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AUDITOR'S REPORT

Aurobindo Pharma Ltd.

You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 63893.99 Cr. P/BV 2.07 Book Value (₹) 531.65
52 Week High/Low (₹) 1592/1010 FV/ML 1/1 P/E(X) 18.33
Bookclosure 08/08/2025 EPS (₹) 60.02 Div Yield (%) 0.00
Year End :2025-03 

Sr.

No.

Key Audit Matter

Auditor's Response

1

Revenue recognition — Refer to note 2.2(c) and 20
of the Standalone Financial Statements:

The Company recognises revenue from sale of
pharmaceutical products based on the shipping
terms which varies with different customers which
defines the timing of the transfer of control to
the customer.

For revenue recognized during the period near to the
Balance Sheet date, it is essential to ensure that the
control of goods have transferred to the customers.

Dispatch of goods to the customer's location
happens from multiple locations including factories,
warehouses, and third-party locations.

Principal audit procedures performed:

• Evaluated the Company's revenue recognition policy
and assessed compliance with the Indian Accounting
Standard (Ind AS).

• Obtained an understanding of the revenue recognition
process and evaluated the design and tested the
implementation and operating effectiveness of the
Company's Internal controls around the timely and
accurate recording of sales transactions including
controls around the identification and reversal of
cut-off sales.

• The Company recognises the revenue upon the
transfer of control of goods to the customer in the
ERP system. Accordingly, we have tested the General
information technology controls around the system
including access and change management controls
of such ERP system.

Sr.

No.

Key Audit Matter

Auditor's Response

We consider Cut-off of Revenue recognition

Basis of the sales recorded during the year,

from sale of pharmaceutical products as a key

performed a lead time analysis to arrive at the

audit matter due to the varied shipping terms,

average lead time taken for transfer of control to

which define the timing of transfer of control and

the customers from the date of dispatch, against the

satisfaction of performance obligation.

various shipping terms.

We selected samples from invoices recorded during
such lead sales time immediately before the balance
sheet date and obtained evidence of delivery to
support the revenue recognition/reversal of revenue
as applicable

2

Assessment of impairment of investments in

Principal audit procedures performed:

and unsecured loans given to subsidiaries —
Refer to note 2.1(d)(v), 4 and 5 of the Standalone
Financial Statements.

Evaluated the design, tested the implementation
and operating effectiveness of the internal controls
over impairment assessment process, including

The carrying value of investments in and unsecured

those over the forecasts and the selection of the

loans given to certain subsidiaries is ' 37,213 million.

appropriate discount rate.

The Company performs annual assessment to

Evaluated the impairment indicator assessment

identify any indicators of impairment. Based

performed by the Company considering quantitative

on internal and external factors considered,

and qualitative factors.

where such evidence exists, impairment loss is
determined and recognised in accordance with note
2.1(d)(v) of accounting policies to the Standalone
Financial Statements.

Evaluated and challenged management's
assumptions such as growth rates forming basis
of forecasted financials, terminal growth rate, and
discount rate for their appropriateness based on

The Company's evaluation of impairment of

our understanding of the business of the respective

its investments involves comparison of their

investments including past results and external

recoverable value to their corresponding carrying

factors such as industry trends and forecasts.

values. The Company used the discounted cash
flow model to estimate recoverable values, which
requires management to make estimates and
assumptions related to forecasts of future Revenues,
operating margins, and discount rates. Changes in
these assumptions could have a significant impact

Performed sensitivity analysis around these key
estimates to ascertain the extent of change in those
assumptions that either individually or collectively
would be required for the investments and loans
tested were to be impaired.

on either the recoverable value, the amount of any

Tested the mathematical accuracy of the model to

impairment charge, or both.

conclude that the model is accurately calculating the

We have considered this as a Key Audit Matter due

value in use.

to the materiality of the investment, and because the

Evaluated the adequacy of disclosures made in the

Company's assessment of the recoverable values
involves judgements around the future results
of the business and the discount rates applied to
future cash flow forecasts.

Standalone Financial Statements.

We have audited the accompanying Standalone
Financial Statements of
Aurobindo Pharma Limited (the
"Company"), which comprise the Balance Sheet as at
March 31, 2025, and the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement
of Cash Flows and the Statement of Changes in Equity
for the year ended on that date, and notes to the financial
statements, including a summary of material accounting
policies and other explanatory information.

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information
required by the Companies Act, 2013 (the "Act") in
the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act, ("Ind AS") and
other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2025,
and its profit, total comprehensive income, its cash flows
and the changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on
Auditing ("SA"s) specified under Section 143(10) of the
Act. Our responsibilities under those Standards are
further described in the Auditor's Responsibility for the
Audit of the Standalone Financial Statements section
of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India ("ICAI") together with
the ethical requirements that are relevant to our audit of
the Standalone Financial Statements under the provisions
of the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI's Code of Ethics. We
believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our audit opinion
on the Standalone Financial Statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements of the current period.
These matters were addressed in the context of our audit
of the Standalone Financial Statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined
the matters described below to be the key audit matters
to be communicated in our report.

INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR'S REPORT THEREON

• The Company's Board of Directors is responsible
for the other information. The other information
comprises the information included in the
Management discussion & analysis, Board's Report,
Business Responsibility and Sustainability report and
Report on Corporate Governance including annexure,
but does not include the consolidated financial
statements, Standalone Financial Statements and
our auditor's report thereon.

• Our opinion on the Standalone Financial Statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.

• In connection with our audit of the Standalone
Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the Standalone Financial Statements or our
knowledge obtained during the course of our audit
or otherwise appears to be materially misstated.

• I f, based on the work we have performed, we conclude

that there is a material misstatement of this other
information, we are required to report that fact. We
have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND BOARD
OF DIRECTORS FORTHE STANDALONE FINANCIAL
STATEMENTS

The Company's Board of Directors is responsible
for the matters stated in Section 134(5) of the Act
with respect to the preparation of these Standalone
Financial Statements that give a true and fair view of
the financial position, financial performance including
other comprehensive income, cash flows and changes in
equity of the Company in accordance with the accounting
principles generally accepted in India, including Ind AS
specified under Section 133 of the Act.This responsibility
also includes 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 frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements,
management and Board of Directors are responsible for
assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intend to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.

The Company's Board of Directors is also responsible for
overseeing the Company's financial reporting process.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF
THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due 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 audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the
basis of these Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement
of the Standalone Financial Statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal financial
controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Under Section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether
the Company has adequate internal financial controls
with reference to Standalone Financial Statements in
place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the management.

• Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to
the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions
may cause the Company to cease to continue as a
going concern.

• Evaluate the overall presentation, structure and
content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone
Financial Statements represent the underlying
transactions and events in a manner that achieves
fair presentation.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually
or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
Standalone Financial Statements may be influenced.
We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in

evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the Standalone
Financial Statements.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal financial controls
that we identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by Section 143(3) of the Act, based on our

audit we report that:

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

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

c) The Balance Sheet, the Statement of Profit and
Loss including Other Comprehensive Income,
the Statement of Cash Flows and Statement of
Changes in Equity dealt with by this Report are
in agreement with the books of account.

d) In our opinion, the aforesaid Standalone
Financial Statements comply with the Ind AS
specified under Section 133 of the Act.

e) On the basis of the written representations
received from the directors as on March 31,2025
taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,

2025 from being appointed as a director in terms
of Section 164(2) of the Act.

f) With respect to the adequacy of the internal
financial controls with reference to Standalone
Financial Statements of the Company and the
operating effectiveness of such controls, refer
to our separate Report in "Annexure A'. Our
report expresses an unmodified opinion on
the adequacy and operating effectiveness of
the Company's internal financial controls with
reference to Standalone Financial Statements.

g) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of Section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the
Company to its directors during the year is in
accordance with the provisions of Section 197
of the Act.

h) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended in our opinion and to the
best of our information and according to the
explanations given to us:

i. The Company has disclosed the impact of
pending litigations on its financial position
in its Standalone Financial Statements
- Refer Note 30C to the Standalone
Financial Statements;

ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses.

iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company.

iv. (a) The Management has represented

that, to the best of its knowledge and
belief, as disclosed in the note 51(v) to
the financial statements no funds have
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the Company to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries"),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, directly

or indirectly lend or invest in other
persons or entities identified in
any manner whatsoever by or on
behalf of the Company ("Ultimate
Beneficiaries") or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(b) The Management has represented,
that, to the best of its knowledge and
belief, as disclosed in the note 51(vi)
to the financial statements, no funds
have been received by the Company
from any person(s) or entity(ies),
including foreign entities ("Funding
Parties"), with the understanding,
whether recorded in writing or
otherwise, that the Company shall,
directly or indirectly, lend or invest
in other persons or entities identified
in any manner whatsoever by or
on behalf of the Funding Party
("Ultimate Beneficiaries") or provide
any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come
to our notice that has caused us to
believe that the representations under
sub-clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b) above,
contain any material misstatement.

v. The Company has not declared or paid
any dividend during the year and has not
proposed final dividend for the year.

vi. Based on our examination, which included
test checks, the Company has used
accounting software for maintaining its
books of account for the financial year ended
March 31, 2025 which have the feature of
recording audit trail (edit log) facility and
the same has operated throughout the
year for all relevant transactions recorded
in the software. Further, during the course
of our audit, we did not come across any
instance of the audit trail feature being
tampered with.

Additionally audit trail has been preserved
by the Company as per the statutory
requirements for record retention.

2. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order") issued by the Central
Government in terms of Section 143(11) of the Act,
we give in "Annexure B" a statement on the matters
specified in paragraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells

Chartered Accountants
Firm's Registration No. 008073S

C Manish Muralidhar

Partner

Place: Hyderabad Membership No. 213649

Date: May 26, 2025 UDIN: 25213649BMOENK1096

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