Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | DR REDDYS LABORATORIES LTD |
Entity Central Index Key | 1,135,951 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Trading Symbol | RDY |
Entity Common Stock, Shares Outstanding | 165,910,907 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Current assets | ||||
Cash and cash equivalents | ₨ 2,638 | $ 41 | ₨ 3,866 | |
Other investments | 18,330 | 282 | 14,270 | |
Trade and other receivables | 40,617 | 624 | 38,065 | |
Inventories | 29,089 | 447 | 28,529 | |
Derivative financial instruments | 103 | 2 | 262 | |
Current tax assets | 4,567 | 70 | 3,413 | |
Other current assets | 14,301 | 220 | 11,970 | |
Total current assets | 109,645 | 1,684 | 100,375 | |
Non-current assets | ||||
Property, plant and equipment | 57,869 | 889 | 57,160 | |
Goodwill | 3,945 | 61 | 3,752 | |
Other intangible assets | 44,665 | 686 | 44,925 | |
Trade and other receivables | 169 | 3 | 206 | |
Investment in equity accounted investees | 2,104 | 32 | 1,603 | |
Other investments | 2,549 | 39 | 5,237 | |
Deferred tax assets | 3,628 | 56 | 5,580 | |
Other non-current assets | 1,030 | 16 | 983 | |
Total non-current assets | 115,959 | 1,781 | 119,446 | |
Total assets | 225,604 | 3,465 | 219,821 | |
Current liabilities | ||||
Trade and other payables | 16,052 | 247 | 13,417 | |
Short-term borrowings | 25,466 | 391 | 43,539 | |
Long-term borrowings, current portion | 63 | 1 | 110 | |
Provisions | 3,732 | 57 | 4,509 | |
Current tax liabilities | 1,530 | 23 | 1,483 | |
Derivative financial instruments | 85 | 1 | 10 | |
Bank overdraft | 96 | 1 | 87 | |
Other current liabilities | 22,668 | 348 | 21,845 | |
Total current liabilities | 69,692 | 1,070 | 85,000 | |
Non-current liabilities | ||||
Long-term borrowings, excluding current portion | 25,089 | 385 | 5,449 | |
Deferred tax liabilities | 730 | 11 | 1,204 | |
Provisions | 53 | 1 | 47 | |
Other non-current liabilities | 3,580 | 55 | 4,077 | |
Total non-current liabilities | 29,452 | 452 | 10,777 | |
Total liabilities | 99,144 | 1,523 | 95,777 | |
Equity | ||||
Share capital | 830 | 13 | 829 | |
Share premium | 7,790 | 120 | 7,359 | |
Share-based payment reserve | 1,021 | 16 | 998 | |
Capital redemption reserve | 173 | 3 | 173 | |
Retained earnings | 113,865 | 1,749 | 108,051 | |
Other components of equity | 2,781 | 43 | 6,634 | |
Total equity | 126,460 | 1,942 | 124,044 | |
Total liabilities and equity | ₨ 225,604 | $ 3,465 | ₨ 219,821 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2018INR (₨)₨ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017INR (₨)₨ / sharesshares | Mar. 31, 2016INR (₨)₨ / sharesshares | |||||
Analysis of income and expense [abstract] | ||||||||
Revenues | ₨ 142,028 | [1],[2] | $ 2,181 | [3] | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] |
Cost of revenues | 65,724 | 1,009 | [3] | 62,453 | 62,427 | |||
Gross profit | 76,304 | 1,172 | [3] | 78,356 | 92,281 | |||
Selling, general and administrative expenses | 46,910 | 720 | [3] | 46,372 | 45,702 | |||
Research and development expenses | 18,265 | 281 | [3] | 19,551 | 17,834 | |||
Other (income)/expense, net | (788) | (12) | [3] | (1,065) | (874) | |||
Total operating expenses | 64,387 | 989 | [3] | 64,858 | 62,662 | |||
Results from operating activities | 11,917 | 183 | [3] | 13,498 | 29,619 | |||
Finance income | 2,897 | 44 | [3] | 1,587 | 2,251 | |||
Finance expense | (817) | (13) | [3] | (781) | (4,959) | |||
Finance (expense)/income, net | 2,080 | 32 | [3] | 806 | (2,708) | |||
Share of profit of equity accounted investees, net of tax | 344 | 5 | [3] | 349 | 229 | |||
Profit before tax | 14,341 | 220 | [3] | 14,653 | 27,140 | |||
Tax expense | 4,535 | 70 | [3] | 2,614 | 7,127 | |||
Profit for the year | 9,806 | 151 | [3] | 12,039 | 20,013 | |||
Attributable to: | ||||||||
Equity holders of the Company | 9,806 | 151 | [3] | 12,039 | 20,013 | |||
Non-controlling interest | 0 | 0 | [3] | 0 | 0 | |||
Profit for the year | ₨ 9,806 | $ 151 | [3] | ₨ 12,039 | ₨ 20,013 | |||
Earnings per share: | ||||||||
Basic earnings per share of Rs.5/- each | (per share) | ₨ 59.13 | $ 0.91 | [3] | ₨ 72.24 | ₨ 117.34 | |||
Diluted earnings per share of Rs.5/- each | (per share) | ₨ 59 | $ 0.91 | [3] | ₨ 72.09 | ₨ 116.98 | |||
Weighted average number of equity shares used in computing earnings per share: | ||||||||
Basic | 165,845,408 | 165,845,408 | 166,648,943 | 170,547,643 | ||||
Diluted | 166,185,552 | 166,185,552 | 166,997,675 | 171,072,780 | ||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Parenthetical) - ₨ / shares | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Analysis of income and expense [abstract] | |||
Par value per share - basic and diluted | ₨ 5 | ₨ 5 | ₨ 5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Statement of comprehensive income [abstract] | |||||
Profit for the year | ₨ 9,806 | $ 151 | ₨ 12,039 | ₨ 20,013 | |
Items that will not be reclassified to the consolidated income statement: | |||||
Actuarial gains/(losses) on post-employment benefit obligations | 39 | 1 | (39) | (185) | |
Tax on items that will not be reclassified to the consolidated income statement | (12) | 0 | 14 | 64 | |
Total of items that will not be reclassified to the consolidated income statement | 27 | 0 | (25) | (121) | |
Items that may be reclassified subsequently to the consolidated income statement: | |||||
Changes in fair value of available for sale financial instruments | (5,160) | (79) | 2,209 | (19) | |
Foreign currency translation adjustments | (32) | (1) | (339) | 31 | |
Effective portion of changes in fair value of cash flow hedges, net | (82) | (1) | 968 | 966 | |
Tax on items that may be reclassified subsequently to the consolidated income statement | 1,394 | 21 | (411) | (173) | |
Total of items that may be reclassified subsequently to the consolidated income statement | (3,880) | (60) | 2,427 | 805 | |
Other comprehensive income/(loss) for the year, net of tax | (3,853) | (59) | 2,402 | 684 | |
Total comprehensive income for the year | 5,953 | 91 | 14,441 | 20,697 | |
Attributable to: | |||||
Equity holders of the Company | 5,953 | 91 | 14,441 | 20,697 | |
Non-controlling interest | 0 | 0 | 0 | 0 | |
Total comprehensive income for the year | ₨ 5,953 | $ 91 | ₨ 14,441 | ₨ 20,697 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ₨ in Millions, $ in Millions | INR (₨) | USD ($) | [2] | Share capital[member]INR (₨) | Share capital[member]USD ($) | Share premium [member]INR (₨) | Share premium [member]USD ($) | Fair value reserve [member]INR (₨) | Fair value reserve [member]USD ($) | Foreign currency translation reserve [member]INR (₨) | Foreign currency translation reserve [member]USD ($) | Hedging reserve [member]INR (₨) | Hedging reserve [member]USD ($) | Retained Earnings [Member]INR (₨) | Retained Earnings [Member]USD ($) | Actuarial gains/ (losses) [Member]INR (₨) | Actuarial gains/ (losses) [Member]USD ($) | share based payments Reserve [member]INR (₨) | share based payments Reserve [member]USD ($) | Capital redemption reserve [Member]INR (₨) | Capital redemption reserve [Member]USD ($) | |
Beginning Balance at Mar. 31, 2015 | ₨ 111,302 | ₨ 852 | ₨ 22,178 | ₨ 1,141 | ₨ 4,455 | ₨ (1,765) | ₨ 83,495 | ₨ (283) | ₨ 1,081 | ₨ 148 | ||||||||||||
Total comprehensive income | ||||||||||||||||||||||
Profit for the year | 20,013 | 0 | 0 | 0 | 0 | 0 | 20,013 | 0 | 0 | 0 | ||||||||||||
Net change in fair value of available for sale financial instruments, net of tax expense/(benefit) | (107) | 0 | 0 | (107) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Foreign currency translation adjustments, net of tax expense/(benefit) | (31) | 0 | 0 | 0 | (31) | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax expense/(benefit) | 943 | 0 | 0 | 0 | 0 | 943 | 0 | 0 | 0 | 0 | ||||||||||||
Actuarial gain/(loss) on post-employment benefit obligations, net of tax expense/(benefit) | (121) | 0 | 0 | 0 | 0 | 0 | 0 | (121) | 0 | 0 | ||||||||||||
Total comprehensive income | 20,697 | 0 | 0 | (107) | (31) | 943 | 20,013 | (121) | 0 | 0 | ||||||||||||
Contributions and distributions | ||||||||||||||||||||||
Issue of equity shares on exercise of options | 1 | 1 | 423 | 0 | 0 | 0 | 0 | 0 | (423) | 0 | ||||||||||||
Share-based payment expense | 442 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 442 | 0 | ||||||||||||
Dividend paid (including corporate dividend tax) | (4,106) | 0 | 0 | 0 | 0 | 0 | (4,106) | 0 | 0 | 0 | ||||||||||||
Total contributions and distributions | (3,663) | 1 | 423 | 0 | 0 | 0 | (4,106) | 0 | 19 | 0 | ||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Total transactions with owners of the Company | (3,663) | 1 | 423 | 0 | 0 | 0 | (4,106) | 0 | 19 | 0 | ||||||||||||
Ending Balance at Mar. 31, 2016 | 128,336 | 853 | 22,601 | 1,034 | 4,424 | (822) | 99,402 | (404) | 1,100 | 148 | ||||||||||||
Total comprehensive income | ||||||||||||||||||||||
Profit for the year | 12,039 | 0 | 0 | 0 | 0 | 0 | 12,039 | 0 | 0 | 0 | ||||||||||||
Net change in fair value of available for sale financial instruments, net of tax expense/(benefit) | 1,710 | 0 | 0 | 1,710 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Foreign currency translation adjustments, net of tax expense/(benefit) | (191) | 0 | 0 | 0 | (191) | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax expense/(benefit) | 908 | 0 | 0 | 0 | 0 | 908 | 0 | 0 | 0 | 0 | ||||||||||||
Actuarial gain/(loss) on post-employment benefit obligations, net of tax expense/(benefit) | (25) | 0 | 0 | 0 | 0 | 0 | 0 | (25) | 0 | 0 | ||||||||||||
Total comprehensive income | 14,441 | 0 | 0 | 1,710 | (191) | 908 | 12,039 | (25) | 0 | 0 | ||||||||||||
Contributions and distributions | ||||||||||||||||||||||
Issue of equity shares on exercise of options | 1 | 1 | 452 | 0 | 0 | 0 | 0 | 0 | (452) | 0 | ||||||||||||
Buyback of equity shares | [1] | (15,694) | (25) | (15,669) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Share-based payment expense | 350 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 350 | 0 | ||||||||||||
Dividend paid (including corporate dividend tax) | (3,390) | 0 | 0 | 0 | 0 | 0 | (3,390) | 0 | 0 | 0 | ||||||||||||
Transfer to capital redemption reserve | 0 | 0 | (25) | 0 | 0 | 0 | 0 | 0 | 0 | 25 | ||||||||||||
Total contributions and distributions | (18,733) | (24) | (15,242) | 0 | 0 | 0 | (3,390) | 0 | (102) | 25 | ||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Total transactions with owners of the Company | (18,733) | (24) | (15,242) | 0 | 0 | 0 | (3,390) | 0 | (102) | 25 | ||||||||||||
Ending Balance at Mar. 31, 2017 | 124,044 | 829 | 7,359 | 2,744 | 4,233 | 86 | 108,051 | (429) | 998 | 173 | ||||||||||||
Total comprehensive income | ||||||||||||||||||||||
Profit for the year | 9,806 | $ 151 | 0 | 0 | 0 | 0 | 0 | 9,806 | 0 | 0 | 0 | |||||||||||
Net change in fair value of available for sale financial instruments, net of tax expense/(benefit) | (3,790) | 0 | 0 | (3,790) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Foreign currency translation adjustments, net of tax expense/(benefit) | (49) | 0 | 0 | 0 | (49) | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax expense/(benefit) | (41) | 0 | 0 | 0 | 0 | (41) | 0 | 0 | 0 | 0 | ||||||||||||
Actuarial gain/(loss) on post-employment benefit obligations, net of tax expense/(benefit) | 27 | 0 | 0 | 0 | 0 | 0 | 0 | 27 | 0 | 0 | ||||||||||||
Total comprehensive income | 5,953 | 91 | 0 | 0 | (3,790) | (49) | (41) | 9,806 | 27 | 0 | 0 | |||||||||||
Contributions and distributions | ||||||||||||||||||||||
Issue of equity shares on exercise of options | 1 | 1 | 431 | 0 | 0 | 0 | 0 | 0 | (431) | 0 | ||||||||||||
Share-based payment expense | 454 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 454 | 0 | ||||||||||||
Dividend paid (including corporate dividend tax) | (3,992) | 0 | 0 | 0 | 0 | 0 | (3,992) | 0 | 0 | 0 | ||||||||||||
Total contributions and distributions | (3,537) | 1 | 431 | 0 | 0 | 0 | (3,992) | 0 | 23 | 0 | ||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Total transactions with owners of the Company | (3,537) | 1 | 431 | 0 | 0 | 0 | (3,992) | 0 | 23 | 0 | ||||||||||||
Ending Balance at Mar. 31, 2018 | ₨ 126,460 | $ 1,942 | ₨ 830 | $ 13 | ₨ 7,790 | $ 120 | ₨ (1,046) | $ (16) | ₨ 4,184 | $ 64 | ₨ 45 | $ 1 | ₨ 113,865 | $ 1,749 | ₨ (402) | $ (6) | ₨ 1,021 | $ 16 | ₨ 173 | $ 3 | ||
[1] | Refer to Note 15 of these consolidated financial statements. | |||||||||||||||||||||
[2] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of changes in equity [abstract] | |||
Tax on changes in fair value of available for sale financial instruments | ₨ 1,370 | ₨ (499) | ₨ (88) |
Tax effect on foreign currency translation differences | (17) | 148 | (62) |
Tax effect on effective portion of change in fair value of cash flow hedges | 41 | (60) | (23) |
Tax effect on actuarial gains/losses on defined benefit obligations | ₨ (12) | ₨ 14 | ₨ 64 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||
Cash flows from/(used in) operating activities: | |||||
Profit for the year | ₨ 9,806 | $ 151 | [1] | ₨ 12,039 | ₨ 20,013 |
Adjustments for: | |||||
Income tax expense | 4,535 | 70 | 2,614 | 7,127 | |
Dividend and profit on sale of investments | (2,270) | (35) | (956) | (852) | |
Depreciation and amortization | 11,710 | 180 | 11,277 | 10,250 | |
Impairment loss on property, plant and equipment and other intangible assets | 53 | 1 | 445 | 288 | |
Inventory write-downs | 2,946 | 45 | 3,085 | 2,746 | |
Allowance for doubtful trade and other receivables | 155 | 2 | 138 | 137 | |
Loss/(profit) on sale of property, plant and equipment and other intangible assets, net | 55 | 1 | 80 | 112 | |
Allowance for sales returns | 2,702 | 41 | 3,177 | 3,272 | |
Share of profit of equity accounted investees | (344) | (5) | (349) | (229) | |
Exchange (gain)/loss, net | (325) | (5) | 568 | 1,066 | |
Exchange loss related to Venezuela operations | 29 | 0 | 41 | 4,621 | |
Interest (income)/expense, net | 248 | 4 | 76 | (573) | |
Equity settled share-based payment expense | 454 | 7 | 350 | 442 | |
Changes in operating assets and liabilities: | |||||
Trade and other receivables | (2,097) | (32) | 3,037 | 833 | |
Inventories | (3,233) | (50) | (6,325) | (2,522) | |
Trade and other payables | 2,501 | 38 | 1,886 | 746 | |
Other assets and other liabilities | (6,135) | (94) | (3,900) | 784 | |
Cash generated from operations | 20,790 | 319 | 27,283 | 48,261 | |
Income tax paid | (2,761) | (42) | (5,770) | (7,014) | |
Net cash from operating activities | 18,029 | 277 | 21,513 | 41,247 | |
Cash flows from/(used in) investing activities: | |||||
Expenditures on property, plant and equipment | (9,291) | (143) | (12,278) | (12,017) | |
Proceeds from sale of property, plant and equipment | 139 | 2 | 44 | 84 | |
Expenditures on other intangible assets | (1,752) | (27) | (28,706) | (2,858) | |
Investment in equity accounted investees | 0 | 0 | (86) | 0 | |
Purchase of other investments | (68,429) | (1,051) | (49,651) | (68,249) | |
Proceeds from sale of other investments | 64,038 | 984 | 71,595 | 69,270 | |
Cash paid for acquisition of business, net of cash acquired | 0 | 0 | (17) | (7,936) | |
Interest and dividend received | 412 | 6 | 628 | 1,283 | |
Net cash used in investing activities | (14,883) | (229) | (18,471) | (20,423) | |
Cash flows from/(used in) financing activities: | |||||
Proceeds from issuance of equity shares | 1 | 0 | 1 | 1 | |
Buyback of equity shares | 0 | 0 | (15,694) | 0 | |
Proceeds from/(repayment of) short term borrowings, net | (18,025) | (277) | 21,536 | (273) | |
Proceeds from/(repayment of) long term borrowings, net | 18,907 | 290 | (5,220) | (11,706) | |
Dividend paid (including corporate dividend tax) | (3,992) | (61) | (3,390) | (4,106) | |
Interest paid | (1,331) | (20) | (925) | (917) | |
Net cash used in financing activities | (4,440) | (68) | (3,692) | (17,001) | |
Net increase/(decrease) in cash and cash equivalents | (1,294) | (20) | (650) | 3,823 | |
Effect of exchange rate changes on cash and cash equivalents | 57 | 1 | (492) | (4,296) | |
Cash and cash equivalents at the beginning of the year | 3,779 | 58 | 4,921 | 5,394 | |
Cash and cash equivalents at the end of the year | 2,542 | 39 | 3,779 | 4,921 | |
Supplemental schedule of non-cash investing and financing activities: | |||||
Investment in shares of Curis, Inc. | 0 | 0 | 1,247 | 0 | |
Acquisition of select products portfolio of UCB | 0 | 0 | 0 | 64 | |
Property, plant and equipment and intangibles purchased on credit during the year, including contingent consideration on purchase of intangibles | 662 | 10 | 301 | 1,064 | |
Property, plant and equipment purchased under capital lease | ₨ 0 | $ 0 | ₨ 3 | ₨ 0 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Reporting entity
Reporting entity | 12 Months Ended |
Mar. 31, 2018 | |
Description Of Business [Abstract] | |
Disclosure Of Nature Of Business Explanatory | 1. Reporting entity Dr. Reddy’s Laboratories Limited (the “parent company”), together with its subsidiaries and joint ventures (collectively, the “Company”), is a leading India-based pharmaceutical company headquartered in Hyderabad, Telangana, India. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products the Company offers a portfolio of products and services, including Active Pharmaceutical Ingredients (“APIs”), Custom Pharmaceutical Services (“CPS”), generics, biosimilars and differentiated formulations. The Company’s principal research and development facilities are located in in the states of Telangana and Andhra Pradesh in India, Cambridge in the United Kingdom and Leiden in the Netherlands; its principal manufacturing facilities are located in the states of Telangana, Andhra Pradesh and Himachal Pradesh in India, Cuernavaca-Cuautla in Mexico, Mirfield in the United Kingdom, and Louisiana and Tennessee in the United States; and its principal markets are in India, Russia, the United States, the United Kingdom, and Germany. The Company’s shares trade on the Bombay Stock Exchange and the National Stock Exchange in India and on the New York Stock Exchange in the United States. |
Basis of preparation of financi
Basis of preparation of financial statements | 12 Months Ended |
Mar. 31, 2018 | |
Basis of preparation of financial statements [Abstract] | |
Basis of preparation of financial statements | 2. Basis of preparation of financial statements These consolidated financial statements as at and for the year ended March 31, 2018 have been prepared in accordance with the International Financial Reporting Standards and its interpretations (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements have been prepared for the Company as a going concern on the basis of relevant IFRS that are effective or elected for early adoption at the Company’s annual reporting date, March 31, 2018. These consolidated financial statements were authorized for issuance by the Company’s Board of Directors on June 15, 2018. These consolidated financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position: · derivative financial instruments are measured at fair value; · available-for-sale financial assets are measured at fair value; · employee defined benefit assets/(liability) are recognized as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the defined benefit obligation; · long term borrowings, except obligations under finance leases, are measured at amortized cost using the effective interest rate method; · share-based payments; · held-to-maturity investments are measured at amortized cost using the effective interest rate method; · loans and receivables are measured at amortized cost using the effective interest rate method; and · investments in joint ventures are accounted for using the equity method. These consolidated financial statements are presented in Indian rupees, which is the functional currency of the parent company. All financial information presented in Indian rupees has been rounded to the nearest million. In respect of certain non-Indian subsidiaries that operate as marketing arms of the parent company in their respective countries/regions, the functional currency has been determined to be the functional currency of the parent company (i.e., the Indian rupee). The operations of these entities are largely restricted to importing of finished goods from the parent company in India, sales of these products in the foreign country and making of import payments to the parent company. The cash flows realized from sales of goods are available for making import payments to the parent company and cash is paid to the parent company on a regular basis. The costs incurred by these entities are primarily the cost of goods imported from the parent company. The financing of these subsidiaries is done directly or indirectly by the parent company. In respect of subsidiaries whose operations are self-contained and integrated within their respective countries/regions, the functional currency has been generally determined to be the local currency of those countries/regions, unless use of a different currency is considered appropriate. These consolidated financial statements have been prepared in Indian rupees. Solely for the convenience of the reader, these consolidated financial statements as of and for the year ended March 31, 2018 have been translated into U.S. dollars at the certified foreign exchange rate of U.S.$1.00 = Rs.65.11, as published by the Federal Reserve Board of Governors on March 30, 2018. No representation is made that the Indian rupee amounts have been, could have been or could be converted into U.S. dollars at such a rate or any other rate. Such convenience translation is not subject to audit by the Company’s independent auditors. The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes: · Note 3(a) Evaluation of joint arrangements; · Note 2(c) Assessment of functional currency; · Note 3(c) and 30 Financial instruments; · Notes 3(d) Business combinations; · Notes 3(e) and (f) Useful lives of property, plant and equipment and intangible assets; · Note 3(h) Valuation of inventories; · Notes 3(i), 6, 7 and 8 Measurement of recoverable amounts of cash-generating units; · Note 3 (j) and 18 Assets and obligations relating to employee benefits; · Note 3 (j) Share-based payments; · Note 3(k) Provisions and other accruals; · Note 3(l) Sales returns, rebates and chargeback provisions; · Note 3(o) Evaluation of recoverability of deferred tax assets; and · Note 39 Contingencies |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Summary Of Significant Accounting Policies Explanatory [Abstract] | |
Significant accounting policies | 3. Significant accounting policies Subsidiaries Subsidiaries are all entities (including special purpose entities) that are controlled by the Company. Control exists when the Company is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive. The financial statements of subsidiaries are included in these consolidated financial statements from the date that control commences until the date that control ceases. For the purpose of preparing these consolidated financial statements, the accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Company. Joint arrangements (equity accounted investees) Joint arrangements are those arrangements over which the Company has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. A joint arrangement is either a joint operation or a joint venture. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The carrying value of the Company’s investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The Company does not consolidate entities where the non-controlling interest (“NCI”) holders have certain significant participating rights that provide for effective involvement in significant decisions in the ordinary course of business of such entities. Investments in such entities are accounted by the equity method of accounting. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Company has an obligation or has made payments on behalf of the investee. For the purpose of preparing these consolidated financial statements, the accounting policies of joint ventures have been changed where necessary to align them with the policies adopted by the Company. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in full while preparing these consolidated financial statements. Unrealized gains or losses arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee. Acquisition of non-controlling interests Acquisition of some or all of the NCI is accounted for as a transaction with equity holders in their capacity as equity holders. Consequently, the difference arising between the fair value of the purchase consideration paid and the carrying value of the NCI is recorded as an adjustment to retained earnings that is attributable to the parent company. The associated cash flows are classified as financing activities. No goodwill is recognized as a result of such transactions. Loss of Control Upon loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any NCIs and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in the consolidated income statement. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial asset, depending on the level of influence retained. Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of entities within the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in the consolidated income statement in the period in which they arise. However, foreign currency differences arising from the translation of the following items are recognized in other comprehensive income (“OCI”): - available-for-sale financial assets (except on impairment, in which case foreign currency differences that have been recognized in OCI are reclassified to the consolidated income statement); - a financial liability designated as a hedge of the net investment in a foreign operation, to the extent that the hedge is effective; and - qualifying cash flow hedges, to the extent that the hedges are effective. When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date. Foreign operations Foreign exchange gains and losses arising from a monetary item receivable from a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of the net investment in the foreign operation and are recognized in OCI and presented within equity as a part of foreign currency translation reserve (“FCTR”). In case of foreign operations whose functional currency is different from the parent company’s functional currency, the assets and liabilities of such foreign operations, including goodwill and fair value adjustments arising upon acquisition, are translated to the reporting currency at exchange rates at the reporting date. The income and expenses of such foreign operations are translated to the reporting currency at the monthly average exchange rates prevailing during the year. Resulting foreign currency differences are recognized in OCI and presented within equity as part of FCTR. When a foreign operation is disposed of, in part or in full, such that control, significant influence or joint control is lost, the relevant amount in the FCTR is transferred to the consolidated income statement. Non-derivative financial instruments Non-derivative financial instruments consist of investments in mutual funds, bonds, equity securities, trade and other receivables, cash and cash equivalents, loans and borrowings, trade and other payables and certain other assets and liabilities. Non-derivative financial instruments are recognized initially at fair value plus any directly attributable transaction costs, except for those instruments that are designated as being fair value through profit and loss upon initial recognition. Subsequent to initial recognition, non-derivative financial instruments are measured as described below. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. For this purpose, “short-term” means investments having original maturities of three months or less from the date of investment. Bank overdrafts that are repayable on demand form an integral part of the Company’s cash management and are included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flows. Held-to-maturity investments Held-to-maturity investments consist of investments in bonds with fixed or determinable payments and fixed maturity that the Company has the positive intention and the ability to hold to maturity. Such investments are initially measured at fair value, with subsequent measurements made at amortized cost using the effective interest rate method. Other investments Other investments consist of term deposits with original maturities of more than three months, and investments in mutual funds and equity securities. Investments in mutual funds and equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses, are recognized in OCI and presented within equity under “fair value reserve”. When an investment is derecognized, the cumulative gain or loss in equity is transferred to the consolidated income statement. Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is expected within one year or within the normal operating cycle of the business. After initial recognition, trade payables are recognized at amortized cost using the effective interest rate method. Trade receivables Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade receivables are classified as current assets if the collection is expected within one year or within the normal operating cycle of the business. After initial recognition, trade receivables are recognized at amortized cost using effective interest rate method. Debt instruments and other financial liabilities The Company initially recognizes debt instruments issued on the date that they originate. All other financial liabilities are recognized initially on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. These are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. Other non-derivative financial instruments Other non-derivative financial instruments are initially recognized at fair value. Subsequent to initial recognition, these assets are measured at amortized cost using the effective interest method, less any impairment losses. De-recognition of financial assets and liabilities The Company derecognizes a financial asset when the contractual right to the cash flows from that asset expires, or when it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing, at amortized cost, for the proceeds received. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid is recognized as profit or loss in the consolidated income statement. Offsetting financial assets and liabilities Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right and ability to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative financial instruments The Company is exposed to exchange rate risk which arises from its foreign exchange revenues and expenses, primarily in U.S. dollars, U.K. pounds sterling, Russian roubles, Brazilian reals, South African rands (“ZAR”), Romanian new leus (“RON”) and Euros, and foreign currency debt in U.S. dollars, Russian roubles, Ukrainian hryvnias and Euros. The Company uses foreign exchange forward contracts, option contracts and swap contracts (derivative financial instruments) to mitigate its risk of changes in foreign currency exchange rates. The Company also uses non-derivative financial instruments as part of its foreign currency exposure risk mitigation strategy. Hedges of highly probable forecast transactions The Company classifies its derivative financial instruments that hedge foreign currency risk associated with highly probable forecast transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recognized in OCI and presented within equity under “hedging reserve” and reclassified to the consolidated income statement as revenue in the period corresponding to the occurrence of such transactions. The ineffective portion of such cash flow hedges is recorded in the consolidated income statement as finance expense immediately. The Company also designates certain non-derivative financial liabilities, such as foreign currency borrowings from banks, as hedging instruments for hedge of foreign currency risk associated with highly probable forecast transactions. Accordingly, the Company applies cash flow hedge accounting to such relationships. Re-measurement gain/loss on such non-derivative financial liabilities is recognized in OCI and presented within equity under “hedging reserve” and reclassified to the consolidated income statement as revenue in the period corresponding to the occurrence of the forecast transactions. Upon initial designation of a hedging instrument, the Company formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80%-125% relative to the gain or loss on the hedged items. For cash flow hedges to be “highly effective”, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI, remains there until the forecast transaction occurs. If the forecast transaction is no longer expected to occur, then the balance in OCI is recognized immediately in the consolidated income statement. Hedges of recognized assets and liabilities Changes in the fair value of derivative contracts that economically hedge monetary assets and liabilities in foreign currencies, and for which no hedge accounting is applied, are recognized in the consolidated income statement. The changes in fair value of such derivative contracts, as well as the foreign exchange gains and losses relating to the monetary items, are recognized as part of “finance income/(expense), net” in the consolidated income statement. Hedges of changes in the interest rates Consistent with its risk management policy, the Company uses interest rate swaps to mitigate the risk of changes in interest rates. The Company does not use them for trading or speculative purposes. d. Business combinations The Company uses the acquisition method of accounting to account for business combinations that occurred on or after April 1, 2009. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another. Control exists when the Company is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive. The Company measures goodwill as of the applicable acquisition date at the fair value of the consideration transferred, including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount of the identifiable assets acquired and liabilities assumed. When the fair value of the net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, a bargain purchase gain is recognized immediately in the consolidated income statement. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Company to the previous owners of the acquiree, and equity interests issued by the Company. Consideration transferred also includes the fair value of any contingent consideration. Consideration transferred does not include amounts related to the settlement of pre-existing relationships. Any goodwill that arises on account of such business combination is tested annually for impairment. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and the settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recorded in the consolidated income statement. A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably. On an acquisition-by-acquisition basis, the Company recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Transaction costs that the Company incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence fees and other professional and consulting fees, are expensed as incurred. e. Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that are directly attributable to the construction or production of a qualifying asset are capitalized as part of the cost of that asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within “Other (income)/expense, net” in the consolidated income statement. The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the consolidated income statement as incurred. Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded at the carrying amount of the asset given up. Depreciation Depreciation is recognized in the consolidated income statement on a straight line basis over the estimated useful lives of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated. Leasehold improvements are depreciated over the period of the lease agreement or the useful life, whichever is shorter. Depreciation methods, useful lives and residual values are reviewed at each reporting date. Buildings - Factory and administrative buildings 20 - 50 years - Ancillary structures 3 - 15 years Plant and equipment 3 - 15 years Furniture, fixtures and office equipment 4 - 10 years Vehicles 4 - 5 years Computer equipment 3 - 5 years Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, including consultancy charges for implementing the software, is capitalized as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized over the estimated useful life of the software or the remaining useful life of the tangible fixed asset, whichever is lower. Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date and the cost of property, plant and equipment not ready to use before such date are disclosed under capital work-in-progress. Assets not ready for use are not depreciated. f. Goodwill and other intangible assets Recognition and measurement Goodwill Goodwill represents the excess of consideration transferred, together with the amount of non-controlling interest in the acquiree, over the fair value of the Company’s share of identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying value of the equity accounted investee. Other intangible assets Other intangible assets that are acquired by the Company and that have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Research and development Expenditures on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in the consolidated income statement when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if: · development costs can be measured reliably; · the product or process is technically and commercially feasible; · future economic benefits are probable; and · the Company intends to, and has sufficient resources, to complete development and to use or sell the asset. The expenditures to be capitalized include the cost of materials and other costs directly attributable to preparing the asset for its intended use. Other development expenditures are recognized in the consolidated income statement as incurred. As of March 31, 2018, none of the development expenditure amounts has met the aforesaid recognition criteria. Separate acquisition of intangible assets Payments to third parties that generally take the form of up-front payments and milestones for in-licensed products, compounds and intellectual property are capitalized. The Company’s criteria for capitalization of such assets are consistent with the guidance given in paragraph 25 of International Accounting Standard 38 (“IAS 38”) (i.e., the receipt of economic benefits embodied in each intangible asset separately purchased or licensed in the transaction is considered to be probable). In-Process Research and Development assets (“IPR&;D”) Acquired research and development intangible assets that are under development are recognized as In-Process Research and Development assets (“IPR&;D”). IPR&;D assets are not amortized, but evaluated for potential impairment on an annual basis or when there are indications that the carrying value may not be recoverable. Any impairment charge on such IPR&;D assets is recorded in the consolidated income statement under "Research and Development expenses". Subsequent expenditure Other intangible assets Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures, including expenditures on internally generated goodwill and brands, is recognized in the consolidated income statement as incurred. IPR&;D assets Subsequent expenditure on an IPR&;D project acquired separately or in a business combination and recognized as an intangible asset is: · · · Amortization Amortization is recognized in the consolidated income statement on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets that are not available for use are amortized from the date they are available for use. Trademarks 3 - 12 years Product related intangibles 5 - 15 years Customer-related intangibles 1 - 11 years Technology related intangibles 3 - 13 years Other intangibles 3 - 15 years The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at each reporting date. Intangible assets relating to products in development, other intangible assets not available for use and intangible assets having indefinite useful life are subject to impairment testing at each reporting date. All other intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable. All impairment losses are recognized immediately in the consolidated income statement. De-recognition of intangible assets Intangible assets are de-recognized either on their disposal or where no future economic benefits are expected from their use. Losses arising on such de-recognition are recorded in the consolidated income statement, and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as at the date of de-recognition. At the inception of each lease, the lease arrangement is classified as either a finance lease or an operating lease, based on the substance of the lease arrangement. Finance leases A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding lease liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Operating leases Other leases are operating leases, and the leased assets are not recognized on the Company’s statements of financial position. Payments made under operating leases are recognized in the consolidated income statement on a straight-line basis over the term of the lease. Operating lease incentives received from the landlord are recognized as a reduction of rental expense on a straight line basis over the lease term. Inventories consist of raw materials, stores and spares, work in progress and finished goods and are measured at the lower of cost and net realizable value. The cost of all categories of inventories is based on the weighted average method. Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of finished goods and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. Stores and spares consists of packing materials, engineering spares (such as machinery spare parts) and consumables (such as lubricants, cotton waste and oils), which are used in operating machines or consumed as indirect materials in the manufacturing process. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The factors that the Company considers in determining the provision for slow moving, obsolete and other non-saleable inventory include estimated shelf life, planned product discontinuances, price changes, aging of inventory and introduction of competitive new products, to the extent each of these factors impact the Company’s business and markets. The Company considers all these factors and adjusts the inventory provision to reflect its actual experience on a periodic basis. Financial assets A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value. Significant financial assets are tested for impairment on an individual basis. All impairment losses/(reversals of impairment losses) are recognized in the consolidated income statement. When the fair value of available-for-sale financial assets declines below acquisition cost and there is objective evidence that the asset is impaired, the cumulative loss that has been recognized in OCI is transferred to the consolidated income statement. An impairment loss may be reversed in subsequent periods, if the indicators for the impairment no longer exist. Such reversals are recognized in OCI. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment test is performed each year at March 31. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination is, for the purpose of impairment testing, allocated to cash-generating units that are expected to benefit from the synergies of the |
Determination of fair values
Determination of fair values | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities Explanatory | 4. Determination of fair values The Company’s accounting policies and disclosures require the determination of fair value, for certain financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Property, plant and equipment Property, plant and equipment, if acquired in a business combination or through an exchange of non-monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based on appraised market values and replacement cost. (ii) Intangible assets The fair value of brands, technology related intangibles, and patents and trademarks acquired in a business combination is based on the discounted estimated royalty payments that have been avoided as a result of these brands, technology related intangibles, patents or trademarks being owned (the “relief of royalty method”). The fair value of customer related, product related and other intangibles acquired in a business combination has been determined using the multi-period excess earnings method. Under this method, value is estimated as the present value of the benefits anticipated from ownership of the intangible assets in excess of the returns required or the investment in the contributory assets necessary to realize those benefits. (iii) Inventories The fair value of inventories acquired in a business combination is determined based on its estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories. (iv) Investments in equity and debt securities and units of mutual funds The fair value of available-for-sale marketable equity and debt securities is determined by reference to their quoted market price at the reporting date. For debt securities where quoted market prices are not available, fair value is determined using pricing techniques such as discounted cash flow analysis. In respect of investments in mutual funds, the fair values represent net asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from the investors. Accordingly, such net asset values are analogous to fair market value with respect to these investments, as transactions of these mutual funds are carried out at such prices between investors and the issuers of these units of mutual funds. (v) Derivatives The fair value of foreign exchange forward contracts is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). The fair value of foreign currency option and swap contracts and interest rate swap contracts is determined based on the appropriate valuation techniques, considering the terms of the contract. (vi) Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases the market rate of interest is determined by reference to similar lease agreements. In respect of the Company’s borrowings that have floating rates of interest, their fair value approximates carrying value. (vii) Share-based payment transactions The fair value of employee stock options is measured using the Black-Scholes-Merton valuation model. Measurement inputs include share price on grant date, exercise price of the instrument, expected volatility (based on weighted average historical volatility), expected life of the instrument (based on historical experience), expected dividends, and the risk free interest rate (based on government bonds). |
Segment reporting
Segment reporting | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Segment reporting | 5. Segment reporting The Chief Operating Decision Maker (“CODM”) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments, and does not review the total assets and liabilities of an operating segment. The Chief Executive Officer is the CODM of the Company. The Company’s reportable operating segments are as follows: ⋅ Global Generics; ⋅ Pharmaceutical Services and Active Ingredients (“PSAI”); and ⋅ Proprietary Products. Global Generics. This segment consists of the Company’s business of manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed either under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). This segment includes the operations of the Company’s biologics business. Pharmaceutical Services and Active Ingredients . This segment consists of the Company’s business of manufacturing and marketing active pharmaceutical ingredients and intermediates, also known as “API” or bulk drugs, which are the principal ingredients for finished pharmaceutical products. Active pharmaceutical ingredients and intermediates become finished pharmaceutical products when the dosages are fixed in a form ready for human consumption such as a tablet, capsule or liquid using additional inactive ingredients. This segment also includes the Company’s contract research services business and the manufacture and sale of active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. Proprietary Products. This segment consists of the Company’s business that focuses on the research, development, and manufacture of differentiated formulations. These products fall within the dermatology and neurology therapeutic areas and are marketed and sold through Promius® Pharma, LLC. Others. This includes the operations of the Company’s wholly-owned subsidiary, Aurigene Discovery Technologies Limited, a discovery stage biotechnology company developing novel and best-in-class therapies in the fields of oncology and inflammation and which works with established pharmaceutical and biotechnology companies in early-stage collaborations, bringing drug candidates from hit generation to pre-clinical development. Segment information: For the Year Ended March 31, Reportable segments Global Generics PSAI Proprietary Products 2018 2017 2016 2018 2017 2016 2018 2017 2016 Revenues (1) (2) Rs. 114,014 Rs. 115,409 Rs. 128,062 Rs. 21,992 Rs. 21,277 Rs. 22,379 Rs. 4,245 Rs. 2,363 Rs. 2,659 Gross profit Rs. 67,190 Rs. 71,079 Rs. 84,427 Rs. 4,446 Rs. 4,473 Rs. 4,931 Rs. 3,799 Rs. 1,951 Rs. 2,217 Selling, general and administrative expenses Research and development expenses Other (income)/expense, net Results from operating activities Finance (expense)/income, net Share of profit of equity accounted investees, net of tax Profit before tax Tax expense Profit for the year Segment information: For the Year Ended March 31, Reportable segments Others Total 2018 2017 2016 2018 2017 2016 Revenues (1) (2) Rs. 1,777 Rs. 1,760 Rs. 1,608 Rs. 142,028 Rs. 140,809 Rs. 154,708 Gross profit Rs. 869 Rs. 853 Rs. 706 Rs. 76,304 Rs. 78,356 Rs. 92,281 Selling, general and administrative expenses 46,910 46,372 45,702 Research and development expenses 18,265 19,551 17,834 Other (income)/expense, net (788 ) (1,065 ) (874 ) Results from operating activities Rs. 11,917 Rs. 13,498 Rs. 29,619 Finance (expense)/income, net 2,080 806 (2,708 ) Share of profit of equity accounted investees, net of tax 344 349 229 Profit before tax Rs. 14,341 Rs. 14,653 Rs. 27,140 Tax expense 4,535 2,614 7,127 Profit for the year Rs. 9,806 Rs. 12,039 Rs. 20,013 (1) Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). (2) Effective July 1, 2017, a Goods and Services Tax (“GST”) was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 Analysis of revenues by geography: For the Year Ended March 31, Country 2018 2017 2016 India Rs. 25,209 Rs. 24,927 Rs. 23,913 United States 68,124 69,816 81,154 Russia 12,610 11,547 10,640 Others 36,085 34,519 39,001 Rs. 142,028 Rs. 140,809 Rs. 154,708 Analysis of revenues within the Global Generics segment: For the Year Ended March 31, 2018 2017 2016 Gastrointestinal Rs. 19,153 Rs. 21,190 Rs. 21,253 Oncology 16,999 17,054 19,410 Cardiovascular 16,501 15,553 19,009 Pain Management 12,898 14,323 16,240 Central Nervous System 12,509 12,749 14,739 Anti-Infective 6,557 7,189 12,711 Others 29,397 27,351 24,700 Total Rs. 114,014 Rs. 115,409 Rs. 128,062 Analysis of revenues within the PSAI segment: For the Year Ended March 31, 2018 2017 2016 Cardiovascular Rs. 6,191 Rs. 5,078 Rs. 5,077 Pain Management 3,228 3,290 4,085 Central Nervous System 2,331 2,758 3,021 Anti-Infective 1,968 1,859 2,015 Dermatology 1,606 1,606 1,485 Oncology 1,650 1,534 2,570 Others 5,018 5,152 4,126 Total Rs. 21,992 Rs. 21,277 Rs. 22,379 Analysis of assets by geography: As of March 31, Country 2018 2017 India Rs. 57,818 Rs. 57,997 Switzerland 32,287 31,543 United States 8,361 8,660 Germany 2,876 3,220 Others 7,515 6,213 Rs. 108,857 Rs. 107,633 For the Year Ended March 31, Country 2018 2017 India Rs. 7,807 Rs. 10,545 Switzerland 1,100 26,639 United States 723 2,657 Others 1,284 728 Rs. 10,914 Rs. 40,569 For the Year Ended March 31, 2018 2017 2016 Global Generics Rs. 3,606 Rs. 3,381 Rs. 2,742 PSAI 2,923 2,674 2,437 Proprietary Products - - - Others 66 62 62 Rs. 6,595 Rs. 6,117 Rs. 5,241 Information about major customers Revenues from two customers of the Company's Global Generics segment were Rs.13,486 and Rs.10,755, representing approximately 9% and 8%, respectively, of the Company’s total revenues for the year ended March 31, 2018. Revenues from one customer of the Company's Global Generics segment were Rs.22,760, representing approximately 16% of the Company’s total revenues for the year ended March 31, 2017. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 6. Property, plant and equipment Particulars Land Buildings Plant and Computer Furniture, Vehicles Total Gross carrying value Balance as at April 1, 2016 Rs. 3,814 Rs. 19,095 Rs. 54,393 Rs. 2,246 Rs. 2,265 Rs. 777 Rs. 82,590 Additions 98 2,395 9,090 566 205 96 12,450 Disposals - (34 ) (521 ) (70 ) (19 ) (120 ) (764 ) Effect of changes in foreign exchange rates (44 ) (165 ) (533 ) (15 ) (23 ) (2 ) (782 ) Balance as at March 31, 2017 Rs. 3,868 Rs. 21,291 Rs. 62,429 Rs. 2,727 Rs. 2,428 Rs. 751 Rs. 93,494 Balance as at April 1, 2017 Rs. 3,868 Rs. 21,291 Rs. 62,429 Rs. 2,727 Rs. 2,428 Rs. 751 Rs. 93,494 Additions 324 1,030 5,458 313 194 293 7,612 Disposals (7 ) (42 ) (1,071 ) (125 ) (29 ) (275 ) (1,549 ) Effect of changes in foreign exchange rates 31 162 399 15 21 1 629 Balance as at March 31, 2018 Rs. 4,216 Rs. 22,441 Rs. 67,215 Rs. 2,930 Rs. 2,614 Rs. 770 Rs. 100,186 Accumulated Depreciation Balance as at April 1, 2016 Rs. - Rs. 4,302 Rs. 27,982 Rs. 1,553 Rs. 1,953 Rs. 389 Rs. 36,179 Depreciation for the year - 896 5,971 378 231 120 7,596 Impairment loss 38 214 69 10 - - 331 Disposals - (23 ) (499 ) (67 ) (14 ) (116 ) (719 ) Effect of changes in foreign exchange rates - (71 ) (298 ) (13 ) (24 ) (1 ) (407 ) Balance as at March 31, 2017 Rs. 38 Rs. 5,318 Rs. 33,225 Rs. 1,861 Rs. 2,146 Rs. 392 Rs. 42,980 Balance as at April 1, 2017 Rs. 38 Rs. 5,318 Rs. 33,225 Rs. 1,861 Rs. 2,146 Rs. 392 Rs. 42,980 Depreciation for the year - 972 6,455 373 240 245 8,285 Disposals - (29 ) (955 ) (105 ) (39 ) (264 ) (1,392 ) Effect of changes in foreign exchange rates - 82 260 12 17 1 372 Balance as at March 31, 2018 Rs. 38 Rs. 6,343 Rs. 38,985 Rs. 2,141 Rs. 2,364 Rs. 374 Rs. 50,245 Net carrying value As at April 1, 2016 Rs. 3,814 Rs. 14,793 Rs. 26,411 Rs. 693 Rs. 312 Rs. 388 Rs. 46,411 As at March 31, 2017 Rs. 3,830 Rs. 15,973 Rs. 29,204 Rs. 866 Rs. 282 Rs. 359 Rs. 50,514 Add: Capital-work-in-progress Rs. 6,646 Total as at March 31, 2017 Rs. 57,160 As at March 31, 2018 Rs. 4,178 Rs. 16,098 Rs. 28,230 Rs. 789 Rs. 250 Rs. 396 Rs. 49,941 Add: Capital-work-in-progress Rs. 7,928 Total as at March 31, 2018 Rs. 57,869 Impairment losses recorded for the year ended March 31, 2017 During the three months ended March 31, 2017, the Company experienced a significant decline in the expected cash flows of some of the products forming part of a cash generating unit ("CGU") under its Global Generics segment. Consequently, the Company, following the guidance under IAS 36 "Impairment of assets", determined that the estimated recoverable amount of the CGU is lower than its carrying cost. Accordingly, an amount of Rs.335 (including Rs.4 towards capital-work-in-progress) was recorded as an impairment for the three months ended March 31, 2017. Such impairment charge was recognized and presented under "cost of revenues". The recoverable amounts of the above cash generating units have been assessed using a value-in-use model. Key assumptions upon which the Company has based its determinations of value-in-use include: a) Estimated cash flows for the remaining useful life, based on management’s projections. b) The terminal value is considered to be zero. c) The post-tax discount rates used are based on the Company’s weighted average cost of capital. The post-tax discount rate used was 6.68%. The pre-tax discount rate was 9.02%. Capital commitments As of March 31, 2018 and 2017, the Company was committed to spend Rs.3,788 and Rs.5,256, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchase commitments. Interest capitalization During the years ended March 31, 2018 and 2017, the Company capitalized interest cost of Rs.71 and Rs.65, respectively, with respect to qualifying assets. The rate for capitalization of interest cost for the years ended March 31, 2018 and 2017 was approximately 2.76% and 2.14%, respectively. Assets acquired under finance leases Property, plant and equipment include Rs.502 and Rs.511 of assets acquired (net of accumulated depreciation) under finance leases as of March 31, 2018 and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Goodwill | 7. Goodwill Goodwill arising upon business combinations is not amortized but tested for impairment at least annually or more frequently if there is any indication that the cash generating unit to which goodwill is allocated is impaired. As of March 31, 2018 2017 Opening balance, gross Rs. 20,026 Rs. 20,122 Goodwill arising on business combinations during the year (1) - 10 Effect of translation adjustments 193 (106 ) Impairment loss (2) (16,274 ) (16,274 ) Closing balance Rs. 3,945 Rs. 3,752 (1) Rs.10 as of March 31, 2017 represents goodwill arising from the acquisition of Imperial Credit Private Limited. (2) The impairment loss of Rs.16,274 includes Rs.16,003 pertaining to the Company’s German subsidiary, betapharm Arzneimittel GmbH, which is part of the Company’s Global Generics segment. This impairment loss was recorded for the years ended March 31, 2009 and 2010. For the purpose of impairment testing, goodwill is allocated to a cash generating unit, representing the lowest level within the Company at which goodwill is monitored for internal management purposes and which is not higher than the Company’s operating segment. As of March 31, 2018 2017 PSAI-Active Pharmaceutical Operations Rs. 997 Rs. 997 Global Generics-Complex Injectables 1,339 1,148 Global Generics-North America Operations 995 995 Global Generics-Branded Formulations 491 491 Others 123 121 Rs. 3,945 Rs. 3,752 The recoverable amounts of the above cash generating units have been assessed using a value-in-use model. Value in use is generally calculated as the net present value of the projected post-tax cash flows plus a terminal value of the cash generating unit to which the goodwill is allocated. Initially, a post-tax discount rate is applied to calculate the net present value of the post-tax cash flows. Key assumptions upon which the Company has based its determinations of value-in-use include: a) Estimated cash flows for five years, based on management’s projections. b) A terminal value arrived at by extrapolating the last forecasted year cash flows to perpetuity, using a constant long-term growth rate of 0%. This long-term growth rate takes into consideration external macroeconomic sources of data. Such long-term growth rate considered does not exceed that of the relevant business and industry sector. c) The after tax discount rates used are based on the Company’s weighted average cost of capital. d) The after tax discount rates used range from 6.97% to 13.74% for various cash generating units. The pre-tax discount rates range from 9.32% to 33.43%. The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Other intangible assets | 8. Other intangible assets Trademarks Product Technology Customer Others Total Gross carrying amount Balance as at April 1, 2016 Rs. 10,178 Rs. 37,740 Rs. 2,847 Rs. 1,100 Rs. 2,295 Rs. 54,160 Additions (1) 1,148 27,419 27 - 611 29,205 De-recognitions (2) (32 ) (269 ) - (706 ) (124 ) (1,131 ) Effect of changes in foreign exchange rates (617 ) (2,265 ) (230 ) (37 ) (19 ) (3,168 ) Balance as at March 31, 2017 Rs. 10,677 Rs. 62,625 Rs. 2,644 Rs. 357 Rs. 2,763 Rs. 79,066 Balance as at April 1, 2017 Rs. 10,677 Rs. 62,625 Rs. 2,644 Rs. 357 Rs. 2,763 Rs. 79,066 Additions - 2,377 - - 228 2,605 Effect of changes in foreign exchange rates 1,162 2,496 206 - 6 3,870 Balance as at March 31, 2018 Rs. 11,839 Rs. 67,498 Rs. 2,850 Rs. 357 Rs. 2,997 Rs. 85,541 Amortization/impairment loss Balance as at April 1, 2016 Rs. 7,686 Rs. 22,599 Rs. 1,253 Rs. 1,085 Rs. 741 Rs. 33,364 Amortization for the year 578 2,304 443 15 341 3,681 Impairment loss 32 40 38 - - 110 De-recognitions (2) (32 ) (269 ) - (706 ) (124 ) (1,131 ) Effect of changes in foreign exchange rates (457 ) (1,215 ) (159 ) (37 ) (15 ) (1,883 ) Balance as at March 31, 2017 Rs. 7,807 Rs. 23,459 Rs. 1,575 Rs. 357 Rs. 943 Rs. 34,141 Balance as at April 1, 2017 Rs. 7,807 Rs. 23,459 Rs. 1,575 Rs. 357 Rs. 943 Rs. 34,141 Amortization for the year 591 2,145 403 - 286 3,425 Impairment loss - 53 - - - 53 Effect of changes in foreign exchange rates 885 2,204 167 - 1 3,257 Balance as at March 31, 2018 Rs. 9,283 Rs. 27,861 Rs. 2,145 Rs. 357 Rs. 1,230 Rs. 40,876 Net carrying amount As at April 1, 2016 Rs. 2,492 Rs. 15,141 Rs. 1,594 Rs. 15 Rs. 1,554 Rs. 20,796 As at March 31, 2017 Rs. 2,870 Rs. 39,166 Rs. 1,069 Rs. - Rs. 1,820 Rs. 44,925 As at March 31, 2018 Rs. 2,556 Rs. 39,637 Rs. 705 Rs. - Rs. 1,767 Rs. 44,665 (1) Additions during the year ended March 31, 2017 primarily consists of: (a) Rs.23,366, representing the consideration paid to Teva Pharmaceutical Industries Limited (“Teva”) and an affiliate of Allergan Plc (“Allergan”) to acquire eight Abbreviated New Drug Applications (“ANDAs”) in the United States (refer to Note 33 of these consolidated financial statements for further details); and (b) Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). (2) During the year ended March 31, 2017, the Company derecognized certain intangible assets which were fully amortized and from which no future economic benefits were expected, either from use or from their disposal. Accordingly, an amount of Rs.1,131 was reduced both from gross carrying amount and accumulated amortization. In-process research and development assets (“IPR&;D”): As of March 31, 2018 2017 Opening balance Rs. 27,150 Rs. 1,096 Add: Additions during the year (1) 523 26,858 Less: Capitalizations during the year (2) (778 ) - Less: Impairments during the year (3) - (38 ) Effect of changes in exchange rates 132 (766 ) Closing balance Rs. 27,027 Rs. 27,150 (1) Additions during the year ended March 31, 2017 primarily consists of: a. Rs.23,366, representing the consideration paid to Teva and an affiliate of Allergan to acquire eight ANDAs in the United States (refer to Note 33 of these consolidated financial statements for further details); and b. Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). (2) ezitimibe and simvastatin tablets, representing one of the eight ANDAs acquired from Teva, was launched during the three months ended June 30, 2017. Accordingly, the Company reclassified the amount from IPR&;D to product related intangibles. (3) Refer to “Impairment losses recorded for the year ended March 31, 2017” in this Note 8 for further details. Amortization of other intangible assets: For the Year Ended March 31, 2018 2017 2016 Selling, general and administrative expenses Rs. 3,029 Rs. 3,198 Rs. 3,262 Cost of revenues 264 300 110 Research and development expenses 132 183 98 Rs. 3,425 Rs. 3,681 Rs. 3,470 Interest capitalization During the years ended March 31, 2018 and 2017, the Company capitalized interest cost of Rs.458 and Rs.258, respectively, with respect to certain qualifying assets. The rate for capitalization of interest cost for the years ended March 31, 2018 and 2017 ranged from 0.81% to 2.76% and from 0.91% to 2.14%, respectively. Impairment loss on other intangible assets: For the Year Ended March 31, 2018 2017 2016 Selling, general and administrative expenses Rs. 53 Rs. 72 Rs. 61 Research and development expenses - 38 133 Cost of revenues - - - Rs. 53 Rs. 110 Rs. 194 Impairment losses recorded for the year ended March 31, 2018 As a result of the Company’s decision to discontinue a few products pertaining to its Global Generics segment, product related intangibles of Rs.20 and Rs.33 were recorded as impairment loss for the year ended March 31, 2018 under “Selling, general and administrative expenses” in the consolidated income statement. Impairment losses recorded for the year ended March 31, 2017 As a result of the Company’s decision to discontinue further development of certain IPR&;D assets pertaining to its Proprietary Products segment and PSAI segment, Rs.27 and Rs.11, respectively, were recorded as impairment loss for the year ended March 31, 2017 under “Research and development expenses” in the consolidated income statement. The balance impairment loss of Rs.72 pertains to a write down of certain brands and product related intangibles forming part of the Company’s Global Generics segment. The same was recorded under “Selling, general and administrative expenses” in the consolidated income statement. Impairment losses recorded for the year ended March 31, 2016 As a result of the Company’s decision to discontinue further development of certain IPR&;D assets pertaining to its Proprietary Products segment and Global Generics segment, Rs.100 and Rs.33, respectively, was recorded as impairment loss for the year ended March 31, 2016 under “Research and development expenses” in the consolidated income statement. The balance impairment loss of Rs.61 pertains to a write down of certain customer and product related intangibles forming part of the Company’s Global Generics segment, which was recorded under “Selling, general and administrative expenses” in the consolidated income statement. |
Investment in equity accounted
Investment in equity accounted investees | 12 Months Ended |
Mar. 31, 2018 | |
Share of profit (loss) of associates and joint ventures accounted for using equity method [abstract] | |
Investment in equity accounted investees | 9. Investment in equity accounted investees Kunshan Rotam Reddy Pharmaceuticals Co. Limited (“Reddy Kunshan”) is engaged in manufacturing and marketing of finished dosages in China. The Company’s interest in Reddy Kunshan was 51.3% as of March 31, 2018 and 2017. Four directors of the Company are on the board of Reddy Kunshan, which consists of eight directors. Under the terms of the joint venture agreement, all major decisions with respect to operating activities, significant financing and other activities are taken by the approval of at least five of the eight directors of Reddy Kunshan’s board. As the Company does not control Reddy Kunshan’s board and the other partners have significant participation rights, the Company’s interest in Reddy Kunshan has been accounted for under the equity method of accounting under IFRS 11. As of/for the Year Ended March 31, 2018 2017 2016 Ownership 51.3 % 51.3 % 51.3 % Total current assets Rs. 4,933 Rs. 3,385 Rs. 2,876 Total non-current assets 347 296 377 Total assets Rs. 5,280 Rs. 3,681 Rs. 3,253 Equity Rs. 3,600 Rs. 2,603 Rs. 2,129 Total current liabilities 1,680 1,078 1,124 Total equity and liabilities Rs. 5,280 Rs. 3,681 Rs. 3,253 Revenues Rs. 5,482 Rs. 4,980 Rs. 4,246 Expenses 4,792 4,295 3,800 Profit for the year Rs. 690 Rs. 685 Rs. 446 Company’s share of profits for the year Rs. 354 Rs. 351 Rs. 229 Carrying value of the Company’s investment (1) Rs. 2,029 Rs. 1,519 Rs. 1,309 Translation adjustment arising out of translation of foreign currency balances Rs. 255 Rs. 97 Rs. 239 (1) Includes Rs.181 representing the goodwill on acquisition of investment. |
Other investments
Other investments | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of investments other than investments accounted for using equity method [Abstract] | |
Other investments | 10. Other investments Other investments consist of investments in units of mutual funds, bonds, commercial paper, equity securities and term deposits (i.e., certificates of deposit having an original maturity period exceeding 3 months) with banks. The details of such investments as of March 31, 2018 are as follows: Cost Gain recognized Fair value/ amortized cost (2) In units of mutual funds Rs. 14,703 Rs. 75 Rs. 14,778 In equity securities (1) 2,703 (1,508 ) 1,195 In bonds 4,633 - 4,633 In commercial paper 232 - 232 Term deposits with banks 41 - 41 Rs. 22,312 Rs. (1,433 ) Rs. 20,879 Current portion In units of mutual funds Rs. 14,703 Rs. 75 Rs. 14,778 In bonds 3,279 - 3,279 In commercial paper 232 - 232 Term deposits with banks 41 - 41 Rs. 18,255 Rs. 75 Rs. 18,330 Non-current portion In equity securities (1) 2,703 (1,508 ) 1,195 In bonds 1,354 - 1,354 Rs. 4,057 Rs. (1,508 ) Rs. 2,549 (1) Primarily represents the shares of Curis, Inc. Refer to Note 31 of these consolidated financial statements for further details. (2) Interest accrued but not due on bonds, commercial paper and term deposits with banks is included in other current assets. As of March 31, 2017, the details of such investments were as follows: Cost Gain recognized Fair value/ amortized cost (2) In units of mutual funds Rs. 9,677 Rs. 1,464 Rs. 11,141 In equity securities (1) 2,703 2,260 4,963 Term deposits with banks 3,403 - 3,403 Rs. 15,783 Rs. 3,724 Rs. 19,507 Current portion In units of mutual funds Rs. 9,464 Rs. 1,417 Rs. 10,881 Term deposits with banks 3,389 - 3,389 Rs. 12,853 Rs. 1,417 Rs. 14,270 Non-current portion In units of mutual funds Rs. 213 Rs. 47 Rs. 260 In equity securities (1) 2,703 2,260 4,963 Term deposits with banks 14 - 14 Rs. 2,930 Rs. 2,307 Rs. 5,237 (1) Primarily represents the shares of Curis, Inc. Refer to Note 31 of these consolidated financial statements for further details. (2) Interest accrued but not due on term deposits with banks is included in other current assets. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2018 | |
Classes of current inventories [abstract] | |
Inventories | 11. Inventories As of March 31, 2018 2017 Raw materials Rs. 7,294 Rs. 7,226 Packing materials, stores and spares 2,394 2,315 Work-in-progress 7,175 6,614 Finished goods 12,226 12,374 Rs. 29,089 Rs. 28,529 For the Year Ended March 31, 2018 2017 2016 Raw materials, consumables and changes in finished goods and work in progress Rs. 32,410 Rs. 27,165 Rs. 30,305 Inventory write-downs 2,946 3,085 2,746 |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Mar. 31, 2018 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 12. Trade and other receivables As of March 31, 2018 2017 Current Trade and other receivables, gross Rs. 41,569 Rs. 38,926 Less: Allowance for doubtful trade and other receivables (952 ) (861 ) Trade and other receivables, net Rs. 40,617 Rs. 38,065 Non-current Trade and other receivables, gross (1) Rs. 169 Rs. 206 Less: Allowance for doubtful trade and other receivables - - Trade and other receivables, net Rs. 169 Rs. 206 (1) Represents amounts receivable pursuant to an out-licensing arrangement with a customer. As these amounts are not expected to be realized within twelve months from the end of the reporting date, they are disclosed as non-current The Company maintains an allowance for impairment of doubtful accounts based on financial condition of the customer, aging of the customer accounts receivable and historical experience of collections from customers. For the Year Ended March 31, 2018 2017 Balance at the beginning of the year Rs. 861 Rs. 789 Provision for doubtful trade and other receivables, net 146 138 Trade and other receivables written off and exchange differences (55 ) (66 ) Balance at the end of the year Rs. 952 Rs. 861 |
Other assets
Other assets | 12 Months Ended |
Mar. 31, 2018 | |
Assets [Abstract] | |
Other assets | 13. Other assets As of March 31, 2018 2017 Current Balances and receivables from statutory authorities (1) Rs. 6,741 Rs. 4,151 Export benefits receivable (2) 2,842 3,521 Prepaid expenses 761 712 Others (3) 3,957 3,586 Rs. 14,301 Rs. 11,970 Non-current Deposits Rs. 664 Rs. 651 Others 366 332 Rs. 1,030 Rs. 983 (1) Balances and receivables from statutory authorities primarily consist of amounts receivable from the goods and service tax (“GST”), excise duty, value added tax and customs authorities of India and the unutilized GST input tax credits, excise duty, service tax and value added tax input credits (subsumed under GST input tax credits effective as of July 1, 2017) on purchases. These are regularly utilized to offset the GST liability (or, prior to July 1, 2017, liability for excise duty, value added tax, etc.) on goods produced by and services provided by the Company. Accordingly, these balances have been classified as current assets. (2) Export benefits receivables primarily consist of amounts receivable from various government authorities of India towards incentives on export sales made by the Company. (3) Others primarily includes advances given to vendors and employees, interest accrued but not due on investments, and insurance claims receivable. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Mar. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 14. Cash and cash equivalents As of March 31, 2018 2017 Cash balances Rs. 2 Rs. 3 Balances with banks (1) (2) 1,454 1,131 Term deposits with banks (original maturities up to 3 months) 1,182 2,732 Cash and cash equivalents in the statement of financial position 2,638 3,866 Bank overdrafts used for cash management purposes 96 87 Cash and cash equivalents in the statement of cash flow Rs. 2,542 Rs. 3,779 (1) Balances with banks as of March 31, 2018 included restricted cash of Rs.86, which consisted of: ⋅ Rs.72, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; and ⋅ Rs.14, representing other restricted cash amounts. (2) Balances with banks as of March 31, 2017 included restricted cash of Rs.177, which consisted of: ⋅ Rs.64, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; ⋅ Rs.38, representing cash and cash equivalents of the Company’s subsidiary in Venezuela, which are subject to foreign exchange controls (refer to Note 38 of these consolidated financial statements for further details); ⋅ Rs.49, representing the portion of the purchase consideration deposited in an escrow account, pursuant to an acquisition of an intangible asset; and ⋅ Rs.26, representing other restricted cash amounts. |
Equity
Equity | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Share Capital Explanatory [Abstract] | |
Equity | 15. Equity For the Year Ended For the Year Ended Number Amount Number Amount Authorized share capital 240,000,000 Rs. 1,200 240,000,000 Rs. 1,200 Fully paid up share capital Opening number of equity shares/share capital 165,741,713 Rs. 829 170,607,653 Rs. 853 Add: Issue of equity shares on exercise of options 169,194 1 211,564 1 Less: Buyback of equity shares - - (5,077,504 ) (25 ) Closing number of equity shares/share capital 165,910,907 Rs. 830 165,741,713 Rs. 829 The Company presently has only one class of equity shares and the par value of each share is Rs.5. For all matters submitted to vote in a shareholders meeting of the Company, every holder of an equity share, as reflected in the records of the Company as on the record date set for the shareholders meeting, shall have one vote in respect of each share held. Should the Company declare and pay any dividends, such dividends will be paid in Indian rupees to each holder of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date. Indian law on foreign exchange governs the remittance of dividends outside India. In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date. Final dividends on equity shares (including dividend tax on distribution of such dividends) are recorded as a liability on the date of their approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors. For the Year Ended March 31, 2018 2017 2016 Dividend per share Rs. 20 Rs. 20 Rs. 20 Dividend distribution tax on the dividend paid 675 78 695 Dividend paid during the year 3,317 3,312 3,411 Buyback of equity shares The Board of Directors of the Company, in their meeting held on February 17, 2016, approved a proposal to buy back equity shares of the Company, subject to approval by the Company’s shareholders, for an aggregate amount not exceeding Rs.15,694 and at a price not exceeding Rs.3,500 per equity share. The plan involved the purchase of such shares from shareholders of the Company (including persons who become shareholders by cancelling American Depository Shares and receiving underlying equity shares, and excluding the promoters and promoter group of the Company) under the open market route in accordance with the provisions contained in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 and the Companies Act, 2013 and rules made thereunder. The shares bought back under this plan were required to be extinguished in accordance with the provisions of the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 and the Companies Act, 2013 and rules made thereunder. The Company’s shareholders approved the buyback plan on April 1, 2016, and implementation of the buyback plan commenced on April 18, 2016 and ended on June 28, 2016. Under this plan, the Company bought back and extinguished 5,077,504 equity shares for an aggregate purchase price of Rs.15,694. The aggregate face value of the equity shares bought back was Rs.25. Proposed dividend At the Company’s Board of Directors’ meeting held on May 22, 2018, the Board proposed a dividend of Rs.20 per share and aggregating to Rs.3,318, which is subject to the approval of the Company’s shareholders. Upon such approval, there will be an additional cash outflow of Rs.682 for payment of dividend distribution tax thereon. |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2018 | |
Basic and diluted earnings per share [abstract] | |
Earnings per share | 16. Earnings per share The calculation of basic and diluted earnings per share for the years ended March 31, 2018, 2017 and 2016 was based on the profit attributable to equity shareholders of Rs.9,806, Rs.12,039 and Rs.20,013, respectively. For the Year Ended March 31, 2018 2017 2016 Issued equity shares as at April 1 165,741,713 170,607,653 170,381,174 Effect of shares issued on exercise of stock options 103,695 126,277 166,469 Effect of buyback of equity shares - (4,084,987 ) - Weighted average number of equity shares at March 31 165,845,408 166,648,943 170,547,643 Earnings per share Basic Rs. 59.13 Rs. 72.24 Rs. 117.34 For the Year Ended March 31, 2018 2017 2016 Weighted average number of equity shares (Basic) 165,845,408 166,648,943 170,547,643 Dilutive effect of stock options outstanding 340,144 348,733 525,137 Weighted average number of equity shares (Diluted) 166,185,552 166,997,675 171,072,780 Earnings per share Diluted Rs. 59.00 Rs. 72.09 Rs. 116.98 |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Mar. 31, 2018 | |
Borrowings [abstract] | |
Loans and borrowings | 17. Loans and borrowings Short-term borrowings Short-term borrowings primarily consist of “packing credit” loans drawn by the parent company and other unsecured loans drawn by certain of its subsidiaries in Switzerland, the United States, Russia and Ukraine. Short term borrowings consist of the following: As at March 31, 2018 2017 Packing credit borrowings Rs. 21,008 Rs. 18,699 Other foreign currency borrowings 4,458 24,840 Rs. 25,466 Rs. 43,539 The interest rate profile of short-term borrowings from banks is given below: As at March 31, 2018 2017 Currency (1) Interest Rate Currency Interest Rate Packing credit borrowings USD 1 Month LIBOR + (30) to 30 bps USD 1 Month LIBOR + (30) to 1 bps - - USD 0.01 % - - INR T-Bill + 30bps INR 6.00 % INR 6.92% to 6.95 % RUB 6.75 % RUB 9.95 % Other foreign currency borrowings USD 1 Month/3 Months LIBOR + 65 to 85 bps USD 1 Month LIBOR + 40 to 60 bps RUB 8.20 % RUB 10.48 % UAH 18.00 % - - (1) “INR” means Indian rupees, “RUB” means Russian roubles, and “UAH” means Ukrainian hryvnia. Short-term borrowing by Dr. Reddy’s Laboratories, SA During the three months ended September 30, 2016, Dr. Reddy’s Laboratories, SA, one of the Company’s subsidiaries in Switzerland (the “Swiss Subsidiary”) borrowed U.S.$350 from certain institutional lenders at an interest rate ranging from Libor plus 0.45% to 0.60% per annum. The borrowing was solely for the purpose of the acquisition of eight ANDAs from Teva and an affiliate of Allergan in the United States (refer to Note 33 of these consolidated financial statements for additional details). The entire short-term borrowing of U.S.$350 was repaid during the three months ended June 30, 2017. Long-term borrowings Long-term borrowings consist of the following: As at March 31 2018 2017 Foreign currency borrowing by the parent company Rs. 4,880 Rs. 4,852 Foreign currency borrowing by the Swiss Subsidiary 16,185 - Foreign currency borrowing by the Company’s German subsidiary, Reddy Holding GmbH 3,394 - Obligations under finance leases 693 707 Rs. 25,152 Rs. 5,559 Current portion Obligations under finance leases Rs. 63 Rs. 110 Rs. 63 Rs. 110 Non-current portion Foreign currency borrowing by the parent company Rs. 4,880 Rs. 4,852 Foreign currency borrowing by the Swiss Subsidiary 16,185 - Foreign currency borrowing by the Company’s German subsidiary, Reddy Holding GmbH 3,394 - Obligations under finance leases 630 597 Rs. 25,089 Rs. 5,449 Long-term bank loan of the parent company During the year ended March 31, 2014, the Company borrowed the sum of U.S.$150. The Company was required to repay the loan in five equal quarterly installments commencing at the end of the 54 th th The Company repaid U.S.$75 of this loan on November 28, 2016, and is required to repay the U.S.$75 balance of the loan in 3 equal installments at the end of the 40 th rd th Long-term bank loan of subsidiary companies During the three months ended June 30, 2017, the Company entered into a refinancing arrangement with certain financial institutions relating to the short-term borrowing of U.S.$350 in the Swiss Subsidiary. Pursuant to such arrangement, the Company repaid the short-term borrowing of U.S.$350 and incurred long-term borrowings of U.S.$250 in the Swiss Subsidiary and EUR 42 in the Company’s German subsidiary, Reddy Holding GmbH. The aforesaid loans are repayable over a 36 month period commencing at the end of the 24 th th All of the foregoing loan agreements impose various financial covenants on the Company. As of March 31, 2018, the Company was in compliance with all such financial covenants. Undrawn lines of credit from bankers The Company had undrawn lines of credit of Rs.24,046 and Rs.21,156 as of March 31, 2018 and 2017, respectively, from its banks for working capital requirements. The Company has the right to draw upon these lines of credit based on its working capital requirements. The interest rate profiles of long-term borrowings (other than obligations under finance leases) as at March 31, 2018 and 2017 were as follows: As at March 31, 2018 2017 Currency Interest Rate Currency Interest Rate Foreign currency borrowings USD 1 Month LIBOR + 45 to 82.7 bps USD 1 Month LIBOR + 82.7 bps EUR 0.81 % - - The aggregate maturities of long-term loans and borrowings, based on contractual maturities, as of March 31, 2018 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2019 Rs. - Rs. 63 Rs. 63 2020 4,064 59 4,123 2021 6,346 61 6,407 2022 1,131 66 1,197 2023 13,035 71 13,106 Thereafter - 373 373 Rs. 24,576 Rs. 693 Rs. 25,269 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.117. The aggregate maturities of long term loans and borrowings, based on contractual maturities, as of March 31, 2017 were as follows: Maturing in the year ending March 31, Foreign Obligations Total 2018 Rs. - Rs. 110 Rs. 110 2019 - 56 56 2020 1,610 51 1,661 2021 3,242 53 3,295 2022 - 57 57 Thereafter - 380 380 Rs. 4,852 Rs. 707 Rs. 5,559 Obligations under finance leases The Company has leased buildings and vehicles under finance leases. Future minimum lease payments under finance leases as at March 31, 2018 were as follows: Particulars Present value of Interest Future Not later than one year Rs. 63 Rs. 57 Rs. 120 Between one and five years 257 159 416 More than five years 373 66 439 Rs. 693 Rs. 282 Rs. 975 Future minimum lease payments under finance leases as at March 31, 2017 were as follows: Particulars Present value of Interest Future Not later than one year Rs. 110 Rs. 77 Rs. 187 Between one and five years 217 149 366 More than five years 380 84 464 Rs. 707 Rs. 310 Rs. 1,017 Reconciliation of liabilities arising from financing activities Particulars Long-term borrowings (1) Short-term Total Opening balance Rs. 5,559 Rs. 43,539 Rs. 49,098 Borrowings made during the year 19,065 47,564 66,629 Borrowings repaid during the year (158 ) (65,589 ) (65,747 ) Currency translation adjustments 747 (48 ) 699 Others (61 ) - (61 ) Closing balance Rs. 25,152 Rs. 25,466 Rs. 50,618 (1) Including current portion. |
Employee benefits
Employee benefits | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of defined benefit plans [abstract] | |
Employee benefits | 18. Employee benefits Total employee benefit expenses, including share-based payments, incurred during the years ended March 31, 2018, 2017 and 2016 amounted to Rs.32,149, Rs.31,069 and Rs.31,174, respectively. Gratuity benefits provided by the parent company In accordance with applicable Indian laws, the Company has a defined benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee’s last drawn salary and the years of employment with the Company. Effective September 1, 1999, the Company established the Dr. Reddy’s Laboratories Gratuity Fund (the “Gratuity Fund”) to fund the Gratuity Plan. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Gratuity Fund. Trustees administer the contributions made to the Gratuity Fund. Amounts contributed to the Gratuity Fund are invested in bonds issued by the Government of India and in debt securities and equity securities of Indian companies. For the Year Ended March 31, 2018 2017 2016 Current service cost Rs. 252 Rs. 221 Rs. 177 Interest on net defined benefit liability/(asset) 6 14 2 Gratuity cost recognized in income statement Rs. 258 Rs. 235 Rs. 179 As of March 31, 2018 2017 Present value of funded obligations Rs. 2,007 Rs. 1,840 Fair value of plan assets (1,958 ) (1,687 ) Net defined benefit liability recognized Rs. 49 Rs. 153 As of March 31, 2018 2017 Defined benefit obligations at the beginning of the year Rs. 1,840 Rs. 1,540 Current service cost 252 221 Interest on defined obligations 125 114 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (121 ) 30 Actuarial loss/(gain) due to demographic assumptions 11 (12 ) Actuarial loss/(gain) due to experience changes 62 62 Benefits paid (162 ) (115 ) Defined benefit obligations at the end of the year Rs. 2,007 Rs. 1,840 As of March 31, 2018 2017 Fair value of plan assets at the beginning of the year Rs. 1,687 Rs. 1,303 Employer contributions 313 348 Interest on plan assets 121 99 Re-measurements due to: Return on plan assets excluding interest on plan assets (1 ) 52 Benefits paid (162 ) (115 ) Plan assets at the end of the year Rs. 1,958 Rs. 1,687 As of Defined benefit obligation without effect of projected salary growth Rs. 1,167 Add: Effect of salary growth 840 Defined benefit obligation with projected salary growth 2,007 Defined benefit obligation, using discount rate minus 50 basis points 2,082 Defined benefit obligation, using discount rate plus 50 basis points 1,936 Defined benefit obligation, using salary growth rate plus 50 basis points 2,081 Defined benefit obligation, using salary growth rate minus 50 basis points 1,937 Summary of the actuarial assumptions: The actuarial assumptions used in accounting for the Gratuity Plan are as follows: For the Year Ended March 31, 2018 2017 2016 Discount rate 7.75 % 7.20 % 7.80 % Rate of compensation increase 7% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter 10% per annum for the first 2 years and 9% per annum thereafter For the Year Ended March 31, 2018 2017 2016 Discount rate 7.20 % 7.80 % 8.00 % Rate of compensation increase 7 9 10 9 10 9 Contributions: The Company expects to contribute Rs.49 to the Gratuity Plan during the year ending March 31, 2019. As of March 31, 2018 2017 Funds managed by insurers 99 % 99 % Others 1 % 1 % Expected contribution Amount During the year ended March 31, 2019 (estimated) Rs. 49 Expected future benefit payments March 31, 2019 244 March 31, 2020 219 March 31, 2021 212 March 31, 2022 208 March 31, 2023 208 Thereafter 2,951 Pension plan of the Company’s subsidiary, Industrias Quimicas Falcon de Mexico All employees of the Company’s Mexican subsidiary, Industrias Quimicas Falcon de Mexico (“Falcon”), are entitled to a pension benefit in the form of a defined benefit pension plan. The Falcon pension plan provides for payment to vested employees at retirement or termination of employment. Liabilities in respect of the pension plan are determined by an actuarial valuation, based on which the Company makes contributions to the pension plan fund. This fund is administered by a third party, who is provided guidance by a technical committee formed by senior employees of Falcon. For the Year Ended March 31, 2018 2017 2016 Current service cost Rs. 12 Rs. 13 Rs. 14 Interest on net defined benefit liability/(asset) 13 12 11 Total cost recognized in income statement Rs. 25 Rs. 25 Rs. 25 As of March 31, 2018 2017 Present value of funded obligations Rs. 243 Rs. 218 Fair value of plan assets (66 ) (60 ) Net defined benefit liability recognized Rs. 177 Rs. 158 As of March 31, 2018 2017 Defined benefit obligations at the beginning of the year Rs. 218 Rs. 249 Current service cost 12 13 Interest on defined obligations 19 17 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (6 ) (24 ) Actuarial loss/(gain) due to experience changes 0 7 Benefits paid (8 ) (19 ) Foreign exchange differences 8 (25 ) Defined benefit obligations at the end of the year Rs. 243 Rs. 218 As of March 31, 2018 2017 Fair value of plan assets at the beginning of the year Rs. 60 Rs. 61 Employer contributions 8 19 Interest on plan assets 7 6 Re-measurements due to: Return on plan assets excluding interest on plan assets (3 ) (0 ) Benefits paid (8 ) (19 ) Foreign exchange differences 2 (7 ) Plan assets at the end of the year Rs. 66 Rs. 60 As of March Defined benefit obligation without effect of projected salary growth Rs. 160 Plus effect of salary growth 83 Defined benefit obligation with projected salary growth 243 Defined benefit obligation, using discount rate minus 50 basis points 254 Defined benefit obligation, using discount rate plus 50 basis points 232 Defined benefit obligation, using salary growth rate plus 50 basis points 255 Defined benefit obligation, using salary growth rate minus 50 basis points 231 Contributions: The Company expects to contribute Rs.36 to the Falcon defined benefit plans during the year ending March 31, 2019. Summary of the actuarial assumptions: The actuarial assumptions used in accounting for the Falcon defined benefit plans are as follows: Assumptions used to determine defined benefit obligations: For the Year Ended March 31, 2018 2017 2016 Discount rate 9.00 % 8.75 % 7.75 % Rate of compensation increase 4.50 % 4.50 % 4.50 % For the Year Ended March 31, 2018 2017 2016 Discount rate 8.75 % 7.75 % 7.50 % Rate of compensation increase 4.50 % 4.50 % 4.50 % The Falcon pension plan’s weighted-average asset allocation at March 31, 2018 and 2017, by asset category is as follows: As of March 31, 2018 2017 Corporate bonds 51 % 51 % Others 49 % 49 % Expected contribution Amount During the year ended March 31, 2019 (estimated) Rs. 36 Expected future benefit payments March 31, 2019 3 March 31, 2020 6 March 31, 2021 8 March 31, 2022 11 March 31, 2023 13 Thereafter 607 Provident fund benefits Certain categories of employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee’s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs.735, Rs.682 and Rs.574 to the provident fund plan during the years ended March 31, 2018, 2017 and 2016, respectively. Superannuation benefits Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes monthly contributions based on a specified percentage of each covered employee’s salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs.88, Rs.79 and Rs.71 to the superannuation plan during the years ended March 31, 2018, 2017 and 2016, respectively. Other contribution plans In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The Company contributed Rs.212, Rs.231 and Rs.204 to the 401(k) retirement savings plan during the years ended March 31, 2018, 2017 and 2016, respectively. The Company has no further obligations under the plan beyond its monthly matching contributions. In the United Kingdom, certain social security benefits (such as pension, unemployment and disability) are funded by employers and employees through mandatory National Insurance contributions. The contribution amounts are determined based upon the employee’s salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs.135, Rs.134 and Rs.156 to the National Insurance during the years ended March 31, 2018, 2017 and 2016, respectively. Compensated absences The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof as per the Company’s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this obligation was Rs.1,093 and Rs.855 as at March 31, 2018 and 2017, respectively. Long term incentive plan Certain senior management employees of the Company participate in a long term incentive plan which is aimed at rewarding the individual, based on performance of such individual, their business unit/function and the Company as a whole, with significantly higher rewards for superior performances. The total liability recorded by the Company towards this benefit was Rs.622 as at March 31, 2017. The plan ended on March 31, 2017 and the liability has been paid . |
Employee stock incentive plans
Employee stock incentive plans | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Share based Payment Arrangement [Abstract] | |
Employee stock incentive plans | 19. Employee stock incentive plans Dr. Reddy’s Employees Stock Option Plan -2002 (the “DRL 2002 Plan”): The Company instituted the DRL 2002 Plan for all eligible employees pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on September 24, 2001. The DRL 2002 Plan covers all employees and directors (excluding promoter directors) of the parent company and its subsidiaries (collectively, “eligible employees”). The Nomination, Governance and Compensation Committee of the Board of the parent company (the “Committee”) administers the DRL 2002 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the DRL 2002 Plan vest in periods ranging between one and four years and generally have a maximum contractual term of five years. The DRL 2002 Plan, as amended at annual general meetings of shareholders held on July 28, 2004 and on July 27, 2005, provides for stock option grants in two categories: Category A : 300,000 stock options out of the total of 2,295,478 options reserved for grant having an exercise price equal to the fair market value of the underlying equity shares on the date of grant; and Category B : 1,995,478 stock options out of the total of 2,295,478 options reserved for grant having an exercise price equal to the par value of the underlying equity shares (i.e., Rs.5 per option). Under the DRL 2002 Plan, the exercise price of the fair market value options granted under Category A above is determined based on the average closing price for 30 days prior to the grant in the stock exchange where there is highest trading volume during that period. Notwithstanding the foregoing, the Committee may, after obtaining the approval of the shareholders in the annual general meeting, grant options with a per share exercise price other than fair market value and par value of the equity shares. Particulars Number of Number of Total Options reserved under original Plan 300,000 1,995,478 2,295,478 Options exercised prior to stock dividend date (A) 94,061 147,793 241,854 Balance of shares that can be allotted on exercise of options (B) 205,939 1,847,685 2,053,624 Options arising from stock dividend (C) 205,939 1,847,685 2,053,624 Options reserved after stock dividend (A+B+C) 505,939 3,843,163 4,349,102 Stock option activity under the DRL 2002 Plan for the two categories of options during the years ended March 31, 2018 and 2017 is as follows: There was no activity under this category during the years ended March 31, 2018 and 2017, and there were no options outstanding under this category as of March 31, 2018 and March 31, 2017. For the Year Ended March 31, 2018 Category B Par Value Options Shares arising Range of Weighted Weighted average Outstanding at the beginning of the year 330,142 Rs. 5.00 Rs. 5.00 69 Granted during the year 158,112 5.00 5.00 90 Expired/forfeited during the year (23,318 ) 5.00 5.00 - Exercised during the year (144,392 ) 5.00 5.00 - Outstanding at the end of the year 320,544 Rs. 5.00 Rs. 5.00 70 Exercisable at the end of the year 47,383 Rs. 5.00 Rs. 5.00 49 For the Year Ended March 31, 2017 Category B Par Value Options Shares arising Range of Weighted Weighted average Outstanding at the beginning of the year 427,348 Rs. 5.00 Rs. 5.00 72 Granted during the year 103,136 5.00 5.00 90 Expired/forfeited during the year (22,597 ) 5.00 5.00 - Exercised during the year (177,745 ) 5.00 5.00 - Outstanding at the end of the year 330,142 Rs. 5.00 Rs. 5.00 69 Exercisable at the end of the year 40,882 Rs. 5.00 Rs. 5.00 38 The weighted average grant date fair value of par value options granted under category B above of the DRL 2002 Plan during the years ended March 31, 2018 and 2017 was Rs.2,546 and Rs.3,266 per option, respectively. The weighted average share price on the date of exercise of options during the years ended March 31, 2018 and 2017 was Rs.2,375 and Rs.3,292 per share, respectively. The aggregate intrinsic value of options exercised under the DRL 2002 Plan during the years ended March 31, 2018 and 2017 was Rs.342 and Rs.584, respectively. As of March 31, 2018, options outstanding under the DRL 2002 Plan had an aggregate intrinsic value of Rs.665 and options exercisable under the DRL 2002 Plan had an aggregate intrinsic value of Rs.98. The term of the DRL 2002 plan was extended for a period of 10 years effective as of January 29, 2012 by the shareholders at the Company’s Annual General Meeting held on July 20, 2012. Dr. Reddy’s Employees ADR Stock Option Plan, 2007 (the “DRL 2007 Plan”) The Company instituted the DRL 2007 Plan for all eligible employees in pursuance of the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2005. The DRL 2007 Plan became effective upon its approval by the Board of Directors on January 22, 2007. The DRL 2007 Plan covers all employees and directors (excluding promoter directors) of DRL and its subsidiaries (collectively, “eligible employees”). The Committee administers the DRL 2007 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive the options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the DRL 2007 Plan vest in periods ranging between one and four years and generally have a maximum contractual term of five years. The DRL 2007 Plan provides for option grants in two categories: Category A : 382,695 stock options out of the total of 1,530,779 stock options reserved for grant having an exercise price equal to the fair market value of the underlying equity shares on the date of grant; and Category B : 1,148,084 stock options out of the total of 1,530,779 stock options reserved for grant having an exercise price equal to the par value of the underlying equity shares (i.e., Rs.5 per option). No options were granted under Category A as of March 31, 2018 and 2017. For the Year Ended March 31, 2018 Category B Par Value Options Shares Range of Weighted Weighted average Outstanding at the beginning of the year 88,141 Rs. 5.00 Rs. 5.00 74 Granted during the year 63,304 5.00 5.00 90 Expired/forfeited during the year (19,335 ) 5.00 5.00 - Exercised during the year (24,802 ) 5.00 5.00 - Outstanding at the end of the year 107,308 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 11,034 Rs. 5.00 Rs. 5.00 47 For the Year Ended March 31, 2017 Category B Par Value Options Shares Range of Weighted Weighted average Outstanding at the beginning of the year 92,043 Rs. 5.00 Rs. 5.00 79 Granted during the year 52,956 5.00 5.00 90 Expired/forfeited during the year (23,039 ) 5.00 5.00 - Exercised during the year (33,819 ) 5.00 5.00 - Outstanding at the end of the year 88,141 Rs. 5.00 Rs. 5.00 74 Exercisable at the end of the year 6,517 Rs. 5.00 Rs. 5.00 43 The weighted average grant date fair value of par value options granted under category B of the DRL 2007 Plan during the years ended March 31, 2018 and 2017 was Rs.2,540 and Rs.3,266, respectively. The weighted average share price on the date of exercise of options during the years ended March 31, 2018 and 2017 was Rs.2,295 and Rs.3,268, respectively. The aggregate intrinsic value of options exercised under the DRL 2007 Plan during the years ended March 31, 2018 and 2017 was Rs.57 and Rs.110, respectively. As of March 31, 2018, options outstanding under the DRL 2007 Plan had an aggregate intrinsic value of Rs.223 and options exercisable under the DRL 2007 Plan had an aggregate intrinsic value of Rs.23. During the year ended March 31, 2015, the Company adopted a new program to grant performance linked stock options to certain employees under the DRL 2002 Plan and the DRL 2007 Plan. Under this program, performance was measured each year against pre-defined interim targets over the three year period ending on March 31, 2017 and eligible employees were granted stock options upon meeting such targets. The stock options so granted will vest only upon satisfaction of certain service period conditions which range from 1 to 4 years. After vesting, such stock options generally have a maximum contractual term of five years. Valuation of stock options: The fair value of stock options granted under the DRL 2002 Plan and the DRL 2007 Plan has been measured using the BlackScholes-Merton model at the date of the grant. The Black-Scholes-Merton model includes assumptions regarding dividend yields, expected volatility, expected terms and risk free interest rates. In respect of par value options granted under category B, the expected term of an option (or “option life”) is estimated based on the vesting term and contractual term, as well as the expected exercise behavior of the employees receiving the option. In respect of fair market value options granted under category A, the option life is estimated based on the simplified method. Expected volatility of the option is based on historical volatility, during a period equivalent to the option life, of the observed market prices of the Company’s publicly traded equity shares. Dividend yield of the options is based on recent dividend activity. Risk-free interest rates are based on the government securities yield in effect at the time of the grant. These assumptions reflect management’s best estimates, but these assumptions involve inherent market uncertainties based on market conditions generally outside of the Company’s control. As a result, if other assumptions had been used in the current period, stock-based compensation expense could have been materially impacted. Further, if management uses different assumptions in future periods, stock based compensation expense could be materially impacted in future years. The estimated fair value of stock options is recognized in the consolidated income statement on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. Grants made on July 10, 2017 May 11, 2017 November 15, 2016 September 20, 2016 July 26, 2016 Expected volatility 30.86 % 30.08 % 32.77 % 32.92 % 29.88 % Exercise price Rs. 5.00 Rs. 5.00 Rs. 5.00 Rs. 5.00 Rs. 5.00 Option life 2.5 Years 2.5 Years 2.5 Years 2.5 Years 2.5 Years Risk-free interest rate 6.48 % 6.69 % 6.27 % 6.81 % 6.91 % Expected dividends 0.77 % 0.77 % 0.60 % 0.60 % 0.60 % Grant date share price Rs. 2,726.20 Rs. 2,594.00 Rs. 3,310.70 Rs. 3,157.80 Rs. 3,319.65 The fair value of services received in return for stock options granted to employees is measured by reference to the fair value of stock options granted. For the Year Ended March 31, 2018 2017 2016 Cash settled share-based payment expense (1) 28 48 29 Equity settled share-based payment expense (2) 454 350 442 482 398 471 (1) Certain of the Company’s employees are eligible for share-based payment awards that are settled in cash. These awards entitle the employees to a cash payment, on the exercise date, subject to vesting upon satisfaction of certain service conditions which range from 1 to 4 years. The amount of cash payment is determined based on the price of the Company’s ADSs at the time of exercise. As of March 31, 2018, there was Rs.67 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.96 years. This scheme does not involve dealing in or subscribing to or purchasing securities of the Company, directly or indirectly. (2) As of March 31, 2018, there was Rs.313 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.98 years. |
Provisions
Provisions | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of other provisions [abstract] | |
Provisions | 20. Provisions Particulars Allowance for (1) Environmental (2) Legal and (3) Total Balance as at April 1, 2017 Rs. 3,784 Rs. 47 Rs. 725 Rs. 4,556 Provision made during the year 2,960 - 142 3,102 Provision used or reversed during the year (3,561 ) - (345 ) (3,906 ) Effect of changes in foreign exchange rates 27 6 - 33 Balance as at March 31, 2018 Rs. 3,210 Rs. 53 Rs. 522 Rs. 3,785 Current Rs. 3,210 Rs. - Rs. 522 Rs. 3,732 Non-current - 53 - 53 Rs. 3,210 Rs. 53 Rs. 522 Rs. 3,785 (1) Provision for sales returns is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) for the Company’s accounting policy on sales returns. (2) As a result of the acquisition of a unit of The Dow Chemical Company in April 2008, the Company assumed a liability for contamination of the Mirfield site acquired of Rs.39 (carrying value Rs.53). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the statements of financial position. (3) Primarily consists of provision recorded towards the potential liability arising out of a litigation relating to cardiovascular and anti-diabetic formulations. Refer to Note 39 (Contingencies) of these consolidated financial statements under “Product and patent related matters - Matters relating to National Pharmaceutical Pricing Authority - Litigation relating to Cardiovascular and Anti-diabetic formulations” for further details. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Mar. 31, 2018 | |
Trade and other payables [abstract] | |
Trade and other payables | 21. Trade and other payables As at March 31, 2018 2017 Due to related parties Rs. 14 Rs. 9 Others 16,038 13,408 Rs. 16,052 Rs. 13,417 |
Other liabilities
Other liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Other Liabilities [Abstract] | |
Other liabilities | 22. Other liabilities As at March 31, 2018 2017 Current Accrued expenses Rs. 14,861 Rs. 13,963 Employee benefits payable 3,927 4,416 Statutory dues payable 915 558 Deferred revenue 622 509 Advance from customers 360 310 Others 1,983 2,089 Rs. 22,668 Rs. 21,845 Non-current Deferred revenue 2,697 3,166 Others 883 911 Rs. 3,580 Rs. 4,077 |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2018 | |
Revenue [abstract] | |
Revenue | 23. Revenue For the Year Ended March 31, 2018 2017 2016 Sales Rs. 138,022 Rs. 138,663 Rs. 152,476 Service income 1,534 1,536 1,466 License fees (1) 2,472 610 766 Rs. 142,028 Rs. 140,809 Rs. 154,708 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 (1) License fees for the year ended March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 35 of these consolidated financial statements for further details. Effective July 1, 2017, a Goods and Services Tax (“GST”) was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. |
Other (income)_expense, net
Other (income)/expense, net | 12 Months Ended |
Mar. 31, 2018 | |
Other operating income expense [Abstract] | |
Other (income)/expense, net | 24. Other (income)/expense, net For the Year Ended March 31, 2018 2017 2016 Loss on sale/disposal of property, plant and equipment and other intangibles, net Rs. 55 Rs. 80 Rs. 112 Sale of spent chemicals (297 ) (206 ) (271 ) Scrap sales (169 ) (216 ) (220 ) Miscellaneous income, net (1) (377 ) (723 ) (495 ) Rs. (788 ) Rs. (1,065 ) Rs. (874 ) (1) During the three months ended March 31, 2017, the Company entered into an agreement with Galderma Laboratories, LP to settle the ongoing litigation relating to the Company’s launch of a generic product in the United States. Pursuant to the settlement, the Company recorded an amount of Rs.417, representing the relevant consideration attributable to settlement of such litigation. |
Finance (expense)_income, net
Finance (expense)/income, net | 12 Months Ended |
Mar. 31, 2018 | |
Finance expense income [Abstract] | |
Finance (expense)/income, net | 25. Finance (expense)/income, net For the Year Ended March 31, 2018 2017 2016 Interest income Rs. 540 Rs. 558 Rs. 1,399 Dividend and profit on sale of other investments (1) 2,270 956 852 Foreign exchange gain 87 73 - Finance income (A) Rs. 2,897 Rs. 1,587 Rs. 2,251 Interest expense Rs. (788 ) Rs. (634 ) Rs. (826 ) Foreign exchange loss (2) (29 ) (147 ) (4,133 ) Finance expense (B) Rs. (817 ) Rs. (781 ) Rs. (4,959 ) Finance (expense)/income, net [(A)+(B)] Rs. 2,080 Rs. 806 Rs. (2,708 ) (1) Profit on sale of other investments primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s “available for sale” financial instruments. (2) Includes the foreign exchange losses related to the Company’s Venezuela operations of Rs.37, Rs.41 and Rs.4,621 for the year ended March 31, 2018, 2017 and 2016 respectively. Refer to Note 38 of these consolidated financial statements for further details. |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of income tax [Abstract] | |
Income taxes | 26. Income taxes a. Income tax (expense)/benefit recognized in the consolidated income statement Income tax (expense)/benefit recognized in the consolidated income statement consists of the following: For the Year Ended March 31, 2018 2017 2016 Current taxes Domestic Rs. (1,412 ) Rs. (1,936 ) Rs. (4,331 ) Foreign (363 ) (1,158 ) (3,046 ) Rs. (1,775 ) Rs. (3,094 ) Rs. (7,377 ) Deferred taxes Domestic Rs. (379 ) Rs. 223 Rs. 132 Foreign (2,381 ) 257 118 Rs. (2,760 ) Rs. 480 Rs. 250 Total income tax expense recognized in the consolidated income statement Rs. (4,535 ) Rs. (2,614 ) Rs. (7,127 ) b. Income tax (expense)/benefit recognized directly in equity Income tax (expense)/benefit recognized directly in equity consists of the following: For the Year Ended March 31, 2018 2017 2016 Tax effect on changes in fair value of other investments Rs. 1,370 Rs. (499 ) Rs. (88 ) Tax effect on foreign currency translation differences (17 ) 148 (62 ) Tax effect on effective portion of change in fair value of cash flow hedges 41 (60 ) (23 ) Tax effect on actuarial gains/losses on defined benefit obligations (12 ) 14 64 Rs. 1,382 Rs. (397 ) Rs. (109 ) c. Reconciliation of effective tax rate The following is a reconciliation of the Company’s effective tax rates for the years ended March 31, 2018, 2017 and 2016: For the Year Ended March 31, 2018 2017 2016 Profit before income taxes Rs. 14,341 Rs. 14,653 Rs. 27,140 Enacted tax rate in India 34.61 % 34.61 % 34.61 % Computed expected tax benefit/(expense) Rs. (4,963 ) Rs. (5,071 ) Rs. (9,393 ) Effect of: Differences between Indian and foreign tax rates Rs. 712 Rs. 98 Rs. 1,122 (Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net (1,673 ) (2,849 ) (1,600 ) Expenses not deductible for tax purposes (261 ) (378 ) (138 ) Reversal of earlier years’ tax provisions 135 1,370 - Income exempt from income taxes 746 280 731 Foreign exchange differences 41 439 (836 ) Incremental deduction allowed for research and development costs (1) 1,324 3,111 2,782 Tax expense on distributed/undistributed earnings of subsidiary outside India - (3 ) (519 ) Deduction for qualified domestic production activities in the United States - - 38 Effect of change in tax rate (1,329 ) 104 (30 ) Investment allowance deduction - 363 177 Others 733 (79 ) 539 Income tax benefit/(expense) Rs. (4,535 ) Rs. (2,614 ) Rs. (7,127 ) Effective tax rate 32 % 18 % 26 % (1) India’s Finance Act, 2016 incorporated an amendment that reduces the weighted deduction on eligible research and development expenditure in a phased manner from 200% to 150% commencing from April 1, 2017. The increase in the Company’s effective tax rate for the year ended March 31, 2018 as compared to the year ended March 31, 2017 was primarily on account of the following: ⋅ re-measurement of deferred tax assets and liabilities of the Company’s subsidiaries in the United States due to the enactment of The Tax Cuts and Jobs Act of 2017 in the United States on December 22, 2017. Due to this enactment, the Company re-measured its U.S. deferred tax assets and liabilities based on the new tax law. This resulted in a charge of Rs.1,304 for the year ended March 31, 2018, primarily to reflect the impact on our U.S. deferred tax assets of the reduction in the corporate federal income tax rate from 35% to 21% under the new tax law; ⋅ resolution of a certain tax matter in the Company’s favor during the year ended March 31, 2017, resulting in a reversal of Rs.1,370 in income tax expense pertaining to earlier years. This reduced the effective tax rate for the year ended March 31, 2017, and there was no similar tax benefit for the year ended March 31, 2018; and ⋅ the foregoing was partially offset by changes in the Company’s jurisdictional mix of earnings (i.e., an increase in the proportion of the Company’s profits from lower tax jurisdictions and a decrease in the proportion of the Company’s profits from higher tax jurisdictions) for the year ended March 31, 2018, as compared to the year ended March 31, 2017. d. Unrecognized deferred tax assets and liabilities The details of unrecognized deferred tax assets and liabilities are summarized below: As at March 31, 2018 2017 Deductible temporary differences, net Rs. 4,961 Rs. 3,488 Operating tax loss carry-forward 4,020 3,027 Rs. 8,981 Rs. 6,515 For the year ended March 31, 2018, the Company did not recognize deferred tax assets of Rs.993 on operating tax losses pertaining primarily to foreign exchange loss of its subsidiary in Venezuela, Dr. Reddy’s Venezuela, C.A. Further, the Company did not recognize deferred tax assets of Rs.1,473 on certain deductible temporary differences, as the Company believes that it is not probable that there will be available taxable profits against which such temporary differences can be utilized. Deferred income taxes are not provided on undistributed earnings of Rs.31,587 as at March 31, 2018, of subsidiaries outside India, where it is expected that earnings of the subsidiaries will not be distributed in the foreseeable future. Generally, the Company indefinitely reinvests all of the accumulated undistributed earnings of foreign subsidiaries, and accordingly, has not recorded any deferred taxes in relation to such undistributed earnings of its foreign subsidiaries. It is impracticable to determine the taxes payable when these earnings are remitted. e. Deferred tax assets and liabilities The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities and a description of the items that created these differences is given below: As at March 31, 2018 2017 Deferred tax assets/(liabilities): Inventory Rs. 1,790 Rs. 2,385 Minimum Alternate Tax* 1,630 1,614 Trade and other receivables 278 424 Operating tax loss and interest loss carry-forward 112 1,329 Other current assets and other current liabilities, net 1,291 1,715 Property, plant and equipment (2,263 ) (2,142 ) Other intangible assets (569 ) (370 ) Others 629 (579 ) Net deferred tax assets Rs. 2,898 Rs. 4,376 * As per Indian tax laws, companies are liable for a Minimum Alternate Tax (“MAT” tax) when current tax, as computed under the provisions of the Income Tax Act, 1961 (“Tax Act”), is determined to be below the MAT tax computed under section 115JB of the Tax Act. The excess of MAT tax over current tax is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years. In assessing whether the deferred income tax assets will be realized, management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of the deferred income tax assets and tax loss carry-forwards is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategy in making this assessment. Based on the level of historical taxable income and projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes that the Company will realize the benefits of those recognized deductible differences and tax loss carry-forwards. Recoverability of deferred tax assets is based on estimates of future taxable income. Any changes in such future taxable income would impact the recoverability of deferred tax assets. Operating loss carry-forward consists of business losses, unabsorbed depreciation and unabsorbed interest carry-forwards. A portion of this total loss can be carried indefinitely and the remaining amounts expire at various dates ranging from 2019 through 2028. f. Movement in deferred tax assets and liabilities during the years ended March 31, 2018 and 2017 . The details of movement in deferred tax assets and liabilities are summarized below: As at March Recognized in Recognized As at March Deferred tax assets/(liabilities) Inventory Rs. 2,385 Rs. (595 ) Rs. - Rs. 1,790 Minimum Alternate Tax 1,614 16 - 1,630 Trade and other receivables 424 (146 ) - 278 Operating tax loss and interest loss carry-forward 1,329 (1,217 ) - 112 Other current assets and other current liabilities, net 1,715 (901 ) 477 1,291 Property, plant and equipment (2,142 ) (121 ) - (2,263 ) Other intangible assets (370 ) (199 ) - (569 ) Others (579 ) 298 910 629 Net deferred tax assets/(liabilities) Rs. 4,376 Rs. (2,865 ) Rs. 1,387 Rs. 2,898 As at March Recognized in Recognized As at March Deferred tax assets/(liabilities) Inventory Rs. 2,579 Rs. (194 ) Rs. - Rs. 2,385 Minimum Alternate Tax 1,614 - - 1,614 Trade and other receivables 412 12 - 424 Operating tax loss and interest loss carry-forward 548 781 - 1,329 Other current assets and other current liabilities, net 2,026 (231 ) (80 ) 1,715 Property, plant and equipment (1,745 ) (397 ) - (2,142 ) Intangible assets (482 ) 112 - (370 ) Others (722 ) 424 (281 ) (579 ) Net deferred tax assets/(liabilities) Rs. 4,230 Rs. 507 Rs. (361 ) Rs. 4,376 The amounts recognized in the income statement for the years ended March 31, 2018 and 2017 include Rs.105 and Rs.27, respectively, which represent exchange differences arising due to foreign currency translations. |
Operating leases
Operating leases | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of operating lease by lessee [Abstract] | |
Disclosure Of Operating Lease By Lessee Explanatory | 27. Operating leases The Company has leased offices and vehicles under various operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental expense under these leases was Rs.787, Rs.751 and Rs.819 for the years ended March 31, 2018, 2017 and 2016, respectively. As of March 31, 2018 2017 2016 Less than one year Rs. 496 Rs. 383 Rs. 396 Between one and five years 1,144 961 1,185 More than five years 289 366 663 Rs. 1,929 Rs. 1,710 Rs. 2,244 During the year ended March 31, 2014, the Company entered into a non-cancellable operating lease for an office and laboratory facility in the United States. The future minimum rental payments in respect of this lease are Rs.945 (U.S.$14) and Rs.904 (U.S.$14) as of March 31, 2018 and 2017, respectively. |
Related parties
Related parties | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |
Related parties | 28. Related parties The Company has entered into transactions with the following related parties: · Green Park Hotel and Resorts Limited for hotel services; · Green Park Hospitality Services Private Limited for catering services; · Dr. Reddy’s Foundation towards contributions for social development; · Pudami Educational Society towards contributions for social development; · Reddy Kunshan for providing research and development services; · Dr. Reddy’s Institute of Life Sciences for research and development services ; · Stamlo Hotels Limited for hotel services. These are enterprises over which key management personnel have control or significant influence. “Key management personnel” consists of the Company’s Directors and members of the Company’s Management Council. The Company has also entered into cancellable operating lease transactions with key management personnel and close members of their families. Further, the Company contributes to the Dr. Reddy’s Laboratories Gratuity Fund, which maintains the plan assets of the Company’s Gratuity Plan for the benefit of its employees. See Note 18 of these consolidated financial statements for information on transactions between the Company and the Gratuity Fund. The following is a summary of significant related party transactions: For the Year Ended March 31, 2018 2017 2016 Research and development services received Rs. 98 Rs. 114 Rs. 102 Research and development services provided 100 - - Contributions towards social development 238 318 249 Catering services received 178 - - Hotel expenses paid 49 44 51 Lease rentals paid under cancellable operating leases to key management personnel and their relatives 35 39 37 Others 1 - - The Company has the following amounts due from related parties: As at March 31, 2018 2017 Key management personnel (towards rent deposits) Rs. 8 Rs. 8 Other related parties (Reddy Kunshan and Green Park Hospitality Services Private Limited) 148 - The Company has the following amounts due to related parties: As at March 31, 2018 2017 Due to related parties Rs. 14 Rs. 9 The following table describes the components of compensation paid or payable to key management personnel for the services rendered during the applicable year ended: For the Year Ended March 31, 2018 2017 2016 Salaries and other benefits (1) Rs. 458 Rs. 380 Rs. 336 Contributions to defined contribution plans 38 28 19 Commission to directors 153 180 263 Share-based payments expense 114 75 76 Total Rs. 763 Rs. 663 Rs. 694 (1) In addition to the above, the Company has accrued Rs.0 and Rs.79 towards a long term incentive plan for the services rendered by key management personnel during the years ended March 31, 2018 and 2017, respectively. Refer to Note 18 of these consolidated financial statements for further details. Some of the key management personnel of the Company are also covered under the Company’s Gratuity Plan along with the other employees of the Company. Proportionate amounts of gratuity accrued under the Company’s Gratuity Plan have not been separately computed or included in the above disclosure. |
Financial instruments
Financial instruments | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 29. Financial instruments Financial instruments by category The carrying value and fair value of financial instruments by each category as at March 31, 2018 were as follows: Note Loans and Available- Held-to- maturity (3) Other Derivatives Total Total fair Assets: Cash and cash equivalents 14 Rs. 2,638 Rs. - Rs. - Rs. - Rs. - Rs. 2,638 Rs. 2,638 Other investments 10 41 15,973 4,865 - - 20,879 20,879 Trade and other receivables 12 40,786 - - - - 40,786 40,786 Derivative financial instruments - - - - 103 103 103 Other assets (1) 13 2,273 - - - - 2,273 2,273 Total Rs. 45,738 Rs. 15,973 Rs. 4,865 Rs. - Rs. 103 Rs. 66,679 Rs. 66,679 Liabilities: Trade and other payables 21 Rs. - Rs. - Rs. - Rs. 16,052 Rs. - Rs. 16,052 Rs. 16,052 Derivative financial instruments - - - - 85 85 85 Long-term borrowings 17 - - - 25,152 - 25,152 25,152 Short-term borrowings 17 - - - 25,466 - 25,466 25,466 Bank overdraft 14 - - - 96 - 96 96 Other liabilities and provisions (2) 20, 22 - - - 20,712 - 20,712 20,712 Total Rs. - Rs. - Rs. - Rs. 87,478 Rs. 85 Rs. 87,563 Rs. 87,563 The carrying value and fair value of financial instruments by each category as at March 31, 2017 were as follows: Note Loans and Available Other Derivatives Total Total fair Assets: Cash and cash equivalents 14 Rs. 3,866 Rs. - Rs. - Rs. - Rs. 3,866 Rs. 3,866 Other investments 10 3,403 16,104 - - 19,507 19,507 Trade and other receivables 12 38,271 - - - 38,271 38,271 Derivative financial instruments - - - 262 262 262 Other assets (1) 13 1,916 - - - 1,916 1,916 Total Rs. 47,456 Rs. 16,104 Rs. - Rs. 262 Rs. 63,822 Rs. 63,822 Liabilities: Trade and other payables 21 Rs. - Rs. - Rs. 13,417 Rs. - Rs. 13,417 Rs. 13,417 Derivative financial instruments - - - 10 10 10 Long-term borrowings 17 - - 5,571 - 5,571 5,571 Short-term borrowings 17 - - 43,539 - 43,539 43,539 Bank overdraft 14 - - 87 - 87 87 Other liabilities and provisions (2) 20, 22 - - 20,391 - 20,391 20,391 Total Rs. - Rs. - Rs. 83,005 Rs. 10 Rs. 83,015 Rs. 83,015 (1) Other assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses, advances paid and certain other receivables) of Rs.13,058 and Rs.11,037 as of March 31, 2018 and 2017, respectively, are not included. (2) Other liabilities that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs.9,321 and Rs.10,087 as of March 31, 2018 and 2017, respectively, are not included. (2) Interest accrued but not due on held-to-maturity investments is included in other current assets. Fair value hierarchy Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices 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). Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2018: Particulars Level 1 Level 2 Level 3 Total Available for sale - Financial asset - Investments in units of mutual funds Rs. 14,778 Rs. - Rs. - Rs. 14,778 Available for sale - Financial asset - Investment in equity securities 1,195 - - 1,195 Derivative financial instruments net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 18 - 18 The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017: Particulars Level 1 Level 2 Level 3 Total Available for sale - Financial asset - Investments in units of mutual funds Rs. 11,141 Rs. - Rs. - Rs. 11,141 Available for sale - Financial asset - Investment in equity securities 4,963 - - 4,963 Derivative financial instruments net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 252 - 252 (1) The Company enters into derivative financial instruments with various counterparties, principally financial institutions and banks. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward option and swap contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black-Scholes-Merton models (for option valuation), using present value calculations. The models incorporate various inputs, including foreign exchange forward rates, interest rate curves and forward rate curves. As at March 31, 2018, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value. Derivative financial instruments The Company had a derivative financial asset and derivative financial liability of Rs.103 and Rs.85, respectively, as of March 31, 2018, as compared to derivative financial asset and derivative financial liability of Rs.262 and Rs.10, respectively, as of March 31, 2017, towards these derivative financial instruments. Details of gain/(loss) recognized in respect of derivative contracts The following table presents details in respect of the gain/(loss) recognized in respect of derivative contracts during the applicable year ended: For the Year Ended March 31, 2018 2017 2016 Net gain recognized in finance costs in respect of foreign exchange derivative contracts Rs. 168 Rs. 699 Rs. 231 Net gain/(loss) recognized in equity in respect of hedges of highly probable forecast transactions (82 ) 968 966 Net gain/(loss) recognized as component of revenue 651 (683 ) (1,172 ) The net carrying amount of the Company’s “hedging reserve” as a component of equity before adjusting for tax impact was a gain of Rs.49 as at March 31, 2018, as compared to a gain of Rs.129 as at March 31, 2017. Outstanding foreign exchange derivative contracts The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2018. Category Instrument Currency Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 72 Sell Forward contract GBP USD GBP 31 Buy Forward contract U.S.$ RUB U.S.$ 38 Buy Option contract U.S.$ INR U.S.$ 65 Sell Hedges of highly probable forecast transactions Forward contract RUB INR RUB 1,080 Sell Option contract U.S.$ INR U.S.$ 240 Sell The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2017. Category Instrument Currency Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 193.5 Sell Forward contract U.S.$ RON U.S.$ 3.0 Buy Forward contract U.S.$ RUB U.S.$ 20.0 Buy Forward contract EUR U.S.$ EUR 95.0 Sell Forward contract GBP U.S.$ GBP 14.1 Buy Option contract U.S.$ INR U.S.$ 80.0 Sell Hedges of highly probable forecast transactions Forward contract RUB INR RUB 150.0 Sell Option contract U.S.$ INR U.S.$ 180.0 Sell (1) The table below summarizes the periods when the cash flows associated with highly probable forecast transactions that are classified as cash flow hedges are expected to occur: As of March 31, 2018 2017 Cash flows in U.S. Dollars Not later than one month Rs. 1,955 Rs. 973 Later than one month and not later than three months 3,911 1,946 Later than three months and not later than six months 5,866 2,918 Later than six months and not later than one year 3,910 5,837 Rs. 15,642 Rs. 11,674 Cash flows in Roubles Not later than one month Rs. 102 Rs. 57 Later than one month and not later than three months 204 115 Later than three months and not later than six months 306 - Later than six months and not later than one year 611 - Rs. 1,223 Rs. 172 Hedges of changes in the interest rates: Consistent with its risk management policy, the Company uses interest rate swaps (including cross currency interest rate swaps) to mitigate the risk of changes in interest rates. The Company does not use them for trading or speculative purposes. The changes in fair value of such interest rate swaps (including cross currency interest rate swaps) are recognized as part of finance cost. Accordingly the Company has recorded, as part of finance cost, a net gain of Rs.9 for the year ended March 31, 2018. As at March 31, 2018, the Company had outstanding interest swap arrangements that hedged a portion of interest rate risk arising from floating rate, dollar denominated foreign currency borrowing of U.S.$50. As at March 31, 2017, the Company had no outstanding interest rate swap arrangements. |
Financial risk management
Financial risk management | 12 Months Ended |
Mar. 31, 2018 | |
Financial risk management [Abstract] | |
Financial risk management | 30. Financial risk management The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes. a. Market risk Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies. Foreign exchange risk The Company’s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. dollars, Russian roubles, U.K. pounds sterling and Euros) and foreign currency borrowings (in U.S. dollars, Russian roubles, Ukrainian hryvnias and Euros). A significant portion of the Company’s revenues are in these foreign currencies, while a significant portion of its costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues measured in Indian rupees may decrease. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecast transactions and recognized assets and liabilities. The details in respect of the outstanding foreign exchange forward and option contracts are given in Note 29 above. In respect of the Company’s forward and option contracts, a 10% decrease/increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in: · a Rs.1,277/(1,338) increase/(decrease) in the Company’s hedging reserve and a Rs.403/(308) increase/(decrease) in the Company’s profit from such contracts, as at March 31, 2018; · a Rs.1,154/(710) increase/(decrease) in the Company’s hedging reserve and a Rs.2,143/(2,287) increase/(decrease) in the Company’s profit from such contracts, as at March 31, 2017; and · a Rs.1,511/(424) increase/(decrease) in the Company’s hedging reserve and a Rs.1,277/(1,707) increase/(decrease) in the Company’s profit from such contracts, as at March 31, 2016. U.S. Euro Russian Others (1) Total Assets: Cash and cash equivalents Rs. 392 Rs. 62 Rs. 56 Rs. 512 Rs. 1,022 Other investments - - - 20 20 Trade and other receivables 25,427 437 6,691 2,592 35,147 Other assets 125 85 260 196 666 Total Rs. 25,944 Rs. 584 Rs. 7,007 Rs. 3,320 Rs. 36,855 Liabilities: Trade and other payables Rs. 3,526 Rs. 1,658 Rs. 2 Rs. 1,118 Rs. 6,304 Long-term borrowings 4,888 - - - 4,888 Short-term borrowings 19,552 - 2,378 178 22,108 Other liabilities and provisions 5,147 104 1,896 770 7,917 Total Rs. 33,113 Rs. 1,762 Rs. 4,276 Rs. 2,066 Rs. 41,217 The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2017: U.S. Euro Russian Others (1) Total Assets: Cash and cash equivalents Rs. 130 Rs. 87 Rs. 59 Rs. 840 Rs. 1,116 Other investments - - - 14 14 Trade and other receivables 24,581 567 6,259 2,121 33,528 Other assets 458 - 70 33 561 Total Rs. 25,169 Rs. 654 Rs. 6,388 Rs. 3,008 Rs. 35,219 Liabilities: Trade and other payables Rs. 2,323 Rs. 903 Rs. - Rs. 328 Rs. 3,554 Long-term borrowings 4,865 - 76 - 4,941 Short-term borrowings 12,970 - 4,023 - 16,993 Bank overdraft 86 - - - 86 Other liabilities and provisions 6,660 117 1,640 622 9,039 Total Rs. 26,904 Rs. 1,020 Rs. 5,739 Rs. 950 Rs. 34,613 (1) Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus and Ukrainian hryvnia. For the years ended March 31, 2018 and 2017, every 10% depreciation/appreciation in the exchange rate between the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would affect the Company’s net profit by Rs.434 and Rs.61, respectively. Interest rate risk As of March 31, 2018, the Company had Rs.42,592 of loans carrying a floating interest rate ranging from 1 Month LIBOR minus 30 bps to 1 Month/3 Months LIBOR plus 85 bps. As of March 31, 2017, the Company had Rs.41,407 of loans carrying a floating interest rate of 1 Month LIBOR minus 30 bps to 1 Month LIBOR plus 82.7 bps and the Indian Treasury Bill plus 30 bps. These loans expose the Company to risk of changes in interest rates. The Company’s treasury department monitors the interest rate movement and manages the interest rate risk based on its policies, which include entering into interest rate swaps as considered necessary. For details of the Company’s short-term and long term loans and borrowings, including interest rate profiles, refer to Note 17 of these consolidated financial statements. For the years ended March 31, 2018, 2017 and 2016, every 10% increase or decrease in the floating interest rate component (i.e., LIBOR) applicable to its loans and borrowings would affect the Company’s net profit by Rs.77, Rs.46 and Rs.12, respectively. The carrying value of the Company’s borrowings designated in a cash flow hedge as of March 31, 2018 was Rs.3,259. In respect of these borrowings, a 10% decrease/increase in the interest rates of such borrowings would have resulted in Rs.18/(20) increase/decrease in the Company’s hedging reserve as at March 31, 2018. The Company’s investments in term deposits (i.e., certificates of deposit) with banks and short-term liquid mutual funds are for short durations, and therefore do not expose the Company to significant interest rates risk. Commodity rate risk Exposure to market risk with respect to commodity prices primarily arises from the Company’s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company’s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company’s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company’s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2018, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices. b. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. Trade and other receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Investments The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks. Financial assets that are neither past due nor impaired None of the Company’s cash equivalents, including term deposits (i.e., certificates of deposit) with banks, were past due or impaired as at March 31, 2018. Of the total trade and other receivables, Rs.35,748 as at March 31, 2018 and Rs.27,809 as at March 31, 2017 consisted of customer balances that were neither past due nor impaired. Financial assets that are past due but not impaired As of March 31, Period (in days) 2018 2017 1 90 Rs. 4,510 Rs. 8,380 90 180 177 707 More than 180 1,303 1,376 Total Rs. 5,990 Rs. 10,463 See Note 12 of these consolidated financial statements for the activity in the allowance for impairment of trade and other receivables. Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired. c. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. As of March 31, 2018 and 2017, the Company had unutilized credit limits from banks of Rs.24,046 and Rs.21,156, respectively. As of March 31, 2018, the Company had working capital of Rs.39,953, including cash and cash equivalents of Rs.2,638, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months), bonds and commercial paper of Rs.3,552 and investments in available-for-sale financial assets of Rs.14,778. As of March 31, 2017, the Company had working capital of Rs.15,198, including cash and cash equivalents of Rs.3,866, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months) of Rs.3,389 and investments in available-for-sale financial assets of Rs.10,881. Particulars 2019 2020 2021 2022 Thereafter Total Trade and other payables Rs. 16,052 Rs. - Rs. - Rs. - Rs. - Rs. 16,052 Bank overdraft, short-term loans and borrowings 25,562 - - - - 25,562 Other liabilities and provisions 19,885 92 16 16 703 20,712 Derivative financial instruments - liabilities 85 - - - - 85 The table below provides details regarding the contractual maturities of significant financial liabilities (other than long term loans, borrowings and obligations under finance leases, which have been disclosed in Note 17 to these consolidated financial statements) as at March 31, 2017: Particulars 2018 2019 2020 2021 Thereafter Total Trade and other payables Rs. 13,417 Rs. - Rs. - Rs. - Rs. - Rs. 13,417 Bank overdraft, short-term loans and borrowings 43,626 - - - - 43,626 Other liabilities and provisions 19,564 88 7 9 723 20,391 Derivative financial instruments - liabilities 10 - - - - 10 |
Collaboration agreement with Cu
Collaboration agreement with Curis, Inc. | 12 Months Ended |
Mar. 31, 2018 | |
Curis, Inc. [Member] | |
Collaboration Agreement [Line Items] | |
Collaboration agreement with Curis, Inc. | 31. Collaboration agreement with Curis, Inc. On January 18, 2015, Aurigene Discovery Technologies Limited ("Aurigene"), a wholly-owned subsidiary of the parent company, entered into a Collaboration, License and Option Agreement (the "Collaboration Agreement") with Curis, Inc. ("Curis") to discover, develop and commercialize small molecule antagonists for immuno-oncology and precision oncology targets. Under the Collaboration Agreement, Aurigene has the responsibility for conducting all discovery and preclinical activities, including Investigational New Drug ("IND") enabling studies and providing Phase 1 clinical trial supply, and Curis is responsible for all clinical development, regulatory and commercialization efforts worldwide, excluding India and Russia. The Collaboration Agreement provides that the parties will collaborate exclusively in immuno-oncology for an initial period of approximately two years, with the option for Curis to extend the broad immuno-oncology exclusivity. As partial consideration for the collaboration, pursuant to a Stock Purchase Agreement dated January 18, 2015, Curis issued to Aurigene 17.1 million shares of its common stock, representing 19.9% of its outstanding common stock immediately prior to the transaction (approximately 16.6% of its outstanding common stock immediately after the transaction). Such shares were initially subject to a lock-up agreement. However, as of March 31, 2017, lock-up restrictions were released on all of the aforementioned 17.1 million shares. In connection with the issuance of such shares, Curis and Aurigene entered into a Registration Rights Agreement dated January 18, 2015 which provides for certain registration rights with respect to resale of the shares. The common stock of Curis is listed for quotation on the NASDAQ Global Market. The fair value of the shares of Curis common stock on the date of the Stock Purchase Agreement was Rs.1,452 (U.S.$23.5). Revenues under the Collaboration Agreement consist of upfront consideration (including the shares of Curis common stock) and the development and commercial milestone payments described below, which are deferred and recognized as revenue over the period for which Aurigene has continuing performance obligations. Under the Collaboration Agreement, Aurigene is entitled to development and commercial milestone payments as follows: ⋅ for the first two programs: up to U.S.$52.5 per program, including U.S.$42.5 for approval and commercial milestones, plus pre-specified approval milestone payments for additional indications, if any; ⋅ for the third and fourth programs: up to U.S.$50 per program, including U.S.$42.5 for approval and commercial milestones, plus pre-specified approval milestone payments for additional indications, if any; and ⋅ for any program thereafter: up to U.S.$140.5 per program, including U.S.$87.5 for approval and commercial milestones, plus pre-specified approval milestone payments for additional indications, if any. In addition, Curis has agreed to pay Aurigene royalties, ranging between high single digits to 10%, on its net sales in territories where it commercializes products. Furthermore, Aurigene is entitled to receive a share of Curis’ revenues from sublicenses, which share varies based upon specified factors such as the sublicensed territory, whether the sublicense revenue is royalty based or non-royalty based and, in some cases, the stage of the applicable molecule and product at the time the sublicense is granted. On September 7, 2016, the Collaboration Agreement was amended to provide for the issuance to Aurigene of approximately 10.2 million additional shares of Curis common stock in lieu of receiving up to U.S.$24.5 of milestone and other payments from Curis that could have become due under the Collaboration Agreement. These shares of Curis common stock are recorded at U.S.$1.84 per share, which is equal to the market price of such shares of common stock on the date of issuance, amounting to an aggregate market value of Rs.1,247 (U.S.$18.8). These additional shares are also subject to a lock-up agreement, which is similar to the lock-up for the original Curis shares the Company received. However, this lock-up remains effective until September 7, 2018, with shares being released from such lock-up in 25% increments on each of March 7, 2017, September 7, 2017, March 7, 2018 and September 7, 2018, subject to acceleration of release of all the shares in connection with a change of control of Curis. As of March 31, 2018, lock-up restrictions were released on an aggregate of 7.65 million of such additional shares of Curis common stock, representing 75% of the shares which Aurigene received from Curis in 2016. The Company has evaluated the transaction under IAS 28, “Investments in associates and Joint Ventures,” and believes that the Company does not have any significant influence with respect to Curis. Accordingly, all of the shares of Curis common stock are classified as available-for-sale financial instruments and are re-measured at fair value at every reporting date. Accordingly, loss of Rs.1,535 arising from changes in the fair value of such shares of common stock was recognized in other comprehensive income as of March 31, 2018. In May 2018, Curis completed a 1-for-5 reverse stock split of Curis’s common stock. After giving effect to such stock split, the total number of Curis equity shares held by the Company is 5.47 million. This arrangement is accounted for as a joint operation under IFRS 11. |
Agreement with Merck Serono
Agreement with Merck Serono | 12 Months Ended |
Mar. 31, 2018 | |
Merck KGaA [Member] | |
Collaboration Agreement [Line Items] | |
Agreement with Merck Serono | 32. Agreement with Merck Serono On June 6, 2012, the Company and the biosimilars division of Merck KGaA, Darmstadt, Germany, formerly known as Merck Serono (hereinafter, “Merck KGaA”), entered into a collaboration agreement to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies. The arrangement covers co-development, manufacturing and commercialization of the compounds around the globe, with some specific country exceptions. During the year ended March 31, 2016, the collaboration agreement was amended to rearrange and realign the development of compounds, territory rights and royalty payments. Both parties will undertake commercialization based on their respective regional rights as defined in the agreement. The Company will lead and support early product development towards or including Phase 1 development. Merck KGaA will carry out manufacturing of the compounds and will lead further development for its territories. In its exclusive and co-exclusive territories, the Company will carry out its own development, wherever applicable, for commercialization. As per the original collaboration agreement, the Company will continue to receive royalty payments upon commercialization by Merck KGaA in its territories. During the three months ended December 31, 2015, the Company received from Merck KGaA certain amounts relating to its share of development costs and other amounts linked to the achievement of milestones for the development of compounds under the collaboration agreement, as amended. Furthermore, during the three months ended December 31, 2016, the Company received from Merck KGaA payments of U.S.$1 towards achievement of a milestone for the development of a compound under the collaboration agreement. On September 1, 2017, Fresenius Kabi acquired the biosimilars business of Merck KgaA. Since then, the Company’s collaboration has continued as planned with Fresenius Kabi. |
Asset purchase agreement with T
Asset purchase agreement with Teva Pharmaceutical Industries Limited | 12 Months Ended |
Mar. 31, 2018 | |
Teva Pharmaceutical Industries Ltd [Member] | |
Disclosure Of Asset Purchase Agreement [Line Items] | |
Disclosure Of Asset Purchase Agreement [Text Block] | 33. Asset purchase agreement with Teva Pharmaceutical Industries Limited On June 10, 2016, the Company entered into a definitive purchase agreement with Teva and an affiliate of Allergan to acquire eight ANDAs in the United States for U.S.$350 in cash at closing. The acquired products were divested by Teva as a precondition to the closing of its acquisition of Allergan’s generics business. The acquisition of these ANDAs was also contingent on the closing of the Teva/Allergan generics purchase transaction and approval by the U.S. Federal Trade Commission. The acquisition was consummated on August 3, 2016 upon the completion of all closing conditions, and the Company paid U.S.$350 as the consideration for the acquired ANDAs. Tabulated below are the details of products acquired and the respective purchase prices in U.S.$, along with the corresponding amount in Rs. as of the payment date: Particulars of the ANDA Purchase Purchase Ethinyl estradiol/Ethonogestrel Vaginal Ring (a generic equivalent to NuvaRing®) U.S.$ 185 Rs. 12,351 Buprenorphine HCl/Naloxone HCl Sublingual Film (a generic equivalent to Suboxone® sublingual film) 70 4,673 Ramelteon Tablets (a generic equivalent to Rozerem®) 34 2,270 Others 61 4,072 Grand Total U.S.$ 350 Rs. 23,366 The Company recorded the aforesaid acquisition of these ANDAs as “product related intangibles”. The aforesaid acquisition forms part of the Company’s Global Generics segment. During the three months ended June 30, 2017, the Company launched the product for one of the eight ANDAs acquired (ezitimibe and simvastatin tablets). The carrying cost of the ANDA as at March 31, 2018 was Rs.697 and the useful life is eight years. The carrying cost of the other seven ANDAs as at March 31, 2018 was Rs.22,573. As these ANDAs are not available for use yet, they are not subject to amortization. |
Significant asset purchase agre
Significant asset purchase agreements | 12 Months Ended |
Mar. 31, 2018 | |
Significant asset purchase agreements [Member] | |
Disclosure of Significant asset purchase agreements [Line Items] | |
Disclosure Of Asset Purchase Agreement [Text Block] | 34. Significant asset purchase agreements Tabulated below are certain significant asset purchase agreements entered into by the Company during its fiscal years ended March 31, 2016, 2017 and 2018: Month Counterparty Brief particulars of the asset / agreement Useful life Carrying value as June 2015 UCB India Private Limited and affiliates Purchase of a select portfolio of established products business in the territories of India, Nepal, Sri Lanka and Maldives to strengthen our presence in the areas of dermatology, respiratory and pediatric products, all for a total purchase consideration of Rs.8,000. 9 to 15 years Rs. 6,081 September 2015 Hatchtech Pty Limited Purchase of intellectual property rights of an innovative prescription head lice product, Xeglyze lotion. Consideration was an upfront amount of Rs.606 plus certain milestone-based payments. Not available for use yet Rs. 1,011 November 2015 Alchemia Limited Purchase of worldwide, exclusive intellectual property rights to fondaparinux sodium, all for an aggregate consideration of Rs.1,158. 4 years Rs. 459 March 2016 XenoPort, Inc. Purchase of exclusive U.S. rights for the development and commercialization of XenoPort’s clinical stage oral new chemical entity, all for an aggregate consideration of Rs.3,159. The Company plans to develop the in-licensed compound as a potential treatment for moderate-to-severe chronic plaque psoriasis and for relapsing forms of multiple sclerosis. Not available for use yet Rs. 3,219 March 2016 and Eisai Company Limited Acquisition of commercialization rights for an anti-cancer biologic agent (E7777) from Eisai Company Limited. The consideration was an upfront amount plus certain milestone-based payments. Not available for use yet Rs. 1,065 May 2016 Ducere Pharma LLC Purchase of certain pharmaceutical brands to strengthen the Company’s presence in the dermatology, cough-and-cold and pain therapeutic areas forming part of the Company’s OTC business in the United States, all for an aggregate consideration of Rs.1,148. 15 years Rs. 980 November 2016 Gland Pharma Limited Acquisition of the rights to in-license, market and distribute eight injectable ANDAs, all for an aggregate consideration of U.S.$5.9. Not available for use yet Rs. 231 In addition, in June 2016 the Company entered into an asset purchase agreement with Teva (refer to Note 33 of these consolidated financial statements for further details). |
Significant out-licensing agree
Significant out-licensing agreements | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Significant Out-Licensing Agreements [Abstract] | |
Disclosure Of Significant Out-Licensing Agreements Explanatory [Text Block] | 35. Significant out-licensing agreements Month and Year Counterparty Product Brief particulars of the agreement July 2017 CHD Biosciences Inc. (“CHD”) DFA-02 As a consideration for out-licensing the Phase III clinical trial candidate, DFA-02, the Company is entitled to receive equity shares in CHD valued at U.S.$30 upon an initial public offering of CHD or, if no initial public offering occurs within 18 months of execution of the agreement, a cash payment of U.S.$30. The Company will also receive additional milestone payments of U.S.$40 upon U.S. FDA approval. In addition, the Company is entitled to royalties on sales and certain other commercial milestone payments with respect to the product. At the time of execution, as the arrangement did not meet all of the revenue recognition criteria under IAS 18, no revenue has been recognized for the transaction. September 2017 Encore Dermatology Inc. DFD-06 The consideration for this arrangement consists of up to U.S.$20 in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 of amounts contingent upon satisfaction of certain patent and commercial milestones. In addition, the Company is entitled to royalties on net sales. During the three months ended December 31, 2017, all of the performance obligations relating to the approval milestones were met, and consequently, revenue of U.S.$20 was recognized. |
Receipt of warning letter from
Receipt of warning letter from the U.S. FDA | 12 Months Ended |
Mar. 31, 2018 | |
U.S. FDA [Member] | |
Inspection By Regulatory Authority [Line Items] | |
Disclosure Of Inspection By Regulatory Authority Explanatory | 36. Receipt of warning letter from the U.S. FDA The Company received a warning letter dated November 5, 2015 from the U.S. FDA relating to current Good Manufacturing Practices (“cGMPs”) deviations at its active pharmaceutical ingredient (“API”) manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as violations at its oncology formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh. The contents of the warning letter emanated from Form 483 observations that followed inspections of these sites by the U.S. FDA in November 2014, January 2015 and February-March 2015. The warning letter does not restrict production or shipment of the Company’s products from these facilities. However, unless and until the Company is able to correct outstanding issues to the U.S. FDA's satisfaction, the U.S. FDA may withhold approval of new products and new drug applications of the Company, refuse admission of products manufactured at the facilities noted in the warning letter into the United States, and/or take additional regulatory or legal action against the Company. Any such further action could have a material and negative impact on the Company’s ongoing business and operations. During the years ended March 31, 2016, 2017 and 2018, the U.S. FDA withheld approval of new products from these facilities pending resolution of the issues identified in the warning letter. To minimize the business impact, the Company transferred certain key products to alternate manufacturing facilities. Subsequent to the issuance of the warning letter, the Company promptly instituted corrective actions and preventive actions and submitted a comprehensive response to the warning letter to the U.S. FDA, followed by periodic written updates and in-person meetings with the U.S. FDA. The U.S. FDA completed the re-inspection of the aforementioned manufacturing facilities in the months of February, March and April 2017. During the re-inspections, the U.S. FDA issued three observations with respect to the API manufacturing facility at Miryalaguda, two observations with respect to the API manufacturing facility at Srikakulam and thirteen observations with respect to the Company’s oncology formulation manufacturing facility at Duvvada. The Company has responded to these observations identified by the U.S. FDA and believes that it can resolve them in a timely manner. In June 2017, the U.S. FDA issued an Establishment Inspection Report (“EIR”) which indicated that the inspection of the Company’s API manufacturing facility at Miryalaguda is successfully closed. With regard to the Company’s oncology manufacturing facility at Duvvada and its API manufacturing facility at Srikakulam, the Company received EIRs from the U.S.FDA in November 2017 and February 2018, respectively, which indicated that the inspection status of these facilities remains unchanged. Inspection of other facilities: In May and June 2017, inspection of the Company’s Formulations Srikakulam Plant (SEZ) Unit II and I, India, was completed by the U.S. FDA with zero and one observations, respectively, and the U.S. FDA issued EIRs in September 2017 for both Units II and I, indicating the closure of the audit for these facilities. The inspection of the Company’s Custom Pharmaceutical Services facility in Hyderabad, India was completed by the U.S. FDA on September 21, 2017 with zero observations, and the U.S. FDA issued an EIR in December 2017 indicating the closure of audit for this facility. In April 2017, inspection of the Company’s formulations manufacturing facility at Bachupally, Hyderabad was completed by the U.S. FDA and the Company was issued a Form 483 with 11 observations. In December 2017, the U.S. FDA issued an EIR which indicates the closure of the audit for this facility. In July 2017, inspection of the Company’s API facility in Cuernavaca, Mexico was completed by the U.S. FDA with zero observations, and the U.S. FDA issued an EIR in April 2018 indicating the closure of the audit for this facility. The inspection of the Company’s API facility in Mirfield, United Kingdom was completed by the U.S. FDA on September 15, 2017, and the Company was issued a Form 483 with three observations. The Company responded to the observations identified by the U.S. FDA, and the U.S. FDA issued an EIR on April 24, 2018, which indicates the closure of the audit for this facility. In March 2018, inspection of two of the Company’s API manufacturing facilities namely, the API Hyderabad Plant 1 and the API Hyderabad Plant 3, was completed by the U.S. FDA with four and five observations, respectively. The observations at API Hyderabad Plant 3 were related to procedures and facility maintenance. The Company has responded to the observations relating to both these facilities and believes that it can address all these observations comprehensively in a timely manner. In June 2018, an inspection of the Company’s API Srikakulam Plant (SEZ) was completed by the U.S.FDA with zero observations. |
Inspection by the regulatory au
Inspection by the regulatory authority of Bavaria, Germany | 12 Months Ended |
Mar. 31, 2018 | |
Bavaria, Germany [Member] | |
Inspection By Regulatory Authority [Line Items] | |
Disclosure Of Inspection By Regulatory Authority Explanatory | 37. Inspection by the regulatory authority of Bavaria, Germany In August 2017, the Company’s German subsidiary betapharm Arzneimittel GmbH received a letter from a regulatory authority of Bavaria, Germany (the Regierung von Oberbayern, which is the Central Authority for Supervision of Medicinal Products in Bavaria of the Upper Bavarian government) (the “Regulator”), that the GMP compliance certificate for the Company’s formulations manufacturing facility at Bachupally, Hyderabad was not renewed as the result of GMP compliance deviations identified in an inspection. Consequently, this manufacturing facility was not permitted to export products to the European Union (the “EU”) until satisfactory resolution of the issues identified in the inspection and renewal of the facility’s GMP compliance certificate. The manufacturing facility was re-inspected in January 2018 and the status of non-compliance was withdrawn. The facility is now permitted to dispatch approved products to the EU. Furthermore, on September 7, 2017, the Regulator concluded an inspection of the Company’s formulations manufacturing facility at Duvvada, Visakhapatnam, with zero critical and six major observations. Products manufactured at the facility are not currently exported to the EU. The Company submitted a Corrective and Preventive Action Plan (“CAPA”) to the Regulator in this regard which was accepted by the Regulator. Consequently, the Regulator permitted the Company to start production from this facility for the EU market. The German Regulator intends to re-inspect this facility by the end of calendar year 2018. |
Venezuela subsidiary operations
Venezuela subsidiary operations | 12 Months Ended |
Mar. 31, 2018 | |
VENEZUELA [member] | |
Disclosure of Impact of Exchange Rate Overhaul [Line Items] | |
Disclosure of impact of exchange rate overhaul [Text Block] | 38. Venezuela subsidiary operations Dr. Reddy's Venezuela, C.A., a wholly-owned subsidiary of the Company, was primarily engaged in the import of pharmaceutical products from the parent company and other subsidiaries of the Company and the sale of such products in Venezuela. Overhaul of the exchange rate system in Venezuela In February 2015, the Venezuelan government launched an overhaul of its then existing exchange rate system and introduced a new exchange rate mechanism. The Marginal Currency System (known as "SIMADI") was the third tier in the new three-tier exchange rate regime and allowed for legal trading of the Venezuelan bolivar for foreign currency with fewer restrictions than other mechanisms in Venezuela (CENCOEX and SICAD). The new second tier (known as “SICAD”) was introduced with an initial rate of approximately 12 VEF per U.S.$1.00. The first tier (known as “CENCOEX”), the official exchange rate, was unchanged and sold dollars at 6.3 VEF per U.S.$1.00 for preferential goods. In February 2016, the Venezuelan government announced further changes to its foreign currency exchange mechanisms, including the devaluation of its official exchange rate. The following changes became effective as of March 10, 2016: ⋅ The CENCOEX preferential rate was replaced with a new "DIPRO" rate. The DIPRO rate is only available for purchases and sales of essential items. Further, the preferential exchange rate was devalued from 6.3 VEF per U.S.$1.00 to 10 VEF per U.S.$1.00. ⋅ The SICAD exchange rate mechanism, which last auctioned USD for 13 VEF per U.S.$1.00, was eliminated. ⋅ The SIMADI exchange rate mechanism was replaced with a new "DICOM" rate, which governs all transactions not subject to the DIPRO exchange rate and will fluctuate according to market supply and demand. The Company fully considered all the aforesaid developments, facts and circumstances and, following the guidance available in IAS 21, determined that it was appropriate to use the SIMADI/DICOM rate for translating the monetary assets and liabilities of the Venezuelan subsidiary as at various reporting dates. Year ended Particulars March 31, 2015 March 31, 2016 Foreign exchange loss due to currency devaluation and translation of monetary assets and liabilities using SIMADI/DICOM rate recorded under finance expense Rs. 843 Rs. 4,621 Impact of inventory write down and reversal of export incentives recorded under cost of revenues - 341 Impairment of property, plant and equipment recorded under selling, general and administrative expenses - 123 Total Rs. 843 Rs. 5,085 Update for the year ended March 31, 2017 Revenues for the year ended March 31, 2017 were Rs.17 (VEF 162). During the year ended March 31, 2017, the Company received approvals from the Venezuelan government to repatriate U.S.0.4 at the preferential rate of 10 VEF per U.S.1.00. The Company applied the DICOM rate for translating the financial statements of the Venezuelan subsidiary for the year ended March 31, 2017. As a result, foreign exchange loss of Rs.41 was recognized for the year ended March 31, 2017. Update for the year ended March 31, 2018 No revenues were recorded for the year ended March 31, 2018. During the year ended March 31, 2018, the Company has not received any approvals from the Venezuelan government to repatriate funds from importation of pharmaceutical products at the DIPRO preferential rate. The Company has applied the DICOM rate for translating the financial statements of the Venezuelan subsidiary for the year ended March 31, 2018. In January 2018, the government announced further changes to the foreign exchange system and abolished the DIPRO preferential rate. As a result, foreign exchange loss of Rs.29 was recognized by the Company for the year ended March 31, 2018. As of March 31, 2018, the DICOM rate was VEF 49,375 per U.S.$1.00. |
Contingencies
Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies | 39. Contingencies The Company is involved in disputes, lawsuits, claims, governmental and/or regulatory inspections, inquiries, investigations and proceedings, including patent and commercial matters that arise from time to time in the ordinary course of business. The more significant matters are discussed below. Most of the claims involve complex issues. Often, these issues are subject to uncertainties and therefore the probability of a loss, if any, being sustained and an estimate of the amount of any loss is difficult to ascertain. Consequently, for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. This is due to a number of factors, including: the stage of the proceedings (in many cases trial dates have not been set) and the overall length and extent of pre-trial discovery; the entitlement of the parties to an action to appeal a decision; clarity as to theories of liability; damages and governing law; uncertainties in timing of litigation; and the possible need for further legal proceedings to establish the appropriate amount of damages, if any. In these cases, the Company discloses information with respect to the nature and facts of the case. The Company also believes that disclosure of the amount sought by plaintiffs, if that is known, would not be meaningful with respect to those legal proceedings. Although there can be no assurance regarding the outcome of any of the legal proceedings or investigations referred to in this Note, the Company does not expect them to have a materially adverse effect on its financial position, as it believes that the likelihood of loss in excess of amounts accrued (if any) is not probable. However, if one or more of such proceedings were to result in judgments against the Company, such judgments could be material to its results of operations in a given period. Product and patent related matters Matters relating to National Pharmaceutical Pricing Authority Norfloxacin, India litigation The Company manufactures and distributes Norfloxacin, a formulations product, and in limited quantities, the active pharmaceutical ingredient norfloxacin. Under the Drugs Prices Control Order (the “DPCO”), the National Pharmaceutical Pricing Authority (the “NPPA”) established by the Government of India had the authority to designate a pharmaceutical product as a “specified product” and fix the maximum selling price for such product. In 1995, the NPPA issued a notification and designated Norfloxacin as a “specified product” and fixed the maximum selling price. In 1996, the Company filed a statutory Form III before the NPPA for the upward revision of the maximum selling price and a writ petition in the Andhra Pradesh High Court (the “High Court”) challenging the validity of the designation on the grounds that the applicable rules of the DPCO were not complied with while fixing the maximum selling price. The High Court had previously granted an interim order in favor of the Company; however it subsequently dismissed the case in April 2004. The Company filed a review petition in the High Court in April 2004 which was also dismissed by the High Court in October 2004. Subsequently, the Company appealed to the Supreme Court of India, New Delhi (the “Supreme Court”) by filing a Special Leave Petition. During the year ended March 31, 2006, the Company received a notice from the NPPA demanding the recovery of the price charged by the Company for sales of Norfloxacin in excess of the maximum selling price fixed by the NPPA, which was Rs.285 including interest. The Company filed a writ petition in the High Court challenging this demand order. The High Court admitted the writ petition and granted an interim order, directing the Company to deposit 50% of the principal amount claimed by the NPPA, which was Rs.77. The Company deposited this amount with the NPPA in November 2005. In February 2008, the High Court directed the Company to deposit an additional amount of Rs.30, which was deposited by the Company in March 2008. In November 2010, the High Court allowed the Company’s application to include additional legal grounds that the Company believed strengthened its defense against the demand. For example, the Company added as grounds that trade margins should not be included in the computation of amounts overcharged, and that it was necessary for the NPPA to set the active pharmaceutical ingredient price before the process of determining the ceiling on the formulation price. In October 2013, the Company filed an additional writ petition before the Supreme Court challenging the inclusion of Norfloxacin as a “specified product” under the DPCO. In January 2015, the NPPA filed a counter affidavit stating that the inclusion of Norfloxacin was based upon the recommendation of a committee consisting of experts in the field. On July 20, 2016, the Supreme Court remanded the matters concerning the inclusion of Norfloxacin as a “specified product” under the DPCO back to the High Court for further proceedings. During the three months ended September 30, 2016, the Supreme Court dismissed the Special Leave Petition pertaining to the fixing of prices for Norfloxacin formulations. During the three months ended December 31, 2016, a writ petition pertaining to Norfloxacin was filed by the Company with the Delhi High Court. Upon the request of the respondents to file a counter, the Delhi High Court has adjourned the matter to November 26, 2018. Based on its best estimate, the Company has recorded a provision for potential liability for sale proceeds in excess of the notified selling prices, including the interest thereon, and believes that the likelihood of any further liability that may arise on account of penalties pursuant to this litigation is not probable. Litigation relating to Cardiovascular and Anti-diabetic formulations In July 2014, the NPPA, pursuant to the guidelines issued in May 2014 and the powers granted by the Government of India under the Drugs (Price Control) Order, 2013, issued certain notifications regulating the prices for 108 formulations in the cardiovascular and antidiabetic therapeutic areas. The Indian Pharmaceutical Alliance (“IPA”), in which the Company is a member, filed a writ petition in the Bombay High Court challenging the notifications issued by the NPPA on the grounds that they were ultra vires, ex facie and ab initio void. The Bombay High Court issued an order to stay the writ in July 2014. On September 26, 2016, the Bombay High Court dismissed the writ petition filed by the IPA and upheld the validity of the notifications/orders passed by the NPPA in July 2014. Further, on October 25, 2016, the IPA filed a Special Leave Petition with the Supreme Court, which was dismissed by the Supreme Court. During the three months ended December 31, 2016, the NPPA issued show-cause notices relating to allegations that the Company exceeded the notified maximum prices for 11 of its products. The Company has responded to these notices. On March 20, 2017, the IPA filed an application before the Bombay High Court for the recall of the judgment of the Bombay High Court dated September 26, 2016. This recall application filed by the IPA was dismissed by the Bombay High Court on October 4, 2017. Further, on December 13, 2017, the IPA filed a Special Leave Petition with the Supreme Court for the recall of the judgment of the Bombay High Court dated October 4, 2017, which was dismissed by Supreme Court on January 10, 2018. During the three months ended March 31, 2017, the NPPA issued notices to the Company demanding payments relating to the foregoing products for the allegedly overcharged amounts, along with interest. On July 13, 2017, in response to a writ petition which the Company had filed, the Delhi High Court set aside all the demand notices of the NPPA and directed the NPPA to provide a personal hearing to the Company and pass a speaking order. A personal hearing in this regard was held on July 21, 2017. On July 27, 2017, the NPPA passed a speaking order along with the demand notice directing the Company to pay an amount of Rs.776. On August 3, 2017, the Company filed a writ petition challenging the speaking order and the demand notice. Upon hearing the matter on August 8, 2017, the Delhi High Court stayed the operation of the demand order and directed the Company to deposit Rs.100 and furnish a bank guarantee for Rs.676. Pursuant to the order, the Company deposited Rs.100 on September 13, 2017 and submitted a bank guarantee of Rs.676 dated September 15, 2017 to the Registrar General, Delhi High Court. On November 22, 2017, the Delhi High Court directed the Union of India to file a final counter affidavit within six weeks, subsequent to which the Company could file a rejoinder. On May 10, 2018, the counter affidavit was filed by the Union of India. The Company subsequently filed a rejoinder and both were taken on record by the Delhi High Court. The matter has been adjourned to August 8, 2018 for hearing. Based on its best estimate, the Company has recorded a provision of Rs.416 under “Selling, general and administrative expenses” as a potential liability for sale proceeds in excess of the notified selling prices, including the interest thereon, and believes that the likelihood of any further liability that may arise on account of penalties pursuant to this litigation is not probable. However, if the Company is unsuccessful in such litigation, it will be required to remit the sale proceeds in excess of the notified selling prices to the Government of India with interest and could potentially include penalties, which amounts are not readily ascertainable. Other product and patent related matters Nexium United States litigations Five federal antitrust class action lawsuits were brought on behalf of direct purchasers of Nexium®, and ten federal class action lawsuits were brought under both state and federal law on behalf of end-payors of Nexium®. These actions were filed against various generic manufacturers, including the Company and its U.S. subsidiary Dr. Reddy’s Laboratories Inc. These actions were consolidated in the United States District Court for the District of Massachusetts. The complaints alleged that AstraZeneca and the involved generic manufacturers settled patent litigation related to Nexium® capsules in a manner that violated antitrust laws. The Company consistently maintained that its conduct complied with all applicable laws and that the complaints were without merit. In response to a motion for summary judgment made by the Company, the Court granted the motion in part and denied it in part, finding that the plaintiffs had failed to demonstrate that the Company’s settlement of patent litigation with AstraZeneca included any large or unjustified reverse payment, but preserving other claims for trial. On October 20, 2014, the Company reached a settlement with all plaintiffs who had cases pending in the U.S. District Court for the District of Massachusetts. The settlement with the class plaintiffs was subject to the Court’s approval. Under the terms of the settlement, the Company made no payment to the class plaintiffs. Other defendants went to trial and prevailed. The Court granted preliminary approval of the Company’s settlements with the class plaintiffs on January 28, 2015, and granted final approval of such settlements on September 29, 2015. On November 21, 2016, the First Circuit Court of Appeals affirmed the judgment that had been entered in favor of the defendants who tried the case to a verdict. On January 10, 2017, the First Circuit Court of Appeals denied the motions for reconsideration. In addition, two complaints, similar in nature to those referenced above, were filed in the Court of Common Pleas in Philadelphia, Pennsylvania by plaintiffs who chose to opt out of the class action lawsuit. No dispositive motions have been filed in these actions. The Company believes that the likelihood of any liability that may arise on account of lawsuits of the plaintiffs who opted out of the class action is not probable. Accordingly, no provision has been made in these consolidated financial statements. Child resistant packaging matter In May 2012, the Consumer Product Safety Commission (the “CPSC”) requested that Dr. Reddy’s Laboratories Inc., a wholly-owned subsidiary of the Company in the United States, provide certain information with respect to compliance with requirements of special packaging for child resistant blister packs for 6 products sold by the Company in the United States during the period commencing in 2002 through 2011. The Company provided the requested information. The CPSC subsequently alleged in a letter dated April 30, 2014 that the Company had violated the Consumer Product Safety Act (the “CPSA”) and the Poison Prevention Packaging Act (the “PPPA”) and that the CPSC intended to seek civil penalties. Specifically, the CPSC asserted, among other things, that from or about August 14, 2008 through June 1, 2012, the Company sold prescription drugs having unit dose packaging that failed to comply with the CPSC's special child resistant packaging regulations under the PPPA and failed to issue general certificates of conformance. In addition, the CPSC asserted that the Company violated the CPSA by failing to immediately advise the CPSC of the alleged violations. The Company disagrees with the CPSC’s allegations. Simultaneously, the U.S. Department of Justice (the “DOJ”) began to investigate a sealed complaint which was filed in the United States District Court for the Eastern District of Pennsylvania under the Federal False Claims Act (“FCA”) related to these same issues (the “FCA Complaint”). The Company cooperated with the DOJ in its investigation. The DOJ and all States involved in the investigation declined to intervene in the FCA Complaint. On November 10, 2015, the FCA Complaint was unsealed and the plaintiff whistleblowers, who are two former employees of the Company, proceeded without the DOJ’s and applicable States’ involvement. The unsealed FCA Complaint relates to the 6 blister pack products originally subject to the investigation and also 38 of the Company’s generic prescription products sold in the U.S. in various bottle and cap packaging. The Company filed its response to the FCA Complaint on February 23, 2016 in the form of a motion to dismiss for failure to state a claim upon which relief can be granted. On March 26, 2017, the Court granted the Company’s motion to dismiss, dismissing the FCA Complaint and allowing the plaintiffs one more chance to refile this complaint in an attempt to plead sustainable allegations. On March 29, 2017, the plaintiffs filed their final amended FCA Complaint, which the Company opposed and during the three months ended March 31, 2018, the Company obtained dismissal of the FCA Complaint with prejudice. The plaintiffs filed a petition with the Court requesting that the Court reconsider its decision to dismiss the FCA Complaint with prejudice, and that request was denied. The parallel investigation by the CPSC under the CPSA and the PPPA was referred by the CPSC to the DOJ’s office in Washington, D.C. in April 2016, with the recommendation that the DOJ initiate a civil penalty action against the Company. The CPSC matter referred to the DOJ relates to five of the blister pack products. On January 18, 2018, the Company and the DOJ entered into a settlement of the action and agreed to a consent decree providing for a civil penalty of U.S.$5 (Rs.319), and injunctive relief. The settlement was without adjudication of any issue of fact or law, and the Company has not admitted any violations of law pursuant to this settlement. Namenda United States Litigations In August 2015, Sergeants Benevolent Assoc. Health &; Welfare Fund (“Sergeants”) filed suit against the Company in the United States District Court for the Southern District of New York. Sergeants alleged that certain parties, including the Company, violated federal antitrust laws as a consequence of having settled patent litigation related to the Alzheimer’s drug Namenda® (memantine) tablets during a period from about 2009 until 2010. Sergeants seeks to represent a class of “end-payor” purchasers of Namenda® tablets (i.e., insurers, other third-party payors and consumers). Sergeants seeks damages based upon an allegation made in the complaint that the defendants entered into patent settlements regarding Namenda® tablets for the purpose of delaying generic competition and facilitating the brand innovator’s attempt to shift sales from the original immediate release product to the more recently introduced extended release product. The Company believes that the complaint lacks merit and that the Company’s conduct complied with all applicable laws and regulations. All defendants, including the Company, moved to dismiss the claims. On September 13, 2016, the Court denied these motions. However, the Sergeants case is stayed pending resolution of similar claims in another case in which the Company is not a party ( JM Smith Corp. v. Actavis PLC JM Smith Four other class action complaints, each containing similar allegations to the Sergeants complaint, have also been filed in the U.S. District Court for the Southern District of New York. However, two of those complaints were voluntarily dismissed, and the other two do not name the Company as a defendant. In addition, the State of New York filed an antitrust case in the U.S. District Court for the Southern District of New York. The case brought by the State of New York contained some (but not all) of the allegations set forth in the class action complaints, but the Company was not named as a party. The case brought by the State of New York was dismissed by stipulation on November 30, 2015. The Company believes that the likelihood of any liability that may arise on account of alleged violation of federal antitrust laws is not probable. Accordingly, no provision has been made in these consolidated financial statements. Class Action and Other Civil Litigation on Pricing/Reimbursement Matters On December 30, 2015 and on February 4, 2016, respectively, a class action complaint (the “First Pricing Complaint”) and another complaint (not a class action) (the “Second Pricing Complaint”) were filed against the Company and eighteen other pharmaceutical defendants in State Court in the Commonwealth of Pennsylvania. In these actions, the class action plaintiffs allege that the Company and other defendants, individually or in some cases in concert with one another, have engaged in pricing and price reporting practices in violation of various Pennsylvania state laws. More specifically, the plaintiffs allege that: (1) the Company provided false and misleading pricing information to third party drug compendia companies for the Company’s generic drugs, and such information was relied upon by private third party payers that reimbursed for drugs sold by the Company in the United States, and (2) the Company acted in concert with certain other defendants to unfairly raise the prices of generic divalproex sodium ER (bottle of 80, 500 mg tablets ER 24H) and generic pravastatin sodium (bottle of 500, 10 mg tablets). The First Pricing Complaint was removed to the U.S. District Court for the Eastern District of Pennsylvania (the “E.D.P.A. Federal Court”) and, pending the outcome of the First Pricing Complaint, the Second Pricing Complaint was stayed. On September 25, 2017, the E.D.P.A. Federal Court dismissed all the claims of the plaintiffs in the First Pricing Complaint and denied leave to amend such complaint as futile. Subsequent to this decision, the plaintiffs right to appeal the dismissal of the First Pricing Complaint expired. Further, on November 17, 2016, certain class action complaints were filed against the Company and a number of other pharmaceutical companies as defendants in the E.D.P.A. Federal Court. Subsequently, these complaints were consolidated into one amended complaint as part of a multi-district, multi-product litigation pending with the E.D.P.A. Federal Court. These complaints allege that the Company and the other named defendants have engaged in a conspiracy to fix prices and to allocate bids and customers in the sale of pravastatin sodium tablets and divalproex sodium extended-release tablets in the United States. In March 2017, plaintiffs agreed by stipulation to dismiss Dr. Reddy’s Laboratories Inc. and Dr. Reddy’s Laboratories Limited from the actions related to pravastatin sodium tablets without prejudice. The Company denies any wrongdoing and intends to vigorously defend against these allegations. The Company believes that the likelihood of any liability that may arise on account of any of these complaints is not probable. Accordingly, no provision has been made in these consolidated financial statements. Civil litigation with Mezzion On January 13, 2017, Mezzion Pharma Co. Ltd. and Mezzion International LLC (collectively, “Mezzion”) filed a complaint in the New Jersey Superior Court against the Company and its wholly owned subsidiary in the United States. The complaint pertains to the production and supply of the active pharmaceutical ingredient (“API”) for udenafil (a patented compound) and an udenafil finished dosage product during a period from calendar years 2007 to 2015. Mezzion alleges that the Company failed to comply with the U.S. FDA’s current Good Manufacturing Practices (“cGMP”) at the time of manufacture of the API and finished dosage forms of udenafil and, consequently, that this resulted in a delay in the filing of a NDA for the product by Mezzion. In this regard, the Company filed a motion to dismiss Mezzion’s complaint on the technical grounds that the Court lacks jurisdiction over the Company. In January 2018, the Court denied the Company’s motion to dismiss the complaint on the jurisdictional matter. Company’s interlocutory appeal of the said denial, was also denied. The Company denies any wrongdoing or liability in this regard, and intends to vigorously defend against the claims asserted in Mezzion’s complaint. Any liability that may arise on account of this complaint is unascertainable. Accordingly, no provision was made in the consolidated financial statements of the Company. Shareholder Class Action Litigation On August 25, 2017, a securities class action lawsuit was filed against the Company, its Chief Executive Officer and its Chief Financial Officer in the United States District Court for the District of New Jersey. The Company’s Co-Chairman, its Chief Operating Officer, and Dr. Reddy’s Laboratories, Inc., were also subsequently named as defendants in the case. The operative complaint alleges that the Company made false or misleading statements or omissions in its public filings, in violation of U.S. federal securities laws, and that the Company’s share price dropped and its investors were affected. On May 9, 2018, the Company and other defendants filed a motion to dismiss the complaint in the United States District Court for the District of New Jersey. The Company believes that the asserted claims are without merit and intends to vigorously defend itself against the allegations. Any liability that may arise on account of this complaint is unascertainable. Accordingly, no provision was made in the consolidated financial statements of the Company. Environmental matters Land pollution The Indian Council for Environmental Legal Action filed a writ in 1989 under Article 32 of the Constitution of India against the Union of India and others in the Supreme Court of India for the safety of people living in the Patancheru and Bollarum areas of Medak district of the then existing undivided state of Andhra Pradesh. The Company has been named in the list of polluting industries. In 1996, the Andhra Pradesh District Judge proposed that the polluting industries compensate farmers in the Patancheru, Bollarum and Jeedimetla areas for discharging effluents which damaged the farmers’ agricultural land. The compensation was fixed at Rs.0.0013 per acre for dry land and Rs.0.0017 per acre for wet land. Accordingly, the Company has paid a total compensation of Rs.3. The Andhra Pradesh High Court disposed of the writ petition on February 12, 2013 and transferred the case to the National Green Tribunal (“NGT”), Chennai, India. The interim orders passed in the writ petitions will continue until the matter is decided by the NGT. The NGT has, through its order dated October 30, 2015, constituted a Fact Finding Committee. The NGT has also permitted the alleged polluting industries to appoint a person on their behalf in the Fact Finding Committee. However, the Company, along with the alleged polluting industries, has challenged the constitution and composition of the Fact Finding Committee. The NGT has directed that until all the applications challenging the constitution and composition of the Fact Finding Committee are disposed of, the Fact Finding Committee shall not commence its operation. The NGT, Chennai in a judgment dated October 24, 2017, disposed of the matter. The Bulk Drug Manufacturers Association of India (“BDMAI”), in which the Company is a member, subsequently filed a review petition against the judgment on various aspects. The NGT, Delhi, in a judgment dated November 16, 2017 in another case in which the Company is not a party, stated that the moratorium imposed in the Patancheru and Bollaram areas shall continue until the Ministry of Environment, Forest and Climate Change passes an order keeping in view the needs of the environment and public health. The Company believes that any additional liability that might arise in this regard is not material to the consolidated financial statements. Accordingly, no provision relating to these claims has been made in the consolidated financial statements as of March 31, 2018. Water pollution and air pollution During the year ended March 31, 2012, the Company, along with 14 other companies, received a notice from the Andhra Pradesh Pollution Control Board (the “APP Control Board”) to show cause as to why action should not be initiated against them for violations under the Indian Water Pollution Act and the Indian Air Pollution Act. Furthermore, the APP Control Board issued orders to the Company to (i) stop production of all new products at the Company’s manufacturing facilities in Hyderabad, India without obtaining a “Consent for Establishment”, (ii) cease manufacturing products at such facilities in excess of certain quantities specified by the APP Control Board and (iii) furnish a bank guarantee to assure compliance with the APP Control Board’s orders. The Company appealed the APP Control Board orders to the Andhra Pradesh Pollution Appellate Board (the “APP Appellate Board”). The APP Appellate Board, on the basis of a report of a fact-finding advisory committee, recommended to the Andhra Pradesh Government to allow expansion of units fully equipped with Zero-Liquid Discharge (“ZLD”) facilities and otherwise found no fault with the Company (on certain conditions). The APP Appellate Board’s decision was challenged by one of the petitioners in the National Green Tribunal and the matter is currently pending before it. Separately, the Andhra Pradesh Government, following recommendations of the APP Appellate Board, published a notification in July 2013 that allowed expansion of production of all types of existing bulk drug and bulk drug intermediate manufacturing units subject to the installation of ZLD facilities and the outcome of cases pending in the National Green Tribunal. Importantly, the notification directed pollution load of industrial units to be assessed at the point of discharge (if any) as opposed to point of generation. In September 2013, the Ministry of Environment and Forests, based on the revised Comprehensive Environment Pollution Index, issued a notification that re-imposed a moratorium on expansion of industries in certain areas where some of the Company’s manufacturing facilities are located. This notification overrides the Andhra Pradesh Government’s notification that conditionally permitted expansion . Indirect taxes related matters Distribution of input service tax credits The Central Excise Authorities have issued various demand notices to the Company objecting to the Company’s methodology of distributing input service tax credits claimed for one of the Company’s facilities. The below table shows the details of each such demand notice, the amount demanded and the current status of the Company’s responsive actions. Period covered under the notice Amount demanded Status March 2008 to September 2009 Rs.102 plus penalties of Rs.102 and interest The Company has filed an appeal before the CESTAT October 2009 to March 2011 Rs.125 plus penalties of Rs.100 and interest The Company has filed an appeal before the CESTAT April 2011 to March 2012 Rs.51 plus interest and penalties The Company has filed an appeal before the CESTAT April 2012 to March 2013 Rs.54 plus interest and penalties The Company has filed an appeal before the CESTAT April 2013 to March 2014 Rs.69 plus interest and penalties The Company has filed an appeal before the CESTAT April 2014 to March 2015 Rs.108 plus interest and penalties The Company has filed an appeal before the CESTAT April 2015 to March 2016 Rs.157 plus interest and penalties The Company is in the process of responding to the notice The Company believes that the likelihood of any liability that may arise on account of the allegedly inappropriate distribution of input service tax credits is not probable. Accordingly, no provision relating to these claims has been made in these consolidated financial statements as of March 31, 2018. Value Added Tax (“VAT”) matter The Company has received various demand notices from the Government of Telangana’s Commercial Taxes Department objecting to the Company’s methodology of calculation of VAT input credit. Period covered under Amount demanded Status April 2006 to March 2009 Rs.66 plus 10% penalty The Company has filed an appeal before the Sales Tax Appellate Tribunal April 2009 to March 2011 Rs.59 plus 10% penalty The Company has filed an appeal before the Sales Tax Appellate Tribunal April 2011 to March 2013 Rs.16 plus 10% penalty The Appellate Deputy Commissioner issued an order partially in favor of the Company The Company has recorded a provision of Rs.27 as of March 31, 2018, and believes that the likelihood of any further liability that may arise on account of the allegedly inappropriate claims to VAT credits is not probable. Others Additionally, the Company is in receipt of various demand notices from the Indian Sales and Service Tax authorities. The disputed amount is Rs.278. The Company has responded to such demand notices and believes that the chances of any liability arising from such notices are less than probable. Accordingly, no provision is made in these financial statements as of March 31, 2018. Fuel Surcharge Adjustments The Andhra Pradesh Electricity Regulatory Commission (the “APERC”) passed various orders approving the levy of Fuel Surcharge Adjustment (“FSA”) charges for the period from April 1, 2008 to March 31, 2013 by power distribution companies from all the consumers of electricity in the then existing undivided state of Andhra Pradesh, India where the Company’s headquarters and principal manufacturing facilities are located. Separate writ petitions filed by the Company for various periods, challenging and questioning the validity and legality of this levy of FSA charges by the APERC, are pending before the High Court of Andhra Pradesh and the Supreme Court of India. The total amount approved by APERC for collection by the power distribution companies from the Company in respect of FSA charges for the period from April 1, 2008 to March 31, 2013 is Rs.482. After taking into account all of the available information and legal provisions, the Company has recorded Rs.219 as the potential liability towards FSA charges. However, the Company has paid, under protest, an amount of Rs.354 as demanded by the power distribution companies as part of monthly electricity bills. The Company remains exposed to additional financial liability should the orders passed by the APERC be upheld by the Courts. During the three months ended June 30, 2016, the Supreme Court of India dismissed the Special Leave Petition filed by the Company in this regard for the period from April 1, 2012 to March 31, 2013. As a result, for the quarter ended June 30, 2016, the Company recognized an expenditure of Rs.55 (by de-r |
Nature of Expense
Nature of Expense | 12 Months Ended |
Mar. 31, 2018 | |
Expenses by nature [abstract] | |
Nature of Expense | 40. Nature of Expense For the Year Ended March 31, Employee benefits 2018 2017 2016 Cost of revenues Rs. 10,434 Rs. 10,515 Rs. 9,574 Selling, general and administrative expenses 17,004 15,838 16,641 Research and development expenses 4,711 4,716 4,959 Rs. 32,149 Rs. 31,069 Rs. 31,174 For the Year Ended March 31, Depreciation and amortization 2018 2017 2016 Cost of revenues Rs. 6,595 Rs. 6,117 Rs. 5,241 Selling, general and administrative expenses 3,883 3,935 3,933 Research and development expenses 1,232 1,225 1,076 Rs. 11,710 Rs. 11,277 Rs. 10,250 In addition, for details relating to cost of material consumed refer to Note 11 of these consolidated financial statements. |
Change in the functional curren
Change in the functional currency of a foreign operation | 12 Months Ended |
Mar. 31, 2018 | |
Change in the functional currency of a foreign operation [Line Items] | |
Change in the functional currency of a foreign operation | 41. Change in the functional currency of a foreign operation Until July 31, 2016, the functional currency of the Swiss Subsidiary, was determined to be the Indian rupee. During the three months ended September 30, 2016, the Swiss Subsidiary borrowed U.S.$350 from certain institutional lenders to acquire eight ANDAs in the United States (refer to Note 33 of these consolidated financial statements for further details). The Company believes that the aforesaid transactions have had significant impact on the primary economic environment of the Swiss Subsidiary and, accordingly, the Swiss Subsidiary’s operating, investing and financing activities will have a greater reliance on the United States dollar. Accordingly, effective August 1, 2016, the functional currency of the Swiss Subsidiary was changed to the United States dollar. The change in functional currency of the Swiss subsidiary was applied prospectively from date of change in accordance with IAS 21, “The Effect of Changes in Foreign Exchange Rate”. |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Events After Reporting Period [Abstract] | |
Subsequent events | 42. Subsequent events None |
Organizational structure
Organizational structure | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Significant Investments In Subsidiaries Associates And Joint Ventures [Abstract] | |
Disclosure Of Significant Investments In Subsidiaries Associates And Joint Ventures Explanatory [Text Block] | 43. Organizational structure Dr. Reddy’s Laboratories Limited is the parent company. Tabulated below is the list of subsidiaries and joint ventures as of March 31, 2018: Name of the subsidiary/joint venture Country of Percentage of Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. Malaysia 100 % (3) Aurigene Discovery Technologies Inc. U.S.A. 100 % (3) Aurigene Discovery Technologies Limited India 100 % beta Institut gemeinnützige GmbH Germany 100 % (8) betapharm Arzneimittel GmbH Germany 100 % (8) Cheminor Investments Limited India 100 % Cheminor Employees Welfare Trust India Refer to footnote 16 Chirotech Technology Limited United Kingdom 100 % (5) Dr. Reddy’s Research Foundation India Refer to footnote 16 Dr. Reddy’s Farmaceutica Do Brasil Ltda. Brazil 100 % Dr. Reddy’s Laboratories (EU) Limited United Kingdom 100 % (10) Dr. Reddy’s Laboratories (Proprietary) Limited South Africa 100 % (10) Dr. Reddy’s Laboratories (UK) Limited United Kingdom 100 % (5) Dr. Reddy’s Laboratories Canada, Inc. Canada 100 % (10) Dr. Reddy's Laboratories Chile SPA. (from June 16, 2017) Chile 100 % (10) Dr. Reddy’s Laboratories Inc. U.S.A. 100 % (10) Dr. Reddy’s Laboratories International SA Switzerland 100 % (10) Dr. Reddy’s Laboratories Japan KK Japan 100 % (10) Dr. Reddy’s Laboratories Kazakhstan LLP Kazakhstan 100 % (10) Dr. Reddy’s Laboratories Louisiana LLC U.S.A. 100 % (6) Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. (from July 10, 2017) Malaysia 100 % (10) Dr. Reddy’s Laboratories New York, Inc. U.S.A. 100 % (10) Dr. Reddy’s Laboratories Romania S.R.L. Romania 100 % (10) Dr. Reddy’s Laboratories SA Switzerland 100 % Dr. Reddy's Laboratories Taiwan Limited (from February 23, 2018) Taiwan 100 % (10) Dr. Reddy’s Laboratories Tennessee, LLC U.S.A. 100 % (6) Dr. Reddy’s Laboratories, LLC Ukraine 100 % (10) Dr. Reddy’s New Zealand Limited. New Zealand 100 % (10) Dr. Reddy’s Singapore PTE Limited Singapore 100 % (10) Dr. Reddy’s Srl Italy 100 % (11) Dr. Reddy's Bio-Sciences Limited India 100 % Dr. Reddy's Laboratories (Australia) Pty. Limited Australia 100 % (10) Dr. Reddy's Laboratories SAS Colombia 100 % (10) Dr. Reddy's Research and Development B.V. (formerly Octoplus B.V.) Netherlands 100 % (12) Dr. Reddy's Venezuela, C.A. Venezuela 100 % (10) Dr. Reddy’s (WUXI) Pharmaceutical Company Limited (from June 2, 2017) China 100 % (10) DRANU LLC U.S.A. 50 % (13) DRES Energy Private Limited India 26 % (14) DRL Impex Limited India 100 % (15) DRSS Solar Power Private Limited (liquidated on November 1, 2017) India 26 % (14) (2) Eurobridge Consulting B.V. Netherlands 100 % (1) Idea2Enterprises (India) Pvt. Limited India 100 % Imperial Credit Private Limited India 100 % Industrias Quimicas Falcon de Mexico, S.A. de CV Mexico 100 % Kunshan Rotam Reddy Pharmaceutical Co. Limited China 51.33 % (4) Lacock Holdings Limited Cyprus 100 % (10) OOO Dr. Reddy's Laboratories Limited Russia 100 % (10) Name of the subsidiary Country of Percentage of Direct/Indirect OOO DRS LLC Russia 100 % (9) Promius Pharma LLC U.S.A. 100 % (6) Reddy Antilles N.V. Netherlands 100 % Reddy Holding GmbH Germany 100 % (10) Reddy Netherlands B.V. Netherlands 100 % (10) Reddy Pharma Iberia SA Spain 100 % (10) Reddy Pharma Italia S.R.L. Italy 100 % (7) Reddy Pharma SAS France 100 % (10) Regkinetics Services Limited (formerly Dr. Reddy’s Pharma SEZ Limited) India 100 % (1) Indirectly owned through Dr. Reddy’s Research and development B.V. (from March 29, 2018), formerly a subsidiary of Reddy Antilles N.V. (2) Entities liquidated during the year. (3) Indirectly owned through Aurigene Discovery Technologies Limited. (4) Kunshan Rotam Reddy Pharmaceutical Co. Limited is a subsidiary, as the Company holds a 51.33% stake. However, the Company accounts for this investment by the equity method and does not consolidate it in the Company’s financial statements. (5) Indirectly owned through Dr. Reddy’s Laboratories (EU) Limited. (6) Indirectly owned through Dr. Reddy’s Laboratories Inc. (7) Indirectly owned through Lacock Holdings Limited. (8) Indirectly owned through Reddy Holding GmbH. (9) Indirectly owned through Eurobridge Consulting B.V. (10) Indirectly owned through Dr. Reddy’s Laboratories SA. (11) Indirectly owned through Reddy Pharma Italia S.R.L. (12) Indirectly owned through Reddy Netherlands B.V. (13) DRANU LLC is consolidated in accordance with guidance available in IFRS 10. (14) Accounted in accordance with IFRS 11 ‘Joint Arrangements’. (15) Indirectly owned through Idea2Enterprises (India) Pvt. Limited. (16) The Company does not have any equity interests in this entity, but has significant influence or control over it. |
Basis of preparation of finan52
Basis of preparation of financial statements (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Basis of preparation of financial statements [Abstract] | |
Statement of compliance | a. Statement of compliance These consolidated financial statements as at and for the year ended March 31, 2018 have been prepared in accordance with the International Financial Reporting Standards and its interpretations (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements have been prepared for the Company as a going concern on the basis of relevant IFRS that are effective or elected for early adoption at the Company’s annual reporting date, March 31, 2018. These consolidated financial statements were authorized for issuance by the Company’s Board of Directors on June 15, 2018. |
Basis of measurement | b. Basis of measurement These consolidated financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position: · derivative financial instruments are measured at fair value; · available-for-sale financial assets are measured at fair value; · employee defined benefit assets/(liability) are recognized as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the defined benefit obligation; · long term borrowings, except obligations under finance leases, are measured at amortized cost using the effective interest rate method; · share-based payments; · held-to-maturity investments are measured at amortized cost using the effective interest rate method; · loans and receivables are measured at amortized cost using the effective interest rate method; and · investments in joint ventures are accounted for using the equity method. |
Functional and presentation currency | c. Functional and presentation currency These consolidated financial statements are presented in Indian rupees, which is the functional currency of the parent company. All financial information presented in Indian rupees has been rounded to the nearest million. In respect of certain non-Indian subsidiaries that operate as marketing arms of the parent company in their respective countries/regions, the functional currency has been determined to be the functional currency of the parent company (i.e., the Indian rupee). The operations of these entities are largely restricted to importing of finished goods from the parent company in India, sales of these products in the foreign country and making of import payments to the parent company. The cash flows realized from sales of goods are available for making import payments to the parent company and cash is paid to the parent company on a regular basis. The costs incurred by these entities are primarily the cost of goods imported from the parent company. The financing of these subsidiaries is done directly or indirectly by the parent company. In respect of subsidiaries whose operations are self-contained and integrated within their respective countries/regions, the functional currency has been generally determined to be the local currency of those countries/regions, unless use of a different currency is considered appropriate. |
Convenience translation (unaudited) | d. Convenience translation (unaudited) These consolidated financial statements have been prepared in Indian rupees. Solely for the convenience of the reader, these consolidated financial statements as of and for the year ended March 31, 2018 have been translated into U.S. dollars at the certified foreign exchange rate of U.S.$1.00 = Rs.65.11, as published by the Federal Reserve Board of Governors on March 30, 2018. No representation is made that the Indian rupee amounts have been, could have been or could be converted into U.S. dollars at such a rate or any other rate. Such convenience translation is not subject to audit by the Company’s independent auditors. |
Use of estimates and judgments | e. Use of estimates and judgments The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes: · Note 3(a) Evaluation of joint arrangements; · Note 2(c) Assessment of functional currency; · Note 3(c) and 30 Financial instruments; · Notes 3(d) Business combinations; · Notes 3(e) and (f) Useful lives of property, plant and equipment and intangible assets; · Note 3(h) Valuation of inventories; · Notes 3(i), 6, 7 and 8 Measurement of recoverable amounts of cash-generating units; · Note 3 (j) and 18 Assets and obligations relating to employee benefits; · Note 3 (j) Share-based payments; · Note 3(k) Provisions and other accruals; · Note 3(l) Sales returns, rebates and chargeback provisions; · Note 3(o) Evaluation of recoverability of deferred tax assets; and · Note 39 Contingencies |
Significant accounting polici53
Significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Significant accounting policies [Abstract] | |
Basis of consolidation | Subsidiaries Subsidiaries are all entities (including special purpose entities) that are controlled by the Company. Control exists when the Company is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive. The financial statements of subsidiaries are included in these consolidated financial statements from the date that control commences until the date that control ceases. For the purpose of preparing these consolidated financial statements, the accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Company. Joint arrangements (equity accounted investees) Joint arrangements are those arrangements over which the Company has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. A joint arrangement is either a joint operation or a joint venture. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The carrying value of the Company’s investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The Company does not consolidate entities where the non-controlling interest (“NCI”) holders have certain significant participating rights that provide for effective involvement in significant decisions in the ordinary course of business of such entities. Investments in such entities are accounted by the equity method of accounting. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Company has an obligation or has made payments on behalf of the investee. For the purpose of preparing these consolidated financial statements, the accounting policies of joint ventures have been changed where necessary to align them with the policies adopted by the Company. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in full while preparing these consolidated financial statements. Unrealized gains or losses arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee. Acquisition of non-controlling interests Acquisition of some or all of the NCI is accounted for as a transaction with equity holders in their capacity as equity holders. Consequently, the difference arising between the fair value of the purchase consideration paid and the carrying value of the NCI is recorded as an adjustment to retained earnings that is attributable to the parent company. The associated cash flows are classified as financing activities. No goodwill is recognized as a result of such transactions. Loss of Control Upon loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any NCIs and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in the consolidated income statement. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial asset, depending on the level of influence retained. |
Foreign currency | b. Foreign currency Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of entities within the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in the consolidated income statement in the period in which they arise. However, foreign currency differences arising from the translation of the following items are recognized in other comprehensive income (“OCI”): - available-for-sale financial assets (except on impairment, in which case foreign currency differences that have been recognized in OCI are reclassified to the consolidated income statement); - a financial liability designated as a hedge of the net investment in a foreign operation, to the extent that the hedge is effective; and - qualifying cash flow hedges, to the extent that the hedges are effective. When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date. Foreign operations Foreign exchange gains and losses arising from a monetary item receivable from a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of the net investment in the foreign operation and are recognized in OCI and presented within equity as a part of foreign currency translation reserve (“FCTR”). In case of foreign operations whose functional currency is different from the parent company’s functional currency, the assets and liabilities of such foreign operations, including goodwill and fair value adjustments arising upon acquisition, are translated to the reporting currency at exchange rates at the reporting date. The income and expenses of such foreign operations are translated to the reporting currency at the monthly average exchange rates prevailing during the year. Resulting foreign currency differences are recognized in OCI and presented within equity as part of FCTR. When a foreign operation is disposed of, in part or in full, such that control, significant influence or joint control is lost, the relevant amount in the FCTR is transferred to the consolidated income statement. |
Financial instruments | c. Financial instruments Non-derivative financial instruments Non-derivative financial instruments consist of investments in mutual funds, bonds, equity securities, trade and other receivables, cash and cash equivalents, loans and borrowings, trade and other payables and certain other assets and liabilities. Non-derivative financial instruments are recognized initially at fair value plus any directly attributable transaction costs, except for those instruments that are designated as being fair value through profit and loss upon initial recognition. Subsequent to initial recognition, non-derivative financial instruments are measured as described below. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. For this purpose, “short-term” means investments having original maturities of three months or less from the date of investment. Bank overdrafts that are repayable on demand form an integral part of the Company’s cash management and are included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flows. Held-to-maturity investments Held-to-maturity investments consist of investments in bonds with fixed or determinable payments and fixed maturity that the Company has the positive intention and the ability to hold to maturity. Such investments are initially measured at fair value, with subsequent measurements made at amortized cost using the effective interest rate method. Other investments Other investments consist of term deposits with original maturities of more than three months, and investments in mutual funds and equity securities. Investments in mutual funds and equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses, are recognized in OCI and presented within equity under “fair value reserve”. When an investment is derecognized, the cumulative gain or loss in equity is transferred to the consolidated income statement. Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is expected within one year or within the normal operating cycle of the business. After initial recognition, trade payables are recognized at amortized cost using the effective interest rate method. Trade receivables Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade receivables are classified as current assets if the collection is expected within one year or within the normal operating cycle of the business. After initial recognition, trade receivables are recognized at amortized cost using effective interest rate method. Debt instruments and other financial liabilities The Company initially recognizes debt instruments issued on the date that they originate. All other financial liabilities are recognized initially on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. These are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. Other non-derivative financial instruments Other non-derivative financial instruments are initially recognized at fair value. Subsequent to initial recognition, these assets are measured at amortized cost using the effective interest method, less any impairment losses. De-recognition of financial assets and liabilities The Company derecognizes a financial asset when the contractual right to the cash flows from that asset expires, or when it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing, at amortized cost, for the proceeds received. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid is recognized as profit or loss in the consolidated income statement. Offsetting financial assets and liabilities Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right and ability to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative financial instruments The Company is exposed to exchange rate risk which arises from its foreign exchange revenues and expenses, primarily in U.S. dollars, U.K. pounds sterling, Russian roubles, Brazilian reals, South African rands (“ZAR”), Romanian new leus (“RON”) and Euros, and foreign currency debt in U.S. dollars, Russian roubles, Ukrainian hryvnias and Euros. The Company uses foreign exchange forward contracts, option contracts and swap contracts (derivative financial instruments) to mitigate its risk of changes in foreign currency exchange rates. The Company also uses non-derivative financial instruments as part of its foreign currency exposure risk mitigation strategy. Hedges of highly probable forecast transactions The Company classifies its derivative financial instruments that hedge foreign currency risk associated with highly probable forecast transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recognized in OCI and presented within equity under “hedging reserve” and reclassified to the consolidated income statement as revenue in the period corresponding to the occurrence of such transactions. The ineffective portion of such cash flow hedges is recorded in the consolidated income statement as finance expense immediately. The Company also designates certain non-derivative financial liabilities, such as foreign currency borrowings from banks, as hedging instruments for hedge of foreign currency risk associated with highly probable forecast transactions. Accordingly, the Company applies cash flow hedge accounting to such relationships. Re-measurement gain/loss on such non-derivative financial liabilities is recognized in OCI and presented within equity under “hedging reserve” and reclassified to the consolidated income statement as revenue in the period corresponding to the occurrence of the forecast transactions. Upon initial designation of a hedging instrument, the Company formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80%-125% relative to the gain or loss on the hedged items. For cash flow hedges to be “highly effective”, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI, remains there until the forecast transaction occurs. If the forecast transaction is no longer expected to occur, then the balance in OCI is recognized immediately in the consolidated income statement. Hedges of recognized assets and liabilities Changes in the fair value of derivative contracts that economically hedge monetary assets and liabilities in foreign currencies, and for which no hedge accounting is applied, are recognized in the consolidated income statement. The changes in fair value of such derivative contracts, as well as the foreign exchange gains and losses relating to the monetary items, are recognized as part of “finance income/(expense), net” in the consolidated income statement. Hedges of changes in the interest rates Consistent with its risk management policy, the Company uses interest rate swaps to mitigate the risk of changes in interest rates. The Company does not use them for trading or speculative purposes. |
Business combinations | d. Business combinations The Company uses the acquisition method of accounting to account for business combinations that occurred on or after April 1, 2009. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another. Control exists when the Company is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive. The Company measures goodwill as of the applicable acquisition date at the fair value of the consideration transferred, including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount of the identifiable assets acquired and liabilities assumed. When the fair value of the net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, a bargain purchase gain is recognized immediately in the consolidated income statement. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Company to the previous owners of the acquiree, and equity interests issued by the Company. Consideration transferred also includes the fair value of any contingent consideration. Consideration transferred does not include amounts related to the settlement of pre-existing relationships. Any goodwill that arises on account of such business combination is tested annually for impairment. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and the settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recorded in the consolidated income statement. A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably. On an acquisition-by-acquisition basis, the Company recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Transaction costs that the Company incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence fees and other professional and consulting fees, are expensed as incurred. |
Property, plant and equipment | e. Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that are directly attributable to the construction or production of a qualifying asset are capitalized as part of the cost of that asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within “Other (income)/expense, net” in the consolidated income statement. The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the consolidated income statement as incurred. Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded at the carrying amount of the asset given up. Depreciation Depreciation is recognized in the consolidated income statement on a straight line basis over the estimated useful lives of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated. Leasehold improvements are depreciated over the period of the lease agreement or the useful life, whichever is shorter. Depreciation methods, useful lives and residual values are reviewed at each reporting date. Buildings - Factory and administrative buildings 20 - 50 years - Ancillary structures 3 - 15 years Plant and equipment 3 - 15 years Furniture, fixtures and office equipment 4 - 10 years Vehicles 4 - 5 years Computer equipment 3 - 5 years Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, including consultancy charges for implementing the software, is capitalized as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized over the estimated useful life of the software or the remaining useful life of the tangible fixed asset, whichever is lower. Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date and the cost of property, plant and equipment not ready to use before such date are disclosed under capital work-in-progress. Assets not ready for use are not depreciated. |
Goodwill and other intangible assets | f. Goodwill and other intangible assets Recognition and measurement Goodwill Goodwill represents the excess of consideration transferred, together with the amount of non-controlling interest in the acquiree, over the fair value of the Company’s share of identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying value of the equity accounted investee. Other intangible assets Other intangible assets that are acquired by the Company and that have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Research and development Expenditures on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in the consolidated income statement when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if: · development costs can be measured reliably; · the product or process is technically and commercially feasible; · future economic benefits are probable; and · the Company intends to, and has sufficient resources, to complete development and to use or sell the asset. The expenditures to be capitalized include the cost of materials and other costs directly attributable to preparing the asset for its intended use. Other development expenditures are recognized in the consolidated income statement as incurred. As of March 31, 2018, none of the development expenditure amounts has met the aforesaid recognition criteria. Separate acquisition of intangible assets Payments to third parties that generally take the form of up-front payments and milestones for in-licensed products, compounds and intellectual property are capitalized. The Company’s criteria for capitalization of such assets are consistent with the guidance given in paragraph 25 of International Accounting Standard 38 (“IAS 38”) (i.e., the receipt of economic benefits embodied in each intangible asset separately purchased or licensed in the transaction is considered to be probable). In-Process Research and Development assets (“IPR&;D”) Acquired research and development intangible assets that are under development are recognized as In-Process Research and Development assets (“IPR&;D”). IPR&;D assets are not amortized, but evaluated for potential impairment on an annual basis or when there are indications that the carrying value may not be recoverable. Any impairment charge on such IPR&;D assets is recorded in the consolidated income statement under "Research and Development expenses". Subsequent expenditure Other intangible assets Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures, including expenditures on internally generated goodwill and brands, is recognized in the consolidated income statement as incurred. IPR&;D assets Subsequent expenditure on an IPR&;D project acquired separately or in a business combination and recognized as an intangible asset is: · · · Amortization Amortization is recognized in the consolidated income statement on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets that are not available for use are amortized from the date they are available for use. Trademarks 3 - 12 years Product related intangibles 5 - 15 years Customer-related intangibles 1 - 11 years Technology related intangibles 3 - 13 years Other intangibles 3 - 15 years The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at each reporting date. Intangible assets relating to products in development, other intangible assets not available for use and intangible assets having indefinite useful life are subject to impairment testing at each reporting date. All other intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable. All impairment losses are recognized immediately in the consolidated income statement. De-recognition of intangible assets Intangible assets are de-recognized either on their disposal or where no future economic benefits are expected from their use. Losses arising on such de-recognition are recorded in the consolidated income statement, and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as at the date of de-recognition. |
Leases | g. Leases At the inception of each lease, the lease arrangement is classified as either a finance lease or an operating lease, based on the substance of the lease arrangement. Finance leases A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding lease liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Operating leases Other leases are operating leases, and the leased assets are not recognized on the Company’s statements of financial position. Payments made under operating leases are recognized in the consolidated income statement on a straight-line basis over the term of the lease. Operating lease incentives received from the landlord are recognized as a reduction of rental expense on a straight line basis over the lease term. |
Inventories | h. Inventories Inventories consist of raw materials, stores and spares, work in progress and finished goods and are measured at the lower of cost and net realizable value. The cost of all categories of inventories is based on the weighted average method. Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of finished goods and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. Stores and spares consists of packing materials, engineering spares (such as machinery spare parts) and consumables (such as lubricants, cotton waste and oils), which are used in operating machines or consumed as indirect materials in the manufacturing process. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The factors that the Company considers in determining the provision for slow moving, obsolete and other non-saleable inventory include estimated shelf life, planned product discontinuances, price changes, aging of inventory and introduction of competitive new products, to the extent each of these factors impact the Company’s business and markets. The Company considers all these factors and adjusts the inventory provision to reflect its actual experience on a periodic basis. |
Impairment | Financial assets A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value. Significant financial assets are tested for impairment on an individual basis. All impairment losses/(reversals of impairment losses) are recognized in the consolidated income statement. When the fair value of available-for-sale financial assets declines below acquisition cost and there is objective evidence that the asset is impaired, the cumulative loss that has been recognized in OCI is transferred to the consolidated income statement. An impairment loss may be reversed in subsequent periods, if the indicators for the impairment no longer exist. Such reversals are recognized in OCI. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment test is performed each year at March 31. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination is, for the purpose of impairment testing, allocated to cash-generating units that are expected to benefit from the synergies of the combination. An impairment loss is recognized in the consolidated income statement if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired. An impairment loss in respect of equity accounted investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the consolidated income statement, and reversed if there has been a favorable change in the estimates used to determine the recoverable amount. |
Employee benefits | Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Defined contribution plans The Company’s contributions to defined contribution plans are charged to the consolidated income statement as and when the services are received from the employees. Defined benefit plans The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. In countries where there is no deep market in such bonds, the market interest rates on government bonds are used. The current service cost of the defined benefit plan, recognized in the consolidated income statement in employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in the consolidated income statement. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the consolidated income statement. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in OCI in the period in which they arise. When the benefits under a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in the consolidated income statement. The Company recognizes gains or losses on the settlement of a defined benefit plan obligation when the settlement occurs. Termination benefits Termination benefits are recognized as an expense in the consolidated income statement when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense in the consolidated income statement if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. Other long-term employee benefits The Company’s net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the consolidated income statement in the period in which they arise. Compensated absences The Company’s current policies permit certain categories of its employees to accumulate and carry forward a portion of their unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof in accordance with the terms of such policies. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company incurs as a result of the unused entitlement that has accumulated at the reporting date. Such measurement is based on actuarial valuation as at the reporting date carried out by a qualified actuary. Equity settled share-based payment transactions The grant date fair value of options granted to employees is recognized as an employee expense in the consolidated income statement, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple awards. The increase in equity recognized in connection with share-based payment transaction is presented as a separate component in equity under “share-based payment reserve”. The amount recognized as an expense is adjusted to reflect the actual number of stock options that vest. Cash settled share-based payment transactions The fair value of the amount payable to employees in respect of share-based payment transactions which are settled in cash is recognized as an expense, with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is re-measured at each reporting date and at the settlement date based on the fair value of the share-based payment transaction. Any changes in the liability are recognized in the consolidated income statement. |
Provisions | k. Provisions A provision is recognized in the consolidated income statement if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. Restructuring A provision for restructuring is recognized in the consolidated income statement when the Company has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating costs are not provided. Onerous contracts A provision for onerous contracts is recognized in the consolidated income statement when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract. Reimbursement rights Expected reimbursements for expenditures required to settle a provision are recognized in the consolidated income statement only when receipt of such reimbursements is virtually certain. Such reimbursements are recognized as a separate asset in the statement of financial position, with a corresponding credit to the specific expense for which the provision has been made. Contingent liabilities and contingent assets A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs. |
Revenue | Sale of goods Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. Revenue from the sale of goods includes relevant taxes and is measured at the fair value of the consideration received or receivable, net of returns, sales tax and applicable trade discounts and allowances. Revenue includes shipping and handling costs billed to the customer. Revenue from sales of generic products in India is recognized upon delivery of products to distributors by clearing and forwarding agents of the Company. Significant risks and rewards in respect of ownership of generic products are transferred by the Company when the goods are delivered to distributors from clearing and forwarding agents. Clearing and forwarding agents are generally compensated on a commission basis as a percentage of sales made by them. Revenue from sales of active pharmaceutical ingredients and intermediates in India is recognized on delivery of products to customers (generally formulation manufacturers), from the factories of the Company. Revenue from export sales and other sales outside of India is recognized when the significant risks and rewards of ownership of products are transferred to the customers, which occurs upon delivery of the products to the customers unless the terms of the applicable contract provide for specific revenue generating activities to be completed, in which case revenue is recognized once all such activities are completed. Profit share revenues The Company from time to time enters into marketing arrangements with certain business partners for the sale of its products in certain markets. Under such arrangements, the Company sells its products to the business partners at a non-refundable base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the business partner’s ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Such arrangements typically require the business partner to provide confirmation of units sold and net sales or net profit computations for the products covered under the arrangement. Revenue in an amount equal to the base purchase price is recognized in these transactions upon delivery of products to the business partners. An additional amount representing the profit share component is recognized as revenue in the period which corresponds to the ultimate sales of the products made by business partners only when the collectability of the profit share becomes probable and a reliable measurement of the profit share is available. Otherwise, recognition is deferred to a subsequent period pending satisfaction of such collectability and measurability requirements. In measuring the amount of profit share revenue to be recognized for each period, the Company uses all available information and evidence, including any confirmations from the business partner of the profit share amount owed to the Company, to the extent made available before the date the Company’s Board of Directors authorizes the issuance of its financial statements for the applicable period. Milestone payments and out licensing arrangements Revenues include amounts derived from product out-licensing agreements. These arrangements typically consist of an initial up-front payment on inception of the license and subsequent payments dependent on achieving certain milestones in accordance with the terms prescribed in the agreement. Non-refundable up-front license fees received in connection with product out-licensing agreements are deferred and recognized over the period in which the Company has continuing performance obligations. Milestone payments which are contingent on achieving certain clinical milestones are recognized as revenues either on achievement of such milestones, if the milestones are considered substantive, or over the period the Company has continuing performance obligations, if the milestones are not considered substantive. If milestone payments are creditable against future royalty payments, the milestones are deferred and released over the period in which the royalties are anticipated to be paid. Provision for chargeback, rebates and discounts Provisions for chargeback, rebates, discounts and Medicaid payments are estimated and provided for in the year of sales and recorded as reduction of revenue. A chargeback claim is a claim made by the wholesaler for the difference between the price at which the product is initially invoiced to the wholesaler and the net price at which it is agreed to be procured from the Company. Provisions for such chargebacks are accrued and estimated based on historical average chargeback rate actually claimed over a period of time, current contract prices with wholesalers/other customers and estimated inventory holding by the wholesaler. Shelf stock adjustments Shelf stock adjustments are credits issued to customers to reflect decreases in the selling price of products sold by the Company, and are accrued when the prices of certain products decline as a result of increased competition upon the expiration of limited competition or exclusivity periods. These credits are customary in the pharmaceutical industry, and are intended to reduce the customer inventory cost to better reflect the current market prices. The determination to grant a shelf stock adjustment to a customer is based on the terms of the applicable contract, which may or may not specifically limit the age of the stock on which a credit would be offered. Sales Returns The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Company’s estimate of expected sales returns. The Company deals in various products and operates in various markets. Accordingly, the estimate of sales returns is determined primarily by the Company’s historical experience in the markets in which the Company operates. With respect to established products, the Company considers its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf life, product discontinuances, price changes of competitive products, and the introduction of competitive new products, to the extent each of these factors impact the Company’s business and markets. With respect to new products introduced by the Company, such products have historically been either extensions of an existing line of product where the Company has historical experience or in therapeutic categories where established products exist and are sold either by the Company or the Company’s competitors. Services Revenue from services rendered, which primarily relate to contract research, is recognized in the consolidated income statement as the underlying services are performed. Upfront non-refundable payments received under these arrangements are deferred and recognized as revenue over the expected period over which the related services are expected to be performed. Export entitlements Export entitlements from government authorities are recognized in the consolidated income statement as a reduction from “Cost of Revenues” when the right to receive credit as per the terms of the scheme is established in respect of the exports made by the Company, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. License fees The Company enters into certain dossier sales, licensing and supply arrangements with various parties. Income from licensing arrangements is generally recognized over the term of the contract. Some of these arrangements include certain performance obligations by the Company. Revenue from such arrangements is recognized in the period in which the Company completes all its performance obligations. |
Shipping and handling costs | m. Shipping and handling costs Shipping and handling costs incurred to transport products to customers, and internal transfer costs incurred to transport the products from the Company’s factories to its various points of sale, are included in selling, general and administrative expenses. |
Finance income and expense | n. Finance income and expense Finance income consists of interest income on funds invested (including available-for-sale financial assets), dividend income and gains on the disposal of available-for-sale financial assets. Interest income is recognized in the consolidated income statement as it accrues, using the effective interest method. Dividend income is recognized in the consolidated income statement on the date that the Company’s right to receive payment is established. The associated cash flows are classified as investing activities in the statement of cash flows. Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the consolidated income statement using the effective interest method. The associated cash flows are classified as financing activities in the statement of cash flows. Foreign currency gains and losses are reported on a net basis within finance income and expense. These primarily include: exchange differences arising on the settlement or translation of monetary items; changes in the fair value of derivative contracts that economically hedge monetary assets and liabilities in foreign currencies and for which no hedge accounting is applied; and the ineffective portion of cash flow hedges. |
Income tax | o. Income tax Income tax expense consists of current and deferred tax. Income tax expense is recognized in the consolidated income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: - temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; - temporary differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and - taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Any deferred tax asset or liability arising from deductible or taxable temporary differences in respect of unrealized inter-company profit or loss on inventories held by the Company in different tax jurisdictions is recognized using the tax rate of the jurisdiction in which such inventories are held. Withholding tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as tax expense for the Company and all such taxes are recognized in the statement of changes in equity as part of the associated dividend payment. |
Earnings per share | p. Earnings per share The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock options granted to employees. |
Government grants | q. Government grants The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. Government grants received in relation to assets are presented as a reduction to the carrying amount of the related asset. Grants related to income are deducted in reporting the related expense in the consolidated income statement. |
Segment Reporting | r. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief executive officer of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker. |
Recent accounting pronouncements | . Recent accounting pronouncements Standards issued but not yet effective and not early adopted by the Company IFRS 9, Financial instruments In July 2014, the IASB issued the final version of IFRS 9, “Financial instruments”. IFRS 9 significantly differs from IAS 39, “Financial Instruments: Recognition and Measurement”, and includes a logical model for classification and measurement, a single, forward-looking “expected loss” impairment model and a substantially-reformed approach to hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Detailed below is a summary of the impact of IFRS 9 on the classifications of investments in the consolidated financial statements of the Company: Type of instrument Classification under IAS 39 Classification under IFRS 9 Investments in mutual funds Classified as available-for-sale financial assets, with fair value differences recognized in OCI. Classified as debt instruments at fair value through profit and loss (“FVTPL”), with all the fair value changes on subsequent re-measurement recognized in the consolidated income statement. Investments in equity instruments Classified as available-for-sale financial assets, with fair value differences recognized in OCI. All equity investments within the scope of IFRS 9 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies are classified as FVTPL. For all other equity instruments, on initial recognition, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company may make such election on an instrument-by-instrument basis. If the Company decides to classify an equity instrument as at fair value through other comprehensive income (“FVTOCI”), then all fair value changes on the instrument, excluding dividends, are recognized in OCI. There will be no recycling of the amounts from OCI to the consolidated income statement, even on sale of the investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value, with all changes recognized in the consolidated income statement. Impact on impairment of trade receivables In accordance with IFRS 9, the Company shall apply the expected credit loss (“ECL”) model for measurement and recognition of impairment loss on its trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of IFRS 15. For this purpose, the Company can choose to follow a “simplified approach” for recognition of impairment loss allowance on the trade receivable balances. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. For this purpose, the Company has designed a provision matrix to determine impairment loss allowance on the portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. Impact on hedge accounting The new hedge accounting model introduced by the standard requires hedge accounting relationships to be based upon the Company’s own risk management strategy and objectives, and to be discontinued only when the relationships no longer qualify for hedge accounting. Based on the impact of the adoption assessment performed, the Company believes that its existing hedge relationships will continue to be designated as such under the new hedge accounting requirements. The Company implemented the new standard on April 1, 2018 and applied the modified retrospective method, which requires the recognition of the cumulative effect of initially applying IFRS 9, as at April 1, 2018, to retained earnings and not restate prior years. IFRS 15, Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15, “Revenue from Contracts with Customers”. This comprehensive new standard will supersede existing revenue recognition guidance, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted. The Company adopted IFRS 15 effective April 1, 2018, using the modified retrospective method. The adoption of IFRS 15 does not have any significant impact on the Company’s recognition of revenues from product sales, service income and license fee. IFRS 16, Leases In January 2016, the IASB issued a new standard, IFRS 16, “Leases”. The new standard brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Lessor accounting, however, remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17, “Leases”, and related interpretations and is effective for annual reporting periods beginning on or after January 1, 2019. Earlier adoption of IFRS 16 is permitted if IFRS 15, “Revenue from Contracts with Customers”, has also been applied. Upon adoption, a portion of the annual operating lease expense, which is currently fully recognized as functional expense, will be recognized as finance expense. Further, a portion of the annual lease payments recognized in the cash flow statement as reduction of lease liability will be recognized as outflow from financing activities, which are currently fully recognized as an outflow from operating activities. The undiscounted and non-cancellable operating lease commitments of Rs.1,929 and Rs.1,710 as at March 31, 2018 and 2017, respectively, as disclosed in Note 27 of these consolidated financial statements, provide an indicator of the impact of implementation of IFRS 16 on the consolidated financial statements of the Company. Accordingly, the Company believes that the adoption of IFRS 16 will not have a material impact on its consolidated financial statements. IFRIC 22, Foreign Currency Transactions and Advance Consideration In December 2016, the IASB issued IFRIC Interpretation 22, “Foreign Currency Transactions and Advance Consideration,” which addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. IFRIC Interpretation 22 is effective for annual reporting periods beginning on or after January 1, 2018. The Company believes that the adoption of IFRIC 22 does not have a material impact on its consolidated financial statements. IFRIC 23, Uncertainty over Income Tax treatments On June 7, 2017, the IFRS Interpretations Committee issued IFRIC 23, which clarifies how the recognition and measurement requirements of IAS 12 “Income taxes”, are applied where there is uncertainty over income tax treatments. IFRIC 23 explains how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. An uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be accepted by the applicable tax authority. For example, a decision to claim a deduction for a specific expense or not to include a specific item of income in a tax return is an uncertain tax treatment if its acceptability is uncertain under applicable tax law. The interpretation provides specific guidance in several areas where previously IAS 12 was silent. IFRIC 23 applies to all aspects of income tax accounting where there is an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits, including tax rates. The interpretation is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted. An entity can, on initial application, elect to apply this interpretation either: · retrospectively applying IAS 8, if possible without the use of hindsight; or · retrospectively, with the cumulative effect of initially applying the interpretation recognized at the date of initial application as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate). The Company is in the process of evaluating the impact of IFRIC 23 on the consolidated financial statements and the period of adoption. |
Share capital | t. Share capital Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and stock options are recognized as a deduction from equity, net of any tax effects. When shares recognized as equity are repurchased, the amount of consideration paid, which includes costs that are directly attributable, is recognized as a deduction from equity. |
Significant accounting polici54
Significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Significant Of accounting policies [Abstract] | |
Disclosure of useful lives or depreciation rates, property, plant and equipment [Table Text Block] | The estimated useful lives are as follows: Buildings - Factory and administrative buildings 20 - 50 years - Ancillary structures 3 - 15 years Plant and equipment 3 - 15 years Furniture, fixtures and office equipment 4 - 10 years Vehicles 4 - 5 years Computer equipment 3 - 5 years |
Disclosure of useful lives or amortisation rates, intangible assets other than goodwill [Table Text Block] | The estimated useful lives are as follows: Trademarks 3 - 12 years Product related intangibles 5 - 15 years Customer-related intangibles 1 - 11 years Technology related intangibles 3 - 13 years Other intangibles 3 - 15 years |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments [Table Text Block] | Segment information: For the Year Ended March 31, Reportable segments Global Generics PSAI Proprietary Products 2018 2017 2016 2018 2017 2016 2018 2017 2016 Revenues (1) (2) Rs. 114,014 Rs. 115,409 Rs. 128,062 Rs. 21,992 Rs. 21,277 Rs. 22,379 Rs. 4,245 Rs. 2,363 Rs. 2,659 Gross profit Rs. 67,190 Rs. 71,079 Rs. 84,427 Rs. 4,446 Rs. 4,473 Rs. 4,931 Rs. 3,799 Rs. 1,951 Rs. 2,217 Selling, general and administrative expenses Research and development expenses Other (income)/expense, net Results from operating activities Finance (expense)/income, net Share of profit of equity accounted investees, net of tax Profit before tax Tax expense Profit for the year Segment information: For the Year Ended March 31, Reportable segments Others Total 2018 2017 2016 2018 2017 2016 Revenues (1) (2) Rs. 1,777 Rs. 1,760 Rs. 1,608 Rs. 142,028 Rs. 140,809 Rs. 154,708 Gross profit Rs. 869 Rs. 853 Rs. 706 Rs. 76,304 Rs. 78,356 Rs. 92,281 Selling, general and administrative expenses 46,910 46,372 45,702 Research and development expenses 18,265 19,551 17,834 Other (income)/expense, net (788 ) (1,065 ) (874 ) Results from operating activities Rs. 11,917 Rs. 13,498 Rs. 29,619 Finance (expense)/income, net 2,080 806 (2,708 ) Share of profit of equity accounted investees, net of tax 344 349 229 Profit before tax Rs. 14,341 Rs. 14,653 Rs. 27,140 Tax expense 4,535 2,614 7,127 Profit for the year Rs. 9,806 Rs. 12,039 Rs. 20,013 (1) Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). (2) Effective July 1, 2017, a Goods and Services Tax (“GST”) was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 |
Disclosure of geographical areas [Table Text Block] | The following table shows the distribution of the Company’s revenues by country, based on the location of the customers: For the Year Ended March 31, Country 2018 2017 2016 India Rs. 25,209 Rs. 24,927 Rs. 23,913 United States 68,124 69,816 81,154 Russia 12,610 11,547 10,640 Others 36,085 34,519 39,001 Rs. 142,028 Rs. 140,809 Rs. 154,708 |
Disclosure of operating segments - Global Generics [Table Text Block] | An analysis of revenues by therapeutic areas in the Company’s Global Generics segment is given below: For the Year Ended March 31, 2018 2017 2016 Gastrointestinal Rs. 19,153 Rs. 21,190 Rs. 21,253 Oncology 16,999 17,054 19,410 Cardiovascular 16,501 15,553 19,009 Pain Management 12,898 14,323 16,240 Central Nervous System 12,509 12,749 14,739 Anti-Infective 6,557 7,189 12,711 Others 29,397 27,351 24,700 Total Rs. 114,014 Rs. 115,409 Rs. 128,062 |
Disclosure of operating segments - PSAI [Table Text Block] | An analysis of revenues by therapeutic areas in the Company’s PSAI segment is given below: For the Year Ended March 31, 2018 2017 2016 Cardiovascular Rs. 6,191 Rs. 5,078 Rs. 5,077 Pain Management 3,228 3,290 4,085 Central Nervous System 2,331 2,758 3,021 Anti-Infective 1,968 1,859 2,015 Dermatology 1,606 1,606 1,485 Oncology 1,650 1,534 2,570 Others 5,018 5,152 4,126 Total Rs. 21,992 Rs. 21,277 Rs. 22,379 |
Disclosure of analysis of assets by geography [Table Text Block] | The following table shows the distribution of the Company’s non-current assets (other than financial instruments and deferred tax assets) by country, based on the location of assets: As of March 31, Country 2018 2017 India Rs. 57,818 Rs. 57,997 Switzerland 32,287 31,543 United States 8,361 8,660 Germany 2,876 3,220 Others 7,515 6,213 Rs. 108,857 Rs. 107,633 |
Disclosure Of Distribution Of Companys Property Plant And Equipment Acquired By Country [Table Text Block] | The following table shows the distribution of the Company’s property, plant and equipment including capital work in progress and intangible assets acquired during the year (other than goodwill arising on business combination) by country, based on the location of assets: For the Year Ended March 31, Country 2018 2017 India Rs. 7,807 Rs. 10,545 Switzerland 1,100 26,639 United States 723 2,657 Others 1,284 728 Rs. 10,914 Rs. 40,569 |
Disclosure of Analysis of depreciation and amortization, included in cost of revenues [Table Text Block] | Analysis of depreciation and amortization, included in cost of revenues, by reportable segments: For the Year Ended March 31, 2018 2017 2016 Global Generics Rs. 3,606 Rs. 3,381 Rs. 2,742 PSAI 2,923 2,674 2,437 Proprietary Products - - - Others 66 62 62 Rs. 6,595 Rs. 6,117 Rs. 5,241 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property plant and equipment explanatory [Text Block] | The following is a summary of the changes in carrying value of property, plant and equipment. Particulars Land Buildings Plant and Computer Furniture, Vehicles Total Gross carrying value Balance as at April 1, 2016 Rs. 3,814 Rs. 19,095 Rs. 54,393 Rs. 2,246 Rs. 2,265 Rs. 777 Rs. 82,590 Additions 98 2,395 9,090 566 205 96 12,450 Disposals - (34 ) (521 ) (70 ) (19 ) (120 ) (764 ) Effect of changes in foreign exchange rates (44 ) (165 ) (533 ) (15 ) (23 ) (2 ) (782 ) Balance as at March 31, 2017 Rs. 3,868 Rs. 21,291 Rs. 62,429 Rs. 2,727 Rs. 2,428 Rs. 751 Rs. 93,494 Balance as at April 1, 2017 Rs. 3,868 Rs. 21,291 Rs. 62,429 Rs. 2,727 Rs. 2,428 Rs. 751 Rs. 93,494 Additions 324 1,030 5,458 313 194 293 7,612 Disposals (7 ) (42 ) (1,071 ) (125 ) (29 ) (275 ) (1,549 ) Effect of changes in foreign exchange rates 31 162 399 15 21 1 629 Balance as at March 31, 2018 Rs. 4,216 Rs. 22,441 Rs. 67,215 Rs. 2,930 Rs. 2,614 Rs. 770 Rs. 100,186 Accumulated Depreciation Balance as at April 1, 2016 Rs. - Rs. 4,302 Rs. 27,982 Rs. 1,553 Rs. 1,953 Rs. 389 Rs. 36,179 Depreciation for the year - 896 5,971 378 231 120 7,596 Impairment loss 38 214 69 10 - - 331 Disposals - (23 ) (499 ) (67 ) (14 ) (116 ) (719 ) Effect of changes in foreign exchange rates - (71 ) (298 ) (13 ) (24 ) (1 ) (407 ) Balance as at March 31, 2017 Rs. 38 Rs. 5,318 Rs. 33,225 Rs. 1,861 Rs. 2,146 Rs. 392 Rs. 42,980 Balance as at April 1, 2017 Rs. 38 Rs. 5,318 Rs. 33,225 Rs. 1,861 Rs. 2,146 Rs. 392 Rs. 42,980 Depreciation for the year - 972 6,455 373 240 245 8,285 Disposals - (29 ) (955 ) (105 ) (39 ) (264 ) (1,392 ) Effect of changes in foreign exchange rates - 82 260 12 17 1 372 Balance as at March 31, 2018 Rs. 38 Rs. 6,343 Rs. 38,985 Rs. 2,141 Rs. 2,364 Rs. 374 Rs. 50,245 Net carrying value As at April 1, 2016 Rs. 3,814 Rs. 14,793 Rs. 26,411 Rs. 693 Rs. 312 Rs. 388 Rs. 46,411 As at March 31, 2017 Rs. 3,830 Rs. 15,973 Rs. 29,204 Rs. 866 Rs. 282 Rs. 359 Rs. 50,514 Add: Capital-work-in-progress Rs. 6,646 Total as at March 31, 2017 Rs. 57,160 As at March 31, 2018 Rs. 4,178 Rs. 16,098 Rs. 28,230 Rs. 789 Rs. 250 Rs. 396 Rs. 49,941 Add: Capital-work-in-progress Rs. 7,928 Total as at March 31, 2018 Rs. 57,869 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Disclosure of reconciliation of changes in goodwill [Table Text Block] | The following table presents the changes in goodwill during the years ended March 31, 2018 and 2017: As of March 31, 2018 2017 Opening balance, gross Rs. 20,026 Rs. 20,122 Goodwill arising on business combinations during the year (1) - 10 Effect of translation adjustments 193 (106 ) Impairment loss (2) (16,274 ) (16,274 ) Closing balance Rs. 3,945 Rs. 3,752 (1) Rs.10 as of March 31, 2017 represents goodwill arising from the acquisition of Imperial Credit Private Limited. (2) The impairment loss of Rs.16,274 includes Rs.16,003 pertaining to the Company’s German subsidiary, betapharm Arzneimittel GmbH, which is part of the Company’s Global Generics segment. This impairment loss was recorded for the years ended March 31, 2009 and 2010. |
Disclosure of Information for Cash generating Units [Table Text Block] | As of March 31, 2018 2017 PSAI-Active Pharmaceutical Operations Rs. 997 Rs. 997 Global Generics-Complex Injectables 1,339 1,148 Global Generics-North America Operations 995 995 Global Generics-Branded Formulations 491 491 Others 123 121 Rs. 3,945 Rs. 3,752 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets explanatory [text block] | The following is a summary of changes in the carrying value of intangible assets: Trademarks Product Technology Customer Others Total Gross carrying amount Balance as at April 1, 2016 Rs. 10,178 Rs. 37,740 Rs. 2,847 Rs. 1,100 Rs. 2,295 Rs. 54,160 Additions (1) 1,148 27,419 27 - 611 29,205 De-recognitions (2) (32 ) (269 ) - (706 ) (124 ) (1,131 ) Effect of changes in foreign exchange rates (617 ) (2,265 ) (230 ) (37 ) (19 ) (3,168 ) Balance as at March 31, 2017 Rs. 10,677 Rs. 62,625 Rs. 2,644 Rs. 357 Rs. 2,763 Rs. 79,066 Balance as at April 1, 2017 Rs. 10,677 Rs. 62,625 Rs. 2,644 Rs. 357 Rs. 2,763 Rs. 79,066 Additions - 2,377 - - 228 2,605 Effect of changes in foreign exchange rates 1,162 2,496 206 - 6 3,870 Balance as at March 31, 2018 Rs. 11,839 Rs. 67,498 Rs. 2,850 Rs. 357 Rs. 2,997 Rs. 85,541 Amortization/impairment loss Balance as at April 1, 2016 Rs. 7,686 Rs. 22,599 Rs. 1,253 Rs. 1,085 Rs. 741 Rs. 33,364 Amortization for the year 578 2,304 443 15 341 3,681 Impairment loss 32 40 38 - - 110 De-recognitions (2) (32 ) (269 ) - (706 ) (124 ) (1,131 ) Effect of changes in foreign exchange rates (457 ) (1,215 ) (159 ) (37 ) (15 ) (1,883 ) Balance as at March 31, 2017 Rs. 7,807 Rs. 23,459 Rs. 1,575 Rs. 357 Rs. 943 Rs. 34,141 Balance as at April 1, 2017 Rs. 7,807 Rs. 23,459 Rs. 1,575 Rs. 357 Rs. 943 Rs. 34,141 Amortization for the year 591 2,145 403 - 286 3,425 Impairment loss - 53 - - - 53 Effect of changes in foreign exchange rates 885 2,204 167 - 1 3,257 Balance as at March 31, 2018 Rs. 9,283 Rs. 27,861 Rs. 2,145 Rs. 357 Rs. 1,230 Rs. 40,876 Net carrying amount As at April 1, 2016 Rs. 2,492 Rs. 15,141 Rs. 1,594 Rs. 15 Rs. 1,554 Rs. 20,796 As at March 31, 2017 Rs. 2,870 Rs. 39,166 Rs. 1,069 Rs. - Rs. 1,820 Rs. 44,925 As at March 31, 2018 Rs. 2,556 Rs. 39,637 Rs. 705 Rs. - Rs. 1,767 Rs. 44,665 (1) Additions during the year ended March 31, 2017 primarily consists of: (a) Rs.23,366, representing the consideration paid to Teva Pharmaceutical Industries Limited (“Teva”) and an affiliate of Allergan Plc (“Allergan”) to acquire eight Abbreviated New Drug Applications (“ANDAs”) in the United States (refer to Note 33 of these consolidated financial statements for further details); and (b) Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). (2) During the year ended March 31, 2017, the Company derecognized certain intangible assets which were fully amortized and from which no future economic benefits were expected, either from use or from their disposal. Accordingly, an amount of Rs.1,131 was reduced both from gross carrying amount and accumulated amortization. |
Disclosure of detailed information about intangible assets [text block] | Tabulated below is the reconciliation of amounts relating to in-process research and development assets as at the beginning and at the end of the year: As of March 31, 2018 2017 Opening balance Rs. 27,150 Rs. 1,096 Add: Additions during the year (1) 523 26,858 Less: Capitalizations during the year (2) (778 ) - Less: Impairments during the year (3) - (38 ) Effect of changes in exchange rates 132 (766 ) Closing balance Rs. 27,027 Rs. 27,150 (1) Additions during the year ended March 31, 2017 primarily consists of: a. Rs.23,366, representing the consideration paid to Teva and an affiliate of Allergan to acquire eight ANDAs in the United States (refer to Note 33 of these consolidated financial statements for further details); and b. Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). (2) ezitimibe and simvastatin tablets, representing one of the eight ANDAs acquired from Teva, was launched during the three months ended June 30, 2017. Accordingly, the Company reclassified the amount from IPR&;D to product related intangibles. (3) Refer to “Impairment losses recorded for the year ended March 31, 2017” in this Note 8 for further details. |
Disclosure of detailed information about amortization of other intangible assets [text block] | For the Year Ended March 31, 2018 2017 2016 Selling, general and administrative expenses Rs. 3,029 Rs. 3,198 Rs. 3,262 Cost of revenues 264 300 110 Research and development expenses 132 183 98 Rs. 3,425 Rs. 3,681 Rs. 3,470 |
Disclosure of detailed information about impairment loss on other intangible assets [text block] | For the Year Ended March 31, 2018 2017 2016 Selling, general and administrative expenses Rs. 53 Rs. 72 Rs. 61 Research and development expenses - 38 133 Cost of revenues - - - Rs. 53 Rs. 110 Rs. 194 |
Investment in equity accounte59
Investment in equity accounted investees (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Investments accounted for using equity method [Abstract] | |
Investments accounted for using equity method [Table Text Block] | Summary financial information of Reddy Kunshan, as translated into the reporting currency of the Company and not adjusted for the percentage ownership held by the Company, is as follows: As of/for the Year Ended March 31, 2018 2017 2016 Ownership 51.3 % 51.3 % 51.3 % Total current assets Rs. 4,933 Rs. 3,385 Rs. 2,876 Total non-current assets 347 296 377 Total assets Rs. 5,280 Rs. 3,681 Rs. 3,253 Equity Rs. 3,600 Rs. 2,603 Rs. 2,129 Total current liabilities 1,680 1,078 1,124 Total equity and liabilities Rs. 5,280 Rs. 3,681 Rs. 3,253 Revenues Rs. 5,482 Rs. 4,980 Rs. 4,246 Expenses 4,792 4,295 3,800 Profit for the year Rs. 690 Rs. 685 Rs. 446 Company’s share of profits for the year Rs. 354 Rs. 351 Rs. 229 Carrying value of the Company’s investment (1) Rs. 2,029 Rs. 1,519 Rs. 1,309 Translation adjustment arising out of translation of foreign currency balances Rs. 255 Rs. 97 Rs. 239 (1) Includes Rs.181 representing the goodwill on acquisition of investment. |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of investments other than investments accounted for using equity method [Abstract] | |
Disclosure of investments other than investments accounted for using equity method [Table Text Block] | The details of such investments as of March 31, 2018 are as follows: Cost Gain recognized Fair value/ amortized cost (2) In units of mutual funds Rs. 14,703 Rs. 75 Rs. 14,778 In equity securities (1) 2,703 (1,508 ) 1,195 In bonds 4,633 - 4,633 In commercial paper 232 - 232 Term deposits with banks 41 - 41 Rs. 22,312 Rs. (1,433 ) Rs. 20,879 Current portion In units of mutual funds Rs. 14,703 Rs. 75 Rs. 14,778 In bonds 3,279 - 3,279 In commercial paper 232 - 232 Term deposits with banks 41 - 41 Rs. 18,255 Rs. 75 Rs. 18,330 Non-current portion In equity securities (1) 2,703 (1,508 ) 1,195 In bonds 1,354 - 1,354 Rs. 4,057 Rs. (1,508 ) Rs. 2,549 (1) Primarily represents the shares of Curis, Inc. Refer to Note 31 of these consolidated financial statements for further details. (2) Interest accrued but not due on bonds, commercial paper and term deposits with banks is included in other current assets. As of March 31, 2017, the details of such investments were as follows: Cost Gain recognized Fair value/ amortized cost (2) In units of mutual funds Rs. 9,677 Rs. 1,464 Rs. 11,141 In equity securities (1) 2,703 2,260 4,963 Term deposits with banks 3,403 - 3,403 Rs. 15,783 Rs. 3,724 Rs. 19,507 Current portion In units of mutual funds Rs. 9,464 Rs. 1,417 Rs. 10,881 Term deposits with banks 3,389 - 3,389 Rs. 12,853 Rs. 1,417 Rs. 14,270 Non-current portion In units of mutual funds Rs. 213 Rs. 47 Rs. 260 In equity securities (1) 2,703 2,260 4,963 Term deposits with banks 14 - 14 Rs. 2,930 Rs. 2,307 Rs. 5,237 (1) Primarily represents the shares of Curis, Inc. Refer to Note 31 of these consolidated financial statements for further details. (2) Interest accrued but not due on term deposits with banks is included in other current assets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Classes of current inventories [abstract] | |
Disclosure of detailed information about inventories [Text Block] | Inventories consist of the following: As of March 31, 2018 2017 Raw materials Rs. 7,294 Rs. 7,226 Packing materials, stores and spares 2,394 2,315 Work-in-progress 7,175 6,614 Finished goods 12,226 12,374 Rs. 29,089 Rs. 28,529 |
Disclosure of detail information about of inventories recognized in consolidated income statement [Text Block] | Details of inventories recognized in the consolidated income statement are as follows: For the Year Ended March 31, 2018 2017 2016 Raw materials, consumables and changes in finished goods and work in progress Rs. 32,410 Rs. 27,165 Rs. 30,305 Inventory write-downs 2,946 3,085 2,746 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Trade and other receivables [abstract] | |
Trade And Other Receivables [Table Text Block] | As of March 31, 2018 2017 Current Trade and other receivables, gross Rs. 41,569 Rs. 38,926 Less: Allowance for doubtful trade and other receivables (952 ) (861 ) Trade and other receivables, net Rs. 40,617 Rs. 38,065 Non-current Trade and other receivables, gross (1) Rs. 169 Rs. 206 Less: Allowance for doubtful trade and other receivables - - Trade and other receivables, net Rs. 169 Rs. 206 (1) Represents amounts receivable pursuant to an out-licensing arrangement with a customer. As these amounts are not expected to be realized within twelve months from the end of the reporting date, they are disclosed as non-current |
Allowance For Doubtful Trade Receivable [Table Text Block] | The details of the allowance for impairment of trade account receivables are given below: For the Year Ended March 31, 2018 2017 Balance at the beginning of the year Rs. 861 Rs. 789 Provision for doubtful trade and other receivables, net 146 138 Trade and other receivables written off and exchange differences (55 ) (66 ) Balance at the end of the year Rs. 952 Rs. 861 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Assets [Abstract] | |
Disclosure Of Detailed Information About Other Assets [Text Block] | Other assets consist of the following: As of March 31, 2018 2017 Current Balances and receivables from statutory authorities (1) Rs. 6,741 Rs. 4,151 Export benefits receivable (2) 2,842 3,521 Prepaid expenses 761 712 Others (3) 3,957 3,586 Rs. 14,301 Rs. 11,970 Non-current Deposits Rs. 664 Rs. 651 Others 366 332 Rs. 1,030 Rs. 983 (1) Balances and receivables from statutory authorities primarily consist of amounts receivable from the goods and service tax (“GST”), excise duty, value added tax and customs authorities of India and the unutilized GST input tax credits, excise duty, service tax and value added tax input credits (subsumed under GST input tax credits effective as of July 1, 2017) on purchases. These are regularly utilized to offset the GST liability (or, prior to July 1, 2017, liability for excise duty, value added tax, etc.) on goods produced by and services provided by the Company. Accordingly, these balances have been classified as current assets. (2) Export benefits receivables primarily consist of amounts receivable from various government authorities of India towards incentives on export sales made by the Company. (3) Others primarily includes advances given to vendors and employees, interest accrued but not due on investments, and insurance claims receivable. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash And Cash Equivalents [Text Block] | As of March 31, 2018 2017 Cash balances Rs. 2 Rs. 3 Balances with banks (1) (2) 1,454 1,131 Term deposits with banks (original maturities up to 3 months) 1,182 2,732 Cash and cash equivalents in the statement of financial position 2,638 3,866 Bank overdrafts used for cash management purposes 96 87 Cash and cash equivalents in the statement of cash flow Rs. 2,542 Rs. 3,779 (1) Balances with banks as of March 31, 2018 included restricted cash of Rs.86, which consisted of: · Rs.72, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; and · Rs.14, representing other restricted cash amounts. (2) Balances with banks as of March 31, 2017 included restricted cash of Rs.177, which consisted of: · Rs.64, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; · Rs.38, representing cash and cash equivalents of the Company’s subsidiary in Venezuela, which are subject to foreign exchange controls (refer to Note 38 of these consolidated financial statements for further details); · Rs.49, representing the portion of the purchase consideration deposited in an escrow account, pursuant to an acquisition of an intangible asset; and · Rs.26, representing other restricted cash amounts. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of classes of share capital [abstract] | |
Disclosure Of Classes Of Share Capital [Text Block] | For the Year Ended For the Year Ended Number Amount Number Amount Authorized share capital 240,000,000 Rs. 1,200 240,000,000 Rs. 1,200 Fully paid up share capital Opening number of equity shares/share capital 165,741,713 Rs. 829 170,607,653 Rs. 853 Add: Issue of equity shares on exercise of options 169,194 1 211,564 1 Less: Buyback of equity shares - - (5,077,504 ) (25 ) Closing number of equity shares/share capital 165,910,907 Rs. 830 165,741,713 Rs. 829 |
Disclosure of detailed information about dividends [Table Text Block] | The details of dividends paid by the Company are as follows: For the Year Ended March 31, 2018 2017 2016 Dividend per share Rs. 20 Rs. 20 Rs. 20 Dividend distribution tax on the dividend paid 675 78 695 Dividend paid during the year 3,317 3,312 3,411 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Basic and diluted earnings per share [abstract] | |
Basic Earnings Per Share [Table Text Block] | The weighted average number of equity shares outstanding, used for calculating the basic earnings per share, are as follows: For the Year Ended March 31, 2018 2017 2016 Issued equity shares as at April 1 165,741,713 170,607,653 170,381,174 Effect of shares issued on exercise of stock options 103,695 126,277 166,469 Effect of buyback of equity shares - (4,084,987 ) - Weighted average number of equity shares at March 31 165,845,408 166,648,943 170,547,643 Earnings per share Basic Rs. 59.13 Rs. 72.24 Rs. 117.34 |
Diluted Earnings Per Share [Table Text Block] | The weighted average number of equity shares outstanding, used for calculating the diluted earnings per share, are as follows: For the Year Ended March 31, 2018 2017 2016 Weighted average number of equity shares (Basic) 165,845,408 166,648,943 170,547,643 Dilutive effect of stock options outstanding 340,144 348,733 525,137 Weighted average number of equity shares (Diluted) 166,185,552 166,997,675 171,072,780 Earnings per share Diluted Rs. 59.00 Rs. 72.09 Rs. 116.98 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Disclosure of Short Term Borrowings [Table Text Block] | Short term borrowings consist of the following: As at March 31, 2018 2017 Packing credit borrowings Rs. 21,008 Rs. 18,699 Other foreign currency borrowings 4,458 24,840 Rs. 25,466 Rs. 43,539 |
Disclosure of Interest Rate Profile of Short Term Borrowings [Table Text Block] | The interest rate profile of short-term borrowings from banks is given below: As at March 31, 2018 2017 Currency (1) Interest Rate Currency Interest Rate Packing credit borrowings USD 1 Month LIBOR + (30) to 30 bps USD 1 Month LIBOR + (30) to 1 bps - - USD 0.01 % - - INR T-Bill + 30bps INR 6.00 % INR 6.92% to 6.95 % RUB 6.75 % RUB 9.95 % Other foreign currency borrowings USD 1 Month/3 Months LIBOR + 65 to 85 bps USD 1 Month LIBOR + 40 to 60 bps RUB 8.20 % RUB 10.48 % UAH 18.00 % - - (1) “INR” means Indian rupees, “RUB” means Russian roubles, and “UAH” means Ukrainian hryvnia. |
Disclosure of Long Term Borrowings [Table Text Block] | Long-term borrowings consist of the following: As at March 31 2018 2017 Foreign currency borrowing by the parent company Rs. 4,880 Rs. 4,852 Foreign currency borrowing by the Swiss Subsidiary 16,185 - Foreign currency borrowing by the Company’s German subsidiary, Reddy Holding GmbH 3,394 - Obligations under finance leases 693 707 Rs. 25,152 Rs. 5,559 Current portion Obligations under finance leases Rs. 63 Rs. 110 Rs. 63 Rs. 110 Non-current portion Foreign currency borrowing by the parent company Rs. 4,880 Rs. 4,852 Foreign currency borrowing by the Swiss Subsidiary 16,185 - Foreign currency borrowing by the Company’s German subsidiary, Reddy Holding GmbH 3,394 - Obligations under finance leases 630 597 Rs. 25,089 Rs. 5,449 |
Disclosure of interest rate profile of long-term borrowings [Table Text Block] | The interest rate profiles of long-term borrowings (other than obligations under finance leases) as at March 31, 2018 and 2017 were as follows: As at March 31, 2018 2017 Currency Interest Rate Currency Interest Rate Foreign currency borrowings USD 1 Month LIBOR + 45 to 82.7 bps USD 1 Month LIBOR + 82.7 bps EUR 0.81 % - - |
Disclosure of Contractual maturities of Long Term Borrowings [Table Text Block] | The aggregate maturities of long-term loans and borrowings, based on contractual maturities, as of March 31, 2018 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2019 Rs. - Rs. 63 Rs. 63 2020 4,064 59 4,123 2021 6,346 61 6,407 2022 1,131 66 1,197 2023 13,035 71 13,106 Thereafter - 373 373 Rs. 24,576 Rs. 693 Rs. 25,269 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.117. The aggregate maturities of long term loans and borrowings, based on contractual maturities, as of March 31, 2017 were as follows: Maturing in the year ending March 31, Foreign Obligations Total 2018 Rs. - Rs. 110 Rs. 110 2019 - 56 56 2020 1,610 51 1,661 2021 3,242 53 3,295 2022 - 57 57 Thereafter - 380 380 Rs. 4,852 Rs. 707 Rs. 5,559 |
Disclosure of Future minimum lease payments under finance leases [Table Text Block] | The Company has leased buildings and vehicles under finance leases. Future minimum lease payments under finance leases as at March 31, 2018 were as follows: Particulars Present value of Interest Future Not later than one year Rs. 63 Rs. 57 Rs. 120 Between one and five years 257 159 416 More than five years 373 66 439 Rs. 693 Rs. 282 Rs. 975 Future minimum lease payments under finance leases as at March 31, 2017 were as follows: Particulars Present value of Interest Future Not later than one year Rs. 110 Rs. 77 Rs. 187 Between one and five years 217 149 366 More than five years 380 84 464 Rs. 707 Rs. 310 Rs. 1,017 |
Disclosure of reconciliation of liabilities arising from financing activities [text block] | Reconciliation of liabilities arising from financing activities Particulars Long-term borrowings (1) Short-term Total Opening balance Rs. 5,559 Rs. 43,539 Rs. 49,098 Borrowings made during the year 19,065 47,564 66,629 Borrowings repaid during the year (158 ) (65,589 ) (65,747 ) Currency translation adjustments 747 (48 ) 699 Others (61 ) - (61 ) Closing balance Rs. 25,152 Rs. 25,466 Rs. 50,618 (1) Including current portion. |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Parent Company Gratuity plan [Member] | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Disclosure of net defined benefit liability (asset) [Table Text Block] | Details of the employee benefits obligations and plan assets are provided below: As of March 31, 2018 2017 Present value of funded obligations Rs. 2,007 Rs. 1,840 Fair value of plan assets (1,958 ) (1,687 ) Net defined benefit liability recognized Rs. 49 Rs. 153 |
Disclosure Of Expected Future Cash Flows In Respect Of Post-employment Benefits [Text Block] | The expected future cash flows in respect of gratuity as at March 31, 2018 were as follows: Expected contribution Amount During the year ended March 31, 2019 (estimated) Rs. 49 Expected future benefit payments March 31, 2019 244 March 31, 2020 219 March 31, 2021 212 March 31, 2022 208 March 31, 2023 208 Thereafter 2,951 |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | As of Defined benefit obligation without effect of projected salary growth Rs. 1,167 Add: Effect of salary growth 840 Defined benefit obligation with projected salary growth 2,007 Defined benefit obligation, using discount rate minus 50 basis points 2,082 Defined benefit obligation, using discount rate plus 50 basis points 1,936 Defined benefit obligation, using salary growth rate plus 50 basis points 2,081 Defined benefit obligation, using salary growth rate minus 50 basis points 1,937 |
Disclosure of changes in the present value of defined benefit obligations [Text Block] | Details of changes in the present value of defined benefit obligations are as follows: As of March 31, 2018 2017 Defined benefit obligations at the beginning of the year Rs. 1,840 Rs. 1,540 Current service cost 252 221 Interest on defined obligations 125 114 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (121 ) 30 Actuarial loss/(gain) due to demographic assumptions 11 (12 ) Actuarial loss/(gain) due to experience changes 62 62 Benefits paid (162 ) (115 ) Defined benefit obligations at the end of the year Rs. 2,007 Rs. 1,840 |
Disclosure of fair value of plan assets [text block] | Details of changes in the fair value of plan assets are as follows: As of March 31, 2018 2017 Fair value of plan assets at the beginning of the year Rs. 1,687 Rs. 1,303 Employer contributions 313 348 Interest on plan assets 121 99 Re-measurements due to: Return on plan assets excluding interest on plan assets (1 ) 52 Benefits paid (162 ) (115 ) Plan assets at the end of the year Rs. 1,958 Rs. 1,687 |
Disclosure of assumptions used to determine benefit obligations [Table Text Block] | The assumptions used to determine benefit obligations: For the Year Ended March 31, 2018 2017 2016 Discount rate 7.75 % 7.20 % 7.80 % Rate of compensation increase 7% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter 10% per annum for the first 2 years and 9% per annum thereafter |
Disclosure of assumptions used to determine the defined benefit cost [Table Text Block] | For the Year Ended March 31, 2018 2017 2016 Discount rate 7.20 % 7.80 % 8.00 % Rate of compensation increase 7 9 10 9 10 9 |
Disclosure of Disaggregation of Plan Assets [Table Text Block] | Disaggregation of plan assets: As of March 31, 2018 2017 Funds managed by insurers 99 % 99 % Others 1 % 1 % |
Cost Recognized in the Income Statement [Text Block] | The components of gratuity cost recognized in the income statement for the years ended March 31, 2018, 2017 and 2016 consist of the following: For the Year Ended March 31, 2018 2017 2016 Current service cost Rs. 252 Rs. 221 Rs. 177 Interest on net defined benefit liability/(asset) 6 14 2 Gratuity cost recognized in income statement Rs. 258 Rs. 235 Rs. 179 |
Industrias Quimicas Falcon de Mexico Pension plan [Member] | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Disclosure of Expected future Cash Flows in respect of Pension Plans [Table Text Block] | The expected future cash flows in respect of post-employment benefit plans in Mexico as at March 31, 2018 were as follows: Expected contribution Amount During the year ended March 31, 2019 (estimated) Rs. 36 Expected future benefit payments March 31, 2019 3 March 31, 2020 6 March 31, 2021 8 March 31, 2022 11 March 31, 2023 13 Thereafter 607 |
Disclosure of net defined benefit liability (asset) [Table Text Block] | Details of the employee benefits obligation and plan assets are provided below: As of March 31, 2018 2017 Present value of funded obligations Rs. 243 Rs. 218 Fair value of plan assets (66 ) (60 ) Net defined benefit liability recognized Rs. 177 Rs. 158 |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | As of March Defined benefit obligation without effect of projected salary growth Rs. 160 Plus effect of salary growth 83 Defined benefit obligation with projected salary growth 243 Defined benefit obligation, using discount rate minus 50 basis points 254 Defined benefit obligation, using discount rate plus 50 basis points 232 Defined benefit obligation, using salary growth rate plus 50 basis points 255 Defined benefit obligation, using salary growth rate minus 50 basis points 231 |
Disclosure of changes in the present value of defined benefit obligations [Text Block] | Details of changes in the present value of defined benefit obligations are as follows: As of March 31, 2018 2017 Defined benefit obligations at the beginning of the year Rs. 218 Rs. 249 Current service cost 12 13 Interest on defined obligations 19 17 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (6 ) (24 ) Actuarial loss/(gain) due to experience changes 0 7 Benefits paid (8 ) (19 ) Foreign exchange differences 8 (25 ) Defined benefit obligations at the end of the year Rs. 243 Rs. 218 |
Disclosure of fair value of plan assets [text block] | Details of changes in the fair value of plan assets are as follows: As of March 31, 2018 2017 Fair value of plan assets at the beginning of the year Rs. 60 Rs. 61 Employer contributions 8 19 Interest on plan assets 7 6 Re-measurements due to: Return on plan assets excluding interest on plan assets (3 ) (0 ) Benefits paid (8 ) (19 ) Foreign exchange differences 2 (7 ) Plan assets at the end of the year Rs. 66 Rs. 60 |
Disclosure of assumptions used to determine benefit obligations [Table Text Block] | Assumptions used to determine defined benefit obligations: For the Year Ended March 31, 2018 2017 2016 Discount rate 9.00 % 8.75 % 7.75 % Rate of compensation increase 4.50 % 4.50 % 4.50 % |
Disclosure of assumptions used to determine the defined benefit cost [Table Text Block] | For the Year Ended March 31, 2018 2017 2016 Discount rate 8.75 % 7.75 % 7.50 % Rate of compensation increase 4.50 % 4.50 % 4.50 % |
Disclosure of Disaggregation of Plan Assets [Table Text Block] | Plan assets: The Falcon pension plan’s weighted-average asset allocation at March 31, 2018 and 2017, by asset category is as follows: As of March 31, 2018 2017 Corporate bonds 51 % 51 % Others 49 % 49 % |
Pension Cost Recognised in Income Statement [Table Text Block] | The components of net pension cost recognized in the income statement for the years ended March 31, 2018, 2017 and 2016 consist of the following: For the Year Ended March 31, 2018 2017 2016 Current service cost Rs. 12 Rs. 13 Rs. 14 Interest on net defined benefit liability/(asset) 13 12 11 Total cost recognized in income statement Rs. 25 Rs. 25 Rs. 25 |
Employee stock incentive plans
Employee stock incentive plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Schedule of weighted average inputs of fair value of options granted [Text Block] | The weighted average inputs used in computing the fair value of options granted were as follows: Grants made on July 10, 2017 May 11, 2017 November 15, 2016 September 20, 2016 July 26, 2016 Expected volatility 30.86 % 30.08 % 32.77 % 32.92 % 29.88 % Exercise price Rs. 5.00 Rs. 5.00 Rs. 5.00 Rs. 5.00 Rs. 5.00 Option life 2.5 Years 2.5 Years 2.5 Years 2.5 Years 2.5 Years Risk-free interest rate 6.48 % 6.69 % 6.27 % 6.81 % 6.91 % Expected dividends 0.77 % 0.77 % 0.60 % 0.60 % 0.60 % Grant date share price Rs. 2,726.20 Rs. 2,594.00 Rs. 3,310.70 Rs. 3,157.80 Rs. 3,319.65 |
Disclosure of detailed information about share based payment expense [Text Block] | Share-based payment expense For the Year Ended March 31, 2018 2017 2016 Cash settled share-based payment expense (1) 28 48 29 Equity settled share-based payment expense (2) 454 350 442 482 398 471 (1) Certain of the Company’s employees are eligible for share-based payment awards that are settled in cash. These awards entitle the employees to a cash payment, on the exercise date, subject to vesting upon satisfaction of certain service conditions which range from 1 to 4 years. The amount of cash payment is determined based on the price of the Company’s ADSs at the time of exercise. As of March 31, 2018, there was Rs.67 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.96 years. This scheme does not involve dealing in or subscribing to or purchasing securities of the Company, directly or indirectly. (2) As of March 31, 2018, there was Rs.313 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.98 years. |
DRL 2002 Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Disclosure of Number of Options Reserved [Text Block] | After the stock split effected in the form of a stock dividend issued by the Company in August 2006, the DRL 2002 Plan provides for stock option grants in the above two categories as follows: Particulars Number of Number of Total Options reserved under original Plan 300,000 1,995,478 2,295,478 Options exercised prior to stock dividend date (A) 94,061 147,793 241,854 Balance of shares that can be allotted on exercise of options (B) 205,939 1,847,685 2,053,624 Options arising from stock dividend (C) 205,939 1,847,685 2,053,624 Options reserved after stock dividend (A+B+C) 505,939 3,843,163 4,349,102 |
Disclosure Of Number Of Share Options, Weighted Average Exercise Price, Range Of Exercise Prices And Weighted Average Remaining Contractual Life [Text Block] | Category A Fair Market Value Options: There was no activity under this category during the years ended March 31, 2018 and 2017, and there were no options outstanding under this category as of March 31, 2018 and March 31, 2017. For the Year Ended March 31, 2018 Category B Par Value Options Shares arising Range of Weighted Weighted average Outstanding at the beginning of the year 330,142 Rs. 5.00 Rs. 5.00 69 Granted during the year 158,112 5.00 5.00 90 Expired/forfeited during the year (23,318 ) 5.00 5.00 - Exercised during the year (144,392 ) 5.00 5.00 - Outstanding at the end of the year 320,544 Rs. 5.00 Rs. 5.00 70 Exercisable at the end of the year 47,383 Rs. 5.00 Rs. 5.00 49 For the Year Ended March 31, 2017 Category B Par Value Options Shares arising Range of Weighted Weighted average Outstanding at the beginning of the year 427,348 Rs. 5.00 Rs. 5.00 72 Granted during the year 103,136 5.00 5.00 90 Expired/forfeited during the year (22,597 ) 5.00 5.00 - Exercised during the year (177,745 ) 5.00 5.00 - Outstanding at the end of the year 330,142 Rs. 5.00 Rs. 5.00 69 Exercisable at the end of the year 40,882 Rs. 5.00 Rs. 5.00 38 |
DRL 2007 Plans [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Disclosure Of Number Of Share Options, Weighted Average Exercise Price, Range Of Exercise Prices And Weighted Average Remaining Contractual Life [Text Block] | Stock options activity for category B options under the DRL 2007 Plan during the years ended March 31, 2018 and 2017 is as follows: For the Year Ended March 31, 2018 Category B Par Value Options Shares Range of Weighted Weighted average Outstanding at the beginning of the year 88,141 Rs. 5.00 Rs. 5.00 74 Granted during the year 63,304 5.00 5.00 90 Expired/forfeited during the year (19,335 ) 5.00 5.00 - Exercised during the year (24,802 ) 5.00 5.00 - Outstanding at the end of the year 107,308 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 11,034 Rs. 5.00 Rs. 5.00 47 For the Year Ended March 31, 2017 Category B Par Value Options Shares Range of Weighted Weighted average Outstanding at the beginning of the year 92,043 Rs. 5.00 Rs. 5.00 79 Granted during the year 52,956 5.00 5.00 90 Expired/forfeited during the year (23,039 ) 5.00 5.00 - Exercised during the year (33,819 ) 5.00 5.00 - Outstanding at the end of the year 88,141 Rs. 5.00 Rs. 5.00 74 Exercisable at the end of the year 6,517 Rs. 5.00 Rs. 5.00 43 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of other provisions [abstract] | |
Disclosure of Provision [Table Text Block] | The details of changes in provisions during the year ended March 31, 2018 are as follows: Particulars Allowance for (1) Environmental (2) Legal and (3) Total Balance as at April 1, 2017 Rs. 3,784 Rs. 47 Rs. 725 Rs. 4,556 Provision made during the year 2,960 - 142 3,102 Provision used or reversed during the year (3,561 ) - (345 ) (3,906 ) Effect of changes in foreign exchange rates 27 6 - 33 Balance as at March 31, 2018 Rs. 3,210 Rs. 53 Rs. 522 Rs. 3,785 Current Rs. 3,210 Rs. - Rs. 522 Rs. 3,732 Non-current - 53 - 53 Rs. 3,210 Rs. 53 Rs. 522 Rs. 3,785 (1) Provision for sales returns is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) for the Company’s accounting policy on sales returns. (2) As a result of the acquisition of a unit of The Dow Chemical Company in April 2008, the Company assumed a liability for contamination of the Mirfield site acquired of Rs.39 (carrying value Rs.53). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the statements of financial position. (3) Primarily consists of provision recorded towards the potential liability arising out of a litigation relating to cardiovascular and anti-diabetic formulations. Refer to Note 39 (Contingencies) of these consolidated financial statements under “Product and patent related matters - Matters relating to National Pharmaceutical Pricing Authority - Litigation relating to Cardiovascular and Anti-diabetic formulations” for further details. |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Trade and other payables [abstract] | |
Trade And Other Payables [Table Text Block] | Trade and other payables consist of the following: As at March 31, 2018 2017 Due to related parties Rs. 14 Rs. 9 Others 16,038 13,408 Rs. 16,052 Rs. 13,417 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Miscellaneous liabilities [abstract] | |
Schedule Of Other Liabilities [Table Text Block] | Other liabilities consist of the following: As at March 31, 2018 2017 Current Accrued expenses Rs. 14,861 Rs. 13,963 Employee benefits payable 3,927 4,416 Statutory dues payable 915 558 Deferred revenue 622 509 Advance from customers 360 310 Others 1,983 2,089 Rs. 22,668 Rs. 21,845 Non-current Deferred revenue 2,697 3,166 Others 883 911 Rs. 3,580 Rs. 4,077 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Revenue [abstract] | |
Schedule Of Revenue [Table Text Block] | For the Year Ended March 31, 2018 2017 2016 Sales Rs. 138,022 Rs. 138,663 Rs. 152,476 Service income 1,534 1,536 1,466 License fees (1) 2,472 610 766 Rs. 142,028 Rs. 140,809 Rs. 154,708 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 (1) License fees for the year ended March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 35 of these consolidated financial statements for further details. |
Other (income)_expense, net (Ta
Other (income)/expense, net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other operating income expense [Abstract] | |
Other operating income expense [Table Text Block] | Other (income)/expense, net consists of the following: For the Year Ended March 31, 2018 2017 2016 Loss on sale/disposal of property, plant and equipment and other intangibles, net Rs. 55 Rs. 80 Rs. 112 Sale of spent chemicals (297 ) (206 ) (271 ) Scrap sales (169 ) (216 ) (220 ) Miscellaneous income, net (1) (377 ) (723 ) (495 ) Rs. (788 ) Rs. (1,065 ) Rs. (874 ) (1) During the three months ended March 31, 2017, the Company entered into an agreement with Galderma Laboratories, LP to settle the ongoing litigation relating to the Company’s launch of a generic product in the United States. Pursuant to the settlement, the Company recorded an amount of Rs.417, representing the relevant consideration attributable to settlement of such litigation. |
Finance (expense)_income, net (
Finance (expense)/income, net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Finance expense income [Abstract] | |
Schedule of finance expense income [Table Text Block] | Finance (expense)/income, net consists of the following: For the Year Ended March 31, 2018 2017 2016 Interest income Rs. 540 Rs. 558 Rs. 1,399 Dividend and profit on sale of other investments (1) 2,270 956 852 Foreign exchange gain 87 73 - Finance income (A) Rs. 2,897 Rs. 1,587 Rs. 2,251 Interest expense Rs. (788 ) Rs. (634 ) Rs. (826 ) Foreign exchange loss (2) (29 ) (147 ) (4,133 ) Finance expense (B) Rs. (817 ) Rs. (781 ) Rs. (4,959 ) Finance (expense)/income, net [(A)+(B)] Rs. 2,080 Rs. 806 Rs. (2,708 ) (1) Profit on sale of other investments primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s “available for sale” financial instruments. (2) Includes the foreign exchange losses related to the Company’s Venezuela operations of Rs.37, Rs.41 and Rs.4,621 for the year ended March 31, 2018, 2017 and 2016 respectively. Refer to Note 38 of these consolidated financial statements for further details. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of income tax [Abstract] | |
Disclosure of income tax [Table Text Block] | Income tax (expense)/benefit recognized in the consolidated income statement consists of the following: For the Year Ended March 31, 2018 2017 2016 Current taxes Domestic Rs. (1,412 ) Rs. (1,936 ) Rs. (4,331 ) Foreign (363 ) (1,158 ) (3,046 ) Rs. (1,775 ) Rs. (3,094 ) Rs. (7,377 ) Deferred taxes Domestic Rs. (379 ) Rs. 223 Rs. 132 Foreign (2,381 ) 257 118 Rs. (2,760 ) Rs. 480 Rs. 250 Total income tax expense recognized in the consolidated income statement Rs. (4,535 ) Rs. (2,614 ) Rs. (7,127 ) |
Current and deferred tax relating to items charged or credited directly to equity [Table Text Block] | Income tax (expense)/benefit recognized directly in equity consists of the following: For the Year Ended March 31, 2018 2017 2016 Tax effect on changes in fair value of other investments Rs. 1,370 Rs. (499 ) Rs. (88 ) Tax effect on foreign currency translation differences (17 ) 148 (62 ) Tax effect on effective portion of change in fair value of cash flow hedges 41 (60 ) (23 ) Tax effect on actuarial gains/losses on defined benefit obligations (12 ) 14 64 Rs. 1,382 Rs. (397 ) Rs. (109 ) |
Reconciliation Between Enacted and Effective Tax Rates [Table Text Block] | The following is a reconciliation of the Company’s effective tax rates for the years ended March 31, 2018, 2017 and 2016: For the Year Ended March 31, 2018 2017 2016 Profit before income taxes Rs. 14,341 Rs. 14,653 Rs. 27,140 Enacted tax rate in India 34.61 % 34.61 % 34.61 % Computed expected tax benefit/(expense) Rs. (4,963 ) Rs. (5,071 ) Rs. (9,393 ) Effect of: Differences between Indian and foreign tax rates Rs. 712 Rs. 98 Rs. 1,122 (Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net (1,673 ) (2,849 ) (1,600 ) Expenses not deductible for tax purposes (261 ) (378 ) (138 ) Reversal of earlier years’ tax provisions 135 1,370 - Income exempt from income taxes 746 280 731 Foreign exchange differences 41 439 (836 ) Incremental deduction allowed for research and development costs (1) 1,324 3,111 2,782 Tax expense on distributed/undistributed earnings of subsidiary outside India - (3 ) (519 ) Deduction for qualified domestic production activities in the United States - - 38 Effect of change in tax rate (1,329 ) 104 (30 ) Investment allowance deduction - 363 177 Others 733 (79 ) 539 Income tax benefit/(expense) Rs. (4,535 ) Rs. (2,614 ) Rs. (7,127 ) Effective tax rate 32 % 18 % 26 % (1) India’s Finance Act, 2016 incorporated an amendment that reduces the weighted deduction on eligible research and development expenditure in a phased manner from 200% to 150% commencing from April 1, 2017. |
Disclosure of Unrecognised Deferred Tax Assets and Liabilities [Table Text Block] | The details of unrecognized deferred tax assets and liabilities are summarized below: As at March 31, 2018 2017 Deductible temporary differences, net Rs. 4,961 Rs. 3,488 Operating tax loss carry-forward 4,020 3,027 Rs. 8,981 Rs. 6,515 |
Disclosure of Tax Effects of Significant Temporary Differences That Resulted In Deferred Tax [Table Text Block] | The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities and a description of the items that created these differences is given below: As at March 31, 2018 2017 Deferred tax assets/(liabilities): Inventory Rs. 1,790 Rs. 2,385 Minimum Alternate Tax* 1,630 1,614 Trade and other receivables 278 424 Operating tax loss and interest loss carry-forward 112 1,329 Other current assets and other current liabilities, net 1,291 1,715 Property, plant and equipment (2,263 ) (2,142 ) Other intangible assets (569 ) (370 ) Others 629 (579 ) Net deferred tax assets Rs. 2,898 Rs. 4,376 * As per Indian tax laws, companies are liable for a Minimum Alternate Tax (“MAT” tax) when current tax, as computed under the provisions of the Income Tax Act, 1961 (“Tax Act”), is determined to be below the MAT tax computed under section 115JB of the Tax Act. The excess of MAT tax over current tax is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years. |
Disclosure Of Movement in deferred tax assets and liabilities [Table Text Block] | The details of movement in deferred tax assets and liabilities are summarized below: As at March Recognized in Recognized As at March Deferred tax assets/(liabilities) Inventory Rs. 2,385 Rs. (595 ) Rs. - Rs. 1,790 Minimum Alternate Tax 1,614 16 - 1,630 Trade and other receivables 424 (146 ) - 278 Operating tax loss and interest loss carry-forward 1,329 (1,217 ) - 112 Other current assets and other current liabilities, net 1,715 (901 ) 477 1,291 Property, plant and equipment (2,142 ) (121 ) - (2,263 ) Other intangible assets (370 ) (199 ) - (569 ) Others (579 ) 298 910 629 Net deferred tax assets/(liabilities) Rs. 4,376 Rs. (2,865 ) Rs. 1,387 Rs. 2,898 As at March Recognized in Recognized As at March Deferred tax assets/(liabilities) Inventory Rs. 2,579 Rs. (194 ) Rs. - Rs. 2,385 Minimum Alternate Tax 1,614 - - 1,614 Trade and other receivables 412 12 - 424 Operating tax loss and interest loss carry-forward 548 781 - 1,329 Other current assets and other current liabilities, net 2,026 (231 ) (80 ) 1,715 Property, plant and equipment (1,745 ) (397 ) - (2,142 ) Intangible assets (482 ) 112 - (370 ) Others (722 ) 424 (281 ) (579 ) Net deferred tax assets/(liabilities) Rs. 4,230 Rs. 507 Rs. (361 ) Rs. 4,376 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of operating lease by lessee [Abstract] | |
Minimum Rental Payments Payable Under Noncancellable Operating Lease [Table Text Block] | The schedule of future minimum rental payments in respect of non-cancellable operating leases is set out below: As of March 31, 2018 2017 2016 Less than one year Rs. 496 Rs. 383 Rs. 396 Between one and five years 1,144 961 1,185 More than five years 289 366 663 Rs. 1,929 Rs. 1,710 Rs. 2,244 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of transactions between related parties [text block] | For the Year Ended March 31, 2018 2017 2016 Research and development services received Rs. 98 Rs. 114 Rs. 102 Research and development services provided 100 - - Contributions towards social development 238 318 249 Catering services received 178 - - Hotel expenses paid 49 44 51 Lease rentals paid under cancellable operating leases to key management personnel and their relatives 35 39 37 Others 1 - - |
Schedule of outstanding balances for related party transactions [Table Text Block] | The Company has the following amounts due from related parties: As at March 31, 2018 2017 Key management personnel (towards rent deposits) Rs. 8 Rs. 8 Other related parties (Reddy Kunshan and Green Park Hospitality Services Private Limited) 148 - The Company has the following amounts due to related parties: As at March 31, 2018 2017 Due to related parties Rs. 14 Rs. 9 |
Disclosure Of Compensation Paid Or Payable To Key Management Personnel [Table Text Block] | The following table describes the components of compensation paid or payable to key management personnel for the services rendered during the applicable year ended: For the Year Ended March 31, 2018 2017 2016 Salaries and other benefits (1) Rs. 458 Rs. 380 Rs. 336 Contributions to defined contribution plans 38 28 19 Commission to directors 153 180 263 Share-based payments expense 114 75 76 Total Rs. 763 Rs. 663 Rs. 694 (1) In addition to the above, the Company has accrued Rs.0 and Rs.79 towards a long term incentive plan for the services rendered by key management personnel during the years ended March 31, 2018 and 2017, respectively. Refer to Note 18 of these consolidated financial statements for further details. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Carrying value and fair value of financial instruments [Table Text Block] | The carrying value and fair value of financial instruments by each category as at March 31, 2018 were as follows: Note Loans and Available- Held-to- (3) Other Derivatives Total Total fair Assets: Cash and cash equivalents 14 Rs. 2,638 Rs. - Rs. - Rs. - Rs. - Rs. 2,638 Rs. 2,638 Other investments 10 41 15,973 4,865 - - 20,879 20,879 Trade and other receivables 12 40,786 - - - - 40,786 40,786 Derivative financial instruments - - - - 103 103 103 Other assets (1) 13 2,273 - - - - 2,273 2,273 Total Rs. 45,738 Rs. 15,973 Rs. 4,865 Rs. - Rs. 103 Rs. 66,679 Rs. 66,679 Liabilities: Trade and other payables 21 Rs. - Rs. - Rs. - Rs. 16,052 Rs. - Rs. 16,052 Rs. 16,052 Derivative financial instruments - - - - 85 85 85 Long-term borrowings 17 - - - 25,152 - 25,152 25,152 Short-term borrowings 17 - - - 25,466 - 25,466 25,466 Bank overdraft 14 - - - 96 - 96 96 Other liabilities and provisions (2) 20, 22 - - - 20,712 - 20,712 20,712 Total Rs. - Rs. - Rs. - Rs. 87,478 Rs. 85 Rs. 87,563 Rs. 87,563 The carrying value and fair value of financial instruments by each category as at March 31, 2017 were as follows: Note Loans and Available Other Derivatives Total Total fair Assets: Cash and cash equivalents 14 Rs. 3,866 Rs. - Rs. - Rs. - Rs. 3,866 Rs. 3,866 Other investments 10 3,403 16,104 - - 19,507 19,507 Trade and other receivables 12 38,271 - - - 38,271 38,271 Derivative financial instruments - - - 262 262 262 Other assets (1) 13 1,916 - - - 1,916 1,916 Total Rs. 47,456 Rs. 16,104 Rs. - Rs. 262 Rs. 63,822 Rs. 63,822 Liabilities: Trade and other payables 21 Rs. - Rs. - Rs. 13,417 Rs. - Rs. 13,417 Rs. 13,417 Derivative financial instruments - - - 10 10 10 Long-term borrowings 17 - - 5,571 - 5,571 5,571 Short-term borrowings 17 - - 43,539 - 43,539 43,539 Bank overdraft 14 - - 87 - 87 87 Other liabilities and provisions (2) 20, 22 - - 20,391 - 20,391 20,391 Total Rs. - Rs. - Rs. 83,005 Rs. 10 Rs. 83,015 Rs. 83,015 (1) Other assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses, advances paid and certain other receivables) of Rs. 13,058 11,037 (2) Other liabilities that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs. 9,321 10,087 (2) Interest accrued but not due on held-to-maturity investments is included in other current assets. |
Disclosure of fair value measurement [text block] | Particulars Level 1 Level 2 Level 3 Total Available for sale - Financial asset - Investments in units of mutual funds Rs. 14,778 Rs. - Rs. - Rs. 14,778 Available for sale - Financial asset - Investment in equity securities 1,195 - - 1,195 Derivative financial instruments net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 18 - 18 The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017: Particulars Level 1 Level 2 Level 3 Total Available for sale - Financial asset - Investments in units of mutual funds Rs. 11,141 Rs. - Rs. - Rs. 11,141 Available for sale - Financial asset - Investment in equity securities 4,963 - - 4,963 Derivative financial instruments net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 252 - 252 (1) The Company enters into derivative financial instruments with various counterparties, principally financial institutions and banks. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward option and swap contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black-Scholes-Merton models (for option valuation), using present value calculations. The models incorporate various inputs, including foreign exchange forward rates, interest rate curves and forward rate curves. |
Disclosure of detailed information about of gain/loss recognized in Respect of derivative contracts [Text Block] | The following table presents details in respect of the gain/(loss) recognized in respect of derivative contracts during the applicable year ended: For the Year Ended March 31, 2018 2017 2016 Net gain recognized in finance costs in respect of foreign exchange derivative contracts Rs. 168 Rs. 699 Rs. 231 Net gain/(loss) recognized in equity in respect of hedges of highly probable forecast transactions (82) 968 966 Net gain/(loss) recognized as component of revenue 651 (683) (1,172) |
Disclosure of notional amount of outstanding foreign exchange derivative contracts [Table Text Block] | The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2018. Category Instrument Currency Cross (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 72 Sell Forward contract GBP USD GBP 31 Buy Forward contract U.S.$ RUB U.S.$ 38 Buy Option contract U.S.$ INR U.S.$ 65 Sell Hedges of highly probable forecast transactions Forward contract RUB INR RUB 1,080 Sell Option contract U.S.$ INR U.S.$ 240 Sell The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2017. Category Instrument Currency Cross (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 193.5 Sell Forward contract U.S.$ RON U.S.$ 3.0 Buy Forward contract U.S.$ RUB U.S.$ 20.0 Buy Forward contract EUR U.S.$ EUR 95.0 Sell Forward contract GBP U.S.$ GBP 14.1 Buy Option contract U.S.$ INR U.S.$ 80.0 Sell Hedges of highly probable forecast transactions Forward contract RUB INR RUB 150.0 Sell Option contract U.S.$ INR U.S.$ 180.0 Sell (1) |
Disclosure Of Detailed Information About Highly Probable Forecast Transactions Hedged Items [Table Text Block] | The table below summarizes the periods when the cash flows associated with highly probable forecast transactions that are classified as cash flow hedges are expected to occur: As of March 31, 2018 2017 Cash flows in U.S. Dollars Not later than one month Rs. 1,955 Rs. 973 Later than one month and not later than three months 3,911 1,946 Later than three months and not later than six months 5,866 2,918 Later than six months and not later than one year 3,910 5,837 Rs. 15,642 Rs. 11,674 Cash flows in Roubles Not later than one month Rs. 102 Rs. 57 Later than one month and not later than three months 204 115 Later than three months and not later than six months 306 - Later than six months and not later than one year 611 - Rs. 1,223 Rs. 172 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Financial Risk Management [Abstract] | |
Disclosure of foreign currency risk from non-derivative financial instruments [Table Text Block] | The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2018: U.S. Euro Russian Others (1) Total Assets: Cash and cash equivalents Rs. 392 Rs. 62 Rs. 56 Rs. 512 Rs. 1,022 Other investments - - - 20 20 Trade and other receivables 25,427 437 6,691 2,592 35,147 Other assets 125 85 260 196 666 Total Rs. 25,944 Rs. 584 Rs. 7,007 Rs. 3,320 Rs. 36,855 Liabilities: Trade and other payables Rs. 3,526 Rs. 1,658 Rs. 2 Rs. 1,118 Rs. 6,304 Long-term borrowings 4,888 - - - 4,888 Short-term borrowings 19,552 - 2,378 178 22,108 Other liabilities and provisions 5,147 104 1,896 770 7,917 Total Rs. 33,113 Rs. 1,762 Rs. 4,276 Rs. 2,066 Rs. 41,217 The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2017: U.S. Euro Russian Others (1) Total Assets: Cash and cash equivalents Rs. 130 Rs. 87 Rs. 59 Rs. 840 Rs. 1,116 Other investments - - - 14 14 Trade and other receivables 24,581 567 6,259 2,121 33,528 Other assets 458 - 70 33 561 Total Rs. 25,169 Rs. 654 Rs. 6,388 Rs. 3,008 Rs. 35,219 Liabilities: Trade and other payables Rs. 2,323 Rs. 903 Rs. - Rs. 328 Rs. 3,554 Long-term borrowings 4,865 - 76 - 4,941 Short-term borrowings 12,970 - 4,023 - 16,993 Bank overdraft 86 - - - 86 Other liabilities and provisions 6,660 117 1,640 622 9,039 Total Rs. 26,904 Rs. 1,020 Rs. 5,739 Rs. 950 Rs. 34,613 (1) Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus and Ukrainian hryvnia. |
Analysis Of Age Of Trade And Other Receivables That Are Past Due But Not Impaired [Table Text Block] | The Company’s credit period for customers generally ranges from 20 - 180 days. The aging of trade and other receivables that are past due but not impaired is given below: As of March 31, Period (in days) 2018 2017 1 90 Rs. 4,510 Rs. 8,380 90 180 177 707 More than 180 1,303 1,376 Total Rs. 5,990 Rs. 10,463 |
Maturity Analysis For Financial Liabilities [Table Text Block] | Particulars 2019 2020 2021 2022 Thereafter Total Trade and other payables Rs. 16,052 Rs. - Rs. - Rs. - Rs. - Rs. 16,052 Bank overdraft, short-term loans and borrowings 25,562 - - - - 25,562 Other liabilities and provisions 19,885 92 16 16 703 20,712 Derivative financial instruments - liabilities 85 - - - - 85 The table below provides details regarding the contractual maturities of significant financial liabilities (other than long term loans, borrowings and obligations under finance leases, which have been disclosed in Note 17 to these consolidated financial statements) as at March 31, 2017: Particulars 2018 2019 2020 2021 Thereafter Total Trade and other payables Rs. 13,417 Rs. - Rs. - Rs. - Rs. - Rs. 13,417 Bank overdraft, short-term loans and borrowings 43,626 - - - - 43,626 Other liabilities and provisions 19,564 88 7 9 723 20,391 Derivative financial instruments - liabilities 10 - - - - 10 |
Asset purchase agreement with81
Asset purchase agreement with Teva Pharmaceutical Industries Limited (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Teva Pharmaceutical Industries Ltd [Member] | |
Disclosure Of Asset Purchase Agreement [Line Items] | |
Disclosure of details of asset purchase agreement [Text Block] | Tabulated below are the details of products acquired and the respective purchase prices in U.S.$, along with the corresponding amount in Rs. as of the payment date: Particulars of the ANDA Purchase Purchase Ethinyl estradiol/Ethonogestrel Vaginal Ring (a generic equivalent to NuvaRing®) U.S.$ 185 Rs. 12,351 Buprenorphine HCl/Naloxone HCl Sublingual Film (a generic equivalent to Suboxone® sublingual film) 70 4,673 Ramelteon Tablets (a generic equivalent to Rozerem®) 34 2,270 Others 61 4,072 Grand Total U.S.$ 350 Rs. 23,366 |
Significant asset purchase ag82
Significant asset purchase agreements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Significant asset purchase agreements [Abstract] | |
Detailed Information About Significant Asset purchase Agreement Explanatory [Table Text Block] | Tabulated below are certain significant asset purchase agreements entered into by the Company during its fiscal years ended March 31, 2016, 2017 and 2018: Month Counterparty Brief particulars of the asset / agreement Useful life Carrying value as June 2015 UCB India Private Limited and affiliates Purchase of a select portfolio of established products business in the territories of India, Nepal, Sri Lanka and Maldives to strengthen our presence in the areas of dermatology, respiratory and pediatric products, all for a total purchase consideration of Rs.8,000. 9 to 15 years Rs. 6,081 September 2015 Hatchtech Pty Limited Purchase of intellectual property rights of an innovative prescription head lice product, Xeglyze lotion. Consideration was an upfront amount of Rs.606 plus certain milestone-based payments. Not available for use yet Rs. 1,011 November 2015 Alchemia Limited Purchase of worldwide, exclusive intellectual property rights to fondaparinux sodium, all for an aggregate consideration of Rs.1,158. 4 years Rs. 459 March 2016 XenoPort, Inc. Purchase of exclusive U.S. rights for the development and commercialization of XenoPort’s clinical stage oral new chemical entity, all for an aggregate consideration of Rs.3,159. The Company plans to develop the in-licensed compound as a potential treatment for moderate-to-severe chronic plaque psoriasis and for relapsing forms of multiple sclerosis. Not available for use yet Rs. 3,219 March 2016 and Eisai Company Limited Acquisition of commercialization rights for an anti-cancer biologic agent (E7777) from Eisai Company Limited. The consideration was an upfront amount plus certain milestone-based payments. Not available for use yet Rs. 1,065 May 2016 Ducere Pharma LLC Purchase of certain pharmaceutical brands to strengthen the Company’s presence in the dermatology, cough-and-cold and pain therapeutic areas forming part of the Company’s OTC business in the United States, all for an aggregate consideration of Rs.1,148. 15 years Rs. 980 November 2016 Gland Pharma Limited Acquisition of the rights to in-license, market and distribute eight injectable ANDAs, all for an aggregate consideration of U.S.$5.9. Not available for use yet Rs. 231 |
Significant out-licensing agr83
Significant out-licensing agreements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Significant Out-Licensing Agreements [Abstract] | |
Detailed Information About Out-Licensing Agreement Explanatory [Table Text Block] | Month and Year Counterparty Product Brief particulars of the agreement July 2017 CHD Biosciences Inc. (“CHD”) DFA-02 As a consideration for out-licensing the Phase III clinical trial candidate, DFA-02, the Company is entitled to receive equity shares in CHD valued at U.S.$30 upon an initial public offering of CHD or, if no initial public offering occurs within 18 months of execution of the agreement, a cash payment of U.S.$30. The Company will also receive additional milestone payments of U.S.$40 upon U.S. FDA approval. In addition, the Company is entitled to royalties on sales and certain other commercial milestone payments with respect to the product. At the time of execution, as the arrangement did not meet all of the revenue recognition criteria under IAS 18, no revenue has been recognized for the transaction. September 2017 Encore Dermatology Inc. DFD-06 The consideration for this arrangement consists of up to U.S.$20 in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 of amounts contingent upon satisfaction of certain patent and commercial milestones. In addition, the Company is entitled to royalties on net sales. During the three months ended December 31, 2017, all of the performance obligations relating to the approval milestones were met, and consequently, revenue of U.S.$20 was recognized. |
Venezuela subsidiary operatio84
Venezuela subsidiary operations (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Schedule of impact of the devaluation of venezuelan currency on the financial statements [Abstract] | |
Schedule of impact of the devaluation of venezuelan currency on the financial statements [Table Text Block] | Tabulated below was the impact of the foregoing on the financial statements of the Company as at March 31, 2015 and 2016: Year ended Particulars March 31, 2015 March 31, 2016 Foreign exchange loss due to currency devaluation and translation of monetary assets and liabilities using SIMADI/DICOM rate recorded under finance expense Rs. 843 Rs. 4,621 Impact of inventory write down and reversal of export incentives recorded under cost of revenues - 341 Impairment of property, plant and equipment recorded under selling, general and administrative expenses - 123 Total Rs. 843 Rs. 5,085 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of contingent liabilities [abstract] | |
Disclosures of the show cause notices issued by Central Excise Authorities regarding distribution of input service tax credits [Table Text Block] | The below table shows the details of each such demand notice, the amount demanded and the current status of the Company’s responsive actions. Period covered under the notice Amount demanded Status March 2008 to September 2009 Rs.102 plus penalties of Rs.102 and interest The Company has filed an appeal before the CESTAT October 2009 to March 2011 Rs.125 plus penalties of Rs.100 and interest The Company has filed an appeal before the CESTAT April 2011 to March 2012 Rs.51 plus interest and penalties The Company has filed an appeal before the CESTAT April 2012 to March 2013 Rs.54 plus interest and penalties The Company has filed an appeal before the CESTAT April 2013 to March 2014 Rs.69 plus interest and penalties The Company has filed an appeal before the CESTAT April 2014 to March 2015 Rs.108 plus interest and penalties The Company has filed an appeal before the CESTAT April 2015 to March 2016 Rs.157 plus interest and penalties The Company is in the process of responding to the notice |
Disclosure of the show cause notices issued by Commercial Taxes Department regarding VAT input credit [Table Text Block] | The below table shows the details of each of such demand notice, the amount demanded and the current status of the Company’s responsive actions. Period covered under Amount demanded Status April 2006 to March 2009 Rs.66 plus 10% penalty The Company has filed an appeal before the Sales Tax Appellate Tribunal April 2009 to March 2011 Rs.59 plus 10% penalty The Company has filed an appeal before the Sales Tax Appellate Tribunal April 2011 to March 2013 Rs.16 plus 10% penalty The Appellate Deputy Commissioner issued an order partially in favor of the Company |
Nature of Expense (Tables)
Nature of Expense (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Expenses by nature [abstract] | |
Supplemental Information About Expense By Nature [Text Block] | The following table shows supplemental information related to certain “nature of expense” items for the years ended March 31, 2018, 2017 and 2016: For the Year Ended March 31, Employee benefits 2018 2017 2016 Cost of revenues Rs. 10,434 Rs. 10,515 Rs. 9,574 Selling, general and administrative expenses 17,004 15,838 16,641 Research and development expenses 4,711 4,716 4,959 Rs. 32,149 Rs. 31,069 Rs. 31,174 For the Year Ended March 31, Depreciation and amortization 2018 2017 2016 Cost of revenues Rs. 6,595 Rs. 6,117 Rs. 5,241 Selling, general and administrative expenses 3,883 3,935 3,933 Research and development expenses 1,232 1,225 1,076 Rs. 11,710 Rs. 11,277 Rs. 10,250 |
Organizational structure (Table
Organizational structure (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Interests in other entities [Abstract] | |
Disclosure of interests in other entities [text block] | Dr. Reddy’s Laboratories Limited is the parent company. Tabulated below is the list of subsidiaries and joint ventures as of March 31, 2018: Name of the subsidiary/joint venture Country of Percentage of Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. Malaysia 100 % (3) Aurigene Discovery Technologies Inc. U.S.A. 100 % (3) Aurigene Discovery Technologies Limited India 100 % beta Institut gemeinnützige GmbH Germany 100 % (8) betapharm Arzneimittel GmbH Germany 100 % (8) Cheminor Investments Limited India 100 % Cheminor Employees Welfare Trust India Refer to footnote 16 Chirotech Technology Limited United Kingdom 100 % (5) Dr. Reddy’s Research Foundation India Refer to footnote 16 Dr. Reddy’s Farmaceutica Do Brasil Ltda. Brazil 100 % Dr. Reddy’s Laboratories (EU) Limited United Kingdom 100 % (10) Dr. Reddy’s Laboratories (Proprietary) Limited South Africa 100 % (10) Dr. Reddy’s Laboratories (UK) Limited United Kingdom 100 % (5) Dr. Reddy’s Laboratories Canada, Inc. Canada 100 % (10) Dr. Reddy's Laboratories Chile SPA. (from June 16, 2017) Chile 100 % (10) Dr. Reddy’s Laboratories Inc. U.S.A. 100 % (10) Dr. Reddy’s Laboratories International SA Switzerland 100 % (10) Dr. Reddy’s Laboratories Japan KK Japan 100 % (10) Dr. Reddy’s Laboratories Kazakhstan LLP Kazakhstan 100 % (10) Dr. Reddy’s Laboratories Louisiana LLC U.S.A. 100 % (6) Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. (from July 10, 2017) Malaysia 100 % (10) Dr. Reddy’s Laboratories New York, Inc. U.S.A. 100 % (10) Dr. Reddy’s Laboratories Romania S.R.L. Romania 100 % (10) Dr. Reddy’s Laboratories SA Switzerland 100 % Dr. Reddy's Laboratories Taiwan Limited (from February 23, 2018) Taiwan 100 % (10) Dr. Reddy’s Laboratories Tennessee, LLC U.S.A. 100 % (6) Dr. Reddy’s Laboratories, LLC Ukraine 100 % (10) Dr. Reddy’s New Zealand Limited. New Zealand 100 % (10) Dr. Reddy’s Singapore PTE Limited Singapore 100 % (10) Dr. Reddy’s Srl Italy 100 % (11) Dr. Reddy's Bio-Sciences Limited India 100 % Dr. Reddy's Laboratories (Australia) Pty. Limited Australia 100 % (10) Dr. Reddy's Laboratories SAS Colombia 100 % (10) Dr. Reddy's Research and Development B.V. (formerly Octoplus B.V.) Netherlands 100 % (12) Dr. Reddy's Venezuela, C.A. Venezuela 100 % (10) Dr. Reddy’s (WUXI) Pharmaceutical Company Limited (from June 2, 2017) China 100 % (10) DRANU LLC U.S.A. 50 % (13) DRES Energy Private Limited India 26 % (14) DRL Impex Limited India 100 % (15) DRSS Solar Power Private Limited (liquidated on November 1, 2017) India 26 % (14) (2) Eurobridge Consulting B.V. Netherlands 100 % (1) Idea2Enterprises (India) Pvt. Limited India 100 % Imperial Credit Private Limited India 100 % Industrias Quimicas Falcon de Mexico, S.A. de CV Mexico 100 % Kunshan Rotam Reddy Pharmaceutical Co. Limited China 51.33 % (4) Lacock Holdings Limited Cyprus 100 % (10) OOO Dr. Reddy's Laboratories Limited Russia 100 % (10) Name of the subsidiary Country of Percentage of Direct/Indirect OOO DRS LLC Russia 100 % (9) Promius Pharma LLC U.S.A. 100 % (6) Reddy Antilles N.V. Netherlands 100 % Reddy Holding GmbH Germany 100 % (10) Reddy Netherlands B.V. Netherlands 100 % (10) Reddy Pharma Iberia SA Spain 100 % (10) Reddy Pharma Italia S.R.L. Italy 100 % (7) Reddy Pharma SAS France 100 % (10) Regkinetics Services Limited (formerly Dr. Reddy’s Pharma SEZ Limited) India 100 % (1) Indirectly owned through Dr. Reddy’s Research and development B.V. (from March 29, 2018), formerly a subsidiary of Reddy Antilles N.V. (2) Entities liquidated during the year. (3) Indirectly owned through Aurigene Discovery Technologies Limited. (4) Kunshan Rotam Reddy Pharmaceutical Co. Limited is a subsidiary, as the Company holds a 51.33% stake. However, the Company accounts for this investment by the equity method and does not consolidate it in the Company’s financial statements. (5) Indirectly owned through Dr. Reddy’s Laboratories (EU) Limited. (6) Indirectly owned through Dr. Reddy’s Laboratories Inc. (7) Indirectly owned through Lacock Holdings Limited. (8) Indirectly owned through Reddy Holding GmbH. (9) Indirectly owned through Eurobridge Consulting B.V. (10) Indirectly owned through Dr. Reddy’s Laboratories SA. (11) Indirectly owned through Reddy Pharma Italia S.R.L. (12) Indirectly owned through Reddy Netherlands B.V. (13) DRANU LLC is consolidated in accordance with guidance available in IFRS 10. (14) Accounted in accordance with IFRS 11 ‘Joint Arrangements’. (15) Indirectly owned through Idea2Enterprises (India) Pvt. Limited. (16) The Company does not have any equity interests in this entity, but has significant influence or control over it. |
Basis of preparation of finan88
Basis of preparation of financial statements (Details Textual) | Mar. 31, 2018INRPerUSD |
Basis of preparation of financial statements [Line Items] | |
Convenience Translation rate | 65.11 |
Significant accounting polici89
Significant accounting policies (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Factory and administrative buildings [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 20 - 50 years |
Ancillary structures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 - 15 years |
Plant and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 - 15 years |
Furniture, fixtures and office equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 4 - 10 years |
Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 4 - 5 years |
Computer Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 - 5 years |
Significant accounting polici90
Significant accounting policies (Details 1) | 12 Months Ended |
Mar. 31, 2018 | |
Trademarks [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3 - 12 years |
Product related intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 5 - 15 years |
Customer-related intangibles [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 1 - 11 years |
Technology related intangibles [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3 - 13 years |
Other intangibles assets [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3 - 15 years |
Significant accounting polici91
Significant accounting policies (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | ₨ 1,929 | ₨ 1,710 | ₨ 2,244 |
Top of range [member] | |||
Significant Accounting Policies [Line Items] | |||
Hedge Effectiveness, Percentage at which the hedge considered effective | 125.00% | ||
Bottom of range [member] | |||
Significant Accounting Policies [Line Items] | |||
Hedge Effectiveness, Percentage at which the hedge considered effective | 80.00% |
Segment reporting (Details)
Segment reporting (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [3] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |||||
Disclosure of operating segments [line items] | |||||||||
Revenues | ₨ 142,028 | [1],[2] | $ 2,181 | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] | ||
Gross Profit | 76,304 | 1,172 | 78,356 | 92,281 | |||||
Selling, general and administrative expenses | 46,910 | 720 | 46,372 | 45,702 | |||||
Research and development expenses | 18,265 | 281 | 19,551 | 17,834 | |||||
Other (income)/expense, net | (788) | (12) | (1,065) | (874) | |||||
Results from operating activities | 11,917 | 183 | 13,498 | 29,619 | |||||
Finance (expense)/income, net | 2,080 | 32 | 806 | (2,708) | |||||
Share of profit of equity accounted investees, net of tax | 344 | 349 | 229 | ||||||
Profit before tax | 14,341 | 220 | 14,653 | 27,140 | |||||
Tax expense | 4,535 | 70 | 2,614 | 7,127 | |||||
Profit for the year | 9,806 | $ 151 | 12,039 | 20,013 | |||||
Global Generics [Member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | [2] | 114,014 | 115,409 | 128,062 | |||||
Gross Profit | 67,190 | 71,079 | 84,427 | ||||||
Pharmaceutical Services and Active Ingredients [Member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | [2] | 21,992 | 21,277 | 22,379 | |||||
Gross Profit | 4,446 | 4,473 | 4,931 | ||||||
Proprietary Product [Member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | [2] | 4,245 | 2,363 | 2,659 | |||||
Gross Profit | 3,799 | 1,951 | 2,217 | ||||||
Other segment [Member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | [1],[2] | 1,777 | 1,760 | 1,608 | |||||
Gross Profit | ₨ 869 | ₨ 853 | ₨ 706 | ||||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | ||||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | ||||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Segment reporting (Details 1)
Segment reporting (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of excise duty [Line Items] | |||
Excise duty | ₨ 173 | ₨ 939 | ₨ 842 |
Segment reporting (Details 2)
Segment reporting (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [3] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||||
Disclosures Of Geographical Areas [Line Items] | ||||||||
Revenue | ₨ 142,028 | [1],[2] | $ 2,181 | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] | |
India [Member] | ||||||||
Disclosures Of Geographical Areas [Line Items] | ||||||||
Revenue | 25,209 | 24,927 | 23,913 | |||||
United States [Member] | ||||||||
Disclosures Of Geographical Areas [Line Items] | ||||||||
Revenue | 68,124 | 69,816 | 81,154 | |||||
Russia [Member] | ||||||||
Disclosures Of Geographical Areas [Line Items] | ||||||||
Revenue | 12,610 | 11,547 | 10,640 | |||||
Others [Member] | ||||||||
Disclosures Of Geographical Areas [Line Items] | ||||||||
Revenue | ₨ 36,085 | ₨ 34,519 | ₨ 39,001 | |||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Segment reporting (Details 3)
Segment reporting (Details 3) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [3] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||||
Disclosure of operating segments [line items] | ||||||||
Revenue | ₨ 142,028 | [1],[2] | $ 2,181 | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] | |
Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 114,014 | 115,409 | 128,062 | |||||
Gastrointestinal [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 19,153 | 21,190 | 21,253 | |||||
Oncology [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 16,999 | 17,054 | 19,410 | |||||
Cardiovascular [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 16,501 | 15,553 | 19,009 | |||||
Pain Management [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 12,898 | 14,323 | 16,240 | |||||
Central Nervous System [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 12,509 | 12,749 | 14,739 | |||||
Anti-Infective [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | 6,557 | 7,189 | 12,711 | |||||
Others [Member] | Global Generic [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenue | ₨ 29,397 | ₨ 27,351 | ₨ 24,700 | |||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Segment reporting (Details 4)
Segment reporting (Details 4) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [3] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | ₨ 142,028 | [1],[2] | $ 2,181 | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] | |
Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 21,992 | 21,277 | 22,379 | |||||
Cardiovascular [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 6,191 | 5,078 | 5,077 | |||||
Pain Management [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 3,228 | 3,290 | 4,085 | |||||
Central Nervous System [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 2,331 | 2,758 | 3,021 | |||||
Oncology [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 1,650 | 1,534 | 2,570 | |||||
Anti-Infective [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 1,968 | 1,859 | 2,015 | |||||
Others [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | 5,018 | 5,152 | 4,126 | |||||
Dermatology [Member] | Pharmaceutical Services and Active Ingredient [Member] | ||||||||
Disclosure Of Operating Segment [Line Items] | ||||||||
Revenue | ₨ 1,606 | ₨ 1,606 | ₨ 1,485 | |||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Segment reporting (Details 5)
Segment reporting (Details 5) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | ₨ 108,857 | ₨ 107,633 |
India [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 57,818 | 57,997 |
United States [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 8,361 | 8,660 |
Switzerland [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 32,287 | 31,543 |
Germany [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 2,876 | 3,220 |
Others [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | ₨ 7,515 | ₨ 6,213 |
Segment reporting (Details 6)
Segment reporting (Details 6) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of geographical areas [line items] | ||
Property, plant and equipments including capital work in progress and intangible assets acquired, other than goodwill arising on business combination | ₨ 10,914 | ₨ 40,569 |
India [Member] | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipments including capital work in progress and intangible assets acquired, other than goodwill arising on business combination | 7,807 | 10,545 |
Switzerland [Member] | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipments including capital work in progress and intangible assets acquired, other than goodwill arising on business combination | 1,100 | 26,639 |
United States [Member] | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipments including capital work in progress and intangible assets acquired, other than goodwill arising on business combination | 723 | 2,657 |
Others [Member] | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipments including capital work in progress and intangible assets acquired, other than goodwill arising on business combination | ₨ 1,284 | ₨ 728 |
Segment reporting (Details 7)
Segment reporting (Details 7) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | ₨ 11,710 | ₨ 11,277 | ₨ 10,250 |
Cost of Revenues [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 6,595 | 6,117 | 5,241 |
Global Generic [Member] | Cost of Revenues [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 3,606 | 3,381 | 2,742 |
PSAI [Member] | Cost of Revenues [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 2,923 | 2,674 | 2,437 |
Proprietary Products [Member] | Cost of Revenues [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 0 | 0 | 0 |
Others [Member] | Cost of Revenues [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | ₨ 66 | ₨ 62 | ₨ 62 |
Segment reporting (Details Text
Segment reporting (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |||||
Disclosure of major customers [line items] | ||||||||
Revenue | ₨ 142,028 | [1],[2] | $ 2,181 | [3] | ₨ 140,809 | [1],[2] | ₨ 154,708 | [1],[2] |
Inter-segment revenues from PSAI to Global Generic | 5,492 | 6,181 | ₨ 5,447 | |||||
Major Customer 1 [Member] | ||||||||
Disclosure of major customers [line items] | ||||||||
Revenue | ₨ 13,486 | ₨ 22,760 | ||||||
Percentage of entity's revenue | 9.00% | 9.00% | 16.00% | |||||
Major Customer 2 [Member] | ||||||||
Disclosure of major customers [line items] | ||||||||
Revenue | ₨ 10,755 | |||||||
Percentage of entity's revenue | 8.00% | 8.00% | ||||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Property, plant and equipmen101
Property, plant and equipment (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | ₨ 57,160 | |||
Additions | ||||
Ending Balance | 57,869 | $ 889 | [1] | 57,160 |
Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 93,494 | 82,590 | ||
Additions | 7,612 | 12,450 | ||
Disposals | (1,549) | (764) | ||
Effect of changes in foreign exchange rates | 629 | (782) | ||
Ending Balance | 100,186 | 93,494 | ||
Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 42,980 | 36,179 | ||
Depreciation for the year | 8,285 | 7,596 | ||
Impairment loss | 331 | |||
Disposals | (1,392) | (719) | ||
Effect of changes in foreign exchange rates | 372 | (407) | ||
Ending Balance | 50,245 | 42,980 | ||
Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 50,514 | 46,411 | ||
Ending Balance | 49,941 | 50,514 | ||
Plant and equipment [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 62,429 | 54,393 | ||
Additions | 5,458 | 9,090 | ||
Disposals | (1,071) | (521) | ||
Effect of changes in foreign exchange rates | 399 | (533) | ||
Ending Balance | 67,215 | 62,429 | ||
Plant and equipment [Member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 33,225 | 27,982 | ||
Depreciation for the year | 6,455 | 5,971 | ||
Impairment loss | 69 | |||
Disposals | (955) | (499) | ||
Effect of changes in foreign exchange rates | 260 | (298) | ||
Ending Balance | 38,985 | 33,225 | ||
Plant and equipment [Member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 29,204 | 26,411 | ||
Ending Balance | 28,230 | 29,204 | ||
Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 6,646 | |||
Ending Balance | 7,928 | 6,646 | ||
Land [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 3,868 | 3,814 | ||
Additions | 324 | 98 | ||
Disposals | (7) | 0 | ||
Effect of changes in foreign exchange rates | 31 | (44) | ||
Ending Balance | 4,216 | 3,868 | ||
Land [Member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 38 | 0 | ||
Depreciation for the year | 0 | 0 | ||
Impairment loss | 38 | |||
Disposals | 0 | 0 | ||
Effect of changes in foreign exchange rates | 0 | 0 | ||
Ending Balance | 38 | 38 | ||
Land [Member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 3,830 | 3,814 | ||
Ending Balance | 4,178 | 3,830 | ||
Buildings [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 21,291 | 19,095 | ||
Additions | 1,030 | 2,395 | ||
Disposals | (42) | (34) | ||
Effect of changes in foreign exchange rates | 162 | (165) | ||
Ending Balance | 22,441 | 21,291 | ||
Buildings [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 5,318 | 4,302 | ||
Depreciation for the year | 972 | 896 | ||
Impairment loss | 214 | |||
Disposals | (29) | (23) | ||
Effect of changes in foreign exchange rates | 82 | (71) | ||
Ending Balance | 6,343 | 5,318 | ||
Buildings [member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 15,973 | 14,793 | ||
Ending Balance | 16,098 | 15,973 | ||
Computer Equipment [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 2,727 | 2,246 | ||
Additions | 313 | 566 | ||
Disposals | (125) | (70) | ||
Effect of changes in foreign exchange rates | 15 | (15) | ||
Ending Balance | 2,930 | 2,727 | ||
Computer Equipment [Member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 1,861 | 1,553 | ||
Depreciation for the year | 373 | 378 | ||
Impairment loss | 10 | |||
Disposals | (105) | (67) | ||
Effect of changes in foreign exchange rates | 12 | (13) | ||
Ending Balance | 2,141 | 1,861 | ||
Computer Equipment [Member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 866 | 693 | ||
Ending Balance | 789 | 866 | ||
Office Equipment [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 2,428 | 2,265 | ||
Additions | 194 | 205 | ||
Disposals | (29) | (19) | ||
Effect of changes in foreign exchange rates | 21 | (23) | ||
Ending Balance | 2,614 | 2,428 | ||
Office Equipment [Member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 2,146 | 1,953 | ||
Depreciation for the year | 240 | 231 | ||
Impairment loss | 0 | |||
Disposals | (39) | (14) | ||
Effect of changes in foreign exchange rates | 17 | (24) | ||
Ending Balance | 2,364 | 2,146 | ||
Office Equipment [Member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 282 | 312 | ||
Ending Balance | 250 | 282 | ||
Vehicles [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 751 | 777 | ||
Additions | 293 | 96 | ||
Disposals | (275) | (120) | ||
Effect of changes in foreign exchange rates | 1 | (2) | ||
Ending Balance | 770 | 751 | ||
Vehicles [Member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 392 | 389 | ||
Depreciation for the year | 245 | 120 | ||
Impairment loss | 0 | |||
Disposals | (264) | (116) | ||
Effect of changes in foreign exchange rates | 1 | (1) | ||
Ending Balance | 374 | 392 | ||
Vehicles [Member] | Excluding Capital-work-in-progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning Balance | 359 | 388 | ||
Ending Balance | ₨ 396 | ₨ 359 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Property, plant and equipmen102
Property, plant and equipment (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | ₨ 3,788 | ₨ 5,256 |
Recognised finance lease as assets | 502 | 511 |
Impairment loss | 335 | |
Impairment Recorded In Construction In Progress | 4 | |
Property, Plant and Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Interest costs capitalised | ₨ 71 | ₨ 65 |
Capitalisation rate of borrowing costs eligible for capitalisation | 2.76% | 2.14% |
After tax [Member] | Bottom of range [member] | Property, Plant and Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Discount rate used in current estimate of value in use | 6.68% | |
Before tax [Member] | Top of range [member] | Property, Plant and Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Discount rate used in current estimate of value in use | 9.02% |
Goodwill (Details)
Goodwill (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2017INR (₨) | Mar. 31, 2018USD ($) | [3] | ||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Opening balance, gross | ₨ 20,026 | ₨ 20,122 | |||
Goodwill arising on business combinations during the year | [1] | 0 | 10 | ||
Effect of translation adjustments | 193 | (106) | |||
Impairment loss | [2] | (16,274) | (16,274) | ||
Closing balance | ₨ 3,945 | ₨ 3,752 | $ 61 | ||
[1] | Rs.10 as of March 31, 2017 represents goodwill arising from the acquisition of Imperial Credit Private Limited. | ||||
[2] | The impairment loss of Rs.16,274 includes Rs.16,003 pertaining to the Company’s German subsidiary, betapharm Arzneimittel GmbH, which is part of the Company’s Global Generics segment. This impairment loss was recorded for the years ended March 31, 2009 and 2010. | ||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Goodwill (Details 1)
Goodwill (Details 1) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | ₨ 3,945 | $ 61 | ₨ 3,752 | |
Cash-generating units [member] | PSAI- Active Pharmaceutical Operations [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 997 | 997 | ||
Cash-generating units [member] | Global Generics- Complex Injectables [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 1,339 | 1,148 | ||
Cash-generating units [member] | Global Generics- North America Operations [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 995 | 995 | ||
Cash-generating units [member] | Global Generics- Branded Formulations [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 491 | 491 | ||
Cash-generating units [member] | Other Cash-generating units [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | ₨ 123 | ₨ 121 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Goodwill (Details Textual)
Goodwill (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Additional recognition, goodwill | [1] | ₨ 0 | ₨ 10 |
Impairment Loss Recorded In Goodwill Till Date | 16,274 | 16,274 | |
Impairment Loss Recorded In Goodwill Pertaining To A Subsidiary Till Date | ₨ 16,003 | 16,003 | |
Growth rate used to extrapolate cash flow projections | 0.00% | ||
Business combinations [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Additional recognition, goodwill | ₨ 10 | ||
Before tax [Member] | Bottom of range [member] | Intangibles [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Discount rate used in current estimate of value in use | 9.32% | ||
Before tax [Member] | Top of range [member] | Intangibles [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Discount rate used in current estimate of value in use | 33.43% | ||
After tax [Member] | Bottom of range [member] | Intangibles [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Discount rate used in current estimate of value in use | 6.97% | ||
After tax [Member] | Top of range [member] | Intangibles [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Discount rate used in current estimate of value in use | 13.74% | ||
[1] | Rs.10 as of March 31, 2017 represents goodwill arising from the acquisition of Imperial Credit Private Limited. |
Other intangible assets (Detail
Other intangible assets (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | ₨ 44,925 | ₨ 20,796 | |||||
Amortization for the year | 3,425 | 3,681 | ₨ 3,470 | ||||
Impairment loss | 53 | 110 | 194 | ||||
De-recognitions | (1,131) | ||||||
Ending balance | 44,665 | $ 686 | 44,925 | 20,796 | |||
Trademarks with finite useful life [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 2,870 | 2,492 | |||||
Ending balance | 2,556 | 2,870 | 2,492 | ||||
Product related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 39,166 | 15,141 | |||||
Ending balance | 39,637 | 39,166 | 15,141 | ||||
Technology related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 1,069 | 1,594 | |||||
Ending balance | 705 | 1,069 | 1,594 | ||||
Customer related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 0 | 15 | |||||
Ending balance | 0 | 0 | 15 | ||||
Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 1,820 | 1,554 | |||||
Ending balance | 1,767 | 1,820 | 1,554 | ||||
Gross carrying amount [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 79,066 | 54,160 | |||||
Additions | 2,605 | 29,205 | [2] | ||||
De-recognitions | [3] | (1,131) | |||||
Effect of changes in foreign exchange rates | 3,870 | (3,168) | |||||
Ending balance | 85,541 | 79,066 | 54,160 | ||||
Gross carrying amount [member] | Trademarks with finite useful life [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 10,677 | 10,178 | |||||
Additions | 0 | 1,148 | [2] | ||||
De-recognitions | [3] | (32) | |||||
Effect of changes in foreign exchange rates | 1,162 | (617) | |||||
Ending balance | 11,839 | 10,677 | 10,178 | ||||
Gross carrying amount [member] | Product related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 62,625 | 37,740 | |||||
Additions | 2,377 | 27,419 | [2] | ||||
De-recognitions | [3] | (269) | |||||
Effect of changes in foreign exchange rates | 2,496 | (2,265) | |||||
Ending balance | 67,498 | 62,625 | 37,740 | ||||
Gross carrying amount [member] | Technology related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 2,644 | 2,847 | |||||
Additions | 0 | 27 | [2] | ||||
De-recognitions | [3] | 0 | |||||
Effect of changes in foreign exchange rates | 206 | (230) | |||||
Ending balance | 2,850 | 2,644 | 2,847 | ||||
Gross carrying amount [member] | Customer related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 357 | 1,100 | |||||
Additions | 0 | 0 | [2] | ||||
De-recognitions | [3] | (706) | |||||
Effect of changes in foreign exchange rates | 0 | (37) | |||||
Ending balance | 357 | 357 | 1,100 | ||||
Gross carrying amount [member] | Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 2,763 | 2,295 | |||||
Additions | 228 | 611 | [2] | ||||
De-recognitions | [3] | (124) | |||||
Effect of changes in foreign exchange rates | 6 | (19) | |||||
Ending balance | 2,997 | 2,763 | 2,295 | ||||
Accumulated depreciation, amortization and impairment [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 34,141 | 33,364 | |||||
Amortization for the year | 3,425 | 3,681 | |||||
Impairment loss | 53 | 110 | |||||
De-recognitions | [3] | (1,131) | |||||
Effect of changes in foreign exchange rates | 3,257 | (1,883) | |||||
Ending balance | 40,876 | 34,141 | 33,364 | ||||
Accumulated depreciation, amortization and impairment [member] | Trademarks with finite useful life [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 7,807 | 7,686 | |||||
Amortization for the year | 591 | 578 | |||||
Impairment loss | 0 | 32 | |||||
De-recognitions | [3] | (32) | |||||
Effect of changes in foreign exchange rates | 885 | (457) | |||||
Ending balance | 9,283 | 7,807 | 7,686 | ||||
Accumulated depreciation, amortization and impairment [member] | Product related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 23,459 | 22,599 | |||||
Amortization for the year | 2,145 | 2,304 | |||||
Impairment loss | 53 | 40 | |||||
De-recognitions | [3] | (269) | |||||
Effect of changes in foreign exchange rates | 2,204 | (1,215) | |||||
Ending balance | 27,861 | 23,459 | 22,599 | ||||
Accumulated depreciation, amortization and impairment [member] | Technology related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 1,575 | 1,253 | |||||
Amortization for the year | 403 | 443 | |||||
Impairment loss | 0 | 38 | |||||
De-recognitions | [3] | 0 | |||||
Effect of changes in foreign exchange rates | 167 | (159) | |||||
Ending balance | 2,145 | 1,575 | 1,253 | ||||
Accumulated depreciation, amortization and impairment [member] | Customer related intangibles [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 357 | 1,085 | |||||
Amortization for the year | 0 | 15 | |||||
Impairment loss | 0 | 0 | |||||
De-recognitions | [3] | (706) | |||||
Effect of changes in foreign exchange rates | 0 | (37) | |||||
Ending balance | 357 | 357 | 1,085 | ||||
Accumulated depreciation, amortization and impairment [member] | Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 943 | 741 | |||||
Amortization for the year | 286 | 341 | |||||
Impairment loss | 0 | 0 | |||||
De-recognitions | [3] | (124) | |||||
Effect of changes in foreign exchange rates | 1 | (15) | |||||
Ending balance | ₨ 1,230 | ₨ 943 | ₨ 741 | ||||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | ||||||
[2] | Additions during the year ended March 31, 2017 primarily consists of: (a) Rs.23,366, representing the consideration paid to Teva Pharmaceutical Industries Limited (“Teva”) and an affiliate of Allergan Plc (“Allergan”) to acquire eight Abbreviated New Drug Applications (“ANDAs”) in the United States (refer to Note 33 of these consolidated financial statements for further details); and (b) Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). | ||||||
[3] | During the year ended March 31, 2017, the Company derecognized certain intangible assets which were fully amortized and from which no future economic benefits were expected, either from use or from their disposal. Accordingly, an amount of Rs.1,131 was reduced both from gross carrying amount and accumulated amortization. |
Other intangible assets (Det107
Other intangible assets (Details 1) ₨ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||
Disclosure of detailed information about intangible assets [line items] | ||||||
Beginning balance | ₨ 44,925 | ₨ 20,796 | ||||
Less: Impairments during the year | (53) | (110) | ₨ (194) | |||
Ending balance | 44,665 | $ 686 | 44,925 | 20,796 | ||
In-process research and development assets [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Beginning balance | 27,150 | 1,096 | ||||
Add: Additions during the year | [2] | 523 | 26,858 | |||
Less: Capitalizations during the year | [3] | (778) | 0 | |||
Less: Impairments during the year | [4] | 0 | (38) | |||
Effect of changes in exchange rates | 132 | (766) | ||||
Ending balance | ₨ 27,027 | ₨ 27,150 | ₨ 1,096 | |||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | |||||
[2] | Additions during the year ended March 31, 2017 primarily consists of: (a) Rs.23,366, representing the consideration paid to Teva Pharmaceutical Industries Limited (“Teva”) and an affiliate of Allergan Plc (“Allergan”) to acquire eight Abbreviated New Drug Applications (“ANDAs”) in the United States (refer to Note 33 of these consolidated financial statements for further details); and (b) Rs.3,159, representing the consideration for the acquisition of exclusive U.S. rights for the development and commercialization of a clinical stage oral new chemical entity from XenoPort, Inc. (refer to Note 34 of these consolidated financial statements for further details). | |||||
[3] | ezitimibe and simvastatin tablets, representing one of the eight ANDAs acquired from Teva, was launched during the three months ended June 30, 2017. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. | |||||
[4] | Refer to “Impairment losses recorded for the year ended March 31, 2017” in this Note 8 for further details. |
Other intangible assets (Det108
Other intangible assets (Details 2) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | |||
Amortization, intangible assets other than goodwill | ₨ 3,425 | ₨ 3,681 | ₨ 3,470 |
Selling, general and administrative expenses [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization, intangible assets other than goodwill | 3,029 | 3,198 | 3,262 |
Cost of revenues [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization, intangible assets other than goodwill | 264 | 300 | 110 |
Research and development expenses [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization, intangible assets other than goodwill | ₨ 132 | ₨ 183 | ₨ 98 |
Other intangible assets (Det109
Other intangible assets (Details 3) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 53 | ₨ 110 | ₨ 194 |
Selling, general and administrative expenses [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 53 | 72 | 61 |
Research and development expenses [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 38 | 133 |
Cost of revenues [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 0 | ₨ 0 | ₨ 0 |
Other intangible assets (Det110
Other intangible assets (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 53 | ₨ 110 | ₨ 194 |
Disposals, intangible assets other than goodwill | 1,131 | ||
Teva Pharmaceutical Industries Limited [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Consideration transferred for acquisition of asset | 23,366 | ||
XenoPort, Inc. [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Consideration transferred for acquisition of asset | 3,159 | ||
Other Intangible Assets [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Interest costs capitalised | ₨ 458 | ₨ 258 | |
Other Intangible Assets [Member] | Bottom of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalisation rate of borrowing costs eligible for capitalisation | 0.81% | 0.91% | |
Other Intangible Assets [Member] | Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalisation rate of borrowing costs eligible for capitalisation | 2.76% | 2.14% | |
Other Intangible Assets [Member] | Teva Pharmaceutical Industries Limited [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Consideration transferred for acquisition of asset | ₨ 23,366 | ||
Other Intangible Assets [Member] | XenoPort, Inc. [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Consideration transferred for acquisition of asset | 3,159 | ||
Research and development expenses [Member] | Product One [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 27 | 100 | |
Research and development expenses [Member] | Product Two [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 11 | 33 | |
Selling, general and administrative expenses [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 72 | ₨ 61 | |
Selling, general and administrative expenses [Member] | Product One [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 20 | ||
Selling, general and administrative expenses [Member] | Product Two [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | ₨ 33 |
Investment in equity account111
Investment in equity accounted investees (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2015INR (₨) | ||||||
Investments accounted for using equity method [Line Items] | ||||||||||||
Total current assets | ₨ 109,645 | ₨ 100,375 | $ 1,684 | |||||||||
Total non-current assets | 115,959 | 119,446 | 1,781 | |||||||||
Total assets | 225,604 | 219,821 | 3,465 | |||||||||
Equity | 126,460 | 124,044 | ₨ 128,336 | 1,942 | ₨ 111,302 | |||||||
Total current liabilities | 69,692 | 85,000 | 1,070 | |||||||||
Total equity and liabilities | 225,604 | 219,821 | 3,465 | |||||||||
Revenues | 142,028 | [2],[3] | $ 2,181 | [1] | 140,809 | [2],[3] | 154,708 | [2],[3] | ||||
Profit for the year | 9,806 | $ 151 | [1] | 12,039 | ₨ 20,013 | |||||||
Carrying value of the Company's investment | ₨ 2,104 | ₨ 1,603 | $ 32 | |||||||||
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | ||||||||||||
Investments accounted for using equity method [Line Items] | ||||||||||||
Ownership | 51.30% | 51.30% | 51.30% | 51.30% | ||||||||
Total current assets | ₨ 4,933 | ₨ 3,385 | ₨ 2,876 | |||||||||
Total non-current assets | 347 | 296 | 377 | |||||||||
Total assets | 5,280 | 3,681 | 3,253 | |||||||||
Equity | 3,600 | 2,603 | 2,129 | |||||||||
Total current liabilities | 1,680 | 1,078 | 1,124 | |||||||||
Total equity and liabilities | 5,280 | 3,681 | 3,253 | |||||||||
Revenues | 5,482 | 4,980 | 4,246 | |||||||||
Expenses | 4,792 | 4,295 | 3,800 | |||||||||
Profit for the year | 690 | 685 | 446 | |||||||||
Company's share of profits for the year | 354 | 351 | 229 | |||||||||
Carrying value of the Company's investment | [4] | 2,029 | 1,519 | 1,309 | ||||||||
Translation adjustment arising out of translation of foreign currency balances | ₨ 255 | ₨ 97 | ₨ 239 | |||||||||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | |||||||||||
[2] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | |||||||||||
[3] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | |||||||||||
[4] | Includes Rs.181 representing the goodwill on acquisition of investment. |
Investment in equity account112
Investment in equity accounted investees (Details Textual) - Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Investments accounted for using equity method [Line Items] | ||||
Proportion of ownership interest in joint venture | 51.30% | 51.30% | 51.30% | |
Goodwill arising on investment in an associate | ₨ 181 | [1] | ₨ 181 | ₨ 181 |
[1] | Includes Rs.181 representing the goodwill on acquisition of investment. |
Other investments (Details)
Other investments (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | |
Other Investments [Line Items] | |||||
Current portion | ₨ 18,330 | $ 282 | ₨ 14,270 | ||
Non-current portion | 2,549 | $ 39 | 5,237 | ||
Cost [member] | |||||
Other Investments [Line Items] | |||||
Investments | 22,312 | 15,783 | |||
Current portion | 18,255 | 12,853 | |||
Non-current portion | 4,057 | 2,930 | |||
Cost [member] | Investment funds [member] | |||||
Other Investments [Line Items] | |||||
Investments | 14,703 | 9,677 | |||
Current portion | 14,703 | 9,464 | |||
Non-current portion | 213 | ||||
Cost [member] | Term deposits with banks [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 41 | 3,403 | |||
Current portion | 41 | 3,389 | |||
Non-current portion | 14 | ||||
Cost [member] | Investment in commercial paper [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 232 | ||||
Current portion | 232 | ||||
Cost [member] | Debt Securities [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 4,633 | ||||
Current portion | 3,279 | ||||
Non-current portion | 1,354 | ||||
Cost [member] | Other equity securities [member] | |||||
Other Investments [Line Items] | |||||
Investments | [2] | 2,703 | 2,703 | ||
Non-current portion | [2] | 2,703 | 2,703 | ||
Gain recognized directly in equity [member] | |||||
Other Investments [Line Items] | |||||
Investments | (1,433) | 3,724 | |||
Current portion | 75 | 1,417 | |||
Non-current portion | (1,508) | 2,307 | |||
Gain recognized directly in equity [member] | Investment funds [member] | |||||
Other Investments [Line Items] | |||||
Investments | 75 | 1,464 | |||
Current portion | 75 | 1,417 | |||
Non-current portion | 47 | ||||
Gain recognized directly in equity [member] | Term deposits with banks [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 0 | 0 | |||
Current portion | 0 | 0 | |||
Non-current portion | 0 | ||||
Gain recognized directly in equity [member] | Investment in commercial paper [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 0 | ||||
Current portion | 0 | ||||
Gain recognized directly in equity [member] | Debt Securities [Member] | |||||
Other Investments [Line Items] | |||||
Investments | 0 | ||||
Current portion | 0 | ||||
Non-current portion | 0 | ||||
Gain recognized directly in equity [member] | Other equity securities [member] | |||||
Other Investments [Line Items] | |||||
Investments | [2] | (1,508) | 2,260 | ||
Non-current portion | [2] | (1,508) | 2,260 | ||
Fair value / amortized cost [Member] | |||||
Other Investments [Line Items] | |||||
Investments | [3] | 20,879 | 19,507 | ||
Current portion | [3] | 18,330 | 14,270 | ||
Non-current portion | [3] | 2,549 | 5,237 | ||
Fair value / amortized cost [Member] | Investment funds [member] | |||||
Other Investments [Line Items] | |||||
Investments | [3] | 14,778 | 11,141 | ||
Current portion | [3] | 14,778 | 10,881 | ||
Non-current portion | [3] | 260 | |||
Fair value / amortized cost [Member] | Term deposits with banks [Member] | |||||
Other Investments [Line Items] | |||||
Investments | [3] | 41 | 3,403 | ||
Current portion | [3] | 41 | 3,389 | ||
Non-current portion | [3] | 14 | |||
Fair value / amortized cost [Member] | Investment in commercial paper [Member] | |||||
Other Investments [Line Items] | |||||
Investments | [3] | 232 | |||
Current portion | [3] | 232 | |||
Fair value / amortized cost [Member] | Debt Securities [Member] | |||||
Other Investments [Line Items] | |||||
Investments | [3] | 4,633 | |||
Current portion | [3] | 3,279 | |||
Non-current portion | [3] | 1,354 | |||
Fair value / amortized cost [Member] | Other equity securities [member] | |||||
Other Investments [Line Items] | |||||
Investments | [2],[3] | 1,195 | 4,963 | ||
Non-current portion | [2],[3] | ₨ 1,195 | ₨ 4,963 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | ||||
[2] | Primarily represents the shares of Curis, Inc. Refer to Note 31 of these consolidated financial statements for further details. | ||||
[3] | Interest accrued but not due on bonds, commercial papers and term deposits with banks is included in other current assets. |
Inventories (Details)
Inventories (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Classes of current inventories [abstract] | ||||
Raw materials | ₨ 7,294 | ₨ 7,226 | ||
Packing materials, stores and spares | 2,394 | 2,315 | ||
Work-in-progress | 7,175 | 6,614 | ||
Finished goods | 12,226 | 12,374 | ||
Total Inventories | ₨ 29,089 | $ 447 | ₨ 28,529 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Inventories (Details 1)
Inventories (Details 1) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Classes of current inventories [abstract] | ||||
Raw materials, consumables and changes in finished goods and work in progress | ₨ 32,410 | ₨ 27,165 | ₨ 30,305 | |
Inventory write-down | ₨ 2,946 | $ 45 | ₨ 3,085 | ₨ 2,746 |
Trade and other receivables (De
Trade and other receivables (Details) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Trade And Other Receivables [Line Items] | ||||
Less: Allowance for doubtful trade and other receivables | ₨ (952) | ₨ (861) | ₨ (789) | |
Current assets [Member] | ||||
Trade And Other Receivables [Line Items] | ||||
Trade and other receivables, gross | 41,569 | 38,926 | ||
Less: Allowance for doubtful trade and other receivables | (952) | (861) | ||
Trade and other receivables, net | 40,617 | 38,065 | ||
Non-current Assets [Member] | ||||
Trade And Other Receivables [Line Items] | ||||
Trade and other receivables, gross | [1] | 169 | 206 | |
Less: Allowance for doubtful trade and other receivables | 0 | 0 | ||
Trade and other receivables, net | ₨ 169 | ₨ 206 | ||
[1] | Represents amounts receivable pursuant to an out-licensing arrangement with a customer. As these amounts are not expected to be realized within twelve months from the end of the reporting date, they are disclosed as non-current. |
Trade and other receivables 117
Trade and other receivables (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at the beginning of the year | ₨ 861 | ₨ 789 |
Provision for doubtful trade and other receivables, net | 146 | 138 |
Trade and other receivables written off and exchange differences | (55) | (66) |
Balance at the end of the year | ₨ 952 | ₨ 861 |
Other assets (Details)
Other assets (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | |
Current | |||||
Other Assets | ₨ 14,301 | $ 220 | ₨ 11,970 | ||
Non-current | |||||
Other non-current assets | 1,030 | $ 16 | 983 | ||
Current | |||||
Current | |||||
Balances and receivables from statutory authorities | [2] | 6,741 | 4,151 | ||
Export benefits receivable | [3] | 2,842 | 3,521 | ||
Prepaid expenses | 761 | 712 | |||
Others | [4] | 3,957 | 3,586 | ||
Non-current | |||||
Non-current | |||||
Deposits | 664 | 651 | |||
Others | ₨ 366 | ₨ 332 | |||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | ||||
[2] | Balances and receivables from statutory authorities primarily consist of amounts receivable from the goods and service tax (“GST”), excise duty, value added tax and customs authorities of India and the unutilized GST input tax credits, excise duty, service tax and value added tax input credits (subsumed under GST input tax credits effective as of July 1, 2017) on purchases. These are regularly utilized to offset the GST liability (or, prior to July 1, 2017, liability for excise duty, value added tax, etc.) on goods produced by and services provided by the Company. Accordingly, these balances have been classified as current assets. | ||||
[3] | Export benefits receivables primarily consist of amounts receivable from various government authorities of India towards incentives on export sales made by the Company. | ||||
[4] | Others primarily includes advances given to vendors and employees, interest accrued but not due on investments, and insurance claims receivable. |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2017USD ($) | Mar. 31, 2016INR (₨) | Mar. 31, 2015INR (₨) | ||
Cash and Cash Equivalents [Abstract] | ||||||||
Cash balances | ₨ 2 | ₨ 3 | ||||||
Balances with banks | [1],[2] | 1,454 | 1,131 | |||||
Term deposits with banks (original maturities up to 3 months) | 1,182 | 2,732 | ||||||
Cash and cash equivalents in the statement of financial position | 2,638 | $ 41 | [3] | 3,866 | ||||
Bank overdrafts used for cash management purposes | 96 | 1 | [3] | 87 | ||||
Cash and cash equivalents in the statement of cash flow | ₨ 2,542 | $ 39 | ₨ 3,779 | $ 58 | ₨ 4,921 | ₨ 5,394 | ||
[1] | Balances with banks as of March 31, 2017 included restricted cash of Rs.177, which consisted of: ⋅ Rs.64, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; ⋅ Rs.38, representing cash and cash equivalents of the Company’s subsidiary in Venezuela, which are subject to foreign exchange controls (refer to Note 38 of these consolidated financial statements for further details); ⋅ Rs.49, representing the portion of the purchase consideration deposited in an escrow account, pursuant to an acquisition of an intangible asset; and ⋅ Rs.26, representing other restricted cash amounts. | |||||||
[2] | Balances with banks as of March 31, 2018 included restricted cash of Rs.86, which consisted of: ⋅ Rs.72, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; and ⋅ Rs.14, representing other restricted cash amounts. | |||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Cash and cash equivalents (D120
Cash and cash equivalents (Details Textual) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Cash And Cash Equivalents [Line Items] | |||
Restricted unclaimed dividend and Debenture Interest | ₨ 72 | ₨ 64 | |
Other Restricted Cash | 14 | 26 | |
Total restricted cash and cash equivalents | ₨ 86 | [1],[2] | 177 |
Restricted Amount In Escrow Account | 49 | ||
Venezuela [Member] | |||
Restricted Cash And Cash Equivalents [Line Items] | |||
Total restricted cash and cash equivalents | ₨ 38 | ||
[1] | Balances with banks as of March 31, 2017 included restricted cash of Rs.177, which consisted of: ⋅ Rs.64, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; ⋅ Rs.38, representing cash and cash equivalents of the Company’s subsidiary in Venezuela, which are subject to foreign exchange controls (refer to Note 38 of these consolidated financial statements for further details); ⋅ Rs.49, representing the portion of the purchase consideration deposited in an escrow account, pursuant to an acquisition of an intangible asset; and ⋅ Rs.26, representing other restricted cash amounts. | ||
[2] | Balances with banks as of March 31, 2018 included restricted cash of Rs.86, which consisted of: ⋅ Rs.72, representing amounts in the Company’s unclaimed dividend and debenture interest accounts; and ⋅ Rs.14, representing other restricted cash amounts. |
Equity (Details)
Equity (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017INR (₨)shares | Mar. 31, 2016INR (₨)shares | ||
Disclosure of classes of share capital [line items] | |||||
Authorized share capital | 240,000,000 | 240,000,000 | |||
Amount of shares authorised | ₨ | ₨ 1,200 | ₨ 1,200 | |||
Fully Paid Up Share Capital | |||||
As at April 1 | ₨ | 829 | 853 | |||
Add: Shares issued on exercise of stock options | ₨ | 1 | 1 | ₨ 1 | ||
Less: Buyback of equity shares | ₨ | 0 | (25) | |||
As at March 31 | ₨ 830 | $ 13 | [1] | ₨ 829 | ₨ 853 |
Opening number of equity shares/share capital | 165,741,713 | 165,741,713 | 170,607,653 | ||
Add: Issue of equity shares on exercise of options | 169,194 | 169,194 | 211,564 | ||
Less: Buyback of equity shares | 0 | 0 | (5,077,504) | ||
Closing number of equity shares/share capital | 165,910,907 | 165,910,907 | 165,741,713 | 170,607,653 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Equity (Details 1)
Equity (Details 1) - INR (₨) ₨ / shares in Units, ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of classes of share capital [line items] | |||
Dividend per share | ₨ 20 | ₨ 20 | ₨ 20 |
Dividend distribution tax on the dividend paid | ₨ 675 | ₨ 78 | ₨ 695 |
Dividend paid during the year | ₨ 3,317 | ₨ 3,312 | ₨ 3,411 |
Equity (Details Textual)
Equity (Details Textual) - INR (₨) ₨ / shares in Units, ₨ in Millions | 1 Months Ended | 12 Months Ended | |||
May 22, 2018 | Feb. 17, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Details of Equity [Line Items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | ₨ 20 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | ₨ 3,318 | ||||
Maximum Amount Of Approved For Buyback | ₨ 15,694 | ||||
Maximum amount per equity share approved for buyback | ₨ 3,500 | ||||
Purchase of treasury shares | [1] | ₨ 15,694 | |||
Income tax consequences of dividends proposed or declared before financial statements authorised for issue not recognised as liability | ₨ 682 | ||||
Purchase of treasury shares in numbers | 0 | 5,077,504 | |||
Increase decrease through other distributions to owners | ₨ 0 | ₨ 25 | |||
[1] | Refer to Note 15 of these consolidated financial statements. |
Earnings per share (Details)
Earnings per share (Details) | 12 Months Ended | ||||
Mar. 31, 2018₨ / sharesshares | Mar. 31, 2018$ / sharesshares | Mar. 31, 2017₨ / sharesshares | Mar. 31, 2016₨ / sharesshares | ||
Basic earnings per share [abstract] | |||||
Issued equity shares as at April 1 | 165,741,713 | 165,741,713 | 170,607,653 | 170,381,174 | |
Effect of shares issued on exercise of stock options | 103,695 | 103,695 | 126,277 | 166,469 | |
Effect of buyback of equity shares | 0 | 0 | (4,084,987) | 0 | |
Weighted average number of equity shares at March 31 | 165,845,408 | 165,845,408 | 166,648,943 | 170,547,643 | |
Earnings per share - Basic | (per share) | ₨ 59.13 | $ 0.91 | [1] | ₨ 72.24 | ₨ 117.34 |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Earnings per share (Details1)
Earnings per share (Details1) | 12 Months Ended | ||||
Mar. 31, 2018₨ / sharesshares | Mar. 31, 2018$ / sharesshares | Mar. 31, 2017₨ / sharesshares | Mar. 31, 2016₨ / sharesshares | ||
Diluted earnings per share [abstract] | |||||
Weighted average number of equity shares (Basic) | 165,845,408 | 165,845,408 | 166,648,943 | 170,547,643 | |
Dilutive effect of stock options outstanding | 340,144 | 340,144 | 348,733 | 525,137 | |
Weighted average number of equity shares (Diluted) | 166,185,552 | 166,185,552 | 166,997,675 | 171,072,780 | |
Earnings per share - Diluted | (per share) | ₨ 59 | $ 0.91 | [1] | ₨ 72.09 | ₨ 116.98 |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Earnings per share (Details Tex
Earnings per share (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Profit (loss), attributable to ordinary equity holders of parent entity | ₨ 9,806 | ₨ 12,039 | ₨ 20,013 |
Loans and borrowings (Details)
Loans and borrowings (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Disclosure of Short Term Borrowings [Line Items] | ||||
Current borrowings | ₨ 25,466 | $ 391 | ₨ 43,539 | |
Packing credit borrowings [Member] | ||||
Disclosure of Short Term Borrowings [Line Items] | ||||
Current borrowings | 21,008 | 18,699 | ||
Other foreign currency borrowings [Member] | ||||
Disclosure of Short Term Borrowings [Line Items] | ||||
Current borrowings | ₨ 4,458 | ₨ 24,840 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Loans and borrowings (Details 1
Loans and borrowings (Details 1) | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Packing Credit Borrowings USD [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | USD | [1] | USD | |
Borrowings, interest rate basis | 1 Month LIBOR + (30) to 30 bps | 1 Month LIBOR + (30) to 1 bps | ||
Packing Credit Borrowings RUB [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | RUB | [1] | RUB | |
Borrowings, interest rate basis | 6.75 | 9.95 | ||
Other Foreign Currency Borrowings USD [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | USD | [1] | USD | |
Borrowings, interest rate basis | 1 Month/3 Months LIBOR + 65 to 85 bps | 1 Month LIBOR + 40 to 60 bps | ||
Packing credit borrowings USD One [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | USD | |||
Borrowings, interest rate basis | 0.01 | |||
Packing credit borrowings INR [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | INR | |||
Borrowings, interest rate basis | T-Bill + 30bps | |||
Packing credit borrowings INR One [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | INR | [1] | INR | |
Borrowings, interest rate basis | 6 | 6.92% to 6.95% | ||
Other foreign currency borrowings RUB [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | RUB | [1] | RUB | |
Borrowings, interest rate basis | 8.20 | 10.48 | ||
Other Foreign Currency Borrowings UAH [Member] | ||||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | ||||
Borrowings, original currency | [1] | UAH | ||
Borrowings, interest rate basis | 18 | |||
[1] | “INR” means Indian rupees, “RUB” means Russian roubles, and “UAH” means Ukrainian hryvnia. |
Loans and borrowings (Details 2
Loans and borrowings (Details 2) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Sep. 30, 2016USD ($) |
Disclosure of Borrowings [Line Items] | |||||
Borrowings | ₨ 25,152 | ₨ 5,559 | |||
Current portion | |||||
Current portion of non-current borrowings | 63 | $ 1 | 110 | ||
Non-current portion | |||||
Non-current portion of non-current borrowings | 25,089 | $ 385 | 5,449 | ||
Finance Lease [Member] | |||||
Disclosure of Borrowings [Line Items] | |||||
Borrowings | 693 | 707 | |||
Current portion | |||||
Current portion of non-current borrowings | 63 | 110 | |||
Non-current portion | |||||
Non-current portion of non-current borrowings | 630 | 597 | |||
Parent [Member] | |||||
Disclosure of Borrowings [Line Items] | |||||
Borrowings | 4,880 | 4,852 | |||
Non-current portion | |||||
Non-current portion of non-current borrowings | 4,880 | 4,852 | |||
Swiss Subsidiary [Member] | |||||
Disclosure of Borrowings [Line Items] | |||||
Borrowings | 16,185 | 0 | $ 350 | ||
Non-current portion | |||||
Non-current portion of non-current borrowings | 16,185 | 0 | |||
German subsidiary [Member] | |||||
Disclosure of Borrowings [Line Items] | |||||
Borrowings | 3,394 | 0 | |||
Non-current portion | |||||
Non-current portion of non-current borrowings | ₨ 3,394 | ₨ 0 | |||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Loans and borrowings (Details 3
Loans and borrowings (Details 3) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign currency one [Member] | USD [Member] | ||
Disclosure of Interest Rate Profile of Long Term Borrowings [Line Items] | ||
Borrowings, interest rate basis | 1 Month LIBOR + 45 to 82.7 bps | 1 Month LIBOR + 82.7 bps |
Foreign Currency Two [Member] | EUR [Member] | ||
Disclosure of Interest Rate Profile of Long Term Borrowings [Line Items] | ||
Borrowings, interest rate basis | 0.81 | - |
Loans and borrowings (Details 4
Loans and borrowings (Details 4) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | ₨ 24,576 | ₨ 4,852 |
Obligations under finance leases | 693 | 707 |
Borrowings | 25,152 | 5,559 |
Thereafter | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 0 | 0 |
Obligations under finance leases | 373 | 380 |
Borrowings | 373 | 380 |
2,018 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 0 | |
Obligations under finance leases | 110 | |
Borrowings | 110 | |
2,019 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 0 | 0 |
Obligations under finance leases | 63 | 56 |
Borrowings | 63 | 56 |
2,020 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 4,064 | 1,610 |
Obligations under finance leases | 59 | 51 |
Borrowings | 4,123 | 1,661 |
2,021 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 6,346 | 3,242 |
Obligations under finance leases | 61 | 53 |
Borrowings | 6,407 | 3,295 |
2,022 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 1,131 | 0 |
Obligations under finance leases | 66 | 57 |
Borrowings | 1,197 | ₨ 57 |
2,023 | ||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | ||
Foreign currency loans | 13,035 | |
Obligations under finance leases | 71 | |
Borrowings | ₨ 13,106 |
Loans and borrowings (Details 5
Loans and borrowings (Details 5) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of Future minimum lease payments under finance leases [Line Items] | ||
Present value of minimum lease payments | ₨ 693 | ₨ 707 |
Interest | 282 | 310 |
Future minimum lease payments | 975 | 1,017 |
Not later than one year | ||
Disclosure of Future minimum lease payments under finance leases [Line Items] | ||
Present value of minimum lease payments | 63 | 110 |
Interest | 57 | 77 |
Future minimum lease payments | 120 | 187 |
Between one and five years | ||
Disclosure of Future minimum lease payments under finance leases [Line Items] | ||
Present value of minimum lease payments | 257 | 217 |
Interest | 159 | 149 |
Future minimum lease payments | 416 | 366 |
More than five years | ||
Disclosure of Future minimum lease payments under finance leases [Line Items] | ||
Present value of minimum lease payments | 373 | 380 |
Interest | 66 | 84 |
Future minimum lease payments | ₨ 439 | ₨ 464 |
Loans and borrowings (Details 6
Loans and borrowings (Details 6) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018INR (₨) | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Opening balance | ₨ 49,098 | |
Borrowings made during the year | 66,629 | |
Borrowings repaid during the year | (65,747) | |
Currency translation adjustments | 699 | |
Others | (61) | |
Closing balance | 50,618 | |
Long-term borrowings [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Opening balance | 5,559 | [1] |
Borrowings made during the year | 19,065 | [1] |
Borrowings repaid during the year | (158) | [1] |
Currency translation adjustments | 747 | [1] |
Others | (61) | [1] |
Closing balance | 25,152 | [1] |
Short-term borrowings [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Opening balance | 43,539 | |
Borrowings made during the year | 47,564 | |
Borrowings repaid during the year | (65,589) | |
Currency translation adjustments | (48) | |
Others | 0 | |
Closing balance | ₨ 25,466 | |
[1] | Including current portion. |
Loans and borrowings (Details T
Loans and borrowings (Details Textual) € in Millions, ₨ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018INR (₨) | Nov. 28, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2017INR (₨) | |
Disclosure of detailed information about borrowings [line items] | ||||||||
Proceeds from current borrowings | $ 150 | |||||||
Repayments of non-current borrowings | $ 75 | |||||||
Transaction Costs Of Long Term Obligations | ₨ | ₨ 117 | |||||||
Refinancing Of Current Borrowings | $ 150 | |||||||
Undrawn borrowing facilities | ₨ | ₨ 24,046 | ₨ 21,156 | ||||||
Swiss Subsidiary [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Proceeds from non-current borrowings | $ 250 | |||||||
Proceeds from current borrowings | $ 350 | |||||||
Repayments of current borrowings | 350 | |||||||
Loan Refinance | $ 350 | |||||||
Swiss Subsidiary [Member] | Bottom of range [member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate basis | 0.45% | |||||||
Swiss Subsidiary [Member] | Top of range [member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate basis | 0.60% | |||||||
German subsidiary [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Proceeds from non-current borrowings | € | € 42 |
Employee benefits (Details)
Employee benefits (Details) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | ₨ 252 | ₨ 221 | ₨ 177 |
Interest on net defined benefit liability/(asset) | 6 | 14 | 2 |
Gratuity cost recognized in income statement | ₨ 258 | ₨ 235 | ₨ 179 |
Employee benefits (Details 1)
Employee benefits (Details 1) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of funded obligations | ₨ 2,007 | ₨ 1,840 | ₨ 1,540 |
Fair value of plan assets | (1,958) | (1,687) | |
Net defined benefit liability recognized | ₨ 49 | ₨ 153 |
Employee benefits (Details 2)
Employee benefits (Details 2) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligations at the beginning of the year | ₨ 1,840 | ₨ 1,540 | |
Current service cost | 252 | 221 | ₨ 177 |
Interest on defined obligations | 125 | 114 | |
Re-measurements due to: | |||
Actuarial loss/(gain) due to change in financial assumptions | (121) | 30 | |
Actuarial loss/(gain) due to demographic assumptions | 11 | (12) | |
Actuarial loss/(gain) due to experience changes | 62 | 62 | |
Benefits paid | (162) | (115) | |
Defined benefit obligations at the end of the year | ₨ 2,007 | ₨ 1,840 | ₨ 1,540 |
Employee benefits (Details 3)
Employee benefits (Details 3) - Gratuity Benefits Of Parent [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets at the beginning of the year | ₨ 1,687 | ₨ 1,303 |
Employer contributions | 313 | 348 |
Interest on plan assets | 121 | 99 |
Re-measurements due to: | ||
Return on plan assets excluding interest on plan assets | (1) | 52 |
Benefits paid | (162) | (115) |
Plan assets at the end of the year | ₨ 1,958 | ₨ 1,687 |
Employee benefits (Details 4)
Employee benefits (Details 4) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation without effect of projected salary growth | ₨ 1,167 | ||
Add: Effect of salary growth | 840 | ||
Defined benefit obligation with projected salary growth | 2,007 | ₨ 1,840 | ₨ 1,540 |
50 basis points increase | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 1,936 | ||
50 basis points increase | Salary growth | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 2,081 | ||
50 basis points decrease | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 2,082 | ||
50 basis points decrease | Salary growth | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | ₨ 1,937 |
Employee benefits (Details 5)
Employee benefits (Details 5) - Employee benefit obligations [Member] - Parent Company Gratuity plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Discount rate | 7.75% | 7.20% | 7.80% |
First year [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 7.00% | 7.00% | |
After first year [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 9.00% | 9.00% | |
First Two years [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 10.00% | ||
Above Two Years [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 9.00% |
Employee benefits (Details 6)
Employee benefits (Details 6) - Employee gratuity cost [Member] - Parent Company Gratuity plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Discount rate | 7.20% | 7.80% | 8.00% |
First years [Member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 7.00% | ||
Later than one year [member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 9.00% | ||
First Two years [Member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Above Two Year [Member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 9.00% | 9.00% |
Employee benefits (Details 7)
Employee benefits (Details 7) - Parent Company Gratuity plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 |
Funds managed by Insurers [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of Weighted average asset allocation | 99.00% | 99.00% |
Others [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of Weighted average asset allocation | 1.00% | 1.00% |
Employee benefits (Details 8)
Employee benefits (Details 8) - Parent Company Gratuity plan [Member] ₨ in Millions | 12 Months Ended |
Mar. 31, 2018INR (₨) | |
During the year ended March 31, 2019 (estimated) | |
Disclosure Of Expected Contribution To Post Employment Benefit Plans [Abstract] | |
Expected Contribution | ₨ 49 |
March 31, 2019 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 244 |
March 31, 2020 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 219 |
March 31, 2021 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 212 |
March 31, 2022 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 208 |
March 31, 2023 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 208 |
Thereafter | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | ₨ 2,951 |
Employee benefits (Details 9)
Employee benefits (Details 9) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | ₨ 12 | ₨ 13 | ₨ 14 |
Interest on net defined benefit liability/(asset) | 13 | 12 | 11 |
Total cost recognized in income statement | ₨ 25 | ₨ 25 | ₨ 25 |
Employee benefits (Details 10)
Employee benefits (Details 10) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of funded obligations | ₨ 243 | ₨ 218 | ₨ 249 |
Fair value of plan assets | (66) | (60) | ₨ (61) |
Net defined benefit liability recognized | ₨ 177 | ₨ 158 |
Employee benefits (Details 11)
Employee benefits (Details 11) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligations at the beginning of the year | ₨ 218 | ₨ 249 | |
Current service cost | 12 | 13 | ₨ 14 |
Interest on defined obligations | 19 | 17 | |
Re-measurements due to: | |||
Actuarial loss/(gain) due to change in financial assumptions | (6) | (24) | |
Actuarial loss/(gain) due to experience changes | 0 | 7 | |
Benefits paid | (8) | (19) | |
Foreign exchange differences | 8 | (25) | |
Defined benefit obligations at the end of the year | ₨ 243 | ₨ 218 | ₨ 249 |
Employee benefits (Details 12)
Employee benefits (Details 12) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets at the beginning of the year | ₨ 60 | ₨ 61 |
Employer contributions | 8 | 19 |
Interest on plan assets | 7 | 6 |
Re-measurements due to: | ||
Return on plan assets excluding interest on plan assets | (3) | 0 |
Benefits paid | (8) | (19) |
Foreign exchange differences | 2 | (7) |
Plan assets at the end of the year | ₨ 66 | ₨ 60 |
Employee benefits (Details 13)
Employee benefits (Details 13) - Industrias Quimicas Falcon de Mexico Pension plan [Member] ₨ in Millions | Mar. 31, 2018INR (₨) |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation at present value without effect of salary growth | ₨ 160 |
Plus effect of salary growth | 83 |
Defined benefit obligation with projected salary growth | 243 |
50 basis points increase | Discount rate [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 232 |
50 basis points increase | Salary growth [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 255 |
50 basis points decrease | Discount rate [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 254 |
50 basis points decrease | Salary growth [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | ₨ 231 |
Employee benefits (Details 14)
Employee benefits (Details 14) - Employee benefit obligations [Member] - Industrias Quimicas Falcon de Mexico Pension plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Discount rate | 9.00% | 8.75% | 7.75% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Employee benefits (Details 15)
Employee benefits (Details 15) - Employee gratuity cost [Member] - Industrias Quimicas Falcon de Mexico Pension plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Actuarial assumption of discount rates | 8.75% | 7.75% | 7.50% |
Actuarial assumption of expected rates of salary increases | 4.50% | 4.50% | 4.50% |
Employee benefits (Details 16)
Employee benefits (Details 16) - Industrias Quimicas Falcon de Mexico Pension plan [Member] | Mar. 31, 2018 | Mar. 31, 2017 |
Corporate bonds [member] | ||
Weighted-average asset allocation [Line Items] | ||
Percentage of Weighted average asset allocation | 51.00% | 51.00% |
Others [Member] | ||
Weighted-average asset allocation [Line Items] | ||
Percentage of Weighted average asset allocation | 49.00% | 49.00% |
Employee benefits (Details 17)
Employee benefits (Details 17) - Industrias Quimica Falcon de Mexico [Member] ₨ in Millions | 12 Months Ended |
Mar. 31, 2018INR (₨) | |
During the year ended March 31, 2019 (estimated) | |
Disclosure Of Expected Contribution To Post Employment Benefit Plans [Abstract] | |
Expected Contribution | ₨ 36 |
March 31, 2019 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 3 |
March 31, 2020 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 6 |
March 31, 2021 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 8 |
March 31, 2022 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 11 |
March 31, 2023 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 13 |
Thereafter | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | ₨ 607 |
Employee benefits (Details Text
Employee benefits (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Employee benefits expense | ₨ 32,149 | ₨ 31,069 | ₨ 31,174 | |
Provident Fund Benefits [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Post-employment benefit expense, defined contribution plans | ₨ 735 | 682 | 574 | |
Contributions to Plan By Plan Participants Defined Contributions Plan (Percentage) | 12.00% | |||
Superannuation Benefits [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Post-employment benefit expense, defined contribution plans | ₨ 88 | 79 | 71 | |
US 401kretirement savings Plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Social security contributions | 212 | 231 | 204 | |
UK social securiy plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Social security contributions | 135 | 134 | ₨ 156 | |
Compensated Absences [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Liabilities Defined Contribution Plan | ₨ 1,093 | 855 | ||
Long Term incentive plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Liabilities Defined Contribution Plan | ₨ 622 | |||
Industrias Quimicas Falcon de Mexico Pension plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Estimate of contributions expected to be paid to plan for next annual reporting period | ₨ 36 | |||
Parent Company Gratuity plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Estimate of contributions expected to be paid to plan for next annual reporting period | ₨ 49 |
Employee stock incentive pla154
Employee stock incentive plans (Details) - DRL 2002 Plan [Member] | 12 Months Ended |
Mar. 31, 2018shares | |
Options reserved under stock plan [Line Items] | |
Options reserved under original Plan | 2,295,478 |
Options exercised prior to stock dividend date (A) | 241,854 |
Balance of shares that can be allotted on exercise of options (B) | 2,053,624 |
Options arising from stock dividend (C) | 2,053,624 |
Options reserved after stock dividend (A+B+C) | 4,349,102 |
Category A [Member] | |
Options reserved under stock plan [Line Items] | |
Options reserved under original Plan | 300,000 |
Options exercised prior to stock dividend date (A) | 94,061 |
Balance of shares that can be allotted on exercise of options (B) | 205,939 |
Options arising from stock dividend (C) | 205,939 |
Options reserved after stock dividend (A+B+C) | 505,939 |
Category B [Member] | |
Options reserved under stock plan [Line Items] | |
Options reserved under original Plan | 1,995,478 |
Options exercised prior to stock dividend date (A) | 147,793 |
Balance of shares that can be allotted on exercise of options (B) | 1,847,685 |
Options arising from stock dividend (C) | 1,847,685 |
Options reserved after stock dividend (A+B+C) | 3,843,163 |
Employee stock incentive pla155
Employee stock incentive plans (Details 1) - Category B Par Value Options [Member] - Exercise Prices Rs 5 [Member] | 12 Months Ended | |
Mar. 31, 2018INR (₨)Number | Mar. 31, 2017INR (₨)Number | |
DRL 2002 Plan [Member] | ||
Stock options activity under this category [Line Items] | ||
Shares arising out of options, Outstanding at the beginning of the year | 330,142 | 427,348 |
Shares arising out of options, Granted during the year | 158,112 | 103,136 |
Shares arising out of options, Expired/forfeited during the year | (23,318) | (22,597) |
Shares arising out of options, Exercised during the year | (144,392) | (177,745) |
Shares arising out of options, Outstanding at the end of the year | 320,544 | 330,142 |
Shares arising out of options, Exercisable at the end of the year | 47,383 | 40,882 |
Weighted average exercise price, Outstanding at the beginning of the year | ₨ | ₨ 5 | ₨ 5 |
Weighted average exercise price, Granted during the year | ₨ | 5 | 5 |
Weighted average exercise price, Expired/forfeited during the year | ₨ | 5 | 5 |
Weighted average exercise price, Exercised during the year | ₨ | 5 | 5 |
Weighted average exercise price, Outstanding at the end of the year | ₨ | 5 | 5 |
Weighted average exercise price, Exercisable at the end of the year | ₨ | ₨ 5 | ₨ 5 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 69 | 72 |
Weighted average remaining useful life, Granted during the year | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 70 | 69 |
Weighted average remaining useful life, Exercisable at the end of the year | 49 | 38 |
DRL 2007 Plan [Member] | ||
Stock options activity under this category [Line Items] | ||
Shares arising out of options, Outstanding at the beginning of the year | 88,141 | 92,043 |
Shares arising out of options, Granted during the year | 63,304 | 52,956 |
Shares arising out of options, Expired/forfeited during the year | (19,335) | (23,039) |
Shares arising out of options, Exercised during the year | (24,802) | (33,819) |
Shares arising out of options, Outstanding at the end of the year | 107,308 | 88,141 |
Shares arising out of options, Exercisable at the end of the year | 11,034 | 6,517 |
Weighted average exercise price, Outstanding at the beginning of the year | ₨ | ₨ 5 | ₨ 5 |
Weighted average exercise price, Granted during the year | ₨ | 5 | 5 |
Weighted average exercise price, Expired/forfeited during the year | ₨ | 5 | 5 |
Weighted average exercise price, Exercised during the year | ₨ | 5 | 5 |
Weighted average exercise price, Outstanding at the end of the year | ₨ | 5 | 5 |
Weighted average exercise price, Exercisable at the end of the year | ₨ | ₨ 5 | ₨ 5 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 74 | 79 |
Weighted average remaining useful life, Granted during the year | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 73 | 74 |
Weighted average remaining useful life, Exercisable at the end of the year | 47 | 43 |
Employee stock incentive pla156
Employee stock incentive plans (Details 2) - INR (₨) ₨ in Thousands | 1 Months Ended | ||||
Jul. 10, 2017 | May 11, 2017 | Nov. 15, 2016 | Sep. 20, 2016 | Jul. 26, 2016 | |
Weighted average inputs used in the fair value of options granted [Line Items] | |||||
Expected volatility | 30.86% | 30.08% | 32.77% | 32.92% | 29.88% |
Exercise price | ₨ 5,000 | ₨ 5,000 | ₨ 5,000 | ₨ 5,000 | ₨ 5,000 |
Option life | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
Risk-free interest rate | 6.48% | 6.69% | 6.27% | 6.81% | 6.91% |
Expected dividends | 0.77% | 0.77% | 0.60% | 0.60% | 0.60% |
Grant date share price | ₨ 2,726,200 | ₨ 2,594,000 | ₨ 3,310,700 | ₨ 3,157,800 | ₨ 3,319,650 |
Employee stock incentive pla157
Employee stock incentive plans (Details 3) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Share-based payment expense | ₨ 482 | ₨ 398 | ₨ 471 | |
Cash Settled Share-based Payment [Member] | ||||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Cash settled share-based payment expense | [1] | 28 | 48 | 29 |
Equity Settled [Member] | ||||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Share-based payment expense | [2] | ₨ 454 | ₨ 350 | ₨ 442 |
[1] | Certain of the Company’s employees are eligible for share-based payment awards that are settled in cash. These awards entitle the employees to a cash payment, on the exercise date, subject to vesting upon satisfaction of certain service conditions which range from 1 to 4 years. The amount of cash payment is determined based on the price of the Company’s ADSs at the time of exercise. As of March 31, 2018, there was Rs.67 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.96 years. This scheme does not involve dealing in or subscribing to or purchasing securities of the Company, directly or indirectly. | |||
[2] | As of March 31, 2018, there was Rs.313 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.98 years. |
Employee stock incentive pla158
Employee stock incentive plans (Details Textual) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018INR (₨)shares | Mar. 31, 2017INR (₨) | |
Employee stock incentive plan [Line Items] | ||
Description of vesting requirements for share-based payment arrangement | The stock options so granted will vest only upon satisfaction of certain service period conditions which range from 1 to 4 years. | |
Equity Settled [Member] | ||
Employee stock incentive plan [Line Items] | ||
Requisite period for recognition of expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets | 1.98 years | |
Employees Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ₨ 313 | |
Cash Settled Share-based Payment [Member] | ||
Employee stock incentive plan [Line Items] | ||
Requisite period for recognition of expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets | 1.96 years | |
Employees Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ₨ 67 | |
DRL 2007 Plans [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | 2,540 | ₨ 3,266 |
Intrinsic Value of Options exercised | 57 | 110 |
Intrinsic Value of Options outstanding | 223 | |
Intrinsic Value of Options Exercisable | ₨ 23 | |
Number of instruments in share based payment arrangement available for grant | shares | 1,530,779 | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | ₨ 2,295 | 3,268 |
Categories A [Member] | DRL 2007 Plans [Member] | ||
Employee stock incentive plan [Line Items] | ||
Number of instruments in share based payment arrangement available for grant | shares | 382,695 | |
Categories B [Member] | DRL 2007 Plans [Member] | ||
Employee stock incentive plan [Line Items] | ||
Par value of underlying equity shares | 5 | |
Number of instruments in share based payment arrangement available for grant | shares | 1,148,084 | |
DRL 2002 Plan [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | ₨ 2,546 | 3,266 |
Intrinsic Value of Options exercised | 342 | 584 |
Intrinsic Value of Options outstanding | 665 | |
Intrinsic Value of Options Exercisable | ₨ 98 | |
Description of extended term of options granted for share-based payment arrangement | 10 | |
Number of instruments in share based payment arrangement available for grant | shares | 2,295,478 | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | ₨ 2,375 | ₨ 3,292 |
DRL 2002 Plan [Member] | Categories A [Member] | ||
Employee stock incentive plan [Line Items] | ||
Par value of underlying equity shares | 5 | |
Number of instruments in share based payment arrangement available for grant | shares | 300,000 | |
DRL 2002 Plan [Member] | Categories B [Member] | ||
Employee stock incentive plan [Line Items] | ||
Number of instruments in share based payment arrangement available for grant | shares | 1,995,478 |
Provisions (Details)
Provisions (Details) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018INR (₨) | ||
Disclosure of other provisions [line items] | ||
Balance as at April 1, 2017 | ₨ 4,556 | |
Provision made during the year | 3,102 | |
Provision used or reversed during the year | (3,906) | |
Effect of changes in foreign exchange rates | 33 | |
Balance as at March 31, 2018 | 3,785 | |
Current | 3,732 | |
Non-current | 53 | |
Other provisions | 3,785 | |
Allowance for sales return provision [Member] | ||
Disclosure of other provisions [line items] | ||
Balance as at April 1, 2017 | 3,784 | [1] |
Provision made during the year | 2,960 | [1] |
Provision used or reversed during the year | (3,561) | [1] |
Effect of changes in foreign exchange rates | 27 | [1] |
Balance as at March 31, 2018 | 3,210 | [1] |
Current | 3,210 | [1] |
Non-current | 0 | [1] |
Other provisions | 3,210 | [1] |
Environmental liability provisions [Member] | ||
Disclosure of other provisions [line items] | ||
Balance as at April 1, 2017 | 47 | [2] |
Provision made during the year | 0 | [2] |
Provision used or reversed during the year | 0 | [2] |
Effect of changes in foreign exchange rates | 6 | [2] |
Balance as at March 31, 2018 | 53 | [2] |
Current | 0 | [2] |
Non-current | 53 | [2] |
Other provisions | 53 | [2] |
Legal and others provision [Member] | ||
Disclosure of other provisions [line items] | ||
Balance as at April 1, 2017 | 725 | [3] |
Provision made during the year | 142 | [3] |
Provision used or reversed during the year | (345) | [3] |
Effect of changes in foreign exchange rates | 0 | [3] |
Balance as at March 31, 2018 | 522 | [3] |
Current | 522 | [3] |
Non-current | 0 | [3] |
Other provisions | ₨ 522 | [3] |
[1] | Provision for sales returns is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) for the Company’s accounting policy on sales returns. | |
[2] | As a result of the acquisition of a unit of The Dow Chemical Company in April 2008, the Company assumed a liability for contamination of the Mirfield site acquired of Rs.39 (carrying value Rs.53). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the statements of financial position. | |
[3] | Primarily consists of provision recorded towards the potential liability arising out of a litigation relating to cardiovascular and anti-diabetic formulations. Refer to Note 39 (Contingencies) of these consolidated financial statements under “Product and patent related matters - Matters relating to National Pharmaceutical Pricing Authority - Litigation relating to Cardiovascular and Anti-diabetic formulations” for further details. |
Provisions (Details Textual)
Provisions (Details Textual) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Other provisions | ₨ 3,785 | ₨ 4,556 | |
Other environment related provision [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions | [1] | 53 | ₨ 47 |
Other environment related provision [member] | Liability assumed on acquisition of a unit of The Dow chemical company [Member] | |||
Disclosure of other provisions [line items] | |||
Initial liability assumed | 39 | ||
Other provisions | ₨ 53 | ||
[1] | As a result of the acquisition of a unit of The Dow Chemical Company in April 2008, the Company assumed a liability for contamination of the Mirfield site acquired of Rs.39 (carrying value Rs.53). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the statements of financial position. |
Trade and other payables (Detai
Trade and other payables (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Trade and other current payables [abstract] | ||||
Due to related parties | ₨ 14 | ₨ 9 | ||
Others | 16,038 | 13,408 | ||
Trade and other payables | ₨ 16,052 | $ 247 | ₨ 13,417 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Other liabilities (Details)
Other liabilities (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) |
Current | ||||
Accrued expenses | ₨ 14,861 | ₨ 13,963 | ||
Employee benefits payable | 3,927 | 4,416 | ||
Statutory dues payable | 915 | 558 | ||
Deferred revenue | 622 | 509 | ||
Advance from customers | 360 | 310 | ||
Others | 1,983 | 2,089 | ||
Current liabilities | 22,668 | $ 348 | 21,845 | |
Non-current | ||||
Deferred revenue | 2,697 | 3,166 | ||
Others | 883 | 911 | ||
Non-current liabilities | ₨ 3,580 | $ 55 | ₨ 4,077 | |
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Revenue (Details)
Revenue (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [4] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |||||
Revenue [abstract] | |||||||||
Sales | ₨ 138,022 | ₨ 138,663 | ₨ 152,476 | ||||||
Service income | 1,534 | 1,536 | 1,466 | ||||||
License fees | [1] | 2,472 | 610 | 766 | |||||
Revenue | 142,028 | [2],[3] | $ 2,181 | 140,809 | [2],[3] | 154,708 | [2],[3] | ||
Excise duty included in revenues | ₨ 173 | ₨ 939 | ₨ 842 | ||||||
[1] | License fees for the year ended March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 35 of these consolidated financial statements for further details. | ||||||||
[2] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | ||||||||
[3] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | ||||||||
[4] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Other (income)_expense, net (De
Other (income)/expense, net (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [2] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||
Other operating income expense [Abstract] | ||||||
Loss on sale/disposal of property, plant and equipment and other intangibles, net | ₨ 55 | ₨ 80 | ₨ 112 | |||
Sale of spent chemical | (297) | (206) | (271) | |||
Scrap sales | (169) | (216) | (220) | |||
Miscellaneous income, net | [1] | (377) | (723) | (495) | ||
Other (income)/expense, net | ₨ (788) | $ (12) | ₨ (1,065) | ₨ (874) | ||
[1] | During the three months ended March 31, 2017, the Company entered into an agreement with Galderma Laboratories, LP to settle the ongoing litigation relating to the Company’s launch of a generic product in the United States. Pursuant to the settlement, the Company recorded an amount of Rs.417, representing the relevant consideration attributable to settlement of such litigation. | |||||
[2] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Other (income)_expense, net 165
Other (income)/expense, net (Details Textual) - INR (₨) ₨ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Miscellaneous income, net | [1] | ₨ 377 | ₨ 723 | ₨ 495 | |
Litigation settlement compensation received [Member] | |||||
Miscellaneous income, net | ₨ 417 | ||||
[1] | During the three months ended March 31, 2017, the Company entered into an agreement with Galderma Laboratories, LP to settle the ongoing litigation relating to the Company’s launch of a generic product in the United States. Pursuant to the settlement, the Company recorded an amount of Rs.417, representing the relevant consideration attributable to settlement of such litigation. |
Finance (expense)_income, ne166
Finance (expense)/income, net (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [2] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | ||
Finance expense income [Abstract] | ||||||
Interest income | ₨ 540 | ₨ 558 | ₨ 1,399 | |||
Dividend and profit on sale of other investments | [1] | 2,270 | 956 | 852 | ||
Foreign exchange gain | 87 | 73 | 0 | |||
Finance income (A) | 2,897 | $ 44 | 1,587 | 2,251 | ||
Interest expense | (788) | (634) | (826) | |||
Foreign exchange loss | [3] | (29) | (147) | (4,133) | ||
Finance expense (B) | (817) | (13) | (781) | (4,959) | ||
Finance (expense)/income, net | ₨ 2,080 | $ 32 | ₨ 806 | ₨ (2,708) | ||
[1] | Profit on sale of other investments primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s “available for sale” financial instruments. | |||||
[2] | Unaudited convenience translation into U.S.$(See Note 2(d)) | |||||
[3] | Includes the foreign exchange losses related to the Company’s Venezuela operations of Rs.37, Rs.41 and Rs.4,621 for the year ended March 31, 2018, 2017 and 2016 respectively. Refer to Note 38 of these consolidated financial statements for further details. |
Finance (expense)_income, ne167
Finance (expense)/income, net (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Finance Expense Income [Line Items] | ||||
Net foreign exchange loss | [1] | ₨ 29 | ₨ 147 | ₨ 4,133 |
Venezuela operation [Member] | ||||
Finance Expense Income [Line Items] | ||||
Net foreign exchange loss | ₨ 37 | ₨ 41 | ₨ 4,621 | |
[1] | Includes the foreign exchange losses related to the Company’s Venezuela operations of Rs.37, Rs.41 and Rs.4,621 for the year ended March 31, 2018, 2017 and 2016 respectively. Refer to Note 38 of these consolidated financial statements for further details. |
Income taxes (Details)
Income taxes (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Current taxes | |||||
Current taxes | ₨ (1,775) | ₨ (3,094) | ₨ (7,377) | ||
Deferred taxes (expense)/benefit | |||||
Deferred taxes (expense)/benefit | (2,760) | 480 | 250 | ||
Total income tax expense recognized in the income statement | (4,535) | $ (70) | (2,614) | (7,127) | |
Country of domicile [member] | |||||
Current taxes | |||||
Current taxes | (1,412) | (1,936) | (4,331) | ||
Deferred taxes (expense)/benefit | |||||
Deferred taxes (expense)/benefit | (379) | 223 | 132 | ||
Foreign countries [member] | |||||
Current taxes | |||||
Current taxes | (363) | (1,158) | (3,046) | ||
Deferred taxes (expense)/benefit | |||||
Deferred taxes (expense)/benefit | ₨ (2,381) | ₨ 257 | ₨ 118 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Income taxes (Details 1)
Income taxes (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current and deferred tax relating to items charged or credited directly to equity [abstract] | |||
Tax effect on changes in fair value of other investments | ₨ 1,370 | ₨ (499) | ₨ (88) |
Tax effect on foreign currency translation differences | (17) | 148 | (62) |
Tax effect on effective portion of change in fair value of cash flow hedges | 41 | (60) | (23) |
Tax effect on actuarial gains/losses on defined benefit obligations | (12) | 14 | 64 |
Current and deferred tax relating to items credited (charged) directly to equity | ₨ 1,382 | ₨ (397) | ₨ (109) |
Income taxes (Details 2)
Income taxes (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | ||||||
Profit before income taxes | ₨ 14,341 | $ 220 | [1] | ₨ 14,653 | ₨ 27,140 | |
Enacted tax rate in India | 34.61% | 34.61% | 34.61% | 34.61% | ||
Computed expected tax benefit/(expense) | ₨ (4,963) | ₨ (5,071) | ₨ (9,393) | |||
Effect of: | ||||||
Differences between Indian and foreign tax rates | 712 | 98 | 1,122 | |||
(Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net | (1,673) | (2,849) | (1,600) | |||
Expenses not deductible for tax purposes | (261) | (378) | (138) | |||
Reversal of earlier years’ tax provisions | 135 | 1,370 | 0 | |||
Income exempt from income taxes | 746 | 280 | 731 | |||
Foreign exchange differences | 41 | 439 | (836) | |||
Incremental deduction allowed for research and development costs | [2] | 1,324 | 3,111 | 2,782 | ||
Tax expense on distributed/undistributed earnings of subsidiary outside India | 0 | (3) | (519) | |||
Deduction for Qualified domestic production activities in the United States | 0 | 0 | 38 | |||
Effect of change in tax rate | (1,329) | 104 | (30) | |||
Investment allowance deduction | 0 | 363 | 177 | |||
Others | 733 | (79) | 539 | |||
Income tax benefit/(expense) | ₨ (4,535) | $ (70) | [1] | ₨ (2,614) | ₨ (7,127) | |
Effective tax rate | 32.00% | 32.00% | 18.00% | 26.00% | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | |||||
[2] | India’s Finance Act, 2016 incorporated an amendment that reduces the weighted deduction on eligible research and development expenditure in a phased manner from 200% to 150% commencing from April 1, 2017. |
Income taxes (Details 3)
Income taxes (Details 3) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences, net | ₨ 4,961 | ₨ 3,488 |
Operating tax loss carry forward | 4,020 | 3,027 |
Unrecognized Deferred Tax Assets And Liabilities | ₨ 8,981 | ₨ 6,515 |
Income taxes (Details 4)
Income taxes (Details 4) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | ₨ 2,898 | ₨ 4,376 | ₨ 4,230 | |
Inventory [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 1,790 | 2,385 | ||
Minimum Alternate Tax [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | [1] | 1,630 | 1,614 | |
Trade and other receivables [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 278 | 424 | ||
Operating tax loss and interest loss carry-forward [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 112 | 1,329 | ||
Other current assets and other current liabilities, net [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 1,291 | 1,715 | ||
Property, plant and equipment [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | (2,263) | (2,142) | ||
Other intangible assets [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | (569) | (370) | ||
Others [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | ₨ 629 | ₨ (579) | ||
[1] | As per Indian tax laws, companies are liable for a Minimum Alternate Tax (“MAT” tax) when current tax, as computed under the provisions of the Income Tax Act, 1961 (“Tax Act”), is determined to be below the MAT tax computed under section 115JB of the Tax Act. The excess of MAT tax over current tax is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years. |
Income taxes (Details 5)
Income taxes (Details 5) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | ₨ 4,376 | ₨ 4,230 |
Recognized in income statement | (2,865) | 507 |
Recognized in equity | 1,387 | (361) |
Balance, at the end | 2,898 | 4,376 |
Inventory [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 2,385 | 2,579 |
Recognized in income statement | (595) | (194) |
Recognized in equity | 0 | 0 |
Balance, at the end | 1,790 | 2,385 |
Minimum Alternate Tax [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 1,614 | 1,614 |
Recognized in income statement | 16 | 0 |
Recognized in equity | 0 | 0 |
Balance, at the end | 1,630 | 1,614 |
Trade and other receivables [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 424 | 412 |
Recognized in income statement | (146) | 12 |
Recognized in equity | 0 | 0 |
Balance, at the end | 278 | 424 |
Operating tax loss and interest loss carry-forward [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 1,329 | 548 |
Recognized in income statement | (1,217) | 781 |
Recognized in equity | 0 | 0 |
Balance, at the end | 112 | 1,329 |
Other current assets and other current liabilities, net [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 1,715 | 2,026 |
Recognized in income statement | (901) | (231) |
Recognized in equity | 477 | (80) |
Balance, at the end | 1,291 | 1,715 |
Property, plant and equipment [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | (2,142) | (1,745) |
Recognized in income statement | (121) | (397) |
Recognized in equity | 0 | 0 |
Balance, at the end | (2,263) | (2,142) |
Other intangible assets [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | (370) | (482) |
Recognized in income statement | (199) | 112 |
Recognized in equity | 0 | 0 |
Balance, at the end | (569) | (370) |
Others [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | (579) | (722) |
Recognized in income statement | 298 | 424 |
Recognized in equity | 910 | (281) |
Balance, at the end | ₨ 629 | ₨ (579) |
Income taxes (Details Textual)
Income taxes (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | |||
Deferred income taxes not recognized on undistributed earnings of subsidiaries | ₨ 31,587 | ||
Reversal of earlier years tax provisions | 135 | ₨ 1,370 | ₨ 0 |
Exchange Differences on Foreign Currency translations Recognised In Income Statement On Deferred Tax | 105 | 27 | |
Tax effect from change in tax rate | ₨ 1,329 | ₨ (104) | ₨ 30 |
Federal Statutory Tax Rates for USA Before Tax Cuts and Jobs Act | 35.00% | ||
Federal Statutory Tax Rates for USA After Tax Cuts and Jobs Act | 21.00% | ||
Taxs Cuts And Jobs Act [Member] | |||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | |||
Tax effect from change in tax rate | ₨ 1,304 | ||
Venezuela subsidiary [Member] | |||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | |||
Unrecognize deferred tax assets on operating tax losses | 993 | ||
Other Subsidiary [Member] | |||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | |||
Unrecognize deferred tax assets on operating tax losses | ₨ 1,473 |
Operating leases (Details)
Operating leases (Details) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Disclosure of operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | ₨ 1,929 | ₨ 1,710 | ₨ 2,244 |
Less than one year | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | 496 | 383 | 396 |
Between one and five years | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | 1,144 | 961 | 1,185 |
More than five years | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | ₨ 289 | ₨ 366 | ₨ 663 |
Operating leases (Details Textu
Operating leases (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Disclosure of operating lease by lessee [Line Items] | |||||
Minimum operating lease payments recognised as expense | ₨ 787 | ₨ 751 | ₨ 819 | ||
Minimum lease payments payable under non-cancellable operating lease | 1,929 | 1,710 | ₨ 2,244 | ||
Office and laboratory Facility [Member] | |||||
Disclosure of operating lease by lessee [Line Items] | |||||
Minimum lease payments payable under non-cancellable operating lease | ₨ 945 | ₨ 904 | $ 14 | $ 14 |
Related parties (Details)
Related parties (Details) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Research and development services provided | ₨ 100 | ₨ 0 | ₨ 0 |
Contributions towards social development | 238 | 318 | 249 |
Lease rentals paid under cancellable operating leases to key management personnel and their relatives | 35 | 39 | 37 |
Others | 1 | 0 | 0 |
Catering services received [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Services Received | 178 | 0 | 0 |
Hotel expenses paid [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Services Received | 49 | 44 | 51 |
Research and development [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Services Received | ₨ 98 | ₨ 114 | ₨ 102 |
Related parties (Details 1)
Related parties (Details 1) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Due from/to related parties [Line Items] | ||
Amounts payable, related party transactions | ₨ 14 | ₨ 9 |
Key management personnel (towards rent deposits) | ||
Due from/to related parties [Line Items] | ||
Amounts receivable, related party transactions | 8 | 8 |
Other related parties | ||
Due from/to related parties [Line Items] | ||
Amounts receivable, related party transactions | ₨ 148 | ₨ 0 |
Related parties (Details 2)
Related parties (Details 2) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Disclosure Of Key Management Personnel Compensation [Line Items] | ||||
Total | ₨ 32,149 | ₨ 31,069 | ₨ 31,174 | |
Key Management Personnel [Member] | ||||
Disclosure Of Key Management Personnel Compensation [Line Items] | ||||
Salaries and other benefits | [1] | 458 | 380 | 336 |
Contributions to defined contribution plans | 38 | 28 | 19 | |
Commission to directors | 153 | 180 | 263 | |
Share-based payments expense | 114 | 75 | 76 | |
Total | ₨ 763 | ₨ 663 | ₨ 694 | |
[1] | In addition to the above, the Company has accrued Rs.0 and Rs.79 towards a long term incentive plan for the services rendered by key management personnel during the years ended March 31, 2018 and 2017, respectively. Refer to Note 18 of these consolidated financial statements for further details. |
Related parties (Details Textua
Related parties (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Key Management Personnel Compensation [Abstract] | ||
Key management personnel compensation, other long-term employee benefits | ₨ 0 | ₨ 79 |
Financial instruments (Details)
Financial instruments (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | ||
Assets: | ||||||
Cash and cash equivalents | ₨ 2,638 | $ 41 | ₨ 3,866 | |||
Derivative financial instruments | 103 | 2 | 262 | |||
Liabilities: | ||||||
Trade and other payables | 16,052 | 247 | 13,417 | |||
Derivative financial instruments | 85 | 1 | 10 | |||
Long-term borrowings | 25,152 | 5,559 | ||||
Short-term borrowings | 25,466 | 391 | 43,539 | |||
Bank overdraft | 96 | $ 1 | 87 | |||
Derivatives [member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Other investments | 0 | 0 | ||||
Trade and other receivables | 0 | 0 | ||||
Derivative financial instruments | 103 | 262 | ||||
Other assets | [2] | 0 | 0 | |||
Total | 103 | 262 | ||||
Liabilities: | ||||||
Trade and other payables | 0 | 0 | ||||
Derivative financial instruments | 85 | 10 | ||||
Long-term borrowings | 0 | 0 | ||||
Short-term borrowings | 0 | 0 | ||||
Bank overdraft | 0 | 0 | ||||
Other liabilities and provisions | [3] | 0 | 0 | |||
Total | 85 | 10 | ||||
Total carrying value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 2,638 | 3,866 | ||||
Other investments | 20,879 | 19,507 | ||||
Trade and other receivables | 40,786 | 38,271 | ||||
Derivative financial instruments | 103 | 262 | ||||
Other assets | [2] | 2,273 | 1,916 | |||
Total | 66,679 | 63,822 | ||||
Liabilities: | ||||||
Trade and other payables | 16,052 | 13,417 | ||||
Derivative financial instruments | 85 | 10 | ||||
Long-term borrowings | 25,152 | 5,571 | ||||
Short-term borrowings | 25,466 | 43,539 | ||||
Bank overdraft | 96 | 87 | ||||
Other liabilities and provisions | [3] | 20,712 | 20,391 | [4] | ||
Total | 87,563 | 83,015 | ||||
Total fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 2,638 | 3,866 | ||||
Other investments | 20,879 | 19,507 | ||||
Trade and other receivables | 40,786 | 38,271 | ||||
Derivative financial instruments | 103 | 262 | ||||
Other assets | [2] | 2,273 | 1,916 | |||
Total | 66,679 | 63,822 | ||||
Liabilities: | ||||||
Trade and other payables | 16,052 | 13,417 | ||||
Derivative financial instruments | 85 | 10 | ||||
Long-term borrowings | 25,152 | 5,571 | ||||
Short-term borrowings | 25,466 | 43,539 | ||||
Bank overdraft | 96 | 87 | ||||
Other liabilities and provisions | [3] | 20,712 | 20,391 | [4] | ||
Total | 87,563 | 83,015 | ||||
Other financial liabilities [member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Other investments | 0 | 0 | ||||
Trade and other receivables | 0 | 0 | ||||
Derivative financial instruments | 0 | 0 | ||||
Other assets | [2] | 0 | 0 | |||
Total | 0 | 0 | ||||
Liabilities: | ||||||
Trade and other payables | 16,052 | 13,417 | ||||
Derivative financial instruments | 0 | 0 | ||||
Long-term borrowings | 25,152 | 5,571 | ||||
Short-term borrowings | 25,466 | 43,539 | ||||
Bank overdraft | 96 | 87 | ||||
Other liabilities and provisions | [3] | 20,712 | 20,391 | [4] | ||
Total | 87,478 | 83,005 | ||||
Loans and receivables [member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 2,638 | 3,866 | ||||
Other investments | 41 | 3,403 | ||||
Trade and other receivables | 40,786 | 38,271 | ||||
Derivative financial instruments | 0 | 0 | ||||
Other assets | [2] | 2,273 | 1,916 | |||
Total | 45,738 | 47,456 | ||||
Liabilities: | ||||||
Trade and other payables | 0 | 0 | ||||
Derivative financial instruments | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Short-term borrowings | 0 | 0 | ||||
Bank overdraft | 0 | 0 | ||||
Other liabilities and provisions | [3] | 0 | 0 | [4] | ||
Total | 0 | 0 | ||||
Available for sale [member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Other investments | 15,973 | 16,104 | ||||
Trade and other receivables | 0 | 0 | ||||
Derivative financial instruments | 0 | 0 | ||||
Other assets | [2] | 0 | 0 | |||
Total | 15,973 | 16,104 | ||||
Liabilities: | ||||||
Trade and other payables | 0 | 0 | ||||
Derivative financial instruments | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Short-term borrowings | 0 | 0 | ||||
Bank overdraft | 0 | 0 | ||||
Other liabilities and provisions | [3] | 0 | 0 | [4] | ||
Total | 0 | ₨ 0 | ||||
Held-to-maturity [member] | ||||||
Assets: | ||||||
Cash and cash equivalents | [4] | 0 | ||||
Other investments | [4] | 4,865 | ||||
Trade and other receivables | 0 | |||||
Derivative financial instruments | [5] | 0 | ||||
Other assets | [2],[4] | 0 | ||||
Total | [4] | 4,865 | ||||
Liabilities: | ||||||
Trade and other payables | [5] | 0 | ||||
Derivative financial instruments | [5] | 0 | ||||
Long-term borrowings | [6] | 0 | ||||
Short-term borrowings | [4] | 0 | ||||
Bank overdraft | [4] | 0 | ||||
Other liabilities and provisions | [3],[4] | 0 | ||||
Total | [4] | ₨ 0 | ||||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | |||||
[2] | Other assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses, advances paid and certain other receivables) of Rs.13,058 and Rs.11,037 as of March 31, 2018 and 2017, respectively, are not included. | |||||
[3] | Other liabilities that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs.9,321 and Rs.10,087 as of March 31, 2018 and 2017, respectively, are not included. | |||||
[4] | Interest accrued but not due on held-to-maturity investments is included in other current assets. | |||||
[5] | Interest accrued but not due on bonds, commercial paper and term deposits with banks is included in other current assets. | |||||
[6] | Interest accrued but not due on bonds, commercial paper and term deposits with banks is included in other current assets. |
Financial instruments (Details
Financial instruments (Details 1) - Recurring fair value measurement [member] - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | |
Investment in MF [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | ₨ 14,778 | ₨ 11,141 | |
Investment in Equity [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 1,195 | 4,963 | |
Gain/(loss) on outstanding derivative contracts [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | 18 | 252 |
Level 1 of fair value hierarchy [member] | Investment in MF [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 14,778 | 11,141 | |
Level 1 of fair value hierarchy [member] | Investment in Equity [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 1,195 | 4,963 | |
Level 1 of fair value hierarchy [member] | Gain/(loss) on outstanding derivative contracts [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | 0 | 0 |
Level 2 of fair value hierarchy [member] | Investment in MF [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 0 | 0 | |
Level 2 of fair value hierarchy [member] | Investment in Equity [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 0 | 0 | |
Level 2 of fair value hierarchy [member] | Gain/(loss) on outstanding derivative contracts [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | 18 | 252 |
Level 3 of fair value hierarchy [member] | Investment in MF [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 0 | 0 | |
Level 3 of fair value hierarchy [member] | Investment in Equity [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Available for sale - Financial asset | 0 | 0 | |
Level 3 of fair value hierarchy [member] | Gain/(loss) on outstanding derivative contracts [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | ₨ 0 | ₨ 0 |
[1] | The Company enters into derivative financial instruments with various counterparties, principally financial institutions and banks. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward option and swap contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black-Scholes-Merton models (for option valuation), using present value calculations. The models incorporate various inputs, including foreign exchange forward rates, interest rate curves and forward rate curves. |
Financial instruments (Detai183
Financial instruments (Details 2) ₽ in Millions, € in Millions, £ in Millions, $ in Millions | Mar. 31, 2018USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2018RUB (₽) | Mar. 31, 2017USD ($) | Mar. 31, 2017EUR (€) | Mar. 31, 2017GBP (£) | Mar. 31, 2017RUB (₽) |
Forward contract| US$ - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract One [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | $ 72 | $ 193.5 | |||||
Forward contract| US$ - RON| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Two [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | 3 | ||||||
Forward contract| US$ - RUB| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Three [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | 38 | 20 | |||||
Forward contract| EUR - US$| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Four [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | € | € 95 | ||||||
Forward contract| GBP - US$| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Two [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | £ | £ 31 | ||||||
Forward contract| GBP - US$| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Five [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | £ | £ 14.1 | ||||||
Option contract| US - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Four [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | 65 | ||||||
Option contract| US - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Six [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | 80 | ||||||
Option contract| US - INR| Sell [Member] | Hedges of highly probable forecasted transactions [Member] | Contract Six [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | $ 240 | ||||||
Option contract| US - INR| Sell [Member] | Hedges of highly probable forecasted transactions [Member] | Contract Eight [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | $ 180 | ||||||
Forward contract| RUB - INR| Sell [Member] | Hedges of highly probable forecasted transactions [Member] | Contract Five [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | ₽ | ₽ 1,080 | ||||||
Forward contract| RUB - INR| Sell [Member] | Hedges of highly probable forecasted transactions [Member] | Contract Seven [Member] | |||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | |||||||
Notional amount | ₽ | ₽ 150 |
Financial instruments (Detai184
Financial instruments (Details 3) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
US Dollars [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | ₨ 15,642 | ₨ 11,674 |
US Dollars [Member] | Not later than one month [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 1,955 | 973 |
US Dollars [Member] | Later than one month and not later than three months [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 3,911 | 1,946 |
US Dollars [Member] | Later than six months and not later than one year [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 3,910 | 5,837 |
US Dollars [Member] | Later than three months and not later than six months [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 5,866 | 2,918 |
Russian Roubles [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 1,223 | 172 |
Russian Roubles [Member] | Not later than one month [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 102 | 57 |
Russian Roubles [Member] | Later than one month and not later than three months [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 204 | 115 |
Russian Roubles [Member] | Later than six months and not later than one year [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 611 | 0 |
Russian Roubles [Member] | Later than three months and not later than six months [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | ₨ 306 | ₨ 0 |
Financial instruments (Detai185
Financial instruments (Details 4) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Disclosure of detailed information about financial instruments [line items] | |||||
Net gain recognized in finance costs in respect of foreign exchange derivative contracts | ₨ 168 | ₨ 699 | ₨ 231 | ||
Effective portion of changes in fair value of cash flow hedges, net | (82) | $ (1) | 968 | 966 | |
Net gain/(loss) recognized as component of revenue | ₨ 651 | ₨ (683) | ₨ (1,172) | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Financial instruments (Detai186
Financial instruments (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2018INR (₨)USD ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Financial instruments [Line Items] | |||
Other non-financial assets | ₨ 13,058 | ₨ 11,037 | |
Other non-financial liabilities | 9,321 | 10,087 | |
Derivative financial assets | 103 | 262 | |
Derivative financial liabilities | 85 | 10 | |
Gains (losses) on cash flow hedges, net of tax | (41) | 908 | ₨ 943 |
Interest rate swap contract [member] | |||
Financial instruments [Line Items] | |||
Gains (losses) on cash flow hedges, net of tax | ₨ 9 | ||
Nominal amount of hedging instrument | $ | 50 | ||
Component of Equity before tax adjustment [Member] | |||
Financial instruments [Line Items] | |||
Reserve of cash flow hedges | ₨ 49 | ₨ 129 |
Financial risk management (Deta
Financial risk management (Details) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | |
Assets: | |||||
Cash and cash equivalents | ₨ 2,638 | $ 41 | ₨ 3,866 | ||
Total | 225,604 | 3,465 | 219,821 | ||
Liabilities: | |||||
Trade and other payables | 16,052 | 247 | 13,417 | ||
Long-term borrowings | 25,089 | 385 | 5,449 | ||
Short-term borrowings | 25,466 | 391 | 43,539 | ||
Bank overdraft | 96 | 1 | 87 | ||
Other liabilities and provisions | 20,712 | 20,391 | |||
Total | 99,144 | $ 1,523 | 95,777 | ||
Foreign Currency Risk from Non-derivative Financial Instruments [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 1,022 | 1,116 | |||
Other investments | 20 | 14 | |||
Trade and other receivables | 35,147 | 33,528 | |||
Other assets | 666 | 561 | |||
Total | 36,855 | 35,219 | |||
Liabilities: | |||||
Trade and other payables | 6,304 | 3,554 | |||
Long-term borrowings | 4,888 | 4,941 | |||
Short-term borrowings | 22,108 | 16,993 | |||
Bank overdraft | 86 | ||||
Other liabilities and provisions | 7,917 | 9,039 | |||
Total | 41,217 | 34,613 | |||
US Dollars [Member] | Non-derivative financial instruments [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 392 | 130 | |||
Other investments | 0 | 0 | |||
Trade and other receivables | 25,427 | 24,581 | |||
Other assets | 125 | 458 | |||
Total | 25,944 | 25,169 | |||
Liabilities: | |||||
Trade and other payables | 3,526 | 2,323 | |||
Long-term borrowings | 4,888 | 4,865 | |||
Short-term borrowings | 19,552 | 12,970 | |||
Bank overdraft | 86 | ||||
Other liabilities and provisions | 5,147 | 6,660 | |||
Total | 33,113 | 26,904 | |||
Euro [Member] | Non-derivative financial instruments [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 62 | 87 | |||
Other investments | 0 | 0 | |||
Trade and other receivables | 437 | 567 | |||
Other assets | 85 | 0 | |||
Total | 584 | 654 | |||
Liabilities: | |||||
Trade and other payables | 1,658 | 903 | |||
Long-term borrowings | 0 | 0 | |||
Short-term borrowings | 0 | 0 | |||
Bank overdraft | 0 | ||||
Other liabilities and provisions | 104 | 117 | |||
Total | 1,762 | 1,020 | |||
Roubles roubles [Member] | Non-derivative financial instruments [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 56 | 59 | |||
Other investments | 0 | 0 | |||
Trade and other receivables | 6,691 | 6,259 | |||
Other assets | 260 | 70 | |||
Total | 7,007 | 6,388 | |||
Liabilities: | |||||
Trade and other payables | 2 | 0 | |||
Long-term borrowings | 0 | 76 | |||
Short-term borrowings | 2,378 | 4,023 | |||
Bank overdraft | 0 | ||||
Other liabilities and provisions | 1,896 | 1,640 | |||
Total | 4,276 | 5,739 | |||
Other Currency [Member] | Non-derivative financial instruments [Member] | |||||
Assets: | |||||
Cash and cash equivalents | [2] | 512 | 840 | ||
Other investments | [2] | 20 | 14 | ||
Trade and other receivables | [2] | 2,592 | 2,121 | ||
Other assets | [2] | 196 | 33 | ||
Total | [2] | 3,320 | 3,008 | ||
Liabilities: | |||||
Trade and other payables | [2] | 1,118 | 328 | ||
Long-term borrowings | [2] | 0 | 0 | ||
Short-term borrowings | [2] | 178 | 0 | ||
Bank overdraft | [2] | 0 | |||
Other liabilities and provisions | [2] | 770 | 622 | ||
Total | [2] | ₨ 2,066 | ₨ 950 | ||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) | ||||
[2] | Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus and Ukrainian hryvnia. |
Financial risk management (D188
Financial risk management (Details 1) - Financial assets past due but not impaired [member] - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | ||
Trade and other receivables | ₨ 5,990 | ₨ 10,463 |
Later than one month and not later than three months [member] | ||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | ||
Trade and other receivables | 4,510 | 8,380 |
Later than three months and not later than six months [member] | ||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | ||
Trade and other receivables | 177 | 707 |
Later than six months and not later than one year [member] | ||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | ||
Trade and other receivables | ₨ 1,303 | ₨ 1,376 |
Financial risk management (D189
Financial risk management (Details 2) - INR (₨) ₨ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | ₨ 16,052 | ₨ 13,417 |
Bank overdraft, short-term loans and borrowings | 25,562 | 43,626 |
Other liabilities and provisions | 20,712 | 20,391 |
Derivative financial instruments - liabilities | 85 | 10 |
Not later than one year [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 16,052 | 13,417 |
Bank overdraft, short-term loans and borrowings | 25,562 | 43,626 |
Other liabilities and provisions | 19,885 | 19,564 |
Derivative financial instruments - liabilities | 85 | 10 |
Later Than One Year But Not Later Than Two Years [Member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Other liabilities and provisions | 92 | 88 |
Later than two years and not later than three years [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Other liabilities and provisions | 16 | 7 |
Later than three years and not later than four years [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Other liabilities and provisions | 16 | 9 |
Later than four years [Member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Other liabilities and provisions | ₨ 703 | ₨ 723 |
Financial risk management (D190
Financial risk management (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | Mar. 31, 2018USD ($) | [1] | |
Financial Risk Management [Line Items] | |||||
Undrawn borrowing facilities | ₨ 24,046 | ₨ 21,156 | |||
Working capital | 39,953 | 15,198 | |||
Cash and cash equivalents | 2,638 | 3,866 | $ 41 | ||
Increase In Hedging Reserve Sensitivity Analysis | 1,277 | 1,154 | ₨ 1,511 | ||
Decrease In Hedging Reserve Sensitivity Analysis | (1,338) | (710) | (424) | ||
Increase In Profit From Contracts Sensitivity analysis | 403 | 2,143 | 1,277 | ||
Decrease In Profit From Contracts Sensitivity Analysis | (308) | (2,287) | ₨ (1,707) | ||
Borrowings | ₨ 25,152 | ₨ 5,559 | |||
Percentage Of Depreciation Or Appreciation In Exchange Rate Used For Sensitivity Analysis | 10.00% | 10.00% | |||
Expected increase or decrease in the net profit from fluctuation in Exchange Rate by 10% | ₨ 434 | ₨ 61 | |||
Percentage Of Increase Or Decrease In Floating Interest Rate Used For Sensitivity Analysis | 10.00% | 10.00% | 10.00% | ||
Expected increase or decrease in the net profit from floating interest rate fluctuation by 10% | ₨ 77 | ₨ 46 | ₨ 12 | ||
Percentage decrease increase in exchange rates of each of the currencies underlying derivative contracts used for sensitivity analysis | 10.00% | 10.00% | 10.00% | ||
Bonds And Commercial Paper [Member] | |||||
Financial Risk Management [Line Items] | |||||
Investments other than investments accounted for using equity method | ₨ 3,552 | ||||
Short Term Deposits [Member] | |||||
Financial Risk Management [Line Items] | |||||
Investments other than investments accounted for using equity method | ₨ 3,389 | ||||
Mutual Funds [Member] | |||||
Financial Risk Management [Line Items] | |||||
Financial assets available-for-sale | 14,778 | 10,881 | |||
Cash flow hedges [member] | |||||
Financial Risk Management [Line Items] | |||||
Increase In Hedging Reserve Sensitivity Analysis | 18 | ||||
Decrease In Hedging Reserve Sensitivity Analysis | (20) | ||||
Borrowings | 3,259 | ||||
Floating interest rate [member] | |||||
Financial Risk Management [Line Items] | |||||
Borrowings | ₨ 42,592 | ₨ 41,407 | |||
Borrowings, interest rate basis | a floating interest rate ranging from 1 Month LIBOR minus 30 bps to 1 Month/3 Months LIBOR plus 85 bps | a floating interest rate of 1 Month LIBOR minus 30 bps to 1 Month LIBOR plus 82.7 bps and the Indian Treasury Bill plus 30 bps | |||
Financial assets neither past due nor impaired [member] | |||||
Financial Risk Management [Line Items] | |||||
Trade and other receivables | ₨ 35,748 | ₨ 27,809 | |||
Unutilized credit limits [Member] | |||||
Financial Risk Management [Line Items] | |||||
Undrawn borrowing facilities | ₨ 24,046 | ₨ 21,156 | |||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Collaboration agreement with191
Collaboration agreement with Curis, Inc. (Details Textual) - Curis, Inc. [Member] $ / shares in Units, shares in Thousands, ₨ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2018shares | Jan. 18, 2015INR (₨)shares | Mar. 31, 2018INR (₨)shares | Mar. 31, 2018USD ($)shares | Sep. 07, 2016INR (₨)shares | Sep. 07, 2016USD ($)$ / sharesshares | Jan. 18, 2015USD ($)shares | |
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Vesting Requirements For Shares Acquired | shares were initially subject to a lock-up agreement. However, as of March 31, 2017, lock-up restrictions were released on all of the aforementioned 17.1 million shares. In connection with the issuance of such shares, Curis and Aurigene entered into a Registration Rights Agreement dated January 18, 2015 which provides for certain registration rights with respect to resale of the shares. The common stock of Curis is listed for quotation on the NASDAQ Global Market. | As partial consideration for the collaboration, pursuant to a Stock Purchase Agreement dated January 18, 2015, Curis issued to Aurigene 17.1 million shares of its common stock, representing 19.9% of its outstanding common stock immediately prior to the transaction (approximately 16.6% of its outstanding common stock immediately after the transaction). Such shares were initially subject to a lock-up agreement. However, as of March 31, 2017, lock-up restrictions were released on all of the aforementioned 17.1 million shares. In connection with the issuance of such shares, Curis and Aurigene entered into a Registration Rights Agreement dated January 18, 2015 which provides for certain registration rights with respect to resale of the shares. The common stock of Curis is listed for quotation on the NASDAQ Global Market. | As partial consideration for the collaboration, pursuant to a Stock Purchase Agreement dated January 18, 2015, Curis issued to Aurigene 17.1 million shares of its common stock, representing 19.9% of its outstanding common stock immediately prior to the transaction (approximately 16.6% of its outstanding common stock immediately after the transaction). Such shares were initially subject to a lock-up agreement. However, as of March 31, 2017, lock-up restrictions were released on all of the aforementioned 17.1 million shares. In connection with the issuance of such shares, Curis and Aurigene entered into a Registration Rights Agreement dated January 18, 2015 which provides for certain registration rights with respect to resale of the shares. The common stock of Curis is listed for quotation on the NASDAQ Global Market. | ||||
Description of lock-up restrictions on shares issued in business combination | These additional shares are also subject to a lock-up agreement, which is similar to the lock-up for the original Curis shares the Company received. However, this lock-up remains effective until September 7, 2018, with shares being released from such lock-up in 25% increments on each of March 7, 2017, September 7, 2017, March 7, 2018 and September 7, 2018, subject to acceleration of release of all the shares in connection with a change of control of Curis. As of March 31, 2018, lock-up restrictions were released on an aggregate of 7.65 million of such additional shares of Curis common stock, representing 75% of the shares which Aurigene received from Curis in 2016. | These additional shares are also subject to a lock-up agreement, which is similar to the lock-up for the original Curis shares the Company received. However, this lock-up remains effective until September 7, 2018, with shares being released from such lock-up in 25% increments on each of March 7, 2017, September 7, 2017, March 7, 2018 and September 7, 2018, subject to acceleration of release of all the shares in connection with a change of control of Curis. As of March 31, 2018, lock-up restrictions were released on an aggregate of 7.65 million of such additional shares of Curis common stock, representing 75% of the shares which Aurigene received from Curis in 2016. | |||||
Fair value of instruments or interests | ₨ 1,452 | ₨ 1,247 | $ 18.8 | $ 23.5 | |||
Number of additional shares to be issued under amendment of collaboration agreement | shares | 10,200 | 10,200 | |||||
Milestone and other payments to be received | $ 24.5 | ||||||
Number of share released from equity restrictions | shares | 7,650 | 7,650 | |||||
Number of shares issued | shares | 17,100 | 17,100 | |||||
Percentage Of Interests Acquired In Collaboration Agreement | 19.90% | ||||||
Share Prices | $ / shares | $ 1.84 | ||||||
Percentage Of Voting Rights Held After The Agreement | 16.60% | ||||||
Gains (losses) recognised in other comprehensive income, fair value measurement, assets | ₨ | ₨ 1,535 | ||||||
Equity Shares After Stock Split | shares | 5,470 | ||||||
Reverse Stock Split | 1-for-5 | ||||||
Program One [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | $ 52.5 | ||||||
Program One [Member] | Approval and commerical milestone payment [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 42.5 | ||||||
Program Two [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 52.5 | ||||||
Program Two [Member] | Approval and commerical milestone payment [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 42.5 | ||||||
Program Three [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 50 | ||||||
Program Three [Member] | Approval and commerical milestone payment [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 42.5 | ||||||
Program Four [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 50 | ||||||
Program Four [Member] | Approval and commerical milestone payment [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 42.5 | ||||||
Subsequent Programs [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | 140.5 | ||||||
Subsequent Programs [Member] | Approval and commerical milestone payment [Member] | Development and commercial milestone payment [Member] | |||||||
Disclosure Of Collaboration Agreement [Line Items] | |||||||
Milestone Payments Receivable On Achieving Commercial And Development Milestones | $ 87.5 |
Agreement with Merck Serono (De
Agreement with Merck Serono (Details Textual) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Merck Serono [Member] | |
Disclosure of Agreement with Merck Serono [Line Items] | |
Milestone Payment Received | $ 1 |
Asset purchase agreement wit193
Asset purchase agreement with Teva Pharmaceutical Industries Limited (Details) - Mar. 31, 2018 ₨ in Millions, $ in Millions | INR (₨) | USD ($) |
Disclosure Of Asset Purchase Agreement [Line Items] | ||
Cash Transferred Under Asset Purcase Agreement | ₨ 23,366 | $ 350 |
NuvaRing [Member] | ||
Disclosure Of Asset Purchase Agreement [Line Items] | ||
Cash Transferred Under Asset Purcase Agreement | 12,351 | 185 |
Suboxone sublingual film [Member] | ||
Disclosure Of Asset Purchase Agreement [Line Items] | ||
Cash Transferred Under Asset Purcase Agreement | 4,673 | 70 |
Rozerem [Member] | ||
Disclosure Of Asset Purchase Agreement [Line Items] | ||
Cash Transferred Under Asset Purcase Agreement | 2,270 | 34 |
Other product [Member] | ||
Disclosure Of Asset Purchase Agreement [Line Items] | ||
Cash Transferred Under Asset Purcase Agreement | ₨ 4,072 | $ 61 |
Asset purchase agreement wit194
Asset purchase agreement with Teva Pharmaceutical Industries Limited (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Aug. 03, 2016USD ($) | Jun. 10, 2016USD ($) | Mar. 31, 2016INR (₨) | |
Disclosure Of Asset Purchase Agreement [Line Items] | |||||||
Intangible assets other than goodwill | ₨ 44,665 | $ 686 | ₨ 44,925 | ₨ 20,796 | |||
Teva Pharmaceutical Industries Ltd [Member] | |||||||
Disclosure Of Asset Purchase Agreement [Line Items] | |||||||
Cash Transferred Under Asset Purchase Agreement | $ | $ 350 | $ 350 | |||||
Useful lives or amortisation rates, intangible assets other than goodwill | eight years | ||||||
Teva Pharmaceutical Industries Ltd [Member] | Net Carrying Amount [Member] | other seven Abbreviated New Drug Applications [Member] | |||||||
Disclosure Of Asset Purchase Agreement [Line Items] | |||||||
Intangible assets other than goodwill | ₨ 22,573 | ||||||
Teva Pharmaceutical Industries Ltd [Member] | Net Carrying Amount [Member] | Capitalised Product [Member] | |||||||
Disclosure Of Asset Purchase Agreement [Line Items] | |||||||
Intangible assets other than goodwill | ₨ 697 | ||||||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Significant asset purchase a195
Significant asset purchase agreements (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | [1] | Mar. 31, 2017INR (₨) | Mar. 31, 2016INR (₨) | |
Disclosure of significant asset purchase agreements [Line Items] | |||||
Intangible assets other than goodwill | ₨ 44,665 | $ 686 | ₨ 44,925 | ₨ 20,796 | |
UCB India Private Limited and affiliates [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | UCB India Private Limited and affiliates | ||||
Description Of Particulars Related To Asset Agreement | Purchase of a select portfolio of established products business in the territories of India, Nepal, Sri Lanka and Maldives to strengthen our presence in the areas of dermatology, respiratory and pediatric products, all for a total purchase consideration of Rs.8,000. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | 9 to 15 years | ||||
Intangible assets other than goodwill | ₨ 6,081 | ||||
Hatchtech Pty Limited [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | Hatchtech Pty Limited | ||||
Description Of Particulars Related To Asset Agreement | Purchase of intellectual property rights of an innovative prescription head lice product, Xeglyze™ lotion. Consideration was an upfront amount of Rs.606 plus certain milestone-based payments. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | Not available for use yet | ||||
Intangible assets other than goodwill | ₨ 1,011 | ||||
Alchemia Limited [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | Alchemia Limited | ||||
Description Of Particulars Related To Asset Agreement | Purchase of worldwide, exclusive intellectual property rights to fondaparinux sodium, all for an aggregate consideration of Rs.1,158. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | 4 years | ||||
Intangible assets other than goodwill | ₨ 459 | ||||
XenoPort, Inc. [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | XenoPort, Inc. | ||||
Description Of Particulars Related To Asset Agreement | Purchase of exclusive U.S. rights for the development and commercialization of XenoPort’s clinical stage oral new chemical entity, all for an aggregate consideration of Rs.3,159. The Company plans to develop the in-licensed compound as a potential treatment for moderate-to-severe chronic plaque psoriasis and for relapsing forms of multiple sclerosis. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | Not available for use yet | ||||
Intangible assets other than goodwill | ₨ 3,219 | ||||
Eisai Company Limited [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | Eisai Company Limited | ||||
Description Of Particulars Related To Asset Agreement | Acquisition of commercialization rights for an anti-cancer biologic agent (E7777) from Eisai Company Limited. The consideration was an upfront amount plus certain milestone-based payments. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | Not available for use yet | ||||
Intangible assets other than goodwill | ₨ 1,065 | ||||
Ducere Pharma LLC [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | Ducere Pharma LLC | ||||
Description Of Particulars Related To Asset Agreement | Purchase of certain pharmaceutical brands to strengthen the Company’s presence in the dermatology, cough-and-cold and pain therapeutic areas forming part of the Company’s OTC business in the United States, all for an aggregate consideration of Rs.1,148. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | 15 years | ||||
Intangible assets other than goodwill | ₨ 980 | ||||
Gland Pharma Limited [Member] | |||||
Disclosure of significant asset purchase agreements [Line Items] | |||||
Counter Party Name | Gland Pharma Limited | ||||
Description Of Particulars Related To Asset Agreement | Acquisition of the rights to in-license, market and distribute eight injectable ANDAs, all for an aggregate consideration of U.S.$5.9. | ||||
Useful lives or amortisation rates, intangible assets other than goodwill | Not available for use yet | ||||
Intangible assets other than goodwill | ₨ 231 | ||||
[1] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Significant out-licensing ag196
Significant out-licensing agreements (Details) | Sep. 30, 2017 | Jul. 31, 2017 |
CHD Biosciences Inc. (“CHD”) [Member] | ||
Disclosure Of Significant Out-licensing Agreements [Line Items] | ||
Counter Party Name | CHD Biosciences Inc. (“CHD”) | |
Description Of Intangible asset | DFA02 | |
Description Of Particulars Related To Asset Agreement | As a consideration for out-licensing the Phase III clinical trial candidate, DFA-02, the Company is entitled to receive equity shares in CHD valued at U.S.$30 upon an initial public offering of CHD or, if no initial public offering occurs within 18 months of execution of the agreement, a cash payment of U.S.$30. The Company will also receive additional milestone payments of U.S.$40 upon U.S. FDA approval. In addition, the Company is entitled to royalties on sales and certain other commercial milestone payments with respect to the product. At the time of execution, as the arrangement did not meet all of the revenue recognition criteria under IAS 18, no revenue has been recognized for the transaction. | |
Encore Dermatology Inc [Member] | ||
Disclosure Of Significant Out-licensing Agreements [Line Items] | ||
Counter Party Name | Encore Dermatology Inc | |
Description Of Intangible asset | DFD06 | |
Description Of Particulars Related To Asset Agreement | The consideration for this arrangement consists of up to U.S.$20 in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 of amounts contingent upon satisfaction of certain patent and commercial milestones. In addition, the Company is entitled to royalties on net sales. During the three months ended December 31, 2017, all of the performance obligations relating to the approval milestones were met, and consequently, revenue of U.S.$20 was recognized. |
Venezuela subsidiary operati197
Venezuela subsidiary operations (Details) - Venezuela [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Impact Of Currency Devaluation On Financial Statements [Line Items] | ||
Foreign exchange loss due to currency devaluation and translation of monetary assets and liabilities using SIMADI/DICOM rate recorded under finance expense | ₨ 4,621 | ₨ 843 |
Impact of inventory write down and reversal of export incentives recorded under cost of revenues | 341 | 0 |
Impairment of property, plant and equipment recorded under selling, general and administrative expenses | 123 | 0 |
Total | ₨ 5,085 | ₨ 843 |
Venezuela subsidiary operati198
Venezuela subsidiary operations (Details Textual) ₨ in Millions, $ in Millions, in Millions | 12 Months Ended | ||||||||||||||
Mar. 31, 2018INR (₨)VEFperUSD | Mar. 31, 2018USD ($)VEFperUSD | Mar. 31, 2017INR (₨)VEFperUSD | Mar. 31, 2017VEF ( )VEFperUSD | Mar. 31, 2016INR (₨) | [1],[2] | Mar. 31, 2018USDperVEF | Mar. 31, 2017USDperVEF | Mar. 10, 2016VEFperUSD | Mar. 10, 2016USDperVEF | Feb. 28, 2015VEFperUSD | Feb. 28, 2015USDperVEF | ||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Revenue | ₨ 142,028 | [1],[2] | $ 2,181 | [3] | ₨ 140,809 | [1],[2] | ₨ 154,708 | ||||||||
CENCOEX [Member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Exchange Rates | 6.3 | 1 | |||||||||||||
SICAD [Member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Exchange Rates | 12 | 1 | |||||||||||||
Eliminated Exchange Rates | 13 | 1 | |||||||||||||
DICOM [Member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
DICOM Exchange Rate | 49,375 | 49,375 | 1 | ||||||||||||
DIPRO devalued from [Member] | Bottom of range [member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Exchange Rates | 6.3 | 1 | |||||||||||||
DIPRO devalued from [Member] | Top of range [member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Exchange Rates | 10 | 1 | |||||||||||||
Venezuela Operations [Member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Revenue | 17 | 162 | |||||||||||||
Foreign exchange gain (loss) | ₨ | ₨ 29 | ₨ 41 | |||||||||||||
Approval Received For Remittance Towards Importation at Preferential Rate | VEFperUSD | 0.4 | 0.4 | |||||||||||||
Venezuela Operations [Member] | Top of range [member] | |||||||||||||||
INCOME STATEMENT [Line Items] | |||||||||||||||
Preferential Rate | 10 | 10 | 1 | ||||||||||||
[1] | Effective July 1, 2017, a Goods and Services Tax ("GST") was introduced in India, replacing the excise duty and various other taxes. Following the principles of IAS 18, revenues from operations are disclosed net of GST. For periods prior to July 1, 2017, the excise duty amount was recorded as part of revenues with a corresponding amount recorded in the cost of revenues. Accordingly, revenues and cost of revenues for the year ended March 31, 2018 are not comparable with those of the previous years presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2018 2017 2016 Excise duty included in revenues Rs. 173 Rs. 939 Rs. 842 | ||||||||||||||
[2] | Revenues for the year ended March 31, 2018 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,492 (as compared to Rs.6,181 and Rs.5,447 for the years ended March 31, 2017 and 2016, respectively). | ||||||||||||||
[3] | Unaudited convenience translation into U.S.$(See Note 2(d)) |
Contingencies (Details)
Contingencies (Details) - Details of demand notice [Member] - INR (₨) | 12 Months Ended | 18 Months Ended | 19 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Sep. 30, 2009 | |
Disclosure of contingent liabilities [line items] | |||||||
Demand made by Central Excise Authorities to the company excluding penalty and interest | ₨ 157 | ₨ 108 | ₨ 69 | ₨ 54 | ₨ 51 | ₨ 125 | ₨ 102 |
Penalties Demanded By Central Excise Authorities To Company | ₨ 100 | ₨ 102 |
Contingencies (Details 1)
Contingencies (Details 1) - INR (₨) ₨ in Millions | 24 Months Ended | 36 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2011 | Mar. 31, 2009 | |
Disclosure of contingent liabilities [line items] | |||
Amount demanded | ₨ 16 | ₨ 59 | ₨ 66 |
Percentage demanded | 10.00% | 10.00% | 10.00% |
Contingencies (Details Textual)
Contingencies (Details Textual) ₨ in Millions, $ in Millions, $ in Millions | 12 Months Ended | 60 Months Ended | ||||||||||||
Mar. 31, 2018INR (₨) | Mar. 31, 2018MXN ($) | Mar. 31, 2017INR (₨) | Mar. 31, 2013INR (₨) | Mar. 31, 2006INR (₨) | Mar. 31, 1996₨ / Acre-acre | Mar. 31, 2013INR (₨) | Jan. 18, 2018INR (₨) | Jan. 18, 2018USD ($) | Sep. 15, 2017INR (₨) | Sep. 13, 2017INR (₨) | Aug. 08, 2017INR (₨) | Jul. 27, 2017INR (₨) | Mar. 31, 2008INR (₨) | |
Disclosure of contingent liabilities [line items] | ||||||||||||||
Other provisions | ₨ 3,785 | ₨ 4,556 | ||||||||||||
Demand made by Indian Sales Tax Authorities to the company | 278 | |||||||||||||
VAT Provision Recorded | 27 | |||||||||||||
Cardiovascular [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Other provisions | 416 | |||||||||||||
Issued Notice Demanding Payment By NPPA | ₨ 776 | |||||||||||||
Deposit Made On Demand | ₨ 100 | |||||||||||||
Bank Guarantee | ₨ 676 | |||||||||||||
Amount Directed to be Deposited by Court | ₨ 100 | |||||||||||||
Bank Guarantee Directed by Delhi High Court to be Furnished | ₨ 676 | |||||||||||||
Income Tax Disallowances [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Tax Impact of disallowed items | 1,727 | |||||||||||||
Transfer pricing adjustments [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Tax Impact of disallowed items | $ 196.9 | 703 | ||||||||||||
Fuel Surcharge Adjustments [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Potential liability recorded towards FSA charges | ₨ 219 | |||||||||||||
Total amount approved by APERC for collection regarding FSA charges | ₨ 482 | |||||||||||||
Payments under protest | ₨ 354 | |||||||||||||
Fuel and energy expense | ₨ 55 | |||||||||||||
Norfloxacin, India litigation [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Amount discharged against Penalty | ₨ 77 | |||||||||||||
Percentage of amount discharged against penalty | 50.00% | |||||||||||||
Issued Notice Demanding Payment By NPPA | ₨ 285 | ₨ 30 | ||||||||||||
Land pollution [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Pollution compensation per acre fixed for dry land | ₨ / Acre-acre | 0.0013 | |||||||||||||
Pollution compensation per acre fixed for wet land | ₨ / Acre-acre | 0.0017 | |||||||||||||
Consumer Product Safety Commission [Member] | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Settlement Compensation Paid | ₨ 319 | $ 5 |
Nature of Expense (Details)
Nature of Expense (Details) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | ₨ 32,149 | ₨ 31,069 | ₨ 31,174 |
Depreciation and amortization | 11,710 | 11,277 | 10,250 |
Cost of revenues [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 10,434 | 10,515 | 9,574 |
Depreciation and amortization | 6,595 | 6,117 | 5,241 |
Selling, general and administrative expenses [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 17,004 | 15,838 | 16,641 |
Depreciation and amortization | 3,883 | 3,935 | 3,933 |
Research and development expenses [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 4,711 | 4,716 | 4,959 |
Depreciation and amortization | ₨ 1,232 | ₨ 1,225 | ₨ 1,076 |
Change in the functional cur203
Change in the functional currency of a foreign operation (Details Textual) ₨ in Millions, $ in Millions | Mar. 31, 2018INR (₨) | Mar. 31, 2017INR (₨) | Sep. 30, 2016USD ($) |
Change in the functional currency of a foreign operation [Line Items] | |||
Borrowings | ₨ 25,152 | ₨ 5,559 | |
Swiss Subsidiary [Member] | |||
Change in the functional currency of a foreign operation [Line Items] | |||
Borrowings | ₨ 16,185 | ₨ 0 | $ 350 |
Organizational structure (Detai
Organizational structure (Details) | 12 Months Ended | |
Mar. 31, 2018 | ||
Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Malaysia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [1] |
Aurigene Discovery Technologies Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [1] |
Aurigene Discovery Technologies Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
beta Institut gemeinnutzige GmbH [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [2] |
betapharm Arzneimittel GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [2] |
Cheminor Investments Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Cheminor Employees Welfare Trust [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | [3] | |
Chirotech Technology Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | United Kingdom | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [4] |
Dr. Reddy’s Research Foundation [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | [3] | |
Dr. Reddy’s Farmaceutica Do Brasil Ltda. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Brazil | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Dr. Reddy’s Laboratories (EU) Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | United Kingdom | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories (Proprietary) Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | South Africa | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories (UK) Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | United Kingdom | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [4] |
Dr. Reddy’s Laboratories Canada, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Canada | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories International SA [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Switzerland | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories Japan KK [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Japan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories Louisiana LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Dr. Reddy’s Laboratories New York, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories Romania S.R.L. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Romania | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories SA [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Switzerland | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Dr. Reddy’s Laboratories Tennessee, LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Dr. Reddy’s Laboratories, LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Ukraine | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s New Zealand Limited. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | New Zealand | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Singapore PTE Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Singapore | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Srl [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Italy | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [7] |
Dr. Reddy’s Bio-Sciences Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Dr. Reddy’s Laboratories (Australia) Pty. Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Australia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories SAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Research and Development B.V. (formerly Octoplus B.V.) [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [8] |
Dr. Reddy’s Venezuela, C.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Venezuela | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
DRANU LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 50.00% | [9] |
DRES Energy Private Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 26.00% | [10] |
DRL Impex Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [11] |
DRSS Solar Power Private Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 26.00% | [10],[12] |
Eurobridge Consulting B.V. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [13] |
Idea2Enterprises (India) Pvt. Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Industrias Quimicas Falcon de Mexico, S.A. de CV [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Mexico | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Kunshan Rotam Reddy Pharmaceutical Co. Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | China | |
Percentage of Direct/Indirect Ownership Interest | 51.33% | [14] |
Lacock Holdings Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Cyprus | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
OOO Dr. Reddy’s Laboratories Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Russia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
OOO DRS LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Russia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [15] |
Promius Pharma LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Reddy Antilles N.V. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Reddy Holding GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Reddy Netherlands B.V. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Reddy Pharma Iberia SA [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Spain | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Reddy Pharma Italia S.R.L. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Italy | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [16] |
Reddy Pharma SAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | France | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy's Laboratories Chile SPA. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Chile | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy's Laboratories Taiwan Limited [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Taiwan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s WUXI Pharmaceutical Company Limited [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | China | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Regkinetics Services Limited (formerly Dr. Reddy’s Pharma SEZ Limited) | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Dr. Reddy's Laboratories Malaysia Sdn. Bhd. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Malaysia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Dr. Reddy’s Laboratories Kazakhstan LLP [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Kazakhstan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [5] |
Imperial Credit Private Limited [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
[1] | Indirectly owned through Aurigene Discovery Technologies Limited. | |
[2] | Indirectly owned through Reddy Holding GmbH. | |
[3] | The Company does not have any equity interests in this entity, but has significant influence or control over it. | |
[4] | Indirectly owned through Dr. Reddy’s Laboratories (EU) Limited. | |
[5] | Indirectly owned through Dr. Reddy’s Laboratories SA. | |
[6] | Indirectly owned through Dr. Reddy’s Laboratories Inc. | |
[7] | Indirectly owned through Reddy Pharma Italia S.R.L. | |
[8] | Indirectly owned through Reddy Netherlands B.V. | |
[9] | DRANU LLC is consolidated in accordance with guidance available in IFRS 10. | |
[10] | Accounted in accordance with IFRS 11 ‘Joint Arrangements’. | |
[11] | Indirectly owned through Idea2Enterprises (India) Pvt. Limited. | |
[12] | Entities liquidated during the year. | |
[13] | Indirectly owned through Dr. Reddy’s Research and development B.V. (from March 29, 2018), formerly a subsidiary of Reddy Antilles N.V. | |
[14] | Kunshan Rotam Reddy Pharmaceutical Co. Limited is a subsidiary, as the Company holds a 51.33% stake. However, the Company accounts for this investment by the equity method and does not consolidate it in the Company’s financial statements. | |
[15] | Indirectly owned through Eurobridge Consulting B.V. | |
[16] | Indirectly owned through Lacock Holdings Limited. |
Organizational structure (De205
Organizational structure (Details Textual) | 12 Months Ended |
Mar. 31, 2018 | |
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | |
Organizational structures [Line Items] | |
Proportion of ownership interest in subsidiary | 51.33% |