Your Directors take pleasure in presenting the Twenty-Seventh Annual Report and
Company's Audited Financial Statements for the financial year ended March 31, 2019.


Financial Results


  

    

    

    

    

    
(र in Million)
  
  

    

    
Standalone
    
Consolidated
  
  

    

    
Year ended March 31, 2019
    
Year ended March 31, 2018*
    
Year ended March 31, 2019
    
Year ended March 31, 2018#
  
  

    
Revenue from operations
    
103,032.1
    
90,062.5
    
290,659.1
    
264,894.6
  
  

    
Profit before exceptional item and tax
    
19,338.3
    
12,307.5
    
50,245.8
    
44,294.8
  
  

    
Exceptional Item
    
12,143.8
    
9,505.0
    
12,143.8
    
9,505.0
  
  

    
Profit before tax but after exceptional item
    
7,194.5
    
2,802.5
    
38,102.0
    
34,789.8
  
  

    
Tax expense:
    

    

    

    

  
  

    
- Current Tax
    
15.5
    
20.2
    
8,039.6
    
6,628.0
  
  

    
- Deferred Tax Charge/(Credit)
    
(987.0)
    
(274.1)
    
(2,030.8)
    
(62.1)
  
  

    
- Deferred tax charge/(Credit)-exceptional
    
-
    
-
    
-
    
2,544.5
  
  

    
Profit after tax
    
8,166.0
    
3,056.4
    
32,093.2
    
25,679.4
  
  

    
Profit after Tax but before Share in profit/(loss) of associates/joint ventures
    
-
    
-
    
32,093.2
    
25,679.4
  
  

    
Share of (loss) of associates/joint ventures [Net]
    
-
    
-
    
(14.6)
    
(254.4)
  
  

    
Profit for the year before non-controlling interests
    
-
    
-
    
32,078.6
    
25,425.0
  
  

    
Non-controlling interests
    
-
    
-
    
5,424.4
    
4,468.0
  
  

    
Profit for the year attributable to owners of the Company
    
-
    
-
    
26,65172 
    
20,957.0 
  
  

    
Total other Comprehensive Income
    
1,837.4 
    
566,9 
    
16,799.9 
    
8,282.5 
  
  

    
Total Comprehensive Income for the year attributable to:
    
10,003.4 
    
3,623,3 
    
48,878.5 
    
30,657.5 
  
  

    
- Owners of the Company
    
10,003.4
    
3,623.3
    
42,054.1
    
25,711.8
  
  

    
- Non-Controlling Interest
    
-
    
-
    
6,524.4 
    
4,945.7 
  
  

    
Opening balance in Retained Earnings
    
120,370.0
    
124,860"0 
    

    
389,258.5 
  
  

    
Additions:
    

    

    

    

  
  

    
Amount available for appropriation
    
8,273.3 
    
3,490.8
    
26,804.4 
    
21,454.7 
  
  

    
Less: Appropriations
    

    

    

    

  
  

    
Dividend on Equity Shares
    
4,791.6"'"
    
7,977.4
    
4,791.6
    
7,977.4 
  
  

    
Dividend Distribution Tax
    
5.6""
    
3.4
    
984,9 
    
1,624.0 
  
  

    
Transfer to various Reserves:
    

    

    

    

  
  

    
- Capital redemption Reserve
    
-
    
-
    
-
    
-
  
  

    
- Debenture redemption Reserve
    
-
    
-
    
(1,250.0)
    
(833.4)
  
  

    
- Capital reserve
    
-
    
-
    
-
    
-
  
  

    
- Buy-back of equity shares by overseas subsidiaries
    
-
    
-
    
2,013.1 
    
2,168.1 
  
  

    
- Adjustment on account of Ind AS 115
    
-
    
-
    
6,493.0
    
-
  
  

    
- Legal reserve
    
-
    
-
    
203,9 
    
2.5 
  
  

    
- General reserve
    
-
    
-
    
43.0 
    
-
  
  

    
Closing balance in Retained Earnings
    
123,846.1 
    
120,370.0 
    
333,301,9 
    
319,7775 
  


*Refer Note 56(11) of Standalone Financial Statements 'Refer Note 66 of Consolidated
Financial Statements


Dividend

Your Directors have recommended a dividend of र2.75 (Rupees two and paise seventy
five only) per equity share of र1/- each [previous year र2.00/- per equity share of
र1/- each] for the year ended March 31, 2019, subject to the approval of the equity
shareholders at the ensuing 27th Annual General Meeting of the Company.

The dividend payout is in accordance with the Company's Dividend Distribution Policy.
The Dividend Distribution Policy of the Company is provided as रAnnexure-A' to this
Report. The policy is also available on the website of the Company and can be accessed
through the web link: http:// www.sunpharma.com/policies .


Changes in Capital Structure

During the year under review, the Company has allotted 11790 equity shares of र1/-
each under Sun Employee Stock Option Scheme-2015 thereby the paid up share capital of the
Company increased to र2,399,334,970/- (Rupees Two Billion Three Hundred Ninety Nine
Million Three Hundred Thirty Four Thousand Nine Hundred Seventy only) as on March 31,
2019.


Scheme of Arrangements

1. During the year, the Hon'ble National Company Law Tribunal of Gujarat at Ahmedabad
had vide its Order dated October 31, 2018 sanctioned the Scheme of Arrangement among the
Company and Sun Pharma Global FZE ("Transferor Company"), a wholly owned
subsidiary of the Company and their respective members and creditors ("Scheme")
whereby the Specified Undertaking (as defined in the Scheme) of Transferor Company stands
demerged into the Company w.e.f. December 01, 2018 with appointed date being April 01,
2017. No consideration was paid pursuant to the Scheme.

2. During the year, the Board of Directors at its meeting held on May 25, 2018 had
approved a Composite Scheme of Arrangement among the Company and Sun Pharma (Netherlands)
B.V. (Transferee Company-1) and Sun Pharmaceutical Holdings USA Inc.

(Transferee Company-2), wholly owned subsidiaries of the Company and their respective
members and creditors ("Composite Scheme"), for demerger of Specified Investment
Undertaking -1 (as defined in the Composite Scheme) of the Company into Sun Pharma
(Netherlands) B.V. and Specified Investment Undertaking -2 (as defined in the Composite
Scheme) of the Company into Sun Pharmaceutical Holdings USA Inc. The Hon'ble National
Company Law Tribunal of Gujarat, at Ahmedabad ("NCLT") has vide its Order dated
April 11, 2019 dispensed with convening of meeting of secured creditors of the Company and
ordered to convene the meeting of equity shareholders and unsecured creditors of the
Company on June 04, 2019 to approve the Composite Scheme with appointed date as April 01,
2017 or such other date as may be agreed between the Transferee Company-1, Transferee
Company-2 and the Company and approved by the NCLT. Pursuant to said Composite Scheme, no
consideration shall be paid. This demerger shall enable the Company to address the risks
and policies, ability to strategise the remaining business for long term growth,
consolidation and creation of shareholder value, etc.


Extract of Annual Return

The extract of Annual Return as required under sub-section (3) of Section 92 of the
Companies Act, 2013 (‘the Act') in form MGT-9 is provided as ‘Annexure-B' to
this Report and is also made available on the website of the Company at
https://www.sunpharma.com/investors/annualreports .


Subsidiaries/ Joint Ventures/ Associate Companies

The statement containing the salient features of the Financial Statements of the
Company's subsidiaries/ joint ventures/ associate companies is given in Form AOC-1,
provided in Notes to the Consolidated Financial Statements, forming part of the Annual
Report.

The highlights of performance of subsidiaries, joint ventures and associate companies
and their contribution to the overall performance of the Company during the financial year
is given under ‘Annexure A' to the Consolidated Financial Statements forming part of
the Annual Report.

Details pertaining to companies that became subsidiaries/ joint ventures/associates and
those that ceased to be the subsidiaries/joint ventures/associates of the Company during
the year are provided in Note no. 39 of the Notes to the Consolidated Financial
Statements, forming part of the Annual Report.


Directors and Key Managerial Personnel

Mr. Sailesh T. Desai and Mr. Kalyanasundaram Subramanian, Whole-time Directors of the
Company retire by rotation at the ensuing 27th Annual General Meeting of the Company and
being eligible offer themselves for reappointment.

During the year, Mr. Gautam Doshi was appointed as an Additional Independent Director
of the Company with effect from May 25, 2018. Mr. Vivek Chaand Sehgal and Mr. Gautam Doshi
have been appointed as Independent Directors of the Company for a term of 5 (five) years
each effective from November 14, 2017 and May 25, 2018 upto November 13, 2022 and May 24,
2023 respectively by the members at the 26th Annual General Meeting of the Company held on
September 26, 2018.

Pursuant to Regulation 17(1A) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("Listing Regulations") the consent of the members by way of
Special Resolution, was obtained at the 26th Annual General Meeting of the Company for
continuation as Director beyond the age of seventy five years, of Mr. Israel Makov,
Non-Executive Director and the Chairman of the Company, as he had attained an age of 79
years.

Mr. S. Mohanchand Dadha, Mr. Keki Mistry and Mr. Ashwin Dani, Independent Directors
having completed second term of 2 (two) years of their respective appointments on the
conclusion of the 26th Annual General Meeting of the Company, all the three aforementioned
Independent Directors retired and ceased to be Directors of the Company w.e.f. the
conclusion of the 26th Annual General Meeting of the Company held on September 26,

2018. The Board of Directors places on record their appreciation for contribution made
by Mr. S. Mohanchand Dadha, Mr. Keki Mistry and Mr. Ashwin Dani during their tenure as
Independent Directors of the Company.

Mr. Sudhir V. Valia has stepped down from the position of Whole-time Director of the
Company w.e.f. May 29, 2019. However, he shall continue as a Non-Executive and
Non-Independent Director of the Company.

Appropriate resolutions for the re-appointment of the Directors are being placed for
your approval at the ensuing 27th Annual General Meeting. Your Directors recommend the
same for approval by the members at the ensuing 27th Annual General Meeting of the
Company.


Declaration by Independent Directors

The Company has received declarations from all the Independent Directors of the Company
confirming that they meet with the criteria of independence as prescribed under Section
149(6) of the Act and under Listing Regulations.

In the opinion of the Board, the Independent Directors of the Company fulfil the
conditions specified in the Act and Listing Regulations and are independent of the
management.


Remuneration Policy for Directors, Key Managerial Personnel and Other Employees and
Criteria for Appointment of Directors

For the purpose of selection of any Director, the Nomination and Remuneration Committee
identifies persons of integrity who possess relevant expertise, experience and leadership
qualities required for the position. The Committee also ensures that the incumbent fulfils
such criteria with regard to qualifications, positive attributes, independence, age and
other criteria as laid down under the Act, Listing Regulations or other applicable laws.
The Board has, on the recommendation of the Nomination and Remuneration Committee framed a
policy on remuneration of Directors, Key Managerial Personnel and other Employees.

The salient features of the Remuneration Policy of the Company are as under:

(A) Guiding Principles for remuneration: The Company shall remunerate all its personnel
reasonably and sufficiently as per industry benchmarks and standards. The remuneration
shall be commensurate to retain and motivate the human resources of the Company.

The compensation package will, inter alia, take into account the experience of the
personnel, the knowledge & skill required including complexity of his job, work
duration and risks associated with the work, and attitude of the employee like positive
outlook, team work, loyalty etc.

(B) Components of Remuneration: The following will be the various remuneration
components which may be paid to the personnel of the Company based on the designation and
class of the personnel.

a) Fixed compensation: The fixed salaries of the Company's personnel shall be
competitive and based on the individual personnel's responsibilities and performance.

b) Variable compensation: The personnel of the Company may be paid remuneration by way
of variable salaries based on their performance evaluation. Such variable salaries should
be based on the performance of the individual against his short and long term performance
objectives and the performance of the Company.

c) Share based payments: The Board may, on the recommendation of the Nomination and
Remuneration Committee, issue to certain class of personnel a share and share price
related incentive program.

d) Non-monetary benefits: Senior management personnel of the Company may, on a case to
case basis, be awarded customary non-monetary benefits such as discounted salary
advance/credit facility, rent free accommodation, Company cars with or without chauffer,
share and share price related incentive, reimbursement of electricity and telephone bills
etc.

e) Gratuity/group insurance: Personnel may also be awarded to group insurance and other
key man insurance protection. Further as required by the law necessary gratuity shall be
paid to the personnel.

f) Commission: The directors may be paid commission if approved by the shareholders.
The shareholders may authorise the Board to declare commission to be paid to any director
of the Board.

C) Entitlement: The authority to determine the entitlement to various components as
aforesaid for each class and designation of personnel shall be as follows


  

    
Designation/Class
    
To be determined by
  
  

    
Director
    
Board of Directors on the recommendation of the Nomination and Remuneration Committee
    within the limits approved by the shareholders
  
  

    
Key Managerial Personnel and Senior Management
    
Board of Directors on recommendation of the Nomination and Remuneration Committee
  
  

    
Other employees
    
Human Resources Head
  


Note: For the purpose of this Policy, the term 'Senior Management' shall have the same
meaning as defined under the SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015

The complete Policy as approved by the Board is available on the website of the Company
and can be accessed through the web link: http://www.sunpharma.com/policies .


Familiarisation programme for the Independent Directors

In compliance with the requirements of Regulation 25(7) of the Listing Regulations, the
Company has put in place a Familiarisation Programme for the Independent Directors to
familiarise them with the Company, their roles, rights, responsibilities in the Company,
nature of the industry in which the Company operates, business model etc.

The details of the Familiarisation Programme conducted are available on the website of
the Company www.sunpharma . com and can be accessed through the web link: http:// www.sunpharma.com/policies
.


Number of meetings of the Board

The Board of Directors of the Company met 5 (Five) times during the year under review
on May 25, 2018; August 14, 2018; September 26, 2018; November 13, 2018 and February 12,
2019. The particulars of attendance of the Directors at the said meetings are provided in
detail in the Corporate Governance Report, which forms a part of this Report. The
intervening gap between the meetings was within the period prescribed under the Act and
Listing Regulations.


Evaluation of performance of the Board, its Committees and Individual Directors

During the year, the evaluation of the annual performance of individual Directors
including the Chairman of the Company and Independent Directors, Board and Committees of
the Board was carried out under the provisions of the Act, relevant Rules, and the
Corporate Governance requirements as prescribed under Regulation 17 of Listing Regulations
and based on the circular issued by SEBI dated January 5, 2017 with respect to Guidance
Note on Board Evaluation. The Nomination and Remuneration Committee had approved the
criteria for the performance evaluation of the Board, its Committees and individual
Directors as per the SEBI Guidance Note on Board Evaluation.

The Chairman of the Company interacted with each Director individually, for evaluation
of performance of the individual Directors. The evaluation for the performance of the
Board as a whole and of the Committees were conducted by way of questionnaires.

In a separate meeting of Independent Directors, performance of Non Independent
Directors and performance of the Board as a whole was evaluated. Further, they also
evaluated the performance of the Chairman of the Company, taking into account the views of
the Executive Directors and Non-executive Directors.

The performance of the Board was evaluated by the Board after seeking inputs from all
the Directors on the basis of various criteria such as structure and diversity of the
Board, competency of Directors, experience of Director, strategy and performance
evaluation, secretarial support, evaluation of risk, evaluation of performance of the
management and feedback, independence of the management from the Board etc. The
performance of the Committees was evaluated by the Board after seeking inputs from the
Committee members on the basis of criteria such as mandate and composition, effectiveness
of the committee, structure of the committee and meetings, independence of the committee
from the Board and contribution to decisions of the Board. The Nomination and Remuneration
Committee reviewed the performance of the individual Directors on the basis of the
criteria such as qualification, experience, knowledge and competency, fulfilment of
functions, availability and attendance, initiative, integrity, contribution and commitment
etc., and the Independent Directors were additionally evaluated on the basis of
independence, independent views and judgement etc. Further the evaluation of Chairman of
the Board, in addition to the above criteria for individual Directors, also included
evaluation based on effectiveness of leadership and ability to steer the meetings,
impartiality, etc.

The Chairman and other members of the Board discussed upon the performance evaluation
of every Director of the Company and concluded that they were satisfied with the overall
performance of the Directors individually and that the Directors generally met their
expectations of performance.

The summary of the feedback from the members were thereafter discussed in detail by the
members. The respective Director, who was being evaluated, did not participate in the
discussion on his/her performance evaluation and had exited the meeting for the said
discussion. During the discussion in respect of performance of Mr. Dilip Shanghvi and Mr.
Sudhir Valia, both Mr. Dilip Shanghvi and Mr. Sudhir Valia had exited the meeting.

The Chairman additionally interacted with each Director individually, for evaluation of
performance of all Individual Directors and Mr. Dilip Shanghvi, along with other Directors
had evaluated the performance of Mr. Israel Makov as the Chairman and as an Individual
Director. They were satisfied with the overall performance of the Directors individually
and that the Directors generally met their expectations of performance.


Human Resources

We have more than 32,000 talented employee base spread across multiple geographies in
various sales offices, R&D centers, 40 + manufacturing locations, Regional offices and
Corporate office. We believe our employees are pivotal to all the initiatives that drive
us to realise our future plans. Human Resource agenda encourages high performance culture
with focus on Employee safety & welfare, Employee development & Productivity. Your
Directors would also like to take this opportunity to express their appreciation for the
dedication and commitment of the employees of the Company and look forward to their
continued contribution.

Information as per Section 197 (12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in
‘Annexure-C' to this Report. Further, the information pertaining to Rule 5(2) &
5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
pertaining to the names and other particulars of employees is available for inspection at
the Registered office of the Company during business hours and pursuant to the second
proviso to Section 136(1) of the Act, the Report and the accounts are being sent to the
members excluding this. Any shareholder interested in obtaining a copy of the same may
write to the Company Secretary/Compliance Officer at Corporate office or Registered office
address of the Company.


Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013

Your Company strongly believes in providing a safe and harassment free workplace for
each and every individual working for the Company through various interventions and
practices. It is the continuous endeavour of the Management of the Company to create and
provide an environment to all its employees that is free from discrimination and
harassment including sexual harassment. The Company has adopted a policy on prevention,
prohibition and redressal of sexual harassment at workplace in line with the provisions of
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 and the Rules made thereunder. The Company has arranged various interactive awareness
workshops in this regard for the employees at the manufacturing sites, R & D set ups
& corporate office during the year under review. The Company has submitted the Annual
Returns to the local authorities, as required under the above mentioned Act.

During the financial year ended March 31, 2019, three complaints pertaining to sexual
harassment were received and the same were resolved by the Company. There are no
complaints pending as at the end of the financial year.

Your Company has complied with provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013


Auditors Statutory Auditors

S R B C & Co LLP, Chartered Accountants, (Firm's Regn. No. 324982E/ E300003), were
appointed as the Statutory Auditors of the Company for a period of 5 (five) years at the
25th Annual General Meeting of the Company to hold office till the conclusion of the 30th
Annual General Meeting of the Company.

The Auditor's Report for the financial year ended March 31, 2019, has been issued with
an unmodified opinion, by the Statutory Auditors.


Secretarial Auditor

The Board had appointed KJB & Co. LLP, Practicing Company Secretaries, Mumbai to
undertake the Secretarial Audit of the Company for the financial year ended March 31,
2019. The Secretarial Audit Report in the Form No. MR-3 for the year is provided as
‘Annexure-D' to this Report.

The Secretarial Audit Report for the year does not contain any qualification,
reservation or adverse remark.


Cost Auditor

The Board has appointed Messrs B M Sharma & Associates, Cost Accountants, Pune
(Firm's Registration No. 100537) as Cost Auditor of the Company for conducting Cost Audit
in respect of Bulk Drugs & Formulations of your Company for the financial year
2019-20.

The Company is required to maintain Cost Records as specified by the Central Government
under Section 148(1) of the Act and accordingly, such accounts and records are made and
maintained by the Company.


Secretarial Standards

The Company has complied with the applicable Secretarial Standards as amended from time
to time.


Loans, Guarantees & Investments

The particulars of loans, guarantees and investments have been disclosed in the
Financial Statements.


Related Party Transactions

The policy on Related Party Transactions as approved by the Board is available on the
website of the Company and can be accessed through the web link http://www.sunpharma.com/ policies.
All contracts/arrangements/transactions entered by the Company during the year under
review with the related parties were in the ordinary course of business and on an arm's
length basis.

As required under Section 134(3)(h) of the Act, details of transactions entered with
related parties under the Act exceeding ten percent of the annual consolidated turnover as
per the last audited financial statements are given in Form AOC-2 provided as
‘Annexure-E' to this Report.


Audit Committee Composition

The details pertaining to composition of Audit Committee are included in the Corporate
Governance Report, which forms part of this Report.


Risk Management

The Board of Directors has constituted a Risk Management Committee which is entrusted
with the responsibility of overseeing various strategic, operational and financial risks
that the organisation faces, along with the adequacy of mitigation plans to address such
risks. The Corporate Governance Report, which forms part of this report, contains the
details of Risk Management Committee of the Company. There is an overarching Risk
Management Policy in place has been reviewed and approved by the Board.

The Company has developed & implemented an integrated Enterprise Risk Management
Framework through which it identifies monitors, mitigates & reports key risks that
impacts its ability to meet the strategic objectives. The Company's ERM framework is based
on the recommendations by the Committee of Sponsoring Organisations (COSO) to further the
organisation's endeavor to strengthen ERM framework and processes using best practices.
The ERM team engages with all Function heads to identify internal and external events that
may have an adverse impact on the achievement of Company's objectives and periodically
monitors changes in both internal and external environment leading to emergence of a new
threat/risk. These risks are captured in the form of a risk register with all the relevant
information such as risk description, root cause and any existing mitigation plans. The
risk register is refreshed annually.

Risks are categorised into Strategic, Financial, Operational, Compliance &
Reputational. ERM risk assessments covering Company's various businesses and functions are
a key input for the annual internal audit program. During FY 2018-19, the ERM team focused
on reviewing effectiveness of actions taken to mitigate certain business, cyber security
and other operational risks.


Internal Financial Controls

The Company believes that internal control is a necessary prerequisite of Governance
and that freedom should be exercised within a framework of checks and balances.

The Company has a well-established internal control framework, which is designed to
continuously assess the adequacy, effectiveness and efficiency of financial and
operational controls. The management is committed to ensure an effective internal control
environment, commensurate with the size and complexity of the business, which provides an
assurance on compliance with internal policies, applicable laws, regulations and
protection of resources and assets.


Global Internal Audit

An independent and empowered Global Internal Audit Function (GIA) at the corporate
level carries out risk-focused audits across all businesses (both in India and overseas),
to ensure that business process controls are adequate and are functioning effectively.
These audits include reviewing finance, operations, safeguarding of assets and compliance
related controls. Areas requiring specialised knowledge are reviewed in partnership with
external subject matter experts.

GIA's functioning is governed by the Audit Charter, duly approved by the Audit
Committee of the Board, which stipulates matters contributing to the proper and effective
conduct of audit. The audit processes are fully automated on a ‘SunScience' tool
which integrates audit, Internal Financial Controls (IFC) and Enterprise Risk Management
(ERM) modules.

The Company's operating management closely monitors the internal control environment
and ensures that the recommendations of GIA are effectively implemented.

The Audit Committee of the Board monitors performance of GIA, periodically reviews key
findings and provides strategic guidance.


Corporate Social Responsibility

In compliance with the requirements of Section 135 of the Act read with the Companies
(Corporate Social Responsibility) Rules, 2014, the Board of Directors have constituted a
Corporate Social Responsibility (CSR) Committee. The details of membership of the
Committee and the meetings held are detailed in the Corporate Governance Report, forming
part of this Report. The contents of the CSR Policy of the Company as approved by the
Board on the recommendation of the CSR Committee are available on the website of the
Company and can be accessed through the web link: http://www.sunpharma.com/policies . The
average net profit of the Company in the three immediately preceding financial years is
negative, therefore the Company was not required to spend on CSR activities during the
year, however, the Company has voluntarily spent on CSR activities.

The annual report on CSR activities containing details of voluntary expenditure
incurred by the Company and brief details on the CSR activities are provided in
‘Annexure-F' to this Report.


Public Deposits

The Company has not accepted any deposit from the Public during the year under review,
under the provisions of the Act and the rules framed thereunder.


Management Discussion and Analysis

The Management Discussion and Analysis as prescribed under Part B of Schedule V read
with Regulation 34(3) of the Listing Regulations is provided in a separate section and
forms part of this Report.


Corporate Governance Report

Report on Corporate Governance and Certificate of the Auditors of the Company regarding
compliance of the conditions of Corporate Governance as stipulated in Part C of Schedule V
of the Listing Regulations, are provided in a separate section and forms part of this
Report.


Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The information on conservation of energy, technology absorption and foreign exchange
earnings and outgo as stipulated under Section 134(3)(m) of the Act read with Rule 8 of
the Companies (Accounts) Rules, 2014, is provided as ‘Annexure-G' to this Report.


Employees' Stock Option Schemes

The Company presently has only one Employees' Stock Option Scheme, which is inherited
from erstwhile Ranbaxy Laboratories Limited ("Ranbaxy"). The scheme is through
Direct Route and has been named as Sun Pharma Employee Stock Option Scheme-2015. The
scheme was adopted by the Company with certain amendments consequent upon merger of
erstwhile Ranbaxy into the Company. The Scheme is in compliance with Securities and
Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.

Disclosure with respect to the Employees' Stock Option Scheme in compliance with
Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
is available on the Company's website and can be accessed at:
http://www.sunpharma.com/pdflist/all-documents .


Significant and Material Orders Passed by the Regulators or Courts or Tribunals

There are no significant and material orders passed by the regulators or courts or
tribunals which impact the going concern status and Company's operations in future.


Whistle Blower Policy/Vigil Mechanism

To create enduring value for all stakeholders and ensure the highest level of honesty,
integrity and ethical behaviour in all its operations, the Company has adopted a
‘Global Whistle Blower Policy' for Sun Pharmaceutical Industries Limited and all its
subsidiaries, in addition to the existing Global Code of Conduct that governs the actions
of its employees. Further details on vigil mechanism of the Company are provided in the
Corporate Governance Report, forming part of this Report.


Directors' Responsibility Statement

Pursuant to the requirements under Section 134(5) read with Section 134(3)(c) of the
Act, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

a) in the preparation of the annual accounts for the financial year ended March 31,
2019, the applicable accounting standards have been followed and there are no material
departures from the same;

b) the Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at March 31, 2019 and of the profit of
the Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by the
Company and that such internal financial controls are adequate and were operating
effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.


Consolidated Accounts

The consolidated financial statements for the year ended March 31, 2019 have been
prepared in accordance with Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015.


Credit Rating

ICRA Ltd. has reaffirmed the highest credit rating of ‘[ICRA] A1+'/‘[ICRA]
AAA(Stable)' for the bank facilities, long term/ short term borrowings and commercial
paper programs of the Company.

Further, CRISIL Ltd. has also reaffirmed the highest credit rating of ‘CRISIL A1+
and CRISIL AAA/Stable' for short term & long term bank facilities and commercial paper
programs of the Company.


Business Responsibility Reporting

The Business Responsibility Report of the Company for the year ended March 31, 2019,
forms part of the Annual Report and is also made available on the website of the Company
at http://www.sunpharma.com/pdflist/all-documents .


Acknowledgements

Your Directors wish to thank all stakeholders, employees and business partners,
Company's bankers, medical professionals and business associates for their continued
support and valuable cooperation.

The Directors also wish to express their gratitude to investors for the faith that they
continue to repose in the Company.


  

    
For and on behalf of the Board of Directors
  
  

    
Place: Mumbai
    
Israel Makov
  
  

    
Date: May 28, 2019
    
Chairman