Contents Leading with Purpose.

CORPORATE OVERVIEW

FY 2022-23 Highlights 02 Driving Responsible

Growth.
Divi’s at a Glance 04
Geographic Presence 08
Managing Director’s Perspective 10
Governance 12
Corporate Information 13
Key Performance Indicators 14
Business Model 16 At Divi’s, we are driven by a deep sense of purpose - to contribute to global
health through our customers and partners, driving sustainable positive
SUSTAINABILITY AT DIVI’S
impact. Over the years, we have embraced the principles of purpose-
Environment 18 driven leadership to create long-term value that extends beyond financial
Social - People 22 performance and helped us establish ourselves as a key player in the
Social - Community 28
pharmaceutical industry.
STATUTORY REPORTS
Our integrated business model focused on sustainability, helped us enhance
Business Responsibility and Sustainability Report 40
our agility, efficiency, and the delivery of customer-centric solutions.
Management Discussion and Analysis 66
Corporate Governance Report 75 As sustainability becomes increasingly important for companies, our
Board’s Report 94 commitment to leading with purpose manifests in various dimensions of
our operations. We have implemented robust environmental sustainability
STANDALONE
practices, reduced our carbon footprint, and we promote resource efficiency
Independent Auditor’s Report 110 across our value chain. With a focus on strategic partnerships, fostering social
Balance Sheet 120
progress, and empowering individuals, our vision is to be a sustainable, and
Statement of Profit and Loss 121
Statement of Cash Flows 122 ethical corporate organisation. We strive to set our mark through responsible
Statement of Changes in Equity 124 business thus upholding our leadership position.
Notes to the Standalone Financial Statements 125
Forward - looking statements
CONSOLIDATED Some information in this report may
contain forward - looking statements
Independent Auditor’s Report 166 which include statements regarding
Balance Sheet 172 Company’s expected financial position
Statement of Profit and Loss 173 and results of operations, business plans
and prospects etc. and are generally
Statement of Cash Flows 174
identified by forward - looking words
Statement of Changes in Equity 176 such as “believe,” “plan,” “anticipate,”
Notes to the Consolidated Financial Statements 177 “continue,” “estimate,” “expect,” “may,”
“will” or other similar words. Forward -
NOTICE looking statements are dependent on
assumptions or basis underlying such
statements. We have chosen these
Notice of the 33rd Annual General Meeting 221
assumptions or basis in good faith, and
we believe that they are reasonable in all
material respects. However, we caution
that actual results, performances or
achievements could differ materially
from those expressed or implied in
such forward - looking statements. We
undertake no obligation to update or
revise any forwardlooking statement,
whether as a result of new information,
To know more about Divi’s log on to Scan the QR Code to future events, or otherwise.
www.divislabs.com view the report online
 Corporate Overview Statutory Reports Financial Statements

FY 2022-23 highlights

OPERATIONAL FINANCIAL ENVIRONMENT SOCIAL GOVERNANCE

Ground-breaking of a Greenfield Manufacturing

Unit (Unit III) ` 7,97,431 lakhs ~1,58,71,000 KWH ~9.9% 100%
TOTAL INCOME ENERGY CONSERVED FEMALE EMPLOYEES SHAREHOLDER
Investments in new technologies, enhanced GRIEVANCE RESOLVED

production capacities and diversification of Generic

` 2,35,410 lakhs ~39,000 m3 ~88,000
API portfolio
PROFIT BEFORE TAX WATER CONSERVED EHS TRAINING SESSIONS 96%
Expanded our Contrast Media API product offerings AVERAGE BOARD MEETING

and started commercial manufacturing ATTENDANCE

` 68.11 ~85 MT ~31 million
Filed for patents involving novel synthesis methods EARNINGS PER SHARE WASTE REDUCED SAFE MAN-HOURS
58%
INDEPENDENT
` 1,80,815 lakhs ~15,500 tCO2e ` 5,385 lakhs DIRECTORS ON BOARD
PROFIT AFTER TAX GHG EMISSIONS REDUCED CSR BUDGET

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 Corporate Overview Statutory Reports Financial Statements

Divi’s at a glance

Advancing innovation Business segments

At Divi’s, we have a clear focus on three distinct business segments: Generic APIs, Custom Synthesis,

through sustainable
and Nutraceuticals. Each of these segments has been meticulously developed to meet the unique
needs of customers in various markets.

chemistry GENERIC APIs

At Divi’s, we take pride in being recognised as one of the world’s largest
API manufacturers, offering a selective list of 30 Generic APIs commercially
manufactured in 10’s to 100’s/1000’s of metric tonnes each year. Our
We are one of the leading pharmaceutical companies in the world, commitment to achieving global leadership in the molecules we have selected
manufacturing and supplying Active Pharmaceutical Ingredients (APIs), is evident in our position as the world’s largest API manufacturer for 10 of the
Intermediates, and Nutraceuticals. generic APIs we manufacture.

Our manufacturing facilities have undergone numerous audits by regulatory

authorities, global environmental, health and safety teams, and Big pharma/

Unique Attributes of Divi’s multi-national companies.

Divi’s has established a distinguished position in the pharmaceutical

industry through its API-centric business model, focus on reliability,
adherence to global quality standards, continuous process innovation,
Vision and commitment to sustainability and safety.
CUSTOM SYNTHESIS
We envision creating value for all
stakeholders by manufacturing COMPLIMENTARY Our Custom Synthesis segment offers contract manufacturing services of
high quality Generic APIs, Custom Divi’s is an API-exclusive manufacturer that doesn’t market APIs and Intermediates for global innovator companies across a vast portfolio
synthesis of APIs & Intermediates dosage forms or compete with customers. of products in diverse therapeutic areas. Our competent and qualified R&D
along with Nutraceutical Ingredients team consisting of over ~400 scientists specialises in developing innovative
for the Global Pharmaceutical & processes and continuously optimising them to maintain a competitive
Nutraceutical industry through RELIABLE SUPPLY PARTNER
leadership position.
sustainable leadership in chemistry. With significant capacities, dedicated production blocks, and
backward integration, Divi’s provides safety stocks tailored We are a global partner trusted by leading pharmaceutical companies in over
to customer needs. 100 countries, including 12 out of the top 20 Big Pharma.

UNIFORM QUALITY
Divi’s ensures uniform quality globally and has in-
house capability for comprehensive assessment of
Mission genotoxic impurities.
NUTRACEUTICALS
We at Divi’s aim to be a responsible
business, adding value through At Divi’s, we also have a Nutraceutical Facility at our Unit II manufacturing
ROBUST R&D CAPABILITIES
our core competency in the area of site, which is an integrated facility for the production of active ingredients and
Divi’s focuses on continuous process innovation to increase
chemistry while adhering to our core finished forms of Carotenoids. We supply most of the carotenoids to all the
process efficiency while adhering to the principles of
values and serving the immediate major food, dietary supplement, and feed manufacturers around the world.
green chemistry.
community and at large through our Our product portfolio includes a complete set of Carotenoids such as Beta
diverse social initiatives that would Carotene, Astaxanthin, Lycopene, Canthaxanthin, as well as other finished
establish a strong foundation for a SUSTAINABILITY FOCUSED forms such as Lutein, Vitamins (A, D3, D2, E Acetate, and A Palmitate).
better tomorrow for all stakeholders. Divi’s is committed to reducing emissions and conserving Our Nutraceutical Facility has been frequently audited by various regulatory/
water and energy. statutory authorities such as US FDA (CFR 110) and Halal/Kosher.

4 33rd Annual Report 2022-23 | 5

 Corporate Overview Statutory Reports Financial Statements

Divi’s at a glance

Our Key Strengths

LARGE-SCALE AND RELIABLE API-CENTRIC ESTABLISHED R&D ROBUST

PRODUCTION FACILITIES PORTFOLIO CAPABILITIES WORKFORCE

Our state-of-the-art manufacturing facilities and Our portfolio of ~160 products covers diverse Divi’s has established three R&D centres with competent With a highly skilled and diverse team of professionals
research capabilities have earned us a reputable therapeutic areas, making us a leading manufacturer and and qualified teams that focus on continuous process across departments, Divi’s is committed to deliver world-
name in the global pharmaceutical market. With two supplier of high-quality Generics, Custom Synthesis of improvement to maintain sustainable chemistry while class products to customers. Our disciplined execution
manufacturing units and a third one under construction, APIs and intermediates, and Nutraceutical ingredients. ensuring the safety of people and the environment. of sustainable chemistry makes us a trusted partner for
we have enormous scales of production and are one of As a testament to our commitment, we have been global innovator companies.
the world’s largest API companies. granted several process patents, further validating the
sustainability of our products.

2 Largest ~400
WORLD CLASS MANUFACTURING
UNITS WITH A COMBINED API MANUFACTURER IN THE WORLD FOR 10 OF THE SCIENTISTS WORKING IN THREE R&D
16,950+
CAPACITY OF OVER ~14,600 M3 GENERIC APIS MANUFACTURED CENTRES ACROSS FUNCTIONS EMPLOYEES ACROSS THREE COUNTRIES

6 33rd Annual Report 2022-23 | 7

 Corporate Overview Statutory Reports Financial Statements

Geographic presence

Expanding global
reach
Europe
Asia
With a focus on innovation and excellence, 41% 14%
Divi’s has established a strong global 2
presence across several geographic 1
locations worldwide. America India

29% Delhi
12%

Mumbai

Rest of
the World

4% Corporate Office
Hyderabad
Manufacturing Unit II
Visakhapatnam (Vizag)
700km from Hyderabad

Manufacturing Unit I
Map not to scale. Choutuppal Manufacturing Unit III
65km from Hyderabad Kakinada
150km south of Unit II
AMERICA EUROPE
2019-20 2020-21 2021-22 2022-23 2019-20 2020-21 2021-22 2022-23
Manufacturing units Subsidiaries
1,21,813 1,58,652 3,83,291 2,20,140 2,49,850 3,17,415 2,86,480 3,05,977 Unit 1: Hyderabad Unit 2: Visakhapatnam 1 New Jersey, USA
22.9% 23.3% 43.1% 29.3% 47% 46.6% 32.2% 40.7% Choutuppal Unit: Lingojigudem Village, Export Oriented Unit: Chippada Village, 2 Basel, Switzerland
Choutuppal Mandal, Yadadri Bheemunipatnam Mandal,
INDIA ASIA Bhuvanagiri Dist. (TS) Pin - 508252 Visakhapatnam Dist. (A.P) Pin - 531163
2019-20 2020-21 2021-22 2022-23 2019-20 2020-21 2021-22 2022-23
DC SEZ Unit: Lingojigudem Village, Divi’s Pharma SEZ: Chippada Village,
78,396 91,236 1,03,784 87,402 59,474 82,675 79,807 1,03,931 Choutuppal Mandal, Yadadri Bheemunipatnam Mandal,
14.8% 13.4% 11.7% 11.6% 11.2% 12.2% 9.0% 13.8% Bhuvanagiri Dist. (TS) Pin - 508252 Visakhapatnam Dist. (A.P) Pin - 531163

DSN SEZ Unit: Chippada Village,

REST OF THE WORLD Unit 3: Kakinada Bheemunipatnam Mandal,
2019-20 2020-21 2021-22 2022-23 (Under Construction) Visakhapatnam Dist. (A.P) Pin - 531163
21,524 29,883 34,620 34,923 SALES (` In lakhs) Ontimamidi Village (Kona), DCV SEZ Unit: Chippada Village,
4.1% 4.4% 3.9% 4.6% % Share Thondangi Post, Thondangi Mandal, Bheemunipatnam Mandal,
Kakinada Dist. (A.P) Pin – 533408 Visakhapatnam Dist. (A.P) Pin - 531163

8 33rd Annual Report 2022-23 | 9

 Corporate Overview Statutory Reports Financial Statements

Managing Director’s Perspective

Pursuing Responsible
Growth
In addition, we faced some headwinds due to pricing
pressures on APIs and an increase in raw material costs,
CARING FOR THE SOCIETY
which impacted our profitability. However, some of the As a responsible pharmaceutical company, we believe in
cost increases were mitigated due to the long-term supplier giving back to the communities around us. During the year,
contracts and our existing backward integration initiatives. we undertook several CSR initiatives to address the pressing
Nonetheless, we remain optimistic about our Generic issues faced by our neighbouring communities. Our efforts
API product portfolio along with new Custom Synthesis include providing safe drinking water, empowering women,
opportunities that lie ahead. developing infrastructure, promoting healthcare and child
education for the rural communities.
Over the past year, we have THE BIGGER PICTURE One of our notable initiatives during the year was Project
navigated through diverse global Jalaprasadam, which is driven by our purpose of providing
As we strive to maintain our leadership position in our
scenarios and hereby present core products and expand our portfolio with new product safe drinking water by installing state-of-the-art water
our 33rd annual report that offerings, we are focused on unlocking growth potential purification RO plants at various temples in both the states
we operate.
demonstrates our commitment through our six-point strategic approach. With the expiry
of new molecules, we see possibilities for new product
to responsible growth through launches over the next three years. Towards this, we have A SUSTAINABLE FUTURE AHEAD
shared value creation for all our filed drug master files that we expect will contribute to our I am pleased to see how Divi's has demonstrated resilience
stakeholders. growth in the upcoming years. in a challenging global environment and evolving industry
We have expanded our Sartan portfolio further by landscape. Moving forward, our commitment to responsible
leveraging our backward integration and innovative growth through sustainability in chemistry and shared value
DR. MURALI K. DIVI
technology to manufacture starting materials and creation for our stakeholders remains steadfast.
Managing Director
hold ambitious aspirations of becoming a leader in By leveraging our three-decades of expertise in chemistry,
Sartan manufacturing. execution excellence, and resources, we are focused on
With the increasing global demand for Contrast Media, strengthening our industry leadership while contributing to
we aim to secure a substantial share of the world market. the betterment of society.
By providing reliable and high-quality products, and Finally, I extend my deepest gratitude to all our stakeholders
expanding to newer categories, particularly MRI contrast for their continued trust and support, which has been
media, we intent to broaden our business presence in this instrumental to our success over the past 33 years. Your
growing market. confidence in Divi’s drives us to strive for excellence and
continue to be a sustainable and reliable partner for the
WELL-POSITIONED FOR THE NEXT global pharmaceutical industry.
On the CAPEX front, I am pleased to update you on our Warm Regards,
Dear Shareholders, Unit III project. With all the necessary clearances in
been closely monitoring global developments to proactively place, we have secured 500 acres of land and started
The industry has been rapidly evolving with rising demand
manage risks and capitalise on opportunities ahead. construction activities. We have outlaid an initial investment
Dr. Murali K. Divi
for affordable products, changing healthcare policies, Managing Director
technological advancements, the need for innovative of approximately H1,200 Cr to H1,500 Cr for Phase 1 with a
solutions, and the emergence of newer therapies. A YEAR OF RESILIENCE further scope for expansion in future.

The past year was marked with global inflation, geopolitical During the past year, we had the unique opportunity to This state-of-the-art facility will manufacture starting
uncertainty, energy crisis, and supply chain disruptions in serve the demand for COVID products, which contributed materials, advanced intermediates, and APIs that require
various parts of the world. It is worth noting that despite significantly to our growth in FY 2022 and in the first half complex chemistry, providing us with a competitive edge in
a challenging global scenario and fast-changing industry of FY 2023. As the pandemic situation stabilised and the the market. We expect the Unit III project to contribute to
landscape, Divi’s continued to be a reliable partner by demand for Anti-COVID drugs decreased, our revenue and our growth beyond FY 2025. I am confident that with this
fulfilling customer requirements through prudent supply profitabilities have started to level off. project, we are well-positioned to further strengthen our
chain management and operational excellence. We have leadership position in the industry.

10 33rd Annual Report 2022-23 | 11

 Corporate Overview Statutory Reports Financial Statements

Governance

Board of Directors Corporate Information

Manufacturing Facilities Subsidiaries Bankers
Unit 1: Hyderabad Divis Laboratories (USA) Inc; State Bank of India
Choutuppal Unit: Lingojigudem New Jersey, USA CCG Branch, Door No. 8-2-684/2/A
Village, Choutuppal Mandal, Yadadri I Floor, NSL Icon Building
Bhuvanagiri Dist. (TS) Pin - 508252 Anand Banjara Colony
Divi’s Laboratories Europe AG,
Road No. 12, Banjara Hills;
DC SEZ Unit: Lingojigudem Village, Basel, Switzerland
Hyderabad - 500034
Choutuppal Mandal, Yadadri
Bhuvanagiri Dist. (TS) Pin - 508252 Registered Office
HDFC Bank Ltd.
Dr. Ramesh B. V. Dr. Murali K. Divi N. V. Ramana Dr. Kiran S. Divi Unit 2: Visakhapatnam Divi Towers, 1-72/23(P)/DIVIS/303
Bank House, Wholesale Banking
Nimmagadda Managing Director Executive Director Whole-time Director & Cyber Hills, Gachibowli,
Chief Executive Officer Export Oriented Unit: Operations, H.No.6-3-246 & 244
Non-Executive Chairman & M Hyderabad - 500032
Independent Director M
Chippada Village, Road No. 1, Banjara Hills;
ClN : L24110TG1990PLC011854
Bheemunipatnam Mandal, Hyderabad - 500034
M C M Phone : +91 40 66966300
Visakhapatnam Dist. (A.P)
Fax: +91 40 66966460
Pin - 531163 Registrar & Share Transfer
E-mail : [email protected]
Divi’s Pharma SEZ: Chippada Village, Website : www.divislabs.com Agent
Bheemunipatnam Mandal, Kfin Technologies Limited
Visakhapatnam Dist. (A.P) Auditors Selenium Tower B, Plot No. 31-32
Pin - 531163 Gachibowli, Financial District,
Statutory Auditors
DSN SEZ Unit: Chippada Village, Price Waterhouse Chartered Nanakramguda,
Bheemunipatnam Mandal, Accountants LLP, Unit-2B Hyderabad- 500032
Visakhapatnam Dist. (A.P) 8th Floor, Octave Block CIN: U72400TG2017PTC117649
Nilima Prasad Divi Madhusudana Rao Divi Dr. G. Suresh Kumar R. Ranga Rao Phone No: 040-67161526,
Pin - 531163 Block E1, Parcel-4
Whole-time Director Whole-time Director Independent Director Independent Director Fax: 040-23001153
(Commercial) (Projects) Salarpuria Sattva Knowledge City
M C M M M C DCV SEZ Unit: Chippada Village, Toll Free No.: 1800 4258 998
M M C Raidurg, Hyderabad - 500081
Bheemunipatnam Mandal, E-mail: [email protected]
Visakhapatnam Dist. (A.P)
Pin - 531163 Cost Auditors
Date, Time & Mode of AGM
EVS & Associates
Unit 3: Kakinada Monday, August 28, 2023 at
Cost Accountants 205,
(Under Construction) 10.00 AM IST Through Video
Raghava Ratna Towers,
Ontimamidi Village (Kona), Chirag Ali Lane, Conferencing (VC) Other Audio
Thondangi Post, Thondangi Mandal, Hyderabad - 500001 Visual Means (OAVM)
Kakinada Dist, (A.P) Pin – 533408

Secretarial Auditors
K. V. K. Seshavataram Dr. S. Ganapaty Prof. Sunaina Singh K. V. Chowdary R&D Centres
Independent Director Independent Director Independent Director Independent Director V. Bhaskara Rao & Co.
B-34, Industrial Estate Sanathnagar,
Company Secretaries, 6-2-1085/B
C M M M M M M M M Hyderabad. (TG) Pin - 500018.
Flat No.-105, Badam Sohana Apts
Lingojigudem Village Choutuppal Raj Bhavan Road, Somajiguda,
Mandal Yadadri Bhuvanagiri Dist. Hyderabad - 500082
Audit Committee Corporate Social Responsibility Committee
(TG) Pin - 508252
Compensation, Nomination and Remuneration Committee Risk Management Committee

Stakeholders Relationship Committee

Chippada Village, Bheemunipatnam
C Chairman M Member
Mandal, Visakhapatnam Dist.
(A.P) Pin – 531163

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 Corporate Overview Statutory Reports Financial Statements

Key performance indicators

Total Income (I in lakhs) EBDIT (I in lakhs) Dividend (I in lakhs) National Exchequer (I in lakhs)

FY 2023 7,97,431 FY 2023 2,69,669 FY 2023 79,641 FY 2023 56,091

FY 2022 8,99,108 FY 2022 3,98,772 FY 2022 79,641 FY 2022 74,488

FY 2021 6,86,114 FY 2021 2,88,321 FY 2021 53,094 FY 2021 70,032

FY 2020 5,50,043 FY 2020 2,00,530 FY 2020 51,206 FY 2020 62,612

FY 2019 5,03,624 FY 2019 2,00,554 FY 2019 51,206 FY 2019 61,046

(K In lakhs)
PBT (I in lakhs) PAT (I in lakhs) 2018-19 2019-20 2020-21 2021-22 2022-23
Turnover and Profit
FY 2023 2,35,410 FY 2023 1,80,815 Revenue 4,87,966 5,31,057 6,79,861 8,87,982 7,62,530
Revenue Growth % 27% 9% 67% 0% -14%
FY 2022 3,67,652 FY 2022 2,94,854
Other Income 1,5658 1,89,86 6,253 11,126 34,901
FY 2021 2,62,787 FY 2021 1,95,472 Total Income (` In lakhs) 5,03,624 5,50,043 6,86,114 8,99,108 7,97,431
Total Income Growth % 28% 9% 63% 1% -11%
FY 2020 1,81,329 FY 2020 1,37,271
Profit before Interest,Depreciation and Tax. (EBDIT) 2,00,554 2,00,530 2,88,321 3,98,772 2,69,669
FY 2019 1,83,323 FY 2019 1,33,265 EBDIT to Sales % 40% 36% 32% 44% 34%
EBDIT Growth 47% 0.0% 43.8% 38.3% -32%
Finance Charges 350 606 69 65 52
Depreciation 16,881 18,595 25,465 31,055 34,207
(I in lakhs) (I in lakhs)
Profit before tax (PBT) 1,83,323 1,81,329 2,62,787 3,67,652 2,35,410
Gross Fixed Assets Net Worth PBT Growth % 50% -1% 45% 40% -36%
Provision for Taxation 50,058 44,058 67,315 72,798 54,595
FY 2023 6,83,226 FY 2023 12,70,542 Profit After Tax (PAT) 1,33,265 1,37,271 1,95,472 2,94,854 1,80,815
FY 2022 6,10,110 FY 2022 11,69,135 Dividend, Share Capital and Capital Employed
Dividend 800% 800% 1000% 1500% 1,500%
FY 2021 5,15,147 FY 2021 9,27,157 Dividend payout 51,206 51,206 53,094 79,641 79,641
Dividend payout (%) 38% 37% 27% 27% 44%
FY 2020 4,10,907 FY 2020 7,31,669
Equity Share Capital 5,309 5,309 5,309 5,309 5,309
FY 2019 3,25,422 FY 2019 6,97,331 Reserves & Surplus 6,92,022 7,26,360 9,21,848 11,63,826 12,65,233
Net Worth 69,73,31 73,16,69 92,71,57 11,69,135 12,70,542
Net Worth growth % 17% 5% 27% 26% 9%
Gross Fixed Assets 3,25,422 4,10,907 5,15,147 6,10,110 6,83,226
Net Fixed Assets 2,08,742 2,77,626 3,69,901 4,32,097 4,71,876
EPS (I) Book Value Per Share (I)
Key Financial Indicators
Earnings per share (face value of `2/-each) 50.20 51.71 73.63 111.07 68.11
FY 2023 68.11 FY 2023 479
Cash Earnings Per Share (face value of `2/-each) 56.56 58.71 83.23 122.77 81.00
FY 2022 111.07 FY 2022 440 190 207 337 339 300
Gross Turnover Per share (face value of `2/-each)
FY 2021 73.63 FY 2021 349 Book Value per share (face value of `2/-each) 263 276 349 440 479
EBDIT / Gross Turnover % 40% 36% 32% 44% 34%
FY 2020 51.71 FY 2020 276
Net Profit Margin % 26% 25% 22% 33% 23%
FY 2019 50.20 FY 2019 263 RONW % 19.11% 18.76% 21.08% 25.22% 14.23%

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 Corporate Overview Statutory Reports Financial Statements

Business Model

Stakeholder-centric Our business model is centred around creating sustainable value for all
stakeholders, driving responsible growth through our strategic approach,

approach to sustainable
and social and environmental stewardship. We firmly believe that this
approach is integral to achieving long-term success in today’s ever-evolving
business landscape.

value creation
OPERATING CONTEXT

RESOURCES UTILISED BUSINESS ACTIVITIES VALUE CREATED FOR STAKEHOLDERS OUTCOMES

FINANCIAL RESOURCES Our activities encompass the entire value chain,

CUSTOMERS AND PARTNERS
Capital investment for infrastructure, research from research and development to commercial
production, ensuring the highest quality standards • High-quality APIs, intermediates, and
and development (R&D), as well as an operational
budget allocated for manufacturing, supply and and regulatory compliance nutraceuticals, meeting specific requirements 160+
of customers and partners PRODUCTS ACROSS DIVERSE
regulatory compliance
Cu s • Contract manufacturing offering THERAPEUTIC AREAS
s to
PI
customised solutions

m
MANUFACTURED CAPITAL cA

Sy
G e n er i

Utilising state-of-the-art manufacturing facilities

nt
h e sis
and quality control laboratories to ensure reliable
production and maintain uniform quality SHAREHOLDER VALUE CREATION
• Disciplined approach to capital allocation that
C7,97,431 lakhs
Nu INCOME
INTANGIBLE ASSETS tr a ce u t ic als enhances sustainable growth
Harnessing intellectual property, patents, • Strong corporate governance practices
proprietary technology for API synthesis, regulatory RESOURCES WE DEPLOY ingrained in our operations, fostering
C2,69,669 lakhs
approvals, certification, and a skilled workforce to shareholder confidence EBDIT
• Significant capacity creation
drive innovation and ensure high quality
• Continuous process innovation
STRONG TEAM • Investments in Safety and GMP training SKILLED AND EFFICIENT WORKFORCE
A skilled workforce, experienced management • Implementing Green Chemistry principles • Providing rewarding career opportunities and ~31 million 81%
with industry expertise, and a strong R&D team a supportive work environment
• Enabling new technologies SAFE MAN-HOURS EMPLOYEE RETENTION
collectively working towards the Company’s vision • Offering several training programmes to RATE
FOCUSING ON A SUSTAINABLE TOMORROW enhance skill and nurture talent
RELATIONSHIPS WE BENEFIT FROM
Benefitting from strategic partnerships with
customers and long-term contracts with suppliers. SUSTAINABLE ENVIRONMENTAL AND
~120% ~8,60,000
Driving responsible growth by engaging with society COMMUNITIES
Green Chemistry Health, Safety and INCREASE IN WATER CSR BENEFICIARIES
and communities • Operating with a commitment to
well-being RECYCLING & REUSE
environmental sustainability and minimising CAPABILITY
NATURAL RESOURCES the ecological footprint
Prioritising sustainable sourcing, environmental
compliance, and efficient resource utilisation for
• Contributing to community wellbeing ~1,58,71,000 KWH
Empowering Stakeholder and development
responsible and eco-friendly operations ENERGY CONSERVED
Communities engagement

GOVERNANCE

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 Corporate Overview Statutory Reports Financial Statements

Environment

Striding towards a OUR SUSTAINABILITY GOALS - 2030

greener future Carbon Footprint Water Conservation

• Reduce absolute-based GHG (Scope-1 & Scope-2) • Reduce ground water & surface water intake by 30%.
emission by 5%.
At Divi’s, we recognise the importance of protecting our planet and • Reduce water consumption by 25%.
• Reduce intensity-based GHG (Scope-1 & Scope-2)
preserving its natural resources for future generations. Our commitment emission by 25%.
• Reduce intensity-based water consumption by 25%.
towards sustainability is demonstrated through our efforts in reducing our
carbon footprint, conserving energy and water, and efficiently managing
our waste.
To achieve continual improvement of EHS Management Systems and meet the objectives, our
Energy Conservation Waste Management
initiatives are accounted under 7 categories and each category has been linked with UNSDGs
(Sustainable Development Goals). • Decrease intensity-based energy consumption by 25%. • Reduce intensity-based waste disposal by 25%.

• Rely on renewable energy sources to the extent possible, • Reduce plastic waste by minimising usage in packing.
CATEGORISATION OF INITIATIVES COMPLETED where applicable.

300
266 GREEN BELT DEVELOPMENT

~77,400 MT
246 Our green belt development initiative is aimed at
250
228 encouraging afforestation and increasing the green cover
in and around our facilities through Miyawaki and Avenue
plantation technique. CARBON SEQUESTRATION
200 185
178

150
143
150
123
107 110
97 90 92
100 86
71 71
60 63

50
27
25
7
0
Conservation of Energy Environment Ergonomics Improvements in Productivity Safety
Natural Resources Conservation Protection General Working Increase Enhancement
Condition

FY2020-21 FY2021-22 FY2022-23

SDGS IMPACTED

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 Corporate Overview Statutory Reports Financial Statements

Environment

Air monitoring systems in our manufacturing units Installed packaged pressure powered pump unit (PPPPU) Off-the-ground effluent treatment plant Solvent recovery system

REDUCING CARBON FOOTPRINT ENERGY MANAGEMENT WATER MANAGEMENT WASTE MANAGEMENT

We are committed to reducing our carbon footprint and Our focus on energy management has resulted in significant We believe in responsible water management and have As part of our commitment to sustainable manufacturing,
minimising our impact on the environment. To achieve this, energy conservation through initiatives such as: implemented several initiatives to reduce our water we prioritise waste reduction and recycling. Our waste
we have undertaken various initiatives aimed at reducing usage and improve efficiency. Our water management management initiatives include:
our greenhouse gas emissions and energy consumption. • ~69,50,000 KWH of energy was conserved by recovering efforts include:
and re-using steam released to atmosphere. • Reusing of final wash/rinse water for initial wash/rinse in
• Recovering and re-using heat energy from flash steam • By purifying and utilising final wash water for cooling process steps.
• Arranging pH meter at processing area, resulted in
and letting out to atmospheres. This initiative aided us in towers, ~14,800 m3 of Raw Water demand was reduced.
reduced process time cycles which in-turn reduced • Implementing process improvements through GCPs aided
reducing ~7,300 tCO2e.
~3,48,000 KWH of energy. • ~7,800 m3 of rainwater was harvested by facilitating in improving recovery and reuse potential.
• Installing Oxygen (O2) analysers for process vessels rainwater harvesting pits around our non-process
• Arranging O2 analysers for process vessels, benefited us in • Recycling of plastic containers, liners, metal containers
to monitor and maintain inert atmospheres in critical facilities within the factory premises.
reducing the nitrogen demand for equipment inertisation and metal scrap.
process operations benefited us in reducing
which in-turn benefited us in conserving ~2,46,000 KWH • ~1,200 m3 of water was conserved by replacing wet ice
~360 tCO2e. • Established solvent recovery stations to recover and
of energy. used for reaction mass quenching with brine cooled
reuse solvents.
• Replaced radiator type heat exchanger of process air pre- chilled water.
cooler with plate-heat exchanger, this initiative aided us in • Solid residues from process, sent by Divi’s is reused as fuel
reducing ~550 tCO2e. (Co-Incineration) in cement industries.

~15,500 tCO e 2
~1,58,71,000 KWH ~39,000 m 3
~49,830 MT
GHG EMISSIONS ENERGY CONSERVATION WATER CONSERVATION HAZARDOUS WASTE CO-PROCESSED

Divis Unit 2 - Prashansa Patra during NSCI Divis Unit 1 - Suraksha Puraskar during
Ecovadis Silver Awards for its exceptional performance in NSCI Awards for exceptional performance
Occupational Safety and Health. in Occupational Safety and Health.
Received a Silver rating by Ecovadis, in recognition of our sustainability
efforts and for integrating ESG into our daily operation. Best Management Award for Outstanding
Contribution towards Industrial Relations
and Labour Welfare by Govt. of Telangana.

20 33rd Annual Report 2022-23 | 21

 Corporate Overview Statutory Reports Financial Statements

Social – People

Fostering a purpose- INCLUSIVE AND UNBIASED HIRING Ensuring Work-Life Balance

At Divi’s, we believe in a fair and standardised selection At Divi’s, we prioritise our employees’ work-life balance by
process that eliminates cognitive and unconscious bias in ensuring that work does not extend beyond office hours.

driven culture candidate evaluation. We use competencies as the basis for

assessment and recruit from diverse stakeholder groups,
including people with disabilities and experienced retirees.
Our workforce consists of employees with varying age,
We believe that this helps our employees maintain a healthy
mindset and quality social/family life.

Our line managers are trained to ensure that employees can

prioritise tasks based on their importance, and we conduct
gender and experience, ensuring a healthy diversity ratio.
efficient workforce planning at the beginning of each year
In today’s dynamic workforce, employees seek more than just job to avoid overburdening employees. We strongly believe in

31.7 years
titles, pay, and benefits. They want to be associated with organisations our employees’ potential as advocates of our culture, which
is reflected in their high satisfaction levels and the fact that
that share their vision and mission. By establishing a purpose-driven most of our hiring is through employee referrals.
workplace, we have not only achieved high retention rate but also fostered AVERAGE AGE OF EMPLOYEES
a sense of loyalty among our employees.
Supporting Women Employees
At Divi’s, we have been committed to sustainable chemistry for over three decades. Our focus on We support our women employees with inclusive Outcomes
optimising processes and practices to protect and enhance human health and the environment has policies and procedures during their parental leave. Our
• High employee satisfaction levels
enabled us to create a meaningful connection with our employees. departmental heads ensure their safety during pregnancy,
and we provide a gradual return-to-work plan to avoid • Efficient workforce planning
overburdening them. For the past two years, return-to-work

16,950+ ~9.9%
• Positive work environment
rate and retention rate post parental leave were 100% and
over 80% respectively, exceeding the industry average.

TOTAL EMPLOYEES FEMALE EMPLOYEES

22 33rd Annual Report 2022-23 | 23

 Corporate Overview Statutory Reports Financial Statements

Social – People

IINVESTING IN PEOPLE FOR LONG-TERM LEARNING AND DEVELOPMENT Collaborative Ed-Tech Partnership CREATING A SAFE AND HEALTHY
SUCCESS Our people-first culture recognises all potential
Our collaboration with an international Ed-Tech company WORK ENVIRONMENT
provides our employees with access to around 7,000
At Divi’s, we understand that attracting and retaining top employees and provides them with employee training and Safety and well-being of our employees is a top priority
programmes of instructor-led and self-paced training.
talent is critical to our success. As one of the largest API development. We believe in the potential of every employee, at Divi’s. Our commitment to creating a healthy work
These programmes span technical training to professional
companies in the world, we strive to maintain the highest which is why we provide personalised and up-to-date environment is reflected in our ISO 14001 compliant
skills, which employees can access on-demand from
standards of quality by investing in building a strong team training programmes to equip them with the necessary skills Environmental Management System and ISO 45001
anywhere. Digital badges are also provided to motivate
through compensation and comprehensive professional to reach their peak performance levels. compliant Occupational Health and Safety Management
and reward learners, serving as visual and portable records
development benefits. System. We provide ergonomic workplaces and resources
Customised Development Opportunities of accomplishment.
Providing Competitive Compensation to promote the physical and mental well-being of
We offer customised development opportunities tailored to
our employees.
We have adopted a ‘Lead the Market’ compensation strategy the functional needs of our employees. These opportunities ACCESS TO
Safety First Approach

~7,000
and ensure that we pay more than just minimum wages to include in-house skill enhancement programmes and
our employees. Our strategy is designed to positively impact externally supported skill upgradation programmes. Our safety team conducts regular risk assessments to
employee commitment, contribution, and continuity. We In addition, we require all employees to participate in identify potential safety hazards and ways to avoid them
offer competitive compensation packages that recognise mandatory cGMP, environment, health and safety (EHS) in the manufacturing process. We train all employees,
INSTRUCTOR-LED AND SELF-PACED
and reward employees for the value they bring to the training programmes. including contract workers, on safety protocols and the use
TRAINING PROGRAMMES
company. This includes handsome annual increments of personal protective equipment. Incidents of protocol

~1,300
that are competitive and appropriate to the markets we lapses are addressed, and employees are made aware of
compete in and are linked to both past performance and Employee Engagement and Retention the consequences.
future potential.
We foster employee development through exploration

~88,000 ~31 million

Comprehensive Benefits TRAINING PROGRAMMES CONDUCTED, and on-the-job training programmes to help them reach
IN ADDITION TO ON-THE-JOB TRAININGS their highest potential. Each department has a standard
We also provide health and insurance benefits to ensure
the well-being of our employees and their families. Our set of operating procedures for regular training of both
commitment to employee growth includes offering a Essential Certification Programmes new and experienced employees. Seniors train identified EHS TRAINING SESSIONS SAFE MAN-HOURS DURING
well-planned career path for personal and professional subordinates to handle various challenges that may arise. COVERING ~8,90,000 FY 2023
To keep our employees up to date with the latest regulatory
development. We believe that rewarding loyalty & guidelines and manufacturing practices, we offer PARTICIPANTS
performance and supporting the needs of employees certification programmes that enable them to gain the

~81% 0.40 0.05

and families is critical to maintaining a motivated and required expertise and implement it in the workplace.
productive workforce. These programmes come at no cost to the employee. More
Internal Parity than 100% of staff and workmen are covered through our
cGMP and Data Integrity, Health and Safety, Code of Ethics EMPLOYEE RETENTION RATE LTI FREQUENCY RATE LTI SEVERITY RATE
At Divi’s, we ensure internal parity by classifying similar
and Business Conduct, and EMS training programmes.
jobs into levels based on the role/contribution to achieving
the organisation’s key objectives. This ensures that
employees are paid fairly and equitably based on their job
responsibilities and the value they bring to the company. 100%
OF STAFF AND WORKMEN COVERED THROUGH cGMP,
DATA INTEGRITY, HEALTH AND SAFETY, CODE OF
ETHICS AND EMS TRAINING PROGRAMMES

Outcomes

• Improved employee commitment, contribution

and continuity

• Lower turnover rate for mid and senior

level employees

• Positive culture and reputation Safety mock drills at our manufacturing unit

24 33rd Annual Report 2022-23 | 25

 Corporate Overview Statutory Reports Financial Statements

United by Purpose

Employee-Driven Voluntary 1,200+ ~1,800 ~600 lts

PARTICIPANTS TO INCREASE EMPLOYEES DONATED BLOOD OF BLOOD DONATED DURING THE

Social Engagement SPREADING AWARENESS ON

AUTISM
ACROSS OUR MANUFACTURING
FACILITIES
YEAR FY2023

We believe that it is our shared responsibility to come together and inspire positive
change. Driven by Divi’s commitment to serving local communities, our exceptional
teams actively participate in various voluntary activities that promote social welfare.

OUR ENGAGEMENT OVER THE YEARS

• Plantation drives • Blood donation
• Beach clean-ups • Awareness walks

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 Corporate Overview Statutory Reports Financial Statements

Social - Community

Impacting lives through OUR CSR THRUST AREAS

responsible efforts
Safe Drinking Water Child Empowerment Community Development
As a responsible corporate citizen, we strive to make a meaningful • Preventive Healthcare
difference in the lives of communities around us and create a positive • Village Development
impact on society. Our CSR initiatives are designed to address the key • Animal Welfare
issues faced by these communities and empower them through our key
CSR thrust areas.

~8,60,000
People Empowerment Environmental Sustainability
J5,385 lakhs •
•
Women Empowerment
Supporting Differently-abled
CSR BENEFICIARIES DURING FY 2023 CSR BUDGET DURING FY 2023

28 33rd Annual Report 2022-23 | 29

 Corporate Overview Statutory Reports Financial Statements

Social - Community

SAFE DRINKING WATER

~2,31,000
Project Sujalam
Safe Water, Strong Communities!
Project Sujalam is our flagship CSR initiative that aims to
provide safe drinking water to communities around our BENEFICIARIES ACROSS 91 LOCATIONS
manufacturing facilities. This project has been successful
in addressing the acute water shortage and groundwater
contamination in the surrounding villages.

Impacting lives through

equitable access to clean water

In 1994, when we set up our first manufacturing unit, our

founder realised that the local communities lacked access to
safe drinking water. With an aim to make a positive impact,
Divi’s initiated a primary CSR activity to meet the insufficient
demands of clean water through Project Sujalam.

This project focuses on Reverse Osmosis (RO) technology Impact story

for water purification and has been effective in removing
excess fluoride and other impurities from water, making
it safe for consumption. With the concept of the Any Time PROJECT JALAPRASADAM: A TALE OF CLEAN WATER AND SACRED BOND
Water technology, access to safe drinking water is now
possible 24/7 through a system of prepaid cards. The project Driven by our purpose of providing safe drinking staff in proper maintenance and monitoring to
has empowered village communities to take ownership of water, we diligently installed state-of-the-art water ensure the continued operation and efficiency of the
the water purification systems, leading to a visible health purification plants at various temples around our RO systems.
impact within just two months of installation. The low cost of manufacturing units. These temples stood for
We believe that our efforts not only quenched the
upkeep ensures the sustainability of the project. their ancient traditions and spiritual significance.
physical thirst of the people but also nurtured a
Devotees from far and wide would visit these
We installed adequate safe drinking RO water plants in sense of solidarity and shared responsibility within
temples seeking solace, guidance, and a connection
villages, temples, colleges, and schools. As a result, this the community to ensure the sustenance of this
to the divine. However, a pressing concern troubled
initiative has made clean drinking water more accessible to precious resource. We hope that our journey shall
the temple authorities: the lack of clean drinking
many people in Telangana and Andhra Pradesh. serve as a reminder that even the simplest act
water for the weary pilgrims.
of kindness, when performed with unwavering
Divi’s recognised that providing pure drinking water dedication and love, have the power to transform
Way Forward was not just a necessity, but a duty imbued with the lives and bring about meaningful change.
essence of compassion and service. With careful
Project Sujalam and Jalaprasadam have made a tangible
planning and unwavering dedication, we set up RO
impact in improving the lives of people and transformed
purification plants at temples, ensuring that every

~1,57,000
their access to water. Divi’s continues to be committed to this
visitor could partake in the divine experience with a
mission and looks forward to expanding this project to more
sense of purity and well-being. Our efforts did not
communities in the future.
end with the installation of the purification plants as
we also took on the responsibility of training temple BENEFICIARIES ACROSS 8 TEMPLES, EACH DAY

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 Corporate Overview Statutory Reports Financial Statements

Social - Community

Clean Water for Bright Futures

We embarked on a project to distribute RO plants at schools
in 2010, ensuring access to safe and healthy drinking
water for students at Government schools. The project
~60,000 Students
BENEFICIARIES
encompassed various stages, including careful planning,
meticulous execution, and sustained support. Our goal
CHILD EMPOWERMENT was to address the pressing issue of limited access to
Empowering Tomorrow’s Citizens clean drinking water in schools, particularly around our

~84,000
We believe that children are the future of the nation, and manufacturing units.
it is essential to empower them to become healthy and
responsible citizens. We understand that providing a safe Impact
environment and access to education is crucial in shaping STUDENTS BENEFITTED ACROSS 827 SCHOOLS
the future of the country. Therefore, Divi’s is committed to IN AP AND TELANGANA OVER THE YEARS RO PLANTS INSTALLED IN

600 Schools
supporting education initiatives that promote sustainable
growth for the children of today and the leaders
of tomorrow.

DURING FY 2023
Impact Way Forward
During FY 2023, we supported more than 300 We also set up playgrounds at the SVLNS Govt Degree Way Forward
schools in Telangana and Andhra Pradesh through College Bheemili and provided scholarships to
infrastructure development. deserving students. We remain committed to expanding our efforts and reaching
more schools in need. We will continue to assess the
We undertook various initiatives such as constructing new We are committed to continuing our efforts to support impact of our CSR initiative, and explore opportunities to
classrooms and providing desks, benches, notebooks, education and empower children to become responsible improve the health and well-being of thousands of students,
school bags, shoes, and stationery, to improve the citizens. We will continue to expand our educational minimising the risk of waterborne illnesses.
learning environment. initiatives to more schools, benefiting more students and
providing them with the necessary resources to achieve
their goals.
Empowering lifelong learning – KG to PG
We believe in the transformative power of education and as
a part of our ongoing commitment to child empowerment,
we undertook a significant CSR initiative, aimed at the
development of Siricilla school, spanning from kindergarten
to post graduation.

Impact

~3,500 Students
BENEFICIARIES

Way Forward

Through our CSR initiative for the development of Siricilla

School, we have witnessed a remarkable transformation.
We will continue to monitor the impact of our initiatives,
collaborate with more schools, and seek innovative ways to
further improve the educational ecosystem at the school.

32 33rd Annual Report 2022-23 | 33

 Corporate Overview Statutory Reports Financial Statements

Social - Community

Village Development
Strengthening Rural India
Divi’s believes in the potential of rural India as the
backbone of our nation’s economy and culture. We have
~1,03,000
BENEFICIARIES ACROSS 44 VILLAGES
been working towards the holistic development of rural
infrastructure since the nineties.

COMMUNITY DEVELOPMENT
Empowering Communities for Sustainable
Development
Our community development initiatives are centred
~1,74,000 Impact

Our efforts have improved the quality of life in villages by

BENEFICIARIES ACROSS 55 VILLAGES developing roads, sanitation facilities, streetlights, toilets,
around three key focus areas: preventive healthcare, village cemeteries, water tanks, parks, and gram panchayat
development and animal welfare. Through these initiatives, buildings. During FY 2023, we supported grama panchayats
we aim to make a positive impact on the lives of people Impact in enhancing the roads and infrastructure of five villages by
and animals in the communities we serve. Our efforts building canals and underground drains.
During FY 2023, we conducted health check-ups and eye
have already benefited thousands of individuals and we
check-up camps, benefiting thousands of people in ten
remain committed to continuing our work towards creating
different villages.
sustainable and prosperous communities. Way Forward
Preventive Healthcare We will continue to complement the government’s efforts
Commitment to Ensuring Healthy Communities towards rural development by building sustainable
Divi’s prioritises preventive healthcare and spreading Way Forward infrastructure and empowering local communities.
awareness about diseases and their prevention. Through We will continue to focus on preventive healthcare,
our healthcare programmes and awareness campaigns, organising health check-ups, vaccinations, and spreading
we aim to establish a disease-free community. awareness about diseases.

~95,000
Animal Welfare
Ensuring a Compassionate World for Animals
Divi’s focuses on ensuring the welfare of animals, including
shelter, nutrition, and treatment, and enhancing income BENEFICIARIES ACROSS 44 VILLAGES
generation opportunities for local women who depend on
livestock for a livelihood.

Impact

We set up veterinary camps, animal wellness camps, and

strengthened veterinary hospitals in mandal headquarters.

Way Forward

Divi’s will continue to provide support to veterinary

dispensaries, set up dairy development and cattle feed
camps, and encourage the participation of women folk in
driving the importance of dairy farming as a sustainable
economic activity.

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 Corporate Overview Statutory Reports Financial Statements

Social - Community

PEOPLE EMPOWERMENT
Creating an Inclusive Society for Sustainable
Development
Divi’s believes in the power of people, and to this end, we
~1,000
BENEFICIARIES ACROSS 33 VILLAGES
are committed to empowering women and supporting
differently abled individuals through various initiatives.
Our people empowerment initiatives aim to create a more Impact
inclusive society where everyone has equal opportunities to During FY 2023, we helped women gain skills and become
succeed and contribute to the development of our society. financially independent by providing training to succeed in
various fields such as tailoring, bookbinding, embroidery,
Women Empowerment and beauty-related courses.
Creating Self-Employment Opportunities for Women
We believe that empowering women through skill
Way Forward
development and self-employment opportunities are key
to eliminating poverty and contributing to our society’s We will continue to encourage and support women’s
economic growth. Our Mahila Bhavans and training livelihood programmes and provide skill development
programmes have provided women with the necessary facilities. Our aim is to empower more women to become
equipment and training to succeed in various fields. financially independent and contribute to our society’s
economic growth.

Supporting Differently Abled Individuals

For Creating a More Inclusive Society
We are committed to supporting differently abled individuals
~300
BENEFICIARIES
and creating a better place for them to live and aspire for a
better tomorrow by providing them with the facilities they
need to live independently and achieve their goals.

Impact

During FY 2023, we distributed laptops to visually challenged

children and built hostels with better infrastructure.

Way Forward

We will continue to support differently abled individuals

and create facilities that cater to their needs. Our goal is to
create a more inclusive society where everyone has equal
opportunities to succeed and lead fulfilling lives.

36 33rd Annual Report 2022-23 | 37

 Corporate Overview Statutory Reports Financial Statements

Social- Community

ENVIRONMENTAL SUSTAINABILITY
Divi’s Laboratories believes in the importance of promoting
human well-being and environmental health. As part of our
commitment to sustainability, we have implemented various
~60,000
initiatives to support ecological balance both within and SAPLINGS PLANTED
outside our manufacturing units.

Impact Way Forward

During the year, we planted ~60,000 saplings around a Moreover, it will create a conducive habitat for wildlife,
village in Visakhapatnam to increase the green cover in the improve soil quality, and prevent soil erosion.
area and promote ecological balance.
Going forward, we will continue to implement initiatives to
This will have a significant positive impact on the local promote ecological balance and support the environment to
environment. The increased green cover will aid in the foster a more sustainable future for all.
absorption of carbon dioxide and various pollutants, leading
to air purification and the sustenance of the ecosystem.

Impact story

CONTRIBUTING TO A MORE SUSTAINABLE FUTURE THROUGH

MIYAWAKI TECHNIQUE

Developed Yadadri model natural forest in 10 villages

10 ~30,000 ~1,21,000
VILLAGES SAPLINGS PEOPLE CAN HAVE ABUNDANT OXYGEN,
RELEASED BY THESE PLANTS

Distributed Ganesh idols Developed Kambalakonda forest

~10,000 ~20,000
BENEFICIARIES BENEFICIARIES

38 33rd Annual Report 2022-23 | 39

Business Responsibility & Sustainability Report (BRSR)

Section A: General Disclosures

I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Company L24110TG1990PLC011854
2. Name of the Listed Entity Divi’s Laboratories Limited
3. Year of incorporation 1990
4. Registered office address Divi Towers, 1-72/23(P)/DIVIS/303, Cyber Hills, Gachibowli,
Hyderabad – 500 032, Telangana, India
5. Corporate address Divi Towers, 1-72/23(P)/DIVIS/303, Cyber Hills, Gachibowli,
Hyderabad – 500 032, Telangana, India
6. E-mail [email protected]
7. Telephone +91 40-66966300
8. Website www.divislabs.com
9. Financial year for which reporting is being done April 1, 2022 to March 31, 2023
10. Name of the Stock Exchange(s) where shares are listed National Stock Exchange of India Limited (NSE), and
BSE Limited (BSE)
11. Paid-up Capital C 53,09,37,160/-
12. Name and contact details (telephone, email address) of the person who M. Satish Choudhury
may be contacted in case of any queries on the BRSR report Company Secretary
[email protected]
040-66966352
13. Reporting boundary - Are the disclosures under this report made on a The disclosure under this BRSR is on standalone basis
standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. unless otherwise stated.
for the entity and all the entities which form a part of its consolidated
financial statements, taken together).

II. Products/services
14. Details of business activities (accounting for 90% of the turnover):

S. No Description of Main Activity Description of Business Activity % of Turnover of the entity

1. Manufacture of Active pharma ingredients, Manufacture of Active pharma ingredients, 100%
intermediates and nutraceuticals intermediates and nutraceuticals

15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

S.No Product/ Service NIC Code % of total Turnover contributed

1. Manufacture of Active pharma ingredients, intermediates, custom 21009 100%
pharmaceutical services and nutraceuticals

III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of plants Number of offices Total

National 3* 1 4
International 0 2 2

*The plants include the Company’s manufacturing locations and R&D centres.

17. Markets served by the entity:

a. Number of locations

Locations Number
National (No. of States) Pan India
International (No. of Countries) 86

40
 Corporate Overview Statutory Reports Financial Statements

b. What is the contribution of exports as a percentage of the total turnover of the entity?
88%

c. A brief on types of customers

Our customers include various pharmaceutical and nutraceutical companies across the globe.

IV. Employees

18. Details as at the end of Financial Year:

a. Employees and workers (including differently abled):

Male Female
S. No. Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
Employees
1. Permanent (D) 8,375 7,223 86.24 1,152 13.76
2. Other than Permanent (E) 2,290 1,767 77.16 523 22.84
3. Total employees (D + E) 10,665 8,990 84.29 1,675 15.71
Workers
4. Permanent (F) 58 58 100.00 0 0.00
5. Other than Permanent (G) 6,188 6,183 99.92 5 0.08
6. Total workers (F + G) 6,246 6,241 99.92 5 0.08

b. Differently abled Employees and workers:

Male Female
S. No. Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
Differently abled Employees
1. Permanent (D) 19 18 94.74 1 5.26
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled employees (D + E) 19 18 94.74 1 5.26
Differently abled workers
4. Permanent (F) 0 0 0 0 0
5. Other than Permanent (G) 12 12 100 0 0
6. Total differently abled workers (F + G) 12 12 100 0 0

19. Participation/Inclusion/Representation of women:

No. and percentage of Females
Total (A)
No. (B) % (B/A)
Board of Directors 12 2 17%
Key Management Personnel* 7 1 14%

* Including Executive Directors

20. Turnover rate for permanent employees and workers:

FY 2022-23 FY 2021-22 FY 2020-21
Male Female Total Male Female Total Male Female Total
Permanent Employees 17.69% 23.70% 18.52% 15.72% 27.90% 17.39% 12.60% 17.69% 13.26%
Permanent Workers 1.72% 0 1.72% 0 0 0 0 0 0

V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding/subsidiary/associate companies/joint ventures:

Does the entity indicated

Name of the holding/ subsidiary/ Indicate whether at column A, participate in
S. % of shares held by
associate companies/ joint ventures holding/ Subsidiary/ the Business Responsibility
No. listed entity
(A) Associate/ Joint Venture initiatives of the listed entity?
(Yes/No)
1 Divis Laboratories (USA) Inc., New Subsidiary 100% No
Jersy, USA.
2 Divi’s Laboratories Europe AG, Basel, Subsidiary 100% No
Switzerland

33rd Annual Report 2022-23 | 41

VI. CSR Details
22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover (in C): C7,97,431 lakhs


(iii) Net worth (in C): C12,70,542 lakhs

VII. Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:

FY 2022-23 FY 2021-22
Grievance Redressal
Stakeholder Number of Number of
Mechanism in Place
group from Number of complaints Number of complaints
(Yes/No) (If Yes, then
whom complaints pending complaints pending
provide web- link for Remarks Remarks
complaint is filed during resolution at filed during resolution at
grievance redress
received the year close of the the year close of the
policy)
year year
Communities Yes* 0 0 - 0 0 -
Investors NA - - - - - -
(other than
shareholders)
Shareholders Yes* 59 0 - 22 0 -
Employees and Yes* 0 0 - 0 0 -
workers
Customers Yes* 37 5 # 37 6 Resolved
subsequently
Value Chain Yes* 0 0 - 0 0 -
Partners
Other (please Yes* - - - - - -
specify)
* Various policies of the Company for redressing the grievances of its stakeholders are available at https://www.divislabs.com/
investor-relations/. In addition there are internal policies placed on intranet of the Company.
# One complaint has been resolved and investigations are in progress for 4 complaints.

24. Overview of the entity’s material responsible business conduct issues:

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format.

Indicate
Financial implications of the
whether Rationale for
S. Material issue risk opportunity (Indicate
risk or identifying the In case of risk, approach to adapt or mitigate
No. identified positive or negative
opportunity risk/ opportunity
implications)
(R/O)
1 Occupational R In pharmaceutical Health and Safety management systems Occupational health
Health and manufacturing, and procedures are in place in line with & safety incidents can
Safety health and safety the applicable laws enacted in India like have negative financial
management Factories Act, Explosives Act, etc., as well as implications.
systems have to applicable international standards like ISO.
be inherent for These systems/procedures are reviewed and
uninterrupted audited periodically. Processes are in place
safe operations. for incident reviews leading to corrective and
preventive action.
2 Environment R The Company’s Environmental risks and impacts are Environmental risks may
Management operations may managed through established environment result in negative financial
result in risk to management practices. The practices include implications.
environment. conducting risk assessments, periodic review
mechanisms and continuous strengthening
practices and mitigation plans, using reviews
and corrective and preventive actions.

42
 Corporate Overview Statutory Reports Financial Statements

Indicate
Financial implications of the
whether Rationale for
S. Material issue risk opportunity (Indicate
risk or identifying the In case of risk, approach to adapt or mitigate
No. identified positive or negative
opportunity risk/ opportunity
implications)
(R/O)
3 Water R Water We are managing risks associated with Water management risks
management management water management through implementation may result in negative
is crucial for and strengthening of water recycle and financial implications.
the Company’s reuse programs, installation of RO plants
operations. to treat water to reuse, water conservation
programs (rainwater harvesting, collecting
steam condensate, etc), and by installation
of desalination plants to utilise seawater for
selected operations.
4 Community O The Company Positive: The Company
care believes in helps the communities
sustainable with CSR activities in the
development area of health, education,
and serves drinking water, women
the vulnerable empowerment, green
population around initiatives, support to
its manufacturing differently abled, rural
operations development, Skill
through its CSR development, etc. This
activities. gives the Company a
positive outlook in the
communities it operates.
5 Waste R Manufacturing We are managing risks associated with Waste Waste management risks
management of products management through implementation and may result in negative
requires abundant strengthening of recycle and reuse programs. financial implications.
quantities of Effective recovery of solvents from solvent
raw materials recovery system and reuse in the process.
and proper Implementation of green chemistry in the
management of process to reduce the waste generation.
waste. All solid waste generated are handled as
per the applicable regulations of Ministry
of Environment, Forest & Climate Change
of India and Pollution Control Board’s (PCB)
conditions.

Section B: Management and Process Disclosures

The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs advocates
nine principles referred as P1 to P9 as given below:

P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
P3 Businesses should promote the wellbeing of all employees
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged,
vulnerable and marginalised.
P5 Businesses should respect and promote human rights
P6 Business should respect, protect, and make efforts to restore the environment
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
P8 Businesses should support inclusive growth and equitable development
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner

33rd Annual Report 2022-23 | 43

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1. a. Whether your entity’s policy/policies cover each Yes Yes Yes Yes Yes Yes NA Yes Yes
principle and its core elements of the NGRBCs.
(Yes/No)
b. Has the policy been approved by the Board? (Yes/ The Policies are approved by the Board or respective Executive Director as
No) authorised by the Board.
c. Web Link of the Policies, if available (Click on policy for web access if available on the Company’s website i.e.
www.divislabs.com)
P1 to P9 (excluding P7) - Code of Ethics and Business Conduct
P1 - Whistle Blower Policy
P2 - Supplier Code of Conduct, Sustainable procurement policy
P3 to P5 - Labour and Human Rights Policy
P4 - Corporate Social Responsibility Policy
P6 – Environmental, Health and Safety Policy, Environmental Sustainability Policy
P7 – NA
P9 - Information Security Policies (available on our intranet)
2. Whether the entity has translated the policy into Yes NA Yes
procedures. (Yes/No)
3. Do the enlisted policies extend to your value chain Yes Yes Yes Yes Yes Yes NA No Yes
partners? (Yes/No)
4. Name of the national and international codes/ ISO ISO ISO As per the
certifications/labels/ standards (e.g. Forest Stewardship 45001, 45001 14001, CSR Rules
Council, Fairtrade, Rainforest Alliance, Trustea) ISO OHSAS ISO prescribed
standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by 9001 18001 14064, under the
your entity and mapped to each principle. CGMP Companies
Act, 2013
5. Specific commitments, goals and targets set by the The Company has set specific ESG objectives which lays down the key aspects
entity with defined timelines, if any. of the sustainability including timelines for the same. We have set the following
sustainability targets for 2030:
Carbon Footprint Water Conservation
• Reduce absolute based GHG (Scope-1 • Reduce ground water & surface
& Scope emission by 5%. water intake by 30%.
• Reduce intensity based GHG (Scope-1 & • Reduce water consumption by
Scope-2) emission by 25%. 25%.
• Reduce intensity-based water
consumption by 25%.
Energy Conservation Waste Management
• Decrease intensity-based energy • Reduce intensity-based waste
consumption by 25%. disposal by 25%.
• Rely on renewable energy sources to • Reduce plastic waste using for
the extent possible, where applicable. packing.
6. Performance of entity against the specific The performance against specific commitments, goals achieved during the year is
commitments, goals and targets along-with reasons in as follows:
case the same are not met.
Carbon Footprint Water Conservation
• ~15,500 TCO2e emissions were reduced • ~39,000 M3 of water was
with the initiatives taken during the conserved with the initiatives
reporting period. taken during the reporting period.
Energy Conservation Waste Management
• ~1,58,71,000 KWH or 57,135 GJ • Reduced ~85 MT of waste.
of energy was conserved with the
initiatives taken during the reporting
period .
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed
entity has flexibility regarding the placement of this disclosure): Please refer Managing Director’s perspective at page no. 10 of this annual
report.
8. Details of the highest authority responsible for Dr. Murali K. Divi
implementation and oversight of the Business Managing Director
Responsibility policy (ies). DIN: 00005040
Email: [email protected]
Tel: 040-66966352

44
 Corporate Overview Statutory Reports Financial Statements

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
9. Does the entity have a specified Committee of the Yes, Mr. Madhusudhana Rao Divi, Whole-time Director (Projects) is the head of
Board/ Director responsible for decision making on business responsibility and leads the sustainability/ESG strategies in the Company.
sustainability related issues? (Yes/No). If yes, provide He reports and updates the Board on sustainability issues as part of the business
details. performance review.

10. Details of Review of NGRBCs by the Company:

Subject for Review Indicate whether review was undertaken by Director/Committee of the
Board/ Any other Committee and Frequency
Performance against above policies and follow up The Policies of the Company are reviewed periodically or on need basis by
action respective Department heads/Executive Directors/Board Committees/Board of
Directors, as applicable.
Compliance with statutory requirements of relevance to The Company is in compliance with all applicable laws.
the principles, and rectification of any non-compliances
11. Has the entity carried out independent assessment/ P1 P2 P3 P4 P5 P6 P7 P8 P9
evaluation of the working of its policies by an external No Yes, No No No Yes, NA No No
agency? (Yes/No). If yes, provide name of the agency. Bureau Bureau
Veritas Veritas
India India

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:

With respect to Principle 7, the answer is “Not Applicable” (NA) as the Company does not have a separate policy on
public advocacy.

Section C: Principle Wise Performance Disclosure

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

% age of persons
Total number
in respective
of training and
Segment Topics/ principles covered under the training and its impact category covered
awareness
by the awareness
programmes held
programmes
Board of 4 Familiarisation programs for the Board of Directors/ KMPs of the 100%
Directors (BoD) Company are done periodically. The topics of the programmes includes
Key Managerial business and industry updates, risk management, important regulatory
Personnel changes and compliances of various statutory requirements, updating
on various Codes/Policies of the Company, environmental, social and
governance parameters, legal cases, etc.
Employees other 1251 In addition to on-the-job training programs, all the employees including 100%
than BoD and workers underwent trainings which include topics covering principles
KMPs P1-6, P8, P9.
Workers

2. Details of fines/penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by
directors/KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format.

(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations
and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

33rd Annual Report 2022-23 | 45

 Monetary
Name of the regulatory/
Has an appeal been
NGRBC Principle enforcement agencies/ Amount (In INR) Brief of the Case
preferred? (Yes/No)
judicial institutions
Penalty/ Fine
Settlement
Nil
Compounding fee
Non-Monetary

Non-Monetary
Name of the regulatory/
Has an appeal been
NGRBC Principle enforcement agencies/ Brief of the Case
preferred? (Yes/No)
judicial institutions
Imprisonment
Nil
Punishment

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-
monetary action has been appealed.

Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-
link to the policy.

Yes. The Company has Anti-Corruption Policy, which not only covers the company but also extend to our stakeholders, vis.,
suppliers, customers, employees, etc.

Weblink: https://www.divislabs.com/wp-content/uploads/2022/02/Anti-Corruption-Policy.pdf

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency
for the charges of bribery/ corruption:

FY 2022-23 FY 2021-22
Directors 0 0
KMPs 0 0
Employees 0 0
Workers 0 0

6. Details of complaints with regard to conflict of interest:

FY 2022-23 FY 2021-22
Number Remarks Number Remarks
Number of complaints received in relation to issues of 0 - 0 -
Conflict of Interest of the Directors
Number of complaints received in relation to issues of 0 - 0 -
Conflict of Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines/penalties/action taken by regulators/
law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Not applicable

Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

% age of value chain partners covered (by

Total number of awareness Topics/ Principles covered
value of business done with such partners)
programmes held under the training
under the awareness programmes
Nil Nil Nil

46
 Corporate Overview Statutory Reports Financial Statements

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If
Yes, provide details of the same.

Yes, the Company has in place “Code of Ethics and Business Conduct” and a ‘Policy on Related Party Transactions’, which are
applicable to the members of the Board of Directors. Transactions with Directors or any entity in which such Directors are
concerned or interested, are required to be approved by the Audit Committee and the Board of Directors. In such cases,
the interested Directors abstain themselves from the discussions at the meeting. Related Party Transactions, if any, with the
Company shall be at arm’s length basis only. The weblink of the abovementioned policies are mentioned below:


Code of Ethics and Business Conduct: https://www.divislabs.com/wp-content/uploads/2022/02/Code-of-Ethics-and-
Business-Conduct-of-Divis-Laboratories-Limited.pdf

Policy on Related Party Transactions: https://www.divislabs.com/wp-content/uploads/2022/04/RPT-policy.pdf

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

Details of improvements in
FY 2022-23 FY 2021-22
environmental and social impacts
R&D During the year 2022-23, the total During the year 2021-22, the total With the improvements taken
Capex investment in R&D and capital expenditure investment in R&D and capital during the year 2022-23, ~15,500
was about C6,934 lakhs. This includes expenditure was about C5,905 lakhs. This TCO2e emissions were reduced,
R&D and capex investments in specific includes R&D and capex investments ~39,000 M3 of water was conserved
technologies to improve the environmental in specific technologies to improve the and ~1,58,71,000 KWH of energy
and social impacts of products and environmental and social impacts of was conserved.
processes products and processes

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No): Yes

b. If yes, what percentage of inputs were sourced sustainably?

Yes, at Divis, we are striving for sustainability across all functions of our organisation including sourcing and
procurement. Through our Sustainable Procurement policy, we are committed to ensuring the goods and services we
purchase are manufactured, delivered, used and disposed of in an environmentally and socially responsible manner.
It is also intended to encourage our suppliers to adopt practices that minimise their environmental impact and deliver
community benefits, in relation to their own operations, and throughout the supply chains in which they operate.

About 80% volume of our purchases are sourced from vendors who embraced our sustainable procurement policy

c. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life,
for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

We have adopted a waste management procedure under which plastic wastes management is taken care right
from receipts to disposal. The plastic waste (packaging and other type) generated from our operations is collected,
segregated at point of generation, and sent to authorised recyclers by following all applicable local regulations. E-waste
generated from our operations is collected and transferred to authorised recyclers/dismantling agencies by following
all applicable local regulations. Hazardous & Other Waste: Adopting the benchmarking practices on hazardous waste
management, most of the waste is co-processed as alternative fuel instead of incineration which shall cutdown the
incinerated ash sent for Landfill. Organic/distillation bottom residues which possess calorific value are sent to cement
industries as alternate fuel in the kilns. Inorganic solid wastes are disposed to TSDF (An authorised Govt. secure land
fill) and or to authorised re-processor.

d. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the
waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Boards? If not, provide steps taken to address the same.

Yes. Actions are implemented to minimise the amount of plastic waste generated and ensure that the waste is recycled/
reused or disposed off to environment in friendly manner. For the purpose of implementation, we have engaged
engaged with authorised Recyclers. Our waste collection plan is in line with the EPR plan submitted to PCB.

33rd Annual Report 2022-23 | 47

Leadership Indicators
1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry) or
for its services (for service industry)? If yes, provide details in the following format?

Few of our products are taken up for life cycle assessment.

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products/
services, as identified in the Life Cycle Perspective/Assessments (LCA) or through any other means, briefly describe the
same along-with action taken to mitigate the same.

Not applicable

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry)
or providing services (for service industry).

We have established systems for recovering and recycle/reuse for most of our input materials. The recovery of about 6 input
materials is about 90% to 95%.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely
disposed, as per the following format:

Not applicable. Considering the line of business/operations, we have not reclaimed any products and packaging at the end
of life of products.

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Not applicable. We have not reclaimed any products and their packaging materials.

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value
chains
Essential Indicators
1. a. Details of measures for the well-being of employees:

% of employees covered by
Health Insurance Accident Insurance Maternity Benefits Paternity Benefits Day Care facilities
Category
Total (A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Permanent Employees
Male 7,223 7,223 100 7,223 100 NA NA NA NA 7,223 100
Female 1,152 1,152 100 1,152 100 1,152 100 NA NA 1,152 100
Total 8,375 8,375 100 8,375 100 1,152 100 - 8,375 100
Other than Permanent Employees
Male 1,767 1,767 100 1767 100 NA NA NA NA 1,767 100
Female 523 523 100 523 100 523 100 NA NA 523 100
Total 2,290 2,290 100 2,290 100 523 100 - - 2,290 100

NA: Not Applicable

b. Details of measures for the well-being of workers:

% of workers covered by
Health Insurance Accident Insurance Maternity Benefits Paternity Benefits Day Care facilities
Category
Total (A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Permanent workers
Male 58 58 100 58 100 NA NA NA NA 58 100
Female 0 0 0 0 0 0 0 NA NA 0 0
Total 58 58 100 58 100 0 0 - - 58 100

48
 Corporate Overview Statutory Reports Financial Statements

% of workers covered by
Health Insurance Accident Insurance Maternity Benefits Paternity Benefits Day Care facilities
Category
Total (A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Other than Permanent workers
Male 6,183 6,183 100 6,183 100 NA NA NA NA 6,183 100
Female 5 5 100 5 100 5 100 NA NA 5 100
Total 6,188 6,188 100 6,188 100 5 100 - - 6,188 100

2. Details of retirement benefits, for Current FY and Previous Financial Year.

FY 2022-23 FY 2021-22
Deducted and Deducted and
Benefits No. of employees No. of workers No. of employees No. of workers
deposited with deposited with
covered as a % of covered as a % of covered as a % of covered as a % of
the authority the authority
total employees total workers total employees total workers
(Y/N/N.A.) (Y/N/N.A.)
PF 100 100 Y 100 100 Y
Gratuity 100 100 N.A. 100 100 N.A.
ESI 53% 83.4% Y 52% 82.4% Y
Others –please specify - - - - - -

3. Accessibility of workplaces: Are the premises/offices of the entity accessible to differently abled employees and workers, as
per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the
entity in this regard.

Yes.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.

Yes. The Company’s Code of Ethics and Business Conduct provides for equal opportunities for all its employees and all
qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, gender, age,
nationality, ethnic origin or disability (to the extent it does not affect the performance of the expected functions), subject to
applicable laws and regulations. Weblink to access the Code of Ethics and Business Conduct is https://www.divislabs.com/
wp-content/uploads/2022/02/Code-of-Ethics-and-Business-Conduct-of-Divis-Laboratories-Limited.pdf

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Permanent Employees Permanent Workers

Gender Return to work Return to work
Retention rate Retention rate
rate rate
Male NA NA NA NA
Female 100% 81.8% NA NA
Total 100% 81.8%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker?
If yes, give details of the mechanism in brief.

Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers Yes Yes (A Grievance Redressal Mechanism has been constituted to hear and redress individual
Other than Permanent Workers Yes grievances).
The Company has formulated Whistle Blower Policy for redressing grievances related to
Permanent Employees Yes unethical behavior, actual or suspected fraud or a violation of a Company’s Code of Conduct.
Other than Permanent Yes As per this Policy, the concerns can be sent to the Vigilance Officer or directly to the
Employees Chairman of the Audit Committee. The policy can be accessed at https://www.divislabs.com/
wp-content/uploads/2020/06/WhistleBlowerPolicy.pdf

33rd Annual Report 2022-23 | 49

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

FY 2022-23 FY 2021-22
No. of employees/ No. of employees/
workers in workers in
Total employees/ Total employees/
Category respective respective
workers in workers in
category, who % (B/A) category, who % (D/C)
respective respective
are part of are part of
category (A) category (C)
association(s) or association(s) or
Union (B) Union (D)
Total Permanent 8,375 Nil 0 8,778 Nil 0
Employees
Male 7,223 Nil 0 7,553 Nil 0
Female 1,152 Nil 0 1,225 Nil 0
Total Permanent 58 Nil 0 59 Nil 0
Workers
Male 58 Nil 0 59 Nil 0
Female 0 Nil 0 0 Nil 0

8. Details of training given to employees and workers:

FY 2022-23 FY 2021-22
On Health and safety On Health and safety
Category On Skill upgradation On Skill upgradation
Total (A) measures Total (D) measures
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 8,990 8,990 100 8,990 100 8,997 8,997 100 8,997 100
Female 1,675 1,675 100 1,675 100 1,519 1,519 100 1,519 100
Total 10,665 10,665 100 10,665 100 10,529 10,516 100 10,516 100
Workers
Male 6,241 6,241 100 6,241 100 6,021 6,021 100 6,021 100
Female 5 5 100 5 100 6 6 100 6 100
Total 6,246 6,246 100 6,246 100 6,027 6,027 100 6,027 100

Note: Training programmes offered under health and safety and skill upgradation are mandatory for all employees and
workers. All of them attended the training programmes as per schedule.

9. Details of performance and career development reviews of employees and worker:

FY 2022-23 FY 2021-22
Category
Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 7,223 7,223 100 7,540 7,540 100
Female 1,152 1,152 100 1,225 1,225 100
Total 8,375 8,375 100 8,765 8,765 100
Workers
Male 58 58 100 59 59 100
Female 0 0 100 0 0 100
Total 58 58 100 59 59 100

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes,
the coverage such system?

Yes, occupational health and safety management system has been implemented. All our manufacturing sites, Divi’s
Research Centre (DRC) & Corporate Office (HO) are ISO 45001 certified. Coverage of the system is 100% of our operations.

50
 Corporate Overview Statutory Reports Financial Statements

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?

Well established SOPs (Guidance Document) are in place for Hazard Identification and Risk Assessment (HIRA). As part
of continual improvement, we take significant steps to improve health and safety practices within the organisation and
strive to sustain benchmarking levels. Risk Analysis procedures following at Divi’s includes, Process Safety Risk Analysis,
HIRA, HAZOP Study, Chemical Workplace risk assessment and LOPA. After identifying Hazards, the possibility and the
consequences of each Hazard are examined by following quantitative 5x5 Risk Assessment Matrix (RAM) to establish
the level of risk both before and after implementation of safeguards.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such
risks. (Y/N)

Yes. The procedures that enables the workers to report work related hazards are in place. As a regular practice, worker
is nominated as one of the team members for all Hazard Identifications and Risk Assessments. In addition, a well-
established procedure on employee (worker) suggestions on all work-related improvements is in place.

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)
Yes. Employees/ worker of the entity have access to non-occupational medical and healthcare services.

11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2022-23 FY 2021-22

Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked) Employees 0.26 0.42
Workers 0.64 1.16
Total recordable work-related injuries Employees 0 0
Workers 0 0
No. of fatalities Employees 0 0
Workers 0 0
High consequence work-related injury or ill-health (excluding fatalities) Employees 0 0
Workers 0 0

12. Describe the measures taken by the entity to ensure a safe and healthy work place.

Adherence to our Health & Safety (EHS) policy is at the core of our operations. We have a well-established procedure for
Hazard Identification and Risk Analysis (HIRA), which helps limit safety hazards. It covers routine and non-routine works
with an executed action plan that minimises risks to acceptable levels. All routine, non-routine activities, emergency
activities are assessed to identify health & safety risks related to product manufacturing, services, operations considering
changes (including planned or new developments, modified activities. All our manufacturing sites, Research Centre (DRC)
& Corporate Office (HO) are ISO 45001 certified. We have established Committees (Safety, Health) at different levels in the
organisation, to guide employees on EHS matters As part of our commitment to consciously promote safe and healthy
workplace practices, we encourage our employees, supervisors and managers to take direct ownership of their safety, and
the safety of their colleagues.

13. Number of Complaints on the following made by employees and workers:

FY 2022-23 FY 2021-22
Pending Pending
Filed during the Filed during the
resolution at the Remarks resolution at the Remarks
year year
end of year end of year
Working Conditions Nil Nil - Nil Nil -
Health & Safety Nil Nil - Nil Nil -

14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100%

33rd Annual Report 2022-23 | 51

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant
risks/concerns arising from assessments of health & safety practices and working conditions.

Not Applicable

Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N).

Yes, for Employees and Workers.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.

The company periodically communicates with the value chain partners and persues compliances. This activity is also
reviewed by internal auditor/consultants. The Company expects its value chain partners to uphold business responsibility
principles and values of transparency and accountability.

3. Provide the number of employees/workers having suffered high consequence work- related injury/ill-health/fatalities (as
reported in Q11 of Essential Indicators above), who have been/are rehabilitated and placed in suitable employment or
whose family members have been placed in suitable employment:

No. of employees/workers that

are rehabilitated and placed in
Total no. of affected employees /
suitable employment or whose
workers
family members have been placed in
suitable employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees Nil Nil NA NA
Workers Nil Nil NA NA

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career
endings resulting from retirement or termination of employment? (Yes/ No) Yes

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices Assessment of value chain partners has commenced and ~80% of our supply chain partners by volume
Working Conditions have responded to participate in our assessment.

6. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from assessments
of health and safety practices and working conditions of value chain partners.

During the reporting period, no corrective action plan was necessitated.

If any such risks/concerns are noticed, the value chain partner will be asked to comply with requisite measures in a timebound
manner. If not complied within the given time, procurement will be differed till the value chain partners improve the safety
practices and working conditions to address the risk/concern.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
We recognise key stakeholder as an individual or group of individuals or institutions that impact our business or are
impacted by our business. Our key stakeholders include employees, customers, investors, suppliers, the community and
government authorities.

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 Corporate Overview Statutory Reports Financial Statements

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Whether Channels of communication

Frequency of engagement
identified as (Email, SMS, Newspaper, Purpose and scope of engagement
Stakeholder (Annually/ Half yearly/
Vulnerable & Pamphlets, Advertisement, including key topics and concerns
Group Quarterly/ others – please
Marginalised Community Meetings, Notice raised during such engagement
specify)
Group (Yes/No) Board, Website, others)
Employees No Emails, notice boards, Continuous and as per For employee wellbeing, to provide a
website, management requirement safe and inclusive workplace, provide
interactions required infrastructure and training
for professional and personal growth.
Also to redress grievances and work on
feedbacks and consultation.
Customers No Emails, brochures, website Based on business needs To keep the customers informed about
and meetings (physical and our products and services and to
virtual). understand the business needs.
Value chain No Emails, website and meetings Based on business needs To ensure timely supply of goods and
partners (physical and virtual). services in order to maintain business
continuity sustainably.
Shareholders No Notices, advertisements, Quarterly/half-yearly/annual Disclosure of financial information and
email, annual reports, stock business updates beside applicable
exchange intimations, statutory disclosures.
earnings conference calls
and through updates on
Company’s website.
Community Yes CSR Initiatives, In-person Need basis With a commitment to make
Meetings meaningful change a reality, we
continue to undertake varied initiatives
aimed at improving lives of vulnerable/
marginalised groups in the community.
Government/ No Various submissions and As per statutory To ensure and report various
Government disclosures, meetings, emails, requirement and need compliances to discharge statutory
Agencies etc based responsibilities and to keep the policy
makers informed about industry
requirements.

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics
or if consultation is delegated, how is feedback from such consultations provided to the Board.

Consultation with relevant stakeholders on the economic, environmental, and social topics is done by the respective
functional heads and the feedback is shared with the Management/Committee/Board, as required.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.

Yes. For instance, CSR activities are identified, prioritised, and implemented in consultation with relevant stakeholders.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalised
stakeholder groups.

The departmental heads are empowered to engage and address the concerns of vulnerable/ marginalised stakeholder
groups as needed.

Our CSR initiatives are implemented with the objective to reach out to vulnerable and marginalised stakeholder groups.
Based on the engagement with stakeholder groups, needs are identified, and efforts are put in to address the concerns.

Some of the areas in which the organisation is working are:

• Promoting Education by strengthening infrastructure through science labs, sports facilities, libraries and an initiative
to eradicate malnutrition by providing Horlicks sachets to all the schools surrounding the manufacturing facilities.

• Providing pure drinking water to people residing in the surrounding communities through which approx. 3,00,000
people are benefitted.

33rd Annual Report 2022-23 | 53

 • Empowering women by providing required support women right by encouraging them to get educated to earning
a livelihood.

• Plantation around the company’s manufacturing facilities and organising clean and green programme.

• To empower the youth with right skills for their future employment and self-employment needs livelihood training
programs like Tailoring, Beautician course, Hospitality, basic computer skills etc. in Divi’s Skill Development Centre.

• Other key initiatives include, animal welfare, preventive healthcare, swach bharat, rural development, support to
differently abled, etc.

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:

FY 2022-23 FY 2021-22

Category No. of employees/ No. of employees/

Total (A) workers % (B/A) Total (C) workers covered % (D/C)
covered (B) (D)
Employees
Permanent 8,375 8,375 100 8,765 8,765 100
Other than Permanent 2,290 2,290 100 1,751 1,751 100
Total Employees 10,665 10,665 100 10,516 10,516 100
Workers
Permanent 58 58 100 59 59 100
Other than Permanent 6,188 6,188 100 5,968 5,968 100
Total Workers 6,246 6,246 100 6,027 6,027 100

2. Details of minimum wages paid to employees and workers, in the following format:

FY 2022-23 FY 2021-22
More than Minimum More than Minimum
Category Equal to Minimum Wage Equal to Minimum Wage
Total (A) Wage Total (D) Wage
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Permanent 8,375 0 0 8,375 100 8,765 0 0 8,765 100
Male 7,223 0 0 7,223 100 7,540 0 0 7,540 100
Female 1,152 0 0 1,152 100 1,225 0 0 1,225 100
Other than 2,290 0 0 2,290 100 1,751 0 0 1,751 100
Permanent
Male 1,767 0 0 1,767 100 1,457 0 0 1,457 100
Female 523 0 0 523 100 294 0 0 294 100
Workers
Permanent 58 0 0 58 59 0 0 59 100
Male 58 0 0 58 100 59 0 0 59 100
Female 0 0 0 0 100 0 0 0 0 -
Other than 6,188 0 0 6,188 5,968 0 0 5,968 100
Permanent
Male 6,183 0 0 6,183 100 5,962 0 0 5,962 100
Female 5 0 0 5 100 6 0 0 6 100

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 Corporate Overview Statutory Reports Financial Statements

3. Details of remuneration/salary/wages, in the following format:

Male Female
Median Median
remuneration/ remuneration/
salary/ wages salary/ wages
Number Number
of respective of respective
category category
(In ` lakhs) (In ` lakhs)
Executive Directors 4 3054.99 1 2462.74
Independent Directors* 6 31.00 1 25.00
Key Managerial Personnel# 2 179.97 - -
Employees other than Board of Directors (BoD) and KMP 7,217 4.81 1,151 3.89
Workers 58 8.54 - -

Note: *Independent directors are paid by way of sitting fees and annual remuneration equal to male and female categories.

#Other than Executive Directors

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No) Yes

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

For employees, a grievance redressal committee is constituted for the resolution of disputes arising out of individual
grievances. The committee has equal representation from management and workers. Individual workers can raise grievances
to the committee. The grievance redressal committee would enquire and resolve the grievance within defined time limits.

Also, the Company has a Whistle Blower Policy with defined procedures to report instances of unethical behavior, actual
or suspected fraud, or violation of the Code of Ethics and Business Conduct to the Vigilance Officer/Chairman of the Audit
Committee. The Policy is available on the Company’s website.

6. Number of Complaints on the following made by employees and workers:

FY 2022-23 FY 2021-22
Pending Pending
Filed during the Filed during the
resolution at the Remarks resolution at the Remarks
year year
end of year end of year
Sexual Harassment 0 0 - 0 0 -
Discrimination at 0 0 - 0 0 -
workplace
Child Labour 0 0 - 0 0 -
Forced Labour/ 0 0 - 0 0 -
Involuntary Labour
Wages 0 0 - 0 0 -
Other human rights 0 0 - 0 0 -
related issues

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

A mechanism is in place to handle the complaints related to discrimination and harassment which also includes prevention
of adverse consequences to the complainant. Any retaliation or threats against those who make harassment complaints or
assist in the investigation shall be subject to disciplinary measures.

Also, the Company has Whistle Blower Policy with a set mechanism to file complaints, which will be appropriately dealt with
by the Chairman of the Audit Committee.

8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)

Yes.

33rd Annual Report 2022-23 | 55

9. Assessments for the year:

% of your plants and offices that were assessed

Category
(by entity or statutory authorities or third parties)
Child labour 100%
Forced/involuntary labour 100%
Sexual harassment 100%
Discrimination at workplace 100%
Wages 100%
Others – please specify -

10. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments
at Question 9 above.

Not applicable

Leadership Indicators
1. Details of a business process being modified/introduced as a result of addressing human rights grievances/complaints.

Not applicable

2. Details of the scope and coverage of any Human rights due diligence conducted.

The Company undertook due diligence of human rights through internal protocols as per policies and procedures.

3. Is the premise/office of the entity accessible to differently-abled visitors, as per the requirements of the Rights of Persons
with Disabilities Act, 2016?

Yes.

4. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment Assessment of value chain partners has commenced and ~80% of our supply chain partners by
Discrimination at workplace volume have responded to participate in our assessment.
Child Labour
Forced Labour/Involuntary Labour
Wages
Others – please specify

5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments
at Question 4 above.

Not applicable.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment:
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Parameter FY 2022-23 FY 2021-22

Total electricity consumption (A) 15,03,759 GJ 14,92,264 GJ
Total fuel consumption (B) 36,94,336 GJ 36,85,695 GJ
Energy consumption through other sources (C) 1,939 GJ 1,964 GJ
Total energy consumption (A+B+C) 52,00,034 GJ 51,79,923 GJ
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees) 6.52 GJ/I 5.76 GJ/H
(in lakhs) (in lakhs)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

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 Corporate Overview Statutory Reports Financial Statements

2. Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been
achieved. In case targets have not been achieved, provide the remedial action taken, if any.

No.

3. Provide details of the following disclosures related to water, in the following format:
Parameter FY 2022-23 FY 2021-22
Water withdrawal by source (in kiloliters)
(i) Surface water 10,66,027 8,87,845
(ii) Groundwater 8,17,105 8,27,415
(iii) Third party water 24,577 23,836
(iv) Seawater/desalinated water 9,31,001 8,64,840
(v) Others 0 0
Total volume of water withdrawal (in kiloliters) (i + ii + iii + iv + v) 28,38,710 26,03,936
Total volume of water consumption (in kiloliters) 36,18,258 33,19,431
Water intensity per rupee of turnover (Water consumed/turnover) 4.54 Kl/ Rupees 3.69 Kl/ Rupees
(in lakhs) (in lakhs)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

Yes, Divi’s laboratories Limited has installed Zero Liquid Discharge (ZLD) for effluent treatment at Unit-I operating in
Telangana state. All kind of effluents are managed under ZLD system installed with various kinds of advance technologies
and adequate standby systems. The RO permeates collected from final treatment of effluents are re-used/recycled within
the industry. The domestic wastewater is treated in STP and the treated water is re-used for toilet flushing and gardening.
Complete ETP of ZLD system is monitored through online monitoring system. The real time data of online monitoring
system is connected to official websites of PCB.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter Please specify unit FY 2022-23 FY 2021-22
NOx Tons 75.51 126.53
SOx Tons 57.12 90.88
Particulate matter (PM) µg/m (average)
3
31.09 41.4
Persistent organic pollutants (POP) - - -
Volatile organic compounds (VOC) µg/m3 5.12 4.65
Hazardous air pollutants (HAP) - - -
Others – please specify -Ammonia µg/m3 17.08 14.30

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Yes, ambient air quality analysis has been carried out by Re Sustainability Solutions Private Limited.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 1 emissions Metric tonnes of 3,80,676 3,82,670*
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 emissions Metric tonnes of 3,73,141 3,70,742
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 1 and Scope 2 emissions per rupee of turnover MT CO2e/ Rupees 0.94 0.84
(in lakhs)

*For FY 2021-22 total scope 1 emissions has been recalculated in line with general industrial practices with reference to
IPCC guidelines.

33rd Annual Report 2022-23 | 57

 Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Yes, Bureau Veritas India

7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

Yes, various initiatives are implemented to reduce the Green House Gas emissions (GHG).

Few key initiatives taken to reduce GHG emissions are:

• Recovering and re-using of heat energy from flash steam letting out to atmospheres
• Installing Oxygen (O2) analysers for process vessels to monitor and maintaining inert atmospheres in critical
process operations
• Radiator type heat exchanger of process air pre-cooler is replaced with plate-heat exchanger
• Replacing centrifuge and FBDs with ANFs
• Installing dry-claw vacuum pump system in place of regular ejector system
• Implementing Green Chemistry Principles
• Arranging table top pH meter at process areas.

8. Provide details related to waste management by the entity, in the following format:

Parameter FY 2022-23 FY 2021-22

Total Waste generated (in metric tonnes)
Plastic waste (A) 496.53 429.81
E-waste (B) 2.81 4.91
Bio-medical waste (C) 0.35 0.193
Construction and demolition waste (D) 4,469.36 2,586
Battery waste (E) 33.21 12.59
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 94,412.67 1,19,985.44
Other Non-hazardous waste generated (H). Please specify, if any.
(Break-up by composition i.e. by materials relevant to the sector) 20,071.60 27,345.12
Total (A+B + C + D + E + F + G+ H) 1,19,486.53 1,50,364.06
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in
metric tonnes)
Category of waste
(i) Recycled 28,505.94 49,160.41
(ii) Re-used 26,227.17 29,914.99
(iii) Other recovery operations 49,834.84 56,730.78
Total 1,04,567.95 1,35,806.18
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration 13.34 10.81
(ii) Landfilling 14,405.58 13,792.75
(iii) Other disposal operations 0 0
Total 14,418.92 13,803.56

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to
manage such wastes.

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 Corporate Overview Statutory Reports Financial Statements

The plastic waste (packaging and other type) generated from our operations is collected, segregated at source and sent to
authorised recyclers by following all applicable local regulations. E-waste generated from our operations is collected and
transferred to authorised recyclers/dismantling agencies by following all applicable local regulations. Hazardous & Other
Waste, most of the waste is Co-processed as alternative fuel instead of incineration which shall cutdown the incinerated ash
sent for Landfill. Organic/distillation bottom residues which possess calorific value are sent to cement industries as alternate
fuel in the kilns. Inorganic solid wastes are disposed to TSDF (An authorised Govt. secure land fill) and or to authorised re-
processor.

~85% of our hazardous waste is sent to cement industries and recyclers for co-processing and recycling. The remaining
~15% of hazardous waste is sent to landfilling and incineration. Other non-hazardous waste such as glass, MS scrap, wood
waste, boiler ash etc. is sent to recyclers, cement industries for co-processing or to brick manufacturers.

We treat all our waste as a value stream and 3R’s strategy is effectively implementing to reduce its impact on Environment.
We reduce waste through technological interventions and by implementing green chemistry principles. Ongoing initiatives
increasing usage time cycles, segregation of waste at point of generation, process optimisation, packaging optimisation/
changes in packaging types, multistage scrubbers etc. We have shifted to jumbo bags from small size packaging, getting RMs
in bulk tankers instead of in plastic drums.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/
clearances are required, please specify details in the following format:

The Company does not have any of its manufacturing facilities in ecologically sensitive areas.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current
financial year:

In the current financial year, no environmental impact assessments studies were undertaken.

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention
and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder
(Y/N). If not, provide details of all such non-compliances, in the following format:

Yes, we are compliant with the applicable environmental law/ regulations/ guidelines in India.

Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in the
following format:

Parameter FY 2022-23 FY 2021-22

From renewable sources
Total electricity consumption (A) 11,196 GJ 25,592 GJ
Total fuel consumption (B) 0 0
Energy consumption through other sources (C) 0 0
Total energy consumed from renewable sources (A+B+C) 11,196 GJ 25,592 GJ
From non-renewable sources
Total electricity consumption (D) 14,92,563 GJ 14,66,672 GJ
Total fuel consumption (E) 36,94,336 GJ 36,85,695 GJ
Energy consumption through other sources(F) 1,939 GJ 1,964 GJ
Total energy consumed from non-renewable sources (D+E+F) 51,88,838 GJ 51,54,331 GJ

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

33rd Annual Report 2022-23 | 59

2. Provide the following details related to water discharged:

Parameter FY 2022-23 FY 2021-22

Water discharge by destination and level of treatment (in kiloliters)
(i) To Surface water 0 0

- No treatment 0 0

- With treatment – please specify level of treatment 0 0

(ii) To Groundwater 0 0

- No treatment 0 0

- With treatment – please specify level of treatment 0 0

(iii) To Seawater 4,20,702 3,75,580

- No treatment 0 0

- With treatment – please specify level of treatment Treated to meet Treated to meet
the PCB discharge the PCB discharge
standards standards

(iv) Sent to third-parties 0 0

- No treatment 0 0

- With treatment – please specify level of treatment 0 0

(v) Others 0 0

- No treatment 0 0

- With treatment – please specify level of treatment 0 0

Total water discharged (in kiloliters) 4,20,702 3,75,580

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

Not Applicable. Our facilities are not located in areas of water stress.

4. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Considering the non-availability of auditable GHG emission data from most of our supply-chain related to purchased goods,
purchased capital goods and external waste disposal, Scope 3 emissions are not included in this year’s BRSR report.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

No.

5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of
significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.

Not applicable.

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency,
or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same as well as
outcome of such initiatives, as per the following format:

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 Corporate Overview Statutory Reports Financial Statements

Sr. Details of the initiative

Initiative undertaken Outcome of the initiative
No (Web-link, if any, may be provided along-with summary)
01 Reducing Carbon Few key initiatives, ~15,500 TCO2e emissions
Footprint • Recovering and re-using of heat energy from flash steam letting out to were reduced with the
atmospheres. initiatives taken during
• Installing Oxygen (O2) analysers for process vessels to have continuous monitor the reporting period.
and to maintain inert atmospheres in critical process operations.
• Radiator type heat exchanger of process air pre-cooler is replaced with plate-
heat exchanger
02 Water Management Few key initiatives, ~39,000 M3 of water
• Purifying and utilising equipment final wash water for cooling towers. was conserved with the
• Replacing wet ice used for reaction mass quenching with brine cooled chilled initiatives taken during
water. the reporting period
• Reusing of final wash/rinse water for initial wash/rinse in process steps
• Rainwater is harvested by facilitating rainwater harvesting pits around our non-
process facilities.
03 Energy Management Few key initiatives, ~1,58,71,000 KWH or
• Energy is conserved by recovering and re-using of steam released to 57,135 GJ of energy
atmosphere. was conserved with the
• Arranging pH meter at processing area, resulted in reducing the process time initiatives taken during
cycles. the reporting period
• Arranging O2 analysers for process vessels, benefited us in reducing the
nitrogen demand for equipment energisation.
04 Waste Management Few key initiatives, ~ 85 MT of waste is
• Implementing process improvements through Green Chemistry Principles reduced.
aided in improving recovery & reuse potential.
• Recycling of plastic containers, liners, metal containers and metal scrap.
• Established solvent recovery stations to recover and reuse solvents.
• Process solid residue sent by Divi’s is reused as fuel (Co-Incineration) in cement
industries

7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.

Yes, the Company has developed business continuity and disaster management plan. The plans are developed keeping in
view of various risks which could be mitigated/minimised. However, despite the plans and comprehensive standard operating
procedures (SOPs) for various situations, unforeseen events/risks may cause interruption to the Company’s operations. The
plans are aimed at continuing Company’s operations with the least possible interruptions.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.

No significant adverse impact to the environment were reported from the value chain of the entity.

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

Assessment of value chain partners has commenced and ~80% of our supply chain partners by volume have responded to
participate in our assessment.

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent:
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations.

The Company is associated with 9 trade and industry chambers/ associations.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to.

33rd Annual Report 2022-23 | 61

 S. Reach of trade and industry chambers/
Name of the trade and industry chambers/ associations
No. associations (State/National)
1. National Safety Council National
2. Indian chemical council National
3. Confederation of Indian industry National
4. Pharmaceuticals Export Promotion Council of India National
5. Bulk Drug Manufacturers Association National
6. National Fire Protection Association National
7. Swiss-India Chamber of Commerce International
8. American Industrial Hygiene Association (AIHA) International
9. Federation of Telangana and Andhra Pradesh Chambers of Commerce and State
Industry (FTACCI)

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based
on adverse orders from regulatory authorities.

Not Applicable

Leadership Indicators
1. Details of public policy positions advocated by the entity:

Not Applicable

PRINCIPLE 8 : Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.

Not Applicable

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity, in the following format:

Not Applicable

3. Describe the mechanisms to receive and redress grievances of the community.

A grievance redressal mechanism is in place consisting of CSR team members to receive and redress grievances of
the community.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 2022-23 FY 2021-22
Directly sourced from MSMEs/ small producers 20.1 % 14.9 %
Sourced directly from within the district and neighboring districts 8.8 % 8.1 %

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):

Not applicable

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified
by government bodies:

Amount Spent
S. No. State Aspirational District
(in ` lakhs)
1 Andhra Pradesh Visakhapatnam 1,075
2 Andhra Pradesh Vizianagaram 225

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 Corporate Overview Statutory Reports Financial Statements

3. a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalised /vulnerable groups? (Yes/No)

No

b) From which marginalised /vulnerable groups do you procure?

NA

c) What percentage of total procurement (by value) does it constitute?

NA

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current
financial year), based on traditional knowledge:

Intellectual Property based on traditional Basis of calculating

S.No. Owned/ Acquired (Yes/No) Benefit Shared (Yes/No)
knowledge benefit share
Not applicable Not applicable Not applicable Not applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein
usage of traditional knowledge is involved.

Name of Authority Brief of the Case Corrective Action Taken

Not applicable Not applicable Not applicable

6. Details of beneficiaries of CSR Projects:

No. of persons
S. No. CSR Project benefitted from % of beneficiaries from vulnerable and marginalised groups
CSR Projects
1 Safe Drinking Water 3,08,186 Our CSR initiatives are implemented with an objective to
2 Preventive Healthcare 1,73,834 reach out to the vulnerable and marginalised communities,
including persons with disabilities, elderly, women and
3 Village Development 1,02,715 children from the less privileged socio-economic sections of
4 Animal Welfare 95,000 the society.
5 Promoting Education 83,234
6 Environment Sustainability 60,100
7 Swachh Bharat 27,600
8 Promoting Rural Sports 5,001
9 Empowering Women 945
10 Support to Differently Abled 241
11 Livelihood Enhancement Projects 80

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

As Divi’s manufactures active pharmaceutical ingredients (APIs), API intermediates and supplies them to customers for further
manufacturing to make respective finished drug products, we have no direct consumers. Hence, consumer complaints are
not applicable to us. However, we have established procedures to receive customer complaints whether received in oral or
in writing and respond back to customers within agreed timelines. The customer complaints are concluded and closed upon
mutual agreement.

33rd Annual Report 2022-23 | 63

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

As a percentage to total turnover

Environmental and social parameters relevant to The Company complies with all the regulatory requirements in relation to the display of
the product information on product label.
Safe and responsible usage
Recycling and/ or safe disposal

3. Number of consumer complaints in respect of the following:

FY 2022-23 FY 2021-22
Pending Remarks Pending Remarks
Received Received
resolution at resolution at
during the year during the year
end of year end of year
Data privacy 0 0 - 0 0 -
Advertising 0 0 - 0 0 -
Cyber-security 0 0 - 0 0 -
Delivery of essential services 0 0 - 0 0 -
Restrictive Trade Practices 0 0 - 0 0 -
Unfair Trade Practices 0 0 - 0 0 -
Other 0 0 - 0 0 -

4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall

Voluntary recalls Nil Not applicable
Forced recalls Nil Not applicable

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a
web-link of the policy.

Yes, we are following a set of Information Security Policies which are aligned to ISO 24001.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty/action taken
by regulatory authorities on safety of products/services.

Not applicable as no product recalls for the above stated reasons and hence no corrective actions taken for above stated
reasons on safety of products/services.

Leadership Indicators
1. Channels/platforms where information on products and services of the entity can be accessed (provide web link, if available).

The information on products and services of the Company can be accessed from website of the Company at https://www.
divislabs.com/

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

As Divi’s manufactures active pharmaceutical ingredients (APIs), API intermediates and supplies to customers for further
manufacturing to make respective finished drug products, we have no direct consumers. However, Storage and handling
conditions/measures are displayed on the labels of each material container shipped to our customers.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

64
 Corporate Overview Statutory Reports Financial Statements

As Divi’s manufactures active pharmaceutical ingredients (APIs), API intermediates and supplies to customers for further
manufacturing to make respective finished drug products, we have no direct consumers. However, we keep our customers
informed of any risk of disruption/discontinuation of supplies in a prompt manner as agreed with them.

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not
Applicable) If yes, provide details in brief.

Yes, product information displayed on the label of product container like name of product and grade (USP/EP/BP/IP), unique
batch number, date of manufacture & retest date, quantity, manufacturing site address and license details, storage and
handling conditions/precautions, approved by sign from quality department.

Did your entity carry out any survey with regard to consumer satisfaction relating to the major products/services of the
entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)

Yes, the Company has a mechanism to survey the customer satisfaction level for all its products/services.

5. Provide the following information relating to data breaches:

a) Number of instances of data breaches along-with impact: Nil

b) Percentage of data breaches involving personally identifiable information of customers: 0

33rd Annual Report 2022-23 | 65

Management Discussion and Analysis

1. Economy and Industry Outlook the Indian pharmaceutical industry is estimated to achieve
a 6-8% revenue growth in the coming years, supported by
Global Pharma Industry Outlook & Emerging Trends:
robust growth in domestic and emerging markets.
As the world moves forward, the global pharmaceutical
industry is poised for positive changes as expired patents Factors such as an aging population, an upsurge in
pave the way for increased utilisation of generic drugs. lifestyle diseases, demographic shifts, and new product
introductions are expected to fuel the growing market
According to the IMF in January 2023, the global medicine demands. The coming years are likely to open doors of
market is expected to reach USD 1.9 tn by 2027, with a innovation opportunities and growth avenues for the
projected CAGR of 3-6%. Indian pharma industry.
According to IQVIA, growth in the industry will be primarily The industry’s strategic focus revolves around quality
fuelled by oncology, immunology, anti-diabetics, and manufacturing, drug affordability, innovation, and
obesity drugs. Oncology leads the way, with a 10-year technological adoption, in addition to the harmonisation
CAGR of 15.3%, and is expected to grow by 13-16% CAGR, of regulatory requirements with global standards. As per
reaching USD 370 bn by 2027, supported by the launch of a recent EY FICCI report, government initiatives, including
innovative cancer treatments. PLI 2.0, MSME support, and pharma clusters, along with
Going forward, the rising prevalence of chronic diseases industry-academia collaborative efforts, are expected
is expected to boost growth in the small molecule drug to act as significant catalysts for growth. Furthermore,
discovery market. Noteworthy advancements in small the Indian pharma industry is committed to meeting
molecule innovations are anticipated, particularly in the sustainability objectives and is investing in infrastructure
fields of oncology and neurology. IQVIA also predicted for rapid drug discovery and development capabilities to
loss of exclusivity (LOE) to have a significant impact with sustain its growth trajectory.
the U.S. alone expected to face LOE of USD 141 bn by Company Overview:
2027, compared to USD 49 bn in the previous five years.
Divi’s Laboratories Limited is a prominent manufacturer and
Small molecule expiries are estimated to decrease brand
supplier of High-Quality APIs, and intermediates for global
spending by USD 98 bn by 2027, more than double the
innovator companies. We have established ourselves as a
impact of the preceding five years, including the impact of
reliable partner to several of the world’s leading pharma
high-profile products in the anticoagulants therapy area.
companies, including 12 of the top 20 Big Pharma.
The impact of LOE in the five largest European markets
(Germany, France, Italy, Spain, and the UK) are expected to With a presence in over 100 countries, our Generic APIs
triple over the next five years. division has been instrumental in our overall success and
positioned us as the world’s largest API manufacturer in
While advanced economies may experience a greater
10 of the 30 generic APIs we manufacture. Our product
deceleration, developing markets such as Asia-Pacific, Latin
portfolio includes a diverse range of APIs used in the
America, India, and Africa-Middle East are expected to
manufacture of drugs for therapeutic areas such as
exhibit significant volume growth in medicine consumption.
cardiovascular, anti-inflammatory, anti-cancer, and central
North America, Western Europe, and Japan may witness
nervous system drugs.
slower growth due to existing higher per capita usage.
Our Nutraceutical Facility at our Unit II manufacturing site is
Indian pharma industry:
an integrated facility for manufacturing active ingredients,
The Indian pharmaceutical industry is on a transformative finished forms of Carotenoids, Lutein, and Vitamins. We are
journey of reinvention and innovation to emerge as a leader the primary supplier of carotenoids to several major food,
in value. The Indian Economic Survey of 2021 reported that dietary supplement, and feed manufacturers worldwide.
the Indian domestic pharmaceutical market had reached
a value of USD 42 bn in 2021, and it is projected to surge Divi’s is headquartered in Hyderabad, India, and operates
further to reach USD 65 bn by 2024. Looking ahead, the 2 manufacturing units equipped with state-of-the-art
India Brand Equity Foundation (IBEF) envisions remarkable utilities, environment management, and safety systems.
growth, estimating a CAGR of 15%, which could propel the Furthermore, we are currently in the process of developing
domestic market to reach USD 130 bn by 2030. an additional site, which is scheduled to commence
operations next year.
Although pricing pressures in the US and European markets
may lead to a slight contraction of operating profit margin,

66
 Corporate Overview Statutory Reports Financial Statements

We have been consistently recognised for our excellence in All these Units have been adding production capacities and
quality, research and development, and occupational health utility infrastructure and are upgraded and modernised
and safety. from time to time.

In line with our commitment to sustainability, we continuously

2.2 Research Centers
strive to expand our production capacity while maintaining
compliance with environmental and safety regulations, as well The Company has Research Centers called as DRC at
as upholding our social responsibility initiatives. Sanath Nagar, Hyderabad and Process Development &
Support Centres (PDSCs) at the manufacturing sites. These
2.1 Manufacturing Facilities: centers are involved in development of processes for
both new compounds and improvement of processes for

The Company operates at two manufacturing
compounds on the market.
locations:
• Unit- I, located at village Lingojigudem in Yadadri PDSCs work on process development and scale up from
Bhuvanagiri District near Hyderabad comprises: gram scale further through various stages of development,
process optimisation, impurity profile, pilot studies, pre-
− the first manufacturing facility operating from validation batches, validation of process and transfer of
the year 1995. technology to Plant. PDSCs also review improvement of
− the DC-SEZ Unit operating from the year 2020. processes and gives process support to the Plants from
time to time.
• Unit-II, located at village Chippada, Bheemunipatnam
Mandal, Visakhapatnam District, Andhra Pradesh 2.3 Subsidiaries
State comprises:
The Company has two subsidiaries M/s. Divis Laboratories
− An Export Oriented Unit operating from the (USA) Inc., in the United States of America and M/s. Divi’s
year 2003. Laboratories Europe AG in Switzerland for marketing its
− An SEZ Unit operating from the year 2006. nutraceutical products and to provide a greater reach to
customers within these regions.
− DSN SEZ Unit operating from the year 2011.

− the DCV SEZ Unit operating from the year 2020.

Europe
41% Asia
14%
India
America 12%
29%
Delhi

Mumbai

Rest of
the World
4% Manufacturing Unit II
Corporate Office
Vishakhapatnam (Vizag)
Hyderabad
700km from Hyderabad
Manufacturing Unit I
Choutuppal, Manufacturing Unit III
65km from Hyderabad
Kakinada,
150km south of Unit II

Map not to scale.

33rd Annual Report 2022-23 | 67

3. Internal Control Systems organisational values while managing or mitigating risks
that can adversely impact its future performance through:
The Company has an adequate system of internal controls
commensurate with the nature, size and complexity of its • Integrated process for identification, assessment
manufacturing, finance and marketing operations including and reporting;
controls over financial reporting.
• Decentralised management of specific
The company has adopted well laid down processes and opportunities and risks; and
procedures, encapsulating all its operations, financial and
• Aggregation at corporate level monitored by the
compliance functions, for efficient and orderly conduct of its
Risk Management Committee with the overall
business, adherence to the Company Policies, safeguarding
direction and control by the Board.
its assets, prevention and detection of frauds and errors,
accuracy and completeness of the accounting records The Company continues its initiatives aimed at assessment
and timely preparation of reliable financial information and avoidance or minimisation of various risks affecting its
and compliance with applicable statutes and rules and business and towards cost control and efficiency across its
regulations thereunder. businesses and functions, taking appropriate measures
and reviewing them from time to time. The company’s risk
Appropriate review and control mechanisms are in place
management and control procedures involve prioritisation
for ensuring the internal control systems are operating
and continuous assessment of these risks and devise
effectively. The internal control system is supported
appropriate controls, evaluating and reviewing the control
by qualified personnel and a continuous programme of
mechanism and redesigning from time to time in the light
internal audit. The prime objective of such audits is to
of its effectiveness.
test the adequacy and effectiveness of all internal control
systems laid down by the management and to suggest 4.1 Global Markets
improvements, robustness of internal processes, policies 
Divi’s is engaged in manufacture of generic
and accounting procedures, compliance with laws and APIs, custom synthesis of active ingredients for
regulations. For this purpose, a yearly audit plan will be innovator companies, other specialty chemicals and
made with the approval of the Audit Committee of the nutraceuticals. The Company is very selective in its
Board of Directors. product portfolio with a focus on export markets
The internal audit function, reports directly to the Audit within the domain of its capabilities. As the Company
Committee, maintaining independence and objectivity in has significant exposure to export markets and hence
its function. Based on the reports of internal audit function, may have impact due to global economy or changing
respective process owners carryout corrective action in dynamics in the supply-chain of its products in the
their areas. The Audit Committee reviews the significant global markets besides any protective actions by
audit observations and status of rectification measures governments of recipient countries.
thereon regularly. 4.2 Competition
The Audit committee also reviews internal controls over In order to stay competitive vis-a-vis its peers in
financial reporting and ascertain with the statutory Europe and US, the Company lays great stress
auditors about its adequacy and effective operation. on leveraging its inherent skills and strengths in
Based on its review and report of the statutory auditors, chemistry by building strong customer relationships
the internal financial controls during the year are adequate supported by cost competitive and fast delivery
and operating effectively. The Company also encourages structure. However, competition is inherent in the
and recognises improvements in work practices. The business of the Company as there are constant efforts
Management duly considers and takes appropriate action in process innovation and cost competitiveness. Divi’s
on the recommendations made by the internal auditors, continues to work towards optimising its processes
statutory auditors, and the Audit Committee. and upgrading its plant capacities and capabilities
at its multi-purpose manufacturing facilities to stay
4. Risk Management competitive and compliant to regulations; and is
also creating additional capacities addressing the
Divi’s lays emphasis on risk management and has an
anticipated or increasing business opportunities.
enterprise-wide approach to risk management, which lays
This would enable the Company minimise risks/
emphasis on identifying and managing key operational and
threats and avail the opportunities that emerge for
strategic risks with a dynamic business continuity plan. The
business growth.
Company strives to identify opportunities that enhance

68
 Corporate Overview Statutory Reports Financial Statements

4.3 Regulatory and Quality Compliances systems and processes and takes adequate measures
The Company devotes significant importance to to address these risks or meet its obligations.
the regulatory compliances as it accesses advanced The Company has significant exports, besides imports
markets like Europe and USA for a major part of its of inputs and hence has a large exposure to exchange
business. Risks relating to regulatory compliances to rate risks. Given the instability in the global, political
such markets are inherent to the Company’s business. and economic environment and bilateral trade issues,
Divi’s has put in place appropriate systems, processes, there has been significant volatility of foreign currency
operations and procedures to monitor and ensure rates. Such events are outside the control or horizon
consistent practice for the evolving compliance of Indian companies and it is becoming very difficult
regime for market access to the recipient countries to accurately predict currency movements. In the
of its products and specifications. The chemists long run, we realise the best way to manage currency
and staff are periodically retrained so that they are fluctuations is to have a better geographic balance
fully aware of the latest regulations, quality testing, in revenue mix factoring Company’s competitive
standard operating procedures and norms. Divi’s has positioning, and to ensure a foreign currency match
invested in extensive training to incorporate the cGMP between liabilities and earnings.
updates into its operating systems. The Company
constantly reviews its policies and procedures The Company constantly reviews and aligns its
to adhere conformity of the various global and policies and takes appropriate decisions to minimise
domestic regulations for its manufacturing facilities or the commercial and financial risks.
statutory compliances. 4.7 Insurance
4.4 Patent Compliance The Company’s current and fixed assets as well as
From the inception of its manufacturing operations, products are adequately insured against various risks
the Company has its stated policy of conforming to like transit, fire and allied risks, public and product
intellectual property rights (IPR) and does not violate liability, personnel, directors & officers’ liability etc.
patents. The Company manufactures either patent- 4.8 Environment, Health and Safety
expired generics or undertakes custom synthesis
As the Company’s manufacturing operations involve
of compounds for the innovator MNC companies.
complex chemical reactions, risks exist on any
Divi’s continually reviews patent compliance in its
issues relating to safe operations and environment
process development of active ingredients and has a
compliances. Divi’s policies and processes are
monitoring mechanism to validate non-infringement
designed and reviewed from time to time to adhere
of the processes developed.
to all applicable regulations on the environment
4.5 Human Resources management, employee health and safety. Divi’s
We consider employees as an integral part of continually strives to optimise the resources and
our operations and we put in place appropriate upgrade its processes in order to reduce the
compensation plans, feedback process, continuing environmental impact of its processes, products
training and upgradation of skills in their functional and services, besides ensuring health and safety of
areas. Employee relations are affable and harmonious employees involved in the processes.
with safe and healthy working environment and all- 4.9 Information Technology (IT)
round contribution and participation in the growth.
The Company has put in place an IT policy in order
4.6 Commercial and Financial Risks to ensure consistency, protection and security of
With predominance of its exports, the Company data and IT systems to ensure smooth business
is exposed to a wide spectrum of risks relating to processes. The systems used for information security
markets, legal disputes relating to contracts, various are constantly tested, continuously updated and
statutory compliances, credit from suppliers or to expanded. In addition, our employees are regularly
customers or from banks/lenders, interest rates, trained on data protection and safety including
liquidity as well as foreign exchange rate volatility, secure online banking transactions. IT-related risk
continuity in supply of raw materials and prices or of management exercise is conducted using appropriate
any sudden changes relating to trade and regulations protocols and tools.
by countries where company does business; and The Company has implemented EDR (Extended
addresses these appropriately to mitigate or minimise Detection and Response), end point and server
these risks. The Company constantly reviews its

33rd Annual Report 2022-23 | 69

 protection, automated prevention and detection The Company operates predominantly in export markets
solutions, including Perimeter security controls with and has a broad product portfolio under generics and
web security tools, enhanced internal vulnerability custom synthesis. Among Divi’s well distributed product
detection and multiple network segmentations range, some of the components of the business are
based on business criticality. The internal team given below:
regularly performs VAPT scan which is also reviewed
Particulars 2022-23 2021-22
by external consultants. Implemented absolute zero
trust security architecture. Exports 88% 90%
Imports 45% 46%
4.10 Business Continuity Top 5 Products 46% 60%
The Company has appropriate strategies for business Top 5 Customers 41% 54%
continuity for addressing disruptive events, of Exports in $ terms 86% 88%
various nature, on business operations and has Exports in Pounds 9% 7%
set up a comprehensive and proactive framework Exports in Euro 5% 5%
to mitigate such disruptive events by deploying
available alternative solutions; and reduce their
7. Performance and Operations Review
potential damages.
Analysis of profitability (on a standalone basis) for the
4.11 Sustainable Operations
current and the last financial years is given hereunder:
As part of our efforts towards sustainable business
operations, we assess the opportunities and risks (C in lakhs)
associated with sustainable sourcing/utilisation of Particulars 2022-23 2021-22
resources and manufacturing activity; and continually Revenue from operations 7,62,530 8,87,982
evaluate alternatives and implement optimum Other Income 34,901 11,126
processes for sustainable and safe operations Total Income 7,97,431 8,99,108
in order to minimise, mitigate or de-risk our Expenditure before 5,27,762 5,00,336
business operations. Depreciation & Finance
Cost
5. Regulatory Filings/Approvals PBDIT 2,69,669 3,98,772
Finance Cost 52 65
Divi’s has triple certifications ISO-9001 (Quality Systems),
Depreciation 34,207 31,055
ISO- 14001 (Environment Management Systems) and ISO
Profit before Tax (PBT) 2,35,410 3,67,652
45001 (Occupational Health and Safety systems) for its
manufacturing facilities and adheres to cGMP and standard Tax expense:
operating practices in its manufacturing/operating Current Tax 43,758 63,720
activities and these certifications are renewed from time Deferred Tax 10,837 9,078
to time. Profit after Tax (PAT) 1,80,815 2,94,854
Other Comprehensive 233 218
The Company has also obtained Food Safety System Income (net of tax)
Certification (FSSC) 22000 for vitamins and carotenoids, Total Comprehensive 1,81,048 2,95,072
GMP+B2 certification for production of Feed Ingredients. Income
All the manufacturing sites are periodically inspected by Earnings per Share (EPS) 68.11 111.07
US-FDA, EU and other agencies. Basic & Diluted (C)

Divi’s has a total of 40 drug master files (DMFs) with US- During the last year (FY 2021-22), the Company had a
FDA, 26 CoSs (Certificates of Suitability) filed with EDQM, 26 great opportunity to quickly develop process, gear-up and
DMFs with Health Canada and 7 DMFs with PMDA, Japan mobilise its capital infrastructure, create capacities and
and several filings at various other agencies. Divi’s has filed produce large volumes of a product for covid-19 infection
for a total of 41 patents for generic products. for an MNC customer, which helped in treatment of people
infected with covid-19 virus. It is a great relief that the
6. Business Distribution pandemic has since abated and people across the world
are breathing normal activity. As a result, our supplies of
Our product portfolio comprises of two broad categories i)
the product for covid-19 have also substantially reduced
Generic APIs (Active Pharma Ingredients) and Nutraceuticals
during the year under review.
and ii) Custom Synthesis of APIs and specialty ingredients
for innovator pharma giants. As the restrictions on movement of people has since
eased and the over-stocking of inventories at different

70
 Corporate Overview Statutory Reports Financial Statements

levels of some of the lifestyle medicines has also reduced, miscellaneous income. Other Income for the year
we are seeing growth of our normal business portfolio. amounted to C34,901 lakhs as against C11,126
lakhs last year. This year, we have a gain on forex
This financial year, the company has earned a total income
transactions & translations amounting to C13,402
of C7,97,431 lakhs, which is about 11% lower than the
lakhs against a gain of C3,798 lakhs last year.
previous financial year. As stated above, due to significant
change in the product-mix, our net material consumption 7.4 Distribution of Total Income
as a percentage of revenue for the year is about 40%,
while it was about 34% during the last financial year. Our
Profit before tax for the year accounted to C2,35,410 lakhs,
which is significantly lower than the previous year.
23%
Tax expense for the year amounted to C54,595 lakhs as
against a tax expense of C72,798 lakhs. Effective tax rate
for the year has increased over the last year due to the
changes in product mix and the resultant profitability 37%
across the company’s manufacturing units.
0%
Profit after tax for the year amounted to C1,80,815 lakhs
as against C2,94,854 lakhs during the previous year. 7%

7.1 Exports
Exports constituted 88% of sales revenue during 16%
the year. Exports to advanced markets comprising
Europe and America accounted for 70% of business. 4% 1%
12%
7.2 Region-wise Sales Revenue
0%
Our revenue from products and services region-wise
is given below: Cost of raw materials consumed 37% | Changes in
inventories of finished goods and work-in-progress 1%
(C in lakhs)
Employee benefits expenses 12% | Finance Cost 0% |
Depreciation and amortisation expenses 4%|
2022-23 2021-22 Other Expenses 16% | Income Tax Expense 7% |
Particulars Sales Sales Other Comprehensive Income 0% |
% Share % Share
revenue revenue Total Comprehensive Income for the year 23%
Asia 1,03,931 13.8% 79,807 9.2%
7.5 Material Costs
Europe 3,05,977 40.7% 2,86,480 32.8%
(C in lakhs)
North America 2,20,140 29.3% 3,83,291 44.0%
Particulars FY 2022-23 FY 2021-22
Rest of the World 34,923 4.6% 34,620 4.0%
(ROW) Material consumption 2,97,949 3,43,979
India 87,402 11.6% 877,24 10.0% Changes in inventories of 5,016 (44,999)
Total 7,52,373 100.0% 8,71,922 100.0% finished goods and work-in-
progress

INDIA Net Material Consumption 3,02,965 2,98,980

11.6% ASIA Revenue from Operations 7,62,530 8,87,982
13.8% including other operating
ROW
revenue
4.6%
% of consumption to 39.7% 33.7%
Revenue


Material consumption varies from product to
product. The Company manufactures several active
pharmaceutical ingredients and intermediates
NORTH
EUROPE
within the Generic and Customs synthesis groups as
AMERICA well as nutraceuticals. Manufacture of any product
40.7%
29.3%
involves stage-wise controlled processing through its
chemistry to the specifications under the standard
7.3 Other Income operating practices complying to cGMP conditions.

Other Income mainly comprises of interest
on deposits, gain on forex transactions and

33rd Annual Report 2022-23 | 71

  
Material consumption net of increase/decrease in been received for refunds claimed in earlier years,
stocks is about 39.7%of revenue from operations such amounts have been classified as non-current.
during the year as compared to 33.7% during the last
7.11 Other Non-current Assets
year. Increase in net material consumption during
the year is due to significant change in product mix. These are mainly advances for capex programs and
other receivables being indirect tax refund claims.
7.6 Employee Benefits Expense
7.12 Inventory position
 Employee benefits expense represent salaries and
benefits to employees as also fixed and variable Inventory position for the last two years is as under:
managerial remuneration of Whole-time Directors as (C in lakhs)
approved by the Members. As on As on
Particulars
March 31, 2023 March 31, 2022
 Expenses for the year amounted to C95,305 lakhs
Raw Materials 94,562 75,476
as against C92,655 lakhs during the last year. Of this,
Work-in-Progress 1,52,571 1,53,159
remuneration to Whole-time Directors accounted
Finished Goods 11,009 15,437
to C15,737 lakhs during the year as against C24,300
lakhs last year. Packing Materials 936 916
Stores and Spares 18,967 19,417
 Employee cost for the year works out to about 12.5% Total 2,78,045 2,64,405
of total revenue from operations.
The Company undertakes campaign production
7.7 Other Expenses
of large volume products like Naproxen,
Major items of Other Expenses are Power and Dextromethorphan and Gabapentin by running the
Fuel, Repairs, Stores & Spares, Packing Materials, plant at full stream and stock these products for sale
R&D Expenses, Carriage Outward, Travelling & – thus freeing the multi-purpose plants for producing
Conveyance, Sales Commission, Environment other products; and hence carries significant volume
Management Expenses and CSR Expenses. of work-in-progress to be able to service the large
Other Expenses for the year accounted for C1,29,492 volume products. As the company has a good
lakhs as against C1,08,701 lakhs during the last year. market share for these products, we do not foresee
Increase in Other expenses mainly relate to increase any constraints in marketing these products and
in power and fuel costs, repairs, travel, R&D expenses managing the inventory cycle. We also augmented
and CSR Expenses. stock of raw materials to avoid any supply disruptions
and ensure continued operations. Slow moving and
Other Expenses account for 17% of total revenue non-moving items have been fully provided for.
from operations.
7.13 Trade Receivables
7.8 Capital Expenditure (C in lakhs)
 During the year, we have capitalised Property, Plant As on As on
Particulars
and Equipment (PPE) and Intangible Assets valuing March 31, 2023 March 31, 2022
C74,140 lakhs. Capital WIP as at the year-end Outstanding Receivables 1,96,502 2,57,062
amounted to C21,188 lakhs. Less: Allowances for 72 72
doubtful debts
 A major part of the capitalisation is in the DC and DCV
Net Receivables 1,96,430 2,56,990
SEZs, besides capacity expansion, plant upgradation
Average receivable days 94 106
and augmenting the utility/support infrastructure at
the other manufacturing facilities. Trade Receivables at the year end came to C1,96,430
lakhs as against C2,56,990 lakhs last year. Trade
7.9 Non-current Investments:
Receivables include an amount of C29,238 lakhs due
Non-current Investments as at the end of the current from subsidiaries.
year amounted to C8,441 lakhs as against C7,937
lakhs as at the end of the last year. 7.14 Other Financial Assets

7.10 Income-tax assets These comprise security and other deposits and
receivables on export incentives and insurance
Income-tax assets net of provisions, refunds and
claims and are in the normal course of business.
adjustments, represent the amounts paid pending
assessments and refund. Where orders have not

72
 Corporate Overview Statutory Reports Financial Statements

7.15 Other Current Assets March 31, March 31,

Particulars Change
2023 2022
(C in lakhs)
Current ratio 8.56 7.10 20.56%
As on As on
Particulars
March 31, 2023 March 31, 2022 Debt Equity ratio * 0.00 0.00 -
Indirect Taxes- Input Tax 13,764 10,054 Operating profit 35.37% 44.91% (21.24%)
Credits margin (%)
Prepaid Expenses 2,644 2,676 Net profit margin 22.67% 32.79% (30.86%)**
Advances to suppliers 3,381 8,722 (%)

Other receivables 131 129 * There is no debt outstanding as on March 31, 2023.
Total 19,920 21,581 ** Due to significant change in product mix in the current
year as explained at para 7.0 above, the profits and
The assets are monitored and reviewed periodically. margins during the current year have substantially reduced
when compared to the previous year. This has resulted in
7.16 Deferred Tax Liabilities variation in these ratios.

Deferred tax liabilities represent temporary
Detailed Explanation of Ratios:
differences arising between the tax base of assets
using the liability method, liability on account of (i) Return on Net Worth/ (Equity)
obligations for SEZ Units under the Income-tax Act Return on Net Worth/(Equity) is a measure of
as also of employee benefit obligations. Deferred tax profitability generated to Equity holders. It is
liability as of March 31, 2023 amounted to C53,721 calculated by dividing the Net profit after tax
lakhs as against C42,140 lakhs as of March 31, 2022. for the year with Average Shareholder’s equity
during the year.
7.17 Trade Payables
Trade Payables for raw materials/services amounted (ii) Return on Capital Employed
to C74,264 lakhs as at the end of the year as against  
Return on Capital Employed is a ratio that
C77,130 lakhs as at the end of last year. Of the trade measures the efficiency of the Company
payables, an amount of C3,749 lakhs relates to dues with which its capital is being employed. In
to micro and small enterprises. Company follows other words, the ratio indicates the ability of
consistent practices of procurement and avails the Company to generate returns for both
efficient credit terms from vendors. equity and debt holders. It is calculated by
dividing net operating profit (EBIT) by average
7.18 Other Financial and Current Liabilities
capital employed i.e, Tangible networth+total
Capital Creditors at the year end amounted to C3,669 debt+deferred tax liability.
lakhs as against C5,543 lakhs as on March 31, 2022.
Aggregate amount of other Financial Liabilities (iii) Basic EPS
including capital credits as at end of the year Earnings Per Share is the portion of a Company’s
amounted to C4,339 lakhs as against C6,289 lakhs as profit allocated to each share. It serves as
at the end of last year. an indicator of a Company’s profitability. It is
calculated by dividing the profit after tax for
Other Current liabilities for the current year amounted
the year by weighted average number of shares
to C28,742 lakhs as against C33,006 lakhs as at the
outstanding during the year.
end of the last year. All obligations are discharged as
per the terms agreed with the Vendors. Employee (iv) Debtors Turnover
remuneration and all statutory dues are paid well This ratio is used to quantify a Company’s
within the due dates. effectiveness in collecting its receivables or
7.19 Key Financial Ratios money owed by customers. The ratio shows
how well a Company uses and manages the
March 31, March 31,
Particulars
2023 2022
Change credit it extends to customers and how quickly
that short-term debt is collected. It is calculated
Return on Net 14.82% 28.13% 47.32
Worth/Equity (%) by dividing the Total Revenue from Operations
Return on Capital 18.57% 33.85% (45.14%)** by average trade receivables.
Employed (%)
(v) Inventory Turnover
Basic EPS (C) 68.11 111.07 (38.68%)**
Inventory Turnover is the number of times a
Debtors Turnover 3.36 4.09 17.85%
Company sells and replaces its inventory during
Inventory Turnover 2.80 3.76 25.53%

33rd Annual Report 2022-23 | 73

 a period. It is calculated by dividing the Revenue (ix) Net Profit Margin
from sale of goods by average inventory. The net profit margin is equal to how much net
(vi) Current Ratio income or profit is generated as a percentage
of total revenue. It is calculated by dividing the
The Current Ratio is a liquidity ratio that
profit after tax for the year by total revenue for
measures a Company’s ability to pay short-
the year.
term obligations or those due within one year.
It is calculated by dividing the current assets by 7.21 Cautionary Statement
current liabilities. This report may contain certain statements that
(vii) Debt Equity Ratio the Company believes are or may be considered to
be ‘forward looking statements’ which are subject
The ratio is used to evaluate a Company’s
to certain risks and uncertainties. These estimates
financial leverage. It is a measure of the degree
and Judgements relating to the financial statements
to which a Company is financing its operations
have been made on a prudent and reasonable
through debt versus wholly owned funds.
basis, in order that the statements reflect, in a true
It is calculated by dividing a Company’s net
and fair manner, the state of affairs and profits for
borrowings by its shareholder’s equity.
the year. Actual results may differ materially from
(viii) Operating Profit Margin those expressed or implied. Significant factors that
Operating Profit Margin is a profitability or could influence the Company’s operations include
performance ratio used to calculate the government regulations, tax regimes, market access
percentage of profit a Company produces related regulatory compliances, patent laws and
from its operations. It is calculated by dividing domestic and international fiscal policies.
the Operating Profit (PBDIT) by Revenue from
Operations.

74
 Corporate Overview Statutory Reports Financial Statements

Corporate Governance Report

Report, in line with the requirements of Regulation 34(3) read 2.1 Composition and Category
with Schedule V of the SEBI (Listing Obligations and Disclosure  
The Board of the Company has a diverse mix
Requirements) Regulations, 2015 (“SEBI Listing Regulations”), of Executive and Non-Executive Directors. The
on Corporate Governance practices and other voluntary Company appointed a Non-Executive Independent
compliances followed by the Company: Director as Chairman of the Board of Directors.

1. Company’s Philosophy on Corporate  The Board comprises of twelve directors, five

Governance of whom are Executive and remaining are Non-
executive Independent Directors, including two
Corporate Governance is the set of processes, customs, Woman Directors of which one is Non-executive
policies, laws and institutions affecting the way a company Independent Director. The brief profiles of Directors
is directed, administered or controlled. It is a system of are available at https://www.divislabs.com/api-
structuring, operating and controlling a company with manufac turing- company/leadership1/#board-
a view to achieve long-term strategic goals to satisfy of-directors. The composition of the Board is in
shareholders, creditors, employees, customers, vendors conformity with Regulation 17 of the SEBI Listing
and other stakeholders. Regulations read with Section 149 of the Companies
Corporate governance is based on principles such as Act, 2013 (“the Act”). The category of directors as on
conducting the business with all integrity and fairness, March 31, 2023 is as follows:
being transparent with regard to all transactions, making Name of the
all the necessary disclosures and decisions, complying with Designation Category
Director
all the laws of the land, accountability and responsibility Dr. Ramesh B. V. Non-Executive Non-executive
towards the stakeholders and commitment to conduct Nimmagadda Chairman, Director Independent
business in an ethical manner. Director
Dr. Murali K. Divi Managing Director Promoter and
Your Company adheres to the principles of corporate Executive Director
governance and commits itself to accountability and Mr. N. V. Ramana Executive Director Executive Director
fiduciary duty in the implementation of guidelines and Dr. Kiran S. Divi Whole-Time Executive Director
mechanisms to ensure its corporate responsibility to the Director and Chief
members and other stakeholders. Executive Officer
Mr. Madhusudana Whole-Time Executive Director
Further your Company complies with the requirements Rao Divi Director (Projects)
stipulated under Regulations 17 to 27, clauses (b) to (i) of Ms. Nilima Prasad Whole-Time Executive Director
Regulations 46(2) and para C, D and E of Schedule V of SEBI Divi Director
Listing Regulations. (Commercial)
Dr. G. Suresh Director Non-executive
2. Board of Directors Kumar Independent
Director
The Board of Directors is the highest governance body Mr. R. Ranga Rao Director Non-executive
constituted to oversee the Company’s overall functioning. Independent
Director
The responsibility of Board is to provide strategic guidance
to the Company, to ensure effective monitoring of the Mr. K. V. K. Director Non-executive
Seshavataram Independent
management and to be accountable to the Company and Director
the shareholders. The meetings of the Board of Directors
Dr. S. Ganapaty Director Non-executive
are held generally at Company’s Registered Office at Independent
Hyderabad, and are scheduled well in advance. In case of Director
business exigencies or urgency of matters, resolutions are Prof. Sunaina Director Non-executive
passed by circulation. Information relating to the business, Singh Independent
Director
operations and risks affecting the Company is regularly
placed before the Board for its consideration apart from Mr. K.V. Chowdary Director Non-executive
Independent
information as mentioned in Part A of Schedule II of SEBI Director
Listing Regulations. The Board regularly reviews the
compliance reports of all laws applicable to the Company.

33rd Annual Report 2022-23 | 75

 2.2 Number & Dates of Board Meetings held during Name of the No. of Board Meetings Attendance
the year Director Held Attended at last AGM

The Board meets in executive session at least Ms. Nilima Prasad 4 4 Yes
four times in a year at quarterly intervals and Divi
more frequently if deemed necessary, to transact Dr. G. Suresh 4 4 Yes
Kumar
its business.
Mr. R. Ranga Rao 4 4 Yes
 
Four Board Meetings were held during the year Mr. K. V. K. 4 4 Yes
under review and the gap between two meetings did Seshavataram
not exceed one hundred and twenty days. Dr. S. Ganapaty 4 4 Yes

 
The said meetings were held on May 23, 2022, Prof. Sunaina Singh 4 3 Yes
August 12, 2022, November 07, 2022 and February Mr. K.V. Chowdary 4 3 Yes
03, 2023. The necessary quorum was present for all 2.4 Other directorships
the meetings.
None of the Directors on the Board:
2.3 Attendance of directors
• holds directorships in more than ten
Directors’ attendance at the Board and Annual public companies;
General Meeting (“AGM”) held during the financial
year 2022-23 is as follows: • serves as Director or as Independent Directors
(“ID”) in more than seven listed entities;
Name of the No. of Board Meetings Attendance
Director at last AGM • holds more than 10 board committee
Held Attended
memberships or 5 board committee
Dr. Ramesh B. V. 4 4 Yes
Nimmagadda chairmanships; and
Dr. Murali K. Divi 4 4 Yes • who are the Executive Directors serves as IDs
Mr. N. V. Ramana 4 4 Yes in more than three listed entities.
Mr. Madhusudana 4 4 Yes
Rao Divi Name of other listed entities in which the Director
Dr. Kiran S. Divi 4 4 Yes
is a director, number of other Directorships and
Chairmanship/ Membership of Committees held by
each Director in various companies is as follows:

No. of other Directorships in No. of Committee positions in

other public companies* other public companies** Directorship in other listed entities (Category
Name of the Director
of Directorship)
Chairperson Member Chairperson Member
Dr. Ramesh B. V. Nimmagadda - - - - -
Dr. Murali K. Divi - - - - -
Mr. N. V. Ramana - - - - -
Mr. Madhusudana Rao Divi - - - - -
Dr. Kiran S. Divi - - - - -
Ms. Nilima Prasad Divi - - - - -
Dr. G. Suresh Kumar - - - - -
Mr. R. Ranga Rao - - - - -
Mr. K. V. K. Seshavataram - - - - -
Dr. S. Ganapaty - - - - -
Prof. Sunaina Singh - - - - -
Mr. K.V. Chowdary 1 5 2 7 1. CCL Products Limited, Independent
Director
2. Reliance Industries Limited, Non-
Executive Director
3. Tata Motors Limited, Independent
Director
* Excludes directorship in the Company, private companies, foreign companies and Section 8 companies.
** Pertains to memberships/chairpersonships of the Audit Committee and Stakeholders’ Relationship Committee of other Indian public
companies as per Regulation 26(1)(b) of the SEBI Listing Regulations

76
 Corporate Overview Statutory Reports Financial Statements

2.5 Disclosure of relationship between Directors inter-se

Dr. Murali K. Divi, Managing Director is the father of Dr. Kiran S. Divi, Whole-time Director & Chief Executive Officer and
Ms. Nilima Prasad Divi, Whole-time Director (Commercial). Mr. Madhusudana Rao Divi, Whole-time Director (Projects) is
brother of Dr. Murali K. Divi. None of the other Directors are related to each other.

2.6 Shares held by Non-executive Directors

Except the following, none of the Non-Executive Directors hold any equity shares in the Company:

Name Designation No of shares held

Dr. G. Suresh Kumar Non-executive Independent Director 400

2.7 Meeting of Independent Directors

During the year under review, one meeting of the Independent Directors was held on February 03, 2023. The
Independent Directors, inter-alia, reviewed the performance of Non-Independent Directors, Board as a whole and
Chairman of the Company, taking into account the views of Executive Directors and Non-Executive Directors.

2.8 Details of familiarisation programmes for Independent Directors

Details of familiarisation programme of the Independent Directors are available on the website of the company at:
https://www.divislabs.com/wp-content/uploads/2023/04/Familiarisation-programs-2023.pdf

2.9 List of Board’s skills/expertise/competencies fundamental for the effective functioning of the Company:
The Board has identified the following skills/expertise/competencies fundamental for the effective functioning of the
Company which are currently available with the Board:

Skills Description
Global business Understanding the dynamics of global business relating to the operations of the Company and
regulatory requirements in the geographical markets.
Strategy, Planning & Marketing Appreciation of long-term trends and understanding the competitive environment for Company’s
business globally, customer relationships and strategies for continuity and growth of business for
its product range.
Governance Knowledge of governance processes and compliance to applicable laws and regulations to
service best interests of all stakeholders, maintaining Board and Management accountability and
corporate ethics and values.
Leadership Experience in significant enterprise, distinct roles and responsibilities through organisation
structure, risk management and talent development and succession planning.
Technology Knowledge of technology related to Company’s current and future products and business
opportunities, of evolving trends of usage of its product range and of developing cost efficient
processes
Legal, Commercial, Financial Knowledge about legal, commercial, financial skills for the Company’s governance, accounting and
financial management.

Director-wise skills to be presented.

Strategy, Legal,
Name of the Director Global business Planning & Governance Leadership Technology Commercial,
Marketing Financial
Dr. Ramesh B. V. Nimmagadda √ √ √ √
Dr. Murali K. Divi √ √ √ √ √ √
Mr. N. V. Ramana √ √ √ √ √ √
Mr. Madhusudana Rao Divi √ √ √ √
Dr. Kiran S. Divi √ √ √ √ √ √
Ms. Nilima Prasad Divi √ √ √ √ √
Dr. G. Suresh Kumar √ √ √ √ √
Mr. R. Ranga Rao √ √ √ √ √
Mr. K. V. K. Seshavataram √ √ √ √
Dr. S. Ganapaty √ √ √ √
Prof. Sunaina Singh √ √
Mr. K.V. Chowdary √ √ √ √

33rd Annual Report 2022-23 | 77

 2.10 In terms of Regulation 25(8) of SEBI Listing Regulations, Independent Directors have confirmed that they are not aware
of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact their ability
to discharge their duties. Based on the declarations received from the Independent Directors, the Board of Directors
has confirmed that they meet the criteria of independence as mentioned under Regulation 16(1)(b) of the SEBI Listing
Regulations and that they are independent of the management. Further, the Independent Directors have included their
names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs in terms of
Section 150 of the Act read with Rule 6 of the Companies (Appointment & Qualification of Directors) Rules, 2014.

3. Audit Committee
The primary objective of the Audit Committee of the Company is to monitor and provide effective supervision of the
management’s financial reporting process with a view to ensure accurate, timely and proper disclosures and transparency,
integrity and quality of financial reporting.

3.1. Terms of reference of the Committee include the following:

The constitution, terms of reference, role and scope is as prescribed in Regulation 18 of SEBI Listing Regulations read
with Section 177 of the Act, inter-alia, covering:

 a) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and credible;

 b) Scrutiny and review of all financial transactions, inter corporate loans, investments, funds utilisation, related party
transactions and the general financial condition of the Company;

 c) Recommendation for appointment, remuneration and terms of appointment of auditors of the Company and
approval of remuneration of auditors for other services;

 d) Review and monitor the auditor’s independence and performance, and effectiveness of audit process;

 e) Reviewing, with the management, the periodic financial statements and auditor’s report thereon before submission
to the Board for approval;

 f) Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal
control systems;

 g) Evaluation of internal financial controls and risk management systems;

 h) To review the functioning of the Whistle Blower mechanism;

 i) To review statement of deviations in reporting to monitoring agencies.

 j) Approve policies in relation to the implementation of the Insider Trading Code and to supervise implementation of
the same.

 k) Approval or any subsequent modifications of transactions with related parties;

 l) Evaluation of internal financial controls and risk management systems

3.2 Composition of the Audit Committee and details of meetings held and attended by its members:
The Committee comprises of four Independent Directors. Four meetings of the Audit Committee were held during the
year under review on May 23, 2022, August 12, 2022, November 07, 2022 and February 03, 2023. The gap between two
meetings did not exceed one hundred and twenty days.

The composition of the Committee and details of attendance of the Committee members is as follows:

No. of Meetings
Name Designation
Held Attended
Mr. K. V. K. Seshavataram Chairman 4 4
Dr. G. Suresh Kumar Member 4 4
Mr. R. Ranga Rao Member 4 4
Mr. K.V. Chowdary Member 4 3

78
 Corporate Overview Statutory Reports Financial Statements

 The meetings of Audit Committee are also attended by the Whole-time Director (Commercial), Chief Financial Officer,
General Manager (Finance and Accounts), Internal Auditor and representatives of Statutory Auditors as invitees. The
Company Secretary acts as the Secretary to the Committee.

 Mr. K. V. K. Seshavataram, Chairman of the Audit Committee attended the AGM of the Company held on August 22, 2022.

4. Compensation, Nomination and Remuneration Committee

The Compensation, Nomination and Remuneration Committee comprises of six Independent Directors. The constitution
and terms of reference of the Committee is in compliance with provisions of the Section 178 of the Act, Regulation 19 of the
SEBI Listing Regulations and SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999,
as amended from time to time.

4.1. Terms of reference of the Committee inter alia, include the following:
• To formulate the criteria for determining qualifications, positive attributes and independence of a Director, and
recommend to the Board a policy, relating to the remuneration for the Directors, Key Managerial Personnel and
other employees.

• To formulate the criteria for evaluation of performance of Independent Directors and the Board; and evolve and
review the policy on Board diversity.

• To identify/ evaluate persons for appointment to the Board or in senior management in accordance with the
criteria laid down and to recommend to the Board their appointment and/ or removal.

• Support the Board and Independent Directors in evaluation of the performance of the Board, its committees
and individual directors.

• Recommend to the Board, all remuneration, in whatever form, payable to senior management.

• To administer, monitor and formulate Employees’ Stock Option Scheme with terms and conditions relating to
quantum, exercise, granting, vesting etc and evolve a procedure for making a fair and reasonable adjustment to
the scheme in case of any corporate actions.

• To carry out any other function as is mandated by the Board from time to time and/ or required by any statutory
notification, amendment or modification, as may be applicable.

4.2 Composition of the Compensation, Nomination and Remuneration Committee and the details of meetings
held and attended by its members:
The Committee comprises of six Independent Directors. The Committee met two times during the year under review
on May 23, 2022 and February 03, 2023. The composition of the Committee and attendance of each member of the
Committee is as follows:

No. of Meetings
Name Designation
Held Attended
Dr. G. Suresh Kumar Chairman 2 2
Mr. R. Ranga Rao Member 2 2
Dr. Ramesh B. V. Nimmagadda Member 2 2
Dr. S. Ganapaty Member 2 2
Prof. Sunaina Singh Member 2 1
Mr. K.V. Chowdary Member 2 2

Dr. G. Suresh Kumar, Chairman of the Compensation, Nomination and Remuneration Committee attended the AGM of
the company held on August 22, 2022.

33rd Annual Report 2022-23 | 79

4.3 Performance Evaluation
The Company has devised a Policy for Performance Evaluation of Independent Directors, Board, Committees and other
individual Directors. The manner in which the evaluation has been carried out has been explained in the Board’s Report.

Performance evaluation criteria is determined by the Compensation, Nomination and Remuneration Committee. Performance
evaluation of Independent Directors shall be done by the entire Board of Directors (excluding the director being evaluated).
On the basis of the report of performance evaluation, it shall be determined whether to extend or continue the term of
appointment of the Independent Director.

Independent Directors are expected to provide an effective monitoring role and to provide help and advice for the Executive
Directors. The broad issues considered in evaluating Independent Directors are:

• Providing necessary guidance using their knowledge and experience in development of corporate strategy, major
plan of action, risk policy, and setting performance objectives.

• Independence exercised in taking decisions, listening to views of others and maintaining their views with
resolute attitude.

• Ability in assisting the Company in implementing the best corporate governance practices.

• Capability in exercising independent judgement to tasks where there is a potential for conflict of interest.

• Commitment in fulfilling the director’s obligations fiduciary responsibilities.

5. Stakeholders Relationship Committee

The Stakeholders Relationship Committee is empowered, inter alia, to review all matters connected with the Company’s
share transfers and transmissions and redressal of shareholders/ investors’ complaints like non-transfer of shares, non-
receipt of dividend, Annual Report, etc.

The composition and the terms of reference of the Committee are in line with the requirements of provisions of the Act and
Regulation 20 of SEBI Listing Regulations.

5.1 Composition of the Stakeholders Relationship Committee and the details of meetings held and attended by its
members:
 The Stakeholders Relationship Committee consists of five Independent Directors. Dr. Ramesh B. V. Nimmagadda,
Independent Director is acting as Chairman of the Committee. In view of the reconstitution of the Committee, Mr. L.
Kishore Babu, Chief Financial Officer ceased to be a member of the Committee with effect from May 23, 2022.

 The Company has appointed Mr. M. Satish Choudhury, Company Secretary as the Compliance Officer of the Company
for attending to complaints/grievances of the members and the Nodal officer to ensure compliance with the Investor
Education and Protection Fund Rules (IEPF Rules).

 Stakeholders Relationship Committee met two times during the year on August 12, 2022 and February 03, 2023 and
considered issue of transfer/transmission of shares and other investor grievances.

 The composition of the Committee and details of attendance of the Committee members is as follows:

No. of meetings
Name Category Designation
Held Attended
Dr. Ramesh B. V. Nimmagadda Independent Director Chairman 2 2
Mr. K.V.K. Seshavataram Independent Director Member 2 2
Dr. S. Ganapaty Independent Director Member 2 2
Prof. Sunaina Singh Independent Director Member 2 1
Mr. K.V. Chowdary Independent Director Member 2 2

Dr. Ramesh B. V. Nimmagadda, Chairman of the Stakeholders Relationship Committee attended the AGM of the
Company held on August 22, 2022.

80
 Corporate Overview Statutory Reports Financial Statements

5.2 Complaints/Grievances received and attended:

During the year under review, Company has received 59 complaints from investors. All were replied/resolved to the
satisfaction of the investors and no complaints were outstanding.

6. Corporate Social Responsibility Committee

The Committee comprises of two Independent Directors and two Executive Directors. The Corporate Social Responsibility
(CSR) Committee’s responsibility is to assist the Board in undertaking CSR activities by way of formulating and monitoring
CSR Policy of the Company.

The brief terms of reference of the Committee are as follows:

(a) Formulate and recommend to the Board, a Corporate Social Responsibility Policy in line with the requirement of the
Act, which shall indicate the activities to be undertaken by the Company;

(b) Recommend the amount of expenditure to be incurred on CSR activities and

(c) Monitor the implementation of Corporate Social Responsibility Policy of the Company from time to time.

6.1 Composition of the Corporate Social Responsibility Committee and the details of meetings held and attended
by its members:
The Committee met four times during the year on May 23, 2022, August 12, 2022, November 07, 2022 and February 03,
2023. The composition of the Committee and details of attendance of the Committee members is as follows:

No. of meetings
Name Category Designation
Held Attended
Mr. R. Ranga Rao Independent Director Chairman 4 4
Dr. Ramesh B.V. Nimmagadda Independent Director Member 4 4
Dr. Murali K. Divi Executive Director Member 4 4
Mr. Madhusudana Rao Divi Executive Director Member 4 4

7. Risk Management Committee

Risk Management Committee was constituted by the Board, consisting of Executive and Independent Directors, beside
senior executives, to review the processes and procedures for ensuring that all strategic, operational and regulatory risks
are properly identified and that appropriate systems of monitoring and mitigation are in place and to oversee and review
the risk management framework, assessment of risks and minimisation procedures. Risk Management Committee of the
Company meets from time to time to evaluate and ensure that the control mechanism operates effectively.

The Company constantly evaluates various risks – business, customer concentration, supplier concentration, regulatory
compliances, confidentiality of processes, consistency of cGMP practices, environment, employee health and safety etc.,
monitors the risks and deploy appropriate control systems aimed at mitigating such risks to the extent possible.

7.1. Terms of reference of the Committee include the following:

• To formulate a detailed risk management policy which shall include a framework for identification of internal and
external risks faced by the company in particular including financial operational, sectoral, sustainability, information,
cyber security risks and any other risks determined by the committee; measures for risk mitigation including systems
and process for internal control of identified risks and business continuity plan

• To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated
with the business of the Company;

• To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk
management systems;

• To periodically review the risk management policy, at least once in two years, including by considering the changing
industry dynamics and evolving complexity;

33rd Annual Report 2022-23 | 81

 • To keep the board of directors informed about the nature and content of its discussions, recommendations and
actions to be taken;

• The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the
Risk Management Committee.

7.2 
Composition of the Risk Management Committee and the details of meetings held and attended by its
members:
The Risk Management Committee met two times during the year on September 15, 2022 and March 01, 2023. The
composition of the Committee and details of attendance of the Committee members is as follows:

No. of meetings
Name Category Designation
Held Attended
Mr. Madhusudana Rao Divi Executive Director Chairman 2 1
Dr. Kiran S. Divi Executive Director Member 2 2
Ms. Nilima Prasad Divi Executive Director Member 2 2
Dr. G. Suresh Kumar Independent Director Member 2 2
Mr. L. Kishore Babu Chief Financial Officer Member 2 1
Mr. L. Ramesh Babu Vice President (Procurement) Member 2 2

8. Allotment Committee
The Allotment Committee oversees the issues relating to allotment of shares under various corporate actions like Mergers,
Amalgamations, Preferential Issue, Rights Issue, Bonus Issue etc., No meetings of the Committee were held during the year.

8.1 Composition of the Committee:

Name Category Designation
Dr. G. Suresh Kumar Independent Director Chairman
Mr. R. Ranga Rao Independent Director Member
Dr. Kiran S. Divi Executive Director Member

The Company Secretary acts as Secretary of the Committee.

9. Remuneration of Directors for the year ended March 31, 2023

The Company’s Nomination and Remuneration Policy for Directors, Key Managerial Personnel and other employees is
available on the Company’s website at: https://www.divislabs.com/NominationRemunerationPolicy.pdf.

9.1 Details of Remuneration to Executive Directors

(C in lakhs)
Remuneration
Perquisites and
Name Salary PF based on net Total
allowances
profits
Dr. Murali K. Divi 0 0 33 7,016 7,049
Mr. N. V. Ramana 92 11 20 3,508 3,631
Dr. Kiran S. Divi 92 11 37 2,339 2,479
Ms. Nilima Prasad Divi 82 10 32 2,339 2,463
Mr. Madhusudana Rao Divi 92 11 12 0 115
Total 358 43 134 15,202 15,737

Remuneration of Executive Directors comprises a fixed salary and annual remuneration based on profits of the Company.
The tenure of office of the Managing Director and Whole-time Directors is for 5 (five) years from their respective dates
of appointments and may be terminated by either party by giving three months’ notice as per Company’s policy. There
is no separate provision for payment of severance fees.

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 Corporate Overview Statutory Reports Financial Statements

9.2 Details of Remuneration to Non-executive Directors

Non-executive Directors are paid sitting fees of C1 lakh for attending every meeting of the Board or Committee thereof.
In addition to the sitting fee, each Non-executive Director is entitled to an annual remuneration of C20 lakhs per annum.
The Company also reimburses the out-of-pocket expenses incurred by the Non-executive Directors for attending
the meetings.

 Other than the sitting fees, annual remuneration and reimbursements mentioned above, Non-executive Directors had
no pecuniary relationship or transactions with the Company. The Company has not granted any stock options to any of
its Non-executive Directors.

 The details of sitting fee and annual remuneration paid to Non-executive Directors during the year is as follows:
(C in lakhs)
Annual
Name of the Non-executive Director Sitting Fees Total
Remuneration#
Dr. G. Suresh Kumar 12 20 32
Mr. R. Ranga Rao 14 20 34
Mr. K. V. K. Seshavataram 10 20 30
Dr. Ramesh B. V. Nimmagadda 12 20 32
Dr. S. Ganapaty 8 20 28
Prof. Sunaina Singh 5 20 25
Mr. K.V. Chowdary 10 20 30
Total 71 140 211
# Annual remuneration of H20 lakhs paid to each of the non-executive director pursuant to shareholders’ approval dated
February 26, 2020.

10. General Body Meetings

10.1 General Meetings
Location and time of last three AGMs and details of special resolutions, if any:

Year ended Date & Time Venue

31.03.2022 August 22, 2022 at 10.00 a.m. Held through Video Conferencing (“VC”)/Other Audio-visual Means
31.03.2021 August 30, 2021 at 10.00 a.m. (“OAVM”).
The deemed venue for the AGM shall be the Registered Office of the
31.03.2020 September 14, 2020 at 10.00 a.m. Company, i.e. 1-72/23(P)/DIVIS/303, Divi Towers, Cyber Hills, Gachibowli,
Hyderabad – 500 032, Telangana, India

No special resolutions were passed in the previous three AGMs.

10.2 Special Resolutions through Postal Ballot

Details of special resolutions passed through postal ballot last year, the persons who conducted the postal ballot
exercise, details of the voting pattern and procedure of postal ballot:

During the year ended March 31, 2023, there were no resolutions passed through postal ballot.

In the ensuing 33rd AGM, no business is proposed to be transacted requiring a postal ballot.

11. Means of Communication

• Financial results, official news releases of the Company and other shareholder information including transcript of
investor conference calls, are made available on the Company’s website www.divislabs.com.

• Quarterly, half-yearly and annual financial results of the Company are communicated to the Stock Exchanges
immediately after the same are approved by the Board and are published in all India editions of Financial Express
and Hyderabad edition of Andhra Prabha.

33rd Annual Report 2022-23 | 83

 • Annual Report containing, inter alia, Audited Standalone Financial Statements and Consolidated Financial Statements,
Board’s Report, Auditors’ Report and other important information, is circulated to members and others entitled
thereto. The document is also placed on the Company’s website and submitted to the National Stock Exchange of
India Limited (NSE) and BSE Limited (BSE).

• All periodical compliance filings like shareholding pattern, corporate governance report, company announcements,
among others are filed electronically on NSE Electronic Application Processing System (NEAPS) and BSE Listing Centre.

• Reminders for unclaimed dividend are sent to shareholders, regularly every year.

12. General Shareholder Information

Annual General Meeting Monday, August 28, 2023 at 10.00 a.m. (IST).
details The AGM will be held through Video Conferencing (VC)/Other Audio-Visual Means (OAVM) only.
Financial Year The Company’s financial year begins on April 1 and ends on March 31 of succeeding year.
Dividend The Board of Directors recommended a dividend of C30/- per equity share of C2/- each, i.e., 1500% for the
financial year ended March 31, 2023, subject to approval of members at the ensuing Annual General Meeting.
Record date for Dividend is Friday, August 11, 2023.
If approved by the Members, payment will be made on and from Monday, September 04, 2023.
ISIN INE361B01024
CIN L24110TG1990PLC011854
Listing on Stock National Stock Exchange of India Limited (NSE)
Exchanges Exchange Plaza, C-1, Block G,
Bandra-Kurla Complex,
Bandra (East), Mumbai–400051.

BSE Limited (BSE)

Phiroze Jeejeebhoy Towers, Dalal Street,
Mumbai-400 001
The listing fee for the financial year 2023-24 has been paid to both the Stock Exchanges.
Stock Code NSE : DIVISLAB
BSE : 532488
Registrars & Transfer Kfin Technologies Limited
Agent (RTA) Selenium Tower B, Plot No. 31 – 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad - 500032,
Rangareddy, Telangana, India

13. Market Price Data

Monthly high and low quotations as well as the volume of shares traded at BSE and NSE for the financial year 2022-23 are
as follows:

BSE NSE
Month
High (`) Low (`) Volume High (`) Low (`) Volume
Apr-22 4,640.95 4,333.00 3,07,586 4,640.80 4,335.10 74,04,184
May-22 4,551.50 3,365.10 8,25,794 4,600.00 3,365.55 1,89,84,690
Jun-22 3,724.90 3,449.85 5,35,654 3,715.00 3,450.10 99,03,041
Jul-22 3,882.75 3,581.35 3,68,242 3,884.30 3,581.05 60,08,193
Aug-22 3,976.70 3,448.00 11,76,740 3,973.90 3,446.00 1,39,21,247
Sep-22 3,750.00 3,544.85 5,22,987 3,751.00 3,544.00 91,30,528
Oct-22 3,802.45 3,473.05 6,78,768 3,806.60 3,472.00 71,12,357
Nov-22 3,902.00 3,197.00 5,40,477 3,903.95 3,195.15 1,84,69,427
Dec-22 3,640.00 3,254.40 3,34,654 3,640.00 3,254.65 98,45,048
Jan-23 3,520.00 3,282.00 2,19,992 3,520.00 3,281.30 57,61,796
Feb-23 3,417.50 2,740.10 7,71,938 3,419.00 2,740.10 1,62,05,832
Mar-23 2,881.10 2,730.00 2,51,002 2,889.00 2,730.00 69,61,050

84
 Corporate Overview Statutory Reports Financial Statements

Chart given below shows the stock performance at closing prices in comparison to the broad-based index such as BSE Sensex
and NSE Nifty.

BSE Sensex Vs DIVISLAB (FY 2022-23)

65000 5000
60747 60841
57061 59537 63100 59550 58962
60000 4500
4507 57570 58992
55566
57427
53019
BSE SENSEX

55000 4000

DIVISLAB
3830
50000 3685 3500
3591 3631 3625 3607
3403 3413
3317
45000 3000

2826 2826
40000 2500
2 2 2 2 2 2 2 3 3 3
r-2 -2 22 22 -2 -2 t-2 -2 -2 -2 -2 r-2
ay n- l- g p c ov c n b a
Ap M Ju Ju Au Se O N De Ja Fe M

BSE Sensex Divislab

NSE Nifty Vs DIVISLAB (FY 2022-23)

12000 5000
18758
12000 18012 18105
17759 17662 4500
17158 17304 17360
12000 17094
4505
16585
12000 4000
15780
NSE NIFTY

17103

DIVISLAB
12000
3832
3705 3500
12000 3501 3603 3627 3609
3405 3413
12000 3315
3000
12000
2826 2823
12000 2500

2 2 2 2 2 2 2 3 3 3
-2 -2 -22 l-2
2 -2 -2 -2 -2 -2 -2 -2 -2
r ay un
g p ct ov c n b ar
Ap M J Ju Au Se O N De Ja Fe M

NSE Nifty Divislab

33rd Annual Report 2022-23 | 85

14. Unclaimed Dividend Amounts and Transfer to Investor Education and Protection Fund
(IEPF)
Pursuant to Sections 124 and 125 of the Act read with the Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), dividend, if not claimed for a period of seven years from the date of
transfer to Unpaid Dividend Account of the Company, are liable to be transferred to IEPF.

Further, all the shares in respect of which dividend has remained unclaimed for seven consecutive years or more from the
date of transfer to unpaid dividend account shall also be transferred to IEPF Authority. The said requirement does not apply
to shares in respect of which there is a specific order of Court, Tribunal or Statutory Authority, restraining any transfer of
the shares.

The Company sends periodical reminders to the shareholders to claim their dividends in order to avoid transfer of dividends/
shares to IEPF Authority. Notices in this regard are also published in the newspapers and the details of unclaimed dividends
and shareholders whose shares are liable to be transferred to the IEPF Authority, are uploaded on the Company’s website
at https://www.divislabs.com/investor-relations/reports-and-filings/unclaimed-dividend/#unclaimed-dividend.

The Company has transferred dividend amounts which remained unpaid or unclaimed for a period of seven years from the
date of their transfer to unpaid dividend account, from time to time, on due dates to IEPF.

The Company has uploaded the details of unpaid and unclaimed dividends lying with the Company as on March 31, 2023 on
the website of the Company, and on the website of the Ministry of Corporate Affairs.

During the year under review, the Company has credited the following unclaimed dividends to the IEPF:

Financial Year Date of declaration of dividend Amount transferred to IEPF(`) No of shares Transferred
2014-2015 31.08.2015 9,49,760/- 774
2015-2016 10.03.2016 (Interim) 10,30,730/- 351

Details of shares transferred to IEPF Authority during financial year 2022-23 are also available on the website of the
Company (www.divislabs.com). The Company has also uploaded these details on the website of the IEPF Authority
(www.iepf.gov.in).

Information in respect of such unclaimed dividends due for transfer to IEPF is as follows:

Amount outstanding as on
Financial Year Date of declaration of dividend Due for transfer to IEPF on
March 31, 2023 (`)
2016-2017 25.09.2017 17,28,070 24.10.2024
2017-2018 10.09.2018 5,11,770 09.10.2025
2018-2019 23.08.2019 18,13,024 22.09.2026
2019-2020 12.02.2020 (Interim) 19,94,640 11.03.2027
2020-2021 30.08.2021 16,48,404 07.10.2028
2021-2022 22.08.2022 26,71,815 29.09.2029

In accordance with the provisions of Section 124(6) of the Act read with Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016 (as amended from time to time), shares in respect of which dividend
has not been paid or claimed for seven consecutive years or more, will be transferred to the demat account of IEPF Authority.
The Company has sent notice to all shareholders whose shares are due to be transferred to the IEPF Authority. Members are
advised to visit the website of the company to ascertain the details of shares liable for transfer in the name of IEPF Authority.

Shareholders whose unclaimed dividend/ shares are transferred to the IEPF Authority can now claim their unclaimed
dividend and shares from the Authority by following the Refund Procedure as detailed on the website of IEPF Authority.

15. Share Transfer System

In terms of Regulation 40(1) of SEBI Listing Regulations, as amended from time to time, transfer, transmission and
transposition of securities shall be effected only in dematerialised form.

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 Corporate Overview Statutory Reports Financial Statements

Pursuant to SEBI Circular dated January 25, 2022, the listed companies shall issue the securities in dematerialised form only,
for processing any service requests from shareholders vis., issue of duplicate share certificates, endorsement, transmission,
transposition, etc. After processing the service request, a letter of confirmation will be issued to the shareholders and
shall be valid for a period of 120 days, within which the shareholder shall make a request to the Depository Participant for
dematerialising those shares. If the shareholders fail to submit the dematerialisation request within 120 days, then the
Company shall credit those shares in the Suspense Escrow Demat account held by the Company. Shareholders can claim
these shares transferred to Suspense Escrow Demat account on submission of necessary documentation.

The Stakeholders Relationship Committee meets as often as required to approve share transfers and to attend to any
grievances or complaints received from the members.

16. Distribution of Shareholding as on March 31, 2023

Category Number of % of total % of Share
Shareholding
No of shares accounts accounts Capital
1 – 5000 4,32,484 99.74 2,02,00,858 7.61
5001 – 10000 457 0.11 33,64,313 1.27
10001 – 20000 277 0.06 39,33,172 1.48
20001 – 30000 102 0.02 25,43,566 0.96
30001 – 40000 56 0.01 20,19,721 0.76
40001 – 50000 24 0.01 10,65,657 0.40
50001 – 100000 98 0.02 70,00,870 2.64
100001 & above 123 0.03 22,53,40,423 84.88
Total 4,33,621 100 26,54,68,580 100

17. (i) Shareholding Pattern

As on March 31, 2023 As on March 31, 2022
Category
No. of shares % of Share Capital No. of shares % of Share Capital
Promoters & Promoter Group 13,78,83,200 51.94 13,78,94,200 51.94
Mutual Funds 3,49,10,100 13.15 3,63,29,188 13.68
Alternative Investment Fund 8,71,269 0.33 10,16,752 0.38
Foreign Portfolio Investors 3,89,57,437 14.67 4,89,88,899 18.45
Banks/Financial institutions 3,02,160 0.11 1,19,640 0.05
Qualified Institutional Buyer/Insurance Companies/ 1,98,54,080 7.48 1,11,63,520 4.21
Provident Funds/ Pension Funds/Sovereign Wealth
Funds
Indian Public 2,71,11,568 10.21 2,46,06,409 9.27
NBFCs registered with RBI 3,350 0.00 1,485 0.00
Trusts 47,958 0.02 46,260 0.02
Non-Resident Indian 18,15,905 0.69 16,19,215 0.61
Clearing Members 13,365 0.01 1,35,721 0.05
Corporate Bodies 36,72,598 1.38 35,20,345 1.33
IEPF 25,590 0.01 26,946 0.01
Total 26,54,68,580 100.00 26,54,68,580 100.00

(ii) Shareholding Profile As on March 31, 2023

Number of
Mode of holding Shareholding % of Share Capital
accounts
NSDL 1,63,980 25,58,57,621 96.38
CDSL 2,86,577 94,94,028 3.58
Physical 26 1,16,931 0.04
Total 4,50,583 26,54,68,580 100.00

33rd Annual Report 2022-23 | 87

18. Dematerialisation of Shares and Liquidity
The Company’s shares have been mandated for compulsory trading in demat form. Valid demat requests received by the
Company’s Registrar are confirmed within the statutory period.

International Securities Identification Number (ISIN) allotted for the Company by NSDL and CDSL is INE361B01024. In case
a member wants his/her shares to be dematerialised, he/she may send the shares along with the request through his
depository participant (DP) to the RTA, Kfin Technologies Limited.

The Company’s RTA promptly intimate the DPs in the event of any deficiency and shareholders are also kept abreast. Pending
demat requests in the records of the Depositories, if any, are continually reviewed and appropriate actions are initiated.

As on March 31, 2023, 99.96% of the shares were in demat mode.

19. Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, Conversion Date and

Likely Impact on Equity
The Company does not have any outstanding GDRs/ADRs/Warrants or any convertible instruments.

20. Commodity Price Risk or Foreign Exchange Risk and Hedging Activities
The Company is not carrying on any Commodity Business and has not undertaken any hedging activities. The details of
foreign currency exposure are disclosed in Notes to Standalone Financial Statements.

21. Plant Locations

CHOUTUPPAL Unit: Lingojigudem Village, Choutuppal Mandal Yadagiri Bhuvanagiri Dist., Telangana, Pin Code - 508 252.
EXPORT ORIENTED Unit: Chippada Village, Bheemunipatnam Mandal Visakhapatnam Dist., Andhra Pradesh, Pin Code - 531 163
DIVI’S PHARMA SEZ Unit: Chippada Village, Bheemunipatnam Mandal Visakhapatnam Dist., Andhra Pradesh, Pin Code - 531 163
DSN SEZ Unit: Chippada Village, Bheemunipatnam Mandal Visakhapatnam Dist., Andhra Pradesh, Pin Code - 531 163
DC SEZ Unit: Lingojigudem Village, Choutuppal Mandal Yadagiri Bhuvanagiri Dist., Telangana, Pin Code - 508 252.
DCV SEZ Unit: Chippada Village, Bheemunipatnam Mandal Visakhapatnam Dist., Andhra Pradesh, Pin Code - 531 163

22. Address for Correspondence

All Members correspondence should be forwarded to Kfin Technologies Limited, the RTA of the Company or to the Company
at the Registered Office of the Company at the addresses mentioned below.

Company: Company Secretary, Compliance Officer and Nodal officer

Registrar and Share Transfer Agents (RTA):
under IEPF
Kfin Technologies Limited Mr. M. Satish Choudhury
Unit: Divi’s Laboratories Limited Divi’s Laboratories Limited
Selenium Tower B, Plot No. 31 – 32, 1-72/23(P)/DIVIS/303, Divi Towers,
Financial District, Nanakramguda, Cyber Hills, Gachibowli,
Serilingampally, Hyderabad - 500032, Hyderabad – 500 032,
Rangareddy, Telangana, India Telangana, India
Phone No: +91 40-67161526; Phone: +91 40 66966352;
Fax: +91 40-23001153 Fax: +91 40-6696 6460
Toll Free No. 1800-3454-001 E-mail: [email protected]
E-mail: [email protected] Website: www.divislabs.com

23. Credit Rating

CARE Ratings Limited has reaffirmed the credit rating for the Company as CARE AA+ Outlook: Stable for long-term bank
facilities and AA+ (Stable) outlook: Stable, A+ for long/short-term bank facilities.

88
 Corporate Overview Statutory Reports Financial Statements

24. Other Disclosures

A) Dividend Distribution Policy:
The Board of Directors adopted a Dividend Distribution Policy as per the statutory requirement of SEBI Listing
Regulations and the Act. The said Policy is available on the website of the Company at: https://www.divislabs.com/
DividendDistributionPolicy.pdf.

B) Disclosures on Materially Significant Related Party Transactions

The Company does not have any materially significant related party transactions, which may have potential conflict
with the interest of the Company. Other related party transactions have been reported at Note no. 37 of notes to
Standalone Financial Statements. The Register of Contracts, containing transactions in which Directors are interested,
is placed before the Board regularly.

The Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related
Parties. The policy is available on the website of the Company at https://www.divislabs.com/RPT-Policy.pdf

C) Cases of Non-Compliances/Penalties
There has been no instance of non-compliance by the Company on any matter related to capital markets during the last
three years. Hence, the question of imposition of penalties or strictures by SEBI or the Stock Exchanges does not arise.

D) Whistle Blower Policy/Vigil Mechanism

To strengthen its policy of corporate transparency, the Company has established an empowering mechanism for
employees and accordingly formulated a Whistle Blower Policy to provide a mechanism for directors and employees of
the Company to report instances of unethical behavior, actual or suspected fraud, or violation of the Code of Ethics and
Business Conduct, in good faith to the Vigilance Officer/Chairman of the Audit Committee. This mechanism also provides
for adequate safeguards against victimisation of director(s)/employee(s) who avail the mechanism and provides for
direct access to the Chairman of the Audit Committee in exceptional cases. No personnel have been denied access to
the Audit Committee.

The Whistle Blower Policy may be accessed on the Company’s website at:
https://www.divislabs.com/WhistleBlowerPolicy.pdf.

E)  olicy for determining material subsidiaries is disseminated on the website of the Company at https://www.divislabs.
P
com/MaterialSubsidiaryPolicy.pdf.

F) 
The Company has obtained a certificate from Mr. V. Bhaskara Rao, Practicing Company Secretary, certifying that none
of the Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing
as Directors of Companies by the Board/Ministry of Corporate Affairs or any such statutory authority.

G) Fees Paid for the services of Auditors

Details of the total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the
statutory auditor and all entities in the network firm/network entity of which the statutory auditor of the Company is a
part, are as follows:
(C in lakhs)
For year ended For year ended
Particulars
March 31, 2023 March 31, 2022
As Statutory Auditor 40 40
For quarterly reviews 26 24
Re-imbursement of expenses 4 2
Total payments to auditors 70 66

H) Sexual Harassment
In compliance with Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
statement of complaints for the financial year ended March 31, 2023 is as follows:

33rd Annual Report 2022-23 | 89

 Sl. No. Particular Number
1 Number of complaints pending as on beginning of the financial year Nil
2 Number of complaints filed during the financial year Nil
3 Number of complaints disposed of during the financial year Nil
4 Number of complaints pending as on end of financial year Nil

I)  he Company or its subsidiaries has not given any loans and advances in the nature of loans to firms/companies
T
in which directors are interested.
J) 
The Company has not raised any funds through preferential allotment or QIP as specified under Regulation 32(7A)
of SEBI Listing Regulations during the year under review.
K) 
There are no instances of recommendation of any committee of the Board which is mandatorily required and not
accepted by the Board during the year under review.

25. The Company has complied with the requirements of the Schedule V Corporate Governance Report sub-paras (2) to (10) of
the SEBI Listing Regulations.

26. Compliance with Mandatory Requirements and Adoption of Discretionary Requirements

The Company has complied with all the mandatory requirements of the Corporate Governance as stipulated in Schedule V
of the SEBI Listing Regulations. Certificate from Mr. V. Bhaskara Rao, Practicing Company Secretary, confirming compliance
with the conditions of Corporate Governance is annexed.
Status of adoption of the discretionary requirements pursuant to Regulation 27(1) of the SEBI Listing Regulations read with
Part E of Schedule II is as under:
Shareholder Rights: Half-yearly and other quarterly financial statements are published in newspapers and uploaded on
Company’s website www.divislabs.com;
Audit Qualifications: The Company strives to follow a regime of unmodified opinion of Auditors on financial statements. The
Auditors have raised no qualification on the financial statements for financial year 2022-23 and the Auditor’s Report on the
financial statements is with an unmodified opinion.

Subsidiaries
The Company has two foreign subsidiaries. The Audit Committee reviews the financial statements of the subsidiary
companies. During the year, the Board took on record the minutes of the Board meetings of the subsidiary companies.

CEO and CFO Certification

The CEO and CFO of the Company have certified to the Board in relation to reviewing financial statements and other
information as required by Regulation 17(8) of the SEBI Listing Regulations and the certificate is appended.

Code of Ethics and Business Conduct

The Company has adopted a Code of Ethics and Business Conduct (“The Code”) for Directors and Senior Management.
The Code is comprehensive in nature and applicable to all the Directors, Executive as well as Non-Executive and to Senior
Management of the Company.
Copy of the said Code is available on the Company’s website, www.divislabs.com. The Code has been circulated to all the
members of the Board and Senior Management and the compliance of the same has been affirmed by them. A declaration
signed by the Chief Executve Officer and Managing Director is as follows:
We hereby confirm that the Company has obtained from all the members of the Board and senior management, affirmation
that they have complied with the Code in respect of the financial year 2022-23.

For and on behalf of the Board

Dr. Murali K. Divi Dr. Kiran S. Divi

Place: Hyderabad Managing Director Whole-time Director &
Date: May 20, 2023 DIN: 00005040 Chief Executive Officer
DIN: 00006503

90
 Corporate Overview Statutory Reports Financial Statements

Certification of Chief Executive Officer and Chief Financial Officer

We, Dr. Kiran S. Divi, Whole-time Director & Chief Executive Officer appointed in terms of the Companies Act, 2013 and Mr. L.
Kishore Babu, Chief Financial Officer of Divi’s Laboratories Limited, to the best of our knowledge and belief, certify that:

a. We have reviewed the financial statements and the cash flow statement (Standalone and consolidated) for the year ended
March 31, 2023 and to the best of our knowledge and belief these statements;

i. do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

ii. together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards,
applicable laws and regulations.

b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.

c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.

d. We have indicated to the Auditors and the Audit Committee

i. significant changes in internal control over financial reporting during the year;

ii. significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and

iii. instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the company’s internal control system over financial reporting.

For Divi’s Laboratories Limited

Dr. Kiran S. Divi L. Kishore Babu

Place: Hyderabad Whole-time Director & Chief Financial Officer
Date: May 20, 2023 Chief Executive Officer
DIN: 00006503

33rd Annual Report 2022-23 | 91

 Certification on Corporate Governance

To It is neither an audit nor an expression of opinion on the

The Members of financial statements of the Company.
Divi’s Laboratories Limited
We have examined the books of account and other relevant
CIN: L24110TG1990PLC011854
records and documents maintained by the Company for the
1-72/23(P)/DIVIS/303, Divi Towers
purposes of providing reasonable assurance on the compliance
Cyber Hills, Gachibowli
with Corporate Governance requirements by the Company.
Hyderabad -500 032
Based on our examination of the relevant records and according
We have examined the compliance of conditions of Corporate
to the information and explanations provided to us and the
Governance by Divi’s Laboratories Limited (‘the Company’), for
representations provided by the Management and considering
the year ended March 31, 2023, as stipulated in Regulations 17
the relaxations granted by the Ministry of Corporate Affairs and
to 27, clauses (b) to (i) of Regulations 46(2) and para C, D and
Securities and Exchange Board of India warranted due to the
E of Schedule V of the Securities and Exchange Board of India
spread of the COVID-19 pandemic, we certify that the Company
(Listing Obligations and Disclosure Requirements) Regulations,
has complied with the conditions of Corporate Governance as
2015 as amended from time to time (“SEBI Listing Regulations”)
stipulated in the SEBI Listing Regulations for the year ended on
The Compliance of the conditions of Corporate Governance March 31, 2023.
is the responsibility of the management of the Company.
We further state that such compliance is neither an assurance
This responsibility includes the design, implementation, and
as to the future viability of the Company nor the efficiency or
maintenance of internal control and procedures to ensure the
effectiveness with which the Management has conducted the
compliance with the conditions of the Corporate Governance
affairs of the Company.
stipulated in the SEBI Listing Regulations.
Our examination was limited to examining the procedures and
implementation thereof, adopted by the Company for ensuring
the compliance with the conditions of Corporate Governance.

For V. Bhaskara Rao & Co.,

Company Secretaries

V. Bhaskara Rao
Proprietor
F.C.S.No.5939, C.P.No.4182
Peer Review No. 670/2020
UDIN: F005939E000342319

Place: Hyderabad
Date: May 20, 2023

92
 Corporate Overview Statutory Reports Financial Statements

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, Exchange Board of India (Listing Obligations and Disclosure

The Board of Directors Requirements) Regulations, 2015.
Divi’s Laboratories Limited,
Based on our examination of relevant documents made
CIN: L24110TG1990PLC011854
available to us by the Company and such other verifications
1-72/23(P)/DIVIS/303,
carried out by us as deemed necessary and to the extent
Divi Towers Cyber Hills, Gachibowli,
possible, in our opinion and to the best of our information
Hyderabad, Telangana-500032
and according to the verifications (including Directors
We have examined the relevant registers, records, forms, Identification Number (DIN) status at the portal www.mca.gov.
returns and disclosures (hereinafter referred to as ‘relevant in) as considered necessary and explanations furnished to me
documents’) produced to us by M/s. Divi’s Laboratories by the Company & its officers, we hereby certify that, for the
Limited, bearing CIN L24110TG1990PLC011854 and having financial year ending on March 31, 2023, none of the Directors
Registered Office at 1-72/23(P)/DIVIS/303, Divi Towers, Cyber on the Board of the Company as stated below have been
Hills, Gachibowli, Hyderabad, Telangana-500032 (hereinafter debarred or disqualified from being appointed or continuing
referred to as ‘the Company’) for the purpose of issuing as Directors of companies by the Securities and Exchange
this Certificate, in accordance with Regulation 34(3) read Board of India, Ministry of Corporate Affairs, or any such other
with Schedule V Para-C Sub clause 10(i) of the Securities Statutory Authority:

Sl. No. Name of Director DIN

1. Dr. Murali Krishna Prasad Divi 00005040
2. Mr. Nimmagadda Venkata Ramana 00005031
3. Dr. Satchandra Kiran Divi 00006503
4. Mr. Kanteti Venkata Krishna Seshavataram 00060874
5. Mr. Madhusudana Rao Divi 00063843
6. Dr. Gangavarapu Suresh Kumar 00183128
7. Ms. Nilima Prasad Divi 06388001
8. Mr. Ranga Rao Ravipati 06409742
9. Dr. Rameshbabu Venkata Nimmagadda 07854042
10. Prof. Ganapaty Seru 07872766
11. Prof. Sunaina Singh 08397250
12 Mr. Kosaraju Veerayya Chowdary 08485334

Ensuring that the eligibility of 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 on these 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. Bhaskara Rao & Co.,

Company Secretaries

V. Bhaskara Rao
Proprietor
F.C.S.No.5939, C.P.No.4182
Peer Review No. 670/2020
UDIN: F005939E000342319

Place: Hyderabad
Date: May 20, 2023

33rd Annual Report 2022-23 | 93

Board’s Report

To
The Members,
Divi’s Laboratories Limited

Your Directors’ present the 33rd Annual Report of Divi’s Laboratories Limited (“the Company” or “Divi’s”) along with the audited
financial statements for the financial year ended March 31, 2023. The consolidated performance of the Company and its
subsidiaries (“Group”) has been referred to wherever required.

Financial Results
Financial performance of the Company for the year ended March 31, 2023 is summarised below:
(C in lakhs)
Standalone Consolidated
2022-23 2021-22 2022-23 2021-22
Revenue 7,62,530 8,87,982 7,76,751 8,95,983
Other Income 34,901 11,126 34,466 11,387
Total Income 7,97,431 8,99,108 8,11,217 9,07,370
Expenditure before depreciation, interest 5,27,762 5,00,336 5,39,969 5,07,789
Profit before depreciation, interest and tax (PBDIT) 2,69,669 3,98,772 2,71,248 3,99,581
Depreciation 34,207 31,055 34,318 31,151
Finance Cost 52 65 67 80
Profit before Tax (PBT) 2,35,410 3,67,652 2,36,863 3,68,350
Tax Expense:
Current Tax 43, 758 63,720 43,917 64,400
Deferred Tax 10,837 9,078 10,608 7,905
Total Tax 54,595 72,798 54,525 72,305
Profit after Tax (PAT) 1,80,815 2,94,854 1,82,338 2,96,045
Other comprehensive Income (net of tax) 233 218 1,194 406
Total Comprehensive Income 1,81,048 2,95,072 1,83,532 2,96,451
Earnings per Share of C 2/- each (EPS) Basic & Diluted (C) 68.11 111.07 68.69 111.52

Operations This financial year, the Company has earned a total income of
C7,97,431 lakhs, which is about 11% lower than the previous
Standalone
financial year. As stated above, due to significant change in the
Last year, the Company had the opportunity to make a product-mix, our net material consumption as a percentage
significant contribution for the treatment of covid pandemic of revenue for the year is about 40%, while it was about 34%
and swiftly developed process, mobilised its resources and during the last financial year. Our Profit before tax for the year
capital infrastructure, quickly created capacities and produced accounted to C2,35,410 lakhs, which is significantly lower than
large volumes of a product for covid-19 infection for an MNC the previous year.
customer, which helped in treatment of people infected with
covid-19 virus. It is a great relief that the pandemic has since Tax expense for the year amounted to C54,595 lakhs as against
abated and people across the world are breathing normal a tax expense of C72,798 lakhs in the previous year. Effective
activity. As a result, our supplies of the product for covid-19 have tax rate for the year has increased over the last year due to the
also substantially reduced during the year under review. changes in product mix and the resultant profitability across the
Company’s manufacturing units.
As the restrictions on movement of people has since eased and
the over-stocking of inventories at different channels of some of Profit after tax for the year amounted to C1,80,815 lakhs as
the lifestyle medicines has also reduced, we are seeing growth against C2,94,854 lakhs during the previous year.
of our normal business portfolio.

94
 Corporate Overview Statutory Reports Financial Statements

Consolidated A major part of the capitalisation is in the DC and DCV

The Group’s consolidated total income amounted to C8,11,217 SEZs, besides capacity expansion, plant upgradation and
lakhs as against C9,07,370 lakhs in the previous year. augmenting the utility/support infrastructure at the other
manufacturing facilities.
Profit before tax for the year is C2,36,863 lakhs as against
C3,68,350 lakhs in the previous year. The Company earned a Kakinada Project
Profit after Tax of C1,82,338 lakhs for the year as against C2,96,045
lakhs in the previous year. The consolidated operations are During the year, the Company has made significant progress
reflective of standalone operations, as standalone operations for implementation of its project of setting up a manufacturing
are substantial part of our business. plant (Unit-III) at Ontimamidi (Kona) Village, Thondangi Mandal,
Kakinada District of Andhra Pradesh. With all clearances obtained
Subsidiaries for the Unit III project, construction activity on the 500 acres of
land is progressing well with an estimated capex of C1,20,000
The Company’s wholly owned subsidiaries, vis., Divis lakhs to C1,50,000 lakhs for Phase-1 development depending
Laboratories (USA) Inc., in USA and Divi’s Laboratories Europe upon options and opportunities available to the company and
AG in Switzerland, are engaged in marketing/distribution of selection of capacities to be created for different products.
nutraceutical ingredients used in the food, beverage, dietary
supplement, feed and pet food industries; and they provide a Material Changes and Commitments
greater reach to customers within these regions. During the year,
the subsidiaries have achieved aggregate revenue of C51,530 No other material changes and commitments have occurred
lakhs as against C48,845 lakhs in the previous year, reflecting after the close of the financial year till the date of this Report,
a growth of 5% of revenue at the subsidiary level. During the which affect the financial position of the Company. Further,
year, there was no significant change in the nature of business there is no change in the nature of business of the Company.
of the Subsidiaries.
Dividend
As per Section 129(3) of the Companies Act, 2013 read with
Companies (Accounts) Rules, 2014, statement containing Your Directors are pleased to recommend a dividend of C30/- per
the salient features of the financial statement of Company’s equity share of C2/- each, i.e., 1500% for the financial year ended
subsidiaries in form AOC-1 is annexed herewith as March 31, 2023, subject to approval of members at the ensuing
“Annexure - I”. Moreover, pursuant to provisions of Annual General Meeting (AGM). The Dividend, if approved, will
Section 136(1) of the Companies Act, 2013, audited be paid to shareholders whose names appear in the Register of
financial statements of the subsidiary companies are Members as on the book closure/record date.
placed on the Company’s website and can be accessed at The total dividend payout for the current year amounts to
https://www.divislabs.com/Subsidiary-Financials-2023.pdf. The C79,641 lakhs as against C79,641 lakhs in the previous year.
Consolidated Financial Statements presented by the Company Dividend payout for the year as a percentage of profits is 44%.
include the financial results of these two subsidiary companies. Payment of dividend to members will be subject to tax deduction
Policy for determining Material Subsidiaries, is available on at source (TDS) as per statutory requirement.
the Company’s corporate website and can be accessed at: The dividend recommended is in accordance with the Company’s
https://w w w.divislabs.com/MaterialSubsidiar yPolic y.pdf. Dividend Distribution Policy. The Dividend Distribution Policy
Presently, the Company does not have any material subsidiary. is available on the Company’s website and can be accessed at
https://www.divislabs.com/DividendDistributionPolicy.pdf.
Consolidated Financial Statements
As stipulated in the SEBI (Listing Obligations and Disclosure Transfer to Reserves
Requirements) Regulations, 2015 (“SEBI Listing Regulations”) The Directors have decided to retain the entire total
and the Companies Act, 2013 (“the Act”), the consolidated comprehensive income for the current year in Other Equity.
financial statements have been prepared by the Company in
accordance with the relevant accounting standards. The audited Deposits
consolidated financial statements together with Auditor’s Report
thereon form part of the Annual Report. The Company has not accepted any deposits from public
covered by provisions of Section 73 of the Act.
Capital Expenditure
During the year, we have capitalised Property, Plant and
Equipment (PPE) and Intangible Assets valuing C74,140 lakhs. Loans, Guarantees or Investments
Capital Work-in-progress as at the year-end amounted to The Company has not given any loans or guarantees covered
C21,188 lakhs. under the provisions of Section 186 of the Act. The details of
33rd Annual Report 2022-23 | 95
investments made by the Company are given in the notes to the During the financial year 2022-23, the focus areas of Risk
financial statements forming part of this annual report. Management Committee included review of cyber security and
data protection, business continuity, various ESG risks.
Related Party Transactions
Management Discussion and Analysis
There are no materially significant related party transactions
made by the Company with related parties which may have In terms of provisions of Regulation 34(2) of SEBI Listing
potential conflict of interest with the Company at large. As Regulations report on Management Discussion & Analysis for
a matter of policy, your Company carries out transactions the year under review is provided in a separate section forming
with related parties on an arms’ length basis. Statement of part of this Annual Report.
these transactions is given at Note No. 37 of the Notes to
financial statements. Directors’ Responsibility Statement
Accordingly, particulars of contracts or arrangements with As required under Section 134 (5) of the Act, Directors of your
related parties referred to in Section 188(1) of the Act along with Company hereby state and confirm that:
the justification for entering into such contract or arrangement
a) 
the applicable accounting standards read with
in prescribed Form AOC-2 does not form part of this report.
requirements of Schedule III to the Act have been followed
The Policy on Materiality of Related Party Transactions and in the preparation of the annual accounts for the year ended
on dealing with Related Party Transactions as approved by March 31, 2023 and there are no material departures from
the Board is available on the Company’s website and can be the same;
accessed at https://www.divislabs.com/RPT-Policy.pdf.
b) accounting policies selected were applied consistently and
the judgements and estimates made are reasonable and
Internal Financial Controls
prudent so as to give a true and fair view of the state of
Information in respect of internal financial controls and their affairs of the Company as at the end of the financial year
adequacy is included in the Management Discussion and and of the profit of the Company for the period;
Analysis, which forms part of this Annual report.
c) proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance
Risk Management
with the provisions of the Act for safeguarding the assets of
The Company has a Risk Management Committee of the the Company and for preventing and detecting fraud and
Board. The brief of terms of reference, composition and names other irregularities;
of members and chairperson are set out in the Corporate
d) 
the annual accounts have been prepared on a going
Governance Report forming part of the Report.
concern basis.
The Company has an enterprise-wide approach to risk
e) internal financial controls have been laid down and such
management, which lays emphasis on identifying and managing
controls are adequate and operating effectively;
key operational and strategic risks. The aim is to avoid or
minimise risks that pose a threat to Divi’s continued existence f) proper systems have been laid down to ensure compliance
and to make improved managerial decisions to create value. with the provisions of all applicable laws and such systems
The Company has been addressing various risks impacting the are adequate and operating effectively.
Company pursuant to the Risk Management Policy.
Number of Meetings of Board of Directors
The Risk Management Committee constantly evaluates
various risks – business, customer concentration, supplier The Board meets at least four times in a year at quarterly
concentration, regulatory compliances, confidentiality of intervals and more frequently if deemed necessary, to transact
processes, consistency of cGMP practices, environment, its business. During the financial year, the Board has met four
employee health and safety etc., monitors risks and deploy times, i.e. May 23, 2022, August 12, 2022, November 07, 2022
appropriate control systems aimed at mitigating such risks and February 03, 2023.
to the extent possible. The Audit Committee reviews the risk
elements of the company’s business, finance, operations and Directors and Key Managerial Personnel
compliance, and their respective mitigation strategies.
During the financial year, there were no changes in the Board of
Further details on the Risk Management activities including Directors or Key Managerial Personnel.
key risks identified, and their mitigations are covered in
Pursuant to the Members’ approval dated March 26, 2022 via
Management Discussion and Analysis Report, forming part of
postal ballot, Dr. Ramesh B.V. Nimmagadda and Dr. Ganapaty
this Annual Report.
Seru were re-appointed as Independent Directors for a second

96
 Corporate Overview Statutory Reports Financial Statements

term of 5 years, and Ms. Nilima Prasad Divi was re-appointed as the Act, and Regulation 19 read with Schedule II Part D of SEBI
Whole-time Director (Commercial) of the Company for a period Listing Regulations has been formulated by the Company, inter-
of 5 years. alia includes:

Dr. Kiran S. Divi and Ms. Nilima Prasad Divi retires by rotation at • To identify persons who are qualified to become directors
the forthcoming 33rd AGM and being eligible, offer themselves and who may be appointed in senior management in
for re-appointment. accordance with the criteria laid down.

• To ensure a transparent board nomination process

Declaration by Independent Directors
with the diversity of thought, experience, knowledge,
The Company received declaration from all the Independent perspective and gender in the Board.
Directors of the Company under Section 149(7) of the Act
• To determine remuneration based on the Company’s
and Regulation 25 of the SEBI Listing Regulations, confirming
size and financial position and trends and practices
that they meet the criteria of independence as provided in
on remuneration prevailing in peer companies, in
Section 149(6) of the Act and Regulation 16(1)(b) of SEBI Listing
the Pharma industry besides qualifications, skills,
Regulations and there has been no change in the circumstances
capabilities, etc.
affecting their status as Independent Directors of the Company.
Further, they have confirmed compliance to the code of conduct • To carry out evaluation of the performance of
for independent directors as prescribed in Schedule IV of the Directors, as well as Key Managerial and Senior
Act. In the opinion of the Board, the Independent Directors Management Personnel.
of the Company possess necessary expertise, integrity
• To provide them rewards linked directly to their effort,
and experience.
performance, dedication and achievement relating to
the Company’s operations.
Performance Evaluation
• To retain, motivate and promote talent and to ensure
The Board of Directors carried out an annual evaluation of
long term sustainability of talented managerial persons
its own performance, of the Committees of the Board and
and create competitive advantage.
of the individual directors including Independent Directors,
pursuant to the provisions of the Companies Act, 2013 and SEBI Policy on Nomination and Remuneration of Directors, Key/
Listing Regulations. Senior Managerial Personnel may be accessed on the Company’s
website at:
Performance evaluation was carried out on the basis of criteria
evolved, as provided by the Guidance Note on Board Evaluation https://www.divislabs.com/NominationRemunerationPolicy.pdf.
issued by Securities and Exchange Board of India, seeking inputs
from the Directors individually and the committees through a Remuneration details of Directors & KMP and
structured questionnaire which provides a valuable feedback Particulars of Employees
for contribution to the Board, improving Board effectiveness,
Pursuant to Section 197(12) of the Act, read with Rule 5(1) of
maximising strengths and highlighting areas for further
the Companies (Appointment and Remuneration of Managerial
improvement, etc.
Personnel) Rules, 2014, the prescribed particulars pertaining to
In a separate meeting of the Independent Directors, performance remuneration and other details are given in “Annexure – II” to
of the Chairperson, non-independent directors and the Board this Report.
as a whole was evaluated taking into account the views of the
The non-executive directors of the Company had no pecuniary
non-independent directors and the same was discussed in
relationship or transactions with the Company, other than sitting
the Board Meeting. Performance evaluation of Independent
fees, annual remuneration and reimbursement of expenses,
Directors is done by the entire Board of Directors (excluding the
if any.
Directors being evaluated).
In terms of the provisions of Section 197(12) of the Act read with
The details of the separate meeting of the Independent
Rules 5(2) and 5(3) of the Rules, a statement showing the names
Directors are reported in the Report on Corporate Governance
and other particulars of employees drawing remuneration in
which forms part of the Board’s Report.
excess of the limits set out in the said Rules forms part of this
report. Further, the report and the annual accounts are being
Policy on Directors’ Appointment and
sent to the Members excluding the aforesaid statement. In
Remuneration
terms of Section 136 of the Act, the said statement will be open
The Policy on appointment and remuneration of directors, key for inspection upon request by the Members. Any Member
managerial persons (KMP) and senior management including interested in obtaining such particulars may write to the
criteria for determining qualifications, positive attributes and Company Secretary at [email protected].
director’s independence as required under Section 178(3) of
33rd Annual Report 2022-23 | 97
Corporate Social Responsibility (CSR) Company’s code of conduct or ethics policy. The Policy provides
that the Company investigates such incidents, when reported,
The Company has been doing CSR activities for over the past
in an impartial manner and takes appropriate action to ensure
3 decades. The CSR initiatives of the Company during the year
that requisite standards of professional and ethical conduct
include promoting education, safe drinking water, preventive
are always upheld. This mechanism also provides for adequate
healthcare, village development, environmental sustainability,
safeguards against victimisation of director(s)/ employee(s)
support to differently abled, Swatch Bharath, livelihood
who avail the mechanism and also provide for direct access
enhancement, promotion of rural sports, etc.
to the Chairman of the Audit Committee in exceptional cases.
Corporate Social Responsibility Policy (CSR Policy) indicating the The Whistle Blower Policy may be accessed on the Company’s
activities to be undertaken by the Company was adopted by the website at: https://www.divislabs.com/WhistleBlowerPolicy.pdf.
Board on the recommendation of the CSR Committee. During
the year the CSR policy was amended to include recent changes Audit Reports
in the statutory requirements. The policy can be accessed at
• Report of the Statutory Auditors on the financial statements
https://www.divislabs.com/wp-content/uploads/2022/12/Divis-
for the year does not contain any qualification, reservation
CSR-Policy-1.pdf.
or adverse remark or disclaimer; or reporting of any offence
Report on Corporate Social Responsibility as per Rule 8 of or fraud.
Companies (Corporate Social Responsibility Policy) Rules, 2014
• 
The Secretarial Audit Report does not contain any
is prepared and the same is enclosed as “Annexure – III” to
qualification, reservation or adverse remark or disclaimer.
this Report.
• The Auditors have not reported any instances of frauds to
Business Responsibility and Sustainability the Audit Committee as prescribed under Section 143(12)
Report (BRSR) of the Act.

Pursuant to the Regulation 34 of SEBI Listing Regulations, BRSR

Statutory Auditors
describing the initiatives taken by the Company is enclosed as
part of this Report. M/s. Price Waterhouse Chartered Accountants LLP (Firm
Registration No. 012754N/ N500016), Chartered Accountants,
Conservation of Energy, Technology were appointed as statutory auditors of the Company to hold
Absorption and Foreign Exchange Earnings & office for a second term of five consecutive years from the
Outgo conclusion of the 32nd AGM of the Company held on August
22, 2022 till the conclusion of the 37th AGM to be held in the
Particulars required under Section 134 (3) (m) of the Act read
year 2027.
with Rule 8(3) of the Companies (Accounts) Rules, 2014 is given
in the “Annexure – IV” to this report.
Secretarial Audit
Corporate Governance Report Pursuant to provisions of Section 204 of the Act and the
Companies (Appointment and Remuneration of Managerial
The report on Corporate Governance as per Regulation 34(3)
Personnel) Rules, 2014, the Board of Directors of the Company
read with Schedule V of the SEBI Listing Regulations is included
has appointed Mr. V. Bhaskara Rao, Practicing Company Secretary
as a part of this Annual Report. The requisite certificate from
(CP No. 4182) as the Secretarial Auditor of the Company to
Mr. V. Bhaskara Rao, Practicing Company Secretary confirming
conduct the Secretarial audit for the financial year 2022-23. The
the compliance with the conditions of Corporate Governance is
Secretarial Audit report for the financial year 2022-23 is annexed
attached to the report on Corporate Governance.
herewith as “Annexure - V”.

Audit Committee
Cost Audit
The details pertaining to the role, objective and composition of
Pursuant to the Section 148 of the Act and Rule 3 of the
the Audit Committee are included in the Corporate Governance
Companies (Cost Records and Audit) Rules, 2014 as amended,
Report forming part of this Annual Report.
the Company maintains cost records in its books of account.
As per Rule 4 of the said rules, the requirement for cost audit
Vigil Mechanism
is not applicable to a company which is covered under Rule 3,
The Company has established a vigil mechanism and formulated and whose revenue from exports, in foreign exchange, exceeds
a Whistle Blower Policy to provide mechanism for directors and seventy five per cent of its total revenue or which is operating
employees of the Company to report their concerns about any from a special economic zone. However, the Company has
unethical behavior, actual or suspected fraud or violation of the voluntarily opted for audit of cost records and appointed
M/s. E.V.S & Associates, Cost Accountants as Cost Auditors.

98
 Corporate Overview Statutory Reports Financial Statements

Annual Return • The information with respect to Compensation, Nomination

and Remuneration Committee, Stakeholders Relationship
In terms of Section 92(3) of the Act and Rule 12 of the
Committee, Risk management Committee are disclosed
Companies (Management and Administration) Rules, 2014,
in the Corporate Governance Report forming part of the
the Annual Return of the Company as on March 31, 2023 is
Annual Report.
available on the Company’s website and can be accessed at
https://www.divislabs.com/annual-return/2022-23.pdf • 
The Company has followed the applicable Secretarial
Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the
Other Disclosures Board of Directors’ and ‘General Meetings’ respectively.

• Information on Unclaimed Dividend and transfer to IEPF is • There was no application made or proceeding pending
provided in the Corporate Governance Report. against the Company under the Insolvency and Bankruptcy
Code, 2016 (31 of 2016) during the year under review.
• No Company has become or ceased to be its subsidiary,
joint venture or associate company during the year.
Acknowledgements
• No significant and material orders were passed by the
Your Directors take this opportunity to thank the customers,
regulators or courts or tribunals impacting the going
shareholders, suppliers, bankers, business associates, financial
concern status and Company’s operations in future.
institutions and Central and State Governments for their
• The Company has complied with provisions relating to the consistent support and encouragement to the Company.
constitution of Internal Complaints Committee under the
We are sure you will join our Directors in conveying our sincere
Sexual Harassment of Women at Workplace (Prevention,
appreciation to employees at all levels of the Company and its
Prohibition and Redressal) Act, 2013 and rules made
subsidiaries, for their hard work, dedication and commitment,
thereunder and during the year under review, there were
in particular during this unprecedented year, thereby ensuring
no complaints received or pending.
uninterrupted supply of life saving medicines across the globe.

For and on behalf of the Board

Dr. Ramesh B.V. Nimmagadda Dr. Murali K. Divi

Date: May 20, 2023 Chairman Managing Director
Place: Hyderabad DIN: 07854042 DIN: 00005040

33rd Annual Report 2022-23 | 99

ANNEXURE – I
FORM AOC-1

Statement Containing Salient Features of the Financial Statement of Subsidiaries

Part A Subsidiaries
(C in lakhs)
Divi’s
Divis Laboratories
Sl. No Particulars Laboratories
(USA) Inc.
Europe AG.
1 The date since when Subsidiary was acquired February 01, 2006 February 06, 2006
2 Reporting period for the Subsidiary April 01, 2022 to April 01, 2022 to
March 31, 2023 March 31, 2023
3 Reporting Currency and Exchange rate as on the last date of the relevant financial year 1 USD = C82.2169 1 CHF = C89.915
Balance sheet 1 Balance sheet 1
USD = C80.3341 CHF = C84.1980
for P&L for P&L
4 Share Capital 87 404
5 Reserves & Surplus 8,005 1,876
6 Total assets 20,109 23,114
7 Total liabilities 12,017 20,834
8 Investments - -
9 Turnover 23,710 27,820
10 Profit before taxation 2,015 818
11 Provision for taxation 45 89
12 Profit after taxation 1,970 729
13 Other Comprehensive Income after tax for the year 520 184
14 Total Comprehensive Income for the year 2,490 913
15 Proposed Dividend - -
16 % of shareholding 100% 100%

For and on behalf of the Board

Dr. Ramesh B.V. Nimmagadda Dr. Murali K. Divi

Date: May 20, 2023 Chairman Managing Director
Place: Hyderabad DIN: 07854042 DIN: 00005040

100
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE – II

Information Pursuant to Section 197(12) of the Act and Rule 5 (1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, as Amended
(i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year,
the percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary for the year are given below:
Ratio of
remuneration
Remuneration of of each Director %increase/
Director/ KMP for to median (decrease) in
Sl. No Name of Director/KMP and Designation
the financial year remuneration of remuneration in
(` in lakhs) employees of the the financial year
Company for the
financial year
1 Dr. Murali K. Divi 7,049 1,604 -36.15%
Managing Director
2 Mr. N.V. Ramana 3,631 826 -35.47%
Executive Director
3 Dr. Kiran S. Divi 2,479 564 -34.17%
Whole-time Director and Chief Executive Officer
4 Ms. Nilima Prasad Divi 2,463 560 -34.33%
Whole-time Director (Commercial)
5 Mr. Madhusudana Rao Divi 115 26 0.00%
Whole-time Director (Projects)
6 Dr. G. Suresh Kumar 32 7 0.00%
Independent Director
7 Mr. R. Ranga Rao 34 8 0.00%
Independent Director
8 Mr. K.V.K. Seshavataram 30 7 3.45%
Independent Director
9 Dr. Ramesh B.V. Nimmagadda 32 7 -3.03%
Non- Executive Chairman & Independent Director
10 Dr. S. Ganapaty 28 6 -3.45%
Independent Director
11 Prof. Sunaina Singh 25 6 -7.41%
Independent Director
12 Mr. K.V. Chowdary 30 7 -9.09%
Independent Director
11 Mr. L. Kishore Babu 322 N.A. 10.00%
Chief Financial Officer
12 Mr. M. Satish Choudhury 38 N.A. 40.17%
Company Secretary
Note: Independent Directors were paid sitting fees @ C1 lakh per meeting for attending the Board and its Committee Meetings and
annual remuneration of C20 lakhs per annum.
(ii) The percentage increase in the median remuneration of employees in the financial year was 8.72%.
(iii) As on March 31, 2023, the Company has 7,376 permanent employees on the rolls of Company as defined under said Rule 5(1).
(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the financial year was
17.60% whereas there was decrease of 34.62% in the managerial remuneration.
(v) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel, and other
Employees.

For and on behalf of the Board

Dr. Ramesh B.V. Nimmagadda Dr. Murali K. Divi

Date: May 20, 2023 Chairman Managing Director
Place: Hyderabad DIN: 07854042 DIN: 00005040

33rd Annual Report 2022-23 | 101

ANNEXURE – III

Annual Report on CSR Activities Undertaken During the Financial Year 2022-2023

1. Brief outline on CSR Policy of the Company. • To take up programmes that benefit the neighboring

Divi’s strongly believe that industrial growth must communities in enhancing quality of life and economic
contribute to the upliftment of the society around. Hence, well-being of the local populace.
the main focus of CSR is communities or villages around the • To facilitate a holistic approach base for a sustainable
manufacturing sites. improvement in the social, economic and environmental
The objective of Divi’s CSR Policy is: situation of the needy and underserved.

• To make sure the business remains sustainable and • Also embedded in this objective is support to the
continues to contribute to the welfare of all stakeholders. marginalised cross section of the society by providing
opportunities to improve their quality of life.

The CSR projects undertaken are within the broad
framework of Schedule VII of the Companies Act, 2013.

2. Composition of CSR Committee:

Number of meetings of CSR
Designation /Nature of Number of meetings of CSR
Sl. No. Name of Director Committee attended during
Directorship Committee held during the year
the year
1 Mr. R. Ranga Rao Chairman/Independent Director 4 4
2 Dr. Murali K. Divi Member/Managing Director 4 4
3 Dr. Ramesh B.V. Nimmagadda Member/Independent Director 4 4
4 Mr. Madhusudana Rao Divi Member/Whole-time Director 4 4
(Projects)

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.
Composition of CSR Committee https://www.divislabs.com/investor-relations/corporate-governance/
composition-of-committees/
CSR Policy https://www.divislabs.com/CSR-Policy.pdf
CSR projects approved by the Board https://www.divislabs.com/csr-and-sustainability/csr/

4. Provide the executive summary along with web-link(s) 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.
The Company has been conducting internal assessments for the CSR Projects undertaken. As per the statutory
requirement, Impact assessment of the following CSR projects was carried out by an independent agency,
M/s. Deeksha, a registered non-profit society;

Year of Expenditure
Sl. No Name of the Project Web-link(s)
implementation (in `lakhs)
1 Development of plantation in 26 villages of Choutuppal Mandal 2020-2021 259 Report available at https://
2021-2022 77 www.divislabs.com/csr-
and-sustainability/csr/
2 Distribution of duel desk benches to the schools in Choutuppal 2021-2022 123
Mandal
3 Development of burial ground in Machilipatnam 2021-2022 160
4 Support to M/s. Alai Foundation for distribution of oxygen 2021-2022 100
concentrators to hospitals

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 Corporate Overview Statutory Reports Financial Statements

5. a) Average net profit of the company as per Section 135(5): C2,69,227 lakhs
b) Two percent of average net profit of the Company as per Section 135(5): C5,385 lakhs

c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil

d) Amount required to be set off for the financial year, if any: C293 lakhs

e) Total CSR obligation for the financial year (b+c-d): C5,092 lakhs

6. a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): C4,125 lakhs

b) Amount spent in Administrative Overheads: C96 lakhs

c) Amount spent on Impact Assessment, if applicable: C3 lakhs

d) Total amount spent for the Financial Year (a+b+c): C4,224 lakhs

(e) CSR amount spent or unspent for the financial year:

Amount unspent (in ` lakhs)

Total amount spent
for the Financial Year Total amount transferred to unspent CSR Amount transferred to any fund specified under Schedule VII as
(in ` lakhs) account as per section 135(6) per second proviso to section 135(5)
Amount Date of transfer Name of the Fund Amount. Date of transfer
C4,224 lakhs C868 lakhs April 28, 2023 - - -

f) Excess amount for set off, if any: Nil

7. Details of Unspent CSR amount for the preceding three financial years: Nil

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the
Financial Year: No

9. 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

Dr. Murali K. Divi R. Ranga Rao

Place: Hyderabad Managing Director Chairman CSR Committee
Date: May 20, 2023 DIN: 00005040 DIN: 06409742

33rd Annual Report 2022-23 | 103

ANNEXURE – IV

Information Pursuant to Section 134(3)(M) of the Companies Act 2013 read with the Companies
(Accounts) Rules, 2014.

A. Conservation of Energy • Replacing Charge Tanks with mass-flow-

(i) Steps taken or impact on conservation of energy meters to transfer material from Storage Tanks
to process vessels
 
Energy conservation refers to reducing energy
consumption through optimal energy utilisation • Replacement of higher capacity pumps with
technologies, enhancing energy availability, resource lower capacity
efficiency as also use of renewable energy.
• Replacing Centrifuges (CFs) & Fluidised Bed
 
A dedicated energy management team focuses Dryers (FBDs) with Agitated Nutsche Filter
on energy management and constantly reviews Driers (ANFDs)
the progress made. It has implemented a number
• Arranging Heat Exchanger at Multiple Effect
of energy conservation initiatives. Some of key
Evaporators (MEE) for recovering heat energy
initiatives include:
• Optimising process cooling temperatures
• Installing Oxygen analysers for process vessels
• Arranging Variable Frequency Drives (VFDs)
• Providing chilled water circulation for Sub-
Coolers and Heat Exchangers instead of • Arranging table top pH meters at process
brine solution areas for sample analysis

• Arranging dry-claw-vacuum pumps instead of (ii) Steps taken by the Company for utilising alternate
steam ejectors sources of energy

• Replacing wet-ice with brine solution for • Replacing electrical lights with solar lights at
selected process operations garden area

• Replacing Nitrogen with Hot air for drying • Arranging transparent roof-top sheets at
process in selected operations manufacturing facilities

(iii) The capital investment on energy conservation

equipment is H672 lakhs during the year.

B. Technology Absorption

1. Efforts in brief, made towards The Company has its own R&D Centres which develop technologies and processes for
technology absorption Active Pharmaceutical Ingredients and drug intermediates and these technologies are
implemented at the Company’s manufacturing facilities.
2. Benefits derived as a result of the The Company constantly reviews, optimises and improves its processes for its product
range. These efforts have resulted in lower cost of production, achieve consistent exports
above efforts
and be competitive in the global market. The process upgradations also brought about
improvement in green chemistry by reducing reagents, minimise wastes and increasing
recoveries.
3. 
Information regarding import There is no import of technology.
of technology during the last
three years.

4. Expenditure incurred on research and development

(C in lakhs)
Particulars 2022-23 2021-22
Capital - 410
Recurring 6,934 5,495
Total 6,934 5,905
Total R&D Expenditure as a % of Sales Revenue 0.91% 0.66%

104
 Corporate Overview Statutory Reports Financial Statements

C. Foreign Exchange Earnings and Outgo

(C in lakhs)
Particulars 2022-23 2021-22
Foreign Exchange earnings 6,65,368 7,84,453
Foreign Exchange outgo:
- CIF Value of Imports 1,53,781 1,76,755
- Expenditure in Foreign Currency 3,366 2,779
Net Foreign Exchange Earning (NFE) 5,08,221 6,04,919
NFE/Earnings % 76% 77%

For and on behalf of the Board

Dr. Ramesh B.V. Nimmagadda Dr. Murali K. Divi

Date: May 20, 2023 Chairman Managing Director
Place: Hyderabad DIN: 07854042 DIN: 00005040

33rd Annual Report 2022-23 | 105

ANNEXURE – V
FORM NO. MR-3
Secretarial Audit Report for the Financial Year Ended 31st March 2023
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To, (iv) Foreign Exchange Management Act, 1999 and the rules
The Members of and regulations made there under to the extent of Foreign
Divi’s Laboratories Limited Direct Investment, Overseas Direct Investment and
CIN: L24110TG1990PLC011854 External Commercial Borrowings;
1-72/23(P)/DIVIS/303, Divi Towers,
(v) The following Regulations and Guidelines prescribed under
Cyber Hills, Gachibowli,
the Securities and Exchange Board of India Act, 1992 (‘SEBI
Hyderabad -500032.
Act’):- vis
We have conducted the Secretarial Audit of the compliance

a. 
The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to good
(Substantial Acquisition of Shares and Takeovers)
corporate practices by Divi’s Laboratories Limited (hereinafter
Regulations, 2011;
called the Company). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating the 
b. 
The SEBI (Listing Obligations and Disclosure
corporate conducts/statutory compliances and expressing our Requirements) Regulations, 2015;
opinion thereon.

c. 
The Securities and Exchange Board of India
Based on our verification of the Company’s books, papers, minute (Prohibition of Insider Trading) Regulations, 2015;
books, forms and returns filed and other records maintained
d. The Securities and Exchange Board of India (Issue of
by the Company and also the information provided by the
Capital and Disclosure Requirements) Regulations,
Company, its officers, agents and authorised representatives
2018 and amendments from time to time*;
during the conduct of secretarial audit, the explanations and
clarifications given to us and the representations made by the e. The Securities and Exchange Board of India (Share
Management and considering the relaxations granted by the Based Employee Benefits) Regulations, 2014 which
Ministry of Corporate Affairs and Securities and Exchange Board was replaced by the Securities and Exchange Board
of India warranted due to the spread of the COVID-19 pandemic. of India (Share Based Employee Benefits and Sweat
We hereby report that in our opinion, the Company has, during Equity) Regulations, 2021*;
the audit period covering the financial year ended on March 31,
f. The Securities and Exchange Board of India (Issue and
2023 complied with the statutory provisions listed hereunder
Listing of Debt Securities) Regulations, 2008 which
and also that the Company has proper Board-processes and
was replaced by the Securities and Exchange Board of
compliance-mechanism in place to the extent, in the manner
India (Issue and Listing of Non-Convertible Securities)
and subject to the reporting made hereinafter:
Regulations, 2021*;
We have examined the books, papers, minute books, forms and
g. The Securities and Exchange Board of India (Registrars
returns filed and other records maintained by Divi’s Laboratories
to an Issue and Share Transfer Agents) Regulations,
Limited (“the Company”) for the financial year ended on March
1993 regarding the Companies Act and dealing
31, 2023, according to the provisions of:
with client;
(i) The Companies Act, 2013 (the Act) and the rules made
h. The Securities and Exchange Board of India (Delisting
there under;
of Equity Shares) Regulations, 2009 which was
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and replaced by the Securities and Exchange Board of
the rules made there under; India (Delisting of Equity Shares) Regulations, 2021;*

(iii) The Depositories Act, 1996 and the Regulations and Bye-  
i. 
The Securities and Exchange Board of India
laws framed there under; (Buyback of Securities) Regulations, 2018*;


*Not applicable to the Company during the
Audit period

106
 Corporate Overview Statutory Reports Financial Statements

(vi) Other applicable Acts:  dd. Factories and Establishment (National, Festival
and Other Holidays) Acts of the applicable states,
a. The Factories Act, 1948;
where the company has establishments;
b. The Industrial Disputes Act,1947;
 ee. The Sexual Harassment of Women at Work Place
c. The Payment of Wages Act, 1936; (Prevention, Prohibition and Redressal) Act, 2013;

d. The Minimum Wages Act,1948;  ff. Labour Welfare Fund Acts of the applicable
states, where the company has establishments;
e. The Employees Provident Funds and Miscellaneous
Provisions Act, 1952;  gg. Conservation of Foreign Exchange and Prevention
of Smuggling Act, 1974
f. The Payment of Bonus Act, 1965;
We have relied on the representations made by the
g. The Payment of Gratuity Act, 1972;
Company, its officers and reports of Internal Auditors
h. The Contract Labour (Regulation & Abolition) Act, 1970; for systems and mechanism framed by the Company
for compliances under other acts, Laws and regulations
i. The Maternity Benefit Act, 1961;
applicable to the Company as mentioned above.
j. The Child Labour (Prohibition & Regulation) Act, 1986;
We have also examined compliance with the applicable
k. The Industrial Employment (Standing Order) Act, 1946; clauses of the following:

l. The Employee Compensation Act, 1923;  (i) Secretarial Standards issued by The Institute of
Company Secretaries of India
m. The Apprentices Act, 1961;
 
(ii) 
The Listing Agreements entered into by the
n. Equal Remuneration Act, 1976;
Company with Stock Exchanges and Securities
o. The Employment Exchange (Compulsory Notification and Exchange Board of India (Listing Obligations
of Vacancies) Act, 1956; and Disclosure Requirements) Regulations, 2015.

p. The Customs Act, 1962;  We further report that the Board of Directors of the
Company has duly constituted with proper balance
q. 
The Foreign Trade (Development and Regulation)
of Executive Directors, Non-Executive Directors
Act, 1992;
and Independent Directors. The changes in the
r. The Shops and Establishment Act, 1988; composition of the Board of Directors/Committees
that took place during the period under review were
s. The Water (Prevention and control of pollution) Act
carried out in compliance with the provisions of
1974, The Air (Prevention and control of pollution) Act
the Act.
1981 and The Environment Protection Act, 1986 and
rules made thereunder;  Adequate notice is given to all directors to schedule
the Board Meetings, agenda and detailed notes on
t. The Public Liability Insurance Act, 1991;
agenda were sent at least seven days in advance and
u. The Explosive Act, 1884; a system exists for seeking and obtaining further
information and clarifications on the agenda items
v. The Indian Boilers Act, 1923;
before the meeting and for meaningful participation
w. The Patents Act, 1970; at the meeting.

x. The Biological Diversity Act, 2002;  Majority decisions are carried out unanimously and
there were no dissenting members during the year
y. The Food Safety and Standards Act, 2006;
under review.
z. Special Economic Zones Act, 2005
 We further report that there are adequate systems
aa. The Drug and Cosmetics Act, 1940; and processes in the Company commensurate with
the size and operations of the Company to monitor
 bb. The Narcotic Drugs and Psychotropic Substances
and ensure compliance with applicable laws, rules,
Act, 1985;
regulations and guidelines.
 cc. Employee’s State Insurance Act, 1948;

33rd Annual Report 2022-23 | 107

  We further report that, the compliance by the Company of applicable financial laws like direct and indirect tax laws and
maintenance of financial records and books of accounts has not been reviewed in this audit since the same have been
subject to review by statutory financial audit and other designated professionals.

 We further report that, as informed, the Company has responded appropriately to notices/queries received from various
statutory/regulatory authorities including initiating actions for corrective measures, wherever found necessary.

 We further report that during the review period, no major action having a bearing on the Company’s affairs in pursuance
of the above-referred laws, rules, regulations, guidelines, standards, etc. have taken place.

V. Bhaskara Rao and Co.,

Company Secretaries

V. Bhaskara Rao
Proprietor
FCS No.5939, CP No.4182
Peer Review No.670/2020
UDIN: F005939E000342231
Place: Hyderabad
Date: May 20, 2023

108
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE – A

To, 4. Wherever required, we have obtained the Management

The Members of representation about the compliance of laws, rules and
Divi’s Laboratories Limited regulations and happening of events etc.
CIN: L24110TG1990PLC011854
5.  
The compliance of the provisions of Corporate and
1-72/23(P)/DIVIS/303, Divi Towers,
other applicable laws, rules, regulations, standards is
Cyber Hills, Gachibowli,
the responsibility of management. Our examination was
Hyderabad -500032.
limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to

Our report of even date is to be read along with this letter. the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted
1. Maintenance of secretarial records is the responsibility of
the affairs of the Company.
the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on
our audit.
V. Bhaskara Rao and Co.,
2. We have followed the audit practices and processes as Company Secretaries
were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records. V. Bhaskara Rao
The verification was done on test basis to ensure that Proprietor
correct facts are reflected in secretarial records. We believe FCS No.5939, CP No.4182
that the processes and practices, we followed provide a Peer Review No.670/2020
reasonable basis for our opinion. UDIN:F005939E000342231

3. We have not verified the correctness and appropriateness Place: Hyderabad
of financial records and Books of Accounts of the Company. Date: May 20, 2023

33rd Annual Report 2022-23 | 109

Independent Auditor’s Report

To the Members of Divi’s Laboratories Limited

Report on the Audit of the Standalone Financial whole and in forming our opinion thereon, and we do not
Statements provide a separate opinion on these matters.

Opinion A. Appropriateness of Recognition of Revenue from Sale

of Products in Correct Period
1. We have audited the accompanying standalone financial
statements of Divi’s Laboratories Limited (“the Company”), Refer to Note 2.4(i) of the summary of significant accounting
which comprise the Standalone Balance sheet as at March policies to the standalone financial statements.
31, 2023, and the Standalone Statement of profit and loss The Company has earned revenue of `7,50,437 lakhs from
(including Other comprehensive income), the Standalone sale of products during the year. Revenue in respect of
Statement of changes in equity and the Standalone sale of products is recognised when the customer obtains
statement of cash flows for the year then ended, and control of the company’s product, which occurs at a point
Notes to the Standalone Financial statements, including in time.
a summary of significant accounting policies and other
explanatory information. The company has many customers operating in various
geographies and sale contracts with customers have
2. In our opinion and to the best of our information and differing incoterms which influence the timing of
according to the explanations given to us, the aforesaid recognition of revenue.
standalone financial statements give the information
required by the Companies Act, 2013 (“the Act”) in the  he above was considered to be a key audit matter, since
T
manner so required and give a true and fair view in revenue is one of the key performance indicators for the
conformity with the accounting principles generally Company and there is a risk of recognition of revenue
accepted in India, of the state of affairs of the Company as at in an incorrect period given the differing terms with
March 31, 2023, total comprehensive income (comprising the customers.
of profit and other comprehensive income), changes in How our Audit Addressed the Key Audit Matter
equity and its cash flows for the year then ended.
Our procedures included the following:
Basis for Opinion
• We evaluated relevant accounting policies and
3. We conducted our audit in accordance with the Standards assessed whether it’s in compliance with applicable
on Auditing (SAs) specified under Section 143(10) of the accounting standards.
Act . Our responsibilities under those Standards are
further described in the “Auditor’s responsibilities for • We have performed walkthrough and obtained detailed
the audit of the standalone financial statements” section understanding of company’s revenue recognition process.
of our report. We are independent of the Company in • We evaluated the design, implementation and tested the
accordance with the Code of Ethics issued by the Institute operating effectiveness of controls around recognition of
of Chartered Accountants of India together with the revenue from sale of products.
ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of • Tested revenue from sale of products including sales
the Act and the Rules thereunder, and we have fulfilled occurred close to year end period, to their underlying
our other ethical responsibilities in accordance with supporting documents like purchase order, invoice, shipping
these requirements and the Code of Ethics. We believe documents, incoterms etc., on sample basis to ensure
that the audit evidence we have obtained is sufficient and whether revenue has been recognised in correct period.
appropriate to provide a basis for our opinion. • We verified the presentation and disclosures are in
Key Audit Matters accordance with applicable accounting standards and
reporting framework.
4.  ey audit matters are those matters that, in our
K
professional judgement, were of most significance in our Our procedures did not identify any sales that is
audit of the standalone financial statements of the current inappropriately recognised.
period. These matters were addressed in the context
of our audit of the standalone financial statements as a

110
 Corporate Overview Statutory Reports Financial Statements

B. Appropriateness of capitalisation of costs as per Ind Other Information

AS 16 Property, Plant and Equipment 5. The Company’s Board of Directors is responsible for the
 efer to Note 3 (c) & 4 (c) to the standalone
R other information. The other information comprises the
financial statements. information included in the Management Discussion and
Analysis, Board’s report, Business Responsibility and

During the year, the company has incurred capital
sustainability Report, Performance highlights, corporate
expenditure aggregating to `67,464 lakhs on Property,
social responsibility report and Corporate Governance
Plant and Equipment (representing Plant and Machinery
report, but does not include the standalone financial
& Roads and Buildings) and `48,335 lakhs Capital work
statements and our auditor’s report thereon.
in progress towards assets under construction at
various locations. Our opinion on the standalone financial statements does
not cover the other information and we do not express
With regard to capitalisation of Plant and Machinery, Roads
any form of assurance conclusion thereon.
and Buildings and Capital work in progress, Management
has identified specific expenditure including employee In connection with our audit of the standalone financial
costs and other specific overheads relating to each of the statements, our responsibility is to read the other
assets and has applied judgement to assess if the costs information and, in doing so, consider whether the other
incurred in relation to these assets meet the recognition information is materially inconsistent with the standalone
criteria on Property, Plant and Equipment in accordance financial statements or our knowledge obtained in the
with Ind AS 16. audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that
 his has been determined as a key audit matter due to
T
there is a material misstatement of this other information,
the significance of the capital expenditure during the year
we are required to report that fact.
and the risk that the elements of costs that are eligible for
capitalisation are not appropriately capitalised or costs We have nothing to report in this regard.
capitalised are not in accordance with the recognition
Responsibilities of Management and those Charged with
criteria provided in Ind AS 16.
Governance for the Standalone Financial Statements
How our Audit Addressed the Key Audit Matter 6. The Company’s Board of Directors is responsible for the
Our procedures included the following: matters stated in Section 134(5) of the Act with respect to
the preparation of these standalone financial statements
• Understood, evaluated and tested the design and operating
that give a true and fair view of the financial position,
effectiveness of key controls relating to capitalisation of
financial performance, changes in equity and cash flows of
various costs incurred, including in relation to Roads and
the Company in accordance with the accounting principles
Building, Plant and Machinery and Capital work-in-progress.
generally accepted in India, including the Accounting
• Tested the direct and indirect costs capitalised, on a Standards specified under Section 133 of the Act. This
sample basis, with the underlying supporting documents to responsibility also includes maintenance of adequate
ascertain the nature of costs and the basis for allocation, accounting records in accordance with the provisions of the
where applicable, and evaluated whether they meet the Act for safeguarding of the assets of the Company and for
recognition criteria provided in the Ind AS 16, Property, preventing and detecting frauds and other irregularities;
Plant and Equipment. selection and application of appropriate accounting
policies; making Judgements and estimates that are
• Tested, on a sample basis, the appropriateness of employee
reasonable and prudent; and design, implementation and
costs capitalised in relation to Plant and Machinery
maintenance of adequate internal financial controls, that
and Roads and Buildings based on verification of their
were operating effectively for ensuring the accuracy and
timesheets etc.
completeness of the accounting records, relevant to the
• Tested other costs debited to Standalone Statement of preparation and presentation of the standalone financial
profit and loss account, on a sample basis, to ascertain statements that give a true and fair view and are free from
whether these meet the criteria of capitalisation material misstatement, whether due to fraud or error.

• Assessed the adequacy of disclosures in the standalone In preparing the standalone financial statements,
financial statements. management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
Our procedures did not identify, any costs that are eligible
applicable, matters related to going concern and using the
for capitalisation are not appropriately capitalised or costs
going concern basis of accounting unless management
capitalised are not in accordance with the recognition criteria
either intends to liquidate the Company or to cease
provided in Ind AS 16. operations, or has no realistic alternative but to do

33rd Annual Report 2022-23 | 111

 so. Those Board of Directors are also responsible for report. However, future events or conditions may cause
overseeing the Company’s financial reporting process. the Company to cease to continue as a going concern.
Auditor’s Responsibilities for the Audit of the Standalone • Evaluate the overall presentation, structure and content
Financial Statements of the standalone financial statements, including the
7. Our objectives are to obtain reasonable assurance about disclosures, and whether the standalone financial
whether the standalone financial statements as a whole statements represent the underlying transactions and
are free from material misstatement, whether due to fraud events in a manner that achieves fair presentation.
or error, and to issue an auditor’s report that includes
9. 
We communicate with those charged with governance
our opinion. Reasonable assurance is a high level of
regarding, among other matters, the planned scope and
assurance but is not a guarantee that an audit conducted
timing of the audit and significant audit findings, including
in accordance with SAs will always detect a material
any significant deficiencies in internal control that we
misstatement when it exists. Misstatements can arise from
identify during our audit.
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to 10. 
We also provide those charged with governance with
influence the economic decisions of users taken on the a statement that we have complied with relevant
basis of these standalone financial statements. ethical requirements regarding independence, and to
8.  s part of an audit in accordance with SAs, we exercise
A communicate with them all relationships and other
professional judgement and maintain professional matters that may reasonably be thought to bear on our
scepticism throughout the audit. We also: independence, and where applicable, related safeguards.

• Identify and assess the risks of material misstatement 11. From the matters communicated with those charged with
of the standalone financial statements, whether due to governance, we determine those matters that were of
fraud or error, design and perform audit procedures most significance in the audit of the standalone financial
responsive to those risks, and obtain audit evidence statements of the current period and are therefore the
that is sufficient and appropriate to provide a basis key audit matters. We describe these matters in our
for our opinion. The risk of not detecting a material auditor’s report unless law or regulation precludes
misstatement resulting from fraud is higher than for public disclosure about the matter or when, in extremely
one resulting from error, as fraud may involve collusion, rare circumstances, we determine that a matter should
forgery, intentional omissions, misrepresentations, or not be communicated in our report because the
the override of internal control. adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
• Obtain an understanding of internal control relevant to
such communication.
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3) Report on other Legal and Regulatory Requirements
(i) of the Act, we are also responsible for expressing our 12. As required by the Companies (Auditor’s Report) Order,
opinion on whether the company has adequate internal 2020 (“the Order”), issued by the Central Government of
financial controls with reference to standalone financial India in terms of sub-section (11) of Section 143 of the Act,
statements in place and the operating effectiveness of we give in the “Annexure B” a statement on the matters
such controls. specified in paragraphs 3 and 4 of the Order, to the
• Evaluate the appropriateness of accounting policies extent applicable.
used and the reasonableness of accounting estimates 13. As required by Section 143(3) of the Act, we report that:
and related disclosures made by management.
(a) We have sought and obtained all the information and
• Conclude on the appropriateness of management’s explanations which to the best of our knowledge and
use of the going concern basis of accounting and, belief were necessary for the purposes of our audit.
based on the audit evidence obtained, whether
a material uncertainty exists related to events or (b) In our opinion, proper books of account as required by
conditions that may cast significant doubt on the law have been kept by the Company so far as it appears
Company’s ability to continue as a going concern. If from our examination of those books.
we conclude that a material uncertainty exists, we
(c) 
Standalone Balance sheet, Standalone Statement of
are required to draw attention in our auditor’s report
profit and loss (including Other comprehensive income),
to the related disclosures in the standalone financial
Standalone Statement of changes in equity and the
statements or, if such disclosures are inadequate, to
Standalone statement of cash flows dealt with by this
modify our opinion. Our conclusions are based on the
report are in agreement with the books of account.
audit evidence obtained up to the date of our auditor’s

112
 Corporate Overview Statutory Reports Financial Statements

(d) In our opinion, the aforesaid standalone financial (b) 

The management has represented that,
statements comply with the Accounting Standards to the best of its knowledge and belief, as
specified under Section 133 of the Act. disclosed in the notes to the accounts, no
funds have been received by the Company
(e) On the basis of the written representations received from
from any person(s) or entity(ies), including
the directors as on March 31, 2023, taken on record by the
foreign entities (“Funding Parties”), with the
Board of Directors, none of the directors is disqualified as
understanding, whether recorded in writing or
on March 31, 2023, from being appointed as a director in
otherwise, that the Company shall, whether,
terms of Section 164(2) of the Act.
directly or indirectly, lend or invest in other
(f)  ith respect to the adequacy of the internal financial
W persons or entities identified in any manner
controls with reference to standalone financial statements whatsoever by or on behalf of the Funding
of the Company and the operating effectiveness of such Party (“Ultimate Beneficiaries”) or provide any
controls, refer to our separate report in “Annexure A”. guarantee, security or the like on behalf of the
Ultimate Beneficiaries (Refer Note 39(v)(B) to the
(g) 
With respect to the other matters to be included in
standalone financial statements); and
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014 (as amended), (c) 
Based on such audit procedures that we
in our opinion and to the best of our information and considered reasonable and appropriate in
according to the explanations given to us: the circumstances, nothing has come to our
notice that has caused us to believe that the
i. The Company has disclosed the impact of pending
representations under sub-clause (a) and (b)
litigations on its financial position in its standalone
contain any material misstatement
financial statements – Refer Note 38 to the
standalone financial statements. v. The dividend declared and paid during the year by
the Company is in compliance with Section 123 of
ii. 
The Company was not required to recognise a
the Act.
provision as at March 31, 2023 under the applicable
law or accounting standards, as it does not have any vi. As proviso to Rule 3(1) of the Companies (Accounts)
material foreseeable losses on long-term contract. Rules, 2014 (as amended), which provides for books
The Company did not have any derivative contracts of accounts to have the feature of audit trail, edit
as at March 31, 2023. log and related matters in the accounting software
used by the Company, is applicable for the Company
iii. There has been no delay in transferring amounts,
only with effect from financial year beginning April
required to be transferred, to the Investor Education
1, 2023, the reporting under clause (g) of Rule 11 of
and Protection Fund by the Company during the year.
the Companies (Audit and Auditors) Rules, 2014 (as
iv. (a) The management has represented that, to the amended), is currently not applicable.
best of its knowledge and belief, as disclosed
14. T
 he Company has paid/ provided for managerial
in the notes to the accounts, no funds have
remuneration in accordance with the requisite approvals
been advanced or loaned or invested (either
mandated by the provisions of Section 197 read with
from borrowed funds or share premium or any
Schedule V to the Act.
other sources or kind of funds) by the Company
to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”),
For Price Waterhouse Chartered Accountants LLP
with the understanding, whether recorded
Firm Registration Number: 012754N/N500016
in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly, lend or N.K. Varadarajan
invest in other persons or entities identified in Partner
any manner whatsoever by or on behalf of the Place: Hyderabad  Membership Number: 90196
Company (“Ultimate Beneficiaries”) or provide Date: May 20, 2023  UDIN: 23090196BGYZIV2663
any guarantee, security or the like on behalf of
the Ultimate Beneficiaries (Refer Note 39(v)(A) to
the standalone financial statements);

33rd Annual Report 2022-23 | 113

Annexure A to Independent Auditor’s Report
Referred to in paragraph 13(f) of the Independent Auditor’s Report of even date to the members of Divi’s Laboratories Limited
on the standalone financial statements for the year ended March 31, 2023

Report on the Internal Financial Controls with internal financial controls with reference to financial
reference to Standalone Financial Statements statements was established and maintained and if such
under clause (i) of sub-section 3 of Section 143 controls operated effectively in all material respects.
of the Act 4. Our audit involves performing procedures to obtain audit
1. We have audited the internal financial controls with evidence about the adequacy of the internal financial
reference to standalone financial statements of Divi’s controls system with reference to standalone financial
Laboratories Limited (“the Company”) as of March 31, statements and their operating effectiveness. Our audit
2023 in conjunction with our audit of the standalone of internal financial controls with reference to standalone
financial statements of the Company for the year ended financial statements included obtaining an understanding
on that date. of internal financial controls with reference to standalone
financial statements, assessing the risk that a material
Management’s Responsibility for Internal weakness exists, and testing and evaluating the design
Financial Controls and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on
2. 
The Company’s management is responsible for the auditor’s judgement, including the assessment of the
establishing and maintaining internal financial controls risks of material misstatement of the standalone financial
based on the internal control over financial reporting statements, whether due to fraud or error.
criteria established by the Company considering the
essential components of internal control stated in the 5. We believe that the audit evidence we have obtained is
Guidance Note on Audit of Internal Financial Controls sufficient and appropriate to provide a basis for our audit
Over Financial Reporting (“the Guidance Note”) issued by opinion on the Company’s internal financial controls
the Institute of Chartered Accountants of India (“ICAI”). system with reference to standalone financial statements.
These responsibilities include the design, implementation
and maintenance of adequate internal financial controls Meaning of Internal Financial Controls with
that were operating effectively for ensuring the orderly Reference to Financial Statements
and efficient conduct of its business, including adherence 6. A company’s internal financial controls with reference
to company’s policies, the safeguarding of its assets, to financial statements is a process designed to provide
the prevention and detection of frauds and errors, the reasonable assurance regarding the reliability of financial
accuracy and completeness of the accounting records, and reporting and the preparation of financial statements
the timely preparation of reliable financial information, as for external purposes in accordance with generally
required under the Act. accepted accounting principles. A company’s internal
financial controls with reference to financial statements
Auditor’s Responsibility includes those policies and procedures that (1) pertain
3. 
Our responsibility is to express an opinion on the to the maintenance of records that, in reasonable
Company’s internal financial controls with reference to detail, accurately and fairly reflect the transactions and
standalone financial statements based on our audit. We dispositions of the assets of the company; (2) provide
conducted our audit in accordance with the Guidance reasonable assurance that transactions are recorded as
Note on Audit of Internal Financial Controls over Financial necessary to permit preparation of financial statements in
Reporting (the “Guidance Note”) and the Standards on accordance with generally accepted accounting principles,
Auditing deemed to be prescribed under Section 143(10) and that receipts and expenditures of the company are
of the Act to the extent applicable to an audit of internal being made only in accordance with authorisations of
financial controls, both applicable to an audit of internal management and directors of the company; and (3)
financial controls and both issued by the ICAI. Those provide reasonable assurance regarding prevention or
Standards and the Guidance Note require that we comply timely detection of unauthorised acquisition, use, or
with ethical requirements and plan and perform the audit disposition of the company’s assets that could have a
to obtain reasonable assurance about whether adequate material effect on the financial statements.

114
 Corporate Overview Statutory Reports Financial Statements

Inherent Limitations of Internal Financial Opinion

Controls with Reference to Financial
8. In our opinion, the Company has, in all material respects,
Statements
an adequate internal financial controls system with
7. Because of the inherent limitations of internal financial reference to standalone financial statements and such
controls with reference to financial statements, including internal financial controls with reference to standalone
the possibility of collusion or improper management financial statements were operating effectively as at
override of controls, material misstatements due to error March 31, 2023, based on the internal control over
or fraud may occur and not be detected. Also, projections financial reporting criteria established by the Company
of any evaluation of the internal financial controls with considering the essential components of internal control
reference to financial statements to future periods are stated in the Guidance Note issued by ICAI.
subject to the risk that the internal financial controls
with reference to financial statements may become For Price Waterhouse Chartered Accountants LLP
inadequate because of changes in conditions, or that Firm Registration Number: 012754N/N500016
the degree of compliance with the policies or procedures
may deteriorate. N.K. Varadarajan
Partner
Place: Hyderabad  Membership Number: 90196
Date: May 20, 2023  UDIN: 23090196BGYZIV2663

33rd Annual Report 2022-23 | 115

Annexure B to Independent Auditor’s Report
Referred to in paragraph 12 of the Independent Auditors’ Report of even date to the members of Divi’s Laboratories Limited on
the standalone financial statements as of and for the year ended March 31, 2023.

i. (a) (A) 
The Company is maintaining proper records In respect of inventory lying with third parties, these
showing full particulars, including quantitative have substantially been confirmed by them. The
details and situation, of Property, Plant discrepancies noticed on physical verification of
and Equipment. inventory as compared to book records were not
10% or more in aggregate for each class of inventory.
(B) 
The Company is maintaining proper records
showing full particulars of Intangible Assets. (b) During the year, the Company has been sanctioned
working capital limits in excess of `5 crores, in
(b) The Property, Plant and Equipment are physically
aggregate, from banks on the basis of security of
verified by the Management according to a phased
current assets. The Company has filed quarterly
programme designed to cover all the items over a
statements with such banks, which are in agreement
period of 3 years which, in our opinion, is reasonable
with the books of account; reviewed by us for the
having regard to the size of the Company and the
quarter ended June 30, 2022, September 30, 2022,
nature of its assets. Pursuant to the programme, a
December 31, 2022 and audited by us for the year
portion of the Property, Plant and Equipment has
ended March 31, 2023. (Also refer Note 18(b) to the
been physically verified by the Management during
standalone financial statements).
the year and no material discrepancies have been
noticed on such verification. iii. (a) The Company has not granted secured/ unsecured
loans/advances in nature of loans, or stood
(c) The title deeds of all the immovable properties, as
guarantee, or provided security to any parties. The
disclosed in Note 3 on Property, Plant and Equipment
Company has subscribed in secured optionally
to the standalone financial statements, are held in
convertible debentures of a company other than
the name of the Company.
subsidiaries, joint ventures and associates. The
(d) 
The Company has chosen cost model for its aggregate amount during the year, and balance
Property, Plant and Equipment and intangible assets. outstanding at the balance sheet date with respect
Consequently, the question of our commenting on to such secured optionally convertible debentures
whether the revaluation is based on the valuation are as per the table given below:
by a Registered Valuer, or specifying the amount of
Amount in
change, if the change is 10% or more in the aggregate ` Lakhss
of the net carrying value of each class of Property,
Aggregate amount subscribed during the year -
Plant and Equipment or intangible assets does
Balance outstanding as at balance sheet date 7,704
not arise. in respect of the above (including accrued
redemption premium)
(e) Based on the information and explanations furnished
to us, no proceedings have been initiated on (or) are (Also refer Note 6(b) to the standalone financial
pending against the Company for holding benami statements)
property under the Prohibition of Benami Property
Transactions Act, 1988 (as amended in 2016) (formerly (b) 
In respect of the aforesaid secured optionally
the Benami Transactions (Prohibition) Act, 1988 (45 convertible debentures the terms and conditions
of 1988)) and Rules made thereunder, and therefore under which such subscription was made are not
the question of our commenting on whether the prejudicial to the Company’s interest.
Company has appropriately disclosed the details in (c) 
In respect of the aforesaid secured optionally
its standalone financial statements does not arise. convertible debentures, the schedule of repayment
ii. (a) The physical verification of inventory excluding of principal and payment of interest has been
stocks with third parties has been conducted at stipulated, and the parties are repaying the principal
reasonable intervals by the Management during the amounts, as stipulated, and are also regular in
year and, in our opinion, the coverage and procedure payment of interest as applicable.
of such verification by Management is appropriate.

116
 Corporate Overview Statutory Reports Financial Statements

(d) 
In respect of the secured optionally convertible vi. Pursuant to the rules made by the Central Government of
debentures, there is no amount which is overdue for India, the Company is required to maintain cost records
more than ninety days. as specified under Section 148(1) of the Act in respect of
its products. We have broadly reviewed the same and are
(e) There were no loans /advances in nature of loans
of the opinion that, prima facie, the prescribed accounts
which fell due during the year and were renewed/
and records have been made and maintained. We have
extended. Further, no fresh loans were granted to
not, however, made a detailed examination of the records
same parties to settle the existing overdue loans/
with a view to determine whether they are accurate
advances in nature of loan.
or complete.
(f)  here were no loans/advances in nature of loans
T
vii. (a) According to the information and explanations given
which were granted during the year, including to
to us and the records of the Company examined
promoters/related parties.
by us, in our opinion, the Company is regular in
iv. 
In our opinion, and according to the information and depositing the undisputed statutory dues, including
explanations given to us, the Company has complied with goods and services tax, provident fund, employees’
the provisions of Sections 185 and 186 of the Companies state insurance, professional tax, income tax, duty of
Act, 2013 in respect of the investments made, by it. customs, duty of excise and other material statutory
dues, as applicable, with the appropriate authorities.
v. The Company has not accepted any deposits or amounts
which are deemed to be deposits referred in Sections 73,
74, 75 and 76 of the Act and the Rules framed there under
to the extent notified.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no
statutory dues of Provident Fund, Employee state Insurance, Professional Tax, Goods and Services Tax, sales-tax, value
added tax which have not been deposited on account of any dispute. The particulars of other statutory dues of income tax,
Service Tax, entry tax, duty of customs and duty of excise as at March 31, 2023 which have not been deposited on account
of a dispute, are as follows:

Disputed Amount
Nature of Period to which the
Name of the statute Amount deposited Forum where the dispute is pending
dues amount relates
(` In lakhs) (` In lakhs)
Customs Act, 1962 Penalty 10.00 - January, 2007 Customs, Excise and Service Tax Appellate
Tribunal, South Zonal Bench, Chennai.
Customs Act, 1962 Custom duty 151.48 3.36 June 2006 to High Court of Andhra Pradesh, Amaravati
and Penalty December, 2008
Customs Act, 1962 Custom duty 36.70 - March, 2012 Commissioner of Customs, Central Excise &
and Penalty Service tax Visakhapatnam
Customs Act, 1962 Custom duty 63.15 - November, 2012 Commissioner of Customs, Excise & Service
and Penalty tax Visakhapatnam
Customs Act, 1962 Custom duty 8.60 - June,2009 to March, High Court of Andhra Pradesh Amaravati
and Penalty 2010
Customs Act, 1962 Custom duty 48.26 48.26 May, 2014 to The commissioner of customs (Appeals)
February, 2018
Central Excise Act, Service tax 19.33 1.93 April 2003- March Customs, Central Excise & Service tax
1944 2004 Appellate Tribunal Hyderabad
Central Excise Act, Excise duty 244.09 12.20 September, 2006 to Customs, Central Excise & Service tax
1944 and Penalty December, 2008 Appellate Tribunal Hyderabad
Central Excise Act, Excise duty 9.38 - July,2009 to March, High Court of Andhra Pradesh, Amaravati
1944 and Penalty 2010
Central Excise Act, Service tax 19.43 0.97 May,2011 to High Court of Andhra Pradesh, Amaravati
1944 and penalty December, 2011
Central Excise Act, Service tax, 45.18 3.77 April, 2010 to Customs, Central Excise & Service tax
1944 interest and March, 2011 Appellate Tribunal Hyderabad
penalty
Entry of Goods into Entry Tax 43.19 10.80 Financial years High Court of Andhra Pradesh, Amaravati
Local areas Act, 2001 2014-15 to 2016-17
Income Tax Act, 1961 Interest 0.41 - Financial year Additional Commissioner of Income Tax,
2005-06 Range-I, Hyderabad.

33rd Annual Report 2022-23 | 117

viii. According to the information and explanations given to us and explanations given to us, we have neither come
and the records of the Company examined by us, there across any instance of material fraud by the Company
are no transactions in the books of account that has been or on the Company, noticed or reported during the
surrendered or disclosed as income during the year in the year, nor have we been informed of any such case by
tax assessments under the Income Tax Act, 1961, that has the Management.
not been recorded in the books of account.
(b) 
During the course of our examination of the
ix. (a) According to the records of the Company examined books and records of the Company, carried out in
by us and the information and explanation given to accordance with the generally accepted auditing
us, the Company has not defaulted in repayment practices in India, and according to the information
of loans or other borrowings or in the payment of and explanations given to us, a report under Section
interest to any lender during the year. 143(12) of the Act, in Form ADT-4, as prescribed under
rule 13 of Companies (Audit and Auditors) Rules,
(b) According to the information and explanations given
2014 was not required to be filed with the Central
to us and on the basis of our audit procedures, we
Government. Accordingly, the reporting under clause
report that the Company has not been declared
3(xi)(b) of the Order is not applicable to the Company.
Wilful Defaulter by any bank or financial institution or
government or any government authority. (c) 
During the course of our examination of the
books and records of the Company carried out in
(c) According to the records of the Company examined by
accordance with the generally accepted auditing
us and the information and explanations given to us, the
practices in India, and according to the information
Company has not obtained any term loans.
and explanations given to us, and as represented to
(d) According to the information and explanations given to us, us by the management, no whistle-blower complaints
and the procedures performed by us, and on an overall have been received during the year by the Company.
examination of the standalone financial statements of Accordingly, the reporting under clause 3(xi)(c) of the
the Company, we report that no funds raised on short- Order is not applicable to the Company.
term basis have been used for long-term purposes by
xii. As the Company is not a Nidhi Company and the Nidhi
the Company.
Rules, 2014 are not applicable to it, the reporting under
(e) According to the information and explanations given to us clause 3(xii) of the Order is not applicable to the Company.
and on an overall examination of the standalone financial
xiii. The Company has entered into transactions with related
statements of the Company, we report that the Company
parties in compliance with the provisions of Sections
has not taken any funds from any entity or person on
177 and 188 of the Act. The details of such related party
account of or to meet the obligations of its subsidiaries,
transactions have been disclosed in the standalone
associates or joint ventures.
financial statements as required under Indian Accounting
(f) According to the information and explanations given to Standard 24 “Related Party Disclosures” specified under
us and procedures performed by us, we report that the Section 133 of the Act.
Company has not raised loans during the year on the
xiv. (a) In our opinion and according to the information and
pledge of securities held in its subsidiaries, joint ventures
explanation given to us, the Company has an internal
or associate companies.
audit system commensurate with the size and nature
x. (a) The Company has not raised any money by way of of its business.
initial public offer or further public offer (including
(b) The reports of the Internal Auditor for the period
debt instruments) during the year. Accordingly, the
under audit have been considered by us.
reporting under clause 3(x)(a) of the Order is not
applicable to the Company. xv. T
 he Company has not entered into any non-cash
transactions with its directors or persons connected with
(b) 
The Company has not made any preferential
him. Accordingly, the reporting on compliance with the
allotment or private placement of shares or fully or
provisions of Section 192 of the Act under clause 3(xv) of
partially or optionally convertible debentures during
the Order is not applicable to the Company.
the year. Accordingly, the reporting under clause 3(x)
(b) of the Order is 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.
xi. (a) 
During the course of our examination of the
Accordingly, the reporting under clause 3(xvi)(a) of
books and records of the Company, carried out in
the Order is not applicable to the Company.
accordance with the generally accepted auditing
practices in India, and according to the information

118
 Corporate Overview Statutory Reports Financial Statements

(b)  he Company has not conducted non-banking

T Company is not capable of meeting its liabilities existing
financial / housing finance activities during the year. at the date of balance sheet as and when they fall due
Accordingly, the reporting under clause 3(xvi)(b) of within a period of one year from the balance sheet date.
the Order is not applicable to the Company. We, however, state that this is not an assurance as to the
future viability of the Company. We further state that
(c) 
The Company is not a Core Investment Company
our reporting is based on the facts up to the date of the
(CIC) as defined in the regulations made by the
audit report and we neither give any guarantee nor any
Reserve Bank of India. Accordingly, the reporting
assurance that all liabilities falling due within a period of
under clause 3(xvi)(c) of the Order is not applicable
one year from the balance sheet date will get discharged
to the Company.
by the Company as and when they fall due.
(d) Based on the information and explanations provided
xx. (a) 
In respect of other than ongoing projects, as at
by the management of the Company, the Group (as
balance sheet date, the Company does not have any
defined in the Core Investment Companies (Reserve
amount remaining unspent under Section 135(5) of
Bank) Directions, 2016) does not have any CICs,
the Act. Accordingly, reporting under clause 3(xx)(a)
which are part of the Group. We have not, however,
of the Order is not applicable.
separately evaluated whether the information
provided by the management is accurate and (b) 
The Company has transferred the amount of
complete. Accordingly, the reporting under clause Corporate Social Responsibility remaining unspent
3(xvi)(d) of the Order is not applicable to the Company. under sub-section (5) of Section 135 of the Act
pursuant to ongoing projects to a special account in
xvii. The Company has not incurred any cash losses in the
compliance with the provision of sub-section (6) of
financial year or in the immediately preceding financial year.
Section 135 of the Act. (Also refer Note 29(b)(i) to the
xviii. There has been no resignation of the statutory auditors standalone financial statements)
during the year and accordingly the reporting under
xxi. 
The reporting under clause 3(xxi) of the Order is not
clause (xviii) is not applicable.
applicable in respect of audit of Standalone Financial
xix. 
According to the information and explanations given Statements. Accordingly, no comment in respect of the
to us and on the basis of the financial ratios (Also refer said clause has been included in this report.
Note 42 to the standalone financial statements), ageing
and expected dates of realisation of financial assets For Price Waterhouse Chartered Accountants LLP
and payment of financial liabilities, other information Firm Registration Number: 012754N/N500016
accompanying the standalone financial statements, our
N.K. Varadarajan
knowledge of the Board of Directors and management
Partner
plans and based on our examination of the evidence
Place: Hyderabad  Membership Number: 90196
supporting the assumptions, nothing has come to our
Date: May 20, 2023  UDIN: 23090196BGYZIV2663
attention, which causes us to believe that any material
uncertainty exists as on the date of the audit report that

33rd Annual Report 2022-23 | 119

Standalone Balance Sheet
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

As at As at
Particulars Note No.
March 31, 2023 March 31, 2022
ASSETS
Non-current assets
Property, plant and equipment 3 4,71,348 4,31,348
Capital work-in-progress 4 21,188 46,993
Intangible assets 5 528 749
Financial assets
(i) Investments 6 8,441 7,937
(ii) Other financial assets 13(a) 5,095 5,763
Income tax assets (net) 7(a) 2,917 2,917
Other non-current assets 8 2,100 5,483
Total Non-current assets 5,11,617 5,01,190
Current assets
Inventories 9 2,78,045 2,64,405
Financial assets
(i) Trade receivables 10 1,96,430 2,56,990
(ii) Cash and cash equivalents 11 14,417 1,19,956
(iii) Bank balances other than (ii) above 12 4,04,339 1,60,412
(iv) Other financial assets 13(b) 607 484
Income tax assets (net) 7(b) 9,787 5,768
Other current assets 14 19,920 21,581
Total Current assets 9,23,545 8,29,596
TOTAL ASSETS 14,35,162 13,30,786
EQUITY AND LIABILITIES
Equity
Equity share capital 15 (a) 5,309 5,309
Other equity 15 (b) 12,65,233 11,63,826
Total Equity 12,70,542 11,69,135
Liabilities
Non-current liabilities
Provisions 16 3,062 2,671
Deferred tax liabilities (net) 17 53,721 42,140
Total Non-current liabilities 56,783 44,811
Current liabilities
Financial liabilities
(i) Borrowings 18 - -
(ii) Trade payables 19
a) Total outstanding dues of micro and small enterprises 3,749 2,478
b) Total outstanding dues other than (ii) (a) above 70,515 74,652
(iii) Other financial liabilities 20 4,339 6,289
Other current liabilities 21 28,742 33,006
Provisions 16 492 415
Total current liabilities 1,07,837 1,16,840
TOTAL LIABILITIES 1,64,620 1,61,651
TOTAL EQUITY AND LIABILITIES 14,35,162 13,30,786

The accompanying notes are an integral part of the financial statements

This is the Standalone Balance Sheet referred
to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

120
 Corporate Overview Statutory Reports Financial Statements

Standalone Statement of Profit and Loss

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Income
Revenue from operations 22 7,62,530 8,87,982
Other income 23 34,901 11,126
Total Income 7,97,431 8,99,108
Expenses
Cost of raw materials consumed 24 2,97,949 3,43,979
Changes in inventories of finished goods and work-in-progress 25 5,016 (44,999)
Employee benefits expense 26 95,305 92,655
Finance costs 27 52 65
Depreciation and amortisation expense 28 34,207 31,055
Other expenses 29 1,29,492 1,08,701
Total Expenses 5,62,021 5,31,456
Profit before tax 2,35,410 3,67,652
Tax expense 30
Current tax 43,758 63,720
Deferred tax 10,837 9,078
Total tax expense 54,595 72,798
Profit after tax 1,80,815 2,94,854
Other comprehensive income
(A) Items that will not be reclassified to profit or loss
Gain on remeasurements of post-employment benefit obligations 359 335
- Income tax relating to these items (126) (117)
(B) Items that will be reclassified to profit or loss - -
Other comprehensive income after tax 233 218
Total comprehensive income 1,81,048 2,95,072
Earnings per share (par value of `2 each)
- Basic and Diluted 43 68.11 111.07

The accompanying notes are an integral part of the financial statements

This is the Standalone Statement of profit and loss

referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

33rd Annual Report 2022-23 | 121

Standalone Statement of Cash Flows
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Cash flows from operating activities
Profit before tax 2,35,410 3,67,652
Adjustments for:
Depreciation and amortisation expense 28 34,207 31,055
Unrealised foreign exchange gain (1,551) (567)
Interest income from financial assets at amortised cost 23 (20,459) (6,896)
Change in fair value of investments in optionally convertible debentures 23 (504) -
Provision for doubtful debts / (written back) [including bad debts recovered] 29 - (277)
Interest Expense 27 18 21
Loss on disposal / discard of property plant and equipment and intangible assets 29 113 205
Amortisation of government grants 23 (10) (9)
2,47,224 3,91,184
Change in operating assets and liabilities
(Increase) / Decrease in trade receivables 10 63,807 (81,710)
(Increase) / Decrease in inventories 9 (13,640) (60,135)
Increase / (Decrease) in trade payables 19 (2,953) 2,429
(Increase) / Decrease in other non current assets 8 450 125
(Increase) /Decrease in other current financial assets 13(b) (123) 463
(Increase) /Decrease in other non current financial assets 13(a) 668 (93)
(Increase) / Decrease in other current assets 14 1,661 (6,451)
Increase / (Decrease) in long term employee benefit obligation 16 750 481
Increase / (Decrease) in short term employee benefit obligation 16 77 164
Increase / (Decrease) in other financial liabilities 20 (83) 502
Increase / (Decrease) in other current liabilities 21 (5,884) 7,036
Cash generated from operations 2,91,954 2,53,995
Income taxes paid including withholding tax and net of refunds 7(c) (47,159) (62,979)
Net cash inflow from operating activities 2,44,795 1,91,016
Cash flows from investing activities
Payments for property, plant and equipment 3,4,5 (47,215) (71,368)
Proceeds from sale of property, plant and equipment 1 -
Payments for investments in optionally convertible debentures 6 - (7,200)
Interest received 23 20,459 6,681
Proceeds from withdrawal of deposits 12 1,60,118 5,050
Investment in deposits 12 (4,04,038) (1,52,703)
Net cash inflow / (outflow) from investing activities (2,70,675) (2,19,540)

122
 Corporate Overview Statutory Reports Financial Statements

Standalone Statement of Cash Flows

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Cash flows from financing activities
Proceeds/(repayment) from working capital loans 18 - (35)
Interest paid 27 (18) (21)
Dividends paid to company's shareholders (79,641) (53,094)
Net cash outflow from financing activities (79,659) (53,150)
Net increase/ (decrease) in cash and cash equivalents (1,05,539) (81,674)
Cash and cash equivalents at the beginning of the year 1,19,956 2,01,630
Cash and cash equivalents at end of the year 14,417 1,19,956
Reconciliation of cash and cash equivalents at the end of the year
Cash and cash equivalents as per Balance Sheet 11 14,417 1,19,956
Balances as per statement of cash flows 14,417 1,19,956

1. The Statement of Standalone cash flows has been prepared under the indirect method as set out in Indian accounting
standard (Ind AS 7) Statement of Cash Flows

2. The accompanying notes are an integral part of the financial statements.

This is the Standalone Statement of cash flows

referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

33rd Annual Report 2022-23 | 123

Standalone Statement of Changes in Equity
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

a. Equity Share Capital

As at As at
S.No Particulars
March 31, 2023 March 31, 2022
i Balance at the beginning of the reporting period 5,309 5,309
ii Balance at the end of the reporting period 5,309 5,309

b. Other Equity
Reserves And Surplus
S. SEZ
Particulars Securities General Retained Total
No Reinvestment
Premium Reserve Earnings
Reserve
As at March 31, 2023
i Balance at the beginning of the current reporting period 7,988 59,085 1,00,000 9,96,753 11,63,826
ii Profit after tax - - - 1,80,815 1,80,815
iii Other Comprehensive Income after tax - - - 233 233
iv Dividends paid to Company’s shareholders - - - (79,641) (79,641)
v Transfer from retained earnings / to SEZ reinvestment reserve - 14,559 - (14,559) -
vi Transfer to retained earnings / from SEZ reinvestment reserve - (8,555) - 8,555 -
vii Balance at the end of the current reporting period 7,988 65,089 1,00,000 10,92,156 12,65,233
As at March 31, 2022
i Balance at the beginning of the previous reporting period 7,988 55,029 1,00,000 7,58,831 9,21,848
ii Profit after tax - - - 2,94,854 2,94,854
iii Other Comprehensive Income after tax - - - 218 218
iv Dividends paid to Company’s shareholders - - - (53,094) (53,094)
v Transfer from retained earnings / to SEZ reinvestment reserve - 12,520 - (12,520) -
vi Transfer to retained earnings / from SEZ reinvestment reserve - (8,464) - 8,464 -
vii Balance at the end of the previous reporting period 7,988 59,085 1,00,000 9,96,753 11,63,826

The accompanying notes are an integral part of the financial statements

This is the Standalone Statement of changes in equity

referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

124
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

1. Corporate Information are effective 1 April 2022. These amendments did

not have any impact on the amounts recognised in
1.1 Divi’s Laboratories Limited (Divi’s/’Company’) is a
prior periods and are not expected to significantly
Company limited by shares, incorporated and domiciled
affect the current or future periods.
in India. The Company is engaged in the manufacture of
Active Pharmaceutical ingredients (API’s), Intermediates (iv) New and amended standards issued but not
and Nutraceutical ingredients with predominance in effective
exports. In addition to generic business, the Company,  he Ministry of Corporate Affairs has vide notification
T
through its custom synthesis business, supports dated 31 March 2023 notified Companies (Indian
innovator pharma companies for their patented products Accounting Standards) Amendment Rules, 2023 (the
business right from gram scale requirements for clinical ‘Rules’) which amends certain accounting standards,
trials to launch as well as late life cycle management. The and are effective 1 April 2023.
Company is a public limited company and the Company’s
equity shares are listed in BSE Limited (BSE) and National The Rules predominantly amend Ind AS 12, Income
Stock Exchange of India Limited (NSE) in India. taxes, and Ind AS 1, Presentation of financial
statements. The other amendments to Ind AS
1.2 The Financial statements are approved for issue by the notified by these rules are primarily in the nature
Company’s Board of Directors on May 20, 2023. of clarifications.

2. Summary of Significant Accounting Policies These amendments are not expected to have a
material impact on the company in the current or
Significant accounting policies adopted in the preparation future reporting periods and on foreseeable future
of these financial statements are detailed below. These transactions. Specifically, no changes would be
policies have been consistently applied to all the years necessary as a consequence of amendments made
presented, unless otherwise stated. to Ind AS 12 as the company’s accounting policy
2.1 Basis of Preparation: already complies with the now mandatory treatment.

(i) Compliance with Ind AS (v) Current and non-current classification

The financial statements comply in all material An asset / Liability is classified as current if:
aspects with Indian Accounting Standards (Ind AS)
(a) The amount is expected to be realised or sold or
notified under section 133 of the Companies Act, 2013
consumed in the Company’s normal operating
(the Act) [Companies (Indian Accounting Standards)
cycle; the liability is expected to be settled in
Rules, 2015] and other relevant provisions of the Act
normal operating cycle;
and guidelines issued by Securities and Exchange
Board of India (SEBI). (b)  sset / liability is held primarily for the purpose
A
of trading;
(ii) Historical cost convention
The financial statements have been prepared on a (c)  sset / Liability is expected to be realised/
A
historical cost basis, except for the following: settled within twelve months after the reporting
period; or
• Certain financial assets and liabilities that are
measured at fair value; (refer accounting policy (d) The asset is cash or a cash equivalent unless
regarding financial instruments) it is restricted from being exchanged or used
to settle a liability for at least twelve months
• Defined benefit plans – plan assets measured at after the reporting period. The entity has no
fair value unconditional right to defer the settlement of
(iii) N ew and amended standards adopted by the the liability for at least twelve months after the
Company reporting period.

 he Ministry of Corporate Affairs had vide notification

T  ll other assets / liabilities are classified as non-
A
dated 23 March 2022 notified Companies (Indian current.
Accounting Standards) Amendment Rules, 2022
The operating cycle is the time between acquisition of
which amended certain accounting standards, and
assets for processing and their realisation in cash and

33rd Annual Report 2022-23 | 125

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

cash equivalents. Based on the nature of products customers. Amounts disclosed as revenue are net of
and time between acquisition of assets for processing returns, trade allowances, rebates, Goods & Service Tax
and their realisation in cash and cash equivalents, (GST) collections and amounts collected on behalf of
the Company has ascertained its operating cycle as third parties.
12 months for the purpose of current/non-current
(i) Revenue from Sale of Goods:
classification of assets and liabilities.
Revenue from sale of goods is recognised when the
2.2 Segment Reporting: customer obtains control of the Company’s product,

Operating segments are reported in a manner which occurs at a point in time with payment terms
consistent with the internal reporting provided to the typically in the range of 60 to 180 days after invoicing
Chief Operating Decision Maker. Managing Director of depending on product and geographic region. Taxes
the Company has been identified as being the Chief collected from customers relating to product sales
Operating Decision Maker. Refer Note 35 for the segment and remitted to government authorities are excluded
information presented. from revenues.

2.3 Foreign Currency Translation: The Company does not expect to have any contracts
(i) Functional and Presentation Currency where the period between the transfer of the
promised goods or services to the customer and
Items included in the financial statements of the
payment by the customer exceeds one year. As a
Company are measured using the currency of
consequence, the company does not adjust any of
the primary economic environment in which the
the transaction prices for the time value of money.
entity operates (‘the functional currency’). The
financial statements are presented in Indian rupee For contracts with multiple performance obligations,
(`), which is Divi’s (the Company’s) functional and the Company allocates the transaction price to
presentation currency. each performance obligation based on the relative
standalone selling price.
(ii) Transactions and Balances
Foreign currency transactions are translated into the (ii) Revenue from Sale of Services:
functional currency using the exchange rates at the Revenue from Sale of services is recognised as per
dates of the transactions. Foreign exchange gains the terms of the contracts with customers when
and losses resulting from the settlement of such the related services are performed, or the agreed
transactions and from the translation of monetary milestones are achieved.
assets and liabilities denominated in foreign
(iii) Export Incentives:
currencies at year end exchange rates are generally
recognised in statement of profit and loss.  xport incentives comprise of Duty draw back and
E
MEIS (Merchandise Exports Incentive scheme) scrips.
 on-monetary items that are measured at fair
N
value in a foreign currency are translated using the  uty drawback is recognised as income when the
D
exchange rates at the date when the fair value was right to receive credit as per the terms of the scheme
determined. Translation differences on assets and is established in respect of the exports entitled for
liabilities carried at fair value are reported as part of this benefit made and where there is no significant
the fair value gain or loss. Translation differences on uncertainty regarding the ultimate collection of the
non-monetary assets and liabilities such as equity relevant export proceeds.
instruments held at fair value through profit or MEIS scrips are freely transferable and can be utilised
loss are recognised in statement of profit and loss for the payment of customs duty. MEIS scrips are
as part of the fair value gain or loss and translation recognised either on transfer/sale of such scrips or
differences on non-monetary assets such as equity when it is reasonably certain that such scrips can be
investments classified as FVOCI are recognised in utilised against import duties.
other comprehensive income.
(iv) Dividend Income:
2.4 Revenue Recognition:
 ividends are received from financial assets at fair
D
Revenue is measured at the transaction price determined value through profit or loss. Dividends are recognised
under IND AS 115- Revenue from contracts with as other income in profit or loss when the right to

126
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

receive payment is established. This applies even if to control the timing of the reversal of the temporary
they are paid out of pre-acquisition profits unless the differences and it is probable that the differences will not
dividend clearly represents a recovery of part of the reverse in the foreseeable future.
cost of the investment.
Deferred tax assets are not recognised for temporary
(v) Interest Income: differences between the carrying amount and tax bases
Interest income from financial assets at fair value of investments in subsidiaries where it is not probable
through profit or loss is disclosed as interest that the differences will reverse in the foreseeable future
income within other income. Interest income on and taxable profit will not be available against which the
financial assets at amortised cost is calculated temporary difference can be utilised.
using the effective interest method is recognised  eferred tax assets and liabilities are offset when there
D
in the statement of profit and loss as part of other is a legally enforceable right to offset current tax assets
income. Interest income is calculated by applying the and liabilities and when the deferred tax balances relate
effective interest rate to the gross carrying amount to the same taxation authority. Current tax assets and
of a financial asset except for financial assets that tax liabilities are offset where the entity has a legally
subsequently become credit impaired. For credit- enforceable right to offset and intends either to settle
impaired financial assets the effective interest rate on a net basis, or to realise the asset and settle the
is applied to the net carrying amount of the financial liability simultaneously.
asset (after deduction of the loss allowance).
Current and deferred tax is recognised in profit or loss,
2.5 Income Taxes: except to the extent that it relates to items recognised in
The income tax expense or credit for the period is the tax other comprehensive income or directly in equity. In this
payable on the current period’s taxable income based case, the tax is also recognised in other comprehensive
on the applicable income tax rate adjusted by changes income or directly in equity, respectively.
in deferred tax assets and liabilities attributable to
For operations carried out in Special Economic Zones
temporary differences and to unused tax losses.
which are entitled to tax holiday under the Income tax Act,
The current income tax charge is calculated based on the 1961 no deferred tax is recognised in respect of temporary
tax laws enacted or substantively enacted at the end of differences which reverse during the tax holiday period,
the reporting period. Management periodically evaluates to the extent company’s gross total income is subject to
positions taken in tax returns with respect to situations in the deduction during the tax holiday period. Deferred tax
which applicable tax regulation is subject to interpretation. in respect of temporary differences which reverse after
It establishes provisions, where appropriate, based on the tax holiday period is recognised in the year in which
amounts expected to be paid to the tax authorities. temporary difference originate.

Deferred income tax is provided in full, using the liability 2.6 Impairment of Assets:
method, on temporary differences arising between Assets are tested for impairment whenever events or
the tax bases of assets and liabilities and their carrying changes in circumstances indicate that the carrying
amounts in the financial statements. Deferred income amount may not be recoverable. An impairment loss is
tax is determined using tax rates (and laws) that have recognised for the amount by which the asset’s carrying
been enacted or substantively enacted by the end of amount exceeds its recoverable amount. The recoverable
the reporting period and are expected to apply when amount is the higher of an asset’s fair value less costs of
the related deferred income tax asset is realised, or the disposal and value in use. For the purposes of assessing
deferred income tax liability is settled. impairment, assets are grouped at the lowest levels for
Deferred tax assets are recognised for all deductible which there are separately identifiable cash inflows which
temporary differences and unused tax losses only if it is are largely independent of the cash inflows from other
probable that future taxable amounts will be available to assets or groups of assets (cash-generating units). Non-
utilise those temporary differences and losses. financial assets that suffered an impairment are reviewed
for possible reversal of the impairment at the end of each
Deferred tax liabilities are not recognised for temporary reporting period.
differences between the carrying amount and tax bases
of investments in subsidiaries where the Company is able

33rd Annual Report 2022-23 | 127

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

2.7 Cash and Cash Equivalents: • those to be measured subsequently at fair value
For the purpose of presentation in the statement of cash (either through other comprehensive income, or
flows, cash and cash equivalents includes cash on hand, through profit or loss), and
deposits held at call with financial institutions, other short- • those measured at amortised cost.
term, highly liquid investments with original maturities
of three months or less that are readily convertible to  he classification depends on the entity’s business
T
known amounts of cash and which are subject to an model for managing the financial assets and the
insignificant risk of changes in value, and bank overdrafts. contractual terms of the cash flows.
Bank overdrafts are shown within borrowings in current For assets measured at fair value, gains and losses
liabilities in the balance sheet. will either be recorded in profit or loss or other
2.8 Trade Receivables: comprehensive income. For investments in debt
instruments, this will depend on the business model
Trade receivables are amounts due from customers for
in which the investment is held. For investments
goods sold or services performed in the ordinary course
in equity instruments, this will depend on whether
of business and reflects company’s unconditional right
the Company has made an irrevocable election
to consideration (that is, payment is due only on the
at the time of initial recognition to account for
passage of time). Trade receivables are recognised initially
the equity investment at fair value through other
at the transaction price as they do not contain significant
comprehensive income. The Company reclassifies
financing components. The company holds the trade
debt investments when and only when its business
receivables with the objective of collecting the contractual
model for managing those assets changes.
cash flows and therefore measures them subsequently at
amortised cost using the effective interest method, less (ii) Recognition
loss allowance. Purchases and sale of financial assets are recognised
2.9 Inventories: on trade date, the date on which company commit to
purchase or sale the financial assets.
Raw materials, stores and spares, work-in-progress and
finished goods are stated at the lower of cost, calculated (iii) Measurement
on weighted average basis, and net realisable value. Cost At initial recognition, the company measures a
of raw materials and stores comprise of cost of purchases. financial asset (excluding trade receivables which
Cost of work-in-progress and finished goods comprises do not contain a significant financing component)
cost of direct materials, direct labour and an appropriate at its fair value plus, in the case of a financial asset
proportion of variable and fixed overhead expenditure, not at fair value through profit or loss, transaction
the latter being allocated on the basis of normal operating costs that are directly attributable to the acquisition
capacity. Cost of inventories also include all other cost of the financial asset. Transaction costs of financial
incurred in bringing the inventories to their present assets carried at fair value through profit or loss are
location and condition. Costs of purchased inventory expensed in profit or loss.
are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the Debt instruments
ordinary course of business less the estimated costs of Subsequent measurement of debt instruments depends
completion and the estimated costs necessary to make on the Company’s business model for managing the asset
the sale. Items held for use in the production of inventory and the cash flow characteristics of the asset. There are
are not written below cost if the finished product in which three measurement categories into which the Company
these will be incorporated are expected to be sold at or classifies its debt instruments:
above the cost.
Amortised cost: Assets that are held for collection of

2.10 Investments and other Financial Assets: contractual cash flows where those cash flows represent
(i) Classification: solely payments of principal and interest are measured at
amortised cost. Interest income from these financial assets
The Company classifies its financial assets in the
is included in finance income using the effective interest
following measurement categories:
rate method. Any gain or loss arising on derecognition is

128
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

recognised directly in profit or loss and presented in other details how the Company determines whether there
gains/(losses). has been a significant increase in credit risk.

air value through other comprehensive income

F For trade receivables only, the Company applies the
(FVOCI): Assets that are held for collection of contractual simplified approach permitted by Ind AS 109 Financial
cash flows and for selling the financial assets, where Instruments, which requires expected lifetime
the assets’ cash flows represent solely payments of losses to be recognised from initial recognition of
principal and interest, are measured at fair value through the receivables.
other comprehensive income (FVOCI). Movements in
(v) Derecognition of financial assets
the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest A financial asset is derecognised only when
revenue, foreign exchange gains and losses which are • the Company has transferred the rights to receive
recognised in profit and loss. When the financial asset cash flow from the financial asset or
is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit • retains the contractual rights to receive the
or loss and recognised in other gains/ (losses). Interest cash flows of the financial assets but assumes a
income from these financial assets is included in other contractual obligation to pay cash flows to one or
income using the effective interest rate method. more recipients.

 air value through profit or loss: Assets that do

F Where the entity has transferred an asset, the
not meet the criteria for amortised cost or FVOCI are Company evaluates whether it has transferred
measured at fair value through profit or loss. A gain or loss substantially all risks and rewards of ownership of
on a debt investment that is subsequently measured at the financial asset. In such cases, the financial asset is
fair value through profit or loss and is not part of a hedging derecognised. Where the entity has not transferred
relationship is recognised in profit or loss and presented substantially all risks and rewards of ownership of
net in the statement of profit and loss within other gains/ the financial asset the same is not derecognised.
(losses) in the period in which it arises. Interest income  here the entity has neither transferred a financial
W
from these financial assets is included in other income. asset nor retains substantially all risks and rewards
Equity instruments of ownership of the financial asset, the financial asset
is derecognised. Where the Company retains control

The Company subsequently measures all equity
of the financial asset, the asset is continued to be
investments at fair value. Where the Company’s
recognised to the extent of continuing involvement
management has elected to present fair value gains and
in the financial asset.
losses on equity investments in other comprehensive
income, there is no subsequent reclassification of fair 2.11 Offsetting Financial Instruments:
value gains and losses to profit or loss. Dividends from  inancial assets and liabilities are offset, and the net
F
such investments are recognised in profit or loss as other amount is reported in the balance sheet where there is a
income when the Company’s right to receive payments is legally enforceable right to offset the recognised amounts
established. Changes in the fair value of financial assets and there is an intention to settle on a net basis or realise
at fair value through profit or loss are recognised in other the asset and settle the liability simultaneously. The legally
income in the statement of profit and loss. Impairment enforceable right must not be contingent on future events
losses (and reversal of impairment losses) on equity and must be enforceable in the normal course of business
investments measured at fair value are not reported and in the event of default, insolvency or bankruptcy of
separately from other changes in fair value. the Company or the counterparty.
(iv) Impairment of financial assets 2.12 Property, Plant & Equipment:
 he Company assesses on a forward-looking basis,
T Freehold land is carried at historical cost. All other items of
the expected credit losses associated with its property, plant and equipment are stated at historical cost
assets carried at amortised cost. The impairment less depreciation. Historical cost includes expenditure
methodology applied depends on whether there that is directly attributable to the acquisition of the items.
has been a significant increase in credit risk. Note 33 On transition to Ind AS, the Company had elected to
continue with the carrying value of all its property, plant

33rd Annual Report 2022-23 | 129

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

and equipment recognised as at 1st April 2015 measured 2.13 Intangible Assets:
as per the previous GAAP and use that carrying value as (i) Computer Software
the deemed cost of the property, plant and equipment.
Computer software is stated at historical cost less
Subsequent costs are included in the asset’s carrying amortisation. Historical cost includes expenditure
amount or recognised as a separate asset, as appropriate, that is directly attributable to the acquisition of
only when it is probable that future economic benefits the computer software. Costs associated with
associated with the item will flow to the Company and the maintaining software programmes are recognised as
cost of the item can be measured reliably. The carrying an expense as incurred.
amount of any component accounted for as separate
On transition to Ind AS, the Company had elected to
asset is derecognised when replaced. All other repairs
continue with the carrying value of all of intangible
and maintenance are charged to profit or loss during the
assets recognised as at 1st April 2015 measured as
reporting period in which they are incurred.
per the previous GAAP and use that carrying value
 apital work-in-progress includes cost of property, plant
C as the deemed cost of intangible assets.
and equipment under installation/under development as
(ii) Research and Development
at the balance sheet date.
Research and Development expenses that do not
(i) Depreciation Methods, Estimated Useful Lives and meet the criteria of property, plant and equipment
Residual Value above are recognised as an expense as incurred.
Depreciation on Property, Plant & Equipment is Development costs previously recognised as
provided on straight-line basis to allocate their cost, an expense are not recognised as an asset in a
net of residual value over the estimated useful lives subsequent period.
of the assets. The useful lives have been determined
(iii) Amortisation Methods and Periods
in order to reflect the actual usage of the assets and
are consistent with the useful lives prescribed under The Company amortises intangible assets over
Schedule II of the Companies Act, 2013. a period of 3 years based on their estimated
useful lives.
Following are the estimated useful lives:
2.14 Trade and Other Payables:
Plant & Machinery 7.5-25 years
These amounts represent liabilities for goods and services
Roads and Buildings 10 - 60 years provided to the company prior to the end of financial year
Furniture and Fixtures 10 years which are unpaid. Trade and other payables are presented
Vehicles 8 & 10 years as current liabilities unless payment is not due within 12
Office Equipment 5 years months after the reporting period. They are recognised
Laboratory Equipment 10 years initially at their fair value and subsequently measured at
Computer and data processing units 3-6 years amortised cost using the effective interest method.

 he residual values are not more than 5% of the

T 2.15 Borrowings:
original cost of the asset. The assets’ residual Borrowings are initially recognised at fair value, net of
values and useful lives are reviewed, and adjusted transaction cost incurred. Borrowings are subsequently
if appropriate, at the end of each reporting period. measured at amortised cost. Any difference between the
An asset’s carrying amount is written down proceeds (net of transaction costs) and the redemption
immediately to its recoverable amount if the asset’s amount is recognised in profit or loss over the period
carrying amount is greater than its estimated of the borrowings using the effective interest method.
recoverable amount. Fees paid on the establishment of loan facilities are
Gains and losses on disposal are determined by recognised as transaction costs of the loan to the extent
comparing proceeds with carrying amount. These that it is probable that some or all of the facility will be
are included in profit or loss within other income/ drawn down. In this case, the fee is deferred until the draw
other expenses. down occurs. To the extent there is no evidence that it is
probable that some or all the facility will be drawn down,
the fee is capitalised as a prepayment for liquidity services

130
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

and amortised over the period of the facility to which specific to the liability. The increase in the provisions due
it relates. to the passage of time is recognised as interest expense.
Provision for litigation related obligation represents
Borrowings are removed from the balance sheet when
liabilities that are expected to materialise in respect of
the obligation specified in the contract is discharged,
matters in appeal.
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished 2.18 Employee benefits:
or transferred to another party and the consideration (i) Short-term obligations
paid, including any non-cash assets transferred or
 iabilities for wages and salaries, bonus, ex-
L
liabilities assumed, is recognised in profit or loss as other
gratia etc. that are expected to be settled wholly
gains/(losses).
within 12 months after the end of the period
Borrowings are classified as current liabilities unless the in which the employees render the related
Company has an unconditional right to defer settlement service are recognised in respect of employees’
of the liability for at least 12 months after the reporting services up to the end of the reporting period
period. Where there is a breach of a material provision of and are measured at the amounts expected
a long-term loan arrangement on or before the end of the to be paid when the liabilities are settled. The
reporting period with the effect that the liability becomes liabilities are presented as current employee
payable on demand on the reporting date, the entity does benefit obligations in the balance sheet.
not classify the liability as current, if the lender agreed,
(ii) Long-term employee benefit obligations
after the reporting period and before the approval of
financial statements for issue, not to demand payment as The liabilities for compensated absences are
consequence of the breach. not expected to be settled wholly within 12
months after the end of the period in which
2.16 Borrowing Costs: the employees render the related service. They
 eneral and specific borrowing costs that are directly
G are therefore measured as the present value
attributable to the acquisition, construction or production of expected future payments to be made in
of a qualifying asset are capitalised during the period of respect of services provided by employees up
time that is required to complete and prepare the asset to the end of the reporting period using the
for its intended use or sale. Qualifying assets are assets projected unit credit method. The benefits
that necessarily take a substantial period of time to get are discounted using the market yields at the
ready for their intended use or sale. end of the reporting period that have terms
approximating to the terms of the related
Investment income earned on the temporary investment
obligations. Remeasurements as a result of
of specific borrowings pending their expenditure on
the experience adjustments and changes in
qualifying assets is deducted from the borrowing cost
actuarial assumptions are recognised in the
eligible for capitalisation. Other borrowings costs are
statement of profit and loss.
expensed in the period in which they are incurred.
The obligations are presented as current
2.17 Provisions:
liabilities in the balance sheet if the entity
 rovision for legal claims are recognised when the
P does not have an unconditional right to defer
Company has a present legal or constructive obligation settlement for at least twelve months after the
as a result of past events, it is probable that an outflow reporting period, regardless of when the actual
of resources will be required to settle the obligation and settlement is expected to occur.
the amount can be reliably estimated. Provisions are not
recognised for future operating losses. (iii) Post-employment obligations
 he Company operates the following post-
T
 rovisions are measured at the present value of
P
employment schemes:
management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting (a) Defined benefit plans-Gratuity
period. The discount rate used to determine the present obligations
value is a pre-tax rate that reflects current market The liability or assets recognised in the
assessments of the time value of money and the risks balance sheet in respect of defined benefit

33rd Annual Report 2022-23 | 131

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

gratuity plans is the present value of the who have resigned or expected to resign or
defined benefit obligations at the end of are due for retirement within the next 12
the reporting period less the fair value of months is ‘current’. The remaining amount
plan assets. The defined benefit obligation attributable to other employees, who are
is calculated annually by actuaries using likely to continue in the services for more
the projected unit credit method. than a year, is classified as “non-current”.

The present value of the defined  ompany uses the work of an actuary in
C
benefit obligation denominated in INR is determining the classification of the current
determined by discounting the estimated and non-current liability for unfunded post
future cash outflows by reference to employee benefit obligations.
market yields at the end of the reporting
(b) Defined contribution plans
period on government bonds that have
terms approximating to the terms of the 
The Company pays provident fund
related obligation. The benefits which contributions to publicly administered
are denominated in currency other than funds as per local regulations. The Company
INR, the cash flows are discounted using has no further payment obligations once
market yields determined by reference the contributions have been paid. The
to high-quality corporate bonds that are contributions are accounted for as defined
denominated in the currency in which contribution plans and the contributions
the benefits will be paid, and that have are recognised as employee benefit
terms approximating to the terms of the expense when they are due.
related obligation.  ermination benefits in the nature
T
The net interest cost is calculated by of voluntary retirement benefits are
applying the discount rate to the net recognised in the Statement of Profit and
balance of the defined benefit obligation Loss as and when incurred.
and the fair value of plan assets. This cost 2.19 Dividends:
is included in employee benefit expense in
 rovision is made for the amount of any dividend
P
the statement of profit and loss.
declared, being appropriately authorised and no longer
Remeasurement gains and losses arising at the discretion of the entity, on or before the end of the
from experience adjustments and change reporting period but not distributed at the end of the
in actuarial assumptions are recognised reporting period.
in the period in which they occur, directly
2.20 Contributed Equity:
in other comprehensive income. They
are included in retained earnings in the  quity shares are classified as equity. Incremental costs
E
statement of changes in equity and in the directly attributable to the issue of new shares or options
balance sheet. are shown in equity as a deduction, net of tax, from
the proceeds.
Changes in the present value of the
defined benefit obligation resulting from 2.21 Earnings per Share:
plan amendments or curtailments are (i) Basic Earnings per Share
recognised immediately in profit or loss as Basic earnings per share is calculated by dividing:
past service cost.
• The profit attributable to owners of the Company
In respect of funded post-employment
defined benefit plans, amounts due for • By the weighted average number of equity shares
payment within 12 months to the fund outstanding during the financial year, adjusted for
may be treated as ‘current’. Regarding bonus elements in equity shares issued during
unfunded post-employment benefit plans, the year.
settlement obligations which are due
within 12 months in respect of employees

132
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(ii) Diluted Earnings per Share 

To determine the incremental borrowing rate,
Diluted earnings per share adjusts the figures used the company:
in the determination of basic earnings per share to • where possible, uses recent third-party financing
take into account: received by the individual lessee as a starting point,
• the after income tax effect of interest and other adjusted to reflect changes in financing conditions
financing costs associated with dilutive potential since third party financing was received
equity shares, and • uses a build-up approach that starts with a risk-free
• the weighted average number of additional interest rate adjusted for credit risk for leases held by
equity shares that would have been outstanding the company which does not have recent third party
assuming the conversion of all dilutive potential financing, and
equity shares. • makes adjustments specific to the lease, e.g. term,
2.22 Leases: country, currency and security.

As a lessee The company is exposed to potential future increases in

 eases are recognised as a right-of-use asset and a
L variable lease payments based on an index or rate, which
corresponding liability at the date at which the leased are not included in the lease liability until they take effect.
asset is available for use by the company. Contracts When adjustments to lease payments based on an index
may contain both lease and non-lease components. The or rate take effect, the lease liability is reassessed and
company allocates the consideration in the contract to the adjusted against the right-of-use asset.
lease and non-lease components based on their relative Lease payments are allocated between principal and
stand-alone prices. finance cost. The finance cost is charged to profit or loss
Assets and liabilities arising from a lease are initially over the lease period so as to produce a constant periodic
measured on a present value basis. Lease liabilities include rate of interest on the remaining balance of the liability for
the net present value of the following lease payments: each period.

• fixed payments (including in-substance fixed  ight-of-use assets are measured at cost comprising
R
payments), less any lease incentives receivable the following:

• variable lease payment that are based on an index or a • the amount of the initial measurement of lease liability
rate, initially measured using the index or rate as at the • any lease payments made at or before the
commencement date commencement date less any lease incentives received
• amounts expected to be payable by the company • any initial direct costs, and
under residual value guarantees
• restoration costs.
• the exercise price of a purchase option if the company
is reasonably certain to exercise that option, and  ight-of-use assets are generally depreciated over the
R
shorter of the asset’s useful life and the lease term on a
• payments of penalties for terminating the lease, if the straight-line basis. If the company is reasonably certain
lease term reflects the company exercising that option. to exercise a purchase option, the right-of-use asset is
Lease payments to be made under reasonably certain depreciated over the underlying asset’s useful life.
extension options are also included in the measurement  hort-term leases of equipment and all leases of low-
S
of the liability. The lease payments are discounted using value assets are recognised as expense over the lease
the interest rate implicit in the lease. If that rate cannot be term on straight-line basis or another systematic basis
readily determined, which is generally the case for leases if that basis is more representative of the pattern of the
in the company, the lessee’s incremental borrowing rate is benefit. Short-term leases are leases with a lease term of
used, being the rate that the individual lessee would have 12 months or less.
to pay to borrow the funds necessary to obtain an asset of
similar value to the right-of-use asset in a similar economic
environment with similar terms, security and conditions.

33rd Annual Report 2022-23 | 133

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

2.23 Contingent Liability & Commitments: which are the present value of the cash shortfall over
Contingent liability is disclosed in the case of: the expected life of the financial assets- refer note:
33(A)
• a present obligation arising from past events, when
it is not probable that an outflow of resources will be (iv) 
Estimation of useful lives and residual value of
required to settle the obligation. property, plant and equipment and intangible
assets– refer above para 2.12 (i)
• a present obligation arising from past events when no
reliable estimate possible. Estimates and judgements are continually evaluated. They
are based on historical experience and other factors,
• a possible obligation arising from past events unless including expectations of future events that may have a
the probability of outflow of resources is remote. financial impact on the company and that are believed to
Commitments include the amount of purchase order (net be reasonable under the circumstances.
of advances) issued to parties for completion of assets. 2.25 Government Grants:
2.24 Critical Estimates and Judgements: Grants from the government are recognised at their fair
 he preparation of financial statements requires the use
T value where there is a reasonable assurance that the
of accounting estimates which, by definition, will seldom grant will be received and the company will comply with
equal the actual results. Management also exercise all attached conditions.
judgement in applying the Company’s accounting policies. Government grants relating to income are deferred and
Detailed information about the areas that involved a recognised in the profit or loss over the period necessary
higher degree of judgement or complexity, and of items to match them with the costs that they are intended to
which are more likely to be materially adjusted due to compensate and presented within other income.
estimates and assumptions turning out to be different Government grants relating to the purchase of property,
than those originally assessed. Detailed information plant and equipment are included in non-current liabilities
about each of these estimates and judgements is included as deferred income and are credited to profit or loss on
in relevant notes together with information about the a straight-line basis over the expected lives of the related
basis of calculation for each affected line item in the assets and presented within other income.
financial statements.
Export entitlements from government authorities are
The areas involving critical estimates or judgements are: recognised in the statement of profit and loss as income
(i) Estimation of current tax expense and current tax or as a reduction from “Cost of materials consumed”, when
payable – refer note: 30(b) there is reasonable assurance that the entity will comply
with the conditions attaching to them and the grants will
(ii) Estimation of defined benefit obligations- refer be received
note: 16
2.26 Rounding of Amounts:
(iii) Allowance for uncollected accounts receivable and
 ll amounts disclosed in the financial statements and
A
advances. Trade receivables do not carry any interest
notes have been rounded off to the nearest lakhs as per
and are stated at their nominal value as reduced by
the requirement of Schedule III of the Companies Act,
appropriate allowances for estimated irrevocable
2013 unless otherwise stated.
amounts. Individual trade receivables are written off
when management deems them not to be collectible.
Impairment is made on the expected credit losses,

134
 Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 3: Property, Plant and Equipment

Computer
Freehold Plant and Roads and Furniture Office Laboratory and data
Vehicles Total
Land Machinery Buildings and Fixtures Equipment Equipment processing
units
Year ended March 31, 2022
Gross carrying amount
At the beginning of the year 17,151 3,06,509 1,14,205 4,364 1,349 3,230 17,716 2,075 4,66,599
Additions 123 56,575 29,299 611 1,255 642 4,002 377 92,884
Disposals - (231) (2) - - - - - (233)
At the end of the year 17,274 3,62,853 1,43,502 4,975 2,604 3,872 21,718 2,452 5,59,250
Accumulated depreciation
At the beginning of the year - 72,988 12,264 1,708 478 1,921 6,700 1,134 97,193
Depreciation charge during the year - 23,230 4,386 446 215 407 1,687 366 30,737
Disposals - (28) - - - - - - (28)
At the end of the year - 96,190 16,650 2,154 693 2,328 8,387 1,500 1,27,902
Net carrying amount as at March 31, 2022 17,274 2,66,663 1,26,852 2,821 1,911 1,544 13,331 952 4,31,348
Year ended March 31, 2023
Gross carrying amount
At the beginning of the Year 17,274 3,62,853 1,43,502 4,975 2,604 3,872 21,718 2,452 5,59,250
Additions 2,189 54,990 12,474 710 138 502 2,662 257 73,922
Corporate Overview

Disposals (40) (30) (36) - (1) - - - (107)

At the end of the year 19,423 4,17,813 1,55,940 5,685 2,741 4,374 24,380 2,709 6,33,065
Accumulated depreciation
At the beginning of the year - 96,190 16,650 2,154 693 2,328 8,387 1,500 1,27,902
Depreciation charge during the year - 25,543 4,850 482 264 437 1,883 356 33,815
Disposals - - - - - - - - -
At the end of the year - 1,21,733 21,500 2,636 957 2,765 10,270 1,856 1,61,717
Statutory Reports

Net carrying amount as at March 31, 2023 19,423 2,96,080 1,34,440 3,049 1,784 1,609 14,110 853 4,71,348
Notes:

(a) Title deeds of the immovable properties included above are held in the name of the company.

(b) Contractual obligations and other commitments: Refer Note 40 for disclosure of contractual and other commitments for the acquisition of property, plant and equipment.

(c) T he gross carrying amounts of roads and buildings and plant and machinery and capital work in progress in note 4 includes staff cost of `570(March 31, 2022: `437) relating to projects
team involved in supervision and monitoring of these projects and cost of power consumed of `310 (March 31, 2022: `281)

(d) The company has not revalued its Property, plant and equipment during the year or in the previous year
Financial Statements

33rd Annual Report 2022-23 | 135

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 4: Capital Work-in-progress

Amount
Year ended March 31, 2022
At the beginning of the year 71,062
Additions 69,387
Capitalisations (93,456)
As at March 31, 2022 46,993
Year ended March 31, 2023
At the beginning of the Year 46,993
Additions 48,335
Capitalisations (74,140)
As at March 31, 2023 21,188

Note 4(a): Capital Work-in-progress Ageing Schedule

Amount in CWIP for a period of
As at March 31, 2023 Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 16,517 2,723 964 984 21,188
Projects temporarily suspended - - - - -

Amount in CWIP for a period of

As at March 31, 2022
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 39,708 5,161 1,332 792 46,993
Projects temporarily suspended - - - - -
Note 4(b): There are no capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan as at March 31,
2023 and March 31, 2022.

Note 4(c): Assets under construction majorly consist of roads & buildings, plant & machinery and corresponding internal development costs. During
the year, the Company has incurred capital costs of `48,335 on capital work-in-progress at various locations and which includes staff cost of `133
(March 31, 2022: `131) relating to projects team involved in supervision and monitoring of these projects and cost of power consumed `29 (March 31,
2022: `39)

Note 5: Intangible Assets

Computer
software
Year ended March 31, 2022
Gross carrying amount
At the beginning of the year 1,947
Additions 572
Disposals -
At the end of the year 2,519
Accumulated amortisation
At the beginning of the year 1,452
Amortisation charge during the year 318
Disposals -
At the end of the year 1,770
Net carrying amount as at March 31, 2022 749

136
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Computer
software
Year ended March 31, 2023
Gross carrying amount
At the beginning of the year 2,519
Additions 218
Disposals (77)
At the end of the year 2,660
Accumulated amortisation
At the beginning of the year 1,770
Amortisation charge during the year 392
Disposals (30)
At the end of the year 2,132
Net carrying amount as at March 31, 2023 528
Note:

a) The company has not revalued intangible assets during the year or in the previous year

Note 6: Non-current Investments

March 31, 2023 March 31, 2022
Unquoted, fully paid up
(a) Investment in equity instruments in subsidiary companies (at cost)
2000 (March 31,2022:2000) ordinary shares of US$ 0.01 each of Divis Laboratories (USA) Inc * 332 332
200 (March 31,2022:200) ordinary shares of CHF 500 each of Divi's Laboratories Europe AG ** 404 404
Investment in equity instruments in other companies (at FVPL)
12000 (March 31, 2022:12000) equity shares of `10/- each of Pattan Cheru Enviro Tech Limited 1 1
Total equity instruments 737 737

(b) Investment in debentures in other companies (at FVPL)

Redeemable 0.25%, 7,20,00,000 optionally convertible debentures(OCDs) of `10/- each 7,704 7,200
(Including change in fair value of investments in OCDs `504 (March 31, 2022: Nil))
Total debentures 7,704 7,200
Total non-current investments 8,441 7,937

Aggregate amount of unquoted investments 8,441 7,937

Aggregate amount of quoted investments and market value thereof - -
Aggregate amount of impairment in the value of investment - -

* `87 (March 31, 2022: `87) included in the cost of investment is on account of fair valuation of interest free loans given to subsidiary.

** `367 (March 31, 2022: `367) included in the cost of investment is on account of fair valuation of interest free loans given to subsidiary.

33rd Annual Report 2022-23 | 137

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 7: Income Tax Assets (Net)

March 31, 2023 March 31, 2022
7(a). Income tax asset - Non-Current
Prepaid income taxes 2,917 2,917
2,917 2,917
7(b). Income tax asset - Current
Prepaid income taxes 52,987 1,31,657
Provision for income tax (43,200) (1,25,889)
9,787 5,768
Total Income tax asset 7(a)+7(b) 12,704 8,685

Note 7(c): Movement in income tax assets

March 31, 2023 March 31, 2022
Income tax assets - at the beginning of the year 8,685 10,287
Add: Taxes paid during the year 47,159 66,780
Less: Others (refund received) - (3,801)
Add/(Less): Adjustments of current tax for prior years 60 (281)
Add: MAT credit utilisation 744 -
Less: Current tax provision (43,944) (64,300)
Net Income tax asset - at the end of the year 12,704 8,685

Note 8: Other Non-current Assets

March 31, 2023 March 31, 2022
Capital advances 1,899 4,832
Pre-paid expenses 117 89
Other receivables including indirect tax refund claims 84 562
Total other non-current assets 2,100 5,483

Note 9: Inventories
March 31, 2023 March 31, 2022
(Valued at lower of cost and net realisable value)
Raw materials 94,562 75,476
Work-in-progress 1,52,571 1,53,159
Finished goods 11,009 15,437
Packing material 936 916
Stores and spares 18,967 19,417
Total Inventories 2,78,045 2,64,405

Raw materials and finished goods consists of goods in transit of `6,028 (March 31, 2022- `6,979) and `10,546 (March 31, 2022-
`14,351) respectively.

Amounts Recognised in Profit and Loss

Write-downs of inventories to net realisable value and on account of slow moving inventory amounted to `1,130 (March 31, 2022
- `548). These were recognised in statement of profit and loss and included in ‘Changes in inventories of finished goods and work-
in-progress ‘ and ‘Cost of raw materials consumed’.

138
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 10: Trade Receivables

March 31, 2023 March 31, 2022
Trade receivables from others 1,67,264 2,30,192
Trade receivables from related parties 29,238 26,870
Gross trade receivables 1,96,502 2,57,062
Less: Loss allowance 72 72
Net trade receivables 1,96,430 2,56,990
Current portion 1,96,430 2,56,990
Non-current portion - -

(a) Security wise Break-up of Trade Receivables

March 31, 2023 March 31, 2022
Trade receivables considered good- secured - -
Trade receivables considered good - unsecured 1,96,447 2,56,990
Trade receivables which have significant increase in credit risk 55 55
Trade receivables - credit impaired - 17
Total 1,96,502 2,57,062
Less: Loss allowance 72 72
Total trade receivables 1,96,430 2,56,990

(b) Ageing of Trade Receivables

Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than 6 Months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
March 31, 2023
Undisputed trade receivables
considered good - 1,54,711 37,546 4,164 9 - - 1,96,430
which have significant increase in credit risk - - - - - - - -
credit impaired - - - - 17 - - 17
Disputed trade receivables
considered good - - - - - - - -
which have significant increase in credit risk - - - - - - 55 55
credit impaired - - - - - - - -
Total - 1,54,711 37,546 4,164 26 - 55 1,96,502
Less: Loss allowance - - - 17 - 55 72
Total trade receivables 1,96,430

Outstanding for following periods from due date of payment

Particulars Unbilled Not due Less than 6 Months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
March 31, 2022
Undisputed trade receivables
considered good - 2,19,552 37,241 197 - - - 2,56,990
which have significant increase in credit risk - - - - - - - -
credit impaired - - - 17 - - - 17
Disputed trade receivables
considered good - - - - - - - -
which have significant increase in credit risk - - - - - - 55 55
credit impaired - - - - - - - -
Total - 2,19,552 37,241 214 - - 55 2,57,062
Less: Loss allowance - - - 17 - - 55 72
Total trade receivables 2,56,990

33rd Annual Report 2022-23 | 139

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 11: Cash and Cash Equivalents

March 31, 2023 March 31, 2022
Balances with banks
- in current accounts 250 598
- in term deposits with maturity period not more than three months 14,077 1,19,288
Cash on hand 90 70
Total cash and cash equivalents* 14,417 1,19,956
*There are no repatriation restrictions on cash and cash equivalents as at the end of the current year and previous year.

Note 12: Bank Balances other than Cash and Cash Equivalents
March 31, 2023 March 31, 2022
Balances in earmarked accounts with banks:
- Unclaimed dividend 114 107
Balances in term deposit accounts with maturity period of more than three months
and not more than twelve months:
- pledged towards overdraft facilities with banks 7,557 7,241
- pledged towards margin on guarantees issued by bank 402 374
- other unencumbered deposits 3,96,266 1,52,690
Total bank balances other than cash and cash equivalents 4,04,339 1,60,412

Note 13: Other Financial Assets

March 31, 2023 March 31, 2022
13(a): Other financial assets - non- current:
Security deposits 4,931 5,609
Term deposits with bank with maturity period exceeding twelve months 164 154
(pledged towards margin on guarantees issued by bank)
Total other financial assets - non -current 5,095 5,763
13(b): other financial assets - current:
Export incentive receivable 43 105
Rental deposit 342 342
Other deposits 219 11
Insurance claims receivable 3 26
Total other financial assets - current 607 484
Total other financial assets (a+b) 5,702 6,247

Note 14: Other Current Assets

March 31, 2023 March 31, 2022
Indirect taxes- input credits 13,764 10,054
Prepaid expenses 2,644 2,676
Advances to suppliers 3,381 8,722
Other receivables including indirect tax refund claims 131 129
Total other current assets 19,920 21,581

140
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 15: Equity Share Capital and Other Equity

Note15(a): Equity Share Capital
(i) Authorised equity share capital
Particulars Number of shares Amount
As at April 1, 2021 30,00,00,000 6,000
Movement during the year - -
As at March 31, 2022 30,00,00,000 6,000
Movement during the year - -
As at March 31, 2023 30,00,00,000 6,000

(ii) Issued, subscribed and paid-up equity share capital

Particulars Number of shares Amount
As at April 1, 2021 26,54,68,580 5,309
Movement during the year - -
As at March 31, 2022 26,54,68,580 5,309
Movement during the year - -
As at March 31, 2023 26,54,68,580 5,309

Terms and rights attached to equity shares

The company has only one class of equity shares having par value of `2 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. The distribution will be in proportion to the number of equity
shares held by the shareholders. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll, each share is entitled to one vote.

(iii) Details of shareholders holding more than 5% shares in the company

March 31, 2023 March 31, 2022
Number of shares % holding Number of shares % holding
Dr. Satchandra Kiran Divi 5,40,00,000 20.34% 5,40,00,000 20.34%
Mrs. Swarnalatha Divi 1,40,00,000 5.27% 1,40,00,000 5.27%
Ms. Nilima Prasad Divi 5,40,00,000 20.34% 5,40,00,000 20.34%
SBI Mutual Fund 2,04,76,057 7.71% 1,38,35,574 5.21%
Life Insurance Corporation of India 1,47,30,917 5.55% 62,43,609 2.35%

(iv) Shareholdings of promoters and promoter group:

March 31, 2023 March 31, 2022
Promoter Name % of total % of change % of total % of change
No. of shares No. of shares
shares during the year shares during the year
Dr. Murali Krishna Prasad Divi 75,67,000 2.85% 0.00% 75,67,000 2.85% 0.00%
Dr. Satchandra Kiran Divi 5,40,00,000 20.34% 0.00% 5,40,00,000 20.34% 0.00%
Ms. Nilima Prasad Divi 5,40,00,000 20.34% 0.00% 5,40,00,000 20.34% 0.00%
Mrs. Swarnalatha Divi 1,40,00,000 5.27% 0.00% 1,40,00,000 5.27% 0.00%
Divis Biotech Private Limited 80,00,000 3.01% 0.00% 80,00,000 3.01% 0.00%
Mr. Madhusudana Rao Divi 2,89,600 0.11% 0.00% 2,97,600 0.11% 0.00%
Mr. Babu Rajendra Prasad Divi 26,600 0.01% 0.00% 26,600 0.01% 0.00%
Mr. Radhakrishna Rao Divi - 0.00% -100% 3,000 0.00% 0.00%

33rd Annual Report 2022-23 | 141

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 15(b): Other Equity

March 31, 2023 March 31, 2022
Reserves and surplus
Securities premium reserve 7,988 7,988
General reserve 1,00,000 1,00,000
Retained earnings 10,92,156 9,96,753
Special economic zone re-investment reserve 65,089 59,085
Total other equity 12,65,233 11,63,826

(i) There is no movement in securities premium reserve and general reserve during the year and previous year.
(ii) Retained earnings
March 31, 2023 March 31, 2022
At the beginning of the year 9,96,753 7,58,831
Profit after tax for the year 1,80,815 2,94,854
Transfer to special economic zone re-investment reserve (14,559) (12,520)
Transfer from special economic zone re-investment reserve 8,555 8,464
Dividends paid to company's shareholders (79,641) (53,094)
Items of other comprehensive income recognised directly in retained earnings:
- Remeasurements of post employment benefit obligation, net of tax 233 218
At the end of the year 10,92,156 9,96,753

(iii) Special economic zone re-investment reserve

March 31, 2023 March 31, 2022
At the beginning of the year 59,085 55,029
Transfer from retained earnings 14,559 12,520
Transferred to retained earnings (8,555) (8,464)
At the end of the year 65,089 59,085

Nature and purpose of reserves:

Securities premium reserve:
Securities premium reserve is used to record the premium on issue of securities. This reserve is utilised in accordance with the
provisions of the Act.

General Reserve:
General Reserve represents amounts transferred from retained earnings in earlier years under the provisions of the erstwhile
Companies Act, 1956

Special Economic Zone Re-investment reserve:

Under the SEZ scheme, the unit which begins production of Goods/ services on or after April 1, 2005 is eligible for deduction of
100% of profits or gains derived from export of Goods/ services for the first five years, 50% of such profits or gains for a further
period of 5 years and 50% of such profits or gains for the balance period of five years subject to creation of special economic zone
re-investment reserve out of profits of eligible SEZ units and utilisation of such reserve by the company for acquiring new plant
and equipment for the purpose of its business as per the provisions of the Income Tax Act, 1961.

142
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 16: Provisions - Employee Benefit Obligations

March 31, 2023 March 31, 2022
Current Non-current Total Current Non-current Total
Compensated absences 492 3,062 3,554 415 2,671 3,086
Gratuity - - - - - -
492 3,062 3,554 415 2,671 3,086

(a) Compensated Absences Obligations:

 he Compensated Absences covers the company’s liability for earned leave which is classified as other long-term benefits.
T
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore measured at the present value of expected future payments to
be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit
method. The benefit is discounted using the market yields at the end of the reporting period that have terms approximating
to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial
assumptions are recognised in statement of profit and loss

(b) Post-employment Obligations- Gratuity: (Defined Benefit)

 he company provides gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous
T
service for a period of 5 years are eligible for gratuity benefit. The amount of gratuity payable on retirement/termination is
the employees’ last drawn basic salary per month computed proportionately for 15 days’ salary multiplied for the number
of years of service. The gratuity plan is a funded plan and the company makes contributions, through an approved trust, to
recognised funds administered by Life Insurance Corporation of India (Insurer)

(i)  he amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year
T
are as follows:
Present value Fair value
Net amount
of obligation of plan assets
As at April 01, 2021 3,788 (3,881) (93)
Current service cost 328 - 328
Interest expense/(income) 259 (277) (18)
Amount recognised in Statement of profit and loss 587 (277) 310
Remeasurements
Return on plan assets, excluding amounts included in interest expense/(income) - 9 9
(Gain)/loss from change in demographic assumptions - - -
(Gain)/loss from change in financial assumptions (268) - (268)
Experience (gains)/loss 167 - 167
Amount recognised in other comprehensive income (101) 9 (92)
Amount recognised in total comprehensive income 486 (268) 218
Employer contributions - (362) (362)
Benefit payments (57) 57 -
As at March 31, 2022 4,217 (4,454) (237)

33rd Annual Report 2022-23 | 143

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Present value of Fair value of plan

Net amount
obligation assets
As at April 01, 2022 4,217 (4,454) (237)
Current service cost 354 - 354
Interest expense/(income) 310 (299) 11
Amount recognised in Statement of profit and loss 664 (299) 365
Remeasurements
Return on plan assets, excluding amounts included in interest expense/(income) - 1 1
(Gain)/loss from change in demographic assumptions - - -
(Gain)/loss from change in financial assumptions (71) - (71)
Experience (gains)/loss (74) - (74)
Amount recognised in other comprehensive income (145) 1 (144)
Amount recognised in total comprehensive income 519 (298) 221
Employer contributions - (62) (62)
Benefit payments (47) 47 -
As at March 31, 2023 4,689 (4,767) (78)

The net liability disclosed above relates to funded plan is given below:
March 31, 2023 March 31, 2022
Present value of funded obligations 4,689 4,217
Fair value of plan assets (4,767) (4,454)
Surplus of funded plans* (78) (237)
* Included under note 14 ‘Other current assets’

(ii) Significant estimates: Actuarial assumptions

The significant actuarial assumptions considered are:
March 31, 2023 March 31, 2022
Discount rate 7.52% 7.39%
Salary growth rate 6% 6%
Attrition rate depending on age 1% to 3% 1% to 3%
Retirement age 60 years 60 years
Average balance future service 28.41 Years 29.38 years
Mortality table IALM(2012-14) IALM(2012-14)

(iii) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
March 31, 2023 March 31, 2022
Defined benefit obligation under base scenario 4,689 4,217
Increase / (Decrease) in defined benefit obligation:
Discount rate:(% change compared to base due to sensitivity)
Increase: +1% (494) (456)
Decrease: -1% 595 551
Salary growth rate:(% change compared to base due to sensitivity)
Increase: +1% 528 511
Decrease: -1% (452) (434)
Attrition rate:(% change compared to base due to sensitivity)
Increase: +1% 91 77
Decrease: -1% (105) (88)

144
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and
when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used
in preparing the sensitivity analysis did not change compared to the previous year.

(c) Defined Benefit Liability

The company has established a trust to administer its obligation for payment of gratuity to employees. The trust in turn
contributes to a scheme administered by the Life Insurance Corporation of India (Insurer). Every year, the insurer carries
out a funding valuation based on the latest employee data provided by the company. Any deficit in the assets arising as a
result of such valuation is funded by the company. The trust has not changed the process used to manage the risks from
previous years.

The major categories of plan assets are as follows:

March 31, 2023 March 31, 2022
*Fund managed by Life Insurance Corporation of India (Unquoted) 100% 100%
*Fund is managed by LIC as per IRDA guidelines, category-wise composition of the plan assets is not available.

Contributions to post employment benefit plan for the year ending March 31, 2024 is expected to be `543

The weighted average duration of the defined benefit obligation is 17.73 years (March 31, 2022 - 13.32 Years). The expected
maturity analysis of undiscounted gratuity is as follows:

Less than a Between Between Between Over

Particulars Total
year 1-2 years 2-5 years 6-10 years 10 years
March 31, 2023
Defined benefit obligation-gratuity 543 212 664 1,432 11,549 14,400
March 31, 2022
Defined benefit obligation-gratuity 409 222 607 1,239 10,519 12,996

(d) Risk Exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are
detailed below:
Interest rate risk: The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.
 iquidity risk: This is the risk that the company is not able to meet the short term gratuity pay-out. This may arise due to
L
non-availability of enough cash / cash equivalents to meet the liabilities or holdings liquid assets not being sold in time.
Salary escalation risk: The present value of the defined benefit plans calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value obligation will have a bearing on the plan’s liability.
Demographic risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The
company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory risk: Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. increase in the
maximum limit on gratuity.)
A sset liability mismatching or market risk: The duration of the liability is longer compared to duration of assets, exposing the
company to market risk for volatilities/fall in interest rate.
 hanges in fund yields: A decrease in fund yields will increase plan liabilities, although this will be partially off-set by an
C
increase in the value of the plan’s fund holdings.

33rd Annual Report 2022-23 | 145

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(e) Defined Contribution Plans

 mployer’s contribution to provident fund: Contributions are made to provident fund in India for employees at the
E
rate of 12% of the employee’s qualifying salary as per regulations. The contributions are made to registered provident fund
administered by the government. The obligation of the company is limited to the amount contributed and it has no further
contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is
`2,560 (March 31, 2022- `2,108).

Employer’s contribution to state insurance scheme: Contributions are made to state insurance scheme for employees

at the rate of 3.25% . The contributions are made to employee state Insurance corporation (ESI), a corporation administered
by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor
any constructive obligation. The expense recognised during the period towards defined contribution plan is `342 (March 31,
2022- `311)

Note 17: Deferred Tax Liabilities (Net)

The Balance Comprises Temporary Differences Attributable to:
Particulars March 31, 2023 March 31, 2022
Deferred tax liability / (asset):
Property, plant and equipment 55,288 44,297
MAT credit entitlement - (744)
Employee benefits (1,701) (1,392)
Others 134 (21)
Net deferred tax liabilities / (asset) 53,721 42,140

Movement in Deferred Tax Liabilities /(Asset)

Changes through Changes MAT credit
Particulars April 01, 2021 March 31, 2022
Profit and Loss through OCI (created)/utilised
Property, plant and equipment 35,110 9,187 - - 44,297
Employee benefit expenses (1,225) (167) - - (1,392)
Others (79) 58 - (744) (765)
Deferred tax liability (net) 33,806 9,078 - (744) 42,140

Changes through Changes MAT credit

Particulars April 01, 2022 March 31, 2023
Profit and Loss through OCI (created)/utilised
Property, plant and equipment 44,297 10,991 - - 55,288
Employee benefit expenses (1,392) (309) - - (1,701)
Others (765) 155 - 744 134
Deferred tax liability (net) 42,140 10,837 - 744 53,721

Note 18: Current Borrowings

Maturity date and terms
Particulars Interest rate March 31, 2023 March 31, 2022
of payment
Loans payable on demand:
From banks - secured
-Working capital loans from banks Payable on demand 8.20% - -
-Overdraft facilities from banks Payable on demand 8.15% - -
Total current borrowings - -

a) Utilisation of borrowings availed from banks

The borrowings obtained by the company from banks have been applied for the purposes for which such loans are taken.

146
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

b) Quarterly statements filed with banks

The quarterly statements of current assets filed by the company in respect of its working capital facilities with banks are in
agreement with the books of accounts.

c) Wilful defaulter
 he company has not been declared as wilful defaulter by any bank or financial institutions or government or any
T
government authority.

Secured borrowings and assets pledged as security

Working capital loans are secured by pari-passu first charge on Inventories, receivables and other current assets of the company.

Overdraft facilities from banks are secured by pledge of specific term deposits with banks
Note 18(d): Assets pledged as security
The carrying amounts of Company’s assets pledged as security for working capital loans and overdraft facilities from
banks:
Particulars March 31, 2023 March 31, 2022
Current assets*
Inventory 2,78,045 2,64,405
Trade receivables 1,96,430 2,56,990
Other current assets 4,49,070 3,08,201
9,23,545 8,29,596
*Value of Letters of credit and guarantees outstanding as at March 31, 2023 is `8,568 (March 31, 2022 is `12,088)

There were no delays in registration or satisfaction of charges with Registrar of Companies beyond the statutory period.

Note 18(e): Net Debt reconciliation

This section sets out the changes in liabilities arising from financing activities in the statement of cash flows:
Particulars March 31, 2023 March 31, 2022
Borrowings outstanding at the year end - -
Cash and cash equivalents (14,417) (1,19,956)
Net debt /(surplus) (14,417) (1,19,956)
Net debt obligations - -

Liabilities from
Other assets
financing activities Net debt/
Current Cash and bank (Surplus)
borrowings overdraft
Net debt/(surplus) as at April 01,2021 35 (2,01,630) (2,01,595)
Cash Flows (35) 81,674 81,639
Interest Expense (21) - (21)
Interest paid 21 - 21
Net debt /(surplus) as at March 31, 2022 - (1,19,956) (1,19,956)
Net debt /(surplus) as at April 01, 2022 - (1,19,956) (1,19,956)
Cash flows - 1,05,539 1,05,539
Interest expense (18) - (18)
Interest paid 18 - 18
Net debt /(surplus) as at March 31, 2023 - (14,417) (14,417)

33rd Annual Report 2022-23 | 147

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 19: Trade Payables

March 31, 2023 March 31, 2022
Current
Trade payables -micro and small enterprises (Refer note no. 41) 3,749 2,478
Trade payables -others 70,515 74,652
Total trade payables 74,264 77,130

(a) Ageing of Trade Payables

As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than More than Total
1-2 years 2-3 years
1 year 3 years
Undisputed trade payables
Micro and small enterprises - 3,749 - - - - 3,749
Others 14,240 38,100 18,161 14 - - 70,515
Total trade payables 14,240 41,849 18,161 14 - - 74,264

As at March 31, 2022

Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 years 2-3 years
year 3 years
Undisputed trade payables
Micro and small enterprises - 1,971 507 - - - 2,478
Others 19,506 21,443 33,703 - - - 74,652
Total trade payables 19,506 23,414 34,210 - - - 77,130

(b) There are no trade payables with no specified due date of payments as at March 31, 2023 and March 31, 2022.
(c) There are no disputed trade payables as at March 31, 2023 and March 31, 2022.

Note 20: Other Financial Liabilities

March 31, 2023 March 31, 2022
Current
Capital creditors 3,669 5,543
Unclaimed dividend 114 107
Accrual for rebates / discounts 556 639
Total other financial liabilities 4,339 6,289

Note 21: Other Current Liabilities

March 31, 2023 March 31, 2022
Statutory dues payable 1,271 1,170
Deferred revenue government grants 87 76
Employee benefits payable 23,244 30,097
For corporate social responsibility activity (Net of advances of `105) [refer note 29(b)(i)] 868 -
Advance from customers 3,272 1,663
Total Other current liabilities 28,742 33,006

148
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 22: Revenue from Operations

March 31, 2023 March 31, 2022
Sale of products 7,50,437 8,70,810
Sale of services 1,936 1,112
Other operating revenue:
Sale of scrap out of manufacturing process 8,287 10,695
Export incentives 1,870 5,365
Total revenue from operations 7,62,530 8,87,982

Note 22(a): Reconciliation of Revenue Recognised with Contract Price:

March 31, 2023 March 31, 2022
Contract price 7,65,839 8,87,001
Rebates / Discounts (5,179) (4,384)
Revenue from contracts with customers 7,60,660 8,82,617

Note 22(b): Disaggregation of Revenue:

The Company derives revenue from operations viz., Sale of products and services and other operating revenue from the following
geographical areas(based on where products and services are delivered):

March 31, 2023 March 31, 2022

Region Revenue from Revenue from

Other operating Total revenue Other operating Total revenue
contracts with contracts with
Revenue from operations revenue from operations
customers customers
America 2,19,637 - 2,19,637 3,83,291 - 3,83,291
Asia 1,04,124 - 1,04,124 79,807 - 79,807
Europe 3,06,288 - 3,06,288 2,86,480 - 2,86,480
India 95,688 1,870 97,558 98,419 5,365 1,03,784
Rest of the world 34,923 - 34,923 34,620 - 34,620
7,60,660 1,870 7,62,530 8,82,617 5,365 8,87,982

Note 23: Other Income

March 31, 2023 March 31, 2022
Interest income from financial assets at amortised cost 20,459 6,896
Change in fair value of non-curent investments -OCDs 504 -
Net gain on foreign currency transactions and translations 13,402 3,798
Miscellaneous income 526 423
Government grants 10 9
Total other income 34,901 11,126

Note 24: Cost of Raw Materials Consumed

March 31, 2023 March 31, 2022
Raw materials at the beginning of the year 75,476 69,495
Add: Purchases 3,17,035 3,49,960
Less: Raw materials at the end of the year 94,562 75,476
Total cost of raw materials consumed 2,97,949 3,43,979

33rd Annual Report 2022-23 | 149

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 25: Changes in Inventories of Finished Goods and Work-in-progress

March 31, 2023 March 31, 2022
Opening Balance:
Finished goods 15,437 14,263
Work-in-progress 1,53,159 1,09,334
1,68,596 1,23,597
Closing Balance:
Finished goods 11,009 15,437
Work-in-progress 1,52,571 1,53,159
1,63,580 1,68,596
Total changes in inventories of finished goods and work-in-progress 5,016 (44,999)

Note 26: Employee Benefits Expense

March 31, 2023 March 31, 2022
Salaries, wages, bonus and other allowances* 90,387 88,202
Contribution to provident fund and other fund 2,560 2,108
Contribution to ESI 342 311
Staff welfare expenses 2,016 2,034
Total employee benefits expense 95,305 92,655
*Net of `133 (March 31, 2022 `131) transferred to capital work-in-progress (Refer Note 4)

Note 27: Finance Costs

March 31, 2023 March 31, 2022
Interest and finance charges on financial liabilities carried at amortised cost 18 21
Interest on income tax - 1
Charges for letters of credit / bank guarantees 34 43
Total finance costs 52 65

Note 28: Depreciation and Amortisation Expense

March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 33,815 30,737
Amortisation of intangible assets 392 318
Total depreciation and amortisation expense 34,207 31,055

150
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 29: Other Expenses

March 31, 2023 March 31, 2022
Consumption of stores and spares 6,832 6,364
Packing materials consumed 5,553 5,939
Power and fuel* 49,529 38,753
Repairs and maintenance- buildings 3,974 2,910
Repairs and maintenance- machinery 16,781 15,593
Repairs and maintenance- others 193 188
Insurance 2,899 2,602
Rates and taxes, excluding taxes on income 1,496 1,690
Non-executive directors' remuneration including sitting fees 211 217
Printing and stationery 696 701
Rental charges 1,139 1,033
Communication expenses 145 149
Travelling and conveyance 8,777 4,871
Vehicle maintenance 124 109
Payments to auditors (Refer note no.29(a)) 70 66
Legal and professional charges 1,452 759
Factory upkeep 682 483
Environment management expenses 5,018 4,013
Advertisement and publication expenses 6 8
Research and development expenses (Refer note no.29(c)) 3,005 2,029
Sales commission 949 1,159
Carriage outward 8,079 9,589
General expenses 6,135 5,021
Electricity service line charges 132 252
Provision for doubtful debts/ (written back) including bad debts recovered - (277)
Corporate social responsibility activities (CSR) (Refer note no.29(b)) 5,385 4,167
Loss on disposal / discard of assets 113 205
Bank charges 117 108
Total Other expenses 1,29,492 1,08,701
*Net of `29 (March 31, 2022: `39) transferred to capital work in progress (refer note 4)

Note 29(a): Details of Payments to Auditors

March 31, 2023 March 31, 2022
As statutory auditor 40 40
For quarterly reviews 26 24
Reimbursement of expenses 4 2
Total payments to auditors 70 66

33rd Annual Report 2022-23 | 151

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 29(b)(i): Expenditure on Corporate Social Responsibility Activities(CSR)

The Company has spent amounts as specified below towards various schemes of Corporate Social Responsibility activities as
prescribed under Section 135 of the Companies Act, 2013.

March 31, 2023 March 31, 2022

(i) Construction / acquisition of any asset - -
(ii) On purposes other than (i) above 4,224 4,213
Total Amount spent during the year 4,224 4,213
Add: Excess amount of CSR expenditure spent under 135(5) of the act in the earlier years. 293 247
Less: Amount required to be spent for the year 5,385 4,167
Excess amount of CSR expenditure spent under 135(5) of the act - 293
Amount of shortfall for the year 868 -
Amount of cumulative shortfall at the end of the year 868 -
Reason for shortfall * N/A
iii) Nature of CSR activities Promoting healthcare, education,
Rural development, Empowering
women, safe drinking water,
Environmental sustainability, Rural
sports, Swatch Bharat programme,
support to differently abled, livelihood
enhancement etc.,
* T he unspent amount of `868, is on account of ongoing projects, which has been transferred to unspent CSR account after year end and will be spent
in accordance with the CSR amendment rules.

i) There are no transactions with related parties / trusts controlled by the company with respect to CSR Expenditure.

Note 29(c): Research and Development Expenses*

March 31, 2023 March 31, 2022
Salaries, wages, bonus and other allowances 3,722 3,268
Contribution to provident and other funds 165 158
Contribution to ESI 12 8
Staff welfare expenses 30 32
Consumption of stores and spares 1,107 749
Power and fuel 290 233
Repairs to buildings 47 26
Repairs to machinery 479 526
Repairs to other assets 24 18
Rates and taxes, excluding taxes on income 9 5
Printing and stationery 25 20
Professional and consultancy charges 964 398
Miscellaneous expenses 60 54
Total research and development expenses 6,934 5,495
* Research and development expenditure to the extent of `3,929(March 31, 2022: `3,466) is grouped under employee benefit expenses (consists of
Salaries, wages, bonus and other allowances, contribution to provident and other funds and staff welfare expenses) and `3,005(March 31, 2022:
`2,029) is grouped under other expenses

152
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 30(a): Tax Expense

March 31, 2023 March 31, 2022
(i) Current tax expense
Current tax on profits for the year 43,818 63,439
Current tax charge /(reversals) of earlier years (60) 281
Total current tax expense 43,758 63,720
(ii) Deferred tax expense *
Decrease /(Increase) in deferred tax assets (1,053) 635
(Decrease) /Increase in deferred tax liabilities 11,890 8,443
Total deferred tax expense/(benefit) 10,837 9,078
(iii) Tax expense recognised in statement of profit and loss (i+ii) 54,595 72,798
(iv) Tax expense recognised in other comprehensive income 126 117
Total tax expense (iii+iv) 54,721 72,915
*Entire deferred tax as on March 31, 2023 and March 31, 2022 relates to origination and reversal of temporary differences.

30 (b): The Company benefits from the tax holiday available for units set up under the Special Economic Zone Act, 2005. These
tax holidays are available for a period of fifteen years from the date of commencement of operations. Under the SEZ scheme,
the unit which begins production of Goods/services on or after April 01, 2005 and on or before June 30, 2020 will be eligible for
deductions of 100% of profits or gains derived from export of Goods/services for the first five years, 50% of such profits or gains
for a further period of five years and 50% of such profits or gains for the balance period of five years subject to creation of special
economic zone re-investment reserve out of profits of eligible SEZ units and utilisation of such reserve in terms of the provisions
of the Income Tax Act, 1961.

30 (c) Reconciliation of Tax Expense and the Accounting Profit Multiplied by Tax Rate:
March 31, 2023 March 31, 2022
Profit from operations before income tax expenses 2,35,410 3,67,652
Tax at the rate of 34.944% 82,262 1,28,472
Tax effect of amounts which are not deductible/ (includible) in calculating taxable income:
Expenses not deductible for tax purpose 1,882 1,239
Income not includible for tax purpose (35,016) (59,176)
Adjustments for current tax of prior periods (60) 281
Income includible for tax purpose 6,186 837
Others (533) 1,262
Total tax expense 54,721 72,915

33rd Annual Report 2022-23 | 153

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Financial instruments and risk management

Note 31: Categories of Financial Instruments

March 31, 2023 March 31, 2022
Particulars Notes Level Carrying value / Carrying value /
fair value fair value
A. Financial assets 6 3
Mandatorily measured at fair value through profit or loss
Investment in equity instruments of other companies 1 1
Investment in optionally convertible debentures (OCDs) of other 7,704 7,200
companies*
Mandatorily measured at amortised cost
Investment in equity instruments of subsidiary companies 6 736 736
Trade receivables 10 1,96,430 2,56,990
Security deposits 13(a) 4,931 5,609
Cash and cash equivalents and other bank balances 11 and 12 4,18,756 2,80,368
Other financial assets 13(a) and 13(b) 771 638
Total financial assets 6,29,329 5,51,542
B. Financial liabilities
Mandatorily measured at amortised cost
Trade payables 19 74,264 77,130
Borrowings 18 - -
Capital creditors 20 3,669 5,543
Other financial liabilities 20 670 746
Total financial liabilities 78,603 83,419

Note 32: Fair Value Hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more
of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed
instruments where market is not liquid and for unlisted instruments.
* Optionally convertible debentures are redeemable at 10th year at 70% premium, if not converted. Incase of an early redemption, debenture holder
is eligible to get prorated premium. At any point of tenure, company can opt for conversion to equity shares at mutually agreed terms. These are
secured by way of first charge created over the aircraft.

Valuation Technique used to Determine Fair Value:

Specific valuation techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments.

• the fair value of remaining financial instruments is determined using discounted cash flow analysis.

Valuation Process:
The Level 3 inputs for investment in equity shares and OCDs are derived using the discounted cash flow analysis.

154
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 33: Financial Risk Management

The Company’s activities expose it to credit risk, market risk, price risk and liquidity risk. The Company emphasizes on risk
management and has an enterprise wide approach to risk management. The Company’s risk management and control procedures
involve prioritisation and continuing assessment of these risks and devise appropriate controls, evaluating and reviewing the
control mechanism.

(A) Credit Risk:

Credit risk management

I.  redit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks that are majorly
C
owned by the Government of India thereby minimising its risk.

II. Credit risk on security deposits, term deposits, trade receivables and other financial assets are evaluated as follows:

Expected Credit Loss for Financial Assets:

Basis for recognition of expected
Category Asset Group
credit loss provision
Financial assets for which credit risk has not Loss allowance measured at Other Non-Current Financial assets
increased significantly since initial recognition 12 month expected credit losses Other Current Financial assets

Expected Credit Loss for Financial Assets:

March 31, 2023 March 31, 2022
Asset Group Gross carrying Expected Carrying amount Gross carrying Expected Carrying amount
amount credit loss net of provision amount credit loss net of provision
Other Non-Current Financial assets 5,095 - 5,095 5,763 - 5,763
Other Current Financial assets 607 - 607 484 - 484

Expected Credit Loss from Treasury Operations and for Trade Receivables:
Credit risk is the risk of financial loss to the Company if a customer to a financial instrument fails to meet its contractual obligations
and arises primarily from trade receivables, treasury operations etc. Credit risk of the Company is managed at the Company level.
In the area of treasury operations, the Company is presently exposed to risk relating to term deposits made with State Bank of
India and Scheduled banks. The Company regularly monitors such deposits and credit ratings of the banks thereby minimising
the risk.

The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer. The credit risk
is managed by the company by establishing credit limits and continuously monitoring the credit worthiness of the customer. The
Company also provides for expected credit losses, based on the payment profiles of sales over a period of 12 months before
the reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates are
adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to
settle the receivables where it believes that there is high probability of default. The Company has considered possible effect on
Credit risks including forward looking information to develop expected credit losses.

As the management deals with highly credit worthy customers and in past three years there were no instances of defaults w.r.t
the receivables from customers, accordingly provision matrix has not been disclosed.

Following are the Expected Credit Loss for Trade Receivables under Simplified Approach:
March 31, 2023 March 31, 2022
Gross carrying amount of trade receivables 1,96,502 2,57,062
Expected credit losses (loss allowance provision) 72 72
Net carrying amount of trade receivables 1,96,430 2,56,990

33rd Annual Report 2022-23 | 155

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Expected Credit Loss for Trade Receivables under Simplified Approach as at March 31, 2023
Outstanding

Ageing Not due more than Total

for less for more
90 days & less
than 90 days than 180 days
than 180 days
Gross carrying amount of trade receivables 1,54,711 30,338 7,208 4,245 1,96,502
Provision for doubtful debts (specific) - - - (55) (55)
Expected credit losses (loss allowance provision) - - - (17) (17)
Net carrying amount of trade receivables 1,54,711 30,338 7,208 4,173 1,96,430

Expected Credit Loss for Trade Receivables under Simplified Approach as at March 31, 2022
Outstanding

Ageing Not due more than Total

for less for more
90 days & less
than 90 days than 180 days
than 180 days
Gross carrying amount of trade receivables 2,19,552 29,946 7,295 269 2,57,062
Provision for doubtful debts (specific) - - - (55) (55)
Expected credit losses (loss allowance provision) - - - (17) (17)
Net carrying amount of trade receivables 2,19,552 29,946 7,295 197 2,56,990

Reconciliation of Loss Allowance Provision in Respect of Trade Receivables:

Total
Loss allowance on April 01, 2021 209
Change in loss allowance
Add: Current year loss allowance provided -
Less: Recoveries / Writeback (137)
Less: Bad debts written off -
Loss allowance on March 31, 2022 72
Loss allowance on April 01, 2022 72
Change in loss allowance
Add: Current year loss allowance provided -
Less: Recoveries / Writeback -
Less: Bad debts written off -
Loss allowance on March 31, 2023 72

(B) Market Risk:

The Company has substantial exposure to foreign currency risk due to the significant exports. Sales to overseas customers and
purchases from overseas suppliers are exposed to risk associated with fluctuation in the currencies of those countries vis-a-vis
the functional currency i.e. Indian rupee. The Company manages currency fluctuations by having a better geographic balance
in revenue mix and ensures a foreign currency match between liabilities and earnings. The Company notes that historically
rupee has depreciated against major foreign currencies, and hence no additional measures taken to hedge the foreign currency
risk exposure. The Company is also very cautious towards hedging as it has a cost as well as its own risks. Further, Company
continually reassesses the cost structure impact of the currency volatility and engages with customers addressing such risks.

156
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(i) Foreign currency risk exposure:

March 31, 2023 March 31, 2022
Currency Amount in Amount in
Amount in ` Amount in `
foreign currency foreign currency
Receivables ACU 2 174 -* 26
EUR 236 21,155 225 19,048
GBP 139 14,181 172 17,090
USD 1,729 1,42,160 2,602 1,97,249
AED 4 89 - -
Payable to suppliers USD (424) (34,863) (439) (33,276)
EUR (13) (1,198) (7) (560)
GBP - - - -
JPY - - (430) (267)
Net Foreign currency exposure Asset/(Liability) 1,41,698 1,99,310

Impact on profit after tax

(Income) / Expense
March 31, 2023 March 31, 2022
USD Sensitivity:
INR/USD -Increase by 6% (March 31, 2022: 3%) (4,188) (3,200)
INR/USD -Decrease by 6% (March 31, 2022: 3%) 4,188 3,200
ACU Sensitivity:
INR/ACU -Increase by 3% (March 31, 2022: 3%) (3) (1)
INR/ACU -Decrease by 3% (March 31, 2022: 3%) 3 1
EUR Sensitivity:
INR/EUR -Increase by 4% (March 31, 2022: 2%) (520) (240)
INR/EUR -Decrease by 4% (March 31, 2022: 2%) 520 240
GBP Sensitivity:
INR/GBP -Increase by 1% (March 31, 2022: 1%) (92) (111)
INR/GBP -Decrease by 1% (March 31, 2022: 1%) 92 111
JPY Sensitivity:
INR/JPY -Increase by 1% (March 31, 2022: 1%) - 10
INR/JPY -Decrease by 1% (March 31, 2022: 1%) - (10)
AED Sensitivity:
INR/AED -Increase by 6%(March 31, 2022:Nil) (3) -
INR/AED -Decrease by 6% (March 31, 2022: Nil) 3 -

* Amount is below the rounding off norm adopted by the company

33rd Annual Report 2022-23 | 157

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(ii) Cash Flow and fair value interest rate risk:

Interest rate exposure: The Company does not have long term borrowings. Below is the sensitivity analysis, which presents
impact on the cash flow due to the increase/decrease in the interest rates with all other variables held constant.

Impact on profit after tax

(Income) / Expense
March 31, 2023 March 31, 2022
Short term borrowings from banks:
Interest rate-increase by 100 basis points -* -*
Interest rate-Decrease by 100 basis points -* -*
* Amount is below the rounding off norm adopted by the company

(C) Price Risk:

There are no company’s investments which are subjected to price risk

(D) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when
due. Company’s treasury maintains flexibility in funding by maintaining availability under deposits in banks, adequate limits in
the current accounts etc.

(i) Contractual maturities of financial liabilities:

March 31, 2023 March 31, 2022
Less than 6-12 More than Less than 6-12 More than
Total Total
6 months months 12 months 6 months months 12 months
Current Borrowings - - - - - - - -
Trade payables 74,264 - - 74,264 77,130 - - 77,130
Other financial liabilities 4,339 - - 4,339 6,289 - - 6,289
Total 78,603 - - 78,603 83,419 - - 83,419

Note 34: Capital Management

(a) T
 he Company’s financial strategy aims to provide adequate capital for its growth plans for sustained stakeholder value.
The company’s objective is to safeguard its ability to continue as a going concern, so that it can continue to provide
returns for shareholders and benefits for other stakeholders. And depending on the financial market scenario, nature of
the funding requirements and cost of such funding, the Company decides the optimum capital structure. The Company
aims at maintaining a strong capital base so as to maintain adequate supply of funds towards future growth plans as a
going concern.

Net debt to equity ratio

March 31, 2023 March 31, 2022
Net debt -
Total Equity 12,70,542 11,69,135
Net debt to equity ratio NA NA

158
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(b) Dividend:
Dividend paid on equity shares
March 31, 2023 March 31, 2022
Dividends paid:
Final dividend 79,641 53,094

Proposed dividend not recognised at the end of the reporting period:

March 31, 2023 March 31, 2022

On equity shares of `2 each

Dividend per equity share 30 30
Dividend amount 79,641 79,641
Note: The dividend for the year ended March 31, 2023 proposed and recommended, is subject to the approval of shareholders at the ensuing
annual general meeting.

Note 35: Segment Information

Description of segments and principal activities
The Managing Director has been identified as Chief Operating Decision Maker(CODM). Operating segments are defined as
components of an enterprise for which discrete financial information is available. This is evaluated regularly by the CODM, in
deciding how to allocate resources and assessing the Company’s performance. The company is engaged in the manufacture of
Active Pharmaceutical Ingredients (API’s), Intermediates and Nutraceutical Ingredients and operates in a single operating segment.

The reportable segments have been provided in the Consolidated Financial Statements of the Company and therefore no
separate disclosure on segment information is given in this standalone financial statements.

Note 36: Short Term Lease

The Company has lease for office premise, which is renewable on a periodical basis and cancellable at the option of
the lessee and lessor. Rental expenses for short term lease recognised in statement of profit and loss for the year is `915
(March 31, 2022: `870).

Note 37: Related Party Transactions

(a) Subsidiaries : Divis Laboratories (USA) Inc.
: Divi’s Laboratories Europe AG.

(b) Key Management personnel(KMP) : Dr. Murali. K. Divi (Managing Director)

: Mr. N.V. Ramana (Executive Director)
: Mr. Madhusudana Rao Divi ((Whole-time Director- Projects)
: Dr. Kiran S. Divi (Whole-time Director and Chief Executive Officer)
: Ms. Nilima Prasad Divi (Whole-time Director- Commercial)

(c) Non-Executive Directors : Mr. K.V.K. Seshavataram (Independent Director)

: Mr. R. Ranga Rao (Independent Director)
: Dr. G. Suresh Kumar (Independent Director)
: Dr. Ramesh B. V. Nimmagadda (Independent Director)
: Dr. S. Ganapaty (Independent Director)
: Prof. Sunaina Singh (Independent Director)
: Mr. K. V. Chowdary (Independent Director)

33rd Annual Report 2022-23 | 159

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(d) Relative of Key Management personnel : Mr. Babu Rajendra Prasad Divi
: Mr. Divi Radha Krishna Rao
: Mr. Sri Ramachandra Rao Divi
: Mrs. Jhansilakshmi Pendyala
: Mrs. Divi Swarna Latha
: Mrs. Divi Raja Kumari
: Mr. Divi Satyasayee Babu
: Mrs. Shanti Chandra Attaluri
: Mrs. N. Nirmala Kumari
: Mrs. N. Chandrika Lakshmi
: Mr. N. Venkata Aniruddh
: Mrs. N. Monisha
: Mr. N. Prashanth
: Mrs. L. Vijaya Lakshmi

(e) Other related party : Divi’s Laboratories Employees’ Gratuity Trust.

: Divi’s Foundation for Gifted Children Trust.

(f) List of Related Parties over which Control / Significant Influence exists with whom the company has transactions:
Name Relationship
Divis Laboratories (USA) Inc. Wholly owned subsidiary
Divi’s Laboratories Europe AG Wholly owned subsidiary
Divi’s Properties Private Limited Company in which key management personnel have significant influence
Divi’s Biotech Private Limited Company in which key management personnel have significant influence
Divi's Laboratories Employees' Gratuity Trust. Post employment benefit plan of Divi's Laboratories Ltd*
*Refer Note No. 16(i) for information on transactions with post employment benefit plan mentioned above.

(g) Summary of Related Party transactions and balances:

March 31, 2023 March 31, 2022
Outstanding
Amount Amount Amount
balance as at
(transactions) (transactions) (transactions)
March 31, 2023
(i)  anagerial remuneration and short term employee benefits to
M 15,737 15,216 24,300 23,870
Key Management Personnel -refer 37(h) (i)
(ii) Remuneration and Sitting fees to non-executive directors-refer 211 - 217 -
37(h)(ii)
(iii) Dividend paid to key management personnel -refer 37(h)(iii) 34,840 - 23,228 -
(iv) Dividend paid to relatives of key management personnel -refer 4,479 - 2,988 -
37(h)(iv)
(v) Salary and allowances to relatives of key management 17 2 15 2
personnel - Mr. Anirudh Nimmagadda
(vi) Dividend paid to company in which key management personnel 2,400 - 1,600 -
have significant influence - M/s Divi's Biotech Private Limited
(vii) Lease Rent to a company in which key management personnel 915 - 870 -
have significant influence - M/s Divi's Properties Private Limited
(viii) Lease Rent to a company in which key management personnel 11 - - -
have significant influence - M/s Divi's Biotech Private Limited
(ix) Rent deposit to a company in which key management - 342 - 342
personnel have significant influence - M/s Divi's Properties
Private Limited
(x) Sales / Receivable - Subsidiary- Divi's Laboratories Europe AG 13,988 18,716 19,182 16,398
(xi) Sales / Receivable - Subsidiary- Divis Laboratories (USA) Inc. 18,032 10,521 16,332 10,472
(xii) Purchase / payable - Subsidiary -Divi's Laboratories USA Inc. 11 - - -

160
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Committed future sales to related parties as at the year end: March 31, 2023 March 31, 2022
(i) Subsidiary- Divi's Laboratories Europe AG 492 455

(h) Transactions with Related Parties:

March 31, 2023 March 31, 2022
Outstanding Outstanding
Amount Amount
balance as at balance as at
(transactions) (transactions)
March 31, 2023 March 31, 2022
(i) Managerial Remuneration and short term employee
benefits to Key Management Personnel
1. Dr. Murali K. Divi 7,049 7,016 11,041 11,013
2. Mr. N.V. Ramana 3,631 3,514 5,627 5,510
3. Mr. Madhusudana Rao Divi 115 6 115 -
4. Dr. Kiran S. Divi 2,479 2,340 3,767 3,676
5. Ms. Nilima Prasad Divi 2,463 2,340 3,750 3,671
15,737 15,216 24,300 23,870
(ii) Remuneration including Sitting fees to non-executive
directors
1. Mr. K.V.K. Seshavataram 30 - 29 -
2. Dr.G Suresh Kumar 32 - 32 -
3. Mr. R Ranga Rao 34 - 34 -
4. Dr. S. Ganapaty 28 - 29 -
5. Dr. Ramesh B V Nimmagadda 32 - 33 -
6. Prof. Sunaina Singh 25 - 27 -
7. Mr. K V Chowdary 30 - 33 -
211 - 217 -
(iii) Dividend paid to Key Management Personnel
1. Dr. Murali K. Divi 2,270 - 1,513 -
2. Dr. Kiran S Divi 16,200 - 10,800 -
3. Ms. Nilima Prasad Divi 16,200 - 10,800 -
4. Mr. Madhusudana Rao Divi 89 - 61 -
5. Mr. N.V. Ramana 81 - 54 -
34,840 - 23,228 -
(iv) Dividend paid to Relatives of Key Management
Personnel
1. Mr. Babu Rajendra Prasad Divi 8 - 5 -
2. Mr. Divi Radha Krishna Rao 1 - 1 -
3. Mrs. Jhansilakshmi Pendyala 2 - 2 -
4. Mrs. Divi Swarna Latha 4,200 - 2,800 -
5. Mrs. Divi Raja Kumari 5 - 3 -
6. Mrs. Shanti Chandra Attaluri 83 - 55 -
7. Mrs. N. Nirmala Kumari 12 - 8 -
8 Mrs. N. Chandrika Lakshmi 16 - 11 -
9. Mr. N. Venkata Aniruddh 50 - 34 -
10. Mrs. N. Monisha 92 - 63 -
11. Mr. N. Prashanth 10 - 6 -
4,479 - 2,988 -

(i) Terms and Conditions

Transactions relating to dividends were on the same terms and conditions that applied to other equity shareholders

33rd Annual Report 2022-23 | 161

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 38: Contingent Liabilities:

March 31, 2023 March 31, 2022
Claims against the Company not acknowledged as debts in respect of:
Disputed demands for excise duty, customs duty, sales tax, service tax and Goods and service tax for 8,903 8,903
various periods

(a) It is not practicable for the company to estimate the timings of cash flows, if any, in respect of the above pending resolution
of the respective proceedings.

Note 39: Additional Regulatory Information Required under Schedule III of Companies Act 2013:
(i) Details of Benami Property held
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) Relationship with Struck Off Companies

The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iii) Compliance with Number of Layers of Companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with Approved Scheme(s) of Arrangements

The company has not entered into any scheme of arrangements which has an accounting impact on current and previous
financial year.

(v) Utilisation of Borrowed Funds and Share Premium

A The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a.  irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
d
of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B.  he company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
T
the understanding (whether recorded in writing or otherwise) that the company shall:

a.  irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
d
of the funding party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vi) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961.

(vii) Loans or Advances to Specified Persons

The company has not granted any loans or advances in the nature of loans to promoters, directors, KMP’s and the related
parties as defined under Companies Act, 2013.

(viii) Details of Crypto Currency or Virtual Currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

162
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 40: Commitments

March 31, 2023 March 31, 2022
Property, Plant and Equipment:
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for 6,828 14,035
((Net of advances of `1,866 (March 31, 2022: `4,786))
Others:
(ii) O
 n account of bonds or legal agreements executed with Central excise/ Customs authorities/ SEZ 57,967 43,967
development commissioners

Note 41: Dues to Micro and Small Enterprises

The Company has certain dues to Micro and Small enterprises registered (suppliers) under Micro, Small and Medium Enterprises
Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act, to the extent the information is available
with the company, are as follows.

March 31, 2023 March 31, 2022

a (i) Principal amounts due to suppliers remaining unpaid as at the year-end 3,749 2,478
(ii) Interest due to suppliers remaining unpaid as at the year-end - -
b. Interest on payments beyond the appointed day paid to the suppliers during the year -
c. Interest due and payable for the delay in making payment to suppliers during the year - -
d. Amount of interest accrued and remaining unpaid to suppliers at the end of the year - -
e. Amount of further interest remaining due and payable to suppliers in succeeding years - -

Note 42: Analytical Ratios

S.No Description Numerator Denominator March 31, 2023 March 31, 2022 % Variance
a Current Ratio Total current assets Total current liabilities 8.56 7.10 20.56%
b Debt - Equity Ratio # Borrowings (Refer note 18) Total Equity NA NA NA
c Debt Service Coverage Earnings available for debt service Debt service NA NA NA
Ratio #
d Return on Equity Profit after tax Average Total Equity 14.82% 28.13% -47.32%
Ratio*
e Inventory Turnover Revenue from sale of products Average Inventory 2.80 3.76 -25.53%
Ratio* (Refer note 22)
f Trade Receivables Total Revenue from operations Average trade 3.36 4.09 -17.85%
Turnover Ratio (Refer note 22) receivables
g Trade Payables Net credit purchases Average trade payables 5.89 5.55 6.13%
Turnover Ratio
h Net Capital Turnover Total Revenue from operations Average working capital 1.00 1.46 -31.51%
Ratio* (Refer note 22)
i Net Profit Ratio* Profit after tax Total Income 22.67% 32.79% -30.86%

j Return on Capital Earnings before interest and taxes Average capital employed 18.57% 33.85% -45.14%
Employed*
k Return on Investment* Profit after tax Average total assets 13.07% 24.54% -46.74%
*Reduction in revenue from operations and operating margin resulted in adverse variances.
#
There is no debt obligation (net) to the Company during the current year and previous year.

33rd Annual Report 2022-23 | 163

Notes to the Standalone Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Description of Numerator and Denominator:

a Current Ratio
Current Ratio is computed as a ratio of total current assets to total current liabilities

b Debt - Equity Ratio

Debt - Equity Ratio is computed as a ratio of borrowings to total equity

c Debt Service Coverage Ratio

Debt Service Coverage Ratio is computed as a ratio of earnings available for debt service to debt service

i) Earnings available for debt service is sum of proft after tax, finance cost and non cash expenditure

ii) Debt service is sum of finance cost and principal repayments

d Return on Equity Ratio
 eturn on Equity Ratio is computed as a ratio of profit after tax to average of opening & closing total equity (i.e., Average Total
R
Equity)

e Inventory Turnover Ratio

Inventory Turnover Ratio is computed as a ratio of revenue from sale of products to average of opening & closing inventory(i.e.,
Average Inventory)

f Trade Receivables Turnover Ratio

Trade Receivables Turnover Ratio is computed as a ratio of revenue from operations to average of opening & closing trade
receivables(i.e., Average trade receivables)

g Trade Payables Turnover Ratio

Trade Payables Turnover Ratio is computed as a ratio of net credit purchases to average of opening & closing trade
payables (i.e., Average trade payables)

Net credit purchases consists of purchase of raw material, packing material, stores, spares & other products and services

h Net Capital Turnover Ratio

Net Capital Turnover Ratio is computed as a ratio of revenue from operations to average of opening & closing working capital
(i.e., Average working capital)
i Net Profit Ratio
Net Profit Ratio is computed as a ratio of profit after tax to total income

j Return on Capital Employed

 eturn on Capital Employed is computed as a ratio of profit before interest & taxes to average of opening & closing capital
R
employed (i.e., Average Capital employed). Capital employed consists of total equity and deferred tax liability

k Return on Investment
 eturn on investment is computed as ratio of Profit after tax to average of the opening and closing total assets(i.e., Average
R
total assets)

164
 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 43: Earnings Per Share

March 31, 2023 March 31, 2022
(a) Basic EPS
Basic earnings per share attributable to the equity holders of the company 68.11 111.07
(b) Diluted EPS
Diluted earnings per share attributable to the equity holders of the company 68.11 111.07
There are no potential dilutive shares.

(c) Reconciliation of earnings used in calculating earnings per share

March 31, 2023 March 31, 2022
Basic earnings per share
Profit attributable to the equity holders of the company used in calculating basic earnings per share 1,80,815 2,94,854
Adjustments for calculation of diluted earnings per share - -
Diluted earnings per share
Profit attributable to the equity holders of the company used in calculating diluted earnings per share 1,80,815 2,94,854

(d) Weighted average number of shares used as the denominator

March 31, 2023 March 31, 2022
Weighted average number of equity shares used as the denominator in calculating basic earnings per 26,54,68,580 26,54,68,580
share
Adjustments for calculation of diluted earnings per share: - -
Weighted average number of equity shares used as the denominator in calculating diluted earnings per 26,54,68,580 26,54,68,580
share

The accompanying notes are an integral part of the financial statements

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

33rd Annual Report 2022-23 | 165

Independent Auditor’s Report

To the Members of Divi’s Laboratories Limited

Report on the Audit of the Consolidated in accordance with these requirements. We believe
Financial Statements that the audit evidence we have obtained and the audit
evidence obtained by the other auditors in terms of their
Opinion
reports referred to in paragraph 14 of the Other Matters
1. We have audited the accompanying consolidated financial paragraph below, is sufficient and appropriate to provide
statements of Divi’s Laboratories Limited (hereinafter a basis for our opinion.
referred to as the “Holding Company”) and its subsidiaries
(Holding Company and its subsidiaries together referred Key Audit Matters
to as “the Group”), (refer Note 1 to the attached 4.  ey audit matters are those matters that, in our professional
K
consolidated financial statements), which comprise the Judgement, were of most significance in our audit of the
Consolidated Balance sheet as at March 31, 2023, and the consolidated financial statements of the current period.
Consolidated Statement of profit and loss (including Other These matters were addressed in the context of our audit
comprehensive income), the Consolidated Statement of the consolidated financial statements as a whole, and
of changes in equity and the Consolidated Statement in forming our opinion thereon, and we do not provide a
of cash flows for the year then ended, and Notes to the separate opinion on these matters.
Consolidated financial statements, including a summary
A. Appropriateness of Recognition of Revenue from Sale
of significant accounting policies and other explanatory
of Products in Correct Period
information (hereinafter referred to as “the consolidated
financial statements”).  efer to Note 2.4(i) of the summary of significant accounting
R
policies to the consolidated financial statements.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid The Holding Company has earned revenue of `750,437
consolidated financial statements give the information lakhs from sale of products during the year. Revenue
required by the Companies Act, 2013 (“the Act”) in the in respect of sale of products is recognised when the
manner so required and give a true and fair view in customer obtains control of the company’s product,
conformity with the accounting principles generally which occurs at a point in time.
accepted in India, of the consolidated state of affairs of The Holding Company has many customers operating in
the Group, as at March 31, 2023, and consolidated total various geographies and sale contracts with customers
comprehensive income (comprising of profit and other have differing incoterms which influence the timing of
comprehensive income), consolidated changes in equity recognition of revenue.
and its consolidated cash flows for the year then ended.
 he above was considered to be a key audit matter, since
T
Basis for Opinion revenue is one of the key performance indicators of the
3. We conducted our audit in accordance with the Standards Holding Company and there is a risk of recognition of
on Auditing (SAs) specified under Section 143(10) of the revenue in an incorrect period, given the differing terms
Act. Our responsibilities under those Standards are further with the customers
described in the “Auditor’s Responsibilities for the Audit
How our Audit Addressed the Key Audit Matter
of the Consolidated Financial Statements” section of our
report. We are independent of the Group in accordance Our procedures included the following:
with the ethical requirements that are relevant to our audit • We evaluated relevant accounting policies and
of the consolidated financial statements in India in terms assessed whether it’s in compliance with applicable
of the Code of Ethics issued by the Institute of Chartered accounting standards.
Accountants of India and the relevant provisions of the
Act, and we have fulfilled our other ethical responsibilities

166
 Corporate Overview Statutory Reports Financial Statements

• We have performed walkthrough and obtained detailed various costs incurred, including in relation to Roads and
understanding of the holding company’s revenue Building, Plant and Machinery and Capital work-in-progress.
recognition process.
• Tested the direct and indirect costs capitalised, on a
• We evaluated the design, implementation and tested the sample basis, with the underlying supporting documents to
operating effectiveness of controls around recognition of ascertain the nature of costs and the basis for allocation,
revenue from sale of products. where applicable, and evaluated whether they meet the
recognition criteria provided in the Ind AS 16, Property,
• Tested revenue from sale of products including sales
Plant and Equipment.
occurred close to year end period, to their underlying
supporting documents like purchase order, invoice, shipping • Tested, on a sample basis, the appropriateness of employee
documents etc., on sample basis to ensure whether revenue costs capitalised in relation to Plant and Machinery
has been recognised in correct period. and Roads and Buildings based on verification of their
timesheets etc.
• We also ensured the presentation and disclosures are
in accordance with applicable accounting standards and • Tested other costs debited to Statement of profit and loss
reporting framework. account, on a sample basis, to ascertain whether these
meet the criteria of capitalisation
Our procedures did not identify any sales that is
inappropriately recognised. • Assessed the adequacy of disclosures in the consolidated
financial statements.
B. Appropriateness of Capitalisation of Costs as per Ind
AS 16 Property, Plant and Equipment Our procedures did not identify, any costs that are eligible
 efer to Note 3(ii)
R & 4(c) to the consolidated for capitalisation are not appropriately capitalised or costs
financial statements. capitalised are not in accordance with the recognition criteria
provided in Ind AS 16.
During the year, the holding company has incurred capital
expenditure aggregating to `67,464 lakhs on Property, Other Information
Plant and Equipment (representing Plant and Machinery 5. The Holding Company’s Board of Directors is responsible
& Roads and Buildings) and `48,335 lakhs on Capital for the other information. The other information comprises
work in progress towards assets under construction at the information included in the Management Discussion
various locations. and Analysis, Board’s Report, Business Responsibility and
Sustainability Report, performance highlights, corporate
With regard to capitalisation of Plant and Machinery,
social responsibility report and Corporate Governance
Roads and Buildings and Capital work in progress,
report, but does not include the consolidated financial
Management of holding company has identified specific
statements and our auditor’s report thereon.
expenditure including employee costs and other specific
overheads relating to each of the assets and has applied Our opinion on the consolidated financial statements
judgement to assess if the costs incurred in relation to does not cover the other information and we do not
these assets meet the recognition criteria of Property, express any form of assurance conclusion thereon.
Plant and Equipment in accordance with Ind AS 16.

In connection with our audit of the consolidated
 his has been determined as a key audit matter due to
T financial statements, our responsibility is to read the
the significance of the capital expenditure during the year other information and, in doing so, consider whether
and the risk that the elements of costs that are eligible for the other information is materially inconsistent with the
capitalisation are not appropriately capitalised or costs consolidated financial statements or our knowledge
capitalised are not in accordance with the recognition obtained in the audit or otherwise appears to be materially
criteria provided in Ind AS 16. misstated. If, based on the work we have performed and
the reports of the other auditors as furnished to us (Refer
How our Audit Addressed the Key Audit Matter
paragraph 14 below), we conclude that there is a material
Our procedures included the following: misstatement of this other information, we are required
• Understood, evaluated and tested the design and operating to report that fact.
effectiveness of key controls relating to capitalisation of We have nothing to report in this regard.

33rd Annual Report 2022-23 | 167

 esponsibilities of Management and Those Charged with
R fraud or error and are considered material if, individually
Governance for the Consolidated Financial Statements or in the aggregate, they could reasonably be expected to
6. The Holding Company’s Board of Directors is responsible influence the economic decisions of users taken on the
for the preparation and presentation of these consolidated basis of these consolidated financial statements.
financial statements in term of the requirements of the 10. As part of an audit in accordance with SAs, we exercise
Act that give a true and fair view of the consolidated professional Judgement and maintain professional
financial position, consolidated financial performance scepticism throughout the audit. We also:
and consolidated cash flows, and changes in equity of
the Group in accordance with the accounting principles • Identify and assess the risks of material misstatement
generally accepted in India, including the Accounting of the consolidated financial statements, whether due
Standards specified under Section 133 of the Act. The to fraud or error, design and perform audit procedures
respective Board of Directors of the companies included responsive to those risks, and obtain audit evidence
in the Group are responsible for maintenance of adequate that is sufficient and appropriate to provide a basis
accounting records in accordance with the provisions of for our opinion. The risk of not detecting a material
the Act for safeguarding the assets of the Group and for misstatement resulting from fraud is higher than for
preventing and detecting frauds and other irregularities; one resulting from error, as fraud may involve collusion,
selection and application of appropriate accounting forgery, intentional omissions, misrepresentations, or
policies; making Judgements and estimates that are the override of internal control.
reasonable and prudent; and the design, implementation • Obtain an understanding of internal control relevant to
and maintenance of adequate internal financial controls, the audit in order to design audit procedures that are
that were operating effectively for ensuring accuracy and appropriate in the circumstances. Under Section 143(3)
completeness of the accounting records, relevant to the (i) of the Act, we are also responsible for expressing
preparation and presentation of the consolidated financial our opinion on whether the Holding company has
statements that give a true and fair view and are free from adequate internal financial controls with reference
material misstatement, whether due to fraud or error, to consolidated financial statements in place and the
which have been used for the purpose of preparation of operating effectiveness of such controls.
the consolidated financial statements by the Directors of
the Holding Company, as aforesaid. • Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
7. In preparing the consolidated financial statements, the and related disclosures made by management.
respective Board of Directors of the companies included
in the Group are responsible for assessing the ability of • Conclude on the appropriateness of management’s
the Group to continue as a going concern, disclosing, as use of the going concern basis of accounting and,
applicable, matters related to going concern and using the based on the audit evidence obtained, whether
going concern basis of accounting unless management a material uncertainty exists related to events or
either intends to liquidate the Group or to cease conditions that may cast significant doubt on the
operations, or has no realistic alternative but to do so. ability of the Group to continue as a going concern.
If we conclude that a material uncertainty exists, we
8. The respective Board of Directors of the companies are required to draw attention in our auditor’s report
included in the Group are responsible for overseeing the to the related disclosures in the consolidated financial
financial reporting process of the Group. statements or, if such disclosures are inadequate, to
Auditor’s Responsibilities for the Audit of the Consolidated modify our opinion. Our conclusions are based on the
Financial Statements audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause
9. Our objectives are to obtain reasonable assurance about
the Group to cease to continue as a going concern.
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud • Evaluate the overall presentation, structure and content
or error, and to issue an auditor’s report that includes of the consolidated financial statements, including the
our opinion. Reasonable assurance is a high level of disclosures, and whether the consolidated financial
assurance but is not a guarantee that an audit conducted statements represent the underlying transactions and
in accordance with SAs will always detect a material events in a manner that achieves fair presentation.
misstatement when it exists. Misstatements can arise from

168
 Corporate Overview Statutory Reports Financial Statements

• Obtain sufficient appropriate audit evidence regarding by other auditors under generally accepted auditing
the financial information of the entities or business standards applicable in their respective countries. The
activities within the Group express an opinion on the Holding Company’s management has converted the
consolidated financial statements. We are responsible financial statements of such subsidiaries located outside
for the direction, supervision and performance of India from the accounting principles generally accepted
the audit of the consolidated financial statements of in their respective countries to the accounting principles
such entities included in the consolidated financial generally accepted in India. We have audited these
statements of which we are the independent auditors. conversion adjustments made by the Holding Company’s
For the other entities included in the consolidated management. Our opinion in so far as it relates to the
financial statements, which have been audited by other balances and affairs of such subsidiaries located outside
auditors, such other auditors remain responsible for the India, including other information, is based on the report of
direction, supervision and performance of the audits other auditors and the conversion adjustments prepared
carried out by them. We remain solely responsible for by the management of the Holding Company and audited
our audit opinion. by us.

11. We communicate with those charged with governance of Our opinion on the consolidated financial statements, and
the Holding Company of which we are the independent our report on Other Legal and Regulatory Requirements
auditors regarding, among other matters, the planned below, is not modified in respect of the above matters
scope and timing of the audit and significant audit with respect to our reliance on the work done and the
findings, including any significant deficiencies in internal reports of the other auditors and the financial statements
control that we identify during our audit. certified by the Management.

12. 
We also provide those charged with governance with Report on Other Legal and Regulatory Requirements
a statement that we have complied with relevant 15. This report does not contain a statement on the matter
ethical requirements regarding independence, and to specified in paragraph 3(xxi) of ‘the Companies (Auditor’s
communicate with them all relationships and other Report) Order, 2020’ (“CARO 2020”) issued by the Central
matters that may reasonably be thought to bear on our Government of India in terms of sub-section (11) of
independence, and where applicable, related safeguards. Section 143 of the Act as, in our opinion, and according
13. From the matters communicated with those charged with to the information and explanations given to us, CARO
governance, we determine those matters that were of 2020 is not applicable to any of the subsidiaries included
most significance in the audit of the consolidated financial in these consolidated financial statements.
statements of the current period and are therefore the  s required by Section 143(3) of the Act, we report, to the
A
key audit matters. We describe these matters in our extent applicable, that:
auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely (a) We have sought and obtained all the information and
rare circumstances, we determine that a matter should explanations which to the best of our knowledge and
not be communicated in our report because the belief were necessary for the purposes of our audit
adverse consequences of doing so would reasonably of the aforesaid consolidated financial statements.
be expected to outweigh the public interest benefits of (b) In our opinion, proper books of account as required
such communication. by law relating to preparation of the aforesaid
Other Matters consolidated financial statements have been kept
so far as it appears from our examination of those
14. T
 he financial statements of two subsidiaries located
books and the reports of the other auditors.
outside India, included in the consolidated financial
statements, which constitute total assets of `43,224 lakhs (c) The Consolidated Balance sheet, the Consolidated
and net assets of `10,371 lakhs as at March 31, 2023, total Statement of profit and loss (including other
revenue of `51,538 lakhs, total comprehensive income comprehensive income), the Consolidated Statement
(comprising of profit and other comprehensive income) of changes in equity and the Consolidated Statement
of `3,403 lakhs and net cash flows amounting to `1,033 of cash flows dealt with by this Report are in
lakhs for the year then ended, have been prepared in agreement with the relevant books of account and
accordance with accounting principles generally accepted records maintained for the purpose of preparation
in their respective countries and have been audited of the consolidated financial statements.

33rd Annual Report 2022-23 | 169

 (d) In our opinion, the aforesaid consolidated financial or entity(ies), including foreign entities
statements comply with the Accounting Standards (“Intermediaries”), with the understanding,
specified under Section 133 of the Act. whether recorded in writing or otherwise,
that the Intermediary shall, directly or
(e) On the basis of the written representations received
indirectly, lend or invest in other persons
from the directors of the Holding Company as on
or entities identified in any manner
March 31, 2023 taken on record by the Board of
whatsoever by or on behalf of the Group
Directors of the Holding Company, none of the
(“Ultimate Beneficiaries”) or provide any
directors of the Holding company is disqualified
guarantee, security or the like on behalf
as on March 31, 2023 from being appointed as a
of the Ultimate Beneficiaries. (Refer Note
director in terms of Section 164(2) of the Act.
41(v)(A) to the consolidated financial
(f) As there are no subsidiaries incorporated in India, statements).
this report does not contain a separate report on
(b) The management of the Holding Company
the internal financial controls with reference to
have represented that, to the best of their
consolidated financial statements of the Group
knowledge and belief, as disclosed in the
under clause (i) of sub-section 3 of 143 of the Act.
notes to the accounts, no funds have
(g) With respect to the other matters to be included in been received by the Holding Company
the Auditor’s Report in accordance with Rule 11 of or any of such subsidiaries from any
the Companies (Audit and Auditor’s) Rules, 2014, in person(s) or entity(ies), including foreign
our opinion and to the best of our information and entities (“Funding Parties”), with the
according to the explanations given to us: understanding, whether recorded in
writing or otherwise, that the Company or
i.  he consolidated financial statements disclose
T
any of such subsidiaries shall, directly or
the impact, if any, of pending litigations on
indirectly, lend or invest in other persons
the consolidated financial position of the
or entities identified in any manner
Group – Refer Note 40 to the consolidated
whatsoever by or on behalf of the Funding
financial statements.
Party (“Ultimate Beneficiaries”) or provide
ii. 
The Group did not required to recognise a any guarantee, security or the like on
provision as at March 31, 2023 under the behalf of the Ultimate Beneficiaries. (Refer
applicable law or accounting standards, as it Note 41(v)(B) to the consolidated financial
does not have any material foreseeable losses statements).
on long-term contract. The Group did not have
(c) 
Based on the audit procedures, that
any derivative contracts as at March 31, 2023.
has been considered reasonable and
iii. 
There has been no delay in transferring appropriate in the circumstances,
amounts required to be transferred to the performed by us nothing has come to our
Investor Education and Protection Fund by the notice that has caused us to believe that
Holding Company. the representations under sub-clause (a)
and (b) contain any material misstatement.
iv. (a) The management of the Holding Company
has represented that, to the best of their Reporting under Rule 11(e) of Companies
knowledge and belief, as disclosed in the (Audit and Auditors) Amendment Rules,
notes to the accounts, no funds have been 2021 is not applicable to the subsidiaries
advanced or loaned or invested (either of the Holding company, as there are no
from borrowed funds or share premium subsidiaries incorporated in India.
or any other sources or kind Of funds)
v. The dividend declared and paid during the year
by the Holding Company or any of such
by the Holding Company, is in compliance with
subsidiaires to or in any other person(s)
Section 123 of the Act.

170
 Corporate Overview Statutory Reports Financial Statements

Reporting under Rule 11(f) of Companies Companies (Audit and Auditors) Rules, 2014 (as
(Audit and Auditors) Amendment Rules, 2021 amended), is currently not applicable.
is not applicable to the subsidiaries of the
16. T
 he holding Company has paid/ provided for managerial
Holding Company, as there are no subsidiaries
remuneration in accordance with the requisite approvals
incorporated in India.
mandated by the provisions of Section 197 read with
vi. 
As proviso to Rule 3(1) of the Companies Schedule V to the Act.
(Accounts) Rules, 2014 (as amended), which
provides for books of account to have the
feature of audit trail, edit log and related matters For Price Waterhouse Chartered Accountants LLP
in the accounting software used by the Group, Firm Registration Number: 012754N/N500016
is applicable to the Group only with effect
N.K. Varadarajan
from financial year beginning April 1, 2023, the
Partner
reporting under clause (g) of Rule 11 of the
Place: Hyderabad  Membership Number: 90196
Date: May 20, 2023  UDIN: 23090196BGYZIU3763

33rd Annual Report 2022-23 | 171

Consolidated Balance Sheet
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

As at As at
Particulars Note No.
March 31, 2023 March 31, 2022
ASSETS
Non-current assets
Property, plant and equipment 3 4,71,417 4,31,412
Right of use assets 3(a) 315 344
Capital work-in-progress 4 21,188 46,993
Intangible assets 5 528 749
Financial assets
(i) Investments 6 7,705 7,201
(ii) Other financial assets 14(a) 5,109 5,775
Income tax assets (net) 7(a) 2,917 2,917
Deferred tax asset 18(a) 1,424 1,447
Other non-current assets 9 2,100 5,483
Total Non-current assets 5,12,703 5,02,321
Current assets
Inventories 10 3,00,041 2,82,862
Financial assets
(i) Trade receivables 11 1,79,253 2,42,388
(ii) Cash and cash equivalents 12 16,970 1,21,476
(iii) Bank balances other than (ii) above 13 4,04,339 1,60,412
(iv) Other financial assets 14(b) 607 489
Income tax assets (net) 7(b) 9,787 5,768
Other current assets 15 20,177 21,755
Total Current assets 9,31,174 8,35,150
TOTAL ASSETS 14,43,877 13,37,471
EQUITY AND LIABILITIES
Equity:
Equity share capital 16(a) 5,309 5,309
Other equity 16(b) 12,71,400 11,67,509
Total Equity 12,76,709 11,72,818
Liabilities
Non-current liabilities
Financial liabilities
(i) Lease liabilities 3(b) 277 287
Provisions 17 3,062 2,671
Deferred tax liabilities (net) 18(b) 53,721 42,140
Total non-current liabilities 57,060 45,098
Current liabilities
Financial liabilities
(i) Borrowings 19 - -
(ii) Lease liabilities 3(b) 49 82
(iii) Trade payables 20
a) Total outstanding dues of micro and small enterprises 3,749 2,478
b) Total outstanding dues other than (iii) (a) above 72,502 77,092
(iv) Other financial liabilities 21 4,339 6,289
Current tax liabilities (net) 8 221 168
Other current liabilities 22 28,756 33,031
Provisions 17 492 415
Total current liabilities 1,10,108 1,19,555
TOTAL LIABILITIES 1,67,168 1,64,653
TOTAL EQUITY AND LIABILITIES 14,43,877 13,37,471
The accompanying notes are an integral part of the Consolidated financial statements
This is the Consolidated Balance Sheet referred
to in our report of even date
For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031
Dr. Kiran S Divi Nilima Prasad Divi
Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001
Place: Hyderabad L. Kishorebabu M. Satish Choudhury
Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

172
 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Profit and Loss

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Income
Revenue from operations 23 7,76,751 8,95,983
Other income 24 34,466 11,387
Total Income 8,11,217 9,07,370
Expenses
Cost of raw materials consumed 25 3,00,836 3,47,656
Purchase of Stock-in-trade 2,233 1,441
Changes in inventories of finished goods, work-in-progress and stock-in-trade 26 2,303 (52,383)
Employee benefits expense 27 97,502 94,616
Finance costs 28 67 80
Depreciation and amortisation expense 29 34,318 31,151
Other expenses 30 1,37,095 1,16,459
Total expenses 5,74,354 5,39,020
Profit before tax 2,36,863 3,68,350
Tax expense 31
Current tax 43,917 64,400
Deferred tax 10,608 7,905
Total tax expense 54,525 72,305
Profit after tax for the year 1,82,338 2,96,045
Other comprehensive income
(A) Items that will not be reclassified to profit or loss
Gain on remeasurements of post-employment benefit obligations 359 335
Income tax relating to these items (126) (117)
(B) Items that will be reclassified to profit or loss
Exchange differences on translation of foreign operations 1,179 233
Income tax relating to these items (218) (45)
Other comprehensive income after tax for the year 1,194 406
Total comprehensive income for the year 1,83,532 2,96,451
Earnings per share (par value of `2 each)
- Basic and Diluted 45 68.69 111.52

The accompanying notes are an integral part of the Consolidated financial statements

This is the Consolidated Statement of profit and loss

referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

33rd Annual Report 2022-23 | 173

Consolidated Statement of Cash Flows
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Cash flows from operating activities
Profit before tax 2,36,863 3,68,350
Adjustments for:
Depreciation and amortisation expense 29 34,318 31,151
Unrealised foreign exchange gain (209) (544)
Exchange differences on translation of foreign operations 1,179 233
Interest income from financial assets at amortised cost 24 (20,459) (6,896)
Change in fair value of investments in optionally convertible debentures 24 (504) -
Provision for doubtful debts / (written back) [including bad debts recovered] 30 33 (203)
Interest expense 28 33 36
Loss on disposal / discard of property plant and equipment and intangible assets 30 113 205
Amortisation of government grants 24 (10) (9)
2,51,357 3,92,323
Change in operating assets and liabilities
(Increase) /Decrease in trade receivables 11 65,041 (74,162)
(Increase)/Decrease in inventories 10 (17,179) (68,339)
Increase / (Decrease) in trade payables 20 (3,406) 3,427
(Increase) /Decrease in other non current assets 9 450 125
(Increase) /Decrease in other non-current financial assets 14(a) 666 (88)
(Increase) /Decrease in other current financial assets 14(b) (118) 458
(Increase) /Decrease in other current assets 15 1,578 (6,436)
(Decrease) /Increase in long term employee benefit obligation 17 750 481
Increase /(Decrease) in short term employee benefit obligation 17 77 164
Increase/ (Decrease) in other financial liabilities 21 (83) 284
Increase/(Decrease) in other current liabilities 22 (5,895) 7,041
Cash generated from operations 2,93,238 2,55,278
Income taxes paid including withholding tax and net of refunds 7,8 (47,265) (64,098)
Net cash inflow from operating activities 2,45,973 1,91,180
Cash flows from investing activities
Payments for property, plant and equipment 3,4,5 (47,302) (71,320)
Proceeds from sale of property, plant and equipment 1 -
Payments for investments in optionally convertible debentures 6 - (7,200)
Interest received 24 20,459 6,681
Proceeds from withdrawal of deposits 13 1,60,118 5,050
Investment in deposits 13 (4,04,038) (1,52,703)
Net cash inflow /(outflow) from investing activities (2,70,762) (2,19,492)

174
 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Cash Flows

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

For the year ended For the year ended

Particulars Note No.
March 31, 2023 March 31, 2022
Cash flows from financing activities
Proceeds/(repayment) from working capital loans 19 - (35)
Interest paid 28 (33) (36)
Principal elements of lease liabilites paid 3(b) (43) (79)
Dividend paid to company's shareholders (79,641) (53,094)
Net cash outflow from financing activities (79,717) (53,244)
Net (Decrease)/ increase in cash and cash equivalents (1,04,506) (81,556)
Cash and cash equivalents at the beginning of the year 1,21,476 2,03,032
Cash and cash equivalents at end of the year 16,970 1,21,476

Reconciliation of cash and cash equivalents at the end of the year

Cash and cash equivalents 11 16,970 1,21,476
Balances as per Statement of cash flows 16,970 1,21,476

1.  he Consolidated statement of cash flows has been prepared under the indirect method as set out in Indian accounting
T
standard (Ind AS 7) Statement of cash flows.

2. The accompanying notes are an integral part of the Consolidated financial statements.
This is the Consolidated Statement of cash flows
referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

33rd Annual Report 2022-23 | 175

Consolidated Statement of Changes in Equity
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

a. Equity Share Capital

As at As at
S.No Particulars
March 31, 2023 March 31, 2022
i Balance at the beginning of the reporting period 5,309 5,309
ii Balance at the end of the reporting period 5,309 5,309

b. Other Equity
Other
Reserves and surplus comprehensive
Income
Exchange
S.
Particulars differences Total
No SEZ
Securities General Retained on translating
reinvestment
premium reserve earnings the financial
reserve
statements of
foreign operations
As at March 31, 2023
i Balance at the beginning of the current reporting period 7,988 59,085 1,00,000 9,98,885 1,551 11,67,509
ii Profit after tax for the year - - - 1,82,338 - 1,82,338
iii Other Comprehensive Income after tax for the year - - - 233 961 1,194
iv Total comprehensive income for the current year - - - 1,82,571 961 1,83,532
v Dividends paid to Company's shareholders - - - (79,641) - (79,641)
vi Transfer from retained earnings to SEZ reinvestment - 14,559 - (14,559) - -
reserve
vii Transfer to retained earnings from SEZ reinvestment - (8,555) - 8,555 - -
reserve
viii Balance at the end of the current reporting 7,988 65,089 1,00,000 10,95,811 2,512 12,71,400
period
As at March 31, 2022
i Balance at the beginning of the previous reporting 7,988 55,029 1,00,000 7,59,772 1,363 9,24,152
period
ii Profit after tax for the year - - - 2,96,045 - 2,96,045
iii Other Comprehensive Income after tax for the year - - - 218 188 406
iv Total comprehensive income for the previous year - - - 2,96,263 188 2,96,451
v Dividends paid to Company's shareholders - - - (53,094) - (53,094)
vi Transfer from retained earnings to SEZ reinvestment - 12,520 - (12,520) - -
reserve
vii Transfer to retained earnings from SEZ reinvestment - (8,464) - 8,464 - -
reserve
viii Balance at the end of the previous reporting 7,988 59,085 1,00,000 9,98,885 1,551 11,67,509
period

The accompanying notes are an integral part of the financial statements

This is the Consolidated Statement of changes in equity

referred to in our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

176
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

1. Corporate Information: • Certain financial assets and liabilities that are

1.1 D
 ivi’s Laboratories Limited (“Divi’s/’Company’) is a Company measured at fair value; (refer accounting policy
limited by shares, incorporated and domiciled in India. regarding financial instruments)
The Company is engaged in the manufacture of Active • Defined benefit plans – plan assets measured at
Pharmaceutical ingredients (API’s), Intermediates and fair value
Nutraceutical ingredients with predominance in exports.
In addition to generic business, the company, through its (iii) New and amended standards adopted by the
Custom synthesis business, supports innovator pharma Group
companies for their patented products business right  he Ministry of Corporate Affairs had vide notification
T
from gram scale requirements for clinical trials to launch dated 23 March 2022 notified Companies (Indian
as well as late life cycle management. The Company is Accounting Standards) Amendment Rules, 2022
a public limited company and the Company’s equity which amended certain accounting standards, and
shares are listed in BSE Limited (BSE) and National Stock are effective 1 April 2022. These amendments did
Exchange of India Limited (NSE) in India. The Company has not have any impact on the amounts recognised in
two subsidiaries i.e., Divis Laboratories USA, Inc., (“Divis prior periods and are not expected to significantly
USA”) incorporated in United States of America, Divi’s affect the current or future periods.
Laboratories Europe AG (“Divi’s Europe”) incorporated
(iv) New and amended standards issued but not
in Switzerland, for marketing the Nutraceutical products
effective
(dietary supplements) and pharmaceutical ingredients
of the Company. Divi’s Laboratories Limited, Divis  he Ministry of Corporate Affairs has vide notification
T
Laboratories USA Inc., and Divi’s Laboratories Europe AG dated 31 March 2023 notified Companies (Indian
are hereinafter referred to as ‘the Group’. Accounting Standards) Amendment Rules, 2023 (the
‘Rules’) which amends certain accounting standards,
1.2 T
 he Consolidated financial statements are approved and are effective 1 April 2023.
for issue by the Company’s Board of Directors on May
20, 2023. The Rules predominantly amend Ind AS 12, Income
taxes, and Ind AS 1, Presentation of financial
2. Summary of Significant Accounting Policies statements. The other amendments to Ind AS
notified by these rules are primarily in the nature
Significant accounting policies adopted in the preparation
of clarifications.
of these consolidated financial statements are detailed
below. These policies have been consistently applied to These amendments are not expected to have a
all the years presented, unless otherwise stated. The material impact on the group in the current or
consolidated financial statements are for the group future reporting periods and on foreseeable future
consisting of Divi’s and its subsidiaries. transactions. Specifically, no changes would be
necessary as a consequence of amendments made
2.1 Basis of Preparation:
to Ind AS 12 as the group’s accounting policy already
(i) Compliance with Ind AS complies with the now mandatory treatment.
 he consolidated financial statements comply in all
T
(v) Principles of Consolidation
material aspects with Indian Accounting Standards
(Ind AS) notified under section 133 of the Companies Subsidiaries
Act, 2013 (the Act) [Companies (Indian Accounting  Subsidiaries are entities over which Divi’s has control.
Standards) Rules, 2015] and other relevant provisions Divi’s controls an entity where Divi’s is exposed to, or
of the Act and guidelines issued by Securities and has rights to, variable returns from its investment with
Exchange Board of India (SEBI). the entity and has the ability to affect those returns
through its power to direct the relevant activities of
(ii) Historical cost convention
the entity. Subsidiaries are fully consolidated from
The consolidated financial statements have been the date on which control is transferred to Divi’s
prepared on a historical cost basis, except for and the same are deconsolidated from the date the
the following: control ceases.

33rd Annual Report 2022-23 | 177

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

 he group combines the financial statements of

T 2.3 Foreign Currency Translation:
the parent and its subsidiaries line by line adding (i) Functional and presentation currency
together like items of assets, liabilities, equity, income,
Items included in the consolidated financial
and expenses. Intercompany transactions, balances
statements of each of the group’s entities are
and unrealised gains on transactions between group
measured using the currency of the primary
companies are eliminated. Unrealised losses are also
economic environment in which the entity operates
eliminated unless the transaction provides evidence
(‘the functional currency’). The consolidated financial
of an impairment of the transferred asset. Accounting
statements are presented in Indian rupee (INR),
policies of subsidiaries have been changed where
which is Divi’s (the Company’s) functional and
necessary to ensure consistency with the policies
presentation currency.
adopted by the group.
(ii) Transactions and balances
(vi) Current and non-current classification
Foreign currency transactions are translated into
An asset / liability is classified as current if:
the functional currency using the exchange rates
(a) The amount is expected to be realised or sold at the dates of the transactions. Foreign exchange
or consumed in the group’s normal operating gains and losses resulting from the settlement
cycle; the liability is expected to be settled in of such transactions and from the translation of
normal operating cycle; monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
(b)  sset / liability is held primarily for the purpose
A
generally recognised in statement of profit and loss.
of trading;
A monetary item for which settlement is neither
(c)  sset / Liability is expected to be realised/
A planned nor likely to occur in the foreseeable future
settled within twelve months after the reporting is considered as a part of the entity’s net investment
period; or in that foreign operation.

(d) The asset is cash or a cash equivalent unless  on-monetary items that are measured at fair
N
it is restricted from being exchanged or used value in a foreign currency are translated using the
to settle a liability for at least twelve months exchange rates at the date when the fair value was
after the reporting period. The group has no determined. Translation differences on assets and
unconditional right to defer the settlement of liabilities carried at fair value are reported as part of
the liability for at least twelve months after the the fair value gain or loss. Translation differences on
reporting period. non- monetary assets and liabilities such as equity
instruments held at fair value through profit or
A ll other assets / liabilities are classified as non-
loss are recognised in statement of profit and loss
current.
as part of the fair value gain or loss and translation
The operating cycle is the time between differences on non-monetary assets such as equity
acquisition of assets for processing and their investments classified as FVOCI are recognised in
realisation in cash and cash equivalents. Based other comprehensive income.
on the nature of products and time between
(iii) Group Companies
acquisition of assets for processing and their
realisation in cash and cash equivalents, the  he results and financial position of foreign
T
group has ascertained its operating cycle as 12 operations (none of which has the currency of a
months for the purpose of current/non-current hyperinflationary economy) that have a functional
classification of assets and liabilities. currency different from the presentation currency
are translated into the presentation currency
2.2 Segment Reporting: as follows:
Operating segments are reported in a manner consistent
• assets and liabilities are translated at the closing
with the internal reporting provided to the Chief Operating
rate at the date of that balance sheet
Decision Maker. Managing director of the group has been
identified as being the chief operating decision maker. • income and expenses are translated at average
Refer note 37 for the segment information presented. exchange rates (unless this is not a reasonable

178
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

approximation of the cumulative effect of the  uty drawback is recognised as income when the
D
rates prevailing on the transaction dates, in which right to receive credit as per the terms of the scheme
case income and expenses are translated at the is established in respect of the exports entitled for
dates of the transactions), and this benefit made and where there is no significant
uncertainty regarding the ultimate collection of the
• All resulting exchange differences are recognised
relevant export proceeds.
in other comprehensive income.
MEIS scrips are freely transferable and can be utilised
 n consolidation, exchange differences arising from
O
for the payment of customs duty. MEIS scrips are
the translation of any net investment in foreign
recognised either on transfer/sale of such scrips or
entities are recognised in other comprehensive
when it is reasonably certain that such scrips can be
income. When a foreign operation is sold, the
utilised against import duties.
associated exchange differences are reclassified to
profit or loss, as part of the gain or loss on sale. (iv) Dividend Income:

2.4 Revenue Recognition:  ividends are received from financial assets at fair
D
value through profit or loss. Dividends are recognised
Revenue is measured at the transaction price determined
as other income in profit or loss when the right to
under IND AS 115- Revenue from contracts with
receive payment is established. This applies even if
customers. Amounts disclosed as revenue are net of
they are paid out of pre-acquisition profits unless the
returns, trade allowances, rebates, Goods & Service Tax
dividend clearly represents a recovery of part of the
(GST) collections and amounts collected on behalf of
cost of the investment.
third parties.
(v) Interest Income:
(i) Revenue from Sale of Goods:
Interest income from financial assets at fair value
Revenue from sale of goods is recognised when the
through profit or loss is disclosed as interest
customer obtains control of the Group’s product,
income within other income. Interest income on
which occurs at a point in time with payment terms
financial assets at amortised cost is calculated
typically in the range of 60 to 180 days after invoicing
using the effective interest method is recognised
depending on product and geographic region. Taxes
in the statement of profit and loss as part of other
collected from customers relating to product sales
income. Interest income is calculated by applying the
and remitted to government authorities are excluded
effective interest rate to the gross carrying amount
from revenues.
of a financial asset except for financial assets that
The Group does not expect to have any contracts subsequently become credit impaired. For credit-
where the period between the transfer of the impaired financial assets the effective interest rate
promised goods or services to the customer and is applied to the net carrying amount of the financial
payment by the customer exceeds one year. As a asset (after deduction of the loss allowance).
consequence, the group does not adjust any of the
2.5 Income Taxes:
transaction prices for the time value of money.
The income tax expense or credit for the period is the tax
For contracts with multiple performance obligations, payable on the current period’s taxable income based
the Group allocates the transaction price to each on the applicable income tax rate adjusted by changes
performance obligation based on the relative in deferred tax assets and liabilities attributable to
standalone selling price. temporary differences and to unused tax losses.
(ii) Revenue from Sale of Services: The current income tax charge is calculated based on the
Revenue from Sale of services is recognised as per tax laws enacted or substantively enacted at the end of the
the terms of the contracts with customers when reporting period (in the countries where the company and
the related services are performed, or the agreed its subsidiaries generate taxable income.) Management
milestones are achieved. periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is
(iii) Export Incentives
subject to interpretation. It establishes provisions, where
 xport incentives comprise of Duty draw back and
E
MEIS (Merchandise Exports Incentive scheme) scrips.

33rd Annual Report 2022-23 | 179

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

appropriate, based on amounts expected to be paid to the tax holiday period is recognised in the year in which
the tax authorities. temporary difference originate.

Deferred income tax is provided in full, using the liability 2.6 Impairment of Assets:
method, on temporary differences arising between the tax Assets are tested for impairment whenever events or
bases of assets and liabilities and their carrying amounts changes in circumstances indicate that the carrying
in the consolidated financial statements. Deferred amount may not be recoverable. An impairment loss is
income tax is determined using tax rates (and laws) that recognised for the amount by which the asset’s carrying
have been enacted or substantively enacted by the end amount exceeds its recoverable amount. The recoverable
of the reporting period and are expected to apply when amount is the higher of an asset’s fair value less costs of
the related deferred income tax asset is realised, or the disposal and value in use. For the purposes of assessing
deferred income tax liability is settled. impairment, assets are grouped at the lowest levels for
Deferred tax assets are recognised for all deductible which there are separately identifiable cash inflows which
temporary differences and unused tax losses only if it is are largely independent of the cash inflows from other
probable that future taxable amounts will be available to assets or groups of assets (cash-generating units). Non-
utilise those temporary differences and losses. financial assets that suffered an impairment are reviewed
for possible reversal of the impairment at the end of each
Deferred tax liabilities are not recognised for temporary reporting period.
differences between the carrying amount and tax bases
of investments in subsidiaries where the Group is able 2.7 Cash and Cash Equivalents:
to control the timing of the reversal of the temporary For the purpose of presentation in the statement of cash
differences and it is probable that the differences will not flows, cash and cash equivalents includes cash on hand,
reverse in the foreseeable future. deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities
Deferred tax assets are not recognised for temporary
of three months or less that are readily convertible to
differences between the carrying amount and tax bases
known amounts of cash and which are subject to an
of investments in subsidiaries where it is not probable
insignificant risk of changes in value, and bank overdrafts.
that the differences will reverse in the foreseeable future
Bank overdrafts are shown within borrowings in current
and taxable profit will not be available against which the
liabilities in the balance sheet.
temporary difference can be utilised.
2.8 Trade Receivables:
 eferred tax assets and liabilities are offset when there
D
is a legally enforceable right to offset current tax assets Trade receivables are amounts due from customers for
and liabilities and when the deferred tax balances relate goods sold or services performed in the ordinary course
to the same taxation authority. Current tax assets and of business and reflects group’s unconditional right to
tax liabilities are offset where the entity has a legally consideration (that is, payment is due only on the passage
enforceable right to offset and intends either to settle of time). Trade receivables are recognised initially at
on a net basis, or to realise the asset and settle the the transaction price as they do not contain significant
liability simultaneously. financing components. The group holds the trade
receivables with the objective of collecting the contractual
Current and deferred tax is recognised in profit or loss, cash flows and therefore measures them subsequently at
except to the extent that it relates to items recognised in amortised cost using the effective interest method, less
other comprehensive income or directly in equity. In this loss allowance.
case, the tax is also recognised in other comprehensive
income or directly in equity, respectively. 2.9 Inventories:
 aw materials,stores and sparesstores, work-in-progress,
R
For operations carried out in Special Economic Zones
traded and finished goods are stated at the lower of cost,
which are entitled to tax holiday under the Income tax Act,
calculated on weighted average basis, and net realisable
1961 no deferred tax is recognised in respect of temporary
value. Cost of raw materials and stores comprise of cost of
differences which reverse during the tax holiday period,
purchases. Cost of work-in-progress and finished goods
to the extent group’s gross total income is subject to the
comprises cost of direct materials, direct labour and an
deduction during the tax holiday period. Deferred tax
appropriate proportion of variable and fixed overhead
in respect of temporary differences which reverse after
expenses, the latter being allocated on the basis of normal

180
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

operating capacity. Cost of inventories also include all other fair value through profit or loss are expensed in profit
cost incurred in bringing the inventories to their present or loss.
location and condition. Costs of purchased inventory
Debt instruments
are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the  
Subsequent measurement of debt instruments
ordinary course of business less the estimated costs of depends on the group’s business model for managing
completion and the estimated costs necessary to make the asset and the cash flow characteristics of the
the sale. Items held for use in the production of inventory asset. There are three measurement categories into
are not written below cost if the finished product in which which the group classifies its debt instruments:
these will be incorporated are expected to be sold at or Amortised cost: Assets that are held for collection
above the cost. of contractual cash flows where those cash flows
2.10 Investments and other Financial Assets: represent solely payments of principal and interest
are measured at amortised cost. Interest income
(i) Classification:
from these financial assets is included in finance
 he group classifies its financial assets in the following
T income using the effective interest rate method. Any
measurement categories: gain or loss arising on derecognition is recognised
• those to be measured subsequently at fair value directly in profit or loss and presented in other gains/
(either through other comprehensive income, or (losses).
through profit or loss), and Fair value through other comprehensive income
• those measured at amortised cost. (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial
 he classification depends on the entity’s business
T assets, where the assets’ cash flows represent solely
model for managing the financial assets and the payments of principal and interest, are measured
contractual terms of the cash flows. at fair value through other comprehensive income
For assets measured at fair value, gains and losses (FVOCI). Movements in the carrying amount are taken
will either be recorded in profit or loss or other through OCI, except for the recognition of impairment
comprehensive income. For investments in debt gains or losses, interest revenue, foreign exchange
instruments, this will depend on the business model gains and losses which are recognised in profit and
in which the investment is held. For investments in loss. When the financial asset is derecognised, the
equity instruments, this will depend on whether the cumulative gain or loss previously recognised in
group has made an irrevocable election at the time of OCI is reclassified from equity to profit or loss and
initial recognition to account for the equity investment recognised in other gains/ (losses). Interest income
at fair value through other comprehensive income. from these financial assets is included in other
The group reclassifies debt investments when and income using the effective interest rate method.
only when its business model for managing those Fair value through profit or loss: Assets that do
assets changes. not meet the criteria for amortised cost or FVOCI are
(ii) Recognition measured at fair value through profit or loss. A gain
or loss on a debt investment that is subsequently
 urchase and sale of financial assets are recognised
P
measured at fair value through profit or loss and is
on trade date, the date on which group commit to
not part of a hedging relationship is recognised in
purchase or sale the financial assets
profit or loss and presented net in the statement
(iii) Measurement of profit and loss within other gains/(losses) in the
 t initial recognition, the group measures a financial
A period in which it arises. Interest income from these
asset (excluding trade receivables which do not financial assets is included in other income.
contain a significant financing component) at its fair Equity instruments
value plus, in the case of a financial asset not at fair

The group subsequently measures all equity
value through profit or loss, transaction costs that are
investments at fair value. Where the group’s
directly attributable to the acquisition of the financial
management has elected to present fair value
asset. Transaction costs of financial assets carried at
gains and losses on equity investments in other

33rd Annual Report 2022-23 | 181

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

comprehensive income, there is no subsequent of the financial asset, the asset is continued to be
reclassification of fair value gains and losses to recognised to the extent of continuing involvement
profit or loss. Dividends from such investments are in the financial asset.
recognised in profit or loss as other income when
2.11 Offsetting Financial Instruments:
the group’s right to receive payments is established.
Changes in the fair value of financial assets at  inancial assets and liabilities are offset and the net
F
fair value through profit or loss are recognised in amount is reported in the balance sheet where there is a
other income in the statement of profit and loss. legally enforceable right to offset the recognised amounts
Impairment losses (and reversal of impairment and there is an intention to settle on a net basis or realise
losses) on equity investments measured at fair value the asset and settle the liability simultaneously. The legally
are not reported separately from other changes in enforceable right must not be contingent on future events
fair value. and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy of
(iv) Impairment of financial assets the group or the counterparty.
The group assesses on a forward-looking basis,
2.12 Property, Plant & Equipment:
the expected credit losses associated with its
assets carried at amortised cost. The impairment Freehold land is carried at historical cost. All other
methodology applied depends on whether there items of property, plant and equipment are stated at
has been a significant increase in credit risk. Note 34 historical cost less depreciation. Historical cost includes
details how the group determines whether there has expenditure that is directly attributable to the acquisition
been a significant increase in credit risk. of the items. On transition to Ind AS, the group had elected
to continue with the carrying value of all its property, plant
For trade receivables only, the group applies the and equipment recognised as at 1st April 2015 measured
simplified approach permitted by Ind AS 109 Financial as per the previous GAAP and use that carrying value as
Instruments, which requires expected lifetime the deemed cost of the property, plant and equipment.
losses to be recognised from initial recognition of
the receivables. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
(v) Derecognition of financial assets only when it is probable that future economic benefits
A financial asset is derecognised only when associated with the item will flow to the group and the
cost of the item can be measured reliably. The carrying
• the group has transferred the rights to receive
amount of any component accounted for as separate
cash flow from the financial asset or
asset is derecognised when replaced. All other repairs
• retains the contractual rights to receive the and maintenance are charged to profit or loss during the
cash flows of the financial assets but assumes a reporting period in which they are incurred.
contractual obligation to pay cash flows to one or
 apital work-in-progress includes cost of property, plant
C
more recipients.
and equipment under installation / under development as
Where the entity has transferred an asset, the group at the balance sheet date.
evaluates whether it has transferred substantially all
(i) Depreciation methods, estimated useful lives and
risks and rewards of ownership of the financial asset.
residual value
In such cases, the financial asset is derecognised.
Where the entity has not transferred substantially all Depreciation on Property, Plant & Equipment is
risks and rewards of ownership of the financial asset provided on straight-line basis to allocate their cost,
the same is not derecognised. net of residual value over the estimated useful lives
of the assets. The useful lives have been determined
 here the entity has neither transferred a financial
W in order to reflect the actual usage of the assets and
asset nor retains substantially all risks and rewards are consistent with the useful lives prescribed under
of ownership of the financial asset, the financial asset Schedule II of the Companies Act, 2013.
is derecognised. Where the group retains control

182
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Following are the estimated useful lives: 2.14 Trade and Other Payables:
These amounts represent liabilities for goods and services
Plant & Machinery 7.5-25 years
provided to the group prior to the end of financial year
Roads and Buildings 10 - 60 years
which are unpaid. Trade and other payables are presented
Furniture and Fixtures 10 years
as current liabilities unless payment is not due within 12
Vehicles 8 & 10 years
months after the reporting period. They are recognised
Office Equipment 5 years
initially at their fair value and subsequently measured at
Laboratory Equipment 10 years amortised cost using the effective interest method.
Computer and data processing units 3-6 years
2.15 Borrowings:
The residual values are not more than 5% of the
Borrowings are initially recognised at fair value, net of
original cost of the asset. The assets’ residual
transaction cost incurred. Borrowings are subsequently
values and useful lives are reviewed, and adjusted
measured at amortised cost. Any difference between the
if appropriate, at the end of each reporting period.
proceeds (net of transaction costs) and the redemption
An asset’s carrying amount is written down
amount is recognised in profit or loss over the period
immediately to its recoverable amount if the asset’s
of the borrowings using the effective interest method.
carrying amount is greater than its estimated
Fees paid on the establishment of loan facilities are
recoverable amount.
recognised as transaction costs of the loan to the extent
Gains and losses on disposal are determined by that it is probable that some or all of the facility will be
comparing proceeds with carrying amount. These drawn down. In this case, the fee is deferred until the draw
are included in profit or loss within other income/ down occurs. To the extent there is no evidence that it is
other expenses probable that some or all the facility will be drawn down,
the fee is capitalised as a prepayment for liquidity services
2.13 Intangible Assets:
and amortised over the period of the facility to which
(i) Computer software it relates.
Computer software is stated at historical cost less
Borrowings are removed from the balance sheet when
amortisation. Historical cost includes expenditure
the obligation specified in the contract is discharged,
that is directly attributable to the acquisition of
cancelled or expired. The difference between the carrying
the computer software. Costs associated with
amount of a financial liability that has been extinguished
maintaining software programmes are recognised as
or transferred to another party and the consideration
an expense as incurred.
paid, including any non-cash assets transferred or
On transition to Ind AS, the group had elected to liabilities assumed, is recognised in profit or loss as other
continue with the carrying value of all of intangible gains/(losses).
assets recognised as at 1st April 2015 measured as
Borrowings are classified as current liabilities unless the
per the previous GAAP and use that carrying value
group has an unconditional right to defer settlement
as the deemed cost of intangible assets.
of the liability for at least 12 months after the reporting
(ii) Research and development period. Where there is a breach of a material provision
Research and Development expenses that do not of a long-term loan arrangement on or before the end
meet the criteria of property, plant and equipment are of the reporting period with the effect that the liability
recognised as an expense as incurred. Development becomes payable on demand on the reporting date,
costs previously recognised as an expense are not the entity does not classify the liability as current, if the
recognised as an asset in a subsequent period. lender agreed, after the reporting period and before the
approval of consolidated financial statements for issue,
(iii) Amortisation methods and periods not to demand payment as consequence of the breach.
The group amortises intangible assets over a period
of 3 years based on their estimated useful lives.

33rd Annual Report 2022-23 | 183

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

2.16 Borrowing Costs: the related service. They are therefore measured as
 eneral and specific borrowing costs that are directly
G the present value of expected future payments to be
attributable to the acquisition, construction or production made in respect of services provided by employees up
of a qualifying asset are capitalised during the period of to the end of the reporting period using the projected
time that is required to complete and prepare the asset unit credit method. The benefits are discounted using
for its intended use or sale. Qualifying assets are assets the market yields at the end of the reporting period
that necessarily take a substantial period of time to get that have terms approximating to the terms of the
ready for their intended use or sale. related obligations. Remeasurements as a result of
the experience adjustments and changes in actuarial
Investment income earned on the temporary investment assumptions are recognised in profit or loss.
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost The obligations are presented as current liabilities
eligible for capitalisation. Other borrowings costs are in the balance sheet if the entity does not have an
expensed in the period in which they are incurred. unconditional right to defer settlement for at least
twelve months after the reporting period, regardless
2.17 Provisions: of when the actual settlement is expected to occur.
 rovision for legal claims are recognised when the group
P
(iii) Post-employment obligations
has a present legal or constructive obligation as a result
of past events, it is probable that an outflow of resources  he
T group operates the following post-
will be required to settle the obligation and the amount employment schemes:
can be reliably estimated. Provisions are not recognised (a) Defined benefit plans-Gratuity obligations
for future operating losses.
The liability or assets recognised in the balance
 rovisions are measured at the present value of
P sheet in respect of defined benefit gratuity
management’s best estimate of the expenditure required plans is the present value of the defined benefit
to settle the present obligation at the end of the reporting obligations at the end of the reporting period less
period. The discount rate used to determine the present the fair value of plan assets. The defined benefit
value is a pre-tax rate that reflects current market obligation is calculated annually by actuaries
assessments of the time value of money and the risks using the projected unit credit method.
specific to the liability. The increase in the provisions due
The present value of the defined benefit
to the passage of time is recognised as interest expense.
obligation denominated in INR is determined by
Provision for litigation related obligation represents
discounting the estimated future cash outflows
liabilities that are expected to materialise in respect of
by reference to market yields at the end of
matters in appeal.
the reporting period on government bonds
2.18 Employee Benefits: that have terms approximating to the terms
(i) Short-term obligations of the related obligation. The benefits which
are denominated in currency other than INR,
 iabilities for wages and salaries, bonus, ex-gratia
L
the cash flows are discounted using market
etc. that are expected to be settled wholly within
yields determined by reference to high-quality
12 months after the end of the period in which the
corporate bonds that are denominated in the
employees render the related service are recognised
current in which the benefits will be paid, and
in respect of employees’ services up to the end of the
that have terms approximating to the terms of
reporting period and are measured at the amounts
the related obligation.
expected to be paid when the liabilities are settled.
The liabilities are presented as current employee The net interest cost is calculated by applying
benefit obligations in the balance sheet. the discount rate to the net balance of the
defined benefit obligation and the fair value of
(ii) Other Long-term employee benefit obligations
plan assets. This cost is included in employee
The liabilities for compensated absences are not benefit expense in the statement of profit
expected to be settled wholly within 12 months after and loss.
the end of the period in which the employees render

184
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)


Remeasurement gains and losses arising 2.20 Contributed Equity:
from experience adjustments and change in Equity shares are classified as equity. Incremental costs
actuarial assumptions are recognised in the directly attributable to the issue of new shares or options
period in which they occur, directly in other are shown in equity as a deduction, net of tax, from
comprehensive income. They are included in the proceeds.
retained earnings in the statement of changes
in equity and in the balance sheet. 2.21 Earnings per Share:
(i) Basic earnings per share
 hanges in the present value of the defined
C
benefit obligation resulting from plan Basic earnings per share is calculated by dividing:
amendments or curtailments are recognised • The profit attributable to owners of the group
immediately in profit or loss as past service cost.
• By the weighted average number of equity shares
In respect of funded post-employment defined outstanding during the financial year, adjusted for
benefit plans, amounts due for payment within bonus elements in equity shares issued during
12 months to the fund may be treated as the year
‘current’. Regarding unfunded post-employment
benefit plans, settlement obligations which are (ii) Diluted earnings per share
due within 12 months in respect of employees Diluted earnings per share adjusts the figures used
who have resigned or expected to resign or are in the determination of basic earnings per share to
due for retirement within the next 12 months is take into account:
‘current’. The remaining amount attributable to
• the after income tax effect of interest and other
other employees, who are likely to continue in
financing costs associated with dilutive potential
the services for more than a year, is classified as
equity shares, and
“non-current”.
• the weighted average number of additional
 roup uses the work of an actuary in
G
equity shares that would have been outstanding
determining the current and non current liability
assuming the conversion of all dilutive potential
for unfunded post employee benefit obligations.
equity shares.
(b) Defined contribution plans
2.22 Leases:
The group pays provident fund contributions
As a lessee
to publicly administered funds as per local
regulations. The group has no further payment  eases are recognised as a right-of-use asset and a
L
obligations once the contributions have been corresponding liability at the date at which the leased
paid. The contributions are accounted for as asset is available for use by the group. Contracts may
defined contribution plans and the contributions contain both lease and non-lease components. The group
are recognised as employee benefit expense allocates the consideration in the contract to the lease
when they are due. and non-lease components based on their relative stand-
alone prices.
Termination benefits in the nature of
voluntary retirement benefits are recognised Assets and liabilities arising from a lease are initially
in the Statement of Profit and Loss as and measured on a present value basis. Lease liabilities include
when incurred. the net present value of the following lease payments:

2.19 Dividends: • fixed payments (including in-substance fixed

payments), less any lease incentives receivable
Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer • variable lease payment that are based on an index or a
at the discretion of the entity, on or before the end of the rate, initially measured using the index or rate as at the
reporting period but not distributed at the end of the commencement date
reporting period.
• amounts expected to be payable by the group under
residual value guarantees

33rd Annual Report 2022-23 | 185

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

• the exercise price of a purchase option if the group is • any initial direct costs, and
reasonably certain to exercise that option, and
• restoration costs.
• payments of penalties for terminating the lease, if the
 ight-of-use assets are generally depreciated over the
R
lease term reflects the group exercising that option.
shorter of the asset’s useful life and the lease term on
Lease payments to be made under reasonably certain a straight-line basis. If the group is reasonably certain
extension options are also included in the measurement to exercise a purchase option, the right-of-use asset is
of the liability. The lease payments are discounted using depreciated over the underlying asset’s useful life.
the interest rate implicit in the lease. If that rate cannot be
 hort-term leases of equipment and all leases of low-
S
readily determined, which is generally the case for leases
value assets are recognised as expense over the lease
in the group, the lessee’s incremental borrowing rate is
term on straight-line basis or another systematic basis
used, being the rate that the individual lessee would have
if that basis is more representative of the pattern of the
to pay to borrow the funds necessary to obtain an asset of
benefit. Short-term leases are leases with a lease term of
similar value to the right-of-use asset in a similar economic
12 months or less.
environment with similar terms, security and conditions.
2.23 Contingent Liability & Commitments:
To determine the incremental borrowing rate, the group:
Contingent liability is disclosed in the case of:
• where possible, uses recent third-party financing
received by the individual lessee as a starting point, • a present obligation arising from past events, when
adjusted to reflect changes in financing conditions it is not probable that an outflow of resources will be
since third party financing was received required to settle the obligation;

• uses a build-up approach that starts with a risk-free • a present obligation arising from past events, when no
interest rate adjusted for credit risk for leases held reliable estimate possible;
by the group which does not have recent third party • a possible obligation arising from past events, unless
financing, and the probability of outflow of resources is remote.
• makes adjustments specific to the lease, e.g. term, Commitments include the amount of purchase order (net
country, currency and security. of advances) issued to parties for completion of assets.
The group is exposed to potential future increases in 2.24 Critical Estimates and Judgements:
variable lease payments based on an index or rate, which
The preparation of consolidated financial statements
are not included in the lease liability until they take effect.
requires the use of accounting estimates which,
When adjustments to lease payments based on an index
by definition, will seldom equal the actual results.
or rate take effect, the lease liability is reassessed and
Management also exercise judgement in applying the
adjusted against the right-of-use asset.
group’s accounting policies.
Lease payments are allocated between principal and
Detailed information about the areas that involved a higher
finance cost. The finance cost is charged to profit or loss
degree of judgement or complexity, and of items which
over the lease period so as to produce a constant periodic
are more likely to be materially adjusted due to estimates
rate of interest on the remaining balance of the liability for
and assumptions turning out to be different than those
each period.
originally assessed. Detailed information about each of
 ight-of-use assets are measured at cost comprising
R these estimates and judgements is included in relevant
the following: notes together with information about the basis of
calculation for each affected line item in the consolidated
• the amount of the initial measurement of lease liability
financial statements.
• any lease payments made at or before the
The areas involving critical estimates or judgements are:
commencement date less any lease incentives received

186
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(i) Estimation of current tax expense and payable – Government grants relating to income are deferred and
refer note: 31(b) recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
(ii) Estimation of defined benefit obligations- refer
compensate and presented within other income.
note: 17
Government grants relating to the purchase of property,
(iii) Allowance for uncollected accounts receivable and
plant and equipment are included in non-current liabilities
advances. Trade receivables do not carry any interest
as deferred income and are credited to profit or loss on
and are stated at their nominal value as reduced by
a straight-line basis over the expected lives of the related
appropriate allowances for estimated irrevocable
assets and presented within other income.
amounts. Individual trade receivables are written off
when management deems them not to be collectible. E xport incentives comprise of Duty draw back and MEIS
Impairment is made on the expected credit losses, (Merchandise Exports Incentive scheme) scrips.
which are the present value of the cash shortfall over
Export entitlements from government authorities are
the expected life of the financial assets- refer note:
recognised in the statement of profit and loss as a income
34 (A).
or reduction from “Cost of materials consumed”, when
(iv) 
Estimation of useful lives and residual value of there is reasonable assurance that the entity will comply
property, plant and equipment and intangible with the conditions attaching to them and the grants will
assets– refer above para 2.12(i). be received.

Estimates and judgements are continually evaluated. 2.26 Rounding of Amounts:

They are based on historical experience and other A ll amounts disclosed in the consolidated financial
factors, including expectations of future events that statements and notes have been rounded off to the
may have a financial impact on the group and that are nearest lakhs as per the requirement of Schedule III of the
believed to be reasonable under the circumstances. Companies Act, 2013, unless otherwise stated.
2.25 Government Grants:
Grants from the government are recognised at their fair
value where there is a reasonable assurance that the
grant will be received and the group will comply with all
attached conditions.

33rd Annual Report 2022-23 | 187

188
Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 3: Property, Plant and Equipment

Computer
Freehold Plant and Roads and Furniture Office Laboratory and data
Vehicles Total
Land Machinery Buildings and Fixtures Equipment Equipment processing
units
Year ended March 31, 2022
Gross carrying amount
At the beginning of the year 17,151 3,06,509 1,14,205 4,400 1,349 3,244 17,716 2,135 4,66,709
Additions 123 56,575 29,299 616 1,255 645 4,002 387 92,902
Disposals - (231) (2) - - - - - (233)
At the end of the year 17,274 3,62,853 1,43,502 5,016 2,604 3,889 21,718 2,522 5,59,378
Accumulated depreciation
At the beginning of the year - 72,988 12,264 1,721 478 1,927 6,700 1,165 97,243
Depreciation charge during the year - 23,230 4,386 451 215 409 1,687 373 30,751
Disposals - (28) - - - - - - (28)
At the end of the year - 96,190 16,650 2,172 693 2,336 8,387 1,538 1,27,966
Net carrying amount as at March 31, 2022 17,274 2,66,663 1,26,852 2,844 1,911 1,553 13,331 984 4,31,412
Year ended March 31, 2023
Gross carrying amount
At the beginning of the year 17,274 3,62,853 1,43,502 5,016 2,604 3,889 21,718 2,522 5,59,378
Additions 2,189 54,990 12,474 716 138 505 2,662 266 73,940
Disposals (40) (30) (36) - (1) - - - (107)
At the end of the year 19,423 4,17,813 1,55,940 5,732 2,741 4,394 24,380 2,788 6,33,211
Accumulated depreciation
At the beginning of the year - 96,190 16,650 2,172 693 2,336 8,387 1,538 1,27,966
Depreciation charge for the year - 25,543 4,850 486 264 439 1,883 363 33,828
Disposals - - - - - -
At the end of the year - 1,21,733 21,500 2,658 957 2,775 10,270 1,901 1,61,794
Net carrying amount as at March 31, 2023 19,423 2,96,080 1,34,440 3,074 1,784 1,619 14,110 887 4,71,417
Notes:

(i) Contractual obligations and other commitments: refer note 42 for disclosure of contractual and other commitments for the acquisition of property, plant and equipment.

(ii) T he gross carrying amounts of roads and buildings and plant and machinery and capital work in progess in note 4 includes staff cost of `570(March 31, 2022: `437) relating to projects
team involved in supervision and monitoring of these projects and cost of power consumed of `310 (March 31, 2022: `281)

(iii) The Group has not revalued its Property, plant and equipment during the year or in the previous year
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 3(a): Right of use Assets

Amount
Year ended March 31, 2022
Gross carrying amount
At the beginning of the year 530
Additions -
At the end of the year 530
Accumulated Depreciation
At the beginning of the year 104
Depreciation charge during the year 82
At the end of the year 186
Net carrying amount as at March 31, 2022 344
Year ended March 31, 2023
Gross carrying amount
At the beginning of the year 530
Additions 32
Foreign operations translation adjustments 43
At the end of the year 605
Accumulated Depreciation
At the beginning of the year 186
Depreciation charge during the year 98
Foreign operations translation adjustments 6
At the end of the year 290
Net carrying amount as at March 31, 2023 315

Note 3(b): Lease Liabilities

March 31, 2023 March 31, 2022
Non-current
Lease liabilities 277 287
Current
Lease liabilities 49 82
326 369

Note 3(c): Amounts Recognised in the Consolidated Statement of Profit and Loss:
Note March 31, 2023 March 31, 2022
Depreciation on right of use assets 29 98 82
Interest expenses included in finance costs 28 15 15

33rd Annual Report 2022-23 | 189

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 4: Capital Work-in-progress

Amount
Year ended March 31, 2022
At the beginning of the year 71,062
Additions 69,387
Capitalisations (93,456)
As at March 31, 2022 46,993
Year ended March 31, 2023
At the beginning of the year 46,993
Additions 48,335
Capitalisations (74,140)
As at March 31, 2023 21,188

Note 4(a): Capital Work-in-progress ageing schedule

Amount in CWIP for a period of
As at March 31, 2023 Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 16,517 2,723 964 984 21,188
Projects temporarily suspended - - - - -

Amount in CWIP for a period of

As at March 31, 2022
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 39,708 5,161 1,332 792 46,993
Projects temporarily suspended - - - - -

Note 4(b): There are no capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original
plan as at March 31, 2023 and March 31, 2022.

Note 4(c): Assets under construction majorly consist of roads & buildings, plant & machinery and corresponding internal
development costs. During the year, the company has incurred capital costs of `48,335 on Capital work-in-progress at various
locations and which includes staff cost of `133 (March 31, 2022: `131) relating to projects team involved in supervision and
monitoring of these projects and cost of power consumed `29 (March 31, 2022: `39)

Note 5: Intangible Assets

Computer
software
Year ended March 31, 2022
Gross carrying amount
At the beginning of the year 1,947
Additions 572
Disposals -
At the end of the year 2,519
Accumulated amortisation
At the beginning of the year 1,452
Amortisation charges during the year 318
Disposals -
At the end of the year 1,770
Net carrying amount as at March 31, 2022 749

190
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Computer
software
Year ended March 31, 2023
Gross carrying amount
At the beginning of the year 2,519
Additions 218
Disposals (77)
At the end of the year 2,660
Accumulated amortisation
At the beginning of the year 1,770
Amortisation charge during the year 392
Disposals (30)
At the end of the year 2,132
Net carrying amount as at March 31, 2023 528
Note:

(a) The Group has not revalued intangible assets during the year or in the previous year

Note 6: Non-current Investments

March 31, 2023 March 31, 2022
(Unquoted, fully paid up)
(a) Investment in equity instruments in other companies (at FVPL)
12000 (March 31, 2022: 12000) Equity Shares of `10/- each of Pattan Cheru Enviro Tech Limited 1 1
Total equity instrument 1 1
(b) Investment in debentures in other companies (at FVPL)
Redeemable 0.25%, 7,20,00,000 optionally convertible debentures (OCDs) of `10/- each 7,704 7,200
(Including change in fair value of investments in OCDs `504 (March 31, 2022: Nil)) -
Total debentures 7,704 7,200
Total Non-current investments 7,705 7,201

Aggregate amount of unquoted investments 7,705 7,201

Aggregate amount of quoted investments and market value thereof - -
Aggregate amount of impairment in the value of investment - -

Note 7: Income Tax Assets (net)

March 31, 2023 March 31, 2022
7(a) Income Tax assets - Non-current
Prepaid income taxes 2,917 2,917
2,917 2,917
7(b) Income Tax asset - Current
Prepaid income taxes 52,987 131,657
Provision for income tax (43,200) (125,889)
9,787 5,768
Total Income Tax asset 7(a)+7(b) 12,704 8,685

33rd Annual Report 2022-23 | 191

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 7(c): Movement in income tax assets

March 31, 2023 March 31, 2022
Income tax assets - at the beginning of the year 8,685 10,287
Add: Taxes paid during the year 47,159 66,780
Less: Others (refund received) - (3,801)
Add/(Less): Adjustments of current tax for prior years 60 (281)
Add: MAT credit utilisation 744 -
Less: Current tax provision (43,944) (64,300)
Net income tax assets - at the end of the year 12,704 8,685

Note 8: Current Tax Liabilities (net)

March 31, 2023 March 31, 2022
Provision for income tax 840 680
Prepaid income taxes 619 512
Total current tax liabilities (net) 221 168

Note 8(a): Movement in current tax liabilities

March 31, 2023 March 31, 2022
Current tax liabilities - at the beginning of the year 168 598
Add: Foreign operations translation adjustment (9) 45
Less: Taxes paid during the year (97) (1,119)
Add: Adjustments - (36)
Add: Current tax provision 159 680
Net current tax liability - at the end of the year 221 168

Note 9: Other Non-current Assets

March 31, 2023 March 31, 2022
Capital advances 1,899 4,832
Pre-paid expenses 117 89
Other receivables including indirect tax refund claims 84 562
Total other non-current assets 2,100 5,483

Note 10: Inventories

March 31, 2023 March 31, 2022
(Valued at lower of cost and net realisable value)
Raw materials 97,169 77,302
Work-in-progress 1,52,571 1,53,159
Finished goods 29,897 31,678
Stock in trade 303 237
Packing material 936 916
Stores and spares 19,165 19,570
Total Inventories 3,00,041 2,82,862

Raw materials and finished goods consists of goods in transit of `6,049 (March 31, 2022- `7,306) and `12,385 (March 31, 2022-
`16,257) respectively.

192
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Amounts Recognised in Profit and Loss

Write-downs of inventories to net realisable value and on account of slow moving inventory amounted to `1,459 (March 31, 2022
- `533). These were recognised in statement of profit and loss and included in ‘Changes in inventories of finished goods and work-
in-progress ‘ and ‘Cost of raw materials consumed’.

Note 11: Trade Receivables

March 31, 2023 March 31, 2022
Trade receivables 1,79,840 2,42,900
Less: Loss allowance 587 512
Total Trade receivables 1,79,253 2,42,388
Current portion 1,79,253 2,42,388
Non-current portion - -

(a) Security wise break-up of Trade Receivables

March 31, 2023 March 31, 2022
Trade receivables considered good- secured - -
Trade receivables considered good - unsecured 1,79,253 2,42,388
Trade receivables which have significant increase in credit risk 570 495
Trade receivables - credit impaired 17 17
Total 1,79,840 2,42,900
Less: Loss allowance 587 512
Total trade receivables 1,79,253 2,42,388

(b) Ageing of Trade Receivables

Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than 6 Months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
March 31, 2023
Undisputed trade receivables
considered good - 1,51,628 27,157 341 124 3 - 1,79,253
which have significant increase in credit risk - - 37 - 14 141 323 515
credit impaired - - - 17 - - 17
Disputed trade receivables
considered good - - - - - - - -
which have significant increase in credit risk - - - - - - 55 55
credit impaired - - - - - - - -
Total - 1,51,628 27,194 341 155 144 378 1,79,840
Less: Loss allowance - - 37 - 31 141 378 587
Total trade receivables 1,79,253

33rd Annual Report 2022-23 | 193

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Outstanding for following periods from due date of payment

Particulars Unbilled Not due Less than 6 Months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
March 31, 2022
Undisputed trade receivables
considered good - 2,15,036 26,856 312 100 48 36 2,42,388
which have significant increase in credit risk - - - - 88 89 263 440
credit impaired - - - 17 - - - 17
Disputed trade receivables
considered good - - - - - - - -
which have significant increase in credit risk - - - - - - 55 55
credit impaired - - - - - - - -
Total - 2,15,036 26,856 329 188 137 354 2,42,900
Less: Loss allowance - - - 17 88 89 318 512
Total trade receivables 2,42,388

Note 12: Cash and Cash Equivalents

March 31, 2023 March 31, 2022
Balances with banks
- in current accounts 2,801 2,117
- in terms deposits with maturity period not more than three months 14,077 1,19,288
Cash on hand 92 71
Total cash and cash equivalents* 16,970 1,21,476
*There are no repatriation restrictions on cash and cash equivalents as at the end of the current year and previous year.

Note 13: Bank Balances other than Cash and Cash Equivalents
March 31, 2023 March 31, 2022
Balances in earmarked accounts with banks:
- Unclaimed dividend 114 107
Balances in term deposit accounts with maturity period of more than three
months and not more than twelve months:
- pledged towards margin on guarantees issued by bank 7,557 7,241
- pledged towards overdraft facilities with banks 402 374
- other unencumbered deposits 3,96,266 1,52,690
Total bank balances other than cash and cash equivalents 4,04,339 1,60,412

Note 14: Other Financial Assets

March 31, 2023 March 31, 2022
Note 14(a): Other financial assets-non-current
Security deposits 4,945 5,621
Term deposits with bank with maturity period exceeding twelve months 164 154
(pledged towards margin on guarantees issued by bank)
Total Other financial assets - non -current 5,109 5,775
Note 14(b): Other financial assets-current
Export incentive receivable 43 105
Rental deposits 342 347
Others deposits 219 11
Insurance claims receivable 3 26
Total other financial assets - current 607 489
Total other financial assets (a+b) 5,716 6,264

194
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 15: Other Current Assets

March 31, 2023 March 31, 2022

Indirect taxes- input credits 13,937 10,186

Prepaid expenses 2,720 2,709
Advances to suppliers 3,389 8,731
Other receivables includes indirect tax refund claims 131 129
Total other current assets 20,177 21,755

Note: 16 Equity Share Capital and Other Equity

Note16 (a): Equity Share Capital
(i) Authorised equity share capital
Particulars Number of shares Amount

As at April 1, 2021 30,00,00,000 6,000

Movement during the year - -
As at March 31, 2022 30,00,00,000 6,000
Movement during the year - -
As at March 31, 2023 30,00,00,000 6,000

(ii) Issued, subscribed and paid-up equity share capital

Particulars Number of shares Amount

As at April 1, 2021 26,54,68,580 5,309

Movement during the year - -
As at March 31, 2022 26,54,68,580 5,309
Movement during the year - -
As at March 31, 2023 26,54,68,580 5,309

Terms and rights attached to equity shares

The company has only one class of equity shares having par value of `2 per share. The company declares and pays dividends in
Indian rupees. In the event of liquidation of the Group, the holders of equity shares will be entitled to receive remaining assets
of the Group, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.

(iii) Details of shareholders holding more than 5% shares in the company

March 31, 2023 March 31, 2022
Particulars
Number of shares % holding Number of shares % holding

Dr. Satchandra Kiran Divi 5,40,00,000 20.34% 5,40,00,000 20.34%

Mrs. Swarnalatha Divi 1,40,00,000 5.27% 1,40,00,000 5.27%
Ms. Nilima Prasad Divi 5,40,00,000 20.34% 5,40,00,000 20.34%
SBI Mutual Fund 2,04,76,057 7.71% 1,38,35,574 5.21%
Life Insurance Corporation of India 1,47,30,917 5.55% 62,43,609 2.35%

33rd Annual Report 2022-23 | 195

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(iv) Shareholdings of Promoter and promoter group:

March 31, 2023 March 31, 2022
Promoter Name % of total % of change % of total % of change
No. of shares No. of shares
shares during the year shares during the year
Dr. Murali Krishna Prasad Divi 75,67,000 2.85% 0.00% 7,567,000 2.85% 0.00%
Dr. Satchandra Kiran Divi 5,40,00,000 20.34% 0.00% 54,000,000 20.34% 0.00%
Ms. Nilima Prasad Divi 5,40,00,000 20.34% 0.00% 54,000,000 20.34% 0.00%
Mrs. Swarnalatha Divi 1,40,00,000 5.27% 0.00% 14,000,000 5.27% 0.00%
Divi's Biotech Private Limited 80,00,000 3.01% 0.00% 8,000,000 3.01% 0.00%
Mr. Madhusudana Rao Divi 2,89,600 0.11% 0.00% 297,600 0.11% 0.00%
Mr. Babu Rajendra Prasad Divi 26,600 0.01% 0.00% 26,600 0.01% 0.00%
Mr. Radhakrishna Rao Divi - 0% -100% 3,000 0.00% 0.00%

Note 16 (b): Other Equity

March 31, 2023 March 31, 2022
Reserves and surplus
Securities premium reserve 7,988 7,988
General reserve 100,000 100,000
Retained earnings 1,095,811 998,885
Special economic zone re-investment reserve 65,089 59,085
1,268,888 1,165,958
Other comprehensive Income
Exchange difference on foreign operations 2,512 1,551
Total other equity 1,271,400 1,167,509

(i) There is no movement in securities premium reserve and general reserve during the reporting year and previous
year.
(ii) Retained earnings
March 31, 2023 March 31, 2022
At the beginning of the year 9,98,885 759,772
Profit after tax for the year 1,82,338 2,96,045
Transfer to special economic zone re-investment reserve (14,559) (12,520)
Transfer from special economic zone re-investment reserve 8,555 8,464
Dividends paid to company's shareholders (79,641) (53,094)
Items of other comprehensive income recognised directly in retained earnings:
- Remeasurements of post employment benefit obligation, net of tax 233 218
At the end of the year 1,095,811 998,885

(iii) Special economic zone re-investment reserve

March 31, 2023 March 31, 2022
At the beginning of the year 59,085 55,029
Transfer from retained earnings 14,559 12,520
Transferred to retained earnings (8,555) (8,464)
At the end of the year 65,089 59,085

196
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Nature and purpose of reserves:

Securities premium reserve:
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Act.

General Reserve:
General reserves represent amounts transferred from retained earnings in earlier years under the provisions of the erstwhile
Companies Act, 1956.

Special economic zone re-investment reserve

Under the SEZ scheme, the unit which begins production of goods/ services on or after April 1, 2005 is eligible for deduction of
100% of profits or gains derived from export of goods/ services for the first five years, 50% of such profits or gains for a further
period of five years and 50% of such profits or gains for the balance period of five years subject to creation of special economic
zone re-investment reserve out of profits of eligible SEZ units and utilisation of such reserve by the company for acquiring new
plant and equipment for the purpose of its business as per the provisions of the Income Tax Act, 1961.

Note 17: Provisions - Employee Benefit Obligations

March 31, 2023 March 31, 2022
Current Non-current Total Current Non-current Total

compensated absences 492 3,062 3,554 415 2,671 3,086

Gratuity (Refer Note 17(b)) - - - - - -
492 3,062 3,554 415 2,671 3,086

(a) Compensated Absences Obligations:

 he Compensated absences covers the company’s liability for earned leave which is classified as other long-term benefits.
T
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore measured at the present value of expected future payments to
be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit
method. The benefit is discounted using the market yields at the end of the reporting period that have terms approximating
to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial
assumptions are recognised in statement of profit and loss.

(b) Post-employment Obligations - Gratuity: (Defined benefit)

The company provides gratuity for employees as per the payment of gratuity Act, 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity benefit. The amount of gratuity payable on retirement/termination is
the employees’ last drawn basic salary per month computed proportionately for 15 days’ salary multiplied for the number
of years of service. The gratuity plan is a funded plan and the company makes contributions, through an approved trust, to
recognised funds administered by life insurance corporation of India (Insurer).

33rd Annual Report 2022-23 | 197

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(i)  he amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year
T
are as follows:
Present value Fair value
Net amount
of obligation of plan assets
As at April 01, 2021 3,788 (3,881) (93)
Current service cost 328 - 328
Interest expense/(income) 259 (277) (18)
Amount recognised in Statement of profit and loss 587 (277) 310
Remeasurements
Return on plan assets, excluding amounts included in interest expense/(income) - 9 9
(Gain)/loss from change in demographic assumptions - - -
(Gain)/loss from change in financial assumptions (268) - (268)
Experience (gains)/loss 167 - 167
Amount recognised in other comprehensive income (101) 9 (92)
Amount recognised in total comprehensive income 486 (268) 218
Employer contributions - (362) (362)
Benefit payments (57) 57 -
As at March 31, 2022 4,217 (4,454) (237)

Present value of Fair value of plan

Net amount
obligation assets
As at April 01, 2022 4,217 (4,454) (237)
Current service cost 354 - 354
Interest expense/(income) 310 (299) 11
Amount recognised in Statement of profit and loss 664 (299) 365
Remeasurements
Return on plan assets, excluding amounts included in interest expense/(income) - 1 1
(Gain)/loss from change in demographic assumptions - - -
(Gain)/loss from change in financial assumptions (71) - (71)
Experience (gains)/loss (74) - (74)
Amount recognised in other comprehensive income (145) 1 (144)
Amount recognised in total comprehensive income 519 (298) 221
Employer contributions - (62) (62)
Benefit payments (47) 47 -
As at March 31, 2023 4,689 (4,767) (78)

The net liability disclosed above relates to funded plans are as follows:
March 31, 2023 March 31, 2022
Present value of funded obligations 4,689 4,217
Fair value of plan assets (4,767) (4,454)
Surplus of funded plans* (78) (237)
* Included under note 15 ‘Other current assets’

198
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

The significant actuarial assumptions were as follows:

March 31, 2023 March 31, 2022
Discount rate 7.52% 7.39%
Salary growth rate 6% 6%
Attrition rate depending on age 1% to 3% 1% to 3%
Retirement age 60 years 60 years
Average balance future service 28.41 years 29.38 years
Mortality table IALM (2012-14) IALM (2012-14)

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
March 31, 2023 March 31, 2022
Defined benefit obligation under base scenario 4,689 4,217
Increase / (Decrease) in Defined benefit obligation:
Discount rate:(% change compared to base due to sensitivity)
Increase: +1% (494) (456)
Decrease: -1% 595 551
Salary growth rate:(% change compared to base due to sensitivity)
Increase: +1% 528 511
Decrease: -1% (452) (454)
Attrition rate:(% change compared to base due to sensitivity)
Increase : +1% 91 77
Decrease: -1% (105) (88)

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and
when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used
in preparing the sensitivity analysis did not change compared to the prior year.

(c) Defined Benefit Liability

The company has established a trust to administer its obligation for payment of gratuity to employees. The trust in turn
contributes to a scheme administered by the Life Insurance Corporation of India (Insurer). Every year, the insurer carries out
a funding valuation based on the latest employee data provided by the company. Any deficit in the assets arising as a result
of such valuation is funded by the company. Any deficit in the assets arising as a result of such valuation is funded by the
company.. The trust has not changed the process used to manage the risks from previous years.

March 31, 2023 March 31, 2022

*Fund managed by Life Insurance Corporation of India (Unquoted) 100% 100%
*Fund is managed by LIC as per IRDA guidelines, category-wise composition of the plan assets is not available.

Contributions to post employment benefit plan for the year ending March 31, 2024 is expected to be `543

33rd Annual Report 2022-23 | 199

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

The weighted average duration of the defined benefit obligation is 17.73 years (March 31, 2022 - 13.32 Years). The expected
maturity analysis of undiscounted gratuity is as follows:

Less than a Between Between Between Over

Particulars Total
year 1-2 years 2-5 years 6-10 years 10 years
March 31, 2023
Defined benefit obligation-gratuity 543 212 664 1,432 11,549 14,400
March 31, 2022
Defined benefit obligation-gratuity 409 222 607 1,239 10,519 12,996

(d) Risk Exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are
detailed below:

Interest rate risk: The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

 iquidity risk: This is the risk that the company is not able to meet the short term gratuity pay-out. This may arise due to
L
non-availability of enough cash / cash equivalents to meet the liabilities or holdings liquid assets not being sold in time.

Salary escalation risk: The present value of the defined benefit plans calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value obligation will have a bearing on the plan’s liability.

Demographic risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The
company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory risk: Gratuity benefits are paid in india in accordance with the requirements of the Payment of Gratuity Act, 1972
(as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the
maximum limit on gratuity.)

A sset liability mismatching or market risk: The duration of the liability is longer compared to duration of assets, exposing the
company to market risk for volatilities/fall in interest rate.

 hanges in fund yields: A decrease in fund yields will increase plan liabilities, although this will be partially off-set by an
C
increase in the value of the plan’s fund holdings.

(e) Defined Contribution Plans

Employer’s contribution to provident fund: Contributions are made to provident fund in India for employees at the rate
of 12% of the employee’s qualifying salary as per regulations. The contributions are made to registered provident fund
administered by the Government. The obligation of the company is limited to the amount contributed and it has no further
contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is
`2,560 (March 31, 2022- `2,108).

Employer’s contribution to state insurance scheme: Contributions are made to state insurance scheme for employees at
the rate of 3.25%. The contributions are made to employee state insurance corporation (ESI), a corporation administered by
the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor
any constructive obligation. The expense recognised during the period towards defined contribution plan is `342 (March 31,
2022- `311)

200
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 18: Deferred Tax:

The balance comprises temporary differences attributable to:

Particulars March 31, 2023 March 31, 2022

Deferred tax asset:

Deferred tax on intra group adjustments 1,325 1,379
Others 99 68
Deferred tax asset 1,424 1,447

The balance comprises temporary differences attributable to:

Particulars March 31, 2023 March 31, 2022

Deferred tax liability /(asset)

Property, plant and equipment 55,288 44,297
MAT credit entitlement - (744)
Employee benefits (1,701) (1,392)
Others 134 (21)
Net deferred tax liabilities 53,721 42,140

Changes through Changes MAT credit

Particulars April 01, 2021 March 31, 2022
Profit and Loss through OCI (created)/utilised
Property, plant and equipment 35,110 9,187 - - 44,297
Employee benefit expenses (1,225) (167) - - (1,392)
Others including intra-group adjustments (402) (1,111) 45 (744) (2,212)
Foreign operations translation adjustment - (4) - - -
Net Deferred tax liability/(asset) 33,483 7,905 45 (744) 40,693
Deferred tax asset-refer note 18(a) 1,447
Deferred tax liability- refer note 18(b) 42,140

Changes through Changes MAT credit

Particulars April 01, 2022 March 31, 2023
Profit and Loss through OCI (created)/utilised
Property, plant and equipment 44,297 10,991 - - 55,288
Employee benefit expenses (1,392) (309) - - (1,701)
Others including intra-group adjustments (2,212) (40) 218 744 (1,290)
Foreign operations translation adjustment - (34) - - -
Net Deferred tax liability/(asset) 40,693 10,608 218 744 52,297
Deferred tax asset-Refer Note 18(a) 1,447 1,424
Deferred tax liability- Refer Note 18(b) 42,140 53,721

33rd Annual Report 2022-23 | 201

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 19: Current Borrowings

Maturity date and terms
Particulars Interest rate March 31, 2023 March 31, 2022
of payment
Loans payable on demand:
From banks - secured
- Working capital loans from banks Payable on demand 8.20% - -
- Overdraft facilities from banks Payable on demand 8.15% - -
Total current borrowings - -

a) Utilisation of borrowings availed from banks

The borrowings obtained by the company from banks have been applied for the purposes for which such loans were taken.

b) Quarterly statements filed with banks

The quarterly statements of current assets filed by the company in respect of its working capital facilities with banks are in
agreement with the books of accounts.

c) Wilful defaulter

 he company has not been declared as wilful defaulter by any bank or financial institutions or government or any
T
government authority.

Secured borrowings and assets pledged as security

Working capital loans are secured by pari-passu first charge on Inventories, receivables and other current assets of the company.

Overdraft facilities from banks are secured by pledge of specific term deposits with banks.

Note 19(d): Assets pledged as security

The carrying amounts of Company’s assets pledged as security for working capital loans from banks:
Particulars March 31, 2023 March 31, 2022
Current Assets*
Inventory 2,78,045 2,64,405
Trade receivables 1,96,430 2,56,990
Other Current assets 4,49,070 3,08,201
9,23,545 8,29,596
- -
*Value of Letters of credit and guarantees outstanding as at March 31, 2023 is Rs. 8,568 (March 31, 2022 is Rs. 12,088)
There were no delays in registration or satisfication of charges with Registrar of Companies beyond the statutory period.

Note 19(e): Net debt reconciliation

This section sets out the changes in liabilities arising from financing activities in the statement of cash flows:
Particulars March 31, 2023 March 31, 2022
Borrowings outstanding at the year end - -
Cash and cash equivalents (16,970) (1,21,476)
Net Debt /(Surplus) (16,970) (1,21,476)
Net Debt Obligations - -

202
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Liabilities from
Other assets
financing activities Net debt/
Current Cash and bank (Surplus)
borrowings overdraft
Net Debt/(surplus) as at April 01,2021 35 (2,03,032) (2,02,997)
Cash flows (35) 81,556 81,521
Interest expense 21 - 21
Interest paid (21) - (21)
Net Debt /(surplus) as at March 31, 2022 - (1,21,476) (1,21,476)
Net Debt /(surplus) as at April 01, 2022 - (1,21,476) (1,21,476)
Cash flows - 1,04,506 1,04,506
Interest expense (33) - (33)
Interest paid 33 - 33
Net Debt /(surplus) as at March 31, 2023 - (16,970) (16,970)

Note 20: Trade Payables

Particulars March 31, 2023 March 31, 2022
Current
Trade payables -micro and small enterprises (refer note no.43) 3,749 2,478
Trade payables -others 72,502 77,092
Total trade payables 76,251 79,570

(a) Ageing of Trade Payables

As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than More than Total
1-2 years 2-3 years
1 year 3 years
Undisputed trade payables
Micro and small enterprises - 3,749 - - - - 3,749
Others 14,240 39,855 18,384 16 2 5 72,502
Total Trade payables 14,240 43,604 18,384 16 2 5 76,251

As at March 31, 2022

Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than 1 More than Total
1-2 years 2-3 years
year 3 years
Undisputed trade payables
Micro and small enterprises - 1,971 507 - - - 2,478
Others 19,506 22,982 34,600 - 4 - 77,092
Total Trade payables 19,506 24,953 35,107 - 4 - 79,570

(b) There are no trade payables with no specified due date of payments as at March 31, 2023 and March 31, 2022.

(c) There are no disputed trade payables as at March 31, 2023 and March 31, 2022.

33rd Annual Report 2022-23 | 203

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 21: Other Financial Liabilities

March 31, 2023 March 31, 2022
Current
Capital creditors 3,669 5,543
Unclaimed dividend 114 107
Accrual for rebates / discounts 556 639
Total other financial liabilities 4,339 6,289

Note 22: Other Current Liabilities

March 31, 2023 March 31, 2022
Statutory dues payable 1,285 1,195
Deferred revenue government grants 87 76
Employee benefits payable 23,244 30,097
For corporate social responsibility activity (Net of advances of `105) [refer note 29(b)(i)] 868 -
Advance from customers 3,272 1,663
Total other current liabilities 28,756 33,031

Note 23: Revenue from Operations

March 31, 2023 March 31, 2022
Sale of products 7,64,658 8,78,811
Sale of services 1,936 1,112
Other operating revenue:
Sale of scrap out of manufacturing process 8,287 10,695
Export incentives 1,870 5,365
Total revenue from operations 7,76,751 8,95,983

Note 23(a): Reconciliation of revenue recognised with contract price:

March 31, 2023 March 31, 2022
Contract price 7,80,060 8,93,454
Rebates / Discounts (5,179) (2,836)
Revenue from contracts with customers 7,74,881 8,90,618

Note 23(b): Disaggregation of revenue:

The Group derives revenue from operations viz., (Sale of products and services and other operating revenue) from following
geographical areas (based on where products and services are delivered):

March 31, 2023 March 31, 2022

Region Revenue from Revenue from

Other operating Total revenue Other operating Total revenue
contracts with contracts with
Revenue from operations revenue from operations
customers customers
America 2,21,420 - 2,21,420 3,89,762 - 3,89,762
Asia 1,04,124 - 1,04,124 79,807 - 79,807
Europe 3,18,726 - 3,18,726 2,88,010 - 2,88,010
India 95,688 1,870 97,558 98,419 5,365 1,03,784
Rest of the world 34,923 - 34,923 34,620 - 34,620
7,74,881 1,870 7,76,751 8,90,618 5,365 8,95,983

204
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 24: Other Income

March 31, 2023 March 31, 2022
Interest income from financial assets at amortised cost 20,459 6,896
Change in fair value of Optionally Convertible Debentures 504 -
Net gain on foreign currency transactions and translations 12,967 4,058
Miscellaneous income 526 424
Government grants 10 9
Total other income 34,466 11,387

Note 25: Cost of Raw Materials Consumed

March 31, 2023 March 31, 2022
Raw materials at the beginning of the year 77,302 70,551
Add: Purchases 3,20,703 3,54,407
Less: Raw materials at the end of the year 97,169 77,302
Total cost of raw materials consumed 300,836 347,656

Note 26: Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade

March 31, 2023 March 31, 2022
Opening Balance:
Finished goods 31,678 23,215
Stock-in-trade 237 142
Work-in-progress 1,53,159 1,09,334
1,85,074 1,32,691
Closing Balance:
Finished goods 29,897 31,678
Stock-in-trade 303 237
Work-in-progress 1,52,571 1,53,159
1,82,771 1,85,074
Total changes in inventories of finished goods, work-in-progress and stock-in-trade 2,303 (52,383)

Note 27: Employee Benefits Expense

March 31, 2023 March 31, 2022
Salaries, wages, bonus and other allowances* 92,245 89,843
Contribution to provident fund and other funds 2,899 2,428
Contribution to ESI 342 311
Staff welfare expenses 2,016 2,034
Total employee benefits expense 97,502 94,616
*Net of `133 (March 31, 2022 `131) transferred to capital work in progress (refer note 4)

33rd Annual Report 2022-23 | 205

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 28: Finance Costs

March 31, 2023 March 31, 2022
Interest and finance charges on financial liabilities carried at amortised cost 18 21
Interest on lease liabilities 15 15
Interest on income tax - 1
Charges for letters of credit / bank guarantees 34 43
Total finance costs 67 80

Note 29: Depreciation and Amortisation Expense

March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 33,828 30,751
Depreciation charge on right -of-use assets 98 82
Amortisation of intangible assets 392 318
Total depreciation and amortisation expense 34,318 31,151

Note 30: Other Expenses

March 31, 2023 March 31, 2022
Consumption of stores and spare parts 6,832 6,364
Packing materials consumed 5,749 6,110
Conversion Charges 2,709 2,756
Power and fuel* 49,529 38,753
Repairs and maintenance- buildings 3,974 2,910
Repairs and maintenance- machinery 16,781 15,593
Repairs and maintenance- others 193 188
Insurance 2,974 2,693
Rates and taxes, excluding taxes on income 1,497 1,690
Non-executive directors' remuneration including sitting fees 211 217
Printing and stationery 761 758
Rental charges 1,187 1,077
Communication expenses 186 191
Travelling and conveyance 9,096 5,030
Vehicle maintenance 168 159
Payments to auditors (Refer note No. 30(a)) 106 79
Legal and professional charges 1,656 1,000
Factory upkeep 682 483
Environment management expenses 5,018 4,013
Advertisement and publication expenses 15 16
Research and development expenses (refer note no. 30(c)) 3,005 2,029
Sales commission 1,144 1,341
Carriage outward 10,223 11,344
General expenses 7,607 6,896
Electricity service line charges 132 480
Provision for doubtful debts/ (written back) including bad debts recovered 33 (203)
Corporate social responsibility activities (refer note no.30(b)) 5,385 4,167
Loss on disposal / discard of assets 113 205
Bank charges 129 120
Total Other expenses 1,37,095 1,16,459
*Net of `29 (March 31, 2022: `39) transferred to capital work in progress (refer note 4)

206
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 30(a): Details of payments to auditors of parent company

March 31, 2023 March 31, 2022
As statutory auditor 40 40
For quarterly reviews 26 24
Reimbursement of expenses 4 2
Total payments to auditors 70 66

Note 30(b)(i): Expenditure on corporate social responsibility activities (CSR)

The Company has spent amounts as specified below towards various schemes of corporate social responsibility activities as
prescribed under Section 135 of the Companies Act, 2013.

March 31, 2023 March 31, 2022

(i) Construction / acquisition of any asset - -
(ii) On purposes other than (i) above 4,224 4,213
Total amount spent during the year 4,224 4,213
Add: Excess amount of CSR expenditure spent under 135(5) of the act in the earlier years. 293 247
Less: Amount required to be spent for the year 5,385 4,167
Excess amount of CSR expenditure spent under 135(5) of the act - 293
Amount of shortfall for the year 868 -
Amount of cumulative shortfall at the end of the year 868 -
Reason for shortfall * NA
iii) Nature of CSR activities Promoting healthcare, education,
Rural development, Empowering
women, safe drinking water,
Environmental sustainability, Rural
sports, Swatch Bharat programme,
support to differently abled, livelihood
enhancement etc.,
* The unspent amount of `868, is on account of ongoing projects, which has been transferred to unspent CSR account after year end and will be spent
in accordance with the CSR amendment rules.

i) There are no transactions with related parties / trusts controlled by the company with respect to CSR expenditure.

Note 30(c): Research and development expenditure*

March 31, 2023 March 31, 2022
Salaries, wages, bonus and other allowances 3,722 3,268
Contribution to provident and other funds 165 158
Contribution to ESI 12 8
Staff welfare expenses 30 32
Consumption of stores and spares 1,107 749
Power and fuel 290 233
Repairs to buildings 47 26
Repairs to machinery 479 526
Repairs to other assets 24 18
Rates and taxes, excluding taxes on income 9 5
Printing and stationery 25 20
Professional and consultancy charges 964 398
Miscellaneous expenses 60 54
Total research and development expenditure 6,934 5,495
* Research and development expenditure to the extent of `3,929 (March 31, 2022: `3,466) is grouped under employee benefit expenses (consists of
Salaries, wages, bonus and other allowances, contribution to provident and other funds and staff welfare expenses) and `3,005 (March 31, 2022:
`2,029) is grouped under other expenses.

33rd Annual Report 2022-23 | 207

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 31(a): Tax Expense

March 31, 2023 March 31, 2022
(i) Current tax expense
Current tax on profits for the year 44,518 64,155
Current tax charge /(reversals) of earlier years (601) 245
Total current tax expense 43,917 64,400
(ii) Deferred tax expense *
Decrease /(Increase) in deferred tax assets (1,030) (534)
Foreign operations translation adjustment (34) (4)
(Decrease) /Increase in deferred tax liabilities 11,672 8,443
Total deferred tax expense/(benefit) 10,608 7,905
iii. Current tax expense recognised in statement of profit and loss (i+ii) 54,525 72,305
iv. Current tax expense /(benefit) recognised in Other Comprehensive Income
Current tax expense /(benefit) 126 117
Deferred tax expense / (benefit) 218 45
Total current tax expense recognised in Other Comprehensive Income 344 162
Total current tax expense (iii+iv) 54,869 72,467
* Entire deferred tax for the year ended March 31, 2023 and March 31, 2022 relates to origination and reversal of temporary differences.

31(b): The Company benefits from the tax holiday available for units set up under the special economic zone act, 2005 in
India. These tax holidays are available for a period of fifteen years from the date of commencement of operations. Under the
SEZ scheme, the unit which begins production of goods/services on or after April 1, 2005 and on or before june 30,2020 will be
eligible for deduction of 100% of profits or gains derived from export of goods/services for the first five years, 50% of such profits
or gains for a further period of five years and 50% of such profits or gains for the balance period of five years subject to creation
of special economic zone re-investment reserve out of profits of eligible SEZ units and utilisation of such reserve in terms of the
provisions of the Income Tax Act, 1961.

31(c): Reconciliation of Tax Expense and the Accounting Profit Multiplied by India’s Tax Rate:
March 31, 2023 March 31, 2022
Profit from operations before income tax expenses 2,36,863 3,68,350
Tax at the Indian tax rate of 34.944% 82,769 1,28,716
Tax effect of amounts which are not deductible/ (includible) in calculating taxable income:
Expenses not deductible for tax purpose 1,882 1,239
Income not includible for tax purpose (35,016) (59,176)
Difference in overseas tax rates 182 (656)
Adjustments for current tax of prior periods (601) 245
Income includible for tax purpose 6,186 837
Others (533) 1,262
Total tax expense 54,869 72,467

208
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Financial Instruments and Risk Management

Note 32: Categories of Financial Instruments
March 31, 2023 March 31, 2022
Particulars Notes Level Carrying value / Carrying value /
fair value fair value
A. Financial assets
Measured at fair value through profit or loss
Investment in equity instruments of other companies 6 3 1 1
Investment in optionally convertible debentures (OCDs) of other 7,704 7,200
companies*
Measured at amortised cost
Trade receivables 11 1,79,253 2,42,388
Security deposits 14(a) 4,945 5,621
Cash and cash equivalents and other bank balances 12 and 13 4,21,309 2,81,888
Other financial assets 14(a) and 14(b) 771 643
Total financial assets 6,13,983 5,37,741
B. Financial liabilities
Measured at amortised cost
Trade payables 20 76,251 79,570
Capital creditors 21 3,669 5,543
Other financial liabilities 21 670 746
Total financial liabilities 80,590 85,859

Note 33: Fair Value Hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more
of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed
instruments where market is not liquid and for unlisted instruments.
* Optionally convertible debentures are redeemable at 10th year at 70% premium, if not converted. Incase of an early redemption, debenture holder is
eligible to get prorated premium. At any point of tenure, group can opt for conversion to equity shares at mutually agreed terms. These are secured by
way of first charge created over the aircraft.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments.

• the fair value of remaining financial instruments is determined using discounted cash flow analysis.

Valuation Process:
The Level 3 inputs for investment in equity shares and OCDs are derived using the discounted cash flow analysis.

33rd Annual Report 2022-23 | 209

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 34: Financial Risk Management

The Group’s activities expose it to credit risk, market risk, price risk and liquidity risk. The Group emphasises on risk
management and has an enterprise wide approach to risk management. The Group’s risk management and control procedures
involve prioritisation and continuing assessment of these risks and devise appropriate controls, evaluating and reviewing the
control mechanism.

(A) Credit Risk:

Credit risk management
I.  redit risk on cash and cash equivalents and investments is limited as the group generally invests in deposits with banks
C
that are majorly owned by the government of India, thereby minimising its risk.

II. Credit risk on security deposits, investments and trade receivables are evaluated as follows:

Expected credit loss for security deposits and loans:

Basis for recognition of expected
Category Asset Group
credit loss provision
Financial assets for which credit risk has not Loss allowance measured at Other Non-current financial assets
increased significantly since initial recognition 12 month expected credit losses Other Current financial assets

Expected credit loss for security deposits and loans:

March 31, 2023 March 31, 2022
Asset Group Gross carrying Expected Carrying amount Gross carrying Expected Carrying amount
amount credit loss net of provision amount credit loss net of provision
Other Non-current financial assets 5,109 - 5,109 5,775 - 5,775
Other Current Financial assets 607 - 607 489 - 489

Expected credit loss from treasury operations and for trade receivables:
Credit risk is the risk of financial loss to the group if a customer to a financial instrument fails to meet its contractual obligations
and arises primarily from trade receivables, treasury operations etc. Credit risk of the group is managed at the group level. In
the area of treasury operations, the group is presently exposed to risk relating to term deposits made with State Bank of India
and Scheduled banks. The group regularly monitors such deposits and credit ratings of the banks thereby minimising the risk.

“The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer. The credit
risk is managed by the group by establishing credit limits and continuously monitoring the credit worthiness of the customer.
The group also provides for expected credit losses, based on the payment profiles of sales over a period of 12 months before
the reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates are
adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers
to settle the receivables where it believes that there is high probability of default. The group has considered possible effect
from the pandemic relating to Covid-19 on Credit risks including forward looking information to develop expected credit losses.
As the management deals with highly credit worthy customers and in past three years there were no instances of defaults w.r.t
the receivables from customers, accordingly provision matrix has not been disclosed.”

Following are the expected credit loss for trade receivables under simplified approach:
March 31, 2023 March 31, 2022
Gross carrying amount of trade receivables 1,79,840 2,42,900
Less: Expected credit losses (Loss allowance provision) (587) (512)
Net carrying amount of trade receivables 1,79,253 2,42,388

210
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Expected credit loss for trade receivables under simplified approach as at March 31, 2023
Outstanding

Ageing Not due more than Total

for less for more
90 days & less
than 90 days than 180 days
than 180 days
Gross carrying amount of trade receivables 1,51,628 27,194 341 677 1,79,840
Less: Provision for doubtful debts (specific) (Net - - 37 533 570
of recoveries)
Less: Expected credit losses (loss allowance - - - 17 17
provision)
Net carrying amount of trade receivables 1,51,628 27,194 304 127 1,79,253

Expected credit loss for trade receivables under simplified approach as at March 31, 2022
Outstanding

Ageing Not due more than Total

for less for more
90 days & less
than 90 days than 180 days
than 180 days
Gross carrying amount of trade receivables 2,15,036 23,347 3,509 1,008 2,42,900
Less: Provision for doubtful debts (specific) - - - 495 495
Less: Expected credit losses (loss allowance - - - 17 17
provision)
Net carrying amount of trade receivables 2,15,036 23,347 3,509 496 2,42,388

Reconciliation of loss allowance provision in respect of trade receivables:

Total
Loss allowance on April 01, 2021 555
Change in loss allowance
Add: Current year loss allowance provided 190
Add: Foreign operations translation adjustment 20
Less: Recoveries / Write back (253)
Less: Bad debts written off -
Loss allowance on March 31, 2022 512
Loss allowance on April 01, 2022 512
Change in loss allowance
Add: Current year loss allowance provided 104
Add: Foreign operations translation adjustment 42
Less: Recoveries / Write back (71)
Less: Bad debts written off -
Loss allowance on March 31, 2023 587

(B) Market Risk:

The group has substantial exposure to foreign currency risk due to the significant exports. Sales to overseas customers and
purchases from overseas suppliers are exposed to risk associated with fluctuation in the currencies of those countries vis-a-
vis the functional currency i.e. Indian rupee. The group manages currency fluctuations by having a better geographic balance
in revenue mix and ensures a foreign currency match between liabilities and earnings. The group notes that, historically rupee
has depreciated aganist major foreign currencies, and hence no additional measures were taken to hedge the foreign currency
risk exposure. The group is also very cautious towards hedging as it has costs as well as its own risks. The group continually
reassesses the cost structure impact of the currency volatility and engages with customers/suppliers addressing such risks.

33rd Annual Report 2022-23 | 211

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(i) Foreign currency risk exposure:

March 31, 2023 March 31, 2022
Currency Amount in Amount in
Amount in ` Amount in `
foreign currency foreign currency
Receivables ACU 2 174 -* 26
EUR 113 10,126 119 10,075
GBP 139 14,181 172 17,123
USD 1,656 1,36,151 2,540 1,92,557
AED 4 89 - -
Payable to suppliers and services USD (426) (35,024) (405) (30,703)
EUR (19) (1,703) (71) (5,969)
GBP - - - -
CHF (1) (90) (1) (81)
JPY - - (430) (268)
Net foreign currency exposure asset/(liability) 1,23,904 1,82,760

Impact on profit after tax

(Income) / Expense
March 31, 2023 March 31, 2022
USD Sensitivity:
INR/USD -Increase by 6% (March 31, 2022: 3%) (3,947) (3,159)
INR/USD -Decrease by 6% (March 31, 2022: 3%) 3,947 3,159
ACU Sensitivity:
INR/AUC -Increase by 3% (March 31, 2022: 3%) (3) (1)
INR/AUC -Decrease by 3% (March 31, 2022: 3%) 3 1
CHF Sensitivity:
INR/CHF -Increase by 5% (March 31, 2022: 5%) 3 3
INR/CHF -Decrease by 5% (March 31, 2022: 5%) (3) (3)
EUR Sensitivity:
INR/EUR -Increase by 4% (March 31, 2022: 2%) (219) (53)
INR/EUR -Decrease by 4% (March 31, 2022: 2%) 219 53
GBP Sensitivity:
INR/GBP -Increase by 1% (March 31, 2022: 1%) (92) (111)
INR/GBP -Decrease by 1% (March 31, 2022: 1%) 92 111
JPY Sensitivity:
INR/JPY -Increase by 6% (March 31, 2022: 6%) - 10
INR/JPY -Decrease by 6% (March 31, 2022: 6%) - (10)
AED Sensitivity:
INR/AED -Increase by 6% (March 31, 2022: NA) (3) -
INR/AED -Decrease by 6% (March 31, 2022: NA) 3 -

(ii) Cash Flow and fair value interest rate risk:

Interest rate exposure: The Company does not have long term borrowings. Below is the sensitivity analysis, which presents
impact on the cash flow due to the increase/decrease in the interest rates with all other variables held constant.
Impact on profit after tax
(Income) / Expense
March 31, 2023 March 31, 2022
Short term borrowings from Banks:
Interest rate-Increase by 100 basis points - -*
Interest rate-Decrease by 100 basis points - -*
* Amount is below the rounding off norm adopted by the Group

212
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(C) Price Risk:

There are no group’s investments which are subjected to price risk.

(D) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations
when due. Group’s treasury maintains flexibility in funding by maintaining availability under deposits in banks, adequate
limits in working capital loan accounts etc.

(i) Contractual maturities of financial liabilities:

March 31, 2023 March 31, 2022
Less than 6 6-12 More than Less than 6-12 More than
Total Total
months months 12 months 6 months months 12 months
Lease liabilities 25 24 277 326 40 42 287 369
Trade payables 76,251 - - 76,251 79,570 - - 79,570
Other financial liabilities 4,339 - - 4,339 6,289 - - 6,289
Total 80,615 24 277 80,916 85,899 42 287 86,228

Note 35: Capital Management

a)  he group’s financial strategy aims to provide adequate capital for its growth plans for sustained stakeholder value. The
T
group’s objective is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders. And depending on the financial market scenario, nature of the funding
requirements and cost of such funding, the group decides the optimum capital structure. The group aims at maintaining a
strong capital base so as to maintain adequate supply of funds towards future growth plans as a going concern.

Net debt to equity ratio

March 31, 2023 March 31, 2022
Net debt - -
Total Equity 12,76,709 11,72,818
Net debt to equity ratio NA NA

(b) Dividend:
Dividend paid on equity shares:
March 31, 2023 March 31, 2022
Dividends paid:
Final dividend 79,641 53,094

Proposed dividend not recognised at the end of the reporting period:

March 31, 2023 March 31, 2022

On Equity Shares of `2 each

Dividend per equity share 30 30
Dividend amount 79,641 79,641
Note: The dividend for the year ended March 31, 2023 proposed and recommended, is subject to the approval of shareholders at the ensuing
annual general meeting.

33rd Annual Report 2022-23 | 213

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 36: Interest in Other Entities

The Company’s subsidiaries as at March 31, 2023 are set out below. Unless otherwise stated, they have share capital consisting
solely equity that are held directly by the Company.

Place of Business/ Ownership interest held by Ownership interest held by

Name of the entity Country of the Company Non-Controlling interests
incorporation March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Principal activity
Divis Laboratories (USA) Inc USA 100% 100% 0% 0% Manufacturing
and Trading of API
Divi's Laboratories Europe Switzerland 100% 100% 0% 0% Manufacturing
AG and Trading of API

Note 37: Segment Information

Description of segments and principal activities
The Managing Director has been identified as being the Chief Operating Decision Maker (CODM). Operating segments are defined
as components of an enterprise for which discrete financial information is available. This is evaluated regularly by the CODM, in
deciding how to allocate resources and assessing the group’s performance. The group is engaged in the manufacture of Active
Pharmaceutical Ingredients (API’s) and Intermediates and operates in a single operating segment.

The amount of revenue from operations from each country (based on where products and services are delivered) exceeding 10%
of total revenue of the group and non-current assets broken down by location of the assets respectively are as follows:

India USA Other countries

March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Revenue 97,558 103,784 1,84,662 2,00,469 4,94,531 5,91,730
Non-current assets 4,98,081 4,87,553 271 279 113 140

The revenue from transactions with one external customer exceeds 10% of the total revenue of the group for each of the two
years ended March 31, 2023 and March 31, 2022

Note 38: Foreign Subsidiaries Considered for Consolidation

Place of Business/
Name of the entity Country of March 31, 2023 March 31, 2022
incorporation
Divis Laboratories (USA) Inc USA 100% 100%
Divi's Laboratories Europe AG Switzerland 100% 100%

214
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 39: Related Party Transactions

(a) Key Management personnel (KMP) : Dr. Murali. K. Divi (Managing Director)
: Mr. N.V. Ramana (Executive Director)
: Mr. Madhusudana Rao Divi (Whole-time Director -Projects)
: Dr. Kiran S. Divi (Whole-time Director and Chief Executive Officer)
: Ms. Nilima Prasad Divi (Whole-time Director-Commercial)

(b) Non-Executive Directors : Mr. K. V. K. Seshavataram (Independent Director)

: Mr. R. Ranga Rao (Independent Director)
: Dr. G. Suresh Kumar (Independent Director)
: Dr. Ramesh B. V. Nimmagadda (Independent Director)
: Dr. S. Ganapaty (Independent Director)
: Prof. Sunaina Singh (Independent Director)
: Mr. K. V. Chowdary (Independent Director)
(c) Relative of Key Management personnel : Mr. Babu Rajendra Prasad Divi
: Mr. Divi Radha Krishna Rao
: Mr. Sri Ramachandra Rao Divi
: Mrs. Jhansilakshmi Pendyala
: Mrs. Divi Swarna Latha
: Mrs. Divi Raja Kumari
: Mr. Divi Satyasayee Babu
: Mrs. Shanti Chandra Attaluri
: Mrs. N. Nirmala Kumari
: Mrs. N. Chandrika Lakshmi
: Mr. N. Venkata Aniruddh
: Mrs. N. Monisha
: Mr. N. Prashanth
: Mrs. L. Vijaya Lakshmi

(d) Other related party : Divi’s Laboratories Employees’ Gratuity Trust.

: Divi’s Foundation for Gifted Children Trust.
(e) List of related parties over which control / significant influence exists with whom the group has transactions:
Name Relationship
Divi’s Properties Private Limited Company in which key management personnel have significant influence
Divi’s Biotech Private Limited Company in which key management personnel have significant influence
Divi's Laboratories Employees' Gratuity Trust. Post employment benefit plan of Divi's Laboratories Ltd*
*Refer Note No. 17(i) for information on transactions with post employment benefit plan mentioned above.

33rd Annual Report 2022-23 | 215

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

March 31, 2023 March 31, 2022

Outstanding Outstanding
Amount Amount
balance as at balance as at
(transactions) (transactions)
March 31, 2023 March 31, 2022
(i)  anagerial remuneration and short term employee benefits to
M 15,737 15,216 24,340 23,870
key management personnel -refer 39(g) (i)
(ii) R
 emuneration including sitting fees to non-executive directors- 211 - 217 -
refer 39(g) (ii)
(iii) Dividend paid to key management personnel -refer 39(g) (iii) 34,840 - 23,228 -
(iv) D
 ividend paid to relatives of key management personnel -refer 4,479 - 2,988 -
39(g) (iv)
(v) S
 alary and allowances to relatives of key management 17 2 15 2
personnel - Mr. Anirudh Nimmagadda
(vi) D
 ividend paid to company in which key management personnel 2,400 - 1,600 -
have significant influence - M/s Divi's Biotech Private Limited
(vii) Lease Rent to a company in which key management personnel 915 - 870 -
have significant influence - M/s Divi's Properties Private Limited
(viii) Lease Rent to a company in which key management personnel 11 -
have significant influence - M/s Divi's Biotech Private Limited
(ix) R
 ent deposit to a company in which key management - 342 - 342
personnel have significant influence - M/s Divi's Properties
Private Limited

(g) Transactions with Related Parties:

March 31, 2023 March 31, 2022
Outstanding Outstanding
Amount Amount
balance as at balance as at
(transactions) (transactions)
March 31, 2023 March 31, 2022
(i) Managerial Remuneration and short term employee
benefits to Key Management Personnel
1. Dr. Murali K. Divi 7,049 7,016 11,041 11,013
2. Mr. N.V. Ramana 3,631 3,514 5,627 5,510
3. Mr. Madhusudana Rao Divi 115 6 115 -
4. Dr. Kiran S Divi 2,479 2,340 3,807 3,676
5. Ms. Nilima Prasad Divi 2,463 2,340 3,750 3,671
15,737 15,216 24,340 23,870
(ii) Remuneration including sitting fees to non-executive
directors
1. Mr. K.V.K. Seshavataram 30 - 29 -
2. Dr.G Suresh Kumar 32 - 32 -
3. Mr. R Ranga Rao 34 - 34 -
4. Dr.S. Ganapaty 28 - 29 -
5. Dr. Ramsh B V Nimmagadda 32 - 33 -
6. Prof. Sunaina Singh 25 - 27 -
7. Mr. K.V. Chowdary 30 - 33 -
211 - 217 -
(iii) Dividend paid to Key Management Personnel
1. Dr. Murali K. Divi 2,270 - 1,513 -
2. Dr. Kiran S Divi 16,200 - 10,800 -
3. Ms. Nilima Prasad Divi 16,200 - 10,800 -
4. Mr. Madhusudana Rao Divi 89 - 61 -
5. Mr. N.V. Ramana 81 - 54 -
34,840 - 23,228 -

216
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

March 31, 2023 March 31, 2022

Outstanding Outstanding
Amount Amount
balance as at balance as at
(transactions) (transactions)
March 31, 2023 March 31, 2022
(iv) Dividend paid to Relatives of Key Management
Personnel
1. Mr. Babu Rajendra Prasad Divi 8 - 5 -
2. Mr. Divi Radha Krishna Rao 1 - 1 -
3. Mrs. Jhansilakshmi Pendyala 2 - 2 -
4. Mrs. Divi Swarna Latha 4,200 - 2,800 -
5. Mrs. Divi Raja Kumari 5 - 3 -
6. Mrs. Shanti Chandra Attaluri 83 - 55 -
7. Mrs. N. Nirmala Kumari 12 - 8 -
8. Mrs. N. Chandrika Lakshmi 16 - 11 -
9. Mr. N. Venkata Aniruddh 50 - 34 -
10. Mrs. N. Monisha 92 - 63 -
11. Mr. N. Prashanth 10 - 6 -
4,479 - 2,988 -

Transactions relating to dividends were on the same terms and conditions that applied to other equity shareholders.

Note 40: Contingent Liabilities:

March 31, 2023 March 31, 2022
Claims against the Group not acknowledged as debts in respect of:
Disputed demands for excise duty, customs duty, sales tax, service tax and Goods and service tax for 8,903 8,903
various periods

It is not practicable for the Group to estimate the timings of cash flows, if any, in respect of the above pending resolution of the
respective proceedings.

Note 41: Additional Regulatory Information Required under Schedule III of Companies Act 2013:
(i) Details of Benami Property held
No proceedings have been initiated on or are pending against the group for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Relationship with struck off companies

The Group has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iii) Compliance with number of layers of companies

The Group has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements

The Group has not entered into any scheme of arrangements which has an accounting impact on current and previous
financial year.

33rd Annual Report 2022-23 | 217

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(v) Utilisation of borrowed funds and share premium

A. The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a.  irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
d
of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B. The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the group shall:

a.  irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
d
of the funding party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vi) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961.

(vii) Loans or advances to specified persons

The Group has not granted any loans or advances in the nature of loans to promoters, directors, KMP’s and the related
parties as defined under Companies Act, 2013.

(viii) Details of crypto currency or virtual currency

The Group has not traded or invested in crypto currency or virtual currency during the current or previous year.

Note 42: Commitments

March 31, 2023 March 31, 2022
Property, Plant and Equipment:
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for 6,828 14,035
((Net of advances of `1,866 (March 31,2022: `4,786)
Others:
(ii) O
 n account of bonds or legal agreements executed with Central Excise/ Customs authorities/ SEZ 57,967 43,967
development commissioners

Note 43: Dues to Micro and Small Enterprises

The Company has certain dues to Micro and small enterprises registered (suppliers) under Micro, Small and Medium Enterprises
Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act, to the extent the information is available
with the company, are as follows.

March 31, 2023 March 31, 2022

a (i) Principal amounts due to suppliers remaining unpaid as at the year end 3,749 2,478
(ii) Interest due to suppliers remaining unpaid as at the year end - -
b. Interest on payments beyond the appointed day paid to the suppliers during the year - -
c. Interest due and payable for the delay in making payment to suppliers during the year - -
d. Amount of interest accrued and remaining unpaid to suppliers at the end of the year - -
e. Amount of further interest remaining due and payable to suppliers in succeeding years - -

218
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

Note 44: Other Disclosures:

Additional Information required by Schedule III of the Act

Net Assets (Total Assets Share in Other Share in Total

March 31, 2023 Share in Profit or (Loss)
minus Total Liabilities) Comprehensive Income Comprehensive Income

As % of As % of
As % of
As % of Consolidated Consolidated
Name of the entity Consolidated
Consolidated Amount Amount Other Amount Total Amount
in the group Profit or
net assets Comprehensive Comprehensive
(Loss)
Income Income

Parent:
Divi's Laboratories Limited 99.19% 12,70,542 98.53% 1,80,815 24.87% 233 98.16% 1,81,048
Sub-total (A) 12,70,542 1,80,815 233 1,81,048
Subsidiaries (Foreign):
Divis Laboratories (USA) Inc 0.63% 8,091 1.07% 1,970 55.50% 520 1.35% 2,490
Divi's Laboratories Europe AG 0.18% 2,280 0.40% 729 19.64% 184 0.49% 913
Sub-total of subsidiaries (B) 10,371 2,699 704 3,403
Sub-total (A+B) 100% 12,80,913 100% 1,83,514 100% 937 100% 1,84,451
Adjustments arising out of (4,204) (1176) 257 (919)
Consolidation (C)
Total (A+B+C) 12,76,709 1,82,338 1,194 1,83,532

Note 45: Earnings Per Share (EPS)

March 31, 2023 March 31, 2022

(a) Basic EPS

Basic earnings per share attributable to the equity holders of the company 68.69 111.52
(b) Diluted EPS
Diluted earnings per share attributable to the equity holders of the company 68.69 111.52

(c) Reconciliation of earnings used in calculating earnings per share

March 31, 2023 March 31, 2022

Basic earnings per share

Profit attributable to the equity holders of the company used in calculating basic earnings per share 1,82,338 2,96,045
Adjustments for calculation of diluted earnings per share - -
Diluted earnings per share
Profit attributable to the equity holders of the company used in calculating diluted earnings per share 1,82,338 2,96,045

33rd Annual Report 2022-23 | 219

Notes to the Consolidated Financial Statements
(All amounts in Indian Rupees Lakhs, except equity shares and per share data unless otherwise stated)

(d) Weighted average number of shares used as the denominator

March 31, 2023 March 31, 2022
Weighted average number of equity shares used as the denominator in calculating basic earnings per 26,54,68,580 26,54,68,580
share
Adjustments for calculation of diluted earnings per share - -
Weighted average number of equity shares used as the denominator in calculating diluted earnings per 26,54,68,580 26,54,68,580
share

The accompanying notes are an integral part of the Consolidated financial statements

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited

N.K. Varadarajan Dr. Murali K Divi N.V. Ramana

Partner Managing Director Executive Director
Membership number: 90196 DIN: 00005040 DIN: 00005031

Dr. Kiran S Divi Nilima Prasad Divi

Whole-time Director and Whole-time Director
Chief Executive Officer (Commercial)
DIN: 00006503 DIN: 06388001

Place: Hyderabad L. Kishorebabu M. Satish Choudhury

Date:20-05-2023 Chief Financial Officer Company Secretary
Membership No: F12493

220
 Notice

Notice of the 33rd Annual General Meeting

NOTICE is hereby given that the Thirty-Third Annual General Item No. 4 – Appointment of Ms. Nilima Prasad Divi, who
Meeting (AGM) of the Members of Divi’s Laboratories Limited retires by rotation, as Director of the Company
(‘the Company’) will be held on Monday, August 28, 2023 at To appoint a director in place of Ms. Nilima Prasad Divi (DIN:
10.00 a.m. IST through video conferencing (“VC”) / other audio- 06388001), who retires by rotation at this Annual General
visual means (“OAVM”) to transact the following business: Meeting and being eligible, offers herself for re-appointment.

Ordinary Business:
Item No. 1 – Adoption of financial statements
To consider and adopt the audited financial statements of the By Order of the Board of Directors
Company, both standalone and consolidated, for the financial
year ended March 31, 2023, and the reports of the Board of
Directors’ and Auditors’ thereon. M. Satish Choudhury
Item No. 2 – Declaration of dividend for the financial year Place: Hyderabad Company Secretary
2022-23 Date: May 20, 2023 Membership No. F12493

To declare dividend of C30/- per equity share of face value C2/-

Registered Office:
each (i.e. @ 1500%) for the financial year ended March 31, 2023.
1-72/23(P)/DIVIS/303, Divi Towers,
Item No. 3 – Appointment of Dr. Kiran S. Divi, who retires Cyber Hills, Gachibowli, Hyderabad – 500 032
by rotation, as Director of the Company CIN: L24110TG1990PLC011854
To appoint a director in place of Dr. Kiran S. Divi (DIN: 00006503), Website: www.divislabs.com
who retires by rotation at this Annual General Meeting and e-mail: [email protected]
being eligible, offers himself for re-appointment. Tel: +91 40 66966300
Fax: +91 40 66966460

NOTES: SEBI Listing Regulations, the 33rd AGM of the Company is

being conducted through VC / OAVM facility, without the
1. In view of the COVID-19 pandemic, the Ministry of
physical presence of Members at a common venue.
Corporate Affairs, Government of India ("MCA") issued
General Circular Nos. 14/2020, 17/2020, 20/2020, 02/2021, The deemed venue for the 33rd AGM shall be the Registered
19/2021, 21/2021, 2/2022 and 10/2022 dated April 8, 2020, Office of the Company. As the AGM shall be conducted
April 13, 2020, May 5, 2020, January 13, 2021, December 8, through VC / OAVM, the facility for appointment of Proxy
2021, December 14, 2021, May 5, 2022 and December 28, by the Members is not available for this AGM and hence
2022, respectively, ("MCA Circulars") allowing, inter-alia, the Proxy Form and Attendance Slip including Route Map
conducting of AGMs through Video Conferencing / Other are not annexed to this Notice.
Audio-Visual Means facility on or before September 30,
2. Members attending the AGM through VC / OAVM shall be
2023, in accordance with the requirements provided
reckoned for the purpose of quorum under Section 103 of
in paragraphs 3 and 4 of the MCA General Circular No.
the Act.
20/2020. The Securities and Exchange Board of India
(“SEBI”) also vide its Circular No. SEBI/HO/CFD/CMD1/ 3. 
In terms of the provisions of Section 152 of the Act,
CIR/P/2020/79 dated May 12, 2020; Circular No. SEBI/ Dr. Kiran S. Divi and Ms. Nilima Prasad Divi, Directors
HO/CFD/ CMD2/CIR/P/2022/62 dated May 13, 2022; and of the Company, retire by rotation at the AGM. The
Circular No. SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated Compensation, Nomination and Remuneration
January 5, 2023 (“SEBI Circulars”) has provided certain Committee and the Board of Directors of the Company
relaxations from compliance with certain provisions of the commend their respective re-appointments. Details of
SEBI (Listing Obligations and Disclosure Requirements) Directors seeking re-appointment at the AGM, as required
Regulations, 2015 (“SEBI Listing Regulations”). In under Regulation 36(3) of SEBI Listing Regulations and the
compliance with these Circulars, provisions of the Act and Secretarial Standard -2 on General Meetings issued by the

33rd Annual Report 2022-23 | 221

 Institute of Company Secretaries of India are provided in held in physical form, with the Company/Registrars and
the “Annexure” to the Notice of AGM. Transfer Agents (‘RTA’) by sending documents through
e-mail on or before August 11, 2023 to enable the
4.  he Register of directors and key managerial personnel
T
Company to determine the appropriate TDS/withholding
and their shareholding, maintained under Section 170 of
tax rate applicable, verify the documents and provide
the Act, and the Register of Contracts or Arrangements
exemption. For the detailed process, please click here:
in which the directors are interested, maintained under
https://www.divislabs.com/investor-relations/statutory-
Section 189 of the Act, will be available electronically
communication/#2023-24 and refer ‘Information
for inspection by the members during the AGM. All
regarding deduction of Income tax at source on
documents referred to in the Notice will also be available
dividend for FY 2022-23’. The members may also refer
for electronic inspection without any fee by the members
to the e-mail being sent to members in this regard.
from the date of circulation of this Notice up to the date
of AGM, i.e. August 28, 2023. Members seeking to inspect 6.  nclaimed dividend for the year(s) 2016-17, 2017-18, 2018-
U
such documents can send an email to [email protected]. 19, 2019-20 (interim dividend), 2020-21 and 2021-22 are
held in separate bank accounts and shareholders who
5. The Board of Directors at its meeting held on May 20,
have not received the dividend/ encashed the warrants
2023, has recommended a dividend of C30/- per equity
are advised to write to the Company or to Registrar and
share of C2/- each (i.e. 1500%) for the financial year 2022-
Transfer Agent (RTA) of the Company, KFin Technologies
23, subject to the approval of the shareholders at the 33rd
Limited (“Kfin”) with complete details.
AGM. The record date for determining the names of
the members eligible for dividend on equity shares, The Company has transferred the unpaid or unclaimed
if approved, is August 11, 2023. dividends declared up to financial years 2015-16, from
time to time, to Investor Education and Protection Fund
If the dividend, as recommended by the Board of Directors,
Authority (“IEPF”). Details of dividends so far transferred
is approved at the AGM, payment of such dividend subject
to the IEPF Authority are available on the website of IEPF
to deduction of tax at source will be made on and from
Authority and the same can be accessed through the link:
Monday, September 04, 2023 as under:
www.iepf.gov.in.
a. To all Beneficial Owners in respect of shares held
The details of unpaid and unclaimed dividends lying with
in dematerialised form as per the data as may be
the Company as on March 31, 2023 are uploaded on the
made available by the National Securities Depository
website of the Company and can be accessed through
Limited (“NSDL”) and the Central Depository Services
the link https://www.divislabs.com/investor-relations/
(India) Limited (“CDSL”), collectively referred to as
reports-and-filings/unclaimed-dividend/.
“Depositories”, as on record date.
 ursuant to the applicable provisions of the Act read
P
b. To all Members in respect of shares held in physical
with Investor Education and Protection Fund Authority
form, after giving effect to valid transmission or
(Accounting, Audit, Transfer and Refund) Rules, 2016 (as
transposition requests lodged with the Company as
amended from time to time), equity shares in respect
on record date.
of which dividend has not been paid or claimed for
 ayment of dividend shall be made through electronic
P seven consecutive years or more will be transferred to
mode to the Members who have updated their bank the demat account of IEPF Authority. The Company has
account details. Dividend warrants / demand drafts will already initiated necessary action for transfer of shares
be dispatched to the registered address of the Members in respect of which dividend has not been paid or claimed
who have not updated their bank account details. We by members for seven consecutive years or more.
urge members to update their bank details for receiving Members are advised to visit the website of the Company
dividends by following the process stated in note no. at https://www.divislabs.com/investor-relations/reports-
9 below. and-filings/unclaimed-dividend/ to ascertain the details
of shares liable for transfer/transferred in the name of
 ursuant to the Finance Act, 2020, dividend income
P
IEPF Authority.
is taxable in the hands of shareholders effective April
1, 2020 and the Company is required to deduct tax at  etails of shares so far transferred to the IEPF
D
source from dividend paid to the Members at the rates Authority are available on the website of the Company
prescribed in the Income Tax Act, 1961 ('the IT Act'). In www.divislabs.com and the details have also been
general, to enable compliance with TDS requirements, uploaded on the website of the IEPF Authority and can be
Members are requested to complete and/ or update their accessed through the link: www.iepf.gov.in.
Residential status, PAN, Category as per the IT Act with
their Depository Participants (‘DPs’) or in case shares are

222
 Notice

 embers whose unclaimed dividend/ shares are

M Benami Transactions (Prohibitions) Act, 1988, and / or the
transferred to the IEPF Authority can claim their unclaimed Prevention of Money Laundering Act, 2002.
dividend and shares from the IEPF Authority by filing Form
8. A ll documents/requests and other communications
No IEPF-5 and following the Refund Procedure as detailed
relating to shares should be addressed to the Company’s
on the website of IEPF Authority i.e. www.iepf.gov.in.
RTA at the address mentioned below:
The concerned Members/investors are advised to visit
Kfin Technologies Limited
the weblink of the IEPF Authority http://iepf.gov.in/IEPF/
Unit: Divi’s Laboratories Limited
refund.html, or contact Company’s RTA for detailed
Selenium Tower B, Plot No. 31 – 32, Financial District,
procedure to lodge the claim with IEPF Authority.
Nanakramguda, Serilingampally, Hyderabad - 500032
7.  EBI has mandated the submission of PAN, KYC details
S Phone No: +91 40-67161526, Fax: +91 40-23001153
and nomination by holders of physical securities by Toll Free No. 1800-3454-001
October 1, 2023, and linking PAN with Aadhaar by E-mail: [email protected]
June 30, 2023 vide its circular dated March 16, 2023.
9. 
We encourage members to support our commitment
Shareholders are requested to submit their PAN,
to environmental protection by choosing to receive the
KYC and nomination details to the Company’s RTA, at
Company’s communication through email. Members
[email protected]. Intimation letters for furnishing
holding shares in demat mode, who have not registered
the required details were sent by the Company. The forms
their email addresses are requested to register their
for updating the same are available at https://www.
email addresses with their respective DP, and members
divislabs.com/investor-relations/shareholders-contact/.
holding shares in physical mode are requested to update
Members holding shares in electronic form are requested their email addresses with the Company’s RTA, to receive
to submit their PAN, KYC details and nominations to their copies of the Annual Report 2022-23 in electronic mode.
Depository Participant(s) (“DP”).
As per the provisions of Section 72 of the Act, the facility
In case a holder of physical securities fails to furnish PAN for making nomination is available for the Members in
and KYC details before October 1, 2023 or link their PAN respect of the shares held by them by submitting Form
with Aadhaar before June 30, 2023, in accordance with SH-13 to RTA (if holding physical shares) / to their DP (if
the SEBI circular dated March 16, 2023, RTA is obligated holding demat shares).
to freeze such folios. The securities in the frozen folios
Members may follow the process detailed below for
shall be eligible to receive payments (including dividend)
registration of email ID to obtain the annual report,
and lodge grievances only after furnishing the complete
updating bank account details for the receipt of dividend
documents. If the securities continue to remain frozen as
and other information as per the aforementioned
on December 31, 2025, the RTA / the Company shall refer
SEBI Circular:
such securities to the administering authority under the

Type of holder Process to be followed

Physical ISR Form(s) and the supporting documents can be provided to RTA by any one of the following modes.
a) Through hard copies which are self-attested, which can be shared on the address mentioned at note no 8 above; or
b) Through electronic mode with e-sign by following the link: https://ris.kfintech.com/clientservices/isc/default.aspx#
Detailed FAQ can be found on the link: https://ris.kfintech.com/faq.html
Form for availing investor services to register PAN, email address, bank details and other KYC details Form ISR-1
or changes / update thereof for securities held in physical mode
Update of signature of securities holder Form ISR-2
For nomination as provided in the Rules 19 (1) of Companies (Share capital and debenture) Rules, Form SH-13
2014
Declaration to opt out Form ISR-3
Cancellation of nomination by the holder(s) (along with ISR-3) / Change of Nominee Form SH-14
Form for requesting issue of Duplicate Certificate and other service requests for shares / debentures Form ISR-4
/ bonds, etc., held in physical form
The forms for updating the above details are available at https://www.divislabs.com/investor-relations/shareholders-
contact/#downloads
Demat Please contact your Depository Participant (DP) and register your email address, bank account details in your demat
account and nomination, as per the process advised by your DP, where the demat account is being held.

33rd Annual Report 2022-23 | 223

10. R
 egulation 40 of SEBI Listing Regulations, as amended, 13. Procedure for joining the AGM through VC/OAVM:
mandates that transfer, transmission and transposition of  he Company will provide VC / OAVM facility to its
T
securities of listed companies held in physical form shall be Members for participating at the AGM through platform
effected only in demat mode. Further, SEBI, vide its Circular provided by Company’s RTA, KFin Technologies Limited.
dated January 25, 2022, has clarified that listed companies,
with immediate effect, shall issue the securities only in a. Members will be able to attend the AGM through
demat mode while processing investor service requests VC / OAVM or view the live webcast at https://
pertaining to issue of duplicate securities certificate, claim emeetings.kfintech.com by using their e-voting
from unclaimed suspense account, renewal/exchange of login credentials.
securities certificate, endorsement, sub-division/splitting  Members are requested to follow the procedure
of securities certificate, consolidation of securities given below:
certificates/ folios, transmission, transposition etc. In
view of this, Members holding shares in physical form are i. Launch internet browser by typing the URL:
requested to consider converting their holdings to demat https://emeetings.kfintech.com
mode. Any shareholder who is desirous of dematerialising   ii. Enter the login credentials (i.e., User ID and
their securities may write to the Company at cs@divislabs. password for e-voting).
com or to the RTA at [email protected] for any
clarifications, if needed.   iii. After logging in, click on “Video
Conference” option
11. N
 on-Resident Indian Members are requested to inform
the RTA (if holding shares in physical mode) / respective   iv.  hen click on camera icon appearing
T
DP (if holding shares in demat mode), immediately of: against AGM event of Divi’s Laboratories
Limited, to attend the Meeting.
a) Change in their residential status on return to India
for permanent settlement; and b.  embers who do not have User ID and Password
M
for e-voting or have forgotten the User ID and
b) Particulars of their bank account maintained in India Password may retrieve the same by following
with account type, account number and name and the procedure given in the E-voting instructions.
address of the bank with pin code number, if not
furnished earlier. c. 
Members will be allowed to attend the
AGM through VC / OAVM on first come, first
Dispatch of Annual Report through Electronic Mode:
12.  served basis.
In compliance with the MCA Circulars and SEBI Circulars, d. 
Facility to join the meeting shall be opened
Notice of the AGM along with the Annual Report 2022- thirty minutes before the scheduled time of the
23 is being sent only through electronic mode to those AGM and shall be kept open throughout the
Members whose email addresses are registered with proceedings of the AGM.
the Company / the Depositories / RTA. Members may
note that the Notice and Annual Report 2022-23 will e. 
Members who need assistance before
also be available on the Company’s website www. or during the AGM, can contact Kfin on
divislabs.com, websites of the Stock Exchanges, i.e., BSE [email protected] or call on toll free
Limited and National Stock Exchange of India Limited at numbers 1800-425-8998 / 1800-345-4001
www.bseindia.com and www.nseindia.com respectively. . Kindly quote your name, DP ID-Client ID /
The Notice is also available on the website of Company’s Folio no. and E-voting Event Number in all
RTA at https://evoting.kfintech.com. your communications.


For receiving all communication (including Annual f. In case of joint holders attending the Meeting,
Report) from the Company electronically, members only such joint holder who is higher in the order
are requested to update their email addresses with of names will be entitled to vote at the AGM.
RTA (if holding shares in physical mode) / respective DP g. Members of the Company under the category of
(if holding shares in demat mode) as stated above. In Institutional Investors are encouraged to attend
case of any queries/ difficulties in registering the e-mail and vote at the AGM.
address, Members may write to [email protected] or
[email protected]. h. Institutional / Corporate shareholders (i.e. other
than individuals, HUF, NRI, etc.) are required
to send a scanned copy (PDF / JPG Format) of
their respective Board Resolution / Power of
Attorney / Authorisation Letter, etc., authorising

224
 Notice

their representative to attend the AGM through  The Company has engaged the services of Kfin
VC / OAVM on their behalf. The said Resolution Technologies Limited as the agency to provide
/Authorisation shall be sent to the Scrutiniser e-voting facility.
by e-mail on its registered e-mail address to
 
The manner of voting, including voting remotely
[email protected] with a copy
by (i) individual shareholders holding shares of the
marked to [email protected]. The scanned
Company in demat mode, (ii) shareholders other
image of the above-mentioned documents
than individuals holding shares of the Company in
should be in the naming format “Corporate
demat mode, (iii) shareholders holding shares of the
Name EVEN”.
Company in physical mode, and (iv) Members who
14. M
 embers who would like to express their views or ask have not registered their e-mail address is explained
questions during the AGM may register themselves by in the instructions given herein below.
logging on to https://emeetings.kfintech.com and by
The remote e-voting facility will be available during
clicking on the ‘Speaker Registration’ option available on
the following voting period:
the screen after log in. The Speaker Registration will be
open during August 24, 2023 to August 25, 2023. Members Commencement of remote 9:00 a.m. (IST) on August
shall be provided a ‘queue number’ before the meeting. e-voting: 24, 2023

Only those members who are registered will be allowed End of remote e-voting: 5:00 p.m. (IST) on August
27, 2023
to express their views or ask questions. The Company
reserves the right to restrict the number of questions and  
The remote e-voting will not be allowed beyond the
number of speakers, depending upon availability of time aforesaid date and time and the remote e-voting
as appropriate for smooth conduct of the AGM. module shall be forthwith disabled by KFin upon
15. 
The Members who wish to post their questions expiry of the aforesaid period.
prior to the meeting can do the same by visiting  Voting rights of a Member /Beneficial Owner (in case
https://emeetings.kfintech.com. Please login through of electronic shareholding) shall be in proportion to
the user id and password provided in the mail received his/her share in the paid-up equity share capital of
from Kfin. On successful login, select ‘Post Your Question’ the Company as on the cut-off date, i.e., August
option which will be opened from August 24, 2023 to 22, 2023 (“Cut-off Date”).
August 25, 2023.
 
The Board of Directors of the Company has
16. All the shareholders attending the AGM will have option to appointed Mr. V Bhaskara Rao, Practicing Company
post their comments / queries through a dedicated Chat Secretary, (Membership No. FCS5939) as Scrutiniser
box that will be available below the meeting screen. to scrutinise the remote e-voting and Insta Poll
17. Procedure for ‘remote e-voting’ and e-voting at the process in a fair and transparent manner and he has
AGM (‘Insta Poll’): communicated his willingness to be appointed and
will be available for the said purpose.
I. E-voting Facility:
 ursuant to the provisions of Section 108 and other
P II. Information and instructions relating to e-voting
applicable provisions, if any, of the Act read with the are as under:
Companies (Management and Administration) Rules, a. 
The members who have cast their vote(s) by
2014, as amended, and Regulation 44 of SEBI Listing remote e-voting may also attend the Meeting
Regulations read with circular of SEBI on e-Voting but shall not be entitled to cast their vote(s)
facility provided by listed entities, dated December again at the Meeting. Once the vote on a
09, 2020, the Company is providing to its members resolution is cast by a member, whether partially
facility to exercise their right to vote on resolutions or otherwise, the member shall not be allowed
proposed to be passed at AGM by electronic means to change it subsequently or cast the vote again.
(“e-voting”). Members may cast their votes remotely,
b. 
A member can opt for only single mode of
using an electronic voting system on the dates
voting per EVEN, i.e., through remote e-voting or
mentioned herein below (“remote e-voting’’).
voting at the Meeting (Insta Poll). If a member
 
Further, the facility for voting through electronic casts vote(s) by both modes, then voting done
voting system will also be made available at the through remote e-voting shall prevail and vote(s)
Meeting (“Insta Poll”) and members attending the cast at the Meeting through Insta Poll shall be
Meeting who have not cast their vote(s) by remote treated as “INVALID”.
e-voting will be able to vote at the Meeting through
Insta Poll.

33rd Annual Report 2022-23 | 225

  c. A person, whose name is recorded in the register III. Remote e-voting:
of members or in the register of beneficial  a. Information and instructions for ‘remote
owners maintained by the depositories as on e-voting’ by Individual Shareholders holding
Cut-off Date only shall be entitled to avail the shares of the Company in demat mode
facility of remote e-voting or for participation
 s per circular of SEBI on e-voting facility
A
at the AGM and voting through Insta Poll. A
provided by Listed Entities, dated December
person who is not a member as on the cut-off
09, 2020, all “individual shareholders holding
date, should treat the Notice for information
shares of the Company in demat mode”
purpose only.
can cast their vote, by way of a single login
 d. The Company has opted to provide the same credential, through their demat accounts
electronic voting system at the Meeting, as used / websites of Depositories / Depository
during remote e-voting, and the said facility shall Participants. The procedure to login and access
be operational till all the resolutions proposed remote e-voting, as devised by the Depositories
in the Notice are considered and voted upon / Depository Participant(s), is given below:
at the Meeting and may be used for voting only
by the Members holding shares as on the Cut-
off Date who are attending the Meeting and
who have not already cast their vote(s) through
remote e-voting.

226
 Notice

Procedure to login through websites of Depositories

National Securities Depository Limited (“NSDL”) Central Depository Services (India) Limited (“CDSL”)
1. User already registered for IDeAS facility of NSDL may follow 1. Existing user who have opted for Easi / Easiest facility of
the following procedure: CDSL may follow the following procedure:
i. Type in the browser / Click on the following e-Services link: https:// i.  ype in the browser / Click on any of the following links:
T
eservices.nsdl.com https://web.cdslindia.com/myeasi/home/login
ii.  lick on the button “Beneficial Owner” available for login under
C or
‘IDeAS’ section.
 ww.cdslindia.com and click on New System Myeasi / Login
w
iii. A
 new page will open. Enter your User ID and Password for to My Easi option under Quick Login (best operational in
accessing IDeAS. Internet Explorer 10 or above and Mozilla Firefox)
iv. On successful authentication, you will enter your IDeAS service ii.  nter your User ID and Password for accessing Easi /
E
login. Click on “Access to e-Voting” under Value Added Services on Easiest.
the panel available on the left hand side.
iii. You will see Company Name: “Divi’s Laboratories Limited”
v. Click on “Active E-voting Cycles” option under E-voting. on the next screen. Click on the e-Voting link available
vi. You will see Company Name: “Divi’s Laboratories Limited” on against Divi’s Laboratories Limited or select e-Voting
the next screen. Click on the e-Voting link available against Divi’s service provider “Kfin” and you will be re-directed to the
Laboratories Limited or select e-Voting service provider “Kfin” and e-Voting page of Kfin to cast your vote without any further
you will be re-directed to the e-Voting page of Kfin to cast your vote authentication.
without any further authentication.
2. Users not registered for IDeAS e-Services facility of NSDL may 2. Users not registered for Easi/Easiest facility of CDSL may
follow the following procedure: follow the following procedure:
i.  o register, type in the browser / Click on the following e-Services
T i.  o register, type in the browser / Click on the following
T
link: https://eservices.nsdl.com link: https://web.cdslindia.com/myeasi/Registration/
ii. Select option “Register Online for IDeAS” available on the left hand EasiRegistration
side of the page ii.  roceed to complete registration using your DP ID-Client ID
P
iii. P
 roceed to complete registration using your DP ID, Client ID, Mobile (BO ID), etc.
Number etc. iii. After successful registration, please follow steps given under
iv. After successful registration, please follow steps given under Sr. No. Sr. No. 1 above to cast your vote.
1 above to cast your vote.
3. Users may directly access the e-Voting module of NSDL as per 3. Alternatively, by directly accessing the e-Voting website
the following procedure: of CDSL
i.  ype in the browser / Click on the following link: https://www.
T i.  ype in the browser / Click on the following links:
T
evoting.nsdl.com/ www.cdslindia.com / https://www.evotingindia.com
ii.  lick on the button “Login” available under “Shareholder/Member”
C ii. Provide Demat Account Number and PAN
section. iii. S
 ystem will authenticate user by sending OTP on registered
iii. O
 n the login page, enter User ID (that is, 16-character demat Mobile & E-mail as recorded in the Demat Account.
account number held with NSDL, starting with IN), Login Type, iv. O
 n successful authentication, you will enter the e-voting
t hat is, through typing Password (in case you are registered on module of CDSL. Click on the e-Voting link available
NSDL’s e-voting platform)/ through generation of OTP (in case your against Divi’s Laboratories Limited or select e-Voting
mobile/e-mail address is registered in your demat account) and service provider “Kfin” and you will be re-directed to the
Verification Code as shown on the screen. e-Voting page of Kfin to cast your vote without any further
iv. O
 n successful authentication, you will enter the e-voting module of authentication.
NSDL. Click on “Active E-voting Cycles / VC or OAVMs” option under
E-voting. You will see Company Name: “Divi’s Laboratories Limited”
on the next screen. Click on the
 -Voting link available against Divi’s Laboratories Limited or select
e
e-Voting service provider “Kfin” and you will be re-directed to
the e-Voting page of Kfin to cast your vote without any further
authentication.

Procedure to login through their demat accounts / Website ii.  n option for “e-voting” will be available once they have
A
of Depository Participant successfully logged-in through their respective logins.
i. Individual shareholders holding shares of the Company in Click on the option “e-voting” and they will be redirected
Demat mode can access e-voting facility provided by the to e-voting modules of NSDL/CDSL (as may be applicable).
Company using login credentials of their demat accounts iii.  lick on the e-voting link available against Divi’s
C
(online accounts) through their demat accounts / websites Laboratories Limited or select e-voting service provider
of Depository Participants registered with NSDL/CDSL. “Kfin” and you will be re-directed to the e-voting page of
Kfin to cast your vote without any further authentication.

33rd Annual Report 2022-23 | 227

Members who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot Password option
available on the websites of the Depositories / Depository participants.
Contact details in case of any technical issues NSDL website Contact details in case of any technical issues CDSL website
Please contact NSDL helpdesk by sending a request at [email protected] Please contact CDSL helpdesk by sending a request at helpdesk.
or call at toll free no.: 1800 1020 990 and 1800 22 44 30 [email protected] or contact at 022- 23058738 or 022-
23058542-43

b. Information and instructions for ‘remote e-voting’ by (i)  

vii. 
On the voting page, enter the number of
Shareholders other than individuals holding shares of shares (which represents the number of votes)
the Company in demat mode and (ii) All shareholders as on the Cut-off Date under “FOR/AGAINST”
holding shares in physical mode: or alternatively, you may partially enter any
A. In case a Member receives an e-mail from the number in “FOR” and partially “AGAINST” but the
Company / Kfin i.e. for Members whose e-mail total number in “FOR/AGAINST” taken together
address is registered with the Company / shall not exceed your total shareholding as
Depository Participant(s): mentioned herein above. You may also choose
the option “ABSTAIN”. If the Member does not
 
i. Launch internet browser by typing the URL:
indicate either “FOR” or “AGAINST” it will be
https://evoting.kfintech.com.
treated as “ABSTAIN” and the shares held will
 
ii. 
Enter the login credentials (User ID and not be counted under either head.
password provided in the e-mail). The E-Voting
 viii. M
 embers holding multiple folios/demat
Event Number+Folio No. or DP ID Client ID will
accounts shall choose the voting process
be your User ID. If you are already registered
separately for each folio/ demat accounts.
with Kfin for e-voting, you can use the existing
password for logging-in. If required, please visit  ix. Voting has to be done for each item of the notice
https://evoting.kfintech.com or contact toll-free separately. In case you do not desire to cast
numbers 1800-309-4001 (from 9:00 a.m. to your vote on any specific item, it will be treated
6:00 p.m. on all working days) for assistance on as abstained.
your existing password.
 x. You may then cast your vote by selecting an
 iii.  fter entering these details appropriately, click
A appropriate option and click on “Submit”.
on “LOGIN”.
 xi.  confirmation box will be displayed. Click “OK”
A
 
iv. 
You will now reach password change Menu to confirm else “CANCEL” to modify. Once you
wherein you are required to mandatorily have voted on the resolution (s), you will not be
change your password. The new password shall allowed to modify your vote.
comprise of minimum 8 characters with at least
 xii. Institutional / Corporate shareholders (i.e. other
one upper case (A- Z), one lower case (a-z), one
than individuals, HUF, NRI, etc.) are required
numeric value (0-9) and a special character
to send a scanned copy (PDF / JPG Format) of
(@,#,$, etc.,). The system will prompt you to
their respective Board Resolution / Power of
change your password and update your contact
Attorney / Authorisation Letter, etc., authorising
details like mobile number, email ID etc. on first
their representative to attend the AGM
login. You may also enter a secret question and
through VC / OAVM on their behalf and to vote
answer of your choice to retrieve your password
through remote e-voting. The said Resolution /
in case you forget it. It is strongly recommended
Authorisation shall be sent to the Scrutiniser
that you do not share your password with any
by e-mail on its registered e-mail address to
other person and that you take utmost care to
[email protected] with a copy
keep your password confidential.
marked to [email protected]. The scanned
 v. You need to login again with the new credentials. image of the above-mentioned documents
should be in the naming format “Corporate
 
vi. 
On successful login, the system will prompt
Name Even.”.
you to select the “EVEN” for Divi’s Laboratories
Limited and click on “Submit”

228
 Notice

B. In case of a Member whose e-mail address is Once the voting at the Meeting is announced by the
not registered / updated with the Company / Chairman, Members who have not cast their vote
Kfin / Depository Participant(s), please follow the using remote e-voting will be able to cast their vote
following steps to generate your login credentials: by clicking on this icon. Insta Poll will be kept open for
i. Please follow the steps for registration of e-mail 15 minutes after end of the AGM.
address as mentioned in note no. 9 above. D. e-voting Result:
ii. After registration of email, please follow all steps The Scrutiniser will, after the conclusion of e-voting
above to cast your vote by electronic means. at the Meeting, scrutinise the votes cast at the
Meeting (Insta Poll) and votes cast through remote
iii. In case of any query and/or grievance, in respect
e-voting, make a consolidated Scrutiniser’s Report
of voting by electronic means, Members may
and submit the same to the Chairman. The result
refer to the Help & Frequently Asked Questions
of e-voting will be declared within forty-eight hours
(FAQs) and E-voting user manual available at the
of the conclusion of the Meeting and the same,
download section of https://evoting.kfintech.
along with the consolidated Scrutiniser’s Report,
com (Kfin Website) or contact at the details
will be placed on the website of the Company at
mentioned below for any e-voting related
www.divislabs.com and on the website of Kfin
clarification/grievances:
at: https://evoting.kfintech.com. The result will
 Mr. P Nageswara Rao, Manager, also be simultaneously be communicated to the
 Kfin Technologies Limited Stock Exchanges.
 (Unit: Divi’s Laboratories Limited)
Subject to receipt of requisite number of votes,
 Selenium Tower B, Plot 31-32, Gachibowli,
the Resolutions proposed in the Notice shall
Financial District,
be deemed to be passed on the date of the
 Nanakramguda, Hyderabad - 500 032
Meeting, i.e., Monday, August 28, 2023.
 Phone No. 040 – 67161526
 Toll free No. 1800-309-4001
 e-mail: [email protected] or
[email protected]

C. e-voting at AGM (Insta Poll):

Facility to vote through Insta Poll will be made
available on the Meeting page (after you log into the
Meeting) and will be activated once the Insta Poll is
announced at the Meeting. An icon, “Vote”, will be
available at the bottom left on the Meeting Screen.

33rd Annual Report 2022-23 | 229

Annexure to Notice of AGM
Details of Directors seeking re-appointment at the 33rd AGM as required under Regulation 36(3) of SEBI Listing Regulations,
and the Secretarial Standard - 2 on General Meetings

Item No. 3 – Re-appointment of Dr. Kiran S. Divi, who Officer for a period of 5 years commencing from April 01, 2020
retires by rotation, as Director of the Company vide shareholders resolution dated February 26, 2020, is liable
Brief resume: to retire by rotation.

Dr. Kiran S. Divi holds a postgraduate degree in Pharmacy from Date of first appointment on Board, last drawn
Jawaharlal Nehru Technological University ( JNTU), Kakinada, remuneration and number of Board meetings attended:
Andhra Pradesh. He holds a Ph.D. degree from Gandhi Institute Dr. Kiran S. Divi joined the Board of Directors of Company on
of Technology and Management, Visakhapatnam. August 10, 2001. His last drawn remuneration for the financial
year 2022-23 is C2,479 lakhs including remuneration based on
Dr. Kiran S. Divi joined Divi’s Laboratories Limited on August
net profits. He attended 4 board meetings out of 4 meetings
10, 2001, as Director (Business Development). He was later
held during the financial year 2022-23.
designated as Whole-time Director and Chief Executive
Officer of the Company. He is responsible for manufacturing Item No. 4 – Re-appointment of Ms. Nilima Prasad Divi,
operations, marketing, quality assurance, regulatory affairs who retires by rotation, as Director of the Company
and corporate HR. Brief resume:
Age: 46 years Ms. Nilima Prasad Divi has a Master’s Degree in International
Business from Gitam Institute of Foreign Trade, Visakhapatnam
Nature of his expertise in specific functional areas:
and in International Finance from Glasgow University, U.K.
Manufacturing operations, marketing, quality assurance,
She has significant international exposure in UK and Scotland
regulatory affairs, and corporate HR.
for over 5 years before joining the Company and acquired
Disclosure of relationships inter-se between Directors, commercial acumen and familiarity with international
Manager and other Key Managerial Personnel: Dr. Kiran business environment.
S. Divi is related to Dr. Murali K. Divi, Managing Director and
Ms. Nilima Prasad Divi joined the Company during 2012 in the
Ms. Nilima Prasad Divi, Whole-time Director (Commercial) of
management cadre of the Company. She joined the Board
the Company.
as a Whole-time Director on June 27, 2017. She oversees the
Directorships of Dr. Kiran S. Divi held in other companies: commercial functions comprising of sourcing, risk mitigation
• Divi’s Biotech Private Limited as well as corporate finance, accounting, taxation, secretarial,
investor relations, CSR projects. She is also the Chief Control
• Divi’s Resorts and Agro Farms Private Limited Officer and works towards control mainly in matters pertaining
• Divi’s Properties Private Limited to commercial functions as well as projects.

Name of listed entities from which Dr. Kiran S. Divi has Age: 41 years
resigned in the past three years: Nil Nature of her expertise in specific functional areas:
Memberships/Chairmanships of Committees in Sourcing, risk mitigation, corporate finance, accounting,
other companies: taxation, secretarial, investor relations CSR projects.

As a Chairman of Committee: Nil Disclosure of relationships inter-se between Directors,

Manager and other Key Managerial Personnel: Ms. Nilima
As a member of Committee: Member of CSR Committee of Prasad Divi is related to Dr. Murali K. Divi, Managing Director
Divi’s Properties Private Limited and Dr. Kiran S. Divi, Whole-time Director and Chief Executive
Shareholding in the Company: Dr. Kiran S. Divi holds Officer of the Company.
5,40,00,000 equity shares of C2/- each of the Company. Directorships of Ms. Nilima Prasad Divi held in
Remuneration proposed to be paid: As per the shareholders other companies:
resolution dated February 26, 2020. • Divi’s Biotech Private Limited
Terms and conditions of appointment: In terms of Section • Divi’s Resorts and Agro Farms Private Limited
152(6) of the Companies Act, 2013, Dr. Kiran S. Divi who was
re-appointed as a Whole-time Director and Chief Executive • Divi’s Properties Private Limited

230
 Notice

Name of listed entities from which Ms. Nilima Prasad drawn remuneration for the financial year 2022-23 is C2,463
Divi has resigned in the past three years: Nil lakhs including remuneration based on net profits. She
attended 4 board meetings out of 4 meetings held during the
Memberships/Chairmanships of Committees in
financial year 2022-23.
other companies:

As a Chairman of Committee: Nil

By Order of the Board of Directors
As a member of Committee: Member of CSR Committee of
Divi’s Properties Private Limited

Shareholding in the Company: Ms. Nilima Prasad Divi holds M. Satish Choudhury
5,40,00,000 equity shares of C2/- each of the Company. Place: Hyderabad Company Secretary
Date: May 20, 2023 Membership No. F12493
Remuneration proposed to be paid: As per the shareholders
resolution dated March 26, 2022.
Registered Office:
Terms and conditions of appointment: In terms of Section 1-72/23(P)/DIVIS/303, Divi Towers,
152(6) of the Companies Act, 2013, Ms. Nilima Prasad Divi Cyber Hills, Gachibowli, Hyderabad – 500 032
who was re-appointed as a Whole-time Director (Commercial) CIN: L24110TG1990PLC011854
for a period of 5 years commencing from June 27, 2022 vide Website: www.divislabs.com
shareholders resolution dated March 26, 2022, is liable to e-mail: [email protected]
retire by rotation. Tel: +91 40 66966300
Fax: +91 40 66966460
Date of first appointment on Board, last drawn
remuneration and number of Board meetings attended:
Ms. Nilima Prasad Divi joined the Board of Directors of the
Company as Whole-time Director from June 27, 2017. Her last

33rd Annual Report 2022-23 | 231

Registered office:
Divi Towers, 1-72/23(P)/DIVIS/303
Cyber Hills, Gachibowli, Hyderabad - 500032
Telangana, India.

Tel: +91 40 66966300

Fax: +91 40 66966460
E-mail: [email protected]
Website : www.divislabs.com