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Lupin Ltd.

BSE: 500257 Sector: Health care
NSE: LUPIN ISIN Code: INE326A01037
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OPEN 715.55
PREVIOUS CLOSE 718.50
VOLUME 19035
52-Week high 972.50
52-Week low 583.05
P/E 43.03
Mkt Cap.(Rs cr) 32,717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 715.55
CLOSE 718.50
VOLUME 19035
52-Week high 972.50
52-Week low 583.05
P/E 43.03
Mkt Cap.(Rs cr) 32,717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lupin Ltd. (LUPIN) - Auditors Report

Company auditors report

To the Members of Lupin Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Lupin Limited(the "Company") and its employee welfare trust which comprise the standalonebalance sheet as at 31 March 2022 and the standalone statement of profit and loss(including other comprehensive income) standalone statement of changes in equity andstandalone statement of cash flows for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its loss and other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Description of Key Audit Matters:

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional 3udgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

The key audit matter How the matter was addressed In our audit
1. Revenue Racognltlon:
Refer note 1 B(k) of significant accounting policies and note 37 in standalone financial statements.
Revenue from the sale of pharmaceutical products is recognized when control over goods is transferred to a customer. The actual point in time when revenue is recognised varies depending on the specific terms and conditions of the sales contracts entered into with customers. The Company has a large number of customers operating in various geographies and sales contracts with customers have distinct terms relating to the recognition of revenue the right of return and price adjustments. To obtain sufficient and appropriate audit evidence our principal audit procedures included amongst others the following: Compared the accounting policies in respect of revenue recognition with applicable accounting standards to test for compliance; Tested the design implementation and operating effectiveness of the Company's internal controls including general IT controls and key IT application controls over recognition of revenue;
We identified the recognition of revenue from sale of products as a key audit matter considering:
Performed substantive testing of selected samples of revenue transactions recorded during the year:
• Revenue is a key performance indicator for the Company. Accordingly there could be pressure to meet the expectations of investors/other stakeholders and/or to meet revenue targets stipulated in performance incentive schemes for a reporting period. We have considered that there is a risk of fraud related to revenue being overstated by recognition in the wrong period or before control had passed during the year and at period end. For a sample of year-end sales verified contractual terms of sales invoices/contracts. shipping documents and acknowledged delivery receipts for those transactions including management assessment and quantification of any sales reversal for undelivered goods; and
Testeo any unusual non-standard manual journal entries impacting revenue reccgmseo during the year.
2. Uncertain tax positions (UTPs):
Refer note 1 B(i) & (o) of significant accounting policies and notes 34 & 44 in standalone financial statements.
The Company is subject to complexities arising from various tax positions on deductibility of expenses as well as allowability of tax incentives/exemptions. To obtain sufficient and appropriate audit evidence our principal audit procedures included amongst others the following:
These are subject to periodic challenges by local tax authorities leading to protracted litigations. There are a number of open tax matters under litigation with tax authorities over a number of years. Tested the design and operating effectiveness of the management review control over ascertaining completeness and adequacy of provision/disclosures of UTPs;
The range of possible outcomes for provisions and contingencies can be wide. Judgement is required to estimate the tax exposures and contingencies. Evaluated the adequacy of related provisions in consultation with tax specialists by considering changes to business and tax legislation:
Provision for current tax. assessment/judgment of UTPs has been identified as a key audit matter due to the inherent complexity in the underlying tax laws and the extent of judgement involved in developing these estimates. Made relevant enquires and read correspondence with authorities where relevant:
Verified the calculation for current tax provision.
Analyzed the rationale for any release increase or continued provision during the year; and
Examined Management?s judgments with respect to probability of outflow arising from outstanding litigations after considering the status of recent tax assessments audits and enquiries recent judicial pronouncements and judgments in similar matters. Also considered developments in the tax environment and outcome of past litigations.
3. Contingencies and Litigations Refer note 1 B(o) of significant accounting policies and note 34 in standalone financial statements.
The preparation of the estimate of the provision for outstanding litigation claims and assessments involves subjective judgments or uncertainties . which requires special audit consideration because of the likelihood and potential magnitude of misstatements of the provision claims and assessments. These litigations are inherent to the business of the Company. Based on Company?s assessment of the possible outcome of these litigations the same has been recognized as liability or disclosed as contingent Liability. We assessed the appropriateness of the provisions for litigations and claims and obtained sufficient and appropriate audit evidence. Our principal audit procedures included the following: Tested the design and operating effectiveness of the Company's controls over assessment of contingencies claims and litigations; We have assessed the summary of litigation matters provided by management and held discussions with the Company?s legal counsel where required for gaining an understanding of the outstanding matters;
Verified management?s judgments with respect to probability of outflow arising out of litigation after considering the status of litigation recent judicial pronouncements and judgments in similar matters etc;
We have obtained and substantively tested evidence to support the decisions and rationale for provisions held or the decisions not to record provisions including correspondence with legal counsel and with relevant regulatory authorities;
We have assessed the assumptions against third party data (legal opinions) where available and assessed the estimates against historical trends; and
Evaluated adequacy of disclosures given in the standalone financial statements.

Other Information

The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed and based on the workdone/audit report of other auditors we conclude that there is a material misstatement ofthis other information we are required to report that fact.

We have nothing to report in this regard.

Management?s and Board of Directors?/Board of Trustees?Responsibilities for the Standalone Financial Statements

The Company?s Management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs loss and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.The respective Management and Board of Directors of the companies/ Board of Trustees ofthe employee welfare trust ("Trust") are responsible for maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of each company/trust and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; making3udgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the respectiveManagement and Board of Directors/ Board of Trustees are responsible for assessing theability of each company/trust to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe respective Board of Directors/ Board of Trustees either intends to liquidate thecompany/trust or to cease operations or has no realistic alternative but to do so.

The respective Board of Directors/Board of Trustees are alsoresponsible for overseeing the financial reporting process of each company/trust.

Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements

Our ob3ectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional3udgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Management andBoard of Directors.

• Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting in preparation of standalonefinancial statements and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. A. As required by Section 143(3) of the Act based on our audit andon the consideration of report of the other auditors on separate financial statements ofsuch employee welfare trust as were audited by other auditors we report to the extentapplicable that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this Report are in agreement withthe books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31 March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

B. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous and based on the consideration of the reports of the other auditors on separatefinancial statements of the employee welfare trust:

a) The Company has disclosed the impact of pending litigations as at 31March 2022 on its financial position in its standalone financial statements - Refer Note34 to the standalone financial statements.

b) The Company has made provision as required under the applicable lawor accounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts - Refer Note 52 to the standalone financial statements.

c) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

d) (i) The management has represented that to the best of itsknowledge and belief as disclosed in note 57(M) to the standalone accounts no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other persons or entitiesincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall:

• directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries") by or onbehalf of the Company or

• provide any guarantee security or the like to or on behalf ofthe Ultimate Beneficiaries.

(ii) The management has represented that to the best of its knowledgeand belief as disclosed in note 57(M) to the standalone accounts no funds have beenreceived by the Company from any persons or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall:

• directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries") by or onbehalf of the Funding Party or

• provide any guarantee security or the like from or on behalf ofthe Ultimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause

(d) (i) and (d) (ii) contain any material misstatement.

e) The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.

(C) With respect to the matter to be included in the Auditor's Reportunder Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us and based on the reports of the statutory auditors of such employee welfare trustthe remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us

Annexure - A to the Independent Auditor?s Report on StandaloneFinancial Statements - 31 March 2022

(Referred to our report of even date)

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has a regularprogram of physical verification of its Property Plant and Equipment by which allproperty plant and equipment are verified in a phased manner over a period of threeyears. In accordance with this program a portion of the property plant and equipment hasbeen physically verified by the management during the year.

In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and basedon our examination of the records of the Company the title deeds of immovable propertiesof land and building which are freehold as disclosed in Note 2 to the standalonefinancial statements are held in the name of the Company except for the following whichare not held in the name of the Company:

Description of property Gross carrying value (as at 31 March 2022) Held in the name of Whether promoter director or their relative or employee Period held- indicate range where appropriate Reason for not being held in the name of the Company. Also indicate if in dispute
Freehold land located in Maharashtra admeasuring 7 Hectare and 70.91 Acre 29.6 Lupin Laboratories Limited No Since 2001 The title deeds are in the name of the erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon?ble Bombay High Court order dated 13 3une 2001
Freehold building located in Maharashtra admeasuring 8038 sq. ft. 133.9 Lupin Laboratories Limited No Since 2001 The title deeds are in the name of erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon?ble Bombay High Court order dated 13 3une 2001

In respect of immovable properties of land and buildings that have beentaken on lease and disclosed in Note 2 to the standalone financial statements the leaseagreements are in the name of the Company except the following:

(Rs in million)

Description of property Gross carrying value (as at 31 March 2022) Held in the name of Whether promoter director or their relative or employee Period held- indicate range where appropriate Reason for not being held in the name of the Company. Also indicate if in dispute
Leasehold building located in Delhi admeasuring 1628 sq.ft 2.8 Lupin Laboratories Limited No Since 2001 The lease is in the name of erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon'ble Bombay High Court order dated 13 3une 2001

In respect of immovable properties of land and buildings which aredisclosed as Plant Property and Equipment in the standalone financial statements theoriginal documents for the following assets are not available for verification.

(Rs in million)

Particulars of the land and building Gross Block (as at 31 March 2022)
Building located in Maharashtra 7.5
Land located in Uttarakhand 0.3

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property Plant and Equipment (including Right of Use assets) or intangible assets orboth during the year.

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

(ii) (a) The inventory except goods in transit and inventories lyingwith third parties has been physically verified by the Management during the year.Inventories lying with third parties have been substantially confirmed by them as at theyear-end and for goods-in-transit subsequent evidence of receipts has been linked withinventory records. In our opinion the frequency of such verification is reasonable andprocedures and coverage as followed by management were appropriate. No discrepancies werenoticed on verification between the physical stocks and the book records that were morethan 10% in the aggregate of each class of inventory.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate from banksor financial institutions on the basis of security of current assets. In our opinion thequarterly returns or statements filed by the Company with such banks or financialinstitutions are in agreement with the books of account of the Company.

(iii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not providedany security to companies firms limited liability partnership or any other partiesduring the year. The company has not made any investments in or provided any guarantees tofirms LLP's or other parties and has not granted any loans to companies firms or LLP.The Company has made investments in and provided guarantee to companies and granted loansto other parties in respect of which the requisite information is as below:

(a) Based on the audit procedures carried on by us and as per theinformation and explanations given to us the Company has provided loans and stoodguarantee as below:

(Rs in million)

Particulars Loans Guarantees
Aggregate amount during the year
- Subsidiaries - 1744.3
- 3oint ventures - -
- Associates - -
- Others 32.5 -
Balance outstanding as at balance sheet date
- Subsidiaries - 37087.7
- 3oint ventures - -
- Associates - -
- Others 24.8 -

(b) According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the investments made and the termsand conditions of the grant of loans and guarantees provided during the year are primafacie not pre3udicial to the interest of the Company.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company in the case of loans given inour opinion the repayment of principal and payment of interest has been stipulated and therepayments or receipts have been regular. Further the Company has not given any advancein the nature of loan to any party during the year.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there is no overdue amount formore than ninety days in respect of loans given. Further the Company has not given anyadvances in the nature of loans to any party during the year.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there is no loan or advance inthe nature of loan granted falling due during the year which has been renewed or extendedor fresh loans granted to settle the overdues of existing loans given to same parties.

(f) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not grantedany loans or advances in the nature of loans either repayable on demand or withoutspecifying any terms or period of repayment

(iv) According to the information and explanation given to us and onthe basis of our examination of records of the Company the Company has complied with theprovisions of Section 185 and 186 of the Companies Act 2013 ("the Act") inrespect of the investments made and guarantees provided as applicable. The Company hasnot granted any loans or provided any security to the parties covered under Section 185and 186 of the Act.

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

(vi) We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by Central Government for maintenance of cost recordsunder Section 148 (1) of the Act in respect of its manufactured goods and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not carried out a detailed examination of the records with aview to determine whether these are accurate or complete.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company in our opinion amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingProvident fund Employees' state insurance Income tax duty of Customs Goods and Servicetax Cess and other statutory dues have generally been regularly deposited during the yearby the Company with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident fund Employees' state insuranceIncome tax duty of Customs Goods and Service tax Cess Sales tax Value added taxService tax and other statutory dues were in arrears as at 31 March 2022 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no dues of Providentfund Employees' state insurance Income tax Sales tax Value added tax Service taxduty of Customs Goods and Service tax duty of Excise and Cess which have not beendeposited with the appropriate authorities on account of any dispute other than thosementioned in Annexure I to this report.

(viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notdefaulted in repayment of loans and borrowing or in the payment of interest thereon to anylender.

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

(c) According to the information and explanations given to us by themanagement the Company has not obtained any term loans during the year.

Accordingly clause 3(ix)(c) of the Order is not applicable.

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

(e) According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or 3oint ventures as defined under the Act.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries 3oint ventures or associatecompanies as defined under the Act.

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

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

(xi) (a) Based on examination of the books and records of the Companyand according to the information and explanations given to us no fraud by the Company oron the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Act has been filed by the auditors inForm ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year while determining the nature timing and extent ofour audit procedures.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company.

Accordingly clause 3(xii) of the Order is not applicable to theCompany.

(xiii) In our opinion and according to the information and explanationsgiven to us the transactions with related parties are in compliance with Section 177 and188 of the Act where applicable and the details of the related party transactions havebeen disclosed in the [standalone] financial statements as required by the applicableaccounting standards.

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

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

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

(xvi) (a)/(b) The Company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934. Accordingly clauses 3(xvi)(a) and3(xvi)(b) of the Order are not applicable to the Company.

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

(d) According to the information and explanations provided to us theGroup (as per the provisions of the Core Investment Companies (Reserve Bank) Directions2016) does not have more than one CIC.

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

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

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

(xx) (a) In our opinion and according to the information andexplanations given to us there is no unspent amount under sub-section (5) of Section 135of the Act pursuant to any pro3ect other than ongoing pro3ects. Accordingly clause3(xx)(a) of the Order is not applicable.

(b) In respect of ongoing pro3ects the Company is in the process oftransferring the unspent amount of Rs. 64 million for the year ended 31 March 2021 to aSpecial Account as per section 135(6) of the said Act.

Amounts of dues of Income tax sales tax Value added tax Service taxduty of Customs duty of Excise which have not been deposited with the appropriateauthorities on account of any dispute.

(Rs in million)

Name of the Statute Nature of Dues Forum where dispute is pending Period to which amount relates Amount demanded Amount deposited under protest Amount unpaid
Income tax Act 1961 Income tax Commissioner of Income tax (Appeals) 2005 - 07 2013 - 16 1252.4 - 72.1
Income Tax Appellate Tribunal (ITAT) [including Rs 370.1 million consequent to department preferring appeals against the orders of the Appellate Authority passed in favour of the company] 2008 - 12 1038.7 340.4
High Court [consequent to department preferring appeal against the order of the Appellate Authority passed in favour of the company] 1993 - 94 2013 - 14 29.7 29.7
Central Excise Act 1944 Excise duty De-bonding matters Customs Excise and Service Tax Appellate Tribunal (CESTAT) 2010 & 2012 418.1 371.1 47.0
Service Tax Matters 2005-08 47.9 47.9
Excise Duty 2015 - 18 54.2 - 54.2
CGST Act 2017 Goods and Service Tax Goods and Service Tax Appellate Tribunal (GSTAT) 2017-18 437.0 - 437.0
Commissioner of Goods and Service Tax (Appeal) 2017 0.6 - 0.6
Central and various States? Sales Tax Acts and various States? Value Added Tax Acts Sales tax and Value added tax Sales Tax Tribunal 2000 - 01 32.5 5.84 26.7
2003 - 06
2009 - 10
2010 - 11
2017 - 18
Supreme Court 2000 - 01 0.5 - 0.5
High Court 2002 - 03 11.6 6.3 5.3
2004 - 05
Commissioner of Sales Tax (Appeal) 2001 - 03 1.6 0.1 1.5
2004 - 05
2014 - 15
3oint Commissioner 2001 - 04 12.0 7.4 4.5
2005 - 06
2013 - 14
Deputy Commissioner 1994 - 95 0.2 - 0.2
2015 - 16
Additional Commissioner 1994 - 95 14.5 3.5 11.0
2010 - 11
2015 - 16
2016 - 17
2017 - 18
Assistant Commissioner 2003 - 04 0.3 - -
Foreign Trade (Development & Regulations) Act 1992 Customs duty Additional Director General of Foreign Trade 2010-2011 0.5 - 0.5

Annexure - B to the Independent Auditor?s report on the standalonefinancial statements of Lupin Limited for the year ended 31 March 2022

Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013

(Referred to in paragraph 2 (A) (f) under 'Report on Other Legal andRegulatory Requirements? section of our report of even date)

Opinion

We have audited the internal financial controls with reference tofinancial statements of Lupin Limited ("the Company") as of 31 March 2022 incon3unction with our audit of the standalone financial statements of the Company for theyear ended on that date.

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

Management?s Responsibility for Internal Financial Controls

The Company?s management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company?spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained andwhether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s 3udgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to FinancialStatements

A company?s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany?s internal financial controls with reference to financial statements includethose policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the Standalone financial statements.

Inherent Limitations of Internal Financial controls with Reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also pro3ections of any evaluation of the internal financialcontrols with reference to Standalone financial statements to future periods are sub3ectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No. 101248 W/W-100022
Venkataramanan Vishwanath
Partner
Place: Mumbai Membership No. 113156
Date: 18 May 2022 UDIN: 22113156A3EQCH2251

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