
Settlement Income 370 -
Professional charges 13 27
CSR expenditure 33 42
Expenses incurred by related party on behalf of the Company 25 30
Funding received towards Property, plant and equipment 53 610
Transfer of Capital work in progress 85 96
Transfer of Other intangible assets 12 16
Investment in preference shares 517 6,091
Redemption of preference shares - 5,000
Loans given/(repaid), net [refer note (g) below] 413 (2573)
Outstanding as at the year end:
- Trade and other receivables 3,892 2,897
- Trade and other payables 243 99
- Loans receivable [refer note (g) below] 413 -
Guarantee given on behalf of related party 3,398 14,087
Associate Cross charges towards facility and other expenses [refer note (a) &(b)] 105 102

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 Biocon Limited

Year ended Year ended

Particulars Transaction / Balances
March 31, 2022 March 31, 2021
Expenses incurred on behalf of the related party 10 -
Interest income - 2
Outstanding as at the year end:
- Trade and other receivables 449 328
- Provision for Expected credit loss 190 -
Joint venture Expenses incurred on behalf of the related party 1 1
Outstanding as at the year end:
- Trade and other receivables - -*
Other related CSR expenditure 37 24
parties Other expenses 20 19
Expenses towards Scientific and Research services 1 1
Outstanding as at the year end:
- Trade and other receivables 1 1
* Amounts are not presented since the amounts are rounded off to Rupees million.
(a) Expenses incurred on behalf of the related party include ESOP cost and amount paid on behalf of the related party to vendors.
(b) The Company’s SEZ Developer division has entered into agreements to lease land and provide certain facilities such as power, utilities etc. to
SEZ units of Biocon Biologics Limited, Biocon Pharma Limited and Syngene International Limited, in respect of which the Company recovers
rent and facilities usage charges.
(c) The above disclosures include related parties as per Ind AS 24 on “Related Party Disclosures” and Companies Act, 2013.
(d) The remuneration to key management personnel doesn’t include the provisions made for gratuity and compensated absences, as they are
obtained on an actuarial basis for the Company as a whole.
(e) Share based compensation expense allocable to key management personnel is ` 65 (March 31, 2021 - ` 71), which is not included in the
remuneration disclosed above.
(f) All transactions with these related parties are priced on an arm’s length basis and none of the balances are secured.
(g) The loans to related parties is presented net of repayments due to multiple transactions. Loans repaid includes loan subsequently converted
into preference shares. The loan given to subsidiaries are for Business purposes and interest rates are at arm’s length. The Loans are
payables on demand.

33. Tax expense

Year ended Year ended
March 31, 2022 March 31, 2021
(a) Amount recognised in Statement of profit and loss
Current tax 322 462
Deferred tax expense/(income) related to:
MAT credit utilisation/ (entitlement) 285 273
Origination and reversal of temporary differences: (71) 48
Tax expense for the year# 536 783
# Includes credit for reversal of tax provision for earlier years amounting to ` 278 for the year
ended March 31, 2021.
(b) Reconciliation of effective tax rate
Profit before tax 1,397 3,588
Tax at statutory income tax rate 34.94% (March 31, 2021 - 34.94%) 488 1,254
Tax effects of amounts which are not deductible/(taxable) in calculating taxable income:
Exempt income and other deductions (12) (200)
Non-deductible expense 24 23
Basis difference that will reverse during the tax holiday period 10 (13)
Reversal of provision for tax for earlier years - (278)
Others 26 (3)
Income tax expense 536 783

Metamorphosis | 237
(c) Recognised deferred tax assets and liabilities
The following is the movement of deferred tax assets/liabilities presented in the balance sheet
For the Year ended March 31, 2022 Opening Recognised Recognised Closing
balance in profit or loss in OCI balance
Deferred tax liabilities
Property, plant and equipment, investment property and intangible assets 485 13 - 498
Derivative liabilities 5 - 49 54
Gross deferred tax liabilities 490 13 49 552
Deferred tax assets
Defined benefit obligations 248 2 (8) 242
Allowance for doubtful debts 12 70 - 82
Other disallowable expenses 89 4 - 93
MAT credit entitlement 1,356 (285) - 1,071
Deferred revenue 32 (8) - 24
Others 217 16 8 240
Gross deferred tax assets 1,954 (201) - 1,752
Net deferred tax assets 1,464 (214) (49) 1,200

For the Year ended March 31, 2021 Opening Recognised Recognised Closing
balance in profit or loss in OCI balance
Deferred tax liability
Property, plant and equipment, investment property and intangible assets 468 17 - 485
Derivative liability - - 5 5
Gross deferred tax liability 468 17 5 490
Deferred tax assets
Defined benefit obligations 235 18 (5) 248
Derivative assets 11 - (11) -
Allowance for doubtful debts 12 - - 12
Other disallowable expenses 127 (38) - 89
MAT credit entitlement 1,629 (273) - 1,356
Deferred revenue 42 (10) - 32
Others 207 (1) 11 217
Gross deferred tax assets 2,263 (304) (5) 1,954
Net deferred tax assets 1,795 (321) (10) 1,464

34. Contingent liabilities and commitments

(to the extent not provided for)
Particulars March 31, 2022 March 31, 2021
(i) Contingent liabilities:
(a) Claims against the Company not acknowledged as debt 1,859 1,662
The above includes:
(i) Direct taxation 775 685
(ii) Indirect taxation (includes matters pertaining to disputes on central excise, custom duty, 736 629
service tax, VAT, CST, Entry tax and GST)
(iii) Other matters 348 348
The Company is subject to complexities with respect to various tax positions on deductibility of transactions and availability of tax incentives /
exemptions, impact of group restructuring and on cross border transfer pricing arrangements. Judgment is required in assessing the range of
possible outcomes for some of these tax matters, which could change over time as each of the matter progresses depending on experience on
actual assessment proceedings by tax authorities and other judicial precedents. Based on its internal assessment supported by external legal
counsel views, if any, the Company believes that it will be able to sustain its positions if challenged by the authorities and accordingly no additional
provision is required for these matters.
Other than the matter disclosed above, the Company is involved in disputes, lawsuits, proceedings etc. including patent and commercial matters
that arise from time to time in the ordinary course of business. Management is of the view that above matters are not tenable and will not have
any material adverse effect on the Company’s financial position and results of operations.

238 | Annual Report 2021-22

 Biocon Limited

Particulars March 31, 2022 March 31, 2021

(b) Guarantees:
(i) Corporate guarantees given in favour of the Central Excise Department in respect of certain
performance obligations of the subsidiaries
Syngene International Limited 148 148
(ii) Corporate guarantees given in favour of banks towards loans obtained by subsidiaries/step - 3,250 13,939
down subsidiaries
(ii) Commitments:
(a) Estimated amount of contracts remaining to be executed on capital account and not provided 1,126 1,747
for, net of advances

(b) During FY 2019-20, the Company and Biocon Biologics Limited had entered into an agreement with Active Pine LLP (‘Investor I) whereby
the Investor has infused ` 5,363 against issuance of equity shares of a subsidiary company, Biocon Biologics Limited. As per the agreement,
the Company will be required to provide various options to enable the Investor to exit over a period of time. In the event, such exit events
do not occur, the Investor may require the Company, to buy them out at certain prices agreed under the arrangement.
(c) During the previous year, the Company and Biocon Biologics Limited had entered into an agreement with Beta Oryx Limited, a wholly owned
subsidiary of ADQ (Investor II) whereby the Investor has infused ` 5,550 against issuance of equity shares of a subsidiary company, Biocon
Biologics Limited. As per the agreement, the Company will be required to provide various options to enable the Investor to exit over a period
of time. In the event, such exit events do not occur, the Investor may require the Company, to buy them out at certain prices agreed under
the arrangement.
(d) During the previous year, the Company and Biocon Biologics Limited has entered into an agreement with Tata Capital Growth Fund II
(Investor III) whereby the Investor has infused ` 2,250 against issuance of equity shares of a subsidiary company, Biocon Biologics Limited. As
per the agreement, the Company will be required to provide various options to enable the Investor to exit over a period of time. In the event,
such exit events do not occur, the Investor may require the Company, to buy them out at certain prices agreed under the arrangement.

35. Employee benefit plans

(i) The Company has a defined benefit gratuity plan as per the Payment of Gratuity Act, 1972. Under this legislation, employee who has
completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee’s length of service and
salary at retirement/termination age and does not have any maximum monetary limit for payments. The gratuity plan is a funded plan and
the Company makes contributions to a recognised fund in India.
The plans assets are maintained with HDFC Life in respect of gratuity scheme for certain employees of the Company. The details of
investments maintained by Life Insurance Corporation are not available with the Company, hence not disclosed. The expected rate of return
on plan assets is 6.1 % p.a. (31 March 2021: 5.8% p.a.).
The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial valuations involve
making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate,
future salary increases and mortality rate. Due to these complexity involved in the valuation it is highly sensitive to the changes in these
assumptions. All assumptions are reviewed at reporting date. The present value of the defined benefit obligation and the related current
service cost and planned service cost were measured using the projected unit cost method.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements
as at balance sheet date:

Present value Fair value of Net

Particulars of defined plan assets defined benefit
benefit obligation (asset)/liability
Balance as on April 01, 2021 355 (7) 348
Current service cost 35 - 35
Interest expense/(income) 19 -* 19
Amount recognised in Statement of profit and loss 54 -* 54
Liability transferred in/ Acquisitions 6 - 6
(Liability transferred out/ Divestments) (10) - (10)

Metamorphosis | 239
 Present value Fair value of Net
Particulars of defined plan assets defined benefit
benefit obligation (asset)/liability
Remeasurements:
Actuarial (gain)/loss arising from:
Financial assumptions (9) - (9)
Experience adjustment (13) - (13)
Amount recognised in other comprehensive income (22) - (22)
Employers contribution - - -
Benefits paid (41) - (41)
Balance as at March 31, 2022 342 (7) 335
Present value Fair value of Net
Particulars of defined plan assets defined benefit
benefit obligation (asset)/liability
Balance as on April 01, 2020 338 (41) 297
Current service cost 34 - 34
Interest expense/(income) 20 (2) 18
Amount recognised in Statement of profit and loss 54 (2) 52
Liability transferred in/ Acquisitions - - -
Liability transferred out/ Divestments - - -
Remeasurements:
Actuarial (gain)/loss arising from:
Financial assumptions 3 - 3
Experience adjustment (17) - (17)
Amount recognised in other comprehensive income (14) - (14)
Employers contribution - 36 36
Benefits paid (23) - (23)
Balance as at March 31, 2021 355 (7) 348

Particulars March 31, 2022 March 31, 2021

Non-current 256 263
Current 79 85
335 348
* Amounts are not presented since the amounts are rounded off to Rupees million.
(ii) The assumptions used for gratuity valuation are as below:
March 31, 2022 March 31, 2021
Interest rate 6.1% 5.8%
Discount rate 6.1% 5.6%
Expected return on plan assets 6.1% 5.8%
Salary increase 9.0% 9.0%
Attrition rate 14% - 30% 14% - 30%
Retirement age - Years 58 58

Assumptions regarding future mortality experience are set in accordance with published statistics and mortality tables as per IALM (2012-14)
The weighted average duration of the defined benefit obligation was 6 years (March 31, 2021 - 6 years).
The defined benefit plan exposes the Company to actuarial risks, such as longevity and interest rate risk.

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(iii) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions are as below:
Particulars March 31, 2022 March 31, 2021
Increase Decrease Increase Decrease
Discount rate (1% Change) (16) 18 (16) 19
Salary increase (1% Change) 18 (16) 18 (17)
Attrition rate (1% Change) (3) 4 (4) 4
S ensitivity of significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of
defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. Although the analysis does
not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the
sensitivity of the assumption shown.
As of March 31, 2022 and March 31, 2021, the plan assets have been invested in insurer managed funds and the expected
contribution to the fund during the year ending March 31, 2023, is approximately ` 64 (March 31, 2022 - ` 74).
Maturity profile of defined benefit obligation amount
Particulars March 31, 2022 March 31, 2021
1 Following year
st
64 74
2nd Following year 36 38
3rd Following year 37 35
4th Following year 34 33
5th Following year 30 33
Years 6 to 10 142 129
Years 11 and above 153 156
(iv) Risk Exposure
These defined benefit plans typically expose the Company to actuarial risks as under:
a) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
b) Interest rate risk: A decrease in bond interest rate will increase the plan liability.
c) Longevity risk: The present value of the defined plan liability is calculated by reference to the best estimate of the
mortality of plan participants. An increase in the life expectancy will increase the plan’s liability.
d) Salary risk: Higher than expected increase in salary will increase the defined benefit obligation.
(v) Other Long term benefits
Present value of other long term benefits (i.e. compensated absences) obligations at the end of the year
Particulars March 31, 2022 March 31, 2021
Compensated absences 169 170

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36. Financial instruments: Fair value and risk managements
A. Accounting classification and fair values
Carrying amount Fair value
March 31, 2022
FVTPL FVTOCI Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial assets
Non-current investments 22,472 30 27,676* 50,178 30 - 22,472# 22,502
Loans - - 413 413 - - - -
Current investments 72 - 2,550 2,622 72 - - 72
Trade receivables - - 7,006 7,006 - - - -
Cash and cash equivalent - - 1,110 1,110 - - - -
Other bank balances - - 5,783 5,783 - - - -
Other financial asset - 161 1,488 1,649 - 161 - 161
22,544 191 46,026 68,761 102 161 22,472 22,735
Financial liabilities
Lease liabilities - - 10 10 - - - -
Borrowings - - 759 759 - - - -
Trade payables - - 3,809 3,809 - - - -
Other financial liabilities 140 5 679 824 - 5 140 145
140 5 5,257 5,402 - 5 140 145

March 31, 2021 FVTPL FVTOCI Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial assets
Non-current investments 21,920 65 28,749* 50,734 65 - 21,920# 21,985
Current investments 1,343 - 2,050 3,393 1,343 - - 1,343
Trade receivables - - 6,054 6,054 - - - -
Cash and cash equivalents - - 2,535 2,535 - - - -
Other bank balances 3,477 3,477 - - - -
Other financial asset - 20 1,907 1,927 - 20 - 20
23,263 85 44,772 68,120 1,408 20 21,920 23,348
Financial liabilities
Lease liabilities - - 24 24 - - - -
Borrowings - - 7 7 - - - -
Trade payables - - 3,720 3,720 - - - -
Other financial liabilities 140 6 446 592 - 6 140 146
140 6 4,197 4,343 - 6 140 146
(a) The fair value of trade receivables, trade payables and other financial assets and liabilities is considered to be equal to the carrying amounts
of these items due to their short – term nature
(b) There have been no transfers between level 1, 2 and 3 needs to be made.
(c) The Company enters into derivative financial instruments with various counterparties. Derivatives are valued using valuation techniques
in consultation with market expert. The most frequently applied valuation technique include forward pricing, swap models and Black
Scholes Merton Model (for options valuation), using present value calculations. The models incorporate various inputs including foreign
exchange forward rates, interest rate curve and forward rates curve.
* Investment in equity shares in subsidiaries, associate and joint venture and investment in preference shares of associates has been accounted at
cost as per Ind AS 27 “Consolidated and Separate Financial Statements”.
# These includes investment in preference shares in subsidiaries which are convertible (variable number of equity shares) / redeemable, at its face
value, any time during the tenure of the instrument at the option of the holder. Owing to this feature, the instrument has been disclosed at its fair
value which is equivalent to the face value.

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B. Measurement of fair values

Fair value of liquid mutual funds are based on quoted price. Derivative financial instruments are valued based on quoted prices for similar
assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.
Sensitivity analysis
For the fair values of forward contracts of foreign currencies, reasonably possible changes at the reporting date to one of the significant
observable inputs, holding other inputs constant, would have the following effects in other comprehensive income (OCI).
March 31, 2022 March 31, 2021
Impact on other equity Impact on other equity
Increase Decrease Increase Decrease
Significant observable inputs
Spot rate of the foreign currency (1% movement) (12) 6 (8) 8
Interest rates (100 bps movement) 74 (74) - -
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk
- Liquidity risk
- Market risk
(i) Risk management framework
The Company’s risk management is carried out by the treasury department under policies approved by the Board of Directors. The
Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of derivative and non-derivative financial instruments and investment of excess liquidity.
(ii) Credit risk
Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to
financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks and financial institutions and other financial instruments.
Customer credit risk is managed by each business unit subject to Company’s established policy, procedures and control relating to
customer credit risk management. The Audit and Risk Management Committee has established a credit policy under which each new
customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions
are offered. The Company’s review includes external ratings, where available, and other publicly available financial information.
Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of
credit or other forms of credit insurance.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other
receivables. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to ` 7,006 (March
31, 2021: ` 6,054). The movement in allowance for impairment in respect of trade and other receivables during the year was as follows:
Allowance for Impairment March 31, 2022 March 31, 2021
Opening balance 34 34
Impairment loss recognised 201 8
Impairment loss reversed/transferred - (8)
Closing balance 235 34

Receivable from none of the customers of the Company is more than 10 percent of the Company’s total trade receivables as at March
31, 2022 (March 31, 2021 two customers - ` 2,321).
Refer note 12 for ageing of trade receivables.
Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.
Credit risk on cash and cash equivalent and derivatives is limited as the Company generally transacts with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies which are rated A+ or AAA.
Investments primarily include investment in liquid mutual fund units, bonds and non-convertible debentures.

Metamorphosis | 243
 (iii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company’s reputation.
The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.
The following are the contractual maturities of financial liabilities and excluding interest payments. The tables have been drawn up
based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay:
March 31, 2022
Particulars Less than 1 year 1 - 2 years 2-5 years More than 5 years Total
Borrowings - - 455 304 759
Trade payables 3,809 - - - 3,809
Other financial liabilities 683 1 140 - 824
Lease Liabilities 10 2 - - 12
Total 4,502 3 595 304 5,404
March 31, 2021
Particulars Less than 1 year 1 - 2 years 2-5 years More than 5 years Total
Borrowings 7 - - - 7
Trade payables 3,720 - - - 3,720
Other financial liabilities 448 4 140 - 592
Lease Liabilities 17 10 2 - 29
Total 4,192 14 142 - 4,348
(iv) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices, such as foreign exchange rates, interest rates and equity prices.
Foreign currency risk
The Company operates internationally and a major portion of the business is transacted in several currencies and consequently, the
Company is exposed to foreign exchange risk through operating and borrowing activities in foreign currency. The Company holds
derivative instruments such as foreign exchange forward, interest rate swaps and option contracts to mitigate the risk of changes in
exchange rates and foreign currency exposure.
The currency profile of financial assets and financial liabilities as at March 31, 2022 and March 31, 2021 are as below:
March 31, 2022 USD EUR Others Total
Financial assets
Trade receivables 2,717 294 1 3,012
Cash and cash equivalents 628 127 3 758
Other financial assets 227 _* - 227
Financial liabilities
Trade payables (615) (14) (42) (671)
Borrowings (759) - - (759)
Other financial liabilities (88) (10) (9) (107)
Net assets/(liabilities) 2,110 397 (47) 2,460

March 31, 2021 USD EUR Others Total

Financial assets
Trade receivables 2,275 230 12 2,517
Cash and cash equivalents 1,924 345 1 2,270
Other current financial assets 68 _* - 68
Financial liabilities
Trade payables (620) (83) (30) (733)
Other current financial liabilities (78) (6) - (84)
Net assets/(liabilities) 3,569 486 (17) 4,038

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 Biocon Limited

Sensitivity analysis
The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial instruments and the impact
on other components of equity arises from foreign exchange forward/option contracts designated as cash flow hedges.
Impact on profit or loss Impact on other
Particulars components of equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
USD Sensitivity
INR/USD - Increase by 1% 21 36 10 28
INR/USD - Decrease by 1% (21) (36) (15) (28)
EUR Sensitivity
INR/EUR - Increase by 1% 4 5 4 5
INR/EUR - Decrease by 1% (4) (5) (4) (5)
* Amounts are not presented since the amounts are rounded off to Rupees million.
Derivative financial instruments
The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business or financing
activities. The Company’s treasury team manages its foreign currency risk by hedging forecasted transactions like sales, purchases and capital
expenditures. When a derivative is entered for hedging, the Company matches the terms of those derivatives to the underlying exposure. All
identified exposures are managed as per the policy duly approved by the Board of Directors.
The following table gives details in respect of outstanding foreign exchange forward, option and interest rate swaps contracts:
(in Million)
Particulars March 31, 2022 March 31, 2021
Interest rate swaps used for hedging LIBOR component in External Commercial Borrowings USD 10 -
with periodical maturity dates between 0-6 Years
Foreign exchange forward contracts to sell USD maturity between 0-1 Years USD 12 USD 8
European style range forward contracts with periodical maturity dates between 0-2 Years USD 56 USD 57
Cash flow and fair value interest rate risk
The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate
risk. During the year ended March 31, 2022 the Company’s borrowings at variable rate were mainly denominated in USD.
(a) Interest rate risk exposure
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
Particulars March 31, 2022 March 31, 2021
Fixed rate borrowings 759 7
Total borrowings 759 7
(b) Sensitivity
The Company policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. They are
therefore not subject to interest rate risk as defined under Ind AS 107.
37. Capital management
The key objective of the Company’s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to
uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company focused on keeping strong
total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without
impacting the risk profile of the Company.
The Company’s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual dividends in future periods.
The amount of future dividends of equity shares will be balanced with efforts to continue to maintain an adequate liquidity status.
The capital structure as of March 31, 2022 and March 31, 2021 was as follows:
Particulars March 31, 2022 March 31, 2021
Total equity attributable to the equity shareholders of the Company 80,929 79,071
As a percentage of total capital 99% 100%
Borrowings 759 7
Total borrowings 759 7
As a percentage of total capital 1% 0%
Total capital (Equity and Borrowings) 81,688 79,078

Metamorphosis | 245
38. Lease
The Company has entered into lease agreements for use of land, buildings and vehicles which expires over a period ranging upto the year of 2117.
Gross payments for the year aggregate to ` 17.
The following is the movement in lease liabilities during the year ended March 31, 2022:
Particulars Land Buildings Vehicles Total
Balance as the beginning 2 - 22 24
Addition during the year - - - -
Finance cost accrued during the year 1 - 3 4
Disposals - - - -
Payment of lease liabilities (2) - (16) (18)
Balance as at March 31, 2022 1 - 9 10

Particulars Land Buildings Vehicles Total

Balance as the beginning 5 2 23 30
Addition during the year - - 15 15
Finance cost accrued during the year - - 4 4
Disposals - - (4) (4)
Payment of lease liabilities (3) (2) (16) (21)
Balance as at March 31, 2021 2 - 22 24

March 31, 2022 March 31, 2021

The following is the breakup of current and non current lease liability:
Current lease liabilities 9 12
Non current lease liabilities 1 12
10 24
The table below provides details regarding the contractual maturities of lease liabilities on an
undiscounted basis:
Less than one year 10 17
More than one less than five year 2 12
Total 12 29
The following are the amounts recognised in the statement of Profit or Loss :
Depreciation expenses on right of use-assets 13 16
Interest expenses on lease liabilities 4 4
Total amount recognised in Profit or loss 17 20

39. Segmental information

In accordance with Ind AS 108 - Operating segments, segment information has been provided in the consolidated financial statements of the
Company and therefore no separate disclosure on segment information is given in these standalone financial statements.

40. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net
profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.
Particulars In Cash Yet to be paid in cash Total
March 31, 2022
(i) Construction/acquisition of any asset* - - -
(ii) On purposes other than (i) above 70 - 70
70 - 70
March 31, 2021
(i) Construction/acquisition of any asset* 3 - 3
(ii) On purposes other than (i) above 63 - 63
66 - 66
* Not owned by the Company.

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 Biocon Limited

Particulars Year ended Year ended

March 31, 2022 March 31, 2021
Amount required to be spent by the Company during the year: 70 66
Amount of expenditure incurred 70 66
Shortfall at the end of the year - -
Total of previous years shortfall - -
Nature of CSR activities conducted by the company during year ended March 31, 2022 and March 31, 2021 are as follows:
1. Promoting Education
2. Mass Transit System
3. Lake Rejuvenation
4. Government School Construction
Refer Note 32 for details of related party transactions
41. 
The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing
legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to
be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into
with the associated enterprises during the financial year. The Company is required to update and put in place the information latest by the
due date of filing its income tax return. The management is of the opinion that its international transactions are at arm’s length so that the
aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for
tax.

42. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988).
(ii) The Company does not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section
560 of Companies Act, 1956 during the financial year.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company is not declared as wilful defaulter by any bank or financial institution or government or any government authority.

43. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Group to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Group (Ultimate Beneficiaries).
Further, The Group has not received any fund from any party(s) (Funding Party) with the understanding that the Group shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Group (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Metamorphosis | 247
44. Ratio Analysis and its elements
Ratio Numerator Denominator March 31, 2022 March 31, 2021 % change Reason for variance
Current ratio Current Assets Current Liabilities 4.07 3.94 3.11% -
Debt- Equity Ratio Total Debt Shareholder’s Equity 0.01 0.00 10493.92% Increased due to
debt obtained during
the current year.
Debt Earnings for debt service Debt service = Interest 51.95 137.29 -62.16% Profit after tax has reduced
Service Coverage ratio = Net profit after taxes & Lease Payments + in the current year.
+ Non-cash operating Principal Repayments
expenses + Interest
Return on Equity Net Profits after taxes – Average 1.08% 3.63% -70.37% Profit after tax has reduced
Preference Dividend Shareholder’s Equity in the current year.
Inventory Turnover ratio Cost of goods sold Average Inventory 1.66 1.65 0.53% -
Trade Net credit sales = Revenue Average Trade Receivable 2.66 3.44 -22.67%
Receivable Turnover Ratio from operations
Trade Net credit purchases Average Trade Payables 3.72 2.72 36.92% Increase in purchases
Payable Turnover Ratio = Purchases of traded during the current year.
goods + Purchases
of raw materials and
packing materials
+ other expenses
Net Capital Turnover Ratio Net sales = Total Average Working capital 1.01 1.36 -25.69% Decrease in sales during
sales - sales return = Current assets – the current year.
Current liabilities
Net Profit ratio Net Profit Net sales = Total 4.95% 13.83% -64.18% Profit after tax has reduced
sales - sales return in the current year.
Return on Earnings before Capital Employed = 1.75% 4.65% -62.40% Earnings before interest
Capital Employed interest and taxes Tangible Net Worth (Total and taxes has reduced in
equity - Intangibles assets) the current year.
+ Total Borrowings -
Deferred Tax Asset
Return on Investment Interest income on Average Investment in 5.00% 3.15% 58.76% Increased due to
deposits + Net gain deposits and mutual funds higher yields on
on mutual funds treasury investments.

45. In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The Company has adopted measures to curb the
spread of infection in order to protect the health of its employees and ensure business continuity with minimal disruption.
The Company has considered internal and external information while finalising various estimates in relation to its financial statement
captions upto the date of approval of the financial statements by the Board of Directors. The actual impact of the global health pandemic
may be different from that which has been estimated, as the COVID -19 situation evolves in India and globally. The Company will continue
to closely monitor any material changes to future economic conditions.
46. Events after reporting period
On April 28, 2022, the Board of Directors of the Company has proposed a final dividend of 10% i.e. ` 0.50 per equity share of face value
of ` 5/- each as on the record date for distribution of final dividend. The proposed dividend is subject to approval of the shareholders in the
ensuing Annual General Meeting of the Company. The dividend declared is in accordance with section 123 of the Act to the extent it applies
to declaration of dividend.
47. Previous period figures have been re-grouped/ re-classified wherever necessary, to confirm to current period’s classification in order to
comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective from April 1, 2021.
For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022

Sampad Guha Thakurta Kiran Mazumdar-Shaw Siddharth Mittal

Partner Executive Chairperson Managing Director & CEO
Membership No. 060573 DIN: 00347229 DIN: 03230757

Indranil Sen Mayank Verma

Chief Financial Officer Company Secretary
Bengaluru Bengaluru
April 28, 2022 April 28, 2022

248 | Annual Report 2021-22

 Biocon Limited & Subsidiaries

Independent Auditor’s Report

To the Members of Biocon Limited

Report on the Audit of the Consolidated Financial Statements

Opinion
We have audited the consolidated financial statements of Biocon Limited (hereinafter referred to as the “Holding Company”) and
its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its associates and its joint venture,
which comprise the consolidated balance sheet as at31 March 2022, and the consolidated statement of profit and loss (including
other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as “the consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration
of reports of other auditors on separate financial statements /financial information of such subsidiary and joint venture as were
audited by the other auditors, the aforesaid consolidated financial statements give the information required by the Companies Act,
2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted
in India, of the consolidated state of affairs of the Group, its associates and joint venture as at 31 March 2022, of its consolidated
profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our
responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group, its associates and joint venture in accordance with the
ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics
issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the
consideration of audit reports of the other auditors referred to in paragraph (a) of the “Other Matters” section below, is sufficient
and appropriate to provide a basis for our opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Metamorphosis | 249
Description of Key Audit Matter
Impairment of intangible assets under development and property, plant and equipment
The key audit matter How the matter was addressed in our audit
The Group has significant intangible assets under development Our audit procedures in relation to impairment testing includes
and property, plant and equipment where certain products are the following:
under development or in their early stage of commercialisation
in certain key developed markets as of 31 March 2022. • Tested the design and operating effectiveness of the Group’s
controls around the impairment testing;
As the products are yet to be launched or in their initial stages
of commercialisation, revenue and profitability are yet to • Evaluating assumptions used by the Company in assessing
reach its desired levels and hence, there is a risk of impairment the recoverability of assets - in particular, revenue and cash
in the event the carrying amount of the aforesaid assets are flow projections;
lower than its recoverable value. Company’s assessment of
recoverable value to test for impairment contains a number • Involving our valuation specialists to assist us in evaluating
of parameters which involve significant judgements and the valuation methodologies and assumptions used by the
estimates including weighted average cost of capital, revenue Company;
growth, expected market share and price erosion. Changes
in these assumptions could lead to an impairment to the • Evaluating Company’s assessment of key inputs by
carrying value of these assets. considering third party sources and the impact on future
cash inflows due to actions by competitors or changes in
Accordingly, we have focused our audit work in this area. relevant market conditions;

For further information on the carrying value of intangible • Inquired with the Company about potential impact of
assets and property, plant and equipment refer to: COVID-19 situation and its assessment of the likelihood of
delay in product approvals, thereby impacting valuation;
- Significant accounting policies which includes General
accounting principles, Key accounting judgements, • Evaluating the sensitivity analysis carried out by the
estimates and assumptions - Note 2(i), and Company in respect of certain key estimates to assess the
level of sensitivity to key assumptions.
- financial disclosures as disclosed in Intangible assets -
Note 4(a) of the Consolidated Financial Statements for
the year ended March 31, 2022.

Taxation
The key audit matter How the matter was addressed in our audit
The Group operates across different tax jurisdictions around the Our audit procedures in relation to Taxation include the
world and is subject to complexities with respect to various tax following:
positions on matters such as:
• Tested the design and operating effectiveness of the
- deductibility of transactions Group’s controls around the tax computation and tax
matters;
- availability of tax incentives / exemptions,
• We obtained an understanding of the key uncertain tax
- cross border transfer pricing arrangements etc. positions based on list of ongoing litigations and tax
computations for the current year;
Judgment is required in assessing the range of possible
outcomes for some of these tax matters. These judgments • We analysed select key correspondences with the tax
could change over time as each of the matter progresses authorities to identify any additional uncertain tax
depending on experience on actual assessment proceedings by positions;
tax authorities and other judicial precedents.
• We analysed the Company’s judgment regarding the
The Company makes an assessment to determine the outcome eventual resolution of matters with various tax authorities.
of these uncertain tax positions and decides to make an accrual In this regard, we understood how the Company has
or consider it to be a possible contingent liability. considered past experience, where available, with the tax
authorities in the respective jurisdictions;

250 | Annual Report 2022

 Biocon Limited & Subsidiaries

Taxation
The key audit matter How the matter was addressed in our audit
Where the amount of tax liabilities are uncertain, the Group • We also considered external legal opinions and
recognizes accruals which reflect its best estimate of the consultations made by the Company for key matters
outcome based on the facts known in the relevant jurisdiction. during current and past periods;
Accordingly, we focused on this area.
• We used our own tax specialists’ expertise to assess key
The Group also has significant deferred tax assets in a assumptions made by the Company;
subsidiary primarily comprising of Minimum Alternate Tax
• With respect to our assessment of recoverability of MAT,
(‘MAT’) entitlement credits on account of tax holiday benefits,
our audit procedures included:
which would expire over a period of 15 years. Assessment of
recoverability of such MAT credits require Group to prepare - Assessing the revenue and profit forecast against the
forecasts for future profitability and potential tax liabilities, historical performance and assessing the relevant
which involves significant judgment and accordingly was an component’s plans with respect to new undertakings
area of focus for us. being setup having tax holiday benefits; and
For further information refer to: - Assessing the sensitivity of key assumptions including the
growth rate and tax holiday benefit for future years on the
- the Significant accounting policies which includes General
ability to utilize the MAT credits.
accounting principles, Key accounting judgements,
estimates and assumptions - Note 2(n) and
- financial disclosures set out in Note 38 for Tax expense
and Note 34 for contingent liabilities in the Consolidated
Financial Statements for the year ended March 31, 2022.

Financial instrument- hedge accounting

The key audit matter How the matter was addressed in our audit
The Group enters into forward, option and interest rate swap Our audit procedures in relation to hedge accounting include the
contracts to hedge its foreign exchange and interest rate following, amongst others:
risks. Foreign exchange risks arise from sales to customers
• Tested the design and operating effectiveness of the Group’s
as significant part of its revenues are denominated in foreign
controls around hedge accounting;
currency with most of the costs denominated in Indian Rupees
(INR). Foreign exchange risks also arise from foreign currency • We involved our internal valuation specialists to assess the
borrowings. The interest rate risks arises from the variable rate fair value of the derivatives by testing sample contracts.
of interest on its foreign currency borrowings.
• We analyzed critical terms (such as nominal amount,
The Group designates a significant portion of its derivatives as maturity and underlying) of the hedging instrument and
cash flow hedges of highly probable forecasted transactions. the hedged item to assess they are closely aligned.
Derivative financial instruments are recognized at their fair
• We analysed the revised estimate of highly probable
value as of the balance sheet date on the basis of valuation
forecasted transactions and tested the impact of ineffective
report obtained from third party specialists. Basis such
hedges.
valuations, effective portion of derivative movements are
recognized within equity. • We challenged Company’s assertion relating to its ability to
meet its forecasts on account of COVID-19, to be able to
These matters are of importance to our audit due to
assert that hedge accounting can be continued by analysing
complexity in the valuation of derivative contracts and complex
various scenarios to conclude there was no significant
accounting and documentation requirements under Ind AS
impact on the year-end financial statements.
109: “Financial Instruments”. COVID-19 has an impact on
operations and thereby impacted Group’s estimates relating
to occurrence of the highly probable forecasted transactions.
A hedging relationship can no longer be continued if the
Company concludes forecasted transactions are not likely
to occur. Given the uncertainties relating to COVID-19,
judgments and estimates relating to hedge accounting were
inherently complex.
Refer Note 2(c) and 36 to the Consolidated Financial
Statements

Metamorphosis | 251
 Revenue and receivables
The key audit matter How the matter was addressed in our audit
Revenue from sale of goods is recognised when a promise Our audit procedures in relation to revenue recognition includes
in a customer contract (performance obligation) has been the following:
satisfied by transferring control over the promised goods to the
customer. • Assessed the appropriateness of the Group’s revenue
recognition accounting policies and assessed compliance
Control is usually transferred upon shipment, delivery to certain with the policies in terms of applicable accounting
named location, or upon receipt of goods by the customer, standards.
in accordance with the delivery and acceptance terms agreed
with the customers and other terms generally recognised • Tested the design and operating effectiveness of the
under internationally accepted commercial arrangements. Group’s controls around revenue recognition.
Additionally under certain bill and hold arrangements revenues
are recognised based on specific requests from the customer to • Performed substantive testing (including year-end cutoff
invoice certain goods pending deliveries at period end based on testing) by selecting samples of revenue transactions
the specific criteria as required under IndAS 115: Revenue from recorded during the year and verifying the underlying
Contracts with Customers. The Group also recognises revenues documents, which includes sales invoices/contracts and
from certain profit-sharing arrangements which requires shipping documents.
the Group to make certain estimates based on information
received from its customers which in certain instances involves • For bill and hold arrangements substantively tested the
judgments. The amount of revenue to be recognised is based specific requests from customers at the period end to
on the consideration expected to be received in exchange evaluate transfer of control.
for goods, excluding trade discounts, volume discounts, sales
returns and any taxes or duties collected on behalf of the • For revenue from profit share arrangements we
government which are levied on sales such as sales tax, value verified communications from customers and other
added tax, goods and services tax etc., where applicable. correspondences to assess the amounts to be recognised
at period end.
Revenue is one of the key performance indicators of the Group
and there could be a risk that revenue is recognized in the • Assessing journal entries posted to revenue to identify
incorrect period or before the control has been transferred to unusual items not already covered by our audit testing
the customer.
• Evaluated management’s assessment of the impact on
Further, the Company has significant trade receivables at year revenue recognition and consequential impact on the
end including certain balances with related parties. Given the expected credit loss allowance on receivables.
size of the balances and the risk of some of the trade receivables
not being recoverable, judgment is required to evaluate the
adequacy of allowance recorded to reflect the risk.

Refer to Note 2(l) of the summary of significant accounting

policies to the consolidated financial statements

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon
The Holding Company’s Management and Board of Directors are responsible for the other information. The other information
comprises of Management Reports such as Board Reports, Management Discussion and Analysis, Corporate Governance Report
and Business Responsibility Report (but does not include the consolidated financial statements and our Auditors’ Report thereon)
which we obtained prior to the date of this Auditor’s Report and the remaining section of the Annual Report, which are expected
to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.

252 | Annual Report 2022

 Biocon Limited & Subsidiaries

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this Auditor’s Report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.

When we read the other sections of Annual Report (other than those mentioned above), if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions,
as applicable under the applicable laws and regulations.

Management’s and Board of Directors’ Responsibilities for the Consolidated Financial Statements
The Holding Company’s Management and Board of Directors are responsible for the preparation and presentation of these
consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of
affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity and consolidated
cash flows of the Group including its associates and joint venture in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and
Board of Directors of the companies included in the Group and of its associates and joint venture are responsible for maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for
preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial
statements by the Management and Board of Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors of the companies included
in the Group and of its associates and joint venture are responsible for assessing the ability of each company to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

The respective Board of Directors of the companies included in the Group and of its associates and joint venture are responsible
for overseeing the financial reporting process of each company.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.

Metamorphosis | 253
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in
preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group
and its associates and joint venture to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial statements/financial information of such entities or
business activities within the Group and its associates and joint venture to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the audit of the financial statements/
financial information of such entities included in the consolidated financial statements of which we are the independent
auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors,
such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We
remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the
section titled “Other Matters” in this audit report.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated
financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters
(a) We did not audit the financial statements / financial information of a subsidiary, whose financial statements/financial
information reflect total assets (before consolidation adjustments) of ` 34,644 million as at 31 March 2022, total revenues
(before consolidation adjustments) of ` 7,867 million and net cash flows (before consolidation adjustments) amounting to
` 106 million for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial
statements also include the Group’s share of net loss (and other comprehensive income) of ` 39 million for the year ended
31 March 2022, in respect of a joint venture, whose financial statements/financial information have not been audited by us.
These financial statements/financial information have been audited by other auditors whose reports have been furnished to
us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and
disclosures included in respect of these subsidiary and joint venture, and our report in terms of sub-section (3) of Section 143

254 | Annual Report 2022

 Biocon Limited & Subsidiaries

of the Act, in so far as it relates to the aforesaid subsidiary and joint venture is based solely on the reports of the other auditors.

This subsidiary and joint venture are located outside India whose financial statements and other financial information have
been prepared in accordance with accounting principles generally accepted in their respective countries and which have been
audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding
Company’s management has converted the financial statements/financial information of such subsidiary and joint venture
located outside India from accounting principles generally accepted in their respective countries to accounting principles
generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management.
Our opinion in so far as it relates to the balances and affairs of such subsidiary and joint venture located outside India is based
on the reports of other auditors and the conversion adjustments prepared by the management of the Holding Company and
audited by us.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below,
is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other
auditors.

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in
terms of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.

2 (A) As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other
auditors on separate financial statements of such subsidiary and joint venture as were audited by other auditors, as
noted in the “Other Matters” paragraph, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.

b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books and the reports
of the other auditors.

c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive
income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt
with by this Report are in agreement with the relevant books of account maintained for the purpose of
preparation of the consolidated financial statements.

d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section
133 of the Act.

e) On the basis of the written representations received from the directors of the Holding Company as on 31
March 2022 taken on record by the Board of Directors of the Holding Company and the reports of the statutory
auditors of its subsidiary companies incorporated in India, none of the directors of the Group companies
incorporated in India is disqualified as on 31 March 2022 from being appointed as a director in terms of
Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to financial statements of the
Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such
controls, refer to our separate Report in “Annexure B”.

B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us and based on the consideration of the reports of the other auditors on separate
financial statements of a subsidiary and a joint venture, as noted in the “Other Matters” paragraph:

a) The consolidated financial statements disclose the impact of pending litigations as at 31 March 2022 on the
consolidated financial position of the Group, its associates and joint venture. Refer Note 34 to the consolidated
financial statements.

Metamorphosis | 255
 b) Provision has been made in the consolidated financial statements, as required under the applicable law or Ind
AS, for material foreseeable losses, on long-term contracts including derivative contracts. Refer Note 36 to the
consolidated financial statements in respect of such items as it relates to the Group, its associates and joint
venture.

c) There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding
Company or its subsidiary companies incorporated in India during the year ended 31 March 2022.

d) (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note
45 to the consolidated financial statements, no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company
or its subsidiary companies incorporated in India to or in any other persons or entities, including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Holding Company or its subsidiary companies
incorporated in India or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the Note
45 to the consolidated financial statements, no funds have been received by the Holding Company or
its subsidiary companies incorporated in India from any persons or entities, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding
Company or its subsidiary companies incorporated in India shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and
(d) (ii) contain any material mis-statement.

e) As stated in Note 47 to the consolidated financial statements, the Board of Directors of the Holding Company
and a subsidiary company incorporated in India has proposed final dividend for the year which is subject to the
approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with
section 123 of the Act to the extent it applies to declaration of dividend.

C. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid during the
current year by the Holding Company and its subsidiary companies which are incorporated in India to its directors is
in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Holding
Company and its subsidiary companies are not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required
to be commented upon by us.

for B S R & Co. LLP

Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Place: Bangalore Membership Number: 060573
Date: 28 April 2022 UDIN: 22060573AIAOXY1686

256 | Annual Report 2022

 Biocon Limited & Subsidiaries

Annexure A to the Independent Auditors’ Report

With reference to the Annexure A referred to in the Independent Auditor’s Report to the members of the Company on the
consolidated financial statements for the year ended 31 March 2022, we report the following:

xxi. In our opinion and according to the information and explanations given to us, following companies incorporated in India
and included in the consolidated financial statements, have unfavourable remarks, qualifications or adverse remarks given by the
respective auditors in their reports under the Companies (Auditor’s Report) Order, 2020 (CARO):

Sr. Name of the entities CIN Holding Company/ Clause number of the
No. Subsidiary/ JV/ CARO report which
Associate is unfavourable or
qualified or adverse
1 Biocon Limited L24234KA1978PLC003417 Holding Company 3(i)(c)
2 Biocon Pharma Limited U24232KA2014PLC077036 Subsidiary 3(xvii)
3 Biocon Biosphere Limited U24304KA2019PLC130965 Subsidiary 3(ix)(d); 3(xvii)
4 Biofusion Therapeutics Limited U73100KA2021PLC145487 Subsidiary 3(ix)(d)

for B S R & Co. LLP

Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Place: Bangalore Membership Number: 060573
Date: 28 April 2022 UDIN: 22060573AIAOXY1686

Metamorphosis | 257
Annexure B to the Independent Auditors’ report on the consolidated financial statements of Biocon Limited
for the year ended 31 March 2022
Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013

(Referred to in paragraph 2 (A) (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Opinion
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended 31 March 2022,
we have audited the internal financial controls with reference to consolidated financial statements of Biocon Limited (hereinafter
referred to as “the Holding Company”) and such companies incorporated in India under the Companies Act, 2013 which are its
subsidiary companies as of that date.

In our opinion, the Holding Company and such companies incorporated in India which are its subsidiary companies, have, in
all material respects, adequate internal financial controls with reference to consolidated financial statements and such internal
financial controls were operating effectively as at 31 March 2022, based on the internal financial controls with reference to
consolidated financial statements criteria established by such companies considering the essential components of such internal
controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (the “Guidance Note”).

Management’s Responsibility for Internal Financial Controls

The respective Company’s management and the Board of Directors are responsible for establishing and maintaining internal
financial controls with reference to consolidated financial statements based on the criteria established by the respective Company
considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as “the Act”).

Auditors’ Responsibility
Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial statements based
on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under
section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to consolidated financial
statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial
statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with
reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with
reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference
to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of the internal controls based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
internal financial controls with reference to consolidated financial statements.

Meaning of Internal Financial controls with reference to Consolidated Financial Statements

A company’s internal financial controls with reference to consolidated financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to consolidated
financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable

258 | Annual Report 2022

 Biocon Limited & Subsidiaries

detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including
the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial
statements to future periods are subject to the risk that the internal financial controls with reference to consolidated financial
statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

for B S R & Co. LLP

Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Sampad Guha Thakurta

Partner
Place: Bangalore Membership Number: 060573
Date: 28 April 2022 UDIN: 22060573AIAOXY1686

Metamorphosis | 259
CONSOLIDATED Balance Sheet as at March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Note As at As at
No. March 31, 2022 March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment 3 56,767 55,573
Capital work-in-progress 3 34,203 22,535
Right-of-use assets 4 (b) 2,673 1,533
Goodwill 4 (a) 264 264
Other intangible assets 4 (a) 5,986 6,269
Intangible assets under development 4 (a) 6,901 5,467
Investment in associates and a joint venture 39 (d) 80 1,795
Financial assets
(i) Investments 5 3,622 5,637
(ii) Derivative assets 1,468 656
(iii) Other financial assets 6(a)(i) 454 2,009
Income-tax assets (net) 3,135 2,648
Deferred tax assets (net) 7 2,933 3,077
Other non-current assets 8(a) 1,631 1,756
Total non-current assets 1,20,117 1,09,219
Current assets
Inventories 9 22,982 18,666
Financial assets
(i) Investments 10 12,177 12,087
(ii) Trade receivables 11 20,582 15,033
(iii) Cash and cash equivalents 12 6,630 9,531
(iv) Bank balances other than (iii) above 12 10,845 10,623
(v) Derivative assets 1,223 833
(vi) Loans 6(b) 671 -
(vi) Other financial assets 6(a)(ii) 4,506 5,071
Other current assets 8(b) 4,207 3,638
Assets classified as held for sale 42 - 522
Total Current Assets 83,823 76,004
Total Assets 2,03,940 1,85,223
EQUITY AND LIABILITIES
EQUITY
Equity share capital 13(a) 6,003 6,000
Other equity 13(b) 78,322 70,269
Equity attributable to owners of the Company 84,325 76,269
Non-controlling interests 10,375 8,807
Total equity 94,700 85,076
Non-current liabilities
Financial liabilities
(i) Borrowings 14 39,985 29,616
(ii) Lease liabilities 15 2,215 1,141
(iii) Derivative liabilities 136 618
(iv) Other financial liabilities 16(a) 15,033 15,033
Provisions 17(a) 917 1,062
Deferred tax liabilities (net) 7 523 323
Other non-current liabilities 18(a) 12,151 10,253
Total non-current liabilities 70,960 58,046
Current liabilities
Financial liabilities
(i) Borrowings 19 9,055 13,970
(ii) Lease liabilities 15 211 84
(iii) Trade payables 20
- total outstanding dues of micro and small enterprises 1,036 770
- total outstanding dues of creditors other than micro and small enterprises 15,049 14,369
(iv) Derivative liabilities 124 260
(v) Other financial liabilities 16(b) 3,632 3,816
Provisions 17(b) 1,305 1,094
Current tax liabilities, net 1,618 1,524
Other current liabilities 18(b) 6,250 5,810
Liabilities directly associated with assets classified as held for sale 42 - 404
Total current liabilities 38,280 42,101
Total 2,03,940 1,85,223
The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022 Kiran Mazumdar-Shaw Siddharth Mittal
Executive Chairperson Managing Director & CEO
DIN: 00347229 DIN: 03230757
Sampad Guha Thakurta
Partner Indranil Sen Mayank Verma
Membership No. 060573 Chief Financial Officer Company Secretary

Bengaluru Bengaluru
April 28, 2022 April 28, 2022
260 | Annual Report 2022
 Biocon Limited & Subsidiaries

CONSOLIDATED Statement of Profit and Loss for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

Note Year ended Year ended

No. March 31, 2022 March 31, 2021

Income
Revenue from operations 21 81,840 71,431
Other income 22 2,127 2,545
Total income (I) 83,967 73,976

Expenses
Cost of materials consumed 23 28,139 24,302
Purchases of stock-in-trade 1,611 1,036
Changes in inventories of finished goods, work-in-progress and stock-in-trade 24 (2,566) (2,901)
Employee benefits expense 25 18,801 17,410
Finance costs 26 676 577
Depreciation and amortisation expense 27 8,142 7,151
Other expenses 28 20,917 18,563
75,720 66,138
Less: Recovery of cost from co-development partners (net) (4,764) (3,507)
Total expenses (II) 70,956 62,631
Profit before tax, share of profit/(loss) of joint venture and associate and exceptional items (I-II) 13,011 11,345
Share of loss of joint venture and associates, net (2,069) (794)
Profit before tax and exceptional items 10,942 10,551
Exceptional items, net 32 (1,111) 126
Profit before tax 9,831 10,677
Tax expense
Current tax 38 2,204 1,966
Deferred tax (credit) / charge
MAT credit utilised/(entitlement), net 235 (259)
Other deferred tax (324) 508
Total tax expense 2,115 2,215
Profit for the year 7,716 8,462

Other comprehensive income (OCI)

(i) Items that will not be reclassified subsequently to profit or loss

Re-measurement on defined benefit plans 103 (20)

Equity instruments through OCI (736) 731
Income tax effect 75 (48)
(558) 663
(ii) Items that may be reclassified subsequently to profit or loss

Effective portion of gains/ (losses) on hedging instrument in cash flow hedges 1,410 2,013
Exchange difference on translation of foreign operations 717 (171)
Income tax effect (467) (360)
1,660 1,482
Other comprehensive income for the year, net of taxes 1,102 2,145

Total comprehensive income for the year 8,818 10,607

Profit attributable to:
Shareholders of the Company 6,484 7,405
Non-controlling interests 1,232 1,057
Profit for the year 7,716 8,462
Other comprehensive income attributable to:
Shareholders of the Company 967 1,582
Non-controlling interests 135 563
Other comprehensive income for the year 1,102 2,145
Total comprehensive income attributable to:
Shareholders of the Company 7,451 8,987
Non-controlling interests 1,367 1,620
Total comprehensive income for the year 8,818 10,607
Earnings per equity share 31
Basic (in `) 5.44 6.24
Diluted (in `) 5.42 6.19
The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022 Kiran Mazumdar-Shaw Siddharth Mittal
Executive Chairperson Managing Director & CEO
DIN: 00347229 DIN: 03230757
Sampad Guha Thakurta
Partner Indranil Sen Mayank Verma
Membership No. 060573 Chief Financial Officer Company Secretary

Bengaluru Bengaluru
April 28, 2022 April 28, 2022

Metamorphosis | 261
262
CONSOLIDATED Statement of Changes in Equity for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
(A) Equity share capital As at As at
March 31, 2022 March 31, 2021
Opening balance 6,000 6,000
Issued during the year 3 -

| Annual Report 2022

Closing balance 6,003 6,000

(B) Other equity

Attributable to owners of the Company
Reserves and surplus Items of other comprehensive income
Particulars Securities Equity portion Revaluation Debenture Capital Capital General Retained SEZ
Share Foreign Other items Total Non-
premium of optionally reserve redemption redemption reserve reserve earnings Re-investment Cash flow
based Treasury currency of other other controlling Total
convertible reserve reserve reserve hedging
payment shares translation comprehensive equity interests
debentures reserves
reserve reserve income
[refer note 14 (I)]
Balance at April 01, 2020 238 - 9 - - 801 1,617 59,141 - 1,088 (1,345) 2,186 (1,290) (1,387) 61,058 6,773 67,831
Profit for the year - - - - - 7,405 - - - - - - 7,405 1,057 8,462
Other comprehensive income, net of tax - - - - - - - - - - (171) 1,083 670 1,582 563 2,145
Total comprehensive income for the year - - - - - - - 7,405 - - - (171) 1,083 670 8,987 1,620 10,607
Transfer to Special Economic Zone ('SEZ') re-investment reserve - - - - - - - (2,362) 2,362 - - - - - - - -
Transfer from SEZ re-investment reserve on utilisation - - - - - - - 2,362 (2,362) - - - - - - - -
Transactions with Owners directly recorded in equity:
Share based payment - - - - - - - - - 1,062 - - - - 1,062 - 1,062
Loss of control in subsidiary - - - - - - - - - - - - - - - 188 188
Purchase of treasury shares - - - - - - - - - - (93) - - (93) - (93)
Change in fair value of gross liability on written put options - - - - - - - (1,871) - - - - - - (1,871) - (1,871)
Equity component of optionally convertible debentures - 959 - - - - - - - - - - - - 959 - 959
Transfer to capital redemption reserve - - - - 1,292 - - (1,292) - - - - - - - - -
Transfer to debenture redemption reserve - - - 1,325 - - - (1,325) - - - - - - - - -
Exercise of share options 381 - - - - - - 300 - (609) 95 - - - 167 226 393
Balance at March 31, 2021 619 959 9 1,325 1,292 801 1,617 62,358 - 1,541 (1,343) 2,015 (207) (717) 70,269 8,807 79,076
Profit for the year - - - - - 6,484 - - - - - - 6,484 1,232 7,716
Other comprehensive income, net of tax - - - - - - - - - - 717 786 (536) 967 135 1,102
Total comprehensive income for the year - - - - - - - 6,484 - - - 717 786 (536) 7,451 1,367 8,818
Transfer to Special Economic Zone ('SEZ') re-investment reserve - - - - - - - (1,603) 1,603 - - - - - - - -
Transfer from SEZ re-investment reserve on utilisation - - - - - - - 1,603 (1,603) - - - - - - - -
Transactions with Owners directly recorded in equity:
Share based payment - - - - - - - - - 1,257 - - - - 1,257 - 1,257
Purchase of treasury shares - - - - - - - - - - (3) - - - (3) - (3)
Modification impact of OCD [refer note 14 (l)] - (959) 60 - - - - - - (899) - (899)
Transfer to debenture redemption reserve - - - 38 - - - (38) - - - - - - - - -
Exercise of share options 573 - - - - - - (591) - (757) 1,022 - - - 247 201 448
Balance at March 31, 2022 1,192 - 9 1,363 1,292 801 1,617 68,273 - 2,041 (324) 2,732 579 (1,253) 78,322 10,375 88,697
The accompanying notes are an integral part of the Consolidated financial statements.
As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022 Kiran Mazumdar-Shaw Siddharth Mittal
Executive Chairperson Managing Director & CEO
DIN: 00347229 DIN: 03230757
Sampad Guha Thakurta
Partner Indranil Sen Mayank Verma
Membership No. 060573 Chief Financial Officer Company Secretary

Bengaluru Bengaluru
April 28, 2022 April 28, 2022
 Biocon Limited & Subsidiaries

Statement of Consolidated Cash Flows for the year ended

March 31, 2022

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Particulars March 31, 2022 March 31, 2021
I Cash flows from operating activities
Profit for the year 7,716 8,462
Adjustments to reconcile profit for the year to net cash flows
Depreciation and amortisation expense 8,142 7,151
Tax expense 2,115 2,215
Unrealised foreign exchange loss 86 9
Share-based compensation expense 1,257 1,060
Provision/(reversal) of doubtful debts, net 240 -
Bad debts written off 8 17
Interest expense 676 577
Interest income (1,121) (770)
Net loss/(gain) on financial assets measured at fair value through profit or loss 286 (29)
Net gain on sale of current investments (133) (84)
Loss on sale of property, plant and equipment (net) 23 73
Gain on dilution of interest in a associate / subsidiary (299) (1,597)
Share of loss of joint venture/ associates 2,069 794
Proceeds from insurance company 105 245
Exceptional items, net 1,111 (350)
Operating profit before changes in operating assets and liabilities 22,281 17,773
Movement in operating assets and liabilities
(Increase) in inventories (4,140) (4,454)
(Increase) in trade receivables (4,736) (2,788)
(Increase) in other assets (637) (98)
Increase in trade payable, other liabilities and provisions 1,618 3,102
Cash generated from operations 14,386 13,535
Income taxes paid (net of refunds) (2,620) (1,938)
Net cash flow generated from operating activities 11,766 11,597
II Cash flows from investing activities
Purchase of property, plant and equipment (16,978) (15,169)
Payment of intangible assets (2,270) (2,294)
Proceeds from sale of property, plant and equipment 21 96
Purchase of investments (43,020) (68,433)
Proceeds from sale of current investments 46,456 62,763
Investment in bank deposits and inter-corporate deposits (34,916) (28,559)
Redemption/ maturity of bank deposits and inter-corporate deposits 33,794 15,717
Decrease in cash arising from loss of control - (1,020)
Loan given to associate (674) -
Interest received 596 652
Net cash flow used in investing activities (16,991) (36,247)
III Cash flows from financing activities
Purchase of treasury shares (3) (93)
Proceeds from exercise of share options 428 407
Proceeds from issuance of shares by subsidiary, net of expense - 7,663

Metamorphosis | 263
Statement of Cash Flows for the year ended March 31, 2022
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)
Particulars March 31, 2022 March 31, 2021
Proceeds from issuance of non convertible debentures by subsidiary - 2,000
Proceeds from issuance of optionally convertible debentures by subsidiary - 11,016
Proceeds from non- current borrowings 10,701 13,553
Repayment of non- current borrowings (10,949) (7,336)
Proceeds/ (Repayment) of current borrowings (net) 3,461 (345)
Repayment of lease liabilities, net (121) (65)
Interest paid (1,096) (1,160)
Net cash flow generated from financing activities 2,421 25,640
IV Net (decrease)/ increase in cash and cash equivalents (I + II + III) (2,804) 990
V Effect of exchange differences on cash and cash equivalents held in foreign currency 33 71
VI Cash and cash equivalents at the beginning of the year 8,970 8,247
VII Cash and cash equivalents classified as held for sale 338 (338)
VIII Cash and cash equivalents at the end of the year (IV + V + VI + VII) 6,537 8,970

Reconciliation of cash and cash equivalents as per statement of cash flows

Cash and cash equivalents [note 12]

Balances with banks - on current accounts 6,326 9,372
Balances with Banks - on unpaid dividend accounts* 4 5
Deposits with original maturity of less than 3 months 300 154
6,630 9,531
Cash credits [note 19] (93) (561)
Balance as per statement of cash flows 6,537 8,970
*The Group can utilize these balances only towards settlement of the respective unpaid dividend liabilities.
Reconciliation between opening and closing balance sheet for liabilities arising from financing activities as at March 31, 2022
Particulars Opening balance Cash flows Non-cash Closing balance
April 1, 2021 movement March 31, 2022
Non- current borrowings (including current maturities) 37,644 (248) 2,684 40,080
Current borrowings 5,381 3,461 25 8,867
Interest accrued but not due 125 (1,096) 1,111 140
Total liabilities from financing activities 43,150 2,117 3,820 49,087

Reconciliation between opening and closing balance sheet for liabilities arising from financing activities as at March 31, 2021
Particulars Opening balance Cash flows Non -cash Closing balance
April 1, 2020 movement ^ March 31, 2021
Non- current borrowings (including current maturities) 19,578 19,233 (1,167) 37,644
Current borrowings 5,822 (345) (96) 5,381
Interest accrued but not due 14 (1,160) 1,271 125
Total liabilities from financing activities 25,414 17,728 8 43,150
^ includes equity component of Optionally convertible debentures (“OCD”) amounting to ` 959. [Refer note 14 (l)]
The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022 Kiran Mazumdar-Shaw Siddharth Mittal
Executive Chairperson Managing Director & CEO
DIN: 00347229 DIN: 03230757
Sampad Guha Thakurta
Partner Indranil Sen Mayank Verma
Membership No. 060573 Chief Financial Officer Company Secretary

Bengaluru Bengaluru
April 28, 2022 April 28, 2022

264 | Annual Report 2022

 Biocon Limited & Subsidiaries

Notes to the Consolidated Financial Statements

for the year ended March 31, 2022

1. Company Overview
1.1 Reporting entity
Biocon Limited (“Biocon” or the “parent company” or “the Company”), together with its subsidiaries, joint venture and
associates (collectively, the “Group”) is engaged in the manufacture of biotechnology products and research services. The
Company is a public limited company incorporated and domiciled in India and has its registered office in Bengaluru, Karnataka,
India. The Company’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.

0.2 Basis of preparation of financial statements

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the
‘Act’) and other relevant provisions of the Act.

These consolidated financial statements have been prepared for the Group as a going concern on the basis of relevant Ind
AS that are effective at the Company’s annual reporting date, March 31, 2022. These consolidated financial statements
were authorised for issuance by the Company’s Board of Directors on April 28, 2022.

Details of the Group’s accounting policies are included in Note 2.

b. Functional and presentation currency

These consolidated financial statements are presented in Indian rupees (INR), which is also the functional currency of
the parent Company. All amounts have been rounded-off to the nearest million, unless otherwise indicated. In respect
of subsidiaries and associates whose operations are self-contained and integrated, the functional currency has been
determined to be the currency of the primary economic environment in which the entity operates.

c. Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis (i.e on accrual basis), except for
the following items:

• Certain financial assets and liabilities (including derivative instruments) are measured at fair value; and

• Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit
obligations

d. Use of estimates and judgements

The preparation of the consolidated financial statements in conformity with Ind AS requires Management to make
estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities
at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in
estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects
are disclosed in the notes to the consolidated financial statements.

Metamorphosis | 265
 Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the
amounts recognised in the financial statements is included in the following notes:

• Note 1.2(b) — Assessment of functional currency;

• Note 2(c) and 36 — Financial instruments;
• Note 2(d), 2(e) and 2(f) — Useful lives of property, plant and equipment and intangible assets
• Note 2(r) and 15 — Lease, whether an agreement contains a lease;
• Note 2(j) and 35 — measurement of defined benefit obligation; key actuarial assumptions;
• Note 30 — Share based payments;
• Note 2(n), 7 and 38 — Provision for income taxes and related tax contingencies and evaluation
of recoverability of deferred tax assets
• Note 2(l) and 21 — Revenue Recognition: whether revenue from sale of product and
licensing income is recognized over time or at a point in time;
• Note 16 — Liability on written put options;

e. Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment in the year ending March 31, 2022 is included in the following notes:

— Note 2(i) – impairment test of non-financial assets; key assumptions underlying recoverable amounts including the
recoverability of expenditure on internally-generated intangible assets;

— Note 2(n), 7 and 38 – recognition of deferred tax assets: availability of future taxable profit against which tax losses
carried forward can be used;

— Note 17 and 34– recognition and measurement of provisions and contingencies: key assumptions about the
likelihood and magnitude of an outflow of resources;

— Note 2(j) and 35 – measurement of defined benefit obligations: key actuarial assumptions; and

— Note 36 – impairment of financial assets.

f. Measurement of fair values

A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows.

— Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

— Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

— Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Group has an established control framework with respect to the measurement of fair values. This includes a finance
team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.

266 | Annual Report 2022

 Biocon Limited & Subsidiaries

The Group regularly reviews significant unobservable inputs and valuation adjustments. If third party information is
used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the
conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which
the valuations should be classified.

When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the
fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input
that is significant to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change has occurred.

Further information about the assumptions made in measuring fair values is included in the following notes:

— Note 30 – share-based payment arrangements;

— Note 2(c) & 36 – financial instruments.

2. Significant accounting policies

a. Basis of consolidation
i. Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
on which control commences until the date on which control ceases.

The financial statements of the Group are consolidated on line-by-line basis. Intra-group transactions, balances and any
unrealised gains arising from intra-group transactions, are eliminated. Unrealised losses are eliminated, but only to the
extent that there is no evidence of impairment. All temporary differences that arise from the elimination of profits and
losses resulting from intragroup transactions are recognised as per Ind AS 12, Income Taxes.

For the purpose of preparing these consolidated financial statements, the accounting policies of subsidiaries have been
changed where necessary to align them with the policies adopted by the Group.

Non-controlling interests (NCI)

NCI are measured at their proportionate share of the acquiree’s net identifiable assets at the date of acquisition.

Changes in the Group’s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.

ii. Loss of control

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date
the control is lost. Any resulting gain or loss is recognised in statement of profit or loss.

Metamorphosis | 267
 iii. Associates and joint arrangements (equity accounted investees)
The Group’s interests in equity accounted investees comprise interests in associates and a joint venture.

An associate is an entity in which the Group has significant influence, but not control or joint control, over the financial
and operating policies. A joint venture is an arrangement in which the Group has joint control and has rights to the net
assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Interests in associates and joint venture are accounted for using the equity method. They are initially recognised at cost
which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the
Group’s share of profit or loss and other comprehensive income (OCI) of equity - accounted investees until the date on
which significant influence or joint control ceases.

b. Foreign currency
i. Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of companies at the
exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate
at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-
monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the
exchange rate at the date of the transaction. Exchange differences are recognised in statement of profit or loss,
except exchange differences arising from the translation of the qualifying cash flow hedges to the extent that the
hedges are effective which are recognised in OCI.

Under previous GAAP exchange differences arising on restatement of long-term foreign currency monetary items
related to acquisition of depreciable assets was added to/ deducted from the cost of the depreciable assets. In
accordance with Ind AS 101 First time adoption of Indian Accounting Standards the Group continues the above
accounting treatment in respect of the long-term foreign currency monetary items recognised in the financial
statements as on March 31, 2016.

ii. Foreign operations

The assets and liabilities of foreign operations (subsidiaries, associates, joint arrangements) including goodwill and
fair value adjustments arising on acquisition, are translated into INR, the functional currency of the Group, at the
exchange rates at the reporting date. The income and expenses of foreign operations are translated into INR at the
exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate
at the date of the transaction.

Foreign currency translation differences are recognised in OCI and accumulated in equity (as exchange differences
on translating the financial statements of a foreign operation), except to the extent that the exchange differences
are allocated to NCI.

c. Financial instruments
i. Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial
assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions
of the instrument.

268 | Annual Report 2022

 Biocon Limited & Subsidiaries

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and
loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement

Financial assets
On initial recognition, a financial asset is classified as measured at

— amortised cost;

— Fair value through other comprehensive income (FVOCI) – debt investment;

— Fair value through other comprehensive income – equity investment; or

— Fair value through profit and loss

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Group changes
its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

— the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

— the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

— the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and

— the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
subsequent changes in the investment’s fair value in OCI (designated as FVOCI – equity investment). This election is made
on an investment by investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in statement of profit
or loss. However, see Note 36 for derivatives designated as hedging instruments.

Metamorphosis | 269
 Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and impairment are recognised in
statement of profit or loss. Any gain or loss on derecognition is recognised in
statement of profit or loss.
Debt These assets are subsequently measured at fair value. Interest income under the
effective interest method, foreign exchange gains and losses and impairment
investments at FVOCI are recognised in statement of profit or loss. Other net gains and losses are
recognised in OCI. On derecognition, gains and losses accumulated in OCI are
reclassified to statement of profit or loss.
Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised
as income in statement of profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment. Other net gains and losses are
recognised in OCI and are not reclassified to profit or loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it
is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in statement of
profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in statement of profit or loss. Any gain or loss on
derecognition is also recognised in statement of profit or loss.

iii. De-recognition of financial instruments

Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Group continues to recognise the transferred asset to the extent of the Group’s continuing involvement. In that case, the
Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Group has retained.

Financial liabilities
The Group de-recognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Group also de-recognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair
value. The difference between the carrying amount of the financial liability extinguished and the new financial liability
with modified terms is recognised in statement of profit or loss.

iv. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on
a net basis or to realise the asset and settle the liability simultaneously.

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v. Derivative financial instruments and hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded
derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset
and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value,
and changes therein are generally recognised in statement of profit or loss.

The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with
highly probable forecast transactions arising from changes in foreign exchange rates and interest rates.

At inception of designated hedging relationships, the Group documents the risk management objective and strategy for
undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging
instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to
offset each other.

Cash flow hedges

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of
the derivative is recognised in OCI and accumulated in other equity under ‘effective portion of cash flow hedges’. The
effective portion of changes in the fair value of the derivative that is recognised in OCI is limited to the cumulative change
in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective
portion of changes in the fair value of the derivative is recognised immediately in statement of profit or loss.

If a hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated
or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is
discontinued, the amount that has been accumulated in other equity remains there until, for a hedge of a transaction
resulting in recognition of a non‑financial item, it is included in the non‑financial item’s cost on its initial recognition or,
for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future
cash flows affect profit or loss.

If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in other
equity are immediately reclassified to profit or loss.

vi. Treasury shares

The Group has created an Employee Welfare Trust (EWT) for providing share-based payment to its employees. Own
equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. When the
treasury shares are issued to the employees by EWT, the amount received is recognised as an increase in equity and the
resultant gain / (loss) is transferred to / from securities premium.

vii. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose
of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management.

viii. Cash dividend to equity holders

The Group recognises a liability to make cash distribution to equity holders when the distribution is authorised and the
distribution is no longer at the discretion of the Group. As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in equity. Interim dividends are
recorded as a liability on the date of declaration by the Company’s Board of Directors.

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 d. Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses, if any. The cost of an item of property, plant and equipment comprises its purchase price including import duty
and non refundable taxes or levies, any other costs directly attributable to bringing the item to working condition for its
intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

Expenditure incurred on startup and commissioning of the project and/or substantial expansion, including the expenditure
incurred on trial runs (net of trial run receipts, if any) up to the date of commencement of commercial production are
capitalised.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as
separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit or loss.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Group.

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shown
under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital
work-in-progress.

ii. Depreciation
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over
their estimated useful lives using the straight-line method. Assets acquired under finance leases are depreciated over the
shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the
end of the lease term. Freehold land is not depreciated.

The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as
follows:

Asset Assets Classification Management Useful life as

estimate of useful per Schedule II
life
Building Building 25-30 years 30 years
Roads Building 5-12 years 5 years
Plant and equipment (including Electrical Plant and Machinery 9-15 years 8-20 years
installation and Lab equipment )
Computers and servers Plant and Machinery 3 years 3-6 years
Office equipment Plant and Machinery 3- 5 years 5 years
Research and development equipment Research and 9 years 5-10 years
development
equipment
Furniture and fixtures Furniture and fixtures 6 years 10 years
Vehicles Vehicles 6 years 6-10 years

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Asset Assets Classification Management Useful life as

estimate of useful per Schedule II
life
Leasehold improvements Leasehold 5 years or lease period
improvements whichever is lower
Leasehold land Land and Right to 90 years or lease
use-assets period whichever is
lower

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given
above best represent the period over which management expects to use these assets.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for
use (disposed of).

iii. Reclassification to investment property

When the use of a property changes from owner-occupied to investment property, the property is reclassified as
investment property at its carrying amount on the date of reclassification.

e. Goodwill and other intangible assets

i. Goodwill
For measurement of goodwill that arises on a business combination. Subsequent measurement is at cost less any
accumulated impairment losses.

ii. Other intangible assets

Internally generated: Research and development

Expenditure on research activities is recognised in statement of profit or loss as incurred.

Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditure can be
measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable,
and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise,
it is recognised in statement of profit or loss as incurred. Subsequent to initial recognition, the asset is measured at cost
less accumulated amortisation and any accumulated impairment losses.

Others
Other intangible assets are initially measured at cost. Subsequently, such intangible assets are measured at cost less
accumulated amortization and any accumulated impairment losses.

iii. Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is
recognised in statement of profit or loss as incurred.

Metamorphosis | 273
 iv. Amortisation
Goodwill is not amortised and is tested for impairment annually.

Other intangible assets are amortised on a straight line basis over the estimated useful life as follows:

— Computer software 3-5 years

— Marketing and Manufacturing rights 5-10 years

— Developed technology rights 5-10 years

— Customer related intangibles 5 years

Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if
appropriate.

f. Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in
the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Upon
initial recognition, an investment property is measured at cost. Subsequent to initial recognition, investment property is
measured at cost less accumulated depreciation and accumulated impairment losses, if any.

Based on technical evaluation and consequent advice, the management believes a period of 25 years as representing
the best estimate of the period over which investment properties (which are quite similar) are expected to be used.
Accordingly, the Group depreciates investment properties over a period of 25 years on a straight-line basis. The useful
life estimate of 25 years is different from the indicative useful life of relevant type of buildings mentioned in Part C of
Schedule II to the Act i.e. 30 years.

Any gain or loss on disposal of an investment property is recognised in statement of profit or loss.

g. Business combination
In accordance with Ind AS 103, Business combinations, the Group accounts for business combinations after acquisition
date using the acquisition method when control is transferred to the Group. The cost of an acquisition is measured at
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.
The cost of acquisition also includes the fair value of any contingent consideration and deferred consideration, if any.
Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in OCI and
accumulated in equity as capital reserve if there exists clear evidence of the underlying reasons for classifying the business
combination as resulting in a bargain purchase; otherwise the gain is recognised directly in equity as capital reserve.
Transaction costs are expensed as incurred.

h. Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-
out formula, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other
costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and
work-in-progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity.

Provisions are made towards slow-moving and obsolete items based on historical experience of utilisation on a product
category basis, which consideration of product lines and market conditions.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses. The net realisable value of work-in-progress is determined with reference to the selling prices of
related finished products.

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Raw materials, components and other supplies held for use in the production of finished products are not written down
below cost except in cases where material prices have declined and it is estimated that the cost of the finished products
will exceed their net realisable value.

The comparison of cost and net realisable value is made on an item-by-item basis.

i. Impairment
i. Impairment of financial assets
In accordance with Ind AS 109 Financial Instruments, the Group applies Expected Credit Loss (“ECL”) model for
measurement and recognition of impairment loss on following:

— financial assets measured at amortised cost; and

— financial assets measured at FVOCI - debt investments.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to
lifetime expected credit losses. For all other financial assets, ECL are measured at an amount equal to the 12-month
ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are
measured at lifetime ECL.

Loss allowance for financial assets measured at amortised cost are deducted from gross carrying amount of the
assets. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised
as an impairment gain or loss in the Statement of Profit and Loss.

ii. Impairment of non-financial assets

The Group assesses at each reporting date whether there is any indication that the carrying amount may not be
recoverable. If any such indication exists, then the asset’s recoverable amount is estimated and an impairment loss
is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount in the statement
of profit or loss.

Goodwill is tested annually for impairment. For the purpose of impairment testing, goodwill arising from a business
combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the
combination.

The recoverable amount of a CGU (or an individual asset) is higher of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flow, discounted to their present value using a pre-tax
discount rate that reflects current market assessment of the time value of money and the risks specific to CGU (or
the asset).

The Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For impairment testing,
assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash
inflows of other assets or CGUs.

Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill
allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or Group of CGUs)
on a pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which
impairment loss has been recognised in prior periods, the Group reviews at each reporting date whether there
is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent

Metamorphosis | 275
 that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.

j. Employee benefits
i. Short-term employee benefits:

All employee benefits falling due within twelve months from the end of the period in which the employees
render the related services are classified as short-term employee benefits, which include benefits like salaries,
wages, short term compensated absences, performance incentives, etc. and are recognised as expenses in the
period in which the employee renders the related service and measured accordingly.”

ii. Post- employment benefits

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:”

Gratuity
The Group provides for gratuity, a defined benefit plan (“the Gratuity Plan”) covering the eligible employees of the
Company and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the
tenure of the employment with the Group.

Liability with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary,
at each balance sheet date using the projected unit credit method. The defined benefit plan is administered by a trust
formed for this purpose through the group gratuity scheme.

The Group recognises the net obligation of a defined benefit plan as a liability in its balance sheet. Gains or losses
through re-measurement of the net defined benefit liability are recognised in other comprehensive income and are not
reclassified to profit and loss in the subsequent periods. The actual return of the portfolio of plan assets, in excess of
the yields computed by applying the discount rate used to measure the defined benefit obligation is recognised in other
comprehensive income. The effect of any plan amendments are recognised in the statement of profit and loss.

Provident Fund
Eligible employees of the Company and its Indian subsidiaries receive benefits from provident fund, which is a defined
contribution plan. Both the eligible employees and the respective Companies make monthly contributions to the
Government administered provident fund scheme equal to a specified percentage of the eligible employee’s salary.
Amounts collected under the provident fund plan are deposited with in a government administered provident fund. The
Companies have no further obligation to the plan beyond its monthly contributions.

iii. Compensated absences

The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature.
The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an
independent actuary at each balance sheet date using the projected unit credit method on the additional amount
expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date.
Expense on non-accumulating compensated absences is recognised is the period in which the absences occur.

The liability in respect of all defined benefit plans and other long term benefits is accrued in the books of account on
the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method. The
obligation is measured at the present value of estimated future cash flows. The discount rates used for determining
the present value of obligation under defined benefit plans, is based on the market yields on Government securities
as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.

Remeasurement gains and losses on other long term benefits are recognised in the Statement of Profit and Loss in
the year in which they arise. Remeasurement gains and losses in respect of all defined benefit plans arising from

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experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur,
directly in other comprehensive income. They are included in other equity in the Statement of Changes in Equity
and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan
amendments or curtailments are recognised immediately in profit or loss as past service cost. Gains or losses on the
curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs.
Any differential between the plan assets (for a funded defined benefit plan) and the defined benefit obligation as
per actuarial

valuation is recognised as a liability if it is a deficit or as an asset if it is a surplus (to the extent of the lower of present
value of any economic benefits available in the form of refunds from the plan or reduction in future contribution
to the plan).

Past service cost is recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the
average period until the benefits become vested. To the extent that the benefits are already vested immediately
following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised immediately
in the Statement of Profit and Loss. Past service cost may be either positive (where benefits are introduced or
improved) or negative (where existing benefits are reduced).

iv. Share-based compensation

The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognised as expense is based on the estimate of the number of
awards for which the related service and non-market vesting conditions are expected to be met, such that the
amount ultimately recognised as an expense is based on the number of awards that do meet the related service
and non-market vesting conditions at the vesting date.

The grant date fair value of options granted (net of estimated forfeiture) to employees of the Group is recognised
as an employee expense.

The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple
awards. The increase in equity recognised in connection with share based payment transaction is presented as a
separate component in equity under “share based payment reserve”. The amount recognised as an expense is
adjusted to reflect the actual number of stock options that vest. For the option awards, grant date fair value is
determined under the option-pricing model (Black-Scholes-Merton). Forfeitures are estimated at the time of grant
and revised, if necessary, in subsequent periods if actual forfeitures materially differ from those estimates.

k. Provisions (other than for employee benefits)

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows (representing the best estimate of the
expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is
recognised as finance cost. Expected future operating losses are not provided for.

Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the Group from the
contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous
contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected

Metamorphosis | 277
 net cost of continuing with the contract. Before such a provision is made, the Group recognises any impairment loss on
the assets associated with that contract.

l. Revenue from contracts with customers

The Group has implemented new standard Ind-AS 115 ‘Revenue from Contracts with Customers’ effective April 1, 2018
using cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application.
The Group has evaluated its open arrangements on out-licensing with reference to upfront non-refundable fees received
in earlier periods and concluded that some of the performance obligations may not be distinct and hence would need
to be bundled with the subsequent product supply obligations. Accordingly standard is applied retrospectively only to
contracts that were not completed as at the date of initial application.

i. Sale of goods
Revenue is recognised when a promise in a customer contract (performance obligation) has been satisfied by
transferring control over the promised goods to the customer. Control over a promised good refers to the ability
to direct the use of, and obtain substantially all of the remaining benefits from, those goods. Control is usually
transferred upon shipment, delivery to, upon receipt of goods by the customer, in accordance with the delivery and
acceptance terms agreed with the customers. However, in certain cases, revenue is recognized on sale of products
where shipment is on hold at specific request of the customer provided performance obligation conditions has been
satisfied and control is transferred, with customer taking title of the goods. The amount of revenue to be recognized
(transaction price) is based on the consideration expected to be received in exchange for goods, excluding amounts
collected on behalf of third parties such as sales tax or other taxes directly linked to sales. If a contract contains more
than one performance obligation, the transaction price is allocated to each performance obligation based on their
relative stand-alone selling prices. Revenue from product sales are recorded net of allowances for estimated rebates,
cash discounts and estimates of product returns, all of which are established at the time of sale.

For contracts with distributors, no sales are recognised when goods are physically transferred to the distributor
under a consignment arrangement, or if the distributor acts as an agent. In such cases, sales are recognised when
control over the goods transfers to the end-customer, and distributor’s commissions are presented within marketing
and distribution.

The consideration received by the Group in exchange for its goods may be fixed or variable. Variable consideration
is only recognised when it is considered highly probable that a significant revenue reversal will not occur once the
underlying uncertainty related to variable consideration is subsequently resolved.

ii. Milestone payments and out licensing arrangements

The Group enters into certain dossier sales, licensing and supply arrangements that, in certain instances, include
certain performance obligations. Based on an evaluation of whether or not these obligations are inconsequential or
perfunctory, the Group recognise or defer the upfront payments received under these arrangements.

Income from out-licensing agreements typically arises from the receipt of upfront, milestone and other similar
payments from third parties for granting a license to product- or technology- related intellectual property (IP). These
agreements may be entered into with no further obligation or may include commitments to regulatory approval,
co-marketing or manufacturing. These may be settled by a combination of upfront payments, milestone payments
and other fees. These arrangements typically also consist of subsequent payments dependent on achieving certain
milestones in accordance with the terms prescribed in the agreement. Milestone payments which are contingent
on achieving certain clinical milestones are recognised as revenues either on achievement of such milestones, if the
milestones are considered substantive, or over the period of continuing performance obligations, if the milestones are
not considered substantive. Whether to consider these commitments as a single performance obligation or separate
ones, or even being in scope of Ind-AS 115 ‘Revenues from Contracts with Customers’, is not straightforward and
requires some judgement. Depending on the conclusion, this may result in all revenue being calculated at inception
and either being recognised at point in time or spread over the term of a longer performance obligation. Where
performance obligations may not be distinct, this will bundled with the subsequent product supply obligations.

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The new standard provides an exemption for sales-based royalties for licenses of intellectual property which will
continue to be recognised as revenue as underlying sales are incurred.

The Group recognises a deferred income (contract liability) if consideration has been received (or has become
receivable) before the Group transfers the promised goods or services to the customer. Deferred income mainly
relates to remaining performance obligations in (partially) unsatisfied long-term contracts or are related to amounts
the Group expects to receive for goods and services that have not yet been transferred to customers under existing,
non-cancellable or otherwise enforceable contracts.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash,
and only passage of time is required, as per contractual terms.

iii. Contract research and manufacturing services income:

Revenue is recognised upon transfer of control of promised services or compounds to customers in an amount that
reflects the consideration we expect to receive in exchange for those services or compounds.

Arrangement with customers for Contract research and manufacturing services income are either on a time-and-
material basis, fixed price or on a sale of compounds.

In respect of contracts involving research services, in case of ‘time and materials’ contracts, contract research fee are
recognised as services are rendered, in accordance with the terms of the contracts.

Revenues relating to fixed price contracts are recognised based on the percentage of completion method determined
based on efforts expended as a proportion to total estimated efforts. The Group monitors estimates of total contract
revenue and cost on a routine basis throughout the contract period. The cumulative impact of any change in
estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the
event that a loss is anticipated on a particular contract, provision is made for the estimated loss.

In respect of contracts involving sale of compounds arising out of contract research, revenue is recognised when
a promise in a customer contract (performance obligation) has been satisfied by transferring control over the
promised goods to the customer. Control over a promised good refers to the ability to direct the use of, and obtain
substantially all of the remaining benefits from, those goods. Control is usually transferred upon shipment to the
customer. The amount of revenue to be recognised (transaction price) is based on the consideration expected to be
received in exchange for goods, excluding amounts collected on behalf of third parties such as sales tax or other
taxes directly linked to sales. If a contract contains more than one performance obligation, the transaction price is
allocated to each performance obligation based on their relative stand-alone selling prices. Revenue from product
sales are recorded net of allowances for estimated rebates, cash discounts and estimates of product returns, all of
which are established at the time of sale.

The consideration received by the group in exchange for its goods may be fixed or variable. Variable consideration
is only recognised when it is considered highly probable that a significant revenue reversal will not occur once the
underlying uncertainty related to variable consideration is subsequently resolved.

iv. Royalty income and profit share

The Royalty income and profit share earned through a License or collaboration partners is recognized as the
underlying sales are recorded by the Licensee or collaboration partners.

v. Sales Return Allowances

The Group accounts for sales return by recording an allowance for sales return concurrent with the recognition of
revenue at the time of a product sale. The allowance is based on Group’s estimate of expected sales returns. The
estimate of sales return is determined primarily by the Group’s historical experience in the markets in which the
Group operates.

Metamorphosis | 279
 vi. Dividends
Dividend is recognised when the Group’s right to receive the payment is established, which is generally when
shareholders approve the dividend.

vii. Rental income

Rental income from investment property is recognised in statement of profit or loss on a straight-line basis over the
term of the lease except where the rentals are structured to increase in line with expected general inflation. Lease
incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

viii. Contribution received from customers/co-development partners towards plant and equipment
Contributions received from customers/co-development partners towards items of property, plant and equipment
which require an obligation to supply goods to the customer in the future, are recognised as a credit to deferred
revenue. The contribution received is recognised as revenue from operations over the useful life of the assets. The
Group capitalises the gross cost of these assets as the Group controls these assets.

ix. Interest income and expense

Interest income or expense is recognised using the effective interest method.

m. Government grants
The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them
will be complied with, and the grants will be received. Government grants received in relation to assets are recognised
as deferred income and amortized over the useful life of such asset. Government grants, which are revenue in nature are
either recognised as income or deducted in reporting the related expense based on the terms of the grant, as applicable.

n. Income taxes
Income tax comprises of current and deferred income tax. Income tax expense is recognised in statement of profit or
loss except to the extent that it relates to an item recognised directly in equity in which case it is recognised in other
comprehensive income. Current income tax for current year and prior periods is recognised at the amount expected
to be paid or recovered from the tax authorities, using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date. The amount of current tax reflects the best estimate of the tax amount expected to
be paid or received after considering the uncertainty, if any, related to income taxes.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements except when:

— taxable temporary differences arising on the initial recognition of goodwill;

— temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss at the time of transaction;

— temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that
the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will
not reverse in the foreseeable future.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realized.

Deferred tax assets (DTA) include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability.

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Deferred income tax assets and liabilities are measured using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets
and liabilities is recognised as income or expense in the period that includes the enactment or substantive enactment
date. A deferred income tax assets is recognised to the extent it is probable that future taxable income will be available
against which the deductible temporary timing differences and tax losses can be utilized. Deferred income taxes are not
provided on the undistributed earnings of subsidiaries where it is expected that the earnings of the subsidiary will not be
distributed in the foreseeable future. The Group offsets income-tax assets and liabilities, where it has a legally enforceable
right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against which they can be used.

o. Borrowing cost
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period
of time to get ready for their intended use are capitalised as part of the cost of that asset.

Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

p. Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period
adjusted for treasury shares held. Diluted earnings per share is computed using the weighted-average number of equity
and dilutive equivalent shares outstanding during the period, using the treasury stock method for options and warrants,
except where the results would be anti-dilutive.

q. Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components,
and for which discrete financial information is available. Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision maker. The Chairperson and Managing Director of the
Company is responsible for allocating resources and assessing performance of the operating segments and accordingly
is identified as the Chief Operating Decision Maker (CODM). All operating segments’ operating results are reviewed
regularly by the CODM to make decisions about resources to be allocated to the segments and assess their performance.

r. Leases
(i) The Group as lessee:
The Group assesses whether a contract contains a lease, at the inception of contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assesses whether a contract conveys the right to control use of an identified asset, the Group
assesses whether:

• The contract involves use of an identified asset;

• The Group has substantially all the economic benefits from the use of the asset through the period of lease; and

• The Group has the right to direct the use of an asset.

At the date of commencement of lease, the Group recognises a Right-of-use asset (“ROU”) and a corresponding
liability for all lease arrangements in which it is a lessee, except for leases with the term of twelve months or less
(short term leases) and low value leases. For short term and low value leases, the Group recognises the lease
payment as an operating expense on straight line basis over the term of lease.

Metamorphosis | 281
 Certain lease agreements include an option to extend or terminate the lease before the end of lease term. ROU
assets and the lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e., higher of fair value less cost to sell and the value-in-use) is
determined on individual asset basis unless the asset does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate explicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right-of- use assets if the Group changes its assessment if whether it will
exercise an extension or a termination of option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and the lease payments have
been classified as financing cash flows.

(ii) The Group as a Lessor:

Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease
transfer substantially all the risk and rewards of ownership to the lessee, the contract is classified as finance lease.
All other leases are classified as operating lease.

d. Operating cycle
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The group has identified twelve months as its operating cycle.

e. Exceptional items
Exceptional items refer to items of income or expense within the statement of profit and loss from ordinary activities
which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary
to explain the performance of the Group.

f. Recent accounting developments

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies
(Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

Ind AS 103 – Reference to Conceptual Framework

The amendments specifiy that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired
and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under
Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition
date. These changes do not significantly change the requirements of Ind AS 103. The Group does not expect the amendment to
have any significant impact in its financial statements.

Ind AS 16 – Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received
from selling items produced while the group is preparing the asset for its intended use. Instead, an entity will recognise such sales
proceeds and related cost in profit or loss. The Group does not expect the amendments to have any impact in its recognition of its
property, plant and equipment in its financial statements.

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a Contract

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 Biocon Limited & Subsidiaries

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs
that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour,
materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and
the Group does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 – Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to
derecognise a financial liability. The Group does not expect the amendment to have any significant impact in its financial statements.

Metamorphosis | 283
3. Property, plant and equipment and Capital work-in-progress
(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated) (C in lakh)
Land [Refer Buildings Leasehold Plant and Research & Furniture and Vehicles Total Capital
note (a)] improvements equipment development fixtures work-in-
[Refer note (c)] equipment progress
[Refer note (e)]
Gross carrying amount
At April 01, 2020 2,687 18,395 29 58,803 2,952 1,225 174 84,265 15,765
Additions 46 739 52 6,507 571 260 28 8,203 14,997
Disposals/transfers - (59) - (179) - (4) (45) (287) (8,203)
Other adjustments
- Foreign currency (38) (195) - (425) - (2) - (660) (24)
translation adjustment
At March 31, 2021 2,695 18,880 81 64,706 3,523 1,479 157 91,521 22,535
Additions 61 644 35 6,218 105 183 42 7,288 18,886
Disposals/transfers - (5) - (302) (103) (2) (13) (425) (7,288)
Other adjustments
- Foreign currency 49 247 - 557 - 3 - 856 70
translation adjustment
At March 31, 2022 2,805 19,766 116 71,179 3,525 1,663 186 99,240 34,203
Accumulated depreciation
At April 01, 2020 - 3,647 9 23,861 1,931 781 104 30,333 -
Depreciation for the year - 740 4 4,823 183 125 21 5,896 -
Disposals - (2) - (114) - (3) (44) (163) -
Other adjustments
- Foreign currency - (27) - (90) - (1) - (118) -
translation adjustment
At March 31, 2021 - 4,358 13 28,480 2,114 902 81 35,948 -
Depreciation for the year - 770 19 5,478 221 162 21 6,671 -
Disposals - (5) - (289) (43) (2) (6) (345) -
Other adjustments
- Foreign currency - 43 - 154 - 2 - 199 -
translation adjustment
At March 31, 2022 - 5,166 32 33,823 2,292 1,064 96 42,473 -
Net carrying amount
At March 31, 2021 2,695 14,522 68 36,226 1,409 577 76 55,573 22,535
At March 31, 2022 2,805 14,600 84 37,356 1,233 599 90 56,767 34,203

(a) Land includes land held on lease under perpetual basis: Gross carrying amount ` 661 (March 31, 2021 - ` 661); Net carrying
amount ` 661 (March 31, 2021 - ` 661).
(b) Borrowing costs capitalised during the year amounted to ` 1,610 (March 31, 2021 - ` 857).
(c) Plant and equipment include computers and office equipment.
(d) Foreign exchange loss, net of ` 66 (March 31, 2021 - ` 685) on long term foreign currency monetary liabilities relating to
acquisition of a depreciable capital asset has been adjusted with the cost of such asset pursuant to option available on long-
term foreign currency monetary items which were obtained before the beginning of the first Ind AS financial reporting period
as per the previous GAAP [refer note 2(b)(i)].
(e) Capital work-in-progress as on March 31, 2022 mainly comprises new biopharmaceutical and research manufacturing units.
(f) For details of security on certain property, plant and equipment, refer note 14

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3. Property, plant and equipment and Capital work-in-progress (continued)

3 (a) Capital work in progress ageing schedule
Amount in CWIP for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 16,598 8,474 5,280 3,851 34,203
As at March 31, 2022 16,598 8,474 5,280 3,851 34,203

Projects in progress 11,667 6,727 4,002 139 22,535

As at March 31, 2021 11,667 6,727 4,002 139 22,535

(i) There are no capital work-in-process which is temporarily supended as at March 31, 2022 and as on March 31, 2021.

CWIP completion schedule (CWIP whose completion is overdue or has exceeded its cost compared to its original plan)

Amount in CWIP for a period of

Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years

Project 1 13,481 - - - 13,481

Project 2 - 1,637 - - 1,637

Project 3 - 4,527 - - 4,527

Project 4 287 - - - 287

Project 5 1,547 - - - 1,547

Project 7 231 - 3 - 234

Project 8 1,030 - - - 1,030

As at March 31, 2022 16,576 6,164 3 - 22,743

Project 1 - 10,159 - - 10,159

Project 2 - - 1,272 - 1,272

Project 3 - - 3,308 - 3,308

Project 4 - 260 - - 260

Project 5 - 964 - - 964

Project 6 274 - - - 274

As at March 31, 2021 274 11,383 4,580 - 16,237

Metamorphosis | 285
4 (a). Intangible assets
Goodwill Intangible assets Intangible assets under development
Developed Marketing and Other Customer IP under com- Total Products under Marketing Total
technology Manufacturing intangible related mercialisation development rights
rights rights assets * intangible (internally
generated)
Gross carrying amount
At April 01, 2020 264 3,329 1,005 1,066 77 81 5,558 5,973 283 6,256
Additions - 2,584 503 170 - - 3,257 1,800 220 2,020
Disposals/transfers - - - - - - - (2,584) - (2,584)
Other adjustments
- Foreign currency - (123) (29) - - - (152) (119) (1) (120)
translation adjustment
At March 31, 2021 264 5,790 1,479 1,236 77 81 8,663 5,070 502 5,572
Additions - 345 154 335 - - 834 1,467 146 1,613
Disposals/transfers - - - - - - - (345) - (345)
Other adjustments
- Foreign currency - 236 43 - - - 279 163 3 166
translation adjustment
At March 31, 2022 264 6,371 1,676 1,571 77 81 9,776 6,355 651 7,006

Accumulated
amortisation
At April 01, 2020 - 288 310 582 65 81 1,326 61 - 61
Amortisation for the year - 732 176 167 12 - 1,087 44 - 44
- Foreign currency - (14) (5) - - - (19) - - -
translation adjustment
At March 31, 2021 - 1,006 481 749 77 81 2,394 105 - 105
Amortisation for the year - 889 225 196 - - 1,310 - - -
- Foreign currency - 71 15 - - - 86 - - -
translation adjustment
At March 31, 2022 - 1,966 721 945 77 81 3,790 105 - 105

Net carrying amount

At March 31, 2021 264 4,784 998 487 - - 6,269 4,965 502 5,467
At March 31, 2022 264 4,405 955 626 - - 5,986 6,250 651 6,901
* Other intangible assets includes computer software and intellectual property rights.

Intangible assets under development ageing schedule:-

As at March 31, 2022
Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 1,724 1,348 2,626 1,203 6,901
Total 1,724 1,348 2,626 1,203 6,901

As at March 31, 2021

Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 1,383 2,652 1,432 - 5,467
Total 1,383 2,652 1,432 - 5,467

(i) There are no intangible assets under development which are temporarily suspended as at March 31, 2022 and as at March 31, 2021.

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Intangible assets under development completion schedule (projects whose completion is overdue or has exceeded its
cost compared to its original plan)

As at March 31, 2022

To be completed in
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress

Project 1 2,288 - - - 2,288

As at March 31, 2022 2,288 - - - 2,288

As at March 31, 2021

To be completed in
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress

Project 1 2,418 - - - 2,418

As at March 31, 2021 2,418 - - - 2,418

4 (b). Right-of-use assets

Right-of-use assets
Particulars Land Buildings Vehicles Total
Gross carrying amount
At April 01, 2020 374 942 71 1,387
Additions - 361 32 393
Disposals - (13) (6) (19)
At March 31, 2021 374 1,290 97 1,761
Additions - 1,369 22 1,391
Disposals - (74) (28) (102)
At March 31, 2022 374 2,585 91 3,050

Accumulated depreciation
At April 01, 2020 2 89 13 104
Amortisation for the year 2 102 20 124
At March 31, 2021 4 191 33 228
Amortisation for the year 2 137 22 161
Disposals/transfer - - (12) (12)
At March 31, 2022 6 328 43 377

Net carrying amount

At March 31, 2021 370 1,099 64 1,533
At March 31, 2022 368 2,257 48 2,673

Metamorphosis | 287
5. Non-current investments
March 31, 2022 March 31, 2021
I. Quoted equity instruments at fair value through other comprehensive income
Vaccinex Inc., USA - 299,226 (March 31, 2021 - 299,226) Common Stock, par value 30 65
USD 0.0001 each
Equillium Inc., USA - 2,316,134 (March 31, 2021 - 2,316,134) Common Stock, par 555 1,212
value USD 0.001 each
Total quoted investments in equity instruments 585 1,277
II. Unquoted equity instruments at fair value through other comprehensive
income
Immuneel Therapeutics Private Limited - 2,020 (March 2021: 2,020) equity shares of 214 100
` 10 each [refer note (i) below]
4,922,663 (March 31, 2021: Nil) Equity shares of ` 10 each in HR Kaveri Private 49 -
Limited
Total unquoted investments in equity instruments 263 100
III. Unquoted equity instruments at fair value through profit or loss
In others:
Energon KN Wind Power Private Limited - 38,500 (March 31, 2021 - 38,500) equity 1 1
shares of Rs 10 each
Less: Provision for decline, other than temporary, in the value of non-current (1) (1)
investments
Four Ef Renewables Private Limited - 287,474 (March 31, 2021 - 287,474) equity 29 29
share of ` 100 each
Hinduja Renewables Two Private Limited - 5,913,566 equity shares (March 31, 2021 - 59 24
2,369,000) equity share of ` 10 each
Total unquoted investments in equity instruments 88 53
IV. Unquoted preference shares at fair value through profit or loss
In others:
Energon KN Wind Power Private Limited - 14,666 (March 31, 2021 - 14,666) 1 1
Compulsorily Convertible Preference Shares, par value ` 100 each
Less: Provision for decline, other than temporary, in the value of non-current (1) (1)
investments
Four Ef Renewables Private Limited - 574,947 (March 31, 2021 - 574,947 ) 0.001% 57 57
Compulsorily convertible preference Shares of ` 100 each [refer note (ii) below]
Total unquoted investments in preference shares 57 57
V. Investments in Certificates of deposits carried at amortized cost
Others:
Inter corporate deposits with financial institutions * 2,629 4,150
Total unquoted investments in deposits 2,629 4,150

Total non-current investments 3,622 5,637

Aggregate value of quoted investments 585 1,277
Aggregate value of unquoted investments 3,039 4,362
Aggregate amount of impairment in value of investments 2 2

(i) During the year ended March 31, 2021, Syngene invested ` 100 in Immuneel Therapeutics Private Limited. During the year
ended March 31, 2022, additional funding from external investors were received resulting in a dilution of Syngene’s equity
interest from 7.22% to 5%. The gain on fair valuation from ` 100 to ` 214 is recognised under Other comprehensive
income.

(ii) Terms of conversion: 1 compulsory convertible preference share of face value ` 100/- each will convert to 1 equity share of
face value ` 100/- at end of the tenure of 20 years from allotment.

* Inter corporate deposits with financial institutions yield fixed interest rate.

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The Group’s exposure to credit and currency risks, and loss allowances are disclosed in note 36.

6 (a) . Other financial assets

March 31, 2022 March 31, 2021
(i) Non-current
Deposits 454 449

Bank deposits with maturity of more than 12 months - 1,389

Other receivables - 171
454 2,009
(ii) Current
Interest accrued but not due 619 270
Other receivables 3,887 4,801
4,506 5,071

6 (b). Loans
March 31, 2022 March 31, 2021
Loan to associate- considered good- unsecured * 671 -
671 -

During the year ended March 31, 2022, the Group has given loan to an associate. The loan is repayable on demand and carries
interest of 4% p.a. Also refer note 33.

* Net of losses recognized by using equity method of ` 12

Loan to associate- considered good- unsecured comprise loans to the following:

March 31, 2022 March 31, 2021

(i) Bicara Therapeutics Inc. 671 -
Maximum amount outstanding during the year 683 -

Loans are granted to related parties (as defined under Companies Act, 2013) that are repayable on demand:

March 31, 2022 March 31, 2022

Name of borrower Amount of loan Percentage to Amount of loan Percentage to
outstanding the total Loans outstanding the total Loans
(i) Bicara Therapeutics Inc. 671 100% - -

The Group has not granted any advances in the nature of loans to promoters, KMPs and the related parties (as defined under
Companies Act, 2013) either severally or jointly.

Metamorphosis | 289
7. Deferred tax balances
March 31, 2022 March 31, 2021
Deferred tax assets (net) 2,933 3,077
Deferred tax liabilities (net) (523) (323)
Total 2,410 2,754

Deferred tax liabilities

Property, plant and equipment and intangible assets 2,648 2,033
Derivative assets 359 67
Others 72 114
Gross deferred tax liabilities 3,079 2,214

Deferred tax assets

Provision for employee benefits 544 423
Derivative liabilities 52 156
Allowance for doubtful debts 91 20
Other deductible expenses 93 89
MAT credit entitlement 3,714 3,949
Deferred revenue 54 114
Others 941 217
Gross deferred tax assets 5,489 4,968

Deferred tax assets (net) [refer note 38 (d)] 2,410 2,754

8. Other assets
(Unsecured considered good, unless otherwise stated)
March 31, 2022 March 31, 2021
(a) Non-current
Capital advances 512 570
Duty drawback receivable 86 60
Balances with statutory / government authorities 737 697
Prepayments 296 429
1,631 1,756
(b) Current
Balances with statutory / government authorities 2,046 2,202
Advance to suppliers 1,288 667
Prepayments 873 705
Contract assets - 64
4,207 3,638

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9. Inventories
March 31, 2022 March 31, 2021
Raw materials, including goods-in-bond * 6,018 4,778
Packing materials 2,539 2,029
Traded goods 255 221
Finished goods 3,546 4,289
Work-in-progress 10,624 7,349
22,982 18,666

* Inventories includes goods in-transit ` 207 (March 31, 2021 - ` 283)

Write-down of inventories to net realisable value and provision for stock obsolescence amounted to ` 474 (March 31, 2021 - ` 474).
These were recognised as an expense during the year and included in ‘changes in inventories of finished goods, work-in-progress
and stock-in-trade’ in statement of profit and loss.

10. Current investments

March 31, 2022 March 31, 2021
Quoted - Investments at fair value through profit or loss:
(a) Investment in mutual funds 2,416 6,237
(a) Investment in Adagio Theraupetics Inc. 102 -
2,518 6,237
Unquoted- Investment carried at amortised cost
Inter corporate deposits with financial institutions * 9,659 5,850
9,659 5,850
Total current investments 12,177 12,087

* Inter corporate deposits with financial institutions yield fixed interest rate.

Aggregate market/ fair value of quoted investments 2,518 6,237

Aggregate value of unquoted investments 9,659 5,850

The Group’s exposure to credit and currency risks, and loss allowances are disclosed in note 36.

11. Trade receivables

March 31, 2022 March 31, 2021
(a) Trade Receivables considered good - Unsecured 20,582 15,033
(b) Trade Receivables - credit impaired 363 123
20,945 15,156
Allowance for expected credit loss (363) (123)
20,582 15,033
The Group’s exposure to credit and currency risks, and loss allowances are disclosed in note 36.

Metamorphosis | 291
 Trade receivables ageing schedule:
Outstanding for following periods from due date of payment Total

Unbilled Not Less than 6 6 months - 1-2 2-3 More than 3

overdue
months 1 year years years years
Undisputed trade receivables - considered good 3,114 14,155 2,724 270 319 - - 20,582
Undisputed trade receivables - credit impaired - - - 12 311 5 35 363
As at March 31, 2022 3,114 14,155 2,724 282 630 5 35 20,945

Undisputed trade receivables - considered good 2,857 10,217 1,897 49 - - 13 15,033

Undisputed trade receivables - credit impaired - - - 34 33 24 32 123
As at March 31, 2021 2,857 10,217 1,897 83 33 24 45 15,156

12. Cash and bank balances

March 31, 2022 March 31, 2021
Cash and cash equivalents
Balances with banks:
On current accounts 6,326 9,372
On unpaid dividend account 4 5
Deposits with original maturity of less than 3 months 300 154
Total cash and cash equivalents 6,630 9,531

Other bank balances

Deposits with maturity of less than 12 months 10,842 10,620
Margin money deposit [Refer note (a) below] 3 3
Total other bank balances 10,845 10,623
Total cash and bank balances 17,475 20,154
(a) Margin money deposits with carrying amount of ` 3 (March 31, 2021 - ` 3) are subject to first charge against bank guarantees
obtained.

(b) The Group has cash in hand which are not disclosed above since amounts are rounded off to Rupees million.

13(a). Equity share capital

March 31, 2022 March 31, 2021
Authorised
1,250,000,000 (March 31, 2021 - 1,250,000,000) equity shares of ` 5 each (March 31, 2021 - ` 5 each) 6,250 6,250

Issued, subscribed and fully paid-up

1,200,600,000 (March 31, 2021 - 1,200,000,000) equity shares of ` 5 each (March 31, 2021 - ` 5 each) 6,003 6000

(ii) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ` 5 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity
shares held by the shareholders.

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(iii) Details of shareholders holding more than 5% shares in the Company

March 31, 2022 March 31, 2021

No. of shares % No. of shares %
holding holding
Equity shares of ` 5 each fully paid
Kiran Mazumdar-Shaw 47,57,25,384 39.62% 47,57,25,384 39.64%
Glentec International Limited 23,72,11,164 19.76% 23,72,11,164 19.77%

(iv) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer note 30.

(v) Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting
date:
Particulars Year ended March 31
2022 2021 2020 2019 2018
Equity shares of ` 5 each - - 60,00,00,000 - 40,00,00,000

The Company had allotted 600,000,000 equity shares of ` 5 each fully paid up as bonus shares on June 19, 2019 in the ratio
of 1:1 (one equity shares of ` 5 each for every one equity share of ` 5 each held in the Company as on the record date i.e.
June 13, 2019) by capitalisation of securities premium and general reserve. In accordance with Ind AS 33, the Earnings per
share data adjusted to give effect to the bonus issue.

(vi) Details of shares held by promoters

March 31, 2022
No. of shares at the % of Total Shares % change
Name of the Promoter
end of the year during the year
Kiran Mazumdar Shaw 47,57,25,384 39.62% -0.02%
Yamini R Mazumdar 13,08,712 0.11% -
J M M Shaw 84,45,348 0.70% -
Ravi Mazumdar 48,15,084 0.40% -
Dev Mazumdar 5,18,484 0.04% -
Glentec International Limited 23,72,11,164 19.76% -0.01%
Total 72,80,24,176 60.64% -0.03%

Metamorphosis | 293
 March 31, 2021
No. of shares at the % of Total Shares % change
Name of the Promoter
end of the year during the year
Kiran Mazumdar Shaw 47,57,25,384 39.64% -
Yamini R Mazumdar 13,08,712 0.11% 0.001%
J M M Shaw 84,45,348 0.70% -
Ravi Mazumdar 48,15,084 0.40% -
Dev Mazumdar 5,18,484 0.04% -
Glentec International Limited 23,72,11,164 19.77% -
Total 72,80,24,176 60.67% 0.001%

13(b). Other equity

Securities premium
Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the
Companies Act, 2013.

General reserve
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

Retained earnings
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the standalone
financial statements of the Company and also considering the requirements of the Act. Thus the amounts reported are not
distributable in entirety.

SEZ re-investment reserve

The SEZ re-investment reserve has been created out of profit of eligible SEZ units in terms of the provisions of section 10AA(1)(ii)
of the Income-tax Act, 1961. The reserve has been utilised for acquiring new plant and machinery for the purpose of its business
in terms of section 10AA(2) of the Income-tax Act, 1961.

Share based payment reserve

The Group has established various equity settled share-based payment plans for certain categories of employees of the Group.
Also refer note 30 for further details on these plans.

Treasury shares
Own equity instruments that are reacquired (treasury shares) by the ESOP trusts of the Group are recognised at cost and
deducted from equity.

Foreign currency translation reserve

Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional
currencies to the Group’s reporting currency (i.e. `) are accumulated in the foreign currency translation reserve.

Other Items of other comprehensive income

Other Items of other comprehensive income represents mark to market gain or loss on financial assets classified as FVTOCI and
re-measurements of the defined benefits plan.

Debenture redemption reserve

The Group had issued Redeemable Non-Convertible Debentures (“NCD”) and Redeemable Optionally Convertible Debentures
(“OCD”) during the the previous year. As per the provisions of the Companies Act, 2013, debenture redemption reserve is created
out of profits available for payment of dividend.

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 Biocon Limited & Subsidiaries

Capital redemption reserve

The Group had redeemed intercompany Non Convertible Redeemable Preference Shares during the previous year and as per the
provisions of the Companies Act, 2013, a sum equal to the nominal value of the shares redeemed is transferred to the capital
redemption reserve.

Cash flow hedging reserves

The cash flow hedging reserve represents the cumulative effective portion of gains or losses (net of taxes, if any) arising on changes
in fair value of designated portion of hedging instruments entered into for cash flow hedges.

14. Non-current borrowings

March 31, 2022 March 31, 2021
Loans from banks (secured)
Term loan [refer note (a), (b), (c), (d), (e), (f), (g), (j) and (n) below] 23,838 20,952
Redeemable Non-Convertible Debentures ("NCD") [refer note (k) below] 2,000 2,000

Loans from banks (unsecured)

Term loan [refer note (h) and (i) below] 1,898 4,392

Other loans and advances (unsecured)

Redeemable Optionally Convertible Debentures ("OCD") [refer note (l) below] 12,344 10,293
Financial assistance from DST [refer note (m) below] - 7
40,080 37,644
Less: Amount disclosed under the head "Current borrowings" [refer note 19] (95) (8,028)
39,985 29,616
The above amount includes
Secured borrowings 25,838 22,952
Unsecured borrowings 14,242 14,692
Amount disclosed under the head "Current borrowings" [refer note 19] (95) (8,028)
Net amount 39,985 29,616

(a) During the year ended March 31, 2021, HDFC bank has sanctioned external commercial borrowing (ECB) facility of USD 25
million to the Company. During the current year, the Company has drawn ECB of USD 10 million, carrying interest @ Libor
+ 1.75% per annum. The loan is repayable in 3 yearly instalments commencing from June 16, 2025. The loan is secured by
exclusive charge on the fixed assets to be created out of the term loan facility. The Company has entered into interest rate
swap converting the floating rate to fixed rate of interest.

(b) During the year ended March 31, 2016, Biocon Pharma Limited (‘BPL’) had obtained an external commercial borrowing of
USD 20 million from a bank, carrying interest of Libor + 1.75% p.a. The loan is payable in 11 unequal quarterly instalments
commencing from June 28, 2019. The loan is secured by first priority pari-passu charge on the plant and machinery of the
facility for the manufacture of pharmaceuticals. BPL has entered into interest rate swap to convert floating rate to fixed rate.
Carrying value of the loan as at March 31, 2022 amounts to ` Nil (March 31, 2021: 553)

(c) During the year ended March 31, 2021, Biocon Biosphere Limited (“BBSL”) obtained an external commercial borrowing of
USD 50 million from a bank, carrying interest @ Libor + 1.75% per annum. The loan is repayable in 3 yearly instalments
commencing from June 16, 2025. The loan is secured by first priority pari passu charge on the plant and machinery of the
facility for the manufacture of pharmaceuticals. Carrying value of the loan as at March 31, 2022 amounts to ` 2,581 (March
31, 2021: 460). BBSL has entered into interest rate swap to convert floating rate to fixed rate.

(d) Biocon Sdn. Bhd., Malaysia (‘Biocon Malaysia’) had obtained a term loan facility of USD 130 million from a consortium
of banks. During the year ended March 31, 2016, Biocon Malaysia had refinanced the existing term loan from Standard
Chartered Bank (Hong Kong) Limited. The loan is repayable in quarterly instalments which commenced from March, 2017.

Metamorphosis | 295
 Further on July 6, 2015, Biocon Sdn Bhd had entered into a new term loan agreement with Standard Chartered Bank (Hong
Kong) Limited for an amount of USD 70 million. The loan is repayable in quarterly instalments commenced from March, 2017.
The term loans are denominated in USD and carried an interest rate of LIBOR + 2.25% p.a and LIBOR + 1.80% p.a for facility
of USD 130 million and USD 70 million respectively. Effective January 28, 2021, Biocon Malaysia had restructured loan with
respect to interest rate for both the facilities. Revised interest rate is LIBOR + 1.20% p.a. During the year, the outstanding loan
has been repaid. Carrying value of the loan as at March 31, 2022 is Nil (March 31, 2021: ` 5,825). The term loan was secured
by a fixed and floating charge over all present and future assets and a charge over the freehold property of Biocon Malaysia.

(e) During the year ended March 31, 2019, Biocon Biologics Limited (“BBL”) had obtained an external commercial borrowing
facility of USD 75 million from MUFG Bank Limited. The long-term loan is repayable in 3 annual instalments commencing from
April 2024 and carries an interest rate of LIBOR + 1% p.a. The term loan facility is secured by first priority pari-passu charge
on the plant and machinery of the proposed facility for the manufacturing of pharmaceuticals. Carrying value of the loan as
at March 31, 2022 amounts to ` 5,694 (March 31, 2021: 5,490).

(f) During the year ended March 31, 2021, BBL had obtained a Term loan facility from The Hongkong and Shanghai Banking
Corporation Limited amounting to ` 3,500 repayable in 2 equal annual instalments commencing from April 2024. Term loan
carries an interest rate of 3 Months T Bill + 2.39% p.a. and are secured by first pari-passu charge on the present and future
of movable fixed assets of the BBL. Carrying value of the loan as at March 31, 2022 amounts to ` 3,500 (March 31, 2021:
3,500).

(g) During the year ended March 31, 2022, Biocon Biologics UK Limited (“Biocon UK”) (formerly “Biocon Biologics Limited”) has
obtained a term loan facility of USD 75 million from The Hongkong and Shanghai Banking Corporation Limited for a tenure
of 5 years. The term loan is repayable at the end of the term in one instalment and carries an interest rate of 1 month LIBOR
+ 1% p.a. and are secured by first pari-passu charge on the present and future Plant and Machineries of Biocon Malaysia.
Carrying value of the term loan as at March 31, 2022 is ` 5,694 (March 31, 2021: Nil).

(h) During the year ended March 31, 2022, Biocon Biologics UK Limited (“Biocon UK”) (formerly “Biocon Biologics Limited”) has
obtained a term loan facility of USD 25 million from The HDFC Bank Limited for a tenure of 5 years. The term loan is repayable
in 5 annual installments starting from the end of year 1 and carries an interest rate of 3 months LIBOR + 1.25% p.a. Carrying
value of the term loan as at March 31, 2022 is ` 1,898 (March 31, 2021: Nil).

(i) During the year ended March 31, 2021, Biocon Biologics UK Limited (“Biocon UK”) (formerly “Biocon Biologics Limited”) had
obtained a term loan facility of USD 60 million from HDFC Bank Limited for a tenure of 13 months, repayable in January 2022.
The term loan was repayable at the end of the term in one instalment and carried an interest rate of 1 month LIBOR + 0.95%
p.a. The loan was repaid in full at the end of the tenure. Carrying value of the term loan as at March 31, 2022 is Nil (March
31, 2021: ` 4,392).

(j) (i) Syngene International Limited (‘Syngene’) has entered into external commercial borrowing agreement dated September
21, 2020 to borrow USD 50 million (` 3,796) term loan facility. The facility is borrowed to incur capital expenditure at
Bengaluru, Hyderabad and Mangaluru premises of Syngene. The facility carries an interest rate of Libor + 1.30% and
are to be paid in three instalments of USD 7.5 million in September 2023, USD 12.5 million in September 2024 and USD
30 million in September 2025. The facility is secured by first priority pari passu charge on fixed assets (movable plant
and machinery) and second charge on current assets of Syngene. (ii) Syngene has entered into foreign currency term
loan agreement dated March 30, 2021 to borrow USD 20 million (` 1,519) term loan facility. The facility is borrowed
to incur capital expenditure at Bengaluru, Hyderabad and Mangaluru premises of the Company and was used for this
specific purpose. The facility carries an interest rate of Libor + 0.87% and are to be paid in three instalments of 15%,
25% and 60% from end of 3 years, 4 years and 5 years respectively from the date of origination. The facility is secured
by first priority pari passu charge on fixed assets (movable plant and machinery) and second charge on current assets of
Syngene.”

(k) During the year ended March 31, 2021, BBL had issued NCD of face value ` 10,00,000 each to HDFC Bank Limited amounting
to ` 2,000 for a tenure of 43 months. The debentures are repayable at the end of the term in April 2024. The NCD carries
call/put option on or after September 21, 2023. The debentures carries fixed coupon rate of 6.8949% p.a. and are secured

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by first pari-passu charge on the movable fixed assets of the BBL. Carrying value of the loan as at March 31, 2022 amounts to
` 2,000 (March 31, 2021: 2,000).

(l) During the year ended March 31, 2021 , BBL has entered into an agreement with Goldman Sachs India AIF Scheme-1(‘Investor’)
whereby the Investor has infused `11,250 against issuance of Optionally Convertible Debentures. The debentures are issued
for a tenor of 61 months, are unsecured, redeemable at par and carry a conversion option at any time during the tenor at the
option of the investor. It also bears a coupon rate of 5% per annum payable on compounded and cumulative basis only on
redemption. The debentures were accounted in the consolidated financial statements as a compound financial instrument in
line with Ind AS, given that it has both financial liability and equity feature. Accordingly, the consideration received has been
bifurcated into financial liability and equity in the consolidated financial statements. An amendment to the agreement, was
entered during the year ended March 31, 2022 which resulted in modification of the compound financial instrument. Also
Refer note 32.”

(m) On August 25, 2010, the Department of Science and Technology (‘DST’) under the Drugs and Pharmaceutical Research
Programme (‘DPRP’) has sanctioned financial assistance for a sum of ` 70 to the Company for financing one of its research
projects. The loan is repayable over 10 annual instalments of ` 7 each starting from July 1, 2012, and carries an interest rate
of 3% p.a. The Company has repaid the loan during the year ended March 31, 2022.

(n) On October 5, 2021, the Biofusion Therapeutics Limited (“BTL”) obtained an FCNR loan(Foreign Currency Non Resident )
of USD 5.5 million from a bank, carrying interest @ SOFR + 228 bps per annum. The loan is payable in 8 equal quarterly
instalments commencing from December 14, 2024. The loan is secured by first priority pari passu charge on the plant and
machinery of the facility.

(o) The Group has met all the covenants under these arrangements as at March 31, 2022 and March 31, 2021.

(p) The Group’s exposure to liquidity, interest rate and currency risks are disclosed in note 36.

15. Leases
The Group has entered into lease agreements for use of land, buildings and vehicles which expires over a period ranging upto the
year of 2117. Gross payments for the year aggregate to ` 199 (March 31, 2021: ` 166).

The following is the movement in lease liabilities:

Particulars Land Buildings Vehicles Total

Balance at April 01, 2020 5 837 57 899
Additions during the year - 361 32 393
Finance cost accrued during the year - 94 7 101
Deletions - - (2) (2)
Payment of lease liabilities (3) (125) (38) (166)
Balance at March 31, 2021 2 1,167 56 1,225
Additions during the year - 1,337 22 1,359
Finance cost accrued during the year - 112 5 117
Deletions - (68) (8) (76)
Payment of lease liabilities (2) (162) (35) (199)
Balance at March 31, 2022 - 2,386 40 2,426

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The following is the break-up of current and non-current lease liabilities:

March 31, 2022 March 31, 2021

Non current lease liabilities 2,215 1,141
Current lease liabilities 211 84
2,426 1,225

The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:

March 31, 2022 March 31, 2021

Less than one year 261 184
One to five years 1,065 593
More than five years 3,019 1,547
Total 4,345 2,324

The following are the amounts recognised in Profit or loss:

March 31, 2022 March 31, 2021

Amortisation of right to use assets 161 124
Interest expenses on lease liabilities 117 101
Short-term lease payment [refer note (i) below] 38 58
Total 316 283

(i) The Group applies the short-term lease recognition exemption to its short-term leases of certain premises taken on lease (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).

16. Other financial liabilities

March 31, 2022 March 31, 2021
(a) Non-current
Gross liability on written put options [refer note (i) below] 15,033 15,033
15,033 15,033
(i) During the year ended March 31, 2020, the Group has entered into an agreement with Activ Pine LLP (‘Investor’) whereby the
Investor has infused ` 5,363 against issuance of equity shares of a subsidiary company, Biocon Biologics Limited (‘BBL’), which
represents 2.44 % shareholding of BBL. The consideration was received and equity shares were allotted on January 21, 2020.

During the year ended March 31, 2021, the Group has entered into an agreement with Tata Capital Growth Fund II (‘Investor’)
whereby the Investor has infused ` 2,250 against issuance of equity shares of a subsidiary company, BBL, which represents
0.85% shareholding of BBL. The consideration was received and equity shares were allotted on September 03, 2020.

During the year ended March 31, 2021, the Group has entered into an agreement with Beta Oryx Limited (‘Investor’) whereby
the Investor has infused ` 5,550 against issuance of equity shares of a subsidiary company, BBL, which represents 1.87%
shareholding of BBL. The consideration was received and equity shares were allotted on March 09, 2021.

As per the above agreements , the Group will be required to provide various options to enable the Investor to exit over a
period of time. In the event, such exit events do not occur, the Investor may require the parent company (Biocon Limited), to
buy them out at certain prices agreed under the arrangement. Such an obligation to provide exit to the Investors required the
Group to record a financial liability towards gross obligation amounting to ` 15,033 in the consolidated financial statements
in accordance with the Indian Accounting Standards (Ind AS).

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The Group in accordance with Ind AS has elected an accounting policy choice to follow an anticipated acquisition method
on initial recognition which requires recognition of a gross obligation liability with a corresponding derecognition of non-
controlling interest balance in its consolidated financial statements. Further, in accordance with the generally accepted
accounting principles, the Group has made an accounting policy choice to present any subsequent change in the fair value of
gross obligation liability in other equity.

(b) Current
March 31, 2022 March 31, 2021
Book overdraft 2 95
Unpaid dividends 4 5
Derivative premium payable - 94
Interest accrued but not due 140 125
Payables for capital goods 3,486 3,497
3,632 3,816

17. Provisions
March 31, 2022 March 31, 2021
(a) Non-current
Provision for employee benefits
Gratuity [refer note 35] 917 1,062
917 1,062

(b) Current
Provision for employee benefits 314 160
Gratuity [refer note 35] 855 798
Compensated absences 136 136
Provision for sales return 1,305 1,094

(i) Movement in provisions

For the year ended March 31, 2022

Gratuity Compensated Sales return
absences
Opening balance 1,222 798 136
Provision recognised / (reversed) during the year 9 57 -
Closing balance 1,231 855 136

For the year ended March 31, 2021

Gratuity Compensated Sales return
absences
Opening balance 1,012 740 136
Provision recognised / (reversed) during the year 210 58 -
Closing balance 1,222 798 136

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18. Other liabilities
March 31, 2022 March 31, 2021
(a) Non-current
Deferred revenues [refer note 21] 12,151 10,253
12,151 10,253

(b) Current
Deferred revenues [refer note 21] 1,053 1,030
Advances from customers [refer note 21] 4,445 4,006
Statutory taxes and dues payable 432 481
Other dues 320 293
6,250 5,810

19. Current borrowings

March 31, 2022 March 31, 2021
From banks/ financial institutions
Packing credit foreign currency loan (unsecured) [refer note (i) and (ii) below] 5,238 5,381
Packing credit rupee export loan (unsecured) [refer note (iii) below] 3,250 -
Cash credit (unsecured) [refer note (iv) below] 93 561
Working capital loan (secured) [refer note (v) below] 379 -
Current maturities of non-current borrowings [refer note 14] 95 8,028
9,055 13,970
The above amount includes
Secured borrowings 474 8,028
Unsecured borrowings 8,581 5,942

(i) Syngene has obtained foreign currency denominated short term unsecured pre-shipment credit loans of ` 2,581 (USD
34 million) [March 31, 2021 : ` 2,599 (USD 35.5 million)] that carries interest rate of SOFR + 0.20% to +0.30% (p.a)
[March 31, 2021 : Libor + 0.20% to + 0.30% (p.a)]. The loans are repayable after the end of 6 months from the date of
its origination.

(ii) BBL has obtained foreign currency denominated short term unsecured pre-shipment credit loans from various banks that
carries interest rate ranging from SOFR+0.20% to SOFR+1.40% p.a. Packing credit foreign currency loan tenure is upto
180 days from the date of draw down.

(iii) BBL has obtained rupee denominated short term unsecured pre-shipment credit loans from various banks that carries
interest of 4.40% p.a. Packing credit rupee loan tenure is upto 180 days from the date of draw down.

(iv) Biocon Malaysia had availed working capital facilities upto USD 15 million carrying an interest rate of LIBOR + 0.5% p.a.

(v) Biocon Pharma Inc. (BPI) has availed working capital facilities upto USD 5 million carrying an interest rate of 0.9% - 2.1%
p.a. The working capital facilities are secured by a charge on inventories and accounts receivables of BPI.

20. Trade payables

Year ended Year ended
March 31, 2022 March 31, 2021
Trade payables
- total outstanding dues of micro and small enterprises 1,036 770
- total outstanding dues of creditors other than micro and small enterprises 15,049 14,369
16,085 15,139

All trade payable are ‘current’. The Group’s exposure to currency and liquidity risks related to trade payables is disclosed in
Note 36.

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Trade payables aging schedule: Outstanding for following periods from due date of payment
Total
Unbilled Not Due Less than 1 year 1-2 years 2-3 years More than 3 years
March 31, 2022
Outstanding dues of micro and small enterprises - 768 261 4 2 1 1,036
Outstanding dues of creditors other than micro and small enterprises 8,223 3,874 2,750 94 42 66 15,049
8,223 4,642 3,011 98 44 67 16,085
March 31, 2021
Outstanding dues of micro and small enterprises - 458 307 4 1 - 770
Outstanding dues of creditors other than micro and small enterprises 7,633 3,439 2,869 345 40 43 14,369
7,633 3,897 3,176 349 41 43 15,139

21. Revenue from contracts with customers

March 31, 2022 March 31, 2021
Sale of products
Finished goods* 51,866 47,300
Traded goods 2,849 1,853
Sale of services
Contract research and manufacturing services income [Refer note (a)] 25,048 20,526
Licensing and development fees 485 395
Other operating revenue
Sale of process waste 244 184
Export incentives - 96
Others 1,348 1,077
Revenue from operations 81,840 71,431

(a) Revenues include manufacture and sale of remdesivir, a broad-spectrum antiviral medication for the treatment of
Covid-19 infection under the brand name ‘RemWin’ in a voluntary licensing agreement received from Gilead Sciences
Inc.

* includes profit share

21.1 Disaggregated revenue information

Set out below is the disaggregation of the Group’s revenue from contracts with customers:

Year ended March 31, 2022

Generics Biosimilars Novels Research Total
Revenue from contracts with customers
Sale of products 21,195 33,520 - - 54,715
Sale of services 25 460 510 24,538 25,533
21,220 33,980 510 24,538 80,248
Revenue from other sources
Other operating revenue 690 321 - 581 1,592
690 321 - 581 1,592

Total Revenue from operations 21,910 34,301 510 25,119 81,840

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 Year ended March 31, 2021
Generics Biosimilars Novels Research Total
Revenue from contracts with customers
Sale of products 22,355 26,798 - - 49,153
Sale of services 36 355 105 20,425 20,921
22,391 27,153 105 20,425 70,074
Revenue from other sources
Other operating revenue 141 628 - 588 1,357
141 628 - 588 1,357

Total Revenue from operations 22,532 27,781 105 21,013 71,431

21.2 Changes in contract liabilities - advances from customers and deferred revenues
March 31, 2022 March 31, 2021
Balance at the beginning of the year 15,289 13,612
Add:- Increase due to invoicing during the year 7,922 6,436
Add:- foreign currency translation 262 (181)
Less:- Amounts recognised as revenue during the year (5,824) (4,578)
Balance at the end of the year 17,649 15,289

Expected revenue recognition from remaining performance obligations:

March 31, 2022 March 31, 2021
- Within one year 5,498 5,036
- More than one year 12,151 10,253
17,649 15,289

21.3 Contract balances

March 31, 2022 March 31, 2021
Trade receivables including unbilled revenue 20,582 15,033
Contract assets - 64
Contract liabilities 17,649 15,289

Trade receivables are non-interest bearing. Refer note 6(b), 8(b) and 11. Contract liabilities include deferred revenue and
advance from customers.

21.4 Performance obligation:

In relation to information about Group’s performance obligations in contracts with customers refer note 2(l).

22. Other income

Year ended Year ended
March 31, 2022 March 31, 2021
Interest income on:
Deposits with banks and financial institutions 1,081 760
Others 40 10
Net gain on sale of current investments 133 84
Net gain on financial assets measured at fair value through profit or loss (12) 29
Gain on dilution of interest in a subsidiary [refer note 43] 299 1,597
Foreign exchange gain, net 579 -
Other non-operating income 7 65
2,127 2,545

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23. Cost of materials consumed

Year ended Year ended
March 31, 2022 March 31, 2021
Inventory at the beginning of the year 6,807 5,401
Add: Purchases 29,889 25,708
Less: Inventory at the end of the year (8,557) (6,807)
Cost of materials consumed 28,139 24,302
24. Changes in inventories of finished goods, work-in-progress and stock-in-trade
Year ended Year ended
March 31, 2022 March 31, 2021
Inventory at the beginning of the year
Stock-in-trade 221 680
Finished goods 4,289 5,071
Work-in-progress 7,349 3,207
11,859 8,958
Inventory at the end of the year
Stock-in-trade 255 221
Finished goods 3,546 4,289
Work-in-progress 10,624 7,349
14,425 11,859
(2,566) (2,901)

25. Employee benefits expense

Year ended Year ended
March 31, 2022 March 31, 2021
Salaries, wages and bonus 15,584 14,502
Contribution to provident and other funds 762 728
Gratuity [refer note 35] 257 205
Share-based compensation expense [refer note 30] 1,257 1,060
Staff welfare expenses 941 915
18,801 17,410

26. Finance costs

Year ended Year ended
March 31, 2022 March 31, 2021
Interest expense on financial liabilities measured at amortised cost 559 476
Interest on finance lease obligation 117 101
676 577

27. Depreciation and amortisation expense

Year ended Year ended
March 31, 2022 March 31, 2021
Depreciation of property, plant and equipment [refer note 3] 6,671 5,896
Amortisation of intangible assets [refer note 4 (a)] 1,310 1,131
Amortisation of right of use assets [refer note 4 (b)] 161 124
8,142 7,151

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28. Other expenses
Year ended Year ended
March 31, 2022 March 31, 2021
Royalty and technical fees 52 17
Rent 38 58
Communication expenses 95 70
Travelling and conveyance 509 453
Professional charges 1,301 2,029
Payment to auditors 30 24
Directors' fees including commission 133 81
Power and fuel 3,164 2,703
Insurance 443 406
Rates, taxes and fees 306 222
Lab consumables 1,655 1,361
Repairs and maintenance
Plant and machinery 2,682 2,593
Buildings 292 293
Others 1,571 1,239
Selling expenses
Freight outwards and clearing charges 563 635
Sales promotion expenses 1,692 1,577
Commission and brokerage (other than sole selling agents) 183 147
Bad debts written off 8 17
Provision/ (reversal) for doubtful debts, net 240 -
Net loss on financial assets measured at fair value through profit or loss 274 -
Printing and stationery 115 101
Loss on sale of assets, net 23 73
Foreign exchange loss, net - 89
Research and development expenses 6,121 4,597
Clinical trial and development expenses 62 92
CSR expenditure 207 184
Miscellaneous expenses 313 241
22,072 19,302
Less: Expenses capitalized to intangible assets (1,155) (739)
20,917 18,563
29. In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The Group has adopted measures
to curb the spread of infection in order to protect the health of its employees and ensure business continuity with minimal
disruption.

The Group has considered internal and external information while finalizing various estimates in relation to its financial
statement captions upto the date of approval of the financial statements by the Board of Directors. The actual impact of the
global health pandemic may be different from that which has been estimated, as the COVID -19 situation evolves in India and
globally. The Group will continue to closely monitor any material changes to future economic conditions.

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30. Employee stock compensation

(a) Biocon ESOP Plan
On September 27, 2001, Biocon’s Board of Directors approved the Biocon Employee Stock Option Plan (‘ESOP Plan 2000’) for
the grant of stock options to the employees of the Company and its subsidiaries / joint venture company. The Nomination and
Remuneration Committee (‘Remuneration Committee’) administers the plan through a trust established specifically for this
purpose, called the Biocon India Limited Employee Welfare Trust (ESOP Trust).

The ESOP Trust shall make additional purchase of equity shares of the Company using the proceeds from the loan obtained
from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan and shall subscribe, when
allotted to such number of shares as is necessary for transferring to the employees. The ESOP Trust may also receive shares
from the promoters for the purpose of issuance to the employees under the ESOP Plan. The Remuneration Committee shall
determine the exercise price which will not be less than the face value of the shares.

Grant V
In April 2008, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 25%, 35% and 40% of the total grant at the end of first, second and third year from
the date of grant for existing employees and at the end of 3rd, 4th and 5th year from the date of grant for new employees.
Exercise period is 3 years for each grant. The conditions for number of options granted include service terms and performance
grade of the employees. These options are exercisable at the market price of Company’s shares on the date of grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year - - 87,000 75
Granted during the year - - - -
Lapses/forfeited during the year - - - -
Exercised during the year - - (87,000) 75
Expired during the year - - - -
Outstanding at the end of the year - - - -
Exercisable at the end of the year - - -
Weighted average remaining contractual life (in years) - - - -
Range of exercise prices for outstanding options at the - - - -
end of the year

Grant VI
In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting
conditions include service terms and performance grade of the employees. These options are exercisable at the closing market
price of Company’s shares existing on the date preceding to the date of grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year - 33,000 78
Granted during the year - - - -
Lapses/forfeited during the year - - - -
Exercised during the year - - (33,000) 78
Expired during the year - - - -
Outstanding at the end of the year - - - -
Exercisable at the end of the year - - -
Weighted average remaining contractual life (in years) - - - -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the - - - -
end of the year

Metamorphosis | 305
 Grant VII
In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting
conditions include service terms and performance grade of the employees. These options are exercisable at the closing market
price of Company’s shares existing on the date preceding to the date of grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 20,08,750 82 33,92,275 81
Granted during the year - - - -
Lapses/forfeited during the year (84,000) 77 (1,20,000) 75
Exercised during the year (13,35,750) 79 (12,63,525) 81
Expired during the year - - - -
Outstanding at the end of the year 5,89,000 88 20,08,750 82
Exercisable at the end of the year 1,03,000 82 3,57,250 79
Weighted average remaining contractual life (in years) 0.9 - 1.6 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the 76-124 - 69-124 -
end of the year

Grant VIII
In July 2015, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting
conditions include service terms and performance grade of the employees. These options are exercisable at the closing price
as per National Stock Exchange as on the last day of the month preceding the month of first grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 1,47,000 75 7,11,500 80
Granted during the year - - - -
Lapses/forfeited during the year - - (1,36,500) 38
Exercised during the year (42,000) 73 (4,28,000) 73
Expired during the year - - -
Outstanding at the end of the year 1,05,000 76 1,47,000 75
Exercisable at the end of the year 1,05,000 76 99,000 76
Weighted average remaining contractual life (in years) - - 1 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the 76.0 - 71-76 -
end of the year

Grant IX
In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting
conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing
price as per National Stock Exchange as on the preceding day to the date of grant.

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March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 53,07,574 124 73,51,312 127
Granted during the year - - - -
Lapses/forfeited during the year (13,90,500) 135 (17,80,875) 136
Exercised during the year (4,70,870) 95 (2,62,863) 98.3
Expired during the year - - - -
Outstanding at the end of the year 34,46,204 125 53,07,574 124
Exercisable at the end of the year 2,05,079 98 1,05,762 81
Weighted average remaining contractual life (in years) 3.0 - 4.1 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the 69-173 - 69-173 -
end of the year

Grant X
In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this
grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth
year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting
conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing
price as per National Stock Exchange as on the the preceding day to the date of grant.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 48,57,076 142 70,10,758 137
Granted during the year - - - -
Lapses/forfeited during the year (2,56,125) 148 (3,40,498) 152
Exercised during the year (19,69,077) 130 (18,13,184) 120
Expired during the year - - - -
Outstanding at the end of the year 26,31,874 151 48,57,076 142
Exercisable at the end of the year 9,51,249 139 7,77,449 125
Weighted average remaining contractual life (in years) 1.3 - 2.2 -
Weighted average fair value of options granted (`) - - - -
Range of exercise prices for outstanding options at the 69-167 - 62-167 -
end of the year

The average market price of the Company’s share during the year ended March 31, 2022 is ` 373 (March 31, 2021 - ` 407)
per share

(b) RSU Plan 2015

On March 11, 2015, Biocon’s Remuneration Committee approved the Biocon - Restricted Stock Units (RSUs) of Syngene (‘RSU
Plan 2015’) for the grant of RSUs to the employees of the Company and its subsidiaries other than Syngene. The Remuneration
Committee administers the plan through a trust, called the Biocon Limited Employee Welfare Trust. For this purpose, on March
31, 2015, the Company transferred 2,000,000 equity shares of Syngene to Biocon Limited Employees Welfare Trust.

In April 2015, the Company approved the grant to its employees under the RSU Plan 2015. The RSUs under this grant would
vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from
the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions
include service terms and performance grade of the employees. Exercise price of RSUs will be Nil.

Metamorphosis | 307
 March 31, 2022 March 31, 2021
Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 2,85,974 - 7,50,819 -
Granted during the year - - - -
Lapses/forfeited during the year (50,398) - (28,749) -
Exercised during the year (1,22,640) - (4,36,096) -
Expired during the year (9,178) - - -
Outstanding at the end of the year 1,03,758 - 2,85,974 -
Exercisable at the end of the year 58,797 - 49,873 -
Weighted average remaining contractual life (in years) 1.1 - 2.8 -
Weighted average fair value of options granted (`) - -

(c) RSU Plan 2019

On January 7, 2019, Biocon’s Nomination and Remuneration Committee (‘NRC’) and the Board of Directors approved the
Biocon Biologics - Restricted Stock Units (RSUs) of Biocon Biologics Limited (‘RSU Plan 2019’) for grant of RSUs to employees
of the Group. The NRC administers the plan though a trust called, Biocon Limited Employee Welfare Trust. For this purpose
on January 8, 2020, the Company transferred 2,161,904 equity shares of Biocon Biologics Limited to Biocon Limited Employee
Welfare Trust.

The RSUs under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first,
second, third and fourth year, respectively, from the date of grant or from the date of occurrence of certain future events,
whichever is later, with an exercise period ending one year from the end of last vesting. The vesting conditions include service
terms and performance grade of the employees.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 85,14,615 2 99,60,570 2
Granted during the year - - 11,25,470 2
Lapses/forfeited during the year (15,11,608) 2 (25,71,425) 2
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 70,03,007 2 85,14,615 2
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) 6.0 - 7.0 -
Weighted average fair value of options granted (`) 244 - 244 -

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:

Particulars March 31, 2022 March 31, 2021

Weighted Average Exercise Price - 2

Expected volatility - 33.7% to 36.9%
Life of the options granted (vesting and exercise period) in years - 7
Average risk-free interest rate - 5.4%
Expected dividend rate - 0%

(d) RSU Plan 2020

On May 14, 2020, Biocon’s Nomination and Remuneration Committee (‘NRC’) and the Board of Directors approved the Biocon
Restricted Stock Units (RSUs) Long Term Incentive Plan Financial Year 2020-24 (“RSU Plan 2020”) for grant of RSUs to present
and/or future employees of the Company and its present and future subsidiary companies. The plan is implemented though
a trust called, Biocon India Limited Employee Welfare Trust wherein the Company will issue shares to the trust by way of fresh
allotment over a period of time.

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 Biocon Limited & Subsidiaries

The RSUs granted under this Plan shall vest over a period of time (service condition) and based upon the performance of the
employee. The period of vesting shall be determined as per the date of grant and the maximum period of vesting shall not
extend beyond August 1, 2024. The actual number of RSUs to be vested each year for each Grantee shall be based on his
individual performance conditions, the key parameters of which shall be measured through growth in revenue and profits,
delivering on key strategic initiatives and shareholders’ value creation and such other conditions as may be determined by the
Managing Director and Chief Executive Officer of the Company in accordance with the overall terms set by the NRC.

March 31, 2022 March 31, 2021

Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year 26,30,000 5 - -
Granted during the year 7,24,083 5 29,30,000 5
Lapses/forfeited during the year (4,08,345) 5 (3,00,000) 5
Exercised during the year (4,30,762) 5 - -
Expired during the year - - - -
Outstanding at the end of the year 25,14,976 5 26,30,000 5
Exercisable at the end of the year 46,147 5 - -
Weighted average remaining contractual life (in years) 3.3 - 4.2 -
Weighted average fair value of options granted (`) 369 337

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model for grants during the
year are as follows:

Particulars March 31, 2022 March 31, 2021

Weighted Average Exercise Price 5 5
Expected volatility 33.0% to 36.2% 34.0% to 36.4%
Life of the options granted (vesting and exercise period) in years 4.03 5
Average risk-free interest rate 5.6% 5.3%
Expected dividend rate 0.6% 0.8%

(e) Syngene ESOP Plan 2011

On July 20, 2012, Syngene Employee Welfare Trust (‘Trust’) was created for the welfare and benefit of the employees and
directors of Syngene and administered by the Nomination and Remuneration Committee. The Board of Directors approved
the employee stock option plan of Syngene. On October 31, 2012, the Trust subscribed into the equity shares of the Syngene
using the proceeds from interest free loan of ` 150 obtained from Syngene.

Grant
Pursuant to the Scheme, Syngene has granted options to eligible employees of the Company under Syngene Employee Stock
Option Plan - 2011. Each option entitles for one equity share. The options under this grant will vest to the employees as 25%,
35% and 40% of the total grant at end of second, third and fourth year from the date of grant, respectively, with an exercise
period of three years for each grant. The vesting conditions include service terms and performance of the employees. These
options are exercisable at an exercise price of ` 11.25 [March 31, 2021 : ` 11.25] per share (Face Value of ` 10 per share).

Metamorphosis | 309
Details of Grant
Particulars March 31, 2022 March 31, 2021
No of Options No of Options
Outstanding at the beginning of the year 19,58,084 26,89,574
Granted during the year - -
Lapses/forfeited during the year (1,26,792) (1,11,265)
Exercised during the year (4,89,152) (6,20,225)
Outstanding at the end of the year 13,42,140 19,58,084
Exercisable at the end of the year 4,82,332 5,47,787
Weighted average exercise price 11.25 11.25
Weighted average share price at the date of exercise (In `) 589.6 503.6

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2022 is 0.9 years [March 31,
2021 - 1.40 years].

(f) Syngene Restricted Stock Unit Long Term Incentive Plan 2020
The Board of Directors of Syngene on April 24, 2019 and the Shareholders of the Company in the Annual General Meeting
held on July 24, 2019 approved the Syngene Restricted Stock Unit Long Term Incentive Plan FY 2020. Each option entitles for
one equity share. The options under this grant will vest to the employees as 25%, 25%, 25% and 25% of the total grant at
the end of first, second, third and fourth year from the date of first grant, respectively, with an exercise period of 5 years for
each grant. The vesting conditions include service terms and performance of the employees. These options are exercisable at
an exercise price of ` 10 per share (Face Value of ` 10 per share).

Details of Grant
Particulars March 31, 2022 March 31, 2021
No of Options No of Options
Outstanding at the beginning of the year 31,03,825 -
Granted during the year 4,18,132 31,84,649
Lapses/forfeited during the year (4,67,068) (80,824)
Exercised during the year (4,27,352) -
Outstanding at the end of the year 26,27,537 31,03,825
Exercisable at the end of the year 2,31,837 -
Weighted average exercise price - -
Weighted average fair value of shares granted during the year under Black 615.00 326.31
Scholes Model (In `)
Weighted average share price at the date of exercise (In `) 584.30 -

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2022 is 5.19 years [March
31, 2021 - 6.21].

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:

Particulars March 31, 2022 March 31, 2021

Dividend yield (%) 0.1% 0.2%
Exercise Price (In `) 10 10
Expected volatility 32.9% 26.9%
Life of the options granted (vesting and exercise period) in years 5.5 7.5
Average risk-free interest rate 5.0% 7.0%

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(g) Biocon Biologics Limited Restricted Stock Units Long Term Incentive Plan FY 2022-24

On July 21, 2021, Board of Directors of Biocon Biologics Limited (“BBL”) approved the Biocon Biologics Limited Restricted
Stock Units Long Term Incentive Plan FY 2022-24 (‘RSU Plan’) for the grant of Restricted stock units to the employees of BBL
and its subsidiaries. The Nomination and Remuneration Committee (‘Remuneration Committee’) administers the plan through
a trust established specifically for this purpose, called the Biocon Biologics Employees Welfare Trust (ESOP Trust).

In July 2021, BBL approved the grant to its employees under the RSU Plan. The options under this grant would vest to the
employees as 33%, 33% and 34% of the total grant at the end of first, second and third year, respectively from the date of
grant. Exercise period is 3 years for each grant. These options are exercisable at ` 10 per RSU. The RSU Plan provides for certain
market and non-market conditions for vesting which are measured through revenue, profit, achievement of key milestones
and share price increase.

Details of Grant
March 31, 2022 March 31, 2021
Particulars No of Weighted Average No of Weighted Average
Options Exercise Price (`) Options Exercise Price (`)
Outstanding at the beginning of the year - - - -
Granted during the year 51,42,857 10 - -
Lapses/forfeited during the year - - - -
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 51,42,857 10 - -
Exercisable at the end of the year 51,42,857 - - -
Weighted average remaining contractual life (in years) 5.3 - - -
Weighted average fair value of options granted (`) 208.1 -

Assumptions used in determination of the fair value of the stock options under the option pricing model for the grants during
the year are as follows:

Particulars March 31, 2022 March 31, 2021

Dividend yield (%) 0.0% -
Exercise Price (In `) 10 -
Expected volatility 49.2% - 50.2% -
Life of the options granted (vesting and exercise period) in years 6 -
Average risk-free interest rate 5.3% - 5.6% -

Particulars March 31, 2022 March 31, 2021

Summary of movement in respect of shares held by ESOP Trust is as follows:
Opening balance 1,11,68,774 1,48,11,872
Add: Shares purchased by the ESOP trust - 2,44,474
Add: Shares issued by the Company 6,00,000 -
Less: Shares exercised by employees (42,48,459) (38,87,572)
Closing balance 75,20,315 1,11,68,774

Options granted and eligible for exercise at end of the year 14,10,475 13,39,461
Options granted but not eligible for exercise at end of the year 78,76,579 1,09,80,939

Metamorphosis | 311
 Particulars March 31, 2022 March 31, 2021
Summary of movement in respect of equity shares of Syngene held by the
RSU Trust is as follows:
Opening balance 13,01,373 17,37,469
Less: Shares exercised by employees (1,22,640) (4,36,096)
Closing balance 11,78,733 13,01,373

Options granted and eligible for exercise at end of the year 58,797 49,873
Options granted but not eligible for exercise at end of the year 44,961 2,36,101

Summary of movement in respect of equity shares of Biocon Biologics

Limited held by the RSU Trust is as follows:
Opening balance* 1,08,09,520 1,08,09,520
Add: Shares purchased by the RSU Trust from Biocon Limited - -
Closing balance 1,08,09,520 1,08,09,520

Options granted but not eligible for exercise at end of the year 70,03,007 85,14,615

*adjusted for the effect of bonus shares

31. Earnings per share (‘EPS’)

Particulars March 31, 2022 March 31, 2021
Earnings
Profit for the year 6,484 7,405

Shares
Basic outstanding shares 1,20,05,50,000 1,20,00,00,000
Less: Weighted average shares held with the ESOP Trust (94,75,319) (1,28,69,238)
Weighted average shares used for computing basic EPS 1,19,10,74,681 1,18,71,30,762

Add: Effect of dilutive options granted but not yet exercised / not yet eligible for exercise 52,76,990 96,30,143
Weighted average shares used for computing diluted EPS 1,19,63,51,671 1,19,67,60,905

Earnings per equity share

Basic (in `) 5.44 6.24
Diluted (in `) 5.42 6.19

32. Exceptional items (net)

(a) During the quarter ended December 31, 2020, BBL had entered into an agreement with Goldman Sachs India AIF Scheme-
1(‘Investor’) whereby the Investor had infused `11,250 against issuance of Optionally Convertible Debentures. The debentures
were issued for a tenor of 61 months, were unsecured, redeemable at par and carry a conversion option at any time during
the tenor at the option of the investor. It also bears a coupon rate of 5% (on USD basis, payable only on redemption). The
consideration was received, and debentures were issued during the year ended March 31, 2021. The debentures were
accounted in the consolidated financial statements as a compound financial instrument in line with Ind AS, given that it has
both financial liability and equity feature. Accordingly, the consideration received was bifurcated into financial liability and
equity in the consolidated financial statements. An amendment to the agreement, was entered during the year ended March
31, 2022 which resulted in modification of the compound financial instrument. Resulting gain / loss on the modification was
recorded within statement of profit and loss and reserves. The amount of ` 274 was charged in the statement of profit and

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 Biocon Limited & Subsidiaries

loss and has been disclosed as an exceptional item during the year ended March 31, 2022. Consequential tax impact of ` 49
is included within tax expense during the year ended March 31, 2022.”

(b) The Ministry of Commerce and Industry, Government of India issued a Gazette notification number 29/2015-2020 dated
September 23, 2021 on Service Exports from India Scheme (SEIS) for services rendered in financial year 2019 - 2020 with the
total entitlement capped at ` 50 per exporter for the period. The Group during the year ended March 31, 2022 has reversed
the SEIS claim receivables of ` 427 for the financial year 2019-2020 and the same has been presented under exceptional items
in the consolidated financial statements for the year ended March 31, 2022. Consequential tax impact of ` 75 is included
within tax expense for the year ended March 31, 2022. Further non-controlling interest of ` 77 is included within non-
controlling interest in consolidated financial statements for the year ended March 31, 2022.

(c) BBL has obtained services of professional experts (like advisory, legal counsel, valuation experts etc.) for the transactions
referred in note 44. These services were availed during the financial year ended March 31, 2022 and hence these amounts
aggregating to ` 410 have been recorded as an expense in the consolidated statement of profit and loss under the head
‘Exceptional items’. Consequential tax impact of ` 169 is included within tax expense.

(d) Pursuant to a fire incident on December 12, 2016, certain fixed assets, inventory and other contents in one of the buildings
were damaged. Syngene had lodged an estimate of loss with the insurance company and the final assessment is currently
pending. Syngene over the past few years have received an aggregate amount of ` 2,120 as interim amounts which were
presented net of losses incurred under exceptional items in the respective consolidated financial statements. The amount
for the year ended March 31, 2021 aggregated ` 350 with a consequential tax of ` 122 was included within tax expense
in consolidated financial statements for the year ended March 31, 2021. Further non-controlling interest of ` 68 is included
within non-controlling interest in consolidated financial statements for the year ended March 31, 2021.

(e) During the previous year, Biosimilars business had incurred severance cost amounting to ` 224 arising from exit of certain key
personnel which is recorded as exceptional item. Consequential tax impact of ` 27 is included within tax expense.

33. Related party transactions

List of related parties with whom the Group had transactions during the year:
Name of related parties Nature of relationship
Key management personnel
Kiran Mazumdar-Shaw Executive Chairperson
Siddharth Mittal Managing Director & CEO
Indranil Sen Chief Financial Officer (w.e.f April 28, 2021) Interim Chief Financial Officer (w.e.f May 15,
2020 , upto September 22, 2020)
Anupam Jindal Chief Financial Officer (w.e.f September 22, 2020 upto April 28,2021)
Mayank Verma Company Secretary
Daniel Mark Bradbury Independent director
Mary Harney Independent director
Vijay Kumar Kuchroo Independent director
Meleveetil Damodaran Independent director
Bobby Kanubhai Parikh Independent director
John Shaw Non-executive director (upto July 23, 2021)
Ravi Rasendra Mazumdar Non-executive director
Eric Vivek Mazumdar Non-executive director (w.e.f November 01, 2021)

Associate
Bicara Therapeutics Inc. Associate (w.e.f. January 09, 2021)

Joint Ventures
NeoBiocon FZ LLC Joint-venture

Metamorphosis | 313
Other related parties
Biocon Foundation Trust in which key management personnel are the Board of Trustees
Immuneel Therapeutics Private Limited Enterprise in which a director of the Company is a member of board of directors
Mazumdar Shaw Medical Foundation Trust in which key management personnel are the Board of Trustees
Glentec International Limited Enterprise owned by key management personnel
Catherine Rosenberg Relative of a director
Claire Mazumdar Relative of a director
Jeeves Enterprise in which relative to a director of the Company is proprietor
Narayana Hrudayalaya Limited Enterprise in which a director of the Company is a member of board of directors

The Group has the following related party transactions

Year ended Year ended
Particulars Transaction / Balances
March 31, 2022 March 31, 2021
Key management Salary and perquisites [refer note (a) & (b) below] 107 101
personnel Sitting fees and commission 76 44
Outstanding as at the year end:
- Trade and other payables 21 4

Associate Cross charges towards facility and other expenses 710 381
Interest income 15 2
Loan given to associate 683 -
Outstanding as at the year end:
- Trade and other receivables 1,255 660
- Loan (excluding losses recognized by using equity methodof ` 12) 683 -
- Allowance for expected credit loss 278 -

Joint Venture Purchase of goods 364 345

Sales promotion expenses 25 21
Rent expenses - 1
Professional charges 1 22
Expenses incurred on behalf of the related party 1 1
Outstanding as at the year end:
- Trade and other receivables - -*
- Trade and other payables 474 363

Other related parties Sale of goods 78 55

Sale of services 2 3
Salary and perquisites (includes sitting fees) 69 82
Health services availed 5 4
Allotment of equity shares - 100
CSR Expenditure 121 65
Other expenses 54 43
Outstanding as at the year end:
- Trade and other receivables 24 20
- Trade and other payables 3 5

* Amounts are not represented since the amounts are rounded off to Rupees million.
(a) The remuneration to key managerial personnel does not include the provisions made for gratuity and compensated absences,
as they are obtained on an actuarial basis for the Company as a whole.

(b) Share-based compensation expense allocable to key management personnel is ` 65 (March 31, 2021 - ` 71) which is not
included in the remuneration disclosed above. Share-based compensation expense allocable to key management personnel
issued by foreign associate is ` 2 (March 31, 2021 - ` 7) which is not included in the remuneration disclosed above.

(c) The above disclosures include related parties as per Ind AS 24 on “Related Party Disclosures” and Companies Act, 2013.

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 Biocon Limited & Subsidiaries

(d) All transactions with these related parties are priced on an arms length basis and none of the balances are secured.

34. Contingent liabilities and commitments

(to the extent not provided for)
Particulars March 31, 2022 March 31, 2021
(i) Contingent liabilities:
(a) Claims against the Company not acknowledged as debt 8,444 7,000
The above includes:
(i) Direct taxation 7,215 5,944
(ii) Indirect taxation (includes matters pertaining to disputes on central excise, custom duty, 881 708
service tax, VAT, CST, Entry tax and GST)
(iii) Other matters 348 348
In light of recent judgment of Honorable Supreme Court dated February 28, 2019 on the definition of “Basic Wages” under the
Employees Provident Funds & Misc. Provisions Act, 1952 and based on Group’s evaluation, there are significant uncertainties and
numerous interpretative issues relating to the judgement and hence It is unclear as to whether the clarified definition of Basic
Wages would be applicable prospectively or retrospectively. The amount of the obligation therefore cannot be measured with
sufficient reliability for past periods and hence has currently been considered to be a contingent liability in one of its subsidiary.

The Group is involved in taxation matters that arise from time to time in the ordinary course of business. Judgment is required
in assessing the range of possible outcomes for some of these tax matters, which could change over time as each of the
matter progresses depending on experience on actual assessment proceedings by tax authorities and other judicial precedents.
Based on its internal assessment supported by external legal counsel views, if any, the Group believes that it will be able to
sustain its positions if challenged by the authorities and accordingly no additional provision is required for these matters.
Other than the matter disclosed above, the Company is involved in disputes, lawsuits, proceedings etc. including patent and
commercial matters that arise from time to time in the ordinary course of business. Management is of the view that above matters
are not tenable and will not have any material adverse effect on the Group’s financial position and results of operations.”

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and 7,406 8,736
not provided for, net of advances

35. Employee benefit plans

(i) The Group has a defined benefit gratuity plan as per the Payment of Gratuity Act, 1972. Under this legislation, employee who
has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee’s
length of service and salary at retirement/termination age and does not have any maximum monetary limit for payments. The
gratuity plan is primarily a funded plan and the Group makes contributions to a recognised fund in India.

The plan assets are maintained with HDFC Life Insurance Company Limited (HDFC Life) in respect of gratuity scheme for
employees of the Group. The details of investments maintained by the HDFC Life are not available with the Group and not
disclosed. The expected rate of return on plan assets is 5.7% - 6.4% p.a. (March 31, 2021: 5.6% - 6.2% p.a.). The Group
actively monitors how the duration and expected yield of the investments are matching the expected outflows arising from
the employee benefit obligations.

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial
valuations involve making various assumptions that may differ from actual developments in the future. These includes the
determination of the discount rate, future salary increases and mortality rate. Due to these complexity involved in the valuation
it is highly sensitive to the changes in these assumptions. All assumptions are reviewed at reporting date. The present value of
the defined benefit obligation and the related current service cost and planned service cost were measured using the projected
unit cost method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the
amounts recognised in the Group’s financial statements as at balance sheet date:

Metamorphosis | 315
 Present value Fair value of Net
Particulars of defined plan assets defined benefit
benefit obligation (asset)/liability
Balance as on April 01, 2021 1,229 (7) 1,222
Current service cost 181 - 181
Interest expense / (income) 76 - 76
Amount recognised in Statement of profit and loss 257 - 257
Remeasurements:
Return on plan assets, excluding amounts included in - - -
interest expense / (income)
Actuarial (gain) / loss arising from:
Demographic assumptions (44) - (44)
Financial assumptions (56) - (56)
Experience adjustment (3) - (3)
Amount recognised in other comprehensive income (103) - (103)
Employers contribution - - -
Benefits paid (145) - (145)
Balance as at March 31, 2022 1,238 (7) 1,231
Present value Fair value of Net
Particulars of defined plan assets defined benefit
benefit obligation (asset)/liability
Balance as on April 01, 2020 1,054 (42) 1,012
Current service cost 142 - 142
Interest expense / (income) 65 (2) 63
Amount recognised in Statement of profit and loss 207 (2) 205
Remeasurements:
Return on plan assets, excluding amounts included in - - -
interest expense / (income)
Actuarial (gain) / loss arising from:
Demographic assumptions 8 - 8
Financial assumptions 54 - 54
Experience adjustment (42) - (42)
Amount recognised in other comprehensive income 20 - 20
Employers contribution (11) 37 26
Benefits paid (41) - (41)
Balance as at March 31, 2021 1,229 (7) 1,222
Particulars March 31, 2022 March 31, 2021
Non-current 917 1,062
Current 314 160
1,231 1,222
(ii) The assumptions used for gratuity valuation are as below:
March 31, 2022 March 31, 2021
Interest rate 5.7% - 6.4% 5.6% - 6.2%
Discount rate 5.7% - 6.4% 5.6% - 6.2%
Expected return on plan assets 5.7% - 6.4% 5.6% - 6.2%
Salary increase 9% - 10% 9% - 10%
Attrition rate 8% - 30% 5% - 30%
Retirement age - Years 58 58

Assumptions regarding future mortality experience are set in accordance with published statistics and mortality tables as per
IALM (2012-14)

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The weighted average duration of Group’s defined benefit obligation was 6-9 years (March 31, 2021 - 6-9 years).

These defined benefit plans expose the Group to actuarial risks, such as longevity and interest rate risk.

(iii) Sensitivity analysis

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity
analysis does not recognise the interrelationship between underlying parameters. Hence, the results may vary if two or more
variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any
parameter and the extent of the change if any. The sensitivity of the defined benefit obligation to changes in the weighted
principal assumptions are as below:

Particulars March 31, 2022 March 31, 2021

Increase Decrease Increase Decrease
Discount rate (1% change) (64) 72 (77) 87
Salary increase (1% change) 70 (63) 83 (75)
Attrition rate (1% change) (14) 16 (21) 23
Sensitivity of significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of
defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. Although, the analysis does
not take account of the full distribution of the cash flows expected under the plan, it does provide an approximation of the
sensitivity of the assumptions shown.
As of March 31, 2022 and March 31, 2021, the plan assets have been invested in insurer managed funds and the expected
contribution to the fund during the year ending March 31, 2023, is approximately ` 125 (March 31, 2022 - ` 119).
Maturity profile of defined benefit obligation
Particulars March 31, 2022 March 31, 2021
1st Following year 177 151
2nd Following year 131 110
3rd Following year 138 117
4th Following year 127 116
5th Following year 118 106
Years 6 to 10 507 647
Years 11 and above 674 734
(iv) Risk Exposure
These defined benefit plans typically expose the Group to actuarial risks as under:
a) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.

b) Interest rate risk: A decrease in bond interest rate will increase the plan liability.

c) Longevity risk: The present value of the defined plan liability is calculated by reference to the best estimate of the
mortality of plan participants. An increase in the life expectancy will increase the plan’s liability.

d) Salary risk: Higher than expected increase in salary will increase the defined benefit obligation.

(v) Other Long term benefits

Present value of other long term benefits (i.e compensated absences) obligations at the end of the year :

Particulars March 31, 2022 March 31, 2021

Compensated absences 855 798

Metamorphosis | 317
36. Financial instruments: Fair value and risk managements
A. Accounting classification and fair values

Carrying amount Fair value

March 31, 2022 FVTPL FVTOCI Amortised FVTOE* Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-current investments 145 848 2,629 - 3,622 585 - 408 993
Derivative assets - 2,691 - - 2,691 - 2,691 - 2,691
Current investments 2,518 - 9,659 - 12,177 2,518 - - 2,518
Loan to associate - - 671 671 - - - -
Trade receivables - - 20,582 - 20,582 - - - -
Cash and cash equivalents - - 6,630 - 6,630 - - - -
Other bank balances - - 10,845 - 10,845 - - - -
Other financial assets - - 4,960 - 4,960 - - - -
2,663 3,539 55,976 - 62,178 3,103 2,691 408 6,202
Financial liabilities
Borrowings - - 49,040 - 49,040 - - - -
Trade payables - - 16,085 - 16,085 - - - -
Derivative liabilities - 260 - - 260 - 260 - 260
Other financial liabilities - - 3,632 15,033 18,665 - - 15,033 15,033
Lease liabilities - - 2,426 - 2,426 - - - -
- 260 71,183 15,033 86,476 - 260 15,033 15,293
*Refer note 16 for measurement of non current financial liabilities carried at fair value through other equity (FVTOE).
Carrying amount Fair value
March 31, 2021 FVTPL FVTOCI Amortised FVTOE* Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-current investments 110 1,377 4,150 - 5,637 1,277 - 210 1,487
Derivative assets - 1,489 - - 1,489 - 1,489 - 1,489
Current investments 6,237 - 5,850 - 12,087 6,237 - - 6,237
Trade receivables - - 15,033 - 15,033 - - - -
Cash and cash equivalents - - 9,531 - 9,531 - - - -
Other bank balances - - 10,623 - 10,623 - - - -
Other financial assets - - 7,080 - 7,080 - - - -
6,347 2,866 52,267 - 61,480 7,514 1,489 210 9,213
Financial liabilities
Borrowings - - 43,586 - 43,586 - - - -
Trade payables - - 15,139 - 15,139 - - - -
Derivative liabilities - 878 - - 878 - 878 - 878
Other financial liabilities - - 3,816 15,033 18,849 - - 15,033 15,033
Lease liabilities - - 1,225 - 1,225 - - - -
- 878 63,766 15,033 79,677 - 878 15,033 15,911

*Refer note 16 for measurement of non current financial liabilities carried at fair value through other equity (FVTOE).

(a) The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be
equal to the carrying amounts of these items due to their short – term nature

(b) There have been no transfers between level 1, 2 and 3 needs to be made.

(c) The Group enters into derivative financial instruments with various counterparties. Derivatives are valued using valuation
techniques in consultation with market expert. The most frequently applied valuation technique include forward pricing,
swap models and Black Scholes Merton Model (for options valuation), using present value calculations. The models
incorporate various inputs including foreign exchange forward rates, interest rate curve and forward rates curve.

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B. Measurement of fair values

Fair value of liquid investments are based on quoted price. Derivative financial instruments are valued based on quoted prices
for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.

Sensitivity analysis
For the fair values of derivative contracts of foreign currencies, reasonably possible changes at the reporting date to one of the
significant observable inputs, holding other inputs constant, would have the following effects in other comprehensive income
(OCI).

March 31, 2022 March 31, 2021

Profit or (loss) Profit or (loss)
Increase Decrease Increase Decrease
Significant observable inputs
Spot rate of the foreign currency (1% movement) (736) 779 (533) 544
Interest rates (100 bps movement) 182 (182) 171 (171)

C. Financial risk management

The Group has exposure to the following risks arising from financial instruments:
- Credit risk
- Liquidity risk
- Market risk
(i) Risk management framework
The Group’s risk management is carried out by the treasury department under policies approved by the Board of
Directors. The Board provides written principles for overall risk management, as well as policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments and
investment of excess liquidity.

(ii) Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract,
leading to financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from
its financing activities, including deposits with banks and financial institutions and other financial instruments.

Customer credit risk is managed by each business unit subject to Group’s established policy, procedures and control
relating to customer credit risk management. The Audit and Risk Management Committee of the respective Company’s
has established a credit policy under which each new customer is analysed individually for creditworthiness before the
Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings,
where available, and other publicly available financial information. Outstanding customer receivables are regularly
monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit
insurance.

The Group establishes an allowance for impairment that represents its estimate of expected credit loss in respect of
trade and other receivables. The maximum exposure to credit risk at reporting date is primarily from trade receivables
amounting to ` 20,582 (March 31, 2020: ` 15,033). The movement in allowance for credit loss in respect of trade and
other receivables during the year was as follows:

Allowance for credit loss March 31, 2022 March 31, 2021
Opening balance 123 123
Allowance for credit loss recognised / (reversed) 240 -
Closing balance 363 123
Refer note 11 for details of aging of trade receivables and allowance for credit losses.

Metamorphosis | 319
 Receivables from one customers of the Group’s trade receivables is ` 4,483 (March 31, 2021 - ` 2,846) which is more
than 10 percent of the Group’s total trade receivables. Other than trade receivables, the Group has no significant class of
financial assets that is past but not impaired.

Credit risk on cash and cash equivalent and derivatives is limited as the Group generally transacts with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies which are rated A1+
or AAA . Investments primarily include investment in liquid mutual fund units, bonds and non-convertible debentures.

(iii) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is
perceived. In addition, the Group maintains lines of credit as stated in note 14 and note 19.

The following are the contractual maturities of financial liabilities and excluding interest payments. The tables have been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can
be required to pay:

March 31, 2022

Particulars Less than 1 year 1 - 2 years 2-5 years More than 5 years Total
Non- current borrowings 95 1,424 37,224 1,337 40,080
(including current maturities)
Current borrowings 8,960 - - - 8,960
Trade payables 16,085 - - - 16,085
Lease liabilities 261 250 815 3,019 4,345
Other financial liabilities 3,756 8 15,079 82 18,925
Total 29,157 1,682 53,118 4,438 88,395
March 31, 2021
Particulars Less than 1 year 1 - 2 years 2-5 years More than 5 years Total
Non- current borrowings 8,028 2,750 14,378 12,488 37,644
(including current maturities)
Current borrowings 5,942 - - - 5,942
Trade payables 15,139 - - - 15,139
Lease liabilities 184 170 423 1,547 2,324
Other financial liabilities 4,076 389 15,258 4 19,727
Total 33,369 3,309 30,059 14,039 80,776

(iv) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices, such as foreign exchange rates, interest rates and equity prices.

Foreign currency risk

The Group operates internationally and a major portion of the business is transacted in several currencies and consequently,
the Group is exposed to foreign exchange risk through operating and borrowing activities in foreign currency. The Group
holds derivative instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in
exchange rates and foreign currency exposure.

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The currency profile of financial assets and financial liabilities as at March 31, 2022 and March 31, 2021 are as below:

March 31, 2022 USD EUR Others Total

Financial assets
Investments 102 - - 102
Loans 683 683
Trade receivables 16,993 382 396 17,771
Cash and cash equivalents 3,891 203 510 4,604
Other bank balances 64 - - 64
Other financial assets 4,230 - 26 4,256
Financial liabilities
Non- current borrowings (including (34,575) - - (34,575)
current maturities)
Current borrowings (5,711) - - (5,711)
Trade payables (5,075) (337) (1,294) (6,706)
Other financial liabilities (945) (131) (118) (1,194)
Net financial assets / (liabilities) (20,343) 117 (480) (20,706)

March 31, 2021 USD EUR Others Total

Financial assets
Trade receivables 10,335 489 354 11,178
Cash and cash equivalents 7,503 462 104 8,069
Other bank balances 60 - - 60
Other financial assets 5,393 43 69 5,505
Financial liabilities
Non- current borrowings (including (21,845) - - (21,845)
current maturities)
Current borrowings (5,614) - (328) (5,942)
Trade payables (5,551) (757) (642) (6,950)
Other financial liabilities (1,747) (181) (230) (2,158)
Net financial assets / (liabilities) (11,466) 56 (673) (12,083)

Sensitivity analysis
The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial
instruments and the impact on other components of equity arises from foreign exchange forward/option contracts
designated as cash flow hedges.

Impact on profit or loss Impact on other

Particulars components of equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
USD Sensitivity
INR/USD - Increase by 1% (154) (31) (939) (648)
INR/USD - Decrease by 1% 154 31 982 659
EUR Sensitivity
INR/EUR - Increase by 1% 1 1 1 1
INR/EUR - Decrease by 1% (1) (1) (1) (1)

Metamorphosis | 321
 Derivative financial instruments
The following table gives details in respect of outstanding foreign exchange forward and option contracts:

Particulars March 31, 2022 March 31, 2021

Foreign exchange forward contracts to buy USD with maturity between 0-1 years USD 151 USD 131
Foreign exchange forward contracts to sell USD with maturity between 0-8 years USD 643 USD 427
European style option contracts with periodical maturity between 0-8 years USD 338 USD 244
European style range forward contracts with periodical maturity between 1-2 years USD 119 USD 127
Interest rate swaps used for hedging SOFR component in external commercial borrowings USD 155 USD 165
with maturity between 0-6 years

Cash flow and fair value interest rate risk

The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash
flow interest rate risk. During the year ended March 31, 2022 and March 31, 2021 the Group’s borrowings at variable
rate were mainly denominated in USD.

(a) Interest rate risk exposure

The exposure of the Group’s borrowing to interest rate changes at the end of the reporting period are as follows:

Particulars March 31, 2022 March 31, 2021

Variable rate borrowings 16,035 12,699
Fixed rate borrowings 33,005 30,887
Total borrowings 49,040 43,586

(b) Sensitivity
The Group policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when
necessary. They are therefore not subject to interest rate risk as defined under Ind AS 107, since neither the carrying
amount nor the future cash flows will fluctuate because of change in market interest rates.

37: Capital management

The key objective of the Group’s capital management is to ensure that it maintains a stable capital structure with the focus
on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The
Group focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for
potential future borrowings, if required without impacting the risk profile of the Group.

The Company’s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual
dividends in future periods.

The amount of future dividends of equity shares will be balanced with efforts to continue to maintain an adequate liquidity
status.

The capital structure as of March 31, 2022 and 2021 was as follows:

Particulars March 31, 2022 March 31, 2021

Total equity attributable to owners of the Company 84,325 76,269
As a percentage of total capital 63% 64%
Long-term borrowings 39,985 29,616
Short-term borrowings 9,055 13,970
Total borrowings 49,040 43,586
As a percentage of total capital 37% 36%
Total capital (Equity and Borrowings) 1,33,365 1,19,855

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38. Tax expenses

(a) Amount recognised in Statement of profit and loss
Particulars March 31, 2022 March 31, 2021
Current tax 2,204 1,966
Deferred tax expense / (income) related to:
MAT credit entitlement 235 (259)
Origination and reversal of temporary differences (324) 508
Tax expense for the year 2,115 2,215

(a) Reconciliation of effective tax rate

Particulars March 31, 2022 March 31, 2021
Profit before tax 9,831 10,677
Tax at statutory income tax rate 34.94% (March 31, 2021 - 34.94%) 3,435 3,731

Tax effects of amounts which are not deductible / (taxable) in calculating taxable income
Difference in overseas/domestic tax rates (402) (14)
Exempt income and other deductions (1,717) (1,595)
Non-deductible expense 46 70
Tax losses on which no deferred tax has been recognised (14) 950
Reversal of provision for tax for earlier years - (418)
Gain on dilution of interest in a subsidiary/ associate (104) (558)
Share in loss/ (profit) of joint venture and associate 723 277
Others 148 (228)
Income tax expense 2,115 2,215

(c) Tax losses

Particulars March 31, 2022 March 31, 2021
Unused temporary differences for which no deferred tax asset has been recognised 2,261 3,619
Potential tax impact 705 996
Expiry date [Financial year] 2022-23 to 2025-26 to
2028-29 2028-29

(d) Recognised deferred tax assets and liabilities

The following is the movement of deferred tax assets / liabilities presented in the consolidated balance sheet

For the year ended March 31, 2022 Opening Recognised Recognised Exchange Closing
balance in profit or in OCI difference balance
loss
Deferred tax liabilities
Property, plant and equipment and intangible 2,033 580 - 35 2,648
assets
Derivative assets 67 - 292 - 359
Others 114 24 (66) - 72
Gross deferred tax liabilities 2,214 604 226 35 3,079

Deferred tax assets

Provision for employee benefits 423 112 9 - 544
Derivative liabilities 156 71 (175) - 52
Allowance for doubtful debts 20 71 - - 91
Other deductible expenses 89 4 - - 93
MAT credit entitlement 3,949 (235) - - 3,714
Deferred revenue 114 (54) - (6) 54
Others 217 724 - - 941
Gross deferred tax assets 4,968 693 (166) (6) 5,489
2,754 89 (392) (41) 2,410
Metamorphosis | 323
 For the year ended March 31, 2021 Opening Recognised Recognised Exchange Closing
balance in profit or in OCI difference balance
loss
Deferred tax liabilities
Property, plant and equipment and intangible 1,760 305 - (32) 2,033
assets
Derivative assets - - 67 - 67
Others 45 - 69 - 114
Gross deferred tax liabilities 1,805 305 136 (32) 2,214

Deferred tax assets

Provision for employee benefits 434 (18) 7 - 423
Derivative liabilities 449 - (293) - 156
Allowance for doubtful debts 11 9 - - 20
Other deductible expenses 127 (38) - - 89
MAT credit entitlement 3,690 259 - - 3,949
Deferred revenue 218 (101) - (3) 114
Others 258 (55) 14 - 217
Gross deferred tax assets 5,187 56 (272) (3) 4,968
3,382 (249) (408) 29 2,754

Deferred tax balances March 31, 2022 March 31, 2021

Deferred tax assets (net) 2,933 3,077
Deferred tax liabilities (net) (523) (323)
2,410 2,754

39. Interest in other entities

(a) Subsidiaries
The Group’s subsidiaries as at March 31, 2022 are set out below. Unless otherwise stated, they have share capital consisting
solely of equity shares that are held by the Group, and proportion of ownership interests held equals the voting rights held by
the group. The country of incorporation or registration is also their principal place of business.

No. Name of entity Country of Ownership interest Ownership interest Principal activities
incorporation held by the group held by the non-
controlling interest
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
% % % %
1 Syngene International Limited India 70.1 70.2 29.9 29.8 Contract research and
manufacturing services
2 Biocon Pharma Limited India 100.0 100.0 - - Biopharmaceutical
manufacturing
3 Biocon Biologics Limited* India 93.5 93.5 6.5 6.5 Biopharmaceutical
manufacturing
4 Biocon Biosphere Limited India 100.0 100.0 - - Biopharmaceutical
manufacturing
5 Biofusion Therapeutics Limited India 100.0 100.0 - - Research services
6 Biocon Academy India 100.0 100.0 - - Not for profit organisation
7 Biocon SA Switzerland 100.0 100.0 - - Research and development
8 Biocon Sdn Bhd Malaysia 93.5 93.5 6.5 6.5 Biopharmaceutical
manufacturing and sale of
biosimilar products
9 Biocon Biologics Healthcare Malaysia 93.5 93.5 6.5 6.5 Sale of biopharmaceutical
Malaysia SDN. BHD products

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No. Name of entity Country of Ownership interest Ownership interest Principal activities
incorporation held by the group held by the non-
controlling interest
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
% % % %
10 Biocon Biologics UK Limited United 93.5 93.5 6.5 6.5 Sale of biosimilar products
Kingdom
11 Biocon Pharma UK Limited United 100.0 100.0 - - Sale of pharmaceutical
Kingdom products
12 Biocon Biologics Inc. United States 93.5 93.5 6.5 6.5 Business support and
marketing for Biosimilar
products
13 Biocon Pharma Inc. United States 100.0 100.0 - - Sale of pharmaceutical
products
14 Syngene USA Inc. United States 70.1 70.2 29.9 29.8 Marketing and business
development support
services
15 Biocon Biologics do Brasil Ltda. Brazil 93.5 93.5 6.5 6.5 Sale of biopharmaceutical
products
16 Biocon Biologics FZ–LLC Dubai 93.5 93.5 6.5 6.5 Sale of biopharmaceutical
products
17 Biocon FZ LLC. Dubai 100.0 100.0 - - Sale of pharmaceutical
products
18 Biocon Pharma Ireland Limited Ireland 100.0 100.0 - - Sale of pharmaceutical
products
19 Biocon Pharma Malta Limited Malta 100.0 100.0 - - Sale of pharmaceutical
products
20 Biocon Pharma Malta I Limited Malta 100.0 100.0 - - Sale of pharmaceutical
products

* Also refer note 16

(b) Non-controlling interests

Below is the summarised financial information for Syngene International Limited that has non-controlling interests that is
material to the Group as on March 31, 2022. The amounts disclosed for the subsidiary are before inter-company eliminations.

Summarised balance sheet

Particulars March 31, 2022 March 31, 2021
Non-current assets 33,579 30,765
Current assets 22,059 18,067
Total assets 55,638 48,832

Non-current liabilities 10,373 9,288

Current liabilities 12,289 11,330
Total liabilities 22,662 20,618

Net assets 32,976 28,214

Accumulated non-controlling interest 10,263 8,749

Metamorphosis | 325
 Summarised statement of Profit and loss
Particulars March 31, 2022 March 31, 2021
Revenue from operations 26,042 21,843
Profit for the year 3,958 4,049
Other comprehensive income 433 1,906
Total comprehensive income 4,391 5,955
Total comprehensive income allocated to non-controlling interests 1,313 1,771
Dividends (including dividend distribution tax) paid to non-controlling interests - -

Summarised statement of cash flows

Particulars March 31, 2022 March 31, 2021
Cash flows generated from operating activities 5,806 7,012
Cash flows used in investing activities (6,115) (6,281)
Cash flows (used in) / generated from financing activities (313) 580
Net (decrease) / increase in cash and cash equivalents (622) 1,311

(c) Interest in joint venture

The Group had only one joint venture in the name of NeoBiocon FZ LLC (“NeoBiocon”) , incorporated in Dubai as at March
31, 2022 holding 49% (March 31, 2021: 49%) of the equity stake and accounted for using the equity method. NeoBiocon
has share capital solely consisting of equity shares, which are held directly by ownership interest in the same proportion of
voting rights held. Also refer note 42.

Summarised balance sheet of NeoBiocon is as follows:

Particulars March 31, 2022 March 31, 2021
Non-current assets 3 5
Current assets 616 596
Total assets 619 601

Non-current liabilities 17 37
Current liabilities 167 221
Total liabilities 184 258

Net assets 435 343

Percentage ownership interest 49% 49%
Accumulated Group's share of net assets 80 43

Summarised statement of profit and loss of NeoBiocon

Particulars March 31, 2022 March 31, 2021
Revenue from operations 367 335
Profit/(Loss) for the year 76 (198)
Total comprehensive income 76 (198)
Share of Profit/(loss) from joint venture 37 (99)

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(d) Interest in associates

Particulars March 31, 2022 March 31, 2021
IATRICa Inc. - 4,285,714 (March 31, 2021 - 4,285,714) Series A Preferred Stock at US$ 0.70 131 131
each, par value US $ 0.00001 each
Less: Provision for decline, other than temporary, in the value of non-current investments (131) (131)
Bicara Therapeutics Inc.: 2,500,000 (March 31, 2021 - 2,500,000) equity shares of - 1,795
USD 0.0001 each 40,000,000 (March 31, 2021 - Nil) preference shares of USD 1 each
[Refer note 43(a)]
- 1,795
Total investment in associate and joint venture (c+d) * 80 1,838

* Includes ` Nil (March 31, 2021: 43) disclosed as assets held for sale.

40. Segment Reporting

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (“CODM”) evaluates the
Group’s performance based on an analysis of various performance indicators by business segments and geographic segments.
Accordingly, information has been presented both along business segments and geographic segments. The accounting
principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in
individual segments, and are as set out in the significant accounting policies.

April 1, 2021 to March 31, 2022

Particulars Generics Biosimilars Novels Research Unallocated/ Total

Eliminations
Revenues
External revenue 21,910 34,301 510 25,119 - 81,840
Inter-segment revenue 1,499 342 - 923 (2,764) -
Total revenues 23,409 34,643 510 26,042 (2,764) 81,840

Costs
Segment costs (21,152) (21,887) (802) (18,297) - (62,138)
Inter-segment costs (278) (2,567) 4 (333) 3,174 -

Results
Other income including interest 1,985 (61) 293 1,077 (1,167) 2,127
Operating profit 21,829
Depreciation / Amortisation (1,379) (4,028) (52) (3,097) 414 (8,142)
Finance costs (9) (668) (44) (241) 286 (676)
Share of profit/(loss) of joint 38 - (2,107) - - (2,069)
venture and associate
Segment results 2,614 5,432 (2,198) 5,151 (57) 10,942
Exceptional items, net - - - - (1,111) (1,111)
Income taxes - Current and - - - - (2,115) (2,115)
deferred
Non-controlling interests - - - - (1,232) (1,232)
Profit after taxes attributable 6,484
to shareholders

Metamorphosis | 327
 Particulars Generics Biosimilars Novels Research Unallocated/ Total
Eliminations
Other Information
Segment assets 52,849 96,951 2,279 55,638 (3,777) 2,03,940
Total assets 2,03,940

Segment liabilities 13,357 76,415 1,375 22,662 (4,569) 1,09,240

Total liabilities 1,09,240

April 1, 2020 to March 31, 2021

Particulars Generics Biosimilars Novels Research Unallocated/ Total

Eliminations
Revenues
External revenue 22,532 27,781 105 21,013 - 71,431
Inter-segment revenue 1,095 221 - 830 (2,146) -
Total revenues 23,627 28,002 105 21,843 (2,146) 71,431

Costs
Segment costs (20,218) (18,782) (1,062) (14,841) - (54,903)
Inter-segment costs (446) (1,875) (58) (282) 2,661 -

Results
Other income including interest 1,386 119 1,597 644 (1,201) 2,545
Operating profit 19,073
Depreciation / Amortisation (1,294) (3,425) (43) (2,745) 356 (7,151)
Finance costs (41) (387) (48) (277) 176 (577)
Share of profit of joint venture (99) - (695) - - (794)
and associate
Segment results 2,915 3,652 (204) 4,342 (154) 10,551
Exceptional items, net - - - - 126 126
Income taxes - Current and - - - - (2,215) (2,215)
deferred
Non-controlling interests - - - - (1,057) (1,057)
Profit after taxes attributable 7,405
to shareholders

Other Information
Segment assets 46,244 90,180 1,795 48,832 (1,828) 1,85,223
Total assets 1,85,223

Segment liabilities 8,973 74,232 - 20,618 (3,676) 1,00,147

Total liabilities 1,00,147

328 | Annual Report 2022

 Biocon Limited & Subsidiaries

Geographical segments
Revenue from operations March 31, 2022 March 31, 2021
India 13,563 13,596
United States of America 29,946 23,589
Ireland 16,863 13,327
Rest of the world 21,468 20,919
Total 81,840 71,431

Non-current assets March 31, 2022 March 31, 2021

India 76,956 60,248
Malaysia 24,717 24,652
Rest of the world 6,832 10,292
Total 1,08,505 95,192

Note: Non-current assets excludes financial instruments, income tax and deferred tax assets.

Significant clients
One customer group of Biosimilar segment individually accounted for ` 17,337 (March 31, 2021: ` 13,670 ) which is more than 10% of the
total revenue of the Group.

Segment revenue and results

The expenses that are not directly attributable and that can not be allocated to a business segment on a reasonable basis are shown as
unallocated corporate expenses.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets and current assets. Segment
liabilities comprise of liabilities which can be directly allocated against the respective segments. Assets and liabilities that have not been
allocated between segments are shown as part of unallocated corporate assets and liabilities respectively.

Metamorphosis | 329
41. Additional information, as required under Schedule III of the Act, of enterprises consolidated as subsidiary/associates/joint
venture

Name of Entity Net assets as at March Share in profit or loss for Share in other Share in total comprehensive
31, 2022 the year ended March 31, comprehensive income income for the year ended
2022for the year ended March March 31, 2022
31, 2022
As a % of Amount As a % of Amount As a % of Amount As a % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
Holding Company
Biocon Limited 50% 80,929 14% 861 8% 80 13% 941

Subsidiaries
Indian
Syngene International Limited 14% 22,657 45% 2,775 29% 304 43% 3,078
Biocon Pharma Limited -1% (1,067) 17% 1,056 1% 9 15% 1,065
Biocon Biologics Limited 13% 21,094 13% 811 32% 335 16% 1,146
Biocon Biosphere Limited - 117 - (4) 12% 125 2% 121
Biofusion Therapeutics Limited - 10 - 9 - - - 9
Biocon Academy - - - - - - - -

Foreign
Biocon SA 3% 4,843 - (1) - - - (1)
Biocon Sdn Bhd -3% (4,834) -17% (1,080) 5% 50 -14% (1,031)
Biocon Biologics UK Limited 16% 26,840 41% 2,524 - - 35% 2,524
Biocon Pharma Inc. 1% 1,794 3% 209 - - 3% 209
Biocon FZ LLC. - 80 - 2 - - - 2
Biocon Biologics Healthcare Malaysia SDN. BHD - (1) - (0) - - - (0)
Syngene USA Inc. - 56 - 20 - - - 20
Biocon Pharma UK Limited - 66 - (0) - - - (0)
Biocon Pharma Ireland Limited - 26 - (1) - - - (1)
Biocon Biologics Inc. - (72) -2% (110) - - -2% (110)
Biocon Biologics do Brasil Ltda. - (16) -1% (49) - - -1% (49)
Biocon Biologics FZ–LLC - 74 - 1 - - - 1
Biocon Pharma Malta Limited - (1) - (1) - - - (1)
Biocon Pharma Malta I Limited - - - - - - - -

Joint venture
Foreign
NeoBiocon FZ LLC. - 80 1% 37 - - 1% 37

Associates
Foreign
IATRICa Inc., USA - - - - - - - -
Bicara Therapeutics Inc (w.e.f January 09, 2021) [Refer - - -34% (2,107) - - -29% (2,107)
note 43(a)]

Non-controlling interest 6% 10,375 20% 1,232 13% 135 19% 1,367

Gross Total 100% 1,63,049 100% 6,183 100% 1,038 100% 7,219

Adjustment arising on consolidation (68,349) 1,533 64 1,599

Total 94,700 7,716 1,102 8,818

330 | Annual Report 2022

 Biocon Limited & Subsidiaries

Name of Entity Net assets as at March Share in profit or loss for Share in other comprehensive Share in total comprehensive
31, 2021 the year ended March 31, income for the year ended income for the year ended March
2021 March 31, 2021 31, 2021
As a % of Amount As a % of Amount As a % of Amount As a % of Amount
consolidated consolidated consolidated consolidated total
net assets profit or loss other comprehensive
comprehensive income
income

Holding Company
Biocon Limited 45% 79,071 55% 2,805 1% 24 42% 2,829

Subsidiaries
Indian
Syngene International Limited 11% 19,435 56% 2,831 82% 1,339 62% 4,170
Biocon Pharma Limited -1% (2,133) -25% (1,259) - 5 -19% (1,254)
Biocon Biologics Limited 12% 20,435 41% 2,057 -23% (380) 25% 1,677
Biocon Biosphere Limited - (4) - - - - - -
Biofusion Therapeutics Limited - - - - - - - -
Biocon Academy - - - - - - - -

Foreign
Biocon SA 2% 3,929 -1% (58) - - -1% (58)
Biocon Sdn Bhd 11% 18,719 -49% (2,481) 5% 76 -36% (2,405)
Biocon Biologics UK Limited 14% 24,281 32% 1,639 - - 24% 1,639
Biocon Pharma Inc. 1% 1,521 5% 249 - - 4% 249
Biocon FZ LLC. - 75 - 15 - - - 15
Biocon Biologics Healthcare Malaysia SDN. - (1) - - - - - -
BHD
Syngene USA Inc. - 32 - 13 - - - 13
Biocon Pharma UK Limited - (1) -1% (51) - - -1% (51)
Biocon Pharma Ireland Limited - 27 - (23) - - - (23)
Bicara Therapeutics Inc (Upto January 09, - - -16% (825) - - -12% (825)
2021)
Biocon Biologics Inc. - (42) -2% (82) - - -1% (82)
Biocon Biologics do Brasil Ltda. - 1 - (19) - - - (19)
Biocon Biologics FZ–LLC - - - - - - - -
Biocon Pharma Malta Limited - - - - - - - -
Biocon Pharma Malta I Limited - - - - - - - -

Joint venture
Foreign
NeoBiocon FZ LLC. - 43 -2% (99) - - -1% (99)

Associates
Foreign
IATRICa Inc., USA - - - - - - - -
Bicara Therapeutics Inc (w.e.f January 09, 1% 1,795 -14% (695) -10% (695)
2021) [Refer note 43]

Non-controlling interest 5% 8,807 21% 1,057 35% 563 24% 1,620

Gross Total 100% 1,75,990 100% 5,074 100% 1,627 100% 6,701

Adjustment arising on consolidation (90,914) 3,388 518 3,906

Total 85,076 8,462 2,145 10,607

Metamorphosis | 331
42. Discontinuing operations
Pursuant to the approval of the Board of Directors on May 14, 2020, the Group was in process of disposing off its interest
in the JV entity. Accordingly, in the previous year share of profit / (loss) from the JV and results of its related business were
disclosed as discontinuing operations in the consolidated financial statements.

During the year ended March 31, 2022, the Group decided to commercialise its generic formulation products which are being
developed for US, EU and other markets in the UAE through its wholly owned subsidiary. The Group is taking steps to register
the formulation manufacturing site and seeking approval of marketing authorization under its own brand. Accordingly, the
Group concluded that the UAE operations no longer meets the definition of a Discontinued operations. In accordance with
Indian Accounting Standard, the Group has reclassified the above operations as continuing operations in the consolidated
financial statements. Accordingly, the statement of profit and loss for the previous year have also been reclassified to continuing
operation.

Details of assets and liabilities held for sale:

March 31, 2021
Carrying value of assets and liabilities held for sale
Trade receivable 139
Cash & cash equivalents 338
Investment in Joint venture 43
Others 2
Assets classified as held for sale 522

Trade Payable and provisions 404

Liabilities directly associated with assets classified as held for sale 404

43. Other notes

Bicara Therapeutics Inc, (Bicara), U.S., is a clinical-stage biotechnology company developing dual-action biologics designed to
spur a potent and durable immune response in the tumor microenvironment. Bicara is actively engaged in advancing a robust
pipeline of first-in-class bifunctional antibodies being developed by a global team.

During the year ended March 31, 2021 to enable Bicara to raise further funding to fund its research and development plans
and to further access the innovation ecosystem in developed markets and to achieve business synergies and value accretion
through investments, its prevailing shareholder arrangements including those in relation to its voting rights and composition
of the Board of Directors of Bicara were amended. The Company has, with relevant legal advice, evaluated the implications
thereof and determined that these changes have resulted in cessation of control over the subsidiary.

Accordingly, following the principles in IndAS 110: Consolidated Financial Statements, the Company fair valued its retained
investment in Bicara (based on an independent valuers report) on the date of loss of control which resulted in a dilution gain of
` 1,597. Such gain has been disclosed as Other Income in the consolidated financial statements for the year ended March 31,
2021. Effective January 09, 2021, the Group will account for its investments in Bicara using the equity method as it continues
to have significant influence over the investee.

During the year ended March 31, 2022, Bicara has raised additional fund from third parties resulting into dilution of shares
held in associate. Accordingly, following the principles in Ind AS 28: Investments in Associates and Joint Ventures, the Group
has recorded a dilution gain of ` 299 and disclosed the same as other income in the consolidated financial statements for the
year ended March 31, 2022.

332 | Annual Report 2022

 Biocon Limited & Subsidiaries

44. Acquisitions
(i) Biocon Biologics Limited (“BBL”) has entered into merger co-operation agreement with Serum Institute Life Sciences
Private Limited (“SILS”) and Covidshield Technologies Private Limited (“CTPL” or Transferor company) wholly owned
subsidiary of SILS on September 16, 2021. On January 03, 2022, the Board of Directors of BBL approved the scheme
of Merger by Absorption (‘the Scheme’) of CTPL with and into BBL (the Transferee company), a material subsidiary of
Biocon Limited with an appointed date of October 01, 2022. The Scheme is subject to the requisite statutory approvals
including approval of National Company Law Tribunal (“NCLT”) and/or such other competent authorities (including the
Competition Commission of India), and the shareholders and creditors of the Transferor company and the Transferee
company.

(ii) On February 27, 2022, BBL entered into a definitive agreement with its collaboration partner Viatris Inc. to acquire Viatris’
biosimilars business to create a unique fully integrated global biosimilars enterprise. Viatris will receive consideration of
up to USD 3.335 billion, including cash up to USD 2.335 billion and Compulsorily Convertible Preference Shares (CCPS)
in BBL, valued at USD 1 billion. This transaction is subject to necessary regulatory and other approvals. As at March 31,
2022, the closing conditions of the transaction are yet to be satisfied.

45. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Group to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Group (Ultimate Beneficiaries).

Further, The Group has not received any fund from any party(s) (Funding Party) with the understanding that the Group shall
whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Group (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.”

46. Other statutory information

(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group
for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

(ii) The Group does not have any material transactions with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of Companies Act, 1956 during the financial year.

(iii) The Group does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond
the statutory period.

(iv) The Group is not declared as wilful defaulter by any bank or financial institution or government or any government
authority.

(v) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.

47. Events after reporting period

On April 28, 2022, the Board of Directors of the Company has proposed a final dividend of 10% i.e. ` 0.50 per equity share of
face value of ` 5/- each as on the record date for distribution of final dividend. The proposed dividend is subject to approval of
the shareholders in the ensuing Annual General Meeting of the Company. The dividend declared is in accordance with section
123 of the Act to the extent it applies to declaration of dividend.

Metamorphosis | 333
 On 27 April 2022, the Board of Directors of the Syngene International Limited (a subsidiary company) has proposed a final
dividend of 10% or Re. 1 per equity share as on the record date for distribution of final dividend (comprising of regular
dividend of 5% or `0.5 per equity share and additional special dividend of 5% or `0.5 per equity share). The proposed
dividend is subject to the approval of the shareholders in the Annual General Meeting of the subsidiary company. The dividend
declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.”

48. Previous period figures have been re-grouped/ re-classified wherever necessary, to confirm to current period’s classification in
order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective from April 1, 2021.

For B S R & Co. LLP For and on behalf of the Board of Directors of Biocon Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022 Kiran Mazumdar-Shaw Siddharth Mittal
Executive Chairperson Managing Director & CEO
DIN: 00347229 DIN: 03230757
Sampad Guha Thakurta
Partner Indranil Sen Mayank Verma
Membership No. 060573 Chief Financial Officer Company Secretary

Bengaluru Bengaluru
April 28, 2022 April 28, 2022

334 | Annual Report 2022

 Biocon Limited & Subsidiaries

NOTES

Metamorphosis | 335
NOTES

336 | Annual Report 2022

Concept
Metamorphosis Biocon 5.0

The metaverse is a move towards a brave new world and +91 80 2808 2808
it is as futuristic as the possibilities of biotechnology-led www.biocon.com
healthcare. The transformational aspects of the metaverse
@Bioconlimited
and Biocon’s journey in the biopharmaceuticals domain Biocon Limited
are captured in the title ‘Metamorphosis’. The title is 20 KM Hosur Road Biocon
depicted both in words as well as metaphorically in this Electronic City bioconlimited
cover design. The double helix has been used in a similar Bengaluru – 560 100, India bioconblog.com
form of the metaverse symbol to depict this change. The
treatment of the double helix adds dynamism to the
symbol. The five circles are representative of the
organizational metamorphosis of Biocon to evolve into a
technology-enabled, future-ready biopharmaceuticals
leader and a well-recognized, global brand.

Creative Concept and Story Telling:

Team Global Communications, Biocon Group Biocon Biologics Limited
Biocon House, Semicon Park @BioconBiologics
Seema Ahuja, Global Head of
Electronic City, Phase - II Biocon Biologics
Communications & Corporate Brand,
Biocon Group & Biocon Biologics Hosur Road, Bengaluru 560100 @BioconBiologics
Feedback: [email protected] Karnataka, India Biocon Biologics

Design:
WyattPrism Communications
Biocon has also published an ESG Report for
www.wyattprism.com
2022, TransformAction, along with this
Annual Report. This report provides insights
For Shareholders: [email protected] into the Environmental, Social & Governance
performance during FY22.
For Investors & Analysts: [email protected]
For Media: [email protected] Scan the QR code to download the ESG Report 2022.

Forward-Looking Statement
Biocon FY22 Annual Report

Certain information disclosed in this Annual Report concerning our future growth prospects are forward-looking statements,
which are based on the management’s current plans and assumptions. These statements are subject to a number of risks,
uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such
forward-looking statements. Further, market data used in the various chapters are based on several published reports and
internal company assessment. We undertake no obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.

As a part of our efforts towards a cleaner, greener future, we have printed a very small number of the Annual Report and the
ESG Report. We encourage people to access and share digital versions of these reports, which are available on our website
www.biocon.com and can also be downloaded by scanning the QR codes given on the back cover of this report.
Biocon Limited
20th KM Hosur Road, Electronic City, Bengaluru – 560 100, India
Telephone: +91 80 2808 2808
Email: [email protected]
Website: www.biocon.com

Scan this QR code Scan this QR code

to download the to download the
ESG Report. Annual Report.