D Explanations:

a In “Face Value [*]”, figures in Indian Rupees unless stated otherwise. b In “Nos. [**]” figures of previous year are same unless stated in [ ].

[1] In earlier years, the Company had made provision for impairment of ' 2,038 Million and ' 3 Million in the value of investment in the equity shares of Sentynl Therapeutics Inc. and Dialforhealth Greencross Limited, respectively.

[2] 24,500,000 shares purchased during the year from Zydus Animal Health and Investments Limited, a wholly owned subsidiary.

[3] During the year, the Company has entered into an arrangement with Zydus Family Trust [ZFT], a related party, whereby Zydus Foundation would cease to be subsidiary of the Company from the effective date as per the arrangement. Zydus Foundation is a Section 8 not for profit Company exclusively engaged in charitable activities.

The said arrangement is subject to necessary approvals which are under process at the year end.

[4] The Company had invested in equity shares of Zydus Pharmaceuticals UK Limited, United Kingdom [Zydus UK].

Further, Zydus UK entered into Sale and Purchase Agreement [SPA] on October 31, 2023, for acquisition of 100% stake of LiqMeds Worldwide Limited, LiqMeds Limited, Medsolutions (Europe) Limited, LiqMeds Lifecare Limited and LM Manufacturing Limited [collectively referred as “LiqMeds Group”]. The said transaction of acquisition of shares of LiqMeds Group was consummated on November 6, 2023. The cost of acquisition was GBP 68 Million [equivalent to ' 7,201 Million] as upfront consideration. Over and above upfront consideration, additional amounts will be paid, in tranches, over subsequent three calendar years, depending on achievement of certain agreed milestones.

[5] Onconova Therapeutics Inc. has changed its name to Traws Pharma Inc. [Traws] with effect from April 3, 2024. Traws has announced reverse common stock split of 1 common stock for every 25 common stocks held as on September 20, 2024.

[6] Pieris Pharmaceuticals Inc. [Pieris] has announced reverse stock split of 1 common stock for every 80 common stocks held as on April 23, 2024. Pieris has merged with Palvella Therapeutics Inc. [Palvella] with exchange ratio of 0.30946 common stock of Pieris common stock for each common stock of Palvella.

In respect of goods where provision had been made for expected returns within the expiry period, the Company recognises an asset, i.e., right to the returned saleable goods [included in inventories] for the products expected to be returned in saleable condition. The Company initially measures this asset at the original carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of returned goods. The Company updates the measurement of the asset recorded for any revision to its expected level of returns, as well as any further decrease in value of the returned products. The value of such goods is ' 75 [as at March 31, 2024: ' 45] Million.

[$] The Board of Directors, at its meeting held on February 9, 2024 approved a proposal to buyback 5,970,149 fully paid-up equity shares amounting to ' 6,000 Million [Buyback Size, excluding transaction costs and applicable taxes] at a price of ' 1,005 per share from the eligible equity shareholders. The buyback was offered to all eligible equity shareholders including the promoters and promoter group of the Company on proportionate basis through the “Tender offer” route in accordance with Securities and Exchange Board of India [Buyback of Securities] Regulations, 2018, as amended and other applicable laws. The Buyback period was from February 9, 2024 to March 14, 2024. The Company had bought back and extinguished 5,970,149 equity shares, comprising of 0.59% of pre-buyback paid up equity share capital of the Company on March 15, 2024. The buyback resulted in a cash outflow of ' 7,250 Million [including applicable taxes and transaction costs]. The Company has utilized its General Reserve and Retained Earnings for Buyback of shares. In accordance with Section 69 of the Companies Act, 2013, the Company has credited “Capital Redemption Reserve” with an amount of ' 6 Million, being amount equivalent to the face value of the Equity Shares bought back as an appropriation from General Reserve.

A Terms of Repayment for Unsecured Borrowings: a Loans from Related Parties:

i Loan of ' 27,996 Million from one of the subsidiary companies will be repaid within 3 years and ' 13,122 Million will be repaid within 5 years from the date of first disbursement. Interest on loan is payable on half yearly basis. The outstanding amount as at March 31, 2025 is ' 41,118 Million [as at March 31, 2024: 32,834].

ii Loan of ' 1,000 Million from one of the subsidiary companies will be repaid within 3 years from the date of first disbursement Interest on loan is payable on half yearly basis. The outstanding amount as at March 31, 2025 is ' 1,000 Million [as at March 31, 2024: 1,000].

iii Loan of ' 11,074 Million from one of the subsidiary companies will be repaid within 3 years from the date of first disbursement. Interest on loan is payable on half yearly basis. The outstanding amount as at March 31, 2025 is ' 11,074 Million [as at March 31, 2024: 21,720].

The interest rates on the above loans are in the range of Treasury Bill/ G Sec plus 35 to 150 bps.

Defined benefit plan and long term employment benefit A General description:

Leave wages [Long term employment benefit]:

The leave encashment scheme is administered through Life Insurance Corporation of India's Employees' Group Leave Encashment cum Life Assurance [Cash Accumulation] Scheme. The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is recognised [net of the fair value of plan assets as at the balance sheet date] at present value of the defined obligation at the balance sheet date based on the actuarial valuation carried out by an independent actuary using projected unit credit method.

Gratuity [Defined benefit plan]:

The Company has a defined benefit gratuity plan. Every employee who has completed continuous services of five years or more gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary increment risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's debt investments.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

B The Net Deferred Tax charge of ' 873 Million [Previous Year reversal of ' 1,360 Million] has been recognised in the Statement of Profit and Loss.

C The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

D The Company has long term capital losses of ' 2,821 [as at March 31, 2024: 3,702] Million which are available for offset for eight years against future long term capital gains of the Company. These losses will expire in March 2032.

E For the financial year ended March 31, 2024, the Company had computed the provision for income tax assuming that the option permitted under section 115BAA of the Income Tax Act, 1961 would be exercised while filing the income tax return for the said financial year. Accordingly, the Company had recognised provision for income tax for the year ended March 31, 2024 and re-measured its deferred tax assets and liabilities basis the rate prescribed in the said section. The final decision with respect to the election of the said option under section 115BAA of the Income Tax Act, 1961 was required to be taken by the Company at the time of filing the income tax return for the year ended March 31, 2024. However, during the year, while filing the income tax return for the financial year ended March 31, 2024, the Company has decided not to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 and has filed the return as per the normal provisions of the Income Tax Act, 1961. Accordingly, the Company has re-measured its tax provisions, the full impact of this change has been recognised in the statement of Profit and Loss for the year ended March 31, 2025 [Refer Note-38 A].

[*] Working Capital Loans which are repayable on demand, are secured by hypothecation of inventories of all types, save and except stores and spares relating to plant and machineries [consumable stores and spares], including goods in transit, bills receivables and book debts. The value of such current assets is ' 101,139 [as at March 31, 2024: ' 64,274] Million. Quarterly statements, including revised statements, of current assets filed by the Company with bank are in agreement with the books of accounts.

[**] Packing Credit loans in ' [PCRE] are payable during August, 2025 to September, 2025.

The outstanding amount of loans as at March 31, 2025 is ' 8,700 [as at March 31, 2024: ' 6,181] Million.

[***] Loans from others of ' 21,495 [as at March 31, 2024: Nil] Million are secured by Government Securities.

The interest rates on the above loans are in the range of 3 Month Treasury Bill Plus 25 bps to 35 bps and overnight interbank

rate.

NOTE: 43-FINANCIAL INSTRUMENTS:

A Fair values hierarchy:

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices [unadjusted] in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data relying as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

C Fair value of instruments measured at amortised cost:Financial Assets:

The carrying amounts of trade receivables, loans and advances to related parties, other financial assets, cash and cash equivalents, investment in preference shares and compulsorily convertible debentures are considered to be the approximately equal to the fair values.

Financial Liabilities:

Fair values of loans from banks, other financial liabilities and trade payables are considered to be approximately equal to the carrying values.

D Valuation process and technique used to determine fair value:

Specific valuation techniques used to value financial instruments include the use of quoted market prices for similar instruments. The valuation has been derived using the Present Value technique under Income Approach. The valuation includes significant unobservable inputs like Weighted Average Cost of Capital [WACC], revenue forecast, etc.

Financial Assets:

The carrying amounts of trade receivables, loans and advances to related parties and other financial assets [other than referred above], cash and cash equivalents are considered to be the approximately equal to the fair values.

Financial Liabilities:

Fair values of loans from banks, other financial liabilities and trade payables are considered to be approximately equal to the carrying values.

B Risk Management:

The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the standalone financial statements.

The Company's risk management is done in close co-ordination with the board of directors and focuses on actively securing the Company's short, medium and long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

Credit risk arises from the possibility that counter party may not be able to settle its obligations as agreed. The Company is exposed to credit risk from investment in preference shares measured at amortised cost, loans and advances to related parties, trade receivables, bank deposits and other financial assets. The Company periodically assesses the financial reliability of the counter party taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual customer limits are set accordingly.

i Investments at Amortised Cost : They are strategic investments in the normal course of business of the company.

ii Bank deposits : The Company maintains its Cash and cash equivalents and Bank deposits with reputed and highly rated banks. Hence, there is no significant credit risk on such deposits.

iii Loans to related parties : They are given for business purposes. The Company reassesses the recoverability of loans periodically.

Interest recoveries from these loans are regular and there is no event of defaults.

iv Trade Receivables: The Company trades with recognized and credit worthy third parties. It is the Company's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an on-going basis with the result that the Company's exposure to credit losses is not significant.

There are no significant credit risks with related parties of the Company. The Company is exposed to credit risk in the event of non-payment by customers. Credit risk concentration with respect to trade receivables is mitigated by the Company's large customer base. Adequate expected credit losses are recognized as per the assessments. No single third party customer contributes to more than 10% of outstanding accounts receivable [excluding outstanding from subsidiaries] as at March 31, 2025 and March 31, 2024.

The Company has used lifetime expected credit loss [ECL] model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers. Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical credit loss experience and is adjusted for forward looking information. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables.

a Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

b Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which it operates. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities:

The tables below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

The Company's policy is to minimize interest rate cash flow risk exposures on long-term financing. As at March 31, 2025, the Company is exposed to changes in market interest rates through borrowings at variable interest rates. The Company's investments in Fixed Deposits are at fixed interest rates.

e Price risk:

Exposure:

The Company's exposure to price risk arises from investments in Equity and Mutual Funds, Bonds, Government Securities held by the Company and classified in the balance sheet as fair value through OCI and at fair value through profit or loss respectively. To manage its price risk arising from these investments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Company enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and so a qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Company uses the dollar offset method to assess effectiveness. There was no hedge ineffectiveness in any of the periods presented above.

NOTE: 45-CAPITAL MANAGEMENT:

The Company' s capital management objectives are: a To ensure the Company's ability to continue as a going concern b To provide an adequate return to shareholders c To maintain an optimal capital structure to reduce the cost of capital.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

NOTE: 46-EXCEPTIONAL ITEMS:

Pursuant to closure of business operations by Zydus Noveltech Inc., a wholly owned subsidiary of the Company in the USA, the Company had recognised a loss of ' 86 Million during the previous year.

b The Company has not received any funds from any persons or entities, including foreign entities [Funding Party] 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.

The Company has complied with relevant provisions of the Foreign Exchange Management Act, 1999 [42 of 1999] and Companies Act, 2013 and the transactions are not violative of the Prevention of Money-Laundering act, 2002 [15 of 2003]. c The Company has used accounting software for maintaining its books of accounts for the year ended on March 31, 2025 which has a feature of recording audit trail [edit log] facility and the same has been operational throughout the year for all relevant transactions recorded in the software.

Audit trail has been preserved by the Company as per the statutory requirements for record retention. d The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

e No proceedings have been initiated or pending against the Company for holding any benami property under the Benami

Transactions [Prohibition] Act, 1988 (45 of 1988) and the rules made thereunder. f The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.

g The Company does not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the

statutory period.

h The Company has complied with the number of layers prescribed under clause [87] of section 2 of the Act read with Companies [Restriction on number of Layers] Rules, 2017.

i No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

j The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 [such as, search or survey or any other relevant provisions of the Income Tax Act, 1961].

NOTE: 50-DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES:

The Company did not have any material transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the current and previous financial year.

NOTE: 51:

Pursuant to the Business Transfer Agreement [BTA] entered into by the Company with Watson Pharma Private Limited [Watson] on November 29, 2022, the transaction of acquisition of one of the business undertakings of Watson on a going concern basis by way of slump sale, at a lump-sum cash consideration of ' 468 Million by the Company had been completed on August 8, 2023.

Business undertaking of Watson is engaged in the business of developing, manufacturing, marketing and sale of APIs. This acquisition will help the Company to expand its presence in the APIs space through increase in product pipeline and manufacturing capacity.

The excess of the fair value of assets acquired over the acquisition cost paid has been attributed to Capital Reserve.

The standalone financial statement for the year ended March 31, 2024 include the operations of the acquired business undertaking of Watson for the period from August 8, 2023.

NOTE: 52-ASSETS CLASSIFIED AS HELD FOR SALE:

The Board of Directors of the Company, at its meeting held on May 2, 2024, approved to enter into a Share Purchase Agreement [SPA] amongst the Company, Bayer Zydus Pharma Private Limited [BZPPL] and Bayer Pharmaceuticals Private Limited [BPPL] to sell its entire holding of 12,499,999 equity shares [representing 24.99998% of the total paid-up share capital] of BZPPL to BPPL. The said transaction of transfer of shares was completed on May 6, 2024. Post completion of the said transaction, the Company does not hold any shares of BZPPL.

In accordance with Ind AS 105 “Non-Current Assets held for Sale and Discontinued Operations”, investment in BZPPL was classified as “Assets held for sale” from Investments and disclosed separately at the lower of its carrying value and fair value less costs to sell as at March 31, 2024.

NOTE: 53:

Figures of previous year have been regrouped/ reclassified to conform to current year's classification.