Cover Page
Cover Page | 12 Months Ended |
Mar. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | DR REDDYS LABORATORIES LTD |
Entity Central Index Key | 0001135951 |
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 |
Entity Common Stock, Shares Outstanding | 166,172,082 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
American depositary shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | RDY |
Title of 12(b) Security | American depositary shares, each |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | ||
Current assets | |||||
Cash and cash equivalents | ₨ 2,053 | $ 27 | ₨ 2,228 | ||
Other investments | 23,687 | 314 | 22,529 | ||
Trade and other receivables | 50,278 | 667 | 39,869 | ||
Inventories | 35,066 | 465 | 33,579 | ||
Derivative financial instruments | 1,105 | 15 | 360 | ||
Tax assets | 4,379 | 58 | 3,400 | ||
Other current assets | 13,802 | 183 | 12,536 | ||
Total current assets | 130,370 | 1,729 | 114,501 | ||
Non-current assets | |||||
Property, plant and equipment | 52,332 | 694 | 54,088 | ||
Goodwill | 3,994 | 53 | 3,902 | ||
Other intangible assets | 27,659 | 367 | 44,367 | ||
Trade and other receivables | 1,737 | 23 | 113 | ||
Investment in equity accounted investees | 2,763 | 37 | 2,529 | ||
Other investments | 328 | 4 | 813 | ||
Deferred tax assets | 12,214 | 162 | 4,168 | ||
Other non-current assets | 844 | 11 | 946 | ||
Total non-current assets | 101,871 | 1,351 | 110,926 | ||
Total assets | 232,241 | 3,081 | 225,427 | ||
Current liabilities | |||||
Trade and other payables | 16,659 | 221 | 14,553 | ||
Short-term borrowings | 16,441 | 218 | 12,125 | ||
Long-term borrowings, current portion | 4,266 | 57 | 4,256 | ||
Provisions | 3,800 | 50 | 4,166 | ||
Tax liabilities | 573 | 8 | 181 | ||
Derivative financial instruments | 1,602 | 21 | 68 | ||
Bank overdraft | 91 | 1 | 0 | ||
Other current liabilities | 29,382 | 390 | 24,351 | ||
Total current liabilities | 72,814 | 966 | 59,700 | ||
Non-current liabilities | |||||
Long-term borrowings | 1,304 | 17 | 22,000 | ||
Deferred tax liabilities | 275 | 4 | 610 | ||
Provisions | 54 | 1 | 52 | ||
Other non-current liabilities | 2,806 | 37 | 2,868 | ||
Total non-current liabilities | 4,439 | 59 | 25,530 | ||
Total liabilities | 77,253 | 1,025 | 85,230 | ||
Equity | |||||
Share capital | 831 | 11 | 830 | ||
Treasury shares | (1,006) | [1] | (13) | (535) | [1] |
Share premium | 8,495 | 113 | 8,211 | ||
Share-based payment reserve | 1,233 | 16 | 990 | ||
Capital redemption reserve | 173 | 2 | 173 | ||
Retained earnings | 144,247 | 1,913 | 128,646 | ||
Other components of equity | 1,015 | 13 | 1,882 | ||
Total equity | 154,988 | 2,056 | 140,197 | ||
Total liabilities and equity | ₨ 232,241 | $ 3,081 | ₨ 225,427 | ||
[1] | Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme, 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance to eligible employees upon exercise of stock options thereunder. During the year ended March 31, 2020, an aggregate of 1,150 equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2018. All of the options exercised had an exercise price of Rs.2,607 per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the “share based payment reserve” was transferred to “share premium” in the consolidated statements of changes in equity.In addition, any difference between the carrying amount of treasury shares and the consideration received was recognized in the “share premium”. As at March 31, 2020 and 2019, the ESOS Trust had outstanding 395,950 and 217,976 shares, respectively, which it purchased from the secondary market for an aggregate consideration of Rs.1,006 and Rs.535, respectively. Refer to Note 28 of these financial statements for further details on the Dr. Reddy’s Employees Stock Option Scheme, 2018. |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨)₨ / shares | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019INR (₨)₨ / shares | Mar. 31, 2018INR (₨)₨ / shares | ||||
Analysis of income and expense [abstract] | |||||||
Revenues | ₨ 174,600 | $ 2,316 | [1],[2] | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] |
Cost of revenues | 80,591 | 1,069 | 70,421 | 65,724 | |||
Gross profit | 94,009 | 1,247 | 83,430 | 76,304 | |||
Selling, general and administrative expenses | 50,129 | 665 | 48,680 | 46,857 | |||
Research and development expenses | 15,410 | 204 | 15,607 | 18,265 | |||
Impairment of non-current assets | 16,767 | 222 | 210 | 53 | |||
Other income, net | (4,290) | (57) | (1,955) | (788) | |||
Total operating expenses | 78,016 | 1,035 | 62,542 | 64,387 | |||
Results from operating activities (A) | 15,993 | 212 | 20,888 | 11,917 | |||
Finance income | 2,461 | 33 | 2,280 | 2,897 | |||
Finance expense | (983) | (13) | (1,163) | (817) | |||
Finance income, net (B) | 1,478 | 20 | 1,117 | 2,080 | |||
Share of profit of equity accounted investees, net of tax (C) | 561 | 7 | 438 | 344 | |||
Profit before tax [(A)+(B)+(C)] | 18,032 | 239 | 22,443 | 14,341 | |||
Tax (expense)/benefit, net | 1,466 | 19 | (3,648) | (4,535) | |||
Profit for the year | ₨ 19,498 | $ 259 | ₨ 18,795 | ₨ 9,806 | |||
Earnings per share: | |||||||
Basic earnings per share of Rs.5/- each | (per share) | ₨ 117.63 | $ 1.56 | ₨ 113.28 | ₨ 59.13 | |||
Diluted earnings per share of Rs.5/- each | (per share) | ₨ 117.40 | $ 1.56 | ₨ 113.09 | ₨ 59 | |||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Statement of comprehensive income [abstract] | ||||
Profit for the year | ₨ 19,498 | $ 259 | ₨ 18,795 | ₨ 9,806 |
Items that will not be reclassified to the consolidated income statement: | ||||
Changes in the fair value of financial instruments | (469) | (6) | (403) | 0 |
Actuarial gains on post-employment benefit obligations | 57 | 1 | 10 | 39 |
Tax impact on above items | (22) | 0 | (414) | (12) |
Total of items that will not be reclassified to the consolidated income statement | (434) | (6) | (807) | 27 |
Items that will be reclassified subsequently to the consolidated income statement: | ||||
Changes in fair value of financial instruments | (7) | 0 | 0 | (5,160) |
Foreign currency translation adjustments | 311 | 4 | (53) | (32) |
Foreign currency translation reserve re-classified to the income statement on disposal of foreign operation | 0 | 0 | (113) | 0 |
Effective portion of changes in fair value of cash flow hedges, net | (951) | (13) | 180 | (82) |
Tax impact on above items | 232 | 3 | (55) | 1,394 |
Total of items that will be reclassified subsequently to the consolidated income statement | (415) | (6) | (41) | (3,880) |
Other comprehensive loss for the year, net of tax | (849) | (11) | (848) | (3,853) |
Total comprehensive income for the year | ₨ 18,649 | $ 247 | ₨ 17,947 | ₨ 5,953 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ₨ in Millions, $ in Millions | INR (₨) | USD ($) | Share capital[member]INR (₨) | Share capital[member]USD ($) | Share premium [member]INR (₨) | Share premium [member]USD ($) | Treasury shares [member]INR (₨) | Treasury shares [member]USD ($) | Share based payments reserve [member]INR (₨) | Share based payments reserve [member]USD ($) | Fair value reserve [Member]INR (₨) | [1] | Fair value reserve [Member]USD ($) | [1] | Foreign currency translation reserve [member]INR (₨) | Foreign currency translation reserve [member]USD ($) | Hedging reserve [member]INR (₨) | Hedging reserve [member]USD ($) | Capital redemption reserve [member]INR (₨) | Capital redemption reserve [member]USD ($) | Actuarial gains/ (losses) [member]INR (₨) | Actuarial gains/ (losses) [member]USD ($) | Retained earnings [member]INR (₨) | Retained earnings [member]USD ($) | |||
Beginning Balance at Mar. 31, 2017 | ₨ 124,044 | ₨ 829 | ₨ 7,359 | ₨ 0 | ₨ 998 | ₨ 2,744 | ₨ 4,233 | ₨ 86 | ₨ 173 | ₨ (429) | ₨ 108,051 | ||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||
Profit for the year | 9,806 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9,806 | ||||||||||||||||
Net change in fair value of available for sale financial instruments, net of tax expense/(benefit) | (3,790) | 0 | 0 | 0 | 0 | (3,790) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Foreign currency translation adjustments | (49) | 0 | 0 | 0 | 0 | 0 | (49) | 0 | 0 | 0 | 0 | ||||||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax benefit | (41) | 0 | 0 | 0 | 0 | 0 | 0 | (41) | 0 | 0 | 0 | ||||||||||||||||
Actuarial gain on post-employment benefit obligations, net of tax expense | 27 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27 | 0 | ||||||||||||||||
Total comprehensive income for the year | 5,953 | 0 | 0 | 0 | 0 | (3,790) | (49) | (41) | 0 | 27 | 9,806 | ||||||||||||||||
Contributions and distributions | |||||||||||||||||||||||||||
Issue of equity shares on exercise of options | 1 | 1 | 431 | 0 | (431) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Share-based payment expense | 454 | 0 | 0 | 0 | 454 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Dividend paid (including corporate dividend tax) | (3,992) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3,992) | ||||||||||||||||
Total contributions and distributions | (3,537) | 1 | 431 | 0 | 23 | 0 | 0 | 0 | 0 | 0 | (3,992) | ||||||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total transactions with owners of the Company | (3,537) | 1 | 431 | 0 | 23 | 0 | 0 | 0 | 0 | 0 | (3,992) | ||||||||||||||||
Ending Balance at Mar. 31, 2018 | 126,460 | 830 | 7,790 | 0 | 1,021 | (1,046) | 4,184 | 45 | 173 | (402) | 113,865 | ||||||||||||||||
Adjustment on account of transition to IFRS 9 at Mar. 31, 2018 | [2] | (62) | 0 | 0 | 0 | 0 | (50) | 0 | 0 | 0 | 0 | (12) | |||||||||||||||
Adjusted balance as of April 1, 2018 at Mar. 31, 2018 | 126,398 | 830 | 7,790 | 0 | 1,021 | (1,096) | [3] | 4,184 | 45 | 173 | (402) | 113,853 | |||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||
Profit for the year | 18,795 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18,795 | ||||||||||||||||
Net change in fair value of equity instruments | (814) | 0 | 0 | 0 | 0 | (814) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Foreign currency translation adjustments | [4] | (152) | 0 | 0 | 0 | 0 | 0 | (152) | 0 | 0 | 0 | 0 | |||||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax benefit | 111 | 0 | 0 | 0 | 0 | 0 | 0 | 111 | 0 | 0 | 0 | ||||||||||||||||
Actuarial gain on post-employment benefit obligations, net of tax expense | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7 | 0 | ||||||||||||||||
Total comprehensive income for the year | 17,947 | 0 | 0 | 0 | 0 | (814) | (152) | 111 | 0 | 7 | 18,795 | ||||||||||||||||
Contributions and distributions | |||||||||||||||||||||||||||
Issue of equity shares on exercise of options | 0 | 0 | [5] | 420 | 0 | (420) | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Share-based payment expense | 389 | 0 | 0 | 0 | 389 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Purchase of treasury shares, net | (535) | 0 | 0 | (535) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Dividend paid (including corporate dividend tax) | (4,002) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4,002) | ||||||||||||||||
Total contributions and distributions | (4,148) | 0 | 420 | (535) | (31) | 0 | 0 | 0 | 0 | 0 | (4,002) | ||||||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total transactions with owners of the Company | (4,148) | 0 | 420 | (535) | (31) | 0 | 0 | 0 | 0 | 0 | (4,002) | ||||||||||||||||
Ending Balance at Mar. 31, 2019 | 140,197 | 830 | 8,210 | (535) | 990 | (1,910) | 4,032 | 156 | 173 | (395) | 128,646 | ||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||
Profit for the year | 19,498 | $ 259 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19,498 | |||||||||||||||
Net change in fair value of equity and debt instruments | (476) | 0 | 0 | 0 | 0 | (495) | 0 | 0 | 0 | 0 | 19 | [6] | |||||||||||||||
Foreign currency translation adjustments | 311 | 0 | 0 | 0 | 0 | 0 | 311 | 0 | 0 | 0 | 0 | ||||||||||||||||
Effective portion of changes in fair value of cash flow hedges, net of tax benefit | (719) | 0 | 0 | 0 | 0 | 0 | 0 | (719) | 0 | 0 | 0 | ||||||||||||||||
Actuarial gain on post-employment benefit obligations, net of tax expense | 35 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35 | 0 | ||||||||||||||||
Total comprehensive income for the year | 18,649 | 247 | 0 | 0 | 0 | 0 | (495) | (311) | (719) | 0 | 35 | 19,517 | |||||||||||||||
Contributions and distributions | |||||||||||||||||||||||||||
Issue of equity shares on exercise of options | 11 | 1 | 285 | 3 | (278) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Share-based payment expense | 521 | 0 | 0 | 521 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Purchase of treasury shares, net | (474) | 0 | 0 | (474) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Dividend paid (including corporate dividend tax) | (3,916) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3,916) | |||||||||||||||||
Total contributions and distributions | (3,858) | 1 | 285 | (471) | 243 | 0 | 0 | 0 | 0 | 0 | (3,916) | ||||||||||||||||
Changes in ownership interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total transactions with owners of the Company | (3,858) | 1 | 285 | (471) | 243 | 0 | 0 | 0 | 0 | 0 | (3,916) | ||||||||||||||||
Convenience translation into U.S.$ (See note 2(d)) | $ | 2,056 | $ 11 | $ 113 | $ (13) | $ 16 | $ (32) | $ 58 | $ (8) | $ 2 | $ (5) | $ 1,913 | ||||||||||||||||
Ending Balance at Mar. 31, 2020 | ₨ 154,988 | $ 2,056 | ₨ 831 | ₨ 8,495 | ₨ (1,006) | ₨ 1,233 | ₨ (2,405) | ₨ 4,343 | ₨ (563) | ₨ 173 | ₨ (360) | ₨ 144,247 | |||||||||||||||
[1] | Represents mark to market gain or loss on financial assets classified as fair value through other comprehensive income (“FVTOCI”). Depending on the category and type of the financial asset, the mark to market gain or loss is either reclassified to the income statement or to retained earnings upon disposal of the investment. | ||||||||||||||||||||||||||
[2] | Consists of mark to market gains on mutual funds amounting to Rs.50, offset by an impairment loss of Rs.62 on trade receivables. The net impact of Rs.12 was recognized in retained earnings. | ||||||||||||||||||||||||||
[3] | Represents mark to market gain or loss on available-for-sale financial instruments (under IAS 39) recognized in other comprehensive income (“OCI”). The amount will be retained in OCI and will be re-classified to retained earnings only on disposal of these investments. | ||||||||||||||||||||||||||
[4] | Includes gain of Rs.113 re-classified from foreign currency translation reserve to the income statement on disposal of a foreign operation. | ||||||||||||||||||||||||||
[5] | Rounded off to nearest million. | ||||||||||||||||||||||||||
[6] | Represents gain on disposal of financial instruments classified as FVTOCI instruments re-classified to retained earnings. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of changes in equity [abstract] | |||
Tax on changes in fair value of equity and debt instruments | ₨ 0 | ₨ (411) | ₨ 1,370 |
Tax effect on Foreign currency translation adjustments | 0 | 14 | (17) |
Tax effect on effective portion of change in fair value of cash flow hedges | 232 | (69) | 41 |
Tax effect on actuarial gain on post-employment benefit obligations | ₨ (22) | ₨ (3) | ₨ (12) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||
Cash flows from/(used in) operating activities: | |||||
Profit for the year | ₨ 19,498 | $ 259 | ₨ 18,795 | ₨ 9,806 | |
Adjustments for: | |||||
Income tax expense/(benefit) | (1,466) | (19) | 3,648 | 4,535 | |
Fair value changes and profit on sale of mutual funds | (929) | (12) | (773) | (2,270) | |
Depreciation and amortization | 12,472 | 165 | 12,190 | 11,710 | |
Impairment of non-current assets | 16,767 | 222 | 210 | 53 | |
Allowance for credit losses (on trade receivables and other advances) | 190 | 3 | 420 | 155 | |
Loss/(gain) on sale/disposal of property, plant and equipment and other intangible assets, net | 68 | 1 | (1,264) | 55 | |
Share of profit of equity accounted investees | (561) | (7) | (438) | (344) | |
Foreign exchange gain, net | (2,168) | (29) | (1,588) | (296) | |
Interest expense, net | 95 | 1 | 119 | 248 | |
Equity settled share-based payment expense | 521 | 7 | 389 | 454 | |
Dividends income | (5) | 0 | 0 | 0 | |
Changes in operating assets and liabilities: | |||||
Trade and other receivables | (12,446) | (165) | 1,797 | (2,097) | |
Inventories (Refer to Note 9 for inventory write downs) | (1,487) | (20) | (4,480) | (287) | |
Trade and other payables | 1,576 | 21 | 398 | 2,501 | |
Other assets and other liabilities, net | 4,821 | 64 | 4,122 | (3,433) | |
Cash generated from operations | 36,946 | 490 | 33,545 | 20,790 | |
Income tax paid, net | (7,105) | (94) | (4,841) | (2,761) | |
Net cash from operating activities | 29,841 | 396 | 28,704 | 18,029 | |
Cash flows from/(used in) investing activities: | |||||
Expenditure on property, plant and equipment | (4,846) | (64) | (6,955) | (9,291) | |
Proceeds from sale of property, plant and equipment | 131 | 2 | 1,265 | 139 | |
Expenditures on other intangible assets | (1,269) | (17) | (1,421) | (1,752) | |
Proceeds from sale of other intangible assets | 259 | 3 | 885 | 0 | |
Purchase of other investments | (111,918) | (1,485) | (78,573) | (68,429) | |
Proceeds from sale of other investments | 111,704 | 1,482 | 76,291 | 64,038 | |
Dividends received from equity accounted investees | 392 | 5 | 0 | 0 | |
Interest and dividend received | 624 | 8 | 781 | 412 | |
Net cash used in investing activities | (4,923) | (65) | (7,727) | (14,883) | |
Cash flows from/(used in) financing activities: | |||||
Proceeds from issuance of equity shares (including treasury shares) | 4 | 0 | 0 | [1] | 1 |
Purchase of treasury shares | (474) | (6) | (535) | 0 | |
Proceeds from/(repayment of) short-term borrowings, net (Refer to Note 16) | 4,235 | 56 | (15,126) | (18,025) | |
(Repayment of)/proceeds from long-term borrowings, net (Refer to Note 16) | (22,918) | (304) | 0 | 19,064 | |
Payment of principal portion of lease liabilities (Refer to Note 16) | (482) | (6) | (56) | (157) | |
Dividend paid (including corporate dividend tax) | (3,916) | (52) | (4,002) | (3,992) | |
Interest paid | (1,608) | (21) | (1,607) | (1,331) | |
Net cash used in financing activities | (25,159) | (334) | (21,326) | (4,440) | |
Net decrease in cash and cash equivalents | (241) | (3) | (349) | (1,294) | |
Effect of exchange rate changes on cash and cash equivalents | (25) | 0 | 35 | 57 | |
Cash and cash equivalents at the beginning of the year | 2,228 | 30 | 2,542 | 3,779 | |
Cash and cash equivalents at the end of the year | ₨ 1,962 | $ 26 | ₨ 2,228 | ₨ 2,542 | |
[1] | Rounded off to nearest million. |
Reporting entity
Reporting entity | 12 Months Ended |
Mar. 31, 2020 | |
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 and having its registered office 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 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 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, 2020 | |
Basis of preparation of financial statements [Abstract] | |
Basis of preparation of financial statements | 2. Basis of preparation of financial statements a. Statement of compliance These consolidated financial statements as at and for the year ended March 31, 2020 comply in all material aspects 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 by 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, 2020. These consolidated financial statements were authorized for issuance by the Company’s Board of Directors on June 14 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; · financial assets are measured either at fair value or at amortized cost, depending on the classification; · employee defined benefit assets/(liabilities) are recognized as the net total of the fair value of plan assets, adjusted for actuarial gains/(losses) and the present value of the defined benefit obligation; · long-term borrowings are measured at amortized cost using the effective interest rate method; · share-based payments are measured at fair value; · investments in joint ventures are accounted for using the equity method; and · right-of-use the assets are recognized at the present value of lease payments that are not paid at that date. This amount is adjusted for any lease payments made at or before the commencement date, lease incentives received and initial direct costs, incurred, if any. 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. 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, 2020 have been translated into U.S. dollars at the certified foreign exchange rate of U.S.$1.00 = Rs.75.39, as published by the Federal Reserve Board of Governors on March 31, 2020. 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 Registered Public Accounting Firm. 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 2(c) — Assessment of functional currency; · Notes 3(a) and 14 — Evaluation of joint arrangements; · Notes 3(c), 30 and 31 — Financial instruments; · Notes 3(d) — Business combinations; · Notes 3(e) and (f) — Useful lives of property, plant and equipment and intangible assets; · Notes 3(g) – determination of cost for right-of-use assets and lease term; · Notes 3(h) and 9— Valuation of inventories; · Notes 3(i), 11, 12 and 13— Measurement of recoverable amounts of cash-generating units; · Notes 3 (j) and 27 — Assets and obligations relating to employee benefits; · Notes 3 (j) and 28— Share-based payments; · Note 3(k) — Provisions and other accruals; · Note 3(l) — Measurement of transaction price in a revenue transaction (Sales returns, rebates and chargeback provisions); · Note 3(o) — Evaluation of recoverability of deferred tax assets, and estimation of income tax payable and income tax expense in relation to uncertain tax position; and · Note 32 — Contingencies f. Current and non-current classification All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in IAS 1, “Presentation of financial statements” Assets: An asset is classified as current when it satisfies any of the following criteria: a) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is expected to be realized within twelve months after the reporting date; or d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Liabilities: A liability is classified as current when it satisfies any of the following criteria: a) it is expected to be settled in the Company’s normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is due to be settled within twelve months after the reporting date; or d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current assets and liabilities include the current portion of non-current assets and liabilities respectively. All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are always disclosed as non-current. g. Prior period Prior period amounts have been reclassified to conform to the current year classification. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Summary Of Significant Accounting Policies Explanatory [Abstract] | |
Significant accounting policies | 3. Significant accounting policies New Standards adopted by the Company IFRS 16, “ Leases” In January 2016, the IASB issued a new standard, IFRS 16, “Leases” “Leases”) Impact of the implementation of IFRS 16 on the Company: The Company adopted IFRS 16 effective as of April 1, 2019. IFRS 16, “Leases” Upon adoption of the new standard, a portion of the annual operating lease costs, which was previously fully recognized as a functional expense, is recorded as interest expense. In addition, the portion of the lease payments which represents the reduction of the lease liability is recognized in the statements of cash flows as an outflow from financing activities, which was previously fully recognized as an outflow from operating activities. The Company implemented the new standard on April 1, 2019, and applied the modified retrospective method, with right-of-use assets measured at an amount equal to the lease liability, adjusted by the amount of the prepaid or accrued lease payments relating to those leases recognized in the statements of financial position immediately before the date of initial application and will not restate prior years. The Company elected to use the transition practical expedient that allows the standard to be applied only to contracts previously identified under IAS 17, “Leases” “Determining Whether an Arrangement Contains a Lease” The Company also elected to use the recognition exemption for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”) and lease contracts for which the underlying asset is of low value (“low value assets”). On April 1, 2019, the Company recognized lease liabilities of Rs.1,335 (presented as part of borrowings) and right-of-use assets of Rs.1,153, after adjustments of Rs.182 towards lease incentives and other items related to the lease agreement as at March 31, 2019 (presented as part of Property, plant and equipment). Consequently, the Company has recognized an amount of Rs.491 in depreciation expense and Rs.230 in finance costs for the year ended March 31, 2020. Adoption of the new standard had no impact upon leases for which the Company is a lessor. IFRIC 23, “Uncertainty over Income Tax Treatments” On June 7, 2017, the IFRS Interpretations Committee issued IFRIC 23, “Uncertainty over Income Tax Treatments” “Income Taxes” 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 and tax rates. The Company applied the interpretation effective April 1, 2019 using the modified retrospective approach. The adoption of IFRIC 23 did not have any material impact on the consolidated financial statements of the Company. a. 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. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity and balance sheet respectively. 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. With respect to joint operations, the Company recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. Investments in 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. Furthermore, the financial statements of the joint ventures are prepared for the same reporting period as of 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. Changes in ownership 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, depending on the level of influence retained, it is accounted for as an equity-accounted investee or as an investment measured at fair value through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) under IFRS 9, “Financial Instruments” 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”): - certain debt instruments classified as measured at fair value through other comprehensive income; - certain equity instruments where the Company had made an irrevocable election to present in other comprehensive income subsequent changes in the fair value; - 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. c. Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Accounting policies relating to financial instruments for periods after March 31, 2018 The Company’s accounting policies relating to financial instruments for periods after March 31, 2018 are as follows: Financial assets Initial recognition and measurement All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (e.g., regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Trade receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components, in which case they are recognized at fair value. The Company’s trade receivables do not contain any significant financing component and hence are measured at the transaction price measured under IFRS 15. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: · Debt instruments at amortized cost; · Debt instruments at FVTOCI; · Debt instruments, derivatives and equity instruments at FVTPL; and · Equity instruments measured at FVTOCI. Debt instruments at amortized cost A “debt instrument” is measured at the amortized cost if both the following conditions are met: a) the asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and b) contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method and are subject to impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on de-recognition is recognized directly in the consolidated income statement and presented in other income/(losses),net. The losses arising from impairment are recognized in the consolidated income statement. This category generally applies to trade and other receivables. Debt instrument at FVTOCI A “debt instrument” is classified as at the FVTOCI if both of the following criteria are met: a) the objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets; and b) the asset’s contractual cash flows represent SPPI. Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (“OCI”). However, the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the consolidated income statement. On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified to the consolidated income statement. Interest earned while holding a FVTOCI debt instrument is reported as interest income using the effective interest rate method. Debt instrument at FVTPL FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as an “accounting mismatch”). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the consolidated income statement. Equity investments 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 at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made upon initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to the consolidated income statement, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity investments designated as FVTOCI are not subject to impairment assessment. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the consolidated income statement. De-recognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s consolidated balance sheet) when: · the rights to receive cash flows from the asset have expired; or · Both (1) the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and (2) either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Impairment of trade receivables and other financial assets In accordance with IFRS 9, the Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on trade receivables or any contractual right to receive cash or another financial asset. For this purpose, the Company follows a “simplified approach” for recognition of impairment loss allowance on the trade receivable balances. The application of this 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. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on 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. Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the consolidated income statement. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains or losses are not subsequently transferred to the consolidated income statement. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the consolidated income statement. The Company has not designated any financial liability as fair value through profit and loss. Loans and borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in consolidated income statement over the period of the borrowings using the effective interest method. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the consolidated income statement when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate . The effective interest rate amortization is included as finance costs in the consolidated income statement. De-recognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated income statement. 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, Swiss francs, South African rands, Kazakhstan tenges, Romanian new leus and Euros, and foreign currency debt in U.S. dollars, Russian roubles, Ukrainian hryvnias and Euros. The Company uses derivative financial instruments such as foreign exchange forward contracts, option contracts and swap contracts 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. Derivatives are classified as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Hedges of highly probable forecasted transactions The Company classifies its derivative financial instruments that hedge foreign currency risk associated with highly probable forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded in the Company’s hedging reserve as a component of equity and re-classified to the consolidated income statement as part of the hedged item in the period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is recorded in the consolidated income statement as finance costs 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 forecasted transactions. Accordingly, the Company applies cash flow hedge accounting to such relationships. Re-measurement gain or loss on such non-derivative financial liabilities is recorded in the Company’s hedging reserve as a component of equity and reclassified to the consolidated income statement as part of the hedged item in the period corresponding to the occurrence of the forecasted transactions. 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 other comprehensive income, remains there until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income 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 in the consolidated income statement. If the hedged item is derecognized, the unamortized fair value is recognized immediately 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. 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. Accounting policies relating to financial instruments for periods ending on or prior to March 31, 2018 The Company’s accounting policies relating to financial instruments for periods ending on or prior to March 31, 2018 are as follows: 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 the 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 |
Determination of fair values
Determination of fair values | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Determination of fair values | 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 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, 2020 | |
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 Co-Chairman and Managing Director is the CODM of the Company. The Company’s reportable operating segments are as follows: • Global Generics; • Pharmaceutical Services and Active Ingredients (“PSAI”); • Proprietary Products; and • Others. Global Generics. Pharmaceutical Services and Active Ingredients Proprietary Products. Others. The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Company’s consolidated financial statements. Segment information: For the Year Ended March 31, Reportable segments Global Generics PSAI Proprietary Products 2020 2019 2018 2020 2019 2018 2020 2019 2018 Revenues (1) (2) Rs. 138,123 Rs. 122,903 Rs. 114,014 Rs. 25,747 Rs. 24,140 Rs. 21,992 Rs. 7,949 Rs. 4,750 Rs. 4,245 Gross profit Rs. 78,449 Rs. 71,924 Rs. 67,190 Rs. 6,190 Rs. 6 ,128 Rs. 4,446 Rs. 7,744 Rs. 4,182 Rs. 3,799 Selling, general and administrative expenses Research and development expenses Impairment of non-current assets Other income, net Results from operating activities Finance income, net Share of profit of equity accounted investees, net of tax Profit before tax Tax (expense)/benefit, net Profit for the year [Continued on next page] [Continued from above table, first column repeated] Segment information: For the Year Ended March 31, Reportable segments Others Total 2020 2019 2018 2020 2019 2018 Revenues (1) (2) Rs. 2,781 Rs. 2,058 Rs. 1,777 Rs. 174,600 Rs. 153,851 Rs. 142,028 Gross profit Rs. 1,626 Rs. 1,196 Rs. 869 Rs. 94,009 Rs. 83,430 Rs. 76,304 Selling, general and administrative expenses 50,129 48,714 46,858 Research and development expenses 15,410 15,573 18,265 Impairment of non-current assets 16,767 210 52 Other income, net (4,290 ) (1,955 ) (788 ) Results from operating activities Rs. 15,993 Rs. 20,888 Rs. 11,917 Finance income, net 1,478 1,117 2,080 Share of profit of equity accounted investees, net of tax 561 438 344 Profit before tax Rs. 18,032 Rs. 22,443 Rs. 14,341 Tax (expense)/benefit, net 1,466 (3,648 ) (4,535 ) Profit for the year Rs. 19,498 Rs. 18,795 Rs. 9,806 (1) Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). (2) Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2020 2019 2018 Excise duty included in revenues - - Rs. 173 Analysis of revenues by geography: 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 2020 2019 2018 India Rs. 32,089 Rs. 28,804 Rs. 25,209 United States 76,028 69,299 68,124 Russia 16,900 15,299 12,610 Others 49,583 40,449 36,085 Rs. 174,600 Rs. 153,851 Rs. 142,028 Analysis of revenues within the Global Generics segment: An analysis of revenues by therapeutic areas in the Company’s Global Generics segment is given below: For the Year Ended March 31, 2020 2019 2018 Nervous System Rs. 26,825 Rs. 19,726 Rs. 17,347 Gastrointestinal 19,394 19,250 19,153 Oncology 18,245 18,357 16,999 Cardiovascular 14,729 15,106 16,501 Pain Management 13,808 13,806 12,898 Respiratory 10,433 8,130 6,205 Anti-Infective 9,402 7,073 6,557 Others 25,287 21,455 18,354 Total Rs. 138,123 Rs. 122,903 Rs. 114,014 Analysis of revenues within the PSAI segment: An analysis of revenues by therapeutic areas in the Company’s PSAI segment is given below: For the Year Ended March 31, 2020 2019 2018 Cardiovascular Rs. 8,567 Rs. 7,019 Rs. 6,191 Pain Management 5,073 3,364 3,228 Nervous System 2,797 2,741 2,331 Oncology 1,798 2,212 1,650 Dermatology 1,370 1,622 1,606 Anti-Infective 1,097 1,247 1,968 Others 5,045 5,935 5,018 Total Rs. 25,747 Rs. 24,140 Rs. 21,992 Analysis of assets by geography: 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 2020 2019 India Rs. 55,083 Rs. 57,205 Switzerland 18,204 33,536 United States 7,065 7,013 Germany 1,435 2,103 Others 5,010 5,241 Rs. 86,797 Rs. 105,098 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 2020 2019 India Rs. 5,519 Rs. 5,341 Switzerland 1,025 1,112 United States 241 206 Others 688 787 Rs. 7,473 Rs. 7,446 Analysis of depreciation and amortization, included in cost of revenues, by reportable segments: For the Year Ended March 31, 2020 2019 2018 Global Generics Rs. 3,666 Rs. 3,791 Rs. 3,606 PSAI 2,804 2,906 2,923 Proprietary Products - - - Others 71 71 66 Rs. 6,541 Rs. 6,768 Rs. 6,595 Information about major customers Revenues from two customers of the Company's Global Generics segment were Rs.14,164 and Rs.9,267, representing approximately 8% and 5%, respectively, of the Company’s total revenues for the year ended March 31, 2020. Revenues from two customers of the Company's Global Generics segment were Rs.10,639 and Rs.10,024, each representing approximately 7% of the Company’s total revenues for the year ended March 31, 2019. 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. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents Cash and cash equivalents consist of the following: As of March 31, 2020 2019 Cash on hand Rs. 2 Rs. 2 Balances with banks 1,807 2,102 Term deposits with banks (original maturities less than 3 months) 244 124 Cash and cash equivalents in the statement of financial position Rs. 2,053 Rs. 2,228 Bank overdrafts used for cash management purposes 91 - Cash and cash equivalents in the statement of cash flow Rs. 1962 Rs. 2,228 Restricted cash balances included above Balance in unclaimed dividend and debenture interest account Rs. 111 Rs. 112 Other restricted cash balances 15 12 |
Other investments
Other investments | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of investments other than investments accounted for using equity method [Abstract] | |
Other investments | 7. Other investments Other investments consist of investments in units of mutual funds, equity securities, bonds, market linked debentures, commercial paper and term deposits with banks (i.e., certificates of deposit having an original maturity period exceeding 3 months). The details of such investments as of March 31, 2020 and 2019 are as follows: As of March 31, 2020 As of March 31, 2019 Cost Unrealized gain/(loss) Fair value/ amortized cost (2) Cost Unrealized gain/(loss) Fair value/ amortized cost (2) Current portion In units of mutual funds Rs. 13,686 Rs. 146 Rs. 13,832 Rs. 15,933 Rs. 307 Rs. 16,240 In bonds 1,851 - 1,851 5,272 - 5,272 In commercial paper 967 - 967 459 - 459 In market linked debentures 2,000 (7 ) 1,993 - - - Term deposits with banks 5,044 5,044 558 558 Rs. 23,548 Rs. 139 Rs. 23,687 Rs. 22,222 Rs. 307 Rs. 22,529 Non-current portion In equity securities (1) Rs. 2,701 Rs. (2,397 ) Rs. 304 Rs. 2,703 Rs. (1,911 ) Rs. 792 Others 24 - 24 21 - 21 Rs. 2,725 Rs. (2,397 ) Rs. 328 Rs. 2,724 Rs. (1,911 ) Rs. 813 (1) Primarily represents the shares of Curis, Inc. Refer to Note 33 of these consolidated financial statements for further details. (2) Interest accrued but not due on bonds and debentures, commercial paper and term deposits with banks is included in other current assets. For the purpose of measurement, the aforesaid investments are classified as follows: Investments in units of mutual funds Fair value through profit and loss Investments in bonds, commercial paper, term deposits and others Amortized cost Investments in market linked debentures Fair value through other comprehensive income Investments in equity securities Fair value through other comprehensive income (on account of irrevocable option elected at time of transition) |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 8. Trade and other receivables As of March 31, 2020 2019 Current Trade and other receivables, gross Rs. 51,480 Rs. 41,041 Less: Allowance for credit losses (1,202 ) (1,172 ) Trade and other receivables, net Rs. 50,278 Rs. 39,869 Non-current Trade and other receivables, gross (1) Rs. 1,737 Rs. 113 Less: Allowance for credit losses - - Trade and other receivables, net Rs. 1,737 Rs. 113 (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. During the year ended March 31, 2019, the Company entered into an arrangement with a bank for the sale of its trade receivables. Under the arrangement, the Company sells to the bank certain of its trade receivables forming part of its Global Generics segment, on a non-recourse basis. The receivables sold were mutually agreed upon with the bank after considering the creditworthiness and contractual terms with the customer, including any gross to net adjustments (due to rebates, discounts etc.) from the contracted amounts. As a result, the receivables sold are generally lower than the total net amount of trade receivables. The Company has transferred substantially all the risks and rewards of ownership of such receivables sold to the bank, and accordingly, the same are derecognized in the statement of financial position. As on March 31, 2020 and 2019, the amount of trade receivables de-recognized pursuant to the aforesaid arrangement was Rs.9,049 (U.S.$120) and Rs.7,592 (U.S.$110), respectively. In accordance with IFRS 9, the Company uses 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 uses a provision matrix to compute the expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit losses from various customers. The details of changes in allowance for credit losses during the years ended March 31, 2020 and 2019, are as follows: For the Year Ended March 31, 2020 2019 Balance at the beginning of the year Rs. 1,172 Rs. 952 Adjustment on account of transition to IFRS 9 - 89 Adjusted balance at the beginning of the year Rs. 1,172 Rs. 1,041 Provision made during the year, net of reversals 154 371 Trade and other receivables written off & exchange differences (124 ) (240 ) Balance at the end of the year Rs. 1,202 Rs. 1,172 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2020 | |
Classes of current inventories [abstract] | |
Inventories | 9. Inventories Inventories consist of the following: As of March 31, 2020 2019 Raw materials Rs. 10,594 Rs. 8,920 Work-in-progress 6,806 7,201 Finished goods (includes stock-in-trade) 15,126 14,969 Packing materials, stores and spares 2,540 2,489 Rs. 35,066 Rs. 33,579 Details of inventories recognized in the consolidated income statement are as follows: For the Year Ended March 31, 2020 2019 2018 Raw materials, consumables and changes in finished goods and work in progress Rs. 51,892 Rs. 40,932 Rs. 32,410 Inventory write-downs (1) 3,652 4,016 2,946 (1) Following the Company’s decision to voluntarily recall all of its ranitidine medications sold in United States, due to confirmed contamination with N-Nitrosodimethylamine (“NDMA”) above levels established by the U.S. FDA, the Company recognized Rs.373 as inventory write downs of ranitidine during the year ended March 31, 2020. Furthermore, an amount of Rs.239 was recognized (as a reduction from revenue) as a provision for refund liabilities arising out of the Company’s recall decision. |
Other assets
Other assets | 12 Months Ended |
Mar. 31, 2020 | |
Assets [Abstract] | |
Other assets | 10. Other assets Other assets consist of the following: As of March 31, 2020 2019 Current Balances and receivables from statutory authorities (1) Rs. 4,445 Rs. 4,398 Export benefits receivable (2) 2,652 2,363 Prepaid expenses 950 951 Others (3) 5,755 4,824 Rs. 13,802 Rs. 12,536 Non-current Security deposits Rs. 613 Rs. 562 Others 231 384 Rs. 844 Rs. 946 (1) Balances and receivables from statutory authorities primarily consist of amounts recoverable towards the goods and service tax (“GST”), excise duty and value added tax, and from customs authorities of India. (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, security deposits, interest accrued but not due on investments, and claims receivable. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 11. Property, plant and equipment The following is a summary of the changes in carrying value of property, plant and equipment. Particulars Land Buildings Plant and Furniture, Vehicles Total Gross carrying value Balance as at April 1, 2018 Rs. 4,216 Rs. 22,441 Rs. 67,215 Rs. 5,544 Rs. 770 Rs. 100,186 Additions 3 1,476 6,002 707 125 8,313 Disposals (1) (2) (51 ) (892 ) (2,444 ) (541 ) (120 ) (4,048 ) Effect of changes in foreign exchange rates 24 81 167 7 - 279 Balance as at March 31, 2019 Rs. 4,192 Rs. 23,106 Rs. 70,940 Rs. 5,717 Rs. 775 Rs. 104,730 Balance as at April 1, 2019 Rs. 4,192 Rs. 23,106 Rs. 70,940 Rs. 5,717 Rs. 775 Rs. 104,730 Recognition of right of use asset on initial application of IFRS 16 - 723 2 28 400 1,153 Adjusted balance as at April 1, 2019 Rs. 4,192 Rs. 23,829 Rs. 70,942 Rs. 5,745 Rs. 1,175 Rs. 105,883 Additions 4 997 4,278 497 295 6,071 Disposals - (55 ) (706 ) (253 ) (179 ) (1,193 ) Effect of changes in foreign exchange rates (73 ) 185 353 (24 ) (80 ) 361 Balance as at March 31, 2020 Rs. 4,123 Rs. 24,956 Rs. 74,867 Rs. 5,965 Rs. 1,211 Rs. 111,122 Accumulated Depreciation Balance as at April 1, 2018 Rs. 38 Rs. 6,343 Rs. 38,985 Rs. 4,505 Rs. 374 Rs. 50,245 Depreciation for the year - 1,040 6,538 614 170 8,362 Impairment 12 59 17 1 - 89 Disposals (1)(2) (50 ) (612 ) (1,945 ) (523 ) (102 ) (3,232 ) Effect of changes in foreign exchange rates - 43 47 6 - 96 Balance as at March 31, 2019 Rs. - Rs. 6,873 Rs. 43,642 Rs. 4,603 Rs. 442 Rs. 55,560 Balance as at April 1, 2019 Rs. - Rs. 6,873 Rs. 43,642 Rs. 4,603 Rs. 442 Rs. 55,560 Depreciation for the year - 1,306 6,404 562 368 8,640 Impairment - - - - - - Disposals - (36 ) (667 ) (251 ) (158 ) (1,112 ) Effect of changes in foreign exchange rates - 65 223 (11 ) (54 ) 223 Balance as at March 31, 2020 Rs. - Rs. 8,208 Rs. 49,602 Rs. 4,903 Rs. 598 Rs. 63,311 Net carrying value As at April 1, 2018 Rs. 4,178 Rs. 16,098 Rs. 28,230 Rs. 1,039 Rs. 396 Rs. 49,941 As at March 31, 2019 Rs. 4,192 Rs. 16,233 Rs. 27,298 Rs. 1,114 Rs. 333 Rs. 49,170 Add: Capital-work-in-progress Rs. 4,918 Total as at March 31, 2019 Rs. 54,088 As at March 31, 2020 Rs. 4,123 Rs. 16,748 Rs. 25,265 Rs. 1,062 Rs. 613 Rs. 47,811 Add: Capital-work-in-progress Rs. 4,521 Total as at March 31, 2020 Rs. 52,332 (1) Consequent to the Company’s plan to dispose of certain non-current assets, these assets were measured at the lower of their carrying value and their fair value less costs to sell, and Rs.94 had been recognized as impairment loss for the three months ended June 30, 2018. During the three months ended September 30, 2018, the closing conditions were satisfied and the Company sold all of the issued and outstanding membership interests in Dr. Reddy’s Laboratories Tennessee, LLC and certain related assets. The sale resulted in a gain on disposal of Rs.110, which was recognized in the income statements under the heading “Other income, net” as gain on disposal of assets. The gain on disposal includes Rs.113 of foreign currency translation reserve reclassified to the income statements on disposal of foreign operations. (2) During the three months ended December 31, 2018, the Company sold one of its API manufacturing business units located in Jeedimetla, Hyderabad to Therapiva Private Limited. This sale was done on a slump sale basis (an Indian tax law concept which refers to the transfer of a business as a going concern without values being assigned to individual assets and liabilities), including all related property, plant and equipment, current assets, current liabilities, and transfer of employees. An amount of Rs.423 representing the profit on the sale of such business unit was included under the heading “Other income, net”. Capital commitments As of March 31, 2020 and 2019, the Company was committed to spend Rs.4,888 and Rs.2,495, 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, 2020 and 2019, the Company capitalized interest cost of Rs.52 and Rs.74, respectively, with respect to qualifying assets. The rate for capitalization of interest cost for the years ended March 31, 2020 and 2019 was approximately 4.22% and 3.21%, respectively. Assets acquired under finance leases Property, plant and equipment includes Rs.463 of assets acquired (net of accumulated depreciation) under finance leases as of March 31, 2019. Leases The Company has lease contracts for various items of plant and equipment, vehicles and other equipment used in its operations. Below are the carrying amounts of right-of-use assets recognized and the movements during the year. Particulars Land Buildings Plant and Furniture, fixtures and office equipment Vehicles Total Gross carrying value Balance as at April 1, 2019 Rs. 73 Rs. 840 Rs. 12 Rs. - Rs. 37 Rs. 962 Recognition of right of use asset on initial application of IFRS 16 - 723 2 28 400 1,153 Adjusted balance as at April 1, 2019 Rs. 73 Rs. 1,563 Rs. 14 Rs. 28 Rs. 437 Rs. 2,115 Additions - 87 3 17 146 253 Disposals - (1 ) - - (56 ) (57 ) Effect of changes in foreign exchange rates 5 39 1 - 3 48 Balance as at March 31, 2020 Rs. 78 Rs. 1,688 Rs. 18 Rs. 45 Rs. 530 Rs. 2,359 Accumulated Depreciation Balance as at April 1, 2019 Rs. - Rs. 454 Rs. 12 Rs. - Rs. 33 Rs. 499 Depreciation for the year - 267 1 13 210 491 Disposals - (1 ) - - (41 ) (42 ) Effect of changes in foreign exchange rates - 24 1 - (3 ) 22 Balance as at March 31, 2020 Rs. - Rs. 744 Rs. 14 Rs. 13 Rs. 199 Rs. 970 Net carrying value As at March 31, 2020 Rs. 78 Rs. 944 Rs. 4 Rs. 32 Rs. 331 Rs. 1,389 The following are the amounts recognized in income statement: For the Year Ended March 31, 2020 Depreciation expense of right-of-use assets Rs. 491 Interest expense on lease liabilities 230 The Company had total cash outflows for leases of Rs.972 during the year ended March 31, 2020. The maturity analysis of lease liabilities are disclosed in Note 16 of these consolidated financial statements. |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Goodwill | 12. 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. The following table presents the changes in goodwill during the years ended March 31, 2020 and 2019: As of March 31, 2020 2019 Opening balance, gross Rs. 20,176 Rs. 20,219 Effect of translation adjustments 102 (43 ) Impairment loss (1) (16,284 ) (16,274 ) Closing balance Rs. 3,994 Rs. 3,902 (1) The impairment loss of Rs.16,284 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. The carrying amount of goodwill (other than those arising upon investment in a joint venture) was allocated to the cash generating units as follows: As of March 31, 2020 2019 PSAI-Active Pharmaceutical Operations Rs. 997 Rs. 997 Global Generics-Complex Injectables 1,372 1,287 Global Generics-North America Operations 1,021 1,005 Global Generics-Branded Formulations 491 491 Others 113 122 Rs. 3,994 Rs. 3,902 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 6.34% to 14.00% for various cash generating units. The pre-tax discount rates range from 8.80% to 18.12%. 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, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Other intangible assets | 13. Other intangible assets The following is a summary of changes in the carrying value of intangible assets: Product Customer Others Total Gross carrying value Balance as at April 1, 2018 Rs. 82,187 Rs. 357 Rs. 2,997 Rs. 85,541 Additions 1,542 - 602 2,144 Disposals/De-recognitions (1) (3,219 ) (357 ) - (3,576 ) Effect of changes in foreign exchange rates 1,461 - 1 1,462 Balance as at March 31, 2019 Rs. 81,971 Rs. - Rs. 3,600 Rs. 85,571 Balance as at April 1, 2019 Rs. 81,971 Rs. - Rs. 3,600 Rs. 85,571 Additions 1,641 - 165 1,806 Disposals/De-recognitions (814 ) - (1 ) (815 ) Effect of changes in foreign exchange rates 4,532 - 2 4,534 Balance as at March 31, 2020 Rs. 87,330 Rs. - Rs. 3,766 Rs. 91,096 Amortization/impairment loss Balance as at April 1, 2018 Rs. 39,289 Rs. 357 Rs. 1,230 Rs. 40,876 Amortization for the year 3,432 - 396 3,828 Impairment loss 116 - - 116 Disposals/De-recognitions (1) (2,815 ) (357 ) - (3,172 ) Effect of changes in foreign exchange rates (445 ) - 1 (444 ) Balance as at March 31, 2019 Rs. 39,577 Rs. - Rs. 1,627 Rs. 41,204 Balance as at April 1, 2019 Rs. 39,577 Rs. - Rs. 1,627 Rs. 41,204 Amortization for the year 3,554 - 278 3,832 Impairment loss 16,757 - - 16,757 Disposals/De-recognitions (749 ) - (1 ) (750 ) Effect of changes in foreign exchange rates 2,392 - 2 2,394 Balance as at March 31, 2020 Rs. 61,531 Rs. - Rs. 1,906 Rs. 63,437 Net carrying value As at April 1, 2018 Rs. 42,898 Rs. - Rs. 1,767 Rs. 44,665 As at March 31, 2019 Rs. 42,394 Rs. - Rs. 1,973 Rs. 44,367 As at March 31, 2020 Rs. 25,799 Rs. - Rs. 1,860 Rs. 27,659 (1) Gain on disposal of assets for the year ended March 31, 2019 includes an amount of Rs.682 representing the profit on sale of intangible assets forming part of the Company’s Proprietary Products segment. Details of significant separately acquired intangible assets as at March 31, 2020 are as follows: Particulars of the asset Acquired from Carrying cost ANDAs Teva and an affiliate of Allergan Rs. 9,813 Select portfolio of dermatology, respiratory and pediatric assets UCB India Private Limited and affiliates 5,072 Intellectual property rights relating to PPC-06 (tepilamide fumarate) Xenoport, Inc 4,019 Habitrol ® brand Novartis Consumer Health Inc. 1,936 Commercialization rights for an anti-cancer biologic agent Eisai Company Limited 1,838 Over the counter product brands Ducere Pharma LLC 731 Beta brand 3i Group plc 578 Various ANDAs Gland Pharma Limited 284 Interest capitalization During the years ended March 31, 2020 and 2019, the Company capitalized interest cost of Rs.674 and Rs.655, respectively, with respect to certain qualifying assets. The rate for capitalization of interest cost for the years ended March 31, 2020 and 2019 ranged from 2.04% to 4.60% and from 1.98% to 4.12%, respectively. In-process research and development assets (“IPR&D”) 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, 2020 2019 Opening balance Rs. 24,610 Rs. 27,027 Add Additions during the year (1) 950 1,171 Less Capitalizations during the year (2) (2,530 ) (5,445 ) Less: Impairments during the year (13,379 ) - Effect of changes in exchange rates 1,336 1,857 Closing balance Rs. 10,987 Rs. 24,610 (1) During the year ended March 31, 2020, the Company acquired a portfolio of approved, non-marketed Abbreviated New Drug Applications (“ANDAs”) in the United States from Teva for a total consideration of Rs.277 (U.S.$4). The Company recognized these ANDAs acquired as product related intangibles. (2) During the year ended March 31, 2020, the products ramelton was available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. During the year ended March 31, 2019, the products buprenorphine and naloxone sublingual film and tobramycin were available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. Impairment losses recorded for the year ended March 31, 2020 Total impairment charges for the year ended March 31, 2020 were Rs.16,757 which were recorded in impairment of non-current assets in the consolidated income statement, of which Rs.11,137 was attributable to impairment of gNuvaring and the balance of Rs.5,620 was attributable to other product related intangibles. Impairment of gNuvaring During the year ended March 31, 2020, there were significant changes to the generics market for Ethinyl estradiol / Ethenogestral vaginal ring (a generic equivalent to Nuvaring®), one of the 8 ANDAs acquired from Teva in June 2016. The changes include the launches by competitors of both generic and authorized generic versions of the product in December 2019. Due to these adverse market developments, as at December 31, 2019, the Company tested the carrying value of this product at the product cash generating unit (“CGU”) level, being the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount was determined by reference to the product’s value-in-use or fair value less costs to sell, whichever is higher. This resulted in the value-in-use being the recoverable value of the product. Accordingly, the Company recorded an impairment loss of Rs.11,137 (U.S.$156.5) for the year ended March 31, 2020. This impairment loss pertained to the Company’s Global Generics segment. The carrying value of the asset after the impairment was Rs.3,269 (U.S.$43.2). The Company used the discounted cash flow approach to calculate the value in use, with the assistance of independent appraisers. The key assumptions considered in the calculation are as follows: a. Weighted average of probability adjusted revenue projections, which take into consideration different scenarios such as the base case, the upside case and the downside case; b. Rate of generic penetration and estimated price erosion throughout the period; c. Estimate of useful life over which the product is expected to generate cash flows; and d. the net cash flows have been discounted based on a post-tax discounting tax rate of 8%. Other intangible assets In June 2019, the Company launched tobramycin inhalation solution, USP, a therapeutic equivalent generic version of TOBI® (tobramycin) Inhalation Solution, and in July 2019 the Company launched ramelteon tablets, 8 mg, a therapeutically equivalent generic version of Rozerem® (ramelteon, 8 mg) Tablets. Subsequent to their respective launches, both products experienced adverse market conditions, such as increased competition and reduced selling prices by competitors. As a result, the performance of the products was significantly lower than the Company’s prior estimates. Furthermore, the Company decided to drop the launch of its planned imiquimod cream product. Accordingly, the Company assessed the recoverable amount of intangible assets associated with these three products, and recognized an impairment loss of Rs.4,385 (U.S.$61.4) for the year ended March 31, 2020. These impairment losses pertained to the Company’s Global Generics segment. In view of the specific triggers occurring in the year with respect to some other product related intangible assets forming part of the Company's Global Generics and Proprietary Products segments, the Company determined that there was a decrease in the market potential of these products primarily due to higher than expected price erosion and increased competition leading to lower volumes. Consequently, the Company recorded an amount of Rs.1,235 as impairment loss for the year ended March 31, 2020. Impairment losses recorded for the year ended March 31, 2019 As a result of the Company’s decision to discontinue a few products pertaining to its Global Generics segment, product related intangibles of Rs.82 and Rs.34 were recorded as impairment loss for the year ended March 31, 2019 in the consolidated income statement. 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 in the consolidated income statement. Consequent to the materiality of the amount involved, these impairment amounts have been disclosed separately in the consolidated income statements. |
Investment in equity accounted
Investment in equity accounted investees | 12 Months Ended |
Mar. 31, 2020 | |
Share of profit (loss) of associates and joint ventures accounted for using equity method [abstract] | |
Investment in equity accounted investees | 14. Investment in equity accounted investees As at March 31, 2020 2019 Equity shares held in Kunshan Rotam Reddy Pharmaceutical Company Limited, China Rs. 2,714 Rs. 2,464 Equity shares held in DRES Energy Private Limited, India 49 65 Rs. 2,763 Rs. 2,529 Details of the Company’s investment in Kunshan Rotam Reddy Pharmaceuticals Company Limited: Kunshan Rotam Reddy Pharmaceuticals Company 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, 2020 and 2019. 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. 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, 2020 2019 2018 Ownership 51.3 % 51.3 % 51.3 % Total current assets Rs. 6,925 Rs. 6,195 Rs. 4,933 Total non-current assets 732 374 347 Total assets Rs. 7,657 Rs. 6,569 Rs. 5,280 Equity Rs. 4,931 Rs. 4,448 Rs. 3,600 Total current liabilities 2,726 2,121 1,680 Total equity and liabilities Rs. 7,657 Rs. 6,569 Rs. 5,280 Revenues Rs. 7,679 Rs. 7,436 Rs. 5,482 Expenses 6,554 6,558 4,792 Profit for the year Rs. 1,125 Rs. 878 Rs. 690 Company’s share of profits for the year Rs. 577 Rs. 449 Rs. 354 Carrying value of the Company’s investment (1) Rs. 2,714 Rs. 2,464 Rs. 2,029 Translation adjustment arising out of translation of foreign currency balances Rs. 306 Rs. 241 Rs. 255 (1) Includes Rs.181 representing the goodwill on acquisition of investment. During the year ended March 31 2020, the Company recognized an amount of Rs.392, representing its share of dividend declared by the equity accounted investee, Reddy Kunshan. The amount of dividend is adjusted against the carrying amount of investment in the consolidated statement of financial position. Details of the Company’s investment in DRES Energy Private Limited: As of/for the Year Ended March 31, 2020 2019 2018 Carrying value of the Company’s investment Rs. 49 Rs. 65 Rs. 75 Company’s share of profits for the year (16 ) (11 ) (10 ) |
Trade and other payables
Trade and other payables | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other payables [abstract] | |
Trade and other payables | 15. Trade and other payables Trade and other payables consist of the following: As at March 31, 2020 2019 Trade payables Rs. 10,745 Rs. 10,296 Due to creditors for expenses 4,503 3,375 Due to capital creditors 1,411 882 Rs. 16,659 Rs. 14,553 For details regarding the Company’s exposure to currency and liquidity risks, see Note 31 of these consolidated financial statements under “Liquidity risk”. |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Mar. 31, 2020 | |
Borrowings [abstract] | |
Loans and borrowings | 16. Loans and borrowings Short-term borrowings Short-term borrowings primarily consist of “pre-shipment credit” drawn by the parent company and other unsecured loans drawn by certain of its subsidiaries in Switzerland, the United States, Russia, Mexico, South Africa and Brazil which are repayable within 6 to 12 months from the date of drawdown. Short-term borrowings consist of the following: As at March 31, 2020 2019 Pre-shipment credit Rs. 10,432 Rs. 5,463 Other working capital borrowings 6,009 6,662 Rs. 16,441 Rs. 12,125 The interest rate profile of short-term borrowings from banks is given below: As at March 31, 2020 2019 Currency (1) Interest Rate (2) Currency (1) Interest Rate (2) Pre-shipment credit U.S.$ 1 Month LIBOR + 12.5 to 16 bps U.S.$ 1 Month LIBOR + 25 to 40 bps INR 1 Month T-bill + 60 bps - - Other working capital borrowings U.S.$ 1Month/3 Months LIBOR + 55 to 78 bps U.S.$ 1 Month LIBOR + 65 to 95 bps RUB 7.05% RUB 8.22% ZAR 1Month JIBAR+120 bps ZAR 1Month JIBAR+120 bps MXN TIIE + 1.25% MXN TIIE + 1.25% INR 7.75% - - BRL 7.25% - - - - UAH 21.50% (3) “INR” means Indian rupees, “U.S.$” means United States Dollars, “RUB” means Russian roubles, “MXN” means Mexican pesos, “UAH” means Ukrainian hryvnia, “BRL” means Brazilian reals and “ZAR” means South African rand. (4) “LIBOR” means the London Inter-bank Offered Rate, “TIIE” means the Equilibrium Inter-banking Interest Rate (Tasa de Interés Interbancaria de Equilibrio), “JIBAR” means the Johannesburg Interbank Average Rate and “T-bill” means India Treasury Bill. Long-term borrowings Long-term borrowings consist of the following: As of March 31, 2020 As of March 31, 2019 Non-current Current Non-current Current Foreign currency borrowing by the parent company Rs. - Rs. 3,783 Rs. 3,454 Rs. 1,729 Foreign currency borrowing by the Swiss subsidiary (1) - - 15,819 1,383 Foreign currency borrowing by the German subsidiary (2) - - 2,175 1,087 Obligations under leases/finance leases 1,304 483 552 57 Rs. 1,304 Rs. 4,266 Rs. 22,000 Rs. 4,256 (1) Swiss subsidiary refers to Dr. Reddy’s Laboratories, SA (2) German subsidiary refers to Reddy Holding GmbH During the year ended March 31, 2020, the Company repaid both the long-term borrowings of U.S.$250 in the Swiss subsidiary and EUR 42 in the German Subsidiary. All of the foregoing loan agreements impose various financial covenants on the Company. As of March 31, 2020, the Company was in compliance with all such financial covenants. The interest rate profiles of long-term borrowings (other than obligations under leases/finance leases) as at March 31, 2020 and 2019 were as follows: As at March 31, 2020 2019 Currency (1) Interest Rate (2) Currency (1) Interest Rate (2) Foreign currency borrowings U.S.$ 1 Month LIBOR + 82.7 bps U.S.$ 1 Month LIBOR + 70 to 105 bps - - EUR 0.81% (1) “U.S.$” means United States Dollars and “EUR” means Euros. (2) “LIBOR” means the London Inter-bank Offered Rate. The aggregate maturities of long-term loans and borrowings, based on contractual maturities, as of March 31, 2020 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2021 Rs. 3,783 Rs. 483 Rs. 4,226 2022 - 359 359 2023 - 267 267 2024 - 249 249 2025 - 286 286 Thereafter - 143 143 Rs. 3,783 Rs. 1,787 Rs. 5,570 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.0. The aggregate maturities of long-term loans and borrowings, based on contractual maturities, as of March 31, 2019 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2020 Rs. 4,199 Rs. 57 Rs. 4,256 2021 6,621 65 6,686 2022 1,087 66 1,153 2023 13,831 70 13,901 2024 - 63 63 Thereafter - 288 288 Rs. 25,738 Rs. 609 Rs. 26,347 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.91. Obligations under finance leases (as per IAS 17) The Company has leased buildings and vehicles under finance leases. Future minimum lease payments under finance leases as at March 31, 2019 were as follows: Particulars Present value of minimum lease Interest Future Not later than one year Rs. 60 Rs. 49 Rs. 109 Between one and five years 264 127 391 More than five years 285 38 323 Rs. 609 Rs. 214 Rs. 823 Uncommitted lines of credit from banks The Company had uncommitted lines of credit of Rs.39,374 and Rs.47,134 as of March 31, 2020 and 2019, 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. Reconciliation of liabilities arising from financing activities during the year ended March 31, 2020: Particulars Long-term (1) Short-term Total Opening balance Rs. 26,256 Rs. 12,125 Rs. 38,381 Recognition of right-of-use liability on initial application of IFRS 16 1,335 - 1,335 Recognition of right-of-use liability during the year 238 - 238 Payment of principal portion of lease liabilities (482 ) - (482 ) Borrowings made during the year - 29,831 29,831 Borrowings repaid during the year (22,918 ) (25,596 ) (48,514 ) Currency translation adjustments 1,051 81 1,132 Others 90 - 90 Closing balance Rs. 5,570 Rs. 16,441 Rs. 22,011 Reconciliation of liabilities arising from financing activities during the year ended March 31, 2019: Particulars Long-term (1) Short-term Total Opening balance Rs. 25,152 Rs. 25,466 Rs. 50,618 Payment of principal portion of lease liabilities (56 ) - (56 ) Borrowings made during the year - 42,907 42,907 Borrowings repaid during the year - (58,033 ) (58,033 ) Currency translation adjustments 1,128 1,785 2,913 Others 32 - 32 Closing balance Rs. 26,256 Rs. 12,125 Rs. 38,381 (1) Includes current portion. |
Provisions
Provisions | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of other provisions [abstract] | |
Provisions | 17. Provisions The details of changes in provisions during the year ended March 31, 2020 are as follows: Particulars Refund (1) Environmental (2) Legal and (3) Total Balance as at beginning of the year Rs. 3,581 Rs. 52 Rs. 585 Rs. 4,218 Provision made during the year, net of reversals 2,675 - (37 ) 2,638 Provision used during the year (3,224 ) - - (3,224 ) Effect of changes in foreign exchange rates 220 2 - 222 Balance as at end of the year Rs. 3,252 Rs. 54 Rs. 548 Rs. 3,854 Current Rs. 3,252 Rs. - Rs. 548 Rs. 3,800 Non-current - 54 - 54 Rs. 3,252 Rs. 54 Rs. 588 Rs. 3,854 (1) Refund liability is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) of these consolidated financial statements for the Company’s accounting policy on refund liability. (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.54). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the consolidated 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 32 (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. |
Other liabilities
Other liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Other Liabilities [Abstract] | |
Other liabilities | 18. Other liabilities Other liabilities consist of the following: As at March 31, 2020 2019 Current Accrued expenses Rs. 18,025 Rs. 15,178 Employee benefits payable 4,944 4,542 Statutory dues payable 980 722 Deferred revenue (1) 1,242 590 Advance from customers 668 761 Others 3,523 2,558 Rs. 29,382 Rs. 24,351 Non-current Deferred revenue (1) 1,956 2,002 Others 850 866 Rs. 2,806 Rs. 2,868 (1) Refer to Note 21 for details of deferred revenue. |
Share Capital
Share Capital | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Share Capital Explanatory [Abstract] | |
Share Capital | 19. Share Capital For the Year Ended March 31, 2020 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 166,065,948 Rs. 830 165,910,907 Rs. 830 Add: Equity shares issued pursuant to employee stock option plan (1) 106,134 1 155,041 - * Closing number of equity shares/share capital 166,172,082 Rs. 831 166,065,948 Rs. 830 Treasury shares (2) 395,950 Rs. 1,006 217,976 Rs. 535 * Rounded off to nearest million. (1) During the years ended March 31, 2020 and 2019, equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2002 and the Dr. Reddy’s Employees Stock Option Scheme, 2007. All of the options exercised had an exercise price of Rs.5, being equal to the par value of the underlying shares. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the "share based payment reserve”was transferred to“share premium” in the consolidated statements of changes in equity. (2) Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme, 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance to eligible employees upon exercise of stock options thereunder. During the year ended March 31, 2020, an aggregate of 1,150 equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2018. All of the options exercised had an exercise price of Rs.2,607 per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the “share based payment reserve” was transferred to “share premium” in the consolidated statements of changes in equity.In addition, any difference between the carrying amount of treasury shares and the consideration received was recognized in the “share premium”. As at March 31, 2020 and 2019, the ESOS Trust had outstanding 395,950 and 217,976 shares, respectively, which it purchased from the secondary market for an aggregate consideration of Rs.1,006 and Rs.535, respectively. Refer to Note 28 of these financial statements for further details on the Dr. Reddy’s Employees Stock Option Scheme, 2018. The Company has only one class of equity shares having a par value of Rs.5 per share. 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, if any) 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. The details of dividends paid by the Company are as follows: For the Year Ended March 31, 2020 2019 2018 Dividend per share (in absolute Rs.) Rs. 20 Rs. 20 Rs. 20 Dividend distribution tax on the dividend paid 602 682 675 Dividend paid during the year 3,314 3,320 3,317 Proposed dividend At the Company’s Board of Directors’ meeting held on May 20, 2020, the Board proposed a dividend of Rs.25 per share and aggregating to Rs.4,154, which is subject to the approval of the Company’s shareholders. |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2020 | |
Basic and diluted earnings per share [abstract] | |
Earnings per share | 20. Earnings per share The calculation of basic and diluted earnings per share for the years ended March 31, 2020, 2019 and 2018 was based on the profit attributable to equity shareholders of the Company, being Rs.19,498, Rs.18,795 and Rs.9,806, respectively. 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, 2020 2019 2018 Number of equity shares at the beginning of the year (excluding treasury shares) 165,847,972 165,910,907 165,741,713 Effect of treasury shares held during the year (154,020 ) (100,672 ) - Effect of equity shares issued on exercise of stock options 64,432 103,801 103,695 Weighted average number of equity shares – Basic 165,758,384 165,914,036 165,845,408 Earnings per share of par value Rs.5 – Basic Rs. 117.63 Rs. 113.28 Rs. 59.13 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, 2020 2019 2018 Weighted average number of equity shares – Basic 165,758,384 165,914,036 165,845,408 Dilutive effect of stock options outstanding (1) 323,601 278,718 340,144 Weighted average number of equity shares – Diluted 166,081,985 166,192,754 166,185,552 Earnings per share of par value Rs.5 – Diluted Rs. 117.40 Rs. 113.09 Rs. 59.00 (1) As at March 31, 2020 and 2019, 475,575 and 272,700 options, respectively, were excluded from the diluted weighted average number of equity shares calculation because their effect would have been anti-dilutive. The average market value of the Company’s shares for the purpose of calculating the dilutive effect of stock options was based on quoted market prices for the year during which the options were outstanding. |
Revenue from contracts with cus
Revenue from contracts with customers and trade receivables | 12 Months Ended |
Mar. 31, 2020 | |
Revenue [abstract] | |
Revenue from contracts with customers and trade receivables | 21. Revenue from contracts with customers and trade receivables Revenue from contracts with customers: For the Year Ended March 31, 2020 2019 2018 Sales (1) Rs. 163,574 Rs. 148,706 Rs. 138,022 Service income 2,409 2,129 1,534 License fees (2)(3) 8,617 3,016 2,472 Rs. 174,600 Rs. 153,851 Rs. 142,028 Excise duty included in revenues (1) Rs. - Rs. - Rs. 173 (1) Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “ Revenue from Contracts with Customers (2) During the year ended March 31, 2020, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC for the sale of its U.S. and select territory rights for ZEMBRACE ® ® ® (3) License fees for the years ended March 31, 2019 and March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 36 of these consolidated financial statements for further details. Analysis of revenues by segments: For the Year Ended March 31, Segment 2020 2018 2017 Global Generics Rs. 138,123 Rs. 122,903 Rs. 114,014 PSAI 25,747 24,140 21,992 Proprietary products 7,949 4,750 4,245 Others 2,781 2,058 1,777 Rs. 174,600 Rs. 153,851 Rs. 142,028 Analysis of revenues within the Global Generics segment: An analysis of revenues by therapeutic areas in the Company’s Global Generics segment is given below: For the Year Ended March 31, 2020 2019 2018 Nervous System Rs. 26,825 Rs. 19,726 Rs. 17,347 Gastrointestinal 19,394 19,250 19,153 Oncology 18,245 18,357 16,999 Cardiovascular 14,729 15,106 16,501 Pain Management 13,808 13,806 12,898 Respiratory 10,433 8,130 6,205 Anti-Infective 9,402 7,073 6,557 Others 25,287 21,455 18,354 Total Rs. 138,123 Rs. 122,903 Rs. 114,014 Analysis of revenues within the PSAI segment: An analysis of revenues by therapeutic areas in the Company’s PSAI segment is given below: For the Year Ended March 31, 2020 2019 2018 Cardiovascular Rs. 8,567 Rs. 7,019 Rs. 6,191 Pain Management 5,073 3,364 3,228 Nervous System 2,797 2,741 2,331 Oncology 1,798 2,212 1,650 Dermatology 1,370 1,622 1,606 Anti-Infective 1,097 1,247 1,968 Others 5,045 5,935 5,018 Total Rs. 25,747 Rs. 24,140 Rs. 21,992 Analysis of revenues by geography: 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 2020 2019 2018 India Rs. 32,089 Rs. 28,804 Rs. 25,209 United States 76,028 69,299 68,124 Russia 16,900 15,299 12,610 Others 49,583 40,449 36,085 Rs. 174,600 Rs. 153,851 Rs. 142,028 Information about major customers Revenues from two customers of the Company's Global Generics segment were Rs.14,164 and Rs.9,267, representing approximately 8% and 5%, respectively, of the Company’s total revenues for the year ended March 31, 2020. Revenues from two customers of the Company's Global Generics segment were Rs.10,639 and Rs.10,024, each representing approximately 7% of the Company’s total revenues for the year ended March 31, 2019. 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. Details of significant gross to net adjustments relating to Company’s North America Generics business (amounts in U.S.$ millions) A roll-forward for each major accrual for the Company’s North America Generics business for the fiscal years ended March 31, 2018, 2019 and 2020 is as follows: Particulars Chargebacks Rebates Medicaid Refund Liability (All values in U.S.$ millions) Beginning Balance: April 1, 2017 191 186 13 36 Current provisions relating to sales during the year (1) 1,750 630 18 22 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,771 ) (655 ) (19 ) (30 ) Ending Balance: March 31, 2018 170 161 12 28 Beginning Balance: April 1, 2018 170 161 12 28 Current provisions relating to sales during the year (2) 1,415 461 18 29 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,457 ) (530 ) (19 ) (27 ) Ending Balance: March 31, 2019 128 92 11 30 Beginning Balance: April 1, 2019 128 92 11 30 Current provisions relating to sales during the year (3) 1,468 319 20 21 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,440 ) (331 ) (20 ) (27 ) Ending Balance: March 31, 2020 156 80 11 24 * Currently, the Company does not separately track provisions and adjustments, in each case to the extent relating to prior years for chargebacks. However, the adjustments are expected to be non-material. The volumes used to calculate the closing balance of chargebacks represent approximately 1.3 months equivalent of sales, which corresponds to the pending chargeback claims yet to be processed. ** Currently, the Company does not separately track the credits and payments, in each case to the extent relating to prior years for chargebacks, rebates, medicaid payments or refund liability. (1) Chargebacks and rebates provisions for the year ended March 31, 2018 and payments for the year ended March 31, 2018 were each lower as compared to the year ended March 31, 2017, primarily as a result of lower pricing rates per unit for chargebacks, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, and due to certain product mix changes. (2) Chargebacks and rebates provisions for the year ended March 31, 2019 and payments for the year ended March 31, 2019 were each lower as compared to the year ended March 31, 2018, primarily as a result of lower pricing rates per unit for chargebacks, and due to a reduction in the invoice price to wholesalers for certain of the Company’s products. (3) Chargebacks provisions for the year ended March 31, 2020 were higher compared to the year ended March 31, 2019, primarily as a result of higher sales volumes, which were partially offset due to a lower pricing rates per unit for chargebacks. Such lower pricing was primarily on account of a reduction in the invoice price to wholesalers for certain of the Company’s products. The chargebacks payments for the year ended March 31, 2020 were lower compared to the year ended March 31, 2019, primarily as a result of higher pending chargebacks claims at March 31, 2020 as compared to March 31, 2019. The rebates provisions and the payments for the year ended March 31, 2020 were each lower as compared to the year ended March 31, 2019, primarily as a result of lower pricing rates per unit for rebates, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, which were partially offset by higher sales volumes during the year ended March 31, 2020 as compared to the year ended March 31, 2019. The Company’s overall refund liability as at March 31, 2020 relating to its North America Generics business was U.S.$24, as compared to a liability of U.S.$30 as at March 31, 2019. This decrease in the Company’s liability was primarily attributable to a lower refund liability allowance for the year ended March 31, 2020 as compared to the year ended March 31, 2019. Such allowance change was primarily due to certain product mix changes and recent trends in actual sales returns, together with the Company’s historical experience and also the price reduction for certain products resulting into lower refund liability to be carried. The estimates of “gross-to-net” adjustments for the Company’s operations in India and other countries outside of the United States relate mainly to refund liability in all such operations, and certain rebates to healthcare insurance providers are specific to the Company’s German operations. The pattern of such refund liability is generally consistent with the Company’s gross sales. In Germany, the rebates to healthcare insurance providers mentioned above are contractually fixed in nature and do not involve significant estimations by the Company. Details of refund liabilities: For the Year Ended March 31, 2020 2019 Balance at the beginning of the year Rs. 3,581 Rs. 3,210 Provision made during the year, net of reversals 2,675 3,592 Provision used during the year (3,224 ) (3,324 ) Effect of changes in foreign exchange rates 220 103 Balance at the closing of the year Rs. 3,252 Rs. 3,581 Current Rs. 3,252 Rs. 3,581 Non-current - - Details of contract asset: As mentioned in the accounting policies for refund liability set forth in Note 3.l. of these consolidated financial statements, the Company recognizes an asset (i.e., the right to the returned goods), which is included in inventories, for the products expected to be returned. The Company initially measures this asset at the former carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods. Along with re-measuring the refund liability at the end of each reporting period, the Company updates the measurement of the asset recorded for any revisions to its expected level of returns, as well as any additional decreases in the value of the returned products. As on March 31, 2020 and 2019, the Company had Rs.23 and Rs.16, respectively, as contract assets representing the right to returned goods. Details of deferred revenue: Tabulated below is the reconciliation of deferred revenue for the years ended March 31, 2020 and 2019. For the Year Ended March 31, 2020 2019 Balance as at April 1 Rs. 2,592 Rs. 3,319 Revenue recognized during the year (1,250 ) (815 ) Milestone payment received during the year 1,856 88 Balance as at March 31 Rs. 3,198 Rs. 2,592 Current 1,242 590 Non-current 1,956 2,002 Details of contract liabilities As at March 31, 2020 2019 Advance from customers Rs. 668 Rs. 761 Rs. 668 Rs. 761 |
Other income, net
Other income, net | 12 Months Ended |
Mar. 31, 2020 | |
Other operating income expense [Abstract] | |
Other income, net | 22. Other income, net Other (income)/expense, net consists of the following: For the Year Ended March 31, 2020 2019 2018 Loss/(gain) on sale/disposal of property, plant and equipment and other intangible assets, net (1) Rs. 10 Rs. (1,264) Rs. 55 Sale of spent chemicals (306 ) (356 ) (297 ) Scrap sales (167 ) (179 ) (169 ) Miscellaneous income, net (2) (3,827 ) (156 ) (377 ) Rs. (4,290) Rs. (1,955) Rs. ( 788) (1) Refer to footnotes (1) and (2) to the first table set forth in Note 11 and footnote (1) to the first table set forth in Note 13 of these consolidated financial statements for further details. (2) Miscellaneous income, net includes Rs.3,457 (U.S.$50) received from Celgene pursuant to a settlement agreement entered into in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID ® brand capsules (Lenalidomide) pending before Health Canada. |
Finance income, net
Finance income, net | 12 Months Ended |
Mar. 31, 2020 | |
Finance expense income [Abstract] | |
Finance income, net | 23. Finance income, net Finance (expense)/income, net consists of the following: For the Year Ended March 31, 2020 2019 2018 Interest income Rs. 888 Rs. 770 Rs. 540 Fair value changes and profit on sale of units of mutual funds, net (1) 929 773 2,270 Foreign exchange gain 639 737 87 Miscellaneous income, net 5 - - Finance income (A) Rs. 2,461 Rs. 2,280 Rs. 2,897 Interest expense Rs. (983) Rs. (889) Rs. (788) Foreign exchange loss - (274 ) (29 ) Finance expense (B) Rs. (983) Rs. (1,163) Rs. (817) Finance income, net [(A)+(B)] Rs. 1,478 Rs. 1,117 Rs. 2,080 (1) For the year ended March 31, 2018, profit on sale of units of mutual funds, net primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s then “available for sale” financial instruments under the former accounting standard IAS 39, “ Financial Instrument - Recognition and Measurement” |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of income tax [Abstract] | |
Income taxes | 24. 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, 2020 2019 2018 Current taxes Domestic Rs. (5,157) Rs. (3,003) Rs. (1,412) Foreign (1,459 ) (1,707 ) (363 ) Rs. (6,616) Rs. (4,710) Rs. (1,775) Deferred taxes Domestic Rs. 6,580 Rs. (244) Rs. (379) Foreign 1,502 1,306 (2,381 ) Rs. 8,082 Rs. 1,062 Rs. (2,760) Total income tax (expense)/ benefit Rs. 1,466 Rs. (3,648) Rs. (4,535) b. Income tax (expense)/benefit recognized directly in equity Income tax (expense)/benefit recognized directly in equity consi s For the Year Ended March 31, 2020 2019 2018 Tax effect on changes in fair value of other investments Rs. - Rs. (411) Rs. 1,370 Tax effect on foreign currency translation differences - 14 (17 ) Tax effect on effective portion of change in fair value of cash flow hedges 232 (69 ) 41 Tax effect on actuarial gains/losses on defined benefit obligations (22 ) (3 ) (12 ) Rs. 210 Rs. (469) Rs. 1,382 c. Reconciliation of effective tax rate The following is a reconciliation of the Company’s effective tax rates for the years ended March 31, 2020, 2019 and 2018: For the Year Ended March 31, 2020 2019 2018 Profit before income taxes Rs. 18,032 Rs. 22,443 Rs. 14,341 Enacted tax rate in India 34.94 % 34.94 % 34.61 % Computed expected tax expense Rs. (6,301) Rs. (7,842) Rs. (4,963) Effect of: Differences between Indian and foreign tax rates Rs. (3,385) Rs. 734 Rs. 712 (Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net 6,478 (482 ) (1,673 ) Expenses not deductible for tax purposes (155 ) (340 ) (261 ) Reversal of earlier years’ tax provisions - 282 135 Income exempt from income taxes 1,029 1,282 746 Foreign exchange differences 64 470 41 Incremental deduction allowed for research and development costs (1) 1,241 1,134 1,324 Tax expense on distributed/undistributed earnings of subsidiary outside India (254 ) - - Write off of accounts receivables - 1,294 - Income from sale of capital assets 2,620 - - Effect of change in tax rate 37 (3 ) (1,329 ) Others 92 (177 ) 733 Income tax benefit/(expense) Rs. 1,466 Rs. (3,648) Rs. (4,535) Effective tax rate (8 )% 16 % 32 % (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 and from 150% to 100% effective April 1, 2020. The decrease in the Company’s effective tax rate for the year ended March 31, 2020 as compared to the year ended March 31, 2019 was primarily on account of : · recognition of a deferred tax asset related to the Minimum Alternate Tax (“MAT”) credits in Dr. Reddy’s Laboratories Limited, India on account of a reduction in the MAT rate from 21.55% to 17.47% pursuant to the recently enacted Taxation laws (Amendment) Act 2019 for the fiscal year ended March 31, 2020 and subsequent periods; · recognition of deferred tax asset related to losses for impairment of certain product related intangibles of the Company; · recognition of deferred tax asset pursuant to planned restructuring activity between the group companies; and · non taxability of income from sale of capital assets as it is set off against the carried forward capital loss. d. Unrecognized deferred tax assets and liabilities The details of unrecognized deferred tax assets and liabi li r As at March 31, 2020 2019 Deductible temporary differences, net Rs. 394 Rs. 5,469 Operating tax loss carry-forward 3,926 3,567 Rs. 4,320 Rs. 9,036 During the year ended March 31, 2020, the Company recognized deferred tax assets of Rs.5,075 on certain deductible temporary differences, as the Company believes that it is probable that there will be available taxable profits against which such temporary differences can be utilized. During the year ended March 31, 2020, the Company did not recognize deferred tax assets of Rs.359 on operating tax losses pertaining primarily to Dr. Reddy’s Venezuela, C.A and Dr. Reddy’s Laboratories New York, Inc. Deferred income taxes are not provided on undistributed earnings of Rs.22,988 as at March 31, 2020, of subsidiaries, 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 subsidiaries, and accordingly, has not recorded any deferred taxes in relation to such undistributed earnings of its subsidiaries. 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, 2020 2019 Deferred tax assets/(liabilities): Inventory Rs. 3,216 Rs. 3,285 Minimum Alternate Tax* 6,246 1,630 Trade and other receivables 369 316 Operating/other tax loss carry-forward 3,399 297 Other current assets and other current liabilities, net 1,448 1,315 Property, plant and equipment (2,361 ) (2,665 ) Other intangible assets (477 ) (662 ) Others 99 42 Net deferred tax assets Rs. 11,939 Rs. 3,558 * 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. If in any year the company pays liability as per MAT, then it is entitled to claim credit of MAT paid over and above the normal tax liability in the subsequent years. The MAT credit is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years starting from the succeeding fiscal year in which such credit was generated. 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 2021 through 2027. f. Movement in deferred tax assets and liabilities during the years ended March 31, 2020 and 2019 The details of movement in deferred tax assets and liabilities are su mm As at March 31, 2019 Recognized in Recognized in As at March Deferred tax assets/(liabilities) Inventory Rs. 3,285 Rs. (69) Rs. - Rs. 3,216 Minimum Alternate Tax 1,630 4,616 - 6,246 Trade and other receivables 316 53 - 369 Operating/other tax loss carry-forward 297 3,102 - 3,399 Other current assets and other current liabilities, net 1,315 133 - 1,448 Property, plant and equipment (2,665 ) 304 - (2,361 ) Other intangible assets (662 ) 185 - (477 ) Others 42 (153 ) 210 99 Net deferred tax assets Rs. 3,558 Rs. 8,171 Rs. 210 Rs. 11,939 As at March Recognized in Recognized in As at March Deferred tax assets/(liabilities) Inventory Rs. 1,790 Rs. 1,495 Rs. - Rs. 3,285 Minimum Alternate Tax 1,630 - - 1,630 Trade and other receivables 278 38 - 316 Operating/other tax loss carry-forward 112 185 - 297 Other current assets and other current liabilities, net 1,291 24 - 1,315 Property, plant and equipment (2,263 ) (402 ) - (2,665 ) Other intangible assets (569 ) (93 ) - (662 ) Others 629 (115 ) (472 ) 42 Net deferred tax assets Rs. 2,898 Rs. 1,132 Rs. (472 ) Rs. 3,558 The amounts recognized in the income statement for the years ended March 31, 2020 and 2019 include Rs.89 and Rs.70, respectively, which represent exchange differences arising due to foreign currency translations. |
Nature of Expense
Nature of Expense | 12 Months Ended |
Mar. 31, 2020 | |
Expenses by nature [abstract] | |
Nature of Expense | 25. Nature of Expense The following table shows supplemental information related to certain “nature of expense” items for the years ended March 31, 2020, 2019 and 2018: For the Year Ended March 31, Employee benefits 2020 2019 2018 Cost of revenues Rs. 10,643 Rs. 10,644 Rs. 10,434 Selling, general and administrative expenses 18,658 18,291 17,004 Research and development expenses 4,501 4,627 4,711 Rs. 33,802 Rs. 33,562 Rs. 32,149 For the Year Ended March 31, Depreciation 2020 2019 2018 Cost of revenues Rs. 6,366 Rs. 6,484 Rs. 6,331 Selling, general and administrative expenses 1,294 801 854 Research and development expenses 980 1,077 1,100 Rs. 8,640 Rs. 8,362 Rs. 8,285 For the Year Ended March 31, Amortization 2020 2019 2018 Cost of revenues Rs. 175 Rs. 284 Rs. 264 Selling, general and administrative expenses 3,547 3,421 3,029 Research and development expenses 110 123 132 Rs. 3,832 Rs. 3,828 Rs. 3,425 In addition, for details relating to costs of material consumed, refer to Note 9 of these consolidated financial statements. |
Operating leases
Operating leases | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Finance Leases And Operating Leases By Lessee [Abstract] | |
Disclosure Of Operating Lease By Lessee Explanatory | 26. 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.905 and Rs.787 for the years ended March 31, 2019 and 2018, respectively. The schedule of future minimum rental payments in respect of non-cancellable operating leases is set out below: As of March 31, 2020 2019 2018 Less than one year Rs. - Rs. 405 Rs. 496 Between one and five years - 797 1,144 More than five years - 89 289 Rs. - Rs. 1,291 Rs. 1,929 Commencing April 1, 2019, upon adoption of IFRS 16, “Leases”, majority of leases for which the Company is lease become on balance sheet liability with corresponding right-of-use assets recognized in the statement of financial position. Upon adoption of the new standard, a portion of the annual operating lease costs, which was previously fully recognized as a functional expense, is recorded as interest expense. |
Employee benefits
Employee benefits | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Employee benefits | 27. Employee benefits Total employee benefit expenses, including share-based payments, incurred during the years ended March 31, 2020, 2019 and 2018 amounted to Rs.33,802, Rs.33,562 and Rs.32,149, 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. The components of gratuity cost recognized in the income statement for the years ended March 31, 2020, 2019 and 2018 consist of the following: For the Year Ended March 31, 2020 2019 2018 Current service cost Rs. 276 Rs. 265 Rs. 252 Interest on defined benefit liability (4 ) (2 ) 6 Gratuity cost recognized in income statement Rs. 272 Rs. 263 Rs. 258 Details of the employee benefits obligations and plan assets are provided below: As of March 31, 2020 2019 Present value of funded obligations Rs. 2,349 Rs. 2,200 Fair value of plan assets (2,160 ) (2,174 ) Net defined benefit liability recognized Rs. 189 Rs. 26 Details of changes in the present value of defined benefit obligations are as follows: As of March 31, 2020 2019 Defined benefit obligations at the beginning of the year Rs. 2,200 Rs. 2,007 Current service cost 276 265 Interest on defined obligations 152 145 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (96 ) 28 Actuarial loss/(gain) due to demographic assumptions (48 ) - * Actuarial loss/(gain) due to experience changes 59 - * Benefits paid (194 ) (245 ) Defined benefit obligations at the end of the year Rs. 2,349 Rs. 2,200 * Rounded to the nearest million. Details of changes in the fair value of plan assets are as follows: As of March 31, 2020 2019 Fair value of plan assets at the beginning of the year Rs. 2,174 Rs. 1,958 Employer contributions 14 294 Interest on plan assets 156 147 Re-measurements due to: Return on plan assets excluding interest on plan assets 10 20 Benefits paid (194 ) (245 ) Plan assets at the end of the year Rs. 2,160 Rs. 2,174 Sensitivity Analysis: As of March 31, 2020 Defined benefit obligation without effect of projected salary growth Rs. 1,593 Add: Effect of salary growth 756 Defined benefit obligation with projected salary growth 2,349 Defined benefit obligation, using discount rate minus 50 basis points 2,419 Defined benefit obligation, using discount rate plus 50 basis points 2,282 Defined benefit obligation, using salary growth rate plus 50 basis points 2,418 Defined benefit obligation, using salary growth rate minus 50 basis points 2,282 Summary of the actuarial assumptions: The assumptions used to determine benefit obligations: For the Year Ended March 31, 2020 2019 2018 Discount rate 6.65 % 7.45 % 7.75 % Rate of compensation increase 7.50 % 8% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter The assumptions used to determine gratuity cost: For the Year Ended March 31, 2020 2019 2018 Discount rate 7.45 % 7.75 % 7.20 % Rate of compensation increase 8% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter Contributions: Disaggregation of plan assets: As of March 31, 2020 2019 Funds managed by insurers 99 % 99 % Others 1 % 1 % The expected future cash flows in respect of gratuity as at March 31, 2020 were as follows: Expected contribution Amount During the year ended March 31, 2021 (estimated) Rs. 189 Expected future benefit payments March 31, 2021 413 March 31, 2022 301 March 31, 2023 294 March 31, 2024 273 March 31, 2025 259 Thereafter 2,201 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. The components of net pension cost recognized in the income statement for the years ended March 31, 2020, 2019 and 2018 consist of the following: For the Year Ended March 31, 2020 2019 2018 Current service cost Rs. 11 Rs. 13 Rs. 12 Interest on defined benefit liability 16 15 13 Total cost recognized in income statement Rs. 27 Rs. 28 Rs. 25 Details of the employee benefits obligations and plan assets are provided below: As of March 31, 2020 2019 Present value of funded obligations Rs. 234 Rs. 223 Fair value of plan assets (128 ) (70 ) Net defined benefit liability recognized Rs. 106 Rs. 153 Details of changes in the present value of defined benefit obligations are as follows: As of March 31, 2020 2019 Defined benefit obligations at the beginning of the year Rs. 223 Rs. 243 Current service cost 11 13 Interest on defined obligations 25 22 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions 50 (47 ) Actuarial loss/(gain) due to experience changes (8 ) 7 Benefits paid (41 ) (16 ) Foreign exchanges differences (26 ) 1 Defined benefit obligations at the end of the year Rs. 234 Rs. 223 Details of changes in the fair value of plan assets are as follows: As of March 31, 2020 2019 Fair value of plan assets at the beginning of the year Rs. 70 Rs. 66 Employer contributions 113 16 Interest on plan assets 9 7 Re-measurements due to: Return on plan assets excluding interest on plan assets (7 ) (3 ) Benefits paid (41 ) (16 ) Foreign exchanges differences (16 ) - * Plan assets at the end of the year Rs. 128 Rs. 70 * Rounded to the nearest million. Sensitivity Analysis: As of March 31, 2020 Defined benefit obligation without effect of projected salary growth Rs. 158 Add: Effect of salary growth 76 Defined benefit obligation with projected salary growth 234 Defined benefit obligation, using discount rate minus 50 basis points 244 Defined benefit obligation, using discount rate plus 50 basis points 224 Defined benefit obligation, using salary growth rate plus 50 basis points 245 Defined benefit obligation, using salary growth rate minus 50 basis points 224 Summary of the actuarial assumptions: The assumptions used to determine benefit obligations: For the Year Ended March 31, 2020 2019 2018 Discount rate 8.75 % 11.25 % 9.00 % Rate of compensation increase 4.50 % 4.50 % 4.50 % The assumptions used to determine defined benefit cost: For the Year Ended March 31, 2020 2019 2018 Discount rate 11.25 % 9.00 % 8.75 % Rate of compensation increase 4.50 % 4.50 % 4.50 % Contributions: Disaggregation of plan assets: As of March 31, 2020 2019 Funds managed by insurers 51 % 51 % Others 49 % 49 % The expected future cash flows in respect of post-employment benefit plans in Mexico as at March 31, 2020 were as follows: Expected contribution Amount During the year ended March 31, 2021 (estimated) Rs. 32 Expected future benefit payments March 31, 2021 5 March 31, 2022 5 March 31, 2023 6 March 31, 2024 11 March 31, 2025 16 Thereafter 536 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.812, Rs.740 and Rs.735 to the provident fund plan during the years ended March 31, 2020, 2019 and 2018, 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.82, Rs.84 and Rs.88 to the superannuation plan during the years ended March 31, 2020, 2019 and 2018, 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.177, Rs.213 and Rs.212 to the 401(k) retirement savings plan during the years ended March 31, 2020, 2019 and 2018, 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.148 and Rs.135 to the National Insurance during the years ended March 31, 2020, 2019 and 2018, 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.1,161 and Rs.1,089 as at March 31, 2020 and 2019, respectively. |
Employee stock incentive plans
Employee stock incentive plans | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Share based Payment Arrangement [Abstract] | |
Employee stock incentive plans | 28. 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 Category B 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. 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 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. Stock option activity under the DRL 2002 Plan for the two categories of options during the years ended March 31, 2020 and 2019 is as follows: Category A — Fair Market Value Options: Category B — Par Value Options: For the Year Ended March 31, 2020 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 270,141 Rs. 5.00 Rs. 5.00 73 Granted during the year 49,796 5.00 5.00 90 Expired/forfeited during the year (14,934 ) 5.00 5.00 - Exercised during the year (72,166 ) 5.00 5.00 - Outstanding at the end of the year 232,837 Rs. 5.00 Rs. 5.00 69 Exercisable at the end of the year 40,548 Rs. 5.00 Rs. 5.00 43 For the Year Ended March 31, 2019 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 320,544 Rs. 5.00 Rs. 5.00 70 Granted during the year 122,372 5.00 5.00 90 Expired/forfeited during the year (50,651 ) 5.00 5.00 - Exercised during the year (122,124 ) 5.00 5.00 - Outstanding at the end of the year 270,141 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 32,836 Rs. 5.00 Rs. 5.00 42 The weighted average grant date fair value of options granted during the years ended March 31, 2020 and 2019 was Rs.2,746 and Rs.2,195 per option, respectively. The weighted average share price on the date of exercise of options during the years ended March 31, 2020 and 2019 was Rs.2,681 and Rs.2,302 per share, respectively. The aggregate intrinsic value of options exercised during the years ended March 31, 2020 and 2019 was Rs.193 and Rs.281, respectively. As of March 31, 2020, options outstanding had an aggregate intrinsic value of Rs.725 and options exercisable had an aggregate intrinsic value of Rs.126. 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 Category B Stock options activity under the DRL 2007 Plan for the above two categories of options during the years ended March 31, 2020 and 2019 was as follows: For the Year Ended March 31, 2020 Category A — Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 146,060 Rs. 1,982.00/ 2,607.00 Rs. 2,166.00 81 Granted during the year 61,700 2,814.00 2,814.00 90 Expired/forfeited during the year (5,000 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 202,760 Rs. 1,982.00/ 2,607.00/2,814.00 Rs. 2,353.62 72 Exercisable at the end of the year 35,265 Rs. 1,982.00/ 2,607.00 Rs. 2,150.81 51 For the Year Ended March 31, 2019 Category A — Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year - Rs. - Rs. - - Granted during the year 149,160 1,982.00/ 2,607.00 2,176.00 90 Expired/forfeited during the year (3,100 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 146,060 Rs. 1,982.00/ 2,607.00 Rs. 2,166.00 81 Exercisable at the end of the year - - - - The weighted average grant date fair value of options granted during the years ended March 31, 2020 and 2019 was Rs.993 and Rs.515 per option, respectively. As of March 31, 2020, options outstanding had an aggregate intrinsic value of Rs.156 and options exercisable had an aggregate intrinsic value of Rs.27. For the Year Ended March 31, 2020 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 115,155 Rs. 5.00 Rs. 5.00 73 Granted during the year 89,282 5.00 5.00 90 Expired/forfeited during the year (18,886 ) 5.00 5.00 - Exercised during the year (33,968 ) 5.00 5.00 - Outstanding at the end of the year 151,583 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 14,166 Rs. 5.00 Rs. 5.00 44 For the Year Ended March 31, 2019 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 107,308 Rs. 5.00 Rs. 5.00 73 Granted during the year 70,730 5.00 5.00 90 Expired/forfeited during the year (29,966 ) 5.00 5.00 - Exercised during the year (32,917 ) 5.00 5.00 - Outstanding at the end of the year 115,155 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 9,229 Rs. 5.00 Rs. 5.00 43 The weighted average grant date fair value of options granted during the years ended March 31, 2020 and 2019 was Rs.2,747 and Rs.2,056, respectively. The weighted average share price on the date of exercise of options during the years ended March 31, 2020 and 2019 was Rs.2,757 and Rs.2,445, respectively. The aggregate intrinsic value of options exercised during the years ended March 31, 2020 and 2019 was Rs.93 and Rs.80, respectively. As of March 31, 2020, options outstanding had an aggregate intrinsic value of Rs.472 and options exercisable had an aggregate intrinsic value of Rs.44. Dr. Reddy’s Employees Stock Option Scheme, 2018 (the “DRL 2018 Plan”) The Company instituted the DRL 2018 Plan for all eligible employees pursuant to the special resolution approved by the shareholders at the Annual General Meeting held on July 27, 2018. The DRL 2018 Plan covers all employees and directors (excluding independent and promoter directors) of the parent company and its subsidiaries (collectively, “eligible employees”). Upon the exercise of options granted under the DRL 2018 Plan, the applicable equity shares may be issued directly by the Company to the eligible employee or may be transferred from the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) to the eligible employee. The ESOS Trust may acquire such equity shares through primary issuances by the Company and/or by way of secondary market acquisitions funded through loans from the Company. The Nomination, Governance and Compensation Committee of the Board of the parent company (the “Compensation Committee”) administers the DRL 2018 Plan and grants stock options to eligible employees, but may delegate functions and powers relating to the administration of the DRL 2018 Plan to the ESOS Trust. The Compensation 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 2018 Plan vest in periods ranging between the end of one and five years, and generally have a maximum contractual term of five years. The DRL 2018 Plan provides for option grants having an exercise price equal to the fair market value of the underlying equity shares on the date of grant as follows: Particulars Number of securities to be acquired from Number of securities Total Options reserved against equity shares 2,500,000 1,500,000 4,000,000 Options reserved against ADRs - 1,000,000 1,000,000 Total 2,500,000 2,500,000 5,000,000 As at March 31, 2020, the outstanding shares purchased from secondary market are 395,950 shares for an aggregate consideration of Rs.1,006. Stock option activity under the DRL 2018 Plan during the years ended March 31, 2020 and 2019 was as follows: For the Year Ended March 31, 2020 Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 229,600 Rs. 2,607.00 Rs. 2,607.00 84 Granted during the year 169,900 2,814.00/ 3,031.00 2,817.07 90 Expired/forfeited during the year (22,575 ) 2,607.00/ 2,814.00/ 3,031.00 2,687.84 - Exercised during the year (1,150 ) 2,607.00 2,607.00 - Outstanding at the end of the year 375,775 Rs. 2,607.00/ Rs.2814.00 Rs. 2,697.12 75 Exercisable at the end of the year 53,100 Rs. 2,607.00 Rs. 2,607.00 53 For the Year Ended March 31, 2019 Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year - Rs. - Rs. - - Granted during the year 235,700 2,607.00 2,607.00 90 Expired/forfeited during the year (6,100 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 229,600 Rs. 2,607.00 Rs. 2,607.00 84 Exercisable at the end of the year - - - - The weighted average grant date fair value of options granted during the years ended March 31, 2020 and 2019 was Rs.994 and Rs.667 per option, respectively. The weighted average share price on the date of exercise of options during the years ended March 31, 2020 and 2019 was Rs.2,914 and Rs. Nil per share, respectively. The aggregate intrinsic value of options exercised during the years ended March 31, 2020 and 2019 was Rs.0.35 and Rs. Nil, respectively. As of March 31, 2020, options outstanding had an aggregate intrinsic value of Rs.159 and options exercisable had an aggregate intrinsic value of Rs.22. Valuation of stock options: 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. The fair value of stock options granted under the DRL 2002 Plan, DRL 2007 Plan and the DRL 2018 Plan has been measured using the Black–Scholes-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, 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, 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. The weighted average inputs used in computing the fair value of options granted were as follows: Grants made on January 26, 2020 October 31, 2019 May 16, 2019 May 16, 2019 Expected volatility 27.00 % 27.10 % 28.25 % 29.29 % Exercise price Rs. 3,031.00 Rs. 5.00 Rs. 2,814.00 Rs. 5.00 Option life 5.00 Years 2.5 Years 5.0 Years 2.5 Years Risk-free interest rate 6.61 % 5.72 % 7.14 % 6.76 % Expected dividends 0.66 % 0.72 % 0.71 % 0.71 % Grant date share price Rs. 3,031.00 Rs. 2,783.20 Rs. 2,801.00 Rs. 2,801.00 Grants made on January 31, 2019 September 21, 2018 July 26, 2018 May 21, 2018 Expected volatility 32.92 % 33.98 % 34.89 % 32.97 % Exercise price Rs. 5.00 Rs. 5.00 / Rs.2,607.00 Rs. 5.00 Rs. 5.00 / Rs.1,982.00 Option life 2.5 Years 2.5 Years 2.5 Years 2.5 Years Risk-free interest rate 7.00 % 7.90 % 7.47 % 7.46 % Expected dividends 0.74 % 0.78 % 0.94 % 1.06 % Grant date share price Rs. 2,720.80 Rs. 2,556.25 Rs. 2,132.75 Rs. 1,893.05 Share-based payment expense For the Year Ended March 31, 2020 2019 2018 Equity settled share-based payment expense (1) Rs. 521 Rs. 389 Rs. 454 Cash settled share-based payment expense (2) 94 85 28 Rs. 615 Rs. 474 Rs. 482 (1) As of March 31, 2020 and 2019, there was Rs.515 and Rs.519, respectively, of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.93 years and 2.09 years, respectively. (2) 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 vesting. As of March 31, 2020, there was Rs.97 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.93 years. This scheme does not involve dealing in or subscribing to or purchasing securities of the Company, directly or indirectly. |
Related parties
Related parties | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Related parties | 29. 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 and other services; · Dr. Reddy’s Foundation towards contributions for social development; · Kunshan Rotam Reddy Pharmaceuticals Company Limited for sales of goods and for research and development services; · Pudami Educational Society towards contributions for social development; · Indus Projects Private Limited for engineering services relating to civil works; · CERG Advisory Private Limited for professional consulting services; · Dr. Reddy’s Institute of Life Sciences for research and development services; · AverQ Inc. for professional consulting services; · Shravya Publications Pvt. Ltd. for professional consulting services; · Cancelled Plans LLP for the sale of scrap materials; · Araku Originals Private Limited for the purchase of coffee powder; · DRES Energy Private Limited for the purchase of solar power; and · Stamlo Industries 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 27 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, 2020 2019 2018 Research and development services received Rs. 105 Rs. 97 Rs. 98 Sale of goods 14 23 - Lease rentals received 1 - - Research and development services provided 58 103 100 Lease rentals paid 35 35 35 Catering expenses paid 344 270 178 Hotel expenses paid 22 26 49 Facility management services paid 24 - - Purchase of Solar power 108 - - Civil works 101 106 - Contributions towards social development 233 220 238 Salaries to relatives of Key Management Personnel 7 5 1 Others 4 1 - The Company had the foll ow As at March 31, 2020 2019 Key management personnel and close members of their families Rs. 8 Rs. 8 Other related parties 68 106 The Company had the following amo un As at March 31, 2020 2019 Due to related parties Rs. 91 Rs. 80 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, 2020 2019 2018 Salaries and other benefits Rs. 684 Rs. 668 Rs. 458 Contributions to defined contribution plans 34 35 38 Commission to directors 298 243 153 Share-based payments expense 165 99 114 Rs. 1,181 Rs. 1,045 Rs. 763 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, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 30. Financial instruments Financial instruments by category The carrying value and fair value of financial instruments as at March 31, 2020 and March 31, 2019 were as follows: As of March 31, 2020 As of March 31, 2019 Total carrying Total fair value Total carrying Total fair value Assets: Cash and cash equivalents Rs. 2,053 Rs. 2,053 Rs. 2,228 Rs. 2,228 Other investments (1) 24,015 24,015 23,343 23,343 Trade and other receivables 52,015 52,015 39,982 39,982 Derivative financial instruments 1,105 1,105 360 360 Other assets (2) 4,170 4,170 2,843 2,843 Total Rs. 83,358 Rs. 83,358 Rs. 68,756 Rs. 68,756 Liabilities: Trade and other payables Rs. 16,659 Rs. 16,659 Rs. 14,553 Rs. 14,553 Derivative financial instruments 1,602 1,602 68 68 Long-term borrowings 5,570 5,570 26,256 26,256 Short-term borrowings 16,441 16,441 12,125 12,125 Bank overdraft 91 91 - - Other liabilities and provisions (3) 25,317 25,317 21,902 21,902 Total Rs. 65,680 Rs. 65,680 Rs. 74,904 Rs. 74,904 (1) Interest accrued but not due on investments is included in other assets. (2) Other assets that are not financial assets (such as receivables from statutory autho ri (3) Other liabilities and provisions that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs.10,725 and Rs.8,898 as of March 31, 2020 and 2019, respectively, are not included. 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, 2020: Particulars Level 1 Level 2 Level 3 Total FVTPL - Financial asset - Investments in units of mutual funds Rs. 13,832 Rs. - Rs. - Rs. .13,832 FVTOCI - Financial asset - Investment in equity securities 303 - - 303 FVTOCI - Financial asset - Investment in market linked debentures 1,993 - - 1,993 Derivative financial instruments – net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - (497 ) - (497 ) The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2019: Particulars Level 1 Level 2 Level 3 Total FVTPL - Financial asset - Investments in units of mutual funds Rs. 16,240 Rs. - Rs. - Rs. 16,240 FVTOCI - Financial asset - Investment in equity securities 791 - - 791 Derivative financial instruments – net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 292 - 292 (1) The Company enters into derivative financial instruments with various counterparties, principally financial institutions and banks. Deri v As at March 31, 2020 and 2019, 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.1,105 and Rs.1,602, respectively, as of March 31, 2020, as compared to derivative financial asset and derivative financial liability of Rs.360 and Rs.68, respectively, as of March 31, 2019, 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, 2020 2019 2018 Net gain/(loss) recognized in finance costs in respect of foreign exchange derivative contracts and cross currency interest rate swaps contracts Rs. 155 Rs. (257 ) Rs. 168 Net gain/(loss) recognized in equity in respect of hedges of highly probable forecast transactions (951 ) 180 (82 ) Net gain/(loss) reclassified from equity and recognized as component of revenue occurrence of forecasted transaction (50 ) (524 ) 651 The net carrying amount of the Company’s “hedging reserve” as a component of equity before adjusting for tax i mp 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, 2020. Category Instrument Currency (1) Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 148 Sell Forward contract RUB INR RUB 5,968 Sell Forward contract GBP INR GBP 9 Sell Forward contract AUD INR AUD 4 Sell Forward contract CHF INR CHF 200 Sell Forward contract ZAR INR ZAR 71 Sell Forward contract CHF U.S.$ CHF 200 Buy Forward contract EUR GBP EUR 3 Sell Forward contract EUR U.S.$ EUR 6 Buy Forward contract GBP U.S.$ GBP 38 Buy Forward contract U.S.$ AUD U.S.$ 5 Buy Forward contract U.S.$ BRL U.S.$ 6 Buy Forward contract U.S.$ CLP U.S.$ 4 Buy Forward contract U.S.$ COP U.S.$ 4 Buy Forward contract U.S.$ KZT U.S.$ 11 Buy Forward contract U.S.$ MXN U.S.$ 2 Buy Forward contract U.S.$ RON U.S.$ 7 Buy Forward contract U.S.$ RUB U.S.$ 6 Buy Forward contract U.S.$ UAH U.S.$ 19 Buy Forward contract U.S.$ INR U.S.$ 140 Sell Hedges of highly probable forecast transactions Option contract U.S.$ INR U.S.$270 Sell The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2019. Category Instrument Currency (1) Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 261 Sell Forward contract RUB INR RUB 2,710 Sell Forward contract GBP INR GBP 18 Sell Forward contract U.S.$ RUB U.S.$ 30 Buy Forward contract GBP U.S.$ GBP 23 Buy Hedges of highly probable forecast transactions Forward contract RUB INR RUB 1,350 Sell Option contract U.S.$ INR U.S.$ 300 Sell (1) “INR” means Indian rupees, “U.S.$” means United States dollars, “RON” means Romanian new leus, “GBP” means U.K. po un 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, 2020 2019 Cash flows in U.S. Dollars Not later than one month Rs. 2,648 Rs. 2,420 Later than one month and not later than three months 5,297 4,841 Later than three months and not later than six months 7,945 7,261 Later than six months and not later than one year 4,540 6,225 Rs. 20,430 Rs. 20,747 Cash flows in Roubles Not later than one month Rs. - Rs. 161 Later than one month and not later than three months - 320 Later than three months and not later than six months - 480 Later than six months and not later than one year - 480 Rs. - Rs. 1,441 Hedges of changes in the interest rates: Consistent with its risk management policy, the Company uses int er A net gain/(loss) of Rs. Nil, representing the changes in the fair value of interest rate swaps used as hedging instrument in a cash flow hedge is recognized in the statement of other comprehensive income. For balance interest rate swaps, the changes in fair value (including cross currency interest rate swaps) are recognized as part of the finance costs. Accordingly the Company has recorded, as part of finance cost, a net gain of Rs.33 and a net loss of Rs.0 for the year ended March 31, 2020 and 2019 respectively. 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 Nil and U.S.$50 as at March 31, 2020 and 2019, respectively. |
Financial risk management
Financial risk management | 12 Months Ended |
Mar. 31, 2020 | |
Financial risk management [Abstract] | |
Financial risk management | 31. 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, South African rands, Mexican pesos and Brazilian reals). 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 30 to these consolidated financial statements. 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.1,203/(1,740) increase/(decrease) in the Company’s hedging reserve and a Rs.2,070/(1,745) increase/(decrease) in the Company’s profit from such contracts, as at March 31, 2020; • a Rs.1,872/(1,349) increase/(decrease) in the Company’s hedging reserve and a Rs.1,789/(1,873) increase/(decrease) in the Company’s profit from such contracts, as at March 31, 2019; and • 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. The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2020: U.S. dollars Euro Russian roubles Others (1) Total Assets: Cash and cash equivalents Rs. 365 Rs. 43 Rs. 4 Rs. 135 Rs. 547 Other investments 24 - - - 24 Trade and other receivables 31,931 705 989 317 33,942 Other assets 921 15 3 153 1,092 Total Rs. 33,241 Rs. 763 Rs. 996 Rs. 605 Rs. 35,605 Liabilities: Trade and other payables Rs. 1,857 Rs. 525 Rs. - Rs. 73 Rs. 2,455 Long-term borrowings 4,401 2 3 77 4,483 Short-term borrowings 7,316 - - - 7,316 Other liabilities and provisions 5,534 60 52 400 6,046 Total Rs. 19,108 Rs. 587 Rs. 55 Rs. 550 Rs. 20,300 The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2019: U.S. dollars Euro Russian roubles Others (1) Total Assets: Cash and cash equivalents Rs. 339 Rs. 30 Rs. 58 Rs. 418 Rs. 845 Other investments 20 - - - 20 Trade and other receivables 20,524 437 7,290 2,969 31,220 Other assets 298 18 68 138 522 Total Rs. 21,181 Rs. 485 Rs. 7,416 Rs. 3,525 Rs. 32,607 Liabilities: Trade and other payables Rs. 2,426 Rs. 1,044 Rs. - Rs. 267 Rs. 3,737 Long-term borrowings 5,186 - - - 5,186 Short-term borrowings 7,538 - 1,387 307 9,232 Other liabilities and provisions 6,542 58 1,517 855 8,972 Total Rs. 21,692 Rs. 1,102 Rs. 2,904 Rs. 1,429 Rs. 27,127 (1) Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus, Chinese Yuans (Renminbi), Canadian Dollars and Ukrainian hryvnia. For the years ended March 31, 2020 and 2019, 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.1,531 and Rs.548, respectively. Interest rate risk As of March 31, 2020, the Company had loans with floating interest rates as follows: Rs.10,971 of loans carrying a floating interest rate ranging from 1 Month LIBOR plus 12.5 bps to 1 Month LIBOR plus 82.7 bps; Rs.4,000 of loans carrying a floating interest rate of 1 Month India Treasury Bill plus 60 bps; Rs.1,627 of loans carrying a floating interest rate of 3 Month LIBOR plus 55 bps; Rs.1,579 of loans carrying a floating interest rate of TIIE+1.25%; and Rs.63 of loans carrying a floating interest rate of 1 Month JIBAR plus 120 bps. As of March 31, 2019, the Company had loans with floating interest rates as follows: Rs.31,154 of loans carrying a floating interest rate ranging from 1 Month LIBOR plus 25 bps to 1 Month LIBOR plus 105 bps; Rs.72 of loans carrying a floating interest rate of 1 Month JIBAR plus 120 bps; and Rs.1,749 of loans carrying a floating interest rate of TIIE+1.25%. 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 16 of these consolidated financial statements. For the years ended March 31, 2020, 2019 and 2018, every 10% increase or decrease in the floating interest rate component (i.e., LIBOR, JIBAR, T-bill and TIIE) applicable to its loans and borrowings would affect the Company’s net profit by Rs.41, Rs.93 and Rs.77, respectively. The carrying value of the Company’s borrowings, interest component of which was designated in a cash flow hedge, was Rs. Nil and Rs.3,458 as of March 31, 2020 and 2019, respectively. 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, 2020, 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 expected 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. Details of financial assets – not due, past due and 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 Ma rc The aging of trade and other receivables is given below: As of March 31, Particulars 2020 2019 Neither past due nor impaired Rs. 45,864 Rs. 33,874 Past due but not impaired Less than 365 days 6,305 6,262 More than 365 days 1,048 1,018 Rs. 53,217 Rs. 41,154 Less : Allowance for credit losses (1,202 ) (1,172 ) Total Rs. 52,015 Rs. 39,982 See Note 8 of these consolidated financial statements for the activity in the allowance for credit losses on trade and other receivables. Other than trade and other 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, 2020 and 2019, the Company had uncommitted lines of credit from banks of Rs.39,374 and Rs.47,134, respectively. As of March 31, 2020, the Company had working capital of Rs.57,556, including cash and cash equivalents of Rs.2,053, investments in term deposits with banks, bonds and commercial paper of Rs.7,862, investments in marked linked debentures of Rs.1,993 and investments in mutual funds of Rs.13,832. As of March 31, 2019, the Company had working capital of Rs.54,801, including cash and cash equivalents of Rs.2,228, investments in term deposits with banks (i.e., deposits having original maturities of more than 3 months), bonds and commercial paper of Rs.6,289 and investments in mutual funds of Rs.16,240. The table below provides details regarding the contractual maturities of significant financial liabilities (other than long-term borrowings and obligations under leases, which have been disclosed in Note 16 to these consolidated financial statements) as at March 31, 2020: Particulars 2021 2022 2023 2024 Thereafter Total Trade and other payables Rs. 16,659 Rs. - Rs. - Rs. - Rs. - Rs. 16,659 Bank overdraft, short-term borrowings 16,532 - 16,532 Derivative financial instruments 1,602 - 1,602 Other liabilities and provisions 24,566 - 751 25,317 The table below provides details regarding the contractual maturities of significant financial liabilities (other than long-term borrowings and obligations under finance leases, which have been disclosed in Note 16 to these consolidated financial statements) as at March 31, 2019: Particulars 2020 2021 2022 2023 Thereafter Total Trade and other payables Rs. 14,553 Rs. - Rs. - Rs. - Rs. - Rs. 14,553 Bank overdraft, short-term borrowings 12,125 12,125 Derivative financial instruments 68 68 Other liabilities and provisions 21,113 17 17 17 738 21,902 |
Contingencies
Contingencies | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies | 32. 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 Launch of product On June 14, 2018, the U.S. FDA granted the Company final approval for buprenorphine and naloxone sublingual film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg dosages, a therapeutic equivalent generic version of Suboxone® sublingual film. The U.S. FDA approval came after the conclusion of litigation in the U.S. District Court for the District of Delaware (the “Delaware District Court”), where the Delaware District Court held that patents covering Suboxone® sublingual film would not be infringed by the Company’s commercial launch of its generic sublingual film product. In light of the favorable decision from the Delaware District Court, the Company launched its generic sublingual film product in the U.S. immediately following the U.S. FDA approval on June 14, 2018. On July 12, 2019, the U.S. Court of Appeals for the Federal Circuit (“the Court of Appeals”) affirmed the Delaware District Court’s ruling that the Company’s generic version of Suboxone® sublingual films did not infringe the two remaining patents at issue in the Delaware District Court’s case (U.S. patent numbers 8,603,514 and 8,015,150). After the Delaware District Court’s decision, Indivior filed a second lawsuit against the Company alleging infringement of three additional U.S. patents (numbers 9,687,454, 9,855,221 and 9,931,305) in the U.S. District Court for the District of New Jersey (the “New Jersey District Court”), styled Indivior Inc. et al. v. Dr. Reddy’s Laboratories S.A. On November 20, 2018, the Court of Appeals issued a decision vacating the preliminary injunction. The Court of Appeals denied Indivior’s petition for rehearing on February 4, 2019. Indivior subsequently filed two emergency motions in the Court of Appeals to stay issuance of the mandate and to keep the preliminary injunction in place, which the Court of Appeals denied. Indivior then petitioned the U.S. Supreme Court to stay issuance of the mandate. Indivior’s petition was denied by the Chief Justice of the U.S. Supreme Court on February 19, 2019, and the mandate was issued on the same day. The Company resumed sales of its generic sublingual film product after the mandate was issued. On February 19, 2019, the New Jersey District Court entered a stipulated order of dismissal of Indivior’s claims under U.S. patent number 9,855,221. On November 5, 2019, the New Jersey District Court issued its claim construction decision construing certain terms in U.S. patent numbers 9,931,305 and 9,687,454. After such claim construction decision, on January 8, 2020, the New Jersey District Court entered a stipulated order that the Company’s generic sublingual film product does not infringe the asserted claims in U.S. patent number 9,931,305. In the stipulated order, Indivior reserved the ability to appeal the New Jersey District Court’s claim construction order. The Company has filed a motion requesting the New Jersey District Court enter partial final judgment in the Company’s favor relating to the allegations of infringement of U.S. patent number 9,931,305. On November 11, 2019, a Magistrate Judge in the District of New Jersey granted the Company leave to file a counterclaim against Indivior that alleges that Indivior engaged in anticompetitive conduct by making false or misleading statements to the New Jersey District Court during the preliminary injunction proceedings in violation of federal antitrust laws. Indivior has appealed the Magistrate Judge’s decision to the New Jersey District Court. Indivior has also filed a motion requesting that the New Jersey District Court bifurcate and stay the antitrust case until after the completion of Indivior’s infringement case regarding the only remaining asserted patent (U.S. patent number 9,687,454). The parties continue to litigate Indivior’s allegation that the Company’s generic sublingual film products infringe any valid claim of U.S. patent number 9,687,454, with such litigation ongoing before the New Jersey District Court and the Patent Trial and Appeal Board (“PTAB”). In the PTAB, on November 13, 2018, the Company filed two petitions for inter-partes review challenging the validity of certain claims of U.S. patent number 9,687,454 before the PTAB. On June 13, 2019, the PTAB agreed to institute inter-partes review on one of the two petitions filed by the Company. The PTAB heard oral argument in the pending inter-partes review challenge on March 3, 2020. On June 2, 2020, the PTAB issued a final written decision (“FWD”) in the Company’s favor finding that the Company had demonstrated that claims 1–5, 7, and 9–14 of the ’454 patent were unpatentable. The PTAB upheld the validity of only one of the challenged claims, claim 8. Additionally, claim 6 was not at issue in the inter-partes review and therefore not subject to the FWD. Claims 6 and 8 remain asserted against the Company in the New Jersey District Court litigation. The PTAB’s decision becomes effective after the time for Indivior to appeal has expired or after any appeal taken by Indivior has concluded. The Company intends to vigorously defend its positions and pursue a claim for damages caused by the preliminary injunction. Any liability that may arise on account of this litigation is unascertainable. Accordingly, no provision was made in the consolidated financial statements of the Company. 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. The matter has been adjourned to August 4, 2020 for hearing. 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 June 16, 2020 for hearing. Based on its best estimate, the Company has recorded a provision of Rs.268 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 Child resistant packaging matter complaint under the False Claims Act (“FCA”) 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. During the three months ended March 31, 2018, the Company obtained dismissal of the FCA Complaint with prejudice. The plaintiffs subsequently 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. In June 2018, the plaintiffs filed their Notice of Appeal to the Third Circuit Court of Appeals. During the three months ended September 2018, the plaintiffs and the DOJ settled and thus this appeal was dismissed. The plaintiffs then filed an application for recovery of attorneys' fees from the Company under the "alternative remedy doctrine." The Company made opposing filings to this and in response the plaintiffs withdrew their application. The Company believes that the likelihood of any liability that may arise on account of the FCA Complaint is not probable. Accordingly, no provision has been made in these consolidated financial statements. Namenda Litigation 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. Defendants' motions to dismiss were denied. Discovery is ongoing. On November 5, 2019 plaintiffs MSP Recovery Claims, Series LLC and MSPA Claims 1, LLC filed suit against the Company and other drug manufacturers in the United States District Court for the Southern District of New York. The claims in this complaint were similar in nature to the claims in the Sergeants lawsuit, and those cases were coordinated for discovery purposes. On April 14, 2020, with the consent of the Company and the other defendants, plaintiffs MSP Recovery Claims, Series LLC and MSPA Claims 1, LLC voluntarily dismissed their claims without prejudice. Other class action complaints 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, apart from the Sergeants case described above, there are no such class actions that are pending and that 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. Ranitidine Recall and Litigation On October 1, 2019, the Company initiated a voluntary nationwide retail (at the retail level for over-the-counter products and at the consumer level for prescription products) of all of its ranitidine medications sold in the United States due to the presence of N-Nitrosodimethylamine (“NDMA”) above levels established by the U.S. FDA. NDMA is classified as a probable human carcinogen (a substance that could cause cancer) based on results from laboratory tests. On November 1, 2019, the U.S. FDA issued a statement indicating that it had found levels of NDMA in ranitidine from its testing generally that were “similar to the levels you would expect to be exposed to if you ate common foods like grilled or smoked meats.” See https://www.fda.gov/news-events/press-announcements/statement-new-testing-results-including-low-levels-impurities-ranitidine-drugs https://www.fda.gov/safety/medical-product-safety-information/all-ranitidine-products-zantac-press-release-fda-requests-removal?utm_campaign=FDA%20MedWatch One of the Company’s U.S. subsidiaries and one Swiss subsidiary were initially named as a defendant in one class action complaint in the Northern District of Illinois related to ranitidine (the “White Putative Class Action”), which was later transferred to the Southern District of Florida as a related action in the ranitidine multidistrict litigation (“MDL”). Plaintiffs in the White Putative Class Action do not allege that they have suffered any injury arising from the ingestion of the Company’s ranitidine, but sought certification of a nationwide class of all individuals who used prescription or over-the-counter ranitidine manufactured by the Company and who have not been diagnosed with cancer. The White Putative Class Action was dismissed without prejudice as to the Company’s U.S. subsidiary and Swiss subsidiary on March 2, 2020. One of the Company’s U.S. subsidiaries has been named as a defendant, along with several other pharmaceutical manufacturers and retailers, in seventeen individual injury lawsuits, which are part of the ranitidine MDL. All seventeen cases involve personal injury allegations relating to the Plaintiff’s use of ranitidine. The lawsuits involve claims for design defect, failure to warn, negligence, breach of express warranties, and breach of implied warranties. The plaintiffs in the various personal injury lawsuits seek to recover unspecified compensatory damages, punitive damages, interest, and attorneys’ fees as allowed by law. One of the Company’s U.S. subsidiaries was also named as a defendant, along with several other pharmaceutical manufacturers and retailers, in a class action complaint, which is also part of the ranitidine MDL. The class action complaint does not allege that plaintiffs suffered personal injuries by taking ranitidine, but rather that they suffered economic losses stemming from the purchase of ranitidine, which was purportedly worth less than they paid due to the levels of NDMA contained therein. Multiple other putative class actions and individual injury lawsuits against other ranitidine manufacturers and sellers have been filed and comprise the MDL. While various interested party filings have predicted thousands of ranitidine-related lawsuits will be filed, it is not possible at this time to accurately predict the scope of the litigation as a whole or the extent of the Company’s role or involvement in ranitidine-related litigation. The Company denies any wrongdoing and intends to vigorously defend against these claims. The Company believes that all of the aforesaid complaints and asserted claims are without merit and intends to vigorously defend itself against the allegations. Also, any liability that may arise on account of these claims is unascertainable. Accordingly, no provision was made in these consolidated financial statements of the Company. 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. In response to the consolidated new complaint, the Company filed a motion to dismiss in October 2017. The plaintiffs filed opposition to the motion to dismiss in December 2017 and a reply was filed by the Company in January 2018. In October 2018, the Court denied the motion to dismiss on the grounds that the allegations pled leave open the possibility of conspiracy. Therefore, discovery will proceed to look into this possibility. The Company believes that the asserted claims are without merit and intends to vigorously defend itself against the allegations. Also any liability that may arise on account of these claims is unascertainable. Accordingly, no provision was made in the consolidated financial statements of the Company. United States Antitrust Multi-District Litigation The following cases against the Company’s U.S. subsidiary, Dr. Reddy’s Laboratories, Inc., have been filed and are pending and consolidated in In re Generic Pharmaceutical Pricing Antitrust Litigation, MDL 2724, 14-MD-2724 (Eastern District of Pennsylvania) a) U.S. States Attorneys General Antitrust Complaints: On October 30, 2017, the Attorneys General of forty-nine U.S. States, the Commonwealth of Puerto Rico and the District of Columbia, filed an Amended Complaint in the United States District Court for the Eastern District of Pennsylvania, against eighteen generic pharmaceutical companies (including the Company’s U.S. subsidiary) with respect to fifteen generic drugs, alleging that the Company’s U.S. subsidiary and the other named defendants engaged in a conspiracy to fix prices and to allocate bids and customers in the United States in the sale of the fifteen named drugs. The Company’s U.S. subsidiary is specifically named as a defendant with respect to two generic drugs (meprobamate and zoledronic acid), and is named as an alleged co-conspirator on an alleged “overarching conspiracy” with respect to the other thirteen generic drugs named. The Amended Complaint alleges violations of Section 1 of the Sherman Act, 15 U.S.C. §1, and the consumer protection and antitrust laws of each of the jurisdictions that are plaintiffs. The Amended Complaint seeks injunctive relief, statutory penalties, punitive damages, and recovery of treble damages, plus attorney’s fees and costs, against all named defendants on a joint and several basis, on behalf of the plaintiff jurisdictions and their citizens and inhabitants. The Company denies any wrongdoing and intends to vigorously defend against the claims asserted. On May 10, 2019, the Attorneys General of forty-nine U.S. States, the Commonwealth of Puerto Rico and the District of Columbia, filed a Complaint in the United States District Court for the District of Connecticut against twenty-one generic pharmaceutical companies (including the Company’s U.S. subsidiary) and fifteen individual defendants, with respect to 116 generic drugs, alleging that the Company’s U.S. subsidiary and the other named defendants engaged in a conspiracy to fix prices and to allocate bids and customers in the United States in the sale of the 116 named drugs. Under the MDL rules, this action will be designated a related “tag along” action and will be transferred to and become a part of the MDL-2724. The Company’s U.S. subsidiary is specifically named as a defendant with respect to five generic drugs (ciprofloxacin HCL tablets, glimepiride tablets, oxaprozin tablets, paricalcitol and tizanidine), and is named as an alleged co-conspirator on an alleged “overarching conspiracy” with respect to the other thirteen generic drugs named. The Complaint alleges violations of Section 1 of the Sherman Act, 15 U.S.C. §1, and the consumer protection and antitrust laws of each of the jurisdictions that are plaintiffs. The Complaint seeks injunctive relief, statutory penalties, punitive damages, and recovery of treble damages, plus attorney’s fees and costs, against all named defendants on a |
Collaboration agreement with Cu
Collaboration agreement with Curis, Inc. | 12 Months Ended |
Mar. 31, 2020 | |
Curis, Inc. [Member] | |
Collaboration Agreement [Line Items] | |
Collaboration agreement with Curis, Inc. | 33. 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, 2019, lock-up restrictions were released on an aggregate of 10.2 million of such additional shares of Curis common stock, representing 100% of the shares which Aurigene received from Curis in 2016. In May 2018, Curis completed a 1-for-5 reverse stock split of its common stock. After giving effect to such stock split, the total number of Curis equity shares held by the Company is 5.47 million. 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 instruments at FVTOCI. Accordingly, loss of Rs.2,407 arising from changes in the fair value of such shares of common stock was recognized in other comprehensive income as of March 31, 2020. |
Update on the warning letter fr
Update on the warning letter from the U.S. FDA | 12 Months Ended |
Mar. 31, 2020 | |
US FDA [Member] | |
Update on the warning letter from the US FDA [Line Items] | |
Disclosure of update on the warning letter from regulatory authority explanatory | 34. Update on the 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. Tabulated below are the further updates with respect to the aforementioned sites: Month and year Update February, March and April 2017 The U.S. FDA completed the re-inspection of the aforementioned manufacturing facilities. 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. 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 was successfully closed. November 2017 The Company received EIRs from the U.S. FDA for the oncology manufacturing facility at Duvvada which indicated that the inspection status of this facility remained unchanged. February 2018 The Company received EIRs from the U.S. FDA for API manufacturing facility at Srikakulam which indicated that the inspection status of this facility remained unchanged. June 2018 The Company requested the U.S. FDA to schedule a re-inspection of the oncology formulation manufacturing facility at Duvvada. October 2018 The re-inspection was completed for the oncology formulation manufacturing facility at Duvvada and the U.S. FDA issued a Form 483 with eight observations. November 2018 The Company responded to the observations identified by the U.S. FDA for the oncology formulation manufacturing facility at Duvvada in October 2018. February 2019 The U.S. FDA issued an EIR indicating successful closure of the audit of the oncology formulation manufacturing facility at Duvvada. With respect to the API manufacturing facility at Srikakulam, subsequent to the receipt of EIR in February 2018, the Company was asked, in October 2018, to carry out certain detailed investigations and analyses and the Company submitted the results of the investigations and analyses. As part of the review of the response by the U.S. FDA, certain additional follow on queries were received by the Company, and the Company responded to all such queries in January 2019. In February 2019, the Company received certain other follow on questions from the U.S. FDA and the Company responded to these questions in March 2019. The U.S. FDA completed the audit on January 28, 2020. The Company was issued a Form 483 with 5 observations and responded to the observations in February 2020. In May 2020, the Company received an EIR from the U.S. FDA, for the above-referred facility, indicating closure of the audit and classifying the inspection of this facility as Voluntary Action Indicated (“VAI”). With this, all facilities under warning letter are now determined as VAI. Inspection of other facilities: Tabulated below are the details of the U.S. FDA inspections at other facilities of the Company carried out during the fiscal years ended March 31, 2019 and 2020: Located in India Month and year Unit Details of observations June 2018 API Srikakulam Plant (SEZ) No observations were noted. An EIR indicating the closure of audit for this facility was issued by the U.S. FDA in August 2018. November 2018 Formulations Srikakulam Plant (SEZ) Unit II No observations were noted. An EIR indicating the closure of audit for this facility was issued by the U.S. FDA in February 2019. January 2019 Formulations Srikakulam Plant (SEZ) Unit I Four observations were noted. The Company responded to the observations and an EIR indicating the closure of audit for this facility was issued by the U.S. FDA in April 2019. January 2019 API manufacturing Plant at Miryalaguda, Nalgonda One observation was noted. The Company responded to the observation. In May 2019, an EIR was issued by the U.S. FDA indicating the closure of audit and the inspection classification of the facility was determined as VAI. January 2019 Formulations manufacturing facility at Bachupally, Hyderabad Eleven observations were noted. The Company responded to the observations in January 2019. In April 2019, an EIR was issued by the U.S. FDA indicating the closure of audit and the inspection classification of the facility was determined as VAI. March 2019 Aurigene Discovery Technologies Limited, Hyderabad No observations noted. In June 2019, the Company received an EIR from the U.S. FDA indicating the closure of audit for this facility. June 2019 Formulations manufacturing plants, Duvvada {Vizag SEZ plant 1 (FTO VII) and Vizag SEZ plant 2(FTO IX)} Two observations were noted. The Company responded to the observations. In September 2019, an EIR was issued by the U.S. FDA indicating the closure of audit of these facilities. July 2019 API Hyderabad plant 2, Bollaram, Hyderabad Five observations were noted during U.S. FDA inspection. The Company responded to the observations in August 2019. In October 2019, an EIR was issued by the U.S. FDA indicating the closure of audit and the inspection classification of the facility was determined as VAI. August 2019 Formulations manufacturing plants, (Vizag SEZ plant 1), Duvvada, Visakhapatnam (FTO VII) Eight observations were noted. The Company responded to the observations in September 2019 and is awaiting an EIR. In February 2020, an EIR was issued by the U.S. FDA indicating the closure of audit and the inspection classification of the facility was determined as VAI. August 2019 Formulations manufacturing facility at Shreveport, Louisiana, U.S.A No observations were noted. In October 2019, an EIR was issued by the U.S. FDA indicating the closure of the audit and the inspection classification of the facility was determined as No Action Initiated (“NAI”). October 2019 API Srikakulam plant (SEZ), Andhra Pradesh Four observations were noted. The Company responded to the observations in November 2019. In May 2020, an EIR was issued by the U.S. FDA indicating the closure of the audit. February 2020 Formulations Srikakulam Plant (SEZ) Unit I No observations were noted. In May 2020, an EIR was issued by the U.S. FDA indicating the closure of the audit and the inspection classification of the facility was determined as NAI. February 2020 Formulations manufacturing facility at Bachupally, Hyderabad (FTO Unit III) One observation was noted. The Company responded to the observation in March 2020. In May 2020, an EIR was issued by the U.S. FDA indicating the closure of the audit. Month and year Unit Details of observations February 2020 Integrated Product Development Organization (IPDO) at Bachupally, Hyderabad No observation was noted. In May 2020, an EIR was issued by the U.S. FDA indicating the closure of the audit and the inspection classification of the facility was determined as NAI. March 2020 API manufacturing Plant at Miryalaguda, Nalgonda Three observations were noted. The Company responded to the observations in March 2020. In April 2020, an EIR was issued by the U.S. FDA indicating the closure of audit and the inspection classification of the facility was determined as VAI. |
Inspection by the regulatory au
Inspection by the regulatory authority of Bavaria, Germany | 12 Months Ended |
Mar. 31, 2020 | |
Inspection By Regulatory Authority Explanatory [Line Items] | |
Disclosure of inspection by regulatory authority explanatory | 35. 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, in September 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. The Regulator accepted it and permitted the Company to start production from this facility for the EU market. In November 2018, the Regulator concluded the follow-on inspection of the manufacturing facility at Duvvada, which is now considered compliant and its EU-GMP certification continues to remain active with one specific exclusion of a new product. The Company submitted a Corrective and Preventive Action Plan (“CAPA”) to the Regulator to address the remaining issues affecting this excluded product. In March 2019, the facility was re-inspected by the Regulator and considered to be fully compliant. |
Agreements with Encore Dermatol
Agreements with Encore Dermatology, Inc. | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Encore Dermatology Agreements [Abstract] | |
Agreements with Encore Dermatology, Inc. | 36. Agreements with Encore Dermatology, Inc. During the year ended March 31, 2019 The Company entered into an agreement with Encore Dermatology, Inc. (“Encore”) for the sale and assignment of its U.S. rights relating to its dermatology brands, Sernivo® (betamethasone dipropionate) Spray 0.05%, Promiseb® Topical Cream and Trainex® 0.05% (triamcinolone acetonide ointment, USP). All the performance obligations were satisfied by March 31, 2019, and accordingly the Company recognized Rs.1,807 as revenue and Rs.159 representing the profit on sale of intangible assets as other income, after adjusting the associated costs. This transaction pertains to the Company’s Proprietary Products segment. During the year ended March 31, 2018 During the year ended March 31, 2018, the Company entered into an agreement with Encore for out-licensing one of its products, DFD-06. The consideration for this arrangement consists of up to Rs.1,301 (U.S.$20) in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 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 Rs.1,301 (U.S.$20) was recognized. |
Definitive agreement with Upshe
Definitive agreement with Upsher-Smith Laboratories, LLC | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Definitive agreement with UpsherSmith Laboratories LLC [Abstract] | |
Definitive agreement with Upsher-Smith Laboratories, LLC | 37. Definitive agreement with Upsher-Smith Laboratories, LLC On June 14, 2019, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC, pursuant to which the Company agreed to sell, at the closing thereunder, its U.S. and select territory rights for ZEMBRACE ® ® ® Under the agreement, the Company received U.S.$70 as upfront consideration at the closing thereunder, and is entitled to receive up to U.S.$40.5 in payments contingent upon the achievement of near term milestones and additional financial objectives, including those based upon existing contractual obligations and inventory. In addition, the Company will be entitled to receive sales based royalties on a quarterly basis. In July 2019, upon the closing of the transaction, the Company recognized Rs.7,486 (U.S.$108.7) as a license fee forming part of revenue in accordance with guidance available under IFRS 15, “ Revenue from Contracts with Customers”. |
Merger of Dr. Reddy's Holdings
Merger of Dr. Reddy's Holdings Limited into Dr. Reddy's Laboratories Limited | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Merger Of Dr Reddys Holdings Limited Into Dr Reddys Laboratories Limited [Abstract] | |
Merger of Dr. Reddy's Holdings Limited into Dr. Reddy's Laboratories Limited | 38. Merger of Dr. Reddy’s Holdings Limited into Dr. Reddy’s Laboratories Limited The Board of Directors, at its meeting held on July 29, 2019, has approved the amalgamation (the “Scheme”) of Dr. Reddy’s Holdings Limited (“DRHL”), an entity held by the Promoter Group, which holds 24.88% of Dr. Reddy’s Laboratories Limited (the “Company”) into the Company. This is subject to the approval of shareholders, stock exchanges, the National Company Law Tribunal and other relevant regulators. The Scheme will lead to simplification of the shareholding structure and reduction of shareholding tiers. The Promoter Group cumulatively would continue to hold the same number of shares in the Company, pre- and post the amalgamation. All costs, charges and expenses relating to the Scheme will be borne out of the surplus assets of DRHL. Further, any expense, if exceeding the surplus assets of DRHL, will be borne directly by the Promoters. The Scheme also provides that the Promoters of the Company will jointly and severally indemnify, defend and hold harmless the Company, its directors, employees, officers, representatives, or any other person authorized by the Company (excluding the Promoters) for any liability, claim, or demand, which may devolve upon the Company on account of this amalgamation. The Scheme of Amalgamation of DRHL with the Company was filed with BSE and NSE (Stock Exchanges) for their consideration and approval. No observation letters were received from the stock exchanges on the basis of no comments received from SEBI on October 11, 2019. The Company has filed an application with the Hon’ble National Company Law Tribunal (“NCLT”) Hyderabad, seeking direction for conducting court convened meetings of the shareholders and unsecured creditors. The Hon’ble NCLT vide its order dated November 22, 2019 directed the Company to conduct meetings of the shareholders’ and creditors. The NCLT also appointed the Chairpersons and Scrutinizers for the respective meetings. The notice convening the shareholders and unsecured creditors meetings on January 2, 2020, were circulated within statutory timelines for approval of Scheme of Amalgamation of DRHL with the Company. The resolutions were passed with requisite majority of shareholders (99.98%) and unsecured creditors (100%) at the respective shareholders and unsecured creditors meetings on January 2, 2020. The petition for approval of the Scheme has been filed with Hon’ble NCLT on January 9, 2020. The NCLT hearing on June 3, 2020 has been adjourned and a new date has not yet been rescheduled. |
Business Transfer Agreement wit
Business Transfer Agreement with Wockhardt Limited | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Business Transfer Agreement with Wockhardt Limited [Abstract] | |
Business Transfer Agreement with Wockhardt Limited | 39. Business Transfer Agreement with Wockhardt Limited In February 2020, the Company signed a Business Transfer Agreement (“BTA”) with Wockhardt Limited (“Wockhardt”) to acquire select divisions of its branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives for a consideration of Rs.18,500. The business comprises of a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malformations, dermatology, gastroenterology, pain and vaccines. This entire portfolio would be transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh and all plant employees (together the “Business Undertaking”). As of March 31, 2020, the acquisition of this Business Undertaking was subject to certain closing conditions, such as approval from shareholders and lenders of Wockhardt and other requisite approvals under applicable statutes. Hence, the transaction was not accounted for the year ended March 31, 2020. The transaction was completed on June 10, 2020. In view of the COVID-19 pandemic and the consequent government restrictions, there has been a reduction in the revenue from the sales of the products forming part of the Business Undertaking during March and April 2020. Subsequently, through an amendment to the BTA, the Company and Wockhardt have agreed that the deal consideration shall now be upto Rs.18,500, to be paid as per the following terms: a. an amount of Rs.14,830 paid on the date of closing; b. an amount of Rs.670 to be deposited in an escrow account which shall be released subject to adjustments for, inter alia, net working capital, employee liabilities and certain other contractual and statutory liabilities; c. an amount of Rs.3,000 (“Holdback Amount”) which shall be released as follows: • If the revenue from sales of the products forming part of the Business Undertaking during the 12 (twelve) months post-closing exceeds Rs.4,800, the Company will be required to pay to Wockhardt, an amount equal to 2 (two) times the amount by which the revenue exceeds Rs.4,800, subject to the maximum of the Holdback Amount. |
Restructuring of pharmaceutical
Restructuring of pharmaceutical services business | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Restructuring of pharmaceutical services business [Abstract] | |
Restructuring of pharmaceutical services business | 40. Restructuring of pharmaceutical services business The Board of Directors of the Company, in their meeting held on March 27, 2020, had approved the plan for restructuring of the Company’s pharmaceutical services business that involves setting up a wholly owned subsidiary and transferring all the As the transaction is between the Company and its subsidiaries, no further disclosures are made in this regard The restructuring activity was completed in June 2020. |
Impact of COVID-19
Impact of COVID-19 | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of Impact of COVID19 [Abstract] | |
Impact of COVID-19 | 41. Impact of COVID-19 The threats posed by the coronavirus outbreak are multifold. In many countries, businesses have been forced to cease or limit their operations for long or indefinite periods of time. Even in India the outbreak has been declared epidemic and on March 24, 2020, the Government of India ordered a nationwide lockdown, limiting movement of the population of India as a preventive measure against the COVID-19 pandemic. As a result, most businesses throughout the world are dealing with lost revenue and disrupted supply chains. The disruption to global supply chains due to factory shutdowns has already exposed the vulnerabilities of many organizations. However, as the Company operates in an industry that is considered essential in India and other countries, its operations were continuing during lockdown by ensuring appropriate safety measures. The Company considered the uncertainty relating to the COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial statements. The Company has also used the principles of prudence in applying judgments, estimates and assumptions including sensitivity analysis. Based on its current estimates, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. As the outbreak continues to evolve, the Company will continue to closely monitor any material changes to future economic conditions. |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Events After Reporting Period [Abstract] | |
Subsequent events | 42. Subsequent events None. Please refer to Notes 19, 32, 39 and 40 of these consolidated financial statements for the details of subsequent events relating to proposed dividend, contingencies, Business Transfer Agreement with Wockhardt Limited and restructuring of pharmaceutical services business, respectively. |
Organizational structure
Organizational structure | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Significant Investments In Subsidiaries Associates And Joint Ventures [Abstract] | |
Organizational structure | 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, 2020: Name of the subsidiary/joint venture Country of Incorporation Percentage of Direct/Indirect Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. Malaysia 100% (3) Aurigene Discovery Technologies Inc. U.S.A. 100% (3) Aurigene Discovery Technologies Limited India 100% Aurigene Pharmaceutical Services Limited (from September 16, 2019) India 100% (3) 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 below footnote (16) Chirotech Technology Limited United Kingdom 100% (2)(5) Dr. Reddy’s Research Foundation India Refer to below footnote (16) Dr. Reddy's Employees ESOS Trust (from July 27, 2018) India Refer to below 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. Chile 100% (10) Dr. Reddy’s Laboratories Inc. U.S.A. 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. Malaysia 100% (10) Dr. Reddy’s Laboratories New York, Inc. U.S.A. 100% (10) Dr. Reddy's Laboratories Philippines Inc. (from May 9, 2018) Philippines 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 Taiwan 100% (10) Dr. Reddy's Laboratories (Thailand) Limited (from June 13, 2018) Thailand 100% (10) Dr. Reddy’s Laboratories, LLC Ukraine 100% (10) Dr. Reddy’s New Zealand Limited. New Zealand 100% (10) Dr. Reddy’s S.R.L 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 China 100% (10) DRANU LLC U.S.A. 50% (2) (13) DRES Energy Private Limited India 26% (14) DRL Impex Limited India 100% (15) Dr. Reddy's Laboratories B.V. (formerly 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 Comany Limited China 51.33% (4) Lacock Holdings Limited Cyprus 100% (10) OOO Dr. Reddy's Laboratories Limited Russia 100% (10) OOO DRS LLC Russia 100% (9) Promius Pharma LLC U.S.A. 100% (6) Reddy Holding GmbH Germany 100% (10) Reddy Netherlands B.V. Netherlands 100% (10) Reddy Pharma Iberia SAU 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 Reddy Netherlands B.V. (from March 28, 2019), formerly a subsidiary of Dr. Reddy’s Research and Development B.V. (2) Entities under liquidation. (3) Indirectly owned through Aurigene Discovery Technologies Limited. (4) Kunshan Rotam Reddy Pharmaceutical Company Limited is a subsidiary as per Indian Companies Act, 2013, 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 OOO Dr. Reddy's Laboratories Limited. (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) Private 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 finan_2
Basis of preparation of financial statements (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 comply in all material aspects 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 by 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, 2020. These consolidated financial statements were authorized for issuance by the Company’s Board of Directors on June 14 |
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; · financial assets are measured either at fair value or at amortized cost, depending on the classification; · employee defined benefit assets/(liabilities) are recognized as the net total of the fair value of plan assets, adjusted for actuarial gains/(losses) and the present value of the defined benefit obligation; · long-term borrowings are measured at amortized cost using the effective interest rate method; · share-based payments are measured at fair value; · investments in joint ventures are accounted for using the equity method; and · right-of-use the assets are recognized at the present value of lease payments that are not paid at that date. This amount is adjusted for any lease payments made at or before the commencement date, lease incentives received and initial direct costs, incurred, if any. |
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, 2020 have been translated into U.S. dollars at the certified foreign exchange rate of U.S.$1.00 = Rs.75.39, as published by the Federal Reserve Board of Governors on March 31, 2020. 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 Registered Public Accounting Firm. |
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 2(c) — Assessment of functional currency; · Notes 3(a) and 14 — Evaluation of joint arrangements; · Notes 3(c), 30 and 31 — Financial instruments; · Notes 3(d) — Business combinations; · Notes 3(e) and (f) — Useful lives of property, plant and equipment and intangible assets; · Notes 3(g) – determination of cost for right-of-use assets and lease term; · Notes 3(h) and 9— Valuation of inventories; · Notes 3(i), 11, 12 and 13— Measurement of recoverable amounts of cash-generating units; · Notes 3 (j) and 27 — Assets and obligations relating to employee benefits; · Notes 3 (j) and 28— Share-based payments; · Note 3(k) — Provisions and other accruals; · Note 3(l) — Measurement of transaction price in a revenue transaction (Sales returns, rebates and chargeback provisions); · Note 3(o) — Evaluation of recoverability of deferred tax assets, and estimation of income tax payable and income tax expense in relation to uncertain tax position; and · Note 32 — Contingencies |
Current and non-current classification | f. Current and non-current classification All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in IAS 1, “Presentation of financial statements” Assets: An asset is classified as current when it satisfies any of the following criteria: a) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is expected to be realized within twelve months after the reporting date; or d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Liabilities: A liability is classified as current when it satisfies any of the following criteria: a) it is expected to be settled in the Company’s normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is due to be settled within twelve months after the reporting date; or d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current assets and liabilities include the current portion of non-current assets and liabilities respectively. All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are always disclosed as non-current. |
Prior period | g. Prior period Prior period amounts have been reclassified to conform to the current year classification. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Significant accounting policies [Abstract] | |
Basis of consolidation | a. 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. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity and balance sheet respectively. 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. With respect to joint operations, the Company recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. Investments in 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. Furthermore, the financial statements of the joint ventures are prepared for the same reporting period as of 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. Changes in ownership 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, depending on the level of influence retained, it is accounted for as an equity-accounted investee or as an investment measured at fair value through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) under IFRS 9, “Financial Instruments” |
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”): - certain debt instruments classified as measured at fair value through other comprehensive income; - certain equity instruments where the Company had made an irrevocable election to present in other comprehensive income subsequent changes in the fair value; - 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 A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Accounting policies relating to financial instruments for periods after March 31, 2018 The Company’s accounting policies relating to financial instruments for periods after March 31, 2018 are as follows: Financial assets Initial recognition and measurement All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (e.g., regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Trade receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components, in which case they are recognized at fair value. The Company’s trade receivables do not contain any significant financing component and hence are measured at the transaction price measured under IFRS 15. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: · Debt instruments at amortized cost; · Debt instruments at FVTOCI; · Debt instruments, derivatives and equity instruments at FVTPL; and · Equity instruments measured at FVTOCI. Debt instruments at amortized cost A “debt instrument” is measured at the amortized cost if both the following conditions are met: a) the asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and b) contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method and are subject to impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on de-recognition is recognized directly in the consolidated income statement and presented in other income/(losses),net. The losses arising from impairment are recognized in the consolidated income statement. This category generally applies to trade and other receivables. Debt instrument at FVTOCI A “debt instrument” is classified as at the FVTOCI if both of the following criteria are met: a) the objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets; and b) the asset’s contractual cash flows represent SPPI. Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (“OCI”). However, the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the consolidated income statement. On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified to the consolidated income statement. Interest earned while holding a FVTOCI debt instrument is reported as interest income using the effective interest rate method. Debt instrument at FVTPL FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as an “accounting mismatch”). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the consolidated income statement. Equity investments 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 at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made upon initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to the consolidated income statement, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity investments designated as FVTOCI are not subject to impairment assessment. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the consolidated income statement. De-recognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s consolidated balance sheet) when: · the rights to receive cash flows from the asset have expired; or · Both (1) the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and (2) either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Impairment of trade receivables and other financial assets In accordance with IFRS 9, the Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on trade receivables or any contractual right to receive cash or another financial asset. For this purpose, the Company follows a “simplified approach” for recognition of impairment loss allowance on the trade receivable balances. The application of this 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. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on 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. Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the consolidated income statement. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains or losses are not subsequently transferred to the consolidated income statement. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the consolidated income statement. The Company has not designated any financial liability as fair value through profit and loss. Loans and borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in consolidated income statement over the period of the borrowings using the effective interest method. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the consolidated income statement when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate . The effective interest rate amortization is included as finance costs in the consolidated income statement. De-recognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated income statement. 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, Swiss francs, South African rands, Kazakhstan tenges, Romanian new leus and Euros, and foreign currency debt in U.S. dollars, Russian roubles, Ukrainian hryvnias and Euros. The Company uses derivative financial instruments such as foreign exchange forward contracts, option contracts and swap contracts 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. Derivatives are classified as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Hedges of highly probable forecasted transactions The Company classifies its derivative financial instruments that hedge foreign currency risk associated with highly probable forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded in the Company’s hedging reserve as a component of equity and re-classified to the consolidated income statement as part of the hedged item in the period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is recorded in the consolidated income statement as finance costs 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 forecasted transactions. Accordingly, the Company applies cash flow hedge accounting to such relationships. Re-measurement gain or loss on such non-derivative financial liabilities is recorded in the Company’s hedging reserve as a component of equity and reclassified to the consolidated income statement as part of the hedged item in the period corresponding to the occurrence of the forecasted transactions. 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 other comprehensive income, remains there until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income 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 in the consolidated income statement. If the hedged item is derecognized, the unamortized fair value is recognized immediately 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. 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. Accounting policies relating to financial instruments for periods ending on or prior to March 31, 2018 The Company’s accounting policies relating to financial instruments for periods ending on or prior to March 31, 2018 are as follows: 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 the 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, Swiss francs, South African rands, Kazakhstan tenges, Romanian new leus 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. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated but subject to impairment. Depreciation methods, useful lives and residual values are reviewed at each reporting date and any changes are considered prospectively. 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 3 - 10 years Vehicles 4 - 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 but are tested for impairment. |
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, 2020, 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 "Impairment of non-current assets". 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: · recognized as an expense when incurred, if it is a research expenditure; · recognized as an expense when incurred, if it is a development expenditure that does not satisfy the criteria for recognition as an intangible asset in paragraph 57 of IAS 38; and · added to the carrying amount of the acquired in-process research or development project, if it is a development expenditure that satisfies the recognition criteria in paragraph 57 of IAS 38. Amortization Amortization is recognized in the consolidated income statement on a straight-line basis over the estimated useful lives of intangible assets. The amortization expense is recognized in the income statement in the expense category that is consistent with the function of the intangible asset. Intangible assets that are not available for use are amortized from the date they are available for use. The estimated useful lives are as follows: Product related intangibles 3 - 15 years Customer-related intangibles 1 - 11 years Other intangibles 3 - 15 years The amortization period and the amortization method for intangible assets with a fi ini Goodwill, 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 As explained in the introduction to this Note 3 above (see New Standards adopted by the Company- IFRS 16,“Leases” Accounting policies relating to leases for periods ending on or after April 1, 2019 The Company's accounting policies relating to leases for periods ending on or after April 1, 2019 are as follows: The Company assesses at contract inception whether a contract is or contains a lease, which applies if the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset at the commencement date of the lease - i.e., the date the underlying asset is available for use. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments to be made over the lease term: · fixed payments (including in-substance fixed payments), less any lease incentives receivable; · variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date; · amounts expected to be payable by the Company under residual value guarantees; · the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and · payments of penalties for terminating the lease, if the lease term reflects the group exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, then the lessee’s incremental borrowing rate is used. Such borrowing rate is calculated as the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Company’s lease liabilities are included in borrowings. Lease payments are allocated between principal and interest cost. The interest cost is charged to consolidated income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment, comprised of the following: · the amount of the initial measurement of lease liability; · any lease payments made at or before the commencement date less any lease incentives received; · any initial direct costs; and · restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in consolidated income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture. The right-of-use assets are initially recognized on the statements of financial position at cost, which is calculated as the amount of the initial measurement of the corresponding lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, any lease incentive received and any initial direct costs incurred by the Company. Accounting policies relating to leases for periods ending on or prior to March 31, 2019 The Company’s accounting policies relating to leases for periods ending on or prior to March 31, 2019 are as follows: 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 | i. Impairment 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 its recoverable amount, nor 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 | j. 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 for defined benefit obligation and plan assets 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 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 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. A contingent asset is disclosed where an inflow of economic benefits is probable. 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 | l. Revenue The Company’s revenue is derived from sales of goods, service income and income from licensing arrangements. Most of such revenue is generated from the sale of goods. The Company has generally concluded that it is the principal in its revenue arrangements. Accounting policies relating to revenue for periods after March 31, 2018 The Company’s accounting policies relating to revenue for periods after March 31, 2018 are as follows: Sale of goods Revenue is recognized when the control of the goods has been transferred to a third party. This is usually when the title passes to the customer, either upon shipment or upon receipt of goods by the customer. At that point, the customer has full discretion over the channel and price to sell the products, and there are no unfulfilled obligations that could affect the customer’s acceptance of the product. Revenue from the sale of goods is measured at the transaction price which is the consideration received or receivable, net of returns, taxes and applicable trade discounts and allowances. Revenue includes shipping and handling costs billed to the customer. In arriving at the transaction price, the Company considers the terms of the contract with the customers and its customary business practices. The transaction price is the amount of consideration the Company is entitled to receive in exchange for transferring promised goods or services, excluding amounts collected on behalf of third parties. The amount of consideration varies because of estimated rebates, returns and chargebacks, which are considered to be key estimates. Any amount of variable consideration is recognized as revenue only to the extent that it is highly probable that a significant reversal will not occur. The Company estimates the amount of variable consideration using the expected value method. Presented below are the points of recognition of revenue with respect to the Company’s sale of goods: Particulars Point of recognition of revenue Sales of generic products in India Upon delivery of products to distributors by clearing and forwarding agents of the Company. Control over the generic products is transferred by the Company when the goods are delivered to distributors from clearing and forwarding agents. Sales of active pharmaceutical ingredients and intermediates in India Upon delivery of products to customers (generally formulation manufacturers), from the factories of the Company. Export sales and other sales outside of India 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 sale 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 only to the extent that it is highly probable that a significant reversal will not occur. At the end of each reporting period, the Company updates the estimated transaction price (including updating its assessment of whether an estimate of variable consideration is constrained) to represent faithfully the circumstances present at the end of the reporting period and the changes in circumstances during the reporting period. Out licensing arrangements, milestone payments and royalties 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. In cases where the transaction has two or more components, the Company accounts for the delivered item (for example, the transfer of title to the intangible asset) as a separate unit of accounting and record revenue upon delivery of that component, provided that the Company can make a reasonable estimate of the fair value of the undelivered component. Otherwise, non-refundable up-front license fees received in connection with product out-licensing agreements are deferred and recognized over the balance period in which the Company has pending performance obligations. Milestone payments which are contingent on achieving certain clinical milestones are recognized as revenues either on achievement of such milestones, over the performance period depending on the terms of the contract. 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. Royalty income earned through a license is recognized when the underlying sales have occurred. 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 or otherwise. 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 refund liability concurrent with the recognition of revenue at the time of a product sale. This liability 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. At the time of recognizing the refund liability, the Company also recognizes an asset, (i.e., the right to the returned goods) which is included in inventories for the products expected to be returned. The Company initially measures this asset at the former carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods. Along with re-measuring the refund liability at the end of each reporting period, the Company updates the measurement of the asset recorded for any revisions to its expected level of returns, as well as any additional decreases in the value of the returned products. 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. License fees License fees primarily consist of income from the out-licensing of intellectual property, and other licensing and supply arrangements with various parties. Revenue from license fees is recognized when control transfers to the third party and the Company’s performance obligations are satisfied. 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. Accounting policies relating to revenue for periods ending on or prior to March 31, 2018 The Company’s accounting policies relating to revenue for periods ending on or prior to March 31, 2018 are as follows: 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 upon 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. Such transfer 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 sale 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 and 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 or otherwise. 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 concurrently 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 from time to time 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, dividend income and gains on the disposal of 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. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that the future taxable profits will allow the deferred tax assets to be recovered. 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. Current and deferred tax is recognized in consolidated income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Accruals for uncertain tax positions require management to make judgments of potential exposures. Accruals for uncertain tax positions are measured using either the most likely amount or the expected value amount, depending on which method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognized unless the tax positions will probably be accepted by the tax authorities. This is based upon management’s interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable amounts. |
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. 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. |
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 Co-Chairman and Managing Director of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker. |
Treasury shares | s. Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in consolidated income statement on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in the share premium. |
Recent accounting pronouncements | t Recent accounting pronouncements Standards issued but not yet effective and not early adopted by the Company Amendments to IFRS 9 and IFRS 7 in response to IBOR reform In September 2019, the International Accounting Standards Board (“IASB”) published “Interest Rate Benchmark Reform, Amendments to IFRS 9, IAS 39 and IFRS 7,” which amended certain of its requirements for hedge accounting. The amendments are designed to support the provision of useful financial information by companies during the period of uncertainty arising from the phasing out of interest-rate benchmarks such as interbank offered rates (“IBORs”). The amendments revise the IASB’s new and old financial instruments Standards, IFRS 9, “Financial Instruments” Financial Instruments: Recognition and Measurement” “Financial Instruments: Disclosures” The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBORs reform. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments are effective as of January 1, 2020, although companies may choose to apply them earlier. The Company is in the process of evaluating the impact of such amendments on its consolidated financial statements. |
Rounding of amounts | u. Rounding of amounts All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest million currency units unless otherwise stated. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Significant Of accounting policies [Abstract] | |
Disclosure of useful lives or depreciation rates, property, plant and equipment [Table Text Block] | Depreciation methods, useful lives and residual values are reviewed at each reporting date and any changes are considered prospectively. 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 3 - 10 years Vehicles 4 - 5 years |
Disclosure of useful lives or amortisation rates, intangible assets other than goodwill [Table Text Block] | The estimated useful lives are as follows: Product related intangibles 3 - 15 years Customer-related intangibles 1 - 11 years Other intangibles 3 - 15 years |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments [Table Text Block] | The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Company’s consolidated financial statements. Segment information: For the Year Ended March 31, Reportable segments Global Generics PSAI Proprietary Products 2020 2019 2018 2020 2019 2018 2020 2019 2018 Revenues (1) (2) Rs. 138,123 Rs. 122,903 Rs. 114,014 Rs. 25,747 Rs. 24,140 Rs. 21,992 Rs. 7,949 Rs. 4,750 Rs. 4,245 Gross profit Rs. 78,449 Rs. 71,924 Rs. 67,190 Rs. 6,190 Rs. 6 ,128 Rs. 4,446 Rs. 7,744 Rs. 4,182 Rs. 3,799 Selling, general and administrative expenses Research and development expenses Impairment of non-current assets Other income, net Results from operating activities Finance income, net Share of profit of equity accounted investees, net of tax Profit before tax Tax (expense)/benefit, net Profit for the year [Continued on next page] [Continued from above table, first column repeated] Segment information: For the Year Ended March 31, Reportable segments Others Total 2020 2019 2018 2020 2019 2018 Revenues (1) (2) Rs. 2,781 Rs. 2,058 Rs. 1,777 Rs. 174,600 Rs. 153,851 Rs. 142,028 Gross profit Rs. 1,626 Rs. 1,196 Rs. 869 Rs. 94,009 Rs. 83,430 Rs. 76,304 Selling, general and administrative expenses 50,129 48,714 46,858 Research and development expenses 15,410 15,573 18,265 Impairment of non-current assets 16,767 210 52 Other income, net (4,290 ) (1,955 ) (788 ) Results from operating activities Rs. 15,993 Rs. 20,888 Rs. 11,917 Finance income, net 1,478 1,117 2,080 Share of profit of equity accounted investees, net of tax 561 438 344 Profit before tax Rs. 18,032 Rs. 22,443 Rs. 14,341 Tax (expense)/benefit, net 1,466 (3,648 ) (4,535 ) Profit for the year Rs. 19,498 Rs. 18,795 Rs. 9,806 (1) Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). (2) Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. Tabulated below are the details of excise duty included in revenues: For the Year Ended March 31, 2020 2019 2018 Excise duty included in revenues - - Rs. 173 |
Analysis of revenues by geography [Table Text block] | Analysis of revenues by geography: 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 2020 2019 2018 India Rs. 32,089 Rs. 28,804 Rs. 25,209 United States 76,028 69,299 68,124 Russia 16,900 15,299 12,610 Others 49,583 40,449 36,085 Rs. 174,600 Rs. 153,851 Rs. 142,028 |
Analysis of revenues within the Global Generics segment [Table Text Block] | Analysis of revenues within the Global Generics segment: An analysis of revenues by therapeutic areas in the Company’s Global Generics segment is given below: For the Year Ended March 31, 2020 2019 2018 Nervous System Rs. 26,825 Rs. 19,726 Rs. 17,347 Gastrointestinal 19,394 19,250 19,153 Oncology 18,245 18,357 16,999 Cardiovascular 14,729 15,106 16,501 Pain Management 13,808 13,806 12,898 Respiratory 10,433 8,130 6,205 Anti-Infective 9,402 7,073 6,557 Others 25,287 21,455 18,354 Total Rs. 138,123 Rs. 122,903 Rs. 114,014 |
Analysis of revenues within the PSAI segment [Table Text Block] | Analysis of revenues within the PSAI segment: An analysis of revenues by therapeutic areas in the Company’s PSAI segment is given below: For the Year Ended March 31, 2020 2019 2018 Cardiovascular Rs. 8,567 Rs. 7,019 Rs. 6,191 Pain Management 5,073 3,364 3,228 Nervous System 2,797 2,741 2,331 Oncology 1,798 2,212 1,650 Dermatology 1,370 1,622 1,606 Anti-Infective 1,097 1,247 1,968 Others 5,045 5,935 5,018 Total Rs. 25,747 Rs. 24,140 Rs. 21,992 |
Disclosure of analysis of Company's non-current assets (other than financial instruments and deferred tax assets)[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 2020 2019 India Rs. 55,083 Rs. 57,205 Switzerland 18,204 33,536 United States 7,065 7,013 Germany 1,435 2,103 Others 5,010 5,241 Rs. 86,797 Rs. 105,098 |
Disclosure of analysis of 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) [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 2020 2019 India Rs. 5,519 Rs. 5,341 Switzerland 1,025 1,112 United States 241 206 Others 688 787 Rs. 7,473 Rs. 7,446 |
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, 2020 2019 2018 Global Generics Rs. 3,666 Rs. 3,791 Rs. 3,606 PSAI 2,804 2,906 2,923 Proprietary Products - - - Others 71 71 66 Rs. 6,541 Rs. 6,768 Rs. 6,595 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash And Cash Equivalents [Text Block] | Cash and cash equivalents consist of the following: As of March 31, 2020 2019 Cash on hand Rs. 2 Rs. 2 Balances with banks 1,807 2,102 Term deposits with banks (original maturities less than 3 months) 244 124 Cash and cash equivalents in the statement of financial position Rs. 2,053 Rs. 2,228 Bank overdrafts used for cash management purposes 91 - Cash and cash equivalents in the statement of cash flow Rs. 1962 Rs. 2,228 Restricted cash balances included above Balance in unclaimed dividend and debenture interest account Rs. 111 Rs. 112 Other restricted cash balances 15 12 |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 are as follows: As of March 31, 2020 As of March 31, 2019 Cost Unrealized gain/(loss) Fair value/ amortized cost (2) Cost Unrealized gain/(loss) Fair value/ amortized cost (2) Current portion In units of mutual funds Rs. 13,686 Rs. 146 Rs. 13,832 Rs. 15,933 Rs. 307 Rs. 16,240 In bonds 1,851 - 1,851 5,272 - 5,272 In commercial paper 967 - 967 459 - 459 In market linked debentures 2,000 (7 ) 1,993 - - - Term deposits with banks 5,044 5,044 558 558 Rs. 23,548 Rs. 139 Rs. 23,687 Rs. 22,222 Rs. 307 Rs. 22,529 Non-current portion In equity securities (1) Rs. 2,701 Rs. (2,397 ) Rs. 304 Rs. 2,703 Rs. (1,911 ) Rs. 792 Others 24 - 24 21 - 21 Rs. 2,725 Rs. (2,397 ) Rs. 328 Rs. 2,724 Rs. (1,911 ) Rs. 813 (1) Primarily represents the shares of Curis, Inc. Refer to Note 33 of these consolidated financial statements for further details. (2) Interest accrued but not due on bonds and debentures, commercial paper and term deposits with banks is included in other current assets. For the purpose of measurement, the aforesaid investments are classified as follows: Investments in units of mutual funds Fair value through profit and loss Investments in bonds, commercial paper, term deposits and others Amortized cost Investments in market linked debentures Fair value through other comprehensive income Investments in equity securities Fair value through other comprehensive income (on account of irrevocable option elected at time of transition) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other receivables [abstract] | |
Trade And Other Receivables [Table Text Block] | As of March 31, 2020 2019 Current Trade and other receivables, gross Rs. 51,480 Rs. 41,041 Less: Allowance for credit losses (1,202 ) (1,172 ) Trade and other receivables, net Rs. 50,278 Rs. 39,869 Non-current Trade and other receivables, gross (1) Rs. 1,737 Rs. 113 Less: Allowance for credit losses - - Trade and other receivables, net Rs. 1,737 Rs. 113 (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 Credit Losses [Table Text Block] | The details of changes in allowance for credit losses during the years ended March 31, 2020 and 2019, are as follows: For the Year Ended March 31, 2020 2019 Balance at the beginning of the year Rs. 1,172 Rs. 952 Adjustment on account of transition to IFRS 9 - 89 Adjusted balance at the beginning of the year Rs. 1,172 Rs. 1,041 Provision made during the year, net of reversals 154 371 Trade and other receivables written off & exchange differences (124 ) (240 ) Balance at the end of the year Rs. 1,202 Rs. 1,172 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Classes of current inventories [abstract] | |
Disclosure of detailed information about inventories [Text Block] | Inventories consist of the following: As of March 31, 2020 2019 Raw materials Rs. 10,594 Rs. 8,920 Work-in-progress 6,806 7,201 Finished goods (includes stock-in-trade) 15,126 14,969 Packing materials, stores and spares 2,540 2,489 Rs. 35,066 Rs. 33,579 |
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, 2020 2019 2018 Raw materials, consumables and changes in finished goods and work in progress Rs. 51,892 Rs. 40,932 Rs. 32,410 Inventory write-downs (1) 3,652 4,016 2,946 (1) Following the Company’s decision to voluntarily recall all of its ranitidine medications sold in United States, due to confirmed contamination with N-Nitrosodimethylamine (“NDMA”) above levels established by the U.S. FDA, the Company recognized Rs.373 as inventory write downs of ranitidine during the year ended March 31, 2020. Furthermore, an amount of Rs.239 was recognized (as a reduction from revenue) as a provision for refund liabilities arising out of the Company’s recall decision. |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Assets [Abstract] | |
Disclosure Of Detailed Information About Other Assets [Text Block] | Other assets consist of the following: As of March 31, 2020 2019 Current Balances and receivables from statutory authorities (1) Rs. 4,445 Rs. 4,398 Export benefits receivable (2) 2,652 2,363 Prepaid expenses 950 951 Others (3) 5,755 4,824 Rs. 13,802 Rs. 12,536 Non-current Security deposits Rs. 613 Rs. 562 Others 231 384 Rs. 844 Rs. 946 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of detailed information about property plant and equipment explanatory | The following is a summary of the changes in carrying value of property, plant and equipment. Particulars Land Buildings Plant and Furniture, Vehicles Total Gross carrying value Balance as at April 1, 2018 Rs. 4,216 Rs. 22,441 Rs. 67,215 Rs. 5,544 Rs. 770 Rs. 100,186 Additions 3 1,476 6,002 707 125 8,313 Disposals (1) (2) (51 ) (892 ) (2,444 ) (541 ) (120 ) (4,048 ) Effect of changes in foreign exchange rates 24 81 167 7 - 279 Balance as at March 31, 2019 Rs. 4,192 Rs. 23,106 Rs. 70,940 Rs. 5,717 Rs. 775 Rs. 104,730 Balance as at April 1, 2019 Rs. 4,192 Rs. 23,106 Rs. 70,940 Rs. 5,717 Rs. 775 Rs. 104,730 Recognition of right of use asset on initial application of IFRS 16 - 723 2 28 400 1,153 Adjusted balance as at April 1, 2019 Rs. 4,192 Rs. 23,829 Rs. 70,942 Rs. 5,745 Rs. 1,175 Rs. 105,883 Additions 4 997 4,278 497 295 6,071 Disposals - (55 ) (706 ) (253 ) (179 ) (1,193 ) Effect of changes in foreign exchange rates (73 ) 185 353 (24 ) (80 ) 361 Balance as at March 31, 2020 Rs. 4,123 Rs. 24,956 Rs. 74,867 Rs. 5,965 Rs. 1,211 Rs. 111,122 Accumulated Depreciation Balance as at April 1, 2018 Rs. 38 Rs. 6,343 Rs. 38,985 Rs. 4,505 Rs. 374 Rs. 50,245 Depreciation for the year - 1,040 6,538 614 170 8,362 Impairment 12 59 17 1 - 89 Disposals (1)(2) (50 ) (612 ) (1,945 ) (523 ) (102 ) (3,232 ) Effect of changes in foreign exchange rates - 43 47 6 - 96 Balance as at March 31, 2019 Rs. - Rs. 6,873 Rs. 43,642 Rs. 4,603 Rs. 442 Rs. 55,560 Balance as at April 1, 2019 Rs. - Rs. 6,873 Rs. 43,642 Rs. 4,603 Rs. 442 Rs. 55,560 Depreciation for the year - 1,306 6,404 562 368 8,640 Impairment - - - - - - Disposals - (36 ) (667 ) (251 ) (158 ) (1,112 ) Effect of changes in foreign exchange rates - 65 223 (11 ) (54 ) 223 Balance as at March 31, 2020 Rs. - Rs. 8,208 Rs. 49,602 Rs. 4,903 Rs. 598 Rs. 63,311 Net carrying value As at April 1, 2018 Rs. 4,178 Rs. 16,098 Rs. 28,230 Rs. 1,039 Rs. 396 Rs. 49,941 As at March 31, 2019 Rs. 4,192 Rs. 16,233 Rs. 27,298 Rs. 1,114 Rs. 333 Rs. 49,170 Add: Capital-work-in-progress Rs. 4,918 Total as at March 31, 2019 Rs. 54,088 As at March 31, 2020 Rs. 4,123 Rs. 16,748 Rs. 25,265 Rs. 1,062 Rs. 613 Rs. 47,811 Add: Capital-work-in-progress Rs. 4,521 Total as at March 31, 2020 Rs. 52,332 (1) Consequent to the Company’s plan to dispose of certain non-current assets, these assets were measured at the lower of their carrying value and their fair value less costs to sell, and Rs.94 had been recognized as impairment loss for the three months ended June 30, 2018. During the three months ended September 30, 2018, the closing conditions were satisfied and the Company sold all of the issued and outstanding membership interests in Dr. Reddy’s Laboratories Tennessee, LLC and certain related assets. The sale resulted in a gain on disposal of Rs.110, which was recognized in the income statements under the heading “Other income, net” as gain on disposal of assets. The gain on disposal includes Rs.113 of foreign currency translation reserve reclassified to the income statements on disposal of foreign operations. (2) During the three months ended December 31, 2018, the Company sold one of its API manufacturing business units located in Jeedimetla, Hyderabad to Therapiva Private Limited. This sale was done on a slump sale basis (an Indian tax law concept which refers to the transfer of a business as a going concern without values being assigned to individual assets and liabilities), including all related property, plant and equipment, current assets, current liabilities, and transfer of employees. An amount of Rs.423 representing the profit on the sale of such business unit was included under the heading “Other income, net”. |
Summary of detailed information about Right-of-Use Assets | The Company has lease contracts for various items of plant and equipment, vehicles and other equipment used in its operations. Below are the carrying amounts of right-of-use assets recognized and the movements during the year. Particulars Land Buildings Plant and Furniture, fixtures and office equipment Vehicles Total Gross carrying value Balance as at April 1, 2019 Rs. 73 Rs. 840 Rs. 12 Rs. - Rs. 37 Rs. 962 Recognition of right of use asset on initial application of IFRS 16 - 723 2 28 400 1,153 Adjusted balance as at April 1, 2019 Rs. 73 Rs. 1,563 Rs. 14 Rs. 28 Rs. 437 Rs. 2,115 Additions - 87 3 17 146 253 Disposals - (1 ) - - (56 ) (57 ) Effect of changes in foreign exchange rates 5 39 1 - 3 48 Balance as at March 31, 2020 Rs. 78 Rs. 1,688 Rs. 18 Rs. 45 Rs. 530 Rs. 2,359 Accumulated Depreciation Balance as at April 1, 2019 Rs. - Rs. 454 Rs. 12 Rs. - Rs. 33 Rs. 499 Depreciation for the year - 267 1 13 210 491 Disposals - (1 ) - - (41 ) (42 ) Effect of changes in foreign exchange rates - 24 1 - (3 ) 22 Balance as at March 31, 2020 Rs. - Rs. 744 Rs. 14 Rs. 13 Rs. 199 Rs. 970 Net carrying value As at March 31, 2020 Rs. 78 Rs. 944 Rs. 4 Rs. 32 Rs. 331 Rs. 1,389 |
Summary of detailed information about amounts recognized in Income statement for Right-of-Use Assets | The following are the amounts recognized in income statement: For the Year Ended March 31, 2020 Depreciation expense of right-of-use assets Rs. 491 Interest expense on lease liabilities 230 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019: As of March 31, 2020 2019 Opening balance, gross Rs. 20,176 Rs. 20,219 Effect of translation adjustments 102 (43 ) Impairment loss (1) (16,284 ) (16,274 ) Closing balance Rs. 3,994 Rs. 3,902 (1) The impairment loss of Rs.16,284 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] | The carrying amount of goodwill (other than those arising upon investment in a joint venture) was allocated to the cash generating units as follows: As of March 31, 2020 2019 PSAI-Active Pharmaceutical Operations Rs. 997 Rs. 997 Global Generics-Complex Injectables 1,372 1,287 Global Generics-North America Operations 1,021 1,005 Global Generics-Branded Formulations 491 491 Others 113 122 Rs. 3,994 Rs. 3,902 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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: Product Customer Others Total Gross carrying value Balance as at April 1, 2018 Rs. 82,187 Rs. 357 Rs. 2,997 Rs. 85,541 Additions 1,542 - 602 2,144 Disposals/De-recognitions (1) (3,219 ) (357 ) - (3,576 ) Effect of changes in foreign exchange rates 1,461 - 1 1,462 Balance as at March 31, 2019 Rs. 81,971 Rs. - Rs. 3,600 Rs. 85,571 Balance as at April 1, 2019 Rs. 81,971 Rs. - Rs. 3,600 Rs. 85,571 Additions 1,641 - 165 1,806 Disposals/De-recognitions (814 ) - (1 ) (815 ) Effect of changes in foreign exchange rates 4,532 - 2 4,534 Balance as at March 31, 2020 Rs. 87,330 Rs. - Rs. 3,766 Rs. 91,096 Amortization/impairment loss Balance as at April 1, 2018 Rs. 39,289 Rs. 357 Rs. 1,230 Rs. 40,876 Amortization for the year 3,432 - 396 3,828 Impairment loss 116 - - 116 Disposals/De-recognitions (1) (2,815 ) (357 ) - (3,172 ) Effect of changes in foreign exchange rates (445 ) - 1 (444 ) Balance as at March 31, 2019 Rs. 39,577 Rs. - Rs. 1,627 Rs. 41,204 Balance as at April 1, 2019 Rs. 39,577 Rs. - Rs. 1,627 Rs. 41,204 Amortization for the year 3,554 - 278 3,832 Impairment loss 16,757 - - 16,757 Disposals/De-recognitions (749 ) - (1 ) (750 ) Effect of changes in foreign exchange rates 2,392 - 2 2,394 Balance as at March 31, 2020 Rs. 61,531 Rs. - Rs. 1,906 Rs. 63,437 Net carrying value As at April 1, 2018 Rs. 42,898 Rs. - Rs. 1,767 Rs. 44,665 As at March 31, 2019 Rs. 42,394 Rs. - Rs. 1,973 Rs. 44,367 As at March 31, 2020 Rs. 25,799 Rs. - Rs. 1,860 Rs. 27,659 (1) Gain on disposal of assets for the year ended March 31, 2019 includes an amount of Rs.682 representing the profit on sale of intangible assets forming part of the Company’s Proprietary Products segment. |
Description Of Intangible Assets Other than Goodwill And Remaining Amortization Period | Details of significant separately acquired intangible assets as at March 31, 2020 are as follows: Particulars of the asset Acquired from Carrying cost ANDAs Teva and an affiliate of Allergan Rs. 9,813 Select portfolio of dermatology, respiratory and pediatric assets UCB India Private Limited and affiliates 5,072 Intellectual property rights relating to PPC-06 (tepilamide fumarate) Xenoport, Inc 4,019 Habitrol ® brand Novartis Consumer Health Inc. 1,936 Commercialization rights for an anti-cancer biologic agent Eisai Company Limited 1,838 Over the counter product brands Ducere Pharma LLC 731 Beta brand 3i Group plc 578 Various ANDAs Gland Pharma Limited 284 |
Disclosure Of Detailed Information About Intangible Assets Under Development [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, 2020 2019 Opening balance Rs. 24,610 Rs. 27,027 Add Additions during the year (1) 950 1,171 Less Capitalizations during the year (2) (2,530 ) (5,445 ) Less: Impairments during the year (13,379 ) - Effect of changes in exchange rates 1,336 1,857 Closing balance Rs. 10,987 Rs. 24,610 (1) During the year ended March 31, 2020, the Company acquired a portfolio of approved, non-marketed Abbreviated New Drug Applications (“ANDAs”) in the United States from Teva for a total consideration of Rs.277 (U.S.$4). The Company recognized these ANDAs acquired as product related intangibles. (2) During the year ended March 31, 2020, the products ramelton was available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. During the year ended March 31, 2019, the products buprenorphine and naloxone sublingual film and tobramycin were available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. |
Investment in equity accounte_2
Investment in equity accounted investees (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Investments accounted for using equity method [Line Items] | |
Disclosure Of Equity Shares Held In Equity Accounted Investees [Table Text Block] | As at March 31, 2020 2019 Equity shares held in Kunshan Rotam Reddy Pharmaceutical Company Limited, China Rs. 2,714 Rs. 2,464 Equity shares held in DRES Energy Private Limited, India 49 65 Rs. 2,763 Rs. 2,529 |
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | |
Investments accounted for using equity method [Line Items] | |
Disclosure of detailed information about joint venture [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, 2020 2019 2018 Ownership 51.3 % 51.3 % 51.3 % Total current assets Rs. 6,925 Rs. 6,195 Rs. 4,933 Total non-current assets 732 374 347 Total assets Rs. 7,657 Rs. 6,569 Rs. 5,280 Equity Rs. 4,931 Rs. 4,448 Rs. 3,600 Total current liabilities 2,726 2,121 1,680 Total equity and liabilities Rs. 7,657 Rs. 6,569 Rs. 5,280 Revenues Rs. 7,679 Rs. 7,436 Rs. 5,482 Expenses 6,554 6,558 4,792 Profit for the year Rs. 1,125 Rs. 878 Rs. 690 Company’s share of profits for the year Rs. 577 Rs. 449 Rs. 354 Carrying value of the Company’s investment (1) Rs. 2,714 Rs. 2,464 Rs. 2,029 Translation adjustment arising out of translation of foreign currency balances Rs. 306 Rs. 241 Rs. 255 (1) Includes Rs.181 representing the goodwill on acquisition of investment. |
DRES energy private limited [Member] | |
Investments accounted for using equity method [Line Items] | |
Disclosure of detailed information about joint venture [Table Text Block] | Details of the Company’s investment in DRES Energy Private Limited: As of/for the Year Ended March 31, 2020 2019 2018 Carrying value of the Company’s investment Rs. 49 Rs. 65 Rs. 75 Company’s share of profits for the year (16 ) (11 ) (10 ) |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other payables [abstract] | |
Trade And Other Payables [Table Text Block] | Trade and other payables consist of the following: As at March 31, 2020 2019 Trade payables Rs. 10,745 Rs. 10,296 Due to creditors for expenses 4,503 3,375 Due to capital creditors 1,411 882 Rs. 16,659 Rs. 14,553 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Pre-shipment credit Rs. 10,432 Rs. 5,463 Other working capital borrowings 6,009 6,662 Rs. 16,441 Rs. 12,125 |
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, 2020 2019 Currency (1) Interest Rate (2) Currency (1) Interest Rate (2) Pre-shipment credit U.S.$ 1 Month LIBOR + 12.5 to 16 bps U.S.$ 1 Month LIBOR + 25 to 40 bps INR 1 Month T-bill + 60 bps - - Other working capital borrowings U.S.$ 1Month/3 Months LIBOR + 55 to 78 bps U.S.$ 1 Month LIBOR + 65 to 95 bps RUB 7.05% RUB 8.22% ZAR 1Month JIBAR+120 bps ZAR 1Month JIBAR+120 bps MXN TIIE + 1.25% MXN TIIE + 1.25% INR 7.75% - - BRL 7.25% - - - - UAH 21.50% (3) “INR” means Indian rupees, “U.S.$” means United States Dollars, “RUB” means Russian roubles, “MXN” means Mexican pesos, “UAH” means Ukrainian hryvnia, “BRL” means Brazilian reals and “ZAR” means South African rand. (4) “LIBOR” means the London Inter-bank Offered Rate, “TIIE” means the Equilibrium Inter-banking Interest Rate (Tasa de Interés Interbancaria de Equilibrio), “JIBAR” means the Johannesburg Interbank Average Rate and “T-bill” means India Treasury Bill. |
Disclosure of Long-term Borrowings [Table Text Block] | Long-term borrowings consist of the following: As of March 31, 2020 As of March 31, 2019 Non-current Current Non-current Current Foreign currency borrowing by the parent company Rs. - Rs. 3,783 Rs. 3,454 Rs. 1,729 Foreign currency borrowing by the Swiss subsidiary (1) - - 15,819 1,383 Foreign currency borrowing by the German subsidiary (2) - - 2,175 1,087 Obligations under leases/finance leases 1,304 483 552 57 Rs. 1,304 Rs. 4,266 Rs. 22,000 Rs. 4,256 (1) Swiss subsidiary refers to Dr. Reddy’s Laboratories, SA (2) German subsidiary refers to Reddy Holding GmbH |
Disclosure of interest rate profile of long-term borrowings [Table Text Block] | The interest rate profiles of long-term borrowings (other than obligations under leases/finance leases) as at March 31, 2020 and 2019 were as follows: As at March 31, 2020 2019 Currency (1) Interest Rate (2) Currency (1) Interest Rate (2) Foreign currency borrowings U.S.$ 1 Month LIBOR + 82.7 bps U.S.$ 1 Month LIBOR + 70 to 105 bps - - EUR 0.81% (1) “U.S.$” means United States Dollars and “EUR” means Euros. (2) “LIBOR” means the London Inter-bank Offered Rate. |
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, 2020 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2021 Rs. 3,783 Rs. 483 Rs. 4,226 2022 - 359 359 2023 - 267 267 2024 - 249 249 2025 - 286 286 Thereafter - 143 143 Rs. 3,783 Rs. 1,787 Rs. 5,570 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.0. The aggregate maturities of long-term loans and borrowings, based on contractual maturities, as of March 31, 2019 were as follows: Maturing in the year ending March 31, (1) Foreign Obligations Total 2020 Rs. 4,199 Rs. 57 Rs. 4,256 2021 6,621 65 6,686 2022 1,087 66 1,153 2023 13,831 70 13,901 2024 - 63 63 Thereafter - 288 288 Rs. 25,738 Rs. 609 Rs. 26,347 (1) Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.91. |
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, 2019 were as follows: Particulars Present value of minimum lease Interest Future Not later than one year Rs. 60 Rs. 49 Rs. 109 Between one and five years 264 127 391 More than five years 285 38 323 Rs. 609 Rs. 214 Rs. 823 |
Disclosure of reconciliation of liabilities arising from financing activities [text block] | Reconciliation of liabilities arising from financing activities during the year ended March 31, 2020: Particulars Long-term (1) Short-term Total Opening balance Rs. 26,256 Rs. 12,125 Rs. 38,381 Recognition of right-of-use liability on initial application of IFRS 16 1,335 - 1,335 Recognition of right-of-use liability during the year 238 - 238 Payment of principal portion of lease liabilities (482 ) - (482 ) Borrowings made during the year - 29,831 29,831 Borrowings repaid during the year (22,918 ) (25,596 ) (48,514 ) Currency translation adjustments 1,051 81 1,132 Others 90 - 90 Closing balance Rs. 5,570 Rs. 16,441 Rs. 22,011 Reconciliation of liabilities arising from financing activities during the year ended March 31, 2019: Particulars Long-term (1) Short-term Total Opening balance Rs. 25,152 Rs. 25,466 Rs. 50,618 Payment of principal portion of lease liabilities (56 ) - (56 ) Borrowings made during the year - 42,907 42,907 Borrowings repaid during the year - (58,033 ) (58,033 ) Currency translation adjustments 1,128 1,785 2,913 Others 32 - 32 Closing balance Rs. 26,256 Rs. 12,125 Rs. 38,381 (1) Includes current portion. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of other provisions [abstract] | |
Disclosure of Provision [Table Text Block] | The details of changes in provisions during the year ended March 31, 2020 are as follows: Particulars Refund (1) Environmental (2) Legal and (3) Total Balance as at beginning of the year Rs. 3,581 Rs. 52 Rs. 585 Rs. 4,218 Provision made during the year, net of reversals 2,675 - (37 ) 2,638 Provision used during the year (3,224 ) - - (3,224 ) Effect of changes in foreign exchange rates 220 2 - 222 Balance as at end of the year Rs. 3,252 Rs. 54 Rs. 548 Rs. 3,854 Current Rs. 3,252 Rs. - Rs. 548 Rs. 3,800 Non-current - 54 - 54 Rs. 3,252 Rs. 54 Rs. 588 Rs. 3,854 (1) Refund liability is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) of these consolidated financial statements for the Company’s accounting policy on refund liability. (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.54). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the consolidated 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 32 (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. |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Miscellaneous liabilities [abstract] | |
Schedule Of Other Liabilities [Table Text Block] | Other liabilities consist of the following: As at March 31, 2020 2019 Current Accrued expenses Rs. 18,025 Rs. 15,178 Employee benefits payable 4,944 4,542 Statutory dues payable 980 722 Deferred revenue (1) 1,242 590 Advance from customers 668 761 Others 3,523 2,558 Rs. 29,382 Rs. 24,351 Non-current Deferred revenue (1) 1,956 2,002 Others 850 866 Rs. 2,806 Rs. 2,868 (1) Refer to Note 21 for details of deferred revenue. |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Disclosure Of Classes Of Share Capital [Text Block] | For the Year Ended March 31, 2020 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 166,065,948 Rs. 830 165,910,907 Rs. 830 Add: Equity shares issued pursuant to employee stock option plan (1) 106,134 1 155,041 - * Closing number of equity shares/share capital 166,172,082 Rs. 831 166,065,948 Rs. 830 Treasury shares (2) 395,950 Rs. 1,006 217,976 Rs. 535 * Rounded off to nearest million. (1) During the years ended March 31, 2020 and 2019, equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2002 and the Dr. Reddy’s Employees Stock Option Scheme, 2007. All of the options exercised had an exercise price of Rs.5, being equal to the par value of the underlying shares. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the "share based payment reserve”was transferred to“share premium” in the consolidated statements of changes in equity. (2) Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme, 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance to eligible employees upon exercise of stock options thereunder. During the year ended March 31, 2020, an aggregate of 1,150 equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2018. All of the options exercised had an exercise price of Rs.2,607 per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the “share based payment reserve” was transferred to “share premium” in the consolidated statements of changes in equity.In addition, any difference between the carrying amount of treasury shares and the consideration received was recognized in the “share premium”. As at March 31, 2020 and 2019, the ESOS Trust had outstanding 395,950 and 217,976 shares, respectively, which it purchased from the secondary market for an aggregate consideration of Rs.1,006 and Rs.535, respectively. Refer to Note 28 of these financial statements for further details on the Dr. Reddy’s Employees Stock Option Scheme, 2018. |
Disclosure of detailed information about dividends [Table Text Block] | Final dividends on equity shares (including dividend tax on distribution of such dividends, if any) 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. The details of dividends paid by the Company are as follows: For the Year Ended March 31, 2020 2019 2018 Dividend per share (in absolute Rs.) Rs. 20 Rs. 20 Rs. 20 Dividend distribution tax on the dividend paid 602 682 675 Dividend paid during the year 3,314 3,320 3,317 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 2018 Number of equity shares at the beginning of the year (excluding treasury shares) 165,847,972 165,910,907 165,741,713 Effect of treasury shares held during the year (154,020 ) (100,672 ) - Effect of equity shares issued on exercise of stock options 64,432 103,801 103,695 Weighted average number of equity shares – Basic 165,758,384 165,914,036 165,845,408 Earnings per share of par value Rs.5 – Basic Rs. 117.63 Rs. 113.28 Rs. 59.13 |
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, 2020 2019 2018 Weighted average number of equity shares – Basic 165,758,384 165,914,036 165,845,408 Dilutive effect of stock options outstanding (1) 323,601 278,718 340,144 Weighted average number of equity shares – Diluted 166,081,985 166,192,754 166,185,552 Earnings per share of par value Rs.5 – Diluted Rs. 117.40 Rs. 113.09 Rs. 59.00 (1) As at March 31, 2020 and 2019, 475,575 and 272,700 options, respectively were excluded from the diluted weighted average number of equity shares calculation because their effect would have been anti-dilutive. The average market value of the Company’s shares for the purpose of calculating the dilutive effect of stock options was based on quoted market prices for the year during which the options were outstanding. |
Revenue from contracts with c_2
Revenue from contracts with customers and trade receivables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Revenue [abstract] | |
Schedule of Revenue from contracts with customers [Table Text Block] | Revenue from contracts with customers: For the Year Ended March 31, 2020 2019 2018 Sales (1) Rs. 163,574 Rs. 148,706 Rs. 138,022 Service income 2,409 2,129 1,534 License fees (2)(3) 8,617 3,016 2,472 Rs. 174,600 Rs. 153,851 Rs. 142,028 Excise duty included in revenues (1) Rs. - Rs. - Rs. 173 (1) Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “ Revenue from Contracts with Customers (2) During the year ended March 31, 2020, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC for the sale of its U.S. and select territory rights for ZEMBRACE ® ® ® (3) License fees for the years ended March 31, 2019 and March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 36 of these consolidated financial statements for further details. |
Analysis of revenues by segments [Table Text Block] | Analysis of revenues by segments: For the Year Ended March 31, Segment 2020 2018 2017 Global Generics Rs. 138,123 Rs. 122,903 Rs. 114,014 PSAI 25,747 24,140 21,992 Proprietary products 7,949 4,750 4,245 Others 2,781 2,058 1,777 Rs. 174,600 Rs. 153,851 Rs. 142,028 |
Analysis of revenues within the Global Generics segment [Table Text Block] | Analysis of revenues within the Global Generics segment: An analysis of revenues by therapeutic areas in the Company’s Global Generics segment is given below: For the Year Ended March 31, 2020 2019 2018 Nervous System Rs. 26,825 Rs. 19,726 Rs. 17,347 Gastrointestinal 19,394 19,250 19,153 Oncology 18,245 18,357 16,999 Cardiovascular 14,729 15,106 16,501 Pain Management 13,808 13,806 12,898 Respiratory 10,433 8,130 6,205 Anti-Infective 9,402 7,073 6,557 Others 25,287 21,455 18,354 Total Rs. 138,123 Rs. 122,903 Rs. 114,014 |
Analysis of revenues within the PSAI segment [Table Text Block] | Analysis of revenues within the PSAI segment: An analysis of revenues by therapeutic areas in the Company’s PSAI segment is given below: For the Year Ended March 31, 2020 2019 2018 Cardiovascular Rs. 8,567 Rs. 7,019 Rs. 6,191 Pain Management 5,073 3,364 3,228 Nervous System 2,797 2,741 2,331 Oncology 1,798 2,212 1,650 Dermatology 1,370 1,622 1,606 Anti-Infective 1,097 1,247 1,968 Others 5,045 5,935 5,018 Total Rs. 25,747 Rs. 24,140 Rs. 21,992 |
Analysis of revenues by geography [Table Text block] | Analysis of revenues by geography: 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 2020 2019 2018 India Rs. 32,089 Rs. 28,804 Rs. 25,209 United States 76,028 69,299 68,124 Russia 16,900 15,299 12,610 Others 49,583 40,449 36,085 Rs. 174,600 Rs. 153,851 Rs. 142,028 |
Details of significant gross to net adjustments relating to Company's North America Generics business [Table Text Block] | Details of significant gross to net adjustments relating to Company’s North America Generics business (amounts in U.S.$ millions) A roll-forward for each major accrual for the Company’s North America Generics business for the fiscal years ended March 31, 2018, 2019 and 2020 is as follows: Particulars Chargebacks Rebates Medicaid Refund Liability (All values in U.S.$ millions) Beginning Balance: April 1, 2017 191 186 13 36 Current provisions relating to sales during the year (1) 1,750 630 18 22 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,771 ) (655 ) (19 ) (30 ) Ending Balance: March 31, 2018 170 161 12 28 Beginning Balance: April 1, 2018 170 161 12 28 Current provisions relating to sales during the year (2) 1,415 461 18 29 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,457 ) (530 ) (19 ) (27 ) Ending Balance: March 31, 2019 128 92 11 30 Beginning Balance: April 1, 2019 128 92 11 30 Current provisions relating to sales during the year (3) 1,468 319 20 21 Provisions and adjustments relating to sales in prior years * - - - Credits and payments** (1,440 ) (331 ) (20 ) (27 ) Ending Balance: March 31, 2020 156 80 11 24 * Currently, the Company does not separately track provisions and adjustments, in each case to the extent relating to prior years for chargebacks. However, the adjustments are expected to be non-material. The volumes used to calculate the closing balance of chargebacks represent approximately 1.3 months equivalent of sales, which corresponds to the pending chargeback claims yet to be processed. ** Currently, the Company does not separately track the credits and payments, in each case to the extent relating to prior years for chargebacks, rebates, medicaid payments or refund liability. (1) Chargebacks and rebates provisions for the year ended March 31, 2018 and payments for the year ended March 31, 2018 were each lower as compared to the year ended March 31, 2017, primarily as a result of lower pricing rates per unit for chargebacks, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, and due to certain product mix changes. (2) Chargebacks and rebates provisions for the year ended March 31, 2019 and payments for the year ended March 31, 2019 were each lower as compared to the year ended March 31, 2018, primarily as a result of lower pricing rates per unit for chargebacks, and due to a reduction in the invoice price to wholesalers for certain of the Company’s products. (3) Chargebacks provisions for the year ended March 31, 2020 were higher compared to the year ended March 31, 2019, primarily as a result of higher sales volumes, which were partially offset due to a lower pricing rates per unit for chargebacks. Such lower pricing was primarily on account of a reduction in the invoice price to wholesalers for certain of the Company’s products. The chargebacks payments for the year ended March 31, 2020 were lower compared to the year ended March 31, 2019, primarily as a result of higher pending chargebacks claims at March 31, 2020 as compared to March 31, 2019. The rebates provisions and the payments for the year ended March 31, 2020 were each lower as compared to the year ended March 31, 2019, primarily as a result of lower pricing rates per unit for rebates, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, which were partially offset by higher sales volumes during the year ended March 31, 2020 as compared to the year ended March 31, 2019. |
Details of refund liabilities [Table Text Block] | Details of refund liabilities: For the Year Ended March 31, 2020 2019 Balance at the beginning of the year Rs. 3,581 Rs. 3,210 Provision made during the year, net of reversals 2,675 3,592 Provision used during the year (3,224 ) (3,324 ) Effect of changes in foreign exchange rates 220 103 Balance at the closing of the year Rs. 3,252 Rs. 3,581 Current Rs. 3,252 Rs. 3,581 Non-current - - |
Details of deferred revenue [Table Text Block] | Details of deferred revenue: Tabulated below is the reconciliation of deferred revenue for the years ended March 31, 2020 and 2019. For the Year Ended March 31, 2020 2019 Balance as at April 1 Rs. 2,592 Rs. 3,319 Revenue recognized during the year (1,250 ) (815 ) Milestone payment received during the year 1,856 88 Balance as at March 31 Rs. 3,198 Rs. 2,592 Current 1,242 590 Non-current 1,956 2,002 |
Details of contract liabilities [Table Text Block] | Details of contract liabilities As at March 31, 2020 2019 Advance from customers Rs. 668 Rs. 761 Rs. 668 Rs. 761 |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Other operating income expense [Abstract] | |
Other income, net | Other (income)/expense, net consists of the following: For the Year Ended March 31, 2020 2019 2018 Loss/(gain) on sale/disposal of property, plant and equipment and other intangible assets, net (1) Rs. 10 Rs. (1,264) Rs. 55 Sale of spent chemicals (306 ) (356 ) (297 ) Scrap sales (167 ) (179 ) (169 ) Miscellaneous income, net (2) (3,827 ) (156 ) (377 ) Rs. (4,290) Rs. (1,955) Rs. ( 788) (1) Refer to footnotes (1) and (2) to the first table set forth in Note 11 and footnote (1) to the first table set forth in Note 13 of these consolidated financial statements for further details. (2) Miscellaneous income, net includes Rs.3,457 (U.S.$50) received from Celgene pursuant to a settlement agreement entered into in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID ® brand capsules (Lenalidomide) pending before Health Canada. |
Finance income, net (Tables)
Finance income, net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Finance expense income [Abstract] | |
Finance income, net | Finance (expense)/income, net consists of the following: For the Year Ended March 31, 2020 2019 2018 Interest income Rs. 888 Rs. 770 Rs. 540 Fair value changes and profit on sale of units of mutual funds, net (1) 929 773 2,270 Foreign exchange gain 639 737 87 Miscellaneous income, net 5 - - Finance income (A) Rs. 2,461 Rs. 2,280 Rs. 2,897 Interest expense Rs. (983) Rs. (889) Rs. (788) Foreign exchange loss - (274 ) (29 ) Finance expense (B) Rs. (983) Rs. (1,163) Rs. (817) Finance income, net [(A)+(B)] Rs. 1,478 Rs. 1,117 Rs. 2,080 (1) For the year ended March 31, 2018, profit on sale of units of mutual funds, net primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s then “available for sale” financial instruments under the former accounting standard IAS 39, “ Financial Instrument - Recognition and Measurement” |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 2018 Current taxes Domestic Rs. (5,157) Rs. (3,003) Rs. (1,412) Foreign (1,459 ) (1,707 ) (363 ) Rs. (6,616) Rs. (4,710) Rs. (1,775) Deferred taxes Domestic Rs. 6,580 Rs. (244) Rs. (379) Foreign 1,502 1,306 (2,381 ) Rs. 8,082 Rs. 1,062 Rs. (2,760) Total income tax (expense)/ benefit Rs. 1,466 Rs. (3,648) Rs. (4,535) |
Current and deferred tax relating to items charged or credited directly to equity [Table Text Block] | Income tax (expense)/benefit recognized directly in equity consi s For the Year Ended March 31, 2020 2019 2018 Tax effect on changes in fair value of other investments Rs. - Rs. (411) Rs. 1,370 Tax effect on foreign currency translation differences - 14 (17 ) Tax effect on effective portion of change in fair value of cash flow hedges 232 (69 ) 41 Tax effect on actuarial gains/losses on defined benefit obligations (22 ) (3 ) (12 ) Rs. 210 Rs. (469) Rs. 1,382 |
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, 2020, 2019 and 2018: For the Year Ended March 31, 2020 2019 2018 Profit before income taxes Rs. 18,032 Rs. 22,443 Rs. 14,341 Enacted tax rate in India 34.94 % 34.94 % 34.61 % Computed expected tax expense Rs. (6,301) Rs. (7,842) Rs. (4,963) Effect of: Differences between Indian and foreign tax rates Rs. (3,385) Rs. 734 Rs. 712 (Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net 6,478 (482 ) (1,673 ) Expenses not deductible for tax purposes (155 ) (340 ) (261 ) Reversal of earlier years’ tax provisions - 282 135 Income exempt from income taxes 1,029 1,282 746 Foreign exchange differences 64 470 41 Incremental deduction allowed for research and development costs (1) 1,241 1,134 1,324 Tax expense on distributed/undistributed earnings of subsidiary outside India (254 ) - - Write off of accounts receivables - 1,294 - Income from sale of capital assets 2,620 - - Effect of change in tax rate 37 (3 ) (1,329 ) Others 92 (177 ) 733 Income tax benefit/(expense) Rs. 1,466 Rs. (3,648) Rs. (4,535) Effective tax rate (8 )% 16 % 32 % (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 and from 150% to 100% effective April 1, 2020. |
Disclosure of Unrecognised Deferred Tax Assets and Liabilities [Table Text Block] | The details of unrecognized deferred tax assets and liabi li r As at March 31, 2020 2019 Deductible temporary differences, net Rs. 394 Rs. 5,469 Operating tax loss carry-forward 3,926 3,567 Rs. 4,320 Rs. 9,036 |
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, 2020 2019 Deferred tax assets/(liabilities): Inventory Rs. 3,216 Rs. 3,285 Minimum Alternate Tax* 6,246 1,630 Trade and other receivables 369 316 Operating/other tax loss carry-forward 3,399 297 Other current assets and other current liabilities, net 1,448 1,315 Property, plant and equipment (2,361 ) (2,665 ) Other intangible assets (477 ) (662 ) Others 99 42 Net deferred tax assets Rs. 11,939 Rs. 3,558 * 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. If in any year the company pays liability as per MAT, then it is entitled to claim credit of MAT paid over and above the normal tax liability in the subsequent years. The MAT credit is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years starting from the succeeding fiscal year in which such credit was generated. |
Disclosure Of Movement in deferred tax assets and liabilities [Table Text Block] | The details of movement in deferred tax assets and liabilities are su mm As at March 31, 2019 Recognized in Recognized in As at March Deferred tax assets/(liabilities) Inventory Rs. 3,285 Rs. (69) Rs. - Rs. 3,216 Minimum Alternate Tax 1,630 4,616 - 6,246 Trade and other receivables 316 53 - 369 Operating/other tax loss carry-forward 297 3,102 - 3,399 Other current assets and other current liabilities, net 1,315 133 - 1,448 Property, plant and equipment (2,665 ) 304 - (2,361 ) Other intangible assets (662 ) 185 - (477 ) Others 42 (153 ) 210 99 Net deferred tax assets Rs. 3,558 Rs. 8,171 Rs. 210 Rs. 11,939 As at March Recognized in Recognized in As at March Deferred tax assets/(liabilities) Inventory Rs. 1,790 Rs. 1,495 Rs. - Rs. 3,285 Minimum Alternate Tax 1,630 - - 1,630 Trade and other receivables 278 38 - 316 Operating/other tax loss carry-forward 112 185 - 297 Other current assets and other current liabilities, net 1,291 24 - 1,315 Property, plant and equipment (2,263 ) (402 ) - (2,665 ) Other intangible assets (569 ) (93 ) - (662 ) Others 629 (115 ) (472 ) 42 Net deferred tax assets Rs. 2,898 Rs. 1,132 Rs. (472 ) Rs. 3,558 |
Nature of Expense (Tables)
Nature of Expense (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020, 2019 and 2018: For the Year Ended March 31, Employee benefits 2020 2019 2018 Cost of revenues Rs. 10,643 Rs. 10,644 Rs. 10,434 Selling, general and administrative expenses 18,658 18,291 17,004 Research and development expenses 4,501 4,627 4,711 Rs. 33,802 Rs. 33,562 Rs. 32,149 For the Year Ended March 31, Depreciation 2020 2019 2018 Cost of revenues Rs. 6,366 Rs. 6,484 Rs. 6,331 Selling, general and administrative expenses 1,294 801 854 Research and development expenses 980 1,077 1,100 Rs. 8,640 Rs. 8,362 Rs. 8,285 For the Year Ended March 31, Amortization 2020 2019 2018 Cost of revenues Rs. 175 Rs. 284 Rs. 264 Selling, general and administrative expenses 3,547 3,421 3,029 Research and development expenses 110 123 132 Rs. 3,832 Rs. 3,828 Rs. 3,425 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Finance Leases And Operating Leases 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, 2020 2019 2018 Less than one year Rs. - Rs. 405 Rs. 496 Between one and five years - 797 1,144 More than five years - 89 289 Rs. - Rs. 1,291 Rs. 1,929 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Parent Company Gratuity plan [Member] | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Cost Recognized in the Income Statement [Text Block] | The components of gratuity cost recognized in the income statement for the years ended March 31, 2020, 2019 and 2018 consist of the following: For the Year Ended March 31, 2020 2019 2018 Current service cost Rs. 276 Rs. 265 Rs. 252 Interest on defined benefit liability (4 ) (2 ) 6 Gratuity cost recognized in income statement Rs. 272 Rs. 263 Rs. 258 |
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, 2020 2019 Present value of funded obligations Rs. 2,349 Rs. 2,200 Fair value of plan assets (2,160 ) (2,174 ) Net defined benefit liability recognized Rs. 189 Rs. 26 |
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, 2020 2019 Defined benefit obligations at the beginning of the year Rs. 2,200 Rs. 2,007 Current service cost 276 265 Interest on defined obligations 152 145 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions (96 ) 28 Actuarial loss/(gain) due to demographic assumptions (48 ) - * Actuarial loss/(gain) due to experience changes 59 - * Benefits paid (194 ) (245 ) Defined benefit obligations at the end of the year Rs. 2,349 Rs. 2,200 * Rounded to the nearest million. |
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, 2020 2019 Fair value of plan assets at the beginning of the year Rs. 2,174 Rs. 1,958 Employer contributions 14 294 Interest on plan assets 156 147 Re-measurements due to: Return on plan assets excluding interest on plan assets 10 20 Benefits paid (194 ) (245 ) Plan assets at the end of the year Rs. 2,160 Rs. 2,174 |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | Sensitivity Analysis: As of March 31, 2020 Defined benefit obligation without effect of projected salary growth Rs. 1,593 Add: Effect of salary growth 756 Defined benefit obligation with projected salary growth 2,349 Defined benefit obligation, using discount rate minus 50 basis points 2,419 Defined benefit obligation, using discount rate plus 50 basis points 2,282 Defined benefit obligation, using salary growth rate plus 50 basis points 2,418 Defined benefit obligation, using salary growth rate minus 50 basis points 2,282 |
Disclosure of assumptions used to determine benefit obligations [Table Text Block] | The assumptions used to determine benefit obligations: For the Year Ended March 31, 2020 2019 2018 Discount rate 6.65 % 7.45 % 7.75 % Rate of compensation increase 7.50 % 8% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter |
Disclosure of assumptions used to determine the defined benefit cost [Table Text Block] | The assumptions used to determine gratuity cost: For the Year Ended March 31, 2020 2019 2018 Discount rate 7.45 % 7.75 % 7.20 % Rate of compensation increase 8% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter 7% per annum for the first year and 9% per annum thereafter |
Disclosure of Disaggregation of Plan Assets [Table Text Block] | Disaggregation of plan assets: As of March 31, 2020 2019 Funds managed by insurers 99 % 99 % Others 1 % 1 % |
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, 2020 were as follows: Expected contribution Amount During the year ended March 31, 2021 (estimated) Rs. 189 Expected future benefit payments March 31, 2021 413 March 31, 2022 301 March 31, 2023 294 March 31, 2024 273 March 31, 2025 259 Thereafter 2,201 |
Industrias Quimicas Falcon de Mexico Pension plan [Member] | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Cost Recognized in the Income Statement [Text Block] | The components of net pension cost recognized in the income statement for the years ended March 31, 2020, 2019 and 2018 consist of the following: For the Year Ended March 31, 2020 2019 2018 Current service cost Rs. 11 Rs. 13 Rs. 12 Interest on defined benefit liability 16 15 13 Total cost recognized in income statement Rs. 27 Rs. 28 Rs. 25 |
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, 2020 2019 Present value of funded obligations Rs. 234 Rs. 223 Fair value of plan assets (128 ) (70 ) Net defined benefit liability recognized Rs. 106 Rs. 153 |
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, 2020 2019 Defined benefit obligations at the beginning of the year Rs. 223 Rs. 243 Current service cost 11 13 Interest on defined obligations 25 22 Re-measurements due to: Actuarial loss/(gain) due to change in financial assumptions 50 (47 ) Actuarial loss/(gain) due to experience changes (8 ) 7 Benefits paid (41 ) (16 ) Foreign exchanges differences (26 ) 1 Defined benefit obligations at the end of the year Rs. 234 Rs. 223 |
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, 2020 2019 Fair value of plan assets at the beginning of the year Rs. 70 Rs. 66 Employer contributions 113 16 Interest on plan assets 9 7 Re-measurements due to: Return on plan assets excluding interest on plan assets (7 ) (3 ) Benefits paid (41 ) (16 ) Foreign exchanges differences (16 ) - * Plan assets at the end of the year Rs. 128 Rs. 70 * Rounded to the nearest million. |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | Sensitivity Analysis: As of March 31, 2020 Defined benefit obligation without effect of projected salary growth Rs. 158 Add: Effect of salary growth 76 Defined benefit obligation with projected salary growth 234 Defined benefit obligation, using discount rate minus 50 basis points 244 Defined benefit obligation, using discount rate plus 50 basis points 224 Defined benefit obligation, using salary growth rate plus 50 basis points 245 Defined benefit obligation, using salary growth rate minus 50 basis points 224 |
Disclosure of assumptions used to determine benefit obligations [Table Text Block] | The assumptions used to determine benefit obligations: For the Year Ended March 31, 2020 2019 2018 Discount rate 8.75 % 11.25 % 9.00 % Rate of compensation increase 4.50 % 4.50 % 4.50 % |
Disclosure of assumptions used to determine the defined benefit cost [Table Text Block] | The assumptions used to determine defined benefit cost: For the Year Ended March 31, 2020 2019 2018 Discount rate 11.25 % 9.00 % 8.75 % Rate of compensation increase 4.50 % 4.50 % 4.50 % |
Disclosure of Disaggregation of Plan Assets [Table Text Block] | Disaggregation of plan assets: As of March 31, 2020 2019 Funds managed by insurers 51 % 51 % Others 49 % 49 % |
Disclosure Of Expected Future Cash Flows In Respect Of Post-employment Benefits [Text Block] | The expected future cash flows in respect of post-employment benefit plans in Mexico as at March 31, 2020 were as follows: Expected contribution Amount During the year ended March 31, 2021 (estimated) Rs. 32 Expected future benefit payments March 31, 2021 5 March 31, 2022 5 March 31, 2023 6 March 31, 2024 11 March 31, 2025 16 Thereafter 536 |
Employee stock incentive plans
Employee stock incentive plans (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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 January 26, 2020 October 31, 2019 May 16, 2019 May 16, 2019 Expected volatility 27.00 % 27.10 % 28.25 % 29.29 % Exercise price Rs. 3,031.00 Rs. 5.00 Rs. 2,814.00 Rs. 5.00 Option life 5.00 Years 2.5 Years 5.0 Years 2.5 Years Risk-free interest rate 6.61 % 5.72 % 7.14 % 6.76 % Expected dividends 0.66 % 0.72 % 0.71 % 0.71 % Grant date share price Rs. 3,031.00 Rs. 2,783.20 Rs. 2,801.00 Rs. 2,801.00 Grants made on January 31, 2019 September 21, 2018 July 26, 2018 May 21, 2018 Expected volatility 32.92 % 33.98 % 34.89 % 32.97 % Exercise price Rs. 5.00 Rs. 5.00 / Rs.2,607.00 Rs. 5.00 Rs. 5.00 / Rs.1,982.00 Option life 2.5 Years 2.5 Years 2.5 Years 2.5 Years Risk-free interest rate 7.00 % 7.90 % 7.47 % 7.46 % Expected dividends 0.74 % 0.78 % 0.94 % 1.06 % Grant date share price Rs. 2,720.80 Rs. 2,556.25 Rs. 2,132.75 Rs. 1,893.05 |
Disclosure of detailed information about share based payment expense [Text Block] | Share-based payment expense For the Year Ended March 31, 2020 2019 2018 Equity settled share-based payment expense (1) Rs. 521 Rs. 389 Rs. 454 Cash settled share-based payment expense (2) 94 85 28 Rs. 615 Rs. 474 Rs. 482 (1) As of March 31, 2020 and 2019, there was Rs.515 and Rs.519, respectively, of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.93 years and 2.09 years, respectively. (2) 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 vesting. As of March 31, 2020, there was Rs.97 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.93 years. This scheme does not involve dealing in or subscribing to or purchasing securities of the Company, directly or indirectly. |
Disclosure And Details About 2018 Plan Table Text Block | Particulars Number of securities to be acquired from Number of securities Total Options reserved against equity shares 2,500,000 1,500,000 4,000,000 Options reserved against ADRs - 1,000,000 1,000,000 Total 2,500,000 2,500,000 5,000,000 |
DRL 2018 Plan [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 option activity under the DRL 2018 Plan during the years ended March 31, 2020 and 2019 was as follows: For the Year Ended March 31, 2020 Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 229,600 Rs. 2,607.00 Rs. 2,607.00 84 Granted during the year 169,900 2,814.00/ 3,031.00 2,817.07 90 Expired/forfeited during the year (22,575 ) 2,607.00/ 2,814.00/ 3,031.00 2,687.84 - Exercised during the year (1,150 ) 2,607.00 2,607.00 - Outstanding at the end of the year 375,775 Rs. 2,607.00/ Rs.2814.00 Rs. 2,697.12 75 Exercisable at the end of the year 53,100 Rs. 2,607.00 Rs. 2,607.00 53 For the Year Ended March 31, 2019 Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year - Rs. - Rs. - - Granted during the year 235,700 2,607.00 2,607.00 90 Expired/forfeited during the year (6,100 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 229,600 Rs. 2,607.00 Rs. 2,607.00 84 Exercisable at the end of the year - - - - |
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: Category B — Par Value Options: For the Year Ended March 31, 2020 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 270,141 Rs. 5.00 Rs. 5.00 73 Granted during the year 49,796 5.00 5.00 90 Expired/forfeited during the year (14,934 ) 5.00 5.00 - Exercised during the year (72,166 ) 5.00 5.00 - Outstanding at the end of the year 232,837 Rs. 5.00 Rs. 5.00 69 Exercisable at the end of the year 40,548 Rs. 5.00 Rs. 5.00 43 For the Year Ended March 31, 2019 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 320,544 Rs. 5.00 Rs. 5.00 70 Granted during the year 122,372 5.00 5.00 90 Expired/forfeited during the year (50,651 ) 5.00 5.00 - Exercised during the year (122,124 ) 5.00 5.00 - Outstanding at the end of the year 270,141 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 32,836 Rs. 5.00 Rs. 5.00 42 |
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] | For the Year Ended March 31, 2020 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 115,155 Rs. 5.00 Rs. 5.00 73 Granted during the year 89,282 5.00 5.00 90 Expired/forfeited during the year (18,886 ) 5.00 5.00 - Exercised during the year (33,968 ) 5.00 5.00 - Outstanding at the end of the year 151,583 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 14,166 Rs. 5.00 Rs. 5.00 44 For the Year Ended March 31, 2019 Category B — Par Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 107,308 Rs. 5.00 Rs. 5.00 73 Granted during the year 70,730 5.00 5.00 90 Expired/forfeited during the year (29,966 ) 5.00 5.00 - Exercised during the year (32,917 ) 5.00 5.00 - Outstanding at the end of the year 115,155 Rs. 5.00 Rs. 5.00 73 Exercisable at the end of the year 9,229 Rs. 5.00 Rs. 5.00 43 |
DRL 2007 Plans [Member] | Category A [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 under the DRL 2007 Plan for the above two categories of options during the years ended March 31, 2020 and 2019 was as follows: For the Year Ended March 31, 2020 Category A — Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year 146,060 Rs. 1,982.00/ 2,607.00 Rs. 2,166.00 81 Granted during the year 61,700 2,814.00 2,814.00 90 Expired/forfeited during the year (5,000 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 202,760 Rs. 1,982.00/ 2,607.00/2,814.00 Rs. 2,353.62 72 Exercisable at the end of the year 35,265 Rs. 1,982.00/ 2,607.00 Rs. 2,150.81 51 For the Year Ended March 31, 2019 Category A — Fair Market Value Options Shares arising out Range of exercise Weighted average Weighted average Outstanding at the beginning of the year - Rs. - Rs. - - Granted during the year 149,160 1,982.00/ 2,607.00 2,176.00 90 Expired/forfeited during the year (3,100 ) 2,607.00 2,607.00 - Exercised during the year - - - - Outstanding at the end of the year 146,060 Rs. 1,982.00/ 2,607.00 Rs. 2,166.00 81 Exercisable at the end of the year - - - - |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of transactions between related parties [text block] | The following is a summary of significant related party transactions: For the Year Ended March 31, 2020 2019 2018 Research and development services received Rs. 105 Rs. 97 Rs. 98 Sale of goods 14 23 - Lease rentals received 1 - - Research and development services provided 58 103 100 Lease rentals paid 35 35 35 Catering expenses paid 344 270 178 Hotel expenses paid 22 26 49 Facility management services paid 24 - - Purchase of Solar power 108 - - Civil works 101 106 - Contributions towards social development 233 220 238 Salaries to relatives of Key Management Personnel 7 5 1 Others 4 1 - |
Schedule of outstanding balances for related party transactions [Table Text Block] | The Company had the foll ow As at March 31, 2020 2019 Key management personnel and close members of their families Rs. 8 Rs. 8 Other related parties 68 106 The Company had the following amo un As at March 31, 2020 2019 Due to related parties Rs. 91 Rs. 80 |
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, 2020 2019 2018 Salaries and other benefits Rs. 684 Rs. 668 Rs. 458 Contributions to defined contribution plans 34 35 38 Commission to directors 298 243 153 Share-based payments expense 165 99 114 Rs. 1,181 Rs. 1,045 Rs. 763 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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 as at March 31, 2020 and March 31, 2019 were as follows: As of March 31, 2020 As of March 31, 2019 Total carrying Total fair value Total carrying Total fair value Assets: Cash and cash equivalents Rs. 2,053 Rs. 2,053 Rs. 2,228 Rs. 2,228 Other investments (1) 24,015 24,015 23,343 23,343 Trade and other receivables 52,015 52,015 39,982 39,982 Derivative financial instruments 1,105 1,105 360 360 Other assets (2) 4,170 4,170 2,843 2,843 Total Rs. 83,358 Rs. 83,358 Rs. 68,756 Rs. 68,756 Liabilities: Trade and other payables Rs. 16,659 Rs. 16,659 Rs. 14,553 Rs. 14,553 Derivative financial instruments 1,602 1,602 68 68 Long-term borrowings 5,570 5,570 26,256 26,256 Short-term borrowings 16,441 16,441 12,125 12,125 Bank overdraft 91 91 - - Other liabilities and provisions (3) 25,317 25,317 21,902 21,902 Total Rs. 65,680 Rs. 65,680 Rs. 74,904 Rs. 74,904 (1) Interest accrued but not due on investments is included in other assets. (2) Other assets that are not financial assets (such as receivables from statutory autho ri (3) Other liabilities and provisions that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs.10,725 and Rs.8,898 as of March 31, 2020 and 2019, respectively, are not included. |
Disclosure of detailed information about Fair Value Measurement Of Assets And Liabilities [Table Text Block] | The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2020: Particulars Level 1 Level 2 Level 3 Total FVTPL - Financial asset - Investments in units of mutual funds Rs. 13,832 Rs. - Rs. - Rs. .13,832 FVTOCI - Financial asset - Investment in equity securities 303 - - 303 FVTOCI - Financial asset - Investment in market linked debentures 1,993 - - 1,993 Derivative financial instruments – net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - (497 ) - (497 ) The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2019: Particulars Level 1 Level 2 Level 3 Total FVTPL - Financial asset - Investments in units of mutual funds Rs. 16,240 Rs. - Rs. - Rs. 16,240 FVTOCI - Financial asset - Investment in equity securities 791 - - 791 Derivative financial instruments – net gain/(loss) on outstanding foreign exchange forward, option and swap contracts and interest rate swap contracts (1) - 292 - 292 (1) The Company enters into derivative financial instruments with various counterparties, principally financial institutions and banks. Deri v |
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, 2020 2019 2018 Net gain/(loss) recognized in finance costs in respect of foreign exchange derivative contracts and cross currency interest rate swaps contracts Rs. 155 Rs. (257 ) Rs. 168 Net gain/(loss) recognized in equity in respect of hedges of highly probable forecast transactions (951 ) 180 (82 ) Net gain/(loss) reclassified from equity and recognized as component of revenue occurrence of forecasted transaction (50 ) (524 ) 651 |
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, 2020. Category Instrument Currency (1) Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 148 Sell Forward contract RUB INR RUB 5,968 Sell Forward contract GBP INR GBP 9 Sell Forward contract AUD INR AUD 4 Sell Forward contract CHF INR CHF 200 Sell Forward contract ZAR INR ZAR 71 Sell Forward contract CHF U.S.$ CHF 200 Buy Forward contract EUR GBP EUR 3 Sell Forward contract EUR U.S.$ EUR 6 Buy Forward contract GBP U.S.$ GBP 38 Buy Forward contract U.S.$ AUD U.S.$ 5 Buy Forward contract U.S.$ BRL U.S.$ 6 Buy Forward contract U.S.$ CLP U.S.$ 4 Buy Forward contract U.S.$ COP U.S.$ 4 Buy Forward contract U.S.$ KZT U.S.$ 11 Buy Forward contract U.S.$ MXN U.S.$ 2 Buy Forward contract U.S.$ RON U.S.$ 7 Buy Forward contract U.S.$ RUB U.S.$ 6 Buy Forward contract U.S.$ UAH U.S.$ 19 Buy Forward contract U.S.$ INR U.S.$ 140 Sell Hedges of highly probable forecast transactions Option contract U.S.$ INR U.S.$270 Sell The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts as of March 31, 2019. Category Instrument Currency (1) Cross Currency (1) Amounts Buy/Sell Hedges of recognized assets and liabilities Forward contract U.S.$ INR U.S.$ 261 Sell Forward contract RUB INR RUB 2,710 Sell Forward contract GBP INR GBP 18 Sell Forward contract U.S.$ RUB U.S.$ 30 Buy Forward contract GBP U.S.$ GBP 23 Buy Hedges of highly probable forecast transactions Forward contract RUB INR RUB 1,350 Sell Option contract U.S.$ INR U.S.$ 300 Sell (1) “INR” means Indian rupees, “U.S.$” means United States dollars, “RON” means Romanian new leus, “GBP” means U.K. po un |
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, 2020 2019 Cash flows in U.S. Dollars Not later than one month Rs. 2,648 Rs. 2,420 Later than one month and not later than three months 5,297 4,841 Later than three months and not later than six months 7,945 7,261 Later than six months and not later than one year 4,540 6,225 Rs. 20,430 Rs. 20,747 Cash flows in Roubles Not later than one month Rs. - Rs. 161 Later than one month and not later than three months - 320 Later than three months and not later than six months - 480 Later than six months and not later than one year - 480 Rs. - Rs. 1,441 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020: U.S. dollars Euro Russian roubles Others (1) Total Assets: Cash and cash equivalents Rs. 365 Rs. 43 Rs. 4 Rs. 135 Rs. 547 Other investments 24 - - - 24 Trade and other receivables 31,931 705 989 317 33,942 Other assets 921 15 3 153 1,092 Total Rs. 33,241 Rs. 763 Rs. 996 Rs. 605 Rs. 35,605 Liabilities: Trade and other payables Rs. 1,857 Rs. 525 Rs. - Rs. 73 Rs. 2,455 Long-term borrowings 4,401 2 3 77 4,483 Short-term borrowings 7,316 - - - 7,316 Other liabilities and provisions 5,534 60 52 400 6,046 Total Rs. 19,108 Rs. 587 Rs. 55 Rs. 550 Rs. 20,300 The following table analyzes foreign currency risk from non-derivative financial instruments as at March 31, 2019: U.S. dollars Euro Russian roubles Others (1) Total Assets: Cash and cash equivalents Rs. 339 Rs. 30 Rs. 58 Rs. 418 Rs. 845 Other investments 20 - - - 20 Trade and other receivables 20,524 437 7,290 2,969 31,220 Other assets 298 18 68 138 522 Total Rs. 21,181 Rs. 485 Rs. 7,416 Rs. 3,525 Rs. 32,607 Liabilities: Trade and other payables Rs. 2,426 Rs. 1,044 Rs. - Rs. 267 Rs. 3,737 Long-term borrowings 5,186 - - - 5,186 Short-term borrowings 7,538 - 1,387 307 9,232 Other liabilities and provisions 6,542 58 1,517 855 8,972 Total Rs. 21,692 Rs. 1,102 Rs. 2,904 Rs. 1,429 Rs. 27,127 (1) Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus, Chinese Yuans (Renminbi), Canadian Dollars and Ukrainian hryvnia. |
Analysis of Age of Trade And Other Receivables [Table Text Block] | The aging of trade and other receivables is given below: As of March 31, Particulars 2020 2019 Neither past due nor impaired Rs. 45,864 Rs. 33,874 Past due but not impaired Less than 365 days 6,305 6,262 More than 365 days 1,048 1,018 Rs. 53,217 Rs. 41,154 Less : Allowance for credit losses (1,202 ) (1,172 ) Total Rs. 52,015 Rs. 39,982 |
Maturity Analysis For Financial Liabilities [Table Text Block] | The table below provides details regarding the contractual maturities of significant financial liabilities (other than long-term borrowings and obligations under leases, which have been disclosed in Note 16 to these consolidated financial statements) as at March 31, 2020: Particulars 2021 2022 2023 2024 Thereafter Total Trade and other payables Rs. 16,659 Rs. - Rs. - Rs. - Rs. - Rs. 16,659 Bank overdraft, short-term borrowings 16,532 - 16,532 Derivative financial instruments 1,602 - 1,602 Other liabilities and provisions 24,566 - 751 25,317 The table below provides details regarding the contractual maturities of significant financial liabilities (other than long-term borrowings and obligations under finance leases, which have been disclosed in Note 16 to these consolidated financial statements) as at March 31, 2019: Particulars 2020 2021 2022 2023 Thereafter Total Trade and other payables Rs. 14,553 Rs. - Rs. - Rs. - Rs. - Rs. 14,553 Bank overdraft, short-term borrowings 12,125 12,125 Derivative financial instruments 68 68 Other liabilities and provisions 21,113 17 17 17 738 21,902 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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 Refer to below footnote (1) October 2009 to March 2011 Rs.125 plus penalties of Rs.100 and interest Refer to below footnote (1) April 2011 to March 2012 Rs.51 plus penalties of Rs.5 and interest Refer to below footnote (1) April 2012 to March 2013 Rs.54 plus penalties of Rs.5 and interest Refer to below footnote (1) April 2013 to March 2014 Rs.69 plus penalties of Rs.6 and interest Refer to below footnote (1) April 2014 to March 2015 Rs.108 plus penalties of Rs.11 and interest Refer to below footnote (1) April 2015 to March 2016 Rs.157 plus interest and penalties Refer to below footnote (2) April 2016 to June 2017 Rs.307 plus interest and penalties Refer to below footnote (2) (1) Pursuant to the appeal before Customs, Excise and Service Tax Appellate Tribunal, Hyderabad (“CESTAT”), the CESTAT has passed the order during the year in favor of the Company by setting aside the demand notices of the Central Excise Authorities as unsustainable. (2) Principal Commissioner of Central Tax has passed the order confirming the tax demand. The Company is in the process of filing the appeal against such order. Based on the judicial precedence in its own case and also on the merit of the case, 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, 2020. |
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 the notice Amount demanded Status April 2006 to March 2009 Rs.66 plus 10% penalty The State VAT Appellate Tribunal has remanded the matter to the assessing authority to re-compute the eligibility and penalty orders are set-aside. The Company filed appeal against the same with the High Court, Telangana. April 2009 to March 2011 Rs.59 plus 10% penalty The Company has filed an appeal before the Sales Tax Appellate Tribunal. The matter was remanded to the original adjudicating authority with a direction to re-calculate the eligibility for the year ended March 31, 2010. April 2011 to March 2014 Rs.27 plus 10% penalty The Appellate Deputy Commissioner issued an order partially in favor of the Company |
Organizational structure (Table
Organizational structure (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020: Name of the subsidiary/joint venture Country of Incorporation Percentage of Direct/Indirect Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. Malaysia 100% (3) Aurigene Discovery Technologies Inc. U.S.A. 100% (3) Aurigene Discovery Technologies Limited India 100% Aurigene Pharmaceutical Services Limited (from September 16, 2019) India 100% (3) 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 below footnote (16) Chirotech Technology Limited United Kingdom 100% (2)(5) Dr. Reddy’s Research Foundation India Refer to below footnote (16) Dr. Reddy's Employees ESOS Trust (from July 27, 2018) India Refer to below 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. Chile 100% (10) Dr. Reddy’s Laboratories Inc. U.S.A. 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. Malaysia 100% (10) Dr. Reddy’s Laboratories New York, Inc. U.S.A. 100% (10) Dr. Reddy's Laboratories Philippines Inc. (from May 9, 2018) Philippines 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 Taiwan 100% (10) Dr. Reddy's Laboratories (Thailand) Limited (from June 13, 2018) Thailand 100% (10) Dr. Reddy’s Laboratories, LLC Ukraine 100% (10) Dr. Reddy’s New Zealand Limited. New Zealand 100% (10) Dr. Reddy’s S.R.L 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 China 100% (10) DRANU LLC U.S.A. 50% (2) (13) DRES Energy Private Limited India 26% (14) DRL Impex Limited India 100% (15) Dr. Reddy's Laboratories B.V. (formerly 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 Comany Limited China 51.33% (4) Lacock Holdings Limited Cyprus 100% (10) OOO Dr. Reddy's Laboratories Limited Russia 100% (10) OOO DRS LLC Russia 100% (9) Promius Pharma LLC U.S.A. 100% (6) Reddy Holding GmbH Germany 100% (10) Reddy Netherlands B.V. Netherlands 100% (10) Reddy Pharma Iberia SAU 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 Reddy Netherlands B.V. (from March 28, 2019), formerly a subsidiary of Dr. Reddy’s Research and Development B.V. (2) Entities under liquidation. (3) Indirectly owned through Aurigene Discovery Technologies Limited. (4) Kunshan Rotam Reddy Pharmaceutical Company Limited is a subsidiary as per Indian Companies Act, 2013, 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 OOO Dr. Reddy's Laboratories Limited. (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) Private 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 finan_3
Basis of preparation of financial statements (Details Textual) | Mar. 31, 2020INRPerUSD |
Basis of preparation of financial statements [Abstract] | |
Convenience Translation rate | 75.39 |
Significant accounting polici_4
Significant accounting policies (Details 1) | 12 Months Ended |
Mar. 31, 2020 | |
Factory and administrative buildings [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 20 years |
Factory and administrative buildings [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Ancillary structures [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Ancillary structures [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 15 years |
Plant and equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Plant and equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 15 years |
Furniture, fixtures and office equipment [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Furniture, fixtures and office equipment [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Vehicles [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 4 years |
Vehicles [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Significant accounting polici_5
Significant accounting policies (Details 2) | 12 Months Ended |
Mar. 31, 2020 | |
Product related intangibles [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Product related intangibles [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 15 years |
Customer-related intangibles [Member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 1 year |
Customer-related intangibles [Member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 11 years |
Other intangibles [Member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Other intangibles [Member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 15 years |
Significant accounting polici_6
Significant accounting policies (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Significant Accounting Policies [Line Items] | ||
Depreciation, right-of-use assets | ₨ 491 | |
Finance costs | 230 | |
Right-of-use assets [member] | ||
Significant Accounting Policies [Line Items] | ||
Adjustments for lease incentives and lease agreement | 182 | |
Finance costs | 230 | |
Recognition of right-of-use liabilities on initial application of IFRS 16 | 1,335 | |
Recognition of right-of-use assets on initial application of IFRS 16 | ₨ 1,153 | |
Top of range [member] | ||
Significant Accounting Policies [Line Items] | ||
Hedge Effectiveness, Percentage at which the hedge considered effective | 125.00% | 125.00% |
Bottom of range [member] | ||
Significant Accounting Policies [Line Items] | ||
Hedge Effectiveness, Percentage at which the hedge considered effective | 80.00% | 80.00% |
Segment reporting (Details)
Segment reporting (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||||
Disclosure of operating segments [line items] | ||||||||
Revenues | ₨ 174,600 | $ 2,316 | [1],[2] | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Gross Profit | 94,009 | 1,247 | 83,430 | 76,304 | ||||
Selling, general and administrative expenses | 50,129 | 665 | 48,680 | 46,857 | ||||
Research and development expenses | 15,410 | 204 | 15,607 | 18,265 | ||||
Impairment of non-current assets | 16,767 | 222 | 210 | 53 | ||||
Other income, net | (4,290) | (57) | (1,955) | (788) | ||||
Results from operating activities | 15,993 | 212 | 20,888 | 11,917 | ||||
Finance income, net | 1,478 | 20 | 1,117 | 2,080 | ||||
Share of profit of equity accounted investees, net of tax | 561 | 7 | 438 | 344 | ||||
Profit before tax | 18,032 | 239 | 22,443 | 14,341 | ||||
Tax (expense)/benefit, net | 1,466 | 19 | (3,648) | (4,535) | ||||
Profit for the year | 19,498 | $ 259 | 18,795 | 9,806 | ||||
Global Generics [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenues | [1],[2] | 138,123 | 122,903 | 114,014 | ||||
Gross Profit | 78,449 | 71,924 | 67,190 | |||||
Pharmaceutical Services and Active Ingredients [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenues | [1],[2] | 25,747 | 24,140 | 21,992 | ||||
Gross Profit | 6,190 | 6,128 | 4,446 | |||||
Proprietary Product [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenues | [1],[2] | 7,949 | 4,750 | 4,245 | ||||
Gross Profit | 7,744 | 4,182 | 3,799 | |||||
Other segment [Member] | ||||||||
Disclosure of operating segments [line items] | ||||||||
Revenues | [1],[2] | 2,781 | 2,058 | 1,777 | ||||
Gross Profit | ₨ 1,626 | ₨ 1,196 | ₨ 869 | |||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | |||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Segment reporting (Details 1)
Segment reporting (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of operating segments [abstract] | |||
Excise duty included in revenues | ₨ 0 | ₨ 0 | ₨ 173 |
Segment reporting (Details 2)
Segment reporting (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Disclosures Of Geographical Areas [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
India [Member] | |||||||
Disclosures Of Geographical Areas [Line Items] | |||||||
Revenue | 32,089 | 28,804 | 25,209 | ||||
United States Country [Member] | |||||||
Disclosures Of Geographical Areas [Line Items] | |||||||
Revenue | 76,028 | 69,299 | 68,124 | ||||
Russia [Member] | |||||||
Disclosures Of Geographical Areas [Line Items] | |||||||
Revenue | 16,900 | 15,299 | 12,610 | ||||
Others [Member] | |||||||
Disclosures Of Geographical Areas [Line Items] | |||||||
Revenue | ₨ 49,583 | ₨ 40,449 | ₨ 36,085 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Segment reporting (Details 3)
Segment reporting (Details 3) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Disclosure of operating segments [line items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 138,123 | 122,903 | 114,014 | ||||
Nervous System [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 26,825 | 19,726 | 17,347 | ||||
Gastrointestinal [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 19,394 | 19,250 | 19,153 | ||||
Oncology [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 18,245 | 18,357 | 16,999 | ||||
Cardiovascular [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 14,729 | 15,106 | 16,501 | ||||
Pain Management [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 13,808 | 13,806 | 12,898 | ||||
Respiratory [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 10,433 | 8,130 | 6,205 | ||||
Anti-Infective [Member] | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | 9,402 | 7,073 | 6,557 | ||||
Others | Global Generic [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue | ₨ 25,287 | ₨ 21,455 | ₨ 18,354 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Segment reporting (Details 4)
Segment reporting (Details 4) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 25,747 | 24,140 | 21,992 | ||||
Cardiovascular [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 8,567 | 7,019 | 6,191 | ||||
Pain Management [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 5,073 | 3,364 | 3,228 | ||||
Nervous System [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 2,797 | 2,741 | 2,331 | ||||
Oncology [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 1,798 | 2,212 | 1,650 | ||||
Dermatology [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 1,370 | 1,622 | 1,606 | ||||
Anti-Infective [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | 1,097 | 1,247 | 1,968 | ||||
Others [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Disclosure Of Operating Segment [Line Items] | |||||||
Revenue | ₨ 5,045 | ₨ 5,935 | ₨ 5,018 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Segment reporting (Details 5)
Segment reporting (Details 5) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
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 | ₨ 86,797 | ₨ 105,098 |
India Country [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 | 55,083 | 57,205 |
Switzerland Country [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 | 18,204 | 33,536 |
United States Country [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 | 7,065 | 7,013 |
Germany Country [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 | 1,435 | 2,103 |
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 | ₨ 5,010 | ₨ 5,241 |
Segment reporting (Details 6)
Segment reporting (Details 6) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | ₨ 7,473 | ₨ 7,446 |
India Country [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 | 5,519 | 5,341 |
Switzerland Country [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 | 1,025 | 1,112 |
United States Country [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 | 241 | 206 |
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 | ₨ 688 | ₨ 787 |
Segment reporting (Details 7)
Segment reporting (Details 7) - Cost of Revenues [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | ₨ 6,541 | ₨ 6,768 | ₨ 6,595 |
Global Generic [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 3,666 | 3,791 | 3,606 |
PSAI [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 2,804 | 2,906 | 2,923 |
Proprietary Products [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | 0 | 0 | 0 |
Others [Member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortisation expense | ₨ 71 | ₨ 71 | ₨ 66 |
Segment reporting (Details Text
Segment reporting (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||||
Disclosure of major customers [line items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | [1],[2] | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] |
Inter-segment revenues from PSAI to Global Generic | 5,910 | 5,785 | 5,492 | ||||
Major Customer 1 [Member] | |||||||
Disclosure of major customers [line items] | |||||||
Revenue | ₨ 14,164 | ₨ 10,639 | ₨ 13,486 | ||||
Percentage of entity's revenue | 8.00% | 8.00% | 7.00% | 9.00% | |||
Major Customer 2 [Member] | |||||||
Disclosure of major customers [line items] | |||||||
Revenue | ₨ 9,267 | ₨ 10,024 | ₨ 10,755 | ||||
Percentage of entity's revenue | 5.00% | 5.00% | 7.00% | 8.00% | |||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2019USD ($) | Mar. 31, 2018INR (₨) | Mar. 31, 2017INR (₨) |
Cash and Cash Equivalents [Abstract] | ||||||
Cash on hand | ₨ 2 | ₨ 2 | ||||
Balances with banks | 1,807 | 2,102 | ||||
Term deposits with banks (original maturities less than 3 months) | 244 | 124 | ||||
Cash and cash equivalents in the statement of financial position | 2,053 | $ 27 | 2,228 | |||
Bank overdrafts used for cash management purposes | 91 | 1 | 0 | |||
Cash and cash equivalents in the statement of cash flow | 1,962 | $ 26 | 2,228 | $ 30 | ₨ 2,542 | ₨ 3,779 |
Balance in unclaimed dividend and debenture interest account | 111 | 112 | ||||
Other restricted cash balances | ₨ 15 | ₨ 12 |
Other investments (Details)
Other investments (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |
Other Investments [Line Items] | ||||
Current portion | ₨ 23,687 | $ 314 | ₨ 22,529 | |
Non-current portion | 328 | $ 4 | 813 | |
Cost [member] | ||||
Other Investments [Line Items] | ||||
Current portion | 23,548 | 22,222 | ||
Non-current portion | 2,725 | 2,724 | ||
Cost [member] | Investment in mutual funds [member] | ||||
Other Investments [Line Items] | ||||
Current portion | 13,686 | 15,933 | ||
Cost [member] | Investment in Bonds [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 1,851 | 5,272 | ||
Cost [member] | Investment in commercial paper [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 967 | 459 | ||
Cost [member] | Investment in market linked debentures [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 2,000 | 0 | ||
Cost [member] | Term deposits with banks [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 5,044 | 558 | ||
Cost [member] | Investment in equity securities [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | [1] | 2,701 | 2,703 | |
Cost [member] | Investment in others [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | 24 | 21 | ||
Unrealised gain/(loss) [member] | ||||
Other Investments [Line Items] | ||||
Current portion | 139 | 307 | ||
Non-current portion | (2,397) | (1,911) | ||
Unrealised gain/(loss) [member] | Investment in mutual funds [member] | ||||
Other Investments [Line Items] | ||||
Current portion | 146 | 307 | ||
Unrealised gain/(loss) [member] | Investment in Bonds [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 0 | 0 | ||
Unrealised gain/(loss) [member] | Investment in commercial paper [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 0 | 0 | ||
Unrealised gain/(loss) [member] | Investment in market linked debentures [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | (7) | 0 | ||
Unrealised gain/(loss) [member] | Term deposits with banks [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | 0 | 0 | ||
Unrealised gain/(loss) [member] | Investment in equity securities [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | [1] | (2,397) | (1,911) | |
Unrealised gain/(loss) [member] | Investment in others [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | 0 | 0 | ||
Fair value / amortized cost [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 23,687 | 22,529 | |
Non-current portion | [2] | 328 | 813 | |
Fair value / amortized cost [Member] | Investment in mutual funds [member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 13,832 | 16,240 | |
Fair value / amortized cost [Member] | Investment in Bonds [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 1,851 | 5,272 | |
Fair value / amortized cost [Member] | Investment in commercial paper [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 967 | 459 | |
Fair value / amortized cost [Member] | Investment in market linked debentures [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 1,993 | 0 | |
Fair value / amortized cost [Member] | Term deposits with banks [Member] | ||||
Other Investments [Line Items] | ||||
Current portion | [2] | 5,044 | 558 | |
Fair value / amortized cost [Member] | Investment in equity securities [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | [1],[2] | 304 | 792 | |
Fair value / amortized cost [Member] | Investment in others [Member] | ||||
Other Investments [Line Items] | ||||
Non-current portion | [2] | ₨ 24 | ₨ 21 | |
[1] | Primarily represents the shares of Curis, Inc. Refer to Note 33 of these consolidated financial statements for further details. | |||
[2] | Interest accrued but not due on bonds and debentures, commercial paper and term deposits with banks is included in other current assets. |
Trade and other receivables (De
Trade and other receivables (Details) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current [Abstract] | ||||
Current Trade And Other Receivable Gross | ₨ 51,480 | ₨ 41,041 | ||
Less: Allowance for credit losses | (1,202) | (1,172) | ₨ (952) | |
Current trade receivables | 50,278 | 39,869 | ||
Non-current [Abstract] | ||||
Non Current Trade And Other Receivable Gross | [1] | 1,737 | 113 | |
Less: Allowance for credit losses | 0 | 0 | ||
Non-current trade receivables | ₨ 1,737 | ₨ 113 | ||
[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 (_2
Trade and other receivables (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at the beginning of the year | ₨ 1,172 | ₨ 952 |
Adjustment on account of transition to IFRS 9 | 0 | 89 |
Adjusted balance at the beginning of the year | 1,172 | 1,041 |
Provision made during the year, net of reversals | 154 | 371 |
Trade and other receivables written off & exchange differences | (124) | (240) |
Balance at the end of the year | ₨ 1,202 | ₨ 1,172 |
Trade and other receivables (_3
Trade and other receivables (Details Textual) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2019USD ($) |
Factoring of receivables [member] | ||||
Factoring of receivables [Line Items] | ||||
Trade Receivables Derecognised Pursuant To Sale To The Bank | ₨ 9,049 | $ 120 | ₨ 7,592 | $ 110 |
Inventories (Details)
Inventories (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) |
Classes of current inventories [abstract] | |||
Raw materials | ₨ 10,594 | ₨ 8,920 | |
Work-in-progress | 6,806 | 7,201 | |
Finished goods (includes stock-in-trade) | 15,126 | 14,969 | |
Packing materials, stores and spares | 2,540 | 2,489 | |
Total Inventories | ₨ 35,066 | $ 465 | ₨ 33,579 |
Inventories (Details 1)
Inventories (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Classes of current inventories [abstract] | ||||
Raw materials, consumables and changes in finished goods and work in progress | ₨ 51,892 | ₨ 40,932 | ₨ 32,410 | |
Inventory write-downs | [1] | ₨ 3,652 | ₨ 4,016 | ₨ 2,946 |
[1] | Following the Company’s decision to voluntarily recall all of its ranitidine medications sold in United States, due to confirmed contamination with N-Nitrosodimethylamine (“NDMA”) above levels established by the U.S. FDA, the Company recognized Rs.373 as inventory write downs of ranitidine during the year ended March 31, 2020. Furthermore, an amount of Rs.239 was recognized (as a reduction from revenue) as a provision for refund liabilities arising out of the Company’s recall decision. |
Inventories - (Details Textual)
Inventories - (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Disclosure of Inventories [Line Items] | ||||
Inventory write-downs | [1] | ₨ 3,652 | ₨ 4,016 | ₨ 2,946 |
Ranitidine [Member] | ||||
Disclosure of Inventories [Line Items] | ||||
Inventory write-downs | 373 | |||
Refunds provision | ₨ 239 | |||
[1] | Following the Company’s decision to voluntarily recall all of its ranitidine medications sold in United States, due to confirmed contamination with N-Nitrosodimethylamine (“NDMA”) above levels established by the U.S. FDA, the Company recognized Rs.373 as inventory write downs of ranitidine during the year ended March 31, 2020. Furthermore, an amount of Rs.239 was recognized (as a reduction from revenue) as a provision for refund liabilities arising out of the Company’s recall decision. |
Other assets (Details)
Other assets (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |
Current | ||||
Other Assets | ₨ 13,802 | $ 183 | ₨ 12,536 | |
Non-current | ||||
Other non-current assets | 844 | $ 11 | 946 | |
Current | ||||
Current | ||||
Balances and receivables from statutory authorities | [1] | 4,445 | 4,398 | |
Export benefits receivable | [2] | 2,652 | 2,363 | |
Prepaid expenses | 950 | 951 | ||
Others | [3] | 5,755 | 4,824 | |
Other Assets | 13,802 | 12,536 | ||
Non-current | ||||
Non-current | ||||
Security deposits | 613 | 562 | ||
Others | 231 | 384 | ||
Other non-current assets | ₨ 844 | ₨ 946 | ||
[1] | Balances and receivables from statutory authorities primarily consist of amounts recoverable towards the goods and service tax (“GST”), excise duty and value added tax, and from customs authorities of India. | |||
[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, security deposits, interest accrued but not due on investments, and claims receivable. |
Property, plant and equipment_2
Property, plant and equipment (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | ₨ 54,088 | ||||
Impairment | ₨ 94 | ||||
Ending Balance | 52,332 | $ 694 | 54,088 | ||
Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 104,730 | 100,186 | |||
Recognition of right of use asset on initial application of IFRS 16 | 1,153 | ||||
Adjusted balance | 105,883 | ||||
Additions | 6,071 | 8,313 | |||
Disposals | [1],[2] | (1,193) | (4,048) | ||
Effect of changes in foreign exchange rates | 361 | 279 | |||
Ending Balance | 111,122 | 104,730 | |||
Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 55,560 | 50,245 | |||
Depreciation for the year | 8,640 | 8,362 | |||
Impairment | 0 | 89 | |||
Disposals | [1],[2] | (1,112) | (3,232) | ||
Effect of changes in foreign exchange rates | 223 | 96 | |||
Ending Balance | 63,311 | 55,560 | |||
Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 49,170 | 49,941 | |||
Ending Balance | 47,811 | 49,170 | |||
Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 4,918 | ||||
Ending Balance | 4,521 | 4,918 | |||
Land [Member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 4,192 | 4,216 | |||
Recognition of right of use asset on initial application of IFRS 16 | 0 | ||||
Adjusted balance | 4,192 | ||||
Additions | 4 | 3 | |||
Disposals | 0 | (51) | [1],[2] | ||
Effect of changes in foreign exchange rates | (73) | 24 | |||
Ending Balance | 4,123 | 4,192 | |||
Land [Member] | Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 0 | 38 | |||
Depreciation for the year | 0 | 0 | |||
Impairment | 0 | 12 | |||
Disposals | 0 | (50) | [1],[2] | ||
Effect of changes in foreign exchange rates | 0 | 0 | |||
Ending Balance | 0 | 0 | |||
Land [Member] | Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 4,192 | 4,178 | |||
Ending Balance | 4,123 | 4,192 | |||
Buildings [member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 23,106 | 22,441 | |||
Recognition of right of use asset on initial application of IFRS 16 | 723 | ||||
Adjusted balance | 23,829 | ||||
Additions | 997 | 1,476 | |||
Disposals | [1],[2] | (55) | (892) | ||
Effect of changes in foreign exchange rates | 185 | 81 | |||
Ending Balance | 24,956 | 23,106 | |||
Buildings [member] | Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 6,873 | 6,343 | |||
Depreciation for the year | 1,306 | 1,040 | |||
Impairment | 0 | 59 | |||
Disposals | [1],[2] | (36) | (612) | ||
Effect of changes in foreign exchange rates | 65 | 43 | |||
Ending Balance | 8,208 | 6,873 | |||
Buildings [member] | Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 16,233 | 16,098 | |||
Ending Balance | 16,748 | 16,233 | |||
Plant and equipment [member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 70,940 | 67,215 | |||
Recognition of right of use asset on initial application of IFRS 16 | 2 | ||||
Adjusted balance | 70,942 | ||||
Additions | 4,278 | 6,002 | |||
Disposals | [1],[2] | (706) | (2,444) | ||
Effect of changes in foreign exchange rates | 353 | 167 | |||
Ending Balance | 74,867 | 70,940 | |||
Plant and equipment [member] | Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 43,642 | 38,985 | |||
Depreciation for the year | 6,404 | 6,538 | |||
Impairment | 0 | 17 | |||
Disposals | [1],[2] | (667) | (1,945) | ||
Effect of changes in foreign exchange rates | 223 | 47 | |||
Ending Balance | 49,602 | 43,642 | |||
Plant and equipment [member] | Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 27,298 | 28,230 | |||
Ending Balance | 25,265 | 27,298 | |||
Furniture, fixtures and office equipment [member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 5,717 | 5,544 | |||
Recognition of right of use asset on initial application of IFRS 16 | 28 | ||||
Adjusted balance | 5,745 | ||||
Additions | 497 | 707 | |||
Disposals | [1],[2] | (253) | (541) | ||
Effect of changes in foreign exchange rates | (24) | 7 | |||
Ending Balance | 5,965 | 5,717 | |||
Furniture, fixtures and office equipment [member] | Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 4,603 | 4,505 | |||
Depreciation for the year | 562 | 614 | |||
Impairment | 0 | 1 | |||
Disposals | [1],[2] | (251) | (523) | ||
Effect of changes in foreign exchange rates | (11) | 6 | |||
Ending Balance | 4,903 | 4,603 | |||
Furniture, fixtures and office equipment [member] | Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 1,114 | 1,039 | |||
Ending Balance | 1,062 | 1,114 | |||
Vehicles [Member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 775 | 770 | |||
Recognition of right of use asset on initial application of IFRS 16 | 400 | ||||
Adjusted balance | 1,175 | ||||
Additions | 295 | 125 | |||
Disposals | [1],[2] | (179) | (120) | ||
Effect of changes in foreign exchange rates | (80) | 0 | |||
Ending Balance | 1,211 | 775 | |||
Vehicles [Member] | Accumulated depreciation and impairment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 442 | 374 | |||
Depreciation for the year | 368 | 170 | |||
Impairment | 0 | 0 | |||
Disposals | [1],[2] | (158) | (102) | ||
Effect of changes in foreign exchange rates | (54) | 0 | |||
Ending Balance | 598 | 442 | |||
Vehicles [Member] | Excluding Capital-work-in-progress [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning Balance | 333 | 396 | |||
Ending Balance | ₨ 613 | ₨ 333 | |||
[1] | Consequent to the Company’s plan to dispose of certain non-current assets, these assets were measured at the lower of their carrying value and their fair value less costs to sell, and Rs.94 had been recognized as impairment loss for the three months ended June 30, 2018. During the three months ended September 30, 2018, the closing conditions were satisfied and the Company sold all of the issued and outstanding membership interests in Dr. Reddy’s Laboratories Tennessee, LLC and certain related assets. The sale resulted in a gain on disposal of Rs.110, which was recognized in the income statements under the heading “Other income, net” as gain on disposal of assets. The gain on disposal includes Rs.113 of foreign currency translation reserve reclassified to the income statements on disposal of foreign operations. | ||||
[2] | During the three months ended December 31, 2018, the Company sold one of its API manufacturing business units located in Jeedimetla, Hyderabad to Therapiva Private Limited. This sale was done on a slump sale basis (an Indian tax law concept which refers to the transfer of a business as a going concern without values being assigned to individual assets and liabilities), including all related property, plant and equipment, current assets, current liabilities, and transfer of employees. An amount of Rs.423 representing the profit on the sale of such business unit was included under the heading “Other income, net”. |
Property, plant and equipment_3
Property, plant and equipment (Details 1) ₨ in Millions | 12 Months Ended |
Mar. 31, 2020INR (₨) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation for the year | ₨ 491 |
Ending balance | 1,389 |
Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 962 |
Recognition of right of use asset on initial application of IFRS 16 | 1,153 |
Adjusted balance as at April 1, 2019 | 2,115 |
Additions | 253 |
Disposals | (57) |
Effect of changes in foreign exchange rates | 48 |
Ending balance | 2,359 |
Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 499 |
Depreciation for the year | 491 |
Disposals | (42) |
Effect of changes in foreign exchange rates | 22 |
Ending balance | 970 |
Land [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | 78 |
Land [Member] | Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 73 |
Recognition of right of use asset on initial application of IFRS 16 | 0 |
Adjusted balance as at April 1, 2019 | 73 |
Additions | 0 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 5 |
Ending balance | 78 |
Land [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0 |
Depreciation for the year | 0 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 0 |
Ending balance | 0 |
Buildings [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | 944 |
Buildings [member] | Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 840 |
Recognition of right of use asset on initial application of IFRS 16 | 723 |
Adjusted balance as at April 1, 2019 | 1,563 |
Additions | 87 |
Disposals | (1) |
Effect of changes in foreign exchange rates | 39 |
Ending balance | 1,688 |
Buildings [member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 454 |
Depreciation for the year | 267 |
Disposals | (1) |
Effect of changes in foreign exchange rates | 24 |
Ending balance | 744 |
Plant and equipment [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | 4 |
Plant and equipment [member] | Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 12 |
Recognition of right of use asset on initial application of IFRS 16 | 2 |
Adjusted balance as at April 1, 2019 | 14 |
Additions | 3 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 1 |
Ending balance | 18 |
Plant and equipment [member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 12 |
Depreciation for the year | 1 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 1 |
Ending balance | 14 |
Furniture Fixtures And Office Equipment [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | 32 |
Furniture Fixtures And Office Equipment [Member] | Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0 |
Recognition of right of use asset on initial application of IFRS 16 | 28 |
Adjusted balance as at April 1, 2019 | 28 |
Additions | 17 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 0 |
Ending balance | 45 |
Furniture Fixtures And Office Equipment [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0 |
Depreciation for the year | 13 |
Disposals | 0 |
Effect of changes in foreign exchange rates | 0 |
Ending balance | 13 |
Vehicles [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | 331 |
Vehicles [Member] | Gross carrying amount [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 37 |
Recognition of right of use asset on initial application of IFRS 16 | 400 |
Adjusted balance as at April 1, 2019 | 437 |
Additions | 146 |
Disposals | (56) |
Effect of changes in foreign exchange rates | 3 |
Ending balance | 530 |
Vehicles [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 33 |
Depreciation for the year | 210 |
Disposals | (41) |
Effect of changes in foreign exchange rates | (3) |
Ending balance | ₨ 199 |
Property, plant and equipment_4
Property, plant and equipment (Details 2) ₨ in Millions | 12 Months Ended |
Mar. 31, 2020INR (₨) | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Depreciation expense of right-of-use assets | ₨ 491 |
Interest expense on lease liabilities | ₨ 230 |
Property, plant and equipment_5
Property, plant and equipment (Details Textual) ₨ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018INR (₨) | Sep. 30, 2018INR (₨) | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Contractual commitments for acquisition of property, plant and equipment | ₨ 4,888 | ₨ 2,495 | ||||
Recognised Finance Leases As Assets | 463 | |||||
Cash outflow for leases | 972 | |||||
Foreign currency translation reserve reclassified to the income statements on disposal of foreign operations | 0 | $ 0 | 113 | ₨ 0 | ||
Impairment loss recognised in profit or loss, property, plant and equipment | 94 | |||||
Other Income Net [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Gains on disposals of non-current assets | ₨ 423 | ₨ 110 | ||||
Foreign currency translation reserve reclassified to the income statements on disposal of foreign operations | 113 | |||||
Property, Plant and Equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Interest costs capitalised | ₨ 52 | ₨ 74 | ||||
Capitalisation rate of borrowing costs eligible for capitalisation | 4.22% | 4.22% | 3.21% |
Goodwill (Details)
Goodwill (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2020INR (₨) | Mar. 31, 2019INR (₨) | Mar. 31, 2020USD ($) | |
Disclosure of reconciliation of changes in goodwill [abstract] | |||
Opening balance, gross | ₨ 20,176 | ₨ 20,219 | |
Effect of translation adjustments | 102 | (43) | |
Impairment loss | (16,284) | (16,274) | |
Closing balance | ₨ 3,994 | ₨ 3,902 | $ 53 |
Goodwill (Details 1)
Goodwill (Details 1) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) |
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ₨ 3,994 | $ 53 | ₨ 3,902 |
Cash-generating units [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 3,994 | 3,902 | |
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 | 1,372 | 1,287 | |
Cash-generating units [member] | Global Generics- North America Operations [Member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 1,021 | 1,005 | |
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 | ₨ 113 | ₨ 122 |
Goodwill (Details Textual)
Goodwill (Details Textual) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Impairment Loss Recorded In Goodwill Till Date | ₨ 16,284 | ₨ 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% | |
Before tax [Member] | Bottom of range [member] | Intangibles [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 8.80% | |
Before tax [Member] | Top of range [member] | Intangibles [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 18.12% | |
After tax [Member] | Bottom of range [member] | Intangibles [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 6.34% | |
After tax [Member] | Top of range [member] | Intangibles [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 14.00% |
Other intangible assets (Detail
Other intangible assets (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | ₨ 44,367 | ₨ 44,665 | ||
Ending balance | 27,659 | $ 367 | 44,367 | |
Gross carrying amount [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 85,571 | 85,541 | ||
Additions | 1,806 | 2,144 | ||
Disposals/De-recognitions | (815) | (3,576) | [1] | |
Effect of changes in foreign exchange rates | 4,534 | 1,462 | ||
Ending balance | 91,096 | 85,571 | ||
Accumulated amortization and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 41,204 | 40,876 | ||
Amortization for the year | 3,832 | 3,828 | ||
Impairment loss | 16,757 | 116 | ||
Disposals/De-recognitions | (750) | (3,172) | [1] | |
Effect of changes in foreign exchange rates | 2,394 | (444) | ||
Ending balance | 63,437 | 41,204 | ||
Product related intangibles [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 42,394 | 42,898 | ||
Ending balance | 25,799 | 42,394 | ||
Product related intangibles [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 81,971 | 82,187 | ||
Additions | 1,641 | 1,542 | ||
Disposals/De-recognitions | (814) | (3,219) | [1] | |
Effect of changes in foreign exchange rates | 4,532 | 1,461 | ||
Ending balance | 87,330 | 81,971 | ||
Product related intangibles [member] | Accumulated amortization and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 39,577 | 39,289 | ||
Amortization for the year | 3,554 | 3,432 | ||
Impairment loss | 16,757 | 116 | ||
Disposals/De-recognitions | (749) | (2,815) | [1] | |
Effect of changes in foreign exchange rates | 2,392 | (445) | ||
Ending balance | 61,531 | 39,577 | ||
Customer related intangibles [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Customer related intangibles [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 0 | 357 | ||
Additions | 0 | 0 | ||
Disposals/De-recognitions | 0 | (357) | [1] | |
Effect of changes in foreign exchange rates | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Customer related intangibles [member] | Accumulated amortization and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 0 | 357 | ||
Amortization for the year | 0 | 0 | ||
Impairment loss | 0 | 0 | ||
Disposals/De-recognitions | 0 | (357) | [1] | |
Effect of changes in foreign exchange rates | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Others [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,973 | 1,767 | ||
Ending balance | 1,860 | 1,973 | ||
Others [Member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 3,600 | 2,997 | ||
Additions | 165 | 602 | ||
Disposals/De-recognitions | (1) | 0 | [1] | |
Effect of changes in foreign exchange rates | 2 | 1 | ||
Ending balance | 3,766 | 3,600 | ||
Others [Member] | Accumulated amortization and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,627 | 1,230 | ||
Amortization for the year | 278 | 396 | ||
Impairment loss | 0 | 0 | ||
Disposals/De-recognitions | (1) | 0 | [1] | |
Effect of changes in foreign exchange rates | 2 | 1 | ||
Ending balance | ₨ 1,906 | ₨ 1,627 | ||
[1] | Gain on disposal of assets for the year ended March 31, 2019 includes an amount of Rs.682 representing the profit on sale of intangible assets forming part of the Company’s Proprietary Products segment. |
Other intangible assets (Deta_2
Other intangible assets (Details 1) ₨ in Millions | 12 Months Ended |
Mar. 31, 2020INR (₨) | |
Teva and an affiliate of Allergan [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | ANDAs |
Intangible assets material to entity | ₨ 9,813 |
UCB India Private Limited and affiliates [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Select portfolio of dermatology, respiratory and pediatric assets |
Intangible assets material to entity | ₨ 5,072 |
XenoPort, Inc. [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Intellectual property rights relating to PPC-06 (tepilamide fumarate) |
Intangible assets material to entity | ₨ 4,019 |
Novartis Consumer Health Inc [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Habitrol ® brand |
Intangible assets material to entity | ₨ 1,936 |
Eisai Company Limited [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Commercialization rights for an anti-cancer biologic agent |
Intangible assets material to entity | ₨ 1,838 |
Ducere Pharma LLC [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Over the counter product brands |
Intangible assets material to entity | ₨ 731 |
3i Group Plc [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Beta brand |
Intangible assets material to entity | ₨ 578 |
Gland Pharma Limited [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Description of intangible assets material to entity | Various ANDAs |
Intangible assets material to entity | ₨ 284 |
Other intangible assets (Deta_3
Other intangible assets (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | ₨ 44,367 | ₨ 44,665 | ||
Ending balance | 27,659 | $ 367 | 44,367 | |
In-process research and development assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 24,610 | 27,027 | ||
Add: Additions during the year | [1] | 950 | 1,171 | |
Less: Capitalizations during the year | [2] | (2,530) | (5,445) | |
Less: Impairments during the year | (13,379) | 0 | ||
Effect of changes in exchange rates | 1,336 | 1,857 | ||
Ending balance | ₨ 10,987 | ₨ 24,610 | ||
[1] | During the year ended March 31, 2020, the Company acquired a portfolio of approved, non-marketed Abbreviated New Drug Applications (“ANDAs”) in the United States from Teva for a total consideration of Rs.277 (U.S.$4). The Company recognized these ANDAs acquired as product related intangibles. | |||
[2] | During the year ended March 31, 2020, the products ramelton was available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. During the year ended March 31, 2019, the products buprenorphine and naloxone sublingual film and tobramycin were available for use and are subject to amortization. Accordingly, the Company reclassified the amount from IPR&D to product related intangibles. |
Other intangible assets (Deta_4
Other intangible assets (Details Textual) ₨ in Millions | 12 Months Ended | |||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2020USD ($) | ||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | ₨ 16,757 | |||||
Other Intangible Assets [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Interest costs capitalised | ₨ 674 | ₨ 655 | ||||
Gains on disposals of non-current assets | ₨ 682 | |||||
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 | 2.04% | 2.04% | 1.98% | |||
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 | 4.60% | 4.60% | 4.12% | |||
Other Intangible Assets [Member] | Global Generics [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | ₨ 82 | ₨ 20 | ||||
Other Intangible Assets [Member] | Global Generics and Properietary Products [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | ₨ 5,620 | |||||
Other Intangible Assets [Member] | Global Generics [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | 34 | ₨ 33 | ||||
gNuvaring [Member] | Global Generics [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | 11,137 | $ 156.5 | ||||
Carrying value of the asset | ₨ 3,269 | $ 43.2 | ||||
Discount rate used in current estimate of value in use | 8.00% | 8.00% | ||||
Tobramycin Inhalation Solution Ramelteon And Imiquimod Cream Product [Member] | Global Generics [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment loss | ₨ 4,385 | 61.4 | ||||
Intangible assets under development [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other intangible asstes acquired during the year | [1] | 950 | ₨ 1,171 | |||
Intangible assets under development [member] | Abbreviated New Drug Applications [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other intangible asstes acquired during the year | ₨ 277 | $ 4 | ||||
[1] | During the year ended March 31, 2020, the Company acquired a portfolio of approved, non-marketed Abbreviated New Drug Applications (“ANDAs”) in the United States from Teva for a total consideration of Rs.277 (U.S.$4). The Company recognized these ANDAs acquired as product related intangibles. |
Investment in equity accounte_3
Investment in equity accounted investees (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Investments accounted for using equity method [Line Items] | |||||
Investments accounted for using equity method | ₨ 2,763 | $ 37 | ₨ 2,529 | ||
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | |||||
Investments accounted for using equity method [Line Items] | |||||
Investments accounted for using equity method | [1] | 2,714 | 2,464 | ₨ 2,029 | |
DRES energy private limited [Member] | |||||
Investments accounted for using equity method [Line Items] | |||||
Investments accounted for using equity method | ₨ 49 | ₨ 65 | ₨ 75 | ||
[1] | Includes Rs.181 representing the goodwill on acquisition of investment. |
Investment in equity accounte_4
Investment in equity accounted investees (Details 1) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2017INR (₨) | |||||
Investments accounted for using equity method [Line Items] | ||||||||||
Total current assets | ₨ 130,370 | ₨ 114,501 | $ 1,729 | |||||||
Total non-current assets | 101,871 | 110,926 | 1,351 | |||||||
Total assets | 232,241 | 225,427 | 3,081 | |||||||
Equity | 154,988 | 140,197 | ₨ 126,460 | 2,056 | ₨ 124,044 | |||||
Total current liabilities | 72,814 | 59,700 | 966 | |||||||
Total equity and liabilities | 232,241 | 225,427 | 3,081 | |||||||
Revenues | 174,600 | $ 2,316 | [1],[2] | 153,851 | [1],[2] | 142,028 | [1],[2] | |||
Profit for the year | 19,498 | 259 | 18,795 | 9,806 | ||||||
Company's share of profits for the year | 561 | $ 7 | 438 | ₨ 344 | ||||||
Carrying value of the Company's investment | ₨ 2,763 | ₨ 2,529 | $ 37 | |||||||
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 | ₨ 6,925 | ₨ 6,195 | ₨ 4,933 | |||||||
Total non-current assets | 732 | 374 | 347 | |||||||
Total assets | 7,657 | 6,569 | 5,280 | |||||||
Equity | 4,931 | 4,448 | 3,600 | |||||||
Total current liabilities | 2,726 | 2,121 | 1,680 | |||||||
Total equity and liabilities | 7,657 | 6,569 | 5,280 | |||||||
Revenues | 7,679 | 7,436 | 5,482 | |||||||
Expenses | 6,554 | 6,558 | 4,792 | |||||||
Profit for the year | 1,125 | 878 | 690 | |||||||
Company's share of profits for the year | 577 | 449 | 354 | |||||||
Carrying value of the Company's investment | [3] | 2,714 | 2,464 | 2,029 | ||||||
Translation adjustment arising out of translation of foreign currency balances | ₨ 306 | ₨ 241 | ₨ 255 | |||||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | |||||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). | |||||||||
[3] | Includes Rs.181 representing the goodwill on acquisition of investment. |
Investment in equity accounte_5
Investment in equity accounted investees (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2020USD ($) | |
Investments accounted for using equity method [Line Items] | |||||
Carrying value of the Company's investment | ₨ 2,763 | ₨ 2,529 | $ 37 | ||
Company's share of loss for the year | 561 | $ 7 | 438 | ₨ 344 | |
DRES energy private limited [Member] | |||||
Investments accounted for using equity method [Line Items] | |||||
Carrying value of the Company's investment | 49 | 65 | 75 | ||
Company's share of loss for the year | ₨ (16) | ₨ (11) | ₨ (10) |
Investment in equity accounte_6
Investment in equity accounted investees (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Investments accounted for using equity method [Line Items] | ||||
Dividends received from investments accounted for using equity method | ₨ 392 | $ 5 | ₨ 0 | ₨ 0 |
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | ||||
Investments accounted for using equity method [Line Items] | ||||
Proportion of ownership interest in joint venture | 51.30% | 51.30% | 51.30% | 51.30% |
Goodwill arising on investment in an joint venture | ₨ 181 | ₨ 181 | ₨ 181 |
Trade and other payables (Detai
Trade and other payables (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) |
Trade and other current payables [abstract] | |||
Trade payables | ₨ 10,745 | ₨ 10,296 | |
Due to creditors for expenses | 4,503 | 3,375 | |
Due to capital creditors | 1,411 | 882 | |
Trade and other current payables | ₨ 16,659 | $ 221 | ₨ 14,553 |
Loans and borrowings (Details)
Loans and borrowings (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) |
Disclosure of Short Term Borrowings [Line Items] | |||
Current borrowings | ₨ 16,441 | $ 218 | ₨ 12,125 |
Pre-shipment credit [Member] | |||
Disclosure of Short Term Borrowings [Line Items] | |||
Current borrowings | 10,432 | 5,463 | |
Other working capital borrowings [Member] | |||
Disclosure of Short Term Borrowings [Line Items] | |||
Current borrowings | ₨ 6,009 | ₨ 6,662 |
Loans and borrowings (Details 1
Loans and borrowings (Details 1) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Pre-Shipment Credit Borrowings USD [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | U.S | |
Borrowings, interest rate basis | [2] | 1 Month LIBOR + 12.5  to 16 bps | 1 Month LIBOR + 25 to 40 bps |
Pre-Shipment Credit borrowings INR [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | INR | |
Borrowings, interest rate basis | [2] | 1 Month T-bill + 60 bps | |
Other Foreign Currency Borrowings USD [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | U.S | |
Other Working Capital Borrowings UAH [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | UAH | |
Borrowings, interest rate basis | [2] | 21.50% | |
Other Working Capital Borrowings USD [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | U.S | U.S |
Borrowings, interest rate basis | [2] | 1Month/3 Months LIBOR + 55  to 78 bps | 1 Month LIBOR + 65 to 95 bps |
Other Working Capital Borrowings RUB [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | RUB | RUB |
Borrowings, interest rate basis | [2] | 7.05% | 8.22% |
Other Working Capital Borrowings ZAR [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | ZAR | ZAR |
Borrowings, interest rate basis | [2] | 1Month JIBAR+120 bps | 1Month JIBAR+120 bps |
Other Working Capital Borrowings MXN [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | MXN | MXN |
Borrowings, interest rate basis | [2] | TIIE + 1.25% | TIIE + 1.25% |
Other Working Capital Borrowings INR [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | INR | |
Borrowings, interest rate basis | [2] | 7.75% | |
Other Working Capital Borrowings BRL [Member] | |||
Disclosure Interest Rate of Short Term Borrowings [Line Items] | |||
Borrowings, original currency | [1] | BRL | |
Borrowings, interest rate basis | [2] | 7.25% | |
[1] | “INR” means Indian rupees, “U.S.$” means United States Dollars, “RUB” means Russian roubles, “MXN” means Mexican pesos, “UAH” means Ukrainian hryvnia, “BRL” means Brazilian reals and “ZAR” means South African rand. | ||
[2] | “LIBOR” means the London Inter-bank Offered Rate, “TIIE” means the Equilibrium Inter-banking Interest Rate (Tasa de Interés Interbancaria de Equilibrio), “JIBAR” means the Johannesburg Interbank Average Rate and “T-bill” means India Treasury Bill. |
Loans and borrowings (Details 2
Loans and borrowings (Details 2) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |
Current portion | ||||
Current portion of non-current borrowings | ₨ 4,266 | $ 57 | ₨ 4,256 | |
Non-current portion | ||||
Non-current portion of non-current borrowings | 1,304 | $ 17 | 22,000 | |
Parent Company [Member] | ||||
Current portion | ||||
Current portion of non-current borrowings | 3,783 | 1,729 | ||
Non-current portion | ||||
Non-current portion of non-current borrowings | 0 | 3,454 | ||
Swiss subsidiary [Member] | ||||
Current portion | ||||
Current portion of non-current borrowings | [1] | 0 | 1,383 | |
Non-current portion | ||||
Non-current portion of non-current borrowings | [1] | 0 | 15,819 | |
German subsidiary [Member] | ||||
Current portion | ||||
Current portion of non-current borrowings | [2] | 0 | 1,087 | |
Non-current portion | ||||
Non-current portion of non-current borrowings | [2] | 0 | 2,175 | |
Obligations Under Leases [Member] | ||||
Current portion | ||||
Current lease liabilities | 483 | 57 | ||
Non-current portion | ||||
Non-current lease liabilities | ₨ 1,304 | ₨ 552 | ||
[1] | Swiss subsidiary refers to Dr. Reddy’s Laboratories, SA | |||
[2] | German subsidiary refers to Reddy Holding GmbH |
Loans and borrowings (Details 3
Loans and borrowings (Details 3) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
EUR | |||
Disclosure of Interest Rate Profile of Long Term Borrowings [Line Items] | |||
Borrowings, interest rate basis | [1] | 0.81% | |
Borrowings, original currency | [2] | EUR | |
USD | |||
Disclosure of Interest Rate Profile of Long Term Borrowings [Line Items] | |||
Borrowings, interest rate basis | [1] | 1 Month LIBOR + 82.7 bps | 1 Month LIBOR + 70 to 105 bps |
Borrowings, original currency | [2] | U.S | U.S |
[1] | “LIBOR” means the London Inter-bank Offered Rate. | ||
[2] | “U.S.$” means United States Dollars and “EUR” means Euros. |
Loans and borrowings (Details 4
Loans and borrowings (Details 4) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | |||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | ₨ 3,783 | [1] | ₨ 25,738 | [2] | |
Obligations under leases | 1,787 | 609 | |||
Borrowings | 5,570 | [1] | 26,347 | [2] | |
2020 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | [2] | 4,199 | |||
Obligations under leases | [2] | 57 | |||
Borrowings | [2] | 4,256 | |||
2021 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | 3,783 | [1] | 6,621 | [2] | |
Obligations under leases | 483 | [1] | 65 | [2] | |
Borrowings | 4,226 | [1] | 6,686 | [2] | |
2022 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | 0 | [1] | 1,087 | [2] | |
Obligations under leases | 359 | [1] | 66 | [2] | |
Borrowings | 359 | [1] | 1,153 | [2] | |
2023 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | 0 | [1] | 13,831 | [2] | |
Obligations under leases | 267 | [1] | 70 | [2] | |
Borrowings | 267 | [1] | 13,901 | [2] | |
2024 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | 0 | [1] | 0 | [2] | |
Obligations under leases | 249 | [1] | 63 | [2] | |
Borrowings | 249 | [1] | 63 | [2] | |
2025 | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | [1] | 0 | |||
Obligations under leases | [1] | 286 | |||
Borrowings | [1] | 286 | |||
Thereafter | |||||
Disclosure of Contractual maturities of Long Term Borrowings [Line Items] | |||||
Foreign currency loans | 0 | [1] | 0 | [2] | |
Obligations under leases | 143 | [1] | 288 | [2] | |
Borrowings | ₨ 143 | [1] | ₨ 288 | [2] | |
[1] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.0. | ||||
[2] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.91. |
Loans and borrowings (Details 5
Loans and borrowings (Details 5) ₨ in Millions | Mar. 31, 2019INR (₨) |
Disclosure of Future minimum lease payments under finance leases [Line Items] | |
Present value of minimum lease payments | ₨ 609 |
Interest | 214 |
Future minimum lease payments | 823 |
Not later than one year | |
Disclosure of Future minimum lease payments under finance leases [Line Items] | |
Present value of minimum lease payments | 60 |
Interest | 49 |
Future minimum lease payments | 109 |
Between one and five years | |
Disclosure of Future minimum lease payments under finance leases [Line Items] | |
Present value of minimum lease payments | 264 |
Interest | 127 |
Future minimum lease payments | 391 |
More than five years | |
Disclosure of Future minimum lease payments under finance leases [Line Items] | |
Present value of minimum lease payments | 285 |
Interest | 38 |
Future minimum lease payments | ₨ 323 |
Loans and borrowings (Details 6
Loans and borrowings (Details 6) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Opening balance | ₨ 38,381 | ₨ 50,618 | |
Recognition of right-of-use liability on initial application of IFRS 16 | 1,335 | ||
Recognition of right-of-use liability during the year | 238 | ||
Payment of principal portion of lease liabilities | (482) | (56) | |
Borrowings made during the year | 29,831 | 42,907 | |
Borrowings repaid during the year | (48,514) | (58,033) | |
Currency translation adjustments | 1,132 | 2,913 | |
Others | 90 | 32 | |
Closing balance | 22,011 | 38,381 | |
Long-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Opening balance | [1] | 26,256 | 25,152 |
Recognition of right-of-use liability on initial application of IFRS 16 | [1] | 1,335 | |
Recognition of right-of-use liability during the year | [1] | 238 | |
Payment of principal portion of lease liabilities | [1] | (482) | (56) |
Borrowings made during the year | [1] | 0 | 0 |
Borrowings repaid during the year | [1] | (22,918) | 0 |
Currency translation adjustments | [1] | 1,051 | 1,128 |
Others | [1] | 90 | 32 |
Closing balance | [1] | 5,570 | 26,256 |
Short-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Opening balance | 12,125 | 25,466 | |
Recognition of right-of-use liability on initial application of IFRS 16 | 0 | ||
Recognition of right-of-use liability during the year | 0 | ||
Payment of principal portion of lease liabilities | 0 | 0 | |
Borrowings made during the year | 29,831 | 42,907 | |
Borrowings repaid during the year | (25,596) | (58,033) | |
Currency translation adjustments | 81 | 1,785 | |
Others | 0 | 0 | |
Closing balance | ₨ 16,441 | ₨ 12,125 | |
[1] | Includes current portion. |
Loans and borrowings (Details T
Loans and borrowings (Details Textual) € in Millions, ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Mar. 31, 2019INR (₨) | |
Disclosure of detailed information about borrowings [line items] | ||||
Transaction Costs of Long Term Debt Obligations | ₨ 0 | ₨ 91 | ||
Undrawn borrowing facilities | 39,374 | 47,134 | ||
Repayments of borrowings | ₨ 48,514 | ₨ 58,033 | ||
Swiss subsidiary [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Repayments of borrowings | $ | $ 250 | |||
German subsidiary [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Repayments of borrowings | € | € 42 |
Provisions (Details)
Provisions (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | ||
Disclosure of other provisions [line items] | ||||
Beginning Balance | ₨ 4,218 | |||
Provision made during the year, net of reversals | 2,638 | |||
Provision used during the year | (3,224) | |||
Effect of changes in foreign exchange rates | 222 | |||
Ending Balance | 3,854 | ₨ 4,218 | ||
Current | 3,800 | $ 50 | 4,166 | |
Non-current | 54 | $ 1 | 52 | |
Refund Liability [member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | [1] | 3,581 | ||
Provision made during the year, net of reversals | [1] | 2,675 | ||
Provision used during the year | [1] | (3,224) | ||
Effect of changes in foreign exchange rates | [1] | 220 | ||
Ending Balance | [1] | 3,252 | 3,581 | |
Current | [1] | 3,252 | ||
Non-current | [1] | 0 | ||
Environmental liability provisions [Member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | [2] | 52 | ||
Provision made during the year, net of reversals | [2] | 0 | ||
Provision used during the year | [2] | 0 | ||
Effect of changes in foreign exchange rates | [2] | 2 | ||
Ending Balance | [2] | 54 | 52 | |
Current | [2] | 0 | ||
Non-current | [2] | 54 | ||
Legal and others provision [Member] | ||||
Disclosure of other provisions [line items] | ||||
Beginning Balance | [3] | 585 | ||
Provision made during the year, net of reversals | [3] | (37) | ||
Provision used during the year | [3] | 0 | ||
Effect of changes in foreign exchange rates | [3] | 0 | ||
Ending Balance | [3] | 548 | ₨ 585 | |
Current | [3] | 548 | ||
Non-current | [3] | ₨ 0 | ||
[1] | Refund liability is accounted for by recording a provision based on the Company’s estimate of expected sales returns. See Note 3(l) of these consolidated financial statements for the Company’s accounting policy on refund liability. | |||
[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.54). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the consolidated 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 32 (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, 2020 | Mar. 31, 2019 | |
Disclosure of other provisions [line items] | |||
Carrying value | ₨ 3,854 | ₨ 4,218 | |
Other environment related provision [member] | |||
Disclosure of other provisions [line items] | |||
Initial liability assumed | 39 | ||
Carrying value | [1] | ₨ 54 | ₨ 52 |
[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.54). The seller is required to indemnify the Company for this liability. Accordingly, a corresponding asset has also been recorded in the consolidated statements of financial position. |
Other liabilities (Details)
Other liabilities (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |
Current | ||||
Accrued expenses | ₨ 18,025 | ₨ 15,178 | ||
Employee benefits payable | 4,944 | 4,542 | ||
Statutory dues payable | 980 | 722 | ||
Deferred revenue | [1] | 1,242 | 590 | |
Advance from customers | 668 | 761 | ||
Others | 3,523 | 2,558 | ||
Current liabilities | 29,382 | $ 390 | 24,351 | |
Non-current | ||||
Deferred revenue | [1] | 1,956 | 2,002 | |
Others | 850 | 866 | ||
Non-current liabilities | ₨ 2,806 | $ 37 | ₨ 2,868 | |
[1] | Refer Note 21 for details of deferred revenue. |
Share Capital (Details)
Share Capital (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2020INR (₨)shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019INR (₨)shares | Mar. 31, 2018INR (₨)shares | Mar. 31, 2020USD ($)shares | ||||
Disclosure of classes of share capital [line items] | ||||||||
Authorized share capital | 240,000,000 | 240,000,000 | 240,000,000 | |||||
Amount of shares authorised | ₨ | ₨ 1,200 | ₨ 1,200 | ||||||
Fully Paid Up Share Capital | ||||||||
Opening number of equity shares/share capital | ₨ | 830 | 830 | ||||||
Increase (decrease) through exercise of options, equity | ₨ | 11 | 0 | ₨ 1 | |||||
Closing number of equity shares/share capital | ₨ 831 | $ 11 | ₨ 830 | ₨ 830 | ||||
Opening number of equity shares/share capital | 166,065,948 | 166,065,948 | 165,910,907 | |||||
Add: Equity shares issued pursuant to employee stock option plan | 106,134 | 106,134 | 155,041 | |||||
Closing number of equity shares/share capital | 166,172,082 | 166,172,082 | 166,065,948 | 165,910,907 | ||||
Number Of Treasury Shares Issued | [1] | 395,950 | 395,950 | 217,976 | ||||
Treasury shares | ₨ 1,006 | [1] | ₨ 535 | [1] | $ 13 | |||
[1] | Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme, 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance to eligible employees upon exercise of stock options thereunder. During the year ended March 31, 2020, an aggregate of 1,150 equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2018. All of the options exercised had an exercise price of Rs.2,607 per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the “share based payment reserve” was transferred to “share premium” in the consolidated statements of changes in equity.In addition, any difference between the carrying amount of treasury shares and the consideration received was recognized in the “share premium”. As at March 31, 2020 and 2019, the ESOS Trust had outstanding 395,950 and 217,976 shares, respectively, which it purchased from the secondary market for an aggregate consideration of Rs.1,006 and Rs.535, respectively. Refer to Note 28 of these financial statements for further details on the Dr. Reddy’s Employees Stock Option Scheme, 2018. |
Share Capital (Details 1)
Share Capital (Details 1) - INR (₨) ₨ / shares in Units, ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
Dividend per share (in absolute Rs.) | ₨ 20 | ₨ 20 | ₨ 20 |
Dividend distribution tax on the dividend paid | ₨ 602 | ₨ 682 | ₨ 675 |
Dividend paid during the year | ₨ 3,916 | ₨ 4,002 | ₨ 3,992 |
Share Capital (Details Textual)
Share Capital (Details Textual) ₨ / shares in Units, ₨ in Millions, $ in Millions | May 20, 2020INR (₨)₨ / shares | Mar. 31, 2020INR (₨)shares₨ / shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019INR (₨)₨ / sharesshares | Mar. 31, 2018₨ / shares | ||
Details of Equity [Line Items] | |||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | ₨ 25 | ||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | ₨ | ₨ 4,154 | ||||||
Par value per share | ₨ 5 | ₨ 5 | ₨ 5 | ||||
Treasury shares | ₨ 1,006 | [1] | $ 13 | ₨ 535 | [1] | ||
Rights, preferences and restrictions attaching to class of share capital | The Company has only one class of equity shares having a par value of Rs.5 per share. 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. | ||||||
Dr Reddys Employees Stock Option Scheme 2018 [Member] | |||||||
Details of Equity [Line Items] | |||||||
Number of share options exercised | shares | 1,150 | ||||||
Number of Treasury shares outstanding | shares | 395,950 | 395,950 | 217,976 | ||||
Treasury shares | ₨ | ₨ 1,006 | ₨ 535 | |||||
Weighted average exercise price of share options exercised in share-based payment arrangement | ₨ 2,607 | ||||||
[1] | Pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on July 27, 2018, the Dr. Reddy’s Employees ESOS Trust (the “ESOS Trust”) was formed to support the Dr. Reddy’s Employees Stock Option Scheme, 2018 by acquiring, from the Company or through secondary market acquisitions, equity shares which are used for issuance to eligible employees upon exercise of stock options thereunder. During the year ended March 31, 2020, an aggregate of 1,150 equity shares were issued as a result of the exercise of vested options granted to employees pursuant to the Dr. Reddy’s Employees Stock Option Scheme, 2018. All of the options exercised had an exercise price of Rs.2,607 per share. Upon the exercise of such options, the amount of compensation cost (computed using the grant date fair value) previously recognized in the “share based payment reserve” was transferred to “share premium” in the consolidated statements of changes in equity.In addition, any difference between the carrying amount of treasury shares and the consideration received was recognized in the “share premium”. As at March 31, 2020 and 2019, the ESOS Trust had outstanding 395,950 and 217,976 shares, respectively, which it purchased from the secondary market for an aggregate consideration of Rs.1,006 and Rs.535, respectively. Refer to Note 28 of these financial statements for further details on the Dr. Reddy’s Employees Stock Option Scheme, 2018. |
Earnings per share (Details)
Earnings per share (Details) | 12 Months Ended | |||
Mar. 31, 2020₨ / sharesshares | Mar. 31, 2020$ / sharesshares | Mar. 31, 2019₨ / sharesshares | Mar. 31, 2018₨ / sharesshares | |
Basic earnings per share [abstract] | ||||
Number of equity shares at the beginning of the year (excluding treasury shares) | 165,847,972 | 165,847,972 | 165,910,907 | 165,741,713 |
Effect of treasury shares held | (154,020) | (154,020) | (100,672) | 0 |
Effect of equity shares issued on exercise of stock options | 64,432 | 64,432 | 103,801 | 103,695 |
Weighted average number of equity shares – Basic | 165,758,384 | 165,758,384 | 165,914,036 | 165,845,408 |
Earnings per share of par value Rs.5 – Basic | (per share) | ₨ 117.63 | $ 1.56 | ₨ 113.28 | ₨ 59.13 |
Earnings per share (Details 1)
Earnings per share (Details 1) | 12 Months Ended | ||||
Mar. 31, 2020₨ / sharesshares | Mar. 31, 2020$ / sharesshares | Mar. 31, 2019₨ / sharesshares | Mar. 31, 2018₨ / sharesshares | ||
Diluted earnings per share [abstract] | |||||
Weighted average number of equity shares – Basic | 165,758,384 | 165,758,384 | 165,914,036 | 165,845,408 | |
Dilutive effect of stock options outstanding | [1] | 323,601 | 323,601 | 278,718 | 340,144 |
Weighted average number of equity shares – Diluted | 166,081,985 | 166,081,985 | 166,192,754 | 166,185,552 | |
Earnings per share of par value Rs.5 - Diluted | (per share) | ₨ 117.40 | $ 1.56 | ₨ 113.09 | ₨ 59 | |
[1] | As at March 31, 2020 and 2019, 475,575 and 272,700 options, respectively, were excluded from the diluted weighted average number of equity shares calculation because their effect would have been anti-dilutive. The average market value of the Company’s shares for the purpose of calculating the dilutive effect of stock options was based on quoted market prices for the year during which the options were outstanding. |
Earnings per share (Details Tex
Earnings per share (Details Textual) - INR (₨) ₨ / shares in Units, ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | |||
Profit (loss), attributable to ordinary equity holders of parent entity | ₨ 19,498 | ₨ 18,795 | ₨ 9,806 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amounts | 475,575 | 272,700 | |
Par value per share | ₨ 5 | ₨ 5 | ₨ 5 |
Revenue from contracts with c_3
Revenue from contracts with customers and trade receivables (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [3],[4] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||||
Revenue [abstract] | ||||||||
Sales | ₨ 163,574 | ₨ 148,706 | ₨ 138,022 | |||||
Service income | 2,409 | 2,129 | 1,534 | |||||
License fees | [1],[2] | 8,617 | 3,016 | 2,472 | ||||
Revenue | 174,600 | $ 2,316 | 153,851 | [3],[4] | 142,028 | [3],[4] | ||
Excise duty included in revenues | ₨ 0 | ₨ 0 | ₨ 173 | |||||
[1] | During the year ended March 31, 2020, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC for the sale of its U.S. and select territory rights for ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRA® (sumatriptan nasal spray) 10 mg (formerly referred to as “DFN-02”), which formed part of its Proprietary Products segment. License fees includes an amount of Rs.7,486 (U.S.$108.7) towards the aforesaid sale transaction. Refer to Note 37 of these consolidated financial statements for further details. | |||||||
[2] | License fees for the years ended March 31, 2019 and March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 36 of these consolidated financial statements for further details. | |||||||
[3] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | |||||||
[4] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Revenue from contracts with c_4
Revenue from contracts with customers and trade receivables (Details 1) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Statement [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Global Generic | |||||||
Statement [Line Items] | |||||||
Revenue | 138,123 | 122,903 | 114,014 | ||||
PSAI | |||||||
Statement [Line Items] | |||||||
Revenue | 25,747 | 24,140 | 21,992 | ||||
Proprietary products | |||||||
Statement [Line Items] | |||||||
Revenue | 7,949 | 4,750 | 4,245 | ||||
Others | |||||||
Statement [Line Items] | |||||||
Revenue | ₨ 2,781 | ₨ 2,058 | ₨ 1,777 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Revenue from contracts with c_5
Revenue from contracts with customers and trade receivables (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Statement [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Global Generic [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 138,123 | 122,903 | 114,014 | ||||
Global Generic [Member] | Nervous System | |||||||
Statement [Line Items] | |||||||
Revenue | 26,825 | 19,726 | 17,347 | ||||
Global Generic [Member] | Gastrointestinal | |||||||
Statement [Line Items] | |||||||
Revenue | 19,394 | 19,250 | 19,153 | ||||
Global Generic [Member] | Oncology [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 18,245 | 18,357 | 16,999 | ||||
Global Generic [Member] | Cardiovascular | |||||||
Statement [Line Items] | |||||||
Revenue | 14,729 | 15,106 | 16,501 | ||||
Global Generic [Member] | Pain Management | |||||||
Statement [Line Items] | |||||||
Revenue | 13,808 | 13,806 | 12,898 | ||||
Global Generic [Member] | Respiratory | |||||||
Statement [Line Items] | |||||||
Revenue | 10,433 | 8,130 | 6,205 | ||||
Global Generic [Member] | Anti-Infective | |||||||
Statement [Line Items] | |||||||
Revenue | 9,402 | 7,073 | 6,557 | ||||
Global Generic [Member] | Others | |||||||
Statement [Line Items] | |||||||
Revenue | ₨ 25,287 | ₨ 21,455 | ₨ 18,354 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Revenue from contracts with c_6
Revenue from contracts with customers and trade receivables (Details 3) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Statement [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 25,747 | 24,140 | 21,992 | ||||
Cardiovascular | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 8,567 | 7,019 | 6,191 | ||||
Pain Management | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 5,073 | 3,364 | 3,228 | ||||
Nervous System | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 2,797 | 2,741 | 2,331 | ||||
Oncology [Member] | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 1,798 | 2,212 | 1,650 | ||||
Dermatology | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 1,370 | 1,622 | 1,606 | ||||
Anti-Infective | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | 1,097 | 1,247 | 1,968 | ||||
Others | Pharmaceutical Services and Active Ingredient [Member] | |||||||
Statement [Line Items] | |||||||
Revenue | ₨ 5,045 | ₨ 5,935 | ₨ 5,018 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Revenue from contracts with c_7
Revenue from contracts with customers and trade receivables (Details 4) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |||
Statement [Line Items] | |||||||
Revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |
India | |||||||
Statement [Line Items] | |||||||
Revenue | 32,089 | 28,804 | 25,209 | ||||
United States | |||||||
Statement [Line Items] | |||||||
Revenue | 76,028 | 69,299 | 68,124 | ||||
Russia | |||||||
Statement [Line Items] | |||||||
Revenue | 16,900 | 15,299 | 12,610 | ||||
Others | |||||||
Statement [Line Items] | |||||||
Revenue | ₨ 49,583 | ₨ 40,449 | ₨ 36,085 | ||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | ||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Revenue from contracts with c_8
Revenue from contracts with customers and trade receivables (Details 5) ₨ in Millions, $ in Millions | 12 Months Ended | ||||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |||||
Statement [Line Items] | |||||||||
Beginning Balance | ₨ | ₨ 4,218 | ||||||||
Credits and payments | ₨ | (3,224) | ||||||||
Ending Balance | ₨ | 3,854 | ₨ 4,218 | |||||||
Chargebacks [Member] | |||||||||
Statement [Line Items] | |||||||||
Beginning Balance | $ 128 | $ 170 | $ 191 | ||||||
Current provisions relating to sales during the year | 1,468 | [1] | 1,415 | [2] | 1,750 | [3] | |||
Provisions and adjustments relating to sales in prior years | [4] | ||||||||
Credits and payments | [5] | (1,440) | (1,457) | (1,771) | |||||
Ending Balance | 156 | 128 | 170 | ||||||
Rebates [Member] | |||||||||
Statement [Line Items] | |||||||||
Beginning Balance | 92 | 161 | 186 | ||||||
Current provisions relating to sales during the year | 319 | [1] | 461 | [2] | 630 | [3] | |||
Provisions and adjustments relating to sales in prior years | 0 | 0 | 0 | ||||||
Credits and payments | [5] | (331) | (530) | (655) | |||||
Ending Balance | 80 | 92 | 161 | ||||||
Medicaid [Member] | |||||||||
Statement [Line Items] | |||||||||
Beginning Balance | 11 | 12 | 13 | ||||||
Current provisions relating to sales during the year | 20 | [1] | 18 | [2] | 18 | [3] | |||
Provisions and adjustments relating to sales in prior years | 0 | 0 | 0 | ||||||
Credits and payments | [5] | (20) | (19) | (19) | |||||
Ending Balance | 11 | 11 | 12 | ||||||
Refund Liability [Member] | |||||||||
Statement [Line Items] | |||||||||
Beginning Balance | 30 | 28 | 36 | ||||||
Current provisions relating to sales during the year | 21 | [1] | 29 | [2] | 22 | [3] | |||
Provisions and adjustments relating to sales in prior years | 0 | 0 | 0 | ||||||
Credits and payments | ₨ (3,224) | (27) | [5] | ₨ (3,324) | (27) | [5] | (30) | [5] | |
Ending Balance | $ 24 | $ 30 | $ 28 | ||||||
[1] | Chargebacks provisions for the year ended March 31, 2020 were higher compared to the year ended March 31, 2019, primarily as a result of higher sales volumes, which were partially offset due to a lower pricing rates per unit for chargebacks. Such lower pricing was primarily on account of a reduction in the invoice price to wholesalers for certain of the Company’s products. The chargebacks payments for the year ended March 31, 2020 were lower compared to the year ended March 31, 2019, primarily as a result of higher pending chargebacks claims at March 31, 2020 as compared to March 31, 2019. The rebates provisions and the payments for the year ended March 31, 2020 were each lower as compared to the year ended March 31, 2019, primarily as a result of lower pricing rates per unit for rebates, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, which were partially offset by higher sales volumes during the year ended March 31, 2020 as compared to the year ended March 31, 2019. | ||||||||
[2] | Chargebacks and rebates provisions for the year ended March 31, 2019 and payments for the year ended March 31, 2019 were each lower as compared to the year ended March 31, 2018, primarily as a result of lower pricing rates per unit for chargebacks, and due to a reduction in the invoice price to wholesalers for certain of the Company’s products. | ||||||||
[3] | Chargebacks and rebates provisions for the year ended March 31, 2018 and payments for the year ended March 31, 2018 were each lower as compared to the year ended March 31, 2017, primarily as a result of lower pricing rates per unit for chargebacks, due to a reduction in the invoice price to wholesalers for certain of the Company’s products, and due to certain product mix changes. | ||||||||
[4] | Currently, the Company does not separately track provisions and adjustments, in each case to the extent relating to prior years for chargebacks. However, the adjustments are expected to be non-material. The volumes used to calculate the closing balance of chargebacks represent approximately 1.3 months equivalent of sales, which corresponds to the pending chargeback claims yet to be processed. | ||||||||
[5] | Currently, the Company does not separately track the credits and payments, in each case to the extent relating to prior years for chargebacks, rebates, medicaid payments or refund liability. |
Revenue from contracts with c_9
Revenue from contracts with customers and trade receivables (Details 6) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1] | Mar. 31, 2019INR (₨) | Mar. 31, 2019USD ($) | [1] | Mar. 31, 2018USD ($) | [1] | |
Statement [Line Items] | ||||||||
Provision made during the year, net of reversals | ₨ 2,638 | |||||||
Provision used during the year | (3,224) | |||||||
Effect of changes in foreign exchange rates | 222 | |||||||
Refund Liability [Member] | ||||||||
Statement [Line Items] | ||||||||
Balance at the beginning of the year | 3,581 | ₨ 3,210 | ||||||
Provision made during the year, net of reversals | 2,675 | 3,592 | ||||||
Provision used during the year | (3,224) | $ (27) | (3,324) | $ (27) | $ (30) | |||
Effect of changes in foreign exchange rates | 220 | 103 | ||||||
Balance at the closing of the year | 3,252 | 3,581 | ||||||
Current | 3,252 | 3,581 | ||||||
Non-current | ₨ 0 | ₨ 0 | ||||||
[1] | Currently, the Company does not separately track the credits and payments, in each case to the extent relating to prior years for chargebacks, rebates, medicaid payments or refund liability. |
Revenue from contracts with _10
Revenue from contracts with customers and trade receivables (Details 7) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Details of Deferred revenue | |||
Balance as at April 1 | ₨ 2,592 | ₨ 3,319 | |
Revenue recognized during the year | (1,250) | (815) | |
Milestone payment received during the year | 1,856 | 88 | |
Balance as at March 31 | 3,198 | 2,592 | |
Current | [1] | 1,242 | 590 |
Non-current | [1] | ₨ 1,956 | ₨ 2,002 |
[1] | Refer Note 21 for details of deferred revenue. |
Revenue from contracts with _11
Revenue from contracts with customers and trade receivables (Details 8) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Statement [Line Items] | ||
Advance from customers | ₨ 668 | ₨ 761 |
Contract liabilities | ₨ 668 | ₨ 761 |
Revenue from contracts with _12
Revenue from contracts with customers and trade receivables (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |||||
Statement [Line Items] | ||||||||||
Contract assets | ₨ 23 | ₨ 16 | ||||||||
Revenue | 174,600 | $ 2,316 | [1],[2] | 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | |||
Licence fee | [3],[4] | 8,617 | 3,016 | 2,472 | ||||||
Global Generics- North America Operations [Member] | ||||||||||
Statement [Line Items] | ||||||||||
Refunds provision | $ | $ 24 | $ 30 | ||||||||
Proprietary products | ||||||||||
Statement [Line Items] | ||||||||||
Revenue | 7,949 | 4,750 | 4,245 | |||||||
Proprietary products | UpsherSmith Laboratories LLC [Member] | ||||||||||
Statement [Line Items] | ||||||||||
Licence fee | 7,486 | $ 108.7 | ||||||||
Major Customer 1 [Member] | ||||||||||
Statement [Line Items] | ||||||||||
Revenue | ₨ 14,164 | ₨ 10,639 | ₨ 13,486 | |||||||
Percentage of entity's revenue | 8.00% | 8.00% | 7.00% | 9.00% | ||||||
Major Customer 2 [Member] | ||||||||||
Statement [Line Items] | ||||||||||
Revenue | ₨ 9,267 | ₨ 10,024 | ₨ 10,755 | |||||||
Percentage of entity's revenue | 5.00% | 5.00% | 7.00% | 8.00% | ||||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | |||||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). | |||||||||
[3] | During the year ended March 31, 2020, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC for the sale of its U.S. and select territory rights for ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRA® (sumatriptan nasal spray) 10 mg (formerly referred to as “DFN-02”), which formed part of its Proprietary Products segment. License fees includes an amount of Rs.7,486 (U.S.$108.7) towards the aforesaid sale transaction. Refer to Note 37 of these consolidated financial statements for further details. | |||||||||
[4] | License fees for the years ended March 31, 2019 and March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 36 of these consolidated financial statements for further details. |
Other income, net (Details)
Other income, net (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||
Other operating income expense [Abstract] | |||||
Loss/(gain) on sale/disposal of property, plant and equipment and other intangible assets, net | ₨ 10 | ₨ (1,264) | ₨ 55 | ||
Sale of spent chemicals | (306) | (356) | (297) | ||
Scrap sales | (167) | (179) | (169) | ||
Miscellaneous income, net | [1] | (3,827) | (156) | (377) | |
Other (income)/expense, net | ₨ (4,290) | $ (57) | ₨ (1,955) | ₨ (788) | |
[1] | Miscellaneous income, net includes Rs.3,457 (U.S.$50) received from Celgene pursuant to a settlement agreement entered into in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID® brand capsules (Lenalidomide) pending before Health Canada. |
Other income, net (Details Text
Other income, net (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||
Statement [Line Items] | |||||
Miscellaneous income, net | [1] | ₨ 3,827 | ₨ 156 | ₨ 377 | |
Litigation settlement compensation received [Member] | |||||
Statement [Line Items] | |||||
Miscellaneous income, net | ₨ 3,457 | $ 50 | |||
[1] | Miscellaneous income, net includes Rs.3,457 (U.S.$50) received from Celgene pursuant to a settlement agreement entered into in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID® brand capsules (Lenalidomide) pending before Health Canada. |
Finance income, net (Details)
Finance income, net (Details) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||
Finance expense income [Abstract] | |||||
Interest income | ₨ 888 | ₨ 770 | ₨ 540 | ||
Fair value changes and profit on sale of units of mutual funds, net | [1] | 929 | 773 | 2,270 | |
Foreign exchange gain | 639 | 737 | 87 | ||
Miscellaneous income, net | [2] | 3,827 | 156 | 377 | |
Finance income (A) | 2,461 | $ 33 | 2,280 | 2,897 | |
Interest expense | (983) | (889) | (788) | ||
Foreign exchange loss | 0 | (274) | (29) | ||
Finance expense | (983) | (13) | (1,163) | (817) | |
Finance income, net | ₨ 1,478 | $ 20 | ₨ 1,117 | ₨ 2,080 | |
[1] | For the year ended March 31, 2018, profit on sale of units of mutual funds, net primarily represents amounts reclassified from other comprehensive income to the consolidated income statement on redemption of the Company’s then “available for sale” financial instruments under the former accounting standard IAS 39, “Financial Instrument - Recognition and Measurement” . | ||||
[2] | Miscellaneous income, net includes Rs.3,457 (U.S.$50) received from Celgene pursuant to a settlement agreement entered into in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID® brand capsules (Lenalidomide) pending before Health Canada. |
Income taxes (Details)
Income taxes (Details) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Current taxes | ||||
Current taxes | ₨ (6,616) | ₨ (4,710) | ₨ (1,775) | |
Deferred taxes (expense)/benefit | ||||
Deferred taxes (expense)/benefit | 8,082 | 1,062 | (2,760) | |
Total income tax (expense)/benefit | 1,466 | $ 19 | (3,648) | (4,535) |
Country of domicile [member] | ||||
Current taxes | ||||
Current taxes | (5,157) | (3,003) | (1,412) | |
Deferred taxes (expense)/benefit | ||||
Deferred taxes (expense)/benefit | 6,580 | (244) | (379) | |
Foreign countries [member] | ||||
Current taxes | ||||
Current taxes | (1,459) | (1,707) | (363) | |
Deferred taxes (expense)/benefit | ||||
Deferred taxes (expense)/benefit | ₨ 1,502 | ₨ 1,306 | ₨ (2,381) |
Income taxes (Details 1)
Income taxes (Details 1) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current and deferred tax relating to items charged or credited directly to equity [abstract] | |||
Tax effect on changes in fair value of other investments | ₨ 0 | ₨ (411) | ₨ 1,370 |
Tax effect on foreign currency translation differences | 0 | 14 | (17) |
Tax effect on effective portion of change in fair value of cash flow hedges | 232 | (69) | 41 |
Tax effect on actuarial gains/losses on defined benefit obligations | (22) | (3) | (12) |
Current and deferred tax relating to items credited (charged) directly to equity | ₨ 210 | ₨ (469) | ₨ 1,382 |
Income taxes (Details 2)
Income taxes (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | ||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||||
Profit before income taxes | ₨ 18,032 | $ 239 | ₨ 22,443 | ₨ 14,341 | |
Enacted tax rate in India | 34.94% | 34.94% | 34.94% | 34.61% | |
Computed expected tax expense | ₨ (6,301) | ₨ (7,842) | ₨ (4,963) | ||
Effect of: | |||||
Differences between Indian and foreign tax rates | (3,385) | 734 | 712 | ||
(Unrecognized deferred tax assets)/recognition of previously unrecognized deferred tax assets, net | 6,478 | (482) | (1,673) | ||
Expenses not deductible for tax purposes | (155) | (340) | (261) | ||
Reversal of earlier years' tax provisions | 0 | 282 | 135 | ||
Income exempt from income taxes | 1,029 | 1,282 | 746 | ||
Foreign exchange differences | 64 | 470 | 41 | ||
Incremental deduction allowed for research and development costs | [1] | 1,241 | 1,134 | 1,324 | |
Tax expense on distributed/undistributed earnings of subsidiary outside India | (254) | 0 | 0 | ||
Write off of accounts receivables | 0 | 1,294 | 0 | ||
Income from sale of capital assets | 2,620 | 0 | 0 | ||
Effect of change in tax rate | 37 | (3) | (1,329) | ||
Others | 92 | (177) | 733 | ||
Income tax benefit/(expense) | ₨ 1,466 | $ 19 | ₨ (3,648) | ₨ (4,535) | |
Effective tax rate | (8.00%) | (8.00%) | 16.00% | 32.00% | |
[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 and from 150% to 100% effective April 1, 2020. |
Income taxes (Details 3)
Income taxes (Details 3) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences, net | ₨ 394 | ₨ 5,469 |
Operating tax loss carry-forward | 3,926 | 3,567 |
Unrecognized Deferred Tax Assets And Liabilities | ₨ 4,320 | ₨ 9,036 |
Income taxes (Details 4)
Income taxes (Details 4) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | ₨ 11,939 | ₨ 3,558 | ₨ 2,898 | |
Inventory [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 3,216 | 3,285 | ||
Minimum Alternate Tax [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | [1] | 6,246 | 1,630 | |
Trade and other receivables [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 369 | 316 | ||
Operating and other tax loss carry-forward [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | 3,399 | 297 | ||
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) | 1,448 | 1,315 | ||
Property, plant and equipment [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | (2,361) | (2,665) | ||
Other intangible assets [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | (477) | (662) | ||
Others [Member] | ||||
Disclosure of temporary differences in deferred tax assets and liabilities [Line Items] | ||||
Deferred tax liability (asset) | ₨ 99 | ₨ 42 | ||
[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. If in any year the company pays liability as per MAT, then it is entitled to claim credit of MAT paid over and above the normal tax liability in the subsequent years. The MAT credit is eligible to be carried forward and set-off in the future against the current tax liabilities over a period of 15 years starting from the succeeding fiscal year in which such credit was generated. |
Income taxes (Details 5)
Income taxes (Details 5) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | ₨ 3,558 | ₨ 2,898 |
Recognized in income statement | 8,171 | 1,132 |
Recognized in equity | 210 | (472) |
Balance, at the end | 11,939 | 3,558 |
Inventory [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 3,285 | 1,790 |
Recognized in income statement | (69) | 1,495 |
Recognized in equity | 0 | 0 |
Balance, at the end | 3,216 | 3,285 |
Minimum Alternate Tax [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 1,630 | 1,630 |
Recognized in income statement | 4,616 | 0 |
Balance, at the end | 6,246 | 1,630 |
Trade and other receivables [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 316 | 278 |
Recognized in income statement | 53 | 38 |
Balance, at the end | 369 | 316 |
Operating and other tax loss carry-forward [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 297 | 112 |
Recognized in income statement | 3,102 | 185 |
Balance, at the end | 3,399 | 297 |
Other current assets and other current liabilities, net [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 1,315 | 1,291 |
Recognized in income statement | 133 | 24 |
Balance, at the end | 1,448 | 1,315 |
Property, plant and equipment [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | (2,665) | (2,263) |
Recognized in income statement | 304 | (402) |
Balance, at the end | (2,361) | (2,665) |
Other intangible assets [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | (662) | (569) |
Recognized in income statement | 185 | (93) |
Balance, at the end | (477) | (662) |
Others [Member] | ||
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Balance, at the beginning | 42 | 629 |
Recognized in income statement | (153) | (115) |
Recognized in equity | 210 | (472) |
Balance, at the end | ₨ 99 | ₨ 42 |
Income taxes (Details Textual)
Income taxes (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Movement in deferred tax assets and liabilities [Line Items] | ||
Deferred income taxes not recognized on undistributed earnings of subsidiaries | ₨ 22,988 | |
Unrecognize deferred tax assets on operating tax losses | 359 | |
Exchange Differences on Foreign Currency translations Recognised In Income Statement On Deferred Tax | 89 | ₨ 70 |
Recognized deferred tax assets | ₨ 5,075 |
Nature of Expense (Details)
Nature of Expense (Details) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | ₨ 33,802 | ₨ 33,562 | ₨ 32,149 |
Depreciation expense | 8,640 | 8,362 | 8,285 |
Amortisation expense | 3,832 | 3,828 | 3,425 |
Cost of revenues [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 10,643 | 10,644 | 10,434 |
Depreciation expense | 6,366 | 6,484 | 6,331 |
Amortisation expense | 175 | 284 | 264 |
Selling, general and administrative expenses [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 18,658 | 18,291 | 17,004 |
Depreciation expense | 1,294 | 801 | 854 |
Amortisation expense | 3,547 | 3,421 | 3,029 |
Research and development expenses [Member] | |||
Income Statement Nature of Expense [Line Items] | |||
Employee benefits | 4,501 | 4,627 | 4,711 |
Depreciation expense | 980 | 1,077 | 1,100 |
Amortisation expense | ₨ 110 | ₨ 123 | ₨ 132 |
Operating leases (Details)
Operating leases (Details) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of operating lease by lessee [Line Items] | |||
Minimum Lease Payments Payable Under Noncancellable Operating Leases | ₨ 0 | ₨ 1,291 | ₨ 1,929 |
Less than one year | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum Lease Payments Payable Under Noncancellable Operating Leases | 0 | 405 | 496 |
Between one and five years | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum Lease Payments Payable Under Noncancellable Operating Leases | 0 | 797 | 1,144 |
More than five years | |||
Disclosure of operating lease by lessee [Line Items] | |||
Minimum Lease Payments Payable Under Noncancellable Operating Leases | ₨ 0 | ₨ 89 | ₨ 289 |
Operating leases (Details Textu
Operating leases (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of operating lease by lessee [Line Items] | ||
Minimum Operating Leases Payments | ₨ 905 | ₨ 787 |
Employee benefits (Details)
Employee benefits (Details) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | ₨ 276 | ₨ 265 | ₨ 252 |
Interest on defined benefit liability | (4) | (2) | 6 |
Gratuity cost recognized in income statement | ₨ 272 | ₨ 263 | ₨ 258 |
Employee benefits (Details 1)
Employee benefits (Details 1) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of funded obligations | ₨ 2,349 | ₨ 2,200 | ₨ 2,007 |
Fair value of plan assets | (2,160) | (2,174) | |
Net defined benefit liability recognized | ₨ 189 | ₨ 26 |
Employee benefits (Details 2)
Employee benefits (Details 2) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligations at the beginning of the year | ₨ 2,200 | ₨ 2,007 | |
Current service cost | 276 | 265 | ₨ 252 |
Interest on defined obligations | 152 | 145 | |
Re-measurements due to: | |||
Actuarial loss/(gain) due to change in financial assumptions | (96) | 28 | |
Actuarial loss/(gain) due to demographic assumptions | (48) | 0 | |
Actuarial loss/(gain) due to experience changes | 59 | 0 | |
Benefits paid | (194) | (245) | |
Defined benefit obligations at the end of the year | ₨ 2,349 | ₨ 2,200 | ₨ 2,007 |
Employee benefits (Details 3)
Employee benefits (Details 3) - Gratuity Benefits Of Parent [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets at the beginning of the year | ₨ 2,174 | ₨ 1,958 |
Employer contributions | 14 | 294 |
Interest on plan assets | 156 | 147 |
Re-measurements due to: | ||
Return on plan assets excluding interest on plan assets | 10 | 20 |
Benefits paid | (194) | (245) |
Plan assets at the end of the year | ₨ 2,160 | ₨ 2,174 |
Employee benefits (Details 4)
Employee benefits (Details 4) - Parent Company Gratuity plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation without effect of projected salary growth | ₨ 1,593 | ||
Add: Effect of salary growth | 756 | ||
Defined benefit obligation with projected salary growth | 2,349 | ₨ 2,200 | ₨ 2,007 |
50 basis points increase | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 2,282 | ||
50 basis points increase | Salary growth | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 2,418 | ||
50 basis points decrease | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | 2,419 | ||
50 basis points decrease | Salary growth | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Defined benefit obligation | ₨ 2,282 |
Employee benefits (Details 5)
Employee benefits (Details 5) - Employee benefit obligations [Member] - Parent Company Gratuity plan [Member] | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Discount rate | 6.65% | 7.45% | 7.75% |
Rate of compensation increase | 7.50% | ||
First year [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 8.00% | 7.00% | |
After first year [Member] | |||
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Rate of compensation increase | 9.00% | 9.00% |
Employee benefits (Details 6)
Employee benefits (Details 6) - Employee gratuity cost [Member] - Parent Company Gratuity plan [Member] | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Discount rate | 7.45% | 7.75% | 7.20% |
First years [Member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 8.00% | 7.00% | 7.00% |
Later than one year [member] | |||
Actuarial assumptions to determine gratuity cost [Line Items] | |||
Rate of compensation increase | 9.00% | 9.00% | 9.00% |
Employee benefits (Details 7)
Employee benefits (Details 7) - Parent Company Gratuity plan [Member] | Mar. 31, 2020 | Mar. 31, 2019 |
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 | Mar. 31, 2020INR (₨) |
During the year ended March 31, 2020 (estimated) | |
Disclosure Of Expected Contribution To Post Employment Benefit Plans [Abstract] | |
Expected Contribution | ₨ 189 |
March 31, 2021 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 413 |
March 31, 2022 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 301 |
March 31, 2023 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 294 |
March 31, 2024 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 273 |
March 31, 2025 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 259 |
Thereafter | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | ₨ 2,201 |
Employee benefits (Details 9)
Employee benefits (Details 9) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | ₨ 11 | ₨ 13 | ₨ 12 |
Interest on defined benefit liability | 16 | 15 | 13 |
Total cost recognized in income statement | ₨ 27 | ₨ 28 | ₨ 25 |
Employee benefits (Details 10)
Employee benefits (Details 10) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Present value of funded obligations | ₨ 234 | ₨ 223 | ₨ 243 |
Fair value of plan assets | (128) | (70) | ₨ (66) |
Net defined benefit liability recognized | ₨ 106 | ₨ 153 |
Employee benefits (Details 11)
Employee benefits (Details 11) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligations at the beginning of the year | ₨ 223 | ₨ 243 | |
Current service cost | 11 | 13 | ₨ 12 |
Interest on defined obligations | 25 | 22 | |
Re-measurements due to: | |||
Actuarial loss/(gain) due to change in financial assumptions | 50 | (47) | |
Actuarial loss/(gain) due to experience changes | (8) | 7 | |
Benefits paid | (41) | (16) | |
Foreign exchanges differences | (26) | 1 | |
Defined benefit obligations at the end of the year | ₨ 234 | ₨ 223 | ₨ 243 |
Employee benefits (Details 12)
Employee benefits (Details 12) - Industrias Quimicas Falcon de Mexico Pension plan [Member] - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets at the beginning of the year | ₨ 70 | ₨ 66 |
Employer contributions | 113 | 16 |
Interest on plan assets | 9 | 7 |
Re-measurements due to: | ||
Return on plan assets excluding interest on plan assets | (7) | (3) |
Benefits paid | (41) | (16) |
Foreign exchanges differences | (16) | 0 |
Plan assets at the end of the year | ₨ 128 | ₨ 70 |
Employee benefits (Details 13)
Employee benefits (Details 13) - Industrias Quimicas Falcon de Mexico Pension plan [Member] ₨ in Millions | Mar. 31, 2020INR (₨) |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation at present value without effect of salary growth | ₨ 158 |
Add: Effect of salary growth | 76 |
Defined benefit obligation with projected salary growth | 234 |
50 basis points increase | Discount rate [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 224 |
50 basis points increase | Salary growth [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 245 |
50 basis points decrease | Discount rate [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | 244 |
50 basis points decrease | Salary growth [Member] | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
Defined benefit obligation | ₨ 224 |
Employee benefits (Details 14)
Employee benefits (Details 14) - Employee benefit obligations [Member] - Industrias Quimicas Falcon de Mexico Pension plan [Member] | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Actuarial assumptions to determine benefit obligations [Line Items] | |||
Discount rate | 8.75% | 11.25% | 9.00% |
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, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Actuarial assumptions to determine pension cost [Line Items] | |||
Discount rate | 11.25% | 9.00% | 8.75% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Employee benefits (Details 16)
Employee benefits (Details 16) - Industrias Quimicas Falcon de Mexico Pension plan [Member] | Mar. 31, 2020 | Mar. 31, 2019 |
Funds managed by Insurers [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 | Mar. 31, 2020INR (₨) |
During the year ended March 31, 2020 (estimated) | |
Disclosure Of Expected Contribution To Post Employment Benefit Plans [Abstract] | |
Expected Contribution | ₨ 32 |
March 31, 2021 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 5 |
March 31, 2022 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 5 |
March 31, 2023 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 6 |
March 31, 2024 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 11 |
March 31, 2025 | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | 16 |
Thereafter | |
Disclosure Of Expected Future Benefit Payments [Abstract] | |
Expected Future Benefit Payments | ₨ 536 |
Employee benefits (Details Text
Employee benefits (Details Textual) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Employee benefits expense | ₨ 33,802 | ₨ 33,562 | ₨ 32,149 | |
Provident Fund Benefits [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Post-employment benefit expense, defined contribution plans | ₨ 812 | 740 | 735 | |
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 | ₨ 82 | 84 | 88 | |
US 401kretirement savings Plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Social security contributions | 177 | 213 | 212 | |
UK social securiy plan [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Social security contributions | 135 | 148 | ₨ 135 | |
Compensated Absences [Member] | ||||
Detailed Information About Employee Benefit Plans [Line Items] | ||||
Liabilities Defined Contribution Plan | ₨ 1,161 | ₨ 1,089 | ||
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 | ₨ 32 | |||
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 | ₨ 189 |
Employee stock incentive plan_2
Employee stock incentive plans (Details) - DRL 2002 Plan [Member] | 12 Months Ended |
Mar. 31, 2020shares | |
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 plan_3
Employee stock incentive plans (Details 1) - Category B Par Value Options [Member] - Exercise Prices Rs 5 [Member] | 12 Months Ended | |
Mar. 31, 2020INR (₨)Number₨ / shares | Mar. 31, 2019INR (₨)Number₨ / shares | |
DRL 2002 Plan [Member] | ||
Stock options activity under this category [Line Items] | ||
Shares arising out of options, Outstanding at the beginning of the year | Number | 270,141 | 320,544 |
Shares arising out of options, Granted during the year | Number | 49,796 | 122,372 |
Shares arising out of options, Expired/forfeited during the year | Number | (14,934) | (50,651) |
Shares arising out of options, Exercised during the year | Number | (72,166) | (122,124) |
Shares arising out of options, Outstanding at the end of the year | Number | 232,837 | 270,141 |
Shares arising out of options, Exercisable at the end of the year | Number | 40,548 | 32,836 |
Ranges of exercise prices, Outstanding at the beginning of the year | ₨ 5 | ₨ 5 |
Ranges of exercise prices, Granted during the year | 5 | 5 |
Ranges of exercise prices, Expired/forfeited during the year | 5 | 5 |
Ranges of exercise prices, Exercised during the year | 5 | 5 |
Ranges of exercise prices, Outstanding at the end of the year | 5 | 5 |
Ranges of exercise prices, Exercisable at the end of the year | ₨ 5 | ₨ 5 |
Weighted average exercise price, Outstanding at the beginning of the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Granted during the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Expired/forfeited during the year | ₨ 5 | ₨ 5 |
Weighted average exercise price, Exercised during the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Outstanding at the end of the year | ₨ / shares | 5 | 5 |
Weighted average exercise price, Exercisable at the end of the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 73 | 70 |
Weighted average remaining useful life, Granted during the year | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 69 | 73 |
Weighted average remaining useful life, Exercisable at the end of the year | 43 | 42 |
DRL 2007 Plan [Member] | ||
Stock options activity under this category [Line Items] | ||
Shares arising out of options, Outstanding at the beginning of the year | Number | 115,155 | 107,308 |
Shares arising out of options, Granted during the year | Number | 89,282 | 70,730 |
Shares arising out of options, Expired/forfeited during the year | Number | (18,886) | (29,966) |
Shares arising out of options, Exercised during the year | Number | (33,968) | (32,917) |
Shares arising out of options, Outstanding at the end of the year | Number | 151,583 | 115,155 |
Shares arising out of options, Exercisable at the end of the year | Number | 14,166 | 9,229 |
Ranges of exercise prices, Outstanding at the beginning of the year | ₨ 5 | ₨ 5 |
Ranges of exercise prices, Granted during the year | 5 | 5 |
Ranges of exercise prices, Expired/forfeited during the year | 5 | 5 |
Ranges of exercise prices, Exercised during the year | 5 | 5 |
Ranges of exercise prices, Outstanding at the end of the year | 5 | 5 |
Ranges of exercise prices, Exercisable at the end of the year | ₨ 5 | ₨ 5 |
Weighted average exercise price, Outstanding at the beginning of the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Granted during the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Expired/forfeited during the year | ₨ 5 | ₨ 5 |
Weighted average exercise price, Exercised during the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average exercise price, Outstanding at the end of the year | ₨ / shares | 5 | 5 |
Weighted average exercise price, Exercisable at the end of the year | ₨ / shares | ₨ 5 | ₨ 5 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 73 | 73 |
Weighted average remaining useful life, Granted during the year | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 73 | 73 |
Weighted average remaining useful life, Exercisable at the end of the year | 44 | 43 |
Employee stock incentive plan_4
Employee stock incentive plans (Details 2) - Category A [Member] - DRL 2007 Plan [Member] | 12 Months Ended | |
Mar. 31, 2020Number₨ / shares | Mar. 31, 2019Number₨ / shares | |
Statement [Line Items] | ||
Shares arising out of options, Outstanding at the beginning of the year | Number | 146,060 | 0 |
Shares arising out of options, Granted during the year | Number | 61,700 | 149,160 |
Shares arising out of options, Expired/forfeited during the year | Number | (5,000) | (3,100) |
Shares arising out of options, Exercised during the year | Number | 0 | 0 |
Shares arising out of options, Outstanding at the end of the year | Number | 202,760 | 146,060 |
Shares arising out of options, Exercisable at the end of the year | Number | 35,265 | 0 |
Range of exercise prices, Outstanding at the beginning of the year | ₨ 0 | |
Range of exercise prices, Granted during the year | ₨ 2,814 | |
Range of exercise prices,exercised/forfeited during the year | 2,607 | 2,607 |
Range of exercise prices, Exercised during the year | 0 | 0 |
Range of exercise prices, Exercisable at the end of the year | 0 | |
Weighted average exercise price, Outstanding at the beginning of the year | 2,166 | 0 |
Weighted average exercise price, Granted during the year | 2,814 | 2,176 |
Weighted average exercise price, expired/forfeited during the year | 2,607 | 2,607 |
Weighted average exercise price, Exercised during the year | 0 | 0 |
Weighted average exercise price, Outstanding at the end of the year | 2,353.62 | 2,166 |
Weighted average exercise price, Exercisable at the end of the year | ₨ 2,150.81 | ₨ 0 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 81 | 0 |
Weighted average remaining useful life, Granted during the year | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 72 | 81 |
Weighted average remaining useful life, Exercisable at the end of the year | 51 | 0 |
Bottom of range [member] | ||
Statement [Line Items] | ||
Range of exercise prices, Outstanding at the beginning of the year | ₨ 1,982 | |
Range of exercise prices, Granted during the year | ₨ 1,982 | |
Range of exercise prices, Outstanding at the end of the year | 1,982 | 1,982 |
Range of exercise prices, Exercisable at the end of the year | 1,982 | |
Top of range [member] | ||
Statement [Line Items] | ||
Range of exercise prices, Outstanding at the beginning of the year | 2,607 | |
Range of exercise prices, Granted during the year | 2,607 | |
Range of exercise prices, Outstanding at the end of the year | 2,814 | ₨ 2,607 |
Range of exercise prices, Exercisable at the end of the year | 2,607 | |
Middle Range One [Member] | ||
Statement [Line Items] | ||
Range of exercise prices, Outstanding at the end of the year | ₨ 2,607 |
Employee stock incentive plan_5
Employee stock incentive plans (Details 3) - DRL 2018 Plan [Member] | 12 Months Ended |
Mar. 31, 2020shares | |
Statement [Line Items] | |
Options reserved against equity shares | 4,000,000 |
Options reserved against ADRs | 1,000,000 |
Total | 5,000,000 |
Number of securities to be acquired from secondary market | |
Statement [Line Items] | |
Options reserved against equity shares | 2,500,000 |
Options reserved against ADRs | 0 |
Total | 2,500,000 |
Number of securities to be issued by the Company | |
Statement [Line Items] | |
Options reserved against equity shares | 1,500,000 |
Options reserved against ADRs | 1,000,000 |
Total | 2,500,000 |
Employee stock incentive plan_6
Employee stock incentive plans (Details 4) | 12 Months Ended | ||
Mar. 31, 2020Number₨ / shares | Mar. 31, 2020Number₨ / shares$ / shares | Mar. 31, 2019sharesNumber₨ / shares | |
Statement [Line Items] | |||
Range of exercise prices, Exercisable at the end of the year | ₨ 0 | ||
Drl Two Thousand Eighteen Plan [Member] | |||
Statement [Line Items] | |||
Shares arising out of options, Outstanding at the beginning of the year | 229,600 | 229,600 | 0 |
Shares arising out of options, Granted during the year | Number | 169,900 | 169,900 | 235,700 |
Shares arising out of options, Expired/forfeited during the year | Number | (22,575) | (22,575) | (6,100) |
Shares arising out of options, Exercised during the year | Number | (1,150) | (1,150) | 0 |
Shares arising out of options, Outstanding at the end of the year | Number | 375,775 | 375,775 | 229,600 |
Shares arising out of options, Exercisable at the end of the year | 53,100 | 53,100 | 0 |
Range of exercise prices, Outstanding at the beginning of the year | ₨ 2,607 | ₨ 0 | |
Range of exercise prices, Granted during the year | 2,607 | ||
Range of exercise prices, Expired/forfeited during the year | 2,607 | ||
Range of exercise prices, Exercised during the year | 0 | ||
Range of exercise prices, Outstanding at the end of the year | 2,607 | ||
Range of exercise prices, Exercisable at the end of the year | 2,607 | ₨ 2,607 | |
Weighted average exercise price, Outstanding at the beginning of the year | 2,607 | 0 | |
Weighted average exercise price, Granted during the year | 2,817.07 | 2,607 | |
Weighted average exercise price, Expired/forfeited during the year | 2,687.84 | 2,607 | |
Weighted average exercise price, Exercised during the year | 2,607 | 0 | |
Weighted average exercise price, Outstanding at the end of the year | 2,697.12 | 2,607 | |
Weighted average exercise price, Exercisable at the end of the year | ₨ 2,607 | ₨ 2,607 | ₨ 0 |
Weighted average remaining useful life, Outstanding at the beginning of the year | 84 | 84 | 0 |
Weighted average remaining useful life, Granted during the year | 90 | 90 | 90 |
Weighted average remaining useful life, Outstanding at the end of the year | 75 | 75 | 84 |
Weighted average remaining useful life, Exercisable at the end of the year | 53 | 53 | 0 |
Drl Two Thousand Eighteen Plan [Member] | Bottom of range [member] | |||
Statement [Line Items] | |||
Range of exercise prices, Granted during the year | ₨ 2,814 | ||
Range of exercise prices, Expired/forfeited during the year | 2,607 | ||
Range of exercise prices, Outstanding at the end of the year | 2,607 | ||
Drl Two Thousand Eighteen Plan [Member] | Top of range [member] | |||
Statement [Line Items] | |||
Range of exercise prices, Granted during the year | 3,031 | ||
Range of exercise prices, Expired/forfeited during the year | $ / shares | ₨ 3,031 | ||
Range of exercise prices, Exercised during the year | 2,607 | ||
Range of exercise prices, Outstanding at the end of the year | 2,814 | ||
Drl Two Thousand Eighteen Plan [Member] | Middle Range One [Member] | |||
Statement [Line Items] | |||
Range of exercise prices, Expired/forfeited during the year | ₨ 2,814 |
Employee stock incentive plan_7
Employee stock incentive plans (Details 5) - ₨ / shares | Jan. 26, 2020 | Oct. 31, 2019 | May 16, 2019 | Jan. 31, 2019 | Sep. 21, 2018 | Jul. 26, 2018 | May 21, 2018 |
Weighted average inputs used in the fair value of options granted [Line Items] | |||||||
Expected volatility | 27.00% | 27.10% | 32.92% | 33.98% | 34.89% | 32.97% | |
Exercise price | ₨ 3,031 | ₨ 5 | ₨ 5 | ₨ 5 | |||
Option life | 5 years | 2 years 6 months | 2 years 6 months | 2 years 6 months | 2 years 6 months | 2 years 6 months | |
Risk-free interest rate | 6.61% | 5.72% | 7.00% | 7.90% | 7.47% | 7.46% | |
Expected dividends | 0.66% | 0.72% | 0.74% | 0.78% | 0.94% | 1.06% | |
Grant date share price | ₨ 3,031 | ₨ 2,783.20 | ₨ 2,720.80 | ₨ 2,556.25 | ₨ 2,132.75 | ₨ 1,893.05 | |
Option One on May 16, 2019 [Member] | |||||||
Weighted average inputs used in the fair value of options granted [Line Items] | |||||||
Expected volatility | 28.25% | ||||||
Exercise price | ₨ 2,814 | ||||||
Option life | 5 years | ||||||
Risk-free interest rate | 7.14% | ||||||
Expected dividends | 0.71% | ||||||
Grant date share price | ₨ 2,801 | ||||||
Option Two on May 16, 2019 [Member] | |||||||
Weighted average inputs used in the fair value of options granted [Line Items] | |||||||
Expected volatility | 29.29% | ||||||
Exercise price | ₨ 5 | ||||||
Option life | 2 years 6 months | ||||||
Risk-free interest rate | 6.76% | ||||||
Expected dividends | 0.71% | ||||||
Grant date share price | ₨ 2,801 | ||||||
Bottom of range [member] | |||||||
Weighted average inputs used in the fair value of options granted [Line Items] | |||||||
Exercise price | 5 | 5 | |||||
Top of range [member] | |||||||
Weighted average inputs used in the fair value of options granted [Line Items] | |||||||
Exercise price | ₨ 2,607 | ₨ 1,982 |
Employee stock incentive plan_8
Employee stock incentive plans (Details 6) - INR (₨) ₨ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Share-based payment expense | ₨ 615 | ₨ 474 | ₨ 482 | |
Cash Settled Share-based Payment [Member] | ||||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Cash settled share-based payment expense | [1] | 94 | 85 | 28 |
Equity Shared payment Settled [Member] | ||||
Disclosure of detailed information about share based payment expense [Line Items] | ||||
Equity settled share-based payment expense | [2] | ₨ 521 | ₨ 389 | ₨ 454 |
[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 vesting. As of March 31, 2020, there was Rs.97 of total unrecognized compensation cost related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.93 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, 2020 and 2019, there was Rs.515 and Rs.519, respectively of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 1.93 years and 2.09 years respectively. |
Employee stock incentive plan_9
Employee stock incentive plans (Details Textual) - INR (₨) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
DRL Two Thousand Eighteen Plan [Member] | ||
Employee stock incentive plan [Line Items] | ||
Employee Stock Option Treasury Shares Purchased | 395,950 | |
Value Of Stock Purchased | ₨ 1,006 | |
Equity Shared payment 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 | 1.93 years | 2.09 years |
Employees Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ₨ 515 | ₨ 519 |
Equity Shared payment Settled [Member] | DRL Two Thousand Eighteen Plan [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | 994 | 667 |
Intrinsic Value of Options exercised | 0.35 | ₨ 0 |
Intrinsic Value of Options outstanding | 159 | |
Intrinsic Value of Options Exercisable | ₨ 22 | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | ₨ 2,914 | ₨ 0 |
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 | 1.93 years | |
Employees Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ₨ 97 | |
DRL 2007 Plans [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | 2,747 | ₨ 2,056 |
Intrinsic Value of Options exercised | 93 | ₨ 80 |
Intrinsic Value of Options outstanding | 472 | |
Intrinsic Value of Options Exercisable | ₨ 44 | |
Number of instruments in share based payment arrangement available for grant | 1,530,779 | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | ₨ 2,757 | ₨ 2,445 |
DRL 2007 Plans [Member] | DRL Two Thousand Seven Plan [Member] | ||
Employee stock incentive plan [Line Items] | ||
Intrinsic Value of Options outstanding | ₨ 156 | |
Intrinsic Value of Options Exercisable | 27 | |
DRL 2007 Plans [Member] | Equity Shared payment Settled [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | ₨ 993 | ₨ 515 |
Categories A [Member] | DRL 2007 Plans [Member] | ||
Employee stock incentive plan [Line Items] | ||
Number of instruments in share based payment arrangement available for grant | 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 | 1,148,084 | |
DRL 2002 Plan [Member] | ||
Employee stock incentive plan [Line Items] | ||
Weighted average fair value at measurement date, share options granted | ₨ 2,746 | 2,195 |
Intrinsic Value of Options exercised | 193 | ₨ 281 |
Intrinsic Value of Options outstanding | 725 | |
Intrinsic Value of Options Exercisable | ₨ 126 | |
Number of instruments in share based payment arrangement available for grant | 2,295,478 | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | ₨ 2,681 | ₨ 2,302 |
DRL 2002 Plan [Member] | Categories A [Member] | ||
Employee stock incentive plan [Line Items] | ||
Number of instruments in share based payment arrangement available for grant | 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 | 1,995,478 |
Related parties (Details)
Related parties (Details) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Research and development services received | ₨ 105 | ₨ 97 | ₨ 98 |
Sale of goods | 14 | 23 | 0 |
Lease rentals received | 1 | 0 | 0 |
Research and development services provided | 58 | 103 | 100 |
Lease rentals paid | 35 | 35 | 35 |
Catering expenses paid | 344 | 270 | 178 |
Hotel expenses paid | 22 | 26 | 49 |
Facility management services paid | 24 | 0 | 0 |
Purchase of Solar power | 108 | 0 | 0 |
Civil works | 101 | 106 | 0 |
Contributions towards social development | 233 | 220 | 238 |
Salaries to relatives of Key Management Personnel | 7 | 5 | 1 |
Others | ₨ 4 | ₨ 1 | ₨ 0 |
Related parties (Details 1)
Related parties (Details 1) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
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 | 68 | 106 |
Amounts payable, related party transactions | ₨ 91 | ₨ 80 |
Related parties (Details 2)
Related parties (Details 2) - INR (₨) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Key Management Personnel Compensation [Line Items] | |||
Salaries and other benefits | ₨ 7 | ₨ 5 | ₨ 1 |
Total | 33,802 | 33,562 | 32,149 |
Key Management Personnel [Member] | |||
Disclosure Of Key Management Personnel Compensation [Line Items] | |||
Salaries and other benefits | 684 | 668 | 458 |
Contributions to defined contribution plans | 34 | 35 | 38 |
Commission to directors | 298 | 243 | 153 |
Share-based payments expense | 165 | 99 | 114 |
Total | ₨ 1,181 | ₨ 1,045 | ₨ 763 |
Financial instruments (Details)
Financial instruments (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |||
Assets: | ||||||
Cash and cash equivalents | ₨ 2,053 | $ 27 | ₨ 2,228 | |||
Derivative financial instruments | 1,105 | 15 | 360 | |||
Liabilities: | ||||||
Trade and other payables | 16,659 | 221 | 14,553 | |||
Derivative financial instruments | 1,602 | 21 | 68 | |||
Long-term borrowings | 5,570 | [1] | 26,347 | [2] | ||
Short-term borrowings | 16,441 | 218 | 12,125 | |||
Bank overdraft | 91 | $ 1 | 0 | |||
Total carrying value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 2,053 | 2,228 | ||||
Other investments | [3] | 24,015 | 23,343 | |||
Trade and other receivables | 52,015 | 39,982 | ||||
Derivative financial instruments | 1,105 | 360 | ||||
Other assets | [4] | 4,170 | 2,843 | |||
Total | 83,358 | 68,756 | ||||
Liabilities: | ||||||
Trade and other payables | 16,659 | 14,553 | ||||
Derivative financial instruments | 1,602 | 68 | ||||
Long-term borrowings | 5,570 | 26,256 | ||||
Short-term borrowings | 16,441 | 12,125 | ||||
Bank overdraft | 91 | 0 | ||||
Other liabilities and provisions | [5] | 25,317 | 21,902 | |||
Total | 65,680 | 74,904 | ||||
Total fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 2,053 | 2,228 | ||||
Other investments | [3] | 24,015 | 23,343 | |||
Trade and other receivables | 52,015 | 39,982 | ||||
Derivative financial instruments | 1,105 | 360 | ||||
Other assets | [4] | 4,170 | 2,843 | |||
Total | 83,358 | 68,756 | ||||
Liabilities: | ||||||
Trade and other payables | 16,659 | 14,553 | ||||
Derivative financial instruments | 1,602 | 68 | ||||
Long-term borrowings | 5,570 | 26,256 | ||||
Short-term borrowings | 16,441 | 12,125 | ||||
Bank overdraft | 91 | 0 | ||||
Other liabilities and provisions | [5] | 25,317 | 21,902 | |||
Total | ₨ 65,680 | ₨ 74,904 | ||||
[1] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.0. | |||||
[2] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.91. | |||||
[3] | Interest accrued but not due on investments is included in other assets. | |||||
[4] | 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.10,476 and Rs.10,639 as of March 31, 2020 and 2019, respectively, are not included. | |||||
[5] | Other liabilities and provisions that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other accruals) of Rs.10,725 and Rs.8,898 as of March 31, 2020 and 2019, respectively, are not included. |
Financial instruments (Details
Financial instruments (Details 1) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | |
Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | ₨ (497) | ₨ 292 |
Investment in MF [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTPL - Financial asset | 13,832 | 16,240 | |
Investment in Equity [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 303 | 791 | |
Investment In Market Linked Debentures [Member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 1,993 | ||
Investment In Market Linked Debentures [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 1,993 | ||
Level 1 of fair value hierarchy [member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | 0 | 0 |
Level 1 of fair value hierarchy [member] | Investment in MF [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTPL - Financial asset | 13,832 | 16,240 | |
Level 1 of fair value hierarchy [member] | Investment in Equity [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 303 | 791 | |
Level 1 of fair value hierarchy [member] | Investment In Market Linked Debentures [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 1,993 | ||
Level 2 of fair value hierarchy [member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | (497) | 292 |
Level 2 of fair value hierarchy [member] | Investment in MF [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTPL - Financial asset | 0 | 0 | |
Level 2 of fair value hierarchy [member] | Investment in Equity [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 0 | 0 | |
Level 2 of fair value hierarchy [member] | Investment In Market Linked Debentures [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 0 | ||
Level 3 of fair value hierarchy [member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
Derivative Finanicial Assets And Liabilties | [1] | 0 | 0 |
Level 3 of fair value hierarchy [member] | Investment in MF [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTPL - Financial asset | 0 | 0 | |
Level 3 of fair value hierarchy [member] | Investment in Equity [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | 0 | ₨ 0 | |
Level 3 of fair value hierarchy [member] | Investment In Market Linked Debentures [Member] | Recurring fair value measurement [member] | |||
Fair value hierarchy of assets and liabilities [Line Items] | |||
FVTOCI - Financial asset | ₨ 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 (Detail_2
Financial instruments (Details 2) ₨ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Net gain/(loss) recognized in finance costs in respect of foreign exchange derivative contracts and cross currency interest rate swaps contracts | ₨ 155 | ₨ (257) | ₨ 168 | |
Net gain/(loss) recognized in equity in respect of hedges of highly probable forecast transactions | (951) | $ (13) | 180 | (82) |
Net gain/(loss) reclassified from equity and recognized as component of revenue occurrence of forecasted transaction | ₨ (50) | ₨ (524) | ₨ 651 |
Financial instruments (Detail_3
Financial instruments (Details 3) ₽ in Millions, € in Millions, £ in Millions, SFr in Millions, R in Millions, $ in Millions, $ in Millions | Mar. 31, 2020USD ($) | Mar. 31, 2020RUB (₽) | Mar. 31, 2020GBP (£) | Mar. 31, 2020AUD ($) | Mar. 31, 2020CHF (SFr) | Mar. 31, 2020ZAR (R) | Mar. 31, 2020EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2019RUB (₽) | Mar. 31, 2019GBP (£) |
Forward contract| US$ - 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 | $ 148 | $ 261 | ||||||||
Forward contract| US$ - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Twenty [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 140 | |||||||||
Forward contract| US$ - RON| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Seventeen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 7 | |||||||||
Forward contract| US$ - RUB| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Four [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 30 | |||||||||
Forward contract| US$ - RUB| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Eighteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 6 | |||||||||
Forward contract| EUR - US$| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Nine [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | € | € 6 | |||||||||
Forward contract| GBP - US$| 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 | £ | £ 23 | |||||||||
Forward contract| GBP - US$| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Ten [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | £ | £ 38 | |||||||||
Option contract| US$ - 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 | $ 300 | |||||||||
Option contract| US$ - INR| Sell [Member] | Hedges of highly probable forecasted transactions [Member] | Contract Twenty One [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 270 | |||||||||
Forward contract| RUB - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Two [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | ₽ | ₽ 5,968 | ₽ 2,710 | ||||||||
Forward contract| RUB - 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 | ₽ | ₽ 1,350 | |||||||||
Forward contract| GBP - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Three [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | £ | £ 9 | £ 18 | ||||||||
Forward contract| AUD - 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 | $ 4 | |||||||||
Forward contract| CHF - INR| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Five [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | SFr | SFr 200 | |||||||||
Forward contract| ZAR - 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 | R | R 71 | |||||||||
Forward contract| CHF - US$| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Seven [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | SFr | SFr 200 | |||||||||
Forward contract| EUR - GBP| Sell [Member] | Hedges of recognised assets and liabilities [Member] | Contract Eight [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | € | € 3 | |||||||||
Forward contract| US$ - AUD| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Eleven [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 5 | |||||||||
Forward contract| US$ - BRL| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Twelve [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 6 | |||||||||
Forward contract| US$ - CLP| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Thirteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 4 | |||||||||
Forward contract| US$ - COP| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Fourteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 4 | |||||||||
Forward contract| US$ - KZT| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Fifteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 11 | |||||||||
Forward contract| US$ - MXN| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Sixteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | 2 | |||||||||
Forward contract| US$ - UAH| Buy [Member] | Hedges of recognised assets and liabilities [Member] | Contract Nineteen [Member] | ||||||||||
Disclosure notional amount of outstanding foreign exchange derivative contracts [Line Items] | ||||||||||
Notional amount | $ 19 |
Financial instruments (Detail_4
Financial instruments (Details 4) - INR (₨) ₨ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
US Dollars [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | ₨ 20,430 | ₨ 20,747 |
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 | 2,648 | 2,420 |
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 | 5,297 | 4,841 |
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 | 7,945 | 7,261 |
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 | 4,540 | 6,225 |
Russian Roubles [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Forecast cash flows classified as cash flow hedges | 0 | 1,441 |
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 | 0 | 161 |
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 | 0 | 320 |
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 | 0 | 480 |
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 | ₨ 0 | ₨ 480 |
Financial instruments (Detail_5
Financial instruments (Details Textual) ₨ in Millions | 12 Months Ended | ||
Mar. 31, 2020INR (₨)Unit_USD | Mar. 31, 2019INR (₨)Unit_USD | Mar. 31, 2018INR (₨) | |
Financial instruments [Line Items] | |||
Other non-financial assets | ₨ 10,476 | ₨ 10,639 | |
Other non-financial liabilities | 10,725 | 8,898 | |
Derivative financial assets | 1,105 | 360 | |
Derivative financial liabilities | 1,602 | 68 | |
Gains (losses) on cash flow hedges, net of tax | (719) | 111 | ₨ (41) |
Reserve of cash flow hedges | (721) | 229 | |
Interest rate swap contract [member] | |||
Financial instruments [Line Items] | |||
Gains (losses) on cash flow hedges, net of tax | ₨ 33 | ₨ 0 | |
Nominal amount of hedging instrument | Unit_USD | 0 | 50 | |
Other comprehensive income, net of tax, cash flow hedges | ₨ 0 |
Financial risk management (Deta
Financial risk management (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | |
Assets: | ||||
Cash and cash equivalents | ₨ 2,053 | $ 27 | ₨ 2,228 | |
Trade and other receivables | 52,015 | 39,982 | ||
Total | 232,241 | 3,081 | 225,427 | |
Liabilities: | ||||
Trade and other payables | 16,659 | 221 | 14,553 | |
Long-term borrowings | 1,304 | 17 | 22,000 | |
Short-term borrowings | 16,441 | 218 | 12,125 | |
Other liabilities and provisions | 25,317 | 21,902 | ||
Total | 77,253 | $ 1,025 | 85,230 | |
Foreign Currency Risk from Non-derivative Financial Instruments [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 547 | 845 | ||
Other investments | 24 | 20 | ||
Trade and other receivables | 33,942 | 31,220 | ||
Other assets | 1,092 | 522 | ||
Total | 35,605 | 32,607 | ||
Liabilities: | ||||
Trade and other payables | 2,455 | 3,737 | ||
Long-term borrowings | 4,483 | 5,186 | ||
Short-term borrowings | 7,316 | 9,232 | ||
Other liabilities and provisions | 6,046 | 8,972 | ||
Total | 20,300 | 27,127 | ||
US Dollars [Member] | Non-derivative financial instruments [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 365 | 339 | ||
Other investments | 24 | 20 | ||
Trade and other receivables | 31,931 | 20,524 | ||
Other assets | 921 | 298 | ||
Total | 33,241 | 21,181 | ||
Liabilities: | ||||
Trade and other payables | 1,857 | 2,426 | ||
Long-term borrowings | 4,401 | 5,186 | ||
Short-term borrowings | 7,316 | 7,538 | ||
Other liabilities and provisions | 5,534 | 6,542 | ||
Total | 19,108 | 21,692 | ||
Euro [Member] | Non-derivative financial instruments [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 43 | 30 | ||
Other investments | 0 | 0 | ||
Trade and other receivables | 705 | 437 | ||
Other assets | 15 | 18 | ||
Total | 763 | 485 | ||
Liabilities: | ||||
Trade and other payables | 525 | 1,044 | ||
Long-term borrowings | 2 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Other liabilities and provisions | 60 | 58 | ||
Total | 587 | 1,102 | ||
Russian roubles [Member] | Non-derivative financial instruments [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 4 | 58 | ||
Other investments | 0 | 0 | ||
Trade and other receivables | 989 | 7,290 | ||
Other assets | 3 | 68 | ||
Total | 996 | 7,416 | ||
Liabilities: | ||||
Trade and other payables | 0 | 0 | ||
Long-term borrowings | 3 | 0 | ||
Short-term borrowings | 0 | 1,387 | ||
Other liabilities and provisions | 52 | 1,517 | ||
Total | 55 | 2,904 | ||
Other Currency [Member] | Non-derivative financial instruments [Member] | ||||
Assets: | ||||
Cash and cash equivalents | [1] | 135 | 418 | |
Other investments | [1] | 0 | 0 | |
Trade and other receivables | [1] | 317 | 2,969 | |
Other assets | [1] | 153 | 138 | |
Total | [1] | 605 | 3,525 | |
Liabilities: | ||||
Trade and other payables | [1] | 73 | 267 | |
Long-term borrowings | [1] | 77 | 0 | |
Short-term borrowings | [1] | 0 | 307 | |
Other liabilities and provisions | [1] | 400 | 855 | |
Total | [1] | ₨ 550 | ₨ 1,429 | |
[1] | Others primarily consists of U.K. pounds sterling, Swiss francs, Romanian new leus, Chinese Yuans (Renminbi), Canadian Dollars and Ukrainian hryvnia. |
Financial risk management (De_2
Financial risk management (Details 1) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | |||
Trade and other receivables | ₨ 52,015 | ₨ 39,982 | |
Allowance account for credit losses of financial assets | (1,202) | (1,172) | ₨ (952) |
Financial assets past due but not impaired [member] | |||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | |||
Trade and other receivables | 53,217 | 41,154 | |
Allowance account for credit losses of financial assets | (1,202) | (1,172) | |
Financial assets past due but not impaired [member] | Neither Past Due Nor Impaired [Member] | |||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | |||
Trade and other receivables | 45,864 | 33,874 | |
Not later than one year [member] | Financial assets past due but not impaired [member] | |||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | |||
Trade and other receivables | 6,305 | 6,262 | |
Later than one year [member] | Financial assets past due but not impaired [member] | |||
Disclosure of Aging of trade and other receivables past due but not impaired [Line Items] | |||
Trade and other receivables | ₨ 1,048 | ₨ 1,018 |
Financial risk management (De_3
Financial risk management (Details 2) - INR (₨) ₨ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | ₨ 16,659 | ₨ 14,553 |
Bank overdraft, short-term loans and borrowings | 16,532 | 12,125 |
Derivative financial instruments | 1,602 | 68 |
Other liabilities and provisions | 25,317 | 21,902 |
Not later than one year [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 16,659 | 14,553 |
Bank overdraft, short-term loans and borrowings | 16,532 | 12,125 |
Derivative financial instruments | 1,602 | 68 |
Other liabilities and provisions | 24,566 | 21,113 |
Later Than One Year But Not Later Than Two Years [Member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 0 | 0 |
Bank overdraft, short-term loans and borrowings | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Other liabilities and provisions | 0 | 17 |
Later than two years and not later than three years [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 0 | 0 |
Bank overdraft, short-term loans and borrowings | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Other liabilities and provisions | 0 | 17 |
Later than three years and not later than four years [member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 0 | 0 |
Bank overdraft, short-term loans and borrowings | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Other liabilities and provisions | 0 | 17 |
Later than four years [Member] | ||
Disclosure of Contractual Maturities of Significant Financial Liabilities [Line Items] | ||
Trade and other payables | 0 | 0 |
Bank overdraft, short-term loans and borrowings | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Other liabilities and provisions | ₨ 751 | ₨ 738 |
Financial risk management (De_4
Financial risk management (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2020INR (₨) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2020USD ($) | |||
Financial Risk Management [Line Items] | ||||||
uncommitted lines of credit | ₨ 39,374 | ₨ 47,134 | ||||
Working capital | 57,556 | 54,801 | ||||
Investment Mutual funds | 13,832 | 16,240 | ||||
Cash and cash equivalents | 2,053 | 2,228 | $ 27 | |||
Increase In Hedging Reserve Sensitivity Analysis | 1,203 | 1,872 | ₨ 1,277 | |||
Decrease In Hedging Reserve Sensitivity Analysis | 1,740 | 1,349 | 1,338 | |||
Increase In Profit From Contracts Sensitivity analysis | 2,070 | 1,789 | 403 | |||
Decrease In Profit From Contracts Sensitivity Analysis | 1,745 | 1,873 | ₨ 308 | |||
Borrowings | ₨ 5,570 | [1] | ₨ 26,347 | [2] | ||
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% | ₨ 1,531 | ₨ 548 | ||||
Percentage decrease increase in exchange rates of each of the currencies underlying derivative contracts used for sensitivity analysis | 10.00% | |||||
Investment In Market Linked Debentures [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Investments in marked linked debentures | ₨ 1,993 | |||||
Bonds And Commercial Paper [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Investments other than investments accounted for using equity method | 7,862 | 6,289 | ||||
Cash flow hedges [member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | 0 | 3,458 | ||||
Floating interest rate [member] | Loan one [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | ₨ 10,971 | ₨ 31,154 | ||||
Borrowings, interest rate basis | 1 Month LIBOR plus 12.5 bps to 1 Month LIBOR plus 82.7 bps | 1 Month LIBOR plus 25 bps to 1 Month LIBOR plus 105 bps | ||||
Floating interest rate [member] | Loan two [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | ₨ 63 | ₨ 72 | ||||
Borrowings, interest rate basis | 1 Month JIBAR plus 120 bps | 1 Month JIBAR plus 120 bps | ||||
Floating interest rate [member] | Loan three [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | ₨ 1,579 | ₨ 1,749 | ||||
Borrowings, interest rate basis | TIIE+1.25% | TIIE+1.25% | ||||
Floating interest rate [member] | Loan Four [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | ₨ 4,000 | |||||
Borrowings, interest rate basis | 1 Month India Treasury Bill plus 60 bps | |||||
Floating interest rate [member] | Loan Five [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
Borrowings | ₨ 1,627 | |||||
Borrowings, interest rate basis | 3 Month LIBOR plus 55 bps | |||||
Unutilized credit limits [Member] | ||||||
Financial Risk Management [Line Items] | ||||||
uncommitted lines of credit | ₨ 39,374 | ₨ 47,134 | ||||
[1] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.0. | |||||
[2] | Long-term debt obligations disclosed in the above table do not reflect any netting of transaction costs amounting to Rs.91. |
Contingencies (Details)
Contingencies (Details) - Details of demand notice [Member] - INR (₨) ₨ in Millions | 12 Months Ended | 15 Months Ended | 18 Months Ended | 19 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jun. 30, 2017 | 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 | ₨ 307 | ₨ 125 | ₨ 102 |
Penalties Demanded By Central Excise Authorities To Company | ₨ 11 | ₨ 6 | ₨ 5 | ₨ 5 | ₨ 100 | ₨ 102 |
Contingencies (Details 1)
Contingencies (Details 1) - INR (₨) ₨ in Millions | 24 Months Ended | 36 Months Ended | |
Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2009 | |
Disclosure of contingent liabilities [line items] | |||
Amount demanded | ₨ 59 | ₨ 27 | ₨ 66 |
Percentage demanded | 10.00% | 10.00% | 10.00% |
Contingencies (Details Textual)
Contingencies (Details Textual) ₨ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 60 Months Ended | ||||||||||||||||
Nov. 30, 2019INR (₨) | Sep. 30, 2019 | Jun. 30, 2016INR (₨) | Mar. 31, 2020INR (₨)₨ / a | Mar. 31, 2020USD ($)₨ / a | Mar. 31, 2020MXN ($)₨ / a | Mar. 31, 2019INR (₨) | Mar. 31, 2017INR (₨) | Mar. 31, 2013INR (₨) | May 15, 2020USD ($) | Jan. 31, 2020INR (₨) | Dec. 31, 2019INR (₨) | Jan. 18, 2018INR (₨) | Jan. 18, 2018USD ($) | Sep. 15, 2017INR (₨) | Sep. 13, 2017INR (₨) | Aug. 08, 2017INR (₨) | Jul. 27, 2017INR (₨) | Mar. 31, 2008INR (₨) | Mar. 31, 2006INR (₨) | |
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Other provisions | ₨ 3,854 | ₨ 4,218 | ||||||||||||||||||
Demand made by Indian Sales Tax Authorities to the company | 319 | |||||||||||||||||||
VAT Provision Recorded | 51 | |||||||||||||||||||
Security Deposit For Expansion On Turnover | 1.00% | |||||||||||||||||||
Provision For Cost Of Expansion | ₨ 29.4 | |||||||||||||||||||
Payment Of Costs and Damages | $ | $ 72 | |||||||||||||||||||
Recovery Of Security Deposit For Expansion On Turnover | 0.50% | |||||||||||||||||||
Corpus Fund For Remediation Fee On Turnover | 0.50% | |||||||||||||||||||
Deposit On Demand For Remediation Fee | ₨ 60 | |||||||||||||||||||
Goods And Services Tax [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Legal proceedings provision | 26 | |||||||||||||||||||
Regulatory deferral account tax liability | ₨ 337 | ₨ 337 | ||||||||||||||||||
Cardiovascular [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Other provisions | 268 | |||||||||||||||||||
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 | 2,291 | |||||||||||||||||||
Transfer pricing adjustments [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Tax Impact of disallowed items | 686 | $ 213 | ||||||||||||||||||
Profit On Disallowed Items | 81 | $ 25 | ||||||||||||||||||
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% | 50.00% | 50.00% | |||||||||||||||||
Issued Notice Demanding Payment By NPPA | ₨ 285 | |||||||||||||||||||
Additional deposit amount against penalty | ₨ 30 | |||||||||||||||||||
Land pollution [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Pollution compensation per acre fixed for dry land | ₨ / a | 0.0013 | 0.0013 | 0.0013 | |||||||||||||||||
Pollution compensation per acre fixed for wet land | ₨ / a | 0.0017 | 0.0017 | 0.0017 | |||||||||||||||||
Consumer Product Safety Commission [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Settlement Compensation Paid | ₨ 319 | $ 5 | ||||||||||||||||||
Securities Class Action Litigation [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Settlement Compensation Paid | $ | $ 9 | |||||||||||||||||||
Glenmark Litigation [Member] | ||||||||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||||||||
Settlement Compensation Payable | ₨ 50 | |||||||||||||||||||
Legal proceedings provision | ₨ 50 |
Collaboration agreement with _2
Collaboration agreement with Curis, Inc. (Details Textual) $ / shares in Units, shares in Thousands, ₨ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2018 | Jan. 18, 2015INR (₨)shares | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019shares | Dec. 31, 2017shares | Sep. 07, 2016INR (₨)shares | Sep. 07, 2016USD ($)$ / sharesshares | Jan. 18, 2015USD ($)shares | |
Disclosure Of Collaboration Agreement [Line Items] | |||||||||
Milestone and other payments to be received | $ 24.5 | ||||||||
Gains (losses) recognised in other comprehensive income, fair value measurement, assets | ₨ | ₨ 2,407 | ||||||||
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 | ||||||||
Curis, Inc. [Member] | |||||||||
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. | 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. | ||||||
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, 2019, lock-up restrictions were released on an aggregate of 10.2 million of such additional shares of Curis common stock, representing 100% 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, 2019, lock-up restrictions were released on an aggregate of 10.2 million of such additional shares of Curis common stock, representing 100% 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 | |||||||
Number of share released from equity restrictions | shares | 10,200 | ||||||||
Number of shares issued | shares | 17,100 | 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% | ||||||||
Equity Shares After Stock Split | shares | 5,470 | ||||||||
Reverse Stock Split | 1-for-5 |
Agreements with Encore Dermat_2
Agreements with Encore Dermatology, Inc. (Details Textual) ₨ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | [1],[2] | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | Mar. 31, 2018USD ($) | |||
Agreements with Encore Dermatology Inc [Line Items] | ||||||||
Recognised in revenue | ₨ 174,600 | $ 2,316 | ₨ 153,851 | [1],[2] | ₨ 142,028 | [1],[2] | ||
Gain Loss On Sale Of An Intangible Assets | 159 | |||||||
Performance obligations satisfied over time [member] | ||||||||
Agreements with Encore Dermatology Inc [Line Items] | ||||||||
Recognised in revenue | ₨ 1,807 | ₨ 1,301 | $ 20 | |||||
Encore Dermatology [Member] | ||||||||
Agreements with Encore Dermatology Inc [Line Items] | ||||||||
Counter Party Name | Encore Dermatology, Inc. | |||||||
Description Of Intangible asset | DFD-06 | DFD-06 | ||||||
Description Of Particulars Related To Asset Agreement | During the year ended March 31, 2018, the Company entered into an agreement with Encore for out-licensing one of its products, DFD-06. The consideration for this arrangement consists of up to Rs.1,301 (U.S.$20) in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 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 Rs.1,301 (U.S.$20) was recognized. | During the year ended March 31, 2018, the Company entered into an agreement with Encore for out-licensing one of its products, DFD-06. The consideration for this arrangement consists of up to Rs.1,301 (U.S.$20) in upfront payments and amounts contingent upon satisfaction of certain approval milestones, plus up to U.S.$12.5 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 Rs.1,301 (U.S.$20) was recognized. | ||||||
[1] | Effective July 1, 2017, Goods and Services Tax (“GST”) was introduced in India replacing the excise duty and various other taxes. Following the principles of IFRS 15, “Revenue from Contracts with Customers”, revenue 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 years ended March 31, 2020 and 2019 are not comparable with those of the previous year presented. | |||||||
[2] | Revenues for the year ended March 31, 2020 do not include inter-segment revenues from the PSAI segment to the Global Generics segment, which amount to Rs.5,910 (as compared to Rs.5,785 and Rs.5,492 for the years ended March 31, 2019 and 2018, respectively). |
Definitive agreement with Ups_2
Definitive agreement with Upsher-Smith Laboratories, LLC (Details Textual) ₨ in Millions, $ in Millions | Jun. 14, 2019USD ($) | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019INR (₨) | Mar. 31, 2018INR (₨) | |
Disclosure of Definitive agreement with UpsherSmith Laboratories LLC [Line Items] | ||||||
License fees | ₨ | [1],[2] | ₨ 8,617 | ₨ 3,016 | ₨ 2,472 | ||
Selling, General and Administrative Expense | 50,129 | $ 665 | ₨ 48,680 | ₨ 46,857 | ||
UpsherSmith Laboratories LLC [Member] | Proprietary Products [Member] | ||||||
Disclosure of Definitive agreement with UpsherSmith Laboratories LLC [Line Items] | ||||||
Upfront consideration received | $ | $ 70 | |||||
Contingent consideration receivables | $ | $ 40.5 | |||||
License fees | 7,486 | $ 108.7 | ||||
Selling, General and Administrative Expense | ₨ | ₨ 328 | |||||
[1] | During the year ended March 31, 2020, the Company entered into a definitive agreement with Upsher-Smith Laboratories, LLC for the sale of its U.S. and select territory rights for ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRA® (sumatriptan nasal spray) 10 mg (formerly referred to as “DFN-02”), which formed part of its Proprietary Products segment. License fees includes an amount of Rs.7,486 (U.S.$108.7) towards the aforesaid sale transaction. Refer to Note 37 of these consolidated financial statements for further details. | |||||
[2] | License fees for the years ended March 31, 2019 and March 31, 2018 primarily includes out-licensing revenue from Encore Dermatology Inc. Refer to Note 36 of these consolidated financial statements for further details. |
Merger of Dr. Reddy's Holding_2
Merger of Dr. Reddy's Holdings Limited into Dr. Reddy's Laboratories Limited (Details Textual) - Dr Reddys Holdings Limited [Member] | Jul. 29, 2019 | Jan. 02, 2020 |
Disclosure Merger of Dr Reddys Holdings Limited into Dr Reddys Laboratories Limited [Line Items] | ||
Ownership interests held by promoter group in the entity | 24.88% | |
Shareholders voting | % | 99.98% | |
Unsecured creditors voting | % | 100.00% |
Business Transfer Agreement w_2
Business Transfer Agreement with Wockhardt Limited (Details Textual) ₨ in Millions | Jun. 10, 2020INR (₨) | Feb. 29, 2020INR (₨)Brand |
Disclosure of Business Transfer Agreement with Wockhardt Limited [Line Items] | ||
Number of brands | Brand | 62 | |
Wockhardt Limited [Member] | ||
Disclosure of Business Transfer Agreement with Wockhardt Limited [Line Items] | ||
Consideration on acquisition date | ₨ 18,500 | |
Wockhardt Limited [Member] | Major business combination [member] | ||
Disclosure of Business Transfer Agreement with Wockhardt Limited [Line Items] | ||
Consideration on acquisition date | ₨ 18,500 | |
Business combination payment of consideration | 14,830 | |
Acquisition date consideration payable for working capital adjustments and other statutory dues | 670 | |
Business combination contingent consideration payable | ₨ 3,000 | |
Number of times and the product of excess of minimum threshold revenue of the acquiree | 2 | |
Wockhardt Limited [Member] | Major business combination [member] | Bottom of range [member] | Scenario Forecast One [Member] | ||
Disclosure of Business Transfer Agreement with Wockhardt Limited [Line Items] | ||
Estimated revenue from sales of the acquiree post business combination | ₨ 4,800 |
Restructuring of pharmaceutic_2
Restructuring of pharmaceutical services business (Details Textual) ₨ in Millions | 12 Months Ended |
Mar. 31, 2020INR (₨) | |
Pharmaceutical Services Business [Member] | |
Disclosure of Restructuring of pharmaceutical services business [Line Items] | |
Increase in deferred tax asset | ₨ 1,264 |
Organizational structure (Detai
Organizational structure (Details) | 12 Months Ended | |
Mar. 31, 2020 | ||
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],[2] |
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% | |
Aurigene Pharmaceutical Services Limited (from September 16, 2019) [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [1],[3] |
beta Institut gemeinnutzige GmbH [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [4] |
betapharm Arzneimittel GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [4] |
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 | |
Chirotech Technology Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | United Kingdom | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [3],[5] |
Dr. Reddy's Research Foundation [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Dr. Reddy's Employees ESOS Trust (from July 27, 2018) | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
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% | [6] |
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% | [6] |
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% | [5] |
Dr. Reddy's Laboratories Canada, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Canada | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Dr. Reddy's Laboratories Chile SPA. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Chile | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | [6] |
Dr. Reddy's Laboratories Japan KK [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Japan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Dr Reddys Laboratories Kazakhstan LLP [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Kazakhstan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | [7] |
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% | [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% | [6] |
Dr. Reddy's Laboratories Philippines Inc. (from May 9, 2018) | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Philippines | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | [6] |
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 Taiwan Limited [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Taiwan | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Dr. Reddy's Laboratories Tennessee, LLC (until October 1, 2018) | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Thailand | |
Dr. Reddy's Laboratories (Thailand) Limited (from June 13, 2018) | ||
Disclosure of subsidiaries [line items] | ||
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% | [6] |
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% | [6] |
Dr. Reddy's SRL [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Italy | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [8] |
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% | [6] |
Dr. Reddy's Laboratories SAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | [9] |
Dr. Reddy's Venezuela, C.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Venezuela | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | [6] |
DRANU LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 50.00% | [3],[10] |
DRES Energy Private Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 26.00% | [11] |
DRL Impex Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [12] |
Dr. Reddys Laboratories B.V. (formerly Euobridge Consulting B.V.) [Member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [2] |
Idea2Enterprises (India) Pvt. Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | India | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | |
Imperial Credit Private 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 Comany Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | China | |
Percentage of Direct/Indirect Ownership Interest | 51.33% | [13] |
Lacock Holdings Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Cyprus | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
OOO Dr. Reddy's Laboratories Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Russia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
OOO DRS LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Russia | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [14] |
Promius Pharma LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S.A. | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [7] |
Reddy Holding GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Germany | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Reddy Netherlands B.V. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Netherlands | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Reddy Pharma Iberia SA [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Spain | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
Reddy Pharma Italia S.R.L. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Italy | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [15] |
Reddy Pharma SAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | France | |
Percentage of Direct/Indirect Ownership Interest | 100.00% | [6] |
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% | |
[1] | Indirectly owned through Aurigene Discovery Technologies Limited. | |
[2] | Indirectly owned through Reddy Netherlands B.V. (from March 28, 2019), formerly a subsidiary of Dr. Reddy’s Research and Development B.V. | |
[3] | Entities under liquidation. | |
[4] | Indirectly owned through Reddy Holding GmbH. | |
[5] | Indirectly owned through Dr. Reddy’s Laboratories (EU) Limited. | |
[6] | Indirectly owned through Dr. Reddy’s Laboratories SA. | |
[7] | Indirectly owned through Dr. Reddy’s Laboratories Inc. | |
[8] | Indirectly owned through Reddy Pharma Italia S.R.L. | |
[9] | Indirectly owned through Reddy Netherlands B.V. | |
[10] | DRANU LLC is consolidated in accordance with guidance available in IFRS 10. | |
[11] | Accounted in accordance with IFRS 11, “Joint Arrangements”. | |
[12] | Indirectly owned through Idea2Enterprises (India) Private Limited. | |
[13] | Kunshan Rotam Reddy Pharmaceutical Co. Limited is a subsidiary as per Indian Companies Act, 2013, 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. | |
[14] | Indirectly owned through OOO Dr. Reddy's Laboratories Limited. | |
[15] | Indirectly owned through Lacock Holdings Limited. |
Organizational structure (Det_2
Organizational structure (Details Textual) | 12 Months Ended |
Mar. 31, 2020 | |
Kunshan Rotam Reddy Pharmaceuticals Co. Limited [Member] | |
Organizational structures [Line Items] | |
Proportion of ownership interest in subsidiary | 51.33% |