Annual Report 1

Making a difference
to patients.
Our inspiration for
Cipla Limited
Annual Report innovation.
2017-18
Table of Contents
02-77 ‘‘The pharma industry

is in so many ways
a custodian of the
Corporate Overview healthcare needs of
Our First Principles the world, and your
02 Company will do
Financial Highlights
03 whatever best possible
Operational Highlights
04 for healthcare in the
CSR Highlights
Global Reach 06 years ahead.’’
Chairman's Message 08 Chairman's Message
Executive Vice-Chairperson’s 10 Page No: 10-11 Dr Y. K. Hamied
Message MD & GCEO's Message 12
Our People, Our Pride 14
Beyond Drugs and Devices 16
Making Medicines, Making a Difference 18 ‘‘Your Company has and
Board of Directors 20 always will put patients
Management Council 22 first, and this inspires
Ten-Year Highlights 23 every aspect of our
Corporate Information 24 work.’’
About this Report 25
Our Strategy towards an Integrated Future 26 Samina Vaziralli
Our Business Model 28
39
Six Capitals as per Integrated Reporting Framework 42 Executive Vice-Chairperson’s Message
Page No: 12-13
78-166 ‘‘Serving our patients is

Statutory Reports both a privilege and a
Management Discussion and Analysis 78 responsibility, and we
Board’s Report 95 remember this every
Business Responsibility Report 126 single day.’’
Report on Corporate Governance 132
Umang Vohra
167-302
MD & GCEO's Message
Page No: 14-15
Financial Statements
Standalone Financial Statements
with Auditor’s Report 167
Consolidated Financial Statements
with Auditor’s Report 227
Salient Features of Financial Statements of
Subsidiaries and Associates 300
Glossary of Abbreviations
303 Scan this code with a QR reader app on your
smartphone or tablet and know more about us
Making a Our Inspiration for Innovation…
Difference For us at Cipla, the phrases ‘patient-centricity’ and ‘innovation’
to Patients contain a rich and permanent synergy. Our patient-centricity is
innovative, and our innovation is always patient-centric.
Our core technical operations have always been the backbone

of our work. Cipla was conceived in 1935 to manufacture
world-class medicines. Our decision to develop bulk drugs in
India in the 1960s was born out of our long-term vision for
pharma in the country. Our pioneering feats in inhalation
therapy in the 1970s was the result of our recognition of the
future of respiratory medicine. We broke new ground for the
domestic pharma industry with US FDA approvals in the
1980s. In the last two decades, we have diversified into newer
therapies, capabilities, digitisation, automation and analytics,
technology platforms, ‘firsts’ in combination drugs and
devices, dosage forms, geographies, and strategies. 44
manufacturing sites,
50+ dosage forms, 1500+ products in 80+ markets. For us, each of
these figures is an indication of the number of lives around the
world that we touch every single day.
In turn, patient needs directly dictate our direction. It was the

pain of a long-time employee that triggered our search for a
breakthrough in oral iron chelation for thalassaemia patients in
India. Our single- minded fight for patient accessibility led to
our paradigm-changing offer in HIV/AIDS. The sighting of a
mother’s struggle to put together multiple components resulted in
a combination device for paediatric asthma. We continue to
maintain a business that is dedicated to
bringing essential drugs to patients in rural Africa. It is this
commitment to our patients that drives us to think out-of-the-box
every single day.
We have always viewed ourselves as a member of society.

Patient- awareness campaigns, projects in skilling and disaster
response, primary healthcare and corrective surgeries,
internships and education, all keep us rooted in the
community, wherever we are present. The next big disruptive
idea could come from anyone anywhere around the world,
which is why we have taken it upon ourselves to fund, mentor
and incubate the best future-shaping business ideas in
healthcare from within and outside Cipla.
Corporate citizenship has, and always will be, an integral
part of Cipla’s body of work.
Nothing short of the best internal practices will help us take our
patient focus to newer heights. Our focus on talent, continuous
learning,
work culture, and development of leaders of the future provides
our associates the opportunity not just to perform tasks but to build
careers. As a responsible organisation, the health of the
Company is of primary importance to us, and Cipla’s initiatives
in this area are as cutting-edge as our drugs.
To reach the top is a difficult climb. To stay at the top as a

partner of choice for over eight decades has required us to
evolve constantly and to excel consistently. Perhaps most
importantly for
this zero-error
industry, it has
required humility
that exhorts us to
think big, and also
to perfect the
routine and the
mundane, so that
we deliver on our
promises to our
stakeholders, and
fulfill our purpose of
‘Caring for Life’.
Corporate Overview 02-77 Statutory Reports 78-166 Financial Statements 167-302
OneCipla Credo
We are a
PURPOSE - INSPIRED
RESPONSIBILITY - CENTERED
INNOVATION - DRIVEN
EXCELLENCE - FOCUSSED
INTEGRITY & TRUST - ANCHORED
global pharmaceutical firm that consistently Cares for Life and
delivers on its commitment to all our stakeholders- patients,
regulators, customers, partners, employees, investors and
community.
This is our OneCipla Credo
OUR
FIRST
PRINCIPLES
PATIENTS
Focus on impact, and double the number PEOPLE
of patients we serve globally
INSPIRATIONA
Transform to be an innovation-led L TALENT
enterprise focusing on unmet patient MINDSET
needs
PERFORMANCE
LEADERSHIP IN CORE MARKETS ACHIEVEMENT ORIENTATION
Be among the top 3 in home markets SYSTEMS THINKING
and legacy emerging markets
Be among the fastest growing in
HEALTH
emerging economies and Speciality INNOVATION &
business CHANGE
ENTERPRISE
FIRST
COMMERCIAL EXCELLENCE
Accelerated revenue growth and
sustainable margin expansion
Financial Highlights
All figures in H crore unless
specified
15,219
14,630
13,790 21.0%
11,345 19.1%
18.6%
10,173 18.0%
16.9%
FY14 FY15
FY161 FY17
FY18 FY14
FY15 FY16
FY17
TOTAL INCOME FROM OPERATIONS EBITDA FY18
MARGIN
PAT MARGIN
13.6%
8.0%
10.4% 7.1%
9.9% 6.6%
9.3% 6.3%
5.0%
6.9%
INVESTMENT 2
FY14 FY15
FY16
FY17
FY18
FY14
FY15
FY16
FY17
FY18
Note: Figures mentioned above for FY14, FY15 and FY16 are as per IGAAP whereas for FY17 and FY18
are as per Ind AS
1
FY16 includes one-time profit share of ~H1,050 crore
2
OPEX including depreciation as % of revenue
03
Our First
Principle
s/
Financial
Highlight
s
Making a difference to patients. Our inspiration for innovation.
Operational Highlights
Building a healthy world by Fighting global diseases
with 44 state-of-the art manufacturing facilities with over 50 dosage forms and 1500+ products
Making
Accessible medicines
34 billion 120 million 115 million 1000+ MT

units Tablets and Capsules units Aerosols pMDI units Oral Liquids APIs
6.7 million 45 million 12.4 million 910 million

units Lyophilised Injections
units Pre-filled Syringes units Form Fill Seal Eye Drops units Respules
29 million
units Nasal sprays
Based on
Industry leading quality standards
281 Robust cGMP

US FDA approved units and quality systems
1
Includes multiple units within a plant
04 Annual Report 2017-

18
With focus on
R&D
7.1% Portfolio of 249 ANDAs1 24

of R&D investments including 24 in FY18 patents granted
Over 1500
dedicated scientists
Environment
Recovering and recycling 600000+ KL of water Zero liquid discharge

across API facilities
Relationships
Estimated 11 million HIV patients to benefit fromExtended patient support through 120+ pharmacy outlets in association with Apollo pharm
Cipla’s Q-TIB
Ecosystem of 1400+ global suppliers
Collaborative value creation with channel partners

and customers across 80+ markets
Employees
78%
Employee Engagement index with continued year-on-year improvement
A third
f the Management Council and Board is represented by women
1 Cumulative number includes approved, tentatively approved and under approval ANDAs including partnered ANDAs and filed under PEPFAR
Operational Highlights05
CSR Highlights
Cipla Foundation envisions and executes Cipla’s Corporate Social
Responsibility.
In the last year, we have reached out to over 2,20,000 individuals in the community across initiatives in
Health | Education | Skilling
Health
Driving health and hope to doorsteps Creating scalable & sustainable healthcare solutions
e flagship initiative of Cipla Foundation. Since 1997, the Cipla Palliative Care and Training Centre has reached out to over 14,000 patients with free-of-cost p

18
Education Skilling
Bringing innovative learning solutions to students in remote villages

Transforming capabilities of youth with professional education and training
Making quality education accessible for children in the community Empowering individuals with job-linked skills for a productive life
CSR Highlights07
Global Reach
North America
Ranked amongst the top 10 most dispensed
generic companies 1
Revenue
Contribution
17%
Revenue Growth 5%2
Key highlights:
#1 in-market share for 25% of the
product portfolio3
Approval and launch of gPulmicort
(Budesonide) and gDacogen (Decitabine)
Emerging markets
Leadership position across key Emerging
Markets
1st in Respiratory in Sri Lanka4

1st in CNS (Anti-Depressants
and Anti- Psychotics) in
Morocco5
1st in Asthma Controller Therapy
in Morocco5
1st in Respiratory in Nepal 4
1st in ARV in Myanmar6
Key highlights:
Launch of first generic fluticasone Revenue
propionate-salmeterol (FPSM) in Australia Contribution 11%
Product portfolio build-up initiated
for China and Brazil
Diversified risk profile across 52
markets with 13 direct-to-market
(DTMs)
API
Revenue Growth 23%2 SAGA (South Africa, Sub-Saharan Africa, Global Access)
Key highlights:
A portfolio of 200+ 4th largest company in pharma private market 4
Revenue
generic and complex Contribution
APIs
4% Revenue Growth 14%7
Key highlights:
Amongst the fastest growing companies in top 104 in South

18
Africa
CGA: Partnering
with American
Cancer Society
(ACS) and
Clinton Health
Access
Initiative
(CHAI)
Europe
Revenue Revenue Growth 4%2
Contribution 4% Key highlights:
Sustained profitability
improvement in European
operations
Stronger portfolio with
product launches of
Sereflo and Ipravent
India
Third largest pharma
company4
Revenue Growth 11%8

Key highlights:
Ranked #1 in
Respiratory, Antivirals
and Urology, with
a market share of
66.3% in inhalation
segment4 (including
nebulisation)
47 product launches
including 5 in-licensed
products
Revenue
Contribution 39%
Revenue
Contribution 22%
1
IQVIA (IMS) MAT Nov 17 – by 4
IQVIA (IMS) MAT Mar 18 7
South Africa: In local currency;
TRx adjusted for animal health business
5
IQVIA (IMS) MAT Dec 17
2
Growth in USD terms 8
In H, GST adjusted for like-to-
6
Cipla’s internal market
3
IQVIA (IMS) RQTR Mar 18 like comparison
analysis
09
Global Reach
Chairman’s Message
Dear Shareholders,
It has been an eventful year for the pharma
industry, both in India and internationally. Cipla
has had a good year, as is reflected in this Annual
Report.
Continuity and Change

Over the past 58 years, I have seen the Indian
pharma industry go through many diverse changes,
particularly in India. In the pre-1972 period, we
were under a restrictive patent regime.
Subsequently, the indigenous pharma industry went
through a golden era till 2005.
In recent years, there has been a major shift in the
working of the industry. This has involved many
joint ventures, partnerships, in and out licensing,
mergers and acquisitions. Overall, there has been
considerable consolidation.
Cipla has very much been a part of this constantly-

evolving pharma landscape. Around the mid-
1990s, our domestic revenue was around 90% of
our sales, and today it is 39%. This shift in our
business profile has been necessary, and we now
partner many companies globally. The process of
professionalisation of our management is now
complete, and we have expanded to become a
truly international pharmaceutical company.
We have come a long way over the past 82

years. All of us, shareholders of Cipla, should
be proud of what our company has achieved.
However, one important aspect has remained
unchanged. This is
We have come a long way over the past 82
our commitment to access to medicines at
years. All of us, shareholders of Cipla, should
affordable prices, and hence our continued support
be proud of what our company has achieved.
to patients thereby saving lives. Cipla has
However, one important aspect has remained
developed many newer business strategies to
unchanged. This is our commitment to access
improve its portfolio. You can rest assured that we
to medicines.
will do whatever is required to ensure our
unwavering commitment to patients in need.
Our Work Beyond Numbers

Just as the pharma industry responds to change,
so also should governments around the world.
Debates around drug pricing, intellectual
property, the Goods and Services Tax in India,
the National Health Protection Mission, and price

18
erosion in the US, have been in the news.

Cipla is closely monitoring ongoing
Chairman’s Message 11
paediatric use in HIV/AIDS. For malaria, Cipla has
introduced its rectal artesunate suppository
I am happy to see that we are on track. Many

strategic decisions taken over the past few years
are coming to fruition.
developments and will contribute in every possible way

to improvement in healthcare.
It is in this overall scenario that we must carefully

study the credibility and sustainability of our
Company. A few years ago, we had planned that
2017 would be a year of streamlining Cipla’s
business model and identifying our core businesses
and strengths. We then planned for 2018 to be a
year of consolidation. From 2019 onwards, we
believe that we can capitalise on the core
foundation that we have built on. I am happy to
see that we are on track. Many strategic decisions
taken over the past few years are coming to
fruition.
I am particularly pleased that our emphasis on

R&D continues unabated. We have now developed
a unique breath-actuated inhaler with a dose
counter called Synchrobreathe for the benefit of
asthma patients.
Cipla is gradually building its respiratory franchise
in regulated markets. We have targeted a major
expansion of our presence in the USA. It has
involved many generic drug filings and this
momentum will continue. Along with this, we
plan to expand beyond generics into selected and
niche Specialty products.
Apart from this, the Cipla Global Access program

is very special for the company as this involves
business with a humanitarian vision. Your
Company received the world’s first WHO approval
for its product Q-TIB, a prophylaxis against TB in
HIV/AIDS patients. PEPFAR has approved our
product lopinavir/ritonavir oral pellets for
to be administered to children in emergency situations.
As a scientist first and foremost, to me, the above
captures the essence of our theme in this report –
innovation for the benefit of patients.
The Cipla Palliative Care Centre in Pune has now

completed 20 years of service to terminally ill
cancer patients, and over 14,000 patients have been
cared for. I am certainly happy that the company
continues to follow this path of community and
social support.
What Next for Pharma

Healthcare and disease patterns around the
world are changing – non-communicable and
lifestyle diseases are now increasingly taking
centre-stage in disease burden studies. You will
be interested to know that Cipla is committed
and fully associated with the next major medical
hurdle facing the world,
namely Anti-Microbial Resistance (AMR). This
involves a major thrust to control the misuse and
overuse of antibiotics. Immuno-therapy, stem-cell
technology, biological and vaccine products,
diagnostics, tele- medicine, digitalisation and
artificial intelligence, are all areas that will define
us as an industry in the next twenty years. The
pharma industry is in so many ways a custodian of
the healthcare needs of the world, and your
Company will do whatever best possible for
healthcare in the years ahead.
As always, my heartfelt thanks to all of you for

your faith and trust in us. Your Board and
Management Council will continue to ensure
that our purpose of ‘Caring for Life’ continues to
underpin our business even as we deliver value.
Warm Regards,
Y.K. Hamied
Executive Vice-Chairperson’s Message
Dear Shareholders,
To me, Cipla has been family in more ways than
one. I am at once humbled and honoured to
represent the third generation of the founding
family of your Company.
I joined Cipla in 2011, in the midst of a difficult

transition period. All firms go through such life-
cycles, and
as Cipla, we did a lot of soul-searching, took tough
decisions, and firmly took control of the steering in
the subsequent years. I used this opportunity to
broaden my horizons in Human Resources,
incubation of new businesses, Mergers and
Acquisitions, and other areas. Personally, for me,
this period was one of immense learning and
growth as a new pharma professional.
And it fills me with pride that we have indeed now
come a long way together since those uncertain times,
as our report and performance reflect.
The Road Ahead very strength that makes us an attractive partner to

peers and healthcare organisations alike.
As your Company’s Executive Vice-
Chairperson, my priorities are clear. So much
of the last two years has been about making
business decisions that are right for Cipla as a
future-ready Company.
Globally and in India, pharma has been in a
state of flux. The healthcare scenario, pricing,
competition, consolidation, geo-political volatility,
all continue to challenge us. Agility is now very
much the essence of our Company’s way of
functioning. In the last couple of years, we have
streamlined our business presence, acquired
assets, developed an extremely well-planned and
strategic geographical footprint, concluded in-
licensed deals, and established
partnerships with global bodies. We have
focused on building sustainable robust growth with
improvement in operating efficiency. I am
pleased that our annual report reflects the
progress we have made. We will continue to play
to our strengths, and I am excited about our
ambitions for the next two years.
All of the above are made possible by our

unrivalled prowess and constant vigilance in the
areas of Manufacturing and Quality. And it is this
We will continue to play to our strengths,
and I am excited about our ambitions for
the next two years.
Governance is a primary area of attention for

me. Today, Cipla has 12 Directors on its Board,
each one of them being of eminent standing in
their area of expertise. Seven of them are
Independent Directors. As a team, we are committed to maintaining this
I find myself well-placed to act as the bridge momentum. As we like to say at Cipla, ‘Strong
between our Board and our Management Council Legacy, Stronger Future’.
to link expectations, accountability and
performance.
Strong Legacy, Stronger Future

Our People, Our Pride
As the theme of our annual report this year
The past year saw continuation of our effort to
suggests, your Company has and always will put
develop our work culture and provide a supportive
patients first, and this inspires every aspect of our
environment to our associates. The Cipla
work. The latter pages of this report will explain our
leadership has a clear vision when it comes to
work in FY18 to you in greater detail. In taking your
hiring the right talent, in keeping with our First
Company forward, I am fortunate to have had the
Principles. It makes me proud to see celebratory
partnership of our deeply talented and experienced
moments becoming a way of life at Cipla, be it
Management Council led by Umang Vohra, for over
through cultural events for families or our own in-
two years now. As a team, we are committed to
house radio. Furthermore, our Management Council
maintaining this momentum.
and I make ourselves answerable to the
I wish to end with my gratitude to all the
entire Company once every quarter in a live global
stakeholders and shareholders who have been with
townhall. These are honest conversations that help the
us through thick and thin. Our best has yet to come.
leadership personally stay in touch with colleagues all
As we like to say at Cipla, ‘Strong Legacy, Stronger
over the world.
Future’.
No entity embodies our purpose of ‘Caring for
Best Wishes,
Life’ better than the Cipla Foundation. The Cipla
Palliative Care and Training Centre in western
India has been a flagship service for over 20
years now. Our work Samina Vaziralli
in health, skilling, education and disaster response
in India, and cleft palate surgery, primary
healthcare, access to medicines and early childhood
development in South Africa makes me proud of
the Cipla tradition of giving back to the
community. Through the ‘Joy of Giving’,
marathons and other sporting events, merit
awards, fundraising campaigns and activities, our
Cipla associates around the world were generous
with their time, talent and energy last year.
To me, corporate culture determines the

happiness quotient at work, and all of the above
are part of our constant endeavour to make ours
a healthy and nurturing work culture.

18
MD & GCEO's Message
Dear Shareholders,
In late 2017, one-year old Inness was brought to a
trained community health worker in Mupula, Zambia,
with symptoms of malaria. When the rapid diagnostic test
yielded a positive result for malaria, the health worker
immediately administered Cipla’s rectal artesunate
suppository (RAS). Inness was then taken to the Kabamba
Rural Health Centre, 30 kms away from Mupula (a
three- hour journey on the local bicycle ambulance),
where
the nurse confirmed the test result and administered
the injectable artesunate. Within half an hour, Inness
started to return to her usual self, alive to her
surroundings
and happenings. Young children in the region had lost
their lives to malaria before the introduction of the
RAS. Similarly, with Cipla’s world-first single tablet fixed
dose combination for TB in HIV patients entering the
Stop TB Partnership catalogue, close to 11 million
patients around the world could potentially benefit from
this offering.
Since its establishment in 1997, the Cipla Palliative
Care and Training Centre in India has completed
more than 20 years of providing free-of-cost support
to over 14,000 terminally-ill cancer patients and
their families.
These are poignant and humbling reminders of the

powerful reach of our medicines. Serving our patients is
both a privilege and a responsibility, and we
remember this every single day.
Purpose enabled by our sense

of responsibility
Our revenue for FY18 stood at H15,219 crore ($2.36 billion),
6% growth (adjusted for GST) over FY17, but marginally
short of target due to market challenges. However, we
recorded 18.6% EBITDA margin for the year with 165bps
improvement (before exceptional items) in our base
business profitability, both of which exceeded guidance.
Putting smiles on faces – that is what At H1,411 crore ($218.7 million), PAT for FY18 saw 40% Y-o-Y
truly defines purposeful strategy. jump.
Overall, FY18 was a good year driven by growth in key

markets, cost containment, efficiencies, and continuous
improvement in the balance sheet. While remedial
action is already underway on the issues that we
faced this year, I am happy with the year in totality.
For me, this was a year of consolidation and building
upon our strong fundamentals.
In India, even though Q1 was expectedly impacted by GST,

Cipla was among the first pharma companies to produce
a GST-compliant invoice. Our performance picked
up strongly from Q2 onwards. In FY18, our India
business registered a 11% growth over last year
(adjusted for GST) with cardiology (Cipla 9% vs mkt
6%), respiratory (10% vs
8%) and urology (11% vs 10%) delivering above-market our internal operating efficiency champion, Project
performances as per IQVIA MAT Mar’18. We leveraged Eagle, had an extremely good year and delivered
our commercial and marketing strength to launch five above expectation.
in-licensed deals in FY18. To me, Cipla’s proprietary
breath-actuated inhaler, Synchrobreathe, represents
the Cipla tradition of innovative and cutting-edge
approach to meeting patient needs. Our generics
business also beat market and continues to provide
medicines in tier 3 cities and to remote corners of
the country. We have set
ourselves the challenge of a billion dollars in consolidated
revenue from India in FY19, and this will be our first
business to cross a billion dollars in sales.
In October 2017, we formed a new region called

SAGA consisting of South Africa, sub-Saharan Africa
and Cipla Global Access. Our South Africa business
continues
to rank 4th in the private market, and is among the
fastest-growing companies in the top 10. With successive
record-breaking quarters in FY18, South Africa registered a
market-beating 14% growth over last year in local
currency terms (excluding animal health business).
Our CGA business, however, faced a tough
funding environment, and was constrained in
growth. Overall, in USD terms, the SAGA region
registered a 6% Y-o-Y
growth. With identified synergies and focused priorities,
I am confident that SAGA will continue to show good
growth in the years ahead.
All generics players faced an eventful year in the US.

Though constrained by delayed launches and price
erosion in North America, we launched numerous
drugs including several limited competition ones
such as budesonide (gPulmicort), decitabine
(gDacogen), and palonosetron (authorised gAloxi).
Cipla continues to rank among the top 10 most
dispensed generics companies in the US. 13 of our 52
products (i.e., 25% of our portfolio) are ranked #1,
and 29 of 52 products (i.e., 56% of our portfolio) are
among the top 3 as per IQVIA IMS RQTR Mar’18.
Overall, our business grew by 5% over last year. Our
Specialty business now has a new head office in San
Diego, and we are actively assessing, evaluating and
bidding for multiple assets in the respiratory and
CNS space. The US continues to be a key growth
region for us, and we will be pursuing portfolio
optimisation and one limited competition launch per
quarter in this market.
Our Europe and Emerging Markets businesses had

a mixed year. I am pleased that our effort to turn
around our Europe business has yielded top-line
and bottom- line improvement. In spite of geo-
political uncertainties, our key emerging market
DTMs showed resilience.
Our newly-launched DTMs in Australia and Colombia
bettered expectations. We are keenly exploring
business development opportunities in the emerging
markets,
especially in the biosimilar space. Our API business
continued its excellent change of pace and in many
ways led the way in both sales growth and margin.
Finally,
Innovation backed by excellence trying to cultivate a vibrant and modern workforce. I am

proud of the way we have grown as a listening and
Our R&D investment in FY18 was 7.1% of revenue. With communicating organisation. Our transformation
24 new ANDA filings (including 7 NCE-1s), it was a agenda as an employer is already making its mark
strong show exceeding guidance. Our R&D in the globally, with Cipla Pharma Lanka Pvt Ltd (Cipla Sri
coming year will focus on continuing this momentum Lanka) winning the Great Place to Work certification
of 20+ filings, and building assets in Specialty and for the current FY.
respiratory medicine. We have been working steadily
And in FY19, we will keep this flag flying high. I would like
to develop our respiratory franchise in regulated
to thank all of our shareholders, the Cipla Board,
markets – we launched ipratropium bromide in
and my Management Council colleagues for the trust
Europe, and the fluticasone propionate- salmeterol
and
combination in Europe as well as Australia.
faith reposed in us. I look forward to the rest of FY19, and
‘All-time audit readiness’ has always been our growing ahead of the market with improvements in our
mantra, and FY18 was no exception. During the year, operating margin, all-time compliant operations, and
our manufacturing facilities underwent 111 audits a continuing strong effort and investment in R&D,
without any critical observations. In R&D, quality, our people and culture. But equally, we must also
manufacturing and our supply chain, there was aspire to go beyond revenue and margin goals. We
heavy emphasis on need to think of integrated solutions, diagnostics and
automation, artificial intelligence and predictive unmet needs of patients. Patients must always be at
analytics, and integrated monitoring mechanisms. the heart of all our work. Putting smiles on faces –
Technical academies launched in all of these areas that is what truly defines purposeful strategy. I firmly
under the aegis of Cipla University will ensure that believe that in pursuing this,
our associates possess the cutting-edge skills we must support each other and be our own
required to be the best. cheerleaders first. As they say, “Things turn out best
for people who make the best of things.”
A culture of integrity and trust
Best Wishes,
We furthered our ambitious people agenda in FY18.
From equipping our associates with learning-on-the-
go and leadership development, to energising them
through recognition and wellness programmes, and
empowering them through a revamped and agile
talent management programme, we are constantly
Umang Vohra
15
MD & GCEO's Message
Our People,
Our Pride
Our emphasis on
innovative work culture
helps our OneCipla family
pursue our purpose of
‘Caring for Life’.

18
Beyond Drugs and Devices
Outcomes change when

mindsets change, be it
disruptive business ideas,
dispelling myths to
breathe freely or
supporting primary
healthcare projects
around the world.
Beyond Drugs and 19

Devices
Making Medicines, Making a

Difference
20 Annual Report 2017-18
Our diverse portfolio of drugs spread

across therapies and geographies is
the result of our uncompromising
commitment to research, quality and
manufacturing.
This annual report and its contents is for information of the

Company’s shareholders only and is not intended to
endorse, advertise, promote or recommend the use of any
products listed in it which are for representation purpose
only, some of which are reference listed drugs of which the
Company has approved, under approval or under
development generic equivalents. The prefixes “g” and
“generic” used interchangeably indicate the generic
versions of the named brand drugs.
Making Medicines, Making a Difference 21
Board of Directors
Dr Y. K. Mr M. K. Hamied Ms Samina Vaziralli Mr Umang Vohra

Hamied Vice Chairman Executive Vice Managing Director
Chairman Chairperson & Global CEO
Mr S. Radhakrishnan Mr Ashok Sinha Dr Peter Mugyenyi Mr Adil Zainulbhai

Non-Executive Independent Director Independent Independent Director
Non Independent Director
Director
Ms Punita Lal
Ms Naina Lal Kidwai Ms Ireena Vittal Mr Peter Lankau
Independent
Independent Independent Independent Director
Director
Director Director

18
Committees
Chairperson Member
Nomination and Remuneration Committee

Audit Committee
Corporate Social Responsibility Committee
Stakeholders Relationship Committee
Investment and Risk Management Committee
Operations and Administrative Committee
Management Council
Mr Umang Vohra Dr Ranjana Pathak Mr Prabir Jha

Managing Director & Global Head – Global Chief People Officer
Global Chief Executive Quality
Officer
Mr Kedar Upadhye
Mr Raju Subramanyam Ms Geena Malhotra
Global Chief Financial
Global Head - Global Head -
Officer
Operations Integrated Product
Development
Board of Directors / Management Council 23
Ten-Year Highlights
Consolidated
H in Crore
2018* 2017* 2016* 2015 2014 2013 2012 2011 2010 2009
Income Statement Data
Revenue from
Operation 15,219.25 14,630.24 13,790.10 11,345.44 10,173.39 8,279.33 7,020.71 6,323.84 5,359.52 4,960.60
Profit for the

Year# 1,410.53 1,006.39 1,359.99 1,180.77 1,388.41 1,544.85 1,144.24 989.57 1,082.59 771.02
Dividend 160.94 160.87 160.62 160.59 160.58 160.58 160.58 160.58 160.58 155.46
Balance Sheet Data
Share Capital 161.02 160.90 160.68 160.59 160.58 160.58 160.58 160.58 160.58 155.46
Other Equity 14,068.17 12,382.76 11,355.54 10,628.65 9,889.77 8,858.10 7,478.35 6,505.55 5,749.99 4,192.34
Property, Plant
& Equipment -
Gross Block 6,942.66 6,032.75 5,085.46 7,003.09 6,183.18 5,317.52 4,626.35 4,240.55 2,897.26 2,693.29
Investments 1,258.84 973.01 757.62 639.78 708.57 2,532.44 1,269.10 590.77 246.41 80.05
Additional Data
Earnings per
Share - Diluted H 17.50 H 12.50 H 16.89 H 14.66 H 17.27 H 19.24 H 14.25 H 12.32 H 13.70 H 9.92
*Figures for FY18, FY17, FY16 are based on Ind AS

#
Profit after tax atributable to the shareholders

18
Corporate Information
Founder
Company Secretary
Dr K. A. Hamied
Mr Rajendra Chopra
(1898-1972)
Statutory Auditor
Chairman
Walker Chandiok & Co LLP
Dr Y. K. Hamied
Cost Auditor
Vice Chairman
Mr D. H. Zaveri
Mr M. K. Hamied
Secretarial Auditor
Executive Vice Chairperson
BNP & Associates
Ms Samina Vaziralli
Chief Internal Auditor

Managing Director & Global Chief
Executive Officer Mr Deepak Viegas
Mr Umang Vohra
Registered Office
Non-Executive Non Independent Director Cipla House
Peninsula Business Park,
Mr S. Radhakrishnan
Ganpatrao Kadam Marg,
Lower Parel, Mumbai – 400 013
Independent Directors www.cipla.com
Tel. No.: +91 22 2482 6000
Mr Ashok Sinha
Dr Peter
Mugyenyi Mr Adil Corporate Identity Number
Zainulbhai Ms
L24239MH1935PLC002380
Punita Lal
Ms Naina Lal
Kidwai Ms Ireena Share Transfer Agent
Vittal
Mr Peter Lankau Karvy Computershare Private Limited
(Unit: Cipla Limited)
Karvy Selenium, Tower- B, Plot No. 31 & 32,
Global Chief Financial Officer Gachibowli Financial District, Nanakramguda,
Serilingampally, Hyderabad – 500 032, Telangana
Mr Kedar Upadhye
Tel. No.: +91 40 6716 2222
25
Ten-Year Highlights / Corporate Information
About this Report

Cipla takes pride in presenting the Annual Report 2017-18, with a first time
adoption of integrated reporting framework by the International Integrated
Reporting Council. Integrated reporting lays down standards which
enable companies to present stakeholders with a broader and a more
comprehensive perspective on business health & performance. Cipla
being one of India’s first adopters of integrated reporting in the
pharma sector, views this report as one more step in our legacy of
pioneering advances in the pharma sector.
Leading the change Integrated reporting: The future of showcasing
Cipla has always been ahead of the curve when it corporate performance data
comes to driving change. We continually reinvent
Integrated reporting <IR> lays down the way forward
ourselves to be more patient centric and to stay
for corporates to present a more inclusive and holistic
relevant in the evolving business and regulatory
performance report. Cipla, through this report, aims
environment. Our journey spanning eight decades
to provide its stakeholders an understanding of our
has witnessed several transformations, and is a
sustainable value creation process with enhanced
testimony of our ability to reinvent. The release of
reporting on Cipla’s business environment, business
our first annual report under the integrated
strategy and performance (see Figure 1).
reporting framework signifies Cipla’s adoption of
the new standards in corporate reporting. The key building blocks of Cipla’s sustainable
value creation are our six capitals, which are
shown in figure 2. The integrated report
articulates Cipla’s value creation process through
its business model, its resource allocation
strategy across the defined capitals, and its
approach towards leveraging opportunities and
addressing challenges.
Figure 1. Cipla’s business environment, business strategy and performance

Overview of the business environment
Dynamic regulatory environment, ever-changing competitive landscape and external environment across our global markets
The governance framework which regulates the conduct of our business
Cipla’s business strategy

Our strategic objectives, the progress made in pursuit of these objectives, and the key risks and challenges
Various forms of capitals for value creation, with specific reference to the inputs, activities and outcomes
Cipla’s performance
Our financial and non-financial performance in respect of the capitals we employ The economic, social and environmental impacts of Cipla’s busin

18
Figure 2. Six Capitals - Building blocks of Cipla's sustainable value creation
able value creation – Cipla’s 6 capitals

value creation for stakeholders through the effective deployment and management of the 6 capitals. The report captures financial and non-financial figures against
a’s Business Model (Pages 39 to 41) and explained in related sections (Pages 42 to 77).
Financial Capital Manufacturing Capital Intellectual Capital Human CapitalSocial and Relationship CapitalNatural Capital
Report boundary
Scope of disclosures
Cipla’s global operations, including its subsidiaries and
The report contains audited financials along with
joint ventures.
management-reviewed non-financial figures
Reporting period
Frameworks referred
April 1, 2017 to March 31, 2018. Wherever
International Integrated Reporting Council’s (IIRC)
applicable, information in line with past
Integrated Reporting (<IR>) Framework
performance has been provided to aid
National Voluntary Guidelines (NVG) on Social,
comparability of the report.
Environmental and Economic Responsibilities (SEE) of
business
Select performance disclosures as per Global
Reporting Initiative (GRI) standards
Disclaimer
This annual report and its contents is for information of the Company’s shareholders only and is not intended to endorse, advertise,
promote or recommend the use of any products listed in it which are for representation purpose only, some of which are reference
listed drugs of which the Company has approved, under approval or under development generic equivalents. The prefixes “g” and
“generic” used interchangeably indicate the generic versions of the named brand drugs.
Forward-looking statements
Except for the historical information contained herein,
may vary from country to country. A reference to a medical
statements in this presentation and the subsequent discussions
product or a medical device does not imply that such medical
may constitute ‘forward-looking statements’. These forward-
product or medical device is available in every country. The
looking statements involve a number of risks, uncertainties and
commercial availability of
other factors that could
the medical products or medical devices listed herein for a specific
cause actual results to differ materially from those suggested by
country is dependent on the validity and status of existing patents
the forward-looking statements. These risks and uncertainties
and/ or marketing authorisations related to each of them. An
include but are not limited to our ability to successfully implement
independent enquiry regarding the availability of medical
our strategy, our growth and expansion plans, our ability to obtain
products and medical devices should be made for each individual
regulatory approvals, technological changes, fluctuation in
country.
earnings, foreign exchange
rates, our ability to manage international operations and exports, our The product information contained herein is not intended to
exposure to market risks, as well as other risks. Cipla Limited does provide complete medical information, and is not intended to be
not undertake any obligation to update forward-looking used as an alternative to consulting qualified doctors or healthcare
statements to reflect events or circumstances after the date professionals.
thereof. Nothing contained herein should be construed as giving of
Information related to any medical products or medical devices advice or the making of a recommendation, and it should not be
contained herein is provided by Cipla for general information relied upon as the basis for any decision or action. It is
purposes only. Information on any of the medical products or important to only rely on the advice of a healthcare
medical devices professional.
27
About this Report
Our Strategy towards

an Integrated Future
As we continue to strengthen our global footprint across the chosen
markets, our growth is centred on our commitment to patients. Our
purpose of ‘Caring for Life’ is the key driver behind our efforts to
expand the reach and improve accessibility across the globe.
Core to the Company’s business strategy is the belief that all business should be conducted in a sustainable
and responsible way. These considerations underpin all decisions and are integrated in the way we carry out
our business. Furthermore, Cipla’s roadmap to the future reflects integrated thinking across key risks and
opportunities within the business environment.
Key aspects impacting Cipla’s value

These components have evolved through continuous
creation process
dialogue with key stakeholders, a materiality
Cipla has identified the following six key facets of assessment exercise, external benchmarking and
business which have a material impact on the value an internal Enterprise Risk Management (ERM)
creation process: exercise. Furthermore, they take into consideration
Quality factors like the dynamic global regulatory market
and competitive landscape which are important for
Access and affordability Cipla’s continual business progress.
Operations
The Company has aligned each of these aspects
Research and development with related focus area(s) and the corresponding
capital as described below. Cipla regularly
Talent
invests in and monitors these focus areas to
Governance ensure effective resource allocation and to
create superior value for our stakeholders.
Quality
Focus area
Systems & processes Pharmacovigilance Safe product destruction
About the focus

Cipla’s industry- Cipla’s robust Cipla has stringent
area
benchmarked systems pharmacovigilance system processes for
and processes ensure assures effective environmentally safe
that product quality is resolution of stakeholder product destruction
above industry complaints about product
standards safety
Capital Linkage
Manufacturing Capital
Section of the
Page 49 of
report
Page 48 of Page 49 of Manufacturing Capital
Manufacturing Capital Manufacturing Capital

18
Access and
Affordability
Focus area
Pricing pressures Enhancing outreach Improving patient Providing affordable
experience medicines
About the
To address pricing Cipla routinely Cipla initiates Ongoing
focus area
pressures in global participates in various patient programmes on cost
markets, Cipla has tenders across awareness and reduction through
focused on cost markets and builds education measures such as
optimisation and depth in chosen campaigns (like process / yield
complexity markets to expand the Berok Zindagi improvements and
reduction as well as our global reach campaign targeting alternate vendor
portfolio and enhance asthma awareness development help
enhancement accessibility and management) Cipla in making our
as well as patient products affordable
support
programmes
Capital Linkage
Social and Relationship Financial Capital
Capital
Section of
Page 82 of Page 61 of Page 62 of Page 45 of Financial
the report
Management Social and Social and Capital
Discussion and Relationship Relationship
Analysis Capital Capital
Research and
Development
Focus area Focus on Investment in R&D Regulatory environment

intellectual
property
About the focus Cipla’s Intellectual The Company’s R&D focus is Ongoing changes in the
area Property (IP), a towards developing complex regulatory environment
streamlined approach and innovative products. across the world,
towards innovation, The R&D investments for especially those related to
and the team of the reporting period was product- patent regime,
1500+ scientists are H1,074 crore corresponding are of great significance
integral contributors to 7.1% 1 of sales as Cipla strives to be
to Cipla’s growth competitive in these
story markets
Capital Linkage Intellectual Capital Intellectual Capital,
Financial Capital
Section of the Page 52 of Page 50 of Intellectual Page 79 of Management

report Intellectual Capital Capital, Page 43 of Discussion and Analysis
Financial Capital,
Page 81 of Management
Discussion and Analysis
1
OPEX including depreciation as % of revenue
Operations
Focus area
Effective value Optimised energy Effective waste Water
chain consumption and management management
management focus on emissions
footprint
About the focus

Energy Cipla has defined The Company has
area
The Company’s consumption is guidelines to various measures to
effective value optimised through manage hazardous reuse and recycle
chain implementation of and non-hazardous water in order to
management new technologies, waste with focus reduce pressure
results in energy source on waste on fresh water
enhanced supply substitution, use minimisation at resources
chain efficiencies, of renewable source. Based on
sustainable energy sources and feasibility, we use
procurement electronic control the ‘reuse, recycle
practices through applications and repurpose’
local sourcing, formula at our
and end-to-end manufacturing
supply chain locations
integration
Capital Linkage Social and Natural Capital Natural Capital Natural Capital
Relationship
Capital
Section of
Page 65 of Page 74 of Page 76 of Page 76 of Natural
the report
Social and Natural Capital Natural Capital Capital
Relationship
Capital
Capacities
Growth opportunities Ensuring employee health
and safety
Cipla’s 44
The Company actively At Cipla, Environment,
internationally-
pursues organic and Health and Safety (EHS)
approved state-of-
inorganic growth management is viewed
the-art manufacturing
opportunities by as an investment rather
facilities around
evaluating various than an expense. The
the world speak for
markets and devising the Company’s focus on
themselves, making
effective go-to-market safety measures remains
Cipla the partner of
strategy for them unwavering in its bid to
choice for multinational,
prioritise employee health
government and non-
and safety
government institutions
across the globe
Manufacturing Capital Human Capital
Page 46 of
Page 33 of Page 58 of Human Capital
Opportunities and
Outlook
Talent
Focus area
Diversity at workplace Talent retention Employee engagement
About the focus
The Company’s talent Cipla has taken various To keep Cipla’s workforce
area
pool displays diversity initiatives to retain the engaged and motivated, the
in terms of gender, right talent and minimise Company uses forums such as
age, expertise and voluntary attrition through recognition and reward
geography, which increased talent mobility, platforms, regular connects with
results in a healthy learning and development leadership and other initiatives
mix of skill-sets and opportunities, and geared towards the overall
perspectives succession planning for employee experience and well-
employees being
Capital Linkage Human Capital
Section of
Page 55 of Human Page 54 of Human Page 56 of Human Capital
the report
Capital Page 134 of Capital
Corporate Governance
Report
Governance
Focus area Corporate governance Business ethics Anti-fraud Compliance
About the focus Cipla’s commitment to The Company has Cipla’s Whistle- Cipla is in the
area strong governance has always emphasised blower Policy process of
led to enhanced value for the values of serves as a strengthening
the stakeholders and fairness, mechanism to capability and
protection of their transparency and report concerns rigour in its
interests. Cipla operates accountability for about unethical corporate
within a robust corporate performance at all behaviour at compliance
governance framework levels. To all levels across mechanism by
bolstered by policies and implement its the implementing robust
guidelines which serve as commitment to organisation compliance policies,
mechanisms to ensure good governance, SOPs and system-
transparency and ethical Cipla has based monitoring
conduct adopted a
Business Code of
Conduct
Capital Linkage
Human Capital Human Capital,
Natural
Cap ital
Section of
the report Page 132 of Page 60 of Page 38 of Page 60 of
Corporate Human Capital Risk Human Capital
Governance Report Management Page 73 of
Framework Natural Capital
Cipla’s Opportunities and Outlook
We have witnessed the evolution of healthcare and
ensured reliability and availability of information and
pharmaceutical industry over last eight decades.
business support, and maximised efficiency and data
During this period, healthcare and disease patterns
integrity. The Company continues to meet the objective
around
of ensuring that the systems, processes and technology
the world changed, bringing in new opportunities
are aligned to the changing business environment and
for growth in this complex environment. Biologics,
help us maximise efficiency.
complex generics, innovative drug delivery
platforms and artificial intelligence are the areas for In keeping with the current momentum and bolstering
future bets which may see huge potential in coming future growth, we are looking to strengthen our
years. position in key markets through a differentiated
portfolio, and enter newer ones through organic and
Even in the face of constant challenges like a
inorganic routes. With initiatives set to deliver cost and
volatile regulatory climate, ever-changing
operational efficiencies, Cipla is poised to explore
competitive landscape and adverse pricing
market opportunities across the short, medium and
movements, we have continued to deliver growth
long term as illustrated below:
and stakeholder value. By building systems to
promote digitalisation and advanced analytics
across the Company, Cipla has
Opportunities
Enhance Specialty segment

Entry in new emerging markets
Develop branded drugs in the Specialty
Focusing on markets like Brazil and China
segment in US, specifically in respiratory and
CNS, to address clinically unmet needs of the Gaining competitive edge
patients
Differentiated products and wider portfolio in
Growth in India and South Africa the US generics market. Deepen the alliances
and partnerships in B2B markets
India – Targeting a revenue of USD 1 billion in FY19,
driven by volume growth, new launches and focus Enhancing efficiencies to fuel growth
on diabetes and respiratory therapies
Driving cost efficiencies through initiatives like Project
South Africa - Growing through partnerships Eagle and operational efficiencies through a lean
and expansion of OTC and biosimilar portfolio operating model, use of artificial intelligence and
advanced analytics
Over the next few years, Cipla’s growth efforts will revolve around six core levers:
Strategic Objective Short to medium term outlook
Difficult-to-
Develop a complex generics portfolio
compete spaces
like Specialty and Build Specialty portfolio in areas like CNS and respiratory for US market through
complex generics licensing or acquisition opportunities, complemented by focused internal R&D
in US Focus areas for the portfolio:
505(b)(2)s Proprietary delivery platforms
Continue to build
Strengthen select categories in home markets through partnerships:
scale and depth
in branded home India – Dermatology and Diabetes South Africa – OTC
markets of India segment
and South Africa Leverage strength in respiratory to expand category presence through patient
activation programmes like Berok Zindagi
Grow business organically through product development efforts and new launches,
supported by execution excellence
Strengthen and
expand presence in
Emerging Markets Grow Emerging Market footprint as the next leg of Cipla’s strategy, beyond
India and US
Build aggressive pipeline in ‘future markets’ like China, Indonesia and Brazil though
a combination of internal pipeline and partnerships
Explore entry into new Emerging Markets as long term bets
Explore investment
in new therapy
areas Explore early investment in one of the promising new therapy areas – such as
insulins, vaccines, biosimilars wave II – in the US market
Partner with proven and established market players for co-development and/or
licensing efforts
Focus on going
digital and on
patient centricity Support our core business by focusing on patient engagement in our key
to stay ahead of branded markets. Leverage technology to deliver ‘beyond the pill’
the game experience and create market disruption
Launch Cipla’s maiden initiative, 'Innoventia', focused on innovation to
crowdsource and incubate ideas in point of care devices, diagnostics, digital
and services which are synergistic with Cipla’s growth ambitions
Create a culture of ‘Enhanced Analytics’ and ‘Sales Force Effectiveness’ by
leveraging artificial intelligence to drive outcomes across our key businesses
Continuous
Continue to drive through cost and operational efficiencies and continuous
Improvement:
improvement initiatives
Efficiencies to
deliver fuel for Focus on operational productivity by driving
growth Throughput improvement Procurement efficiencies Logistics
cap
abil
ity
API
yiel
d
imp
rov
em
ent
in
cor
por
ate
ove
rhe
ads
among other
initiatives, in
order to be an
agile and
competitive
market player
Cipla’s Stakeholder Engagement Strategy
We understand the importance of fostering and maintaining a strong engagement with our stakeholders
– a crucial factor to achieve success in our value creation journey. Our stakeholders are persons,
groups or
organisations directly impacted by our activities and decisions as well as those who can influence our
operations. We have institutionalised our stakeholder engagement strategy to ensure timely, accurate,
consistent and relevant information exchange with each group.
Our stakeholders are categorised into nine groups based on the above criteria. Please refer below for details 2.
Healthcare Professionals Shareholders and Investors

Patients
Patient care Conferences and Conference calls

Website seminars Meetings (one-on-one
Seminars Regular ongoing visits by and group)
field staff Investor conferences
Advisory Board meetings
Government & Regulators B2B and Institutional Partners

Communities
Face-to-face meetings Regular interaction Regular meetings

Industry conferences through CSR initiatives In-market visits
Written communication Website Industry conferences
Facility visits
Channel Partners
Suppliers Employees
Supplier visits Face-to-face meetings Town halls

Supplier audits In-market visits Employee engagement
survey
Cipla Unplugged
Senior management
interactions
2
Information in line with BRR Principle 4, Question 1
Cipla’s Risk Management Framework3
Risk management is one of the critical elements of operating environment, these risks are reviewed
Cipla’s operating framework. Cipla’s Enterprise Risk regularly and assessed for their potential impact/
Management (ERM) framework encompasses practices exposure. Every quarter, a detailed update on ERM
relating to the identification, evaluation, mitigation is presented and deliberated upon in the meetings
and monitoring of strategic, operational, financial and of the Investment and Risk Management Committee
compliance risks to achieve key business objectives. (IRMC) of the Board.
Through the ERM framework, we seek to minimise the
adverse impact of risks, thereby enabling effective Based on Management review and deliberations
leveraging of market opportunities and enhancement during IRMC meetings, given below is a
of long-term competitive advantage. summarised account of some of the Company’s
key risks and mitigation measures. The list of
Cipla’s Management identifies key risks (existing mitigation measures is only illustrative and not
as well as emerging) and prioritises the mitigation exhaustive. While every company, as part of its
actions based on the potential adverse impact on risk management strategy, tries to put in place
operations and/or shareholder value. As we mitigation measures to the extent possible,
operate in a dynamic residual risks cannot be wished away.
1Regulatory developments (India business) 2Quality risks
Definition Definition
Amongst other potential regulatory changes, Non-compliance with Good Manufacturing Practices
continued pricing pressure and evolving regulatory (GMP), sub-standard product quality, and adverse audit
landscape. findings by agencies such as FDA and MHRA among
others
Mitigation Plan
Mitigation Plan
Divestment / discontinuation of select product
categories Ensuring all-time audit readiness
Performing therapy-level impact assessment and Imparting relevant role-based training to employees
amending product structure / pricing accordingly
Following a product Life Cycle Management
Process (LCMP), which focuses on product
quality
Conducting investigations and Corrective and
Preventive Action (CAPA) analysis for all
product recalls
Enforcing stringent quality standards on vendors in
supply / service contracts
Automation of Quality Management by
developing Computer System Validation (CSV)
programme
3
Risks presented in this section may not be exhaustive
3Environment, Health and Safety (EHS) risks
5Currency risks
Definition Definition
Safety at all Cipla workplaces is both a priority Exposure due to fluctuations in foreign currency rates
and a regulatory requirement. EHS incidents pose
critical regulatory, reputational and business Mitigation Plan
continuity risks
Hedge balance sheet translation and
Mitigation Plan realisation exposure for select countries fully
Implementing a policy of hedging appropriate
Comprehensive assessment framework called
percentage of future cash flows in a basket of
EHS Management System (EHSMS) to identify
select currencies based on defined risk
and
threshold, thereby limiting the currency risk
respond to potential risks to ensure zero EHS-
related incidents is being implemented. To
augment the framework, corporate EHS standards
6Increasing costs and growing business complexity
and guidelines, and good EHS practices have been
rolled out
Development of detailed local EHS procedures Definition
and full implementation of EHSMS is currently
Risk of shrinking revenue due to downward
underway
pricing pressure on most of the key products in
Periodic performance of internal audits and tender-based and other highly competitive
EHS assessments businesses
Mitigation Plan
4Geopolitical risks Ensuring sustained cost optimisation

programmes year-on-year and complexity
rationalisation
Definition Implementing process improvement initiatives
Continued volatility in select markets, due to Ensuring product portfolio enhancement
geopolitical pressures leading to the risk on business
continuity and collections
7Cyber security and data privacy regulations
Mitigation Plan
Capping the overall exposure to the identified Definition

countries in terms of sales, profits and
Cipla recognises that a failure of Information
invested capital, at any point of time to a
Technology (IT) systems due to malicious attacks
defined threshold
and/or non-compliance with data privacy laws can
Evaluate possible ways to hedge through currency potentially lead to financial loss, business
or commodities or other types of instruments disruption and/or damage to its reputation
Process of securing receivables in most cases
through Letters of Credit or by mandating
advance payments prior to supply

18
Mitigation Plan detective and response measures. These include:
Fostering a risk-aware culture that can anticipate New global Code of Conduct Policy
and prevent attacks, and where necessary, Integration of fraud indicators in the Internal Financial
effectively respond to security breaches Controls (IFC)
Maintain strong cyber security infrastructure Robust whistle-blower programme
Compliance with data privacy law requirements Demonstrating a zero-tolerance approach towards
through: violations of the Code of Conduct
Performing gap analysis to identify existing Rigorous vendor on-boarding process
weaknesses
Development of fraud analytics to identify and
Rolling out a Data Protection Policy raise red flags
Developing an implementation roadmap based
on gap analysis for implementing cyber 10Compliance
insurance or other protection mechanisms Definition
Non-compliance of applicable laws, including bribery

8Growth uncertainty in US market
and corruption, can lead to civil and criminal actions
against the Company and/ or its officers and can
Definition also lead to the risk of business continuity
Cipla continues to witness growth uncertainty in the US Mitigation Plan

market due to challenges associated with price erosion
Building capability and rigour in the corporate
across products and under performance in product
compliance mechanism by implementing sound
launches
compliance policies and SOPs, system-based monitoring
Mitigation Plan of compliance versus requirements, and imparting
suitable training to relevant personnel
Improving growth rate through implementation
of robust launch management practices
Target the portfolio towards identified limited
competition spaces based on select areas of
differentiation Due to the inherent risks in the Company’s
business activities, it is vital that Cipla keeps
9Fraud improving risk management practices to strengthen
the organisation through informed strategic and
business decisions.
Definition
Cipla’s strategic vision for the ERM function is to
Fraud can have a potentially adverse impact
embed ERM across processes, business strategy and
on the Company’s profitability, brand and
key decision making to add significant and
business sustainability
strategic organisational value.
Mitigation Plan
Developed a comprehensive Fraud Risk Management

(FRM) framework, consisting of a host of
preventive,
Our Business Model

At the heart of Cipla’s operations lies our business model, which
determines the way we calibrate the six capitals and transform input
into outcomes to achieve our strategic goals. The business model
demonstrates how Cipla conducts the business to retain our leadership
position across markets.
The fundamental purpose of including Cipla’s business

These elements allow Cipla to monitor the forces
model in this report is to provide our stakeholders
influencing business, to stay agile and to deliver
with an insight into the Company’s strategy and its
sustained stakeholder value. Our business model
ability to generate short, medium and long term
encourages focusing on and strengthening the
value. In addition to providing an overarching view
following key aspects:
of the Company’s value creation process, the
model also outlines the interconnectedness between a) The six capitals, which demonstrate how we
the capitals. This relationship and interdependence define and utilise our resources.
between capitals is what allows us to work in a
cohesive manner, as OneCipla, to cater to all b) Strategic allocation of high-quality resources
stakeholder requirements. that flow in from these capitals. These
resources act
This OneCipla ethos and Credo, which reflect in as the fuel for business activities, which churn out
our day-to-day business conduct, form the bedrock superior quality outputs and outcomes.
of our business model, and inspire the Company’s
25,000+ employees to operate within the c) The global value chain which outlines the
perimeter of ethics, transparency and good components of Cipla’s business and its flow.
governance with every step they take. Each element of the value chain works in
conjunction with the others seamlessly and
The business model is driven by elements critical to ceaselessly to ensure that the Company delivers
Cipla, encompassing the internal and external factors quality products to patients. This process
influencing the Company. These elements include: operates with the help
of key enablers and within defined frameworks
Our inspiration and ethos
that ensure sustainable and transparent business
The environment we operate in conduct.
Our stakeholder expectations d) Enhanced stakeholder value, which is
Market opportunities and risks derived through the high-quality outcomes
from the streamlined value chain. This is
detailed in the Capitals (Page 42 to Page
77).

18
Cipla’s business model revolves around its purpose of 'Caring for Life'
Drivers Strategic allocation of resources across the capitals

The 6 Capitals that govern Cipla’s global operations
Financial Capital Access to capital for enhanced

shareholder returns
Deploy financial resources in Organic and inorganic investments/
a diligent manner to harness acquisitions to develop strategic
opportunities for long-term strengths in focused therapies and
Inspiration and Ethos sustainable value-creation expand geographical presence
Patient centricity
Global manufacturing footprint with
Innovation
Manufacturing Capital technologically advanced facilities
Focus on developing Key regulatory approvals (including
complex and multi-dosage US FDA and MHRA)
manufacturing capabilities, demonstrating operational
improving productivity and excellence
increasing safety and reliability
Expertise in complex products
of operations supported by over 1500 scientists
Operating Environment
Continuous investment in R&D to the
Market trends tune of 7.1%1 in FY18 towards best-in-
ReguLatory and statutory Intellectual Capital class product development
requirements technologies and facilities with device
development and clinical capabilities
Competitive Landscape Invest in technologies to
advance new and differentiated Strong commercial set-up across
intellectual capital to drive geographies driving in-market
better patient outcomes leadership
Empowered and diverse workforce
enabling collaboration and effective
Human Capital operations across the globe
Key Stakeholders Industry-leading talent management
Cultivate employee
and leadership development processes
StakehoLder incLusiveness capabilities and competencies
StakehoLder expectations to drive shared organisational Investments in community development
objectives through initiatives that build and nurture
long lasting relationships
Strengthen external stakeholder
Social and engagement through enhanced
Relationship Capital disclosures and high standards of
Leverage Social and Relationship corporate governance
Enhancing patient awareness and
capital to share knowledge and
education through targeted initiatives
Opportunities and Risks resources for enhancing individual
Focus on sustainable supply chain
and collective well-being
Leveraging opportunities through active engagement with vendor
network
Proactive mitigation of risk
Natural Capital Focus on optimal resource

utilisation to develop products that
Commitment towards efficient create stakeholder value
operations resulting in reduced Strong policy framework to
environmental footprint govern EHS practices
OneCipla Credo Purpose Inspired Responsibility Centered

1
OPEX including depreciation as a % of revenues | 2 Adjusted for GST
The global value chain with an End Patient focus Cipla’s patient centric business model delivers significant stakeholder value
Corporate Governance & Internal Controls
Product Technology in-licensing
End Patient
Talent Management
Insurance & Payers

Needs
Innovation
Research and Healthcare DevelopmentProfessionals
BusinessChannel
AlliancesPartners
Registration, Filings and Approvals
Institutional Partners
Information Technology
Systems and Processes
Manufacturing
Marketing,
Sales and
Distribution
API Formulation
Supply Chain
Product in-licensing
Quality and Regulatory Compliance
Legend
Lines of operation Frameworks that Cipla
operates within
Lines of interaction
Enablers for Cipla
Innovation Driven Excellence Focused Integrity and Trust Anchored

Financial Capital
Sustainable FY18 revenue growth of 6%2 and
3rd largest player expansion of EBITDA margin to 18.6% of
in India revenue
Strong cash generation and healthy balance

sheet; net debt to equity ratio of 0.14
3rd largest player Manufacturing Capital

in South Africa
44 state-of-the-art manufacturing
facilities across the globe with a
diversified product portfolio of over 50
dosage forms
Among the top 10
most dispensed generic
companies in US Intellectual Capital
Dedicated and focused approach towards
innovation - cumulative 249 ANDAs
Human Capital
Leadership positions
across key emerging Engaged employees resulting in inspired
markets and motivated workforce – employee
engagement index improved year-on-year
Focus on diversity in the Board and top
management – 58% independent members
Cipla’s Key Brands on the Board and one-third women
representation in Management Council
Social and
Synchrobreathe Relationship Capital
Working with communities for the
betterment of lives – 85+ initiatives
Omnigel spread across healthcare, education, and
skilling
Strong business relationship with 1400+
suppliers across the globe
Established relationships with government
bodies to support patient access
gPulmicort
Natural Capital
Zero liquid discharge across API
facilities 6,00,000+ Kilolitres of water
gDacogen recycled to reduce pressure on fresh
41
Our Business Model
Financial Capital
With an eight-decade legacy, Cipla has remained committed to
drive sustainable value creation based on strong business
fundamentals including focused R&D investments and a diversified
& growth oriented business model. There is a strong focus on
efficient capital allocation and continuous margin improvement.
Business model realignment and significant improvement in cost
structure have resulted in growth in revenue and EBITDA of 6%
(GST Adjusted) and 14.2% Y-o-Y respectively. While this is ongoing,
there is strong cash generation year on year which is reflected in
substantial reduction in Net Debt to Equity ratio over the last two
years
Revenue from Operations EBITDA

During the last 5 years, Cipla has recorded a Absolute EBITDA saw a CAGR of 7.3% over the
CAGR of 10.6% with substantial expansion of its last 5 years, owing to contribution from new
footprint across the globe. Revenue growth has businesses, improvement in the portfolio mix,
largely been driven by strong performance in new launches in
home markets of India, North America and South North America and impacted by higher R&D investments
Africa. in recent years. The Company has maintained a pre-
R&D EBITDA of over 24% over the years.
Our focus for next year is on continuing the
growth trajectory in all key markets and Strong growth momentum across key markets
investments in portfolio for sustainable growth. coupled with margin expansion and cost reduction has
resulted in 165 bps improvement in EBITDA margin
on Y-o-Y basis.
(H crs) (H crs)
CAGR 25.6%
10.6% 24.7% 25.3%
14,630 15,219 24.2% 24.5%
13,790 2,826
10,17311,345 2,480 2,476
2,133 2,162
21.0% 19.1% 18.0% 16.9% 18.6%
FY14
FY15 FY16# FY17 FY18 FY14 FY15 FY16# FY17 FY18
# FY16 includes one-time profit share of around H1050 crores
EBITDA EBITDA % Pre R&D EBITDA %
# Normalised EBITDA for FY16 without one-offs was ~14%

18
Note: Figures mentioned above for FY14 and FY15 are as per IGAAP whereas for FY16, FY17 and FY18 are as per Ind AS
Financial Capital 4
Net Profit after tax attributable to Cash Conversion Cycle*
shareholders
Cash Conversion cycle has improved over the years
Over the years, depreciation and amortisation costs through focused management of inventory, receivables
have increased due to increased capital investment and and payables.
acquisitions. Further, the profits for FY17 and FY18 saw (No. of days)
the impact of impairment of assets related to 127
InvaGen and Cipla BioTec.
The Company’s effective tax rate (ETR) has 122 119
improved significantly over the last 5 years driven
majorly by operations in backward industrial areas 114 114
and increased R&D investments
(H crs)
13.6%
1,411
FY14
1,388 10.4% FY15 FY16 FY17 FY18
1,360 1,006
1,181
9.9%
9.3%
R&D Investment**
6.9%
The Company continues to invest in building a
strong product pipeline through R&D. This has
contributed significantly in growing the US product
FY14 FY15 FY16 FY17 FY18 portfolio. The Company filed 24 new ANDAs and
invested in clinical for gAdvair during the year.
PAT PAT %
Absolute annual R&D investments at Cipla have
crossed H1000 crore.
Cash Outflow in Capex

The Company continues to invest in expanding
its manufacturing capacities and upgrade its 8.0%
facilities in the areas of technology, automation,
safety, environment and systems. 6.6% 7.1%
6.3%
(H 5.0%
crs)
FY14 FY15 FY16 FY17 FY18

1,136
1,077
646 816
570
FY14 FY15 FY16 FY17 FY18

*CCC = (Average Working Capital ÷ Revenue per Day)
**R&D investment includes OPEX and depreciation
Liquidity Net Debt* to
Equity
The Company funded the acquisition of
InvaGen Pharmaceuticals Inc. and Exelan
Pharmaceuticals Inc. through debt funds in FY16. 0.32
Strong cash flow generation through focused
management of receivables and inventory has 0.20
led to a significant improvement in net debt to 0.14
equity ratio from 0.20 in March 2017 to 0.14 in
0.070.07
March 2018. Healthy margin improvement in FY18
contributed to decline in Net
Debt to EBITDA ratio from 1.07 in March 2017 to FY14 FY15 FY16 FY17 FY18
0.72 in March 2018.
Net Debt* to EBITDA Return on Equity (RoE)#
1.51
14.6%
1.07 11.3% 12.3%
10.5%
0.72 8.4%
0.350.35
FY14
FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
*Net Debt = Total borrowings - Cash and Cash equivalents + Bank Balance other than Cash and Cash equivalents (excluding earmarked balances
per dividend) + Current Investments
#RoE = (Net Profit after tax attributable to shareholders) ÷ Average Shareholder’s Funds (excluding non-controlling Interest)
Project Eagle: Enhancing access at low cost
In delivering a sustainable business with long-term revenue growth, Cipla also recognises its commitment to
provide affordable medicines to those who need them. Through Project Eagle, rolled out in select
locations from the middle of FY17, the Company has adopted an integrated approach to procurement, supply
chain and operations.
Procurement Levers Operations, supply chain and quality levers Structural/ business model levers
Adopt a TCO approach to identify Analytics

opportunity
led yield
across
and process parameters
Business
optimisation
model calls (e.g. exit from low profitability
Raw materials (API, Excipients,
API Solvents) businesses). Shifts in operating model across manufacturing, R&D, supply chain an
Packaging material (procurement Formulations
and specs) Outsourcing of products/ services
Traded products Indirect spendConversion cost optimisation WorkingExit capital
opportunities
optimisation
to drive
Capexbetter
optimisation
value
(promotional spend, R&D Reduced testing of raw materials, packing
Partnering
materialswith
and3rd
finished
party products
organisations
spend, etc.) Digital and Big data analytics
Services (e.g. logistics, insurance, etc.) Automation to reduce wastage
Corporate administration
Through a systematic and process-driven approach, the Company also addressed each cost element
relating to procurement, research, manufacturing yields, logistics, overheads and people through
benchmarking against best- in-industry practices.
Cipla has leveraged and invested in its manufacturing capital through
facilities that are cGMP compliant and approved globally. This has
facilitated the Company to attain a global leadership position in the
pharmaceutical sector.
44 state-of the art manufacturing facilities More than 50 dosage forms
7 352
API facilities Formulation facilitiesPilot facility
The confidence of patients and healthcare

productivity. Also, under the principle of 'Caring for
professionals in Cipla’s products has strengthened
Life', Cipla has worked towards enhancing the
over the years due to consistent and timely delivery
affordability of medicines worldwide. The company
of highly dependable products. The Company
was able do this through cost and complexity
continues to strive to retain
rationalisation, product
this confidence by diligently manufacturing high quality
portfolio enhancement, process/yield improvements and
medicines and implementing innovative, path breaking
alternate vendor development. Some of the examples
technologies to deliver superior quality products.
of Cipla’s affordable medicines developed are iron
The Company ensures adequate allocation of its
chelators for Thalassaemia, HEPCVIR & HEPCVIR L and
resources to enhance its manufacturing capital that
HEPDAC1.
enables higher
Following are the key pillars that support the efficient

management of manufacturing capital:
Capabilities and developments
The Company’s manufacturing facilities present a
range of capabilities aligned to its existing and future
Cipla’s capabilities & developments commercial strategies and product pipeline. Cipla
has over 1500 products in 65 therapeutic categories
A testimony of its competence available in over 50 dosage forms. These capabilities
range from the development of a simple molecule to
highly complex multi-chiral centres molecule with a
distinction of affordability and highest quality. The
Quality Company’s capacities include its own facilities and in-
licensed facilities which support both generic and the
A bedrock for sustainable growth
biotech business. Cipla’s investments in manufacturing
capital include development of new drug delivery
systems, facilitation of infrastructure supporting API
and formulation developments and strengthening of
platform technologies.
Pharmacovigilance
An ownership of drug safety
1
Information in line with BRR Principle 2 Question 1
Cipla’s reputation as a respected pharmaceutical The Company is committed to achieving zero-defect

brand results in an increase in market outreach and and implements strict quality controls to ensure
subsequently increased demand of its products. To that every product released from its manufacturing
suffice this ever-increasing requirement, Cipla facility adheres to all applicable quality and
continues to invest in expanding its presence as well regulatory standards. This reputation of delivering
as enhancing the capacities of its exisiting plants. consistently high quality products has helped Cipla
During the year, to be considered as one of the key partners of
the Company made the following augmentations to choice for multinational Government and Non-
its existing operations. Government institutions globally.
The Company conducts regular vendor audits to

Capacity addition in FY18 ensure adherence to relevant quality standards
across its value chain. The Quality by Design (QbD)
team and Development Quality Assurance (DQA)
team work closely with the R&D function to monitor
Goa Unit 5 Indore Unit quality during clinical trials, tech transfer and
developing molecules. During the manufacturing
5 process, the Quality Control
Lyophilized injection: UDNS : 4.15 million (QC) team establishes and implements robust practices
1 million p.a. p.a.
to ensure quality. Post manufacturing, this is reinforced
through safe destruction of defective and expired
products as well as stringent pharmacovigilance.
Bommasandra Cipla has withstood and successfully overcome

challenges such as growing regulatory pressures,
Small Scale API manufacturing facility: demanding compliance requirements and
20 Kg p.a. stringent quality standards as a result of its robust
Quality Control systems. The Company functions on
a business model with a futuristic outlook that
envisions the anticipated regulatory
Quality developments. This prepares Cipla to adapt readily
to the changing environment and ensure business
Cipla believes that the key to strengthening the continuity. The Company’s focus during the year
foundation of a responsible brand is in has been to enhance its Quality Management
consistently achieving high standards of quality in Systems to meet and/or exceed the current
everything we do. Quality is embedded at every expectations of regulatory authorities such as
stage of Cipla’s operations, including CDSCO, US FDA, MHRA, TGA, WHO, etc. and
procurement, manufacturing, delivery and safe following (figure 1) is a representation of the
product disposal. audits conducted across Cipla facilities.
Figure 1. Regulatory audits across Cipla facilities

9
3 3
2
1 1 1 1 1
Manufacturing Capital 4
USFDA WHO TGA MHRA INVIMA ANVISA EMA EDQM PMDA CDSCO FY18
(Geneva) (Australia) (UK) (Columbia) (Brazil) (Europe) (Japan) (India)

18
Systems and processes to ensure quality of the Company’s SOPs and policies. Cipla’s 71
at Cipla QMS policies along with supporting SOPs reflect its
vision to execute the QMS in compliance to the
Cipla understands that adequate and timely applicable cGMP regulations. Effective
investment in strengthening its quality implementation of this system is continuously
management protocols promise long-term monitored using quality metrics and internal audits.
benefits in terms of eliminating
cost of failure, enhancing stakeholder confidence and Cipla's facilities ensure quality through constant
bolstering legal compliance. Cipla's quality team is upgradation of equipment, adoption of
the custodian of its quality policies and procedures technological advances and implementation of
and acts as the gatekeeper of review mechanism for industry benchmarked practices. The Company has
regulatory compliance. The team is responsible for developed a robust system to manufacture products
the delivery of high standard products by that adhere to stringent specifications & in-process
implementing meticulous review procedures. The controls subsequently leading to high product quality.
Corporate Quality Assurance (CQA) team oversees the
preparation and communication
Figure 2. Trackwise Quality Management System
TrackWise Quality Managment System (QMS) - Leveraging technology to ensure quality compliance
Logging, tracking and reporting of quality and regulatory issues and actions in QMS through Trackwise
This project was implemented to:
1 2 3
Have an automated and harmonised process
Improve the process and meet regulatory
Ensure provisions
requirements
for controlled access based on user roles and electronic sig
Key benefits derived from this projects are:
1 2 3
Streamlined workflow processes Enabling site level, process level and role-based
Obtaining
securityinformation instantly using query manager
4 5 6
Reduction in approval timeline of manual activity
Reduction of paperForecasting
consumptionof expected
and storage
challenges
area to help identify improvement measures leading to pr
The Company has implemented the Trackwise QMS to enhance data traceability and ensure better quality
compliance. This module has been implemented at all Indian sites for monitoring and overcoming deviation, CAPA
and complaints. Figure 2 provides details on Trackwise QMS implementation.
Pharmacovigilance is an essential component of
Laboratory Information Management System (LIMS) quality and enables Cipla to adopt adequate
has also been implemented to improve measures to identify and enhance awareness
compliance in data management system. LIMS is an regarding
enterprise wide system for Management of Data
and Processes in
Quality Control Laboratories. It has helped in
automation of various lab functions like lot
management, stability study, calibrations,
environmental monitoring, retention samples,
investigations, standard management, culture and
reagent management etc. The LIMS is interfaced with
SAP and analytical balances for data transfer. It is a 21
CFR part 11 compliant end to end solution and has
brought about major lab automation, work
simplification which further strengthened the Quality
Systems. The LIMS has been rolled out across Cipla
and associated units within India and all key routine
functionalities are successfully implemented. The
newly developed functionalities are in process of
rollout as a part of continuous improvement and value
addition to the business.
Safe product destruction

Ensuring safe product destruction is one of the key
activities of the quality function and is an important
aspect to prevent re-use and re-selling of defective
and expired products. The Quality team has
established detailed guidelines and SOPs to
guarantee safe destruction of products. The process
is carried out under the supervision of a designated
officer to ensure
streamlined destruction. The incoming lots received
from stockists and at the depots are examined and
records are maintained for expiry dates and defects.
At the units, the products to be destroyed are
deactivated through streamlined procedures. The
material/destroyed material is then handed over to a
State Pollution Control Board authorised third party
vendor for safe destruction and is overseen by an
approved Cipla staff. Safety is ensured throughout
the destruction process at units as well as at depots.
As a result of the Company’s commitment towards

delivering high quality products, we ensure that our
systems, processes and capabilities are streamlined
towards achieving product quality as well identifying
slightest deviations. For each of the batches recalled
an impact on public health was studied by
conducting a Health Hazard Evaluation, and none of
batches recalled posed any safety issues.
Pharmacovigilance
adverse effects of its products. The Company’s
robust pharmacovigilance system is equipped to
handle and process safety related complaints from
multiple stakeholders such as consumers, patients
and healthcare representatives among others.
Through
a structured customer complaint redressal system,
complaints related to drug safety are directed to
the pharmacovigilance team. While product quality
related complaints are addressed as per the SOP
prescribed by Corporate Quality Assurance (CQA),
the Company has developed a global
pharmacovigilance system
for effective handling and processing of drug
safety- related complaints. The
pharmacovigilance team also undertakes
measures to review current literature in order to
understand the evolving drug reactions.
Investing in these critical elements of
pharmacovigilance captures improvement areas and
aids in standardising and streamlining processes.
The redressal mechanism is supported by a

dedicated phone line and a mailbox wherein
safety-related complaints are received from
consumers, patients and healthcare professionals.
Cipla has an established SOP for diligent follow up
with the reporter for each complaint received. As a
part of this follow-up, the Company enquires about
the patient’s safety and obtains adequate
information to assess the safety
profile of a drug. Cipla’s field team, being an
important link between the Company and end-users,
is sensitised periodically about the importance of
patient health and safety through appropriate
trainings.
Cipla strives to update its pharmacovigilance

practices by improving resource allocation,
establishing effective partnerships with vendors and
implementation of governance mechanisms to adapt
itself to the changing regulatory landscape. Being a
multi-national Company, Cipla undergoes
investigations and inspections conducted by bodies
such as The Medicines and Healthcare Products
Regulatory Agency (MHRA) and The Agency for
Medicinal Products and Medical Device (HALMED). In
FY18, no critical observations were made under the
MHRA and HALMED inspections. As a result of
stringent pharmacovigilance practices implemented
at Cipla, in FY18, Cipla received 30814 adverse event
cases and the reporting compliance to the
respective regulatory bodies was 99.07%. The
cases after being reported to the respective
authorities are captured in the database and this
information is used to prepare PADER for individual
molecule leading to continual improvement.
Intellectual Capital
Cipla’s Intellectual Capital catalyses and strengthens its
portfolio of new drugs and therapies to deliver unique and
affordable medicines and products. Our innovation-centric
culture, dedicated research &
development team, world class laboratories & infrastructure and relentless
focus on quality form the foundation of this capital.
801 Cumulative
new products launched globally during the year,

contributing to innovative healthcare solutions
2492
ANDAs to enhance the outreach
of our medicines
Cipla’s continued focus on patient centricity

Developing novel combination drug formulations,
drives the desire to innovate and defines what the
unique drug delivery systems and complex
Company stands for today – an innovation-led
generics for better patient care
global pharma company. The number of lives
that Cipla impacts positively has been Strengthening intellectual property, including the
consistently growing with the development of our patenting of new products, processes, methods of
product portfolio across various geographies. use, drug delivery systems and medical
devices, mainly in the area of respiratory
Strategic focus areas medicine
Cipla’s Intellectual Capital powers our ambition to build Collaborating with premier research institutes and
a strong and comprehensive product portfolio. The engaging with regulatory bodies to grow the
Company’s 1500+ dedicated scientists, which include reach of critical drugs that are globally
formulation, analytical, and organic synthesis experts, compliant
work relentlessly to deliver quality medicines.
Cipla’s Intellectual Capital is powered by end-to-end
Science is at the core of who we are, and our project management expertise, and robust systems
state-of- the-art laboratories constantly challenge and processes. To optimise efficiency, maximise
convention. Our two formulation facilities and performance and to ensure seamless integration
three API R&D facilities are equipped with of information across the organisation, we have
advanced infrastructure that aid in the development implemented initiatives such as Electronic Lab
and manufacturing of high quality products. Notebooks.
Towards supporting and enhancing its intellectual
Innovation pool
capital, the Company has invested 7.1%* (H1,074
crore) of FY18 revenues on R&D. Cipla’s mission to innovate our R&D assets if pivoted
towards the following critical areas of the business:
Cipla’s strategic focus areas for developing Intellectual
Capital are: API development
Building a pool of innovation, through Cipla’s state-of-the-art research facilities for API
process development are housed across various
locations in India
*OPEX including Depreciation as % to revenue | 1 Refers Launches Of Products Developed By Cipla

2
Cumulative Number Includes Approved, Tentatively Approved And Under Approval Andas For Cipla Ltd, Invagen, Third Party Andas And Pepfar
The API pipeline consists of over 50 complex This in turn has had a positive impact on
developments in the therapy areas of Oncology, Cipla’s environmental footprint.
Hep C, ARV, Diabetology, Respiratory, among others
Biotransformation: Biotransformation encompasses
The products are developed using principles of the use of biological systems to catalyse the
Quality by Design (QbD) and incorporating conversion of one compound to another. Through
Design of Experiments (DoE) biotransformation initiatives, Cipla has been able
to enhance its natural capital efficiency by
Cipla’s API R&D has dedicated oncology and improving productivity, significantly reducing
polypeptide development labs with highly waste streams and generating fewer by-products,
experienced analytical research development teams thereby reducing impurities.
and instrumentation such as NMR, LC-MS-MS, GC-
MS, PXRD, single crystal XRD, etc. Peptide chemistry: Therapeutic peptides are a
promising and a novel approach to treat several
Niche Areas of API diseases, including cancer. They have several
advantages over proteins or antibodies as they
Cipla’s API Integrated Product Development
are (a) easy to synthesise, (b) have a high target
(IPD) team has conceptualised a programme for
specificity and selectivity, and (c) have low toxicity.
adopting the principles of Green Chemistry to
They also hold capabilities such as separation of
develop production processes that are environment
analogous compounds, separation of racemic
friendly. The Company's technological interventions
compounds and handling of thermolabile
towards recycling, reducing and reusing solvents in
compounds.
manufacturing have resulted in lower waste generation
and energy-efficient processes. During the reporting Strengthening API R&D through innovative techniques
year, the Company has undertaken multiple initiatives
towards the twelve principles of green chemistry, some Cipla continues to invest in infrastructure and
of which are: develop in-house capabilities, which help support API
development. Towards this, we have used several
Flow chemistry: Flow chemistry is an established tools to characterise the physicochemical
technique for performing reactions under conditions properties of molecules to ensure they meet FDA
where mixing, temperature, pressure and reaction requirements. Some of these high end tools include:
time are precisely controlled. The Company has
built various flow reactors into its processes such X-ray powder diffraction hyphenated with
as Coflore ACR- Agitated Cell Reactor, Corning DSC inVia Raman Microscope
Advanced Flow Reactor, Spinning-Disk FLOW Morphology G3-ID
Reactors, among others to enhance the safety Nuclear Magnetic Resonance Spectroscopy
and efficiency of its processes.
These new characterisation tools have enhanced the
The strategic investment in flow chemistry has pace of product development and dossier filings, and
enabled us to provide cleaner products, safer also helped Cipla perform in-house characterisation of
and quick reaction, optimisation and easy the molecules for cost optimisation.
scale-up.
Intellectual Capital 5
Coflore ACR-Agitated Cell Reactor Spinning-Disk-Flow Reactor Corning Advanced Flow Reactor

18
Formulation development
developed Computational Fluid Dynamics (CFD)
Cipla is actively engaged in developing a toolkits to support rapid development and high
formulation portfolio and pipeline across its performance of respiratory devices. Device resistance
formulation facilities: significantly impacts optimal drug delivery and
respiratory comfort during medication. Cipla conducts
Formulation development is focused on Respiratory, analysis of medication devices as well as disease
Oncology, ARVs, Ophthalmology, CNS, CVS among ailment detection. Based on air flow analysis and
others Design of Experiments (DOE), we conduct a basic
simulation to determine device resistance, which helps
Over 60% of the products are developed arrive at optimised device models. The best model is
for international markets further analysed to deliver devices that optimise the
patient experience and meet their evolving needs.
The pipeline has over 250 products, including
complex formulations Strengthening intellectual property
Platform technologies Cipla’s innovation focus can be gauged from the
Cipla has made strategic investments in multiple patents that the Company holds. These
platform technologies resulting in enhanced drug include drug substances, drug products, platform
safety and an increase in efficacy through a technologies, IP on polymorphs and crystallinity, and
targeted therapy medical devices. During FY18, Cipla filed 35 patent
approach. The aim of these investments is to applications, of which 24 were successfully granted.
formulate differentiated products that overcome New product launches and regulatory approvals
the key challenges of conventional drug delivery
systems and add value to current products. The thrust on advancing Intellectual Capital is our
driving force to innovate and stay ahead of the
Over the years, Cipla has developed and curve. This is reflected in the consistent growth of
adopted a range of platform technologies such our product portfolio, which witnessed 80 new
as Nanotechnology, Liposomal, Modified Release launches during the year:
Technology, Inhalation Technology, Microsphere,
Hot Melt Extrusion, Oral Disintegrating Technology, 11 products launched in the US; these include
Peptides, Implants, Intra-vaginal ring and Depot products such as Budesonide Respules, Decitabine
Injections. Injection and complex products like Sevelamar
Launched Minispacer, Multihaler 60 and
We have built platform technologies in the field of
Synchrobreathe Respiratory devices in India along
respiratory devices to facilitate effective drug delivery
with 19 other products
across dosage forms. These include breath-actuated
inhalers and unit-dose nasal sprays. Imatinib 400 mg Tablets and Nifedipine XR tablets
30, 60 mg launched in SA
In an era of digital disruption, Cipla has been
developing a family of digital devices such as peak 16 products introduced in Europe, which include
flow meters and digital inhalers that will connect 10 respiratory products
patients with doctors, provide portable diagnostic 22 products launched in international markets,
solutions, assist them in self-management of diseases which include 14 respiratory products
and improve adherence to the prescribed dosage
schedule. 7 products were launched under the Cipla
Global Access (CGA) programme
Cipla is also building strong skill-sets in engineering
design, systems modelling and simulation. We have
2 7
Number of new 11 16 22 SA CGA 22
International
launches1 US EU India markets
Market
1
Refer launches of products developed by Cipla
Cipla’s R&D department also engages with
5 dossiers submitted to DCGI, India
regulatory authorities such as US FDA, ANVISA,
First product filed in Brazil (Imatinib tablets)
CFDA, MHRA, WHO and others across the world to
promote filings of Drug Master Files (DMFs), First CTA filed for China (FPSM)
Abbreviated New Drug Applications (ANDAs) and 16 dossiers submitted for SAGA (10 South Africa
Marketing Authorisations (MAs) for own and + 6 CGA)
partnered products. Some of the successful filings
3 products filed in Europe
undertaken by the Company during the year are:
4 products filed in
24 US ANDAs filed, including 7 NCE-1s
Australia
4 pre-IND submissions to USFDA
Cipla’s noteworthy products
Artesunate Suppositories
Isolated rural communities have poor access

to be delivered at first point of care. These
healthcare facilities, and the risk of death can be administered to ‘buy time’ until
from severe malaria is the greatest in the first parenteral
24 hours. treatment is available. Cipla has developed lipid
base formulation and its bio-equivalency was
Artesunate Suppositories (100 mg) have been established against the TDR formulation.
developed as pre-referral treatment that can
Abacavir + Lamivudine + Lopinavir + Ritonavir Granules
This is the first worldwide Fixed Dose Combination

(FDC) containing Abacavir + Lamivudin + This formulation is designed as sprinkle capsules
Lopinavir + Ritonavir (30+15+40+10mg) targeting the to be administered with soft food (porridge) to
paediatric population. The idea behind improve patient acceptance.
manufacturing this formulation was to have better
The manufacturing process for standalone
bioavailability and improved patient compliance as
actives is complex but Cipla has successfully
the product is better taste-masked.
managed to fill all the actives in a single unit
dosage form, thus making the therapy easily
STIP Tablets accessible.
While there is no innovator available
worldwide for the Fixed Dose Combination
(FDC) of Sulfamethoxazole, Trimethoprim, This FDC is indicated for the prevention of tuberculosis,
Isoniazid and Pyridoxine Hydrochloride bacterial pneumonia, malaria, and isosporiasis and to
(800/160/300/25mg), individual innovators reduce mortality and hospitalisations in HIV-infected
are available for Co- trimoxazole and patients without active TB.
Isoniazid tablets.
Cipla has developed a tablet formulation with <
10% of excipients to control the tablet weight
(Active 1,285 mg + excipients 140 mg = 1,425 mg).
Partnerships for novel solutions
In addition to developing our own products, we collaborate with strategic channel partners to enhance
access to medicines and develop unique products that will help address patient requirements across the
globe.
Cipla is a reliable partner for HIV and TB therapy worldwide, for which we develop formulations with
international non-profit organisations such as DNDi and MMV. The Company has co-developed masked
products like 4-in-1 ARV therapy for paediatric ARV patients, and Novel Taste which is in the registration
phase. We have also developed an anti-malarial Artesunate Suppository in collaboration with MMV, and a
4-in-1 Anti TB therapy medication along with WHO.
Human Capital*
We at Cipla are inspired by our purpose of 'Caring for Life' and
strive to extend this philosophy to our associates# and their family
members. Our endeavour is to build a high-performance and
meritocratic work culture with care as the cornerstone.
1/3rd of the Company’s 160 thousand + Man-hours Average age of associates

management council is invested on EHS trainings just over 30 years
represented by women
The section unfolds under the following heads :
Talent that gives us a competitive edge Performance and compensation Ensuring a healthy and safe working environment
Investing in the future Connecting with people Ethical practices and human rights
Talent that gives us a competitive edge

Cipla’s highly skilled global workforce, with its unwavering commitment to excellence, has been a critical pillar in the
Company’s success story. We achieve our shared goals and organisational objectives by strategically focusing on
attracting, retaining and developing the correct talent mix with diversity in relation to gender, age, expertise and
geographical heterogeneity.
38
Fresh MBA graduates hired as part 19%
of the Young Managers Voluntary attrition rate
Programme.
Our Code of Conduct confirms our commitment of being an equal opportunity employer with no
discrimination or harassment and a drug-free workplace.
*Covers Indian operations only

#
Employees at Cipla are called as Associates
Cipla’s workforce: Its strength

Total number Number of
of employees Number of permanent
Total number of hired on permanent women employees with
contractual/
Category employees 1
casual basis employees 3
disabilities 4
Number of
employees under
each category 23610 8912 2624 13
Investing in the future Succession Planning

Learning and Development
Creating a talent pipeline for the right candidates
With the launch of the Cipla University (CU), we is an ongoing exercise that is implemented through
continue with our commitment to create a high- various initiatives taken under talent management
performance work culture by building employee and succession planning at Cipla. Cipla’s Talent
capabilities that deliver consistent results for the Management Board assessed 65 potential leaders
present and future through the Leadership Academy at different levels of management. The succession
and various domain-specific functional academies. planning has also been discussed in detail in the
Following are the key advances observed during Corporate Governance Report.
FY18:
Roll-out of Cipla’s First Principles which saw Performance and compensation
an enrolment of 100% employees including
Performance management system – MiDNA
senior leadership
Launch of OneCipla Leadership Academy During FY18, the annual performance review cycle of
with a well-defined Leadership Development India operations was moved from percentage-
road map based increment compensation to quantum based
across employee life cycle, in line with Cipla increments. This is based on the 3P philosophy of
Leadership Essentials. Flagship interventions such Position, Performance and Proficiency.
as LeadX and CLAP were launched and a CEO Compensation-MiRole
sponsored Leadership Summit for the top 50
leaders of the organisation was also hosted by To establish a well-defined organisation structure and
the academy global banding hierarchy across jobs and business
units, we launched the MiRole project on 1st April,
Meaningful partnerships were cultivated with world-
2017. Using the hierarchy of jobs as an anchor, all
class content providers to promote a culture of
positions in the Company have been benchmarked
continuous self-learning
and
assigned appropriate ranges for talent acquisition
Cipla University
conducted
programmes.
179 3180805
unique Man-hours in skill-upgradation completed by 12,235
training permanent employees, including 501 women.
Human Capital 5
and retention.
1
Information in line with BRR Principle 3 Question 1 / 2 Information in line with BRR Principle 3
Question 2 3 Information in line with BRR Principle 3 Question 3 / 4 Information in line with BRR
Principle 3 Question 4 5Information in line with BRR Principle 3 Question 8

18
The IBL programme is one of the many instruments used to drive motivation within the Company’s sales force, thereby strengthening its competitive
During FY18, 48% of Cipla’s employees qualified for IBL, indicating a highly motivated and agile field force working towards enhancing the outreach of
Connecting with people
To win in the marketplace, we must first win in the workplace.

Cipla Engage is all about envisioning and co-creating a shared future with our associates. The framework
discusses the authenticity of its intent and the persistence of efforts to communicate, engage, appreciate,
reward, and recognise people, thereby building a performance-driven and meritocratic organisation.
The Cipla Engage framework is structured around five core pillars :
Recognition Managerial Engagement Leadership Connect Employee Experience Holistic Well-being
Recognition halls are a
Applause is an integrated online and offline

recognition system launched globally to express
gratitude and encourage efforts of association.
Managerial Engagement
CARE is the way managers at Cipla engage with

their team members. CARE is an acronym for
Celebrating moments, Applauding colleague to
colleague recognition, Rewarding results and
Energising associates through communication,
conversations and capability building.
Leadership Connect
OneCipla Townhalls
Global town halls are conducted quarterly and

led by the Management Council. The town
platform for our leadership to communicate
with our associates on Cipla’s strategy, plans,
performance, challenges and achievements
for the quarter and provide an opportunity for
the associates to have real- time interactions
and conversations with leaders.
MiVoice Survey
An organisation-wide MiVoice employee

engagement survey was conducted for the first
time in FY17, with an attempt to build an
organisation that listens and communicates.
This was followed by a MiVoice Pulse Survey in
FY18.
78%
Employee engagement index in 2017 as
compared to 76% in 2016
Employee Experience developments from around the globe, showcase
employee success stories, disseminate information
Today, associates look forward to not just about upcoming events, facilitate leadership
engagement, but overall involvement. We belive in connect, and allow time for some light-hearted
creating entertainment and conversation. Given the
lasting experiences in the minds and hearts of our diversity and geographical breadth of the
associates, and extending this to their families organisation, Cipla Unplugged caters to this
through celebrations such as OneCipla family day, diversity whilst ensuring a
birthdays, work anniversaries, festivals like common communication platform that brings the entire
Dussehra, Christmas, and Halloween, and important organisation together. Cipla Unplugged touched 100%
days like Women’s Day, Nelson Mandela Day, World of Cipla's workforce.
Asthma Day and World Autism Day, amongst
others. Joy of Giving
Cipla believes that supporting social causes is an
9938 important facet of its employee engagement activities.

Volunteering benefits the local communities and is
Associates were vaccinated on World Hepatitis an opportunity for employees to make a meaningful
Day impact in the society.
Cipla Unplugged
Launched in May 2017, Cipla Unplugged is our half-

5000
hour bi-monthly corporate radio broadcast live Ciplaites participated in 40+ social events.
through the PA system. This helps us communicate
the organisation’s business plan and progress, new
Holistic Wellbeing
I-Care
Physical Wellbeing (MiFitness) Work-Life Assistance Programme Day-Care Centre Programme

Financial Wellbeing
Physical Well-being (MiFitness)
office s sessions
8200+ 5485 yoga,
Zumba 1371
Colleagues
participants and associates availed
enrolled
opted for in- ergonomic gym discounts
420 1241
colleagues
colleagues
accessed the
availed
in-app guided
personalised
meditation
nutrition
session
counselling
Work-Life Assistance Programme (WLAP) care centre can be accessed by both men and women
associates.
WLAP, a confidential counselling service, has
been introduced to equip and support our Financial Well-being
associates and their immediate family members
to cope with stress. Financial well-being programmes were conducted
to help associates become financially prudent. The
Day Care Centre Programme programme is structured to address the concerns on
taxation and savings, and educates them on different
Cipla understands that balancing parenthood with avenues available for investment
full-time work can be challenging at times and we
have extended day care facility across locations.
The day
Ensuring a healthy and safe

All employees and contractors undergo pre-
working environment
employment and periodic health assessment to
Health and Safety aspects are an integral part of ensure good occupational health. Apart from
Cipla operations and the Company is committed medical plan benefits and regular screening, Cipla
towards providing a safe and healthy workplace for works
employees, contractors, visitors and the surrounding on targeted health interventions followed by health
community. This commitment is top driven and is
coaching. The Company measure its interventions
periodically monitored by the Investment and Risk
with a clear understanding that well-being is a
Management Committee.
measure of employee’s happiness.
The importance of striking a good work-life balance is being recognised worldwide as a means to boost
productivity. Cipla’s policies make provisions for these situations and include the following leave options:
Employee welfare policies

3Paternity leave
1 Leave Policy 2 Sabbatical leave
Leave up to 1 year to help Seven calendar days

Quarterly leave balance
employees pursue their of paternity leave for
for better holiday
interests/ other obligations male employees
planning
6Adoption leave
4 Compassionate leave 5 Maternity leave
Six months of paid
5 days leave to support Six months of paid adoption leave
employees in times of death of maternity leave to enjoy
their immediate family members motherhood
The Company has also introduced flexible working arrangements to ensure work- life balance for employees.
Cipla advocates EHS as a line function The Company follows a risk-based approach for
responsibility. Employees, Supervisors and management of hazards and its associated risks,
Managers are directly responsible for ensuring primarily at source. All Cipla manufacturing sites
their own safety, safety of colleagues, promoting and IPD (excluding Sikkim II) in India are BS OHSAS
a safe and healthy workplace and protecting the 18001 certified. The unit at Sikkim II, being a new
neighboring community. The management formulation plant has initiated its journey to obtain
systems are implemented through equipment, certification.
procedures and people.
Positive initiatives to enhance safety at sites
Cipla firmly believes that workplace injuries and

illnesses are preventable. To support this, the
Company lays great emphasis on training its
994706 666076
employees on EHS matters and follows a Man-hours of formal Man-hours of formal
structured approach in ensuring that all employees EHS training to its EHS training to its
and contractors undergo EHS training. These employees contractors
trainings are conducted by internal
and external subject matter experts. Employees in
operations are assessed on their EHS performance.
EHS induction Near miss reporting EHS Trainings at Counselling based on Internal & External
programme for and appreciation all levels including EHS observations Audit Programme
Employees & contractors
Contractors
External EHS expert Reviews and Focused drives such Observation of Sharing of EHS
management trainings by as Road Safety, National Safety week, learnings, including
Corporate EHS Office Safety and World Environment those from incidents
Home safety day, Fire service day, across the sites
World No tobacco day
The Company has developed an IT platform to capture and track all incidents including near misses
(learning incidents), EHS surveillance and EHS audits for its operations. The incidents and learnings
derived are shared across the organisation.
6
EHS audits during the year included cross-site All employees and stakeholders can express their
audits; regulatory compliance audits at grievances and report genuine concerns about
Patalganga and Virgonagar, water audit at Goa unethical behaviour or violation of the Code of
and electrostatic discharge survey at Kurkumbh by Conduct through a Whistle-blower mechanism. The
external specialists. In addition, few sites were Audit Committee oversees the functioning of this
audited on EHS aspects by the customers. mechanism and receives periodical reports from the
Ethics Committee.
All sites have safety committees duly represented
by management and staff. The committees meet In FY18, the Company received thirty three complaints
at regular intervals to review the safety pertaining to unethical business practices and all of
performance. In addition, the EHS performance them stand closed as on the date of this report
is also reviewed regularly at Corporate level. after due investigation 8. A total of five cases were
These also provide a forum for improvements. reported under the Prevention of Sexual
Harassment Policy during FY18, and all of them have
An all time emergency preparedness is ensured been investigated satisfactorily and closed. 9 There
through regular table-top and mock drills across were no instances
operating sites and offices. of any child labour, forced/involuntary labour
or discriminatory employment during the
Ethical practices and human rights year.10
The Company ensures protection of human rights and Cipla has always repected the right to freedom of
upholds the dignity of every individual associated employees to join any employee association. Currently,
with it. This is supported by a robust Corporate Cipla has three employee associations, each at
Responsibility Policy and a Code of Conduct, which Patalganga, Kurkumbh and Bengaluru, with employee
highlights our zero-tolerance approach to unethical participation of 9.94%, 4.48% and 10.79% respectively. 11
behaviour.7
7
Information in line with BRR Principle 5 Question 1 / 8 Information in line with BRR Principle 1,
Question 2 9 Information in line with BRR Principle 5 Question 2 / 10
Information in line with BRR
Principle 3 Question 7 11
Information in line with BRR Principle 3 Question 5 & 6
Social and Relationship Capital

Cipla’s commitment to growing our social and relationship capital is
demonstrated through our patient-centricity, community initiatives and
our focus on creating shared value with key stakeholders. This is an
expression of the way Cipla consistently fulfils our purpose of ‘Caring
for Life’.
Relationship Capital
Healthcare professionals Shareholders and InvestorsGovernment & Associations

End patients
Channel partners Institutional partners Business alliances

Suppliers
Cipla’s Relationship Capital Enhancing access of medicines
Cipla’s philosophy towards our Relationship Capital The Company’s tender based institutional
is based on conducting business in a transparent business unit Cipla Global Access (CGA) works
and ethical manner with focus on the triple bottom with globally
line (people, planet and profits). The Company has renowned agencies to provide accessible and
identified End patients, Healthcare professionals, essential treatment to people in developing
Investors, Government & Associations, Suppliers, countries who face life-threatening diseases such
Channel partners and B2B customers as its key as HIV/AIDS, malaria, multi drug resistant
stakeholders. Cipla has institutionalised a structure of tuberculosis, reproductive health and oncology.
stakeholder engagement to ensure timely, accurate, Below are some of Cipla’s key initiatives for
consistent and relevant information exchange with increasing access:
each of the stakeholder groups. This streamlined
CHAI: In 2001, Cipla collaborated with Clinton
approach towards stakeholder value creation over
Health Access Initiative (CHAI) for providing HIV
the years has resulted in a corresponding rise in
treatment to countries in Sub-Saharan Africa for
intangibles associated with the brand and
USD 1 a day. During FY18, CHAI approached Cipla
reputation.
for a three-way collaboration with the American
Meeting End Patient Needs Cancer Society (ACS), in order to provide life-
saving cancer treatments in twenty countries in
As a responsible organisation with a market-leading Sub-Saharan Africa. The partnership will help these
R&D set up, Cipla works to improve affordability African countries gain access to 16 essential cancer
of medicines worldwide through initiatives for cost medications, including chemotherapies. It will also
optimisation, product portfolio enhancement and reduce the reliance on middlemen and private
complexity rationalisation. We have consistently distributors, stabilise prices, streamline registration
focused on increasing access to medicines, improving of products, and promote the entry of international
affordability, accessibility and enhancing patient suppliers with quality-approved products. The
experiences, and have assigned dedicated resources implementation of such programmes will help
towards this. African governments to gain greater access to
cost-competitive and quality-approved medicines
while substantially reducing current costs.
61
Human Capital / Social and Relationship Capital
Q-TIB: Cipla’s Q-TIB, a global breakthrough, is a Launched in FY18, the campaign has had a television
single-tablet fixed dose combination for TB reach of 30 million views in West Bengal and 47
prophylaxis in HIV. During FY18, Q-TIB received WHO million views in Andhra Pradesh and Telangana. It
approval and gained global recognition. By May has had a digital reach of more than 9 million views
2018, the Stop TB Partnership, which has a presence and has received wide coverage in national and
in over 100 countries and a network of 1500 regional media. The campaign has garnered over 100
partners, listed Q-TIB in their catalogue. As a doctor testimonials and as many patient testimonials
result, an estimated 11 million HIV patients may appreciating and acknowledging the positive impact
benefit from Cipla’s Q-TIB. of the initiative.
Improving patient experiences Breathefree: Cipla launched Breathefree, a
comprehensive patient-centric support system for
Berok Zindagi: As a pioneer in the field of
respiratory care in India. Breathefree aims to increase
respiratory medicine in India, Cipla works towards
awareness about asthma and other respiratory
enhancing patient experience. During FY18, we
diseases and provide counselling and help in disease
launched Berok Zindagi, a mass awareness
management and patient adherence. During FY18, the
campaign to educate patients, caregivers and the
Company conducted several awareness programmes
general population on the smartest ways to manage
through camps, clinics and screenings and reached
asthma. The campaign aims to make people aware
out to over 15 lakh patients. Cipla was also
that:
instrumental in extending patient support through
Asthmatics can lead a fulfilling life 120+ chain pharmacy outlets in association with
Apollo pharmacy to build awareness amongst
Inhalation is a smart choice to manage asthma
patients. These outlets add to the existing
It is socially acceptable to be asthmatic and Breathefree Chemist network of 4,000 support
use inhalation as treatment points across the country. We have joined hands
with the Chest Research Foundation to launch a
unique initiative called ‘CORD Programme’
(Certificate course in Obstructive airway Diseases).
This programme sets new standards in respiratory
counselling and care, and has helped to provide
advanced skills to over 400 Breathefree Educators.
Learn more about Breathefree

at https://www.breathefree.com/

18
Then we got reckless. We started home remedies, we went to homeopathy. We started behaving like totally uneducated, unaware people. We
Interactions with Healthcare Professionals

Focus on Investor Relations
At Cipla, we believe that supporting continuous
Cipla regularly connects with investors through a
development for healthcare professionals is part
range of engagement mechanisms such as earnings
of our responsibility for the medicines we
calls, presentations, meetings and conferences.
develop. We have designed best in class
The Company provides transparent and open
knowledge platform and
communication to all investors and shareholders
e-learning programme – CiplaMed - to help
to assist them in understanding Cipla’s business
healthcare professionals across the country stay
strategy as an aid to informed decision making.
abreast of the latest developments in medicine.
We have also adopted an Investor Grievance
With Ciplamed, we are providing the most updated
Redressal Policy to provide speedy solutions for
content to almost 50,000 HCPs across 18 specialities
grievances.
in India. Through our Patient Support Programmes,
especially in Oncology and Cardiology, we support Learn more about Cipla’s relationship with
HCPs to involve and educate patients on treatment, investors in the Corporate Governance Report
and recovery process, thereby not only improving Page 132 to Page 166
the patient experience but also creating a more
engaged and empowered patient community.
Relationship with Government and Associations3
Through our Breathefree network in Respiratory we
generate over 2 million patient touchpoints every Cipla believes in building transparent engagement and
year. Our 600 Breathefree counsellors support advocacy platforms with the Government on various
HCPs in conducting more than 20,000 screening regulatory and policy issues while ensuring
camps/ spirometry clinics, providing 200 standalone compliance to ethical corporate governance
counselling centres along with patient education practices. The Company actively engages with
material in over 18 localised languages in order to various Government departments in India both at
generate awareness on respiratory diseases. the Centre (including Ministry of Health and Family
Welfare, Drug Controller General of India,
Department of Pharmaceuticals, National
Pharmaceutical Pricing Authority and Ministry
1
Information in line with BRR Principle 9, Question 4 / 2 Patient name has been changed
3
Information in line with BRR Principle 7, Question 1 and Question 2
of Chemicals & Fertilisers among others) and at Collaborating to combat Anti-Microbial Resistance
State level (including Chief Ministers Office, Food
and Drug Administration, Pollution Control Board Anti-Microbial Resistance (AMR) is the ability of
and various state industrial development microorganisms (bacteria, viruses, parasites) to
corporation among others). Cipla also interacts with stop antimicrobials (such as antibiotics or
Government agencies in ensuring fair drug price antivirals) from working effectively, and is an
approvals in various countries outside India. issue of global concern as it reduces the
effectiveness of treatment. Cipla
Cipla actively engages with Indian Government is signatory to the Davos Declaration of January
agencies such as the Drug Controller General of 2016 on fighting AMR. We are also a member
India (DCGI) and National Pharmaceutical Pricing of the AMR Alliance, which has 130+ members
Authority (NPPA) to demonstrate the attributes of new and Cipla is on the Board of IFPMA
drugs and emerging technologies that will benefit the (International Federation of Pharmaceutical
Indian customer. We regularly interact with various Manufacturers and Associations).
state Governments across India for participation in
awareness initiatives for COPD, AIDS, cancer and Cipla is an active player of the 13-member
diabetes. Industry Alliance Manufacturing Workgroup formed
to address the manufacturing aspects of AMR. As a
The Company is an active member of industry part of the Workgroup, we made contributions to the
associations like: development of the Antibiotic Manufacturing
Framework which provides a methodology and set
Confederation of Indian Industry (CII)
of minimum requirements needed to conduct a site
Federation of Indian Chambers of risk evaluation of both macro and micro controls in
Commerce & Industry (FICCI) supply chains. In line with the commitments of this
Indian Pharmaceutical Association framework, Cipla has assessed the antibiotic
footprint of its manufacturing facilities and has
Federation of Pharma Entrepreneurs (FOPE) developed a plan for assessing and monitoring the
Pharmaceutical Export Promotion Council antibiotic supply chain.
(PHARMEXCIL)
The Company also represents IDMA (Indian
and is part of several pharmaceutical/ Drug Manufacturers Association) as part of an
healthcare related committees and sub- expert committee formed by the Central
committees of above associations. The Pollution Control Board for development of
Company has submitted standards for antibiotic residues in
recommendations for key policies like Pharmaceutical pharmaceutical industry effluents, an initiative
Policy, Drug Price Control Order, Clinical Trial Rules, under the India National Action Plan on
OTC products & gelatine capsules. Our proactive combating AMR.
approach towards maintaining and enhancing these
Customer value creation
relationships has helped us stay aligned with impending
policies and regulations, thus making Cipla a future- Over last few years, Cipla has been expanding its
ready organisation. global foot print through strategic partnerships with
channel partners, business alliances and institutional
The Company is on the board of the Association
partners. The Company’s support to its
for Affordable Medicines of Indian
partnerships extend to product development,
Pharmaceutical Companies in the US and is a
sourcing of materials and manufacturing finished
member of the Indian Pharmaceutical Alliance
products for distribution.
in India.
In addition to being continuously engaged
with its partners to provide operational
support, Cipla
actively establishes new partnerships and strengthens
the existing partnerships through regular face to quality products. We extend our Code of
face meetings, facility/site visits and other global Conduct to all suppliers and contractually
partnership forums like Convention on obligated business partners; this ensures that
Pharmaceutical Ingredients, American diabetes they form a part of the
Association 78th Scientific Sessions, Stop TB global Cipla family, which believes strongly in patient
Partnership and others. centricity.
The Company ensures that all product quality Cipla’s continued focus on innovation can be witnessed
related complaints received from customers are in our initiatives towards digitising our supply chain.
acknowledged, investigated and responded as The Company implemented the eSourcing and
per the Standard Operating Procedures eAuction platform during FY18, which uses auction
prescribed by events to enable online negotiations with multiple
Corporate Quality Assurance (CQA). These SOPs suppliers. Through automation, we have been able
have been developed to ensure necessary actions to attain overall cost reduction, better the
are taken to prevent the recurrence of similar transparency and visibility to the negotiation
complaints. During the course of the year, Cipla has process and better price discovery. Cipla
successfully resolved 86%4 of the 2,603 conducted over 807 eSourcing / eAuction events
complaints 5 received. during FY18.
Cipla also has in place a SOP for providing facts To enhance efficiency across the supply chain, Cipla
about its products which covers aspects of creating implemented catalogue-based procurement for
awareness with respect to dosage compliances and contracted items. This process allows requesters to
guidance on taking complete course of prescribed directly order through the platform. The initiative
treatment. Cipla has a dedicated website www. has not only provided enhanced visibility to requestors
ciplamed.com, which is aimed at meeting the needs of but also led to a reduction in manual effort and
any stakeholder. The Company follows the packaging increased efficiency.
and labelling standards, regulations and guidelines
for producing any promotional material6. There is Cipla’s supply chain strategy emphasises sustainable
no significant case filed or pending as on the end of procurement and the Company puts in dedicated
FY18 against the Company regarding unfair trade efforts towards encouraging local sourcing of
practices, irresponsible advertising or anti-competitive materials. This move has led to a reduced carbon
behaviour7. footprint of our products 8. We also work with small
and local producers and provide on-site training
Cipla’s Supplier Initiatives towards improving process quality and enhancing their
awareness on compliance 9.
Through effective value chain management, we
work closely with all suppliers to ensure superior
4
Information in line with BRR Principle 9, Question 1 / 5 This number includes complaints from any person in contact with Cipla’s product,
experiencing dissatisfaction. (E.g., complaints received from patients, physicians, medical reps, regulators, stockists, etc.)
6
Information in line with BRR Principle 9, Question 2/ 7 Information in line with BRR Principle 9, Question 3
8
Information in line with BRR Principle 2, Question 3 / 9 Information in line with BRR Principle 2, Question 4
Cipla’s Social Capital
At Cipla, our work is not just about making medicines, it is about making a difference. We care for patients
and communities, for partners and stakeholders, for people and their families. It is this commitment to caring
that has been driving us since 1935. We begin each day at Cipla focused on our commitment of 'Caring for
Life'.
Social Capital
HEALTH EDUCATION SKILLING
CSR Policy
Selection and monitoring process
Our CSR policy is aligned to our vision of being a
In order to ensure robust execution and monitoring
socially responsible corporate citizen. In line with
of CSR projects we have invested considerable
Companies Act, 2013, our governance structure, CSR
amount of time in strengthening the Cipla
activities, and mechanism for executing, monitoring
Foundation team, and building strong governance
and reporting are encapsulated in the CSR policy.
processes.
Governance structure
We have developed and implemented an
Cipla has a Board constituted Corporate Social operations manual and an online project monitoring
Responsibility (CSR) Committee which identifies system. The Operations Manual details the
the thematic areas for CSR projects; standard operating procedures for partnership and
recommends expenditure to be incurred on project management, including due diligence, and
CSR activities; and devises a robust mechanism project approvals based on the background,
for implementing and monitoring the CSR experience and expertise of the CSR partner.
projects. The detailed charter of the CSR
The online project monitoring system helps in
Committee forms part of the Corporate
measuring and monitoring deliverables as agreed to
Governance section of this Annual Report.
by partner organisations. It is continuously being
Cipla’s CSR initiatives are mainly undertaken through upgraded to ensure effective utilisation of funds,
Cipla Foundation. These initiatives were put in monitoring and reporting. 11
place long before the CSR law came into effect.
CSR Spend (H in crs)
The Foundation works with credible institutions,
NGO’s, government agencies, individuals, 32.2012
visionaries, domain experts and other foundations 28.25
to further enhance the outreach of its CSR 20.48
initiatives.10 Ms Rumana Hamied, CEO of Cipla
Foundation, is a permanent invitee at the CSR
Committee meetings. She apprises and facilitates
the CSR committee in monitoring of the projects.
FY16 FY17 FY18
10
Information in line with BRR Principle 8, Question 2 / 11
12
CSR activities CPCs journey of 20 years.
Our CSR efforts are aligned across the three focus

areas of Health, Education and Skilling.13 Our
projects across these focus areas aim to improve
the quality of life of marginalised and vulnerable
communities who are unable to realise their rights
and leverage their opportunities. 14
Health - Enabling last mile reach of preventive

and primary health services in communities
We aim to provide affordable and accessible

quality healthcare solutions to communities
through various initiatives.
Cipla Palliative Care and Training Centre (CPC)
Our flagship initiative, the CPC, was launched in

1997 in Warje, Pune to provide free-of-cost holistic
care for cancer patients and their families. The
centre provides physical, social, psychological and
spiritual counselling to patients suffering from life-
threatening diseases. It is focused on improving the
quality of life of patients and
their caregivers by helping them to effectively deal
with distress.
The Centre has a unique design that offers an

atmosphere of peace and serenity. The CPC’s
multi- disciplinary approach is supported by a
competent team of doctors, nurses, pain specialists,
nutritionists, physiotherapists and medical social
workers. This integrated team works closely to
influence the experience of care and to maximise
the quality of lives for patients and their families.
The multi-disciplinary approach includes OPD Care,
In-patient Care and Home Care.
Photo Courtesy Amit Pasricha

1997 - inauguration by Dr Y. K. Hamied. Welcomed the first patient
1998 - Welcomed the first set of volunteers
2004 - Began home care services
2007 - First external OPD
2016 - Extended support to orgnaisations in palliative care

(including paediatric palliative)
2018 - Welcomed
14000th patient
CPC Multi-Disciplinary Approach
OPD Care - Counselling, information and

palliative care treatment advice is provided to
patients and families.
In-patient Care - Patients and family members

stay at the Cipla Palliative Care and Training
Centre.
Home Care - Patients in and around Pune can

avail of home care services. CPC multi-
disciplinary team visits them regularly.
Highlights of FY18:
Reached out to Empowered
4300+ 1000+
patients care givers
3000+
home visits
undertaken
13
14
Trainings Key Health Initiatives
The unique model of family care, in-patient facilities We also focus on promoting awareness and self-
and multi-disciplinary team makes CPC the sufficiency in healthcare through community
preferred site involvement, health education and medical assistance.
for several training programmes at state, national
and international levels. Doctors, nurses, social Doorstep health services
workers and volunteers interested in palliative care
have undergone the following courses offered by We bring primary healthcare services within the
CPC: reach of communities through mobile health vans at
Indore, Baddi and Patalganga. Free services include
End of Life Nursing Education Consortium (ELNEC) diagnostics, counselling, awareness and follow up
Nursing Assistant training services.
‘Essentials of Palliative Care’ under the aegis of OPD services to
96000
Indian Association of Palliative Care (IAPC)
Certificate course in Palliative medicine and Palliative
nursing in collaboration with Indo-American Cancer community members covering 66 sites
Association and Pallium India, Trivandrum
Palliative care with other partners
Homecare
We collaborated with partners to support home

care programmes in Delhi NCR and Mumbai for
people from low income groups suffering from
cancer.
3300+
home visits undertaken Maternal health services15
Paediatric palliative care We are strengthening the primary healthcare services
focusing on improving maternal health outcomes in
We supported various organisations in enhancing their
seven municipal corporations in and around Mumbai.
paediatric services so that children can receive the
highest standard of treatment, care and support. We Reached out to
also support awareness programmes for caregivers
and children, and training and capacity building of
nursing staff and doctors.
97000+ 58000+
Support to
2000+ pregnant women women attended

children, parents and professionals health talks
Disability detection, treatment and management
r people with cerebral palsy in Kolkata. This 20 bed facility also acts as a training We
and have created centre,
demonstration a ‘Centre of Influence
and provides fortraining for caregivers and p
practical
Developmental Disabilities’ to focus on designing,
implementing and disseminating training programmes
for parents, community workers, teachers and
professionals. We provided trainings to 1500+
participants.
15
Hepatitis Cipla Foundation South Africa has partnered in
following initiatives
We partnered with a super speciality government
medical institute in New Delhi to train nurses and Miles for Smiles
primary care physicians in timely diagnoses of
treatment and management of viral hepatitis. We Miles for Smiles ignites hope, creates awareness
also extended equipment support to a specialised and raises funds for Operation Smile to facilitate
hospital providing subsidised treatment for patients corrective surgery on children born with cleft lip or
with liver diseases. We reached out to more than cleft palate. For these children, a relatively quick,
3500 patients under this initiative. simple operation results in a life-changing smile. We
strive to ensure that every child with a cleft lip or
Managing Thalassemia cleft palate has access to this level of surgical
care.
We partnered with credible organisations to support
patients suffering from Thalassemia.We supported 24
bone marrow transplants; provided financial support
to 130 patients; and provided infrastructure support to
a government institute reaching out to 740 patients at
Mumbai.
Owethu clinics
Owethu focuses on providing a broad range of

Sanitation
primary healthcare services. The clinics use
We have supported the construction of 53 highest quality, purpose-built pods for the delivery
sanitation blocks for communities in and around of a variety of services, including dental care,
Cipla’s units, for 270 households. primary care,
social services, maternal and child health, healthcare
Setting up an Eye-way Helpdesk education and trainings.
As a part of the Eye-way network, we helped Sha’p Left

establish a helpdesk in Mumbai for visually impaired
individuals. Sha’p Left is a patient-centred, population-focused,
4300 cost-aware, nurse-driven primary healthcare service.

We provide infrastructure, systems and support to
individuals as highly qualified Sha’p Left nurses to enable the delivery
of accessible, quality, affordable care in a dignified
sisted setting. We treat people closer to home, in their
communities, and help reduce the impact of common
illnesses and chronic diseases.
sciences.
Education – Providing a platform and opportunities
to students and teachers for creative learning.
To help underprivileged children and young people

of our country realise their potential, we support
various programmes in the spheres of primary and
elementary education and vocational training
among others.
Sparking curiosity and learning
We support mobile science vans to promote

science education for children and teachers through
interactive sessions and hands-on science
experiments. Each van travels to remote schools and
communities with over 100 science models that
cover a wide range of topics in physics, chemistry
and biology for Class 5 through 9.
Reached out to
12000
students from 85 schools in Patalganga, Goa, Indore,
Bangalore and Kurkumbh
Balvatika initiative16
Our pre-school Balvatika project provides support in

the form of free education, health awareness initiatives,
nutrition, immunisation, check-ups and linkages with
formal schooling and government welfare schemes. We
reached out to 220+ children between age group of
3.6 years in Baddi and Vikhroli.
Science education
We are supporting the setting up of a state-of-

the- art undergraduate chemistry research
laboratory in collaboration with an institute
dedicated to research and training in pure
Social and Relationship Capital 71

Ajuga: Fire resistant learning centres for children
School improvement programmes
Ajuga provides high-quality infrastructure to
We provided support to various school create an environment that helps enhance quality
improvement programmes by supporting of care, nutrition and education that a child needs.
medical health check-ups, building sanitation Through partnerships with non-profit organisations,
blocks, setting up libraries, and provision of the project provides training and support for
sports kits and computers. Orientation and teaching staff to ensure that children are well
motivation sessions were also facilitated. We developed in social, cognitive and motor skills.
also reached out to 440 students in
government schools by supporting them with
computer learning stations to spread computer Skilling – Supporting skill building to strengthen
literacy. employability and build community enterprises
Scholarships We supported institute enrichment and skill building

programmes that provide holistic training to help
We provided educational scholarships to 529 strengthen employability of students from remote
meritorious students in 116 schools/colleges, helping villages and economically weaker backgrounds.
those from economically weaker socio economic
backgrounds to pursue higher education. These Support and training
included 40 differently abled students.
We support financially weaker students with academic
Cipla Foundation South Africa has partnered in merit and professional ambition for a 4-year B.Sc.
following initiatives (Medical) programme at Baddi University. The students
also undergo on-the-job training in this programme.
16

18
Vocational training Disaster response
We established a skill development center at We respond to communities affected by natural

Nalagarh (Himachal Pradesh) in partnership with disasters towards rebuilding lives. We work with
other foundations to provide job-oriented organisations that have the expertise to identify
vocational training along with placement services. and respond to critical needs of affected
230 students from 20 villages in Nalagarh secured communities by way of providing relief items,
jobs through this initiative. medical support and education support for
children. We also support in repair and
reconstruction of homes as well as skilling for
livelihood restoration specifically for people
living with disability as part of the flood relief
and rehabilitation work.
Training for children with special needs
In order to provide education and vocational

training to children with special needs aged from
2.5 years
to 20 years, we have set up a skill development
and rehabilitation center in Ropar, Himachal
Pradesh. The center helps the older students to
learn skills and become employable.
s socially conscious legacy. Together with like-minded partners, we will strive to take forward Cipla’s credo of ‘Caring for Life’ to empower communities and
Natural Capital
At Cipla, we understand that natural capital is intrinsically linked
to the well-being of the eco system in which we operate. Our
ethos is based on the idea that nature is a precious endowment to
humanity. We are committed to protecting and preserving the
environment, and follow the principle of doing more with less.
As a responsible corporate citizen, we
systematically evaluate our operational
efficiencies and believe that enhancing these will
further reduce our ecological footprint. To
benchmark the Company’s environmental 35% 6000+ GJ
management systems, Cipla has been progressively
of water was recycled of energy conserved
adopting international environmental protocols,
during the year
adhering to leading certifications and abiding to
applicable environmental legislations. 1
Governance for natural capital management:

In accordance with our commitment, our Environment, Health and Safety (EHS) policy lays out our intent on
EHS matters relating to our global operations 2. At Cipla, the governance and the implementation of the
policy follows a top-down and bottom-up approach respectively.
Figure 1. Cipla's top-down, bottom-up approach to EHS management
Governance Ownership
EHS Cipla Leadership

Policy
Sites
Corporate EHS Standards
Corporate EHS Guidelines Cipla EHS Leadership
Good EHS Practices Guides (GPG) Global

Site Leadership
Functions
tion of the Cipla EHS policy along with the review of mitigation plan against critical EHS risks is carried out through a quarterly review process by the RMC (which
1

18
2
Natural Capital 7
The Environment Management System (EMS) at all period, air emissions and waste generation levels
the Company’s manufacturing sites in India were well within the permitted limits. 4 The
(excluding Sikkim II) are certified in accordance Company does not have any open show cause /
with ISO 14001. The unit, Sikkim II, being a new legal notices, and no penalties were levied from
formulation plant, has initiated its journey to obtain environmental regulators.5
certification. As required in Cipla’s EMS, the Our operations do not impact environmentally sensitive
Company regularly conducts risk assessments, zones, as all our manufacturing / R&D operations are
and its actions are initiated against all identified conducted in notified industrial areas.
material aspects. 3
Cipla understands the responsibility to develop

an environmentally conscious organisation and
hence believes in enhancing its awareness
amongst the employees and other stakeholders.
4 Internal and External audits were conducted
in the reporting period to enhance
environmental management practices
Complying with the applicable legal requirements
for the reporting 1
Our approach towards Natural Capital management is best described in our response to the five material
aspects, as shown in Figure 2.
Figure 2. Key aspects of environmental performance
Resource Conservation Energy Management Air Emissions
Optimising consumption Minimising air emissions footprint while maximising operation footp
Judicious utilisation
Water and Wastewater Waste

Management Management
Reducing pressure on Minimising the load on

fresh water resources landfills
Resource Conservation
We are committed to design, construct, operate and maintain all our facilities through judicious
consumption of all natural and man-made resources, including water and energy. Cipla’s Resource
Conservation Programme is guided by the following basic principles:
a) Beneficial and efficient use of all resources

b) Employing principles of Green Chemistry
c) Energy conservation through optimum use and procurement of energy-efficient equipment
d) Water conservation, including recovery and reuse
e) Waste reduction
3
Information in line with BRR Principle 6 Question 3 / 4 Information in line with BRR Principle 6 Question 6
5
Energy Management the use of fossil fuel, Cipla has installed bio-briquette
fired boilers at its Kurkumbh site.
We understand the larger purpose and necessity
of energy efficiency for a sustainable future. Below are the energy savings achieved at
Our manufacturing sites in Goa, Indore, Kurkumbh, Bommasandra, Goa, Patalganga and Kurkumbh Unit
Bommasandra, Virgonagar and Patalganga II, as a result of initiatives such as replacement of
have Energy Management Systems certified to conventional CFL lamps and sodium vapour lamps
ISO 50001. with LED light fittings, replacement of old
equipment with energy efficient new equipment
The Company fulfills all energy requirements through and installation of motion sensors for industrial
sources such as natural gas, furnace oil, high- illumination. Cipla’s energy conservation
speed diesel and purchased electricity. In an effort performance for FY18 is shown in Figure 3.
to reduce
Figure 3: Energy Conservation6
468 2761 GJ
GJ Goa
Bommasandra
1555 1537 GJ
GJ Kurkumbh
Patalganga
Renewable energy Virgonagar
Aligning with the ambitious national goals for

renewable energy, Cipla is also on the path of
increasing the use of renewable energy for operations.
We have launched the following initiatives.
Adoption of Solar and Wind energy7
The Company has also made the following investments

in renewable energy installations:
71% of electricity is procured from wind energy at

Solar light pipe for natural illumination in Acid feed water
Store at Kurkumbh
Solar power system in Patalganga Unit I for hot
Solar-power plants in Goa Unit V, Kurkumbh Unit water generation using evacuated tube-type solar
III and Patalganga II to supplement the collector (panel). This has helped in saving thermal
utilisation of electricity for pre-heating boiler (steam) energy
6
Information in line with BRR Principle 6 Question 2 / 7 Information in line with BRR Principle 6 Question 5
The solar installation details are shown in Figure 4.
Figure 4: Energy produced from Solar Installations
130 kWp
solar power 35 kWp 810 GJ
plant installed in solar power plant energy produced
Goa installed in Kurkumbh
The Company plans to enhance the renewable energy portfolio in FY19 by increasing solar and wind energy
generation and purchase at our sites. Cipla has signed a power purchase agreement to procure power
generated from solar energy for consumption at our sites.
Emission Reduction
Control of Air Pollution
Cipla recognises the need for decoupling
In the US facility and the Indore plant in India,
emissions and economic growth. In our clean fuel (natural gas) is used, thus eliminating
endeavour to align with India’s Intended Nationally the need for installation of air pollution control
Determined Contributions, we aim to minimise our devices
emission footprint. (APCDs). During the year, at Kurkumbh, the
Company commissioned a bio-briquette fired boiler,
GHG Emissions
offsetting environmental emissions due to
Cipla monitors Scope 1 and Scope 2 GHG uncontrolled burning of crop stubs. The site has
emissions (direct and indirect) generated by the installed efficient dust collectors to control
particulate matter emission from the boiler.
use of fuels and electricity respectively from the
manufacturing operations. The Company strives API plants are equipped with well-designed,
to minimise GHG emissions through initiatives engineered and operated scrubbing systems to
such as increasing the effectively treat acid gases and fumes generated
portfolio of renewable energy sourcing, better energy from the manufacturing processes. The indoor air
management and energy conservation initiatives. quality in the pharmaceutical powder handling area
Details of GHG emissions generated through Cipla’s is maintained using HEPA filters. The Volatile Organic
operations during the reporting year are shown in Compounds (VOCs) emissions are prevented through:
Figure 5.
Underground solvent storage tanks with nitrogen
Figure 5. GHG emissions generated blanketing and breather valves
Solvents with lower boiling points stored in cold
conditions in insulated tanks
Closed handling of liquid chemicals and solvents
Scope 1* Scope 2* Secondary vent condensers with chilled brine /

48146 tCO2 chilled water installed on reactors and distillation
236358 tCO2
facilities
*Includes Furnace Oil, Diesel
*Includes Electricity
and Natural Gas consumption
consumption
Additionally, Cipla R&D has undertaken a unique
initiative of switching,
where practicable,
from solvent to
aqueous-based
manufacturing of
Oral Solid Dosages
(OSD).
Water management The water conservation initiatives that showed major

impact include:
We consider water to be a critical natural resource.
Increasing water recovery from effluent using
Details of water consumption during the reporting reverse osmosis (RO) at Kurkumbh Unit- I:
year are provided below in Figure 6 With the installation of a double stage RO plant,
water recovery from effluent increased from 75%
to 90% leading to reduction of MEE and VTFD
Figure 6 Water consumption
treatment cost, and increase in RO permeate
Reduction in Cooling Tower Blowdown Goa Cipla-I

Utility: The cooling tower blowdown reduced
from 30 KLD to 17 KLD by increasing the cycle of
concentration from 6 to 8. This led to the
Total water reduction of water consumption by 3,900
consumption: KL/annum
1743783 KL Utilisation of autoclave drain water in Goa

Cipla Unit – V: The water recirculation scheme
was implemented, resulted in water saving of
16,200 KL/ annum
In line with the EHS policy, Cipla has adopted the
5R approach of Reduce, Recover, Reuse, Recycle Optimisation of steam condensate recovery at
and Rethink for effective water management. Goa Cipla II utility: Steam condensate recovery
improved from 30% to 74% by re-engineering of
During the year, 611,471 KL of water was recovered
condensate recovery piping, resulting in annual
and recycled using water treatment technologies
saving of approximately 8,000 KL / annum
such as reverse osmosis. At the Company’s API
sites, wastewater is treated in a conventional
biological process, and also subjected to tertiary Waste management
treatment, which includes Ultra-Filtration and
Cipla’s operations generate hazardous (including
Reverse Osmosis (RO). The RO
battery and e-waste) as well as non-hazardous
rejects are fed to thermal systems that include
waste. Figure 7 below represents the hazardous waste
Multiple Effect Evaporators (MEE) and Agitated
generated from Cipla’s operations.
Thin Film Dryers (ATFD). The treated water from
these systems
is recycled in the cooling tower as make-up & other Figure 7 Hazardous waste disposal
utilities like boiler feed water thus helping to
further conserve this valuable natural resource. All Waste Disposal – Hazardous waste
of Cipla’s API manufacturing sites are ‘zero liquid
discharge sites’.
During the reporting year, 812,029 KL of

wastewater was generated, of which 127,988 KL
was discharged from Cipla’s operations at
Patalganga, IPD and
overseas sites to Common Effluent Treatment Plants
Incineration Hazardous waste*
(CETP)/Publicly Owned Treatment Works (POTW), in
compliance with the consent/ permit conditions. 1813 MT 1607 MT
We conduct rainwater harvesting at our manufacturing
sites in India through 24 rainwater harvesting
structures.

18
*Includes ETP sludge
Natural Capital 7
The Company ensures effective management of such as e-waste, battery waste and waste oil are
waste through responsible waste collection, storage sent to authorised re-cyclers/re-processors. Process
and disposal mechanisms. Waste solvents improvements have been implemented to minimise the
generated in the API manufacturing processes generation of hazardous waste from operations. 8
are recovered and partially reused, while the
remaining is sold to authorised recyclers in line Non-hazardous waste (scrap) such as metal,
with the hazardous waste authorisations. paper, fibre board, glass, wood and drums are
Formulation waste primarily consists of packaging sold to authorised/approved
waste and materials that are either rejected, and vendors/recyclers. Biodegradable waste such
shelf life expired products. These are either sent as food and gardening waste is sent for
for disposal to Treatment, Storage, and Disposal composting, and serves the dual purpose of
Facilities (TSDF) or subjected to thermal reducing waste as well as generating compost.
destruction in external incinerators. Other waste In FY18, 226 MT of waste was sent for
composting.
Environmental awareness and employee engagement

Employee engagement in environmental protection initiatives is ensured through various awareness programmes.
Each year, we celebrate 5th June as ‘World Environment Day’ across all locations, and conduct initiatives
such as planting saplings, signing an environmental pledge on a board and initiating quiz competitions.
Bommasandra Kurkumbh
8
Management Discussion and Analysis
Overview Figure 1: Global medicine spending (USD Bn)1
In the last 82 years since its inception, every day
Cipla has proudly lived up the promise of ‘Caring 1,445
for Life’. With patient centricity at the core, the
Company has expanded the portfolio offering to 1,135
include high quality branded and generic
medicines to patients in over 80 countries globally.
725
With the relentless efforts of teams spread across
the globe, the Company is successfully leveraging on
market opportunities and building up on its
strengths to create integrated value across 2007 2017 2022E
geographies; making a healthy difference to the
lives of people.
Generics pharmaceutical manufacturers are playing
an increasingly important role across the world in
Global pharmaceutical industry structure
driving access and affordability of drugs. Over the
and developments years, generic pharmaceutical players have helped
Access to affordable and diverse healthcare economies and patients save billions of dollars in
solutions, affordable price point, and technology- healthcare spending and have facilitated the world
enabled treatment mechanisms are driving the population become healthier.
spending growth across the globe. The global
The global regulatory framework has been evolving
medicine spending is expected to reach nearly USD
rapidly with interventions across multiple fronts.
1.5 trillion by 2022 1, representing 5% CAGR over
Pharmaceutical markets across the US, India and
the next five years. Increased spending in
other geographies are experiencing various new and
Oncology, Autoimmune and Diabetology
proposed regulatory interventions requiring
treatments is expected to drive a large part of the
pharmaceutical companies to innovate and reinvent
spending growth. These therapeutic areas are also
their business, operational, marketing and product
a key component of the Company’s growth story
development strategies. Companies across the globe
along with a global franchise of Respiratory and
are investing towards their portfolio offerings and
HIV drugs.
expanding their value chains with a focus on
Figure 2: Expected global pharmaceutical scenario in years to come 1
1
IQVIA Institute - 2018 and Beyond: Outlook and Turning Points (March 2018)
expected to Issue framework
In next
for 5 years, 20 percent of New Active
NewSubstances
Specialty drug
(NAS)
Telehealth
toare
drive
expected
growth
engagement
toin branded
to witness
medicines
growthspending
as a patient engagement mechanism in
nsion of use of real- world
beevidence
from NextinGeneration
the regulatory
Biotherapeutics
process
industry, the move could trigger a rise in demand

complex and difficult-to-develop products, creating for medicines.
manufacturing differentiators, investing in innovative
technology platforms and deepening their
presence in focused markets.
Regulatory developments and government

initiatives in India:
The Indian regulatory environment has also been

in a state of dynamism with several announced and
expected interventions which could have an impact
on how pharma companies operate and price &
market their products in the country.
The expansion of National List of Essential

Medicines (NLEM) to cover increasingly higher
number of drugs under price control in the
country
Ongoing discussions around the rationale and

potential ban of Fixed Dose Combinations (FDCs)
Potential regulatory intervention on mandating

generic prescription by doctors, may have a
significant impact on the business model of
pharmaceutical companies
Stringent compliance requirements under Uniform

Code of Pharmaceutical Marketing Practices
(UCPMP)
Expected regulation of trade margins can have a

significant impact on the generics-generics trade
channel
Reports of a pharma pricing index [in place of

the Wholesale pricing Index currently used] to
guide the annual price increases allowed for
medicines covered under NLEM or otherwise
The Union Budget 2018 addressed critical social

sector priorities such as healthcare, education and
agriculture
– a progressive move that will help improve rural
economy, encourage entrepreneurship and trigger
future growth. Cipla also welcomes the world’s
largest government-sponsored healthcare scheme –
Ayushman Bharat Programme which will extend the
benefits of health insurance to 100 million families,
ensuring access & affordability of healthcare
products and services to a larger section of the
society. While there is no immediate impact on the
Management Discussion and Analysis 7

Regulatory developments in the US:
The US continues to remain the world’s largest

pharmaceutical market with increasing number of
Indian pharmaceutical companies expanding their
market presence in the country.
Over the years, Indian manufacturers have become

an extremely important element of the US
pharmaceutical chain and supply significant
volume to the US and hence have witnessed
heightened scrutiny from the US regulatory
authority
Under the Generic Drug User Fee Act (GDUFA),

the US FDA has increased its focus to accelerate
approval cycle of generics. While this has acted
as a support for the sector overall, various
product categories have seen the impact of
increased competition as well
US FDA has been working towards clearer

guidelines for complex generics including drug-
device combination products
The new US administration has proposed several

healthcare related changes which could potentially
alter the way companies operate in the country
Company’s US based subsidiary, Exelan received

a notice for additional data from the Government
agencies regarding country of origin issues
related to manufacturing. The information
request pertains to ongoing issues with several
manufacturers and suppliers to Veterans Affairs
administration. The company believes it has met
all criteria for compliance and believes that it’s
grounds are similar to recent court verdicts
granted for other manufacturers
Other global regulatory developments:
In South Africa, the South African Health Products

Regulatory Authority (SAHPRA) replaced the
erstwhile Medicines Control Council (MCC), with a
renewed scope and focus on medicines and
medical devices as well as to accelerate approval
process. This move will enhance opportunity for
the pharmaceutical companies to expand their
portfolio offerings and bring more innovative and
first to market products in the country.

18
In the European region, Brexit contributed to the complexity of dual authorisation for companies having
presence in the UK and rest of Europe, resulting in increase in challenges for the pharmaceutical industry.
We continue to review and comply with these regulatory changes across the global through our agile business
model. The Company endeavours to stay ever relevant in the evolving & dynamic market situations
through meaningful engagement with the regulatory authorities across the globe and staying vigilant
about the regulatory trends.
Financial performance Filing trajectory:

4
During FY18, Cipla’s relentless focus on Cipla maintained a strong filing run-rate
strengthening the portfolio, deepening presence in during the year with 24 new filings including 7
priority markets and driving a culture of cost NCE-1s.
consciousness helped the Company deliver significant
progress on key priorities:
Quality and compliance:
5
Growth in key markets: Cipla continued its strong focus of maintaining
1 compliance and control across its manufacturing
Key markets continued to deliver strong growth.
facilities.
The India business delivered adjusted growth of
~11% with both prescription and generic The Company’s consolidated income from operations
businesses showing strong momentum. South during FY18 amounted to H15,219 crore as against
Africa, API, Europe and Sub-Saharan markets H14,630 crore in the previous year, registering growth
continued their strong momentum. The US of 6% when adjusted on a like-to-like basis for GST.
business saw the launch of key products which EBITDA for the year stood at H2,826 crore or 18.6% of
will see increased market traction in FY19. sales. Profit after tax for the year stood at H1,411
crore.
Core margins (quality of earnings):

2 Figure 3: FY18 financials
The underlying gross margin profile for various
businesses remains solid and healthy. The EBITDA Revenue EBITDA*
margin expanded by 165 bps to 18.6% of
sales.
H15,219 Cr H2,826 Cr
Balance sheet health: 6% Y-o-Y (GST Adjustment) 14.2% Y-o-Y
3 18.6% to Sales
Cipla continued its focus to improve the
PAT
balance
sheet health. In FY18, we invested H816 crore
on capital expenditure, over H300 crore lower
than last year. Healthy margin improvement and
H1,411 Cr
strong cash generation helped reduce Net Debt 40% Y-o-Y
to Equity ratio from 0.20 in March 2017 to 0.14 9.3% to Sales
in March 2018 and Net Debt to EBITDA ratio
from 1.07 in March 2017 to
0.72 in March 2018
*Without considering the impact of exceptional item
Total income from operations Earnings before Interest Tax Depreciation and
Amortisation (EBITDA)
Total income from operations for FY18 stood at H15,219
crore registering growth of 4% on reported basis EBITDA for FY18 was H2,826 crore, an increase of 14.2%
and 6% when adjusted for GST. This was driven by over the previous year. The EBITDA margin was
strong performance in India, South Africa, Sub- 18.6% for FY18. EBITDA margin expanded by 165 bps
Saharan Africa and API businesses. During the driven by top line growth, favourable product and
reporting year: geography mix and focus on cost optimisation in
procurement and manufacturing. A strong focus on
India business delivered growth of 11% [on a like- cost control through Project Eagle: Cipla’s initiative
to- like basis adjusted for GST classification] with to drive efficiency in procurement, operations and
both prescription and generic businesses supply chain, helped reduce operational costs
showcasing a strong momentum from the second thereby helping margin improvement.
quarter post GST implementation.
Employee expenses
South Africa business continued to deliver above
market performance with 14%1 reported growth in Employee expenses for FY18 stood at H2,690 crore, an
FY18 in local currency terms. increase of 2% over the previous year. The
The US business saw approval and launch of key increase is majorly attributable to yearly increments
differentiated products but recorded moderate and has been partly offset by efficiencies arising out
growth due to pricing pressure on the base of the Europe remodelling exercise.
business and certain supply disruptions.
Other expenses
Figure 4: Revenue from various markets The other expenses which include R&D, quality, sales
& marketing, regulatory, manufacturing and others
Revenue split (in J Crore)
stood at H4,264 crore and grew by ~1.4% This
marginal increase was driven by increase in sales
491(3%) and marketing costs to support increased sales
626 (4%) base which has majorly been offset by effective
cost control initiatives
623 (4%) 5,867(39%) R & D investments
The Company has been investing towards building

a strong internal pipeline for the future. The R&D
1,683(11%) FY18 investments in the financial year was H1,074 crore
corresponding to 7.1%5 of sales. The absolute
investment is marginally below last year on reported
3,343 (22%) basis due to Company’s decision to discontinue its
2,587(17%) investment in Cipla BioTec. Considering this, the
absolute investment is in line with the expectations
and will drive focus on developing complex and
high-value products. In the past two years, Cipla
has stepped up R&D investments targeting
the US, with several assets such as gAdvair,
gProventil
India North America 2 SAGA3 Emerging
and gAbraxane in the pipeline. As on 31st March,
Markets Europe API Others4
2018, Cipla had cumulative pipeline of 249 ANDAs
of which
145 ANDAs are approved, 26 ANDAs are tentatively
approved and 78 ANDAs are under approval process.
1
Adjusted for animal health business / 2 Excluding the one-time income in Q4 for US; included in others
3
Includes South Africa, Sub-Saharan and Cipla Global Access business, excludes SA Animal Health
4
Includes CNV business, Vet (India and SA Animal Health), US one-time in Q4 and other elements of revenue
5
R&D OPEX including Depreciation as % to revenue
Finance cost of H77.5 crore (disclosed as exceptional item) for

various notices of demand from the National
During FY18, finance expenses declined by 28% to H114
Pharmaceutical Pricing Authority (NPPA),
crore. Strong cash generation leading to reduction
Government of India, on account of alleged
in average outstanding short-term borrowings in India
overcharging in respect of certain drugs under the
and repayment of long term debt in South Africa
Drugs (Prices Control) Order (DPCO), 1995.
resulted in the decline in finance expenses.
Debt-Equity
Income Tax
The total debt as on 31st March, 2018 stood at
The effective tax rate for the full year, excluding
H4,098 crore including USD550 million which was
the adjustments related to the write-back of
used to fund InvaGen and Exelan acquisitions. The
Deferred Tax Liabilities against the impairment
Company also has working capital loans amounting
charge for InvaGen and restatement of Deferred
to USD66 million which act as natural hedges
Tax Liabilities on account of the US tax reforms was
towards the receivables. The net debt to equity
~25%.
ratio saw a significant improvement from 0.20 in
March 2017 to 0.14 in March 2018. No material
Profit After Tax
changes and commitments have occurred after the
The Profit After Tax for the financial year was H1,411 close of the year till the date of this report, which
crore or 9.3% of total income from operations. The may affect the financial position of the Company.
year saw the impact of impairment of assets
amounting to H230 crore (net of tax). There was an
additional provisioning
Outlook
The Company successfully delivered on the financial The Company recognises the need to stay ahead of
and non-financial business priorities during FY18 the curve by focusing on key markets to drive
despite multiple challenges around volatile superior revenue growth and driving a culture of
regulatory environment, ever-evolving competitive cost consciousness. Strategic initiatives across the
landscape and continued pricing pressure across the Company’s businesses are targeted towards
globe. strengthening the global footprint and improving
overall margin profile.
Figure 5: Business imperatives for FY19
For FY19, the Company has set key priorities as

follows: -
India US South Africa RoW / Emerging Markets
Targeting domestic revenue ofKey
USDdifferentiated
1 billion launches to ramp
Targeting
up growth
above market growth across private
Continue
marketmarket leadership in key regions
Focus on ‘Value Play’ to drive profitability
Developing OTC portfolio Stable tender business
In-licensing efforts to ramp-up
Biosimilar efforts across various markets
EBITDA Margin expansion over R&D investment Continued investments to

FY18 ramp-up US portfolio
Respiratory Investments
FY18 7-8 %

18
Planned filings Quality & Compliance

Ensuring compliance
20+ ANDAs
at all our facilities
will remain a
Continuefiling bedrock of our
momentum for operations and a
US with over 20 non-negotiable
planned filings agenda

grammes to spread Business
awareness performance
and improve diagnosis and compliance.
service initiative from Cipla for patients with chronic airway diseases. Today it has become a comprehensive patient support system for respiratory care benefitting m
hened during the India
reporting year with launch of a mass awareness campaign Berok Zindagi to provide education on dealing with Asthma and eradicating the social s
The Indian pharmaceutical industry has been a

significant contributor to the growth of the
economy. India is expected to become the 9th
largest medicine spending country in 2019 through
20221. Key interventions across regulatory and policy
framework on health insurance are targeted to
drive access to medicines and healthcare services
across the country.
In FY18, we continued our position as one of

India’s largest pharmaceutical companies catering
to patient health needs across various therapeutic
areas. The India business continues to be the
Company’s largest business with 39% revenue
share.
In FY18, Cipla’s India business grew at 11% (on a like-to-

like basis adjusted for GST) to H5,867 crore. During
the year,
needs of the patients, Cipla recorded
the Company entered strong growth marketing
into an exclusive momentumand in
distribution agreement with the US-based MannKind Corporation for Afrezza® i
the domestic business aided by healthy prescription
growth, therapy strengthening, launch of new
products including in-licenced ones and improving
sales force productivity.
Key highlights for the year
Key therapeutic areas which delivered above

market performance include
Cardiac2 Respiratory2 Urology2
9 % 10 % 11 %
vs 6% vs 8% vs 10%
Partnerships
Cardiology, Diabetology and Oncology have been Cipla’s preferred partnering segments in the Indian
market. During the year, we leveraged our commercial strengths to build strategic partnerships with
global pharma companies and launched 5 in-licenced products. The Company keeps evaluating meaningful
partnership proposals for furthering the cause of providing focused patient care by bringing innovative
medicines in the Indian market.
1
IQVIA Institute - 2018 and Beyond: Outlook and Turning Points (March 2018)
2
IQVIA (IMS) MAT March 2018
Focused partnering segments for in-licencing Figure 6: India Branded – Therapy wise revenue breakup
Therapy Product
Cardiology
Launched Azmarda (Sacubitril Others
+ Valsartan) in partnership with Respiratory

Ophthal/
Novartis and the product is making Otologicals 12%
rapid penetration in eligible patient 3%
population in India 31%
Urology 5%
Diabetes
Launched Vysov / Vysov M Neuro/ 4%
(Vildagliptin) in partnership with CNS
FY18
Novartis and Prominad Antivirals
5%
(Canagliflozin) in partnership with
Janssen to serve over 65 million 6%
people suffering from Diabetes in Gastro
India Intestinal
Oncology 13% 21%
Partnered with Roche for distribution Cardio - Anti -
and sale of Actemra (Toclizumab) infectives
Metabolic
and Avastin (bevacizumab)
Launched Onco-BCG in partnership
with Serum Institute of India to
improve product portfolio in
Oncology / Urology
India generics business:

North America
During FY18, the Company’s India generics business
USA continues to be the world’s largest
contributed ~21% of the domestic business revenues. pharmaceutical market and the net total medicine
Over FY18, various products saw movement across spending growth is expected to be between 2–5%
the branded and generics business portfolio to drive over the next five years1. Generics accounted for
synergies. 89% of prescriptions dispensed with 26% of total
drug costs in the US and helped achieve USD 1.67
The Company is focusing on strengthening its Trillion of savings in the last decade due to the
presence in Tier 3 and Tier 4 towns along with availability of low-cost generics equivalents 2.
expanding the product portfolio to cater to the Generic drugs offer relief to patients from rising
needs of the patients. The generics business prescription drug costs and this affordability leads
continues to operate in a challenging regulatory to decreased healthcare cost pressure, at the same
environment with uncertain policies governing time enhancing general health and well-being of
trade margins, branded generics, FDC ban, and patients.
DPCO.
During FY18, Cipla continued to be ranked
amongst the top 10 most dispensed companies in
The Company maintained its growth momentum in
the US, building successfully on the commercial
the Indian market through in-licensing deals, focus
front end acquired through InvaGen
on identified therapeutic segments, and sales force Pharmaceuticals Inc. and Exelan Pharmaceuticals
productivity optimisation and expects to maintain Inc. The Company expanded its portfolio offering
its market leading position exceeding the industry to patients with differentiated products and
average growth for both branded and generics strengthening its relationship with channel
business. partners. The operating environment remained
challenging with increased competition across erosion. The
critical product categories and continued price
1
IQVIA – Medicine Use and Spending in the US A Review of 2017 and Outlook to 2022 / 2 AAM – Access Savings Report 2017
Company is focusing on developing a differentiated operating environment further, the Company has
product pipeline to mitigate some of these taken a conscious decision to drive a value
challenges and deliver future growth. conscious play in select product categories and
rationalise select low- margin SKUs to help build a
During FY18, North America contributed 17% to healthy margin profile and also release strategic
the Company’s revenues, a total of USD 412 million capacity within the manufacturing and supply chain
registering a growth of 5% over FY17. infrastructure. This capacity can help the Company
focus on de-risking key assets and ensure reliability of
Driving towards a ‘value play’ in the market:
supplies. Hence, recorded sales in FY19 may get
To mitigate the impact of the ongoing challenges in impacted marginally.
the US
Figure 8: Future growth plan South Africa, Sub-Saharan Africa and Cipla
Global Access (SAGA)
Pipeline Update: Under-Approval ANDAs
Split of 69 under - approval The pharmaceuticals market in Africa is expected
products [Cipla / Invagen ANDAs] to reach USD 45 billion1 by 2020, propelled by a
convergence of changing economic profiles, rapid
Therapy urbanisation, increased healthcare spending and
2 2
investment, and increasing incidences of chronic
lifestyle diseases. Africa continues to remain a key
Respiratory
component
13 Dermatology
of the Company’s global strategy with strong
26 Oncology presence across various markets including South
CNS Africa.
9 CVS
HIV
During the year, South Africa, Sub-Saharan Africa
14 and Cipla Global Access (SAGA) region contributed
Others
3 22% to the Company’s overall revenues, a total of
USD 522 million growing 6.3% on a Y-o-Y basis.
2 2 Dosage form
1
14
Opthalmic
Topical 10.7 %
Oral Solids
South Africa business grew ahead of the market at
Injectable 10.7% in the private market vs 8.4% market growth2
50 Inhalation
Figure 9: SAGA Revenue Split (USD Million)
o ion from US
Market potential* v revenues
219
(Innovator Sales) er through
+17%
25 22 al continued
<$ 100 mn l 272
> $ 500 mn c
$ 100-500 mn o
nt
22 * Per product
ri
b
Going forward, the strategy is to significantly grow ut FY17 FY18
202 Others
South
320
Africa
traction on filings and product launches as well as 1

Frost & Sullivan: African Pharmaceuticals Market, Forecast to 2020
partnerships. 2
IQVIA (IMS) MAT March 2018
South Africa and Sub-Saharan Africa region
outh Africa
South Africa is one of the key home markets for the
Company. We are the 4th largest private market
utic area is a player
key differentiator for theincluding
Company intender
South Africa. Cipla South
(3rd overall business) andAfrica is the leader in obstructive airway disease (Asthma and COPD) in private secto
proprietary breathe actuated pressurised metered dose inhaler, was launched in South Africa
one of the fastest growing companies among the
educating both healthcare professionals and1 patients, the Company has cultivated strong partnerships with the South African Thoracic Society, Allergy Society o
toplevel
10of access
in South Africa . In FY18products
SouththatAfrica
ensure highest to a range of differentiated are aligned to all stages of the disease in both the private and government sector, underpinn
recorded a strong revenue growth of 14%2 in local
currency terms (ZAR) over the previous year.
During the year, Cipla South Africa closed the
divestment of 100% stake in animal health
subsidiaries, namely, Cipla Vet Pty Ltd. and Cipla
Agrimed Pty Ltd. to Ascendis Pharma, South Africa.

Portfolio expansion
Product Launch
Launch of Pregablin from the Teva portfolio
with a focus to continue on delivering similar
offerings to patient in the near future.
Partnerships
Agreement with Adcock Ingram to Cipla South Africa is an important partner to the
commercialise their comprehensive over the government, with the tender business contributing
counter portfolio in Uganda and expand 37% of the total revenue. While a large part of the
footprint in Sub-Saharan Africa tender business is driven by ARVs, other key
therapeutic areas include Respiratory and
New launches from Anmarate acquisition Oncology. Our BBBEE (Broad-Based Black
and a deal with iNova (Valeant) Economic Empowerment) score and local
manufacturing capabilities have given a
sustainable competitive advantage to the Company
and helped us deliver strong Y-o-Y momentum to
the business. Cipla South Africa has stepped up to
deliver higher than awarded quantities versus the
contract and hence established a position of a
reliable supplier with strong local manufacturing
capabilities. These locally manufactured ARV’s
contributed to the national economy and
demonstrated the ability of South Africans to strive
towards self-sufficiency.
1
IQVIA (IMS) MAT Nov 2017
2
Normalised for the Animal Health business divested during FY18
The Cipla brand continues to inspire trust among The plant supplies the Ugandan market and
consumers, pharmacies, prescribers and key opinion exports to East Africa, Cameroon and various markets
leaders in South Africa. in southern Africa.
Cipla Global Access (CGA) Future ahead
Whilst delivering a long-term sustainable business, The Company is committed to expand the market
we recognise our duty to provide affordable reach in SAGA with continual advancement through
medicines. Cipla’s emphasis on access for patients private market expansion, strategic portfolio selection
was recognised globally for the pioneering role in Biosimilars, OTC and Specialty segments along
played in HIV/AIDS treatment as the first with institutional partnerships with MNCs. As a future
pharmaceutical Company to provide a triple growth area, Cipla will gain market access to critical
combination anti-retroviral (ARV) in Africa at less drugs in underpenetrated areas of Africa. The
than a dollar a day and thereby treating many Company plans to target first-to-market products
millions of patients since 2001. in the geography; at the same time it is also
looking at unlocking potential in Vaccines through
Cipla Global Access is a tender-based institutional global partnerships. For Cipla Global Access, the
business. It is dedicated to providing accessible Company’s strategy is to gain market share in a
and affordable early and essential treatment to profitable and sustainable manner through vertical
patients facing life-threatening diseases in integration of core APIs and through strategic
developing countries. CGA focuses on five therapy partnerships. Continuous engagement with major
areas: HIV/AIDS, Malaria, Multi Drug-Resistant stakeholders in planning of the molecules of the
Tuberculosis, Reproductive health and Oncology. future, also remains a priority.
During the year, the business saw a decline driven
largely by continued pricing pressure and Emerging markets
challenges in the funding environment.
Emerging markets and developing economies are
Sub-Saharan Africa expected to see an accelerated growth of 4.7%1 in
FY20 as oil and other commodity prices firm up
Cipla has a clear commitment to provide access to and the effects of the earlier commodity price
Africa and other LDCs (Least Developed Countries). collapse dissipates. Countries across the world are
As a step in this direction, way back in 2005, a joint now adjusting their healthcare policies as a result of
venture was established between Cipla and Quality the volatility in economic growth in these markets,
Chemicals Ltd (QCL) of Uganda, known as Cipla ultimately leading to an uptick in demand.
Quality Chemical Industries Limited (CiplaQCIL),
which is a state of the art pharmaceutical plant that Emerging markets for Cipla include all markets
manufactures the latest Anti- retroviral (ARVs), Anti- outside of India, North America, South Africa /
malarial (ACTs) and Hepatitis B medicines. Sub-Saharan Africa, Europe and includes North
Africa and Australia amongst others. Cipla has a
CiplaQCIL’s World Health Organisation (WHO) growing presence in 52 countries including 13
approved facility stands as a testament to the countries via direct-to-market model.
possibilities of pharmaceutical manufacturing in
Africa. This establishment is also in line with the Revenue from Emerging market for the Company
Pharmaceutical manufacturing Plan of Action for stood at USD 261 million (H1,683 crore), with an 11%
Africa, the East African Pharmaceutical contribution to the total revenue for FY18, registering
Manufacturing Plan of Action and the Millennium a growth of 7.5% over the previous year.
Development Goals and seeks to take advantage of
the flexibilities provided by the Agreement on
Trade-Related Aspects of Intellectual Property
Rights (TRIPS), for access to affordable, newer and
safer medicines for the poor.
1
World Bank – Global Economic Prospects – January 2018
improvement in operating margins over the previous
Key highlights for the year year.
Fluticasone Propionate Salmeterol (FPSM) franchise
Launched
the flagship respiratory product, Fluticasone
Propionate Salmeterol (FPSM) in Australia, the
first generic in the market reinforcing Cipla’s
developed market respiratory franchise; targeted
to increase Company’s market share in years to
come
Key filings
Brazil & China

First product filing done in
Brazil First CTA filed for China
(FPSM)
The Company is focusing on deepening its presence

in Australia and Colombia through Respiratory
portfolio and into markets of China, Brazil and
Indonesia through combination of in-house pipeline
products and partnerships. Three products for China
and 13 products for Brazil are in the development
stage. These filings, approvals, products and
partnerships will help drive significant growth in
emerging markets over the medium- and longer
term.
Europe
The Company has a presence in 31 countries in the

European region including DTM presence in
Germany, Norway, Spain and the UK. Last year’s
change in the business model for the European
countries, moving from an investment-heavy DTM
model to a partnership- led B2B model, has improved
profitability significantly. The experience of Cipla’s
in-market partners will drive stronger and
profitable growth in the future.
Europe market recorded a revenue of USD96.6

million (H623 crore) in FY18 contributing 4% to the
overall Company revenue, with significant
Respiratory
Franchisefranchise
Development
in the UK - Fluticasone Propionate Salmeterol (FPSM), Ipratropium
Europe witnessed a strong growth in brands like Dymista and Seroflo
FPSM Launch of FPSM in 8 European countries
We intend to focus on the UK, Germany and

Spain markets with our established capabilities
and comprehensive product portfolio. Cipla
would adopt a partnership model to gain
access in France, Italy, the Netherlands,
Poland and Romania. While Respiratory will
continue to remain a focus area, Oncology and
complex injectables will be a part of the
differentiated product portfolio strategy of the
Company.
Strategic business units
Respiratory
Cipla offers one of the world’s largest portfolio

of inhalation products, with 27 molecules and
combinations across a range of devices to cater
to diversified patient needs. The Company has
five manufacturing facilities dedicated to
respiratory products. Cipla now has end- to-
end capability across respiratory care covering
the value chain from API, formulation, device
development and manufacturing to medical and
patient education.
During FY18, the overall revenue from Respiratory

unit stood at H1,464 crore, and the ex-India
revenue for the year stood at USD 212 million.
Figure 12: Cipla’s respiratory strategy
Leadership position across geographics

Building strong brands
#1 in India Inhalation segment (MS-
5 Cipla respiratory brands in
66%)1 #1 in Sri Lanka (41% market the list of top 100 pharma
share)2 brands in India2
#1 in Morocco2
Cipla Global
Respiratory
Drug - device combo
One of the world’s largest Innovations in device to deliver

the drug in most effective and
Range of drugs, dosage forms patient friendly manner
and devices
Pioneer in shaping the respiratory World class manufacturing

ecosystem
Facilities for APIs, formulations &
Novel initiatives for patient education inhalation devices
in asthma / COPD
Cipla is on a mission to ‘Make the World Breathe

as Pulmonary Arterial Hypertension (PAH), lung
Better’ with an expanded range of drugs and
cancer and Idiopathic Pulmonary Fibrosis (IPF).
devices and targeted patient-centric initiatives. Our
commitment to mitigate Respiratory diseases dates Respiratory will continue to remain an area of
back to 1970s with introduction of Salbutamol and innovation for the Company and it is committed to
Salbutamol inhaler in 1978 in India. Consistent making investments for strengthening its position.
investments has helped the Company introduce new The R&D investment on Respiratory is slated to
products for asthma, Chronic Obstructive increase from 12% of the total R&D investments of
Pulmonary Disease (COPD), Allergic Rhinitis (AR) the Company in FY18 to above 30% for the next year.
and more recently in other diseases such

1
IQVIA (IMS) MAT March’18; Respiratory inhalation (including nebulisation)
2
IQVIA (IMS) MAT March’18

18
Respiratory in India
As a pioneer in the field of respiratory medicine in the few such independent Institutes in the world
India, Cipla connects with patients, providing more which collaborates with leading institutions around
than just medicines. As a company that cares, we the world for research purposes. In line with its
believe it is our responsibility to make relevant and objective, the Chest Research Foundation partnered
credible information available to the public to erase with Imperial College of London to investigate non-
the stigma around the illness and educate patients smoking COPD in a unique Indo-British venture.
about the benefits of inhalers in asthma
management. With this in mind, Cipla rose to the Over the last few years, Cipla has established itself
challenge last year and launched Berok Zindagi, a as a market leader in Respiratory and recognises
mass awareness campaign to educate patients, the responsibility that comes along. An array of
caregivers and the general population on the patient awareness, education and support
smartest ways to manage the illness. For more details programmes are run by the Company to create
on Berok Zindagi, refer to page 62 of the report. acceptance and usage by educating patients on
asthma, COPD, allergic rhinitis and other respiratory
The Company founded the Chest Research diseases. ‘Breathe Free’ initiative continues to gain
Foundation (CRF) in Pune, with twin objectives of force with more dedicated efforts being poured in to
promoting respiratory research and training in make lives easy for patients.
India. It is one of
Figure 13:
Breath free - Patient Engagement initiatives
Tie-ups with large For

chain pharmacies - Better understanding of disease
Apollo Pharmacy Support in asthma action plan
(successful pilot in Breathfree Patient Regular monitoring and tracking
Chennai being scaled Chemist support of medication
up to 400 pharmacies) expansion programme
Tight linkages with the
doctor Data Upgraded Website - provide reliable information
analytics digital and enable patient conversations
and MIS assets - App- companion app for patients on
Digital platform to website inhalation therapy
capture data real-time and app
and consumer feedback
Standardised MIS to draw
insights
Central Government has recognised chronic management. The focus is on enhancing the offerings
obstructive pulmonary disease (COPD) in its Non- for pulmonologists with streamlined efforts on profiling
Communicable Diseases (NCD) programme. The and segmentation and monitoring of patients.
Company is working with Central and State
governments for grass root mobilisation and has
submitted a proposal for developing training modules
to enhance understanding the disease and its
The Company is also building key account
management capabilities to focus on corporate
chains and medical colleges. Continuous
innovation in drugs and devices like
Synchrobreathe, Multihaler and partnership
with MNCs for new molecules will remain the
core for securing further market share.
Beyond making drugs and devices available,

Cipla has been involved in conducting and
supporting research
total fixed dose
to generate real-world data that will lead to deeper
insights into disease patterns and patient’s response to
drugs.
The Company entered into a partnership with the

large diagnostic chain, Metropolis, to improve
access to Spirometry to all patients. At the same
time, the Company is also developing its own hand
held Spirometer as point-of-care diagnostic device.
Cipla’s state of the art scientific programmes are

aimed at enhancing knowledge of doctors across the
spectrum, from the general practitioner to the
specialist. This has helped in improving the quality
of care that patients receive, at Cipla, this is called as
‘Partnership in Practice’.
Respiratory franchise in the US
Cipla‘s vision is to replicate the success of India

Respiratory segment in the US market and gain a
respectable market share. In order to pursue this
vision, the Company is working towards
development of respiratory products under various
categories like ICS, ICS + LABA and LAMA especially
focused on US market, to cater to the need of
bringing affordable medicines to the patients.
Respiratory in South Africa
The respiratory therapeutic franchise is a key area

of focus in South Africa as a value differentiator for
the business as well as meeting the high disease
burden within the country.
The Company’s strategy for respiratory therapy in

South Africa has been to ensure the highest level
of access to a range of differentiated products that
are aligned to all stages of disease in both the
private and government sector underpinned with
strong investments in education.
Currently Cipla South Africa is the #1 Company in

obstructive airway disease (Asthma and COPD) in
both the private sector (46% volume market share) as
well as the government sector (69% volume market
share)1.
The Company launched a breath actuated inhaler-

Sereflo SynchrobreatheTM to address the challenge
of disease control. The launch of this patient-
friendly inhaler allowed Cipla to compete in the
Pacific. Our focus on niche molecules and quality
combination (FDC) market gaining a 600 bps (basis has made us a preferred partner to some of the
points) volume share from 8% to 14% with the largest generic formulators globally. With a
Sereflo brand volume growth finishing at +48% vs the dedicated team of over 300 scientists, the Company
total market of +8.2% equating to a brand revenue differentiates itself with the capability to handle
growth of +61%. wide range of chemistries and complex
molecules.
Active Pharmaceutical Ingredient (API)
Our APIs cover a broad spectrum of therapeutic
A pioneer in API manufacturing in India for over categories with over 350 Drug Master Files (DMFs)
five decades, Cipla currently manufactures more filed till date of which 40 DMFs were filed in FY18 in
than 200 generic and complex APIs. Cipla’s API various countries. Cipla is also ramping up filings for
business has presence in more than 60 countries regulated markets with a robust pipeline of over 50
in Europe, North America, Latin America and Asia APIs in various stages of development.
1
IQVIA (IMS) MAT Nov‘17
T across four sites with dedicated facilities for high potent APIs, corticosteroids, polypeptides, hormones, and steroids. All facilities are cGMP compliant and ap
n EHS viewpoint, Cipla’s plants have zero liquid discharge waste water treatment facilities that include, ETP with Multi Effect Evaporators (MEE), Agitated Thin Fil
one pilot plants, two process safety screening labs and advanced technologies.
Business Highlights for API improvements and alternate vendor developments,
Figure 14: FY18 API performance ultimately benefitting the patients.
Global API Revenue (in USD Million) Cipla is keen to identify new opportunities in markets
such as Japan, China, the Commonwealth of
97 Independent States (CIS) countries and partner with
23% leading generic companies for their new products.
79 The Company plans to enhance its API R&D and
manufacturing capacities in therapeutic areas such
as Respiratory and Oncology and conduct backward
integration for manufacturing of KSMs and critical
API intermediates to gain a spot at the forefront.
Revenue
Cipla Health Limited (CHL)
FY17 FY18
CHL is the consumer health focused subsidiary of
Cipla, with a vision to offer simple and consumer-
Global API Revenue, By Region centric innovative solutions for everyday health
needs of families across India. Nearly a million
people in India die every year due to tobacco-
related diseases. Nicotex, the flagship brand, a
32% Europe leader in its category is strengthening its hold as a
45% life-changing solution to quit
North America seedings and lock-ins for achieving sustainable growth.
Emerging Markets In order to provide complex APIs at affordable prices,
23% the Company achieved cost optimisation through
process/yield
During FY18, revenue from commercial API business

was USD 97 million (H626 crore) of which Europe
accounted for 45% followed by emerging markets
at 32%, while North America shared 23% of the
revenue. Respiratory, Gastroenterology, and Anti-
retroviral (ARV) segments were major contributors to
the business. This growth is a result of successful
deliveries of products launched for chosen
customers, differentiated product mix, improved
traction in seedings and lock-ins with major
customers.
We share a strong partnership with the world’s

largest generic pharmaceutical companies and
expects to ramp-up business with these accounts.
The Company aims to become a preferred supplier
to companies working on 505(b) (2) projects. Cipla
is also expanding the customer base across markets
that provide better realisations, higher number of
smoking and aims to create a healthy and
smoke-free India.
During FY18, revenues for Cipla Health Limited

stood at H120 crore, registering a growth of 26%
(GST adjusted) over the previous year.
Cipla commands over 95% market share in

Nicotex (Nicotine Replacement Therapy) in the
Chemist channel
Cofsils is the 3rd largest brand in chemist channel

with 8% market share in its category
Activkids Immuno booster was launched to help

build immunity in kids towards common diseases. In
order to find acceptance with children, it comes in
a unique choco bite format
Nicogum is a nicotine gum that helps people quit

smoking using the proven principle of NRT
ActivStart Fibocare is a natural isabgol husk used

to treat constipation
Cipla Technologies (CipTec) Stempeutics
CipTec - Cipla’s initiative to create a Branded Stempeutics, a joint venture between Cipla and
Specialty business in the US, focused on meeting Manipal Group is a collaboration towards bringing
critical unmet medical needs in the areas of CNS cutting edge Stem Cell Science to discover
and Respiratory, through clinically useful transformative therapeutics that meet critical
improvements in known drugs. Some of the diseases medical needs.
within CNS include epilepsy and its rare sub-types,
musculoskeletal indications such as Spasticity,
Parkinson’s disease and ALS. In Respiratory, the
to licence its Phase 2 completed Stempeucel programme on Osteoarthritis (OA). As part of this agreement, Alkem will conduct Phase 3 studies and will launch
The Manipal manufacturing site was approved for commercial manufacture
The Company got the requisite approvals to initiate a 50 patient Phase 4 PMS for Burgers disease, based on the conditiona
focus is on Asthma, COPD, IPF and CF and CF

Human resource management and industrial
related complications.
relations
Our flagship programme, CPN 101, is a Tizanidine
Patch for the management of Spasticity – a condition Cipla believes that its human resource function is
affecting almost 80% of patients with Multiple of strategic significance and works towards building
Sclerosis. Some of the other conditions causing a strong employee value proposition for its
Spasticity include Spinal Cord Injury (SCI), Traumatic employees. It provides channels for exceptional
Brain Injury (TBI), Stroke, encephalitis, ALS etc. This career growth, superior leadership development,
is licensed from MEDRx Company Limited, Japan and modern day HR practices, transparent
is expected to be the first transdermal muscle communication, opportunities for continual learning,
relaxant worldwide and is expected to provide enhanced well-being and safety and engagement.
sustained efficacy, while reducing adverse events like Over the years Cipla has improved on its
drowsiness, dry mouth and others. The US alone has engagement score and compared to the previous
about 1.5 million cases of Spasticity that require drug year there has been an increase in engagement
treatment and result in over 60 million prescriptions. levels. Townhalls allow for transparent
The Company is also exploring an injectable communication between the employees and
formulation of a benzodiazepine for a rare epilepsy management on Cipla’s strategy, plans, achievements
indication and is currently in discussions with the FDA and setbacks during the quarter. In FY18, a total of
for its development strategy. There are limited 4 global Townhalls were conducted. Cipla Engage
treatment options available today for this indication is another initiative based on 5 pillars and
which are either very inconvenient or are used off- definition of an engaged associate that is targeted
label. towards overcoming challenges such as attrition.
The MiRole project launched in 2017 has helped in
streamlining roles and responsibilities across the
CPN 101 was completed and is now preparing to conduct an additional PK study and a Phase 2 PD study during FY19
s headquarters in San Diego, California, a city that is an important biotech and life science innovation hub in the US
ing opportunities were evaluated across CNS and Respiratory, and continue to be in various stages of diligence
organisation and the first ever grade linked Internal control and its adequacy
promotion cycle was conducted in January 2018.
MiDNA, a newly launched performance Cipla has an adequate system of internal controls
management system covered over 25,000 commensurate with the nature of our business and
associates across the organisation. the size and complexity of our operations. The
Company has documented policies and procedures
In 2018, band aligned pay scales were developed covering all financial and operating functions. These
by Cipla India to benchmark the worth of the roles controls have been designed to provide a reasonable
in particular bands and market positioning of assurance over:
similar roles. Hence, the 3P rewards policy was put
Effectiveness and efficiency of operations
in place to reflect Positioning, Performance and
Proficiency (Role Maturity). Health, safety and Prevention and detection of frauds and errors
well-being of employees is of paramount Safeguarding assets from unauthorised use or
importance at Cipla and initiatives including
medical plan benefits, targeted health losses Compliance with applicable laws and
interventions, health screening, health coaching regulations
and awareness have been implemented during the
Accuracy and completeness of the accounting records
year. Employee training and development forms a
crucial part of human resource development Timely preparation of reliable financial information
agenda at Cipla and various interventions including
Key controls are routinely tested and corrective and
Cipla University, trainings on plant safety,
preventive actions are taken for any weakness. The
pharmacovigilance and POSH have been undertaken.
Company has an independent internal audit function
For more details on Cipla’s approach towards
supported by dedicated outsourced teams. The internal
Human Resources, refer to page 54 of the report. audit plan is approved by the Audit Committee at the
beginning of every year. Every quarter, the Audit
Threats, risks and concerns Committee of the Board is presented with key control
issues and the actions taken on issues highlighted in
Due to the inherent risks in the Company’s the previous reports. The Company continues efforts to
business activities, it is vital that the Company align all processes and controls with global best
effectively manage risks faced across the entire practices.
organisation through informed strategic and
business decisions so that it can continue to deliver Adherence to accounting standard
value to its varied stakeholders. During the reporting
period, the Company enhanced its risk The Company adopted standard accounting policies
management capabilities by establishing a formal under the Indian Accounting Standards (‘Ind AS’)
structure for ERM governance, engaging with since 1st April, 2016 as prescribed under section
senior management to garner a comprehensive 133 of the Companies Act, 2013, read with the
view of critical risks, defining priorities for risk relevant rules issued thereunder and other
management, and familiarising key employees of accounting principles generally accepted in India.
critical risks along with their risk mitigation Changes in policies, if any, are approved by the
responsibilities. Audit Committee.
Refer page 36 for a detailed account of Cipla’s Risk

Management Framework.
Board’s Report
Dear Members,
The Board of Directors hereby submits its report on the performance of the Company along with the audited
Standalone as well as Consolidated financial statements for the year ended 31 st March, 2018.
Financial Summary and State of

Affairs H in Crore
Year ended 31 March, 2017
st
Particulars Year ended 31 March, 2018
st
Standalone Consolidated Standalone Consolidated

10974.58 14630.24 Gross total revenue 11444.81 15219.25
1186.94 1222.17 Profit before tax and exceptional item 1911.40 1746.98
Profit for the year (after tax and
974.94 1006.39 attributable to shareholders) 1468.52 1410.53
Other comprehensive income for the year
6.93 7.46 (not to be reclassified to P&L) 1.77 24.30
Other comprehensive income for the year
- 123.89 (to be reclassified to P&L) 0.47 369.23
Surplus brought forward from last balance
7145.00 6953.84 sheet 7933.29 7774.11
8126.87 7967.69 Profit available for appropriation 9403.58 9188.05
App rop riation s:
(160.87) (160.87) Dividend (160.94) (160.94)
(32.71) (32.71) Tax on Dividend (28.33) (28.33)
7933.29 7774.11 Surplus carried forward 9214.31 8998.78
The financial results and the results of operations, In line with the Dividend Policy of the Company, we
including major developments have been further recommend a final dividend of H3 per equity share
discussed in detail in the Management Discussion and
Analysis section.
The Standalone as well as the Consolidated financial

statement have been prepared in accordance with the
Indian Accounting Standards (‘Ind AS’) under the
historical cost convention on accrual basis except for
certain financial instruments which are measured at
fair value.
Share Capital
During the year under review, the Company cancelled
the unsubscribed issued equity share capital of
10,03,395 equity shares of H2 each, aggregating to
H20,06,790. Upon cancellation, such unsubscribed
capital became a part of the unissued share capital of
the Company and is available for re-issue at a future
date. 6,09,090 equity shares were issued and allotted
under Employee Stock Option Schemes. The issued,
subscribed and paid up share capital of the Company
as on 31st March, 2018 stood at H 161,02,38,328
divided into 80,51,19,164 equity shares of H2 each.
Dividend
Board’s Report 9
(i.e. 150% of Face Value) for the FY18. The dividend, Making a difference to patients. Our inspiration for innovation.
if approved at the Annual General Meeting (AGM), will
be paid to those members whose names will appear
in the Register of Members on 14th August, 2018. The
total dividend pay-out will amount to approximately H
241.54 crore (excluding dividend distribution tax)
resulting in a pay-out of 16.45% of the Standalone
profit after tax of the Company.
Reserve
The Company has not transferred any amount to the
Reserve for the financial year ended 31st March, 2018.
Management Discussion and Analysis Report

Pursuant to Regulation 34 of the Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (Listing
Regulations) the Management Discussion and
Analysis Report for the year under review, is
presented in a separate section, forming part of the
Annual Report.
Corporate Social Responsibility (CSR)

At Cipla, we consider it as our responsibility to support
people facing challenges to live a life with dignity and

quality. Cipla undertake its CSR activities primarily in iii. Taken proper and sufficient care for maintenance of
quality health, education and skilling. A detailed report adequate accounting records in accordance with the
on Cipla’s various CSR initiatives has been provided in provisions of the Act for safeguarding the assets of
a separate Section ‘Corporate Social Responsibility’.
The Corporate Social Responsibility Report also contain
the Annual Report on CSR initiatives as required under
section 135 of the Companies Act, 2013 (Act) is
annexed as Annexure I to this report.
The Company’s CSR Policy is available on the website

of the Company at
https://www.cipla.com/templates/home_
tpl/images/Corporate_Social_Responsibility_Policy.pdf
Business Responsibility Report

As mandated by the Securities and Exchange Board of
India (SEBI), the Business Responsibility Report
(BRR) forms part of the Annual Report. Since the
Company is publishing Annual Report under
International Integrated Reporting Council (IIRC)
framework this year, report on the nine principles of
the National Voluntary Guidelines on social,
environmental and economic responsibilities of
business as framed by the Ministry of Corporate
Affairs is provided in relevant sections of the IR with
suitable references in the BRR.
Corporate Governance
Pursuant to the Listing Regulations, the Report on
Corporate Governance for the year under review, is
presented in a separate section, forming part of the
Annual Report.
A certificate from M/s. BNP & Associates, confirming

compliance of conditions of Corporate Governance, as
stipulated under the Listing Regulations, is annexed as
Annexure II to this report.
Directors’ Responsibility Statement

Pursuant to section 134(3)(c) of the Act it is
confirmed that the Directors have:
i. Followed applicable accounting standards in the

preparation of the annual accounts and there are
no material departures for the same;
ii. Selected such accounting policies and applied

them consistently and made judgements 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 on 31st March, 2018 and of the
profit of the Company for the year ending 31st
March, 2018;
the Company and for preventing and detecting Annexure IV.
fraud and other irregularities;
Particulars of employee remuneration as required
iv. Prepared the annual accounts on a going under section 197(12) of the Act read with rule 5(2)
concern basis; and rule 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
v. Laid down internal financial controls to be forms part of this
followed by the Company and that such
internal financial controls are adequate and
were operating effectively; and
vi. Devised proper systems to ensure compliance

with the provisions of all applicable laws and
that such systems were adequate and
operating effectively.
Conservation of Energy, Technology

Absorption, Foreign Exchange Earnings
and Outgo
The details of Energy Conservation, Technology
Absorption and Foreign Exchange Earnings and
Outgo as required under section 134(3)(m) of the
Act, read with Rule 8(3) of the Companies
(Accounts) Rules, 2014 is annexed to this report
as Annexure III.
Employee Stock Option Scheme

The Company has an Employee Stock Option
(ESOP) scheme, namely “Employee Stock Option
Scheme 2013-A” (ESOP Scheme) which helps the
Company to retain and attract right talent. The
administers the Company’s ESOP scheme. There were
no changes in the ESOP scheme during the
financial year under review. The ESOP scheme is in
compliance with the Securities and Exchange
Board of India (Share Based Employee Benefits)
Regulations, 2014.
As required under the Securities and Exchange

Board of India (Share Based Employee Benefits)
Regulations, 2014, the applicable disclosures as on
31st March, 2018 are available on the Company’s
website at https://www. cipla.com/en/investor-
information/annual-report-and- chairman-s-
speech.html
Details of the Employee Stock Option Scheme

2013-A have been provided under Note No. 43 of
the Standalone financial statement.
Human Resources
Details of remuneration as required under section
197(12) of the Act read with rule 5(1) of the
Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is annexed as
report. In terms of the provisions of the first proviso and compliance with the Code of Conduct is also
to section 136(1) of the Act, the Annual Report is provided in the Report on Corporate Governance, which
being sent to shareholders excluding the forms part of this Annual Report.
aforementioned information. The information will be
available on the Company’s website www.cipla.com
and is also available for inspection at the registered
office of the Company during working hours 21 days
before the Annual General Meeting. Any member
interested in obtaining such information may write to
the Company Secretary at the Registered Office of the
Company.
Particulars of Loans, Guarantees and

Investments
Particulars of loans, guarantees and investments
under section 186 of the Act are provided in Note No.
45 to the Standalone financial statements.
Extract of Annual Return

As required under sections 92(3) and 134(3)(a) of
the Act read with Rule 12 of Companies (Management
and Administration) Rules, 2014, the extract of Annual
Return in Form MGT-9 forms part of this report as
Annexure V.
Vigil Mechanism
The Company believes in upholding professional
integrity and ethical behaviour in the conduct of its
business. To uphold and promote these standards, the
Company has formulated a Whistle-Blower Policy
which serves as a mechanism for its Directors and
employees to report genuine concerns about unethical
behaviour, actual or suspected fraud or violation of the
Code of Conduct without fear of reprisal. The vigil
mechanism consists of a dedicated email-id. Any
director or employee who becomes aware of an
unethical behaviour or fraud or violation of code shall
report to the Ethics Committee either through email or
by post. In case where directors or employees believe
that such issue cannot be resolved by Ethics
Committee or in exceptional cases, can be addressed
directly to the Chairman of Audit Committee. An Ethics
Committee consisting of the Global Chief People Officer
(GCPO), Global Chief Financial Officer (GCFO), General
Council (GC) and Chief Internal Auditor has been
constituted to look into and investigate on the whistle-
blower complaints. The complaints, reports and action
taken are presented to the Audit Committee on a
quarterly basis. The details of the Whistle-Blower
Policy are available on the Company’s website at
https://www. cipla.com/images/cipla_pdf/Whistle-
Blower.pdf
A brief note on the highlights of Whistle-Blower Policy
Board’s Report 97
Contracts and Arrangements with Related globally accepted risk-based framework as issued by
Parties the Committee of Sponsoring Organizations (COSO) of
the Treadway Commission.
A detailed note on procedure adopted by the Company
in dealing with contracts and arrangements with
related parties is provided in the Report on Corporate
Governance, which forms part of this Annual Report.
All contracts, arrangements and transactions entered

by the Company with related parties during FY18 were
in the ordinary course of business and on an arm’s
length basis. During the year, the Company did not
enter into any transactions, contracts or
arrangements with related parties, that could be
considered material in accordance with the
Company’s policy on related party transactions.
Accordingly, the disclosure of related party
transactions in Form AOC-2 is not applicable.
However, detailed disclosure on related party
transactions as per IND AS- 24 containing name of
the related party and details of the transactions have
been provided under Note No. 42 of the Standalone
financial statements on Page No. 211.
The policy is available on the Company’s website at

https://www.cipla.com//uploads/investor/1532683654
_ Cipla%20Limited%20 -%20Policy%20on%20Dealing
%20 with%20Related%20Party%20Transactions.pdf
Material changes and commitments

affecting financial position between end
of financial year and date of report
No material changes and commitments have
occurred after the close of the year till the date of
this report which may affect the financial position of
the Company.
Significant and Material Orders

No significant or material orders were passed by the
regulators or courts or tribunals which could impact
the going concern status of the Company and its
future operations.
Internal Financial Controls and its

Adequacy
We have adopted policies and procedures for
ensuring orderly and efficient conduct of its business,
including adherence to the Company’s policies,
safeguarding our assets, prevention and detection of
frauds and errors, accuracy and completeness of the
accounting records and timely preparation of reliable
financial disclosures and reporting mechanism. The
current systems of internal financial controls are
aligned with the requirement of the Act, in line with

18
Risk Management Copies of the financial statement of the subsidiary and
associate companies will be available on the Company’s
In terms of the provisions of Section 134 of the Act a
detailed note on Risk Management has been provided
on page no. 36 of this report.
Deposits
During FY18, the Company did not accept any deposit
within the meaning of sections 73 and 74 of the Act
read together with the Companies (Acceptance of
Deposits) Rules, 2014.
Board Evaluation
The evaluation of all the Directors including the
Chairman, the Executive Vice Chairperson and the
Managing Director and Global CEO, Board committee
and the Board as a whole was carried out based on
the criteria and framework approved by the
Nomination and Remuneration Committee. A detailed
disclosure on the parameters and the process of the
Board evaluation as well as the outcome has been
provided in the Corporate Governance Report.
Subsidiaries and Associate

At the beginning of the year, the Company had 53
subsidiaries and 1 associate. As on 31st March, 2018, it has
49 subsidiaries and 1 associate.
During FY18, Anmaraté (Pty) Limited was acquired in

South Africa as a part of strategy to strengthen OTC
portfolio and Cipla Technologies LLC was incorporated
in USA to build speciality product portfolio for Cipla.
During FY18, two non-operating companies viz., Meditab

Specialities New Zealand Ltd and Cipla Pharma
Nigeria Ltd were deregistered. As a part of strategy,
the Company has divested its entire stake in Cipla
Croatia d.o.o., Croatia, Al Jabal For Drugs And Medical
Appliances Company Ltd, Yemen, Cipla Agrimed
Proprietary Ltd and Cipla Vet Proprietary Ltd., in
South Africa.
Details of these subsidiaries and associate are set out

on Page 250 of the Annual Report. Pursuant to section
129(3) of the Act read with rule 5 of the Companies
(Accounts) Rules, 2014, a statement containing
salient features of the financial statement of the
subsidiary and associate companies is given on Page
300 of the Annual Report. The statement also provide
details of the performance and the financial position
of each of the subsidiaries and associate. The
Consolidated financial statements presented in this
annual report include financial results of the
subsidiary and associate companies.
website www.cipla.com and will also be available rotation.
for inspection by the members at the registered
office of the Company during business hours. A brief resume of the Directors seeking re-appointment
Copies of the said financial statements will be / continuation is provided in the Notice of AGM.
made available to any member of the Company
The criteria for determining qualification, positive
and those of the respective subsidiary companies
attributes and independence of a Director is given
upon request.
under Nomination, Remuneration and Board Diversity
The Policy for Determining Material Subsidiaries is Policy.
available on the Company’s website at
https://www.
cipla.com//uploads/investor/14430 00 071 _
Policy-for- determining-Material-Subsidiaries.pdf
Directors and Key Managerial Personnel

Mr Adil Zainulbhai was designated as the Lead
Independent Director w.e.f 11th August, 2017 for a
period of two years from the date of appointment,
with an authority to the Board of Directors to
renew his appointment for a further term of two
years.
Ms Punita Lal was designated as the Chairperson of

the Nomination and Remuneration Committee in
place of Mr Adil Zainulbhai, who relinquished the
Chairmanship of the Committee to take charge as
Lead Independent Director.
Mr S. Radhakrishnan completed his term as a

Whole-time Director on 11th November, 2017 and
w.e.f 12th November, 2017, he continues as a Non-
Executive Director of the Company, liable to retire
by rotation, in terms of re-appointment approved
by the Members at the 81st Annual General
Meeting (AGM) held on 11th August, 2017.
Pursuant to the recommendation of the Kotak

Committee, the SEBI has recently amended the
Listing Regulations. The amended Listing
Regulations inter alia require every listed entity to
seek consent of its members by way of special
resolution for appointment / continuation of the
non- executive directors on attaining the age of 75
years. In case of existing directors such consent is
required to be taken before 1st April, 2019. Since both
Dr Y. K. Hamied, Non- Executive Chairman and Mr
M. K. Hamied, Non-Executive Vice-Chairman have
attained the age of 75 years, consent of the
shareholders by way of special resolution is
required for their continuation as non-executive
directors. The Board recommends the resolutions
regarding continuation of Dr Hamied and Mr
Hamied as the non-executive directors of the
Company for approval of the shareholders.
Ms Samina Vaziralli retires by rotation and, being

eligible, offers herself for re-appointment. The
Board recommends the re-appointment of Ms
Samina Vaziralli as Director liable to retire by
Neither the Managing Director and Global CEO nor the
Whole-time Directors, received any remuneration or
Secretarial Auditor and Secretarial Audit
commission from any of the Company’s subsidiaries Report
during the previous year.
The Board, on the recommendation of the Audit
The Nomination, Remuneration and Board Diversity Committee, had appointed M/s BNP & Associates,
Policy has been disclosed as Exhibit A to the Report on Company Secretaries, Mumbai as the Secretarial
Corporate Governance. Auditor for FY18. The Secretarial Audit Report for
the financial year ended 31st March, 2018 is annexed
Declaration by Independent Directors to this report as Annexure VI. The Report does not
contain any qualification, reservation, disclaimer or
All Independent Directors of the Company have adverse remark
submitted requisite declarations confirming that they
continue to meet the criteria of independence as
prescribed under section 149(6) of the Act and Cost Auditor
Regulation 16(1)(b) of the Listing Regulations. The
The Board, on the recommendation of the Audit
Independent Directors have also confirmed that they
Committee, had appointed Mr D. H. Zaveri, practising
have complied with the Company’s Code of Conduct.
Cost Accountant (Fellow Membership No. 8971) as cost
auditor to conduct the audit of Company’s cost records
Committees of Board, Number of Meetings of for the financial year ended 31 st March, 2018. The Cost
the Board and Board Committees
Auditors will submit their report for the FY18 on or before
The Board currently has six committees, namely, the the due date.
Audit Committee, the Nomination and Remuneration
The Cost Audit Report, for the year ended 31 st March,
Committee, the Corporate Social Responsibility
Committee, the Stakeholders Relationship Committee, 2017, was filed with the Central Government within the
the Investment and Risk Management Committee and prescribed time.
the Operations and Administrative Committee. All the
In accordance with the provisions of section 148 of
recommendations made by the Committees of Board
the Act read with the Companies (Audit and Auditors)
including the Audit Committee were accepted by the
Rules, 2014, since the remuneration payable to the
Board.
Cost Auditors for FY19 is required to be ratified by the
During the year under review, the Board met five shareholders, the Board recommends the same for
times. A detailed update on the Board, its approval by shareholders at the ensuing AGM.
composition, detailed charter including terms of
reference of various Board Committees, number of
Board and Committee meetings held during FY18
Acknowledgements
and attendance of the Directors at each meeting is We wish to place on record our appreciation to the
provided in the Report on Corporate Governance,
Government of various countries where the Company
which forms part of this report.
has its operations. We thank the Ministry of Chemicals
& Fertilizers, Central Government, State Government,
Auditor and Auditor’s Report and other regulatory bodies / authorities, banks,
Walker Chandiok & Co LLP, Chartered Accountants was business partners, shareholders, medical
appointed as the Statutory Auditor of the Company at practitioners and other stakeholders for the
the AGM held on 28th September, 2016 to hold the assistance, co-operation and encouragement
office till the conclusion of 85th AGM of 2021. The extended to the Company. We also like to place on
Company has received a certificate from the Statutory record our deep sense of appreciation to the
Auditor confirming their appointment continues to be in employees for their contribution and services.
accordance with the provisions of section 141 of the
Act. On behalf of the Board
The Auditor’s Report for FY18 does not contain any Date: 22 nd May, 2018 Y. K. Hamied
qualification, reservation or adverse remark. Place: Mumbai Chairman
Annexure I
Annual Report on CSR Initiatives (Particulars required as per Companies (Corporate
Social Responsibility Policy) Rules, 2014, as amended from time to time)
I Overview of Corporate Social To undertake projects/programmes which will

Responsibility enhance the quality of life and economic
well- being of the communities in
Cipla believes in the philosophy of “Caring for
accordance with Schedule VII of the
Life”. Social responsibility is integral to Cipla’s
Companies Act, 2013 (“Act”) read with the
corporate ethos. Cipla through its CSR arms
Companies (Corporate Social Responsibility
continues to work in the areas of health,
Policy) Rules, 2014, as amended from time to
education, skilling among others in order to
time (“Rules”).
minimise the gaps in accessibility and
affordability across geographies. Cipla takes The CSR Policy of the Company including the CSR
forward and grows its socially conscious legacy activities undertaken by it is available at:
commitments to the communities. These
initiatives were put in place long before the CSR h t t p s : // w w w. c i p l a . c o m /t e m p l a t e s / h o m e _
law came into effect. The Company’s CSR tpl/
initiatives and related projects are undertaken images/Corporate_Social_Responsibility_Policy.pdf
through Cipla Foundation and its implementing
The Board through the CSR Committee closely
partners.
monitors the progress of the CSR initiatives.
Cipla engages with credible institutions, NGO’s,
government agencies, individuals, visionaries,
II Composition of CSR Committee
domain experts and other foundations to
leverage their expertise, networks and The Composition of the CSR Committee as on the
relationships in implementing the CSR initiatives. date of the Director’s Report is as follows:
Cipla’s CSR work is anchored around supporting
Name Category
communities in and
around its units in health, education and skilling. Mr M. K. Non-Executive Vice
Cipla is committed to projects which are national Hamied Chairman
(Chairman of
the
priorities in Health and Skilling. Cipla has laid the Companies Act, 2013. Since then the Company
down a strong foundation to build and scale up has instituted a CSR policy duly approved by the
future long term projects and partnerships. A Board. In order to achieve its vision and fulfil its
considerable amount of time was spent by the commitment to be a socially responsible corporate citizen,
Company in strengthening the foundation’s the CSR policy was formulated with the following
team, planning and building strong governance objective:
processes and bandwidth to execute and monitor
the CSR projects.
The foundation has developed an online Project

management system along with an operations
manual aimed at measuring and monitoring
the deliverables and strengthened its financial
and due diligence processes. The Company has
witnessed a consistent 3 years growth
trajectory and met the prescribed CSR
expenditure in the FY18.
Cipla has been undertaking CSR programmes in

line with the requirements of the Section 135 of
Committee)
Independent Director Ms Punita Lal
Independent Director Mr S.
Radhakrishnan Non Executive Director
Mr Umang Vohra Managing Director and
Global Chief Executive
Officer
The composition of the CSR Committee is

compliant with the Act and the CSR Rules.
III Average Net Profit of the

Company for last three financial
years (Average Net Profit
calculated in accordance with the
provisions of Section 198 of the
Companies Act)
H1552.75 Crore
IV Prescribed CSR Expenditure (two

percent of the amount as in item
III above)
H31.05 Crore
V Details of CSR spent during the financial year 2017-18
a) Total amount to be spent during the financial year - H 31.05 Crore
b) Amount unspent, if any. – Nil
c) Manner in which the amount spent during the financial year is detailed
below:
(Amount in H Crore)
S. CSR project or activity Sector in which the Projects or Total Amount spent Cumulative Amount spent:
No. identified Project is covered (As Programmes Amount in FY18 on the expenditure (1)Direct or
per Schedule VII of the (1) Local outlay projects or upto the (2) through
Companies Act, 2013, as area or other Programmes reporting implementing
amended) Sub heads: period FY18 agency
(2) State
and district (1) Direc
t
expenditure
on projects
or
Programmes
1 Cipla Palliative Care Promoting healthcare (2) Overh Cipla
And eads
1) 6.22
Training Centre including preventive 1. Warje, 21.40 21.40
2) 0.37 Foundation
healthcare Pune
2 Promoting Healthcare Promoting healthcare 2.Maharashtra
addressing issues around including sanitation and 1. Badd
affordability and accessibility eradicating malnutrition i, South Goa,
of quality healthcare Indore,
including palliative care and Kurkumbh,
sanitation Mumbai,
Patalganga,
(Healthcare services to the Vikhroli, Delhi,
community, Infrastructure East Sikkim, Pune Cipla Limited
support to hospitals, Medical 2.Himachal 31.56 1) 15.04 & Cipla
2) 0.92 29.74
support to Individuals, Pradesh, Foundation
Mobile Health care Goa,
services, Awareness for Madhya
Hepatitis, Construction of Pradesh,
Sanitation blocks, Maharashtra,
Developmental Delhi, Sikkim
Disabilities, Pain and
Palliative Care, Research
studies and education on
Public Health & Promoting
Promoting education
Healthcare including
including special education
Preventive Healthcare)
3 Promoting Education 1. B
including special Education addi,
Bangalore,
(Mobile Science Van, South
Education of underprivileged Goa,
1) 3.75 Cipla
children from troubled Indore,
background, Infrastructural Kurkumbh,
support to School, Meritorious Mumbai,
Patalganga,
Vikhroli, Rangpo,
Awards, Promoting Education, East Sikkim 7.44 7.15
2) 0.23 Foundation
Hole in the wall, Promoting 2.Himachal
Education in govt. schools, Pradesh,
Sponsorship to Economically Karnataka,
weaker Students, Goa,
Sponsorship to Students, E- Madhya
Learning & pre- school Pradesh,
education, Awareness Maharashtra,
programme for Road Safety Sikkim
Rules for local Taxi drivers) Promoting special
4 Training and education, and 1. Mumbai, Baddi
Skill employment enhancing 2.Maharashtra,
Enhancement Himachal
(Skill development vocation skills especially Pradesh 1) 1.19 Cipla
and entrepreneurship among children, women, 4.09 2) 0.07 3.82 Foundation
programmes) and the differently
abled and livelihood
enhancement projects
(Amount in H Crore)
S. CSR project or activity Sector in which the Projects or Total Amount spent Cumulative Amount spent:
No. identified Project is covered (As Programmes Amount in FY18 on the expenditure (1)Direct or
per Schedule VII of the (1) Local outlay projects or upto the (2) through
Companies Act, 2013, as area or other Programmes reporting implementing
amended) Sub heads: period FY18 agency
(2) Stat
e and (1) Direc
district t
expenditure
on projects
or
Programmes
5 Disaster Relief Promoting health,
(2) Overh
sanitation and eradicating 1. Mor eads Cipla
igaon,
Launglei,
1) 0.28
(Medical relief, Basic hunger and poverty Sitamarhi 0.29 0.29
2) 0.01 Foundation
assistance material, Medical 2.Assam,
camps, Child friendly spaces) Mizoram, Bihar
6 Others
i. Contribution to Cipla Promoting healthcare 1. Mumbai
Foundation towards including preventive
undertaking CSR activities healthcare
as per the focus areas Promoting education 2.Maharashtra
and programme areas including special education
listed in Schedule VII, Promoting special Cipla
Section 135 of
the Companies Act, 2013 education, and 4.00 1) 4.00
4.00 Foundation
employment enhancing 2) Nil

vocation skills especially
among children, women,
and the differently
abled and livelihood
enhancement projects
ii. Support of old age and Promoting setting up 1. Taloje
community hall for socially homes for reducing (Mumbai) Cipla
0.04
and economically backward inequalities faced by 2. Maharashtra 0.04 1) 0.033 Foundation
groups, socially and economically 2) 0.002
backward groups
iii. Environmental Sustainability, Ensuring Environmental 1. Indore,
ecological balance and Sustainability Mumbai,
conservational of natural resources
Patalganga
1) 0.08 Cipla
0.08 0.08
2) 0.004 Foundation
2. Madhya
Pradesh,
Maharashtra,
Sub Total of Others 4.12 4.12 4.12
Grand Total (1+2+3+4+5+6) 68.89 32.20 66.52
Note: The above mentioned cumulative total includes only the above mentioned projects. There were additional
projects which are not included in the total. The grand total may not match because of the rounding off
numbers.
Responsibility Policy) Rules, 2014, as amended from
time to time, it is confirmed that the CSR Committee
has implemented and monitored the CSR initiatives
VI CSR Expenditure for the FY18
During the FY18, the Company spent H32.20 Crore
on various CSR initiatives, which is equivalent to
2.07% of its average net profit of the last three
financial years.
VII Responsibility Statement

Pursuant to the Companies (Corporate Social
of Cipla in line with the CSR Objectives and
Policy of the Company. The CSR Committee
has prepared a CSR plan, apprised the
Board of the same and monitored the status
reports of the projects/ programmes
submitted to them on a periodic basis.
Chair
man CSR
Committee
Date: 22nd May, 2018 Managing Director and

Global Place: Mumbai Chief Executive
Officer
Annexure II
Certificate on Compliance under SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015
To
The Members of
Cipla Limited
We have examined the compliance of conditions of corporate governance by Cipla Limited (the ‘Company’)
for the year ended 31st March, 2018, as prescribed in Regulations 17 to 27, clauses (b) to (i) of sub-regulation
(2) of regulation 46 and paras C, D and E of Schedule V to Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).
We state that the compliance of conditions of Corporate Governance is the responsibility of the
management, and our examination was limited to procedures adopted and implementation thereof, by the
Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit
nor an expression of opinion on the financial statements of the Company.
In our opinion, and to the best of our information and according to the explanations given to us, we certify
that the Company has complied with the conditions of Corporate Governance as stipulated in the aforesaid
provisions of Listing Regulations.
We further state that such compliance is neither an assurance as to the future viability of the Company
nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.
For BNP & Associates

Company Secretaries
[Firm Regn No. P2014MH037400]
Avinash Bagul
Place: Mumbai Partner
Date: 22nd May, 2018 FCS No.: 5578 /C P No.: 19862
Annexure III
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo.
The information under section 134(3) (m) of the Companies Act, 2013 read with rule 8 (3) of the Companies
(Accounts) Rules, 2014 for the year ended 31st March, 2018 is given here below and forms part of the Board’s
Report.
A. Conservation of Energy Heating and maintaining of reaction

mass was done by using hot water
(I)The steps taken or impact on conservation system modified to use steam and
of energy resulted in batch time reduction.
a. The company is making continuous efforts

on ongoing basis to conserve the energy by
adopting innovative measures to reduce
wastage and optimise consumption. Some of
the specific measures undertaken are:
i. Renewable energy utilisation: Installation of

additional roof top 20 kWp Solar power
plant at Goa.
ii. Lighting system performance improvement

programme: Retrofitting of LED lights in
existing light fixture at Baddi, Bommasandra,
Goa, Indore, Kurkumbh, Patalganga, Sikkim and
Virgonagar has resulted in saving of Approx.
5.77 Lakhs of kWh.
iii. Variable Frequency Drive (VFD) system:

Continuation of Installation of variable
frequency drive for various process and
utility equipments across sites.
iv. Process area equipment’s usage optimisation: -
Revised the Relative Humidity (RH) limit

of Heating Ventilation & Air Conditioning
(HVAC) from 40-50 % to 30-50 % - widen
the RH limit which has reduced the
running of Air Chilling Device and
humidifier in Indore.
Conveyor of packing is interlocked in

such a way that the conveyor will run
only when the product is on the
conveyor to avoid idle running of
conveyor. It was implemented for 04 nos.
of conveyor in Indore.
API store circulation fan interlocked with

DX unit to avoid idle running of DX unit.
Replacement of centrifuge bag with

suitable material of construction and
required porosity resulting into batch
time cycle reduction in Kurkumbh.
Replacement of existing Vacuum Tray
Dryer (VTD) by new higher capacity VTD
to reduce drying cycle time in finishing
area.
v. Energy Efficiency improvement programme:
At Goa
(1)Synchronisation of 5 DG sets in Utility II

to optimise loading pattern.
(2)Warm water pump demand optimisation

using Variable Frequency Drive (VFD)
and pressure feedback.
At Indore
(1)Air compressor upgraded by

incorporating ON/OFF facility during
longer unload run of an air compressor.
It has reduced no load running of air
compressor.
(2)Optimisation of running of air

compressors by modifying compressed
air line for better utilisation resulting in
stopping of one of the air compressor.
Currently one air compressor is running
instead of two air compressors.
At Kurkumbh
(1)PLC based temperature RH control

system installed to AHU in finishing
area- This has reduced load on chillers.
(2)Modification and Automation of warm

water generation for HVAC system. This
is saving steam usage by using available
warm water from chilling plant
condenser.
(3)Decongestion in the area to facilitate

natural ventilation in API intermediate
area resulting into elimination need for
force ventilation.
At Baddi
(1)Switching ON/OFF of AHU for store area

based on achievement of desired
conditions.
(2)Interlocking of chilled water supply

valve with AHUs operation resulting in
reduced load on chillers.
(3)Substitution of Electrical heating with Internal parts of utility pump are coated
steam: Steam Heating used in place of for reducing erosion, resulting in sustained
Electrical Heating in aerosol area efficiency.
dehumidifiers, stopped the electrical
heaters.
(4)Optimisation of running of air

compressors by modifying compressed
air line for better utilisation resulting in
stopping of one of the air compressor.
Currently one air compressor is running
instead of two air compressors.
At Sikkim
(1) ETP Treated water for flushing in Toilet and

Cooling Tower Makeup water reducing
potable water consumption.
vi. Internal Modification:
Feed for Solvent stripper from collection

tank pump is removed from facility and
modified the feed line directly to solvent
stripper feed pump at Virgonagar.
Water cooler of canteen are removed

and installed RO system with heat
exchanger by using return line chilled
water for cooling of drinking water.
Common plate heat exchanger was

installed for heating and cooling the
VTD. It was not giving proper
performance. Removed that and new
PHE installed for heating only and
cooling water circulation line provided
for cooling, this has reduced heating
and cooling time.
Replacement of Cassette Air conditioner by

enhancing the capacity of existing AHU in
HVAC section at Baddi.
Segregation of RH and non-RH area of

building which has reduced loading on
dehumidifiers
vii. New technology absorption:
Highly efficient Electronic Commutating

permanent magnet motors used for Air
Handling Unit
Energy efficient chilled water

refrigerator compressor at Goa with
magnetic bearing.
viii. Maintaining Unity Power Factor combinations to maximise patient benefit
Incentive at all Cipla Manufacturing and compliance.
Locations
ix. Most of the Cipla Units are certified &

awarded Energy Management System (ISO
50001) by reputed Accreditation body.
x. Energy Audits have been conducted for all

units by reputed Energy consultants.
b. Impact of the above measures for reduction of

energy consumption and consequent impact on
the cost of production of goods:
The adoption of the above energy conservation

measures has helped to curtail the
proportionate increase in total energy usage
consequent to overall increase in production.
This has made it possible to maintain cost of
production at optimum levels.
(II) The steps taken by the company

for utilising alternate sources of energy:
Installation of additional roof top 20 kWp Solar

power plant at Goa
(III) The capital investment on the

energy conservation equipments:
The Capital investment on energy conservation

equipment is H 1.80 Crore during the FY18.
B.TECHNOLOGY ABSORPTION
(I)The efforts made towards technology
absorption:
i. Development and scale-up of new

formulations for existing and newer active
drug substances using innovative and
advanced processing equipment’s.
ii. Projects to develop APIs and formulations

jointly with overseas companies.
iii. Patenting of newer processes/newer

products/ newer drug delivery
systems/newer medical devices/newer
usage of drugs for both local and
international markets.
iv. Development of new products, both in the

area of APIs as well as formulations,
specifically, for export. These include
development of complex technologies such
as finished products which are drug-device
v. Development of complex generic
iv. Improvement in operational efficiency
formulations based on Nanotechnology such
through reduction in batch hours, increase in
as Nanoparticle solids & injections, liposomal
batch sizes, better solvent recovery and
injections, long acting depot injections, Intra-
simplification of processes.
vaginal contraceptive dosage forms, multi
particulate extended release oral systems v. Meeting norms of external regulatory
specifically for US market. agencies to facilitate more exports.
vi. Development of new drug delivery systems vi. Development of products for import
and new medical devices for Respiratory, substitution.
Nasal, Vaginal rings, depot injections,
drug-device combinations, Transdermal vii. Maximum utilisation of indigenous raw
dosage forms. materials.
vii. Development of new innovative technology (III) The details of Imported Technology
for the manufacture of existing APIs and (imported during the last three years
their intermediates. reckoned from the beginning of the
financial year) – No expenditure have been
viii.Development of agro technology, genetics incurred on import of new technology during the
and biotechnology for cultivation of financial years 2015-16, 2016-17 and 2017-18.
medicinal plants and isolation of active
ingredients from plant materials. (IV) The expenditure incurred on Research
& Development (Standalone):
ix. Development of methods to improve safety
procedures, effluent control, pollution control, H in Crore
etc. a. Capital 63.28
b. Recurring 916.94
x. Development of products related to the
Total 980.22
indigenous system of medicines.
xi. Incorporation of software based simulations The total R&D expenditure as a percentage of
to reduce experimental work (for example: total turnover is around 8.10%.
CFD, Gastroplus, PKPB modeling etc).
(II) The benefits derived like product C. Foreign Exchange Earnings and Outgo
improvement, cost reduction, product The Exports Sales were H4988.27 Crore for FY18.
development or import substitution: The Company earned H47.89 Crore towards
technical know-how & licensing fees and
i. Successful commercial scale up of several
H132.93 Crore for other services.
new APIs and formulations, including
complex generics, differentiated products During the year, the foreign exchange outgo
and drug device combination products. was H 2103.33 Crore and earnings in foreign
exchange were H 5169.09 Crore.
ii. Development of new drug delivery systems
and devices to improve patient benefit.
On behalf of the Board,
iii. Improved processes and enhanced
productivity in both APIs and formulations.
Date : 22nd May, 2018 Y. K. Hamied
Place : Mumbai Chairman
Annexure IV
Details pertaining to remuneration as required under section 197(12) of the Companies Act,
2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014
i. The ratio of the remuneration of each Director to the median remuneration of the employees of the
Company for the financial year 2017-18 and the percentage increase in remuneration of each Director, Chief
Financial Officer and Company Secretary during the financial year 2017-18:
Name Designation Ratio to % increase

median in
remuneration remuneration
in FY18
Dr Y. K. Hamied Chairman 63:1 0.50%
Mr M. K. Hamied Vice-Chairman 65:1 0.48%
Ms Samina Vaziralli Executive Vice-Chairperson 177:1 46.15%
Mr S. Radhakrishnan Non-Executive Director(2) 191:1 50.74%
Mr Umang Vohra Managing Director and Global 587:1 46.08%
(Appointed as Managing Director w.e.f. Chief Executive Officer(3)
1st September, 2016)
Mr Ashok Sinha Independent Director 15:1 (7.13%)(4)
Dr Peter Mugyenyi Independent Director 13:1 1.19%
Mr Adil Zainulbhai Independent Director 11:1 (13.22%)(5)
Ms Punita Lal Independent Director 12:1 4.09%
Ms Naina Lal Kidwai Independent Director 12:1 (6.98%)(6)
Ms Ireena Vittal Independent Director 13:1 203.70%(7)
(Appointed w.e.f. 1st December, 2016)
Mr Peter Lankau Independent Director 14:1 319.05%(8)
(Appointed w.e.f. 10th January, 2017)
Mr Kedar Upadhye Global Chief Financial Officer Not (20.04%)
(Appointed w.e.f. 1st August, 2016) applicable
Mr Rajendra Chopra Company Secretary 604.52%(9)
(Appointed w.e.f. 9th February, 2017)
ii. The percentage increase in the median remuneration of employees in the financial year: 3.41%
iii. Number of permanent employees on the rolls of the Company as on 31st March, 2018: 23610.
iv. The average annual increase excluding the managerial personnel in the financial year 2017-18 was 4.68%.
The increase in the average managerial remuneration for the financial year 2017-18 was 6.34%
excluding ESOP exercised value.(10)
v. It is affirmed that the remuneration is as per the Nomination, Remuneration and Board Diversity
Policy of the Company.
Notes:
(1) There has been no change in the criteria for payment of remuneration to independent directors. The variation reflected in the column “%
increase in remuneration in FY18” is either due to the tenure of directorship, change in the committee composition or payment of sitting fees
for attendance at meetings.
(2) Mr S. Radhakrishnan completed his term as a whole-time director on 11th November, 2017 and continues as a non-executive
director of the Company w.e.f 12 th November, 2017. The % increase in the remuneration in FY18 includes perquisite value of stock options
exercised during the financial year. Had the perquisite value of stock options (which were granted in earlier years but exercised during
FY18) not been considered, the % increase in the remuneration in FY18 would have been (18.23%).
(3) Mr Umang Vohra was appointed as Global Chief Financial and Strategy Officer w.e.f. 1st October, 2015. He was elevated to the
position of Managing Director and Global Chief Executive Officer w.e.f. 1st September, 2016 after serving as Global Chief Operating
Officer for a brief period in the interim. At the time of elevation as Managing Director and Global Chief Executive Officer, his
remuneration was revised. Since the revision in remuneration was due to change in his roles and responsibilities, the % increase in
his remuneration was not comparable in FY17. Had the actual remuneration paid in FY17 as Managing Director been compared to the
actual remuneration for full year in FY18, the
% increase in remuneration would have been 66.36%. However, if the actual remuneration paid in FY17 as Managing Director had been
annualised for the whole year, the % increase in remuneration would have been 6.73%.
(4) The % increase in remuneration in negative since Mr Ashok Sinha ceased to be member of Nomination and Remuneration
Committee since 11th August, 2017.
(5) The % increase in remuneration in negative since Mr Adil Zainulbhai ceased to be Chairman of Nomination and Remuneration Committee
and continued as member since 11th August, 2017.
(6) The % increase in remuneration is negative mainly due to lower number of board / committee meetings attended in FY18 vis-à-vis FY17.
(7) Ms Ireena Vittal was appointed as Director w.e.f. 1st December, 2016 and received remuneration only for part of the year in FY17. The % increase
in remuneration is appearing high because the remuneration amount for FY18 is for full year vis-à-vis FY17.
(8) Mr Peter Lankau was appointed as Director w.e.f. 10th January, 2017 and received remuneration only for part of the year in FY17. The % increase
in remuneration is appearing high because the remuneration amount for FY18 is for full year vis-à-vis FY17.
(9) Mr Rajendra Chopra was appointed as Company Secretary w.e.f. 9th February, 2017 and received remuneration only for part of the
year in FY17. The % increase in remuneration is appearing high because the remuneration amount for FY18 is for full year
vis-à-vis FY17. The remuneration for FY18 also includes tranches of joining bonus paid in July, 2017 and August, 2017.
(10) The % increase in the average managerial remuneration for FY18 does not include perquisite value of stock options exercised during the
financial year. Had the perquisite value of stock options (which were granted in earlier years but exercised during FY18) been considered,
the
% increase in the average managerial remuneration for FY18 would have been 47%.
Annexure V
Extract of Annual
Return FORM NO. MGT-9
as on the financial year ended 31st March, 2018
[Pursuant to Section 92(3) of the Companies Act, 2013 and
Rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. Registration and other Details

i) CIN L24239MH1935PLC002380
ii) Registration Date 17th August, 1935
iii) Name of the Company Cipla Limited
iv) Category Public Company
Sub-Category of the Limited by shares
Company
v) Address of the Registered Office and Contact details Cipla House, Peninsula Business Park, Ganpatrao
Kadam Marg, Lower Parel, Mumbai -
400013 Tel: (022) 2482 6000
Fax: (022) 2482 6120
Email: cosecretary@cipla.com
Website: www.cipla.com
vi) Whether listed company Yes
vii) Name, Address and Contact details of Karvy Computershare Private Limited
Registrar & Transfer Agent Karvy Selenium Tower B, Plot No.: 31 & 32,
Gachibowli, Financial District, Nanakramguda,
Serilingampally,
Hyderabad - 500032, Telangana
Tel: (040) 6716 2222 / 6716 1511
Fax: (040) 2300 1153
Email: einward.ris@karvy.com
II.Principal business activities of the Company

Sr. Name and Description of NIC Code of the product % to total turnover of
No. main products / services / service the Company
i) Pharmaceuticals 210 100
III. Particulars of Holding, Subsidiary and Associate Companies

Sr. Name and address of the CIN/GLN Holding/ % Applicable
Company No. Subsidiary/ of section of the
Associate shares Companies
held
Act, 2013
Subsidiaries (held directly)
1 Cipla FZE NA Subsidiary 100.00 2(87)
Office No. LOB17132, Jebel Ali Free
Zone, Dubai, U.A.E.
2 Goldencross Pharma Pvt. Ltd. U24239MH2000PTC123766 Subsidiary 100.00 2(87)
C1-Pooja Apartment, 17,
Hariyali Estate Vikhroli (West),
Mumbai -
400 083, Maharashtra, India
Sr. Name and address of the Company CIN/GLN Holding/ % Applicable
No. Subsidiary/ of section of the
held
Act, 2013
3 Cipla (Mauritius) Ltd. NA Subsidiary 100.00 2(87)
C/o. SGG Corporate Services
(Mauritius) Ltd, 33 Edith Cavell
Street, Port Louis, 11324, Mauritius
4 Meditab Specialities Pvt. Ltd. U23240MH1996PTC104442 Subsidiary 100.00 2(87)
C1-Pooja Apartment, 17, Hariyali
Estate Vikhroli (West), Mumbai -
5 Cipla Medpro South Africa (Pty) NA Subsidiary 100.00 2(87)
Ltd.
1474 South Coast Road, Mobeni,
Durban, Kwa-Zulu Natal, 4052
6 Cipla Holding B.V. NA Subsidiary 100.00 2(87)
Cipla Eurla, Antonie Van
Leeuwenhoeklaan 9, Building A8,
2nd Floor, 3721 MA Bilthoven, The
Netherlands
7 Cipla BioTec Pvt. Ltd. U24239GA2008PTC007374 Subsidiary 100.00 2(87)
L - 147/B, Verna Industrial Area,
Verna, Goa - 403 722, India
8 Cipla (EU) Ltd. NA Subsidiary 100.00 2(87)
Dixcart House, Addlestone Road,
Bourne Business Park, Addlestone,
Surrey, KT15 2LE, United Kingdom
9 Saba Investment Ltd. NA Subsidiary 51.00 2(87)
P.O. Box 124600, Suite # 516,
Sultan
Business Centre,
Oud Metha, Dubai, U.A.E.
10 Jay Precision Pharmaceuticals Pvt. U33111MH2012PTC234037 Subsidiary 60.00 2(87)
Ltd.
Government Indl Estate, Plot No.
40/41 ABCD, Charkop, Kandivali
(West), Mumbai - 400 067,
Maharashtra, India
11 Cipla Health Ltd. U24100MH2015PLC267880 Subsidiary 70.20 2(87)
Tower B, 7th Floor, Peninsula
Business Park, Ganpatrao Kadam
Marg, Lower Parel,
Mumbai - 400 013
Subsidiaries (held indirectly)
12 Medispray Laboratories Pvt. Ltd. U52311GA1992PTC002801 Subsidiary 100.00 2(87)
Plot No.344/345, Kundaim
Industrial Estate, Kundaim, Goa -
403 115, India
13 Sitec Labs Pvt. Ltd. U74999MH2000PTC129210 Subsidiary 100.00 2(87)
C1-Pooja Apartment, 17, Hariyali
Estate Vikhroli (West), Mumbai -
No. Company Subsidiary/ of section of the
held
Act, 2013
14 Cipla (UK) Ltd. NA Subsidiary 100.00 2(87)
Dixcart House, Addlestone Road,
Bourne Business Park, Addlestone,
Surrey, KT15 2LE, United Kingdom
15 Cipla Australia Pty. Ltd. NA Subsidiary 100.00 2(87)
BSA Partnership Pty Ltd, Level 15,
461 Bourke Street, Melbourne, VIC,
3000, Australia
16 Meditab Holdings Ltd. NA Subsidiary 100.00 2(87)
C/o. SGG Corporate Services
(Mauritius) Ltd, 33 Edith Cavell
Street, Port Louis, 11324, Mauritius
17 Cipla İlaç Ticaret Anonim Şirketi* NA Subsidiary 100.00 2(87)
Fulya Hakkı Yeten Cad. Seleniun,
Plaza No: 10C Kat:6 Besiktas –
Istanbul, Turkey
18 Cipla USA Inc. NA Subsidiary 100.00 2(87)
251 Little Falls Drive, Wilmington,
DE 19808, New Castle County,
Wilmington, DE 19801, USA
19 Cipla Kenya Ltd. NA Subsidiary 100.00 2(87)
5th Floor, Avocado Towers, Muthithi
Road, Westlands, P.O. Box 45669
-
00100, Nairobi
20 Cipla Malaysia Sdn. Bhd. NA Subsidiary 100.00 2(87)
Suite 1005, 10th Floor, Wisma
Hamzah-Kwong Hing, No. 1, Leboh
Ampang, 50100, Kuala Lumpur,
Wilayah Persekutuan, Malaysia
21 Cipla Europe NV, NA Subsidiary 100.00 2(87)
De Keyserlei 58-60, Box 19,
2018 Antwerpen Belgium
22 Cipla Quality Chemical Industries NA Subsidiary 51.05 2(87)
Ltd.**
Plot 1-7, First Ring Road, Luzira
Industrial Park, P.O. Box 34871,
Kampala, Uganda
23 Galilee Marketing Proprietary Ltd. NA Subsidiary 100.00 2(87)
1474, South Coast Road,
Mobeni-4052, South Africa
24 Inyanga Trading 386 Proprietary NA Subsidiary 100.00 2(87)
Ltd.
Parc du Cap, Building 9, Mispel
Street Bellville, Western Cape,
7530, South Africa
held
Act, 2013
25 Xeragen Laboratories Proprietary NA Subsidiary 100.00 2(87)
Ltd.
1474, South Coast Road,
Mobeni-4052, South Africa
26 Cipla Medpro Holdings Proprietary NA Subsidiary 100.00 2(87)
Ltd.
7530, South Africa
27 Cape to Cairo Exports Proprietary NA Subsidiary 100.00 2(87)
Ltd.
7530, South Africa
28 Cipla Dibcare Proprietary Ltd. NA Subsidiary 100.00 2(87)
7530, South Africa
29 Cipla Life Sciences Proprietary Ltd. NA Subsidiary 100.00 2(87)
7530, South Africa
30 Cipla-Medpro Proprietary Ltd. NA Subsidiary 100.00 2(87)
7530, South Africa
31 Cipla-Medpro Distribution Centre NA Subsidiary 100.00 2(87)
Proprietary Ltd.
7530, South Africa
32 Cipla Medpro Botswana NA Subsidiary 100.00 2(87)
Proprietary Ltd.
P.O. Box 40185, Gaborone, South
Africa
33 Cipla Nutrition Proprietary Ltd. NA Subsidiary 100.00 2(87)
7530, South Africa
34 Medpro Pharmaceutica NA Subsidiary 100.00 2(87)
Proprietary Ltd.
7530, South Africa
35 Med Man Care Proprietary Ltd. NA Subsidiary 100.00 2(87)
7530, South Africa
held
Act, 2013
36 Breathe Free Lanka (Private) Ltd. NA Subsidiary 100.00 2(87)
No. 47, Alexandra Place, Colombo
07, Sri Lanka
37 Medica Pharmaceutical Industries NA Subsidiary 50.49 2(87)
Company Ltd.
Al-Jabal Group building, Noakshot
Street, Behind Canada Dry
Factory, Sanaa, Yemen
38 Cipla Pharma Lanka (Private) Ltd. NA Subsidiary 60.00 2(87)
No 345- 4/1, Galle Roads,
Colombo 03
39 Cipla Brasil Importadora E NA Subsidiary 100.00 2(87)
Distribuidora De Medicamentos Ltda.
City of Vargem Grande Paulista,
State of Sao Paulo, at Estrada da
Lagoinha, No. 489, block 2, Bairro
da
Lagoa, CEP 06730-000
40 Cipla Maroc S.A. NA Subsidiary 60.00 2(87)
Casablanca-Bureau no.1, 7ème
étage, 33 Avenue Hassan Sghir,
Morocco
41 Cipla Middle East Pharmaceuticals NA Subsidiary 51.00 2(87)
FZ-LLC
Dubai Technology & Media Free
Zone, Dubai, U.A.E.
42 Quality Chemicals Limited NA Subsidiary 51.00 2(87)
Quality Chemicals House, Plot
64/65 Katwe Road, P.O. Box 3381,
Kampala, Uganda
43 Cipla Philippines Inc. NA Subsidiary 100.00 2(87)
Level 40, PBCom Tower, 6795
Ayala
Avenue Corner V. A., Rufino Street,
Makati City, Metro Manila, 1226,
Philippines
44 InvaGen Pharmaceuticals Inc. NA Subsidiary 100.00 2(87)
Site B, 7 Oser Avenue, Hauppauge,
New York, 11788, USA
45 Exelan Pharmaceuticals Inc. NA Subsidiary 100.00 2(87)
Corporation Trust Center, 1209
Orange Street, Wilmington, New
Castle County, Delaware 19801
46 Cipla BioTec South Africa (Pty) NA Subsidiary 100.00 2(87)
Limited
Building 2, Maxwell Office Park,
Magwa Crescent West, Waterfall
City Midrand, Gauteng
held
Act, 2013
47 CIPLA Algérie NA Subsidiary 40.00 2(87)
18, Rue de Zone Industrielle,
Route De La Gare, Haouche
Mahieddine, Reghala, Algeria
48 Anmaraté (Pty) Limited NA Subsidiary 100.00 2(87)
6th Floor,George Medi-Clinic
Building, 2 Gloucester Avenue,
George, Western Cape 6529***
49 Cipla Technologies LLC, USA NA Subsidiary 100.00 2(87)
11526, Sorrento valley road, Suit A,
San Digo, California – 92121
Associate
50 Stempeutics Research Pvt. U73100KA2006PTC038256 Associate 48.99 2(6)
Ltd. 3rd Floor, #143, 212-
215,EPIP Industrial Area
Hoodi
Village,K.R.Puram, Hobli Bengaluru
Bangalore - 560 066
*Address changed to Merkez Mah. Prf. Dr Nurettin Mazhar Öktel Sok. Lale Palas Apt. No: 10/15 Şişli – Istanbul w.e.f. 1 st June, 2018.
**Effective stake of Cipla Limited in Cipla Quality Chemical Industries Limited, Uganda is 62.30%.
***Address changed to Parc du capp, Building 9, Mispel street, Bell ville 7530 w.e.f. 21 st June, 2018.
IV. Share Holding Pattern
(Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of No. of Shares held at the beginning of the No. of Shares held at the end of the % Change
Shareholders year (As on 1st April, 2017) year (As on 31st March, during
2018)
Demat Physical Total % of Demat Physical Total % of the year
Total Total
Shares Shares
A. Promoters
1) Indian
a) Individual / HUF 111781000 - 111781000 13.89 111781000 - 111781000 13.88 (0.01)
b) Central Govt. - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. 6022409 - 6022409 0.75 6022409 - 6022409 0.75 -
e) Banks / FI - - - - - - - - -
f) Any other - - - - - - - - -
Sub-total (A) (1) 117803409 - 117803409 14.64 117803409 - 117803409 14.63 (0.01)
2) Foreign -
a) NRIs – Individuals 177682187 - 177682187 22.09 177682187 - 177682187 22.07 (0.02)
b) Other – Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any other - - - - - - - - -
Sub-total (A) (2) 177682187 - 177682187 22.09 177682187 - 177682187 22.07 (0.02)
Total shareholding
of Promoter
(A) = (A)(1) + (A) (2) 295485596 - 295485596 36.73 295485596 - 295485596 36.70 (0.03)
B. Public
Shareholding
1) Institutions
a) Mutual Funds / UTI 74524183 - 74524183 9.26 80006755 - 80006755 9.94 0.68
b) Banks / FI 2680710 7225 2687935 0.33 2179218 4100 2183318 0.27 (0.06)
c) Central Govt. - - - - - - - - -
d) State Govt(s) - - - - - - - - -
e) Venture Capital
Funds - - - - - - - - -
f) Insurance
Companies 47725595 - 47725595 5.93 28099837 - 28099837 3.49 (2.44)
g) Foreign
Institutional Investors 17112464 - 17112464 2.13 2438302 - 2438302 0.30 (1.83)
h) Foreign Venture
Capital Funds - - - - - - - - -
i) Others (specify)
•Foreign Portfolio
Investors 142172115 - 142172115 17.67 189529677 - 189529677 23.54 5.87
• Alternate
Investment Funds - - - - 308639 - 308639 0.04 0.04
Sub-total (B)(1) 284215067 7225 284222292 35.33 302562428 4100 302566528 37.58 2.25
2) Non-Institutions
a) Bodies Corp.
i) Indian 29342718 246812 29589530 3.68 23681991 244062 23926053 2.97 (0.71)
ii) Overseas 414191 - 414191 0.05 32525 - 32525 0.00 (0.05)
Category of No. of Shares held at the beginning of the No. of Shares held at the end of the % Change
Shareholders year (As on 1st April, 2017) year (As on 31st March, during
2018)
Demat Physical Total % of Demat Physical Total % of the year
Total Total
Shares Shares
b) Individuals
i) Individual
shareholders holding
nominal share
capital upto H 1 lakh 52780745 3903071 56683816 7.04 48153224 2901889 51055113 6.34 (0.70)
ii) Individual
shareholders holding
nominal share
capital in excess of
H 1 lakh 57299789 30469724 87769513 10.92 60367781 21598799 81966580 10.18 (0.74)
c) Others (specify)
i) Qualified Foreign
Investor - - - - - - - - -
ii) Trusts 4170579 - 4170579 0.52 5471194 - 5471194 0.68 0.16
iii) Non Resident
Indians / Foreign
Nationals 27991076 397575 28388651 3.53 27763891 397575 28161466 3.50 (0.03)
iv) Clearing Members 1651285 - 1651285 0.21 1609875 - 1609875 0.20 (0.01)
v) Overseas
Corporate Bodies 375 - 375 0.00 375 - 375 0.00 -
vi) NBFCs Registered
with RBI 56901 - 56901 0.01 54234 - 54234 0.01 -
vii) Investor
Education and
Protection Fund
Authority Ministry of
Corporate Affairs - - - - 3793129 - 3793129 0.47 0.47
Sub-total (B) (2) 173707659 35017182 208724841 25.94 170928219 25142325 196070544 24.35 (1.59)
Total Public
Shareholding
(B)=(B)(1) + (B) (2) 457922726 35024407 492947133 61.27 473490647 25146425 498637072 61.93 0.66
C. Shares held by
Custodian for GDRs
& ADRs 16077345 - 16077345 2.00 10996496 - 10996496 1.37 (0.63)
Grand Total (A+B+C) 769485667 35024407 804510074 100.00 779972739 25146425 805119164 100.00 -
ii) Shareholding of Promoter and Promoter Group
Sr.
No. Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the % change in
year year (As on 31 st March, shareholding
(As on 1st April, 2017) 2018)
No. of Shares % of total % of No. of % of total % of Shares during the
Shares Shares Shares Shares Pledged / year
of the Pledged / of the encumbered
Company encumbered Company to total
to total shares
shares
1) Dr Y. K. Hamied 166742687 20.73 - 166742687 20.71 - (0.02)*
2) M. K. Hamied 39690000 4.93 - 31640000 3.93 - (1.00)
3) Farida Hamied 0 0 - 0 0 - -
4) Sophie Ahmed 45982000 5.72 - 45982000 5.71 - (0.01)*
5) Shirin Hamied 6363000 0.79 - 6363000 0.79 - (0.00)*
6) Kamil Hamied 10939500 1.36 - 10939500 1.36 - (0.00)*
7) Samina Vaziralli 9859500 1.23 - 17909500 2.22 - 0.99
8) Rumana Hamied 9886500 1.23 - 9886500 1.23 - (0.00)*
9) MN Rajkumar Garments LLP 2601852 0.32 - 2601852 0.32 - (0.00)*
10) Shree Riddhi Chemicals LLP 2434970 0.30 - 2434970 0.30 - (0.00)*
11) Alps Remedies Pvt. Ltd. 492985 0.06 - 492985 0.06 - (0.00)*
12) Hamsons Laboratories LLP 492602 0.06 - 492602 0.06 - (0.00)*
13) Neo Research Labs Pvt. Ltd. 0 0 - 0 0 - -
Total 295485596 36.73 - 295485596 36.70 (0.03)*
* The change in percentage of shareholding is due to increase in the overall paid-up share capital of the Company.
iii) Change in Promoter and Promoter Group’s Shareholding

Sr. Name Shareholding Date Increase / Reason Cumulative
No. (Decrease) Shareholding during
the year (1st April,
2017 to 31st March,
2018)
No. of shares at % of total No. of % of total
the beginning shares shares shares
(1st April, 2017) / of the of the
end of the year Company Company
(31st March, 2018)
1) M. K. 39690000 4.93 01/04/2017 Inter-se 39690000 4.93
Hamied 07/06/2017 (8050000) transfer 31640000 3.93
31640000 3.93 31/03/2018 between 31640000 3.93
2) Samina 9859500 1.23 01/04/2017 immediate 9859500 1.23
Vaziralli 07/06/2017 8050000 relatives 17909500 2.22
by way of
17909500 2.22 31/03/2018 gift 17909500 2.22
iv) Shareholding Pattern of top ten Shareholders
(other than Directors, Promoters and Holders of GDRs and ADRs)

Sr. Name of the Shareholder Shareholding Cumulative Shareholding
No. during the Year
No. of % of total No. of % of total
Shares shares of the Shares shares of the
Company Company
1 ICICI Prudential Mutual Fund^
At the beginning of the year 41190092 5.12 41190092 5.12
Bought during the year 9127922 1.13 50318014 6.25
Sold during the year 19168774 2.38 31149240 3.87
At the end of the year 31149240 3.87 31149240 3.87
2 Life Insurance Corporation of India^
Bought during the year - - 45325137 5.63
3 HDFC Mutual Fund^
4 First State Investments ICVC-Stewart
Investors Asia Pacific Leaders Fund
Sold during the year - - 22132075 2.75
5 Government Pension Fund Global
6 First State Investments ICVC- Stewart
Investors
Global Emerging Markets Leaders Fund
Sold during the year - - 11193580 1.39
7 Reliance Capital Trustee Co. Ltd.^
8 SBI Mutual Fund^*
Sr. Name of the Shareholder Shareholding Cumulative Shareholding
No. during the Year
Shares shares of the Shares shares of the
Company Company
9 Vanguard Emerging Markets Stock Index
Fund, A Series of Vanguard
International Equity Index Fund
10 UTI Mutual Fund^*
11 HDFC Standard Life Insurance Company
Limited ^#
12 ICICI Prudential Life Insurance Company
Limited ^#
^ Shareholding is consolidated based on PAN irrespective of the schemes / sub-accounts.
# Ceased to be in the list of Top 10 shareholders as on 31st March, 2018. The same is reflected above since the shareholder was one of
the Top 10 shareholders as on 1st April, 2017.
* Not in the list of Top 10 shareholders as on 1st April, 2017. The same has been reflected above since the shareholder was one of the Top 10
shareholders as on 31st March, 2018.
Note: The above information is based on the weekly beneficiary position received from the depositories.
v) Shareholding of Directors and Key Managerial Personnel
Sr. Name Shareholding Date Increase / Reason Cumulative
No. (Decrease) Shareholding during
the year (1st April,
2017 to 31st March,
2018)
shares at the shares shares shares
beginning of the of the
(1st April, Company Company
2017) / end of
the year (31st
March, 2018)
1) Dr Y. K. Hamied 166742687 20.73 01/04/2017 - - 166742687 20.73
166742687 20.71* 31/03/2018 - - 166742687 20.71*
2) Mr M. K. 39690000 4.93 01/04/2017 - - 39690000 4.93
Hamied Inter-se
transfer
between
immediate
relatives
by way of
- - 07/06/2017 (8050000) gift 31640000 3.93
31640000 3.93 31/03/2018 - - 31640000 3.93
3) Ms Samina 9859500 1.23 01/04/2017 - - 9859500 1.23
Vaziralli Inter-se
transfer
between
immediate
relatives
by way of
- - 07/06/2017 8050000 gift 17909500 2.22
17909500 2.22 31/03/2018 - - 17909500 2.22
4) Mr S. 38125 0.00 01/04/2017 - - 38125 0.00
Radhakrishnan# Allotment
pursuant
to ESOS
- - 16/02/2018 49000 2013-A 87125 0.01
87125 0.01 31/03/2018 - - 87125 0.01
5) Mr Umang 23761 0.00 01/04/2017 - - 23761 0.00
Vohra Allotment
pursuant
to ESOS
13/11/2017 113645 2013-A 137406 0.02
137406 0.02 31/03/2018 - - 137406 0.02
* the change in percentage of shareholding is due to increase in the overall paid-up share capital of the Company. There is no change
in the shareholding.
# holding 38125 equity shares as joint-holder.

V) Indebtedness
Indebtedness of the Company including interest outstanding/accrued but not due for payment:
H in Crore
Secured Loans Unsecured Deposits Total
excluding deposits Loans# Indebtedness
Indebtedness at the beginning of the
financial year
i) Principal Amount - 324.39 - 324.39
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 0.16 - 0.16
Total (i+ii+iii) - 324.55 - 324.55
Change in Indebtedness during the financial
year
• Addition - 1,018.26 - 1,018.26
• Reduction - (1,167.81) - (1,167.81)
Net Change - (149.55) - (149.55)
Indebtedness at the end of the financial
year
i) Principal Amount - 174.50 - 174.50
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 0.50 - 0.50
Total (i+ii+iii) - 175.00 - 175.00
#
The above unsecured loans includes interest free sales tax deferral loans.
VI. Remuneration of Directors and Key Managerial Personnel

i) Remuneration to Managing Director, Whole-time Directors and/or Manager
H in Crore
Sr. Particulars of Remuneration Name of MD/WTD/ Manager Total
No. Amount
Ms Samina Mr Umang Vohra Mr S.
Vaziralli (Managing Director Radhakrishnan
(Executive Vice- and Global Chief (Whole-time
Chairperson) Executive Officer) Director)*
Gross salary
1) a) Salary as per provisions contained in section 17(1) of 3.45 6.01 1.18 10.64
the Income-tax Act, 1961
b) Value of perquisites u/s 17(2) of the Income-tax Act, 0.02 0.00& 0.01 0.03
1961
c) Profits in lieu of salary u/s 17(3) of the Income-tax Act, - - - -
1961
2) Stock Option - 7.10$ 2.80$ 9.90
3) Sweat Equity - - - -
4) Commission as % of profit 2.00 - - 2.00
5) -Employer contribution to provident fund and other funds 0.22 0.24 0.09 0.55
-Variable Bonus - 5.50 - 5.50
Total (A) 5.69 18.85 4.08 28.62
Ceiling as per the Companies Act, 2013 (“the Act”) (being 10% of the net profit of the Company calculated as 191.83
per section 198 of the Act)
* Since Mr S. Radhakrishnan was the Whole-time Director of the Company for the period upto 11th November, 2017, the above remuneration is
for the period 1st April, 2017 to 11th November, 2017. He was re-designated as Non-Executive Director w.e.f. 12th November, 2017.
&
Since the value of perquisite is only H 28,800, the amount has been shown as H 0.00 crore.
$
Value of perquisites u/s 17(2) of the Income-tax Act, 1961 does not include perquisite value of stock options exercised during the year.
The same has been shown separately in point no. (2).
ii) Remuneration to other directors
H in Crore
Sr. Name of the Fee for attending board / Commission Others Total Amount
Director No. committee meeting
1) Independent Directors
Mr Ashok Sinha 0.07 0.40 - 0.47
Dr Peter Mugyenyi 0.03 0.40 - 0.43
Mr Adil Zainulbhai 0.04 0.32 - 0.36
Ms Punita Lal 0.06 0.34 - 0.40
Ms Naina Lal Kidwai 0.05 0.35 - 0.40
Ms Ireena Vittal 0.05 0.36 - 0.41
Mr Peter Lankau 0.04 0.40 - 0.44
Total (1) 0.34 2.57 - 2.91
2) Other Non-Executive Directors
Dr Y. K. Hamied 0.03 2.00 - 2.03
Mr M. K. Hamied 0.10 2.00 - 2.10
Mr S. Radhakrishnan (1) 0.05 2.00 - 2.05
Total (2) 0.18 6.00 - 6.18
Total (B) = (1+2) 0.52 8.57 - 9.09
Ceiling as per the Act (being 1% of the net profits of the Company calculated as per section 198 of the Act) 19.18
Total Managerial Remuneration (A+B) 37.71
Overall Ceiling as per the Act (being 11% of Net Profits of the Company calculated as per section 198 of the Act) 211.01
Notes:
(1)
Re-designated as Non-Executive Director w.e.f. 12th November, 2017.
iii) Remuneration to Key Managerial Personnel other than MD/Manager/WTD
H in Crore
Sr. Particulars of Remuneration Key Managerial Personnel Total
No. Amount
Mr Kedar Upadhye Mr Rajendra Chopra
(Global Chief (Company Secretary)
Financial Officer)
Gross salary
1) a) Salary as per provisions contained in section 17(1) of the Income-tax 1.60 1.25 2.85
Act, 1961
b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 0.00& 0.00&& 0.00
c) Profits in lieu of salary u/s 17(3) of the Income-tax Act, 1961 - - -
2) Stock Option - - -
3) Sweat Equity - - -
4) Commission - - -
5) Others (B)
-Employer contribution to provident fund and other funds 0.05 0.05 0.10
-Variable Bonus 0.86 0.38 1.24
Total (A+B) 2.51 1.68 4.19
&
&&
VII. Penalties / Punishment / Compounding of Offences (under the Companies Act, 2013):
None
On behalf of the Board,
Date: 22nd May, 2018 Y. K. Hamied

Place: Mumbai Chairman
Annexure VI
Secretarial Audit Report
For the financial year ended 31st March, 2018
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To, (iv)Foreign Exchange Management Act, 1999 and

The Members the Rules and Regulations made thereunder to
Cipla Limited the extent of Overseas Direct Investment;
Cipla House
Peninsula Business Park
Ganpatrao Kadam
Marg Lower Parel
Mumbai - 400013
We have conducted the Secretarial Audit of the

compliance of applicable statutory provisions and
the adherence to good corporate practices by Cipla
Limited having CIN No. L24239MH1935PLC002380
(hereinafter called ‘the Company’) for the audit
period covering the financial year ended on 31st
March, 2018 (the ‘audit period’). Secretarial Audit
was conducted in a manner that provided us a
reasonable basis for evaluating the corporate
conducts / statutory compliances and expressing
our opinion thereon.
Based on our verification of the Company’s books,

papers, minute books, forms and returns filed and
other records maintained by the Company and also
the information provided by the Company, its
officers, agents and authorized representatives
during the conduct of Secretarial Audit, we hereby
report that in our opinion, the Company has,
during the audit period complied with the statutory
provisions listed hereunder and also that the
Company has proper Board-processes and
compliance-mechanism in place to the extent, in the
manner and subject to the reporting made
hereinafter.
We have examined the books, papers, minute

books, forms and returns filed and other records
maintained by the Company for the financial year
ended on 31st March, 2018 according to the provisions
of:
(i) The Companies Act, 2013 (‘the Act’) and the

Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956

and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations

and Bye-laws framed thereunder;
(v) The following Regulations and Guidelines
prescribed under the Securities and Exchange
Board of India Act, 1992 (‘SEBI Act’):
(a) The Securities and Exchange Board of

India (Listing Obligations and Disclosure
Requirements) Regulations, 2015;
(b) The Securities and Exchange Board of India

(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
(c) The Securities and Exchange Board of India

(Prohibition of Insider Trading) Regulations,
2015;
(d) The Securities and Exchange Board of India

(Share Based Employee Benefits)
Regulations, 2014;
(e) The Securities and Exchange Board of India

(Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the
Companies Act and dealing with client.
We have also examined compliance with the

applicable clauses of the Secretarial Standards
issued by The Institute of Company Secretaries of
India related to board and general meetings.
During the period under review, the Company

has complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc.
mentioned above.
We have also examined, on test check basis, the

relevant documents and records maintained by the
Company according to the following laws
applicable specifically to the Company:
(i) Drugs and Cosmetics Act, 1940;
(ii) The Narcotic Drugs and Psychotropic

Substances Act, 1985;
(iii) Drugs (Prices Control) Order, 2013
Based on such examination and having regard to

the compliance system prevailing in the Company,
the Company has complied with the provisions of the
above laws during the audit period.
During the period under review, provisions of the
agenda items before the meeting and for
following Regulations were not applicable to the
meaningful participation at the meeting.
Company:
Decisions at the meetings of the Board of Directors
i. The Securities and Exchange Board of India
of the Company were carried through on the basis
(Issue of Capital and Disclosure Requirements)
of majority. There were no dissenting views by any
Regulations, 2009;
member of the Board of Directors during the year
ii. The Securities and Exchange Board of India under review.
(Issue and Listing of Debt Securities)
We further report that there are adequate systems
Regulations, 2008;
and processes in the Company commensurate with
iii. The Securities and Exchange Board of India the size and operations of the Company to monitor
(Delisting of Equity Shares) Regulations, 2009; and ensure compliance with applicable laws, rules,
regulations and guidelines.
iv. The Securities and Exchange Board of India
(Buyback of Securities) Regulation, 1998. We further report that during the audit period,
there was no specific event / action having a major
We further report that - bearing on the Company’s affairs in pursuance to the
laws, rules, regulation, guidelines etc. referred to
The Board of Directors of the Company is duly above.
constituted with proper balance of Executive
Directors, Non-Executive Directors and
Independent Directors. There were no changes in
the composition of the Board of Directors during For BNP & Associates
the audit period. Company Secretaries
[Firm Regn. No. P2014MH037400]
Adequate notice is given to all Directors to
schedule the Board meetings in compliance with
the provisions of Section 173(3) of the Companies
Act, 2013. Agenda and detailed notes on agenda
Avinash Bagul
were sent at least seven days in advance, and a
Date: 22 nd May, 2018 Partner
system exists for seeking and obtaining further
Place: Mumbai FCS 5578 / CP No.19862
information and clarifications on the
Note: This report is to be read with our letter of even date which is annexed as Appendix A and forms an integral part of this report
Appendix A to the Secretarial Audit Report for the financial year ended 31st March,
2018
To,
verification was done on test check basis to
The Members
ensure that correct facts are reflected in
Cipla Limited
secretarial and other records produced to us.
Our Secretarial Audit Report of even date is to be We believe that the processes and practices we
read along with this letter. followed, provides a reasonable basis for our
opinion for the purpose of issue of the
1. The compliance of provisions of all laws, rules, Secretarial Audit Report.
regulations, standards applicable to Cipla
Limited (the ‘Company’) is the responsibility of 4. We have not verified the correctness and
the management of the Company. Our appropriateness of financial records and books
examination was limited to the verification of of accounts of the Company.
records and procedures on test check basis for
5. Wherever required, we have obtained the
the purpose of issue of the Secretarial Audit
management representation about the
Report.
compliance of laws, rules and regulations and
2. Maintenance of secretarial and other records major events during the audit period.
of applicable laws is the responsibility of the
6. The Secretarial Audit Report is neither an
management of the Company. Our responsibility
assurance as to the future viability of the
is to issue Secretarial Audit Report, based on the
Company nor of the efficacy or effectiveness with
audit of the relevant records maintained and
which the management has conducted the
furnished to us by the Company, along with
affairs of the Company.
explanations where so required.
3. We have followed the audit practices and For BNP & Associates
processes as were appropriate to obtain Company Secretaries
reasonable assurance about the correctness of [Firm Regn. No. P2014MH037400]
the contents of the secretarial and other legal
records, legal compliance mechanism and Avinash Bagul
corporate conduct. The Date: 22nd May, 2018 Partner
Place: Mumbai FCS 5578 / CP No.19862
Business Responsibility Report
Social responsibility and community care are at the options; promoting sustainable livelihoods; and
heart of Cipla. As the Company strongly believes in enhance the quality of life for the marginalised
the philosophy of ‘Caring for Life’, every action it population.
takes is driven towards realising this ideology.
Cipla with its global presence is spreading care This report illustrates Cipla’s efforts towards
across communities in its vicinity and beyond. The creating enduring value for all its stakeholders in a
Company intertwines care for the environment, responsible manner. The Business Responsibility
social responsibilities (health, education skill Report (BRR) covers Cipla’s India operations and is
advancement and disaster response) and aligned with National Voluntary Guidelines (NVGs)
governance aspects with its core philosophy of on Social, Environmental and Economic
Caring for Life. Responsibilities of Business released by Ministry of
Corporate Affairs, and is in accordance with clause
As a responsible corporate citizen, Cipla is focused (f) of sub regulation (2) of regulation 34 of
on reaching more people with affordable healthcare Securities and Exchange Board of India’s (SEBI)
Listing Regulations.
Cipla’s business performance and impacts are disclosed based on the nine principles as
mentioned in NVGs
PRINCIPLE PRINCIPLE PRINCIPLE

1 2 3
Product Life Cycle Sustainability Employee Well-Being
Ethics Transparency &
Accountability

4 5 6
Stakeholder Engagement Human Rights Environment

7 8 9
Policy Advocacy Inclusive Growth and Equitable Development Customer Value Creation
Section A: General Information about The Company

Corporate Identity Number (CIN) of the Company:
List three key products/services that the Company
L24239MH1935PLC002380
manufactures/provides (as in balance sheet): Foracort,
Company’s name: Cipla Limited Asthalin and Seroflo.
Total number of locations, where business activity
Registered address: Cipla House, Peninsula Business
is undertaken by the Company: Cipla has presence
Park, Ganpatrao Kadam Marg, Lower Parel,
in over 80 countries, globally.
Mumbai - 400 013
1. Number of international locations: South
Website: www.cipla.com Africa, USA, Uganda, Yemen, Europe, Sri Lanka
and Austrailia.
E-mail id: cosecretary@cipla.com
2. Number of national locations: Cipla has over
Financial year reported: 1st April, 2017 to 31st March, 44 state-of-the-art manufacturing facilities for
2018 API and formulations, across the states of
Sector(s) that the Company is engaged in: The Maharashtra, Goa, Madhya Pradesh, Karnataka,
Company is engaged in business of pharmaceuticals Himachal Pradesh and Sikkim.
under Group 210 and Class 2100 as per the Markets served by the Company –
National Industrial Classification 2008 (NIC) by the local/state/national/ international: The major
Central Statistical Organisation, Ministry of markets that Cipla serves are India, South Africa,
Statistics and Programme Implementation. USA, Uganda, Yemen, Europe, Sri Lanka and
Austrailia.
Section B: Financial Details of The Company
Sr. Particulars Details as on 31st March 2018 (H)

No.
1. Paid up capital H 161.02 crore
2. Total turnover (Revenue from operation) H 11,004.44 crore
3. Total profit after tax H 1,468.52 crore
4. Total spending on corporate social responsibility (CSR) by the Cipla spent an amount of H 32.20 crore on CSR through
Company Cipla Foundation
5. List of activities in which expenditure in 4 above has been Health, Education and Skilling
incurred
Section C: Other Details

Section D: BR Information
As on 31st March, 2018, the Company had 7 Indian
1. Details of Director/Directors responsible for
and 42 overseas subsidiary companies. Almost all
BR
the subsidiaries of Cipla are aligned with the
Company’s BR Initiatives. The Company encourage a) Details of the Director responsible for
its other stakeholders i.e. suppliers, distributors implementation of the BR policy:
and other stakeholders in the value chain to
participate in its BR initiatives, however it does not DIN: 02296740
track the actual participation and therefore for Name: Mr Umang Vohra
reporting purposes the percentage of such entities Designation: Managing Director and Global Chief
who participate in BR initiatives is less than 30%. Executive Officer
b) Details of the BR Head:
DIN Number (if applicable): Not applicable

Name: Mr Rajendra Chopra
Designation: Company Secretary
Telephone No.: +91 22 2482 6951
Email-id: cosecretary@cipla.com
Business Responsibility Report 12

2.Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
Sr.
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No
1. Do you have a policy /policies for…. Yes
2. Has the policy being formulated in Yes
consultation
with the relevant stakeholders?
3. Does the policy conform to any national / Cipla’s Corporate Responsibility Policy is based on the
international standards? If yes, specify? (50 National Voluntary Guidelines on Social,
words) Environmental and Economical Responsibilities of
Business as issued by Ministry of Corporate Affairs,
Government of India, in July 2011. Cipla’s Environment
Policy is as per the requirements
of ISO 14001, Environment Management System.
4. Has the policy been approved by the Board?
If yes, has it been signed by MD/ owner/ CEO/ Yes
appropriate Board Director
5. Does the Company have a specified committee
of the Board/ Director/Official to oversee the Yes
implementation of the policy?
6. Indicate the link for the policy to be viewed online? http://www.Cipla.com/en/csr/overview.html
7. Has the policy been formally communicated to The policy has been communicated to employees through
all relevant internal and external the Intranet and external stakeholders through the
stakeholders?
Company’s website (www.Cipla.com)
8. Does the Company have in-house structure Yes
to
implement the policy/ policies?
9. Does the Company have a grievance redress
mechanism related to the policy/policies to address Yes
stakeholders’ grievances related to the policy/policies?
10. Has the Company carried out independent audit/
evaluation of the working of this policy by an The policies are evaluated internally
internal or external agency?
Section E: Principle-Wise Performance PRINCIPLE

PRINCIPLE
2
1 Product Life Cycle Sustainability
Ethics Transparency & Accountability management? If so, provide details thereof, in about 50
words or so.
Question 1:
Reference point Page 60 of Human Capital
Does the policy relating to ethics, bribery and
corruption cover only the Company? Yes/ No. Does it
extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
Reference point Page 145, 153 of Corporate Governance

Report
Question 2:
How many stakeholder complaints have been
received in the past financial year and what
percentage was satisfactorily resolved by the
Question 1:
List up to 3 of your products or services whose

design has incorporated social or
environmental concerns, risks and/or
opportunities
Reference point Page 46 of Manufacturing Capital
Question 2:
For each such product, provide the following

details in respect of resource use (energy,
water, raw material etc.) per unit of
product(optional):
(a) Reduction during sourcing/production/

distribution achieved since the previous year
throughout the value chain?
(b) Reduction during usage by consumers (energy,
water) has been achieved since the previous PRINCIPLE 3
year? Employee Well-Being
Cipla has a multi-product, multi-facility production system Question 1:
and hence, it is not possible to determine product-wise
resource consumption. Variations in resource consumption Please indicate the Total number of employees.
patterns have been observed in manufacturing units based
on product mix, batch size and time cycle, among others. Reference point Page 55 of Human Capital
Further, as consumption of resource per unit depends on the
product mix, it is difficult to set specific standards to Question 2:
ascertain reduction achieved at product level
Please indicate the Total number of employees hired
Question 3: on
temporary/contractual/casual basis. Reference
Does the Company have procedures in place for
sustainable sourcing (including transportation)? point Page 55 of Human Capital Question 3:
(a) If yes, what percentage of your inputs was Please indicate the Number of permanent women
sourced sustainably? Also, provide details employees.
thereof, in about 50 words or so.
Reference point Page 65 of Social and Relationship Capital
Question 4:
Cipla has a well-defined and documented procedure for
vendor approval. The Company procures all raw materials Please indicate the Number of permanent
only from approved domestic and overseas vendors. Cipla’s employees with disabilities
procurement team along with its Vendor Quality
Management Team conduct vendor audits. The audits serve Reference point Page 55 of Human Capital
to provide relevant quality checks; and statutory documents
Question 5:
are arranged and recorded for the vendor approval
procedure. Do you have an employee association that is
Question 4: recognized by management?

Has the Company taken any steps to procure goods
and services from local & small producers, including Question 6:
communities surrounding their place of work?
What percentage of your permanent employees is
(a) If yes, what steps have been taken to improve members of this recognized employee association?
their capacity and capability of local and small
vendors? Reference point Page 60 of Human Capital
Reference point Page 65 of Social and Relationship capital Question 7:

Question 5: Please indicate the Number of complaints relating
to child labour, forced labour, involuntary labour,
Does the Company have a mechanism to recycle
sexual harassment in the last financial year and
products and waste? If yes what is the percentage
pending, as on the end of the financial year.
of recycling of products and waste (separately as
<5 per cent, 5-10 per cent, >10 per cent). Also, Reference point Page 60 of Human Capital
provide details thereof, in about 50 words or so.
Question 8:
Reference point Page 77 of Natural Capital
What percentage of your under mentioned
employees were given safety & skill up-gradation
training in the last year?
Reference point Page 55, 59 of Human Capital

PRINCIPLE
4
Stakeholder Engagement
PRINCIPLE
6
Environment
Question 1: Question 1:
Has the Company mapped its internal and external Does the policy related to Principle 6 cover only the
stakeholders? Yes/No Company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others.
Reference point Page 35 of Stakeholder Engagement
Question 2:
Cipla’s EHS Policy document applies to all operations of
Out of the above, has the Company identified the Cipla Limited, globally. Group companies, subsidiaries and
disadvantaged, vulnerable & marginalized stakeholders? joint ventures may either directly adopt it or develop their
own policies aligned to the policy
Question 2:
Question 3:
Does the Company have strategies/ initiatives to
Are there any special initiatives taken by the
address global environmental issues such as
Company to engage with the disadvantaged,
climate change, global warming, etc? Y/N. If yes,
vulnerable and marginalized stakeholders? If so,
please give hyperlink for webpage etc.
provide details thereof, in about 50 words or so.
Reference point Page 72, 74 of Natural Capital
Question 3:
PRINCIPLE Does the Company identify and assess potential
5 environmental risks? Y/N
Human Rights
Question 1:
Question 4:
Does the policy of the Company on human rights
cover only the Company or extend to the Does the Company have any project related to
Group/Joint Clean Development Mechanism? If so, provide details
Ventures/Suppliers/Contractors/NGOs/Others? thereof, in about 50 words or so. Also, if Yes,
whether any environmental compliance report is
Reference point Page 60 of Human Capital Page
filed?
153 of Corporate Governance Report
Cipla currently does not undertake any project in line with
Question 2:
the Clean Development Mechanism
How many stakeholder complaints have been
Question 5:
received in the past financial year and what
percent was satisfactorily resolved by the Has the Company undertaken any other initiatives on
management? – clean technology, energy efficiency, renewable
energy, etc? Y/N. If yes, please give hyperlink for
Reference point Page 60 of Human Capital web page etc.
Question 6:
Are the Emissions/Waste generated by the
Company within the permissible limits given by
CPCB/SPCB for the financial year being reported?
Question 7:
Question 4:
Number of show cause/ legal notices received from
What is your Company’s direct contribution to
CPCB/SPCB which are pending (i.e. not resolved to
community development projects? Amount in H and
satisfaction) as on end of Financial Year.
the details of the projects undertaken.
PRINCIPLE Question 5:
7
Policy Advocacy Have you taken steps to ensure that this community
development initiative is successfully adopted by the
Question 1: community? Please explain in 50 words, or so.
Is your Company a member of any trade and Reference point Page 66 of Social and Relationship Capital
chamber or association? Name of them

PRINCIPLE
Question 2:
9
Customer Value Creation
Have you advocated/lobbied through above Question 1:
associations for the advancement or improvement of
public good? Yes/No; if yes specify the broad What percentage of customer complaints/consumer
areas ( drop box: Governance and Administration, cases are pending as on the end of financial year?
Economic Reforms, Inclusive Development Policies,
Energy security, Water, Food Security, Sustainable Reference point Page 65 of Social and Relationship Capital
Business Principles, Others) Question 2:
Does the Company display product information on
PRINCIPLE the product label, over and above what is mandated
8 as per local laws? Yes/No/N.A./Remarks (additional
Inclusive Growth and Equitable Development information)
Question 1:
Does the Company have specified programmes/
Question 3:
initiatives/projects in pursuit of the policy related to
Principle 8? If yes details thereof. Is there any case filed by any stakeholder against
the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
Question 2: behaviour during the last five years and pending as
on end of financial year? If so, provide details
Are the programmes/projects undertaken through in- thereof, in about 50 words or so.
house team/own foundation/external NGO/government
structures/any other organization? Reference point Page 65 of Social and Relationship Capital
Reference point Page 66 of Social and Relationship Capital Question 4:
Question 3: Did your Company carry out any consumer survey/

consumer satisfaction trends?
Have you done any impact assessment of your
initiative? Reference point Page 63 of Social and Relationship Capital

Report on Corporate Governance
and transparency, we consider ourselves accountable to
Cipla’s Philosophy on Corporate the entire universe of stakeholders including our
Governance patients, employees,
The corporate governance philosophy at Cipla

stems from the set of principles and framework
embedded in its values.
Our legacy of deep commitment to compassion

and care for patients resonates throughout the
organisation. Our vision of providing high quality
life-saving drugs at affordable prices since our
inception, has evolved into our endearing purpose,
‘Caring for Life’. This purpose ultimately guides our
organisational decisions and anchors our every
action.
Creating Value
At Cipla we aim to abide by the highest standards

of good governance and ethical behaviour across
all levels within the organisation with a zero-
tolerance policy towards any deviation from these
standards. Our ethical framework focuses on long-
term shareholder value creation through
responsible decision making. Cipla’s corporate
governance framework is founded on the following
pillars:
Transparency
For us, transparency is key to healthy self-

sustaining growth and promotes self-enforcing
checks and balances. It also fosters deep and long
standing trust among our stakeholders. We strive to
demonstrate the highest levels of transparency, over
and above statutory requirements, through accurate
and prompt disclosures.
Fairness
We practice fair play and integrity, in our

transactions with all stakeholders, both within and
outside the organisation. We conduct ourselves in the
most equitable manner.
Accountability
For us, accountability is about holding ourselves

firmly responsible for what we believe in and for
delivering what we have promised. We ensure this
by promoting a mind-set of end-to-end ownership
throughout the organisation. By means of openness
a multi- tiered governance structure with defined
shareholders, vendors, government agencies, roles and responsibilities of every constituent of
society, medical community, customers and the system.
business partners, and supply chain
participants.
Competent leadership and management
We believe that dynamic, diverse and

experienced board with focus on excellence
plays a pivotal role in Cipla’s corporate
governance aspirations. In view of this, we
endeavour to maintain board composition that
brings healthy balance of skills, experience,
independence, assurance, growth mind-set and
deep knowledge of the sector.
Empowerment
The empowerment of leaders and employees is

an important step in enabling high
performance and developing leadership
capability within the Company. Our leadership
essentials focused on people, performance and
health are strongly embedded in our First
Principles. They define a common vocabulary
and approach for building leadership within the
Company.
Sustainability
At Cipla, sustainability is about effectively

managing the triple bottom line i.e. the
financial, social and environmental aspects,
whilst focusing on business continuity. We are
committed to pursuing our economic growth
while concurrently watching our ecological
footprint and increasing our positive social
impact.
Compliance and risk management
Full adherence to all regulatory and statutory

requirements in letter and spirit is a key guiding
principle at Cipla. Our global footprint and the
associated operating environment is
characterised by several risks which potentially
can impact our current and future earnings. The
risk management function targets to maintain a
live register of important risks along-with
implementing a plan to monitor and mitigate
them. We believe that effective compliance and
risk management activities will drive the
sustainability of corporate performance.
Governance Structure
With a strong governance philosophy, we have
Board of Directors: The shareholders appoint the taken at the Board level. As the MD & GCEO of the
Board of Directors (the Board) for strategic Company, his priorities include articulating Cipla’s
supervision and governance of the Company. The long-term strategy based on organic & inorganic
Board exercises independent judgement in initiatives, define innovation agenda
overseeing management performance on behalf of
the shareholders and other stakeholders, and
hence, plays a vital role in the oversight of the
Company’s management. The Board ensures
highest standards of Corporate Governance and
transparency in the Company’s functioning.
Board Committees: To effectively discharge its

obligations and comply with the statutory
requirements, the Board has constituted six board
committees. All the committees have a clearly laid
down charter and are responsible to discharge the
roles and responsibilities as per the charter. The
details about these committees have been
discussed in subsequent sections in the report.
Chairman: The Chairman acts as the leader of the

Board and presides over the meetings of the Board
and the shareholders. The primary responsibility is to
ensure that collectively Board is effective in its task
of setting and implementing the Company’s strategy.
He oversees the conduct of the Board and ensures
that it adheres to the statutory requirements and
good governance practices in letter and spirit. The
Chairman is supported by the Executive Vice-
Chairperson, who takes a lead role in managing
the Board meetings & interactions, determining
Board composition and facilitating effective
communication among directors.
Executive Vice-Chairperson: The Executive Vice-

Chairperson engages with the management to
drive and monitor key initiatives in line with Cipla’s
corporate strategy and business objectives. She
drives board engagement by setting agenda,
facilitating critical discussions and the cadence for
board meetings. She is also responsible for
promoting the depth of Board conversations while
nurturing a culture where the Board works
harmoniously for the long-term benefit of the
Company and all its stakeholders. She supports
the Chairman for matters pertaining to
governance, including Board composition, Board
meetings and Board effectiveness. She continues
to be the bridge between the management,
promoters and the Board.
Managing Director and Global Chief Executive

Officer (MD & GCEO): The day to day management
of the operations rest with the MD & GCEO. He is
responsible for the business performance, driving
growth and implementation of strategic decisions
Report on Corporate Governance

for the Company, balancing growth imperatives been embedded into the goal sheets of all MC
with the margin and return on capital thresholds, members and has also been cascaded to all the
executing Cipla’s roadmap to maintain momentum leaders and their teams who have significant
across the global markets in which it operates, amount of cross-functional overlap, to ensure that
augmenting the capabilities in operations and everyone is moving together in the same direction.
support functions, and building a strong talent
focused organisation ready to take on the
challenges. The MD & GCEO works under the
supervision of the Board of Directors and is vested
with the sufficient power of the management to
undertake day to day affairs.
Management Council (MC): The MD & GCEO is

supported by the Management Council to take
informed business decisions. Beside MD & GCEO,
who chairs the MC, Global Chief Financial Officer,
Global Chief People Officer, Global Head – Quality,
Global Head – Integrated Product Development and
Global Head – Operations are the other members
of the MC. The MC has been constituted to
integrate the top leadership, to provide strategic
direction leading to a stronger and healthier
organisation, to drive company-wide processes,
systems, policies, and to function as role models
for leadership development. The MC provides
cross-functional and cross-business perspectives on
organisational issues. The MC leads multiple
departments and business units across various
facets of the Company’s operations.
Operating Committees: We have various cross

functional committees to ensure robust delivery of
business objectives and maintaining growth
momentum within the defined risk management
framework. These committees include Portfolio
Selection Committee, Capex Committee, Ethics
Committee, Global Finance Committee, Operations
Committee and others. These committees are
headed by relevant Management Council members
and effectively execute on the assigned area.
Collectively, these committees facilitate the
operationalisation of strategic plan and governance
principles.
Shared Goals Process: When two or more

functions/ functional leaders share a goal, it is a
shared goal. In a step to change from the past, our
leaders have aligned on few shared goals with
collectively ownership, instead of focusing on our
individual functional goals. These shared goals
focus on both performance and long- term health
outcomes for the organisation. Shared Goals are
defined on the basis of Cipla’s FY22 Winning
Aspiration and the MD and GCEOs objectives. For
each of the shared goal, we have an aligned view
on the Key Performance Indicators (KPIs) and
related targets that we want to aspire for. This has

Board of Directors (including their ability to exercise sound judgement),
professional experience and functional expertise, and
Composition of the Board educational and professional background. The Nomination
and Remuneration Committee recommends the
We acknowledge the importance of diversity in the
appointment of a candidate to Board
Boardroom as a driver of effectiveness. For the
Board, diversity encompasses difference in
perspective, experience, education, background,
ethnicity, gender and other personal attributes.
Cipla’s Board represents an appropriate mix of

executive, non-executive and independent directors,
which is also compliant with the Companies Act,
2013 (Act), the Securities and Exchange Board of
Requirements), Regulations, 2015 (Listing
Regulations), and is in line with best practices of
Corporate Governance.
At present, the Board comprises of twelve Directors

of which two are executive, three including the
Chairman are non-executive, and seven are
independent directors. There are four women
directors, out of which three are Independent
Directors.
With eminent leaders from around the world

representing disciplines such as medicine, finance and
economy, business and general management and
corporate planning, the Company continues to set
the pace for the industry.
Statutory details of the Directors, including the

directorships held by them in other listed companies
and their committee memberships/chairmanships in
other public companies, is stated in Annexure A.
Board Membership Criteria and Selection Process
The responsibility for identifying and evaluating a

suitable candidate on board is delegated to the
Nomination and Remuneration Committee. While
selecting a candidate, the Nomination and
Remuneration Committee reviews and evaluates the
Board composition and diversity to ensure that the
Board and its committees have the appropriate mix
of skills, experience, independence and knowledge
to ensure their continued effectiveness.
To ensure transparent election process, the

guidance on eligibility criteria and attributes for
individual’s appointment on the Board, including the
executive and independent directors, has been
defined in the Nomination, Remuneration and Board
Diversity Policy of the Company enclosed herewith
as Exhibit A. Each candidate is, inter-alia, screened
based on background, knowledge, skills, abilities
only if he/she meets the defined criteria and has vast and varied experience in all functions of
attributes. The recommendation of Nomination the Company including production, technical
and Remuneration Committee along with a brief areas, quality management and general
profile of the candidate is then placed before the administration. He retired as the Executive Vice-
Board for its approval. Chairman of the Company on 31st March, 2014 and
has continued to be Vice-Chairman in Non-
Profile of Directors Executive role effective 1st April, 2014.
Dr Y. K. Hamied, Non-Executive Chairman
Dr Y. K. Hamied is the Non-Executive Chairman

of Cipla, and represents the second generation
of Cipla’s founding family. A world-renowned
scientist, Dr Hamied obtained his PhD in organic
chemistry in 1960 from the University of
Cambridge under the tutelage of the Nobel
laureate Lord Alexander Todd. He joined Cipla
in the same year as an R&D Officer. Dr Hamied
was appointed as Managing Director of Cipla in
1976 and became Chairman of Cipla in 1989.
He retired as Managing Director on 31st March,
2013 and has continued to be the Chairman in a
non-executive role since 1st April, 2013.
For close to 60 years, Dr Hamied has been an

insightful R&D leader, a courageous industry
captain, and an outspoken statesman of global
pharma. From affordable drugs in HIV to
enabling one of the world’s largest portfolio of
drugs and devices in inhalation therapy, his
pioneering work and immense contribution to
healthcare have been celebrated around the
world. For his distinguished service to the
pharmaceutical industry, in 2005, Dr Hamied
was awarded the Padma Bhushan by the
Government of India. In 2013, Dr Hamied was
named by NDTV as one of India’s 25 Greatest
Global Living Legends, and in 2014, the
University of Cambridge awarded him a D.Sc, the
highest honour that the University can bestow. In
2017, Columbia University’s Mailman School of
Public Health conferred the ‘Public Health Hero
Award’ on Dr Hamied, and in 2018, the India
Today publication named him one of ‘20 Global
Indians’ who have challenged convention and
created history. Dr Hamied has been the
recipient of several lifetime achievement
awards, he is an Honorary Fellow of the Royal
Society of Chemistry, and is a frequent
presence on high-level international panels on
healthcare.
Mr M. K. Hamied, Non-Executive Vice-Chairman
Mr M. K. Hamied is the Non-Executive Vice-

Chairman of Cipla, and represents the second
generation of Cipla’s founding family. He is a
science graduate from Bombay University. He
Ms Samina Vaziralli, Executive Vice-Chairperson for Cipla in North America, and revamped Cipla’s
operations in Europe as COO thus enabling an
Ms Samina Vaziralli is the Executive Vice- improvement in profitability. Recognised as an
Chairperson of Cipla, and represents the third action-oriented industry leader,
generation of the founding family of Cipla. An
alumna of the London School of Economics, she
has in the past worked in the UK and the US with
leading global firms such as Goldman Sachs before
joining the Cipla leadership team in 2011.
Ms Vaziralli joined Cipla as Executive Director and

Global Head – Strategy, M&A and Cipla New
Ventures. She has been instrumental in driving the
Company’s current transformation agenda. Ms
Vaziralli played a key role in successfully incubating
and shaping Cipla Health Limited, spearheaded
Cipla’s ambitious foray into the US market with
strategic acquisitions, and is committed to building
a top-class leadership pipeline for the Company as
it continues to spread its wings globally.
As Executive Vice-Chairperson of Cipla, Ms Vaziralli

focuses on board and governance issues, in
addition to furthering Cipla’s strategic priorities
through key global partnerships, corporate culture
and brand-building, hiring the right talent, and
public advocacy.
Today recognised as the promoter face of Cipla,

Ms Vaziralli has been feted for her diverse work
experience and business knowledge. In 2017,
Ms Vaziralli received the ‘Most Powerful Women in
Business’ award from Business Today. In 2018,
Forbes named Ms Vaziralli among the top 25
emergent women business leaders in Asia.
Mr Umang Vohra, Managing Director and Global Chief

Executive Officer
Mr Umang Vohra has been Managing Director and

Global Chief Executive Officer of Cipla since
September 2016. After gaining degrees in
engineering, marketing and finance, Mr Vohra
worked with Eicher Motors, PepsiCo and Dr
Reddy’s. Through his previous roles in India and
the US, he has built a distinguished career with
deep understanding and experience in various
aspects of the global pharmaceutical business such
as finance, generics, sales and marketing, supply
chain and operations, among others.
Having joined Cipla as its Global Chief Financial

Officer in 2015, Mr Vohra became Global Chief
Operating Officer in January 2016. As CFO, he
successfully integrated Cipla’s acquisitions in the US,
thus paving the way for greater avenues of growth
Mr Vohra is a firm believer in the power of agile Mr Zainulbhai has graduated in Mechanical
business models, disruptive technologies, data- Engineering from the Indian Institute of Technology.
driven analytics and a future-ready workforce with He also has an
a view to making a difference to the lives of
patients.
Mr S. Radhakrishnan, Non-Executive Director
Mr S. Radhakrishnan is a qualified Chartered

Accountant. He possesses rich experience in
financial, commercial, legal and allied areas. He
has been with Cipla for over 33 years and has
played pivotal role in the overall journey and
growth of the organisation. Mr S. Radhakrishnan
relinquished the position of Whole- time Director on
11th November, 2017 and now continues as the Non-
Executive Director of the Company with effect
from 12th November, 2017.
Mr Ashok Sinha, Independent Director
Mr Ashok Sinha is an Independent Non-Executive

Director of Cipla. He is an Electrical Engineer from
Indian Institute of Technology (IIT), Kanpur and
Post Graduate Diploma in Management from Indian
Institute of Management (IIM), Bangalore with
specialisation in Finance. He is recipient of
Distinguished Alumnus Award from IIT Kanpur as
well as from IIM Bangalore.
Mr Ashok Sinha has worked for 33 years in Bharat

Petroleum Corporation Limited (BPCL), where he
served on the Board of BPCL for 15 years – first as
Director (Finance) for 10 years and then as its
Chairman and Managing Director for 5 years.
Dr Peter Mugyenyi, Independent Director
Dr Peter Mugyenyi is an Independent Non-

Executive Director of Cipla. Dr Mugyenyi is the
former Director and Co-Founder of the Joint Clinical
Research Centre (JCRC) based in Kampala.
Dr Mugyenyi is highly regarded globally for his

courage and strength in helping Africa to battle its
mounting AIDS epidemic. A pediatrician by training,
Dr Peter Mugyenyi is recognised as one of the
worlds’ foremost specialists and researchers in the
field of HIV/AIDS.
Mr Adil Zainulbhai, Independent Director
Mr Adil Zainulbhai is an Independent Non-

Executive Director and Lead Independent Director
of Cipla. He is the Chairman of the Quality Council
of India (QCI). He is also on the Board of Reliance
Industries, Larsen & Toubro and Chairman of NW18
& TV18. He is involved in many philanthropic causes
and is on the Board of Piramal Foundation.
M.B.A. from Harvard Business School. He retired Director of Cipla. Ms Vittal, a former partner with
as Chairman of McKinsey, India after 34 years at McKinsey & Company, is an MBA from Indian Institute
McKinsey, and the last 10 in India. Prior to
returning to India, he led the Washington office of
McKinsey and founded the Minneapolis office.
Mr Zainulbhai has co-edited the book,

‘Reimagining India’ which featured 60 authors
including prominent businessmen, academics,
economists, authors and journalists.
Ms Punita Lal, Independent Director
Ms Punita Lal is an Independent Non-Executive

Director of Cipla. She is a B.A. (Hons.) Economics
graduate from St. Stephen’s College, Delhi and an
MBA from Indian Institute of Management, Kolkata.
With over 25 years of experience in strategy,
marketing and leadership in the corporate world
across Asia, her experience spans multiple
disciplines, geographies and cultures.
As a senior business leader, she has many

accolades to her credit, including being chosen as
one of India’s top 20 Business Women by Business
Today in 2006 and being awarded Corporate Woman
of the Year in 2009 by the FICCI Women’s
Organisation. She is currently practising as an
independent Strategy and Marketing Consultant.
Ms Naina Lal Kidwai, Independent Director
Ms Naina Lal Kidwai is an Independent Non-

Executive Director of Cipla. An MBA from Harvard
Business School, she makes regular appearance on
listings by Fortune and others of international women
in business. A recipient of many awards and honours in
India, she was awarded the Padma Shri by the
Government of India for her contribution to Trade and
Industry. She has authored 3 books, “Survive Or Sink -
An Action Agenda for Sanitation, Water, Pollution and
Green Finance“, “Contemporary Banking in India”
and “30 Women in Power: Their Voices, Their Stories.”
She possesses rich experience in the areas of

banking and finance. She is one of the Government
of India’s representatives on the BRICs Business
Council and the INDO-ASEAN Business Council.
She is also on the Advisory Board of ICRIER, the
Rajasthan Chief Minister’s Advisory Council, the
investment advisory committee of the Army Group
Insurance Fund and on the Governing Board of
Lady Shriram College and Harvard Business School
South Asia Advisory Board.
Ms Ireena Vittal, Independent Director
Ms Ireena Vittal is an Independent Non-Executive

of Management, Kolkata. She has over two f. Fatal or serious accidents, dangerous
decades of experience in management consulting occurrences, material effluent or pollution
and is recognised as a thought leader for problems, if any;
consumer-facing companies in emerging
markets. She has also served government and g. Any material default in financial obligations to
public institutions to design and implement and by the Company or substantial non-
solutions core to India’s development, such as payment for services provided by the
inclusive urban development and sustainable Company;
rural growth.
Mr Peter Lankau, Independent Director
Mr Peter Lankau is an Independent Non-

Executive Director of Cipla. He has graduated
with Bachelors of Science in Biology from the
State University of New York at Albany, USA. Mr
Lankau has over 30 years of management
experience in developing and commercialising
pharmaceutical products with several public and
private pharma companies. He is currently a
principal of Lankau Consulting LLC.
Role of the Board of Directors
The Board of Directors is the apex body

constituted by shareholders and is vested with
the powers of governance, control, direction
and management of affairs of the Company.
The Board provides strategic direction and
guidance to the Company, and has been
steering the Company towards achieving its
business objectives. Driven on the principles of
ethics and accountability, the Board strives to
work in best interest of the Company and its
stakeholders.
The matters required to be placed before the Board,

inter-alia, include:
a. Annual operating plans, capital budgets

and updates therein;
b. Quarterly and annual consolidated and

standalone results and financial statements
of the Company;
c. Minutes of meetings of the Board and Board

Committees, resolutions passed by
circulation, and Board minutes of the unlisted
subsidiary companies;
d. The information on recruitment and

remuneration of senior officers just below
the level of Board of Directors, including
appointment or removal of Chief Financial
Officer and the Company Secretary;
e. Material important show cause, demand,

prosecution notices and penalty notices, if
any;
h. Any issue which involves possible public or and are independent of the management.
product liability claims of substantial nature, if
any; The Independent Directors are given a formal letter
of appointment containing the terms of
i. Human resource updates and strategies; appointment, roles, duties and code of conduct,
among other
j. Quarterly compliance certificates which includes
non- compliance, if any, of regulatory, statutory
nature or listing requirements and shareholders
service;
k. Appointment, remuneration and resignation of

Directors;
l. Formation/re-constitution of Committees;
m. Disclosures received from Directors;
n. Proposals requiring strategic guidance and

approval of the Board;
o. Related party transactions;
p. Regular business updates;
q. Update on Corporate Social Responsibility

activities;
r. Significant changes in accounting policies and

internal controls;
s. Takeover of a company or acquisition of a

controlling or substantial stake in another
company;
t. Report on action taken on previous Board

meeting decisions.
In addition to the above, the other matters placed

before the Board included updates on business
functions, revision in policies, report on performance
evaluation of board, committees and individual
directors, inter-corporate loans and investments and
annual agenda plan.
Independent Directors
All our Independent Directors of the Company meet

the baseline definition of Independent Directors under
the Act and the Listing Regulations. At the time of
appointment and thereafter at the beginning of each
financial year, the Independent Directors submit a
self-declaration, confirming their independence and
compliance with various eligibility criteria, among
other disclosures. All such declarations are placed
before the Board for information and noting. The
Board confirms that in its opinion and based on the
declarations received, the Independent Directors fulfil
the independence criteria under the Listing Regulations
items. The draft letter of appointment is available directors. During FY18 the Independent Director met
on the Company’s website, at four times i.e. on 24th May, 2017, 10th August, 2017, 6th
https://www.cipla.com/ November, 2017 and 6th February,
uploads/investor/1443000167_Letter-of-
Appointment- Independent-Directors.pdf
Lead Independent Director
As a part of our continuous efforts to enhance the

Corporate Governance practices and in lines with
the OECD Principles of Corporate Governance, the
Board of Directors at their meeting held on 11th
August, 2017, designated Mr Adil Zainulbhai as the
Lead Independent Director for an initial term of two
years with the authority to renew the appointment
for a further period of two years. The roles and
responsibilities of Lead Independent Director
includes the following:
a. To preside over all meetings of Independent

Directors.
b. To provide objective feedback of the

Independent Directors as a group to the Board
on various matters.
c. To liaise between the Promoters, Chairman /

Vice- Chairman, CEO and Independent
Directors on contentious matters for consensus
building.
d. To preside over meetings of the Board and

shareholders when the Chairman and Vice-
Chairman are not present, or where they are
an interested party.
e. To help the Board and the Nomination and

Remuneration Committee in identifying
suitable candidate for the position of director
and Board succession planning.
f. Advocacy with key external stakeholders.
g. To help the Company in further strengthening

the Board effectiveness and Governance
practices, including suggestions on agenda
items for Board / Committee meetings on
behalf of the independent directors.
h. To be a permanent invitee in all Board

Committee meetings.
i. To perform such other duties as may be

delegated by the Board from time to time.
Meeting of Independent Directors
Before every board meeting, the Independent

Directors meet without the presence of the
management and Non- Executive Non-Independent
2018. The Independent Directors met to inter alia Cipla and the pharmaceutical industry, in addition to
discuss matters arising out of board and board regular updates on key changes and developments in
Committee agendas, company performance and legal and regulatory matters. These sessions were
various other board-related matters, identify areas conducted by Cipla’s senior executives and external
where they need clarity or information from experts on the subject matters. These sessions provide
management and to review the performance of an insight besides offering the independent directors an
Independent Directors, the Chairman and the Board opportunity to interact with the senior leaders.
as a whole and assess the effectiveness and
promptness of the information flow inter se the Board
and the management. At the meeting, they also met
the statutory auditors to ensure auditors
independence, audit effectiveness, control
environments and their general feedback. The Lead
Independent Director briefed the Board on the
proceedings for further deliberations.
Familiarisation Programme for the Board

Members
We have a robust induction process for enabling

the newly appointed directors to familiarise
themselves with Cipla, its business, its functioning
etc. All directors undergo induction process at the
time of appointment to the Board. The new
directors are formally apprised of their roles and
responsibilities through a formal letter of
appointment. They are provided with a dossier
about Cipla, comprising of various documents
including Cipla’s group structure, introduction of
existing board members, Board Committees’
structure and their respective terms of reference,
Company’s charter documents and various policies of
the Company, among others. This dossier gives an
insight on Cipla’s present position as an organisation
while highlighting major events that form part of
Cipla’s journey. Interactive sessions with
Management Council members and senior
management are arranged to further familiarise
new directors with specific functions
/ business of the Company. The Company also
arranges factory visits for the directors for better
understanding of Cipla’s business. Details of the
familiarisation programme for the Independent
Directors are put up on the Company’s website i.e.
https://www.cipla.com/ en/investor-
information/investor-resource.html.
In addition, the directors are regularly provided

update about the organisation, its products,
business and ongoing events. At the Board /
Committee meetings and the strategy meeting
held during the year, directors were given
comprehensive updates on various business
functions, geographies and products pertinent to
Board Evaluation In order to ensure confidentiality, the board
evaluation was undertaken by way of a
The Board is committed to regular and questionnaire through an online tool by an
transparent performance evaluation of its own independent agency. All the Directors participated in
effectiveness and that of its Committees and the evaluation process. The responses received from
individual Directors. Every year the Board the Board members were compiled and the
conducts evaluation of its own performance, consolidated report was submitted by the agency.
the performance of its Committees, and the
individual Directors. The performance
evaluation also confirms the compliance
requirements stipulated under the Act and the
Listing Regulations.
Board Evaluation Criteria
During previous year, the Nomination and

Remuneration Committee (NRC), approved the
criteria for performance evaluation of board,
board Committees and individual Directors
including the Chairman, the Executive Vice-
Chairperson and the MD & GCEO and
authorised the Company Secretary and Global
Chief People Officer, to facilitate the evaluation
process under the supervision of the
Chairperson–NRC. The criteria for the
performance evaluation included the following:
The Board – Structure, composition and

quality of Board, Board meeting schedule,
agenda and collaterals, board meeting
practices and overall board effectiveness.
Board Committees – Composition, charter,

information flow and effectiveness of the
meetings, recommendation to the Board, etc.
Individual Directors – Attendance at the

meetings, preparedness for discussion,
quality of contribution, engagement with
fellow board members, KMPs and senior
management, etc.
The Chairman - The Chairman was

additionally evaluated on few parameters
such as leadership provided to the Board,
promoting effective participation of all
board members in the decision making
process, etc.
The Independent Directors - The

Independent Directors were additionally
evaluated on few parameters such as
independence from the Company, exercising
independent judgement in decision making,
contributing strongly to the objectivity of the
Board’s deliberations basis external
expertise, etc.
Additionally, in order to take qualitative inputs, the and also reviewed by the Board. At every meeting,
Chairperson-NRC also interacted individually with the NRC reviews with the MD and GCEO and the
Board members and select members of senior Global Chief People Officer succession planning for
management and sought their feedback and inputs on the Board as well as the top 25 positions including
board effectiveness, governance and requirement of its Management Council members to ensure that
the Board. the Company has a pipeline of professionals at
senior management and
The evaluation reports were discussed at the
Independent Directors’ meeting, respective Committee
meetings and Board meeting held in February 2018.
The suggestions / inputs from the entire process and
the outcome of the interaction of the Chairperson-
NRC were deliberated upon by the Board to
augment its effectiveness and optimise individual
strengths of the Directors.
The Board was largely satisfied with the

effectiveness and governance standards as well as
the performance of the Board, board committees,
and the individual Directors. Suggestions of the
board members to further strengthen the Board
effectiveness were noted and taken up for
implementation.
The suggestions from the previous board

evaluation, which included recommendations for
appointment of lead independent director, board
effectiveness and succession planning at senior
management level were implemented during the
year.
The Executive Vice-Chairperson was additionally

evaluated on few parameters such as leadership,
stakeholders management, etc.
Since the MD and GCEO is the Key Managerial

Personnel, he was additionally evaluated against the
set Key Performance Indicators (KPIs). The KPIs
were set at the beginning of the financial year,
which inter alia included both long term and short
term, financial and non-financial performance
parameters. The financial parameters included
targets on Revenue, EBITDA, PAT, etc., the non-
financial parameters covered areas such as
strategy and portfolio, talent and leadership
management, succession planning, operations and
quality etc. Progress on the KPI was regularly
reviewed by the Board and the NRC. The Board was
generally satisfied with the performance of the MD
& GCEO.
Succession Planning of the Board and Senior

Management
The succession planning process of the Board and

the senior management is managed by the NRC
Board levels to match its needs. The Board is ‘any other item’ with the permission of the
regularly updated on the progress. As a process, Chairman and consent of majority of board
the priority positions are identified, leadership members / Committee members present in the
competencies defined, talent identified and meeting.
developed, policies prepared, records maintained,
accountabilities clearly stated and measures used for
continuous improvement.
In the year 2016, as part of succession planning,

Ms Samina Vaziralli was elevated to the
designation of Executive Vice-Chairperson along
with the planned progression of Mr Umang Vohra
as MD and GCEO of the Company.
Cipla aims to make the succession planning

process as transparent as possible. This
transparency encourages clarity and integrity and
results in better retention of top performers.
Board Meetings & Procedure

The Board meets at regular intervals to discuss
and decide on Company / business policy and
strategy in addition to the statutory and other
matters. The Board and Committee meetings are
pre-scheduled and an annual calendar of the
meetings is circulated to the Directors well in
advance to facilitate planning of their schedule
and to ensure meaningful participation in the
meetings. However, in case of special and urgent
business need, the Board’s approval is taken by
passing resolutions by circulation, which is noted and
confirmed in the subsequent Board meeting. The
Board, the Audit Committee and the NRC are
facilitated with annual agenda plan in advance in
order to enable the members to focus on key
areas of organisational performance and designing
the future strategy. The annual agenda plans are
finalised with the inputs from the board members
and are approved by the Board.
The management team is invited to present the

performance on key areas such as the Company’s
major business segments and their operations,
subsidiary performance and key functions.
The Company Secretary finalises the agenda for

meetings in consultation with the Chairman / Vice-
Chairperson, the Lead Independent Director and
the MD & GCEO and the same is circulated to the
Board members / Committee members in
advance. In case of agenda for Committee
meetings, the Chairman of the respective
Committees is also consulted on finalisation of the
Agenda. In special and exceptional circumstances,
additional or supplementary item(s) are taken up as
The agenda of the Board and Committee meetings
strategy in view of the changes in external
are circulated electronically through a secured IT
environment. Accordingly, the Board members
system. The online platform also enables the board
specially met on 7th and 8th November, 2017 to
members to access the historical agendas, minutes,
discuss the business strategy of the Company. During
constitutional documents, committee charters, etc.
this meeting the Board, inter- alia, deliberated in
It enables the participants to make notes and
detail on strategy. Beside board members, the
exchange notes amongst each other under a
meeting was attended by the members of Management
secured environment.
Council. The business unit heads were invited for
Number of Board Meetings held respective agenda items. External experts were also
invited to provide update on the global
The Board met five times during FY18 i.e. on 25th May, pharmaceuticals industry, global economy,
2017, 11th August, 2017, 7th November, 2017, 7th information technology and artificial intelligence,
November, etc.
2017 to 8th November, 2017, and 7th February, 2018.
This included one strategy meeting. Attendance of the Directors
Board Meeting on strategy Information about the attendance of Directors at the

Board Meetings either in person or through video
The Board members understand the need to
conference during FY18 and at the last Annual General
constantly review, revisit, realign and further
Meeting (AGM) is stated in Annexure A.
develop its business
Remuneration to Directors
The details of remuneration to Directors during FY18 are given

below:
H in Crore
Directors Sitting Salary Commission Perquisites Allowances Variable Retiral Total
Fees(1) Bonus Benefits
and others
Dr Y. K. Hamied 0.03 - 2.00 - - - - 2.03

Mr M. K. Hamied 0.10 - 2.00 - - - - 2.10
Ms Samina Vaziralli - 1.88 2.00 0.02 1.57 - 0.22(2) 5.69
Mr Umang Vohra - 1.95 - 7.10(3) 4.06 5.50 0.24(2) 18.85
Mr S. Radhakrishnan(4) 0.05 0.74 2.00 2.81(3) 0.44 - 0.49 6.53
Mr Ashok Sinha 0.07 - 0.40 - - - - 0.47
Dr Peter Mugyenyi(5) 0.03 - 0.40 - - - - 0.43
Mr Adil Zainulbhai 0.04 - 0.32 - - - - 0.36
Ms Punita Lal 0.06 - 0.34 - - - - 0.40
Ms Naina Lal Kidwai 0.05 - 0.35 - - - - 0.40
Ms Ireena Vittal 0.05 - 0.36 - - - - 0.41
Mr Peter Lankau(5) 0.04 - 0.40 - - - - 0.44
(1)
The above figures are inclusive of fees paid for attendance at Committee meetings.
(2)
Exclusive of provision for leave encashment and contribution to the approved Group Gratuity Fund, which are actuarially determined
on an overall basis.
(3)
Includes perquisite value of stock options exercised during the year.
(4)
Mr S. Radhakrishnan completed his term as a whole-time director on 11th November, 2017 and w.e.f 12th November, 2017, he
continues as a Non-Executive Director of the Company. On the recommendation of the NRC, the Board approved payment of H 2
crore per annum to Mr S. Radhakrishnan towards commission for the following services as Non-Executive Director of the Company for
three years from FY18 onwards:
a) To serve as a member of various Board Committees and Management Committees as may be requested by the Board or the
management from time to time. Presently, Mr S. Radhakrishnan is a member of the following committees (i) Audit Committee
(ii) Corporate Social Responsibility Committee (iii) Stakeholders Relationship Committee (iv) Investment and Risk Management
Committee; and (v) Operations and Administrative Committee.
b) To represent Cipla and serve on the board and board committees of various Indian and overseas subsidiary companies and joint
ventures as may be nominated by the Company from time to time.
c) To engage with the management and provide insight on various day to day matters including historical aspects, including(i)
All legal matters including DPCO, FDA, SEZ etc. (ii) Various matters relating to Internal Controls and Internal Audit including
the internal audit scope and effectiveness (iii) Non-routine Corporate Law, Securities Law and taxation matters (iv) Domestic
as well as International restructuring, merger and acquisition (v) Various long-term and short-term fund-raising programme (vi)
Identification, evaluation and monitoring of various CSR Projects.
(5)
USD equivalent to H amount paid to the Directors.
Notes: pro-rata of his fixed salary in lieu of the notice.

The other terms and conditions for severance fee
The commission / variable bonus payable to are laid down in the employment agreement
the Directors is determined each year by the entered with him.
Board on the basis of the recommendation of
the NRC and is within the limits approved by
the shareholders.
The commission / variable bonus payable to

Executive Directors is determined keeping in
view of their performance on various financial
and non- financial parameters approved by the
Board.
Apart from sitting fees and commission, there

are no pecuniary payments made by the
Company to Non-Executive Directors during the
year.
The commission to Independent Directors is

based on the following criteria approved by the
Board. There has been no change in the criteria
since April 2015.
Annual Fixed Commission of H 30 lakhs
Additional compensation of H 10 lakhs for

foreign directors
Additional H 10 lakhs to the chairman of

Audit Committee*
Additional H 5 lakhs to the members of Audit

Committee
Additional H 5 lakhs to the chairman of

Nomination and Remuneration Committee*
Additional H 1 lakh to the members of

*Committee chairman would not be entitled for additional
commission as member of such Committee and vice versa.
Mr Umang Vohra was appointed as Managing

Director and Global Chief Executive Officer for
a term of five years w.e.f. 1st September, 2016.
The appointment can be terminated by either
party by giving not less than six months’ prior
notice. The Company may relieve him by paying
Subject to other terms of agreement entered
between him and the Company, Mr Umang
Vohra is also eligible for stock options
administered in 5 grants over a period of 4
years, of such number of shares having an
annual earn-out of upto H 3,50,00,000
(Rupees Three Crores and Fifty Lakhs) to be
calculated basis the market value of the shares
at close of business as of the date preceding
the date of grant, at face value of H 2 under
the Employee Stock Option Scheme 2013-A. In
line with the above, Mr Vohra, was granted
54,850 stock options on 6th November, 2017 at
an exercise price of H 2 per option with vesting
period of one year. The options can be
converted into equity shares either in full or in
tranches at any time upto five years from the
date of vesting of the options.
Ms Samina Vaziralli has been appointed for a

term of five years from the date of
appointment. The appointment can be
terminated by either party by giving not less
than three months’ prior notice in writing to
the other party or pro-rata fixed salary in lieu
of the notice. There is no separate provision for
payment of severance fees.
Board Committees
The Board Committees are set up by the Board and
are governed by its terms of reference which
exhibit the scope, composition, tenure, functioning
and reporting parameters. The Committees operate
under the direct supervision of the Board, and
Chairpersons of the respective committees report to
the Board about the deliberations and decisions
taken by the Committees. Currently, the Board has
six committees: Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship
Committee, Investment and Risk Management
Committee, Corporate Social Responsibility Committee
and Operations and Administrative Committee.
Audit Committee
Composition of the Audit Committee
The Audit Committee currently comprises of four

Directors, of whom three members, including the
Chairman of the Committee, are Independent
Directors.
The Committee is headed by Mr Ashok Sinha and effectiveness of audit process;
has Mr S. Radhakrishnan, Ms Naina Lal Kidwai
and Ms Ireena Vittal as its members. The composition (7) Discussion with statutory auditors before the audit
of the Committee meets the requirements of section
177 of the Act and the Listing Regulations.
Role of Audit Committee

The role of the Audit Committee is as follows:
(A) Accounts and Audit
(1) Oversight of the Company’s financial reporting

process and the disclosure of its financial
information to ensure that the financial
statement is correct, sufficient and credible;
(2) Reviewing, with the management, the annual

financial statements and auditor’s report
thereon before submission to the board for
approval, with particular reference to:
(a) matters required to be included in the

director’s responsibility statement to be
included in the board’s report in terms of
clause (c) of sub-section
(3) of section 134 of the Companies Act,
2013;
(b) changes, if any, in accounting policies and

practices and reasons for the same;
(c) major accounting entries involving

estimates based on the exercise of
judgment by management;
(d) significant adjustments made in the

financial statements arising out of audit
findings;
(e) compliance with listing and other legal

requirements relating to financial statements;
(f) disclosure of any related party transactions;
(g) modified opinion(s) in the draft audit report;
(3) Reviewing, with the management, the

quarterly financial statements before submission
to the board for approval;
(4) Recommendation for appointment, remuneration

and terms of appointment of statutory auditors;
(5) Approval of payment to statutory auditors for

any other services rendered by the statutory
auditors;
(6) Reviewing and monitoring the auditor’s

independence and performance, and
commences, about the nature and scope of by Designated Persons in securities of the
audit as well as post-audit discussion to Company.
ascertain any area of concern;
(3) To provide directions on any penal action to be
(8) Approval of appointment of chief financial initiated, in case of any violation of the Insider
officer after assessing the qualifications, Trading Regulations by any person.
experience and background, etc. of the
candidate;
(9) To review management discussion and

analysis of financial condition and results of
operations.
(B) Internal Controls and Internal Audit
(1) Review the appointment, removal and

terms of remuneration of the chief internal
auditor and other internal auditors.
(2) Reviewing, with the management,

performance of internal auditors, adequacy
of the internal control systems, internal
controls of different functions and
businesses;
(3) Reviewing the adequacy of internal audit

function, if any, including the structure of
the internal audit department, staffing and
seniority of the official heading the
department, scope of internal audit,
reporting structure coverage and frequency
of internal audit;
(4) Discussion with internal auditors of any

significant findings and follow up there on;
(5) Reviewing the findings of any internal

investigations by the internal auditors into
matters where there is suspected fraud or
irregularity or a failure of internal control
systems of a material nature and reporting
the matter to the board;
(6) Review with the management letters of

internal control weaknesses issued by the
internal auditors.
(7) Evaluation of internal financial controls and

risk management systems.
(C) Insider Trading
(1) To recommend to the Board revision in

Insider Trading Policy and to supervise
implementation of the Insider Trading
Code.
(2) The Chairman of the Audit Committee to

note the status reports detailing the dealings
(D) Public issue funds
Meetings of Audit Committee
(1) Reviewing, with the management, the statement of
uses Four Audit Committee meetings were held during
/ application of funds raised through an issue the financial year i.e. on 24th May, 2017, 10th August,
(public issue, rights issue, preferential issue, etc.), 2017, 6th November, 2017 and 6th February, 2018.
the statement of funds utilized for purposes other The composition and attendance of members at
than those stated in the offer document / the Committee meetings is given below:
prospectus / notice and the report submitted by
Number of
the monitoring agency monitoring the utilisation
of proceeds of a public or rights issue,
and making appropriate recommendations to the meetings attended
board to take up steps in this matter; Name Category
(total held during
(2) To review Quarterly statement of deviation(s) tenure)

including report of monitoring agency, if Mr Independent
Ashok
applicable,
submitted to stock Sinha Director 4 (4)
exchange(s).
(Chairman)
(3) To review Annual statement of funds utilized for Non-
purposes other than those stated in the offer Executive/
Mr S.
document / prospectus / notice. Non- 4 (4)
Radhakrishnan
Independent
(4) To look into the reasons for substantial defaults in Director
the payment to the depositors, debenture holders, Ms Naina Independent 4 (4)
Lal
shareholders (in case of non-payment of Kidwai(1) Director
declared
dividends) and creditors; Ms Independent 3 (4)
Ireena
(E) Miscellaneous Board from time to time.
(1) Approval or any subsequent modification of (8) Delegate any of the terms mentioned
transactions with related parties; hereinabove to any officer / employee of the
Company or to any other person.
(2) To review statement of significant related party
transactions (as defined by audit committee),
submitted by management.
(3) Scrutiny of inter-corporate loans and investments

of the Company;
(4) Valuation of undertakings or assets of the

Company, wherever it is necessary;
(5) To review the functioning of the vigil policy /

whistle blower mechanism;
(6) Discharge such duties and functions as

indicated in the Securities and Exchange Board
of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Companies
Act, 2013 and the rules made thereunder from
time to time.
(7) Discharge such other functions as may be

specifically delegated to the Committee by the
Vittal Director
(1)
Out of four Committee meetings held during the year, attended
three in person and one through video conferencing.
Beside the Committee meetings, the Committee

also holds a conference call before every regular
Committee meeting to discuss key accounting
matters, internal audit reports, internal controls,
etc. These calls helped the Committee to optimise
its time on more important agenda items at the
meeting.
The Chairman of the Committee was present at

the last AGM held on 11th August, 2017.
Audit Committee Report

The Report of the Audit Committee Chairman is as
follows:
I. Constitution
The Audit Committee is a four-member

committee, comprising of three Independent
Directors, including the Chairman and one Non-
Executive Director. The Audit Committee
complies with the statutory requirements of
Companies Act, 2013, the SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015, (Listing Regulations) and
the Secretarial Standards. The Executive
Vice-
Chairperson, the Managing Director and Global Indian Accounting Standards (Ind – AS), and
CEO, the Chief Financial Officer, and the Chief other legal and regulatory requirements. In
Internal Auditor are permanent invitees at the order to ensure fairness, accuracy, quality and
audit committee meetings to assist in transparency of the financial statements, the
conducing the proceedings and for issuing Committee discussed with
clarifications wherever necessary. The statutory
auditor is also permanent invitee at all
committee meetings for relevant agenda items
which include inter-alia, financial statements,
internal audit reports, approval and review of
related party transactions, IFC testing, fraud
monitoring etc.
II. Charter
The Committee is guided by the charter

approved by the Board of Directors of the
Company. With a view to strengthen the
governance framework and good practice, the
charter is reviewed periodically and was last
amended in August 2017. The Charter is
available on the website of the Company under
Corporate Governance section.
III. Meetings / Responsibilities and Auditors
The Committee met four times in the financial

year 2017-18 and also held discussions through
‘pre-audit calls’. The Chairman – Audit
Committee regularly met the Global Chief
Executive Officer, the Global Chief Financial
Officer, the Chief Internal Auditor, the Company
Secretary and other members of the
management team to discuss significant /
critical matters in greater details. The pre-audit
calls and the Chairman’s meeting with the
management help audit committee to optimise
its time and quality of discussion on important
agenda items at the meeting. The Chairman of
the Committee, after each committee meeting
briefs the Board about their discussions on
critical matters and outcome, and committee
recommendation etc. The Committee was
facilitated with an annual agenda plan, which
comprised items requiring the Committees’ review
and monitoring, and approval.
The Management presented the Company’s

financial statements and is responsible for
preparation of the financial statements, financial
reporting process and the Company’s Internal
Financial Controls. The Committee reviewed and
recommended to the Board the quarterly and
annual financial results
/ statements, prepared in accordance with the
Companies Act, 2013, the Listing Regulations,
the statutory auditors and relied on their report internal audit and testing of internal controls and
and the financial expertise of the management, procedures. The Chief Internal Auditor conducted
while using its best judgement. The Committee internal audits and submitted his report
believes that the financial statements provide a
true and fair view of the Company’s financial
position. The Committee reviewed testing of the
internal financial controls, as presented by the
internal and statutory auditors, in order to
confirm correctness of the accounting
transactions, entries and records.
The Statutory Auditors are responsible for

independent audit, overall audit strategy,
period and length of audit, audit observations
significant to financial statements, internal
financial control testing, and issuing reports
thereon. The Committee discussed with the
statutory auditors, the statutory audit plan, the
audit findings, financial reporting process and
the overall quality of the financial reporting and
compliances and was satisfied with the
company’s functioning in this regard. The
auditor has issued an unmodified report on the
financial statements and has confirmed that
both standalone and consolidated financial
statements represent true and fair view of the
state of affairs of the Company.
The Audit Committee is responsible for the

recommendation of appointment, remuneration
and reviews the scope of audit for the statutory
auditors. M/s. Walker Chandiok & Co, LLP,
would continue as the Statutory Auditor of the
Company upto the 85th Annual General Meeting
i.e. upto 2021. The Committee evaluated the
auditors’ performance while ensuring their
independence. To ensure auditor’s
independence during audit process, the
Statutory auditors met the Independent Directors
without the presence of the Management of the
Company.
The Audit Committee has also reviewed and

approved the non-audit services availed from
the statutory auditors and confirm that such
services did not affect the independence of the
auditors in any manner and were either
mandatorily required to be procured from
statutory auditors or were in the best interest
of the Company.
M/s. BNP & Associates were appointed as the

Secretarial Auditors of the Company for the
financial year 2018-19. The Secretarial Audit
Report confirm that the Company is compliant.
The Chief Internal Auditor is responsible for

on quarterly basis with management comments Place: Mumbai Ashok Sinha
and implementation timelines for review of the Date: 22nd May, 2018 Chairman - Audit Committee
Committee. The Committee discussed the
Internal Audit Reports with the auditor and the
management on quarterly basis. The Internal
Audit was conducted as per the risk based
internal audit plan approved by the Committee.
The Company has strengthened its’ framework of
internal controls for better transparency and
accountability by rationalising and streamlining
controls. These controls were also tested to
assess design and operating effectiveness. The
Committee reviewed the functioning of the
whistle blower mechanism and were updated
that cases received were carefully evaluated
and investigated and wherever necessary,
appropriate action was / was being taken. The
whistle blower had access to the Chairman of
the Audit Committee and the Committee was
assured that none of the whistle blowers were
victimised.
The Committee periodically reviewed all related

party transactions and ratified the same, where
necessary. Majority of the related party
transactions were between the Company and its
subsidiaries, associates or joint-ventures, and
were in the ordinary course of business and
routine in nature. The Company did not enter
into related party transaction requiring
shareholders’ approval.
During the year, the Company strengthened its

commitment towards good governance. The
Committee revised the Insider Trading Code,
the Global Code of Conduct and the policies
relating to the Code including the Whistle-
Blower Policy, the Anti-Bribery and Anti-
Corruption Policy the approval of the Board. The
Code of Conduct and policies are available on
the website of the Company1.
The Committee carried out its annual evaluation

and discussed the evaluation report of its
performance. The Committee believes it has
performed effectively and has carried out the role
assigned to it. In February 2018, the Committee
reviewed the compliance status of its Charter (i.e.
its role and responsibilities) and noted that it
has comprehensively covered all the
responsibilities assigned to it under Charter.
Nomination and Remuneration Committee (b) The procedure for Exercise of options and
allotment of Shares in pursuance of the
Composition of the Nomination and ESOS;
Remuneration Committee
(c) The conditions under which vested options
The Nomination and Remuneration Committee in employees may lapse in case of
currently comprises of four Non-Executive termination of employment for misconduct.
Directors, of whom three members including the The procedure and conditions for vesting of
Chairman of the Committee are Independent options in case of termination of
Directors. The Committee is headed by Ms Punita employment;
Lal and has Mr Adil Zainulbhai, Mr M. K. Hamied,
(d) The exercise period within which the
and Ms Ireena Vittal as its members. The
employee should exercise the option and
composition of the Committee meets the that the option would lapse on failure to
requirements of section 178 of the Act and the exercise the option within the exercise
Listing Regulations. period;
Role of Nomination and Remuneration Committee (e) The specified time period within which the
employee shall exercise the vested options
The role of the Nomination and Remuneration
in the event of termination or resignation of
Committee is as follows:
an employee;
(A) Employee Stock Option Scheme (“ESOS”) related
(f) The right of an employee to exercise all the
(1) Implementation, administration and superintendence options vested in him at one time or at
of the ESOS and for formulation of the detailed various points of time within the exercise
terms and conditions of the ESOS including but period;
not limited to –
(g) The procedure for making a fair and
(a) The quantum of options to be granted reasonable adjustment to the number of
under an ESOS per employee and in options and to the exercise price in case of
aggregate; corporate actions such as rights issues,
bonus issues, merger, sale of
1
division and others. In this regard following
/development plans, cultural transformation
shall be taken into consideration by the
initiatives, annual increment approach including
committee:
variable pay, results of employee survey, etc.
(i) the number and the price of ESOS shall
(D) Miscellaneous
be adjusted in a manner such that total
value of the ESOS remains the same (1) Discharge such duties and functions as
after the corporate action. indicated in the Securities and Exchange Board
(ii) for this purpose global best practices in of India (Listing Obligations and Disclosure
this area including the procedures Requirements) Regulations, 2015, the Companies
followed by the derivative markets in Act, 2013 and the rules made thereunder from
India and abroad shall be considered. time to time.
(iii) the vesting period and the life of the (2) Delegate any of the terms mentioned
options shall be left unaltered as far as hereinabove to any officer / employee of the
possible to protect the rights of the Company or to any other person.
option holders.
Meetings of Nomination and Remuneration
(h) The procedure for cashless exercise of Committee
options;
Four meetings of the Committee were held during
(i) The grant, vest and exercise of option in the financial year i.e. on 26th April, 2017, 25th May,
case of employees who are on long leave; 2017, 6th November, 2017 and 6th February, 2018.
The composition and attendance of members at
(j) ) Approving forms, writings and/or
agreements for use in pursuance of the the Committee meetings is given below:
ESOS; and
Number of
(k) Taking all necessary actions and give all meetings attended
such directions as may be necessary or
desirable and also to settle any question or
difficulty or
doubts that may arise with regards to ESOS. Name Category
(total held during
(B) Nomination related tenure)
Independent
(1) Review and recommend the structure, size and Ms Punita Lal(1) Director 4 (4)
composition (including the skills, knowledge, (Chairperson)
experience and diversity) of the Board.
Mr Adil Independent
3 (4)
(2) Identify persons who are qualified to become Zainulbhai(2) Director
Directors and, who may be appointed in Senior Non-
Management in accordance with the criteria Executive/
Mr M. K.
laid down and recommend to the Board for Non- 4 (4)
Hamied
their appointment and removal. Independent
Director
(3) Formulate policy on Board diversity, criteria Ms Ireena Independent
for performance evaluation of directors, Board 3 (4)
Vittal Director
and Board Committees and for determining Mr Ashok Independent
qualifications, positive attributes and 2 (2)
Sinha (3) Director
independence of directors.
(C) Human Resources and Remuneration related Directors.
(1) Recommend to the Board a policy relating to (3) Review key human resource related matters
remuneration for the directors, key managerial including organisation structure, top 100 talent
personnel and other employees. succession planning, employee attrition / retention
(2) Recommend remuneration of Executive and

Non- Executive Directors and relative of
(1)
Chairperson w.e.f. 11th August, 2017
(2)
Chairman upto 10 th August, 2017 and continued as
member w.e.f. 11th August, 2017
(3)
Member upto 10th August, 2017
The Chairperson of the Committee was present

at the last AGM held on 11th August, 2017.

Report
The Report of the Chairperson of Nomination and

Remuneration Committee is as follows:
I. Constitution applicable. The remuneration of the
Managing Director and Global Chief
The NRC is a four-member committee, Executive Officer and whole-time director
comprising of three independent directors was kept unchanged during the financial
including the chairperson and one non-executive year 2017-2018.
director. The NRC composition complies with the
statutory requirements of Companies Act, 2013
and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The Company
Secretary acts as Secretary to the Committee.
The Executive Vice- Chairperson, the Managing
Director and Global Chief Executive Officer, the
Global Chief People Officer are permanent
invitees at the meetings of the Committee in order
to provide clarification and assist the functioning of
the Committee on relevant agenda items. The
management team recuse themselves on the
agenda items where they have conflict of interest.
II. Charter
The NRC is guided by the charter adopted by

the board of directors. The Charter is reviewed
periodically and last amended in August 2017,
with a view to strengthen the governance
framework and good practices. In February
2018, the Committee reviewed the compliance
status of its charter and noted that it covered the
Charter comprehensively.
III. Meetings / Responsibilities
The Committee met four times in the financial

year 2017-18. The Chairperson of the Committee,
after each committee meeting briefs the Board
about their discussions on critical matters. The
Committee was facilitated with an annual
agenda plan, which comprised items requiring
the Committees’ review and monitoring
periodically.
The Committee inter-alia considered the following

matters during the financial year 2017-18:
1. The Objectives (Key performance indicator)

of the Executive Vice-Chairperson and
Executive Officer were finalised by the
Committee and approved by the Board and
their performance was evaluated against
the said objectives. The performance of
senior management and key managerial
personnel also reviewed by the Committee.
On the basis of the performance review, the
Committee recommended to the Board,
Variable Bonus for the year FY18 and
revision in their remuneration, wherever
2. (a) The leadership of the Company defines its
ability to stay relevant in changing times and
therefore succession planning for the Board
was one of the crucial matters taken up by
the Committee. The Committee oversees
key processes through which the Company
inducts new members to its Board, worked
closely with the Board on the leadership
succession plan, and prepared contingency
plans for succession in case of any exigencies.
(b) In the year 2016, as part of succession

planning, Ms Samina Vaziralli was elevated
to the designation of Executive Vice-
Chairperson along with the planned
progression of Mr Umang Vohra as
Executive Officer of the Company.
(c) The Committee reviewed and noted the

composition of the Board and that of the
Committees. Although, the Committee was
satisfied with the existing structure of the
Board, changes were made during the year
in the composition of the Committees to
further enhance the effectiveness.
3. The Committee devoted considerable time on

succession planning for critical positions within the
Company. Currently the Company has in place
succession planning for top 25 critical positions
including its Management Council members.
4. The Committee periodically reviewed with the

management human resource related matters
inter-alia including overall manpower, attrition,
gender diversity, performance and rewards
philosophy, talent management, cultural
transformation covering Cipla’s principles and
values etc. The Company has undertaken
several initiatives during the year to enhance its
employees’ engagement effectiveness, efficiency
and productivity e.g. introduction of grading /
banding system, new performance management
system, establishment of Cipla University for
internal talent development as a part of KEY
(Keep Educating Yourself) initiative etc.
5. The Committee consolidated (i) the Policy relating

to remuneration of directors, key managerial
personnel and other employees (ii) Policy on
diversity of Board of Directors, (iii) Criteria for
appointment of Senior Management Personnel,
(iv) Criteria for determining qualifications,
positive attributes and independence of
Directors, into a single policy named
“Nomination, Remuneration and Board Diversity
Policy”.
6. The Company has an Employee Stock

(1) To resolve the grievance(s) of the security holders
Option Scheme named as Employee Stock
of the Company;
Option Scheme 2013-A (ESOS 2013-A) for the
benefit of its employees and the employees (2) To register transfer / transmission / deletion of
of its subsidiary companies. During the name
financial year, the Committee granted / transposition requests;
4,79,943 options to 122 eligible employees, of
which 54,850 stock options were granted to (3) To approve issuance of duplicate share
the Managing Director and Global Chief certificate(s);
Executive Officer.
(4) To approve issuance of share certificate(s)
The Committee formulated the board pursuant to request received for
evaluation parameters in the form of a rematerialisation;
simplified questionnaire for carrying out
(5) To approve issuance of share certificate(s)
evaluation of board, board committees and
individual directors. Based on parameters pursuant to request received for splitting /
approved, the evaluation of the board, board consolidation of share certificates;
committee and the individual directors was (6) To discharge such duties and functions as
undertaken in January 2018 and the
indicated in the listing agreement, the
relevant reports were discussed in the
Companies Act, 2013 and the rules made
subsequent board and board committee
thereunder from time to time;
meetings.
(7) To discharge such other functions as may be
7. The Chairperson of the Committee also
specifically delegated to the Committee by the
conducted individual conversations with
Board from time to time;
directors and select member of the senior
management as a part of the board (8) To delegate any of the terms mentioned
evaluation process. hereinabove to any officer / employee of the
8. The Committee carried out its annual
evaluation and discussed the evaluation report Meetings of Stakeholders Relationship Committee
of its performance. The Committee believes it
has performed effectively and has carried out Two meetings of the Stakeholders Relationship
the role assigned to it. In February 2018, the Committee were held during the year i.e. on
Committee reviewed the compliance status of 8th November, 2017 and 5th February, 2018. The
its Charter (i.e. its role and responsibilities) composition and attendance of members at the
and noted that it has Committee meetings is given below:
comprehensively covered all the responsibilities
assigne d to it under Number of
Charter. meetings attended
Name Category
(total held during
Punita Lal tenure)
Place: Mumbai Chairperson - Nomination Non-Executive

and Date: 22nd May, 2018 Remuneration / Non-
Mr M.
Committee Independent 2 (2)
K.
Director
Hamied
Stakeholders Relationship Committee
(Chairman)
Composition of Stakeholders Relationship Non-Executive
Committee Mr S. / Non-
Radhakrishnan 2 (2)
Independent
The Stakeholders Relationship Committee currently Director
comprises of three Directors. All members including Ms Naina Independent1 (2)
Lal
the Chairman of the Committee are Non-Executive Hamied and has Mr S. Radhakrishnan and Ms Naina Lal
Directors. The Committee is headed by Mr M. K. Kidwai as its members.
Report on Corporate Governance 149
Role of the Stakeholders Relationship Committee Kidwai Director
The role of the Stakeholder Relationship The Chairman of the Committee was present at the
Committee is as follows: last AGM held on 11th August, 2017.
Investor services
Mr Rajendra Chopra, Company Secretary acts as

the Company’s Compliance Officer.

18
During the year under review, 13 investor
Meetings of Corporate Social Responsibility
grievances were received. As of 31st March,
Committee
2018, there are no pending investor grievances.
Three meetings of the Committee were held during
During the year, the Committee adopted Investor
the financial year i.e. on 25th May, 2017, 6th
Grievance Redressal Policy and Investor FAQs
November, 2017 and 6th February, 2018. The
handbook to effectively redress investor grievances
composition and attendance of members at the
and for
Committee meetings is given below:
improving the services provided to the investors. The
Investor FAQs handbook serves as ready reference Number of
material for shareholders holding / dealing in Cipla meetings attended
Name Category
shares. It is designed to assist the shareholders on (total held during
matters,
inter-alia, including transfer / transmission of shares, tenure)
dematerialisation of shares, dividend, IEPF, etc. The Non-Executive

said handbook and the Investor Grievance Redressal / Non-
Mr M.
Policy is uploaded on Company’s website under the Independent 3 (3)
K.
Corporate Governance tab of the Investor Director
Hamied
Information section.
(Chairman)
Corporate Social Responsibility Committee Non-
Executive/
Mr S.
Non- 3 (3)
Composition of Corporate Social Responsibility Radhakrishnan
Independent
Committee
Director
The Corporate Social Responsibility Committee Independent 3 (3)
currently Ms Punita Lal
comprises of five Directors, of whom four members, including Director
Chairman, are Non-Executive Directors. The Mr Adil Independent 2 (3)
Committee is
headed by Mr M. K. Hamied and has Mr S. Zainulbhai Director
Radhakrishnan,
Ms Punita Lal, Mr Adil Zainulbhai and Mr Umang Mr Executive 3 (3)
Vohra as Umang
its members. The composition of the Committee meets to time and such other functions as may be
the requirements of section 135 of the Act. delegated to the Committee by the Board from
time to time
Role of Corporate Social Responsibility
Committee (5) take all necessary actions as may be necessary
or desirable and also to settle any question or
The role of the Corporate Social Responsibility difficulty or doubts that may arise with regards
Committee is as follows: to Corporate Social Responsibility activities/Policy
of the Company.
(1) formulate and recommend to the Board, the
Corporate Social Responsibility Policy and the
activities to be undertaken by the Company
(2) recommend the amount of expenditure to be

incurred on the activities
(3) monitor the Corporate Social Responsibility Policy

from time to time
(4) discharge such duties and functions as

indicated in the section 135 of the Companies
Act, 2013 and Rules made thereunder from time
Vohra Director
Ms Rumana Hamied, CEO of Cipla Foundation, is a

permanent invitee at the CSR Committee meetings.
She apprises and facilitates the CSR Committee in
monitoring the projects.
Investment and Risk Management Committee

Composition of Investment and Risk Management
Committee
The Investment and Risk Management Committee

currently comprises of six Directors, of whom
three members are Independent Directors. The
Committee is headed by Ms Samina Vaziralli and
has Mr Umang Vohra, Mr S. Radhakrishnan, Mr
Ashok Sinha, Ms Naina Lal Kidwai and Mr Peter
Lankau as its members.
Role of Investment and Risk Management

Committee
The role of the Investment and Risk Management

Committee is as follows:
(1) grant in-principle approval for investments/

acquisitions to be made by the Company
beyond USD 50 million per transaction and
recommend to the Board for its approval.
(2) grant in-principle approval for investments/

acquisitions to be made by the subsidiary Number of
companies (formed or to be formed) beyond meetings attended
Name Category
USD 50 million per transaction and recommend (total held during
to the Board of such tenure)
subsidiary company for its approval. Mr Peter Independent
3 (3)
Lankau Director
(3) monitoring short term and long term strategic
priorities of the Company. Out of three Committee meetings held during the year, attended two
(1)
in person and one through video conferencing.

(4) review and recommend to the Board annual
capital expenditure budget of the Company.
Operations and Administrative Committee
(5) review and approve any single capital
expenditure proposal exceeding H 75 crores. The Operations and Administrative Committee was
constituted by the Board of Directors w.e.f. 12th
(6) monitor with adequate frequency the key August, 2017 to manage day to day administrative
ongoing capex projects including post- and routine matters of the Company.
implementation review/governance.
Composition of Operations and Administrative
(7) monitor and review the risk management plan. Committee
(8) discharge such duties and functions as may be The Committee currently comprises four Directors,
delegated to the Committee by the Board under of whom two members are Non-Executive Directors.
the applicable laws from time to time. The Committee is headed by Ms Samina Vaziralli
and has Mr
(9) Delegate any of the terms mentioned M. K. Hamied, Mr Umang Vohra and Mr S.
hereinabove to any officer / employee of the Radhakrishnan as its members.
Role of the Operations and Administrative
Meetings of Investment and Risk Management Committee
Committee
(A) Treasury related
Three meetings of the Investment and Risk
Management Committee were held during the To grant loan at a rate of interest not lower
financial year i.e. on 24th May, 2017, 6th November, than the rate as prescribed under the
2017 and 6th February, 2018. The composition and Companies Act, 2013 or any other relevant law
attendance of members at the Committee meetings is and give guarantee or provide security in
given below: connection with the loan.
To deal in government securities, units of

Number of
mutual funds, fixed income and money market
instruments, fixed deposits and certificate of
deposit programme
Name Category meetings attended of banks and other instruments / securities /
(total held during
treasury products of banks and financial
institutions within
tenure)
the limits approved by the Board from time to time.
Ms Samina Executive
Vaziralli Director 3 (3) To deal in foreign exchange and financial
(Chairperson) derivatives linked to foreign exchange and
Mr Umang
Executive interest rates including but not limited to
Vohra 3 (3)
Director foreign exchange spot, forwards, options,
Non-Executive/ currency swaps and interest rate swaps as per
Mr S. the Foreign Exchange and Interest Rate Risk
Non-
Radhakrishnan 3 (3) Management Policy.
Independent
To open, operate, close, change in authorisation
Report on Corporate 151
Governance
Director
/ signatory for any current / deposit / cash credit
Independent
Mr Ashok Sinha 3 (3) account(s), safe deposit vault(s), electronic bank
Director account(s), internet bank account(s) /
Ms Naina Independent facility, subsidiary general ledger account(s),
Lal 3
Director dematerialisation / depository account(s) with
(3)
Kidwai(1)

18
any nationalized bank(s), scheduled bank(s), To grant approval for setting up and closure
co- operative bank(s) in any part of the country of branch / representative / liaison office of
including foreign bank(s) authorised by Reserve the
Bank of India to do banking business in the
country and in any country outside India with
bank(s) authorised to do banking business in
that country.
To approve, finalise and authorise the

execution of any deed, document, letter or
writing in connection with the aforesaid
activities, including borrowing / credit facilities,
creation of charge.
To approve revision in authorised signatories for

any of the above matters.
(B) Employee Stock Option Scheme related
Issue and allot equity shares of the Company

pursuant to the Employee Stock Option Scheme(s)
for the time being in force.
To seek listing of shares issued as above on one

or more Stock Exchanges in India and all such
shares being pari-passu with the existing
equity shares of the Company in all respects.
To do all such acts, deeds and things, as may

be necessary and incidental to allotment and
listing of shares.
(C) General Authorisations
To purchase, sell, take on lease / license,

transfer or otherwise deal with any movable /
immovable assets or property for a maximum
value of H 50 crore.
To constitute, reconstitute, modify, dissolve

any trust or association for Company / business
related matters and to appoint, reappoint,
remove, replace the trustees or representatives.
To issue voting instructions to the Depositary

of the Global Depositary Shares in respect of
the resolutions at the General Meeting / Postal
Ballot of the Company.
To authorize affixing the common seal of the

Company and re-locate / move the common
seal to any place other than the registered
office of the Company.
To grant / revoke general and specific power

of attorney / letter of authorisation in favour of
employees of the Company as and when
required for business purposes.
Company and nominate managers for such office. Board.
To nominate director / representative on the

subsidiaries, joint ventures and associates and to
approve and vote on all resolutions of the
Companies, body corporates or entities or bodies,
where the Company is a shareholder or member and
where specific shareholder resolution is required.
To handle and deal with the following matters, in

case any specific authorization, approval or
resolution is required from the Board of Directors
or a committee thereof:
Obtain / renew / surrender license / Letter of

Permission or such other registration of the
Company with any regulatory / statutory
authorities and execute legal undertaking /
legal agreement or any document required for
this purpose.
Approve for participation into any tender, bid,

auction by the Company.
Register / de-register the Company with any

Central / State Government authorities, Semi-
Government authorities, regulatory authorities,
statutory authorities, quasi-judicial authorities,
local authorities, tax authorities including sales
tax, service tax, goods and service tax, value
added tax, labour law authorities, administrative
authorities, business associations and any other
bodies.
Nominate or revoke nomination of a

representative under Foods Safety and
Standards Act, 2006, Manager under Factories
Act, 1948, managers for branch office and such
similar requirement under any other applicable
law.
Appoint any Merchant Banker, Chartered

Accountant, Advocate, Counsels, Company
Secretary, Engineer, Technician, Consultants and
/ or Professionals for undertaking any
assignment for and on behalf of the Company
requiring specific approval of the Board of
Directors under any law.
Apply for and surrender any electricity, power

or water connection.
To do all such acts, deeds and things as may be

required for the smooth conduct of the operations
of the Company and which does not require
specific approval of the Board of Directors of the
Company or which has not been delegated by the
Board specifically to any other Committee of the
To discharge such other functions as may be

specifically delegated to the Committee by the Code of https://www.cipla.com//
Conduct for uploads/investor/1532512750_
Board / shareholders from time to time.
Prevention of Insider%20Trading%20 Code
To delegate any of the terms mentioned Insider Trading %201.pdf
hereinabove to any officer / employee of the https://www.cipla.com/
Company or to any other person. Corporate templates/home_tpl/images/
Responsibility Policy Corporate_Responsibility_
Meetings of Operations and Administrative Policy.pdf
Committee https://www.cipla.com/
Corporate Social templates/home_tpl/
Six meetings of the Operations and Administrative
Responsibility Policy images/Corporate_Social_
Committee were held during the financial year i.e. on Responsibility_Policy.pdf
21st September, 2017, 13th November, 2017, 4th Dividend https://www.cipla.com//

December, 2017, 4th January, 2018, 16th February, 2018 Distribution Policy uploads/investor/1497009813_
and 16th March, 2018. The composition and attendance Dividend_Distribution_Policy.pd
of members at the Committee meetings is given below: Investor Grievance f
Redressal Policy https://www.cipla.
Number of com//uploads/
meetings attended investor/1530538002_ Investor
%20Grievance%20
Name Category Redressal%20Policy_v12.pdf
(total held during
Nomination https://www.cipla.com//
tenure)
Executive Remuneration and uploads/investor/153251188
7_
Ms Samina Board Diversity Nomination%20
Director 6 (6)
Vaziralli Policy Remuneration%20and%20
(Chairperson)
Board%20Diversity%20Policy.pdf
Non-
Policy for https://www.cipla.com//
Executive
Mr Determination of uploads/investor/1449836039_
/ Non- 5 (6)
M.K.Hamied Materiality of Event Policy%20for%20
Independent
or Information Determination%20of%20
Director Materiality%20of%20Event%20
Mr Umang Executive or%20Information.pdf
5 (6)
Vohra Director Policy on Material https://www.cipla.com//
Non- Subsidiary uploads/investor/1443000071_
Executive Policy-for-determining-
Mr S.
/ Non- 5 (6) Material-Subsidiaries.pdf
Radhakrishnan
Independent Policy on Related https://www.cipla.
Director
Party Transactions com//uploads/
investor/1532683654_
Policies Cipla%20Limited%20-%20
Policy%20on%20Dealing%20
In line with Cipla’s philosophy for adhering to ethical with%20Related%20Party%20
and governance standards and ensure fairness, Transactions.pdf
accountability, responsibility and transparency to all Archival Policy https://www.cipla.com//
its uploads/investor/1449810938_
stakeholders, Cipla, inter-alia, has the following
policies
and codes in place. All the policies have been uploaded Archival%20Policy_new.pdf
on the website of the Company. Code of Conduct com//
uploads/inv
Name of the Policy Website Link https://www.cipla. estor/15302

Governance
74684_ Cipla---Code-of- Code of Practices https://www.cipla.com//
Conduct- FC.PDF and Procedures uploads/investor/1532512790_
for Fair Disclosure Code%20of%20Fair%20
of Unpublished Disclosure%20of%20UPSI.pdf
Price Sensitive
Information

18
In constant efforts to strengthen and benchmark Chairperson of the Audit Committee at
our policies, we continuously review, revisit and audit.chairman@cipla.com. During the year, we
realign them with best global practices. As a result, received 33 complaints, out of which 30 complaints
we have updated/ replaced the following policies were resolved satisfactorily as on 31st March, 2018
during the FY18: and the balance were also satisfactorily
Code of Conduct
The Company approved the revised Code of Conduct
(Code) at the board meeting held in February 2018.
The revised code is effective from 23rd May, 2018. The
Code is administered by the Ethics Committee which
comprises of Global Chief People Officer, Global Chief
Financial Officer, Global General Counsel and Chief
Internal Auditor.
The revised Code is a comprehensive guide on how

Cipla conducts its business and provides for
reporting mechanism for non-compliances under
various polices which inter-alia include Whistle- Blower
Policy, Prevention of Sexual Harassment Policy,
Insider Trading Code, Environment, Health and
Safety Policy, Anti- bribery and Anti – Corruption
Policy and Conflict of Interest Policy.
Besides board members and employees, the Code

is also applicable to trainees, subsidiaries,
affiliates, group companies and persons or entities
contractually obligated across the globe. The other
stakeholders e.g. contractors, consultants and other
service providers are encouraged to adopt the
Cipla’s Code 2.
Members of the Board and senior management

personnel have affirmed their compliance with the
Code of Conduct for FY18. A declaration to this effect
signed by Mr Umang Vohra, Managing Director and
Global Chief Executive Officer forms part of the
report.
Whistle-Blower Policy
Consequent to adoption of the Code, the Vigil
Policy was amended and replaced with the new
Whistle- Blower Policy. The new Whistle-Blower
Policy details about the scope of Policy, reporting
mechanism, indicative list of retaliation that a
Whistle Blower may face, disciplinary actions in
case of false reporting with mala-fide intentions,
retention of records and periodic/ mandatory
trainings to employees amongst the others. The
Audit Committee oversees the functioning of the
vigil mechanism and receives periodic reports from
the Ethics Committee. The Whistle-Blower can convey
the concerns to Chairperson of Ethics Committee at
ethics@ cipla.com or in exceptional cases such as
disclosures pertaining to members of the Ethics
Committee or Board members shall be addressed to
resolved subsequently before the date of this report. promoters, KMPs, directors, wholly owned
No employee was denied access to the Audit subsidiaries, joint ventures. The Policy requires Board
Committee. approval for all transactions with the Directors,
Promoters and KMPs. The Policy also explicitly
specifies disclosure and reporting requirements.
Policy on Related Party Transactions
The Company ensures that its related party Code of Conduct for Prevention of
transactions are in the best interest of the
Insider Trading
Company and the relationship with related parties
does not in any way influence the transactions. It The Code of Conduct for Prevention of Insider
adheres an appropriate governance framework Trading (Insider Trading Code) was updated to
while entering into the transactions with related commensurate with the existing organisation
parties. structure and changes in regulatory environment.
The revised Insider Trading Code was adopted by the
The Company reviewed its Policy on Materiality
Board at its meeting held in November 2017 and
of Related Party and Dealing with Related Party
was implemented with effect from 1st January, 2018.
Transactions to make it comprehensive and
The Insider Trading Code lays down procedures to
abreast with the current applicable laws. The
be followed and disclosures to be made while
Policy was also benchmarked with the global best
trading in the Company’s shares. The Insider
practices. The Policy aims to ensure proper
Trading Code restricts the connected persons, who
reporting, approval and disclosure processes for all
are designated as such under the Insider Trading
transactions between the Company and related
Code, from disclosing any price sensitive
parties.
information and imposes strict confidentiality
Besides specifying the process for identification obligations on persons who have access to any
and approval, the revised Policy also mandates price sensitive information in relation to the
external review of the related party transactions. Company. It also prohibits the designated person
Criteria for granting omnibus approval is now from dealing in shares of the Company who is in
encompassed in the Policy document which possession of unpublished price sensitive information,
specifically includes thresholds for transactions with forward contracts, derivatives, portfolio management
schemes, amongst the others.
2
Information in line with BRR Principle 1, Question 1 and Principle 5, Question 1
In order to ensure rigour of the Insider Trading approvals are noted at subsequent meetings of the
Code, the employees were familiarised with the Stakeholders Relationship Committee.
revised Insider Trading Code through training
Pursuant to regulation 40(9) of the Listing Regulations,
programmes and other periodical communications.
the Company obtains certificate from a practicing
The employees were also sensitised on ways to
Company Secretary on a half-yearly basis to the effect
handle price sensitive information and information
that all the transfers are completed within the statutory
confidentiality.
To ensure strict enforcement of the Insider Trading

Code and its administration, the Board has
constituted the Monitoring Committee. The
Committee comprises of the MD and GCEO, the
Global Chief People Officer, the Global Chief
Financial Officer and the Company Secretary &
Compliance Officer. Role of the Monitoring
Committee inter alia includes general review of the
compliance of the Insider Trading Code, periodical
review and updation of the list of Designated
Persons, conducting inquiries/ investigations
regarding alleged violations of the Insider Trading
Code or the SEBI (Prohibition of Insider Trading)
Regulations, 2015, and decide on the penal
consequences for the violation of Insider Trading
Code.
Nomination Remuneration and Board

Diversity Policy
In terms of the provisions of section 178 of the Act,
the Company had in place the Remuneration Policy.
During the year, the Company consolidated the
existing four policies i.e. (i) Policy relating to the
remuneration of the directors, key managerial
personnel and other employees,
(ii) Policy on diversity of Board of Directors, (iii)
Criteria for appointment of Senior Management
Personnel and (iv) Criteria for determining
qualifications, positive attributes and independence of
Directors; into a single policy, i.e. the Nomination,
Remuneration and Board Diversity Policy. The Policy is
enclosed as Exhibit A to this report.
Share Transfer System

We have appointed Karvy Computershare Private
Limited (Karvy) as the Share Transfer Agents to
handle shares and shareholders related matters.
Karvy has adequate infrastructure to process share
transfer related matters. Karvy validates the
documents received for transfer of shares held in
physical form and thereafter submits the same to
the Company for approval of registration of transfer.
These matters are processed within a period of 7 to
15 days from the date of receipt, provided the
documents are complete in all respects. These

Governance
stipulated period. A copy of the certificate, so related to capital markets during the last three
received, is submitted to both Stock Exchanges, years and accordingly no penalties or
where the shares of the Company are listed. strictures were imposed on the Company by the
stock exchanges, SEBI or any other statutory
authority.
Monitoring Governance of
Subsidiary Companies
The Company does not have any material non-
listed Indian subsidiary company. The financial
statements of the subsidiaries are reviewed by
the Audit Committee. The minutes of meetings
of the subsidiaries are placed before the Board
of Directors of the Company and the Board is
periodically informed of all the significant
transactions entered into by the subsidiaries.
Unclaimed dividend and transfer of

dividend and shares to IEPF
Pursuant to the provisions of sections 124 and
125 of the Act read with the Investor Education
and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (IEPF
Rules), unclaimed dividends from the financial
year ended 31st March, 1996 till 31st March,
2010 and interim dividend for the FY 2010-11
have been transferred to IEPF. Unclaimed final
dividend for the financial year ended 31st March,
2011 shall become due for transfer to IEPF on
26th September, 2018.
As per the provisions of section 124(6) of the

Act read with the IEPF Rules as amended, all
shares in respect of which dividend had
remained unclaimed for seven consecutive
years or more were transferred by the Company
to IEPF in November, 2017. The shares in
respect of which dividend has remained
unclaimed for the last consecutive seven years
or more shall become due for transfer to IEPF
on 26th September, 2018.
Shareholders can check the details of any

unclaimed dividend on the Company’s website, i.e.
www.cipla.com under Unclaimed Data tab of the
Investor Information section.
Disclosures
During the year, there were no materially
significant related party transactions that
may have potential conflict with the
Company’s interests.
The Company has complied with the

requirements of the stock exchanges, SEBI
and other statutory authorities on all matters
18
All transactions entered into with related 17 to 27 read with Schedule V and clauses (b) to (i)
parties during the financial year were in the of sub-regulation (2) of regulation 46 of the Listing
ordinary course of business and on arm’s length Regulations. The Company is also in compliance
basis. with Secretarial Standards on Meetings of the
Board of Directors and General Meetings issued
There were no transactions with related parties by the Institute of Company Secretaries of India.
during the financial year which were in conflict Further, the Company substantially complies with
with the interest of the Company. Prior omnibus
approval of the Audit Committee is obtained for
related party transactions which are repetitive in
nature and in case such transactions exceed the
limits approved through the omnibus approval,
the transactions are subsequently ratified. All
related party transactions are periodically placed
before the Audit Committee and the Board for
review and approval as appropriate. The details
of related party transactions as per IND AS-24 are
discussed in detail in Note No. 42 to the
standalone financial statements.
The securities of the Company were not suspended

from trading at any time during the year.
The Company has managed foreign exchange risk

with appropriate hedging activities in accordance
with the policies of the Company. The Company’s
approach to managing currency risk is to leave
no material residual risk. The Company uses
forward exchange contracts to hedge against its
net foreign currency exposures. All material
foreign exchange transactions are fully covered.
There are no materially uncovered exchange rate
risks relating to the Company’s imports and
exports. The Company does not enter into any
derivative instruments for trading or speculative
purposes. The details of foreign exchange
exposures as on 31st March, 2018 are disclosed in
Note No. 46 to the standalone financial
statements.
Particulars of total fees paid to auditors are

provided in Note No. 40 to the consolidated
financial statements.
Cost of raw materials forms a large portion of

the Company’s operating expenses. The
Company monitors the price of key commodities
closely and formulates procurement strategies
based on actual price movements and trends as
well as external regulatory environment. The
Company has adequate governance structure to
align and review procurement strategies in line
with external and internal dynamics. The
Company has historically not entered into any
material derivative contracts to hedge exposure
to fluctuations in commodity prices.
The Company is in compliance with the

mandatory requirements of the Code of
Corporate Governance as specified in regulations
the recommendations of the SEBI constituted Kotak as filed with the stock exchanges where the securities
Committee Report on Corporate Governance. of the company are listed.
Non-mandatory requirements under

Listing Regulations
The Company has fulfilled the following non-
mandatory requirements under the Listing Regulations:
a. It is in the regime of financial statements with

unmodified audit opinion.
b. It complies with the requirement of having

separate persons to the post of Chairman and
Managing Director / CEO.
c. The Non-Executive Chairman has an office

within the Company’s premises. The Company
also has a provision for reimbursement of
expenses incurred by him in the performance of
his duties.
d. The Chief Internal Auditor functionally reports

directly to the Audit Committee.
Certification by Global Chief

Executive Officer and
Global Chief Financial Officer
The Global Chief Executive Officer and Global Chief
Financial Officer of the Company have certified
positively to the Board on the financial statements
as required under Regulation 17 read with Part B of
Schedule II of the Listing Regulations.
Shareholder Information and Communication

Means of Communication
Financial Results
During the year, financial results were published

in the following newspapers: Business Standard (All
Editions) and Sakaal (Mumbai edition). The annual
/ half yearly
/quarterly results are displayed on the Company’s
website – www.cipla.com.
News and Media Release
The official news and media releases are

disseminated to stock exchanges and displayed on
the Company’s website - www.cipla.com.
Earning calls and presentations to Institutional Investors /

Analysts
The Company organises an earnings call with

analysts and investors after the announcement of
financial results. The transcript of the earnings call
is also uploaded on the Company’s website as well
Presentations made to institutional investors and

a web-based application and periodical filings like
financial analysts on the financial results are
shareholding pattern, Corporate Governance
uploaded on the Company’s website.
Report, financial results, Material / Price sensitive
Compliance reports, corporate announcements, material information, etc. are filed electronically on such
information and updates
designated platforms.
The Company disseminates the requisite corporate
Annual Report
announcements including the Listing Regulation
compliances through NSE Electronic Application The Annual Report is circulated to members and
Processing System (NEAPS) / BSE Corporate
others entitled thereto in electronic as well as
Compliance & Listing Centre. The NEAPS / BSE’s
physical modes, is disseminated to stock exchanges
Listing Centre is
and is also uploaded on the Company’s website.
General Meetings
The details of last three annual general meetings are:
Financial Year Meeting Date Venue Time
2014-15 79th AGM 27th August, 2015 Y. B. Chavan Auditorium, 3.00 p.m.
2015-16 80 th AGM 28th September, General Jagannath Bhosale Marg,
2016
Mumbai – 400 021
2016-17 81st AGM 11th August, 2017 Ravindra Natya Mandir, P.L. Deshpande
Maharashtra Kala Academy Sayani Road,
Prabhadevi, Mumbai – 400 025
No Special Resolution was passed at the Company’s AGM held on 27th August, 2015 and 28th September,
2016. The following Special Resolutions were passed at the Company’s AGM held on 11th August, 2017:
(i) Authorisation for issuance of Equity Shares / Securities Convertible into Equity Shares upto H 2000
crore.
(ii) Authorisation for issuance of Debt Securities upto H 2000
crore. No resolution was passed through postal ballot during the
FY18.
None of the business proposed to be transacted at the ensuing AGM require passing of resolution through
postal ballot.
General Shareholder Information
Date, Time and Venue of the AGM Thursday, 30th August, 2018 at 3.00 p.m. Nehru Centre Auditorium,
Discovery of India Building, Dr Annie Besant Road, Worli,
Mumbai- 400 018
Financial Calendar 1st April to 31st March of the next calendar year
Adoption of Financial Results (Tentative Schedule, subject to change)
For the quarter ending 30th June, 2018 Wednesday, 8th August, 2018
For the quarter and half year ending Tuesday, 6th November, 2018
30th September, 2018
For the quarter and nine months Wednesday, 6th February, 2019
ending 31st December, 2018
For the fourth quarter and financial Wednesday, 22nd May, 2019
year ending 31st March, 2019
Trading window closure for financial From the 10th day from close of quarter till 48 hours after the UPSI
results becomes generally available
Date of Book Closure Thursday, 16th August, 2018 to Thursday, 30th August, 2018

Dividend and Dividend Payment H 3 per equity share for FY18. The dividend, if approved at the
Date AGM will be paid within statutory time limit of 30 days from the
date of AGM
Governance
Listing on Stock Exchanges Equity Shares:
1. BSE Limited
PhirozeJeejeebhoy Towers,
Dalal Street,Mumbai - 400
001
2.National Stock Exchange of India Limited
Exchange Plaza, Plot no. C/1, G Block, Bandra Kurla Complex, Bandra
(East), Mumbai – 400 051
Global Depository Receipts (GDRs):
Societe De La Bourse De Luxembourg
Societe Anonyme, 35A Boulevard Joseph II, L-1840 Luxembourg
The Company has paid the requisite annual listing fees to the above
stock
exchanges for FY 2018-19.
Stock Code 500087 on BSE Limited
CIPLA EQ on National Stock Exchange of India Limited
DR Symbol / CUSIP CIPLG / 172977209
ISIN Number for NSDL & CDSL INE059A01026
Market Price Data for the period from 1st April, 2017 to 31st March, 2018
Month (FY18) BSE Limited National Stock Exchange of India Limited Luxembourg Stock Exchange
Equity Shares GDRs
High Low Number of High Low Number of High Low
(H) (H) Shares Traded (H) (H) Shares Traded (USD) (USD)
April 600.55 545.75 5727087 603.90 545.40 24986879 9.16 8.60

May 571.65 479.00 5761839 572.45 480.20 33086481 8.84 7.62
June 558.00 513.70 3098422 558.90 513.05 21484707 8.59 7.99
July 580.80 536.10 2781000 579.40 536.05 17977241 8.93 8.34
August 594.05 526.30 2295874 593.70 525.45 30715979 9.20 8.46
September 598.80 543.90 2019622 600.00 543.35 28470457 9.13 8.63
October 633.95 576.90 1926318 635.90 575.50 22793184 9.70 8.84
November 663.00 589.85 4081200 663.40 590.00 43614259 10.14 9.09
December 623.80 572.30 1605315 623.75 571.65 25217640 9.54 8.97
January 630.60 587.10 3644999 628.40 590.00 24662964 9.75 9.25
February 634.00 554.60 4043911 635.00 554.20 36259850 9.66 8.79
March 594.90 523.00 3341924 593.90 522.90 36097300 9.00 8.25
Performance in comparison to BSE SENSEX

Performance in comparison to NSE Nifty – FY18
– FY18
130 130
120 120
110 110
100 100
90 90
May-17
Dec-17
May-17
Jun-17
Jul-17
Sep-17
Jun-17
Jul-17
Sep-17
Dec-17
Aug-17
Apr-17
Oct-17
Nov-17
Mar-18
Apr-17
Oct-17
Nov-17
Mar-18
Jan-18
Feb-18
Aug-17
Jan-18
Feb-18
80 80
Cipla Share Price BSE Sensex Cipla Share Price NSE Nifty
Address for Correspondence
Contact details Address
For Corporate Mr Rajendra Chopra Cipla Limited
Governance and Company Secretary Cipla House,
other
Secretarial matters Email :cosecretary@cipla.com Peninsula Business Park,
For IEPF related matters Mr Karan Tanna Ganpatrao Kadam Marg,
Nodal Officer Lower Parel,
Email :cosecretary@cipla.com Mumbai – 400 013
For Financial Mr Naveen Bansal Tel: +9122 2482 6000
Statements related Investor Relations Fax: +9122 2482 6120
matters and Institutional Email: investor.relations@cipla.com
Investors Ms Heena Kanal
Vice President, Corporate
For Corporate Communications
Communication related Email: heena.kanal@cipla.com
matters Karvy Computershare Private Karvy Selenium Tower B, Plot No.: 31 & 32,
Limited Gachibowli, Financial District, Nanakramguda,
For share transfer, (Share Transfer Agents) Serilingampally, Hyderabad – 500 032,
transmission, Email: einward.ris@karvy.com Telangana
National Electronic Tel: (040) 6716 2222 /6716 1511
Clearing Service Fax: (040) 2300 1153
(NECS), dividend,
dematerialisation, etc.
Distribution of shareholding as on 31st March, 2018 (Class-wise distribution of equity shares)

Category No. of Folios % of Total No. of Shares % of Total
1-5000 196718 97.82 24419012 3.03

5001-10000 1400 0.70 5155144 0.64
10001-20000 923 0.46 6821610 0.85
20001-30000 420 0.21 5122374 0.64
30001-40000 230 0.11 4047533 0.50
40001-50000 176 0.09 3987580 0.49
50001-100000 393 0.19 14291216 1.78
100001 & Above 836 0.42 741274695 92.07
Total 201096 100 805119164 100
Shareholding Pattern as on 31st March, 2018

24.34%
36.70%
Promoters and Promoter Group
Indian Institutional Investors
23.84%
13.75% 1.37%
Foreign
Institutions
Investors
GDR
Others
Dematerialisation of Shares and Liquidity
As on 31st March, 2018, 99.50% of the share capital was held in dematerialised form. Break-up of shares
held in physical and dematerialised form as on 31st March, 2018:
Shareholding No. of Folios % of Total No. of Shares % of Total
Physical Mode 1002 0.50 25146425 3.12

Dematerialised Mode 200094 99.50 779972739 96.88
Total 201096 100 805119164 100
As to the liquidity, the Company’s equity shares are traded in the ‘A’/Forward group and have been
included in the S&P CNX NIFTY of National Stock Exchange of India Limited. They are among the select
scrips in which derivatives trading has been permitted in the form of stock futures and stock options.
Outstanding GDRs/ADRs/Warrants
The GDRs are listed on Luxembourg Stock Exchange and the underlying equity shares are listed on BSE Limited
and National Stock Exchange of India Limited. Each GDR represents one underlying equity share of the
Company. As on 31st March, 2018, 1,09,96,496 GDRs were outstanding.
The Company has not issued any American Depository Receipts (ADRs)/Warrants.
The Company has granted stock options to its employees and those of its subsidiaries under the Employee
Stock Option Scheme(s). The Company allots equity shares from time to time on exercise of stock options by
the employees pursuant to the provisions of the Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014 and the terms and conditions of the Employee Stock Option Scheme(s). As on 31st
March, 2018, 14,29,754 stock options were outstanding.
Plant locations as on 31st March, 2018

Plant Type Plant Address
Active Pharmaceutical
Virgonagar, Old Madras Road, Bengaluru – 560 049, Karnataka
Ingredients (API) Manufacturing
Bommasandra-Jigani Link Road, Industrial Area, KIADB 4th Phase, Bengaluru
Facility
– 560 099, Karnataka
Active Pharmaceutical
MIDC, Patalganga - 410220, District: Raigad, Maharashtra
Ingredients (API) and
MIDC Industrial Area, Kurkumbh - 413802, Daund, District: Pune,
Formulations
Maharashtra
Manufacturing Facility
Formulations Manufacturing Verna Industrial Estate, Verna - 403722, Salcette, Goa
Facility Village Malpur Upper, P.O. Bhud, Nalagarh, Baddi – 173 205,
District: Solan, Himachal Pradesh
Village Kumrek, Rangpo - 737132, District: East Sikkim, Sikkim
Indore SEZ, Phase II, Sector III, Pharma Zone, P.O. Pithampur – 454 774,
District: Dhar, Madhya Pradesh
Taza Block, Amba TareythangIllaka, Rorathang- 737 133, District: East Sikkim,
Sikkim
Declaration of Compliance with the Code of Conduct
I hereby confirm that the Company has obtained from all the members of the Board and senior
management personnel, affirmation that they have complied with the Code of Conduct laid down by the
Company for the financial year ended 31st March, 2018.
For Cipla Limited
Date: 21st May, 2018 Umang Vohra

Place: Mumbai Managing Director and
Global Chief Executive Officer
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An Dr Y. K. Non-
21-07-1972 45.7 5 (5) Yes Nil -
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Radhakrishnan(3) 27-08-2015 2.6 5 (5) Yes 2 -
Nil
(DIN: 02313000)
Ms Samina
Vaziralli
(DIN: 00027923) Executive
Mr Umang Direc 16-07- 2013 4.7 5 (5) Yes 7 -
Vohra (DIN tors 2
:
01-
02296740) 12-02-2014 4.1 5 (5) Yes Nil -
09-
Mr Ashok Nil
2016
Sinha (DIN: • Reliance Industries Ltd
00070477) 5 (5) • Reliance Jio Infocomm Ltd
Dr Peter
Mugyenyi Nil
-
(DIN: M
Nil
06799942) aki
Mr Adil • Network18 Media & ng
Independ 23-07-2014 3.7 5 (5) 7
Zainulbhai(4) Investments Ltd a
ent Yes 7
(DIN: dif
Director • TV18 Broadcast Ltd
06646490) fer
s • Larsen & Toubro Ltd en
Ms ce
13-11-2014 3.3 5 (5) Yes 2 • Ceat Ltd to
Punita
Nil
Lal (DIN: pat
03412604 ien
• Max Financial Services
) ts.
Ltd
Ou
Ms Naina Lal
06-11-2015 2.4 5 (5) • Larsen and 3 Nil r
Kidwai (DIN: Toubro Ltd ins
5
00017806)(4) pir
• Altico Capital
India Private Ltd
ati
on
for
inn
ov
ati
on.
No. of Committee
No.
Tenure Attendance Memberships/ Chairmanships
No. of of
as on at last Name of other listed held in other Indian public
Original Board Meetings Directorships
31st AGM companies where he/she companies as on 31st March,
Name Category Date of attended (total held in
March, held is a Director as on 31st 2018(2)
Appointment held in the FY other Indian
2018 on 11th March, 2018(1)
17- 18 during companies as Chairman-
(in years) August, Me
mberships
tenure) 2018
on 31st March, ships
2017
• Tata Global Beverages Ltd
• Godrej Consumer Products Co
Ms Ireena Vittal Ltd rp
01-12-2016
(DIN: 05195656) 1.3 4 (5) Yes 7 • Wipro Ltd 7 Nil or
• The Indian Hotels Company at
Ltd e
• Titan Company Ltd Ov
Mr Peter Lankau er
10-01-2017 1.2 5 (5) Yes Nil - Nil Nil vie
(DIN: 07688110)
w
02
(1)
All the directorships held
by the directors in other listed -
companies are in the capacity
of Independent Directors.
(2)
Committees considered for
the purpose are those St
prescribed under the at
Listing Regulations viz. ut
audit committee and or
stakeholders relationship y
committee of Indian public Re
limited companies other po
than Cipla Limited. rts
(3)
Non-executive director 78
w.e.f. 12th November, 2017. -
Re
(4)
Out of five Board meetings
held during the year, attended
po
four meetings in person and
rt one meeting through video
on conferencing. Fin
Co an
rp Except Dr Y. K. Hamied and Mr cia
or M. K. Hamied, who are brothers l
at and Ms Samina Vaziralli, who is St
e daughter of Mr M. K. Hamied at
G and niece of Dr Y. K. Hamied, e
ov none of the Directors are m
er relatives of any other Director. en
na ts
nc Shareholding of Dr Y. K. Hamied, 16
Mr M. K. Hamied and Mr 7-
161 S.Radhakrishnan, Non-Executive
Directors as on 31 st March, 2018 is
as under:
Sr. No Name of
DirectorNo of shares
held
1 Dr Y. K. Hamied
166742687
2 Mr M. K. Hamied
31640000
3 Mr S.
Radhakrishnan 49000
Apart from the above three

directors, no other non-executive
director of the Company holds any
equity shares or any convertible
instruments in the Company.
Exhibit A – Nomination, Remuneration and Company from time to time.

Board Diversity Policy (b) “Company” means Cipla Limited.
Preamble and Title
This Policy shall be called ‘the Nomination,

Remuneration and Board Diversity Policy (the
“Policy”).
The Board of Directors (the “Board”) on the

recommendation of the Nomination and Remuneration
Committee has approved and adopted this revised
Policy in compliance with the requirements under
the provisions of the Companies Act, 2013 and rules
made thereunder (the “Act”), and the Securities and
Disclosure Requirements) Regulations, 2015 (“the Listing
Regulations”) as amended from time to time.
Objective
This Policy is intended to achieve the following

objectives:
a) To lay down criteria and terms and conditions

with regard to identifying persons who are
qualified to become Directors (Executive and
Non-executive including Independent Directors),
Key Managerial Personnel and persons who may
be appointed in senior management positions.
b) To provide framework for remuneration of the

Directors, Key Managerial Personnel and Senior
Management Personnel and align with the
Company’s business strategies, values, key
priorities and goals.
c) To provide for rewards linked directly to the

effort, performance, dedication and
achievement of Company’s targets by the
employees.
d) To lay down approach for Board diversity.
Scope
This Policy does not cover temporary or contractual

employees, trainees, apprentices, consultants engaged
on a retainer basis or otherwise and casual labour.
Definitions
(a) “Applicable Law” includes any statute, law,

regulation, ordinance, rule, judgment, order,
decree, bye-law, clearance, directive, guideline,
notifications and clarifications or other
governmental instruction and/or mandatory
standards as may be applicable to the

(c) “Employee” means any person who is in / industry, marketing, technology, finance and
the permanent employment of the other disciplines relevant to the business etc.
Company. and such other factors that the Committee
might consider relevant and applicable from
(d) “Senior Management Personnel” mean time to time towards achieving a diverse Board.
personnel of the Company who are members
of its Core Management Team (i.e. c) The proposed candidate shall possess
Management Council Members) excluding appropriate expertise, experience and knowledge
Board Members comprising all members of in one or more fields of finance, law, management,
management one level below the executive sales, marketing,
directors (except administrative support
staff/executive assistants), including the
Functional Heads.
Words and expressions not defined in this

policy shall have the same meaning as
contained in the Act and the Listing
Regulations.
Applicability of Parts
a) Part I provides for criteria for appointment

of Directors, Key Managerial Personnel,
Senior Management Personnel and other
employees;
b) Part II deals with remuneration of

Directors, Key Managerial Personnel,
employees (parameters, components and
limit).
Part I: Appointment
General Criteria
a) The Board shall comprise of optimum

number of Directors as is necessary to
effectively manage the affairs of the
Company. Subject to a minimum of 3 and
maximum of 15, the Board shall have an
appropriate combination of Executive, Non-
Executive, Independent and Woman
Directors.
b) The Nomination and Remuneration

Committee shall be responsible for
identifying suitable candidate for
appointment as Director of the Company.
While evaluating a person for appointment
/ re- appointment as Director, the
Committee shall consider and evaluate
number of factors including but not limited
to background, knowledge, skills, abilities
(ability to exercise sound judgement),
professional experience and functional
expertise, educational and professional
background, personal accomplishment, age,
experience of pharma sector
Governance
administration, medical science, pharmaceutical, Does not hold directorship in more than three
corporate governance or such other areas listed entities if serving as a whole time director
related to the Company’s business as in any listed entity.
determined by the Nomination and
Remuneration Committee.
d) During the term of the office, every director

shall -
i. uphold ethical standards of integrity and

probity;
ii. act objectively and constructively;
iii. exercise responsibilities in a bona-fide

manner in the interest of the Company;
iv. shall be free from any disqualifications as

stipulated under the Act as well as the
Listing Regulations;
v. shall be able to devote sufficient time and

efforts in discharge of duties and
responsibilities effectively.
Appointment of Managing Director/ Whole-Time Director
The Board based on the recommendation of the

Nomination and Remuneration Committee shall be
responsible for identifying suitable candidate for the
position of Managing Director/Whole-time Director.
The terms and conditions of the appointment shall be

in accordance with the provisions of Applicable
Law.
Appointment of Independent Director
While evaluating a person for appointment / re-

appointment as an Independent Director, the
Committee shall ensure that the proposed
candidate satisfies the following additional criteria:
Meet the baseline definition and criteria of

“independence” as set out in section 149 of the
Act, the Listing Regulations and other
applicable laws.
Should not hold any board / employment

position with a competitor in the geographies
where the Company is operating. However, the
Board may in special circumstances waive this
requirement.
Has attained minimum age of 25 years and is

not older than 70 years.
Does not hold directorship in more than seven

listed entities.
An Independent Director shall be under the be approved by the shareholders of the
obligation to inform the Board of Directors of any Company.
change in circumstances which may affect his/her
independence.
The re-appointment / extension of term of the

Director shall be on the basis of their performance
evaluation report.
Appointment of Key Managerial Personnel and Senior

Management Personnel (Not Being a Director)
a) The Nomination and Remuneration Committee

shall be responsible for identifying suitable
candidate for the position of Key Managerial
Personnel i.e. Chief Financial Officer, Company
Secretary, and other Senior Management
Personnel;
b) The appointment of Key Managerial Personnel

and Senior Management Personnel shall be
approved by the Board on recommendation of
the Nomination and Remuneration Committee;
c) While evaluating a person for appointment /

re- appointment in a senior management
position, the management shall considers
various factors including individual’s
background, competency, skills, abilities (viz.
leadership, ability to exercise sound
judgement), educational and professional
background, personal accomplishment, age,
relevant experience and understanding of
related field viz. marketing technology, finance
or such other discipline relevant to present and
prospective operations of the Company;
d) The appointee while continuing in his / her

office shall not engage in any business or
commercial activity, which might detrimentally
conflict with the interest of the Company.
Appointment of Other Employees
The appointment of other employees shall be

made on the basis of the experience, qualification,
expertise of the individual as well as the roles and
responsibilities required for the position and shall
be approved by the Human Resource Department.
Part II: Remuneration
Board Members
a) The overall limits of remuneration of the board

members including executive board members
(i.e. managing director, whole-time director,
executive directors etc.) are governed by the
provisions of section 197 of the Act and shall
b) Within the overall limit approved by the the board / board committee meeting to those directors
shareholders, on the recommendation of the who attend the meeting, the Commission shall be
Nomination and Remuneration Committee, the payable at the end of the financial year after approval
Board shall determine the remuneration. The Board of the annual financial statements by the Board of
can determine different remuneration for different directors.
Directors on the basis of their role, responsibilities,
duties, time involvement etc.
Remuneration to Managing Director/Whole-Time Director
The shareholders shall approve maximum permissible

amount which can be paid to the Managing
Director/ Whole-time Director. Within the overall
limits approved by the shareholders, on the
recommendation of the Nomination and
Remuneration Committee, the Board shall have the
authority to revise the remuneration /
remuneration structure from time to time.
Revision in the remuneration of the Managing

Director/ Whole-time Director shall be linked to their
overall performance, Company performance, future
plans, market practice and environment and any other
relevant factors.
The key components of remuneration package of

the Managing Director/Whole-time Director shall
include fixed salary, perquisites, allowances,
joining bonus, variable bonus, commission, retiral
benefits, other benefits in accordance with the
market practice.
The Managing Director / Whole-time Director (other

than promoters) shall also be eligible for the grant of
stock options, under the applicable Employee Stock
Option Scheme of the Company, as may be decided
by the Nomination and Remuneration Committee
from time to time.
Remuneration to Non-Executive Directors
Pursuant to the provisions of section 197 of the Act

and the shareholders’ approval, the Board has
approved the following remuneration for Non-
Executive Directors (including Independent Directors):
Non-Executive Directors shall be entitled to sitting

fees of H 50,000 per board meeting and per board
committee meetings.
The Non-Executive Directors shall be entitled to

such commission as may be approved by the Board
within the overall limits approved by the shareholders.
In no case the commission shall exceed 1% of the
profits of the Company computed as per the
applicable provisions of the Act
The sitting fee shall be payable immediately after

The Promoter Directors and the Independent Management Personnel and other employees of the
Directors will not be entitled for grant of Stock Company (not being a Director) shall also be
Options. eligible for the grant of stock options, wherever
deemed fit, under the applicable Employee Stock
All the Directors shall be entitled to Option Scheme of the Company, as may be
reimbursement of reasonable expenditure decided by the Nomination and Remuneration
incurred by him/her for attending Committee from time to time.
Board/Committee meetings, general meetings,
court convened meetings, meetings with
shareholders/creditors/management, site
visits, induction and training programmes and
in obtaining professional advice from
independent advisors in the furtherance of
his/her duties as a director.
Remuneration to Key Managerial Personnel, Senior

Management Personnel and Other Employees (Not Being
a Director)
The remuneration of Key Managerial Personnel

(not being a Director), at the time of
appointment shall be decided by the Board. The
remuneration of Senior Management Personnel
and other employees shall be as per the
compensation and appraisal policy of the
Company.
The remuneration of Key Managerial Personnel,

employees of the Company (not being director)
shall comprise of one or more of the following
components:
a) Fixed Salary;
b) Perquisites, Allowances and Retiral benefits;
c) Joining or Retention Bonus, where deemed fit;
d) Long term Incentive or retention incentive,

where deemed fit;
e) Performance-linked bonus by whatever

named called which shall be a cumulative
outcome of both the individual target
achievement level as well as the Company’s
performance;
f) Housing/other loans linked at such rate of

interest and terms of repayment as may be
decided by the Human Resource department in
consultation with Managing Director or CEO or
CFO as the case may be;
g) Other benefits in accordance with the

market practices depending upon criticality
of the role, criticality of incumbent, risk of
resignation, any other relevant factors.
The Key Managerial Personnel, Senior

Revision in remuneration of Key Managerial ability to fulfil required time commitments in the
Personnel, Senior Management Personnel shall be case of Independent and Non-Executive
decided by Managing Director and Global Chief Directors will also be taken into account;
Executive Officer or as per the authority given by
the Board of Directors at the time of appointment.
The remuneration including revision in remuneration

of other employees shall be decided by the Human
Resources Department in consultation with the matrix
manager within the overall framework of compensation
and appraisal policy of the Company.
Directors and Officers Liability Insurance Policy
All directors and officers (including Key Managerial

Personnel and Senior Management Personnel) of
the Company would be covered by the requisite
Directors and Officers Liability Insurance Policy.
Board Diversity
a) The Company acknowledges the importance of

diversity in its broadest sense in the
Boardroom as a driver of Board effectiveness.
Diversity encompasses diversity of perspective,
experience, education, background, ethnicity
and personal attributes. The Company
recognizes that gender diversity is a significant
aspect of diversity and acknowledges the role
that women with the right skills and experience
can play in contributing to diversity of
perspective in the Boardroom;
b) The Nomination and Remuneration Committee

shall review and evaluate Board composition to
ensure that the Board and its Committees have
the appropriate mix of skills, experience,
independence and knowledge to ensure their
continued effectiveness. In doing so, it will take
into account diversity, including diversity of
gender, amongst other relevant factors. The
Committee will ensure that no person is
discriminated against on grounds of religion,
race, gender, pregnancy, childbirth or related
medical conditions, national origin or ancestry,
marital status, age, sexual orientation or any
other personal or physical attribute which does
not speak to such person’s ability to perform as
a Board member;
c) All appointments to the Board (as recommended

by the Nomination & Remuneration Committee)
shall be made on merit while taking into
account suitability for the role, Board balance
and composition, the required mix of skills,
background and experience (including
consideration of diversity and ethnicity). Other
relevant matters such as independence and the
d) The Nomination & Remuneration Committee shall a. “Board” means the Board of Directors of Cipla
monitor and periodically review the Board Limited.
Diversity and recommend to the Board so as to
improve one or more aspects of its diversity
and measure progress accordingly;
e) The Company will be able to ensure Board

diversity if shareholders are able to judge for
themselves whether the Board as constituted
is adequately diverse. The Company shall
continue to provide sufficient information to the
shareholders about the qualifications, expertise
and characteristics of each Board Member.
Administration, Review and Amendment of The Policy
The Nomination & Remuneration Committee shall

monitor and periodically review the Policy and
recommend the necessary changes to the Board
for its approval.
The Global Chief Financial Officer and the

Company Secretary are jointly authorised to
amend the policy to give effect to any
changes/amendments notified by Ministry of
Corporate Affairs or the Securities and Exchange
Board of India. The amended policy shall be
placed before the Board for noting and ratification.
The Board shall have the power to amend any of

the provisions of this Policy, substitute any of the
provisions with a new provision or replace this
Policy entirely with a new Policy.
Exhibit B – Dividend Distribution Policy

Title
This Policy shall be called ‘Dividend Distribution

Policy’.
Commencement
This Policy shall come into force for accounting

periods beginning from 1st April, 2016.
Objective
a. This Policy is framed in accordance with the

requirement under Regulation 43A of the
Securities and Exchange Board of India (Listing
Regulations, 2015 (including any amendments
thereof).
b. The Company shall make appropriate disclosures

as required under the Listing Regulations.
Definitions
b. “Company” means Cipla Limited. 9. Provisioning for financial implications arising out
of unforeseen events and/or contingencies;
c. “Policy” means this Policy, as amended from time
to time.
d. “Listing Regulations” means the Securities and

Disclosure Requirements) Regulations, 2015 (including
any amendments thereof).
e. “Financial year” shall mean the period starting

from 1st day of April and ending on 31st day of
March every year.
Declaration of Dividend
The declaration of dividend (including interim dividend)

would be subject to compliance with the applicable
provisions of the Companies Act, 2013 and rules made
thereunder as amended from time to time.
Parameters For Dividend Payout
a. The circumstances under which the shareholders may or

may not expect dividend:
The Company intends to offer maximum return on

investment to the shareholders keeping in mind the
underlying growth and future of the Company.
However, the Board may consider not declaring any
dividend or declare a lower rate of dividend based
on the following:
1. Prospective growth opportunities/threats/

concerns of the Company;
2. Inadequacy or absence of profits;
3. Higher working capital requirements for
business operations of the Company.
b. Financial Parameters including Internal Factors that

shall be considered while declaration of dividend:
The financial parameters which would be

considered while declaration of dividend by the
Board are as follows:
1. Profits of the Company;

2. Past dividend pattern;
3. Major capital expenditure to be incurred by
the Company;
4. Cash flow requirements of the Company;
5. Debt-equity ratio of the Company;
6. Cost of borrowing of the Company, keeping in
view the growth opportunities;
7. Debt obligations of the Company;
8. Investments in new business;
10. Reputation of the Company; the provisions with a new provision or replace this
Policy entirely with a new Policy.
11. Restrictions/covenants if any, contained in
any lender agreements or any other
arrangement or agreement entered into
by the Company.
c. External Factors that shall be considered while

declaration of dividend:
Certain external factors could compel the Board

of the Company to reflect on the dividend
payout for any financial year of the Company.
Some of the external factors affecting the
Company’s dividend payment are:
1. Regulatory requirements;
2. Economic environment;
3. Political/geographical situations;
4. Inflation rate;
5. Industry Outlook for future years.
d. Utilization of Retained Earnings:
The Company believes in cash retention for

growth, expansion and diversification including
acquisitions to be made by it, and also as a
means to meet contingency. The retained
earnings of the Company may be used in any of
the following ways:
1. Capital expenditure for working capital;

2. Organic and/or inorganic growth;
3. Investment in new business(es);
4. Additional investment in existing business(es);
5. Declaration of dividend;
6. Capitalisation of shares;
7. Buy back of shares;
8. General corporate purposes,
including contingencies;
9. Any other permitted usage as per the
Companies Act, 2013.
e. Parameters with regard to various classes of shares:
Presently, the issued share capital of the

Company comprises of only one class of
equity shares of H.2 each. In the event of the
Company issuing any other class(es) of
shares, the Board shall consider and specify
the other parameters to be adopted with
respect to such class(es) of shares.
Amendments
The Board shall have the power to amend any
of the provisions of this Policy, substitute any of
Independent Auditor’s Report

To the Members of Cipla Limited
Auditor’s responsibility
Report on the standalone financial 3. Our responsibility is to express an opinion on

these standalone financial statements based
statements
on our audit.
1. We have audited the accompanying standalone
4. We have taken into account the provisions of
financial statements of Cipla Limited (‘the
the Act, the accounting and auditing standards
Company’), which comprise the Balance Sheet
and matters which are required to be included
as at 31 March 2018, the Statement of Profit
in the audit report under the provisions of the
and Loss (including Other Comprehensive
Act and the Rules made thereunder.
Income), the Cash Flow Statement and the
Statement of Changes in Equity for the year 5. We conducted our audit in accordance with the
then ended, and a summary of the significant Standards on Auditing specified under Section
accounting policies and other explanatory 143(10) of the Act. Those Standards require
information. that we comply with ethical requirements and
plan and perform the audit to obtain
reasonable assurance about whether these
Management’s responsibility for the standalone financial statements are free from
standalone financial statements material misstatement.
2. The Company’s Board of Directors is 6. An audit involves performing procedures to

responsible for the matters stated in Section obtain audit evidence about the amounts and
134(5) of the Companies Act, 2013 (‘the Act’) the disclosures in the financial statements.
with respect to the preparation of these The procedures selected depend on the
standalone financial statements that give a auditor’s judgment, including the assessment of
true and fair view of the state of affairs the risks of material misstatement of the
(financial position), profit or loss (financial financial statements, whether due to fraud or
performance including other comprehensive error. In making those risk assessments, the
income), cash flows and changes in equity of auditor considers internal financial controls
the Company in accordance with the relevant to the Company’s preparation of the
accounting principles generally accepted in financial statements that give a true and fair
India, including the Indian Accounting view in order to design audit procedures that
Standards (‘Ind AS’) specified under Section are appropriate in the circumstances. An audit
133 of the Act. This responsibility also includes also includes evaluating the appropriateness of
maintenance of adequate accounting records the accounting policies used and the
in accordance with the provisions of the Act for reasonableness of the accounting estimates
safeguarding the assets of the Company and made by the Company’s Directors, as well as
for preventing and detecting frauds and other evaluating the overall presentation of the
irregularities; selection and application of financial statements.
appropriate accounting policies; making 7. We believe that the audit evidence we have
judgments and estimates that are reasonable obtained is sufficient and appropriate to
and prudent; and design, implementation and provide a basis for our audit opinion on these
maintenance of adequate internal financial standalone financial statements.
controls, that were operating effectively for
ensuring the accuracy and completeness of the
accounting records, relevant to the preparation Opinion
and presentation of the standalone financial 8. In our opinion and to the best of our
statements that give a true and fair view and are information and according to the explanations
free from material misstatement, whether due to given to us, the aforesaid standalone financial
fraud or error. statements give the
Independent Auditor’s Report on the Standalone Financial Statements 16

information required by the Act in the manner the Company as on 31 March 2018 in
so required and give a true and fair view in conjunction
conformity with the accounting principles
generally accepted in India including Ind AS
specified under Section
133 of the Act, of the state of affairs (financial
position) of the Company as at 31 March 2018,
and its profit (financial performance including
other comprehensive income), its cash flows
and the changes in equity for the year ended
on that date.
Report on other legal and regulatory

requirements
9. As required by the Companies (Auditor’s
Report) Order, 2016 (‘the Order’) issued by
the Central Government of India in terms of
Section 143(11) of the Act, we give in the
Annexure I a statement on the matters
specified in paragraphs 3 and 4 of the Order.
10. Further to our comments in Annexure I, as

required by Section 143(3) of the Act, 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 purpose 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 standalone financial statements dealt

with by this report are in agreement with
the books of account;
d) In our opinion, the aforesaid standalone

financial statements comply with Ind AS
specified under Section 133 of the Act;
e) On the basis of the written representations

received from the directors and taken on
record by the Board of Directors, none of
the directors is disqualified as on 31 March
2018 from being appointed as a director in
terms of Section 164(2) of the Act;
f) We have also audited the internal financial

controls over financial reporting (IFCoFR) of
with our audit of the standalone financial
statements of the Company for the year
ended on that date and our report dated 22
May 2018 as per Annexure II expressed an
unmodified opinion.
g) 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, as detailed in Note 40 to

the standalone financial statements,
has disclosed the impact of pending
litigations on its financial position;
ii. The Company did not have any long-

term contracts including derivative
contracts for which there were any
material foreseeable losses;
iii. There has no delay in transferring

amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company.
iv. The disclosure requirements relating to

holdings as well as dealings in specified
bank notes were applicable for the
period from 8 November 2016 to 30
December 2016 which are not relevant
to these standalone financial
statements. Hence, reporting under
this clause is not applicable.
For Walker Chandiok & Co LLP

Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Ashish Gupta
Partner
Membership No.: 504662
Place: New Delhi

Date: 22 May 2018
Annexure I to the Independent Auditor’s Report of even date to the members of Cipla
Limited, on the standalone financial statements for the year ended 31 March 2018
Annexure I (b) The schedule of repayment of principal has

Based on the audit procedures performed for the been stipulated and the receipts of the
purpose of reporting a true and fair view on the principal amount are regular;
financial statements of the Company and taking (c) There is no overdue amount in respect of
into consideration the information and explanations loans granted.
given to us and the books of account and other
records examined by us in the normal course of (iv) In our opinion, the Company has complied
audit, and to the best of our knowledge and belief, with the provisions of Sections 185 and 186 of
we report that: the Act in respect of loans given, investments
made, guarantees and security.
(i) (a) The Company has maintained proper
records showing full particulars, including (v) In our opinion, the Company has not accepted
quantitative details and situation of any deposits within the meaning of Sections
property, plant and equipment. 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as
(b) The Company has a regular program of amended). Accordingly, the provisions of clause
physical verification of its fixed assets 3(v) of the Order are not applicable.
under which fixed assets are verified in a
phased manner over a period of three (vi) We have broadly reviewed the books of account
years, which, in our opinion, is reasonable maintained by the Company pursuant to the
having regard to the size of the Company Rules made by the Central Government for the
and the nature of its assets. In accordance maintenance of cost records under sub-section
with this program, certain fixed assets were (1) of Section 148 of the Act in respect of
verified during the year and no material Company’s products and are of the opinion that,
discrepancies were noticed on such prima facie, the prescribed accounts and records
verification. have been made and maintained. However, we
have not made a detailed examination of the cost
(c) The title deeds of all the immovable records with a view to determine whether they
properties (which are included under the are accurate or complete.
head ‘Property, plant and equipment’) are
held in the name of the Company. (vii) (a) The Company is regular in depositing
undisputed statutory dues including
(ii) In our opinion, the management has provident fund, employees’ state insurance,
conducted physical verification of inventory at income-tax, goods and service tax, sales-
reasonable intervals during the year and no tax, service tax, duty of customs, duty of
material discrepancies between physical excise, value added tax, cess and other
inventory and book records were noticed on material statutory dues, as applicable, to
such verification. Discrepancies noticed on the appropriate authorities. Further, no
physical verification have been properly dealt undisputed amounts payable in respect
with in the books of account. thereof were outstanding at the year- end
for a period of more than six months from
(iii) The Company has granted interest free the date they become payable.
unsecured loans to one company covered in the
register maintained under Section 189 of the (b) There are no dues in respect of sales-tax,
Act; and with respect to the same: service tax and duty of customs, that have
not been deposited with the appropriate
(a) In our opinion the terms and conditions of authorities on account of any dispute.
grant of such loans are not, prima facie,
prejudicial to the company’s interest.
The dues outstanding in respect of income-tax, duty of excise and value added tax on account of any
dispute, are as follows:
Statement of Disputed Dues
Name of the statute Nature of Amount Amount Period to which Forum where
dues (J paid under the amount dispute is pending
in Protest (J relates
crore) in crore)
Income Tax Act, 1961 Income tax 265.13 183.08 2008-09 to 2014-15 CIT Appeals
The Central Excise Act, Excise
1944 duty 65 2 2008-09 to 2015-16 CESTAT Bangalore
The Central Excise Act, Excise Commissioner
1944 duty 3 - 2007-08 to 2014-15 Appeals
1944 duty 40 2 2007-08 to 2015-16 CESTAT Mumbai
1944 duty 7 1 2011-12 to 2013-14 CESTAT Kolkata
The Central Excise Act, Excise Additional
1944 duty 1 - 2015-16 to 2016-17 Commissioner
The Central Excise Act, Excise Principal
1944 duty 8 - 2015-16 to 2017-18 Commissioner
Bihar Vat Act, 2005 VAT 1 - 2013-14 Tribunal
Bihar Vat Act, 2005 VAT 1 - 2014-15 to 2016-17 Appeal Court
Gujarat Vat Act, 2005 VAT 14 - 2013-14 JCCT- Ahmedabad
Maharashtra Value DY. Commissioner
Added Tax, 2002 VAT 1 - 2002-03 to 2012-13 of Sales tax-LTU
Rajasthan Vat Act, Rajasthan Tax
2003 VAT 1 - 2002-03 to 2012-13 Board - Ajmer
Rajasthan Vat Act, Rajasthan Tax
2003 VAT 3 - 2008-09 to 2012-13 Board - Ajmer
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial
institutions or government during the year. The Company did not have any outstanding debentures
during the year.
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt
instruments) and did not have any term loans outstanding during the year. Accordingly, the provisions
of clause 3(ix) of the Order are not applicable.
(x) According to the information and explanation given us, no fraud by the Company or on the company
by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been paid and provided by the company in accordance with the requisite
approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the
Order are not applicable.
(xiii) In our opinion all transactions with the

(xvi) The company is not required to be
related parties are in compliance with Sections
registered under Section 45-IA of the Reserve
177 and 188 of Act, where applicable, and the
Bank of India Act, 1934.
requisite details have been disclosed in the
financial statements etc., as required by the
applicable Ind AS.
Chartered Accountants
(xiv) During the year, the company has not Firm’s Registration No.: 001076N/N500013
made any preferential allotment or private
placement of shares or fully or partly Ashish Gupta
convertible debentures. Accordingly, provision Partner
of clause 3(xiv) of the order are not applicable. Membership No.: 504662
(xv) In our opinion, the company has not entered

into any non-cash transactions with the Place: New Delhi
directors or persons connected with them Date: 22 May
covered under Section 192 of the Act. 2018
Annexure II
Independent Auditor’s Report on the ICAI. Those Standards and the

Internal Financial Controls under Clause
(i) of Sub- section 3 of Section 143 of the
Companies Act, 2013 (‘the Act’)
1. In conjunction with our audit of the standalone
financial statements of Cipla Limited (‘the
Company’) as at and for the year ended 31
March 2018, we have audited the internal
financial controls over financial reporting
(‘IFCoFR’) of the Company as at that date.
Management’s responsibility for internal

financial controls
2. The Company’s Board of Directors is
responsible for establishing and maintaining
internal financial controls based on internal
control financial reporting criteria established
by the company considering the essential
components of internal control stated in the
guidance note on audit of Internal Financial
Control over Financial Reporting (“the Guidance
Note”) issued by the Institute of Chartered
Accountant of India (ICAI). These
responsibilities include the design,
implementation and maintenance of adequate
internal financial controls that were operating
effectively for ensuring the orderly and
efficient conduct of the Company’s business,
including adherence to the Company’s policies,
the safeguarding of its assets, the prevention
and detection of frauds and errors, the
accuracy and completeness of the accounting
records, and the timely preparation of reliable
financial information, as required under the
Act.
3. Our responsibility is to express an opinion on
the Company’s IFCoFR based on our audit. We
conducted our audit in accordance with the
Standards on Auditing issued by the Institute
of Chartered Accountants of India (‘ICAI’) and
deemed to be prescribed under Section 143(10)
of the Act, to the extent applicable to an audit
of IFCoFR, and the Guidance Note on Audit of
Internal Financial Controls Over Financial
Reporting (‘the Guidance Note’) issued by the
Guidance Note require that we comply with statements.
ethical requirements and plan and perform
the audit to obtain reasonable assurance
about whether adequate IFCoFR were
established and maintained and if such
controls operated effectively in all material
respects.
4. Our audit involves performing procedures to

obtain audit evidence about the adequacy of
the IFCoFR and their operating
effectiveness. Our audit of IFCoFR includes
obtaining an understanding of IFCoFR,
assessing the risk that a material weakness
exists, and testing and evaluating the
design and operating effectiveness of
internal control based on the assessed risk.
The procedures selected depend on the
auditor’s judgement, including the assessment
of the risks of material misstatement of the
financial statements, whether due to fraud
or error.
5. We believe that the audit evidence we

have obtained is sufficient and appropriate
to provide a basis for our audit opinion on
the Company’s IFCoFR.
Meaning of internal financial controls over

financial reporting
6. A company’s IFCoFR is a process designed to
provide reasonable assurance regarding the
reliability of financial reporting and the
preparation of financial statements for
external purposes in accordance with
generally accepted accounting principles.
A company’s IFCoFR include those policies
and procedures that (1) pertain to the
maintenance of records that, in reasonable
detail, accurately and fairly reflect the
transactions and dispositions of the assets
of the company; (2) provide reasonable
assurance that transactions are recorded
as necessary to permit preparation of
financial statements in accordance with
generally accepted accounting principles,
and that receipts and expenditures of the
company are being made only in
accordance with authorisations of
management and directors of the
company; and (3) provide reasonable
assurance regarding prevention or timely
detection of unauthorised acquisition, use, or
disposition of the company’s assets that
could have a material effect on the financial
Annexure II
Inherent limitations of internal financial established by the company considering the

essential components of internal control stated
controls over financial reporting
in the guidance note on audit of Internal
7. Because of the inherent limitations of IFCoFR, Financial Control over Financial Reporting
including the possibility of collusion or issued by the Institute of Chartered Accountant
improper management override of controls, of India.
material misstatements due to error or fraud
may occur and not be detected. Also,
projections of any evaluation of the IFCoFR to
future periods are subject to the risk that the
IFCoFR may become inadequate because of For Walker Chandiok & Co LLP
changes in conditions, or that the degree of Chartered Accountants
compliance with the policies or procedures Firm’s Registration No.: 001076N/N500013
may deteriorate.
Ashish Gupta
Opinion Partner
8. In our opinion the Company has, in all Membership No.: 504662
material respects, adequate internal financial
controls over financial reporting and such
controls were operating effectively as at 31 Place: New Delhi
March 2018, based on internal control financial Date: 22 May 2018
reporting criteria
Standalone Balance Sheet
as at 31st March, 2018
H in Crore
Particulars Notes As at As at
31st March, 2018 31st March, 2017
Assets
(1) Non-current assets
(a) Property, plant and equipment 2 4,158.37 4,095.16
(b) Capital work-in-progress 2 435.28 540.52
(c) Investment property 3 0.32 0.32
(d) Intangible assets 4 161.66 140.10
(e) Intangible assets under development 4 27.32 15.25
(f) Financial assets
(i) Investments 5 3,597.24 3,647.71
(ii) Loans 6 233.13 215.75
(iii) Other financial assets 7 40.86 57.08
(g) Advance tax (net) 283.42 192.24
(h) Deferred tax assets (net) 8 46.80 59.54
(i) Other non-current assets 9 172.40 298.21
9,156.80 9,261.88
(2) Current assets
(a) Inventories 10 3,037.98 2,653.50
(b) Financial assets
(i) Investments 11 1,039.74 638.18
(ii) Trade receivables 12 2,336.32 1,938.79
(iii) Cash and cash equivalents 13 217.45 44.60
(iv) Bank balances other than cash and cash equivalents 14 10.08 13.86
(v) Loans 15 17.74 9.53
(vi) Other financial assets 16 470.71 423.42
(c) Other current assets 17 808.15 623.46
7,938.17 6,345.34
Total assets 17,094.97 15,607.22
Equity and liabilities
(1) Equity
(a) Share capital 18 161.02 160.90
(b) Other equity 19 13,952.50 12,639.61
14,113.52 12,800.51
(2) Share application money, pending allotment 19 - 0.00
(3) Non-current liabilities
(a) Financial liabilities
(i) Borrowings 20 - 0.07
(ii) Other financial liabilities 21 50.11 45.06
(b) Provisions 22 124.45 125.61
(c) Other non-current liabilities 23 75.19 80.14
249.75 250.88
(4) Current liabilities
(i) Borrowings 20 174.43 324.26
(ii) Trade payables 24 1,580.02 1,298.21
(iii) Other current financial liabilities 25 273.07 440.75
(b) Other current liabilities 26 306.00 229.83
(c) Provisions 22 398.18 262.78
2,731.70 2,555.83
Total equity and liabilities 17,094.97 15,607.22
Significant accounting policies and key accounting estimates and judgements 1
The accompanying notes form an integral part of these standalone financial 2-52
statements.
As per our report of even date For and on behalf of the Board of
Directors For Walker Chandiok & Co LLP
Chartered Accountants Umang Vohra Samina Vaziralli
Firm Reg. No. 001076N/N500013 Managing Director and Executive
Global Chief Executive Officer Vice-Chairperson
Ashish Gupta Kedar Upadhye Rajendra Chopra
Partner Global Chief Financial Officer Company Secretary
Membership No. 504662
New Delhi, 22nd May, 2018 Mumbai, 22nd May, 2018
Standalone Statement of Profit and Loss

for the year ended 31st March, 2018
H in Crore
Particulars Notes For the year ended For the year ended
(1) Revenue from operations
(a) Revenue from sale of products 27 11,004.44 10,637.08
(b) Other operating income 28 440.37 337.50
11,444.81 10,974.58
(c) Other income 29 334.88 129.85
11,779.69 11,104.43
(2) Expenditure
(a) Cost of materials consumed 30 3,303.31 2,956.04
(b) Purchases of stock-in-trade 31 1,064.23 1,128.99
(c) Changes in inventories of finished goods, 32
work-in-progress and stock-in-trade (212.05) 56.27
(d) Employee benefits expense 33 1,785.94 1,728.97
(e) Finance costs 34 11.90 39.20
(f) Depreciation, impairment and amortisation 35 529.61 499.97
expense
(g) Other expenses 36 3,307.83 3,256.64
(h) Impairment of investment 37 - 251.41
9,790.77 9,917.49
(3) Profit before exceptional items and tax 1,988.92 1,186.94
(4) Exceptional items 50 77.52 -
(5) Profit before tax 1,911.40 1,186.94
(6) Tax expense (net) 8
(a) Current tax 431.33 311.06
(b) Deferred tax charge/(credit) 11.55 (99.06)
(7) Profit for the year 1,468.52 974.94
(8) Other comprehensive income
(a) Items that will not be reclassified to profit or loss
(i) Remeasurements of post-employment benefit 41(g)
obligation 2.71 10.60
(ii) Income tax relating to these items (0.94) (3.67)
(b) Items that will be reclassified to profit or loss
(i) Gains/(losses) on cash flow hedge 0.72 -
(ii) Income tax relating to these items (0.25) -
Other comprehensive income for the year 2.24 6.93
(9) Total comprehensive income for the year 1,470.76 981.87
(10) Earnings per equity share of face value of J 2 each 49
Basic (in H) ......................................18.25 12.13
Diluted (in H) ......................................18.22 12.11
The accompanying notes form an integral part of these standalone 2-52
financial statements.
As per our report of even date For and on behalf of the Board of Directors

New Delhi, 22 nd May, 2018 Mumbai, 22 nd May, 2018
175
Standalone Balance Sheet / Standalone Statement of Profit and Loss
Standalone Statement of Changes in Equity

H in Crore
As at As at
(a) Equity share capital (refer note 18)
Balance at the beginning of the year 160.90 160.68
Changes in equity share capital during the year on exercise of
employee stock options scheme (ESOSs) 0.12 0.22
Balance at the end of the year 161.02 160.90
H in Crore
Attributable to the owners of the Company
Other
Reserves and surplus
(b) Other equity (refer note reserve Total
19)
CapitalSecurities Employee equity

reserve General Retained Hedge
premium stock options
reserve earnings reserve
reserve reserve
Balance as at 1st April, 2016 0.08 1,449.28 3,141.43 89.41 7,145.00 - 11,825.20
Profit for the year ----------------------------------- - 974.94 - 974.94
Other comprehensive income - - - - 6.93----------- 6.93
Payment of dividend (including
tax on dividend) (refer note 48) - - - - (193.58)----------- (193.58)
Exercise of ESOSs - 55.96 - (44.20)-------------------------- 11.76
Share based payments - - 0.17 14.19----------------------------- 14.36
Balance as at 31st March, 2017 0.08 1,505.24 3,141.60 59.40 7,933.29------------- 12,639.61
Profit for the year - - - - 1,468.52 1,468.52
Other comprehensive income - - - - 1.77........0.47 2.24
Payment of dividend (including
tax on dividend) (refer note 48) - - - - (189.27)----------- (189.27)
Exercise of ESOSs - 36.91 - (36.91) - - -
Share based payments - - 0.13 31.27 - - 31.40
Balance as at 31st March, 2018 0.08 1,542.15 3,141.73 53.76 9,214.31 0.47 13,952.50
The accompanying notes form an integral part of these standalone financial statements.



18
Standalone Statement of Cash Flows
H in Crore
For the year ended For the year ended
Particulars
Cash flow from operating activities
Profit before tax 1,911.40 1,186.94
Adjustments to reconcile profit before tax to net cash flows:
Depreciation, impairment and amortisation expense 529.61 499.97
Impairment of investment - 251.41
Interest expense 11.90 39.20
Unrealised foreign exchange (gains)/losses (net) (2.20) (4.58)
Expense on employee stock option scheme (ESOSs) 31.40 22.18
Allowances and bad debts written off (net) 32.73 41.12
Interest income (27.87) (27.67)
Dividend income (147.23) (11.30)
Fair value gain on financial instruments at fair value through profit
or loss (2.07) (2.44)
Net gain on sale of current investments (63.35) (44.52)
Net gain on sale/buy-back of non-current investments (15.36) -
Net (gain)/loss on sale/disposal of property,plant and equipment (12.15) 16.83
Rent income (1.39) (1.60)
Operating profit before working capital changes 2,245.42 1,965.54
Adjustments for :
Decrease/(increase) in inventories (384.48) 264.97
(Increase) in trade and other receivables (636.93) (116.92)
Increase in trade payables and other liabilities 415.03 425.07
Working capital adjustments (606.38) 573.12
Cash generated from operations 1,639.04 2,538.66
Income taxes paid (including tax deducted at source) (522.51) (331.27)
Net cash flow from operating activities 1,116.53 2,207.39

Cash flow from investing activities
Purchase of property, plant and equipment, intangibles and
capital (533.20) (958.77)
work-in-progress
Proceeds from sale of property, plant and equipment 51.61 10.44
Investment in subsidiaries (37.39) (236.12)
Proceeds from sale/buy-back of investment in subsidiaries 103.23 -
(Purchase)/ sale of current investments (net) (336.13) (51.70)
Bank deposit having original maturity more than three months 0.13 0.76
Interest received 7.72 8.99
Dividend received from subsidiaries 145.09 11.30
Dividend received from current investment 2.14 0.00
Dividend received from non-current investment 0.00 -
Rent received 1.39 1.60
Loans repaid by subsidiaries/others 3.25 22.25
Net cash flow used in investing activities (592.16) (1,191.25)
177
Standalone Statement of Changes in Equity / Standalone Statement of Cash Flows
Standalone Statement of Cash Flows

H in Crore
For the ye ar ended For the year ended
Particulars
31st Ma rch, 2018 31st March, 2017
Cash flow from financing activities
Proceeds from issue of equity shares (ESOSs) 0.12 11.96
Proceeds/ (repayment) from current borrowings (net) (149.84) (797.10)
Repayment of non-current borrowings (0.07) (0.07)
Interest paid (11.90) (32.04)
Dividend paid (160.94) (160.84)
Tax paid on dividend (28.33) (32.71)
Net cash flow used in financing activities (350.96) (1,010.80)
Net increase in cash and cash equivalents 173.41 5.34
Cash and cash equivalents at the beginning of the year 44.60 39.76
Exchange difference on translation of foreign currency cash and
cash equivalents (0.56) (0.50)
Cash and cash equivalents at the end of the year (refer note 217.45 44.60
13)
Note:
The above cash flow statement has been prepared under the ‘Indirect method’ as set out in Indian Accounting Standard (Ind AS-7)-
Statement of Cash Flows.
Reconciliation of Financing Activities

H in Crore
Non cash changes As at

As at Foreign 31st March, 2018
Particulars Cashflows Fair value
31st March, 2017
Acquisition exchange
movement changes
Long term borrowings 0.07 (0.07) - - - -

Short term borrowings 324.26 (149.84) - 0.01 - 174.43
Current maturity of long term borrowings 0.07 - - - - 0.07
Total 324.4 (149.91) - 0.01 - 174.5
The accompanying notes form an integral part of these standalone financial statements.



18
Notes to the Standalone Financial Statements
Corporate information provisions against litigations and contingencies.
Estimates and underlying assumptions are
Cipla Limited (“Cipla” or “the Company”) is a reviewed
public company domiciled in India and is
incorporated under the provisions of the
Companies Act applicable in India. Cipla is a global
pharmaceutical company which uses cutting edge
technology and innovation to meet the everyday
needs of all patients. The Company has its wide
network of operations in local as well foreign
markets.
Note 1: Significant accounting policies and

key accounting estimates and judgements
1.1 Basis of preparation
These financial statements have been

prepared in accordance with the Indian
Accounting Standards (hereinafter referred to
as the ‘Ind AS’) as notified by Ministry of
Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 (‘Act’) read with Rule 3 of
the Companies (Indian Accounting Standards)
Rules, 2015 (as amended) and other relevant
provisions of the Act. The accounting policies
are applied consistently to all the periods
presented in the financial statements.
The financial statements have been prepared

on a historical cost basis, except for certain
financial assets and liabilities (including
investment and derivative instruments), defined
benefit plans, plan assets and share-based
payments. The financial statements are
presented in Indian Rupee and all values are
rounded to the nearest Crore or decimal
thereof, except when otherwise indicated.
Amount less than H 50,000 is presented as H
0.00 Crore.
1.2 Use of estimates and judgements
The preparation of financial statements requires

management of the Company to make
estimates and assumptions that affect the
reported assets and liabilities, revenue and
expenses and disclosures relating to contingent
liabilities. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable.
Examples of such estimates include estimation
of useful lives of tangible and intangible assets,
valuation of inventories, sales return, employee
costs, assessments of recoverable amounts of
deferred tax assets and cash generating units,
by management at each reporting date. Actual equipment and borrowing costs that are
results could differ from these estimates. Any directly attributable to the acquisition,
revision of these estimates is recognised construction or production of a qualifying
prospectively in the current and future periods. property, plant and equipment. Subsequent to
initial recognition, property, plant and
1.3 Current and non-current classification equipment other than freehold land are
measured at cost less accumulated
All assets and liabilities have been classified
depreciation and any accumulated impairment
as current and non-current as per the
losses. Freehold land has an unlimited useful
Company’s normal operating cycle and other
life and therefore is not depreciated. The
criteria set out in the Schedule III of the Act.
carrying values of property, plant and
Based on the nature of products and the time
equipment are reviewed for impairment when
between the acquisition of the assets for
events or changes in circumstances indicate that
processing and their realisation in cash and
the carrying value may not be recoverable. The
cash equivalents, the Company has
Company had applied for the one time
ascertained its operating cycle as upto 12
transition exemption of considering the
months for the purpose of current/non-current
carrying cost on the transition date i.e. April
classification of assets and liabilities.
1,2015 as the deemed cost under Ind AS.
1.4 Property, plant and equipment Hence regarded thereafter as historical cost.
All items of property, plant and equipment, The cost of an item of property, plant and
including freehold land, are initially recorded equipment is recognised as an asset if, and
at cost. Cost of property, plant and equipment only if, it is probable that future economic
comprises purchase price, non-refundable taxes, benefits associated with the item will flow to the
levies and any directly attributable cost of Company and the cost of the item can be
bringing the asset to its working condition for measured reliably. Items such as spare parts,
the intended use. The cost includes the cost of stand-by equipment and servicing equipment
replacing part of the property, plant and that meet the definition of property, plant and
equipment are capitalised at cost and
Standalone Statement of Cash Flows / Notes to the Standalone Financial Statements

179

depreciated over their useful life. Costs in Expenditure for obtaining regulatory approvals and
nature of repairs and maintenance are registration of products for overseas markets is
recognised in the profit or loss as and when charged to the profit or loss.
incurred. The present value of the expected cost
for the decommissioning of an asset after its
use is included in the cost of the respective
asset if the recognition criteria for a provision
is met.
Depreciation on the property, plant and

equipment (other than freehold land) is
provided based on useful life of the assets as
prescribed in Schedule II to the Act.
Depreciation on property, plant and
equipment, which are added/disposed off
during the year, is provided on pro-rata basis
with reference to the month of
addition/deletion, in the profit or loss.
Capital work-in-progress included in property,

plant and equipment are not depreciated as
these assets are not yet available for use.
An item of property, plant and equipment, is

derecognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the profit or loss.
The residual values, useful lives and methods

of depreciation of property, plant and
equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.
1.5 Intangible assets
Intangible assets such as marketing

intangibles, trademarks, technical know-how,
brands and computer software acquired
separately are measured on initial recognition
at cost. Internally generated intangibles
including research cost are not capitalised and
the related expenditure is recognised in the
profit or loss in the period in which the such
expenditure is incurred. Following initial
recognition, intangible assets are carried at
cost less accumulated amortisation and
accumulated impairment loss, if any.
Expenditure on regulatory approval

The Company amortises intangible assets to its recoverable amount. Non- financial
with a finite useful life using the straight-line assets other than goodwill that suffered
method over the following periods:
• Marketing intangibles, Trademarks,

Technical Know- How and Brands 2-10
years.
• Computer software 3 years.
1.6 Investment properties
Property that is held for long-term rental

yields or for capital appreciation or both,
and that is not occupied by the Company, is
classified as investment property.
Investment property is measured initially at
its cost, including related transaction costs
and borrowing costs where applicable.
Subsequent expenditure is capitalised to
the asset’s carrying amount only when it is
probable that future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can
be measured reliably. All other repairs and
maintenance costs are expensed when
incurred. When part of an investment
property is replaced, the carrying amount
of the replaced part is de-recognised.
Investment properties are depreciated

using the straight-line method over their
estimated useful lives.
Investment properties generally have a

useful life of 25-40 years. The useful life has
been determined based on technical
evaluation performed by the
management’s expert.
1.7 Impairment of non-financial assets
The Company assesses, at each reporting

date, whether there is an indication that an
asset may be impaired. If any indication
exists, or when annual impairment testing
for an asset is required, the Company
estimates the asset’s recoverable amount.
An asset’s recoverable amount is the
higher of an asset’s or cash-generating
unit’s (CGU) fair value less costs of disposal
and its value-in-use. Recoverable amount is
determined for an individual asset, unless
the asset does not generate cash inflows
that are largely independent of those from
other assets or Groups of assets. When the
carrying amount of an asset or CGU
exceeds its recoverable amount, the asset
is considered impaired and is written down
an impairment are reviewed for possible reversal costs of raw material, labour, conversion costs
of the impairment at the end of each reporting and other related costs incurred in bringing the
period. inventories to their present location and
condition.
Impairment losses of continuing operations,
including impairment on inventories, are Cost of inventories is determined on a weighted
recognised in the profit or loss. moving average basis.
1.8 Borrowing costs
Borrowing costs consists of interest, ancillary

costs and other costs in connection with the
borrowing of funds and exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to
interest costs.
Borrowing costs attributable to acquisition

and/or construction of qualifying assets are
capitalised as a part of the cost of such assets,
up to the date such assets are ready for their
intended use. Other borrowing costs are
charged to the profit or loss.
1.9 Foreign currency transactions and

balances
Foreign exchange gains and losses resulting

from the settlement of such transactions and
from the translation of monetary items
denominated in foreign currency at prevailing
reporting date exchange rates are recognised
in profit or loss. Non-monetary items are
measured at historical cost (translated using
the exchange rates at the transaction date),
except for non monetary items measured at
fair value which are translated using the
exchange rates at the date when fair value was
determined.
1.10 Inventories
Raw materials and packing materials are

valued at lower of cost and net realisable value
after providing for obsolescence, if any. However,
these items are considered to be realisable at
cost if the finished products, in which they will
be used, are expected to be sold at or above
cost.
Stores, spares and consumables, Work-in-

process, Stock-in-trade and finished goods are
valued at lower of cost and net realisable value.
Finished goods and work-in-process include

1.11 Government grants reasonably assured.
Government grants are recognised where

there is reasonable assurance that the grant
will be received and all attached conditions
will be complied with. When the grant relates
to an asset, it is recognised as income in equal
amounts over the expected useful life of the
related asset and presented within other
income.
When loans or similar assistance are provided by

the government or related institutions, with an
interest rate below the current applicable
market rate, the effect of this favourable
interest is regarded as a government grant.
Government grants that are receivable on

satisfying export or revenue conditions with no
future related cost are recognised in profit or
loss in the period such conditions are met.
The loan or assistance is initially recognised

and measured at fair value and the government
grant is measured as the difference between
initial carrying value of the loan and the
proceeds received. The loan is subsequently
measured at amortised cost.
1.12 Revenue recognition

(i) Sale of goods and rendering of services
Revenue is recognised when it is probable that

economic benefits associated with a transaction
flows to the Company in the ordinary course of
its activities and the amount of revenue can be
measured reliably. Revenue is measured at the
fair value of the consideration received or
receivable, net of returns and other allowances
including (trade discounts and volume
rebates). Accrual for sales returns and other
allowances are provided at the point of sale
based upon past experience. Adjustments to
such returns and other allowances are made as
new information becomes available. Revenue
includes only the gross inflows of economic
benefits, including excise duty (up to 30th June,
2017), received and receivable by the
Company, on its own account. Amounts collected
on behalf of third parties such as sales tax,
value added tax and goods and service tax
(GST) are excluded from revenue.
Profit sharing revenues are generally

recognised under the terms of a license and
supply agreement in the period such amounts
can be reliably measured and collectability is
Revenue from sale of goods is recognised employee renders service/ vesting period of the
when the following conditions are satisfied: benefit.
The Company has transferred the significant Post retirement contribution plans such as
risks and rewards of ownership of the goods to Employees’ Pension Scheme and Employees’
the buyer;
The Company retains neither continuing

managerial involvement to the degree usually
associated with ownership nor effective control
over goods sold;
The amount of revenue can be measured

reliably;
Revenue resulting from the achievement of

milestone events stipulated in agreements is
recognised when the milestone is achieved.
Milestones are based upon the occurrence of a
substantive element specified in the contract
or as a measure of substantive progress towards
completion under the contract.
Other operating revenue is recognised on

accrual basis.
(ii) Interest income
Interest income from a financial asset is

recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principle outstanding
and at the effective interest rate applicable,
which is the rate that discounts estimated
future cash receipts through the expected life of
the financial asset to that asset’s net carrying
amount on initial recognition.
(iii) Dividends
Dividend income from investments is

recognised when the right to receive payment
has been established, provided that it is
probable that the economic benefits will flow to
the Company and the amount of income can be
measured reliably.
1.13 Employee benefits
(i) Short term employee benefits
Liability on account of short term employee

benefits is recognised on an undiscounted and
accrual basis during the period when the
Provident Fund (for employees other than after the reporting date is estimated on the
those who are covered under Employees’ basis of an actuarial valuation performed by an
Provident Fund Trust) are charged to the independent actuary.
profit or loss for the year when the
contributions to the respective funds
accrue.
(ii) Defined benefit plan
Post retirement benefit plans such as

gratuity and provident fund are determined
on the basis of actuarial valuation made by
an independent actuary as at the reporting
date. Re-measurement, comprising actuarial
gains and losses, the effect of the changes
to the asset ceiling (if applicable) and the
return on plan assets (excluding net
interest), is recognised in other
comprehensive income in the period in
which they occur. Re-measurement
recognised in other comprehensive income
is included in retained earnings and will
not be reclassified to profit or loss.
(iii) Gratuity obligations
The present value of the defined benefit

obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
terms approximating to the terms of the
related obligation.
The net interest cost is calculated by

applying the discount rate to the net
balance of the defined benefit obligation
and the fair value of plan assets. This cost
is included in employee benefit expense in
the profit or loss.
Changes in the present value of the

defined benefit obligation resulting from
plan amendments or curtailments are
recognised immediately in profit or loss as
past service cost.
(iv) Other benefit plan
Liability in respect of compensated

absences becoming due or expected to be
availed within one year from the balance
sheet date is recognised on the basis of
undiscounted value of estimated amount
required to be paid or estimated value of
benefit expected to be availed by the
employees. Liability in respect of
compensated absences becoming due or
expected to be availed more than one year
(v) Termination benefits Non-market vesting conditions are included in
assumptions about the number of options that
Termination benefits are recognised in the profit are expected to become exercisable. Estimates
or loss when: are subsequently revised if there is any indication
• the Company has a present obligation as a that the
result of past event;
• a reliable estimate can be made of the
amount of the obligation; and
• it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation.
1.14 Share-based employee

remuneration
The Company operates equity-settled share-based

remuneration plans for its employees.
For cash settled share based payments a

liability is recognised for the services acquired,
measured initially at the fair value of the
liability. At the end of each reporting period
untill the liability is settled and at the date of
settlement the fair value is remeasured with
any changes in fair value is recognised in profit
or loss for the year.
All goods and services received in exchange for

the grant of any share-based payment are
measured at their fair values on the grant
date. Grant date is the date when the
Company and employees have shared an
understanding of terms and conditions on the
arrangement.
Where employees are rewarded using share-

based payments, the fair value of employees’
services is determined indirectly by reference
to the fair value of the equity instruments
granted. This fair value is appraised at the
grant date and excludes the impact of non-
market vesting conditions (for example
profitability and sales growth targets and
performance conditions).
All share-based remuneration is ultimately

recognised as an expense in profit or loss. If
vesting periods or other vesting conditions
apply, the expense is allocated over the
vesting period, based on the best available
estimate of the number of share options
expected to vest.
number of share options expected to vest differs business combination and,
from previous estimates. Any adjustment to
cumulative share-based compensation resulting
from a revision is recognised in the current
period. The number of vested options
ultimately exercised by holder does not impact
the expense recorded in any period.
Market conditions are taken into account when

estimating the fair value of the equity instruments
granted. Services received from employees
satisfying another vesting condition irrespective of
whether market conditions are satisfied.
Upon exercise of share options, the proceeds

received, net of any directly attributable
transaction costs, are allocated to share capital
up to the nominal (or par) value of the shares
issued with any excess being recorded as
securities premium.
1.15 Taxes
Income tax expense comprises of current tax

expense and deferred tax charged/credit.
Current and deferred taxes are recognised in
profit or loss, except when they relate to items
that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in
equity.
(i) Current income tax:
Current income tax is the amount of tax

payable on the taxable income for the year as
determined in accordance with the provisions
of the applicable income tax law. The current
tax is calculated using tax rates that have
been enacted or substantively enacted, at the
reporting date.
(ii) Deferred tax:
Deferred tax is recognised using the on

temporary differences arising between the tax
bases of assets and liabilities and their carrying
amounts.
Deferred tax assets are recognised to the

extent that it is probable that taxable profit
will be available against which the deductible
temporary differences, and the carry forward
of unused tax credits and unused tax losses
can be utilised, except when the deferred tax
asset relating to the deductible temporary
difference arises from the initial recognition of
an asset or liability in a transaction that is not a
at the time of the transaction, affects neither Finance leases are capitalised at the commencement
the accounting profit nor taxable profit or loss. of the lease at the inception date fair value of the
leased property or, if lower, at the present value
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to
the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured

using substantively enacted tax rates expected
to apply to taxable income in the years in which
the temporary differences are expected to be
recovered or settled.
Minimum Alternate Tax (MAT) credit is

recognised as an asset only when and to the
extent it is resonably certain that the Company
will pay normal income tax during the
specified period. Such asset is reviewed at
each reporting date and the carrying amount
of the MAT credit asset is written down to the
extent there is no longer a convincing evidence
to the effect that the Company will pay normal
income tax during the specified period.
Deferred tax assets and deferred tax liabilities

are offset if a legally enforceable right exists to
set off current tax assets against current tax
liabilities.
1.16 Leases
The determination of whether an arrangement

is (or contains) a lease is based on the
substance of the arrangement at the inception
of the lease. The arrangement is, or contains,
a lease if fulfillment of the arrangement is
dependent on the use of a specific asset or
assets and the arrangement conveys a right to
use the asset or assets, even if that right is not
explicitly specified in an arrangement.
(i) Company as a lessee
A lease is classified at the inception date as a

finance lease or an operating lease. A lease
that transfers substantially all the risks and
rewards incidental to ownership to the Company
is classified as a finance lease.
of the minimum lease payments. Lease and sales returns are recognised when the
payments are apportioned between finance Company has a present legal or constructive
charges and reduction of the lease liability obligation as a result of past events, it is
so as to achieve a constant rate of interest probable that an outflow of
on the remaining balance of the liability.
Finance charges are recognised under
finance costs in the profit and loss.
A leased asset is depreciated over the

useful life of the asset. However, if there is
no reasonable certainty that the Company
will obtain ownership by the end of the lease
term, the asset is depreciated over the
shorter of the estimated useful life of the
asset and the lease term.
Operating lease payments are recognised

as an expense in the profit or loss on
accrual basis as escalation in lease
arrangements are for expected inflationary
cost.
(ii) Company as a lessor
Leases in which the Company does not

transfer substantially all the risks and
rewards of ownership of an asset are
classified as operating leases. Initial direct
costs incurred in negotiating and arranging
an operating lease are added to the
carrying amount of the leased asset and
recognised over the lease term on the
same basis as rental income. Contingent
rents are recognised as revenue in the
period in which they are earned.
Leases are classified as finance leases

when substantially all of the risks and
rewards of ownership transfer from the
Company to the lessee. Amounts due from
lessees under finance leases are recorded
as receivables at the Company’s net
investment in the leases. Finance lease
income is allocated to accounting periods
so as to reflect a constant periodic rate of
return on the net investment outstanding
in respect of the lease.
1.18 Cash and cash equivalents
Cash and cash equivalents comprise cash

on hand and cash at bank including fixed
deposit with original maturity period of three
months or less and short-term highly liquid
investments with an original maturity of
three months or less.
1.19 Provisions
Provisions for legal claims, chargebacks

resources will be required to settle the conversion of all dilutive potential equity
obligation and the amount can be reliably shares into equity shares.
estimated. Provisions are not recognised for
future operating losses. 1.22 Fair value measurement
Where there are a number of similar The Company measures financial instruments at
obligations, the likelihood that an outflow will fair value at each reporting date.
be required in settlement is determined by
considering the class of obligations as a whole.
A provision is recognised even if the likelihood
of an outflow with respect to any one item
included in the same class of obligations may
be small.
Provisions are measured at the present value

of management’s best estimate of the
expenditure required to settle the present
obligation at the end of the reporting period.
The discount rate used to determine the
present value is a pre-tax rate that reflects
current market assessments of the time value
of money and the risks specific to the liability.
The increase in the provision due to the
passage of time is recognised as interest
expense.
1.20 Contingencies
Disclosure of contingent liabilities is made

when there is a possible obligation or a present
obligation that may, but probably will not,
require an outflow of resources. Where there is
possible obligation or a present obligation in
respect of which the likelihood of outflow of
resources is remote, no provision or disclosure
is made.
1.21 Earnings per share
Basic earnings per share is calculated by dividing

the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period.
For the purpose of calculating diluted earnings

per share, the net profit attributable to equity
shareholders and the weighted average number
of shares outstanding are adjusted for the
effect of all dilutive potential equity shares from
the exercise of options on unissued share
capital. The number of equity shares is the
aggregate of the weighted average number of
equity shares and the weighted average number
of equity shares which are to be issued in the
1.23 Financial instruments Company may transfer the cumulative gain or
loss within equity.
A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of
another entity.
(i) Financial assets
Initial recognition and measurement
All financial assets are recognised initially at

fair value plus, in the case of financial assets
not recorded at fair value through profit or
loss, transaction costs that are attributable to
the acquisition of the financial asset. Purchases
or sales of financial assets that require
delivery of assets within a time frame
established by regulation or convention in the
market place (regular way trades) are
recognised on the trade date, i.e., the date
that the Company commits to purchase or sell
the asset.
The classification depends on the Company’s

business model for managing the financial
assets and the contractual terms of the cash
flows.
Subsequent measurement
For purposes of subsequent measurement,

financial assets are classified in below categories:
• Debt instruments at amortised cost.
• Derivatives and equity instruments at fair
value through profit or loss (FVTPL).
• Equity instruments measured at fair value
through other comprehensive income
(FVTOCI).
Equity investments
All equity investments in scope of Ind AS 109

are measured at fair value. Equity instruments
which are held for trading are classified as
FVTPL. For all other equity instruments, the
Company decides to classify the same either as
at FVTOCI or FVTPL. The Company makes such
election on an instrument-by instrument basis.
The classification is made on initial recognition
and is irrevocable.
If the Company decides to classify an equity

instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognised in the OCI. There is no
recycling of the amounts from OCI to profit or
loss, even on sale of investment. However, the
Equity instruments included within the FVTPL indicate that there is a measurable decrease in the
category are measured at fair value with all estimated future cash flows, such as changes in
changes recognised in the profit or loss. arrears or economic conditions that correlate with
defaults.
Transaction cost of financial assets at FVTPL are
expensed in profit or loss.
De-recognition
The Company de-recognises a financial asset

only when the contractual rights to the cash
flows from the asset expires or it transfers the
financial asset and substantially all the risks
and rewards of ownership of the asset.
When the Company has transferred its rights to

receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if
and to what extent it has retained the risks and
rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the Company continues to
recognise the transferred asset to the extent of
the Company’s continuing involvement. In that
case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a basis
that reflects the rights and obligations that the
Company has retained.
Continuing involvement that takes the form of a

guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the Company could be
required to repay.
Impairment of financial assets
The Company assesses at each reporting date

whether there is any objective evidence that a
financial asset or a Group of financial assets is
impaired. A financial asset or a Group of
financial assets is deemed to be impaired if, there
is objective evidence of impairment as a result
of one or more events that has occurred after the
initial recognition of the asset (an expected ‘loss
event’) and that loss event has an impact on
the estimated future cash flows of the financial
asset or the Group of financial assets that can
be reliably estimated. Evidence of impairment
may include indications that the debtors or a
Group of debtors is experiencing significant
financial difficulty, default or delinquency in
interest or principal payments, the probability that
they will enter bankruptcy or other financial
reorganisation and where observable data
(ii) Financial liabilities This category generally applies to interest-
bearing loans and borrowings.
De-recognition
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair A financial liability is de-recognised when the
value through profit or loss. obligation under the liability is discharged or
All financial liabilities are recognised

initially at fair value and, in the case of
loans and borrowings and payables, net of
directly attributable transaction costs.
The Company’s financial liabilities include

trade and other payables, loans and
borrowings including bank overdrafts,
financial guarantee contracts and
derivative financial instruments.
The measurement of financial liabilities

depends on their classification, as described
below:
Financial liabilities at fair value through

profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss. Financial
liabilities are classified as held for trading if
they are incurred for the purpose of
repurchasing in the near term. This
category also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships as
defined by Ind AS 109. Separated
embedded derivatives are also classified as
held for trading unless they are
designated as effective hedging
instruments.
Gains or losses on liabilities held for

trading are recognised in the profit or
loss.
Loans and borrowings
After initial recognition, interest-bearing

loans and borrowings are subsequently
measured at amortised cost using the
effective interest rate (EIR) method. Gains
and losses are recognised in profit or loss
when the liabilities are derecognised as
well as through the EIR amortisation
process.
Amortised cost is calculated by taking into

account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR
amortisation is included as finance costs in
the profit or loss.
cancelled or expires. When an existing financial The preparation of the Company’s financial
liability is replaced by another from the same statements requires the management to
lender on substantially different terms, or the make judgements, estimates and assumptions
terms of an existing liability are substantially that affect the reported amounts of revenues,
modified, such an exchange or modification is expenses, assets and liabilities, and the
treated as the derecognition of the original accompanying disclosures,
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognised in the profit or loss.
(iii) Derivative financial instruments
The Company uses derivative financial

instruments, such as forward currency contracts
and interest rate swaps, to hedge its foreign
currency risks and interest rate risks,
respectively. Such derivative financial
instruments are initially recognised at fair value
on the date on which a derivative contract is
entered into and are subsequently re-measured
at fair value. Derivatives are carried as financial
assets when the fair value is positive and as
financial liabilities when the fair value is
negative.
(iv) Cash flow hedge
The effective portion of changes in the fair

value of derivatives that are designated and
qualify as cash flow hedges is recognised in
other comprehensive income and accumulated
under hedging reserve. The Company classifies
its forward contract that hedge foreign currency
risk associated as cash flow hedges and
measures them at fair value. The gain or loss
relating to the ineffective portion is recognised
immediately in the Statement of Profit and
Loss, and is included in the ‘Other income’ line
item. Amounts previously recognised in other
comprehensive income and accumulated in equity
relating to effective portion (as described
above) are reclassified to the Statement of Profit
and Loss in the periods when the hedged item
affects Statement of Profit and Loss, in the same
line as the recognised hedged item. When the
hedging instrument expires or is sold or
terminated or when a hedge no longer meets
the criteria for hedge accounting, any
cumulative deferred gain / loss at that time
remains in equity until the forecast transaction
occurs, when the forecast transaction is no
longer expected to occurs, the cumulative
gain/loss that was reported in equity are
immediately reclassified to profit or loss within
other income.
1.24 Key accounting estimates and

judgements
and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates
could result in outcomes that require an adjustment
to the carrying amount of assets or liabilities affected
in future periods.
Critical accounting estimates and assumptions
The key assumptions concerning the future and

other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year,
are described below:
Judgements
(i) Leases
The Company has evaluated each lease

agreement for its classification between finance
lease and operating lease. The Company has
reached its decisions on the basis of the
principles laid down in Ind AS 17 “Leases” for the
said classification. The Company has also used
appendix C of Ind AS 17 for determining whether
an arrangement is, or contains, a lease is
based on the substance of the arrangement
and based on the assessment whether:
. fulfillment of the arrangement is dependent

on the use of a specific asset or assets (the
asset); and
. the arrangement conveys a right to use the

asset.
(ii) Deferred income taxes
The assessment of the probability of future

taxable profit in which deferred tax assets can
be utilised is based on the Company’s latest
approved forecast, which is adjusted for
significant non-taxable profit and expenses and
specific limits to the use of any unused tax loss or
credit. The tax rules in the numerous jurisdictions
in which the Company operates are also
carefully taken into consideration. If a positive
forecast of taxable profit indicates the probable
use of a deferred tax asset, especially when it
can be utilised without a time limit, that deferred
tax asset is usually recognised in full.
(iii) Research and developments costs
Management monitors progress of internal

research and development projects by using a
project management system. Significant
judgement is required in distinguishing research
from the development phase. Development costs
are recognised as an asset when all the iii Financial assets measured at fair value
criteria are met, whereas research costs are through other comprehensive income
expensed as incurred. Management also (FVTOCI).
monitors whether the recognition
requirements for development costs
continue to be met. This is necessary due to
inherent uncertainty in the economic success
of any product development.
Estimates
(i) Useful lives of various assets
Management reviews the useful lives of

depreciable assets at each reporting date,
based on the expected utility of the assets
to the Company.
(ii) Current income taxes
Significant judgments are involved in

determining the provision for income taxes
including judgment on whether tax positions
are probable of being sustained in tax
assessments. A tax assessment can involve
complex issues, which can only be resolved
over extended time periods. The recognition
of taxes that are subject to certain legal or
economic limits or uncertainties is assessed
individually by management based on the
specific facts and circumstances.
(iii) Sales returns
The Company accounts for sales returns

accrual by recording an allowance for sales
returns concurrent with the recognition of
revenue at the time of a product sale. This
allowance is based on the Company’s
estimate of expected sales returns. The
Company deals in various products and
operates in various markets. Accordingly,
the estimate of sales returns is determined
primarily by the Company’s historical
experience in the markets in which the
Company operates.
(iv) Expected credit loss
The Company applies expected credit losses

(ECL) model for measurement and
recognition of loss allowance on the following:
i Trade receivables and lease receivables.
ii Financial assets measured at amortised

cost (other than trade receivables and
lease receivables).
In case of trade receivables and lease In most cases, determining the applicable
receivables, the Company follows a discount rate involves estimating the
simplified approach wherein an amount appropriate adjustment to market risk and
equal to lifetime ECL is measured and the appropriate adjustment to asset-specific
recognised as loss allowance. risk factors.
In case of other assets (listed as ii and

iii above), the Company determines if
there has been a significant increase in
credit risk of the financial asset since
initial recognition. If the credit risk of
such assets has not increased
significantly, an amount equal to twelve
month ECL is measured and recognised
as loss allowance. However, if credit risk
has increased significantly, an amount
equal to lifetime ECL is measured and
recognised as loss allowance.
(v) Accounting for defined benefit plans
In accounting for post-retirement

benefits, several statistical and other
factors that attempt to anticipate future
events are used to calculate plan
expenses and liabilities. These factors
include expected return on plan assets,
discount rate assumptions and rate of
future compensation increases. To
estimate these factors, actuarial
consultants also use estimates such as
withdrawal, turnover, and mortality
rates which require significant
judgment. The actuarial assumptions
used by the Company may differ
materially from actual results in future
periods due to changing market and
economic conditions, regulatory events,
judicial rulings, higher or lower
withdrawal rates, or longer or shorter
participant life spans.
(vi) Impairment
An impairment loss is recognised for the

amount by which an asset’s or cash-
generating unit’s carrying amount
exceeds its recoverable amount to
determine the recoverable amount,
management estimates expected future
cash flows from each asset or cash
generating unit and determines a
suitable interest rate in order to
calculate the present value of those
cash flows. In the process of measuring
expected future cash flows, management
makes assumptions about future
operating results. These assumptions
relate to future events and
circumstances. The actual results may
vary, and may cause significant
adjustments to the Company’s assets.
for more than their carrying amount.
(vii) Fair value of financial instruments
Entities are required to apply the
Management uses valuation techniques in amendments retrospectively. However, on
measuring the fair value of financial initial application of the amendments, the
instruments where active market quotes are changes in the opening
not available. Details of the assumptions
used are given in the notes regarding
financial assets and liabilities. In applying the
valuation techniques, management makes
maximum use of market inputs and uses
estimates and assumptions that are, as far
as possible, consistent with observable data
that market participants would use in
pricing the instrument. Where applicable
data is not observable, management uses its
best estimate about the assumptions that
market participants would make. These
estimates may vary from the actual prices
that would be achieved in an arm’s length
transaction at the reporting date.
1.25 Recent accounting

pronouncements
Appendix B to Ind AS 21, Foreign currency transactions
and advance consideration:
On March 28, 2018, Ministry of corporate

Affairs (”MCA”) has notified the Companies
(Indian Accounting Standards) Amendment
Rules, 2018 containing Appendix B to Ind AS
21, Foreign currency transactions and advance
consideration which clarifies the date of the
transaction for the purpose of determining the
exchange rate to use on initial recognition of
the related asset, expense or income, when an
entity has received or paid advance
consideration in a foreign currency.
The amendment will come into force from 1

April 2018. The Company is evaluating the
requirement of the amendment and the impact
on the financial statements. The effect on
adoption of Ind AS 21 is expected to be
insignificant.
Amendments to Ind AS 12 Recognition of Deferred

Tax Assets for Unrealised Losses
The amendments clarify that an entity needs to

consider whether tax law restricts the sources
of taxable profits against which it may make
deductions on the reversal of that deductible
temporary difference. Furthermore, the
amendments provide guidance on how an entity
should determine future taxable profits and
explain the circumstances in which taxable
profit may include the recovery of some assets
equity of the earliest comparative period may be
recognised in opening retained earnings (or in
another component of equity, as appropriate),
without allocating the change between opening
retained earnings and other components of equity.
Entities applying this relief must disclose that fact.
These amendments are effective for annual periods
beginning on or after 1 April 2018. The Company will
adopt the new standard on the required effective
date. On transition, the effect of this change is not
expected to be material for the Company.
Ind AS 115
In March 2018, the Ministry of Corporate Affairs

has notified the Companies (“Indian Accounting
Standards”) Amended Rules 2018 (“amended rules”). As
per the amended rules, Ind AS 115 “Revenue from
contracts with customers” supersedes Ind AS 11,
“Construction contracts” and Ind AS 18, “Revenue”
and is applicable for all accounting periods
commencing on or after 1 April 2018.
Ind AS 115 introduces a new framework of five step

model for the analysis of revenue transactions. The
model specifies that revenue should be recognised
when (or as) an entity transfer control of goods or
services to a customer at the amount to which the
entity expects to be entitled. Further the new
standard requires enhanced disclosures about the
nature, amount, timing and uncertainty of revenue
and cash flows arising from the entity’s contracts with
customers. The new revenue standard is applicable to
the Company from 1 April 2018.
The standard permits two possible methods of

transition:
(i) Retrospective approach - Under this approach

the standard will be applied retrospectively to
each prior reporting period presented in
accordance with Ind AS 8 - Accounting Policies,
Changes in Accounting Estimates and Errors.
(ii) Retrospectively with cumulative effect of

initially applying the standard recognised at the
date of initial application (Cumulative catch -
up approach)
The Company is evaluating the requirement of the

amendment and the impact on the financial
statements. The effect on adoption of Ind AS 115
is expected to be insignificant.
Note 2: Property, plant and equipment
H in Crore
Furniture Office
Freehold Leasehold Buildings Plant and Vehicles Total
Particulars and equipments
land land and flats equipment
fixtures
Gross block
Balance as at 1st April, 2016 32.74 21.58 1,675.57 2,249.16 76.43 56.17 4.95 4,116.60
Additions for the year 6.41 1.23 204.60 623.21 19.85 19.52 1.22 876.04
Deletions and adjustments
during the year - - 0.89 38.55 1.94 1.52 0.35 43.25
Balance as at 31st March, 2017 39.15 22.81 1,879.28 2,833.82 94.34 74.17 5.82 4,949.39
Additions for the year - - 95.85 466.58 7.98 12.30 0.41 583.12
during the year - - 5.55 57.54 1.21 0.23 0.32 64.85
Balance as at 31st March, 2018 39.15 22.81 1,969.58 3,242.86 101.11 86.24 5.91 5,467.66
Depreciation and impairment
Accumulated balance as at
1st April, 2016 - 0.23 47.42 334.64 14.44 16.68 0.91 414.32
Depreciation charge for the year - 0.25 52.25 355.10 12.97 15.71 0.88 437.16
Impairment charge for the year - - - 18.74 - - - 18.74
during the year - - 0.03 13.77 1.18 0.92 0.09 15.99
Accumulated balance as at 31st
March, 2017 - 0.48 99.64 694.71 26.23 31.47 1.70 854.23
Depreciation charge for the year - 0.25 58.58 394.95 11.83 13.95 0.89 480.45
during the year - - 0.35 23.98 0.79 0.14 0.13 25.39
31st March, 2018 - 0.73 157.87 1,065.68 37.27 45.28 2.46 1,309.29
Net block
As at 31st March, 2018 39.15 22.08 1,811.71 2,177.18 63.84 40.96 3.45 4,158.37
As at 31st March, 2017 39.15 22.33 1,779.64 2,139.11 68.11 42.70 4.12 4,095.16
i. The gross value of Buildings and flats include the cost of shares in Co-operative housing
societies.
(31 st March, 2017 H Crore) used
ii. The above additions to property, plant and equipment during the year includes H 63.37 119.34 for
Crore
research and development.
Details of capital work-in-progress

H in Crore
As at As at
Opening balance 540.52 512.81
Additions during the year 465.17 428.17
Capitalised during the year (570.41) (391.33)
Impairment during the year - (9.13)
Closing balance 435.28 540.52
Note 3: Investment property
H in Crore - Rental income recognised in statement of profit
Particulars Amount or loss for investment property amounting of H 0.09
Crore (previous year H 0.09 Crore)
Gross block
Balance as at 1st April, 2017 0.33 Estimation of fair value
Balance as at 31st March, 2018 0.33
Accumulated depreciation The fair valuation of the assets is based on the
Balance as at 1 st perception about the macro and micro economic
April, 2017 0.01 factors presently governing the construction
Depreciation 0.00 industry, location of property, existing market
Net block conditions, degree of development of infrastructure
in the area, demand supply conditions , internal
amenities, common amenities etc.
As at 31st March, 2018 0.32
As at 31st March, 2017 0.32 This value is based on guidance value notified by
Fair value local authority. The fair value measurement is
As at 31st March, 2018 1.81 categorised in level 2 fair value hierarchy.
Note 4: Intangible assets

H in Crore
Marketing
Particulars Software Technical
intangibles know-how Trademarks Brands Total
Gross block
Balance as at 1st April, 2016 110.76 24.27 4.66 10.45 1.08 151.22
Additions for the year 51.20 - - - - 51.20
Deletions and adjustment during the year - - - - - -
Balance as at 31st March, 2017 161.96 24.27 4.66 10.45 1.08 202.42
Additions for the year 23.57 47.15 - - - 70.72
Balance as at 31st March, 2018 185.53 71.42 4.66 10.45 1.08 273.14
Amortisation and impairment
Accumulated balance as at 1st April, 2016 21.16 5.02 0.51 0.58 0.12 27.39
Amortisation charge for the year 27.71 5.02 0.93 1.05 0.22 34.93
Accumulated balance as at 31st March, 48.87 10.04 1.44 1.63 0.34 62.32
2017
Amortisation charge for the year 33.89 13.07 0.93 1.05 0.22 49.16
Accumulated balance as at 31st March, 82.76 23.11 2.37 2.68 0.56 111.48
2018
Net book value
As at 31st March, 2018 102.77 48.31 2.29 7.77 0.52 161.66
As at 31st March, 2017 113.09 14.23 3.22 8.82 0.74 140.10
Details of intangible assets under development

H in Crore
As at As at
Opening Balance 15.25 37.91
Closing Balance 27.32 15.25
Notes to the Standalone Financial
Statements
Note 5: Non-current investments H in Crore
As at As at
Particulars No. of units No. of units
Investments in equity instruments
(Unquoted)
I. Subsidiaries - carried at cost
Equity shares of Cipla FZE of AED 10,00,000 each,
fully paid * - - 15 18.69
Equity shares of Goldencross pharma pvt. ltd. of Rs.
10
each, fully paid 45,966 191.12 45,966 191.12
Equity shares of Meditab specialities pvt. ltd. of
Rs. 1 each, fully paid 61,72,237 158.42 61,72,237 158.42
Meditab specialities pvt. ltd. (equity component
of - 107.50 - 107.50
inter corporate deposits)
Ordinary shares of Cipla (Mauritius) ltd. of USD 1
each, fully paid 1,60,00,000 96.09 2,15,50,001 129.42
Shares of Cipla (EU) ltd. of GBP 1 each, fully paid 2,90,00,000 282.10 2,70,00,000 264.70
Ordinary shares of Cipla medpro South Africa
(proprietary) ltd. of 0.1 cent each, fully paid 45,07,40,684 2,081.09 45,07,40,684 2,081.09
Shares of Cipla holding B.V. of EUR 100 each, fully
Paid 2,15,367 172.69 2,15,367 172.69
Equity shares of Cipla BioTec pvt. ltd. of Rs. 10
each,
fully paid 25,87,08,433 124.20 24,69,48,959 104.21
Shares of Saba investment ltd. of USD 1 each,
fully
paid 1,74,27,511 230.79 2,01,33,633 266.63
Equity shares of Jay precision pharmaceuticals
pvt.
ltd. of Rs. 10 each, fully paid 24,06,000 96.24 24,06,000 96.24
Equity shares of Cipla health ltd. of Rs. 10 each,
fully
paid 14,40,208 57.00 14,40,208 57.00
II. Other investments - carried at fair value
through profit and loss (FVTPL)
Equity shares of The Saraswat co-operative bank
ltd. of
H 10 each, fully paid H 10,000 (31st March, 2017- H 1,000 0.00 1,000 0.00
10,000)
Investments in Government and trust securities -
carried at cost
National savings certificates H 41,000 (31st March,
Note 6: Non-current financial assets - Loans Note 8: Tax expenses
H in Crore
The major components of income tax expense for
As As the years ended 31st March, 2018 and 31st March,
Particulars at 31st at 31st 2017 are:
March, March, H in Crore
2018 2017
For the For the
Unsecured, considered good, except otherwise
year ended year ended
stated) Particulars
31st March, 31st March,
2018 2017
(Carried at amortised cost, except otherwise
stated) Statement of profit and loss
Deposits with body
Profit or loss section
corporates and others
Considered good 33.03 32.55 Current income tax
Considered doubtful 0.88 - charge 431.33 311.06
Less: Allowance for
MAT credit utilisation
doubtful (0.88) -
/entitlement 13.04 (181.23)
Loans to subsidiaries
(refer note 42 and 45) 200.10 183.20 Adjustments in
233.13 215.75 respect of deferred
tax of previous year 1.08 -
Note 7: Non-current financial assets - Others
Deferred tax on account of
H in Crore
temporary
As As at
Particulars at 31st differences (2.57) 82.17
31st March, 442.88 212.00
March,
2017
2018
(Carried at amortised cost, except otherwise
stated) OCI section - tax related to items recognised in
Fixed deposits as OCI during the year:
margin money Income tax relating to
(remaining maturity re-measurements gain
more than 12 months)* 3.80 3.66 on defined benefit plans 0.94 3.67
Capital subsidy
receivable 37.06 33.08 Income tax relating to
Derivative - carried at cash flow hedge 0.25 -
fair value - 20.34 1.19 3.67
40.86 57.08
*Amount held as margin money under lien to tax authority and
electricity department.
Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for 31st March, 2018
and 31st March, 2017:
H in Crore
Particulars
Accounting profit before income tax 1,911.40 1,186.94
At India's statutory income tax rate of 34.608 %
(31st March, 2017: 34.608%) 661.50 410.78
Effect of prior year adjustments 1.08 16.64
Effect of weighted deductions and exemption (282.24) (316.88)
Effect of non-deductible expenses for tax purpose 44.25 13.75
Effect of impairment of investment - 87.01
Others 15.38 2.65
Effect of differential tax rate impact 2.91 (1.95)
Income tax expense reported in the profit or loss 442.88 212.00
Effective income tax rate 23.17% 17.86%
Deferred tax:
Deferred tax relates to the following:
H in Crore
Balance sheet Profit and loss Other Comprehensive
Income
As As For For For For
at 31st at 31st the year the year the year the year
Particulars
March, March, ended 31st ended 31st ended 31st ended 31st
2018 2017 March, March, March, March,
2018 2017 2018 2017
Property, plant and
equipment and intangible
assets (515.08) (490.92) 24.16 60.92 - -
Employment benefits 50.95 49.77 (2.12) 23.68.............0.94 3.67
Others 14.54 11.64 (3.15) 3.22 0.25 -
Provision for doubtful debts 52.49 45.07 (7.42) (11.37) - -
Deferred revenue 26.09 28.28 2.19 2.45 - -
Provision for right of return/
discounts and others 66.71 51.56 (15.15) 3.27 - -
MAT credit entitlement 351.10 364.14 13.04 (181.23) - -
Deferred tax expense/
(income) in the profit or loss - - 11.55 (99.06)................1.19 3.67
Deferred tax assets/
(liabilities) (net) 46.80 59.54 - - - -
Reflected in the balance sheet as follows:

H in Crore
As at As at
Particulars
Deferred tax assets 561.88 550.46
Deferred tax liabilities (515.08) (490.92)
Deferred tax assets/ (liabilities) (net) 46.80 59.54
Reconciliation of deferred tax assets/ (liabilities) (net):
H in Crore Note 10:
Inventories H in Crore
As As
Particulars at 31st at 31st
March, March,
2018
As As2017
March, March,
Opening balance as of 2018 2017
(Lower of cost and net
1st April 59.54 (35.85) realisable value)
Tax income/ (expense) Raw materials and
during the period packing materials 1,285.05 1,111.95
recognised in statement (Includes goods-in-
of profit and loss (11.55) 99.06 transit H 36.63 Crore
Tax income/(expense) (previous year H 5.12
during the period Crore)
recognised in OCI (1.19) (3.67) Work-in-progress 729.73 544.95
(Includes goods-in-
transit H 19.55 Crore
(previous year H 12.88
Note 9: Other non-current assets
Crore)
H in Crore
Finished goods ........700.38 680.12
As at As at (Includes goods-in-
Particulars 31st March, 31st March, transit H 56.21 Crore
2018 2017 (previous year H
(Unsecured, considered 93.96 Crore)
good, except otherwise Stock-in-trade 289.02 282.01
stated) (Includes goods-in-
Capital advances transit H 8.70 Crore
Secured, considered (previous year H 18.77
good # 4.69 Crore)
0.78
considered good * Stores, spares and
Deferred lease assets 212.30 consumables 33.80 34.47
94.10
Prepaid expenses 38.27 3,037.98 2,653.50
36.79
receivable 1.90
2.35 The Company recorded inventory write down (net)
41.05
38.38 of H 152.28 Crore (31st March, 2017 H 180.83 Crore).
172.40 298.21 This is included as part of cost of materials
# Secured against bank consumed and changes in inventories of finished
guarantees. goods, work-in-progress and stock -in- trade in the
statement of profit or loss.
* Includes amount paid
to wholly owned
subsidiary
- Meditab Specialities Pvt.
Ltd. (refer note 42) 55.74 55.74
Note 11: Current

investments H in Crore
As at As at
Particulars
Investment in mutual funds (unquoted) 1,039.74 638.18
(Carried at fair value through profit or loss)
1,039.74 638.18
Aggregate amount of unquoted investments 1,039.74 638.18
Note 12: Trade receivables Note 14: Bank balance other than cash and
H in Crore cash equivalents
As As H in Crore
Particulars at 31st
at 31st
As at As at
March, March, Particulars 31st March, 31st March,
2018 2017 2018 2017
(Carried at Bank deposits (original
amortised cost,
Remittance in transit 8.84 - maturity between 3 11.45 -
Cash on hand
except otherwise 0.52 0.63 Loan toand
months employees
12 months) 6.29- 3.78
9.53
stated) 217.45 44.60 Balance earmarked for 17.74 9.53
Unsecured, unclaimed dividend* 10.08 10.08
considered good # 2,336.32 1,938.79
Unsecured, 10.08 13.86

considered doubtful 143.15 130.24 * The above balances are restricted for specific use. There are no
amounts due and outstanding to be credited to the Investor
Less: Allowance for Education and Protection Fund as at 31st March, 2018 and 31st
doubtful debts (143.15) (130.24) March, 2017.
2,336.32 1,938.79
#Includes amount due Note 15: Current financial assets - Loans
from related parties.
H in Crore
(refer note 42) 633.71 605.06
As As
-Trade receivable are interest and non-interest bearing Particulars at 31st at 31st
and are generally upto 180 days term. March, March,
-For aging analysis of trade receivables, refer to 2018 2017
note 46. (Unsecured,
considered good,
except otherwise
Note 13: Cash and cash equivalents stated)
H in Crore (Carried at amortised
As As Cost, except otherwise
Particulars at 31st at 31st stated)
March, March, Deposits with body
2018 2017 corporates and others
Balances with banks
In current accounts ........207.89 43.97
In fixed deposits
(original maturity
less
than 3 months) 0.20 -
Unsecured,
considered good 11.45 -
Unsecured,
considered doubtful 2.25 2.25
Less: Allowance for
doubtful (2.25) (2.25)
Statements
Note 16: Current financial assets - Others Note 17: Other current assets H in Crore
H in Crore
As As
March, March,
2018
As As2017
March, March,
(Carried at amortised 2018 2017 Advances to suppliers 126.49 111.23
cost, except otherwise Prepaid expenses 41.99 33.39
stated) Balances with statutory/
Incentives/ benefits revenue authorities like
receivable from goods and service tax
Government 203.90 216.55 (GST), excise, customs,
Deposit (refer note 40 B) 175.08 175.08 service tax and value
Derivative - carried at added tax, etc. 639.57 478.82
fair value 32.65 - Others 0.10 0.02
Fixed deposits (having 808.15 623.46
remaining maturity less
than 12 months) # 3.52 -
Inter-company
receivables (refer note 42) 32.75 22.86
Other receivables
Considered good 22.81 8.93
Considered doubtful 3.93 0.46
Less: allowance for
doubtful advances (3.93) (0.46)
470.71 423.42
# Amount held as margin money to government authority.
Note 18: Share capital

H in Crore
As at As at
Particulars Numbers Numbers
Authorised
Equity shares of H 2/- each 87,50,00,000 175.00 87,50,00,000 175.00
175.00 175.00
Issued *
161.02 161.10
Subscribed and Paid-up
Equity shares of H 2/- each, fully paid up 80,51,19,164 161.02 80,45,10,074 160.90
161.02 160.90
*The Board of Directors of the Company at its meeting held on 7th February 2018, approved cancellation of the unsubscribed portion of
the issued capital of the Company representing 10,03,395 equity shares of H 2/- each aggregating to H 0.20 Crore, effective from 8th
February, 2018.
- Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting
period
As at As at
Particulars
No. of shares outstanding at the beginning of the period 80,45,10,074 80,33,84,282
Add: Allotment of equity shares on exercise of employee stock options 6,09,090 11,25,792
No. of shares outstanding at the end of the period 80,51,19,164 80,45,10,074
- Details of shareholders holding more than 5 percent shares in the

Company
As at 31st March, 2018 As at 31st March, 2017

Number of shares % of Holdings Number of shares % of Holdings
Dr Y. K. Hamied 16,67,42,687 20.71% 16,67,42,687 20.73%
Ms Sophie Ahmed 4,59,82,000 5.71% 4,59,82,000 5.72%
ICICI Prudential Mutual Fund 3,11,49,240 3.87% 4,11,90,092 5.12%
Life Insurance Corporation of India 2,61,22,794 3.24% 4,53,25,137 5.63%
- Terms and rights attached to equity shares

Note 19: Other equity
The Company has only one class of equity shares
H in Crore
having a par value of H 2 per share. Each holder of
equity share is entitled to one vote per share. The As As
Company declares and pays dividends in Indian Particulars at 31st at 31st
Rupees. The dividend proposed by the Board of March, March,
Directors is subject to the approval of the 2018 2017
shareholders in the ensuing Annual General Meeting. In Capital reserve 0.08 0.08
the event of liquidation of the Company, the holders Securities premium
of equity shares will be entitled to receive remaining reserve 1,542.15 1,505.24
assets of the Company, after distribution of all General reserve 3,141.73 3,141.60
preferential amounts. The distribution will be in Employee stock options
proportion to the number of equity shares held by the reserve 53.76 59.40
shareholder. Hedge reserve 0.47
- Retained earnings
- The Company does not have any holding
9,214.31 7,933.29
company.
13,952.50 12,639.61
- Equity shares reserved for issue under employee
stock options
Share application money pending allotment
Refer note 43 for number of stock options against
which equity shares to be issued by the Company - Nil as at 31st March, 2018 (as at 31st March, 2017 is
upon vesting and exercise of those stock options by H 11,172).
the option holders as per the relevant schemes.
Statements H in Crore
Nature and purpose of reserve:-

Capital reserve As As
The Company recognised profit or loss on sale, issue, March, March,
2018 by 2018-192017
purchase or cancellation of the Company’s own *Sales tax deferral loan is interest free and repayable and
shown under current maturities of long term borrowings as per
equity instruments to capital reserve. Capital
reserve may be used by the Company only for
some specific purpose.
Securities premium reserve
Securities premium reserve is used to record the

premium on issue of shares. These reserve is utilised
in accordance with the provisions of the Act.
General reserve
The General reserve is used from time to time to

transfer profit from retained earning for appropriation
purpose.
Hedge reserve
For the forward contracts designated as cash flow

hedges, the effective portion of the fair value of
forward contracts are recognised in cash flow
hedging reserve under other equity.
Employee stock options reserve
Companies has established various equity settled

share based payments plan for certain categories of
employee of the Company.
Note 20: Financial liabilities -Borrowings

H in Crore
As As
March, March,
2018 2017
(a) Non-current
(Carried at amortised
cost, except otherwise
stated)
Unsecured loan
Deferred sales tax

loan * - 0.07
- 0.07
(b) Current Loans
repayable on
demand from banks
Unsecured loans
Packing credit from
banks 142.54 324.25
Buyers' credit 31.89 -
Bank overdraft - 0.01
174.43 324.26
Note 21: Other financial

liabilities H in Crore
As As
March, March,
2018 2017
(Carried at
amortised cost,
repayment schedule. except otherwise
stated)
Security deposits 50.11 45.06
50.11 45.06
Note 22: Provisions

H in Crore
As at As
Particulars 31st March, at 31st
2018 March,
2017
Non-current
Provision for
employee benefits
[refer note 41] 124.45 125.61
124.45 125.61
Current
Provision for
employee benefits
[refer note 41] 113.34 98.96
Provision for right
of return/discounts
and others 190.90 148.97
Provision for litigation
Note 22: Provisions (Contd..) payment made during the year to any Micro and
H in Small Enterprises. This information as required to be
Provision Crore disclosed under the Micro, Small and Medium
for Enterprises Development Act, 2006, has been
Provision
determined to the extent such parties have been
for right
identified on the basis of
Particulars litigation - of return/ information available with the Company.
DPCO discounts
and others
At 1st April, 2016 13.27 158.41 Note 25: Other financial liabilities - Current
Provided during the year 1.58 77.79 H in Crore
Utilised - (87.23)
As at
As
At 31 March, 2017
st
14.85 148.97 Particulars at 31st
31 March,
st
Provided during the year March, 2017

(refer note 50) 79.09 83.40 2018
(Carried at amortised
Utilised - (41.47)
cost, except otherwise
At 31st March, 2018 93.94 190.90 stated)
Current maturities of
non-current borrowings
Note 23: Other non-current liabilities Deferred sales tax
H in Crore loans 0.07 0.07
As As Unclaimed dividend* 10.08 10.08
Particulars at 31st at 31st Security deposits 1.65 1.61
March, March, Capital creditors 71.26 165.90
2018 2017 Employee dues 86.67 82.67
Derivative liabilities -
Deferred Government
carried at fair value 2.00 -
grant 7.60 5.48
Outstanding liabilities 101.34 180.42
Deferred revenue 67.59
75.19 74.66
80.14
273.07 440.75
*There are no amounts due and outstanding to be credited to
Investor Education & Protection Fund.
Note 24: Trade payables
H in Crore
As
Note 26: Other current liabilities As
H in Crore
March, March,
2018 2017 As As
(Carried at
March, March,
amortised cost,
2018 2017
except otherwise
stated) Advance from customers 204.80 169.50
Due to micro and small Othe r payabl es:
enterprises 18.38 36.91 Statutory dues 92.50 51.71
Others 1,561.64 1,261.30 Deferred government
grant 1.63 1.39
There are no Micro and Small Enterprises, to whom Deferred revenue ............7.07 7.07
the company owes dues, which are outstanding for Others - 0.16
306.00 229.83
more than 45 days as at 31st March, 2018, and no
interest
Note 27: Revenue from sale of products Note 29: Other income
H in Crore
(Contd..) H in Crore
For the For the
Particulars
2018 2017
For the For the
Particulars
2018 2017
Sale of products (refer Non-current
note 51 (i)) 11,004.44 10,637.08 investments -
11,004.44 10,637.08 carried
at amortised cost 0.00 -
Current investments -
Note 28: Other operating income
carried at fair value 2.14 -
H in Crore
Government grants $ 1.61 1.39
For the For the
Net gain on foreign
Particulars currency transaction
and translation 24.81 -
2018 2017
Net gain on sale
Rendering of services 66.94 36.44 of investment -
Export incentives 137.23 162.31 Current investments -
Technical know-how carried at FVTPL 63.35 44.52 Non-
and licensing fees 54.50 52.02 current
Scrap sales 29.44 26.53 investments -
Sale of ANDA and other (subsidiaries) 15.36 -
product license 85.42 - Fair value gain on
Miscellaneous other financial instruments
operating income 66.84 60.20 at fair value through
440.37 337.50 profit
or loss 2.07 2.44
Net gain on disposal
Note 29: Other income of property, plant and
H in Crore equipments 12.15 -
For the For the Sundry balance written
year ended year ended back - 5.77
Particulars
31st March, 31st March, Insurance claims 3.66 5.33
2018 2017 Rent income 1.39 1.60
Interest income - Other non-operating
Subsidiaries - income 35.38 29.83
334.88 129.85
carried
at amortised cost 20.20 20.33 $ Government grants pertain to subsidy of property, plant and
Others - carried at equipment of manufacturing set up. There are no unfulfilled conditions or
contingencies attached to these grants.
amortised cost 7.67 7.34
Dividend income -
Subsidiaries - carried
at amortised cost 145.09 11.30
Note 30: Cost of materials consumed Note 32: Changes in Inventories of
H in Crore
finished goods, work-in-progress and
For the For the stock-in-trade (Contd..)
year ended year ended H in Crore
Particulars
For the For the
2018 2017
Particulars
Semi finished goods 31st March, 31st March,
consumed 1,322.84 1,079.06 2018 2017
Raw material consumed 1,062.08 870.94
Packing material Movement of
consumed 882.64 878.54 (increase)/decrease in
Cost of material inventories
supplied - others 35.75 127.50 Work-in-progress (184.78) 217.25
Finished goods (20.26) (77.55)
Total consumption 3,303.31 2,956.04
Stock-in-trade (7.01) (83.43)
(212.05) 56.27
Note 31: Purchases stock-in-trade
of H in Crore
For For Note 33: Employee benefits expenses
the year the year H in Crore
Particulars
ended 31st ended 31st For the For the
March, March, year ended year ended
2018 2017 Particulars 31st March, 31st March,
Purchase of stock-in- 2018 2017
trade 1,064.23 1,128.99 Salaries and wages 1,582.96 1,540.14
1,064.23 1,128.99
Contribution to
provident and other
Note 32: Changes in Inventories of
funds (refer note 41) 100.11 109.71
finished goods, work-in-progress and Expense on employee
stock-in-trade
H in Crore stock option scheme
For the For the (refer note 43) * 31.40 22.18
year ended year ended Staff welfare expenses 71.47 56.94
Particulars
31st March, 31st March, 1,785.94 1,728.97
2018 2017
* - ESOP charges are net of recovery of H 0.05 rom subsidiaries.
Opening stock Crore f
(Previous year H 7.96 Crore charged to
subsidiaries).
Work-in-progress 544.95 762.20
Finished goods
Stock-in-trade 680.12
282.01 602.57
198.58
1,507.08 1,563.35 Note 34: Finance costs
H in Crore
Less: Closing stock (refer
note 10) For the For the
Work-in-progress 729.73 544.95 Particulars year ended year ended
Finished goods 700.38 680.12 31st March, 31st March,
Stock-in-trade 289.02 282.01 2018 2017
1,719.13 1,507.08 Interest expense 11.90 39.20
(Increase)/decrease (212.05) 56.27 11.90 39.20
Note 35: Depreciation, impairment and Note 36: Other expenses
amortisation expense (Contd..) H in Crore
H in Crore For the For the
For the For the year ended year ended
Particulars
year ended year ended 31st March, 31st March,
Particulars
31st March, 31st March, 2018 2017
2018 2017
Contractual services 155.69 163.55
Depreciation on Non-executive directors'
property, plant and remuneration 9.07 6.90
equipment (refer note 2) 480.45 437.16 Postage and telephone
Impairment of property, expenses 34.23 31.54
plant and equipment Legal and Professional
(refer note 2) - 27.87 fees 430.50 395.26
Depreciation on Payment to auditors
investment properties Audit fee 1.21 1.22
(refer note 3) 0.00 0.01 Taxation matters 0.08 0.05
Amortisation of For other services 0.11 0.29
intangible assets (refer
Reimbursement of
note 4) 49.16 34.93
expenses 0.00 0.04
529.61 499.97
Net loss on sale/
disposal of property,
Note 36: Other expenses plant and equipment --------------- 16.83
H in Crore CSR expenditure (refer
Note 47) 32.20 28.25
For the For the
Donations @ 9.09 0.04
Particulars Research - clinical trials,
samples and grants 273.46 280.03
2018 2017
Excise duty (refer note
Manufacturing expenses...........475.13 443.37 51(i)) ............54.91 206.09
Stores and spares ..........119.63 94.14 Miscellaneous expenses 302.54 266.30
Repairs and 3,307.83 3,256.64
maintenance of: @
Includes H 9.00 Crore (Previous year H nil)
Buildings 28.00 34.72 towards political contribution.
Plant and equipment 72.78 63.84
Insurance 16.07 16.49
Note 37: Impairment of investment
Rent 50.95 56.76
H in Crore
Rates and taxes ..........26.09 26.98
For the For the
Power and fuel .........239.01 206.28
Travelling and Particulars
conveyance 266.26 239.12
2018 2017
Sales promotion
expenses .........269.67 231.90 Impairment of
Commission on sales .........246.35 234.41 investment* - 251.41
Freight and forwarding 162.07 157.82 - 251.41
Allowances and bad * The Company’s wholly owned subsidiary Cipla BioTec Pvt. Ltd.
had decided to reposition the Biotechnology business to explore
debts written off (net) ..........32.73 41.12
new business development opportunities including in-licensing to
Loss on foreign de-risk future investments in the segment without solely relying on
exchange fluctuation in-house development. Accordingly, the Company had re-assessed
the carrying value of investment in Cipla BioTec Pvt. Ltd. and
(net) - 13.30 recorded impairment charge of H 251.41 Crore during the previous
year ended 31st March, 2017.
Note 38: Research and development expenditure (R &D)
H in Crore
Particulars
The amount of expenditure as shown in the respective heads
of account is as under:
R&D capital expenditure (Gross)
Building 5.56 8.64
Assets other than building 57.81 110.70
63.37 119.34
Less: Realisation on sale of R&D assets
Assets other than building 0.09 0.20
0.09 0.20
63.28 119.14
R&D revenue expenditure charged to the Profit or Loss
Materials consumed 243.73 261.51
Employee benefits expenses 196.57 183.08
Power and fuel 24.52 24.77
Repairs and maintenance 25.18 25.46
Manufacturing expenses 19.58 17.75
Professional fees 68.84 48.59
Depreciation 52.74 50.76
Research - clinical trials, samples and grants 100.09 96.08
Printing and stationery 0.47 0.55
Travelling expenses 12.72 12.68
Other research and development expenses 155.31 151.50
Allocated manufacturing expenses for R&D batches 17.21 38.69
916.96 911.42
980.24 1,030.56
Amount eligible for weighted deduction under section 35(2AB) of the
Income Tax Act, 1961
R&D capital expenditure (Gross) 57.81 110.70
R&D revenue expenditure 726.33 749.21
784.14 859.91
Less: Realisation on sale of R&D assets 0.09 0.20
784.05 859.71
Sales for the year 11,444.81 10,974.58
Total R&D expenditure/sales 8.56% 9.39%
Total eligible R&D expenditure/sales 6.85% 7.83%
Note 39: Lease accounting

Where the Company is a lessee
The Company has obtained certain premises for its business operations (including furniture and fixtures,
therein as applicable) under cancellable operating lease or leave and license agreements ranging from 11
months to 5 years
or longer which are subject to renewal at mutual 4,511.06 4,760.62
consent. The cancellable lease arrangements can be
terminated by either party after giving due notice.
Lease payments are recognised in the profit or loss
under ‘Rent’ in Note 36.
Where the Company is a lessor
The Company has given certain premises under

operating lease or leave and license agreement.
The Company retains substantially all risks and
benefits of ownership of the leased asset and
hence classified as Operating lease. Lease income
on such operating lease is recognised in Statement
of Profit and Loss under ‘Rent’ in Note 29.
Note 40: Contingent liabilities, commitments

and other litigations (to the extent not
provided for)
A. Details of contingent liabilities and
commitments
H in Crore
As As
at 31st at 31st
March, March,
2018 2017
Contingent liabilities
Claims against
the Company not
acknowledged as debt 253.93 315.30
Guarantees* 3,800.44 3,794.62
Letters of credit 5.73 26.70
Income tax on
account of
disallowance/ 105.37 100.29
additions
Excise duty/service tax
on account of valuation/
cenvat credit 124.30 116.89
Sales tax on account of
credit/classification 4.90 2.43
4,294.67 4,356.23
Commitments
Estimated amount of
contracts unexecuted
on capital account 216.39 404.39
216.39 404.39
*The Company has given guarantees in favour of various banks
for H 3,661.86 Crore (31st March, 2017 H 3,643.60 Crore) against
the loan granted to Cipla (EU) Ltd. and InvaGen Pharmaceuticals
Inc. (wholly owned subsidiaries)
Note:
i. Claims against the Company not acknowledged

as debt include claim relating to pricing,
commission etc.
ii. It is not practicable for the group to estimate

the timing of cash outflow, if any, in respect of
our pending resolution of the respective
proceedings as it is determined only on receipt
of judgements/ decisions pending with various
authorities.
B. Details of other litigation:
(i) The Government of India has served demand

notices in March 1995 and May 1995 on the
Company in respect of six bulk drugs, claiming
that an amount of Rs. 5.46 Crore along with
interest due thereon is payable into the DPEA
under the Drugs (Prices Control) Order, 1979
on account of alleged unintended benefit
enjoyed by the Company. The Company has
filed its replies to the notices and has
contended that no amount is payable into the
DPEA under the Drugs (Prices Control) Order,
1979.
(ii) The Company had received various notices of

demand from the National Pharmaceutical
Pricing Authority (NPPA), Government of India,
on account of alleged overcharging in respect
of certain drugs under the Drugs (Prices
Control) Order, 1995 (“DPCO, 1995”). The
total demand against the Company as stated
in NPPA public disclosure amounts to H
2,606.59 Crore.
Out of the above, demand notices pertaining to a

set of products viz, Norfloxacin, Ciprofloxacin,
Salbutamol and Theophylline were challenged by
the Company (i) in the Hon’ble Bombay High Court
on the ground that bulk drugs contained in the
said formulations are not amenable to price
control, as they cannot be included in the ambit of
price control based on the parameters contained in
the Drug Policy, 1994 on which the DPCO, 1995 is
based and (ii) in the Hon’ble Allahabad High Court
on process followed for fixation of pricing norms.
These Petitions were decided in favour of the
Company
and the matters were carried in appeal by the
Bombay High Court, no provision is considered
Union of India to the Hon’ble Supreme Court of
necessary in respect of the notices of demand
India. The Hon’ble Supreme Court of India vide its
received till date aggregating to H 1,736.00 Crore.
judgment dated 1st August, 2003 restored the said
It may be noted that NPPA in its public disclosure
Writ Petitions to the Bombay High Court with
has stated the total demand amount against the
directions that the Court will have to consider the
Company in relation to the above said molecules to
Petitions afresh, having due regard to the
be H 2,282.40 Crore (after adjusting deposit of H
observations made by the Supreme Court in its
175.08 Crore), however, the Company has not
judgment. On Union of India filing Transfer Petitions,
received any further notices beyond an aggregate
the Supreme Court ordered transfer of the said
amount of H 1,736.00 Crore.
petitions restored to the Bombay High Court for
being heard along with the Appeal filed against the
Allahabad High Court order. Subsequently, vide its Note 41: Employee benefits
Order dated 20th July, 2016 the Hon’ble Supreme
Court recalled its transfer order and remanded the
Employee benefits
Petitions to Bombay High Court for hearing. While
remanding the matter to Bombay High Court, the i Short term employee benefits
Hon’ble Supreme Court directed Cipla to deposit
50% of the demanded amount with NPPA as stated All employee benefits payable wholly within
in its order dated 1st August, 2003 which at that twelve months of rendering the service are
point of time was H 350.15 Crore. Complying with classified as short term employee benefits.
the directions passed by the Hon’ble Supreme Benefits such as salaries, wages, short terms
Court, Cipla has deposited an amount of H 175.08 compensated absences, etc., and the expected
Crore which has been received and acknowledged cost of bonus, ex-gratia are recognised in the
by NPPA. Furthermore, the Company has not received period in which the employee renders the
any further notices post such transfer of cases to related service.
Bombay High Court. Meanwhile, the Hon’ble
Supreme Court of India vide its Order and ii Long term employee benefits
Judgment dated 21 st October,2016, allowed the
Disclosure in respect of employee benefits persuant to
Appeals filed by the Government against the
Ind AS -19
Judgment and Order of the Hon’ble Allahabad High
Court regarding basis of fixation of retail prices. a. Brief description of the Plans
The said order was specific to fixation of retail prices Defined contribution plan :
without adhering to the formula/process laid down
The Company’s defined contribution plan
in DPCO, 1995. However, the grounds relating to
is Employees’ Pension Scheme (under the
inclusion of certain drugs within the span of price
provisions of Employees’ Provident Funds and
control continues to be sub-judice with the Hon’ble
Miscellaneous Provisions Act, 1952) since the
Bombay High Court. The Company has been legally
Company has no further obligation beyond
advised that it has a substantially strong case on
making the contributions.
the merits of the matter, especially under the
guidelines/principles of interpretation of the Drug Defined benefit and other long term benefit plans :
Policy enunciated by the Hon’ble Supreme Court of
India. Although, the decision of Hon’ble Supreme i. The Company has two schemes for long
Court dated 21st October, 2016 referred above was in term benefits namely, provident fund
favour of Union of India with respect to the appeals and gratuity:
preferred by the Government challenging the
Hon’ble Allahabad High Court order, basis the facts
and legal advice on the matter sub-judice with the
Hon’ble
The provident fund plan, a funded
the Company and the trustees have to
scheme is operated by the Company’s
ensure that they are at all times fully
Provident Fund Trust, which is
compliant with the relevant provisions of
recognised by the Income tax
the Income Tax Act and Rules. Besides this
authorities and administered through
if the Company is covered by the Payment
trustees/appropriate authorities. of Gratuity Act, 1972 then the Company is
The Company provides for gratuity, a bound to pay the statutory minimum gratuity
as prescribed under this Act.
defined benefit plan based on actuarial
valuation as of the reporting date, based d. Governance of the plan
upon which, the Company contributes all
the ascertained liabilities to the Insurer The Company has setup an income tax
Managed Funds. The Company operates approved irrevocable trust fund to finance
gratuity plan through a trust, wherein the plan liability. The trustees of the trust
every employee is entitled to the benefit fund are responsible for the overall
equivalent to fifteen days salary last governance of the plan.
drawn for each completed year of
e. Inherent risks
service. The same is payable on
termination of service or retirement, The plan is of a final salary defined benefit
whichever is earlier. The benefit vests in nature which is sponsored by the
after five years of continuous service. In Company and hence it underwrites all the
case of some employees, the Company’s risks pertaining to the plan. In particular,
scheme is more favourable as compared there is a risk for the Company that any
to the obligation under Payment of adverse salary growth or demographic
Gratuity Act, 1972. experience or inadequate returns on
ii. The employees of the Company are also underlying plan assets can result in an
entitled to leave encashment .The increase in cost of providing these benefits
provision is made based on actuarial to employees in future. Since the benefits
valuation for leave encashment at the are lump sum in nature the plan is not
year end. subject to any longevity risks
b. Nature of benefits f. Charge to the profit or loss
- Based on contribution
The Company operates a defined benefit
final salary gratuity plan which is open to H in Crore
new entrants. The gratuity benefits For the For the
payable to the employees are based on the year ended year ended
employee’s service and last drawn salary at 31st March, 31st March,
the time of leaving. The employees do not 2018 2017
contribute towards this plan and the full Employees’
cost of providing these benefits are met by pension scheme 26.72 25.65
the Company. Provident fund 41.85 42.37
c. Regulatory framework Others - ESIS,
Labour welfare
There are no minimum funding fund, etc. 3.81 2.80
requirements for a gratuity plan in India.
The trustees of the gratuity fund have a
fiduciary responsibility to act according to
the provisions of the trust deed and rules.
Since the fund is Income tax approved,
72.38 70.82
g. Disclosures for defined benefit plans based on actuarial reports as on 31st March 2018
H in Crore
2018 Gratuity 2017 Gratuity
(funded plan) (funded plan)
i. Change in defined benefit obligation
Opening defined benefit obligation 139.73 134.06
Interest cost 10.68 10.82
Current service cost 27.37 27.05
Actuarial changes arising from changes in financial (3.50) 7.86
assumptions
Actuarial changes arising from changes in experience (2.39) (16.83)
assumptions
Benefits paid (37.54) (23.23)
Liability at the end of the year 134.35 139.73
ii. Change in fair value of assets
Opening fair value of plan assets 135.06 96.83
Expected return on plan assets 10.32 7.81
Actuarial gain/(loss) / Return on plan assets, excluding
interest (3.18) 1.63
income
Contributions by employer 28.00 52.02
Closing fair value of plan assets 138.27 135.06
iii. Amount recognised in Balance Sheet
Present value of obligations as at year end (134.35) (139.73)
Fair value of plan assets as at year end 138.27 135.06
Net asset/(liability) recognised 3.92 (4.67)
iv. Expenses recognised in profit or loss
Interest on defined benefit obligation 10.68 10.82
Expected return on plan assets (10.32) (7.81)
Benefits paid directly by Company - 8.83
Total expense recognised in profit or loss 27.73 38.89
v. Expenses recognised in profit or loss [OCI]
Actuarial changes arising from changes in financial assumptions (3.50) 7.86
Actuarial changes arising from changes in experience assumptions (2.39) (16.83)
Actuarial gain/(loss) return on plan assets, excluding interest income 3.18 (1.63)
Net (income)/expense for the period recognised in OCI (2.71) (10.60)
vi. Actual return on plan assets
Actuarial gain/(loss) on plan assets (3.18) 1.63
Actual return on plan assets 7.14 9.44
vii. Asset information
Insurer managed funds 100% 100%
viii. Expected employer's contribution for the next year 23.23 32.04
The actuarial calculations used to estimate commitments and expenses in respect of gratuity and
compensated absences are based on the following assumptions which if changed, would affect the
commitment’s size, funding requirements and expense :

Principal actuarial assumptions used
Discounted rate (per annum) 7.83% 7.64%
Expected rate of return on plan assets 7.83% 7.64%
Expected rate of future salary increase (per annum) 5.00% 5.00%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in employment market.
The sensitivity analysis below has been determined based on reasonable possible changes of the respective
assumption occurring at the end of the reporting period while holding all other assumptions constant:
H in Crore
For the Year ended For the Year ended
Discount rate Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%
Increase (decrease) in the defined
benefit liability (16.47) 20.01 (17.30) 21.14
Salary growth rate Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%
benefit liability 20.39 (17.01) 21.50 (17.84)
Attrition rate Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%
benefit liability 5.97 (6.93) 5.98 (6.93)
h. The details of the Company’s defined benefit plans in respect of the Company owned provident fund trust
H in Crore
2018 Provident 2017 Provident
fund (funded plan) fund (funded plan)
Employee Contribution 76.69 78.09
Liability transferred in 13.52 9.33
Other experience adjustment 0.61 -
Actuarial gain 0.32 3.28
Contributions 118.53 120.47
Transfer of plan assets 13.52 9.33
h. The details of the Company’s defined benefit plans in respect of the Company owned provident fund
trust
H in Crore
Other experience adjustment 0.04
iii. Amount recognised in Balance Sheet
Funded status (13.02) (13.28)
Net asset/(liability) recognised - -
iv. Expenses recognised in Statement of Profit and Loss
Total expense recognised in Statement of Profit and Loss 41.85 42.37
v. Actual return on plan assets
Actuarial gain on plan assets 0.32 3.28
vi. Asset information
Investment in PSU bonds 401.94 368.94
Investment in Government Securities 381.58 331.41
Bank Special deposit 15.58 15.58
Investment in other securities 36.31 24.39
Private Sector Bonds 4.00 4.00
Equity/Insurer Managed Funds/Mutual Funds 34.84 32.82
Cash and Cash Equivalents 1.08 1.00
Total Assets at the end of the year 875.33 778.14
vii. Principal Actuarial assumptions used
Expected rate of return on plan assets (per annum) 8.55% 8.65%
The estimates of future salary increases, considered in
Actuarial valuation, take account of inflation, seniority,
Promotion and other relevant factors, such as supply and
demand in employment 5.00% 5.00%
market.
viii. Experience adjustments
Defined benefit obligation 862.31 764.86
Plan assets (875.33) (778.14)
Deficit/(Surplus) (13.02) (13.28)
Experience adjustment on Plan assets -gain 0.32 3.28
Note: 42 Related Party Disclosures
Sr.
As per Ind AS-24, “Related Party Disclosures”, Name of the Company
No.
the
related parties where control exists or where 33 Cipla-Medpro Proprietary Limited
significant influence exists and with whom transaction 34 Cipla-Medpro Distribution Centre Proprietary
have taken
place are as below: Limited
A. Subsidiary Companies including step-down 35 Cipla Medpro Botswana Proprietary Limited
subsidiaries, associate companies and joint 36 Cipla Medpro Research and Development
venture : Proprietary Limited (upto 6th December, 2016)
Sr. 37 Cipla Nutrition Proprietary Limited

No. Name of the Company 38 Cipla Vet Proprietary Limited (upto 1st June, 2017)
39 Medpro Pharmaceutica Proprietary Limited
40 Med Man Care Proprietary Limited
41 Breathe Free Lanka (Private) Limited
1 Cipla FZE upto 31st March, 2018*
42 Cipla Canada Inc. (upto 1st March, 2017)
2 Cipla (Mauritius) Limited
43 Medica Pharmaceutical Industries Company
Limited
3 Cipla Medpro South Africa Proprietary Limited
44 Al-Jabal For Drugs and Medical Appliances
Company Limited (upto 26th March, 2018)
4 Cipla Holding B.V.
45 Cipla Pharma Lanka (Private) Limited
5 Cipla BioTec Private Limited 46 Cipla Pharma Nigeria Limited (upto 9th
January, 2018)
47 Cipla Brasil Importadora E Distribuidora De
6 Cipla (EU) Limited
7 Cipla Health Limited
8 Goldencross Pharma Private Limited
9 Jay Precision Pharmaceuticals Private Limited
10 Meditab Specialities Private Limited
11 Saba Investment Limited Medicamentos Ltda.

Subsidiaries (held indirectly) 48 Cipla Maroc SA
49 Cipla Middle East Pharmaceuticals FZ-LLC
12 Four M Propack Private Limited (upto 50 Quality Chemicals Limited
1st February, 2017) 51 Cipla Philippines Inc.
52 Cipla USA Inc.
13 Cipla (UK) Limited
53 InvaGen Pharmaceuticals Inc.
54 Exelan Pharmaceuticals Inc.
14 Cipla Australia Pty. Limited
55 Anmaraté (Pty) Limited, South Africa (w.e.f 12th
15 Medispray Laboratories Pvt. Limited
16 Sitec Labs Pvt. Limited
17 Meditab Holdings Limited
18 Meditab Specialities New Zealand Limited (upto April, 2017)

10th July, 2017) 56 Cipla BioTec South Africa (Pty) Limited (w.e.f.
10th
19 Cipla İlaç Ticaret Anonim Şirketi June, 2016)
20 Cipla Kenya Limited 57 Cipla Algérie (w.e.f. 6th June,2016)
58 Cipla Technology LLC, USA (w.e.f. 13th
21 Cipla Malaysia Sdn. Bhd. November,
22 Cipla Europe NV 2017)

23 Cipla Quality Chemical Industries Limited Associates
24 Cipla Croatia d.o.o. (upto 19th January, 2018) 59 Stempeutics Research Private Limited
25 Galilee Marketing Proprietary Limited * in the process of liquidation
26 Inyanga Trading 386 Proprietary Limited
27 Xeragen Laboratories Proprietary Limited B. Key management personnel
28 Cipla Medpro Holdings Proprietary Limited
1 Ms Samina Vaziralli - Executive Vice-
29 Cape to Cairo Exports Proprietary Limited Chairperson
[appointed as executive director (w.e.f. 10th

30 Cipla Agrimed Proprietary Limited (upto 1st June,
July, 2015) and as Executive Vice-Chairperson
2017)
(w.e.f. 1st September, 2016)]
31 Cipla Dibcare Proprietary Limited

32 Cipla Life Sciences Proprietary Limited
2 Mr Umang Vohra – Managing Director and
Disclosure in respect of related parties
Global Chief Executive Officer
During the year, the following transactions were carried
(Global Chief Operating Officer and Global out with the related parties in the ordinary course of
business:
H in Crore
Chief Financial Officer upto 31st July, 2016;
Global Chief Operating Officer from 1st August, As atst March, 20182017
31st March,31 As at
2016 to 31 August, 2016 and Managing
st
Transaction
Director
and Global Chief Executive Officer w.e.f. 1st
September, 2016) 2 Cipla Limited Employee’s Gratuity Trust
3 Cipla Employees Stock Option Trust
3 Mr S. Radhakrishnan – Whole-time Director
(upto 11th November, 2017) 4 Cipla Health Employees Stock Option Trust
4 Mr Kedar Updhaye - Global Chief Financial

Officer (w.e.f 1st August, 2016)
5 Mr Subhanu Saxena - Managing Director

and Global Chief Executive Officer
(resigned w.e.f close of business hour on
31st August, 2016)
C. Non-executive Chairman & Non Executive

Vice Chairman
1 Dr Y. K. Hamied, Chairman
2 Mr M. K. Hamied,Vice Chairman
D. Non-executive Directors
1 Mr Ashok Sinha
2 Mr Adil Zainulbhai
3 Ms Punita Lal
4 Ms Naina Lal Kidwai
5 Ms Ireena Vittal(w.e.f. 1st December,2016)
6 Mr Peter Lankau( w.e.f. 10th January,2017)
7 Dr Peter Mugyenyi
8 Mr S. Radhakrishnan – (w.e.f. 12th November,
2017)
E. Entities over which Key management

personnel are able to exercise
significant influence
1 Cipla Foundation
2 Hamied Foundation (w.e.f. 3rd February 2016)
3 Cipla Cancer & AIDS Foundation
F. Trust over which entity has

control/significant influence
1 Cipla Limited Employee’s Provident Fund Trust

A. Loan repaid
Jay Precision
Pharmaceuticals Pvt.
Ltd 3.25
21.75 Cipla Health Ltd.
-
0.50
3.25 22.25
B. Investment
made - equity
Cipla (EU) Ltd. 17.41 31.19
Cipla Biotec Pvt. Ltd. 19.99 151.67
37.40 182.86
C. Sale/buy-
back of
investment -
equity
Cipla FZE 24.04 -
Saba Investments Ltd. 43.14 - Cipla
(Mauritius)
Limited 36.05 -
103.23 -
D. Loans given
Meditab Specialities
Pvt. Ltd. 20.15 18.56
20.15 18.56
E. Outstanding
payables
Goldencross
Pharma
Pvt. Ltd. 99.04 45.25
Sitec Labs Pvt. Ltd. 13.85 14.37
Cipla Europe NV 38.19 -
Cipla (UK) Ltd. 1.09 0.44
Cipla Ilac Ticaret
Anonim Sirketi 0.09 0.07
Cipla Kenya Ltd. - 0.26
Cipla Malaysia Sdn.
Bhd. 0.91 1.52
Cipla (EU) Ltd. 129.59 103.35
Jay Precision
Pharmaceuticals Pvt.
Ltd 10.93 10.79
Medpro
Pharmace
utica
Proprietary Ltd. 1.25 -
294.94 176.05
H in Crore H in Crore
As As As As
Transaction at 31st at 31st Transaction at 31st at 31st
March, March, March, March,
F. Outstanding 2018 2017 Cipla Technologies 2018 2017
receivables LLC 8.71 -
Four M Propack Pvt. Medica
Ltd. - - Pharmaceutical
Al-Jabal For Drugs Industries Company
and Medical Ltd. 0.97 -
Appliances 727.59 605.06
Company Ltd. 0.13 67.86 G. Loan to subsidiaries
Meditab Specialities Meditab Specialities
Pvt. Ltd. 49.07 51.36 Pvt. Ltd. 200.10 179.95
Medispray Jay Precision
Laboratories Pvt. Ltd. 2.72 31.23 Pharmaceuticals Pvt.
Quality Chemicals Ltd - 3.25
Ltd. 9.44 7.01 200.10 183.20
Breathe Free Lanka H. Interest received
(Pvt) Ltd. 73.23 62.56 Jay Precision
Cipla Biotec Pvt. Ltd. 2.65 0.44 Pharmaceuticals Pvt.
Cipla Quality Ltd 0.05 1.61
Chemical Industries Meditab Specialities
Ltd. 23.16 4.12 Pvt. Ltd. 20.15 18.56
Cipla (EU) Ltd. - - Cipla Health Ltd. - 0.00
Cipla Australia Pty. Cipla (EU) Ltd.
Ltd. 31.36 10.54 (Guarantee
Cipla USA Inc. 20.69 148.55 Commission) 7.39 14.67
Cipla Life Sciences Invagen
Proprietary Limited 0.21 - Pharmaceuticals
Cipla Vet Proprietary Inc. (Guarantee
Limited 1.68 - Commission) 10.99 8.01
Cipla Medpro South 38.58 42.85
Africa (Pty) Ltd. 409.63 207.59 I. Remuneration
Cipla Europe NV - 2.07 Dr Y.K. Hamied 2.03 2.02
Cipla Holding B.V. 0.24 7.52 Mr M.K. Hamied 2.10 2.09
Cipla Croatia d.o.o., Ms Samina Vaziralli 4.83 3.90
Croatia - 0.69 Mr Umang Vohra 14.67 12.90
Cipla Health Ltd. 8.33 3.52 Mr S.Radhakrishnan 4.03 4.06
Cipla Kenya Ltd. 20.91 - Mr Kedar Upadhye 3.31 3.13
Cipla Middle East Mr Ashok Sinha 0.47 0.51
Pharmaceuticals FZ- Mr Adil Zainulbhai 0.36 0.42
LLC 62.60 - Ms Punita Lal 0.39 0.38
Invagen Ms Naina Lal Kidwai 0.40 0.43
Pharmaceuticals Inc. 1.48 - Ms Ireena Vittal 0.41 0.14
Saba Investments Mr Peter Lankau 0.44 0.11
Ltd. 0.13 - Dr Peter Mugyenyi 0.43 0.42
Cipla Maroc SA 0.05 - Mr Subhanu Saxena - 25.34
Exelan 33.87 55.85
Pharmaceuticals Inc. 0.20 -
H in Crore
H in Crore
As As
As As
Transaction at 31st at 31st
Transaction at 31st at 31st
March, March,
March, March,
2018 2017
J. Purchase of goods N. Sale of goods 2018 2017
Goldencross Pharma Goldencross Pharma
Pvt. Ltd. 113.36 133.27 Pvt. Ltd. 1.14 1.73
Medispray Meditab Specialities
Laboratories Pvt. Ltd. 154.27 155.14 Pvt. Ltd. 0.72 3.75
Meditab Specialities Medispray
Pvt. Ltd. 0.35 0.94 Laboratories Pvt. Ltd. 35.65 37.12
Four M Propack Pvt. Cipla Quality
Ltd. - 6.79 Chemical Industries
Sitec Labs Pvt. Ltd. 2.16 1.07 Ltd. 17.40 23.92

Jay Precision Cipla Health Ltd. 0.08 0.53
Pharmaceuticals Pvt. Sitec Labs Pvt. Ltd. 0.31 0.66
Ltd 100.97 91.96 Cipla (EU) Ltd. (2.03) 42.43
Cipla Quality Cipla Europe NV 15.61 24.95
Chemical Industries Cipla Life Sciences
Ltd. - 21.62
Proprietary Limited 12.83
Cipla Health Ltd. 0.38 0.27 - Cipla Vet
Invagen Proprietary
Pharmaceuticals Inc. 1.81
Limited 0.67 -
- Stempeutics Cipla Medpro South
Research Pvt. Ltd. 1.10 0.57
Africa (Pty) Ltd. 752.25 439.58
374.40 411.63
Cipla Australia Pty.
K. Processing charges
Ltd. 32.07 11.58
paid Cipla USA Inc. 415.96 243.20
Goldencross Pharma Al-Jabal For Drugs
Pvt. Ltd. 60.15 43.04 and Medical
Medispray Appliances
Laboratories Pvt. Ltd. 43.31 43.12 Company Ltd. 4.41 124.58
Meditab Specialities Quality Chemicals
Pvt. Ltd. 37.91 29.45 Ltd. 5.44 8.22
141.37 115.61 Invagen
L. Testing and analysis
Pharmaceuticals Inc. 5.21 0.03
Cipla Kenya Ltd. 21.71 -
charges paid Cipla Maroc SA 0.07 -
Sitec Labs Pvt. Ltd. Cipla Middle East
78.81 68.10
Pharmaceuticals FZ-
78.81 68.10
LLC 97.39 -
M. Freight charges paid
Medispray Breathe Free Lanka
Laboratories Pvt. Ltd. (Pvt) Ltd. 102.28 99.11
0.02 -
Meditab Specialities 1519.17 1061.39
Pvt. Ltd. 0.19 - O. Sale of assets
Goldencross Pharma Goldencross Pharma
Pvt. Ltd. 0.45 0.49 Pvt. Ltd....................................2.13 1.49
0.66 0.49 Meditab Specialities
Pvt. Ltd.
10.32
-
As As As As
Medispray 2018 2017 T. Service charges 2018 2017
Laboratories Pvt. Ltd. 22.31 - received
Cipla Health Ltd. - 1.27 Cipla Biotec Pvt. Ltd. 2.63 3.81
34.76 2.76 Cipla Health Ltd. 6.93 -
P. Purchase of assets Saba Investments
Cipla Biotec Pvt. Ltd. 0.22 - Ltd. - 0.27
Medispray Al-Jabal For Drugs
Laboratories Pvt. Ltd. 0.07 0.03 and Medical
0.29 0.03 Appliances
Q. Processing charges Company Ltd. 0.20 -
received Cipla (EU) Ltd. 0.98 -
Meditab Specialities Cipla (UK) Ltd. 0.05 -
Pvt. Ltd. 1.62 1.99 Cipla Europe NV 0.14 -
Medispray Cipla Holding B.V. 0.32 -
Laboratories Pvt. Ltd. 8.48 5.83 Cipla Medpro South
10.10 7.82 Africa (Pty) Ltd. 0.30 -
R. Contribution to Cipla Technologies
provident and other LLC 6.77 -
fund Cipla USA Inc. 0.15 -
Cipla Employee Invagen
gratuity trust 28.00 52.02 Pharmaceuticals Inc. 0.21 -
Cipla Employee's Cipla Quality
Provident fund trust 41.85 42.37 Chemical Industries
69.85 94.39 Ltd. 19.78 17.96
S. Service charges 38.46 22.04
paid: T. Donations given
Cipla Biotec Pvt. Ltd. 16.97 0.05 Cipla Foundation 31.30 16.50
Cipla (EU) Ltd. 18.96 54.42 Hamied Foundation - 1.64
Cipla (UK) Ltd. 1.78 2.02 Cipla Cancer & Aids
Cipla Australia Pty. Foundation - 5.16
Ltd. 12.18 11.87 31.30 23.30
Cipla Ilac Ticaret U. Rent received
Anonim Sirketi 1.39 1.16 Dr Y.K. Hamied
Cipla USA Inc. 41.93 31.71 (H 20,040/- in both
Cipla Kenya Ltd. 0.78 6.38 the year) 0.00 0.00
Cipla Malaysia Sdn. Cipla Biotec Pvt. Ltd. 1.56 1.72
Bhd. 18.49 9.51 1.56 1.72
Cipla Europe NV 15.24 70.76 V. Reimbursement of
Cipla Maroc SA 0.42 - operating/other
Cipla Canada Inc. - (0.01) expenses
Quality Chemicals Ltd. 1.87 0.13 Meditab Specialities
Hamied Foundation 4.87 2.49 Pvt. Ltd. - 0.45
Cipla Pharma Cipla Biotec Pvt. Ltd. 0.23 -
Nigeria Ltd. - 0.00 Cipla Medpro South
134.88 190.49 Africa (Pty) Ltd. 1.54 -
As As As As
Invagen 2018 2017 Sitec Labs Pvt. Ltd. 2018
0.18 2017-
Pharmaceuticals Inc. 1.15 - Cipla Europe NV 0.09 (1.86)
Jay Precision Invagen
Pharmaceuticals Pvt. Pharmaceuticals Inc. 0.36 0.96
Ltd 0.06 - Breathe Free Lanka
Meditab Specialities (Pvt) Ltd. 0.01 -
Pvt. Ltd. 0.00 - Cipla Malaysia Sdn.
Medispray Bhd. 0.01 -
Laboratories Pvt. Ltd. 0.02 0.11 Cipla Maroc SA 0.01 -
Cipla Holding B.V. 0.06 0.13
3.00 0.56
X. Reimbursement Cipla Technologies
received of LLC 1.93 -
operating/other Exelan
expenses Pharmaceuticals Inc. 0.20 -
Goldencross Pharma
Pvt. Ltd. 0.54 0.35 7.75 13.40
Meditab Specialities Y. Royalty received
Pvt. Ltd 0.32 0.24 Cipla Health Ltd. 2.85 2.44
Jay Precision 2.85 2.44
Pharmaceuticals Pvt. Z. Royalty paid
Ltd 0.61 0.62 Cipla (EU) Ltd. 5.51 -
Cipla Health Ltd. 1.08 13.04 5.51 -
Cipla (EU) Ltd. 0.17 0.26 AA.Dividend received
Saba Investments
Cipla Australia Pty.
Ltd. - 5.80
Ltd. 0.02 -
Cipla (Mauritius)
Cipla (UK) Limited 0.01 0.06
Limited - 5.50
Cipla Medpro South
Cipla Medpro South
Africa (Pty) Ltd. 0.97 3.52
Africa (Pty) Ltd. 145.09 -
Cipla Quality
145.09 11.30
Chemical Industries
AB. Guarantee given on
Ltd. ---------------- 0.42
behalf of subsidiary
Cipla USA Inc. 0.27 (5.14)
Company
Medispray
Cipla (EU) Ltd. 1,472.96 1,465.61
Laboratories Pvt.
Invagen
Ltd......................................0.90 0.57
Pharmaceuticals Inc. 2,188.90 2,177.99
Cipla Biotec Pvt. Ltd...............0.01 0.23
3,661.86 3,643.60
Note 43: Employee stock option scheme
Employee stock option plans
The Company has implemented “ESOS 2013”, “ESOS 2013 - A” and “ESOS 2013 - B” as approved by the
Shareholders on 8th April 2013, 22nd August 2013 and 22nd August 2013 respectively. Details of the Options
granted during the year under the Scheme(s) are as given below:
Grant date No. of options Exercise price (H) Vesting period Exercise period
Scheme details
granted per option
ESOS 2013 - A 25-May-17 4,25,093 2.00 2 years 5 years from
Vesting date
ESOS 2013 - A 06-Nov-17 54,850 2.00 1 years 5 years from
Vesting date
The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in
force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek
allotment of one equity share of H 2 each.
Weighted average share price for Options exercised during the year :
Particulars ESOS - 2013 - A
Weighted average Share price (H) 585.86
ESOS 2013 - A
Particulars
No. of options Weighted Range of Weighted average
average exercise exercise price (H) remaining contractual
Outstanding at the price (H) per per option life (years)
option
beginning of the year 17,01,043 2.00 2.00 5.36
Granted during the year 4,79,943 2.00 2.00 6.09
Forfeited/Cancelled during
the year 1,42,164 2.00 2.00 5.05
Exercised during the year 6,09,090 2.00 2.00 2.99
Outstanding at the end of
the year 14,29,732 2.00 2.00 5.03
Exercisable at the end of
the year 4,48,336 2.00 2.00 3.37
The Black Scholes valuation model has been used for computing weighted average fair value considering the
following inputs:
Particulars ESOS 2013 ESOS 2013 - A ESOS 2013 - B
Expected Dividend yield (%) 0.37%

Expected volatility 24.86%
Risk-free interest rate No 6.75%
options 533.42 No options granted
during the year
Weighted average share price (H) granted during 2.00
the year
Exercise price (Rs. )
Expected life of options granted in years 4.39
Weighted average fair value of Options (H) 523.32
The effect of share-based payment transactions on the entity’s Profit or Loss for the period and earnings
per share is presented below:
Particulars 31st March, 2018 31st March, 2017
Profit after tax as reported (H in Crore) 1,468.52 974.94

ESOS cost (H in Crore) 31.40 22.18
Earnings per share
Basic (H) 18.64 12.40
Diluted (H) 18.61 12.38
Note 44: Segment information

In accordance with Indian Accounting Standard (Ind AS) -108 “Operating Segments”, Segment information has
been given in the consolidated financial statements of Cipla Limited, and therefore, no separate disclosure
on segment information is given in these financial statements.
Note 45: Details of loans given, investment made and guarantees given
(a)Disclosure as per Regulations 34(3) and 53 (f) of Securities Exchange Board of India -
Listing Obligations and Disclosure Requirements (LODR)
H in Crore
Maximum Maximum
Sr. Name of the As at As at
Nature balance during balance during
No. Company 31 March, 2018
st
31 March, 2017
st
the year the year
1 Meditab
Specialities Pvt.Ltd. Subsidiary 200.10 200.10 179.95 179.95
2 Jay Precision
Pharmaceuticals
Pvt. Ltd. Subsidiary - 3.25 3.25 25.00
3 Cipla Health Ltd. Subsidiary - - - 0.50
(b) Disclosure as per Section 186(4) of the

c)Refer note 5 for investments.
Companies Act, 2013
H in Crore d) Corporate guarantees given by the
For the For the Company in respect of loans as at 31st
Sr. Name of the year ended year ended March, 2018
No. Company 31st March, 31st March,
2018 2017 H in Crore
1 Meditab 31 March,
st
31st March,
Particulars
Specialities Pvt. 2018 2017
Ltd. (refer note 42) 20.15 18.56 Cipla (EU) Ltd. (refer
Notes: note 42) 1,472.96 1,465.61
i. All the above loans have been given for business purposes. Invagen
ii. The loanees have not made any investment in the shares of Pharmaceuticals Inc.
the Company.
(refer note 42) 2,188.90 2,177.99
iii. Loans given to employees as per the Company’s policy are
not considered.
3,661.86 3,643.60
Note 46: 31st March, 2017. The different levels have been
defined as follows.
Fair value measurement
The fair value of financial assets and liabilities are Level 1 - category includes financial assets and liabilities,
included at the amount at which the instrument that are measured in whole or in significant part be
could be exchanged in a current transaction reference to published quotes in an active market.
between willing parties, other than in a forced or Level 2 – category includes financial assets and
liquidation sale. liabilities measured using a valuation technique
The following methods and assumptions were based on assumptions that are supported by prices
used to estimate the fair values: from observable current market transactions. These
include assets and liabilities for which pricing is
The carrying amount of trade receivable, trade obtained via pricing services, but where prices
payable, capital creditors, loans, cash and cash have not been determined in an active market,
equivalents and other bank balances as at 31st financial assets with fair values based on broker
March 2018 and 31 st March 2017 are considered to quotes and assets that are valued using the
be the same as their fair values, due to their short Company’s own valuation models whereby the
term nature. Difference between carrying amounts material assumptions are market observable. The
and fair values of other financial assets, other majority of Company’s over-the- counter
financial liabilities and short term borrowings derivatives and several other instruments not
subsequently measured at amortised cost is not traded in active markets fall within this category.
significant in each of The year presented and the
same are classified as level 3. Level 3 - category includes financial assets and
liabilities measured using valuation techniques
Financial Instruments with fixed and variable based on non market observable inputs. This
interest rates are evaluated by the company based means that fair values are determined in whole or
on parameters such as interest rate and individual in part using a valuation model based on
credit worthiness of the counter party. Based on this assumptions that are neither supported by prices
evaluation, allowances are taken to account for the from observable current market transactions in the
expected losses of these receivables. same instrument nor are they based on available
market data. However, the fair value measurement
Fair value hierarchy objective remains the same, that is, to estimate an
exit price from the perspective of the Company.
The table below analyses financial instruments
The main asset classes in this category are
carried at fair value, by valuation method at 31 st
unlisted equity investments as well as unlisted
March 2018 and
funds.
As at 31st March, 2018

H in Crore
Carrying Fair Value
Particulars
value Level 1 Level 2 Level 3
Financial assets at amortised cost:
Investment property (refer note 3) 0.32 - 1.81 -
Investments - National Saving Certificate
(refer note 5) 0.00----------------------------------------- 0.00
Financial assets at fair value through
profit or loss:
Derivative instrument (refer note 16) 32.65 - 32.65 -
Investments in mutual funds (refer note 11) 1,039.74 - 1,039.74 -
Financial liabilities at fair value through
other comprehensive income:
Derivative instrument (refer note 25) 2.00 - 2.00 -
As at 31st March, 2017
Carrying H in Crore
Particulars Fair Value
Investments - National Saving Certificate
(refer note 5) 0.00----------------------------------------- 0.00
profit or loss:
Derivative instruments (refer note 7) 20.34 - 20.34 -
Investments in mutual funds (refer note 11) 638.18 - 638.18 -
Financial risk management objectives and levels. The

policies
The Company’s activities expose it to a variety of

financial risks: market risk, credit risk and liquidity
risk. The Company’s primary focus is to foresee the
unpredictability of financial markets and seek to
minimise potential adverse effects on its financial
performance.
The Company’s financial liabilities comprise of

borrowings, trade payable and other liabilities to
manage its operation and financial assets includes
trade receivables and other receivables etc. arises from
its operation.
The Company has constituted a Risk Management

Committee consisting of majority of directors and
senior managerial personnel. The Company has a
robust Business Risk Management framework to
identify, evaluate business risks and opportunities. This
framework seeks to create transparency, minimise
adverse impact on the business objectives and
enhance Company’s competitive advantage. The
business risk framework defines the risk
management approach across the enterprise at
various levels including documentation and
reporting. The framework has different risk models
which help in identifying risks trend, exposure and
potential impact analysis at a Company level as
also separately for business segments.
The Company has instituted a self governed Risk

Management framework based on identification of
potential risk areas, evaluation of risk intensity,
and clear- cut risk mitigation policies, plans and
procedures both at the enterprise and operating
framework seeks to facilitate a common
organisational understanding of the exposure to
various risks and uncertainties at an early
stage, followed by timely and effective
mitigation. The Audit Committee of the Board
reviews the risk management framework at
periodic intervals. Our risk management
procedures ensure that the management controls
various business related risks through means of
a properly defined framework.
Market risk
The Company operates internationally and a

major portion of the business is transacted in
several currencies and consequently the
Company is exposed to foreign exchange risk
to the extent that there is mismatch between
the currencies in which its sales and services
and purchases from overseas suppliers in
various foreign currencies. Market Risk is the risk
that changes in market prices such as foreign
exchange rates will effect groups income or
value of its holding financial assets/
instruments. The Company also holds derivative
financial instruments such as foreign exchange
forward contracts to mitigate the risk of
changes in exchange rates on foreign currency
exposures. The exchange rate between the
Rupee and foreign currencies has changed
substantially in recent years and may fluctuate
substantially in the future. Consequently, the
results of the Company’s operations are
adversely affected as the Rupee appreciates/
depreciates against US dollar (USD), Euro
(EUR), South African Rand (ZAR) and British
Pound (GBP).
(a)Foreign exchange derivatives and exposures outstanding at the year end
H in Crore
Cross As at As at
Nature of Instrument Currency
currency 31st March, 2018 31st March, 2017
Forward contracts - Sold USD INR 1,527.34 428.01
Forward contracts - Sold ZAR INR 451.78 221.93
Forward contracts - Sold EUR INR 23.03 38.11
Forward contracts - Bought USD INR 31.89 -
Unhedged foreign exchange exposures:
- Receivables 797.74 1,110.84
- Payables (747.15) (517.51)
- Current Borrowings (142.54) (324.25)
Note: The Company uses forward contracts/derivatives for hedging purposes.
(b)Foreign currency risk from financial instruments as of :

H in Crore
31 March, 2018
st
Particulars Other
U.S. dollars Euro GBP Total
Currency
Trade and other
receivables 605.55 97.91 31.62 62.66 797.74
Trade and payables (468.02) (174.30) (97.79) (7.04) (747.15)
Borrowings (142.54) - - - (142.54)
Net assets / (liabilities) (5.01) (76.39) (66.17) 55.62 (91.95)
H in Crore
31 March, 2017
st
Particulars Other
U.S. dollars Euro GBP Total
Currency
Trade and other
receivables 925.96 183.47 - 1.41 1,110.84
Trade and other
payables (416.80) (68.20) (5.02) (27.49) (517.51)
Borrowings (324.25) - - - (324.25)
Net assets / (liabilities) 184.91 115.27 (5.02) (26.08) 269.08
Sensitivity analysis Cash flow sensitivity analysis for variable-rate
A reasonably possible change in foreign exchange instruments
rates by 2% would have increased/ (decreased)
A reasonably possible change of 50 basis points
equity and profit or loss by the amounts shown
in interest rates at the reporting date would have
below. This analysis assumes that all other
increased (decreased) equity and profit or loss by
variables in particular interest rates remain
the amounts shown below. This analysis assumes
constant.
that all other variables, in particular foreign currency
H in Crore exchange rates, remain constant.
For the For the
year ended year ended H in Crore
Particulars
31st March, 31st March, For For
2018 2017 the year the year
Movement in exchange rate Particulars ended 31st ended 31st
USD - INR 2% 2%
March, March,
Euro - INR 2% 2%
2018 2017
GBP - INR 2% 2% Variable rate

Impact on profit/ loss instruments
USD - INR (0.10) 3.70 Financial liabilities 174.43 324.26
Euro - INR (1.53) 2.31
GBP - INR (1.32) (0.10)
Interest rate risk
Interest rate risk can be either fair value interest

rate risk or cash flow interest rate risk. Fair value
interest rate risk is the risk of changes in fair
values of fixed interest bearing investments because
of fluctuations in the interest rates, in cases where
the borrowings are measured at fair value through
profit or loss. Cash flow interest rate risk is the risk
that the future cash flows of floating interest
bearing investments will fluctuate because of
fluctuations in the interest rates.
Exposure to interest rate risk
Company’s interest rate risk arises from borrowings.

The Company adopts a policy of ensuring that
maximum of its interest rate risk exposure is at a
fixed rate. The interest rate profile of the Company’s
interest-bearing financial instruments as reported to
the management of the Company is as follows.
The Company’s interest-bearing financial instruments

is reported as alongside:
H in Crore
As As
March, March,
2018 2017
Impact on profit/ loss
Increase (0.87) (1.62)
Decrease 0.87 1.62
The risk estimates provided assume a parallel

shift of 50 basis points interest rate across all
yield curves. This calculation also assumes that
the change occurs at the balance sheet date
and has been calculated based on risk
exposures outstanding as at that date. The
period end balances are not necessarily
representative of the average debt outstanding
during the period.
Credit risk
Credit risk refers to the risk of default on its

obligation by the customer/ counter party
resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date
is carrying value of respective financial assets.
Trade receivables and unbilled revenue are

typically unsecured and are derived from
revenue earned from customers. Credit risk has
always been managed by each business
segment through credit approvals, establishing
credit limits and continuously monitoring the credit
worthiness of customers to which the Company
grants credit terms in the normal course of
business. On account of adoption of Ind AS
109, the Company uses expected credit loss
model to assess the impairment loss or gain.
The group uses a provision matrix to compute
the expected credit loss allowance for trade
receivables and unbilled revenues. The provision
matrix takes into account available external and
internal credit risk factors such as default risk of
industry, credit default swap quotes, credit
ratings from international credit rating agencies
and historical experience for customers
Credit risk on cash and cash equivalents is

limited as we generally invest in deposits with
banks and
financial institutions with high credit ratings
on historical trend, industry practices and the
assigned by international and domestic credit
business environment in which the entity operates.
rating agencies. Investments primarily include
investment in liquid mutual fund units, quoted bonds Loss rates are based on actual credit loss
issued by government and quasi government experience and past trends. Based on the historical
organisations and certificates of deposit which are data, loss on collection of receivable is not material
funds deposited at a bank for a specified time hence no additional provision considered.
period.
The aging analysis of the receivable (gross of
The Company measures the expected credit loss of
provision) has been considered from the date the
trade receivables and loan from individual
invoice falls due.
customers based
H in Crore
Neither past Neither past due nor impaired
Particulars due nor 0-180 0-180 180-365 Total
impaired days days days
As on31st March, 2018 1,664.74 589.65 60.70 164.38 2,479.47
As on 31st March, 2017 1,406.40 504.54 44.90 113.18 2,069.03
H in Crore
Movement of Other Trade Total

Loans Loans
allowances financial receivables
(current) (non-current)
assets
As at 1st April, 2016 2.25 - 0.46 97.40 100.11
Provided during the
year - - - 67.22 67.22
Amounts written off - - - - -
Reversals of provision - - - (34.38) (34.38)
As at 31st March, 2017 2.25 - 0.46 130.24 132.95
Provided during the year - 0.88 3.47 81.30 85.65
Amounts written off - - - (19.82) (19.82)
As at 31st March, 2018 2.25 0.88 3.93 143.15 150.21
Liquidity risk
The company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The company believes that the working capital is sufficient to meet its current
requirements. Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position and
maintains adequate source of funding.
The table below provides details regarding the contractual maturities of significant financial liabilities as of
March 31, 2018:
H in Crore
Less than 1
Particulars 1-2 years 2-5 years Above 5 years Total
year
Borrowings 174.43 - - - 174.43
Trade payables 1,580.02 - - - 1,580.02
Other financial
liabilities 273.07 - - 50.11 323.18
2,027.52 - - 50.11 2,077.63
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31,
2017:
H in Crore
Less than 2-5 years Above 5 years Total
Particulars 1-2 years
1 year
Borrowings 324.26 0.07 - - 324.33
Trade payables 1,298.21 - - - 1,298.21
Other financial liabilities 440.75 - - 45.06 485.81
2,063.22 0.07 - 45.06 2,108.35
Impact of hedging activities
The Company uses foreign exchange forward contracts to hedge against the foreign currency risk of highly
probable USD/ZAR sales. Such derivative financial instruments are governed by the Company’s policies
approved by the Board of Directors, which provide written principles on the use of such instruments consistent
with the Company’s risk management strategy. As the value of the derivative instrument generally changes in
response to the value of the hedged item, the economic relationship is established.
a)Disclosure of effects of hedge accounting in Company’s balance
sheet 31st March 2018
H in Crore
Carrying amount Hedge Weighted Line item in
ratio average strike the balance
Type of hedge Maturity price/rate sheet where
Nominal
and risks Assets Liabilities date hedging
amount
instrument is
included
Cash flow hedge
Foreign exchange
risk
i) Foreign 1,348.80 - 2.00 April 2018 - 1:1* USD 1 = H Note 25
exchange March 2019 67.06 - Other
forward contracts ZAR 1 = H 4.94 financial
liabilities
* The foreign currency forward contracts are denominated in the same currency as the highly probable future sales, therefore hedge ratio of 1:1
The Company did not do hedge accounting in the year ended 31 st March 2017.
b) Disclosure of effects of hedge accounting in Company’s statement of profit and loss and other
comprehensive income
31st March 2018
H in Crore
Hedge Amount Line item affected
Change in the value of
ineffectiveness reclassified from in statement of
the hedging instrument
Type of hedge recognised in cash flow profit and loss
recognised in other
statement of hedging reserve because of the
Profit and loss to Profit and loss reclassification
Cash flow hedge
i) Foreign exchange risk 0.72 - 2.39 Note 27- Revenue
from operation
and Note 36 -
Other
expenses.
Hedge effectiveness is determined at the inception of hedge relationship, and through periodic
prospective effectiveness assessment to ensure that an economic relationships exists between the hedged
item and hedging instruments. It is calculated by comparing changes in fair value of the hedged item, with the
changes in fair value of the hedging instrument.
c) Movement in cash flow hedging reserve and

Net Debt = Total Borrowings less Cash and Cash
costs of hedging reserve
Equivalents including Current Investments.
H in Crore
Risk category Foreign currency risk Total ‘Equity’ is as shown in the Balance Sheet.
H in Crore
Foreign exchange
Derivative instruments As As
forward contracts
Cash flow hedging reserve
March, March,
Total Debt 2018
174.50 2017
324.39
As at 1 April 2017 -
Add: Changes in fair Less: Cash and Cash
value of foreign Equivalent (including
exchange Mutual Funds) 1,257.19 682.77
forward contracts 3.11 Net Debt (A) (1,082.69) (358.38)
Less: Amount reclassified Total Equity (B) 14,113.52 12,800.51
to P&L (2.39) Net Debt to Equity
Less: Deferred tax Ratio (A/B) (8%) (3%)
relating to above (net) (0.25)
As at 31 March 2018
st B. Dividend
0.47
Note 47: Corporate Social Responsibility H in Crore
(CSR) Expenditure As As at
The Company has incurred H 32.20 Crore (previous at 31st
year Particulars 31st March,
March,
H 28.25 Crore) towards CSR activities, as per Section 2018 2017
135 of the Companies Act, 2013 and Rules amounts of dividends paid to shareholders, return
thereon. It is included in other expenses head in capital to shareholders, issue new shares or sell new
the Statement of Profit and Loss. Amount spent on assets to reduce debt.
construction/ aquisition of any assets is Nil during
the year.
Gross amount required to be spent by the company

during the year H 31.05 Crore (previous year H
33.38 Crore.)
Note 48:
A. Risk management
The Company’s objectives when managing capital are

to safeguard their ability to continue as a going
concern so that they can continue to provide returns
for shareholders and benefits for other stakeholders,
and maintain an optimal structure to reduce the
cost of capital. In order to maintain or adjust the
capital structure, the Company may adjust the
Dividend on equity
shares paid during
the year
Final dividend for
FY 2017-18
[H 2.00 (FY 2016-17
H 2.00) per equity share
of H 2.00 each] 160.94 160.87
Tax on dividend 28.33 32.71
Total 189.27 193.58
Proposed dividend:
The Board of Directors of the Company at its meeting

held on 22nd May 2018 has recommended a final
dividend of H 3.00 per equity share (face value of H
2 each) for the financial year ended 31st March 2018.
The same amounts to H 289.83 Crore including
dividend distribution tax.
The above is subject to approval at the ensuing

Annual General Meeting of the Company and
hence is not recognised as a liability.
Note 49: Earnings Per Share (EPS) Company has recorded an additional provision of H
Disclosure as required by Indian Accounting 77.52 Crore in profit or loss for the year ended 31st
Standard March, 2018, disclosed as exceptional item. The total
provision against

Particulars
2018 2017
Diluted weighted
and 31st March 2017 are not comparable.
average no of shares
outstanding 80,60,81,571 80,53,17,684 (ii) Certain prior year amounts have been
Diluted earnings per reclassified for consistency with the current year
share H 18.22 H presentation. As a result, certain line items have
12.11 been amended in the financial statements. These
reclassifications had no effect on the reported
Note 50: Exceptional Items results of operations. Comparative figures have
been adjusted to conform to the current year’s
With respect to various notices of demand received presentation.
from the NPPA, Government of India on account of
alleged overcharging in relation to products which
are not part of the writ proceedings in the Hon’ble Note 52: - Authorisation of financial
Bombay High Court (refer note 40 B), based on statements
recent correspondence with NPPA and notices
received, the Company performed a thorough legal The financial statements for the year ended 31st
evaluation. Of the total demand received for such March, 2018 were approved by the Board of
products, basis the facts and legal advice, the Directors on 22 nd May 2018.




To the Members of Cipla Limited responsible for maintenance of adequate
accounting records in accordance with the
provisions of the Act for safeguarding the
Report on the consolidated financial
statements
1. We have audited the accompanying
consolidated financial statements of Cipla
Limited (the ‘Holding Company’) and its
subsidiaries (the Holding Company and its
subsidiaries together referred to as ‘the
Group’), and its associate, which comprise the
Consolidated Balance Sheet as at
31 March 2018, the Consolidated Statement of
Profit and Loss (including Other Comprehensive
Income), the Consolidated Cash Flow Statement
and the Consolidated Statement of Changes in
Equity for the year then ended, and a summary
of the significant accounting policies and other
explanatory information.
Management’s responsibility for the

consolidated financial statements
2 The Holding Company’s Board of Directors
is responsible for the preparation of these
consolidated financial statements in terms of
the requirements of the Companies Act, 2013
(‘the Act’) that give a true and fair view of the
consolidated state of affairs (consolidated
financial position), consolidated profit or loss
(consolidated financial performance including
other comprehensive income), consolidated cash
flows and consolidated changes in equity of
the Group including its associate in accordance
with the accounting principles generally
accepted in India, including the Indian
Accounting Standards (Ind AS) specified under
Section 133 of the Act. The Holding Company’s
Board of Directors and the respective Board of
Directors/management of the subsidiaries
included in the Group, and its associate are
responsible for the design, implementation
and maintenance of internal control 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. Further, in terms
of the provisions of the Act, the respective
Board of Directors/ management of the
companies included in the Group, and its
associate Company covered under the Act are
Independent Auditor’s Report on the Consolidated Financial Statements

assets 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.
These financial statements have been used for
the purpose of preparation of the consolidated
financial statements by the Directors of the
Holding Company, as aforesaid.
these consolidated financial statements based
on our audit.
4. While conducting the audit, we have taken into

account the provisions of the Act, the
accounting and auditing standards and
matters which are required to be included in
the audit report under the provisions of the
Act and the Rules made thereunder.
5. We conducted our audit in accordance with the

Standards on Auditing specified under Section
143(10) of the Act. Those Standards require
that we comply with ethical requirements and
plan and perform the audit to obtain
reasonable assurance about whether these
consolidated financial statements are free
from material misstatement.
6. An audit involves performing procedures to

obtain audit evidence about the amounts and
the disclosures in the consolidated financial
statements. The procedures selected depend on
the auditor’s judgment, including the
assessment of the risks of material
misstatement of the consolidated financial
statements, whether due to fraud or error. In
making those risk assessments, the auditor
considers internal financial controls relevant
to the Holding Company’s preparation of the
consolidated financial statements that give a
true and fair view in order to design audit
procedures that are appropriate in the
circumstances. An audit also includes evaluating
the appropriateness of the accounting policies
used and the reasonableness

of the accounting estimates made by the whose financial statements have not been audited by
Holding Company’s Board of Directors, as well as us. These financial statements have been audited by
evaluating the overall presentation of the other auditors whose reports has been furnished to
consolidated financial statements. us by the management and our
7. We believe that the audit evidence obtained by

us and the audit evidence obtained by the
other auditors in terms of their reports referred
to in paragraph 8 of the other matter
paragraph below, is sufficient and appropriate
to provide a basis for our audit opinion on
these consolidated financial statements.
Opinion
8. In our opinion and to the best of our
information and according to the explanations
given to us and based on the consideration of
the reports of the other auditors on separate
financial statements and on the other financial
information of the subsidiaries and associate, the
aforesaid consolidated financial statements give
the information required by the Act in the
manner so required and give a true and fair
view in conformity with the accounting
principles generally accepted in India, of the
consolidated state of affairs (consolidated
financial position) of the Group and its associate
as at 31 March 2018, and their consolidated
profit (consolidated financial performance
including other comprehensive income), their
consolidated cash flows and consolidated
changes in equity for the year ended on that
date.
Other matter
9. We did not audit the financial statements of 45
subsidiaries, whose financial statements
reflect total assets of H 3,333.83 Crore and
net assets of H 1,100.08 Crore as at 31 March
2018, total revenues of H 3,094.71 Crore and
net cash inflows/outflows amounting to H 6.80
Crore for the year ended on that date, as
considered in the consolidated financial
statements. The consolidated financial
statements also include the Group share of net
loss (including other comprehensive income)
of H 2.78 Crore for the year ended 31 March
2018, as considered in the consolidated
financial statements, in respect of an associate,
opinion on the consolidated financial a) We have sought and obtained all the
statements, in so far as it relates to the information and explanations which to the
amounts and disclosures included in best of our knowledge and belief were
respect of these subsidiaries and necessary for the purpose of our audit of
associate, and our report in terms of sub- the aforesaid consolidated financial
section statements;
(3) of Section 143 of the Act, in so far as it
relates to the aforesaid subsidiaries and
associate, is based solely on the reports of
the other auditors.
Further, of these subsidiaries and

associate, 43 subsidiaries are located
outside India whose financial statements
and other financial information have been
prepared in accordance with accounting
principles generally accepted in their
respective countries and which have been
audited by other auditors under generally
accepted auditing standards applicable in
their respective countries. The Holding
Company’s management has converted the
financial statements of such subsidiaries
located outside India from accounting
principles generally accepted in their
respective countries to accounting principles
generally accepted in India. We have
audited these conversion adjustments
made by the Holding Company’s
management. Our opinion in so far as it
relates to the balances and affairs of such
subsidiaries located outside India is based
on the report of other auditors and the
conversion adjustments prepared by the
management of the Holding Company and
audited by us.
Our opinion above on the consolidated

financial statements, and our report on
other legal and regulatory requirements
below, are not modified in respect of the
above matter with respect to our reliance
on the work done by and the reports of the
other auditors.
Report on other legal and

regulatory requirements
10. As required by Section 143(3) of the Act,
based on our audit and on the
consideration of the reports of the other
auditors on separate financial statements
and other financial information of the
subsidiaries and associate, we report, to
the extent applicable, that:
b) In our opinion, proper books of account as
on separate financial statements as also
required by law relating to preparation of
the other financial information of the
the aforesaid consolidated financial
subsidiaries and associate:
statements have been kept so far as it
appears from our examination of those (i) The consolidated financial statements
books and the reports of the other disclose the impact of pending
auditors, litigations on the consolidated financial
position of the Group and its associates
c) The consolidated financial statements dealt
as detailed in note 46 to the
with by this report are in agreement with
consolidated financial statements.
the relevant books of account maintained
for the purpose of preparation of the (ii) the Group and its associate did not
consolidated financial statements; have any long-term contracts including
derivative contracts for which there
d) In our opinion, the aforesaid consolidated
were any material foreseeable losses;
financial statements comply with Ind AS
specified under Section 133 of the Act; (iii) There were no amounts which were
required to be transferred to the
e) On the basis of the written representations
Investor Education and Protection Fund
received from the directors of the Holding
by the Holding Company, its subsidiary
Company and taken on record by the Board
companies and associate Company
of Directors of the Holding Company and
covered under the Act during the year
the reports of the other statutory auditors
ended 31 March 2018.
of its subsidiary companies and associate
Company covered under the Act, none of (iv)the disclosure requirements relating to
the directors of the Group companies and holdings as well as dealings in specified
its associate Company covered under the bank notes were applicable for the
Act, are disqualified as on 31 March 2018 period from 8 November 2016 to 30
from being appointed as a director in terms December 2016 which are not relevant
of Section 164(2) of the Act. to these consolidated financial
statements. Hence, reporting under
f) With respect to the adequacy of the this clause is not applicable.
internal financial controls over financial
reporting of the Holding Company, its
subsidiary companies and associate For Walker Chandiok & Co LLP
Company covered under the Act and the Chartered Accountants
operating effectiveness of such controls, Firm’s Registration No.: 001076N/N500013
refer to our separate report in ‘Annexure I’;
g) With respect to the other matters to be

Ashish Gupta
included in the Auditor’s Report in
Partner
accordance with Rule 11 of the Companies
Membership No.: 504662
(Audit and Auditor’s) Rules, 2014 (as
amended), in our opinion and to the best
of our information and according to the Place: New Delhi
explanations given to us and based on the Date: 22 May
consideration of the report of the other 2018
auditors
Annexure I
subsidiary companies and its associate Company,
as aforesaid, based on our audit. We conducted
our audit in accordance with the Standards on
Independent Auditor’s Report on the Auditing issued by the Institute of Chartered
Internal Financial Controls under Clause Accountants of
(i) of Sub- section 3 of Section 143 of the

Companies Act, 2013 (‘the Act’)
1. In conjunction with our audit of the
consolidated financial statements of Cipla
Limited (the ‘Holding Company’) and its
subsidiaries (the Holding Company and its
subsidiaries together referred to as ‘the
Group’) and its associate as at and for the year
ended 31 March 2018, we have audited the
internal financial controls over financial reporting
(‘IFCoFR’) of the Holding Company, its
subsidiary companies and its associate
Company, which are companies covered under
the Act, as at that date.
Management’s responsibility for internal

financial controls
2. The respective Board of Directors of the
Holding Company, its subsidiary companies
and its associate Company, which are companies
covered under the Act, are responsible for
establishing and maintaining internal financial
controls based on internal control financial
reporting criteria established by the Company
considering the essential components of internal
control stated in the guidance note on audit of
Internal Financial Control over Financial
Reporting (“the Guidance Note”) issued by the
Institute of Chartered Accountant of India
(ICAI). These responsibilities include the
design, implementation and maintenance of
adequate internal financial controls that were
operating effectively for ensuring the orderly
and efficient conduct of the Company’s
business, including adherence to the
Company’s policies, the safeguarding of its
assets, the prevention and detection of frauds
and errors, the accuracy and completeness of
the accounting records, and the timely
preparation of reliable financial information, as
required under the Act.
the IFCoFR of the Holding Company, its
that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable
assurance that transactions are recorded as
India (‘ICAI’) and deemed to be prescribed
necessary to permit preparation of financial
under Section 143(10) of the Act, to the
statements in accordance with generally
extent applicable to an audit of IFCoFR, and
accepted accounting principles, and that receipts
the Guidance Note on Audit of Internal
and expenditures of the Company are
Financial Controls Over Financial Reporting
(‘the Guidance Note’) issued by the ICAI.
Those Standards and the Guidance Note
require that we comply with ethical
requirements and plan and perform the
audit to obtain reasonable assurance about
whether adequate IFCoFR were established
and maintained and if such controls
operated effectively in all material
respects.
4. Our audit involves performing procedures

to obtain audit evidence about the
adequacy of the IFCoFR and their operating
effectiveness. Our audit of IFCoFR includes
obtaining an understanding of IFCoFR,
assessing the risk that a material weakness
exists, and testing and evaluating the
design and operating effectiveness of
internal control based on the assessed
risk. The procedures selected depend on
the auditor’s judgement, including the
assessment of the risks of material
misstatement of the financial statements,
whether due to fraud or error.
5. We believe that the audit evidence we

have obtained and the audit evidence
obtained by the other auditors in terms of
their reports referred to in the Other
Matters paragraph below, is sufficient and
appropriate to provide a basis for our audit
opinion on the IFCoFR of the Holding
Company, its subsidiary companies and its
associate Company as aforesaid.
Meaning of internal financial controls over

financial reporting
6. A Company’s IFCoFR is a process
designed to provide reasonable assurance
regarding the reliability of financial
reporting and the preparation of financial
statements for external purposes in
accordance with generally accepted
accounting principles. A Company’s IFCoFR
include those policies and procedures that
(1) pertain to the maintenance of records
Annexure I
being made only in accordance with authorisations
of management and directors of the Company;
Other matter
and (3) provide reasonable assurance regarding 9. We did not audit the IFCoFR in so far as it
prevention or timely detection of unauthorised relates to 2 subsidiary companies, which are
acquisition, use, or disposition of the Company’s companies covered under the Act, whose
assets that could have a material effect on the financial statements/ financial information reflect
financial statements. total assets of H 163.85 Crore and net assets of
H 188.99 Crore as at 31 March 2018, total
revenues of H 1.84 Crore and net cash
Inherent Limitations Of Internal Financial
inflows/outflows amounting to H 16.46 Crore for
Controls Over Financial Reporting the year ended on that date, as considered in
the consolidated financial statements. The
7. Because of the inherent limitations of IFCoFR,
consolidated financial statements also include
including the possibility of collusion or
the Group share of net loss (including other
improper management override of controls,
comprehensive income) of H 2.78 Crore for the
material misstatements due to error or fraud
year ended 31 March 2018, in respect of an
may occur and not be detected. Also,
associate Company, which are companies
projections of any evaluation of the IFCoFR to
covered under the Act, whose financial
future periods are subject to the risk that the
statements and other financial information have
IFCoFR may become inadequate because of not been audited by us. Our report on the
changes in conditions, or that the degree of adequacy and operating effectiveness of the
compliance with the policies or procedures IFCoFR for the Holding Company, its subsidiary
may deteriorate. companies and its associate Company, which
are the companies incorporated in India, under
Opinion Section 143(3)(i) of the Act in so far as it
relates to aforesaid subsidiaries and associate
8. In our opinion and based on the consideration is based solely on the reports of the auditors of
of the reports of the other auditors on IFCoFR such companies. Our opinion is not modified in
of the subsidiary companies and associate respect of this matter with respect to our
Company, the Holding Company, its subsidiary reliance on the work done by and on the
companies and its associate Company, which reports of the other auditors.
are companies covered under the Act, have in all
material respects, adequate internal financial For Walker Chandiok & Co LLP
controls over financial reporting and such Chartered Accountants
controls were operating effectively as at 31 Firm’s Registration No.: 001076N/N500013
March 2018, based on internal control financial
reporting criteria established by the Company
considering the essential components of internal Ashish Gupta
control stated in the guidance note on audit of Partner
Internal Financial Control over Financial Membership No.: 504662
Reporting (“the Guidance Note”) issued by the
Institute of Chartered Accountant of India . Place: New Delhi
Date: 22 May 2018
Consolidated Balance Sheet
as at 31st March, 2018
H in Crore
Particulars Notes As at As at
Assets
(1) Non-current assets
(a) Property, plant and equipment 2 5,315.35 5,008.69
(b) Capital work-in-progress 2 512.35 719.23
(c) Investment properties 3 1.03 1.74
(d) Goodwill 4 2,814.74 2,696.67
(e) Other intangible assets 5 1,819.05 1,784.88
(f) Intangible assets under development 5 468.98 963.75
(g) Investment in associate 6 9.62 12.40
(h) Financial assets
(i) Investments 7 147.01 123.22
(ii) Loans 8 41.66 39.48
(iii) Other financial assets 9 159.14 113.77
(i) Advance tax assets (net) 388.60 308.28
( j) Deferred tax assets (net) 10 187.65 168.13
(k) Other non-current assets 11 181.27 292.20
12,046.45 12,232.44
(2) Current assets
(a) Inventories 12 4,044.70 3,485.28
(b) Financial assets
(i) Investments 13 1,102.21 837.39
(ii) Trade receivables 14 3,102.45 2,563.05
(iii) Cash and cash equivalents 15 853.46 610.35
(iv) Bank balance other than cash and cash equivalents 16 112.15 13.86
(v) Loans 17 19.91 9.53
(vi) Other financial assets 18 574.82 542.10
(c) Other current assets 19 1,004.40 674.01
10,814.10 8,735.57
(3) Assets classified as held for sale (net) 20 - 69.06
Total assets 22,860.55 21,037.07
Equity and liabilities
(1) Equity
(a) Share capital 21 161.02 160.90
(b) Other equity 22 14,068.17 12,382.76
Equity attributable to owner 14,229.19 12,543.66
(c) Non-controlling Interest 23 352.44 438.23
Total equity 14,581.63 12,981.89
(2) Share application money pending allotment 22 - 0.00
(3) Non-current liabilities
(i) Borrowings 24 3,662.11 3,645.36
(ii) Other financial liabilities 25 50.11 45.06
(b) Provisions 26 137.92 140.52
(c) Deferred tax liabilities (net) 10 503.31 756.89
(d) Other non-current liabilities 27 93.25 93.65
4,446.70 4,681.48
(4) Current liabilities
(i) Borrowings 24 435.87 467.23
(ii) Trade payables 28 2,119.12 1,571.14
(iii) Other current financial liabilities 29 420.19 642.59
(b) Other current liabilities 30 226.85 266.36
(c) Provisions 26 627.11 402.37
(d) Current tax liabilities (net) 3.08 24.01
3,832.22 3,373.70
Total equity and liabilities 22,860.55 21,037.07
The accompanying notes form an integral part of these financial statements----2-57
Consolidated Statement of Profit and Loss

H in Crore
Particulars Notes For the year ended For the year ended
(1) Revenue from operations

(a) Revenue from sale of products 31 14,750.86 14,280.86
(b) Other operating income 32 468.39 349.38
15,219.25 14,630.24
(c) Other income 33 357.65 228.69
15,576.90 14,858.93
(2) Expenditure
(a) Cost of materials consumed 34 4,497.16 4,272.66
(b) Purchases of stock-in-trade 35 1,174.20 933.50
(c) Changes in inventories of finished goods , work-in-progress and
stock-in-trade 36 (232.94) 110.96
(d) Employee benefits expense 37 2,690.10 2,633.82
(e) Finance costs 38 114.23 159.38
(f) Depreciation, impairment and amortisation expense 39 1,322.82 1,322.93
(g) Other expenses 40 4,264.35 4,203.51
13,829.92 13,636.76
(3) Profit before exceptional items and tax 1,746.98 1,222.17
(4) Exceptional items 53 77.52 -
(5) Profit before tax 1,669.46 1,222.17
(6) Tax expense (net)
(a) Current tax (net) 10 561.06 479.48
(b) Deferred tax charge/(credit) 10 (310.95) (299.72)
(7) Profit after Tax before share of associates 1,419.35 1,042.41
(8) Share of loss from associates (2.78) (6.99)
(9) Profit for the year 1,416.57 1,035.42
(10) Other comprehensive income/(loss) 41
A. (i) Items that will not be reclassified to profit or loss 28.41 11.42
(ii) Income tax relating to Items that will not be reclassified to
profit or loss (4.11) (3.96)
24.30 7.46
(B) (i) Items that will be reclassified to profit or loss 382.73 123.89
(ii) Income tax relating to these items (13.50) -
369.23 123.89
Other comprehensive income for the year 393.53 131.35
(11) Total comprehensive income for the year 1,810.10 1,166.77
(12) Profit for the year attributable to
(a) Owners 1,410.53 1,006.39
(b) Non-controlling interest 6.04 29.03
(13) Total comprehensive profit attributable to
(a) Owners 1,764.52 1,173.67
(b) Non-controlling interest 45.58 (6.90)
(14) Earnings per equity share of face value of H 2 each 42
Basic (in H) 17.53 12.52
Diluted (in H) 17.50 12.50
Significant accounting policies and key accounting estimates and judgements1
The accompanying notes form an integral part of these financial statements2-57

233
Consolidated Balance Sheet / Consolidated Statement of Profit and Loss
Consolidated Statement of Changes in Equity

H in Crore
(a) Equity share capital (refer note 21) As at As at
Balance at the beginning of the year 160.90 160.68
Changes in equity share capital during the year on exercise of employee stock
options scheme (ESOSs) 0.12 0.22
Balance at the end of the year 161.02 160.90
H in Crore
Attributable to the owners
Reserves and surplus Other reserve

(b) Other Non Total
equity Equity
(refer note 22) Employee Foreign Total controlling
Securities instrument equity
Capital General stock Retained currency Hedge interest
premium through other
reserve reserve options earnings translation reserve
reserve comprehensive
reserve reserve
income
Balance as at
1st April ,2016 (45.02) 1 3 8 6 ( - - 1 3 1
, , 9 , 2 1 5 1
4 1 . 9 1 , 0 ,
4 4 4 5 5 3 . 7
9 1 1 3 . 7 0 2
. . . 1 3 9 3
2 4 8 6 . .
8 3 4 ) 7 8
8 7
Profit for the year - - - - 1 - - - 1 2 1
, , 9 ,
0 0 . 0
0 0 0 3
6 6 3 5
. . .
3 3 4
9 9 2
Other
comprehensive
income/ (loss) - - - - 7 1 - 5 1 ( 1
. 0 0 6 3 3
4 9 . 7 5 1
6 . 2 . . .
5 6 2 9 3
6 8 3 5
)
Payment of
dividend (including
tax on dividend)
(Refer note 44 (c) ) - - - - ( - - - ( ( (
1 1 3 2
9 9 4 2
3 3 . 7
. . 0 .
5 5 5 6
8 65.41 14,068.17 8 352.44 ) 14,420.61 3
) ) )



Consolidated Statement of Cash Flows
H in Crore
Particulars
Cash flow from operating activities
Profit before tax 1,669.46 1,222.17
Adjustments to reconcile profit before tax to net cash flows:
Depreciation, amortisation and impairment expense 1,322.82 1,322.93
Interest expense 114.23 159.38
Unrealised foreign exchange (gains)/loss (net) 2.67 9.58
Expense on employee stock option scheme (ESOSs) 41.28 16.86
Provision for bad and doubtful debts and advances (net) 33.21 52.17
Interest income (29.64) (12.48)
Dividend income (3.54) -
Net gain on sale of current investment carried at FVTPL (72.96) (54.63)
Net gain on sale of current investment (76.53) (123.25)
Fair value gain on financial instruments at fair value through
profit (2.32) (9.47)
and loss
Net (gain)/loss on sale/disposal of property, plant and equipment (24.66) 20.52
Rent income (5.97) (7.19)
Operating profit before working capital changes 2,968.05 2,596.59
Adjustments for :
Decrease/(increase) in inventories (559.34) 322.77
(Increase) in trade and other receivables (854.77) (288.47)
Increase in trade payables and other liabilities 630.86 201.14
Working capital adjustments (783.25) 235.44
Cash generated from operations 2,184.80 2,832.03
Income taxes paid (including tax deducted at source) (722.04) (450.27)
Net cash flow from operating activities 1,462.76 2,381.76
Cash flow from investing activities
Purchase of property, plant & equipment, intangibles/capital work-in-
progress (816.21) (1,135.98)
Proceeds from sale of property, plant & equipment and intangibles 76.75 37.75
Proceeds from sale of investments in subsidiaries & associates 142.56 20.63
Purchase consideration for acquisition of subsidiaries (14.27) (187.93)
Investment in associates - (2.57)
Proceeds from sale of non-current investments 10.31 136.99
(purchase)/sale of current investments (189.54) (197.78)
Fixed deposits placed with banks as margin money (102.76) (0.61)
Interest received 29.64 12.11
Dividend received 3.54 -
Rent received 5.97 7.18
Net cash flow used in investing activities (854.01) (1,310.21)
235
Consolidated Statement of Changes in Equity / Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows

H in Crore
Particulars
Cash flow from financing activities
Proceeds from issue of equity shares 0.12 11.96
Transaction with non-controlling interest (44.07) 95.60
Proceeds/ (repayment) from short-term borrowings (net) (31.98) (4,500.47)
Proceeds from non current borrowings - 3,652.31
Repayment of non current borrowings (2.50) (232.09)
Interest paid (117.78) (159.42)
Dividend paid (160.94) (160.84)
Tax paid on dividend (28.33) (32.73)
Net cash flow used in financing activities (385.48) (1,325.68)
Net increase/(decrease) in cash and cash equivalents 223.27 (254.13)
Cash and cash equivalents at the beginning of the year 610.35 858.15
Exchange difference on translation of foreign currency cash and
cash equivalents 19.84 6.33
Cash and cash equivalents at the end of the year (refer note 853.46 610.35
15)
Note:
The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Indian Accounting Standard (Ind AS-7)-
Statement of Cashflows.
Reconciliation of Financing Activities

H in Crore
Non cash
As changes
Particulars Fair As at
at Cashflows
Foreign value 31st March, 2018
31st March, 2017 Acquisition exchange changes
movement
Long term borrowings 3,645.36 (2.50) - 19.25 - 3,662.11
Short term borrowings 467.23 (31.98) - 0.62 - 435.87
Current maturity of long
term borrowings 0.07 - - - - 0.07
Total 4,112.66 (34.48) - 19.87 - 4,098.05
The accompanying notes form an integral part of these financial statements.



Notes to the Consolidated Financial Statements
Corporate information assets and cash generating units, provisions against
litigations and
The Consolidated Financial Statements comprise
Financial Statements of Cipla Limited (“the
Company”), Subsidiaries and its Associate
(collectively, “the Group” refer annexure A to Note 1)
for the year ended 31st March, 2018. The Company is
a public Company domiciled in India and is
incorporated under the provisions of the
Companies Act applicable in India. Cipla Limited is
a global pharmaceutical Company which uses
cutting edge technology and innovation to meet
the everyday needs of all patients. The Group has
its wide network of operations in local as well
foreign markets.
Note: 1 Significant Accounting Policies and

Key Accounting Estimates and Judgements
Basis of Preparation
The Consolidated Financial Statements of the Group

have been prepared in accordance with Indian
Accounting Standards (hereinafter referred to as
‘Ind AS’) as notified by Ministry of Corporate
Affairs pursuant to Section 133 of the Companies
Act, 2013 (‘Act’) read with the Companies (Indian
Accounting Standards) Rules, 2015 (as amended)
and other relevant provisions of the Act. The
accounting policies are applied consistently to all
the periods presented in the Financial Statements.
The Consolidated Financial Statements have been
prepared on a historical cost basis, except for
certain financial assets and liabilities (including
investment and derivative instruments), defined
benefit plans, plan assets and share based
payments. The Consolidated Financial Statements
are presented in Indian Rupee and all values are
rounded to the nearest crore or decimal thereof,
except when otherwise indicated. Amount less than H
50,000 is presented as H 0.00 Crore.
Use of Estimates and judgements
The preparation of Consolidated Financial Statements

requires the Management of the Group to make
estimates and assumptions that affect the reported
assets and liabilities, revenue and expenses and
disclosures relating to contingent liabilities.
Management believes that the estimates used in the
preparation of the Consolidated Financial
Statements are prudent and reasonable. Examples
of such estimates include estimation of useful lives of
tangible and intangible assets, valuation of
inventories, sales return, employee costs,
assessments of recoverable amounts of deferred tax
contingencies. Estimates and underlying fully eliminating intra- group balances and
assumptions are reviewed by Management at each intra-group transactions and resulting
reporting date. Actual results could differ from unrealised profits. Unrealised losses resulting
these estimates. Any revision of these estimates is from intra-group transactions are eliminated
recognised prospectively in the current and future unless cost cannot be recovered.
periods.
• The Group treats transactions with non-
Principles of Consolidation controlling interests that do not result in a loss
of control as transactions with equity owners of
The Consolidated Financial Statements relate to the Group. A change in ownership interest results
Cipla Limited, its subsidiaries, joint venture and in an adjustment between the carrying amounts
associates. of the controlling and non-controlling interests
to reflect their relative interests in the subsidiary.
Subsidiaries are all entities over which Cipla Limited
Any difference between the amount of the
exercises control. Cipla Limited exercises control if and
adjustment to non-controlling interests and
only if it has the following:
any consideration paid or received is
• power over the entity. recognised within equity.
• exposure, or rights, to variable returns from
its involvement with the entity; and • An associate is an entity over which the
investor has significant influence. Significant
• the ability to use its power over the entity to
influence is the power to participate in the
affect the amount of its returns.
financial and operating policy decisions of the
The consolidated financial statements have been investee but is not control or joint control of
prepared on the following basis: those policies. A joint venture is a joint
arrangement whereby the parties that have
• The Financial Statements of the Group have joint control of the arrangement have rights to
been combined on a line-by-line basis by adding the net assets of the arrangement. Investments
together the book values of like items of in associates and joint ventures are accounted
assets, liabilities, income and expenses, after for using the equity method.
237
Consolidated Statement of Cash Flows / Notes to the Consolidated Financial Statements

• Under the equity method, on initial recognition
recognition, property, plant and equipment other
the investment in an associate or a joint
than freehold land are measured at cost less
venture is recognised at cost. The carrying
accumulated depreciation and any accumulated
amount of the investment in associates and
impairment losses. Freehold land has an unlimited
joint ventures is increased or decreased to
useful life and therefore is not depreciated. The
recognise the Group share of the profit or loss carrying values of property, plant and equipment
after the date of acquisition. The Financial are reviewed for impairment when events or
Statements of the associate or joint venture changes in circumstances indicate that the carrying
are prepared for the same reporting period as value may not be recoverable. The Group had
the Group. When necessary, adjustments are applied for the one time transition exemption of
made to bring the accounting policies in line considering the carrying cost on the transition date
with those of the Group. Unrealised gains and i. e. 1st April, 2015 as the deemed cost under IND
losses on transactions between the Group and AS. Hence regarded thereafter as historical cost.
its associates and joint ventures are eliminated
to the extent of the Group interest in those The cost of an item of property, plant and
entities. Where unrealised losses are equipment is recognised as an asset if, and only if,
eliminated, the underlying asset is also tested it is probable that future economic benefits
for impairment. associated with the item will flow to the Group and
the cost of the item can be measured reliably.
• The Financial Statements of the subsidiaries, Items such as spare parts, stand- by equipment
associates and joint ventures used for the and servicing equipment that meet the definition
purpose of consolidation are drawn up to the of property, plant and equipment are capitalised at
same reporting date as that of the Group. cost and depreciated over their useful life. Costs in
nature of repairs and maintenance are recognised
• The Consolidated Financial Statements have in the Statement of Profit and Loss as and when
been prepared using uniform accounting incurred. The present value of the expected cost
policies for like transactions and other events for the decommissioning of an asset after its use is
in similar circumstances and are presented to included in the cost of the respective asset if the
the extent possible, in the same manner, as recognition criteria for the provision is met.
the Company’s separate Financial Statements.
Depreciation on property, plant and equipment
Current/non-current classification (other than Freehold Land) is provided based on
useful life of the assets. Depreciation on property,
All assets and liabilities have been classified as
plant and equipment, which are added/disposed off
current and non-current as per the Group normal
during the year, is provided on pro-rata basis with
operating cycle and other criteria set out in the
reference to the month of addition/deletion, in the
Schedule III of the Act. Based on the nature of
Statement of Profit and loss.
products and the time between acquisition of
assets for processing and their realisation in cash The estimated useful life for property, plant and
and cash equivalents, the Group has ascertained its equipment are mentioned below:
operating cycle as upto 12 months for the
purpose of current/non-current classification of assets
and liabilities. costs that are directly attributable to the acquisition,
construction or production of a qualifying property,
Property, plant and equipment plant and equipment. Subsequent to initial
All items of property, plant and equipment,
including freehold land, are initially recorded at
cost. Cost of property, plant and equipment
comprises purchase price, non-refundable taxes,
levies and any directly attributable cost of bringing
the asset to its working condition for the intended
use. The cost includes the cost of replacing part of
the property, plant and equipment and borrowing

Type of Asset Useful Lives

Buildings 20 years
Leasehold Improvements Lease
Term Plant and Equipment 2 to 25 years
Computer Equipment 3 to 5
years Vehicles 5
years Office Equipment 5 to 10
years
Electrical Installations 5 to 10 years
Furniture and Fixtures 5 to 10 years
Capital work-in-progress included in property,

plant and equipment are not depreciated as
these assets are not yet available for use.
Notes to the Consolidated Financial Statements 239

An item of property, plant and equipment, is
derecognised upon disposal or when no future Distribution Network 25 years
economic benefits are expected from its use or Non-compete Rights 2 to 7 years
Government Contracts 6 years
disposal. Any gain
or loss arising on derecognition of the asset (calculated
as the difference between the net disposal Computer Software 2 to 6 years
proceeds and the carrying amount of the asset) is Product related Intangibles 2 to 12 years
included in the Statement of Profit and loss.
The residual values, useful lives and methods of

depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.
Intangible assets
Intangible assets such as Marketing Intangibles,

Trademarks, Technical Know-How, Brands, Computer
Software, Product Related Intangibles, Distribution
Network, Non-compete Rights, Government Contracts
acquired separately are measured on initial
recognition at cost. Intangible assets arising on
acquisition of business are measured at fair value
as at date of acquisition. Internally generated
intangibles including research cost are not
capitalised and the related expenditure is
recognised in the Statement of Profit and Loss in
the period in which the expenditure is incurred.
Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and
accumulated impairment loss, if any. Goodwill is
tested for impairment on annual basis
Expenditure on regulatory approval
Expenditure for obtaining regulatory approvals and

registration of products for overseas markets is
charged to the Statement of Profit and Loss.
Amortisation methods and periods
The Group amortises intangible assets with a finite

useful life using the straight-line method over the
period of useful life of an asset.
The estimated useful life for Intangible Assets are

mentioned below:
Type of Asset Useful Lives

Marketing Intangibles 2 to 15 years
Trademarks 2 to 15 years
Technical Know-How 2 to 15 years
Brands 2 to 15 years
Investment properties
Property that is held for long-term rental yields or

for capital appreciation or both, and that is not
occupied by the Group, is classified as investment
property. Investment property is measured initially
at its cost, including related transaction costs and
borrowing costs where applicable. Subsequent
expenditure is capitalised to the asset’s carrying
amount only when it is probable that future economic
benefits associated with the expenditure will flow to
the Group and the cost of the item can be
measured reliably. All other repairs and
maintenance costs are expensed when incurred.
When part of an investment property is replaced, the
carrying amount of the replaced part is de-
recognised.
Investment properties are depreciated using the

straight-line method over their estimated useful lives.
Investment properties generally have a useful life

of 25-40 years. The useful life has been
determined based on technical evaluation
performed by the management’s expert.
Impairment of non-financial assets
The Group assesses, at each reporting date,

whether there is an indication that an asset may
be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Group estimates the asset’s recoverable amount. An
asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s (CGU) fair value
less costs of disposal and its value in use.
Recoverable amount is determined for an
individual asset, unless the asset does not
generate cash inflows that are largely independent
of those from other assets or Group of assets.
When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.
Impairment losses of continuing operations, including

impairment on inventories, are recognised in the
Statement of Profit and Loss.
Non-financial assets other than goodwill that

suffered an impairment are reviewed for possible
reversal of the impairment at the end of each
reporting period.
Borrowing costs at fair value through profit or loss are recognised in
Statement of Profit and Loss
Borrowing costs consists of interest, ancillary costs
and other costs in connection with the borrowing of
funds and exchange differences arising from foreign
currency borrowings to the extent they are
regarded as an adjustment to interest costs.
Borrowing costs attributable to acquisition and/or

construction of qualifying assets are capitalised as
a part of the cost of such assets, up to the date
such assets are ready for their intended use. Other
borrowing costs are charged to the statement of
profit and loss.
Foreign currency translation

Functional and presentation currency
Items included in the Consolidated Financial

Statements of each of the Group entities are
measured using the currency of the primary
economic environment in which the entity operates
(‘the functional currency’). The Consolidated
Financial Statements are presented in Indian Rupee
(H), which is Company’s functional and presentation
currency.
Transactions and balances
Foreign currency transactions are translated into

the functional currency using the exchange rates at
the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
generally recognised in statement of profit and
loss.
Foreign exchange differences regarded as an

adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs. All
other foreign exchange gains and losses are
presented in the Statement of profit and loss on a
net basis within other gains/(losses).
Non-monetary items that are translated at fair

value in a foreign currency are translated using the
exchange rates prevailing on the date when the fair
value was determined. Translation differences on
assets and liabilities carried at fair value are
reported as part of the fair value gain or loss. For
example, translation differences on non-monetary
assets and liabilities such as equity instruments held
as part of the fair value gain or loss and subsequently measured at amortised cost.
translation differences on non-monetary assets
such as equity investments classified as Fair
Value through Other Comprehensive Income
(FVTOCI) are recognised in other
comprehensive income.
Inventories
Raw materials and packing materials are

valued at lower of cost and net realisable value
after providing for obsolescence, if any.
However, these items are considered to be
realisable at cost if the finished products, in
which they will be used, are expected to be
sold at or above cost.
Stores, spares and consumables, work-in-

progress, stock-in-trade and are valued at
lower of cost and net realisable value.
Finished goods and work-in-progress include

costs of raw material, labour, conversion costs
and other related costs incurred in bringing the
inventories to their present location and
condition.
Cost of inventories is determined on a weighted

moving average basis.
Government grants
Government Grants are recognised where there
is reasonable assurance that the grant will be
received and all attached conditions will be
complied with. When the grant relates to an
asset, it is recognised as income in equal
amounts over the expected useful life of the
related asset and presented within other
income.
When loans or similar assistance are provided

by the Government or related institutions, with an
interest rate below the current applicable market
rate, the effect of this favourable interest is
regarded as a government grant.
Government grants that are receivable on

satisfying export or revenue conditions with no
future related cost are recognised in profit or
loss in the period such conditions are met.
The loan or assistance is initially recognised

and measured at fair value and the
Government grant is measured as the
difference between initial carrying value of the
loan and the proceeds received. The loan is

Revenue recognition a measure of substantive progress towards
completion under the contract.
(i) Sale of goods and rendering of services
Other operating revenue is recognised on
Revenue is recognised when it is probable that accrual basis.
economic benefits associated with a
transaction flows to the Group in the ordinary
course of its activities and the amount of
revenue can be measured reliably. Revenue is
measured at the fair value of the consideration
received or receivable, net of returns and other
allowances including (trade discounts and
volume rebates).
Accrual for sales returns, chargebacks and

other allowances are provided at the point of
sale based upon past experiences. Adjustments to
such returns, chargebacks and other allowances
are made prospectively as new information
becomes available.
Revenue includes only the gross inflows of

economic benefits, including excise duty (upto
30th June, 2017) received and receivable by the
Group, on its own account. Amounts collected
on behalf of third parties such as sales
tax,value added tax and Goods and Services
tax (GST) are excluded from revenue.
Profit sharing revenues are generally

recognised under the terms of a license and
supply agreement in the period in which such
amounts can be reliably measured and
collectability is reasonably assured.
Revenue from sale of goods is recognised

when the following conditions are satisfied:
• The Group has transferred the significant

risks and rewards of ownership of the
goods to the buyer.
• The Group retains neither continuing

managerial involvement to the degree
usually associated with ownership nor
effective control over goods sold.
• The amount of revenue can be measured

reliably.
Revenue resulting from the achievement of

milestone events stipulated in agreements is
recognised when the milestone is achieved.
Milestones are based upon the occurrence of a
substantive element specified in the contract or as

18
(ii) Interest income The present value of the defined benefit

obligation is determined by discounting the
Interest income from a financial asset is estimated future
recognised when it is probable that the
economic benefits will flow to the Group and
the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principle outstanding
and at the effective interest rate applicable, which
is the rate that discounts estimated future cash
receipts through the expected life of the financial
asset to that asset’s net carrying amount on
initial recognition.
iii) Dividends
Dividend income from investments is

recognised when the right to receive payment
has been established, provided that it is
probable that the economic benefits will flow
to the Group and the amount of income can be
measured reliably.
Employee benefits
(i) Short term employee benefits
Liability on account of short term employee

benefits is recognised on an undiscounted and
accrual basis during the period when the
employee renders service/ vesting period of the
benefit.
Post retirement contribution plans such as

Employees’ Pension scheme and Employees’
Provident Fund (for employees other than
those who are covered under Employees’
Provident Fund Trust) are charged to the
Statement of Profit and Loss for the year when
the contributions to the respective funds
accrue.
(ii) defined benefit plan
Post retirement benefit plans such as gratuity

and provident fund are determined on the
basis of actuarial valuation made by an
independent actuary as at the reporting date.
Re-measurement, comprising actuarial gains
and losses, the effect of the changes to the
asset ceiling (if applicable) and the return on
plan assets (excluding net interest), is
recognised in Other Comprehensive Income in
the period in which they occur. Re-
measurement recognised in Other
Comprehensive Income is included in retained
earnings and will not be reclassified to
Statement of Profit and Loss.
(iii) Gratuity obligations

cash outflows by reference to market yields at of each reporting period until the liability is settled and
the end of the reporting period on government at the date of settlement the fair value is remeasured
bonds that have terms approximating to the with any
terms of the related obligation.
The net interest cost is calculated by applying

the discount rate to the net balance of the
defined benefit obligation and the fair value of
plan assets. This cost is included in employee
benefit expense in the Statement of Profit and
Loss.
Changes in the present value of the defined

benefit obligation resulting from plan
amendments or curtailments are recognised
Loss as past service cost.
(iv) Other benefit plan
Liability in respect of compensated absences

becoming due or expected to be availed within
one year from the balance sheet date is
recognised on the basis of undiscounted value
of estimated amount required to be paid or
estimated value of benefit expected to be
availed by the employees. Liability in respect
of compensated absences becoming due or
expected to be availed more than one year
after the reporting date is estimated on the
basis of an actuarial valuation performed by an
independent actuary.
(v) Termination benefits
Termination benefits arising are recognised in

the Statement of Profit and Loss when:
• The Group has a present obligation as a
result of past event;
• A reliable estimate can be made of the
amount of the obligation; and
• It is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation.
Share-based employee remuneration
The Group operates equity-settled share-based

remuneration plans for its employees.
For cash settled share based payments a liability is

recognised for the services acquired, measured
initially at the fair value of the liability. At the end
changes in fair value is recognised in the Income Tax expense comprises of current tax expense
Statement of Profit and Loss for the year. and deferred tax charged/credit. Current and deferred
taxes are recognised in Statement of Profit and Loss,
All services received in exchange for the grant except
of any share-based payment are measured at
their fair values on the grant date. Grant date is
the date when the Group and employees have
shared an understanding of terms and
conditions on the arrangement.
Where employees are rewarded using share-

based payments, the fair value of employees’
services is determined indirectly by reference
to the fair value of the equity instruments
granted. This fair value is appraised at the
grant date and excludes the impact of non-
market vesting conditions (for example
profitability and sales growth targets and
performance conditions).
All share-based remuneration is ultimately

recognised as an expense in Statement of Profit
and Loss. If vesting periods or other vesting
conditions apply, the expense is allocated over
the vesting period, based on the best available
estimate of the number of share options
expected to vest.
Non-market vesting conditions are included in

assumptions about the number of options that
are expected to become exercisable. Estimates
are subsequently revised if there is any
indication that the number of share options
expected to vest differs from previous
estimates.
Any adjustment to cumulative share-based

compensation resulting from a revision is
recognised in the current period. The number of
vested options ultimately exercised by holder
does not impact the expense recorded in any
period.
Market conditions are taken into account when

estimating the fair value of the equity
instruments granted. Services received from
employees satisfying another vesting condition
irrespective of whether market conditions are
satisfied.
Upon exercise of share options, the proceeds

received, net of any directly attributable
transaction costs, are allocated to share capital
up to the nominal (or par) value of the shares
issued with any excess being recorded as
securities premium.
Taxes

when they relate to items that are recognised in recognised as an asset only when and to the
Other Comprehensive Income or directly in equity, extent it is reasonably certain that the Group
in which case, the current and deferred tax are also will pay normal income tax during the specified
recognised in Other Comprehensive Income or period. Such asset
directly in equity.
(i) Current income tax:
Current tax is the amount of tax payable on

the taxable income for the year as determined
in accordance with the provisions of the
Income Tax Act of the respective jurisdiction.
The current tax is calculated using tax rates
that have been enacted or substantively
enacted, at the reporting date.
(ii) Deferred tax:
Deferred tax is recognised using the Balance

Sheet approach on temporary differences
arising between the tax bases of assets and
liabilities and their carrying amounts.
Deferred tax assets are recognised to the

extent that it is probable that taxable profit will
be available against which the deductible
temporary differences, and the carry forward
of unused tax credits and unused tax losses
can be utilised, except when the deferred tax
asset relating to the deductible temporary
difference arises from the initial recognition of
an asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss.
The carrying amount of deferred tax assets is

reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured

using substantively enacted tax rates expected
to apply to taxable income in the years in which
the temporary differences are expected to be
recovered or settled.
Minimum Alternate Tax (MAT) credit is

is reviewed at each reporting date and the estimated useful life of the asset and the lease
carrying amount of the MAT credit asset is term.
written down to the extent there is no longer a
convincing evidence to the effect that the
Group will pay normal income tax during the
specified period.
Deferred tax assets and deferred tax liabilities

are offset if a legally enforceable right exists to
set off current tax assets against current tax
liabilities.
Deferred tax liabilities are not recognised for

temporary differences between the tax bases
of investment in subsidiaries & associate and
carrying amount, where the Group is able to
control the timing of the reversal of the
temporary differences and it is probable that
the differences will not reverse in the
foreseeable future.
Leases
The determination of whether an arrangement is

(or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if fulfilment of
the arrangement is dependent on the use of a
specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if
that right is not explicitly specified in an
arrangement.
(i) Group as a lessee
A lease is classified at the inception date as a

finance lease or an operating lease. A lease
that transfers substantially all the risks and
rewards incidental to ownership to the Group is
classified as a finance lease.
Finance leases are capitalised at the

commencement of the lease at the inception
date fair value of the leased property or, if
lower, at the present value of the minimum
lease payments. Lease payments are
apportioned between finance charges and
reduction of the lease liability so as to achieve
a constant rate of interest on the remaining
balance of the liability. Finance charges are
recognised in finance costs in the statement of
Profit and Loss.
A leased asset is depreciated over the useful

life of the asset. However, if there is no
reasonable certainty that the Group will obtain
ownership by the end of the lease term, the
asset is depreciated over the shorter of the
Operating lease payments are recognised as obligations may be small.
an expense in the statement of Profit and Loss
on accrual basis as escalation in lease Provisions are measured at the present value of
arrangements are for expected inflationary Management’s best estimate of the expenditure
cost. required to settle the present obligation at the end of the
(ii) Group as a lessor
Leases in which the Group does not transfer

substantially all the risks and rewards of
ownership of an asset are classified as operating
leases. Initial direct costs incurred in
negotiating and arranging an operating lease
are added to the carrying amount of the leased
asset and recognised over the lease term on
the same basis as rental income. Contingent
rents are recognised as revenue in the period
in which they are earned.
Leases are classified as finance leases when

substantially all of the risks and rewards of
ownership transfer from the Group to the
lessee. Amounts due from lessees under
finance leases are recorded as receivables at
the Group net investment in the leases.
Finance lease income is allocated to
accounting periods so as to reflect a constant
periodic rate of return on the net investment
outstanding in respect of the lease.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand

and cash at bank including fixed deposit with
original maturity period of three months or less
and short term highly liquid investments with an
original maturity of three months or less.
Provisions
Provisions for legal claims, chargebacks and sales

returns are recognised when the Group has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation
and the amount can be reliably estimated.
Provisions are not recognised for future operating
losses.
Where there are a number of similar obligations,

the likelihood that an outflow will be required in
settlement is determined by considering the class of
obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to
any one item included in the same class of
reporting period. The discount rate used to place (regular trades) are recognised on the
determine the present value is a pre-tax rate trade date, i.e., the date that the Group
that reflects current market assessments of the commits to purchase or sell the asset. The
time value of money and the risks specific to the classification depends on the Group business
liability. The increase in the provision due to the
passage of time is recognised as interest
expense.
Contingencies
Disclosure of contingent liabilities is made when

there is a possible obligation or a present
obligation that may, but probably will not,
require an outflow of resources. Where there is
possible obligation or a present obligation in
respect of which the likelihood of outflow of
resources is remote, no provision or disclosure
is made.
Earnings per share
Basic earnings per share is calculated by

dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period.
For the purpose of calculating diluted earnings

per share, the net profit attributable to equity
shareholders and the weighted average number
of shares outstanding are adjusted for the effect
of all dilutive potential equity shares from the
exercise of options on unissued share capital.
The number of equity shares is the aggregate of
the weighted average number of equity shares
and the weighted average number of equity
shares which are to be issued in the conversion of
all dilutive potential equity shares into equity
shares.
Financial instruments
A financial instrument is any contract that

gives rise to a financial asset of one entity and
a financial liability or equity instrument of
another entity.
(i) Financial assets
All financial assets are recognised initially

at fair value plus, in the case of financial
assets not recorded at fair value through
profit or loss, transaction costs that are
attributable to the acquisition of the
financial asset. Purchases or sales of
financial assets that require delivery of
assets within a time frame established by
regulation or convention in the market
model for managing the financial assets and the asset to the extent of the Group continuing
contractual terms of the cash flows. involvement. In that case, the Group also
recognises an associated liability. The transferred
Subsequent measurement asset and the associated liability are measured on a
For purposes of subsequent measurement, basis that reflects the rights and obligations that the
financial assets are classified in three categories: Group has retained.
• Debt instruments at amortised cost.

• Derivatives and equity instruments at fair
value through profit or loss (FVTPL).
• Equity instruments measured at fair value
(FVTOCI).
Equity investments
All equity investments in scope of Ind-AS 109 are

measured at fair value. Equity instruments which are
held for trading are classified as FVTPL. For all other
equity instruments, the Group decides to classify the
same either as at FVTOCI or FVTPL. The Group
makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition
and is irrevocable.
If the Group decides to classify an equity instrument

as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the
OCI. There is no recycling of the amounts from OCI
to Statement of Profit and Loss, even on sale of
investment. However, the Group may transfer the
cumulative gain or loss within equity.
Equity instruments included within the FVTPL

category are measured at fair value with all
changes recognised in the Statement of Profit and
Loss.
Derecognition
The Group derecognises a financial asset only when

the contractual rights to the cash flows from the asset
expires or it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset.
When the Group has transferred its rights to receive

cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor
retained substantially all of the risks and rewards
of the asset, nor transferred control of the asset,
the Group continues to recognise the transferred
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Group could be required to repay.
Impairment of financial assets
The Group assesses at each reporting date

whether there is any objective evidence that a
financial asset or a Group of financial assets is
impaired.
A financial asset or a Group of financial assets is

deemed to be impaired if, there is objective evidence
of impairment as a result of one or more events that
has occurred after the initial recognition of the asset
(an expected ‘loss event’) and that loss event has an
impact on the estimated future cash flows of the
financial asset or the Group of financial assets that
can be reliably estimated.
Evidence of impairment may include indications

that the debtors or a Group of debtors is
experiencing significant financial difficulty, default
or delinquency in interest or principal payments, the
probability that they will enter bankruptcy or other
financial reorganisation and where observable
data indicate that there is a measurable decrease in
the estimated future cash flows, such as changes in
arrears or economic conditions that correlate with
defaults.
(ii) Financial liabilities
Financial liabilities are classified, at initial

recognition, as financial liabilities at fair value
through the Statement of Profit and Loss.
All financial liabilities are recognised initially at

fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.
The Group financial liabilities include trade and

other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and
derivative financial instruments.
The measurement of financial liabilities depends

on their classification, as described below:
Financial liabilities at fair value through the

Statement of Profit and Loss include financial
liabilities designated upon initial recognition
as at
fair value through the Statement of Profit and foreign currency risks and interest rate risks,
Loss. Financial liabilities are classified as held for respectively.
trading if they are incurred for the purpose of
repurchasing in the near term. This category Such derivative financial instruments are initially
also includes derivative financial instruments recognised at fair value on the date on which
entered into by the Group that are not derivative
designated as hedging instruments in hedge
relationships as defined by Ind AS 109.
Separated embedded derivatives are also
classified as held for trading unless they are
designated as effective hedging instruments.
Gains or losses on liabilities held for trading are

recognised in the Statement of Profit and Loss.
Loans and borrowings
After initial recognition, interest-bearing loans

and borrowings are subsequently measured at
amortised cost using the EIR method. Gains
and losses are recognised in the Statement of
Profit and Loss when the liabilities are
derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into

account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation
is included as finance costs in the Statement of
Profit and Loss.
This category generally applies to interest-bearing

loans and borrowings.
Derecognition
A financial liability is derecognised when the

obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification is
treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.
(iii) Derivative financial instruments
The Group uses derivative financial

instruments, such as forward currency
contracts, interest rate swaps, to hedge its
contract is entered into and are on the disposal of a foreign operation.
subsequently remeasured at fair value.
Derivatives are carried as financial assets Group companies
when the fair value is positive and as financial The results and financial position of foreign
liabilities when the fair value is negative. operations (none of which has the currency of a
(iv) Cash flow hedge hyperinflationary
The effective portion of changes in the fair

value of derivatives that are designated and
qualify as cash flow hedges is recognised in
other comprehensive income and
accumulated under hedging reserve. The
Group classifies its interest rate swaps that
hedge foreign currency risk associated as
cash flow hedges and measures them at
fair value. The gain or loss relating to the
ineffective portion is recognised
Loss, and is included in the ‘Other income’
line item. Amounts previously recognised in
other comprehensive income and
accumulated in equity relating to effective
portion (as described above) are reclassified
to the Statement of Profit and Loss in the
periods when the hedged item affects
Statement of Profit and Loss, in the same
line as the recognised hedged item. When
the hedging instrument expires or is sold or
terminated or when a hedge no longer
meets the criteria for hedge accounting,
any cumulative deferred gain/loss at that
time remains in equity until the forecast
transaction occurs. When the forecast
transaction is no longer expected to occur,
the cumulative gain/loss that was reported in
equity are immediately reclassified to the
Statement of Profit and loss within other
income.
(v) Net investment hedge
Hedge of net investments in foreign

operations are accounted for similar to cash
flow hedges.
Any gain or loss on the hedging instrument

relating to the effective portion of the
hedge is recognised in other
comprehensive income and accumulated in
foreign currency translation reserve in
equity. The gain or loss relating to the
ineffective portion is recognised
immediately in Profit and Loss within other
gains/(losses).
Gain and losses accumulated in equity are

reclassified to Statement of Profit and Loss
economy) that have a functional currency Business combinations are accounted for using
different from the presentation currency are the acquisition method. The acquisition method
translated into the presentation currency as involves the recognition of the acquiree’s
follows: identifiable assets and liabilities, including
contingent liabilities, regardless of whether
• Assets and liabilities are translated at the
they were recorded in the Consolidated
closing rate prevailing on the reporting
Financial Statements prior
date.
• Income and expenses are translated at

average exchange rates (unless this is not
a reasonable approximation of the
cumulative effect of the rates prevailing on
the transaction dates, in which case
income and expenses are translated at the
dates of the transactions).
• All resulting exchange differences are

recognised in other comprehensive income.
Goodwill and fair value adjustments arising on

the acquisition of a foreign operation are
treated as assets and liabilities of the foreign
operation and translated at the closing rate.
Foreign operations
In the Group Consolidated Financial Statements,

all assets, liabilities and transactions of Group
entities with a functional currency other than
the H are translated into H upon consolidation.
The functional currency of the entities in the
Group has remained unchanged during the
reporting period.
On consolidation, assets and liabilities have

been translated into H at the closing rate at
the reporting date. Goodwill and fair value
adjustments arising on the acquisition of a
foreign entity have been treated as assets and
liabilities of the foreign entity and translated
into H at the closing rate. Income and
expenses have been translated into H at the
average rate over the reporting period.
Exchange differences are charged or credited
to other comprehensive income and recognised
in the currency translation reserve in equity. On
disposal of a foreign operation, the related
cumulative translation differences recognised in
equity are reclassified to Statement of Profit
and Loss and are recognised as part of the
gain or loss on disposal.
Business combinations
to acquisition. As on the acquisition-date, the for its classification between finance lease and
identifiable assets and liabilities assumed are
included in the consolidated statement of financial
position at their acquisition date fair values.
The excess of consideration transferred, the

amount of any Non-Controlling Interests (NCI)
in the acquiree and the acquisition date fair
value of any previous equity interest in the
acquiree over the fair value of the identifiable
net assets acquired is recorded as goodwill. If
the consideration transferred, non-controlling
interest recognised and previously held
interest measured is less than the fair value of
the net assets acquired, the difference is
recognised in Capital Reserve. The NCI is
measured at proportionate value of its
interest.
Segment reporting
Operating segments are reported in a manner

consistent with the internal reporting provided
to the Chief Operating Decision Maker.
The Chief Operating Decision Maker is the

Chief Executive Officer of the Group, who
assesses the financial performance and
position of the Group and makes strategic
decisions.
Key accounting estimates and judgements
The preparation of the Group Consolidated

Financial Statements requires the Management to
make judgements, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require an adjustment to the carrying amount
of assets or liabilities affected in future periods.
Critical accounting estimates and assumptions
The key assumptions concerning the future and other

key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are
described below:
Judgements
(i) Leases
The Group has evaluated each lease agreement

operating lease. The Group has reached its based on the expected utility of the assets to the
decisions on the basis of the principles laid Group.
down in Ind- AS 17 “Leases” for the said
classification. The Group has also used (ii) Current income taxes
appendix C of Ind-AS 17 for determining
The major tax jurisdictions for the Group are India,
whether an arrangement is, or contains, a
US and South Africa, though the Group companies
lease is based on the substance of the
also files tax returns in other foreign jurisdictions.
arrangement and based on the assessment
whether:
• Fulfillment of the arrangement is dependent

on the use of a specific asset or assets (the
asset); and
• The arrangement conveys a right to use the

asset.
(ii) Deferred income taxes
The assessment of the probability of future

taxable profit and consequent utilisation of
deferred tax assets is based on the Group latest
approved forecast, which is adjusted for
significant non- taxable profit and expenses and
specific limits to the use of any unused tax loss
or credit. The tax rules in the numerous
jurisdictions in which the Group operates are
also carefully taken into consideration. If a
positive forecast of taxable profit indicates the
probable use of a deferred tax asset, especially
when it can be utilised without a time limit, that
deferred tax asset is usually recognised in full.
(iii) Research and developments costs
Management monitors progress of internal

research and development projects by using a
project management system. Significant judgement
is required in distinguishing research from the
development phase. Development costs are
recognised as an asset when all the criteria are
met, whereas research costs are expensed as
incurred.
Management also monitors whether the

recognition requirements for development costs
continue to be met. This is necessary due to
inherent uncertainty in the economic success of
any product development.
Estimates
(i) Useful lives of various assets
Management reviews the useful lives of

depreciable assets at each reporting date,
Significant judgments are involved in receivables, the Group follows a simplified
determining the provision for income taxes approach wherein an amount equal to lifetime
including judgment on whether tax ECL is measured and recognised as loss
positions are probable of being sustained in allowance.
tax assessments. A tax assessment can
involve complex issues, which can only be
resolved over extended time periods. The
recognition of taxes that are subject to
certain legal or economic limits or
uncertainties is assessed individually by
management based on the specific facts
and circumstances.
(iii) Deferred tax
Deferred tax liabilities are not recognised

for temporary differences between the tax
bases of investment in subsidiaries &
associate and carrying amount, where the
management believes that Group is able to
control the timing of the reversal of the
temporary differences and it is probable
that the differences will not reverse in the
foreseeable future.
(iv) Sales returns and chargeback
The Group accounts for sales returns and

chargeback accruals by recording an
allowance for sales returns and chargeback
concurrent with the recognition of revenue
at the time of a product sale. This allowance
is based on the Group estimate of expected
sales returns and charge-back. The Group
deals in various products and operates in
various markets. Accordingly, the estimate
of sales returns is determined primarily by
the Group historical experience in the
markets in which the Group operates.
(v) Expected credit loss
The Group applies Expected Credit Losses

(ECL) model for measurement and
recognition of loss allowance on the
following:
• Trade receivables and lease receivables
• Financial assets measured at

amortised cost (other than trade
receivables and lease receivables)
• Financial assets measured at fair value

(FVTOCI)
In case of trade receivables and lease

In case of other assets (listed above), the Management uses valuation techniques in
Group determines if there has been a significant measuring the fair value of financial
increase in credit risk of the financial asset instruments where active market quotes are
since initial recognition. If the credit risk of such not available. Details of the assumptions used
assets has not increased significantly, an amount are given in the
equal to twelve month ECL is measured and
recognised as loss allowance. However, if
credit risk has increased significantly, an
amount equal to lifetime ECL is measured and
recognised as loss allowance.
(vi) Accounting for defined benefit plans
In accounting for post-retirement benefits, several

statistical and other factors that attempt to
anticipate future events are used to calculate
plan expenses and liabilities. These factors
include expected return on plan assets, discount
rate assumptions and rate of future compensation
increases. To estimate these factors, actuarial
consultants also use estimates such as
withdrawal, turnover, and mortality rates which
require significant judgment. The actuarial
assumptions used by the Group may differ
materially from actual results in future periods
due to changing market and economic conditions,
regulatory events, judicial rulings, higher or lower
withdrawal rates, or longer or shorter participant
life spans.
(vii) Impairment
An impairment loss is recognised for the

amount by which an asset’s or cash-generating
unit’s carrying amount exceeds its recoverable
amount to determine the recoverable amount,
management estimates expected future cash
flows from each asset or cash- generating unit
and determines a suitable interest rate in order
to calculate the present value of those cash
flows. In the process of measuring expected
future cash flows, management makes
assumptions about future operating results. These
assumptions relate to future events and
circumstances. The actual results may vary,
and may cause significant adjustments to the
Group assets.
In most cases, determining the applicable

discount rate involves estimating the appropriate
adjustment to market risk and the appropriate
adjustment to asset-specific risk factors.
(viii) Fair value of financial instruments

notes regarding financial assets and liabilities.
In applying the valuation techniques,
management makes maximum use of market
inputs and uses estimates and assumptions
that are, as far as possible, consistent with
observable data that market participants
would use in pricing the instrument. Where
applicable data is not observable,
management uses its best estimate about the
assumptions that market participants would
make. These estimates may vary from the
actual prices that would be achieved in an
arm’s length transaction at the reporting date.
Recent accounting pronoucements
Appendix B to Ind AS 21, Foreign currency

transactions and advance consideration: On March
28, 2018, Ministry of corporate Affairs (”MCA”) has
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2018 containing
Appendix B to Ind AS 21, Foreign currency
transactions and advance consideration which
clarifies the date of the transaction for the purpose of
determining the exchange rate to use on initial
recognition of the related asset, expense or
income, when an entity has received or paid
advance consideration in a foreign currency.
The amendment will come into force from 1 April

2018. The Company is evaluating the requirement
of the amendment and the impact on the financial
statements. The effect on adoption of Ind AS 21 is
expected to be insignificant.
Amendments to Ind AS 12 Recognition of Deferred Tax

Assets for Unrealised Losses
The amendments clarify that an entity needs to

consider whether tax law restricts the sources of
taxable profits against which it may make
deductions on the reversal of that deductible
temporary difference. Furthermore, the
amendments provide guidance on how an entity
should determine future taxable profits and explain
the circumstances in which taxable profit may
include the recovery of some assets for more than
their carrying amount.
Entities are required to apply the amendments

retrospectively. However, on initial application of
the amendments, the changes in the opening
equity of the earliest comparative period may be
recognised in opening retained earnings (or in
another component of equity, as appropriate),
without allocating the change between opening
retained earnings and other components of equity.
Entities applying this relief must

disclose that fact. These amendments are effective
be entitled. Further the new standard requires
for annual periods beginning on or after 1 April
enhanced disclosures about the nature, amount,
2018. The Company will adopt the new standard
timing and uncertainty of revenue and cash flows
on the required effective date. On transition, the
arising from the entity’s contracts with customers.
effect of this change is not expected to be material
The new revenue standard is applicable to the
for the Company.
Company from 1st April 2018.
Ind AS 115
The standard permits two possible methods of transition:
In March 2018, the Ministry of Corporate Affairs has
(i) Retrospective approach Under this approach
notified the Companies (Indian Accounting
the standard will be applied retrospectively to
Standards) Amended Rules 2018 (“amended rules”).
each prior reporting period presented in
As per the amended rules, Ind AS 115 “Revenue from
accordance with Ind AS 8 - Accounting
contracts with customers” supersedes Ind AS 11,
Policies, Changes in Accounting Estimates and
“Construction contracts” and Ind AS 18, “Revenue”
Errors.
and is applicable for all accounting periods
commencing on or after 1st April 2018. (ii) Retrospectively with cumulative effect of
initially applying the standard recognised at the
Ind AS 115 introduces a new framework of five step
date of initial application (Cumulative catch - up
model for the analysis of revenue transactions. The
approach).
model specifies that revenue should be recognised
when (or as) an entity transfer control of goods or The Company is evaluating the requirement of the
services to a customer at the amount to which the amendment and the impact on the financial
entity expects to statements. The effect on adoption of Ind AS 115 is
expected to be insignificant.
Annexure ‘A’ to Note 1: Significant accounting policies
Name of the % Ownership Interest

Name of the Company With effect
As at As at
Company from
31 March, 2018
st
31 March, 2017
st

Cipla FZE 7 United Arab
Emirates 100% 100% 04/10/06
Golden Cross Pharma Private Limited India 100% 100% 14/05/10
Cipla (Mauritius) Limited Mauritius 100% 100% 27/01/11
Meditab Specialities Private Limited India 100% 100% 01/10/10
Cipla Medpro South Africa Proprietary
Limited South Africa 100% 100% 15/07/13
Cipla Holding BV Netherlands 100% 100% 28/08/13
Cipla Biotec Private Limited India 100% 100% 24/07/14
Cipla EU Limited United Kingdom 100% 100% 27/01/11
Saba Investment Limited United Arab
Emirates 51% 51% 02/10/14
Jay Precision Pharmaceuticals Private
Limited India 60% 60% 26/02/15
Cipla Health Limited India 73.89% 73.89% 27/08/15
Subsidiaries (held indirectly)
Cipla (UK) Limited United Kingdom 100% 100% 27/01/11
Cipla Australia Pty Ltd Australia 100% 100% 04/03/11
Medispray Laboratories Private Limited India 100% 100% 01/10/10
Sitec Labs Private Limited India 100% 100% 01/10/10
Meditab Holdings Limited Mauritius 100% 100% 01/10/10

Meditab Specialities New Zealand Limited 1

New Zealand 0% 100% 21/01/11
Cipla İlaç Ticaret Anonim Şirketi Turkey 100% 100% 20/02/12
Cipla USA Inc. USA 100% 100% 12/09/12

Annexure ‘A’ to Note 1: Significant accounting policies
Name of the % Ownership Interest
Name of the Company With effect
As at As at
Company from
31 March, 2018
st
31 March, 2017
st
Cipla Kenya Limited Kenya 100% 100% 08/10/12

Cipla Malaysia Sdn. Bhd. Malaysia 100% 100% 20/03/13
Cipla Europe NV Belgium 100% 100% 30/09/13
Cipla Quality Chemical Industries Limited Uganda 62.30% 62.30% 20/11/13
Cipla Croatia d.o.o.2 Croatia 0% 100% 04/12/13
Galilee Marketing Proprietary Limited South Africa 100% 100% 15/07/13
Inyanga Trading 386 Proprietary Limited South Africa 100% 100% 15/07/13
Xeragen Laboratories Proprietary Limited South Africa 100% 100% 15/07/13
Cipla Medpro Holdings Proprietary Limited South Africa 100% 100% 15/07/13
Cape to Cairo Exports Proprietary Limited South Africa 100% 100%
15/07/13 Cipla Agrimed Proprietary Limited3 South
Africa 0% 100% 15/07/13
Cipla Dibcare Proprietary Limited South Africa 100% 100% 15/07/13
Cipla Life Sciences Proprietary Limited South Africa 100% 100% 15/07/13
Cipla-Medpro Proprietary Limited South Africa 100% 100% 15/07/13
Cipla-Medpro Distribution Centre
Proprietary Limited South Africa 100% 100% 15/07/13
Cipla Medpro Botswana Proprietary Limited South Africa 100% 100% 15/07/13
Cipla Nutrition Proprietary Limited South Africa 100% 100% 15/07/13
Cipla Vet Proprietary Limited4 South Africa 0% 100% 15/07/13
Medpro Pharmaceutica Proprietary Limited South Africa 100% 100% 15/07/13
Med Man Care Proprietary Limited South Africa 100% 100% 15/07/13
Breathe Free Lanka (Pvt) Ltd Sri Lanka 100% 100% 16/06/14
Medica Pharmaceutical Industries
Company Limited Yemen 50.49% 50.49% 02/10/14
Al-Jabal For Drugs and Medical Appliances
Company Limited5 Yemen 0% 50.49% 02/10/14
Cipla Pharma Lanka (Pvt) Ltd Sri Lanka 60% 60% 17/11/14
Cipla Pharma Nigeria Ltd6 Nigeria 0% 100% 06/02/15
Cipla Brasil Importadora e Distribuidora de
Medicamentos Ltda. Brazil 100% 100% 11/05/15
Cipla Maroc SA Morocco 60% 60% 08/05/15
Cipla Middle East Pharmaceuticals FZ-LLC United Arab
Emirates 51% 51% 31/05/15
Quality Chemicals Limited Uganda 51% 51% 06/08/15
Cipla Philippines Inc. Philippines 100% 100% 06/01/16
Invagen Pharmaceuticals Inc. USA 100% 100% 17/02/16
Exelan Pharmaceuticals Inc. USA 100% 100% 17/02/16
Cipla Algérie Algeria 40% 40% 06/06/16
Cipla BioTec South Africa (Pty) Ltd South Africa 100% 100% 10/06/16
Anmarate Proprietary Limited South Africa 100% 0% 12/04/17
Cipla Technologies LLC USA 100% 0% 13/11/17
Associate
Stempeutics Research Private Limited India 48.99% 48.99% 01/10/10
1. Dissolved on 10th July 2.Divested on 19th Jan

3. Divested on 1st Jun 2017.
2017 2018.
4. Divested on 1st Jun 2017.
5. Divested on 26th Mar
2018.
6. Dissolved on 9th Jan
2018
7.In the process of
liquidation
Note 2: Property, plant and equipment
H in Crore
Furniture Office
Freehold Leasehold Leasehold Buildings Plant Vehicles Total
Particulars and equipments
land land Buildings and flats and
fixtures
equipment
Gross block
Balance as at 1st April, 2016 62.87 32.42 73.12 1,960.27 2,776.16 104.24 65.95 10.43 5,085.46
Additions 6.41 0.23 1.02 226.27 763.27 23.68 21.98 4.29 1,047.15
Deletions and adjustments 1.27 3.01 8.26 4.99 68.13 6.52 10.73 0.69 103.60
Foreign currency translations
adjustments (0.18) (0.16) 7.41 (7.37) 4.98 0.64 (0.07) (1.51) 3.74
Balance as at 31st March, 67.83 29.48 73.29 2,174.18 3,476.28 122.04 77.13 12.52 6,032.75
2017
Additions 5.02 0.54 1.31 220.15 684.31 17.08 17.30 2.52 948.23
Deletions and adjustments - - - 5.55 70.23 2.18 1.65 1.13 80.74
adjustments (0.03) (0.15) 9.28 1.00 28.09 3.25 1.54 (0.57) 42.41
Balance as at 31st March, 72.82 29.87 83.88 2,389.78 4,118.45 140.19 94.32 13.34 6,942.65
2018
Depreciation and impairment
1st April, 2016 - 0.30 4.14 57.05 383.07 16.69 18.27 1.09 480.61
Depreciation - 0.35 8.56 65.36 424.77 16.78 20.12 2.53 538.47
Impairment - - - 13.25 45.20 - - - 58.45
Deletions and adjustments - - 5.78 2.33 27.46 5.29 9.78 - 50.64
adjustments - - 2.45 (2.21) (2.67) 0.44 0.10 (0.94) (2.83)
Accumulated balance as at 31 st
March, 2017 - 0.65 9.37 131.12 822.91 28.62 28.71 2.68 1,024.06
Depreciation - 0.61 8.70 74.09 487.41 16.48 18.86 2.52 608.67
Impairment - - - - 10.12 - - - 10.12
Deletions and adjustments - - - 0.35 28.85 1.30 0.86 - 31.36
adjustments - (0.14) 0.71 1.00 11.75 1.77 1.13 (0.41) 15.81
Accumulated balance as at 31 st
March, 2018 - 1.12 18.78 205.86 1,303.34 45.57 47.84 4.79 1,627.30
Net block
As at 31st March, 2018 72.82 28.75 65.10 2,183.92 2,815.11 94.62 46.48 8.55 5,315.35
As at 31st March, 2017 67.83 28.83 63.92 2,043.06 2,653.37 93.42 48.42 9.84 5,008.69
1. The gross value of buildings and flats includes the cost of shares in co-operative housing societies.
2. The above additions to property, plant and equipments during the year includes H 63.37 Crore (previous
year
H 123.34 Crore) used for research and development.
Details of capital work-in-progress

H in Crore
As at As at
Particulars
Opening balance 719.23 741.01
Impairment during the year - (30.33)
Foreign currency translations adjustments 0.87 (3.57)
Note 3: Investment properties Note 4: Goodwill (Contd..)
H in Goodwill acquired in business combination is allocated
Crore
Particulars Amount to the cash generating units (CGUs) that are expected
to benefit from that business combination as follows:
Gross block H in Crore
As As
As at 1st April, 2017 1.80
Less: deduction (0.69)
March, March,
2018 2017
Accumulated depreciation
As at 1st April, 2017 0.06 United States of America 1,567.00 1,569.13
Depreciation for the year 0.02 South Africa 1,011.01 887.06
At 31st March, 2018 0.08 Yemen 111.16 112.42
Net block India 75.46 75.46
At 31st March, 2018 1.03 Uganda 46.50 47.35
At 31st March, 2017 1.74 Others 3.61 5.25
Fair value Total 2,814.74 2,696.67
At 31st March, 2018 8.59
For impairment testing, goodwill is allocated to the CGUs
At 31 March, 2017
st
7.97
which represents the lowest level within the group at
Rental income recognised in statement of profit or which goodwill is monitored for internal
loss for investment property amounting to H 0.09 management purposes, which is not higher than
Crore (previous year H 0.09 Crore) the Group operating segments. The Group goodwill
on consolidation is tested for impairment annually or
Estimation of fair value more frequently if there are indications that goodwill
might be impaired. During the year, the testing did
The fair valuation of the assets is based on the
not result in any impairment in the carrying amount
perception about the macro & micro economics
of goodwill.
factors presently Governing the construction
industry, location of property, existing market The recoverable amount of each CGUs are
conditions, degree of development of infrastructure determined based on value in use calculated using,
in the area , demand supply conditions , internal estimated discounted cash flows.
amenities , common amenities, etc.
The Group prepares its cash flow forecasts based on
This value is based on guidance value notified by the most recent financial budgets approved by
statutory authority. The fair value measurement is management.
categorised in level 2 fair value hierarchy.
Growth rates
Note 4: Goodwill The growth rates are based on industry growth
H in Crore forecasts. Management determines the budgeted
For For the growth rates based on past performance and its
the year expectations of market development. The weighted
ended 31st average growth
March,
Particulars year rates used were consistent with industry reports
2018
ended 31st ranging from 3 % to 25.40 %.
March,
Discount rates
2017
2,696.67
Opening balance Management estimates discount rates that reflect
2,723.81
De-recognised on
disposal of subsidiaries (4.23) (0.26) Foreign currency
translation adjustments 122.30 (26.88) current market assessments of the risks specific to
the
Closing balance 2,814.74 2,696.67
CGU, taking into consideration the time value of
money and individual risks of the underlying assets
that have not been incorporated in the cash flow
estimates. The discount rate calculation is based on
the specific circumstances of the Company and its
operating segments and is derived from its weighted
average cost of capital (WACC) ranging from 11.10%
to 22%.
Note 5: Other intangible assets
H in Crore
Technical Licences
Marketing Trademarks
Particulars Software know-how and Brands Total
intangibles
Patents
Gross block
Balance as at 1st April, 2016 119.46 1,089.12 4.65 207.16 924.85 31.35 2,376.59
Additions 54.16 9.38 - - 160.68 - 224.22
Deletions and adjustments 0.04 - - - - - 0.04
adjustments (0.15) 44.84 - - (21.47) (0.63) 22.59
Balance as at 31st March , 2017 173.43 1,143.34 4.65 207.16 1,064.06 30.72 2,623.36
Business combination 13.15 13.15
Additions 23.77 53.59 3.49 5.27 426.35 - 512.47
Deletions and adjustments - - - 10.74 - - 10.74
adjustments 1.65 109.32 - 29.58 5.92 0.15 146.62
Balance as at 31st March, 198.85 1,306.25 8.14 244.42 1,496.33 30.87 3,284.86
2018
Amortisation and impairment
1st April, 2016 23.48 267.45 0.52 0.58 18.56 8.10 318.69
Amortisation 30.25 118.13 0.93 1.05 180.53 2.10 332.99
Impairment - - - - 194.38 194.38
Deletions and adjustments 0.02 - - - - - 0.02
adjustments 0.03 4.87 - - (12.46) - (7.56)
31st March, 2017 53.74 390.45 1.45 1.63 381.01 10.20 838.48
Amortisation 36.78 100.28 1.79 22.25 177.97 2.07 341.14
Impairment - - - 5.08 261.74 - 266.82
Deletions and adjustments - - - 4.02 3.21 - 7.23
adjustments 1.19 16.98 - 0.53 7.77 0.13 26.60
31st March , 2018 91.71 507.71 3.24 25.47 825.28 12.40 1,465.81
Net block
As at 31st March, 2018 107.14 798.54 4.90 218.95 671.05 18.47 1,819.05
As at 31st March, 2017 119.69 752.89 3.20 205.53 683.05 20.52 1,784.88
Details of intangible assets under development

H in Crore
As at As at
Particulars
Opening balance 963.75 1,319.86
Impairment during the year (96.05) (168.29)
Foreign currency translations adjustments 3.65 (148.87)
Note 6: Investment in associate
H in Crore
As at As at
Particulars
Investments in unquoted Equity Instruments (refer note 45)
2,05,02,525 (31st March, 2017 2,05,02,525) Equity Shares of Stempeutics
Research Private Limited of H 10 each, fully paid including Goodwill of
31st March, 2018 H 5.43 Crore (31st March, 2017 H 5.43 Crore) 9.62 12.40
9.62 12.40
Note 7: Investments
H in Crore
As at As at
Particulars
Other investments
Investments in equity instruments (Unquoted)
Investments at fair value through OCI (fully paid)
16.50% (31st March,2017 16.50%) Equity Interest in Shanghai Desano
Pharmaceuticals Co., Ltd. 147.01 123.22
Investments carried at fair value through Profit and loss (FVTPL)
Equity shares of The Saraswant co-operative bank Ltd of H 10
each, 0.00 0.00
fully paid H 10,000 (31st March,2017 H 10,000)
Investment in government securities carried at cost
National saving certificates H 41,000(31 st March,2017 H 41,000) 0.00 0.00
147.01 123.22
Aggreagate amount of unquoted investments 147.01 123.22
Note 8: Non current asset - loans

H in Crore
As at As at
Particulars
Unsecured, considered goods (carried at amortised cost)
Deposits with body corporates and others
Considered doubtful 0.88 -
Less: allowance for doubtful (0.88) -
Other loans and advances 0.58 2.46
41.66 39.48
Note 9: Other non-current financial assets
H in Crore
As at As at
Particulars
(Carried at amortised cost,except otherwise stated)
Fixed deposits as margin money (remaining maturity more than 12
months)* 12.59 11.64
Capital subsidy receivable 67.32 62.19
Derivatives designated as hedges carried at fair value
Interest rate swap 79.23 19.60
Derivatives not designated as hedges carried at fair value
Forward contracts - 20.34
159.14 113.77
*Amount held as margin money under lien to tax authority and electricity department.
Note 10 : Income taxes

The major components of income tax expense for the years ended March, 2018 and 31st March, 2017 are:
31st
(A) Statement of profit and loss: H in Crore
For the year ended For the year
Particulars
31st March, 2018 ended 31st
March, 2017
Current income tax charge 561.06 479.48
MAT Credit Utilisation / Entitlement 12.00 (181.23)
Adjustments in respect of deferred tax of previous year (107.85) (8.25)
Deferred Tax on account of Temporary Differences (215.10) (110.24)
Income tax expense reported in the statement of profit or loss 250.11 179.76
(B) Other comprehensive income section

H in Crore
Particulars
Income tax relating to re-measurements gain on defined benefit plans (1.79) (3.96)
Income tax relating to changes in fair value of FVTOCI Equity (2.32) -
instrument
Income tax relating to cashflow hedge and interest rate swap (13.50) -
Income tax expense/ (income) charged to OCI (17.61) (3.96)
Note 10 : Income taxes (Contd..)
Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for 31st March, 2018
and 31st March, 2017:
H in Crore
Particulars
Accounting profit before tax 1,669.46 1,222.17
Income tax expense at tax rates applicable to respective tax jurisdiction 529.20 369.28
Effect of prior year adjustments to deferred tax (107.85) (8.25)
Weighted deductions and exemptions (339.08) (349.82)
Non-deductible expenses for tax purposes 122.22 49.78
Deferred tax not recognised (net) 38.94 117.82
Others 1.23 (2.00)
Differential tax impact 5.45 2.95
Income tax expense reported in the statement of profit and loss 250.11 179.76
Effective income tax rate 14.98% 14.71%
There are unused tax losses amounting to H 465.92 Crore as at 31st March, 2018 (31st March, 2017 H 470.27
Crore) for which no deferred tax asset has been recognised as the Company believes that availability of
taxable profit against which such temporary difference can be utilised, is not probable. Deferred income
tax liabilities on undistributed earnings of the Group subsidiaries have not been provided as such earnings
are deemed to be reinvested in the business and the Group is able to control the timing of the reversals of
temporary differences associated with these investments. Accordingly, temporary difference on which
deferred tax liability has not been recognised amounts to H 1,057.90 Crore, (31st March, 2017 H 1,357.10
Crore).
Deferred tax:
Deferred tax relates to the
following:
H in Crore
Balance sheet Profit and loss Other comprehensive
income
As As For the year For the year For the year For the year
at 31st at 31st ended ended ended ended
Particulars
March, March, 31st March, 31st March, 31st March, 31st March,
2018 2017 2018 2017 2018 2017
Property plant and equipment
and intangible assets (1,051.73) (1,350.47) 313.37 174.26 - -
Employee benefit expenses 74.67 72.28 2.67 (18.92) 1.79 3.96
Others 110.04 128.37 14.32 14.56 15.82 -
Provision for doubtful debts 53.44 51.77 4.09 12.67 - -
Deferred revenue 26.09 28.28 (2.20) (2.45) - -
Provision for right of return,sales
return and discount 66.71 51.56 15.15 (3.27) - -
Tax loss carried forward 48.58 60.91 (24.45) (58.36) - -
Mat credit entitlement 356.54 368.54 (12.00) 181.23 - -
Deferred tax expense/(income)
in statement of profit and loss - - 310.95 299.72 17.61 3.96
Deferred tax assets/(liabilities)
(net) (315.66) (588.76) - - - -
Note 10 : Income taxes (Contd..) Note 12: Inventories
Reflected in the balance sheet as follows:
As As As As
Particulars at 31st at 31st Particulars at 31st at 31st
Deferred tax assets 2018
187.65 2017
168.13 2018 2017
(Lower of cost and net realisable value)
Deferred tax liabilities (503.31) (756.89)
Raw materials and

Reconciliation of deferred tax liabilities (net):
H in Crore packing materials 1,708.10 1,374.28
(Includes goods-in-transit H 42.41 Crore (previous
year H 31.41 Crore)
Particulars (Includes goods-in-transit H 19.55 Crore
For For Work in progress 787.73 613.57
the year the year (previous year H 12.88 Crore)
ended 31st ended 31st Finished goods 1,094.82 1,056.50
March, March,
(Includes goods-in-transit H 71.71 Crore (previous
2018 2017
Opening balance 588.76 897.04 year H 142.02 Crore)
Tax income during the Stock-in-trade 413.99 393.53
period recognised in
profit or loss (310.95) (299.72) (Includes goods-in-transit H 91.96 Crore
Tax expense during the (previous year H 54.29 Crore)
period recognised in
Stores, spares and
OCI 17.61 3.96
consumables 40.06 47.40
Assets held for sale(net) - 1.64
Exchange difference 20.24 (14.16) 4,044.70 3,485.28
The Group recorded Inventory write down (net) of H
209.45 Crore (31st March, 2017 H 270.12 Crore). This is
included as part of cost of material consumed and
Note 11: Other non-current assets
changes in inventories of finished goods, work in
H in Crore
progress and stock- in-trade.
As As
March, March, Note 13: Current
2018 2017 investments
H in Crore
(Unsecured, considered good, except otherwise
As As
stated)
Capital advances
March, March,
Secured, considered
2018 2017
good* 0.78 4.69
Unsecured, considered Investments - mutual
good 83.92 191.22 funds (unquoted) 1,102.21 837.39
Deferred lease assets 41.56 43.16 (Carried at fair value
Prepaid expenses 2.37 2.19 through profit and loss)
VAT receivable 50.03 50.19 1,102.21 837.39
Others 2.61 0.75 Aggregate amount of
181.27 292.20 unquoted investments 1,102.21 837.39
* secured against bank guarantees
Note 14: Trade receivables Note 17: Current financial assets-loans
H in H in Crore
Crore
As As
March, March,
As2018 As2017
March, March,
2018
Considered good (Carried at amortised cost, except 2017
(Unsecured, considered good except otherwise
otherwise stated) stated)
Secured 443.34 252.26 (Carried at amortised cost, except otherwise
stated)
Unsecured 2,659.11 2,310.79 Deposits with body
Considered Doubtful corporates and others
Unsecured 158.99 149.42 Considered good 12.76 -
Less: Allowance for Considered doubtful 2.25 2.25
doubtful debts (158.99) (149.42) Less: Allowance for
3,102.45 2,563.05 doubtful (2.25) (2.25)
For ageing analysis of trade receivables, refer to note 43 12.76 -

Loan to employees 7.15 9.53
Note 15: Cash and cash equivalents 19.91 9.53
H in
Crore Note 18: Current financial assets-others
As at
As
Particulars at 31 st
31 March,
st H in Crore
March, 2017 As As at
Balances with banks 2018 at 31st
Particulars 31 March,
st
March,
In current accounts 806.63 597.52 2018 2017
In fixed deposits (Carried at amortised cost, except otherwise stated)
(original maturity less Incentives benefit
than 3 months) 37.05 8.05 receivable from
Remittance in transit 8.84 - government 206.24 216.80
Cash on hand 0.94 4.78 Deposits (refer note 46(B)) 175.08 175.08
Derivatives designated
853.46 610.35 as hedges carried at
fair value
Note 16: Bank balance other than cash and 2018 2017
cash equivalents Bank deposits (original
H in Crore maturity between 3
As As months and 12 months) 102.07 3.78
Particulars at 31 st
at 31 st Balances earmarked for
March, March, unclaimed dividend* 10.08 10.08
112.15 13.86
* The above balances are restricted for specific use. There are no Interest rate swap - 28.22
amounts due and outstanding to be credited to the Investor Education
and Protection Fund as at 31st March, 2018 and 31st March, 2017. Derivatives not
designated as hedges
carried at fair value
Forward contracts 32.65 -
Fixed deposit (having
remaining maturity less
than 12 Month)# 3.52 -
Other receivables
Considered doubtful 3.93 0.46
Less: Allowance for
doubtful advances (3.93) (0.46)
574.82 542.10
# Amount held as margin money to Government authority.

Note 19: Other current assets Note 20: Assets and liabilities classified as
H in Crore held for sale (Contd..)
H in Crore
As As
Particulars at 31st at 31st As As
March, March, Particulars at 31 st at 31st
Advance to 2018
189.19 2017
95.63 March, March,
suppliers 2018 2017
Prepaid expenses 78.93 44.77 Current assets:
Balances with statutory/ Inventories - 34.44
Revenue authorities Trade receivables - 19.12
like goods and service Cash and cash equivalents - 14.06
tax(GST),excise, Total asset held for - 85.91
customs, service tax and sale
value added tax, etc. 735.16 527.23 Non-current liabilities:
Others 1.12 6.38 Deferred tax liabilities
1,004.40 674.01 (net) - 1.64
Other non-current
liabilities - 0.00
Note 20: Assets and liabilities classified as Current liabilities:
Trade payables - 15.16
held for sale
H in Crore Other current liabilities - 0.00
Current tax liabilities - 0.05
As As
(net)
Particulars at 31st at 31st Total liabilities held for
March, March, Assets held for sale (net) - 69.06
2018 2017
Non-current assets: On 4 March, 2017, A definitive agreement was entered into
th
between Inyanga Trading 386 Proprietary Limited (“Inyanga”)

Property, plant and and Ascendis Health Limited on 4th March, 2017 whereby Inyanga
equipment - 0.45 disposed of its 100% shareholding in Cipla Agrimed Proprietary
Other intangible - 17.47 Limited and Cipla Vet Proprietary Limited (refer note 47)
assets Current tax - 0.37

assets (net)
Note 21: Share capital

H in Crore
As at As
Particulars Numbers Numbers at st
31st March, 2018 31 March,
2017
Authorised
175.00 175.00
Issued *
161.02 161.10
Subscribed and Paid-up
Equity shares of H 2/- each, fully paid up 80,51,19,164 161.02 80,45,10,074 160.90
161.02 160.90

*The Board of Directors of the Company at its meeting held on 7th February 2018, approved cancellation of the unsubscribed portion of
the issued capital of the Company representing 10,03,395 equity shares of H 2/- each aggregating to H 0.20 Crore, effective from 8th
February 2018.

Note 21: Share capital (Contd..)
Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting
period
As at As at
Particulars
No. of shares outstanding at the beginning of the period 80,45,10,074 80,33,84,282
Add: Allotment of equity shares on exercise of employee stock options 6,09,090 11,25,792
No. of shares outstanding at the end of the period 80,51,19,164 80,45,10,074
Details of shareholders holding more than 5 percent shares in the

Company

Particulars
Number of shares % of Holdings Number of shares % of Holdings
Dr. Y. K. Hamied 16,67,42,687 20.71% 16,67,42,687 20.73%
Ms. Sophie Ahmed 4,59,82,000 5.71% 4,59,82,000 5.72%
ICICI Prudential Mutual Fund 3,11,49,240 3.87% 4,11,90,092 5.12%
Life Insurance Corporation of India 2,61,22,794 3.24% 4,53,25,137 5.63%
Terms and rights attached to equity shares
The Company has only one class of equity shares having a par value of H 2 per share. Each holder of
equity share is entitled to one vote per share. The Company declares and pays dividends in Indian
Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting.In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.
Equity shares reserved for issue under employee stock options
Refer to note 49 for number of stock options against which equity shares to be issued by the Company
upon vesting and exercise of those stock options by the option holders as per the relevant schemes.
Note 22: Other equity

H in Crore
As at As at
Particulars
Retained earnings 8,998.78 7,774.11
Capital reserve 24.01 (44.87)
Securities premium reserve 1,542.15 1,505.24
General reserve 3,141.73 3,141.60
Employee stock options reserve 66.26 62.02
Foreign currency translation reserve 208.98 (105.60)
Fair value through other comprehensive income (net of tax) 20.85 -
Hedge reserve (net of tax) 65.41 50.26
Total 14,068.17 12,382.76
Share application money pending allotment
Nil as at 31st March, 2018 (as at 31st March, 2017 is H 11,172)
Note 22: Other equity (Contd..) Note 23: Non controlling interest
1. Nature and Purpose of Reserve:- Financial information of subsidiaries that have material
Capital reserve non-controlling Interests is provided below:
A. Proportion of equity interest held by non-controlling
Capital reserve represents gain arising from interests:
business combination and loss on account of
acquisition of non controlling interest. As As
Name of the Company at 31st at 31st
Securities premium account March, March,
2018 2017
Securities premium reserve is used to record the
premium on issue of shares. These reserve is utilised Jay Precision
in accordance with the provisions of the Act. Pharmaceuticals Private
Limited 40.00% 40.00%
General reserve Cipla Quality Chemical
Saba Investment Limited 49.00% 49.00%
Industries Limited 37.70% 37.70%
The General reserve is used from time to time to transfer Quality Chemicals
profit from retained earning for appropriation purpose. Limited 49.00% 49.00%
Cipla Health Ltd. 26.11% 26.11%

Employee stock options reserve
Companies has established various equity settled B.Information regarding non-controlling interest
share based payments plan for certain categories of H in Crore
employee of the Company.
As As
Foreign currency translation reserve Particulars at 31st at 31st
March, March,
Foreign Currency Translation Reserve represents the 2018 2017
unrealised gains and losses on account of translation of
Accumulated balances
foreign subsidiaries into the presentation currency. of material non-
Hedge reserve controlling interest:
Jay Precision
The hedging reserve represents the cumulative Pharmaceuticals Pvt. Ltd. 49.77 41.12
effective portion of gain or loss arising on changes Cipla Quality Chemical
in fair value of designated portion of hedging Industries Limited 135.17 112.92
instruments. Saba Investment Limited 136.91 167.79
Quality Chemicals
Fair value through other comprehensive income
Limited ............5.73 5.35
This reserve represents the cumulative gains and Cipla Health Ltd.....................20.37 33.69
losses arising on the revaluation of equity instrument Others .............4.49 (10.14)
measured at fair value through other Preferred stock
comprehensive income. The Company transfers Issued during the
amounts from this reserve to retained earnings year in Cipla
when the relevant equity instruments are Health Ltd. - 87.50
derecognised/disposed off.
Total 352.44 438.23
Note 23: Non controlling interest (Contd..)
H in Crore
Particulars
Profit/(loss) allocated to material non-controlling interest:
Jay Precision Pharmaceuticals Private Limited 8.65 9.94
Cipla Quality Chemical Industries Limited 12.53 11.78
Saba Investment Limited (1.76) 15.50
Quality Chemicals Limited Name of the Subsidiary 0.90 4.54
Cipla Health Ltd. Jay Precision Cipla Quality Saba (13.46) Quality (7.91)
Cipla
Particulars
Others Pharmaceuticals Chemical Investment (0.82)Chemicals Health (4.82)
Ltd.
Total Private Limited Industries Limited Limited 6.04 Limited 29.03
Revenue from operations 94.57 405.11 329.43 29.02 119.84
Profit for the year 21.62 33.22 (3.59) 1.84 (51.56)
Summarised statement of profit and loss for the year ended 31 st March, 2018
Other comprehensive
income - 69.73 23.61 (1.07) H in(3.63)
Crore
Total comprehensive
income 21.62 102.95 20.02 0.77 (55.19)
Profit attributable to non-
controlling interests 8.65 12.53 (1.76) 0.90 (13.46)
Dividends paid to non-
controlling interests - (7.37) - - -
Summarised statement of profit and loss for the year ended 31 st March, 2017
H in Crore
Name of the Subsidiary
Jay Precision Cipla Quality Saba Quality Cipla
Particulars
Pharmaceuticals Chemical Investment Chemicals Health Ltd.
Private Limited Industries Limited Limited Limited
Revenue from operations 90.05 410.55 234.19 30.36 99.94
Profit for the year 24.85 31.25 31.64 9.27 (30.29)
Other comprehensive
income (0.01) (76.23) (27.84) 18.62 0.04
Total comprehensive
income 24.84 (44.98) 3.80 27.89 (30.25)
Profit attributable to non-
controlling interests 9.94 11.78 15.50 4.54 (7.91)
Dividends paid to non-
controlling interests - (17.02) (5.33) (11.70) -

Note 23: Non Controlling Interest (Contd..)
Summarised balance sheet as at 31 st March, 2018
H in Crore
Particulars
Non-current assets 94.32 158.70 177.07 9.47 48.97
Non-current liabilities 9.94 17.34 - 0.87 1.39
Net non-current assets 84.38 141.36 177.07 8.60 47.58
Current assets 46.31 275.01 443.69 19.69 88.75
Current liabilities 6.27 57.84 341.35 16.60 58.32
Net current assets 40.04 217.17 102.34 3.09 30.43
Total equity 124.42 358.53 279.41 11.69 78.01
Attributable to:
Equity holders of parent 74.65 223.36 142.50 5.96 57.64
Non-controlling interest 49.77 135.17 136.91 5.73 20.37
Summarised balance sheet as at 31 st March, 2017

H in Crore
Name of theSubsidiary
Particulars
Non-current assets 94.99 110.33 217.41 8.87 32.79
Non-current liabilities 6.30 - - - 0.74
Net non-current assets 88.69 110.33 217.41 8.87 32.05
Current assets 17.37 234.91 218.99 16.20 140.36
Current liabilities 3.27 45.71 93.98 14.15 43.36
Net current assets 14.10 189.20 125.01 2.05 97.00
Total equity 102.79 299.53 342.42 10.92 129.05
Attributable to:
Equity holders of parent 61.67 186.61 174.63 5.57 95.36
Non-controlling interest 41.12 112.92 167.79 5.35 33.69
Summarised cash flow information as at 31 st March 2018

H in Crore
Particulars
Operating activities 26.44 81.50 142.65 (0.05) (69.34)
Investing activities (3.81) (67.54) (107.36) (0.01) 70.78
Financing activities (5.84) (1.92) (109.51) (0.01) -
Net increase/ (decrease) in
cash and cash equivalents 16.79 12.04 (74.22) (0.07) 1.44
264 Annual Report 2017-18


Note 23: Non controlling interest (Contd..)
Summarised Cash Flow Information as at 31st March 2017
H in Crore
Particulars Jay Precision Cipla Quality Saba Quality Cipla

Operating activities 37.76 69.77 59.17 2.99 (30.20)
Investing activities (1.43) (13.15) 4.11 (0.01) (98.07)
Financing activities (36.70) (45.15) (51.65) (8.45) 128.46
Net increase/ (decrease)
in (0.37) 11.47 11.63 (5.47) 0.19
cash and cash equivalents
Note 24: Financial liabilities - borrowings
H in Crore
As at As at
Particulars
(a) Non current (note 43)
(Carried at amortised cost, except otherwise stated)
Unsecured loans:
Term loan from Banks (note 1) 3,662.11 3,642.79
Other Loans (note 2) - 2.50
Deferred sales tax loan (note 3) - 0.07
3,662.11 3,645.36
(b) Current (note 43)
(Carried at amortised cost, except otherwise stated)
Loans repayable on demand
Unsecured loans:
Packing credit from bank 142.54 324.25
Buyers credit 31.89 -
Bank overdraft 1.39 0.01
Others borrowings 260.05 142.97
435.87 467.23
1. Includes loans of H 3,597.29 Crore (31st March, 2017 H 3,563.25 Crore) taken by the Company’s wholly
owned subsidiaries in connection with acquisition of two US based companies, InvaGen Pharmaceuticals Inc.
and Exelan Pharmaceuticals Inc. These loans carry interest at LIBOR + 0.96% p.a. and the guarantee given
by Cipla Ltd to the bankers for repayment of principal and interest on this loan.
2. Loan of a subsidiary Company located in India amounting to H Nil as on 31st March, 2018 (31st March, 2017
H 2.50 Crore) .
3. Sales tax deferral loan is interest free and repayable by 2018-19 and shown under current maturities of
long term borrowings as per repayment schedule.

Note 25: Other financial liabilities Note 27: Other non current liabilities
H in H in Crore
Crore
As As As As
Particulars at 31st at 31st Particulars at 31st at 31st
2018 2017 2018 2017
(Carried at amortised cost, Deferred government
except as otherwise stated) grant 15.53 14.05
Security deposits 50.11 45.06 Deferred revenue 67.59 74.66
50.11 45.06 Others 10.13 4.94
(Carried at amortised cost,
Note 26: Provisions except otherwise stated)
H in Due to micro and
Crore small enterprises 18.38 36.91
As at As Others 2,100.74 1,534.23
Particulars 31st March, at 31st 2,119.12 1,571.14
2018 March,
2017
Non-current
Provision for employee
benefits (refer note 137.92 140.52
48)
137.92 140.52
Current
Provision for employee
benefits (refer note 192.73 122.22
48)
Provision for right of
return/discounts and
others 340.43 265.31
Provision for litigation
Movement of Provisions
H in Crore
As As
March, March,
2018 2017
Note 28: Trade payables
Particulars
There are no Micro interest Enterprises. This information as required to be
and Small payment disclosed under the Micro, Small and Medium
Enterprises, to made Enterprises Deveolpment Act, 2006, has been
whom the Company during determined to the extent such parties have been
owes dues, which the year identified on the basis of information available with
are outstanding for to any the Company.
more than 45 days Micro
as at 31st March, and Note 29: Other current financial liabilities
2018, and no Small H in Crore
Provision for right of return/discounts and other
As As
sales related accruals
Balances at the
March, March,
beginning of the year 265.31 177.89
2018 2017
Arising during the year 199.25 192.71
Utilised during the year (124.13) (105.29) (Carried at amortised cost, except otherwise stated)
Balances at the close Current maturities of
of the year 340.43 265.31 Non-Current debt;
Provision for litigation-DPCO Deferred sales tax
Balances at the loans 0.07 0.07
beginning of the year.............14.84 13.26 Unclaimed dividends* 10.08 10.08
Arising during the year.............79.11 1.58 Security deposits 1.42 1.82
Utilised during the year - Capital creditors 80.92 170.66
Balances at the close of the year Employee dues 110.77 112.92
93.95 14.84 Derivative designated
as hedge 2.00 -
Note 29: Other current financial liabilities Note 32: Other operating income (contd..)
H in Crore
H in Crore
As As
For the For the
March, March, Particulars
2018 2017
2018 2017
Derivative not
Scrap Sales 30.90 28.13
designated as hedge 9.21 -
Other payable 205.72 Sale of ANDA and other
347.04 product license 91.42 -
420.19 642.59
* There are no amount due and outstanding to be credited to Others 43.46 34.64
Investor Education & Protection Fund. 468.39 349.38
Note 30: Other current liabilities Note 33: Other income

H in Crore H in
As As at Crore
Particulars at 31st 31st March, For the For the
March, 2017 year ended year ended
Particulars
2018 31st March, 31st March,
Advances from 2018 2017
customers 84.60 51.66
Othe r payabl es: Interest income
Statutory dues 119.12 80.19 Bank deposit 20.50 2.94
Deferred government Others 9.14 9.54
grant 2.20 2.50 Government grants $ 3.88 2.46
Deferred revenue 7.07 7.07 Dividend income 3.54 -
Others 13.86 124.94 Net gain on disposal
226.85 266.36 of property, plant
and equipments and
Intangible assets 24.66 -
Note 31: Revenue from sale of products Insurance claim 4.56 5.33
H in Crore Rent income 5.97 7.19
For the For the Sundry balances written
year ended year ended back 4.77 5.85
Particulars Net gain on foreign
2018 2017 currency transaction
and translation 18.69 -
Sale of products [Refer
Current investments -
note 54(i)] 14,750.86 14,280.86
carried at FVTPL 72.96 54.63
14,750.86 14,280.86
Non-current
investments* 76.53 123.25
Fair value gain on
Note 32: Other operating income
financial instruments at
H in Crore fair value through profit
For the For the or loss 2.32 9.47
year ended year ended Miscellaneous income 110.13 8.03
Particulars 357.65 228.69
2018 2017 $ Government grants pertain to subsidy of property, plant and
Rendering of services 103.43 70.11 equipment of manufacturing set up. There are no unfulfilled conditions
Export incentives 144.68 164.48
Technical Know-how or contingencies attached to these grants.
and licensing fees 54.50 52.02 * Current year includes profit on Veterinary business sale at
South Africa of H 112.90 Crore( previous year includes H 119.80
Crore profit on sale of investment in Chase Pharmaceutical
Corporations, USA)
Note 34: cost of materials consumed Note 37: employee benefits expenses
H in Crore
(contd..)
For the For the H in Crore
Particulars For the For the
2018 2017 Particulars
Cost of materials 2018 2017
consumed 4,497.16 4,272.66
Employee stock option
scheme (refer note 49) 41.28 16.86
2,690.10 2,633.82
Note 35: Purchase of stock in trade Staff welfare expenses 118.55 84.05
H in Crore
For the For the
year ended year ended Note 38: Finance costs
Particulars
31st March, 31st March, H in
2018 2017 Crore
Purchase of stock in For the For the
trade 1,174.20 933.50 year ended year ended
Particulars
2018 2017
Note 36: Changes in inventories of Interest expense 109.24 156.53
finished goods, work-in-progress and Other borrowing cost 4.99 2.85
stock-in-trade 114.23 159.38
H in Crore
For the For the Note 39: Depreciation, impairment and
Particulars
year ended year ended amortisation expense
31st March, 31st March, H in Crore
Opening stock 2018 2017
For the For the
Work-in-progress 613.57 848.64 year ended year ended
Particulars
Finished goods 1,056.50 574.77 31st March, 31st March,
Stock-in-trade 393.53 751.15 2018 2017
Less: Closi n g stoc k Depreciation on
Work-in-progress 787.73 613.57 property, plant and
Finished goods 1,094.82 1,056.50 equipment (refer note 2) 608.67 538.47
Stock-in-trade 413.99 393.53 Depreciation on
(232.94) 110.96 investment properties
(refer note 3) 0.02 0.02
Note 37: Employee benefits expenses Amortisation of

H in Crore intangible assets (refer
note 5) 341.14 332.99
For the For the
Impairment of
Particulars intangible/ property,
plant and equipment
2018 2017
(refer note 2 and note 5) 372.99 451.45
Salaries and wages 2,399.96 2,392.83 1,322.82 1,322.93
Contribution to
1. The Group has decided to reposition the
provident and other
Biotechnology business to explore new business
funds (refer note 48) 130.31 140.08
development opportunities including in-licensing
to derisk future investments in the segment
without solely relying on in-house Note 40: Other expenses
development. Accordingly, the value in use of (Contd..) H in Crore
certain assets in Cipla Biotec Pvt Ltd was For the For the
reassessed and an impairment charge of H year ended year ended
Particulars
10.12 Crore has been recognised during the 31st March, 31st March,
year ended 31st March 2018 (31st March 2017 H 2018 2017
56.89 Crore).
2. Due to the uncertain regulatory developments and Contractual services 194.00 198.84
litigations for certain intangible assets on the Postage and telephone
existing and IP R&D portfolio relating to US generics expenses ..........41.63 37.90
business, the Group recorded an impairment Travelling and
charge of H 357.77 Crore during the year ended conveyance ..........311.89 280.80
31st March 2018 (31st March 2017 H 348.65 Crore). Allowances and Bad
Refer note 5 for details relating to assumptions Debts written off (net) ...........33.21 52.17
used in determination of value in use. Loss on foreign exchange
fluctuation (net) ---------------- 30.95
Non executive directors'
Note 40: Other expenses
remuneration 9.22 7.00
H in Crore
Legal and professional
For the For the fees ........450.45 352.05
year ended year ended Donations @................................................................11.10 0.35
Particulars
31st March, 31st March, Payment to auditors
2018 2017 Audit fees .............2.01 2.31
Manufacturing expenses 472.86 446.25 Taxation matters 0.09 0.06
Stores and spares 142.96 127.89 For other services ...........0.49 0.74
Repairs and Net loss on disposal
maintenance of property, plant and
equipment ---------------- 20.52
Plant and equipment 104.17 97.26 CSR expenditure (refer
Buildings 38.03 42.26 note 52 ) 34.54 29.53
Insurance 31.34 37.41 Research - clinical trials,
Rent 117.20 113.93 samples & grants 268.65 280.27
Sales promotion Excise duty (refer note
expenses 607.43 553.02 54 (i) 63.54 235.95
Commission on sales 253.52 242.63 Miscellaneous expenses 517.14 512.02
Freight and forwarding 221.95 213.56 4,264.35 4,203.51
Rates and taxes .............38.11 36.11 @
includes H 9 Crore (previous year H nil) towords
Power and fuel .........298.82 251.73 politcal contribution.
Note 41 : Other comprehensive income

H in Crore
Particular
A. (1) Items that will not be reclassified to Profit or Loss
(i) Re-measurements of post-employment benefit obligation 5.24 11.42
(ii) Changes in fair value of FVTOCI equity instruments 23.17 -
28.41 11.42

Note 41 : Other comprehensive income
H in Crore
Particular
(2) Income tax relating to Items that will not be
reclassified to Profit or Loss
(i)Income tax relating to re-measurements of post-employment
benefit obligation (1.79) (3.96)
(ii) Income tax relating to changes in fair value of FVTOCI equity
instruments (2.32) -
(4.11) (3.96)
24.30 7.46
B. (1) Items that will be reclassified to Profit or Loss
(i) Exchange difference on translation of foreign operations 175.85 288.06
(ii) Net investment hedge loss 178.23 (214.43)
(iii) Cash flow hedge (refer note 43) 28.65 50.26
382.73 123.89
(2)Income tax relating to Items that will be reclassified to
Profit or -
Loss
(i) Income tax relating to cash flow hedge and interest rate (13.50) -
swap
(13.50) -
369.23 123.89
393.53 131.35
Note 42 : Earnings per share (EPS)

Particular
Profit after tax as per Statement of Profit or Loss (H in Crores) 1,410.53 1,006.39
Basic Weighted average number of Equity shares outstanding 80,47,65,162 80,39,79,037
Basic earning per share (H ) 17.53 12.52
Dilutive impact of employee stock options 13,16,409 13,38,647
Weighted average number of equity shares adjusted for the effect of
dilution 80,60,81,571 80,53,17,684
Diluted earning per share (H ) 17.50 12.50
Note 43: The following methods and assumptions were

used to estimate the fair values:
A. Fair value measurement
The carrying amount of trade receivable, trade
The fair value of financial assets and liabilities payable, capital creditors, loans and cash and
are included at the amount at which the cash equivalents as at 31st March 2018 and 31 st
instrument could be exchanged in a current March 2017 are considered to be the same as
transaction between willing parties, other than their fair values, due to their short term nature.
in a forced or liquidation sale. Difference between carrying amounts and fair

values of other financial

Note 43 (Contd..)
assets, other financial liabilities and short obtained via pricing services, but where prices
term borrowings subsequently measured at have not been determined in an active market,
amortised cost is not significant in each of the financial assets with fair values based on broker
year presented and same are classified as quotes and assets that are valued using the
Level 3. Company’s own valuation models whereby the
Financial Instruments with fixed and variable material assumptions are market observable.
interest rates are evaluated by the Company The majority of Company’s over-the-counter
based on parameters such as interest rate and derivatives and several other instruments not
individual credit worthiness of the counterparty. traded in active markets fall within this category.
Based on this evaluation, allowances are taken to Level 3 - category includes financial assets
account for the expected losses of these and liabilities measured using valuation
receivables. techniques based on non market observable
Fair value hierarchy inputs. This means that fair values are
determined in whole or in part using a valuation
Level 1 - category includes financial assets and model based on assumptions that are neither
liabilities, that are measured in whole or in supported by prices from observable current
significant part be reference to published quotes in market transactions in the same instrument nor
an active market. are they based on available market data.
However, the fair value measurement objective
Level 2 - category includes financial assets and remains the same, that is, to estimate an exit
liabilities measured using a valuation technique price from the perspective of the Company.
based on assumptions that are supported by The main asset classes in this category are
prices from observable current market unlisted equity investments as well as unlisted
transactions. These include assets and liabilities funds.
for which pricing is
The carrying value and fair value of financial instruments by categories as of 31st March, 2018 were as follows:
H in Crore
Carrying
Particulars Fair Value

Financial assets
Investment (refer note 7)* 0.00-------------------------------- 0.00
Financial assets at fair value through Profit and Loss:
Investments in mutual funds (refer note 13) 1,102.21 - 1,102.21 -
Investments in Equity instrument (refer note 7) 147.01-------------------------------------- 147.01
Derivatives designated as hedges
Interest rate swap used for hedging (refer note 9) 79.23 - 79.23 -
Derivatives not designated as hedges
Other forward contracts refer (note 18) 32.65 - 32.65 -
Financial liabilities
Financial liabilities at amortised cost:
Borrowings (refer note 24) 4,098.05 ---------------------------------- 4,098.05
Financial assets at fair value through Profit and Loss:
Derivatives not designated as hedges (refer note 29) 9.21 - 9.21 -
Derivatives designated as hedges (refer note 29) 2.00 - 2.00 -
Note 43 (Contd..)
The carrying value and fair value of financial instruments by categories as of 31 st March, 2017 were as follows:
H in Crore
Carrying Fair Value
Particulars
Financial assets
Investment (refer note 7)* 0.00 - - 0.00
Profit and Loss:
Investments in mutual funds (refer note 13) 837.39 - 837.39 -
Investments in Equity instrument(refer
note 7)* 123.22 - - 123.22
Derivatives designated as hedges
Interest rate swap used for hedging (refer
note 9 and note 18) 47.82 - 47.82 -
Derivatives not designated as hedges
Other forward contracts (refer note 9) 20.34 - 20.34 -
Financial liabilities
Financial liabilities at amortised cost:
Borrowings (refer note 24) 4,112.66 - - 4,112.66
* includes less than one lakh
on the business objectives

B. Financial risk management objectives and
policies
The Group activities expose it to a variety of

financial risks: market risk, credit risk and
liquidity risk. The Group primary focus is to
foresee the unpredictability of financial
markets and seek to minimise potential
adverse effects on its financial performance.
The Group financial liabilities comprise of

borrowings, trade payable and other liabilities
to manage its operation and financial assets
includes trade receivables and other receivables,
etc. arises from its operation.
The Group has constituted a Risk Management

Committee consisting of majority of directors
and senior managerial personnel. The Group
has a robust Business Risk Management
framework to identify, evaluate business risks
and opportunities. This framework seeks to
create transparency, minimise adverse impact
and enhance Group competitive advantage.
The business risk framework defines the risk
management approach across the enterprise at
various levels including documentation and
reporting. The framework has different risk
models which help in identifying risks trend,
exposure and potential impact analysis at a
Company level as also separately for business
segments.
The Group has instituted a self governed Risk

Management framework based on identification
of potential risk areas, evaluation of risk intensity,
and clear- cut risk mitigation policies, plans
and procedures both at the enterprise and
operating levels. The framework seeks to
facilitate a common organisational
understanding of the exposure to various risks
and uncertainties at an early stage, followed by
timely and effective mitigation. The Audit
Committee of the Board reviews the risk
management framework at periodic intervals.
Our risk management procedures ensure that
the management controls various business
related risks through means of a properly
defined framework.

Note 43 (Contd..)
i. Market risk has changed substantially in recent years
and may fluctuate substantially in the
The Group operates internationally and a
future. Consequently, the results of the
major portion of the business is transacted
Company’s operations are adversely
in several currencies and consequently the
Group is exposed to foreign exchange risk affected as the Rupee appreciates/
to the extent that there is mismatch between depreciates against US dollar (USD), South
the currencies in which its sales and African Rand (ZAR), Euro (EUR), Chinese
services and purchases from overseas Yuan (CNY).
suppliers in various foreign currencies.
Market Risk is the risk that changes in market (a) Derivative financial instruments
prices such as foreign exchange rates will
The Group holds derivative financial
effect Group income or value of its holding
instruments such as foreign currency
financial assets/ instruments. The Group also
holds derivative financial instruments such forward contracts to mitigate the risk of
as foreign exchange forward contracts to changes in exchange rates on foreign
mitigate the risk of changes in exchange currency exposures. The counterparty
rates on foreign currency exposures. The for the second tracts is generally a bank
exchange rate between the Rupee and or a financial institution.
foreign currencies
H in Crore
Cross As at As at
Nature of Instrument Currency
currency 31st March, 2018 31st March, 2017
Forward contracts - Sold USD H 1527.34 428.01
Forward contracts - Sold ZAR H 451.78 221.93
Forward contracts - Sold EUR H 23.03 38.11
Forward contracts - Bought USD H 31.89 -
Forward contracts - Bought USD ZAR 133.04 60.89
Forward contracts - Bought EUR ZAR 17.44 11.84
Forward contracts - Bought CNY ZAR 5.90 17.38
Unhedged foreign exchange
exposures:
- Receivables 938.25 1,132.80
- Payables 758.74 695.47
- Current borrowings 244.61 428.49
Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest
costs.
(b) Foreign currency risk from financial instruments

H in Crore
31st March, 2018
Particulars Other
U.S. Dollars Euro GBP Total
Currency
Trade and other receivables 740.30 99.45 31.63 66.87 938.25
Trade and payables (470.04) (184.29) (97.21) (7.20) (758.74)
Borrowings (244.61) - - - (244.61)
Net assets / (liabilities) 25.65 (84.84) (65.58) 59.67 (65.10)


Note 43 (Contd..)
H in Crore
31 March, 2017
st
Particulars Other
U.S. Dollars Euro GBP Total
Currency
Trade and other receivables 924.98 206.41 - 1.41 1,132.80
Trade and other payables (309.26) (331.21) (5.02) (49.98) (695.47)
Borrowings (428.49) - - - (428.49)
Net assets / (liabilities) 187.23 (124.80) (5.02) (48.57) 8.84
(c) Sensitivity analysis

of the borrowing to H at the end of the
A reasonably possible change in foreign reporting period is recognised in other
exchange rates by 2% would have increased/ comprehensive income and accumulated in the
(decreased) equity and profit or loss by the
foreign currency translation reserve, in
amounts shown below. This analysis assumes
that all other variables in particular interest Shareholders equity. There is no ineffectiveness
rates remain constant. during the year ended 31st March, 2018.
For the For the (e) Interest rate risk

Particulars The Group main interest rate risk arises from
2018 2017 long- term borrowings with variable rates, which
Movement in exchange rate expose the group to cash flow interest rate
USD - H 2% 2% risk. Group policy is to maintain most of its
Euro - H 2% 2% borrowings at fixed rate using interest rate
GBP - H 2% 2% swaps to achieve this when necessary. During
Impact on profit/
31st March 2018 and 31st March, 2017, the Group
loss
USD - H 0.51 3.74 borrowings at variable rate were mainly
Euro - H (1.70) (2.50) denominated in USD.
GBP - H (1.31) (0.10)
Exposure to interest rate risk
(d ) Net investment hedge
The exposure of the Group borrowings to interest
In 2017, the Group has entered into a bank
rate changes at the end of the reporting period are
loan amounting to H 1,326.48 Crore. This
loan, which was taken to invest in InvaGen as follows:.
Pharmaceuticals Inc, United States subsidiary,
has been designated as a hedge of the net H in Crore
investment in this subsidiary. The fair value As As
and carrying amount of the borrowing at 31st Particulars at 31st at 31st
March 2018 is H 1,446.35 Crore (31st March,2017 H March, March,
1,423.20 Crore). The foreign exchange gain of H 2018 2017
178.23 Crore (31st March, 2017 loss H 214.43 Variable Rate Instruments
Crore) on translation Financial liabilities 4,097.98 4,112.59

Note 43 (Contd..)
As at the end of the reporting period, the group had the following variable rate borrowings and interest rate
swap contract outstanding:
H in Crore
As at 31st March,2018 As at 31st March,2017
Particulars Weighted Weighted Balance %of total

%of total
average Balance average loans
loans
interest cost interest cost
Bank overdraft and
bank loans 2.77% 4,097.98 100% 2.73% 4,112.59 100%
Interest rate swap
(notional principal
amount) 2.62% 1,792.31 2.16% 1,394.28
Net exposure to cash
flow interest rate risk 2,305.67 2,718.31
Cash flow sensitivity analysis for variable-rate

ii. Credit risk
instruments
Credit risk refers to the risk of default on its
A reasonably possible change of 50 basis points obligation by the customer/ counter party
in interest rates at the reporting date would have resulting in a financial loss. The maximum
increased (decreased) equity and profit or loss by exposure to the credit risk at the reporting
the amounts shown below. This analysis assumes date is carrying value of respective financial
that all other variables, in particular foreign currency assets.
exchange rates, remain constant.
Trade receivables and unbilled revenue are
H in typically unsecured and are derived from
Crore revenue earned from customers. Credit risk
For the For the has always been managed by each business
year ended year ended segment through credit approvals, establishing
Particulars
31st March, 31st March, credit limits and continuously monitoring the
2018 2017 credit worthiness of customers to which the
Impact on profit/ loss Group grants credit terms in the normal course
of business. On account of adoption of Ind AS
109, the Group uses expected credit loss
Increase (11.53) (13.59)
model to assess the impairment loss or gain.
Decrease 11.53 13.59
The group uses a provision matrix to compute
the expected credit loss allowance for trade
The risk estimates provided assume a parallel shift
receivables and unbilled revenues. The
of 50 basis points interest rate across all yield curves. provision matrix takes into account available
This calculation also assumes that the change external and internal credit risk factors such as
occurs at the balance sheet date and has been default risk of industry, credit default swap
quotes, credit ratings from international credit
calculated based on risk exposures outstanding as
rating agencies and historical experience for
at that date. The period end balances are not customers
necessarily representative of the average debt
outstanding during the period. Credit risk on cash and cash equivalents is
limited as we generally invest in deposits with
banks and
Note 43 (Contd..)
financial institutions with high credit ratings assigned by international and domestic credit rating
agencies. Investments primarily include investment in liquid mutual fund units, quoted bonds issued by
government and quasi government organisations and certificates of deposit which are funds deposited
at a bank for a specified time period.
The Company measures the expected credit loss of trade receivables and loan from individual customers
based on historical trend, industry practices and the business environment in which the entity
operates. Loss rates are based on actual credit loss experience and past trends. Based on the
historical data, loss on collection of receivable is not material hence no additional provision
considered.
The ageing analysis of the receivable (gross of provision) has been considered from the date the invoice falls due:
H in Crore
Neither past Past due but not impaired Total
Particulars due nor 0-180 180-365 Above 365
impaired days days days
As at 31st March, 2018 1,326.80 1,482.28 100.12 352.24 3,261.44
As at 31st March, 2017 1,319.81 1,046.12 110.97 235.57 2,712.47
Movement of allownances
H in Crore
Loans Loans Other financial Trade Total
Particulars
(current) (non-current) assets receivables
As at 1st April, 2016 2.25 - 0.46 128.86 131.57
Provided during the year - - - 70.23 70.23
As at 31st March, 2017 2.25 - 0.46 149.42 152.13
Provided during the year - 0.88 3.47 99.92 104.27
As at 31st March, 2018 2.25 0.88 3.93 158.99 166.05
iii. Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company believes that the working capital is sufficient to meet its current
requirements. Accordingly, no liquidity risk is perceived. The Group closely monitors its liquidity
position and maintains adequate source of funding.
Note 43 (Contd..)
The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 st
March, 2018:
H in Crore
Less than 1 1-2 years 2-5 years Above 5 years Total
Particulars
year
Borrowings 435.94 814.79 2,847.32 - 4,098.05
Trade payables 2,119.12 - - - 2,119.12
Other financial
liabilities 420.19 - - 50.11 470.30
The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 st
March, 2017:
H in Crore
Less than 1 2-5 years
Particulars 1-2 years Above 5 years Total
year
Borrowings 467.30 2.57 3,642.79 - 4,112.66
Trade payables 1,571.14 - - - 1,571.14
Other financial
liabilities 642.59 - - 45.06 687.65
The Company uses foreign exchange forward contracts to hedge against the foreign currency risk of highly
probable USD/ZAR sales. Such derivative financial instruments are governed by the Company’s policies
approved by the Board of Directors, which provide written principles on the use of such instruments consistent
with the Company’s risk management strategy. As the value of the derivative instrument generally changes in
response to the value of the hedged item, the economic relationship is established.
a)Disclosure of effects of hedge accounting in Company’s balance sheet

H in Crore
Carrying amount Line item in
the balance
Weighted
Type of hedge Maturity Hedge sheet where
Nominal average strike
and risks Assets Liabilities date ratio hedging
amount price/rate
instrument is
included
31st March 2018
Cash flow hedge
Foreign exchange
risk
Foreign exchange 1,348.80 - 2.00 April 2018 - 1:1 USD 1 = H Note 29: Other
forward contracts March 2019 67.06 financial
ZAR 1 = H liabilities
Interest rate risk 4.94
Interest rate swap 1,792.31 79.23 - April 2020 - 1:1 2.62% Note 9: Other
March 2022 financial
assets
Note 43 (Contd..)
H in
Carrying amount Crore Line
item in the
Weighted
Type of hedge Nominal Maturity Hedge balance
Assets Liabilities average strike
and risks amount date ratio sheet where
price/rate
hedging
instrument is
31st March 2017 included
Cash flow hedge
Foreign exchange
risk
Foreign exchange - - - - - - -
forward contracts
Interest rate risk
Interest rate swap 1,394.28 47.82 - April 2020 - 1:1 2.16% Note 9: Other
March 2022 financial
assets
Note 18: Other
financial
assets-others
*The foreign currency forward contracts are denominated in the same currency as the highly probable future sales, therefore hedge ratio of
1:1
b) Disclosure of effects of hedge accounting in Company’s statement of profit and loss and other
H in Crore
Hedge Amount Line item affected
Change in the value of
ineffectiveness reclassified from in statement of
the hedging instrument
Type of hedge recognised in cash flow profit and loss
recognised in other
statement of hedging reserve because of the
Profit and loss to Profit and loss reclassification
31st March 2018
Cash flow hedge
i) Foreign exchange risk 0.72 - 2.39 Note 31- Revenue
from operation
Note 40 -
Other
expenses.
ii) Interest rate risk 27.91 - -
31st March 2017
Cash flow hedge
i) Foreign exchange risk - - -
ii) Interest rate risk 50.26 - -
Hedge effectivenss is determined at the inception of hedge relationship, and through periodic prospective
effectiveness assessment to ensure that an economic relationships exists between the hedged item and
hedging instruments. It is calculated by comparing changes in fair value of the hedged item, with the changes
in fair value of the hedging instrument.
Note 43 (Contd..)
c) Movement in cash flow hedge reserve and costs of hedge reserve
H in Crore
Foreign Interest rate Total hedge
Derivative instruments
forward contracts swap reserve
exchange
i) Cash flow hedging reserve
As at 1 st April,2016
Add: Changes in fair value of foreign exchange
forward contracts - 50.26 50.26
Less: Amount reclassified to P&L - - -
Less: Deferred tax relating to above (net) - - -
As at 31st March 2017 - 50.26 50.26
Add: Changes in fair value of foreign exchange
forward contracts 3.11 27.93 31.04
Less: Amount reclassified to P&L (2.39) - (2.39)
Less: Deferred tax relating to above (net) (0.25) (13.25) (13.50)
As at 31st March 2018 0.47 64.94 65.41
Note : 44 Capital management (B) Loan covenants

(A) Risk management
Under the terms of the major borrowing facilities,
The Company objectives when managing capital the group is required to comply with the following
are to safeguard their ability to continue as a going financial covenants:
concern so that they can continue to provide
(a) the ratio of Total Debt to EBITDA on the last
returns for shareholders and benefits for other
stakeholders, and maintain an optimal structure to day of each Relevant Period shall not exceed
reduce the cost of capital. In order to maintain or 3.50:1
adjust the Capital structure, the group may adjust
(b) the ratio of Total Debt to Tangible Net Worth on
the amounts of dividends paid to shareholders,
the last day of each Relevant Period shall not
return capital to shareholders, issue new shares or
exceed 2:1; and
sell new assets to reduce debt.
(c) the ratio of EBITDA to Gross Interest and
Net Debt = total borrowings less cash and cash
equivalent + bank balance other than cash and cash Finance Charges shall not be less than 3.50:1.
equivalent (excluding earmarked balance for dividend)
The group has complied with these covenants
+ current investmentsTotal ‘equity’ as shown in the the
throughout the reporting periods.
balance sheet, including non-controlling interest
H in Crore (C) Dividend

H in Crore
As As
Particulars at 31st at 31st As As
March, March, Particulars at 31st at 31st
Total debt 2018
4,098.05 2017
4,112.66 March, March,
2018 2017
Less: Cash and cash Dividend on equity shares paid during the year
equivalent including Final dividend for FY
mutual fund 2,057.74 1,451.52 2017-18 [H 2.00 (FY 2016-
Net debt (A) 2,040.31 2,661.14 17 H 2.00) per equity
Total equity (B) 14,581.63 12,981.89 share of H 2.00 each ] 160.94 160.87
Net debt to equity ratio Tax on dividend 28.33 32.71
(A/B) 15% 21% Total 189.27 193.58

Note 44: Capital management (contd..) Note 46: Contingent liabilities, other
Proposed dividend: litigations and commitments (to the extent
The Board of Directors at its meeting held on 22nd not provided for)
May, 2018 have recommended a payment of final
A. Details of contingent liabilities and
dividend of H 3.00 per equity share of the face
commitments
value of H 2 each for the financial year ended 31st
H in Crore
March, 2018. The same amounts to H 289.83 Crore
including dividend distribution tax. As As
The above is subject to approval at the ensuing March, March,
Annual General Meeting of the Group and hence is 2018 2017
not recognised as a liability. Contingent Liabilities
Claims against
Note 45: Investment in an associate the Company not
acknowledged as debt 387.99 466.72
The Group has a 48.99% interest in Stemputics Financial guarantees 141.90 153.87
Research Private Limited Followings table shows the Letters of credit 5.73 26.70
summarised financial information. Income tax on
H in Crore account of
As As disallowances/
Particulars at 31st at 31st additions 107.08 102.01
March, March, Excise duty/service tax
2018 2017 on account of valuation/
cenvat credit .........126.30 118.48
Current assets 8.32 6.83
Sales tax on account of
Non-current assets 32.49 32.86
credit/classification 5.01 2.43
Current liabilities (4.03) (4.46)
774.01 870.21
Non-current liabilities (28.23) (21.01)
Commitments
Equity 8.55 14.22
Estimated amount of
Proportion of the Group
contracts unexecuted
ownership 48.99% 48.99%
on capital account 228.85 571.69
Proportion of the Group
1,002.86 1,441.90
ownership 4.19 6.97
Goodwill Stempeutics Note :
Research Pvt ltd 5.43 5.43
Carrying amout of the (1) Claims against the Company not acknowledged
Investment .............9.62 12.40 as debt include claims related to pricing,
commission, etc.
(2) It is not practicable for the Group to estimate the

H in Crore
timing of cash outflows, if any, in respect of
As As our pending resolution of the respective
proceedings as it is determined only on receipt
March, March,
of judgements/ decisions pending with various
2018 2017
Revenue from sale of authorities.
products 3.03 0.54 for the year (2.78) (6.99)
Profit for the year (5.67) (14.26)
Total comprehensive
income for the year (5.67) (14.26)
Group share of profit

B. Details of other litigations
The Government of India has served demand

notices in March 1995 and May 1995 on the
Company in respect of six bulk drugs,
claiming that an amount of H 5.46 Crore
along with interest due thereon is payable into
the DPEA

Note 46: Contingent liabilities, other Cipla
litigations and commitments (to the
extent not provided for) (contd..)
under the Drugs (Prices Control) Order, 1979 on
account of alleged unintended benefit enjoyed by
the Company. The Company has filed its replies to
the notices and has contended that no amount is
payable into the DPEA under the Drugs (Prices
Control) Order, 1979.
The Company had received various notices of

demand from the National Pharmaceutical Pricing
Authority (NPPA), Government of India, on account
of alleged overcharging in respect of certain drugs
under the Drugs (Prices Control) Order, 1995
(“DPCO, 1995”). The total demand against the
Company as stated in NPPA public disclosure
amounts to H 2,606.59 Crore.
Out of the above, demand notices pertaining to a

set of products viz, Norfloxacin, Ciprofloxacin,
Salbutamol and Theophylline were challenged by
the Company (i) in the Hon’ble Bombay High Court
on the ground that bulk drugs contained in the said
formulations are not amenable to price control, as
they cannot be included in the ambit of price control
based on the parameters contained in the Drug
Policy, 1994 on which the DPCO, 1995 is based and
(ii) in the Hon’ble Allahabad High Court on process
followed for fixation of pricing norms. These
Petitions were decided in favour of the Company
and the matters were carried in appeal by the Union
of India to the Hon’ble Supreme Court of India. The
Hon’ble Supreme Court of India vide its judgment
dated 1st August, 2003 restored the said Writ
Petitions to the Bombay High Court with directions
that the Court will have to consider the Petitions
afresh, having due regard to the observations made
by the Supreme Court in its judgment. On Union of
India filing Transfer Petitions, the Supreme Court
ordered transfer of the said petitions restored to the
Bombay High Court for being heard along with the
Appeal filed against the Allahabad High Court order.
Subsequently, vide its Order dated 20th July, 2016 the
Hon’ble Supreme Court recalled its transfer order
and remanded the Petitions to Bombay High Court
for hearing. While remanding the matter to Bombay
High Court, the Hon’ble Supreme Court directed
point of time was H 350.15 Crore. Complying with favour of Union of India with respect to the appeals
the directions passed by the Hon’ble Supreme preferred by the Government challenging the
Court, Cipla has deposited an amount of H 175.08 Hon’ble Allahabad High Court order, basis the facts
Crore which has been received and acknowledged by and legal advice on the matter sub-judice with the
NPPA. Furthermore, the Company has not received Hon’ble Bombay High Court, no provision is considered
any further notices post such transfer of cases to necessary in respect of the notices of demand
Bombay High Court. Meanwhile, the Hon’ble received till date aggregating to H 1,736.00 Crore.
Supreme Court of India vide its Order and Judgment It may be noted that NPPA in its public disclosure
dated 21st October, 2016, allowed the Appeals filed by has stated the total demand amount against the
the Government against the Judgment and Order of Company in relation to the above said molecules to
the Hon’ble Allahabad High Court regarding basis of be H 2,282.40 Crore (after adjusting deposit of H
fixation of retail prices. 175.08 Crore), however, the Company has not received
any further notices beyond an aggregate amount of H
The said order was specific to fixation of retail
1,736.00 Crore.
prices without adhering to the formula/process laid
down in DPCO, 1995. However, the grounds relating to
inclusion of certain drugs within the span of price Note 47: Disposal of subsidiaries
control continues to be sub-judice with the Hon’ble
(i)Disposal of Al Jabal for Drugs and
Bombay High Court. The Company has been legally
Medical Appliances Company Limited
advised that it has a substantially strong case on
the merits of the matter, especially under the On 26th March, 2018, Saba Investment Limited, a
guidelines/principles of interpretation of the Drug subsidiary of the Company completed the disposal
Policy enunciated by the Hon’ble Supreme Court of of its entire interest in Al Jabal for Drugs and
India. Although, the decision of Hon’ble Supreme Medical Appliances Company Limited, Yemen
Court dated 21st October, 2016 referred above was in (‘AJDMS’).
Consideration H in Crore
to deposit 50% of the demanded amount with NPPA as
stated in its order dated 1st August, 2003 which at that Consideration receivable 69.97
Note 47: Disposal of subsidiaries (Contd..) (a) Cipla Vet Proprietary Limited
Analysis of asset and liabilities Consideration H in Crore

over
Totalwhich
Assetscontrol was lost H in129.28
Crore
Non-current liabilities - Consideration received 115.16
As at
Current liabilities 59.32
31 March, 2018
st Fair value of deferred
Particulars
Total liabilities 59.32 consideration 13.98
Net assets disposed
Non-current assets off 69.96
1.05
Current assets 128.23
Gain on disposal of H in Crore
a subsidiary
As at
Particulars
31st March, 2018
Consideration 69.96
Net assets disposed off 69.96
Gain on sale before income
tax and reclassification of
foreign currency translation
reserve -
Reclassification of foreign
currency translation reserve (51.17)
Income tax -
Loss on sale after income tax (51.17)
Net cash inflow on disposal

of a subsidiary H in Crore
As at
Particulars
31st March, 2018
Consideration received in cash
and cash equivalents -
Less: cash and cash equivalent
balances disposed of 24.54
(24.54)
129.14
Analysis of asset and liabilities over which control
was lost
Particulars H in Crore
Non-current assets 1.62

Current assets 29.50
Total assets 31.12
Non-current liabilities -
Total liabilities 6.85
Gain on disposal of a subsidiary H in Crore
Consideration 129.14
tax
and reclassification of foreign
currency translation reserve 104.87
Income Tax (5.80)
Profit on sale after income 98.79
tax
Net cash inflow on disposal of

a subsidiary H in Crore

115.16
and cash equivalents
-
balances disposed of
115.16
(ii) Disposal of Cipla Vet rietary Limited and
Prop Cipla Agrimed Limited (b) Cipla Agrimed Proprietary Limited
Proprietary Consideration H in Crore
ed of its 100%
On 1 June 2017, the Group equity ted and Cipla
st
Consideration received 64.95
dispos interest in Cipla Vet Agrimed Health Fair value of deferred
Proprietary Limi Proprietary Proprietary sified as consideration 8.21
Limited to Ascendis Limited. The held for sale 73.16
subsidiaries were clas in the 2017er note 20).
financial statements (ref
Note 47: Disposal of subsidiaries (Contd..) Analysis of asset and H in Crore
Analysis of asset and liabilities over which control liabilities over which control
was lost was lost
Particulars H in Crore As at
Particulars
Non-current assets 19.14 31st March, 2018
Current assets 58.13 Non-current assets 1.64
Total assets 77.27 Current Assets 10.43
Non-current liabilities 5.94 Total Assets 12.07
Current liabilities 9.84 Non-current Liabilities 1.33
Total liabilities 15.78 Current Liabilities 3.62
Net assets disposed off 61.49 Total Liabilities 4.95
Net Assets Disposed off 7.12
Gain on disposal of a H in Gain on disposal of H in

subsidiary Crore a subsidiary Crore
Consideration 73.16 As at
Net assets disposed off 61.49 Particulars
31st March, 2018
Gain on sale before income tax
Consideration 11.39
and reclassification of foreign
currency translation reserve 11.67
tax and reclassification of
foreign 4.27
Income Tax (1.52)
currency translation reserve
Profit on sale after income 6.79 Reclassification of foreign
tax currency translation reserve 0.23
Income Tax -
Profit on sale after income 4.50
Net cash inflow on disposal of H in tax
a subsidiary Crore
Consideration received in cash Net cash inflow on disposal H in
and cash equivalents 64.95 of a subsidiary Crore
Less: cash and cash equivalent As at
Particulars
balances disposed of 16.79 31st March, 2018
48.16 Consideration received in cash
and cash equivalents 7.99
(iii) Disposal of Cipla Croatia d.o.o. balances disposed of 4.21
3.78
On 19th January, 2018, Cipla Holding B.V, a
subsidiary of the Company completed the disposal (iv)Disposal of Four M Propack Private
of its entire interest in Cipla Croatia d.o.o. Limited
On 1st February, 2017, the Group disposed of Four M

Propack Limited which carried out manufacturing
Consideration H in Crore operations of pet bottles rotacaps and containers.
Consideration received in cash Consideration H in Crore
and cash equivalents 7.99 As at
Particulars
Consideration receivable 3.40 31st March, 2018
11.39 Consideration received 20.86
Note 47: Disposal of subsidiaries (Contd..) Ind AS -19
Analysis of asset and liabilities over which control

was lost
H in Crore
As at
Particulars
31st March, 2018
Non-current assets 11.79
Current Assets 7.45
Total assets 19.24
Non-current liabilities 0.33
Total liabilities 2.16
Gain on disposal of a H in
subsidiary Crore
As at
Particulars
31st March, 2018
Consideration 20.86
Net assets disposed off (17.08)
Gain on disposal 3.78
Net cash inflow on disposal of H in

a subsidiary Crore
As at
Particulars
31st March, 2018
and cash equivalents 20.86
Less: cash and cash
equivalent (0.23)
balances disposed of
20.63
Note 48 : Employee benefits

i Short term employee benefits
All employee benefits payable wholly within

twelve months of rendering the service are
classified as short term employee benefits.
Benefits such as salaries, wages, short terms
compensated absences, etc., and the expected
cost of bonus, ex-gratia are recognised in the
period in which the employee renders the
related service.
ii Long term employee benefits
a. Brief description of the plans

Disclosure in respect of employee benefits persuant to
Note 48 : Employee benefits (Contd..) b. Nature of benefits
Defined contribution plan : The Company operates a defined benefit

final salary gratuity plan which is open to
The Company’s defined contribution new
plan is Employees’ Pension Scheme
(under the provisions of Employees’
Provident Funds and Miscellaneous
Provisions Act, 1952) since the Company
has no further obligation beyond
making the contributions.
Defined benefit and other long term benefit

plans :
i. The Company has two schemes for

long term benefits namely,
provident fund and gratuity:
· The provident fund plan, a

funded scheme is operated by
the Company’s Provident Fund
Trust, which is recognised by
the Income tax authorities and
administered through
trustees/appropriate
authorities.
· The Company provides for

gratuity, a defined benefit plan
based on actuarial valuation as of
the reporting date, based upon
which, the Company contributes
all the ascertained liabilities to
the Insurer Managed Funds. The
Company operates gratuity plan
through a trust, wherein every
employee is entitled to the
benefit equivalent to fifteen
days salary last drawn for each
completed year of service. The
same is payable on termination
of service or retirement,
whichever is earlier. The benefit
vests after five years of
continuous service. In case of
some employees, the
Company’s scheme is more
favourable as compared to the
obligation under Payment of
Gratuity Act, 1972.
ii. The employees of the Company are

also entitled to leave encashment
.The provision is made based on
actuarial valuation for leave
encashment at the year end.
Note 48 : Employee benefits (Contd..)
entrants. The gratuity benefits payable to
d. Governance of the plan:
the employees are based on the employee’s
service and last drawn salary at the time of The Company has setup an income tax
leaving. The employees do not contribute approved irrevocable trust fund to finance the
towards this plan and the full cost of plan liability. The trustees of the trust fund are
providing these benefits are met by the responsible for the overall governance of the
Company. plan.
c. Regulatory framework: e. Inherent risks:
There are no minimum funding The plan is of a final salary defined benefit
requirements for a gratuity plan in India. in nature which is sponsored by the
The trustees of the gratuity fund have a Company and hence it underwrites all the
fiduciary responsibility to act according to risks pertaining to the plan. In particular,
the provisions of the trust deed and rules. there is a risk for the Company that any
Since the fund is Income tax approved, the adverse salary growth or demographic
Company and the trustees have to ensure experience or inadequate returns on
underlying plan assets can result in an
that they are at all times fully compliant
increase in cost of providing these benefits to
with the relevant provisions of the Income
employees in future. Since the benefits are
Tax Act and Rules. Besides this if the
lump sum in nature the plan is not subject
Company is covered by the Payment of
to any longevity risks.
Gratuity Act, 1972 then the Company is
bound to pay the statutory minimum gratuity f. Charge to the profit or loss
as prescribed under this Act.
i Based on contribution
H in Crore
Particulars
Employees’ Pension Scheme 28.58 27.56
Provident Fund 62.43 67.64
Others - ESIS, Labour welfare fund, etc. 8.51 3.34
99.52 98.54
g. Disclosures for defined benefit plans based on actuarial reports as on 31st March,
2018
H in Crore
2017 Gratuity
2018 Gratuity
Particulars (funded plan) (funded plan)

Actuarial (gain)/loss on obligations-due to change in financial
assumptions (3.79) 8.40
Actuarial (gain)/loss on obligations-due to experience (4.69) (18.49)
Benefit paid directly by the employer (5.60) -
Liability at the end of the year 147.84
152.99

Expected return on plan assets (interest income only) 11.01 2.36
H in Crore
2018 Gratuity 2017 Gratuity
Particulars
(funded plan) (funded plan)
Return on plan assets excluding interest income (3.24) 7.83
iii. Amount recognised in balance sheet
Present value of obligations as at year (147.84) (152.99)
end Fair value of plan assets as at year 148.21 144.02
end Net asset/(liability) recognised 0.37 (8.97)
iv. Expenses recognised in Statement of profit and loss
Interest on defined benefit obligation 11.70 5.64
Expected return on plan assets (Interest Income (11.01) (2.36)
Only) Benefits paid Directly by the Company - 8.83
Total expense recognised in Statement of Profit and Loss 30.79 41.54
v. Expenses recognised in Statement of profit and loss [
OCI ] (8.48) (10.06)
Actuarial (gains)/losses on obligation for the period 3.24 (1.36)
Return on Plan Assets, Excluding Interest Income (5.24) (11.42)
Net (income)/expense For the period recognised in OCI
100% 100%
Insurer managed funds
26.52 35.80
vii. Expected employer's contribution for the next year
The actuarial calculations used to estimate

The estimates of future salary increases, considered
commitments and expenses in respect of gratuity
in actuarial valuation, take account of inflation,
and compensated absences are based on the
seniority, promotion and other relevant factors,
following assumptions which if changed, would affect
such as supply and demand in employment
the commitment’s size, funding requirements and
market.
expense :
Amount for current and previous are as follows :
H in Crore
For the For the 2018 2017
Principal actuarial year ended year ended
assumptions used 31st March, 31st March, Gratuity
2018 2017 Defined benefit
Discounted rate (per 7.78% 7.20% obligation 147.84 152.99
to to
annum) 7.87% 7.74% Plan assets (148.21) (144.05)
Expected rate of return 7.82% to 7.64% to
on plan assets 7.87% 7.74%
Expected rate of future
salary increase 5.00% 5.00%*
*For the next 5 years & 4.00% p.a. thereafter
(Surplus)/deficit (0.37) 8.94
The sensitivity analyses below have been determined based on reasonably possible changes of the respective
assumptions occuring at the end of the reporting period, while holding all other assumptions constant.
H in Crore
Principal
Discount Rate (1% Movement Increase) (18.15) (18.15)
Discount Rate (1% Movement Decrease) 21.86 22.08
Future Salary Growth (1% Movement Increase) 21.41 25.94
Future Salary Growth (1% Movement Decrease) (17.72) (20.94)
Attrition rate (1% Movement Increase) 6.56 6.28
Attrition rate (1% Movement Decrease) (7.56) (7.25)
The sensitivity analyses presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the
defined benefit obligation has been calculated using the projected unit credit method at the end of the
reporting period, which is the same as that applied in calculating the defined benefit obligation liability
recognised in the balance sheet.
h. The following table sets out the status of the provident fund plan and the amounts recognised in the
Group financial statements as on 31st March, 2018.
H in Crore
Employee contribution 76.69 78.09
Liability transferred in 13.52 9.33
Actuarial gain 0.32 3.28
Transfer of plan assets 13.52 9.33
iii. Amount recognised in balance sheet
Funded status (13.02) (13.28)
Net asset/(liability) recognised - -
h. The following table sets out the status of the provident fund plan and the amounts recognised in the Group
financial statements as on 31st March, 2018.
H in Crore
iv. Expenses recognised in Statement of profit and loss
Total expense recognised in Statement of profit and loss 41.85 42.37
v. Actual return on plan assets
Actuarial gain on plan assets 0.32 3.28
Investment in PSU bonds 401.94 368.94
Investment in Government Securities 381.58 331.42
Bank Special deposit 15.58 15.58
Investment in other securities 36.30 24.39
Private Sector Bonds 4.00 4.00
Equity/Insurer Managed Funds/Mutual Funds 34.85 32.81
Cash and Cash Equivalents 1.08 1.00
Total Assets at the end of the year 875.33 778.14
vii. Principal Actuarial assumptions used
Expected rate of return on plan assets (per annum) 8.55% 8.65%
The estimates of future salary increases, considered in
Actuarial
valuation, take account of inflation, seniority, Promotion and 5.00% p.a. 5.00% p.a.
other relevant factors, such as supply and demand in
employment market.
viii. Experience adjustments
Defined benefit obligation 862.31 764.86
Plan assets (875.33) (778.14)
Deficit/(Surplus) (13.02) (13.28)
Experience adjustment on plan assets gain 0.32 3.28
Note 49: Employee stock option Scheme

1. Parent Company
The Company has implemented “ESOS 2013”, “ESOS 2013 - A” and “ESOS 2013 - B” as approved by the
Shareholders on 8th April 2013, 22nd August 2013 and 22nd August 2013 respectively. Details of the Options
granted during the year under the Scheme(s) are as given below:
No. of
Scheme details Grant date Exercise price (H) Vesting period Exercise period
options granted per option
ESOS 2013 - A 25-May-17 4,25,093 2.00 2 years 5 years from
Vesting date
ESOS 2013 - A 06-Nov-17 54,850 2.00 1 years 5 years from
Vesting date
Note 49: Employee stock option Scheme (Contd..)
The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in
force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek
allotment of one equity share of H 2 each.
Weighted average share price for Options exercised during the year :
Particulars ESOS - 2013 - A

Weighted average share price (H) 585.86
No. of options Weighte average Range of exercise Weighted average

Particulars exercise price price (H) per option remaining contratual
ESOS 2013 - A (H) life (years)
per option
Outstanding at the
beginning of the year 17,01,043 2.00 2.00 5.36
Granted during the year 4,79,943 2.00 2.00 6.09
Forfeited/Cancelled
during the year 1,42,164 2.00 2.00 5.05
Exercised during the year 6,09,090 2.00 2.00 2.99
Outstanding at the end of
the year 14,29,732 2.00 2.00 5.03
Exercisable at the end of
the year 4,48,336 2.00 2.00 3.37
The Black Scholes valuation model has been used for computing weighted average fair value considering the
following inputs:
Particulars ESOS 2013 ESOS 2013 - A ESOS 2013 - B
Expected Dividend yield (%) 0.37%

Expected volatility 24.86%
Risk-free interest rate No 6.75%
options 533.42 No options granted
during the year
Weighted average share price (H) granted during 2.00
the year
Exercise price (H)
Expected life of options granted in years 4.39

Weighted average fair value of Options (H) 523.32
The effect of share-based payment transactions on

the entity’s Profit or Loss for the period and
earnings per share is presented below:
H in Crore
Profit after H in Crore
tax as
Particulars 31 March,
st
31st March,
2018 2017
Particulars
2018 2017
Earnings per share 17.92 12.79
Basic Diluted 17.89 12.77
reported 1,410.53 1,006.39
ESOS cost 31.40 22.18
Note 49: Employee stock option Scheme (Contd..)
2.Subsidiary Company The expense recognised for employee services received
during the year is shown in the following table:
Cipla Health Limited
Share-based employee remuneration
The Subsidiary Company instituted Employees’ Stock H in

For the ForCrore
the
Option Plan under which the stock options have been
granted to employees. The scheme was approved by year ended year ended
Principal
the board of directors at the board meeting held on 31st March, 31st March,
1st January 2017. The details of activity under the ESOP 2018 2017
scheme are summarised below: Expense arising from
equity-settled share-
The carrying amount of the liability relating to the
based payment
stock options at 31st March, 2018 was H 12.50 Crore
transactions 9.88 2.66
(31st March, 2017 H 2.66 Crore)
There were no cancellations or modifications to the awards in FY 2017-18
The following table illustrates the number and weighted average exercise prices (WAEP) of ,and movements in,
share options during the year:

Particulars
Number WAEP Number WAEP
Outstanding at 1st April, 2017 73,498 - - -
Granted during the year 12,365 10 73,498 10
Forfeited during the year - - - -
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at 31st March, 2018 85,863 10 73,498 10
Exercisable at 31st March, 2018 - - - -
The following table lists the inputs to the models used

for the years ended 31st March, 2018 and 31st March,
As As
2017,
respectively.
March, March,
2018 2017
As As Grant date 1st January 1st January
Particulars at 31st at 31st 2018 2017
March, March, Vesting Period 1 to 4 years 1 to 4 years
Dividend yield(%) 2018
0 2017
0 Exercise Period 5 years 5 years
Expected Volatality(%) 25 25 from from
Risk free investment vesting vesting
rate(%) 7 7 date date
Exercise price at date of Model Used Black Black
grant 10 10 Scholes Scholes
Share price at date of
grant 2408 2408
Note 50: Lease accounting
Where Group is lessee Stempeutics Research Pvt. Ltd.
The Group has obtained certain premises for its

business operations (including furniture and fixtures,
therein as applicable) under cancellable and non
cancellable operating lease or leave and license
agreements ranging from 11 months to 5 years or
longer which are subject to renewal at mutual
consent. The cancellable lease arrangements can
be terminated by either party after giving due
notice. Lease payments are recognised in the
Statement of Profit and Loss under ‘Rent’ in Note
40 -Other expenses
The details of non-cancellable operating leases

contracted by subsidiaries/step down subsidiaries, but
not recognised in the financial statements are as below:
H in Crore
For the For the
Principal
2018 2017
Minimum lease payment
Not later than one year 48.01 44.90

Later than one year but
not later than five years 133.44 116.99
Later than five years 61.37 62.38
242.82 224.27
Where Company is lessor
The Group has given certain premises under

operating lease or leave and license agreement.
The Company retains substantially all risks and
benefits of ownership of the leased asset and hence
classified as operating lease. Lease income on
such operating lease is recognised in statement of
Profit and Loss under ‘Rent’ in note 33.
Note 51: Related party disclosures

As per Ind AS 24 Related party disclosures, the
related party is where control exists or where
significant influence exists and with whom
transaction have taken place are as below:
A. Associate
B. Key management personnel
Ms. Samina Vaziralli - Executive Vice-

Chairperson [appointed as executive director
(w.e.f. 10th July, 2015) and as Executive Vice-
Chairperson (w.e.f. 1st September, 2016)]
Mr. Umang Vohra – Managing Director and

Global Chief Executive Officer (Global Chief
Operating Officer and Global Chief Financial
Officer upto 31st July, 2016; Global Chief
Operating Officer from 1st August, 2016 to 31st
August, 2016 and Managing Director and Global
Chief Executive Officer w.e.f. 1st September,
2016)
Mr. S. Radhakrishnan – Whole-time Director (upto

11th November, 2017)
Mr. Kedar Updhaye - Global Chief Financial

Officer (w.e.f 1st August, 2016)
Mr. Subhanu Saxena - Managing Director and

Global Chief Executive Officer (resigned w.e.f
close of business hour on 31st August, 2016)
C. Non-executive Chairman & Non Executive

Vice Chairman
Dr. Y. K. Hamied, Chairman

Mr. M. K. Hamied, Vice Chairman
D. Non-executive Directors
Mr. Ashok Sinha

Mr. Adil
Zainulbhai Ms.
Punita Lal
Ms. Naina Lal Kidwai
Ms. Ireena Vittal(w.e.f. 1st
December,2016) Mr. Peter Lankau( w.e.f.
10th January,2017) Dr. Peter Mugyenyi
Mr. S. Radhakrishnan (w.e.f. 12st November, 2017)
E. Entities over which Key management

personnel are able to exercise
significant influence
Cipla Foundation
Hamied Foundation (w.e.f. 3rd February
2016) Cipla Cancer & AIDS Foundation
F. Trust over which entity has
control/significant influence
Note 51: Related party disclosures (Contd..)
H in Crore
Cipla Limited Employee’s Provident Fund Trust
Particulars 2018 2017
Cipla Limited Employee’s Gratuity Trust
31.30 23.30
Cipla Employees Stock Option Trust
F. Rent received
Cipla Health Employees Stock Option Trust Dr. Y.K. Hamied
(H 20,040/- in
Disclosure in respect of related parties both the year) 0.00 0.00
0.00 0.00
During the year, the following transactions were carried
G. Service charges paid
out with the related parties in the ordinary course of
Hamied Foundation 4.87 2.49
business:
4.87 2.49
H in Crore
Particulars 2018 2017
Note 52: Corporate social responsibility (CSR)
A. Investment - Equity expenditure
Stempeutics
Research Pvt. Ltd --------------- 2.57 The Company has incurred H 34.54 Crore (previous
B. Remuneration year H 29.53 Crore) towards CSR activities, as per
Dr. Y. K. Hamied .............2.03 2.02 Section 135 of the Companies Act, 2013, and Rules
Mr. M. K. Hamied ..............2.10 2.09 thereon. It is included in other expenses head in
Ms. Samina Vaziralli............4.83 3.90 the Statement of Profit and Loss. Amount spent on
Mr. Umang Vohra ...........14.67 13.66 construction/ aquisition of any assets is Nil during
Mr. S.Radhakrishnan.............4.03 4.06 the year.
Mr. Kedar Updhaye .............3.31 3.13 Gross amount required to be spent by the Company
Mr. Ashok Sinha ............0.47 0.51 during the year H 33.57 Crore (previous year H
Mr. Adil Zainulbhai ...........0.36 0.42 35.77 Crore.)
Ms. Punita Lal ............0.39 0.38
Ms. Naina Lal Kidwai...........0.40 0.43
Ms. Ireena Vittal .............0.41 0.14 Note: 53 - Exceptional items
Mr. Peter Lankau ............0.44 0.11
With respect to various notices of demand recevied
Dr. Peter Mugyenyi ............0.43 0.42
from the NPPA, Government of India on account of
Mr. Subhanu Saxena - 25.34 alleged overcharging in relation to products which
33.87 56.61
are not part of the writ proceedings in the Hon’ble
C. Contribution to provident fund and other fund Bombay High Court (refer note 46 B), based on
Cipla Employee recent correspondence with NPPA and notices
gratuity trust ..........28.00 52.02 received, the Company performed a thorough legal
Cipla Employee’s evaluation. Of the total demand received for such
Provident fund trust 41.85 42.37 products, basis the facts and legal advice, the
69.85 94.39 Company has recorded an additional provision of H
D. Purchase of goods 77.52 Crore in profit or loss for the year ended 31st
Stempeutics March, 2018, disclosed as exceptional item. The total
Research Pvt. Ltd 1.10 0.57 provision against these demands is H 93.94 Crore as
1.10 0.57 of 31st March, 2018.
E. Donations given
Cipla Foundation ..........31.30 16.50
Cipla Cancer and
Note: 54 - Other significant notes
AIDS foundation ---------------- 5.16
Hamied Foundation----------------- 1.64
(i) The Government of India introduced the Goods
and Service Tax (GST) with effect from 1st July
2017 which subsumes excise duty and
various other indirect taxes. As required
under Ind AS 18, revenue for
the year ended 31st March 2018 are reported
1 Pharmaceuticals - This segment develops,
net of GST. The revenue for year ended 31st
manufactures, sells and distributes generic or
March 2018 includes excise duty up to 30 th
branded generic medicines as well as active
June 2017. Accordingly, income from pharmaceutical ingredients (“API”).
operations for the year ended 31st March 2018
and 31st March 2017 are not comparable. 2 New Ventures - This includes the operations of
the Company’s two wholly-owned subsidiaries,
(ii) Certain prior year amounts have been Cipla Health Ltd., a consumer healthcare
reclassified for consistency with the current year Company and Cipla BioTec Pvt. Ltd, which is
presentation. As a result, certain line items into the business of Biosimilars. This segment
have been amended in the financial statements. also includes CipTec (a division within the
These reclassifications had no effect on the Company) is to establish a strong Specialty
reported results of operations. Comparative business in US with significant focus on
figures have been adjusted to conform to the business development and evaluating investment
current year’s presentation. opportunities.
The CODM reviews revenue as the performance

Note 55: Segment information indicator, and does not review the total assets and
liabilities for each reportable segment.
The Chief Operating Decision Maker (“CODM”)
evaluates the Group performance and allocates The measurement of each segment’s revenues,
resources based on an analysis of various expenses and assets is consistent with the
performance indicators by reportable segments. The accounting policies that are used in preparation of
Group reportable segments are as follows: the Group consolidated financial statements.
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit
or loss on inter segment transfer are eliminated at the group level.
H in Crore

Particulars
Segment wise revenue and results
Segment revenues:
a) Pharmaceuticals 15,110.03 14,537.06
b) New Ventures 134.78 95.29
Total 15,244.81 14,632.35
Less : Inter segment revenue 25.56 2.11
Total Income from operations 15,219.25 14,630.24
Segment results:
Profit / (Loss) before tax and interest from each segment
a) Pharmaceuticals 1,966.48 1,502.47
b) New Ventures (105.27) (120.92)
Total 1,861.21 1,381.55
Less:
Finance Cost 114.23 159.38
ii) Other net un-allocable expenditure / (income) - -
Total profit / (Loss) before tax before exceptional 1,746.98 1,222.17
Less: Exceptional item (refer note 53) 77.52 -
Total profit / (Loss) after tax after exceptional 1,669.46 1,222.17
Note 55: Segment information (Contd..)
Segment assets and liabilities
As some of the assets and liabilities are deployed interchangeably across segments, it is not practically
possible to allocate those assets and liabilities to each segment. Hence, the details of assets and liabilities
have not been disclosed in the above table.
The management also evaluates the Group revenue performance based on geographical segments. The
Group geographical segments are as follows:
1 India
2 United States of America
3 South Africa
4 Rest of the world
The geographical segments derives their revenues from the sale of pharmaceuticals products (generics,
speciality) and milestone payments. The management reviews revenue as the performance indicator, and does
not review the total assets and liabilities for each reportable segment.
The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that
are used in preparation of the Group consolidated financial statements.
Analysis of Revenue (by customers location)

H in Crore
Year India United States of America South Africa Rest of the World Total
2018 5,999.12 2,819.39 2,589.24 3,811.50 15,219.25
2017 5,952.90 2,675.02 2,300.78 3,701.54 14,630.24
Analysis of non current assets (by assets location)

H in Crore
Year India United States of America South Africa Rest of the World Total
2018 5,423.58 2,981.47 2,065.00 642.72 11,112.77
2017 5,545.14 3,371.77 1,878.11 672.14 11,467.16
Note 56: Additional information as required under Schedule III of the Companies Act, 2013 of
the enterprises consolidated as Subsidiaries/Associates
Net Assets (Total Assets Share in profit or loss Share in other Share in total
less Total Liabilities) comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
Name of the entity
consolidated J in consolidated J in consolidated J in consolidated J
net assets Crore profit or loss Crore profit or loss Crore profit or loss in
Crore
2017-18 2017-18 2017-18 2017-18
Parent Company
Cipla Limited 99.06% 14,113.52 104.11% 1,468.52 0.63% 2.24 83.35% 1,470.76
Subsidiaries
Indian
the enterprises consolidated as Subsidiaries/Associates
Net Assets (Total Assets less Total Liabilities)

Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
Name of the entity As % of Amount As % Amount As % Amount As % Amount

consolidated net J of J of J of J
assets in consolidated in consolidated in consolidated in
Crore profit or Crore profit or Crore profit or Crore
2017-18
Golden Cross Pharma Private loss loss loss
Limited 2017-18 2017-18 2017-18
2.02%
Meditab Specialities Private 287.11 16.69 0.28 16.97
Limited
1.21% 1.18% 0.08% 0.96%
Jay Precision Pharmaceuticals 172.17 (13.33) 0.06 (13.27)
Private Limited 0.86% 122.34 1.75% 24.72 0.00% 0.01 1.40% 24.73
(0.95%) 0.02% (0.75%)
Medispray Laboratories Private

Limited 1.55% 220.79 2.38% 33.63 0.15% 0.54 1.94% 34.17
Sitec Labs Private Limited 0.23% 32.48 0.04% 0.62 0.10% 0.35 0.05% 0.97
Cipla Biotec Private Limited 0.69% 98.59 (1.84%) (25.95) 0.09% 0.32 (1.45%) (25.63)
Cipla Health Limited 0.64% 90.49 (3.66%) (51.56) 0.03% 0.09 (2.92%) (51.47)
Foreign
Cipla FZE 0.00% - 0.00% (0.01) 0.00% - 0.00% (0.01)
Cipla (Mauritius) Limited 0.73% 104.37 (0.01%) (0.15) 0.00% - (0.01%) (0.15)
Cipla Medpro South Africa
Proprietary Limited 1.00% 141.82 19.84% 279.86 0.00% - 15.86% 279.86
Cipla Holding BV 1.20% 170.65 (0.12%) 0.27 0.00% - (0.10%) (0.27)
Cipla EU Limited 3.45% 451.70 10.71% 134.02 2.44% - 9.05% 139.02
Saba Investment Limited 2.22% 316.93 9.95% 140.33 0.00% - 7.95% 140.33
Cipla (UK) Limited 0.02% 2.18 0.01% 0.17 0.00% - 0.01% 0.17
Cipla Australia Pty Ltd 0.03% 3.65 0.05% 0.75 0.00% - 0.04% 0.75
Meditab Holdings Limited 2.26% 322.56 0.61% 8.63 0.00% - 0.49% 8.63
Cipla İlaç Ticaret Anonim Şirketi 0.00% 0.32 0.01% 0.07 0.00% - 0.00% 0.02
Cipla USA Inc. 0.26% 37.52 0.46% 6.48 0.00% - 0.37% 6.48
Cipla Kenya Limited 0.01% 0.94 0.03% 0.49 0.00% - 0.03% 0.49
Cipla Malaysia Sdn. Bhd. 0.02% 2.20 0.03% 0.40 0.00% - 0.02% 0.40
Cipla Europe NV 0.46% 65.19 (0.10%) (1.45) 0.00% - (0.08%) (1.45)
Cipla Quality Chemical Industries
Limited 2.13% 307.39 5.64% 79.53 0.00% - 4.51% 79.53
Quality Chemicals Limited 0.08% 11.49 0.12% 1.63 0.00% - 0.09% 1.63
Cipla Croatia d.o.o. 0.00% - 0.05% 0.70 0.00% - 0.04% 0.70
Galilee Marketing Proprietary
Limited 0.00% - 0.00% - 0.00% - 0.00% -
Inyanga Trading 386 Proprietary
Limited 0.38% 53.77 11.46% 161.60 0.00% - 9.16% 161.60
Xeragen Laboratories
Proprietary Limited 0.05% 6.43 0.00% - 0.00% - 0.00% -
Cipla Medpro Holdings
Proprietary Limited 0.00% - 0.00% (0.03) 0.00% - 0.00% (0.03)
Cape to Cairo Exports
Proprietary Limited 0.00% - 0.00% - 0.00% - 0.00% -
Cipla Agrimed Proprietary
Limited 0.00% - 0.21% 2.99 0.00% - 0.17% 2.99
Cipla Dibcare Proprietary Limited 0.00% 0.22 0.00% - 0.00% - 0.00% -
the enterprises consolidated as Subsidiaries/Associates (Contd..)
Cipla Life Sciences Proprietary Net Assets (Total AssetsShare in profit or lossShare in otherShare in total
Limited 1.02% 145.22 0.03% 0.40 incomecomprehensive
less Total Liabilities)comprehensive 0.00% -
income 0.02% 0.40
Cipla-Medpro Proprietary As % ofAmount consolidatedJ
As % of
in consolidated profitAmount
or loss
As % of consolidated profitAmount
or loss
As % of consolidated profitAmount
or loss
Name of the entity
Limited 2.55% net assetsCrore
363.23 2.92% J in 2017-18
41.16 0.00% J in 2017-18 - 2.33% 41.16
2017-18 Crore Crore J in Crore
Cipla-Medpro Distribution Centre 2017-18
Proprietary Limited (0.01%) (0.81) (0.03%) (0.39) 0.00% - (0.02%) (0.39)
Cipla Medpro Botswana
Proprietary Ltd. 0.00% - 0.00% - 0.00% - 0.00% -
Cipla Nutrition Proprietary
Limited (0.20%) (28.47) 0.02% 0.32 0.00% - 0.02% 0.32
Cipla Vet Proprietary Limited 0.00% - 0.01% 0.10 0.00% - 0.01% 0.10
Anmarate Proprietary Limited 0.01% 0.73 (0.05%) (0.74) 0.00% - (0.04%) (0.74)
Medpro Pharmaceutica
Proprietary Limited 1.33% 189.37 5.21% 73.46 0.00% - 4.16% 73.46
Breathe Free Lanka (Pvt) Ltd 0.04% 5.28 0.14% 1.99 0.00% - 0.11% 1.99
Medica Pharmaceutical
Industries Company Limited 0.18% 25.28 (0.57%) (7.98) 0.00% - (0.45%) (7.98)
Al-Jabal For Drugs and Medical
Appliances Company Limited. 0.00% - 1.55% 21.82 0.00% - 1.24% 21.82
Cipla Pharma Lanka (Pvt) Ltd (0.02%) (3.49) 0.14% 1.98 0.00% - 0.11% 1.98
Cipla Pharma Nigeria Ltd 0.00% - 0.00% - 0.00% - 0.00% -
Cipla Brasil Importadora e
Distribuidora de Medicamentos
Ltda. 0.06% 8.10 (0.12%) (1.71) 0.00% - (0.10%) (1.71)
Cipla Maroc SA 0.10% 14.77 (0.29%) (4.02) 0.00% - (0.23%) (4.02)
Invagen Pharmaceuticals Inc. 10.86% 1,545.75 (15.29) (215.70) 1.71% 6.04 (11.88%) (209.66)
Cipla Middle East
Pharmaceuticals FZ-LLC 0.04% 5.75 4.96% 70.01 0.00% - 3.97% 70.01
Cipla Philippines Inc. 0.01% 0.99 (0.01%) (0.09) 0.00% - (0.01%) (0.09)
Cipla Algérie 0.00% 0.06 0.00% - 0.00% - 0.00% -
Cipla BioTec South Africa (Pty)
Ltd 0.00% - 0.00% - 0.00% - 0.00% -
Med Man Care Proprietary
Limited 0.00% - 0.00% - 0.00% - 0.00% -
Meditab Specialities New
Zealand Limited 0.00% - 0.00% - 0.00% - 0.00% -
Exelan Pharmaceuticals Inc. 0.01% 1.17 0.94% 13.20 0.00% - 0.75% 13.20
Cipla Technologies LLC (0.13%) (18.18) (1.50%) (21.21) 0.00% - (1.20%) (21.21)
Subtotal 19,391.57 2,246.68 9.93 2,256.61
Inter-Company Elimination and
Consolidation Adjustments 33.86% (4,819.56) (59.51%) (839.41) 86.03% 304.52 (30.31%) (534.89)
Minority Interest in Subsidiaries (2.46%) (352.44) 0.43% 6.04 11.17% 39.54 2.58% 45.58
Share of Profit in Associates 0.08% 9.62 (0.20%) (2.78) 0.00% - (0.16%) (2.78)
Grand Total 14,229.19 1,410.53 353.99 1,764.52
Net Assets (Total Assets less Share in profit or loss Share in other Share in total
Total Liabilities) comprehensive income comprehensive income
Name of the entity
consolidated J in consolidated J in consolidated J in consolidated J in
net assets Crore profit or loss Crore profit or loss Crore profit or loss Crore
2016-17 2016-17 2016-17 2016-17
Parent
Cipla Limited 102.05% 12800.51 97.56% 981.87 4.14% 6.93 84.25% 988.80
Subsidiaries
Indian
Golden Cross Pharma Private
Limited 2.15% 270.15 1.96% 19.70 0.12% 0.20 1.70% 19.90
Meditab Specialities Private
Limited 1.48% 185.44 (3.34%) (33.58) 0.23% 0.39 (2.83%) (33.19)
Jay Precision Pharmaceuticals
Private Limited 0.78% 97.61 2.60% 26.14 0.07% 0.11 2.24% 26.25
Four M Propack Private Limited 0.00% 0.00 0.12% 1.18 0.00% 0.00 0.10% 1.18
Medispray Laboratories Private
Limited 1.49% 186.62 3.34% 33.66 0.00% 0.00 2.87% 33.66
Sitec Labs Private Limited 0.20% 24.57 0.11% 1.08 (0.08%) (0.14) 0.08% 0.94
Cipla Biotec Private Limited 0.83% 104.22 (24.69%) (248.48) (0.04%) (0.07) (21.18%) (248.55)
Cipla Health Limited 1.05% 132.09 (3.01%) (30.28) 0.02% 0.04 (2.58%) (30.24)
Foreign
Cipla FZE 0.19% 23.98 0.00% (0.01) 0.00% 0.00 0.00% (0.01)
Cipla (Mauritius) Limited 1.12% 139.99 (0.01%) (0.13) 0.00% 0.00 (0.01%) (0.13)
Cipla Medpro South Africa
Proprietary Limited (0.03%) (4.10) (29.16%) (293.49) 0.00% 0.00 (25.01%) (293.49)
Cipla Holding BV 1.18% 147.92 (0.11%) (1.13) 0.00% 0.00 (0.10%) (1.13)
Cipla EU Limited 1.98% 248.32 3.82% 38.47 12.69% 21.22 5.09% 59.69
Saba Investment Limited 2.06% 258.46 0.57% 5.74 0.00% 0.00 0.49% 5.74
Cipla (UK) Limited 0.01% 1.75 0.01% 0.12 0.00% 0.00 0.01% 0.12
Cipla Australia Pty Ltd 0.02% 2.87 0.04% 0.43 0.00% 0.00 0.04% 0.43
Meditab Holdings Limited 2.49% 312.27 2.23% 22.40 0.00% 0.00 1.91% 22.40
Meditab Specialities New
Zealand Limited 0.00% 0.00 0.00% (0.03) 0.00% 0.00 0.00% (0.03)
Cipla İlaç Ticaret Anonim Şirketi 0.00% 0.27 0.01% 0.09 0.00% 0.00 0.01% 0.09
Cipla USA Inc. 0.25% 30.81 2.43% 24.49 0.00% 0.00 2.09% 24.49
Cipla Kenya Limited 0.00% 0.43 0.02% 0.21 0.00% 0.00 0.02% 0.21
Cipla Malaysia Sdn. Bhd. 0.01% 1.54 0.03% 0.33 0.00% 0.00 0.03% 0.33
Cipla Europe NV 0.45% 56.93 0.20% 2.00 0.00% 0.00 0.17% 2.00
Cipla Quality Chemical Industries
Limited 1.98% 248.26 8.13% 81.77 0.00% 0.00 6.97% 81.77
Quality Chemicals Limited 0.09% 10.92 0.92% 9.28 0.00% 0.00 0.79% 9.28
Cipla Croatia d.o.o. 0.03% 4.18 (0.04%) (0.45) 0.00% 0.00 (0.04%) (0.45)
Galilee Marketing Proprietary
Limited 0.00% 0.00 0.00% 0.01 0.00% 0.00 0.00% 0.01
Inyanga Trading 386 Proprietary
Limited 0.28% 34.67 1.07% 10.75 0.00% 0.00 0.92% 10.75
Net Assets (Total Assets Share in profit or loss Share in other Share in total
less Total Liabilities) comprehensive income comprehensive income
Name of the entity
2016-17 2016-17 2016-17 2016-17
Xeragen Laboratories
Proprietary Limited 0.04% 5.59 0.00% 0.00 0.00% 0.00 0.00% 0.00
Cipla Medpro Holdings
Cape to Cairo Exports
Cipla Agrimed Proprietary
Limited 0.46% 57.30 0.89% 8.95 0.00% 0.00 0.76% 8.95
Cipla Dibcare Proprietary Limited 0.00% 0.19 0.00% 0.00 0.00% 0.00 0.00% 0.00
Cipla Life Sciences Proprietary
Limited 1.00% 125.88 0.02% 0.18 0.00% 0.00 0.02% 0.18
Cipla-Medpro Proprietary
Limited 2.20% 275.71 3.69% 37.17 0.00% 0.00 3.17% 37.17
Cipla-Medpro Distribution Centre
Proprietary Limited 0.00% (0.33) (0.04%) (0.37) 0.00% 0.00 (0.03%) (0.37)
Cipla Medpro Botswana
Cipla Medpro Research and
Development Proprietary Ltd. 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00
Cipla Nutrition Proprietary
Limited (0.20%) (25.07) (0.85%) (8.58) 0.00% 0.00 (0.73%) (8.58)
Cipla Vet Proprietary Limited 0.40% 49.86 0.85% 8.55 0.00% 0.00 0.73% 8.55
Medpro Pharmaceutica
Breathe Free Lanka (Pvt) Ltd 0.03% 3.35 (0.01%) (0.12) 0.00% 0.00 (0.01%) (0.12)
Cipla Canada Inc. 0.00% 0.00 (1.80%) (18.09) 0.00% 0.00 (1.54%) (18.09)
Medica Pharmaceutical
Industries Company Limited 0.26% 33.19 (0.78%) (7.88) 0.00% 0.00 (0.67%) (7.88)
Al-Jabal For Drugs and Medical
Appliances Company Limited. 0.82% 103.23 5.44% 54.76 0.00% 0.00 4.67% 54.76
Cipla Pharma Lanka (Pvt) Ltd (0.04%) (5.55) 0.05% 0.52 0.00% 0.00 0.04% 0.52
Cipla Pharma Nigeria Ltd 0.00% 0.20 0.00% 0.00 0.00% 0.00 0.00% 0.00
Cipla Brasil Importadora e
Distribuidora de Medicamentos
Ltda. 0.08% 10.32 (0.09%) (0.91) 0.00% 0.00 (0.08%) (0.91)
Cipla Maroc SA 0.06% 7.61 0.05% 0.46 0.00% 0.00 0.04% 0.46
Invagen Pharmaceuticals Inc. 18.01% 2258.74 8.30% 83.51 17.36% 29.04 9.59% 112.55
Cipla Middle East
Pharmaceuticals FZ-LLC 0.00% 0.12 (0.01%) (0.14) 0.00% 0.00 (0.01%) (0.14)
Cipla Philippines Inc. 0.01% 1.15 (0.01%) (0.09) 0.00% 0.00 (0.01%) (0.09)
Cipla Algérie 0.00% 0.06 0.00% 0.00 0.00% 0.00 0.00% 0.00
Cipla BioTec South Africa (Pty)
Ltd 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00
Net Assets (Total Assets less Share in profit or loss Share in other Share in total
Total Liabilities) comprehensive income comprehensive income
Name of the entity
2016-17 2016-17 2016-17 2016-17
Med Man Care Proprietary

Limited 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00
Exelan Pharmaceuticals Inc. (0.10%) (12.12) 0.82% 8.23 0.00% 0.00 0.70% 8.23
Subtotal 18303.18 1097.67 57.72 1155.39
Inter-Company Elimination and
Consolidation Adjustments (42.52%) (5333.69) (11.26%) (113.32) 44.02% 73.63 (3.38%) (39.69)
Minority Interest in Subsidiaries (3.49%) (438.23) 2.88% 29.03 21.48% 35.93 5.53% 64.96
Share of Profit in Associates 0.10% 12.40 (0.69%) (6.99) 0.00% 0.00 (0.60%) (6.99)
Grand Total 12543.66 1006.39 167.28 1173.67
Note:57 - Authorisation of financial statements

The financial statements for the year ended 31st March, 2018 were approved by the Board of Directors on 22nd May
2018.



30
0
Salient Features of Financial Statements of Subsidiaries and Associates
An Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014 in Form AOC-1
nu related to Subsidiaries and Associate Companies
al
Re
po
Part (a) : Information on Subsidiaries H in Crore
rt
20 Ex
Sr R nv %
P
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rof
17 . esoro C
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m re alovbe
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n
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oti t
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o l iehe s
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f s tioath
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a
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ve xa
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b 31 l
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i 3. su i
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i 18 idi g
a
r
y M
C aki
o
ng
m
p
a
a dif
n fer
y en
1
ce
to
pat
Cipla (EU) ien
Limited ts.
GBP Ou
r
92.2775 ins
pir
267.60 ati
on
for
184.10
inn
ov
2,244.73 ati
on.
1,793.03
86.16
139.02-
139.02-
100% U.K.
2 Cipla (Mauritius) Limited USD 65.1750 104.28 0.09 104.42 0.05 - - (0.15) - (0.15) - 100%
Mauritius
3 Cipla (UK) Limited GBP 92.2775 1.38 0.80 2.18 - - 1.77 0.18 0.01 0.17 - 100%
U.K.
4 Cipla Australia Pt Ltd AUD 50.0450 1.25 2.40 32.74 29.09 - 47.53 1.10 0.35 0.75 - 100%
Australia
5 Cipla FZE AED 17.7450 - - - - - - (0.01) - (0.01) - 100%
U.A.E.
6 Cipla İlaç Ticaret Anonim
Şirketi TRY 16.4577 0.08 0.24 0.46 0.14 - 1.17 0.09 0.02 0.07 - 100%
Turkey
7 Cipla Kenya Limited KES 0.6466 0.01 0.93 64.47 63.53 - 41.39 0.90 0.41 0.49 - 100%
8 Cipla Malaysia Sdn. Bhd. MYR 16.8675 0.98 1.22 2.77 0.57 - 17.46 0.52 0.12 0.40 - 100%
Malaysia
9 Cipla USA Inc. USD 65.1750 0.00 37.52 743.59 706.07 - 1,484.01 45.43 38.95 6.48 - 100%
10 Cipla Medpro South Africa
Proprietary Limited ZAR 5.5775 0.25 141.57 338.87 197.05 - 965.43 333.10 53.24 279.86 - 100%
South Africa
11 Cape to Cairo Exports
Proprietary Limited ZAR 5.5775 0.00 - 0.00 0.00 - - - - - - 100%
South Africa
12 Cipla Dibcare Proprietary
Limited ZAR 5.5775 0.00 0.22 0.22 - - - - - - - 100%
South Africa
13 Cipla Life Sciences
Proprietary Limited ZAR 5.5775 0.00 145.22 145.22 - - 0.59 0.54 0.14 0.40 - 100%
South Africa
14 Cipla-Medpro Proprietary
Limited ZAR 5.5775 0.00 363.23 366.38 3.15 - 46.54 56.04 14.88 41.16 - 100%
South Africa
15 Cipla-Medpro Distribution
Centre Proprietary Limited ZAR 5.5775 0.00 (0.81) 17.77 18.58 - 48.37 - 0.39 (0.39) - 100%
South Africa
16 Galilee Marketing Proprietary
Limited ZAR 5.5775 0.00 (0.00 ) - - - - - - - - 100%
South Africa
17 Inyanga Trading 386
Proprietary Limited ZAR 5.5775 0.00 53.77 53.77 0.00 - - 169.64 8.04 161.60 - 100%
South Africa
18 Medpro Pharmaceutica
Proprietary Limited ZAR 5.5775 0.00 189.37 1,287.45 1,098.08 - 1,227.00 104.27 30.81 73.46 - 100%
South Africa
19 Cipla Nutrition Proprietary
Limited ZAR 5.5775 0.00 (28.47 ) 0.28 28.75 - 1.22 0.32 - 0.32 - 100%
South Africa
20 Med Man Care Proprietary
Limited ZAR 5.5775 - - - - - - - - - - 100%
South Africa
21 Xeragen Laboratories
Proprietary Limited ZAR 5.5775 0.00 6.43 6.43 - - - - - - - 100%
South Africa
22 Cipla Medpro Botswana
Proprietary Limited ZAR 5.5775 0.00 - 0.00 - - - - - - - 100%
South Africa
23 Cipla Medpro Holdings
Proprietary Limited ZAR 5.5775 0.00 0.00 0.00 - - - (0.03) 0.00 (0.03) - 100% South
Africa
24 Cipla Holding BV EUR 80.8075 174.03 (3.38) 175.00 4.35 - 10.76 (0.22) 0.05 (0.27) - 100%
Netherlands
25 Cipla Europe NV EUR 80.8075 57.37 7.82 311.65 246.46 - 123.67 (0.58) 0.87 (1.45) - 100%
Belgium
Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014 in Form AOC-1
related to Subsidiaries and Associate Companies
Part (a) : Information on Subsidiaries

H in Crore
ExR nvP
Sr o
N e es Tur ro
rof Pr
. f
a haotrnofit
No tm v
m re alov be
. en af
e Ca Lieri te
Sur
s
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oti h
ta ilit
heo a
o l ie n
r
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th e
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anor at
h
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o
on l
S
en d
u
i
b 31 n
s .0
g
i 3. su
d 20 bs
i 18 idi
a
r
y
C
o
m
p
a
n
y
Country
26 Cipla Quality Chemical

Industries Limited UGX 0.0177 80.60 226.79 369.56 62.17 - 405.11 78.40 (1.13) 79.53 - 51.05%
Uganda
27 Quality Chemicals Limited UGX 0.0177 0.11 11.38 29.82 18.33 - 29.02 2.54 0.91 1.63 - 51.05%
Uganda
28 Goldencross Pharma Private
Limited H 1.0000 0.05 287.06 309.83 22.72 1.63 155.98 19.77 3.08 16.69 - 100%
India
29 Medispray Laboratories
Private Limited H 1.0000 0.05 220.74 299.15 78.36 7.78 263.68 52.77 19.14 33.63 - 100%
India Co
30 Meditab Holdings Limited USD 65.1750 290.81 31.75 322.59 0.03 - - 9.62 0.99 8.63 - 100%
Mauritius rp
31 Meditab Specialities Private or
Limited H 1.0000 0.62 171.55 458.34 286.17 69.97 41.27 (12.97) 0.36 (13.33) - 100% at
India e
32 Sitec Labs Private Limited H 1.0000 0.01 32.47 85.91 53.43 - 83.05 3.84 3.22 0.62 - 100% Ov
33 Saba Investment Limited USD 65.1750 222.71 94.22 319.20 2.27 - - 140.33 - 140.33 - 51% er
34 Jay Precision Pharmaceuticals vie
Private Limited H 1.0000 4.01 118.33 134.68 12.34 - 94.57 37.86 13.14 24.72 - 60% w
India 02
35 Breathe Free Lanka (Pvt) Ltd LKR 0.4179 5.44 -0.16 79.40 74.12 - 112.91 2.25 0.26 1.99 - 100%Sri
Lanka -
Sa
36 Medica Pharmaceutical
lie
Industries Company Limited USD 65.1750 1.52 23.76 160.45 135.17 - - (9.98) (2.00) (7.98) - 50.49%
nt
Yemen
Fe 37 Cipla Pharma Lanka (Pvt) Ltd LKR 0.4179 0.04 (3.53) 74.33 77.82 - 131.56 2.55 0.57 1.98 - 60%Sri
at Lanka St
ur 38 Cipla Brasil at
es Importador ut
of ae or
Distribuid
Fi ora de
y
na Medicamentos Ltda. BRL 19.6969 11.41 (3.31) 8.29 0.19 - - (1.71) - (1.71) - 100% Re
nci Brazil po
al 39 Cipla Maroc SA MAD 7.0747 18.04 (3.27) 45.96 31.19 - 20.17 (4.02) - (4.02) - 60% rts
St Morocco 78
at 40 InvaGen Pharmaceuticals Inc. USD 65.1750 0.00 1,545.75 4,035.37 2,489.62 - 1,176.30 (238.80) (23.09) (215.71) - 100% -
e U.S.A.
41 Exelan Pharmaceuticals Inc. USD 65.1750 3.26 (2.09) 196.27 195.10 - 358.95 17.95 4.75 13.20 - 100%
m U.S.A.
en 42 Cipla BioTec Private Limited H 1.0000 258.71 (160.12) 111.32 12.73 12.03 14.59 (25.71) 0.24 (25.95) - 100%
ts India
of 43 Cipla Middle East Fin
Su Pharmaceuticals FZ-LLC USD 65.1750 0.27 5.48 210.00 204.25 - 329.31 70.01 - 70.01 - 51% an
bsi U.A.E. cia
44 Cipla Philippines Inc. PHP 1.2469 1.18 (0.19) 1.10 0.11 - - (0.09) 0.00 (0.09) - 100%
di l
ari Philippines 45 Cipla Algérie DZD 0.5706 0.06 - 0.06 - - - - - - - St
es 40% Algeria at
an 46 Cipla BioTec South Africa e
(Pty) Ltd ZAR 5.5775 - - - - - - - - - - 100%
d m
South Africa 47 Cipla Health Limited 1.0000 4.11 86.38 149.42 58.93 41.01 120.18 (68.67) (17.11) (51.56)
As H en
so 100% India ts
cia 48 Cipla Technologies LLC USD 65.1750 3.26 (21.44) 13.26 31.44 - - (21.21) - (21.21) - 16
te 49 Anmarate Proprietary Limited ZAR 5.5775 0.00 0.73 0.75 0.02 - 0.28 (0.62) 0.12 (0.74) - 100% 7-
South Africa
s
*Converted using average rate

30
2
Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014 in Form AOC-1 related
An to Subsidiaries and Associate Companies
nu
al Part (b) : Associate
Re
po Shares of Associate held by the Company on the year end Profit/Loss for the year
rt Networth
20 attributable
17
- Latest Amount to Description Reason
Extend Considered Not
audited of Shareholding of why the
Sr. Name of No. of in Considered
Balance Investment as per how there associate
No. Associate of Holding Consolidation in
Sheet in latest is is not
shares % (J in Crore) Consolidation
Date Associate audited significant consolidated
(J in Balance influence
Crore) Sheet
(J in
Crore)
Associate
1 Stempeutics
Research Pvt.
Ltd. 31.03.2018 2,05,02,525 69.97 49.99 19.36 (2.78) - Note - i - M
aki
Note: ng
a
(i) There is significant influence due to percentage(%) of Share Capital. dif
fer
en
ce
For and on behalf of the Board of Directors to
pat
ien
ts.
Umang Vohra Samina Vaziralli Ou
Managing Director and Executive r
Global Chief Executive Officer Vice-Chairperson ins
pir
Kedar Upadhye Rajendra Chopra ati
Global Chief Financial Officer Company Secretary on
for
inn
ov
Mumbai, 22nd May, 2018 ati
on.
<IR> Integrated Reporting States
ACR Agitated Cell Reactor CLAP Cipla Leadership Ascent Programme
ACS American Cancer Society
ACTs Anti-malarial
ADR American Depository Receipts
AGM Annual General Meeting
AHU Air Handling Unit
AIDS Acquired Immunodeficiency Syndrome
ALS Amyotrophic Lateral Sclerosis
AMR Anti-Microbial Resistance
ANDA Abbreviated New Drug Application
ANVISA Agência Nacional de
Vigilância Sanitária, Brazil
APCD Air Pollution Control Devices
API Active Pharmaceutical Ingredient
AR Allergic Rhinitis
ARV Antiretroviral
ATFD Agitated Thin Film Dryers
AVD Alternate Vendor Development
B2B Business-to-business
BBBEE Broad-Based Black Economic
Empowerment
bps
basis points
BRR Business Responsibility Report
BS OHSAS British Standard Occupational Health
and Safety Assessment Series
CAGR Compound Annual Growth Rate
CAPA Corrective and Preventive Action
CCC Cash Conversion Cycle
CDSCO Central Drugs Standard Control
Organisation
CEG
Corporate EHS Guidelines
CETP Common Effluent Treatment Plants
CF Cystic Fibrosis
CFD Computational Fluid Dynamics
CFDA China Food and Drug Administration
CFL Compact Fluorescent Light
CFR Code of Federal Regulations
CGA Cipla Global Access
cGMP Current Good Manufacturing Practices
CHAI Clinton Health Access Initiative
CII Confederation of Indian Industry
CIS Commonwealth of Independent
CNS Central Nervous System
DQA Development Quality Assurance
CNV Cipla New Ventures
DQA Development Quality Assurance
CO2 Carbon Dioxide
DSC Differential Scanning Calorimetry
COPD Chronic Obstructive Pulmonary
DTM Direct To Market
Disease
EAC East African Countries
CORD Certificate course in Obstructive
airway Diseases EBITDA Earnings Before Interest,
Taxes, Depreciation, and
COSO Committee of Sponsoring
Amortisation
Organisations
EDQM European Directorate for the
CPC Cipla Palliative Care
Quality of Medicines
CQA Corporate Quality Assurance
EHS Environmental Health and Safety
CRF Chest Research Foundation
EHSMS EHS Management System
CRP Collaborative Registration Procedure
ELNEC End of Life Nursing
CSR Corporate Social Responsibility Education Consortium
CSV Computer System Validation EMA European Medicines Agency
CTA Clinical Trial Application EMS Environment Management System
CU Cipla University ERM Enterprise Risk Management
CVS Cardio Vascular System ESOP Employee Stock Option
DCGI Drug Controller General of India ETP Effluent Treatment Plant
DMFs Drug Master Files ETR Effective Tax Rate
DNDi Drugs for Neglected Diseases EU European Union
Initiative
FDA Food and Drug Administration
DoE Design of Experiments
FDC Fixed Dose Combination
DPCO Drug Price Control Order
303
Salient Features of Financial Statements of Subsidiaries and Associates / Glossary of Abbreviations
FICCI Federation of Indian Chambers IPF Idiopathic Pulmonary Fibrosis

of Commerce & Industry
FOPE Federation of Pharma Entrepreneurs
FPP Finished Pharmaceutical Products
FPSM Fluticasone Propionate Salmeterol
FRM Fraud Risk Management
FY Financial Year
GCFO Global Chief Financial Officer
GC-MS Gas Chromatography– Mass
Spectrometry
GCPO Global Chief People Officer
GDR Global Depository Receipt
GDUFA Generic Drug User Fee Act
GGC Global General Council
GHG Green House Gas
GJ Giga Joules
GMP Good Manufacturing Practices
GPG Good Practice Guides
GRI Global Reporting Initiative
GST Goods and Services Tax
HALMED Agency for Medicinal Products and
Medical Devices, Croatia
HCP Health Care Professionals
HEPA High Efficiency Particulate Arrestance
HIV Human Immunodeficiency Virus
HVAC Heating, Ventilation, and
Air Conditioning
IAPC Indian Association of Palliative Care
IBL India Business League
ICS Inhaled Cortico Steroid
IDMA Indian Drug Manufacturers
Association
IFC Internal Financial Controls
IFPMA International Federation of
Pharmaceutical Manufacturers and
Associations
IIRC International Integrated Reporting
Council
IND Investigational New Drug
Ind AS Indian Accounting Standards
INVIMA Instituto Nacional de Vigilancia
de
Medicamentos y Alimentos, Columbia
IP Intellectual Property
IPA Indian Pharmaceutical Association
IPD Integrated Product Development
IRMC Investment and Risk MHRA Medicines and Healthcare Products
Management Regulatory Agency
Committee
MIS Management information System
ISO International Organisation for
Mkt Market
Standardisation
MMV Medicines for Malaria Venture
IT Information Technology
MNC Multinational Corporation
KFDA Korea Food and Drug Administration
MS Market share
KL Kilo Liter
MT Metric Tons
KLD Kilo Liters per Day NAS New Active Substances
kWp Kilo Watt Peak NCD Non-Communicable Diseases
LABA Long-Acting Beta-Agonist NCE New Chemical Entity
LAMA Long-Acting Muscarinic Antagonists NDC Nationally Determined Contributions
LCMP Life Cycle Management Process NGO Non Governmental Organisation
LC-MS Liquid Chromatography– Mass NLEM National List of Essential Medicines
Spectrometry NMR Nuclear Magnetic Resonance
LDC Least Developed Countries NMRAs National Medicines Regulatory
LED Light Emitting Diode Authorities
LIMS Laboratory Information Management NPI New Products Introduction

System NPPA National Pharmaceutical Pricing
MAs Marketing Authorisations Authority
NRT Nicotine Replacement Therapy
MBA Masters in Business Administration
NVG National Voluntary Guidelines
MCC Medicines Control Council
OA Osteoarthritis
MEE Multiple Effect Evaporators
304
Annual Report 2017-18
Onco-BCG Oncology -Bacillus Calmette- SAHPRA South African Health Products
Guerin OPD Out Patient Department Regulatory
OPEX Operating Expense Authority SCI Spinal Cord Injury
OSD Oral Solid Dosages SEBI Securities and Exchange Board of
OTC Over The Counter India
p.a. per annum SEE Social, Environmental and Economic
PADER Periodic Adverse Drug Experience Single Single crystal X-ray Diffraction
Reports crystal XRD
PAH Pulmonary Arterial Hypertension SKU Stock Keeping Units
PAT Profit After Tax SOP Standard Operating Procedures
PEPFAR President's Emergency Plan For AIDS TB Tuberculosis

Relief TBI Traumatic Brain Injury
PHARMEXCIL Pharmaceuticals Export Promotion TCO Total Cost of Ownership
Council TDR Theoretical Drug Release
PKPB Pharmacokinetic study based on TGA Therapeutic Goods
people bioequivalence Administration, Australia
PMDA TRIPS Trade-Related Aspects of
Pharmaceuticals and Medical Devices Intellectual Property Rights
Agency, Japan
TSDF Treatment, Storage, and
Disposal Facilities
pMDI pressured Metered Dose Inhaler
UCPMP Uniform Code of Pharmaceutical
POSH Prevention of Sexual Harassment Marketing Practices
POTW Publicly Owned Treatment Works USFDA U S Food and Drug Administration
PXRD Powder X-Ray Diffractometer VFD Variable Frequency Drive
Q1 Quarter 1 VOCs Volatile Organic Compounds
Q2 Quarter 2 VTD Vacuum Tray Dryer
QbD Quality by Design VTFD Vertical Thin Film Dryer
QC Quality Control WC Working Capital
QMS Quality management System WHO World Health Organisation
R&D Research and Development WHO PQ World Health Organisation
RAS Rectal Artesunate Suppository Pre
RH Relative Humidity Qualified
WLAP Work-Life Assistance Programme
RO Reverse Osmosis
Y-o-Y Year on Year
RoE Return on Equity
ZAR South African Rand
SAGA South Africa, Sub-Saharan Africa
and Cipla Global Access
305
Cipla Limited
Registered Office: Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013
Phone: +9122 2482 6000, Fax: +9122 2482 6893, Email: cosecretary@cipla.com, Website: www.cipla.com
Corporate Identity Number: L24239MH1935PLC002380
Notice of Annual General Meeting
NOTICE is hereby given that the 82 nd Annual General 4. To re-appoint Ms. Samina Vaziralli as director liable to
Meeting of Cipla Limited will be held on Thursday, retire by rotation:
30th August, 2018 at 3.00 p.m. (IST) at Nehru Centre
“Resolved that Ms. Samina Vaziralli (DIN:
Auditorium, Discovery of India Building, Dr. Annie
00027923), who retires by rotation and being
Besant Road, Worli, Mumbai – 400 018 to transact
eligible offers herself for re-appointment, be
the following businesses:
and is hereby re-appointed as director of the
Company liable to retire by rotation.”
Ordinary Business(es):
To consider and if thought fit to pass resolution no. 1 to 4 Special Business(es):
as ordinary resolutions.
To consider and if thought fit to pass resolution no. 5
1. To receive, consider and adopt the standalone financial to 10 as special resolutions and resolution no. 11 and
statement of the Company for the financial year ended 12 as ordinary resolutions:
31st March, 2018 and the reports of the Board of
5. To alter the Memorandum of Association:
Directors and Auditors thereon:
“Resolved that pursuant to sections 4 and 13 of
“Resolved that the audited standalone financial
the Companies Act, 2013 and the rules made
statement of the Company for the financial
thereunder and other applicable provisions, if
year ended 31st March, 2018 and the reports of
any, and subject to any approvals or
the Board of Directors and Auditors thereon as
permissions as may be required from relevant
circulated to the members with the notice of
authorities and such modifications as may be
the Annual General Meeting and submitted to
prescribed by such authorities and which may
this meeting be and are hereby received,
be agreed to by the Board of Directors, the
considered and adopted.”
following Clauses of the Memorandum of
2. To receive, consider and adopt the consolidated Association, be and are hereby amended in the
financial statement of the Company for the financial following manner:
year ended 31st March, 2018 and the report of the
Auditors thereon: a) The existing Clause II be substituted by the
following new Clause II:
“Resolved that the audited consolidated
financial statement of the Company for the “The registered office of the Company will be
financial year ended 31st March, 2018 and the situated in the State of Maharashtra”
report of Auditors thereon as circulated to the b) The existing Clause III be divided into two
members with the notice of the Annual General parts that is (A) Main Objects to be pursued
Meeting and submitted to this meeting be and by the Company on its incorporation and (B)
are hereby received, considered and adopted.” Matters which are necessary for furtherance
of the Main Objects, and be substituted by the
3. To declare dividend on equity shares:
following Clause III:
“Resolved that on the recommendation of the
“(A) The Main objects to be pursued by the
Board of Directors a final dividend of H 3
Company on its incorporation are:
(Rupees Three only) per equity share of the
Company be and is hereby declared for the (1) To carry on in India or anywhere in the
financial year ended 31st March, 2018.” world, the business of manufacturing,
developing, producing, buying, selling,
importing,
Notice
exporting, trading (online or offline), manufacture, import, export or deal in artificial

agency, testing, distributing, consigning, eye and limb, prosthetics, corset, bandage,
stocking, registering, packing, marketing, crutches, wheelchairs and stretcher or carriage,
refining, processing of and generally and providers of all requisites for hospitals and
dealing in all types of (a) chemicals, patients.
pharmaceuticals, biopharmaceuticals,
bio-therapeutics, biochemicals, patent
medicines, drugs, materials and
supplements, ophthalmic products, all
types of active pharmaceutical
ingredients (API), biological products,
medicinal products, over the counter
drugs and products, biosimilars,
derivatives and by products thereof and
products to be made therefrom, (b)
healthcare, nutrition, dietary, wellness,
food, dairy, personal hygiene and other
products for health, beauty and
cosmetic purposes and (c) substances of
monoclonal antibodies, toilet requisites,
cleansing compounds, acids, salts, oils,
dyes, paints, pigments, varnishes, clinical
products, minerals, alkalis, tannins,
pesticides, industrial and other
preparations or any other similar
products relating to drug and allied
industries in any form including but not
limited to, essence, serum, dentifrice,
lotion, liquid, gaseous spray, aerosol,
extract, grease, cream, salve, ointment,
pomade, powder or unguents.
(2) To carry on in India or anywhere in the

world, the business of manufacturing,
buying, selling, importing, exporting,
trading (online or offline), testing,
distribution, stocking, registering,
packing, marketing, refining and generally
dealing in all types of surgical, medical,
dental and scientific equipments and
devices, package containers and bottles,
instruments and accessories, diagnostic
kits and re-agents diagnostic
equipments, healthcare aids, accessories
and instruments of similar varieties and
descriptions.
(3) To establish, run, maintain and operate

in India or anywhere in the world,
chemists and druggists shops,
dispensaries, hospitals, nursing homes,
diagnostic centres, mobile medical
service centres, medical camps,
medical education & training programs,
pathology centres, radiology centres,
factories, laboratories and to
03
(4) To carry on or provide services or takeover either whole or part of any
pertaining to testing of business, undertakings, units, assets,
products, chemicals, goodwill, patents, properties, rights,
pharmaceutical ingredients or liabilities of any person including firm,
items of similar nature, or to limited liability partnership, association
conduct clinical and bio- of persons, body corporate or any other
equivalence studies, or to entity, whether in India or abroad,
undertake tests and including by way of participation, in
experiments, scientific and bidding, e-tendering or auctioning in
technical investigations, relation to, inter-alia, distressed asset
analytical, research and sale or by any other mechanism
innovation work of all kinds and instituted by the Government for
descriptions in India or abroad in disposing off the assets including stressed
connection with the business of assets or otherwise and to conduct,
the Company. make or carry into effect any
(B) Matters which are necessary for

furtherance of objects specified in
Clause (III) (A) are:
(1) To promote, encourage, advise

and help indigenous industrial,
chemical and agricultural
enterprises or concern in India or
abroad, and to promote,
incorporate, register, establish,
set-up, form, dissolve, close,
wind-up any subsidiary, joint
venture, company, firm, society,
limited liability partnership,
association of persons, trusts,
body corporate or legal entity in
India or abroad and to pay for
all cost, including underwriting
and other commission, broker’s fee
and any other charges and
expenses connected therewith.
(2) To open, establish, operate,

close, dissolve branches, units
or agencies in India or abroad
and to apply for, obtain, procure
any statutory or other powers,
rights, concession, registration,
licence, permission, or
recognition for the Company or
its branches, units or agencies
in India or abroad, and to do all
such acts, deeds and things as
may be necessary for carrying
on any business or activity of
such branches, units, or
agencies of the Company under
the applicable laws or
regulations.
(3) To purchase, acquire, undertake
02
arrangement in regard to the liquidation, facilities from any bank, financial institution,
or dissolution, or winding up of the body corporate or any other person, whether
business of any such person(s). in India or abroad, at interest or otherwise,
in such a manner as the Company may think
(4) To enter into any scheme of
arrangement, amalgamation, merger,
demerger or restructuring and to
amalgamate, merge, demerge, or
otherwise restructure with any person
including firm, limited liability
partnership, association of persons,
body corporate, foreign company,
subsidiaries, associates, joint ventures or
any other entity.
(5) To enter into partnership, joint venture,

alliance, or any arrangement, including
arrangement of profit sharing, union of
interest, reciprocal concessions or co-
operation with any person, including
firm, body corporate, other entities,
whether incorporated or not, whether in
India or abroad, carrying on or engaged
in, or about to carry on or engage in,
any business or transaction, which the
Company is authorized to carry on or
engage in, or which can be carried on in
conjunction therewith or which is
capable of being conducted so as to
benefit the Company, directly or
indirectly and to acquire individually or
jointly the securities of any other body
corporate having objects altogether, or
in part similar, to these objects.
(6) To invest or deal with the moneys of the

Company (including the moneys not
immediately required) in such manner
as may from time to time be
determined and to invest, acquire,
subscribe, purchase, hold, sell, mortgage,
pledge, endorse, discount, assign, divest
or otherwise deal in any securities,
hybrid securities, commercial papers,
Government securities/bonds, fixed
deposits, units of mutual funds or
instruments of any kind or description
for strategic purposes or otherwise,
whether in India or abroad.
(7) To lend or deposit money or any other

property to any entity, person,
company or body corporate with or
without security.
(8) To borrow, raise or receive money or

avail fund based or non-fund based
fit, including by way of issuance of abroad, for supplying or procuring
securities, with or without any technical assistance, know-how in the
security or charge or encumbrance manufacturing, marketing, importing,
on the Company’s properties. exporting of any product.
(9) Without prejudice to generality of (12) To apply for and participate in any
the sub- clause mentioned herein tender, bidding process or registration
above, to mortgage, hypothecate, with Government bodies for the supply
pledge, or create charge on the of medicines or to otherwise acquire
whole or any part of the property, any Government contracts or
assets, rights, interest, lien, titles or concessions in relation to the supply of
revenue or profits of the Company, medicines and to
whether present or future,
including its uncalled capital or to
transfer or convey the same
absolutely or in trust and to give
the mortgage-holder, charge-
holder or pledge-holder, power to
sell, assign, exchange, grant leases,
licenses easements and improve,
manage, develop and turn to
account, or otherwise dispose of or
deal with in any manner the whole
or any part of the properties, assets,
investments, undertaking(s), rights,
concessions and effects of the
Company in such manner as the
Company may think appropriate
and to guarantee performance of
contracts or obligations of all
kinds.
(10) To enter into any arrangement

including agreement, contract or
memorandum of understanding
with any person including firm,
limited liability partnership, association
of persons, body corporate, any
Government or other authorities, or
any other entity, whether in India
or abroad, that may seem
conducive to the attainment of the
Company’s objects and to obtain any
rights, privileges, grant, subsidy,
concessions which the Company may
consider necessary or desirable for
obtaining, and carrying out or
complying with any such
arrangement.
(11) To negotiate and enter into

agreements, contracts, or
collaborate with any person
including individual, firm, limited
liability partnership, association of
persons, body corporate, or any
other entity, whether in India or
Notice
undertake and fulfil requirements on being business of the Company, for employees or
successfully awarded supply contracts. others.
(13) To apply for, register, purchase, or (16) To donate, give, gift, subscribe or
otherwise acquire, sell, dispose of, contribute or otherwise to assist in cash
transfer, exchange, use, exercise,
develop, protect, prolong and renew,
procure, grant license or permit use of
any patents, brevet d’ inventions,
formula, new product, trademarks, trade
names, designs, know-how, trade-secrets,
licences, concessions, or the like
conferring exclusive or non-exclusive or
limited right to use the same or any
secret or information as to any invention
or process of manufacture which may
seem capable or being used for the
purposes of the business, and to do all
such acts, deeds and things as may be
necessary in furtherance of the above.
(14) To provide advisory or customer

research and manufacturing services to
any person including firm, limited liability
partnership, association of person, body
corporate or any other entity, whether in
India or abroad, for establishment of
pharmaceutical, chemical or any
concern of similar nature.
(15) To fabricate, buy, purchase, acquire,

sell, provide, erect, construct, establish,
exchange, maintain, run, operate,
administer, dispose of, take on lease, hire
or otherwise deal in any estate or
interest and to take options over any
land, building, machineries, structures,
offices, factories, warehouses, godowns,
plants, equipment, carriages or other
properties, whether movable or
immovable and any rights or privileges,
including but not limited to occupational
health centres, gymnasiums, fitness
centres, play grounds, residential
buildings, commercial buildings, shops,
showrooms, workshops, places of
instruction or recreation clubs, creches,
playgrounds, schools, places of worships,
swimming pools, fire centres, treatment
plants, security establishments, water
reservoirs, sheds, channels, pumping
installations, generating installations,
pipelines, garages, storages, temporary or
permanent structures and accommodation
or premises of all descriptions, in India
or abroad, in connection with the
05
or in kind or to guarantee members and others.
money or property of any kind
and description, to any (21) To do all or any of the above things
charitable, benevolent, in India or any part of the world as
religious, political, scientific principal, agent, contractor, trustee or
institution, club, society, otherwise and either alone or in
research association, fund, conjunction with other(s) and to
university, college or members undertake the management of the other
and public in general or for such company or companies and to carry on
other useful objects, including the business, and to act as merchants,
incurring expenditure for traders, commission agents, adatias,
promoting and/or sponsoring selling agent, purchasing agent,
activities as a part of corporate muccadums, carriers, jatha merchants,
social responsibility. landing and forwarding agent, broker,
importers, and exporters, and to import,
(17) To remunerate any person export, buy, sell, barter, exchange, make
including firm, limited liability advances upon or otherwise deal in
partnership, association of
person, body corporate or any
other entity, whether in India or
abroad, for services rendered or
to be rendered in placing, or
assisting to place, or
guaranteeing the placing of any
of the shares in the Company’s
capital, or any debentures,
debenture-stock, or other
securities of the Company or in
the conduct of its business as
will be conducive to the
attainment of the objects of the
Company.
(18) To draw, buy, sell, make,

accept, endorse, encash,
discount, issue, negotiate,
assign, execute or otherwise
deal in promissory notes, bills
of exchange, cheques, drafts,
hundies, and other negotiable
instruments or commercial or
mercantile instruments.
(19) To open, close, modify or

operate bank accounts of all
kinds, including cash credit or
overdraft accounts with any bank,
financial institution, company,
shroffs, merchants, and other
eligible and competent entities
and to pay into and draw money
from such accounts and operate
such account.
(20)To accept gifts, bequests,

devices, subsidy, grant,
assistance and donations from
any Government, agency,
04
goods, produce, articles, and merchandise (27)To institute, conduct, defend or compound
of all kinds and description. any legal proceedings by or against the
Company or its holding, subsidiary or
(22)To advertise or adopt such means of associate, joint venture or affiliates or
making known the Company, its brand or officers thereof or otherwise concerning
its business activities or any articles or
goods traded in or dealt with by the
Company in any way as may be
expedient whether electronic, print,
digital or social media, press, public
places and theatres, radio, television,
circular, purchase and exhibition or work
of arts or interest, or by any other mode
including conducting of competitions,
exhibitions and giving of prizes, rewards
and donations and to print and publish,
or have printed and published, journals,
periodicals, newspapers, books, booklets,
pamphlets, handbills, and
advertisement materials.
(23)To settle, establish undertake and

execute any trust, the undertaking
whereof may seem desirable either
gratuitously or otherwise or appoint,
change, or remove trustees or amend
the trust deeds.
(24)To become member of any other bodies

or persons, associations, institutions, clubs,
societies, and bodies corporate
including companies limited by
guarantee whether formed for profit or
non-profit making activities.
(25)To provide for the welfare of the

employees or ex-employees of the
Company and its subsidiaries and the
spouse, widows, families or dependants
or connections of such employees by
building or contributing to the building of
houses or dwellings, or by grant of
money, pensions, gratuity, bonus,
payment towards insurance or other
payment or by creating from time to
time, subscribing or contributing to,
adding or supporting provident funds or
trusts or conveniences and by providing
medical and other attendance and other
assistance as the Company may think
appropriate.
(26)To distribute any of the properties of

the Company amongst the members in
specie or kind upon the winding up of the
Company.
their affairs and pay, satisfy or thereunder, and subject to any approvals or
compromise any claim made permissions as may be required from relevant
against the Company or any of its authorities and such modifications as may be
officers notwithstanding that the prescribed by such authorities and which may
claim may not be valid at law and be agreed to by the Board of Directors, the new
to initiate or refer or agree to refer set of draft articles contained in the Articles of
any claims, demands, disputes or Association of the Company, as published on
any other question by or against the website of the Company and submitted to
the Company, or in which the this
Company is interested or
concerned, to arbitration or
conciliation of any dispute present
or future, between the Company
and other party and to submit the
same to arbitration or conciliation
in India or abroad and to observe,
perform and do all acts, deeds,
matters and things to carry out or
enforce the awards.
(28) To do all such other things as are

incidental or conducive to the
attainment or in furtherance of the
objects specified in clause III(A) as
above.”
c) The existing Clause IV be substituted

by the following new Clause IV:
“The liability of the members is

limited and this liability is limited to
the amount unpaid, if any, on the
shares held by them.”
d) The existing Clause V be substituted

by the following new Clause V:
“The Authorised Share Capital of

the Company is H 175,00,00,000
(Rupees One Hundred Seventy-Five
Crores) divided into 875000000
(Eighty Seven Crores Fifty Lakhs
equity shares of H 2 (Rupees Two)
each.”
Resolved further that the Board of

Directors (including a Committee
thereof) and the Company Secretary be
and are hereby severally authorised to
do all such acts, deeds and things and
take all such steps as may be
necessary, proper or expedient to give
effect to the above resolution.”
6. To adopt new Articles of Association:
“Resolved that pursuant to sections 5 and

14 and other applicable provisions, if any, of
Notice
meeting, be and is hereby approved and foreign currency convertible bonds (the FCCBs),
adopted as the Articles of Association of the fully convertible debentures / partly convertible
Company in the place and to the exclusion and debentures, non-convertible debentures (the NCDs)
substitution of the existing Articles of
Association of the Company.
Resolved further that the Board of Directors

(including a Committee thereof) and the
Company Secretary be and are hereby severally
authorised to do all such acts, deeds and things
and take all such steps as may be necessary,
proper or expedient to give effect to the above
resolution.”
7. To authorise issuance of equity shares / other securities

convertible into equity shares up to H 2000 crore:
“Resolved that pursuant to the provisions of

sections 23, 41, 42, 62(1)(c) and other applicable
provisions, if any, of the Companies Act, 2013, as
amended (the Act) and the rules made
thereunder, the Foreign Exchange Management
Act, 1999, as amended, and rules and regulations
made thereunder, the Securities and Exchange
Board of India Act, 1992, as amended and rules
and regulations made thereunder, the enabling
provisions of the Memorandum and Articles of
Association of the Company, and in accordance
with the rules, regulations, guidelines,
notifications, circulars and clarifications issued
thereon from time to time by the Government
of India (GOI), the Reserve Bank of India (RBI)
and the Securities and Exchange Board of India
(SEBI) and/or any other competent authorities,
whether in India or abroad, and subject to
necessary approvals, permissions, consents and
sanctions of concerned statutory and other
authorities and subject to such conditions and
modifications as may be prescribed by any of
them while granting such approvals, permissions,
consents, authority and sanctions, and which
may be agreed to by the Board of Directors of
the Company (hereinafter referred to as the
Board, which term shall include any Committee
thereof, constituted by the Board to exercise
the powers conferred by this resolution),
consent of the Company is hereby granted to
the Board to create, offer, issue and allot
(including with provisions for reservation on
firm and/or competitive basis, of such part of
issue and for such categories of persons
including employees of the Company as may be
permitted), with or without a green shoe option,
such number of equity shares having face value
of H 2 each of the Company (Equity Shares),
global depository receipts (the GDRs),
American depository receipts (the ADRs),
07
along with warrants, with a right may be deemed appropriate by the Board in its
exercisable by the warrant holder to absolute discretion including the discretion to
exchange the said warrants with Equity determine the categories of Investors to whom
Shares and/or any other financial instruments the offer, issue and allotment shall be made to
convertible into Equity Shares (including the exclusion of other categories of Investors at
warrants, or otherwise) and/or any security the time of such offer, issue and allotment
convertible into Equity Shares and/or considering the prevailing market conditions and
securities linked to Equity Shares and/or other relevant factors and wherever necessary in
securities with or without detachable consultation
warrants with right exercisable by the
warrant holders to convert or subscribe to
Equity Shares (all of which are hereinafter
collectively referred to as Securities) or any
combination of Securities, at a later date,
in one or more tranches, whether Rupee
denominated or denominated in one or
more foreign currency(ies), in the course of
international and/or domestic offering(s) in
one or more foreign markets and/or
domestic market, of public and/ or private
offerings and/or qualified institutions
placement or any combination thereof,
through issue of prospectus and/or
placement document or other permissible /
requisite offer document to any eligible
person, including qualified institutional
buyers in accordance with Chapter VIII of
the Securities and Exchange Board of India
(Issue of Capital and Disclosure
Requirements) Regulations, 2009 (the SEBI
ICDR Regulations), or otherwise, foreign /
resident investors (whether institutions,
incorporated bodies, mutual funds,
individuals or otherwise), venture capital
funds (foreign or Indian), alternate
investment funds, foreign institutional
investors, foreign portfolio investors,
qualified foreign investors, Indian and/or
multilateral financial institutions, mutual
funds, non-resident Indians, stabilising
agents, pension funds and / or any other
categories of investors, whether they be
holders of Equity Shares of the Company or
not (collectively called the Investors) as may
be decided by the Board in its discretion
and permitted under applicable laws and
regulations, of an aggregate amount not
exceeding H 2000 crore or equivalent
thereof, in one or more foreign
currency(ies), inclusive of such premium as
may be fixed on such Securities by offering
the Securities at such time or times, at
such price or prices, at a discount or
premium to market price or prices
permitted under applicable laws in such
manner and on such terms and conditions
including security, rate of interest etc., as
06
with lead manager(s) and/or underwriter(s) issue and the premium, if any, shall stand reduced
and/ or other advisor(s) either in foreign pro tanto;
currency(ies) or equivalent Indian Rupees
inclusive of such premium, as the Board in its (b) in the event the Company is making a rights
absolute discretion may deem fit and offer by issue of Equity Shares prior to the
appropriate.
Resolved further that in the event that Equity

Shares are issued to qualified institutional
buyers under Chapter VIII of the SEBI ICDR
Regulations, the relevant date for the purpose
of pricing of the Equity Shares shall be the date
of the meeting in which the Board decides to
open the issue of Equity Shares and the Equity
shares shall be issued at such price being not
less than the price determined in accordance
with the pricing formula provided under
Chapter VIII of the SEBI ICDR Regulations.
Resolved further that in the event that

convertible securities and/or warrants which are
convertible into Equity Shares of the Company
are issued along with non-convertible debentures
to qualified institutional buyers under Chapter
VIII of the SEBI ICDR Regulations, the relevant
date for the purpose of pricing of such
securities, shall be the date of the meeting in
which the Board decides to open the issue of
such convertible securities and/or warrants
simultaneously with non-convertible debentures and
such securities shall be issued at such price
being not less than the price determined in
accordance with the pricing formula provided
under Chapter VIII of the SEBI ICDR
Regulations.
Resolved further that the Board may, in

accordance with applicable law, also offer a
discount of not more than 5% or such
percentage as permitted under applicable law
on the price calculated in accordance with the
pricing formula provided under the SEBI ICDR
Regulations.
Resolved further that the issue to the holders

of the Securities, which are convertible into or
exchangeable with Equity Shares at a later date
shall be, inter alia, subject to the following terms
and conditions:
(a) in the event the Company is making a bonus

issue by way of capitalisation of its profits or
reserves prior to the allotment of the Equity
Shares, the number of Equity Shares to be
allotted shall stand augmented in the same
proportion in which the equity share capital
increases as a consequence of such bonus
allotment of the Equity Shares, the Shares (Through Depository Receipt Mechanism)
entitlement to the Equity Shares will Scheme, 1993, as amended and other applicable
stand increased in the same proportion pricing provisions issued by the Ministry of
as that of the rights offer and such Finance.
additional Equity Shares shall be
offered to the holders of the Securities at Resolved further that without prejudice to the
the same price at which the same are generality of the above, subject to applicable
offered to the existing shareholders; laws and subject to approvals, consents,
permissions, if any, of any governmental
(c) in the event of merger, amalgamation, body, authority or
takeover or any other reorganisation or
restructuring or any such corporate
action, the number of Equity Shares,
the price and the time period as
aforesaid shall be suitably adjusted;
and
(d) in the event of consolidation and/or

division of outstanding Equity Shares
into smaller number of Equity Shares
(including by way of stock split) or
reclassification of the Securities into
other securities and/or involvement in
such other event or circumstances
which in the opinion of concerned
stock exchange requires such
adjustments, necessary adjustments
will be made.
Resolved further that in pursuance of the

aforesaid resolution the Equity Shares that
may be issued by the Company (including
issuance of the Equity Shares pursuant to
conversion of any Securities, as the case
may be in accordance with the terms of the
offering) shall rank pari passu with the
existing Equity Shares of the Company in
all respects.
Resolved further that in the event the

Securities are proposed to be issued as ADRs
or GDRs, the relevant date for the purpose of
pricing the Securities shall be the date of
the meeting in which the Board decides to
open the issue of such Securities in
accordance with the Depository Receipts
Scheme, 2014, as amended and other
applicable pricing provisions issued by the
Ministry of Finance.
Resolved further that in the event the

Securities are proposed to be issued as
FCCBs, the relevant date for the purpose of
pricing the Securities shall be the date of
the meeting in which the Board decides to
open the issue of such Securities in
accordance with the Issue of Foreign
Currency Convertible Bonds and Ordinary
Notice
regulatory institution including any conditions desirable and to obtain any approvals, permissions,
as may be prescribed in granting such sanctions which may be necessary or desirable, as it may
approvals or permissions by such governmental deem fit or as the Board may suo moto decide in
body, authority or regulatory institution, the
Board be and is hereby authorised to finalise the
structure of the proposed Securities and all the
terms and conditions in respect thereof and
further, the Board, in its absolute discretion, be
and is hereby authorised to dispose of such
Securities that are not subscribed in such
manner as it may deem fit.
Resolved further that the Board be and is

hereby authorised to negotiate, modify, sign,
execute, register, deliver including sign any
declarations required in connection with the
private placement offer letter, information
memorandum, draft prospectus, prospectus,
draft offer document, abridged prospectus,
offer letter, offer document, offer circular or
placement document for issue of the
Securities, term sheet, issue agreement,
registrar agreement, escrow agreement,
underwriting agreement, placement agreement,
consortium agreement, trustee agreement,
trust deed, subscription agreement, purchase
agreement, agency agreement, agreements
with the depositories, security documents, and
other necessary agreements, memorandum of
understanding, deeds, general undertaking/
indemnity, certificates, consents, communications,
affidavits, applications (including those to be
filed with the regulatory authorities, if any) (the
Transaction Documents) (whether before or
after execution of the Transaction Documents)
together with all other documents, agreements,
instruments, letters and writings required in
connection with, or ancillary to, the Transaction
Documents (the Ancillary Documents) as may
be necessary or required for the aforesaid
purpose including to sign and/or dispatch all
forms, filings, documents and notices to be
signed, submitted and/or dispatched by it
under or in connection with the documents to
which it is a party as well as to accept and
execute any amendments to the Transaction
Documents and the Ancillary Documents and
further to do all such other acts, deeds
mentioned herein as they may deem necessary
in connection with the issue of the Securities in
one or more tranches from time to time and
matters connected therewith and the utilisation
of the issue proceeds in such manner as may be
determined by the Board, subject however, to
applicable laws, and to take such actions or
give such directions as may be necessary or
09
its absolute discretion in the best currency(ies), up to an aggregate amount not
interests of the Company.” exceeding H 2000 crore or equivalent thereof,
in one or more foreign currency(ies)
8. To authorise issuance of debt securities upto (collectively, the Eligible Debt Securities) either
H 2000 crore:
on a private placement basis or pursuant to a
“Resolved that pursuant to the public issue of such Eligible Debt Securities to
provisions of sections 23, 42, 71 and eligible investors whether onshore or offshore
other applicable provisions, if any, of to any number of such eligible investors as
the Companies Act, 2013, as amended permitted by applicable laws (such eligible
(the Act), and the rules made investors shall be hereinafter referred to as the
thereunder, the Foreign Exchange Investors), who would be willing to invest in or
Management Act, 1999, as amended, subscribe to such Eligible Debt Securities, at
and rules and regulations made such time or times and on such terms and
thereunder, the Securities and conditions including issue price (inclusive of
Exchange Board of India Act, 1992, such discount or premium to market price or
as amended and rules and prices), security, rate of
regulations made thereunder, the
enabling provisions of the
Memorandum and Articles of
Association of the Company, and in
accordance with the rules, regulations,
guidelines, notifications, circulars and
clarifications issued thereon from
time to time by the Government of
India (GOI), the Reserve Bank of India
(RBI) and the Securities and Exchange
Board of India (SEBI) and/ or any other
competent authorities, whether in
India or abroad, and subject to
necessary approvals, permissions,
consents and sanctions of concerned
statutory and other authorities (if
required) and subject to such
conditions and modifications as may be
prescribed by any of them while
granting such approvals, permissions,
consents and sanctions and which may
be agreed to by the Board of
Directors of the Company
(hereinafter referred to as the Board,
which term shall include any
Committee thereof, constituted by
the Board to exercise the powers
conferred by this resolution), consent
of the Company is hereby granted to
the Board to create, offer, issue and
allot secured / unsecured, fully paid,
listed / unlisted, rated / unrated,
redeemable
/ non-redeemable, transferable / non-
transferable,
senior / subordinated non-convertible
debentures (including in form of bonds
or otherwise) or bonds in one or more
series and/or in one or more
tranches, whether denominated in
Indian Rupee and/or foreign
08
interest, tenure, end use of proceeds, etc., as Documents (the Ancillary Documents) as may be
may be decided by the Board at its absolute necessary or required for the aforesaid purpose
discretion, considering the prevailing market including to sign and/or dispatch all forms, filings,
conditions, other relevant factors and in documents and notices to be signed, submitted
accordance with the applicable laws. and/or dispatched
Resolved further that subject to the

Memorandum and Articles of Association of the
Company, and the overall limit prescribed
under the law upto which the Board may
mortgage or create charge on the movable and
immovable properties and receivables of the
Company, the Board be and is hereby
authorised to create a charge (if so required)
by way of mortgage, hypothecation, pledge or
any other security interest over such assets of
the Company (including movable assets,
immovable assets and receivables of the
Company), and execute all documents in
connection therewith, as may be determined by
the Board, in connection with the Eligible Debt
Securities to be offered, issued and allotted by
the Company.
Resolved further that the Board be and is

hereby authorised to finalise all the terms and
conditions and the structure of the proposed
Eligible Debt Securities and further to
negotiate, modify, sign, execute, register,
deliver including sign any declarations required
in connection with the private placement offer
letter, information memorandum, draft
prospectus, prospectus, draft offer document,
abridged prospectus, offer letter, offer
document, offer circular or placement
document for issue of the Eligible Debt
Securities, term sheet, issue agreement, registrar
agreement, escrow agreement, Exchange(s)
underwriting agreement, placement agreement,
consortium agreement, trustee agreement,
trust deed, subscription agreement, purchase
agreement, agency agreement, agreements
with the depositories, uniform listing
agreement with the stock exchange (for the
Eligible Debt Securities), the security
documents and other necessary agreements,
memorandum of understanding, deeds,
general undertaking/ indemnity, certificates,
consents, communications, affidavits,
applications (including those to be filed with
the regulatory authorities, if any) (the
Transaction Documents) (whether before or
after execution of the Transaction Documents)
together with all other documents, agreements,
instruments, letters and writings required in
connection with, or ancillary to, the Transaction
by it under or in connection with the the financial year ending 31st March, 2019, be
documents to which it is a party as well as paid a remuneration of H 11,00,000 (Rupees
to accept and execute any amendments to Eleven Lakhs only), plus applicable taxes and
the Transaction Documents and the reimbursement of out of pocket expenses.
Ancillary Documents and further to do all
such other acts, deeds mentioned herein
as they may deem necessary in connection
with the issue of the Eligible Debt Securities
in one or more tranches from time to time
and matters connected therewith and the
utilisation of the issue proceeds in such
manner as may be determined by the Board,
subject however, to applicable laws, and to
take such actions or give such directions as
may be necessary or desirable and to
obtain any approvals, permissions, sanctions
which may be necessary or desirable, as it
may deem fit or as the Board may suo
moto decide in its absolute discretion in
the best interests of the Company.”
9. To approve the continuation of Dr. Y. K. Hamied

as director:
“Resolved that pursuant to regulation 17

of the Securities and Exchange Board of
Requirements) Regulations, 2015 and other
applicable provisions, if any, approval of the
members of Company be and is hereby
accorded for continuation of Dr. Y. K.
Hamied (DIN: 00029049) as director of the
Company not liable to retire by rotation.”
10. To approve the continuation of Mr. M. K. Hamied

as director:
“Resolved that pursuant to regulation 17

of the Securities and Exchange Board of
Requirements) Regulations, 2015 and other
applicable provisions, if any, approval of the
members of Company be and is hereby
accorded for continuation of Mr. M. K.
Hamied (DIN: 00029084) as director of the
Company liable to retire by rotation.”
11. To ratify remuneration of the cost auditors for

the financial year 2018-19:
“Resolved that pursuant to section 148

and other applicable provisions, if any, of
the Companies Act, 2013 and the rules
made thereunder, Mr. D. H. Zaveri, the Cost
Auditor appointed by the Board of
Directors of the Company to audit the cost
records maintained by the Company for
Resolved further that the Board of Directors be enclosed herewith, to attend the AGM along with a
and is hereby authorised to do all such acts, valid identity proof such as the PAN card/passport/
deeds and things and take all such steps as AADHAAR card/driving license etc.
may be deemed necessary, proper or expedient
to give effect to the above resolution.”
12. To pay commission to non-executive directors:
“Resolved that pursuant to regulation 17 and

other applicable provisions of the Securities
and Exchange Board of India (Listing
Regulations, 2015 and applicable provisions of
thereunder, with effect from 1st April, 2018, the
non-executive directors of the Company be
paid such remuneration (which shall be in
addition to the sitting fees paid to the directors
pursuant to section 197(5) of the Companies
Act, 2013), as the Board of Directors (including
a Committee thereof) may, from time to time
NOTES:
1. A MEMBER ENTITLED TO ATTEND AND
VOTE AT THE ANNUAL GENERAL MEETING
(AGM) IS ENTITLED TO APPOINT A PROXY
TO ATTEND AND VOTE ON POLL INSTEAD OF
HIMSELF AND A PROXY IN ORDER TO BE
EFFECTIVE NEED NOT BE A MEMBER OF THE
COMPANY. A person can act as a proxy on
behalf of members not exceeding fifty and
holding in the aggregate not more than ten
percent of the total share capital of the
Company carrying voting rights. A member
holding more than ten percent of the total share
capital of the Company carrying voting rights
may appoint a single person as a proxy and
such person shall not act as a proxy for any
other person or shareholder.
A proxy form is enclosed with this Notice.

Proxies, in order to be effective, should be
deposited at the Registered Office of the
Company not later than 48 hours before the
commencement of the AGM. Proxies submitted
on behalf of limited companies, societies, etc.
must be supported by appropriate resolution or
authority, as applicable.
2. Members/proxies/authorised representatives are

requested to bring duly filled Attendance Slip,
1
Notice
determine, provided however that, the Limited.

aggregate remuneration for any financial
year shall not exceed one percent of the 6. Members holding shares in physical form are
net profits of the Company as computed requested to forward all applications for
in the manner laid down in section 198 transfers and all other shares-related
of the Companies Act, 2013. correspondence (including intimation for
change of address) to the Share Transfer
Resolved further that the Board of Agents of the Company at the following address:
Directors be and is hereby authorised to
finalise the terms and periodicity of
payments, lay down policy, and to do
all such acts, deeds and things as may
be deemed necessary, proper or
expedient to give effect to the above
resolution.”
By Order of the Board of the

Directors
Date: 22nd May, 2018 Rajendra Chopra

Place: Mumbai Company Secretary
3. The statement pursuant to section 102 of

the Companies Act, 2013 (the Act) is
annexed hereunder and forms part of the
Notice. As required under Secretarial
Standard – 2 and regulations 26(4) and
36(3) of the SEBI (Listing Obligations and
Disclosures Requirements) regulations,
2015 (Listing Regulations), the relevant
information of directors is enclosed as
Annexure 1.
4. The Register of Members and the Share

Transfer Books of the Company will
remain closed from Thursday, 16th August,
2018 to Thursday, 30th August, 2018 both
days inclusive.
5. The dividend for the year ended 31st

March, 2018 as recommended by the
Board, if approved at the AGM, will be
paid to those members whose name
will appear in the Company’s Register
of Members on close of Tuesday, 14th
August, 2018. In respect of shares held in
dematerialised form, the dividend will be
payable based on beneficial ownership
as per details furnished by National
Securities Depository Limited and
Central Depository Services (India)
1
Karvy Computershare Private Limited of shares.
(Unit: Cipla Limited)
Karvy Selenium Tower B, Plot No.: 31 & 32, 10. All unclaimed dividends up to the financial year
Gachibowli, Financial District, Nanakramguda, ended 31st March, 1995 have been transferred to
Serilingampally, Hyderabad, Telangana – 500 032 the General Revenue Account of the Central
Tel: (040) 6716 2222 / 6716 1511; Fax: (040) 2300 1153 Government. Members who have not encashed
7. Members holding shares in dematerialised form

may please note that, in accordance with the
direction of Stock Exchanges, the bank details
as furnished by the respective Depositories will
be used for the purpose of distribution of
dividend. In the absence of electronic credit
facility, the bank account details, if available, will
be printed on the dividend warrants. Members
holding shares in dematerialised form must give
instructions regarding bank accounts in which
they wish to receive dividend to their
Depository Participants. The Company or the
Share Transfer Agents will not act on any direct
request from such members for change/deletion
in such bank details.
8. Members can nominate a person in respect of

all the shares held by them singly or jointly.
Members holding shares in physical form can
avail the nomination facility by filling Form No.
SH-13 in duplicate with the Share Transfer
Agents which, on request will supply blank
forms. Members holding shares in the
dematerialised form may contact the
Depository Participant for recording nomination
in respect of their shares. Members who hold
shares in the single name are advised, in their
own interest, to avail of the nomination facility.
9. Members may please note that Securities and

Exchange Board of India (SEBI) has made
Permanent Account Number (PAN) as the sole
identification number for all participants
transacting in the securities market, irrespective
of the amount of such transactions. SEBI has
also mandated that for securities market
transactions and off market/ private
transactions involving transfer of shares in
physical form, it shall be necessary for the
transferee(s) as well as transferor(s) to furnish
copy of PAN card to the Company/Share Transfer
Agents for registration of such transfer of
shares.
Members may please note that SEBI has also

made it mandatory for submission of PAN in the
following cases, viz. (i) deletion of name of the
deceased shareholder(s), (ii) transmission of
shares to the legal heir(s) and (iii) transposition
the dividend warrants for the said period(s) As per the provisions of section 125 of the Act
are requested to claim the amount from the and the IEPF Rules, members whose unclaimed
Registrar of Companies, Maharashtra, CGO dividend, unclaimed redemption amount of
Complex, CBD Belapur, Navi Mumbai - 400 preference shares, unclaimed sale proceeds of
614, by submitting an application in Form No. fractional shares, equity shares have been
II. transferred to IEPF
Pursuant to the provisions of sections 124 and

125 of the Act and Investor Education and
Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 (IEPF Rules)
(including the provisions of sections 205A and
205C of the Companies Act, 1956), dividends
that remain unclaimed for a period of seven
years are mandatorily required to be
transferred to Investor Education and
Protection Fund (IEPF). Accordingly,
unclaimed dividends from the financial year
ended 31st March, 1996 till 31st March, 2010
and interim dividend for the financial year ended
31st March, 2011 have been transferred to IEPF.
Members may note that unclaimed final

dividend for the financial year ended 31st
March, 2011 shall become due for transfer to
IEPF on 26th September, 2018. Those members,
who have not encashed the said dividends are
requested to claim it from the Share Transfer
Agents immediately. Such of those members
who have not so far claimed their dividend for
the subsequent financial years are also
advised to claim it from the Share Transfer
Agents.
As per the provisions of section 124(6) of the Act

read with the IEPF Rules as amended, all shares
in respect of which dividend had remained
unclaimed for seven consecutive years or
more were transferred by the Company to
IEPF in November 2017. The Company had
sent individual communication to the concerned
shareholders whose shares were liable to be
transferred to IEPF.
The list of concerned shareholders is also

available on the Company’s website i.e.
www.cipla.com under Investor Information
section. Please note that no claim shall lie
against the Company in respect of unclaimed
dividend and shares transferred to IEPF
pursuant to the said Rules.
Members may note that shares in respect of

which dividend has remained unclaimed for
the last consecutive seven years or more shall
become due for transfer to IEPF on 26th
September, 2018.
may claim the refund by making an application to cast their vote by remote e-voting shall be able
the IEPF Authority in Form No. IEPF-5 available on to vote at the AGM through InstaPoll.
the website www.iepf.gov.in.
11. The Ministry of Corporate Affairs (MCA) has

taken a ’Green Initiative in Corporate
Governance’ by allowing companies to send
documents to their shareholders in electronic
mode. To support this green initiative and to
receive communications from the Company in
electronic mode, members who have not
registered their e-mail addresses and are
holding shares in physical form are requested
to contact the Share Transfer Agents of the
Company and register their email-id. Members
holding shares in dematerialised form are
requested to contact their Depository
Participant. Members may please note that
notices, annual reports, etc. will be available on
the Company’s website – www.cipla.com and the
same shall also be available for inspection,
from
11.00 a.m. to 1.00 p.m., at the Registered Office
of the Company. Members will be entitled to
receive the said documents in physical form
free of cost at any time upon request.
12. Members having any question on financial

statements or on any agenda item proposed in
this Notice are requested to send their queries
along with their Folio No. or DPID/Client ID, at
least 10 (ten) days prior to the date of the AGM
vide email on cosecretary@cipla.com or send
the queries at the Company’s Registered Office
address to enable the Company to collect the
relevant information and redress the queries.
13. Voting through Electronic means:
i. In terms of the provisions of section 108

and other applicable provisions, if any, of
the Act read with rule 20 of the Companies
(Management and Administration) Rules,
2014, as amended and regulation 44 of
Listing Regulations, the Company is pleased
to provide to its members, facility to
exercise their right to vote on resolutions
proposed to be passed at the AGM by
electronic means. The members may cast
their votes using an electronic voting
system from a place other than the venue of
the AGM (remote e-voting).
ii. The facility for voting through electronic

voting system shall be made available at
the venue of the AGM (InstaPoll) and the
members attending the AGM who have not
iii. The members who have cast their vote Example for NSDL:
by remote e-voting may also attend the MYEPWD<SPACE>IN12345671234567
AGM but shall not be entitled to cast
Example for CDSL:
their vote again.
MYEPWD<SPACE>1234567812345678
iv. The Board of Directors of the Company
has appointed Karvy Computershare
Private Limited (Karvy) as the Agency to
provide e-voting facility.
v. The Board of Directors of the Company

has appointed Mr. B Narasimhan,
Practicing Company Secretary, and
failing him, Mr. Prakash Pandya,
Practicing Company Secretary as the
Scrutinizer to scrutinize the remote e-
voting process and InstaPoll in a fair
and transparent manner and they have
communicated their willingness to be
appointed and will be available for same
purpose.
vi. Voting rights shall be reckoned on the

paid- up value of shares registered in
the name of the member / beneficial
owner (in case of electronic
shareholding) as on the cut-off date
i.e. Thursday, 23rd August, 2018.
vii. A person, whose name is recorded in the

Register of Members or in the Register
of Beneficial Owners maintained by the
Depositories as on the cut-off date i.e.
Thursday, 23rd August, 2018 only shall be
entitled to avail the facility of remote e-
voting / InstaPoll.
viii. In case of joint holders, such joint holder

whose name stands first or higher in
the Register of Members alone will be
entitled to vote. However, other or others
of the joint holders will be entitled to
attend the AGM.
ix. Any person who becomes a member of

the Company after dispatch of the
Notice of AGM and holds shares as on
the cut-off date i.e. Thursday, 23rd
August, 2018, may obtain the User ID and
password in the manner as mentioned
below:
a. If the mobile number of the

member is registered against Folio
no. or DPID/ Client ID the member
may send SMS: MYEPWD<space> E-
Voting Event Number + Folio no. or
DP ID Client ID to 9212993399.
Example for Physical:
c. After entering these details
MYEPWD<SPACE>XXXX1234567890
appropriately, click on ’LOGIN’.
b. If e-mail address or mobile number of
d. If you are logging in for the first time,
the member is registered against Folio
you will reach password change menu,
no. or DPID/Client ID then on the home wherein you are required to mandatorily
page of https://evoting.karvy.com, the change your password. The new
member may click ’Forgot Password’ and password shall comprise minimum 8
enter Folio no. or DPID/Client ID and characters with at least one upper case
PAN to generate a password. (A-Z), one lower case (a-z), one numeric
(0-9) and one special character (@,#,
c. Member may call Karvy’s toll free
$,etc.). The system will prompt you to
number 1800 345 4001.
change your password and update your
d. Member may send an e-mail request to contact details like mobile number,
evoting@karvy.com. email ID, etc., on first login. You may
also enter a secret question and answer
If the member is already registered with of your choice to retrieve your password
Karvy e-voting platform then he can use in case you forget it. It is strongly
his existing User ID and password for recommended that you do not share
casting the vote through remote e- your password with any other person
voting. and that you take utmost care to keep
your password confidential.
x. The remote e-voting facility will be available
during the following period: e. You need to login again with the new
credentials.
Commencement of remote e-voting: From 9.00 a.m.
(IST) on Monday, 27th August, 2018 f. On successful login, the system will
prompt you to select the E-Voting Event
End of remote e-voting: Up to 5.00 p.m. (IST) on Number for Cipla Limited.
Wednesday, 29th August, 2018
g. On the voting page enter the number of
The remote e-voting will not be allowed beyond shares (which represents the number of
the aforesaid date and time and the voting votes) as on the cut-off date under ’FOR
module shall be disabled by Karvy upon expiry / AGAINST’ or alternatively, you may
of aforesaid period. partially enter any number in ’FOR’ and
partially in ’AGAINST’ but the total
xi. A person who is not a member as on the cut-off number in ’FOR / AGAINST’ taken
date should treat this Notice for information together should not exceed your total
purpose only. shareholding as on the cut- off date.
You may also choose the option
xii. Instructions and other information relating to
’ABSTAIN’ and the shares held will not
remote e-voting: be counted under either head.
1. A. In case a member receives an e-mail from
h. Members holding shares under multiple
Karvy:
folios / demat accounts shall choose the
a. Launch internet browser by typing the URL: voting process separately for each of
https://evoting.karvy.com. the folios / demat accounts.
b. Enter login credentials (i.e. User ID and i. Voting has to be done for each item of
the Notice separately. In case you do
password mentioned in the email). The
not desire to cast your vote on any
Electronic Voting Event Number + Folio
specific item it will be treated as
No. or DP ID Client ID will be your User
abstained.
ID. However, if you are already
registered with Karvy for e-voting, you j. You may then cast your vote by
can use your existing User ID and selecting an appropriate option and click
password for casting your vote. on “Submit”.
k. A confirmation box will be displayed. Click
’OK’ to confirm else ’CANCEL’ to modify.
Once you confirm, you will not be allowed
to modify your vote. During the voting
period,
members can login any number of times
Nanakramguda, Serilingampally,
till they have voted on the resolution(s).
Hyderabad, Telangana - 500 032
l. Corporate / Institutional Members (i.e. Telephone Number: (040) 6716 2222
other than Individuals, HUF, NRI, etc.) Email: subrahmanyam.mrv@karvy.com
are also required to send scanned
certified true copy (PDF Format) of the 4. The Scrutiniser’s decision on the validity of
Board Resolution the votes shall be final and binding.
/ Power of Attorney / Authority Letter,
etc., together with attested specimen 5. The Scrutiniser, after scrutinising the votes
signature(s) of the duly authorised cast through remote e-voting and InstaPoll,
representative(s), to the Scrutiniser at e- not later than 48 hours from the conclusion
mail ID: ciplascrutinizer@ gmail.com. They of the AGM, make a scrutinizer’s report and
may also upload the same in the e-voting
submit the same to the Chairman or any
module in their login. The scanned
authorised person who shall countersign
image of the abovementioned
the same.
documents should be in the naming
format ’Corporate Name_EVENT NO’.
6. The results on resolutions shall be declared
B. In case a member receives physical copy of the on or after the AGM of the Company and
Notice of AGM: the resolutions will be deemed to be passed
on the AGM date subject to receipt of the
a. Launch internet browser by typing the URL:
https://evoting.karvy.com requisite number of votes in favour of the
resolutions.
b. Enter the login credentials (i.e. User ID
and password mentioned in the electronic 7. The results declared along with the
voting form). scrutiniser’s report shall be placed on the
website of the Company i.e. www.cipla.com
c. Please follow all steps from (c) to (l) as
under Investor Information section and on
mentioned in 1A above, to cast your vote.
the website of Karvy
2. Once the vote on a resolution is cast by a i.e. https://evoting.karvy.com. The results shall
member, the member will not be allowed to also be communicated to the Stock Exchanges.
change it subsequently or cast the vote
again. 8. The Register of Directors and Key Managerial
Personnel and their shareholding maintained
3. In case of any query / grievance pertaining
under section 170 of the Act, Register of
to electronic voting, please visit Help & FAQs
section available at Karvy’s website Contracts or Arrangements in which directors
https://evoting. karvy.com or contact Mr. MRV are interested under section 189 of the Act, the
Subrahmanyam. Contact details of Mr. MRV Certificate from Auditors of the Company under
Subrahmanyam are as follows: regulation 13 of the SEBI (Share Based
Employee Benefits) Regulations, 2014 and other
Mr. MRV Subrahmanyam
relevant documents referred to in the Notice
General Manager
Karvy Computershare Private Limited and the accompanying statement are open
(Unit: Cipla Limited), for inspection at the Registered Office of the
Karvy Selenium Tower B, Plot No.: 31 & 32, Company on all working days (Monday to
Gachibowli, Financial District, Friday) between 11.00 a.m. to 1.00 p.m. up to
and including the date of the AGM and will
also be available for inspection at the venue
of the AGM.
STATEMENT SETTING OUT ALL MATERIAL FACTS CONCERNING THE BUSINESS(ES) TO BE
DEALT AT THE ENSUING ANNUAL GENERAL MEETING AS STATED IN THE NOTICE DATED
22nd MAY, 2018:
[Pursuant to Section 102 of the Companies Act, 2013]
In case members have any query or question on the

Item No. 1 and 2: Ordinary Resolution financial statements, they are requested to send the
queries / questions to the Company Secretary at least
In terms of section 129 of the Companies Act, 2013, 10 days in advance to enable the management to
the Company submits its standalone and respond to these queries objectively at the AGM.
consolidated financial statements for the financial year
under review for adoption by shareholders at the
annual general meeting.
The Board of Directors (the Board), on the

recommendation of the Audit Committee, has
approved the standalone and consolidated financial
statements for the year ended 31st March, 2018.
Detailed elucidations of the financial statements
have been provided under various sections of the
Annual Report, including the Board’s Report and
Management Discussion and Analysis Report, and
under the Financial Capital section of the Annual
Report.
The standalone and consolidated financial statements

of the Company along with the reports of the Board
of Directors and Auditors thereon:
• have been sent to the members on their

registered email address and via courier/post,
in case the members haven’t registered their
email id or if they have requested for a printed
copy of the same;
• have been uploaded on the website of the

Company,
i.e. www.cipla.com under Investor Information
section and on the website of Karvy
Computershare Private Limited, i.e.
https://evoting.karvy.com;
• will be laid before the ensuing Annual General

Meeting (AGM) for adoption by the members;
and
• will be available for inspection by members at

the Registered Office of the Company between
11:00 a.m. to 1:00 p.m. on all working days from
the date of dispatch of this Notice up to the
date of the AGM of the Company.
The auditor has issued an unmodified report on the

financial statements and has confirmed that both,
standalone and consolidated financial statements
represent true and fair view of the state of affairs of
the Company.
Ms. Samina Vaziralli, Executive Vice-Chairperson and
The Board recommends the resolutions at Director of the Company retires by rotation at the
Item Nos. 1 and 2 for approval of the members
of the Company.
None of the directors and key managerial

personnel and their relatives are in any way,
financially or otherwise, interested or
concerned in these resolutions except to the
extent of their shareholding in the Company.
Item No. 3: Ordinary Resolution
In terms of provision of the Companies Act,

2013, the Company can declare final dividend
with shareholders’ approval.
Pursuant to the Dividend Distribution Policy of

the Company, the Board has recommended a
final dividend of H 3 per equity share for the
financial year ended 31st March, 2018 against
H 2 per equity share declared for the financial
year ended 31st March, 2017.
In case of shares held in physical form, the

dividend recommended by the Board, if
approved, will be paid to those members whose
name will appear in the Register of Members as
on the close of Tuesday, 14th August, 2018. For
shares held in dematerialised form, the
dividend shall be paid to those members whose
names appear as beneficial owners pursuant to
the details received from the depositories as
on Tuesday, 14th August, 2018.
The Company will endeavour to pay the dividend

within 7 working days from the date of
declaration but not later than 30 days from
the date of the ensuing Annual General
Meeting, i.e. 29th September, 2018.
The Board recommends the resolution at Item

No. 3 for approval of the members of the
Company.

concerned in these resolutions except to the
extent of their shareholding in the Company.
Item No. 4: Ordinary Resolution
In terms of section 152 of the Companies Act,

2013, at least two-thirds of the directors (other
than independent directors), shall be liable to
retire by rotation, out of which at least one-third
directors shall retire at every annual general
meeting. In compliance with this requirement,
ensuing Annual General Meeting and being eligible, and regulatory scenarios, have also necessitated the
has offered herself for re-appointment. updation of the MOA. As good governance practice, it is
desired that MOA is amended to reflect the updated
Ms. Samina Vaziralli was appointed as a Whole- position in a lucid and coherent manner.
Time Director of the Company with effect from 10 th
July, 2015 and was designated as the Executive Vice-
Chairperson with effect from 1st September, 2016.
Her detailed profile is available on the website of
the Company, i.e. www.cipla.com and has also
been disclosed in the Report on Corporate
Governance forming part of the Annual Report.
Detailed terms of her appointment as Executive
Vice-Chairperson including shareholders’
resolution is available on the website of the
Company under the Investor Information section.
The statutory details of Ms. Vaziralli are enclosed in
Annexure 1.
As Executive Vice-Chairperson of Cipla, Ms.

Vaziralli is responsible for furthering Cipla’s
strategic priorities through key global partnerships,
focus on board and governance issues, corporate
culture and brand- building, talent hiring, and
public advocacy.
The Company has received consent for re-

appointment as director from Ms. Vaziralli in terms of
section 152(5) of the Act vide letter dated 14th May,
2018.
The Board recommends resolution at Item No. 4

relating to re-appointment of Ms. Samina Vaziralli
as director liable to retire by rotation, for approval
of the members as ordinary resolution.
Except Ms. Samina Vaziralli, Mr. M. K. Hamied (father

of Ms. Vaziralli) and Dr. Y. K. Hamied (uncle of Ms.
Vaziralli), none of the directors and key managerial
personnel of the Company and their relatives are
concerned or interested, financially or otherwise, in
this resolution.
Item No. 5: Special Resolution
Pursuant to section 13 of the Companies Act, 2013

(Act) the Company can alter its Memorandum of
Association (MOA) by way of a special resolution.
The present MOA was adopted by the Company at

the time of incorporation in 1935 under the
Companies Act, 1913. Since then the Companies
Act has been replaced twice (viz. by the Companies
Act, 1956 and the Companies Act, 2013). Due to
changes in the law, the structure/format of the
memorandum of association has undergone
changes. In addition, changes in the technologies,
business practices, and changes in the political
Accordingly, various clauses of the MOA extent of their shareholding in the Company.
viz. the Registered Office Clause (Clause II),
the Objects Clause (Clause III), Liability Item No. 6: Special Resolution
Clause (Clause IV), and Capital Clause Pursuant to section 14 of the Companies Act, 2013
(Clause V) are proposed to be amended. (Act) the Company can alter its Articles of
Brief highlights of alterations proposed in Association (AOA) by way of a special resolution.
the MOA are as follows: The existing AOA are based on the Companies Act,
• Clause II (Situation of Registered Office 1956. With the implementation of the Act and other
Clause) has been changed from statutory revisions, the existing AOA requires alteration
“Bombay” to “State of Maharashtra”.
• The current Clause III (Object Clause)

does not specifically differentiate
between the Company’s main objects
and ancillary objects. The Object
Clause therefore, has been bifurcated
into main objects and ancillary objects.
The Object Clause has also been
updated to explain the business and
ancillary objectives of the Company in
more clearer terms. There is no change in
the principle activities of the Company. It
continues to carry on the business
relating to pharmaceutical sector.
• Clause IV (Liability Clause) has been

substituted to clarify that the liability of
the members is limited to the amount
unpaid on the shares. This has been
done in conformity with the provisions
of the Act.
• Clause V (Share Capital Clause) has been

simplified to state the present
authorised share capital of the
Company. There is no change in the
Nominal / Authorised Share Capital of
the Company.
Copy of the MOA containing draft amended

clauses is uploaded on the website of the
Company i.e. www.cipla.com, and is also
available for inspection by members at the
Registered Office of the Company between
11:00 a.m. to 1:00 p.m. on all working days
from the date of dispatch of this Notice up
to the date of the ensuing Annual General
Meeting of the Company.
The Board recommends the resolution at

Item No. 5 for approval of the members as
special resolution.

concerned in this resolution except to the
of several articles. Since the changes required to resolution except to the extent of their shareholding in
align the existing AOA with the Act are numerous, the Company.
the Board has considered it expedient to replace
the existing AOA with a new set of AOA.
Key changes proposed in the new AOA are as follows:
• The AOA has been restructured and aligned with

the provisions of the Act, the Securities and
Exchange Board of India (Listing Obligations
and Disclosure Requirements), Regulations 2015
and the Secretarial Standards issued by the
Institute of Company Secretaries of India.
• Reference to the sections, sub-sections, clauses

etc. of the Companies Act, 1956 have been
substituted with the provisions of the Act.
• New provisions relating to independent

directors, electronic voting, postal ballot, board
meeting through audio visual means,
appointment of Chief Executive Officer, Chief
Financial Officer etc. have been incorporated.
• Provisions of the Act, which permit the

Company to do certain acts when authorised by
AOA, or, which require the Company to do acts
in a prescribed manner unless the AOA
otherwise provide, have been specifically
included.
• Few provisions such as issue of shares at

discount, which have become redundant due to
change in the law have been deleted.
• Provisions of the existing AOA which are also

covered in the Act have not been reproduced in
the new AOA to avoid duplication and adopt a
more concise and succinct set of AOA.
Copy of the proposed AOA is uploaded on the

website of the Company at www.cipla.com under
the Investor Information section, and is available
for inspection by members at the Registered
Office of the Company between 11:00 a.m. to 1:00
p.m. on all working days from the date of dispatch
of this Notice up to the date of the ensuing Annual
General Meeting of the Company.
The Board recommends the resolution at Item No.

6 for approval of the members as special
resolution.
None of the directors and key managerial personnel

and their relatives are in any way, financially or
otherwise, interested or concerned in this
Item No. 7 and 8: Special Resolutions In case of qualified institutional placement (QIP),
the price at which Securities shall be allotted to
The Company may require funds in order to qualified institutional buyers shall not be less than
meet capital expenditure requirements for the price determined in accordance with the pricing
ongoing and future projects of the Company and formula in terms of the Securities and Exchange
its subsidiaries, expansion of existing business, Board of India (Issue of Capital and Disclosure
entering new lines of business, introduce new Requirements) Regulations, 2009 (the SEBI ICDR
products, conduct clinical trials for respiratory Regulations). The
products, enhance research and development,
working capital requirements, debt repayments
including repayment of any existing or future
debt incurred for any purpose including for
paying off any liability, investments including
amongst others, in subsidiary companies,
general corporate purposes including but not
limited to pursuing new business opportunities,
acquisitions, alliances etc. and such other
purpose as may be determined by the Board
from time to time.
Therefore, the Company seeks enabling approval

of the members to access the capital market for
the following, through public issue or on a private
placement basis:
• To create, offer, issue and allot equity

shares or other securities convertible into
equity shares of the Company or any
combination thereof in one or more
tranches up to an aggregate amount of H
2000 crore.
• To create, offer, issue and allot debenture,

bonds or other debt securities or any
combination thereof up to an aggregate
amount of H 2000 crore or its equivalent in
any other foreign currency(ies) thereof.
The borrowings under the aforesaid

authorisation will be within the limit
prescribed under the Companies Act, 2013.
The price at which the Eligible Debt Securities

will be issued, will be determined by the Board
of the Company in accordance with applicable
law and consultation with the appropriate
advisors.
The detailed terms and conditions for the offer

of above securities will be determined by the
Board in consultation with the lead managers,
placement agents and such other agency or
agencies as may be required to be consulted
by the Company, considering the prevailing
market conditions and in accordance with the
applicable provisions of law and other relevant
factors and will be in accordance with the
terms approved by the shareholders in the
proposed resolution.
Board may, at its absolute discretion, decide the Mr. M. K. Hamied, Non-Executive Vice-Chairman, who are
pricing for the Equity Shares to be issued upon also the promoters of the Company, have attained the age
exercise of the warrants in the QIP, subject to the of 75 years. In compliance with the above referred
SEBI ICDR Regulations. statutory requirement, approval of the
In case of issuance of Equity Shares by way of QIP

or issuance of ADRs or GDRs or FCCBs, the relevant
date for the purpose of pricing the Securities shall
be the date of the meeting in which the Board
decides to open the issue of such Securities.
The relevant date for minimum issue price for

issuance of Equity Shares upon exercise of the
warrants shall be the date of the meeting in which
the Board or a Committee of the Board decides to
open the issue of warrants.
The proceeds of the proposed issue shall be utilised

for any of the aforesaid purposes to the extent
permitted by law. The Equity Shares allotted or
arising out of conversion of any Securities would be
listed. The issue, allotment and conversion would
be subject to the availability of regulatory
approvals, if any.
None of the promoters and key managerial personnel

of the Company will subscribe to the offer, if made
under Chapter VIII of the SEBI ICDR Regulations.
The above proposal is in the interest of the

Company, and the Board of the Company thus
recommends the resolutions at Item No. 7 and 8
for approval of the members of the Company as
special resolutions.
None of the directors or key managerial personnel

and their relatives, are in any way, financially or
otherwise, interested or concerned in this resolution,
except to the extent of their shareholding in the
Company.
Item No. 9 and 10: Special Resolutions
Pursuant to the recommendation of the Committee

on Corporate Governance constituted under the
chairmanship of Mr Uday Kotak, the Securities and
Exchange Board of India (SEBI), on 9th May, 2018,
amended the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Listing Regulations).
In terms of regulation 17 of the amended Listing
Regulations, every listed company is required to
seek approval from the shareholders by special
majority for the appointment / continuation of non-
executive directors on attaining the age of 75
years. In case of existing directors such approval is
required to be taken before 1st April, 2019.
Dr. Y. K. Hamied, Non-Executive Chairman and

members is required for continuation of Dr. Y. graduate from Bombay University. Mr. Hamied
K. Hamied and Mr. M. K. Hamied on the became the Director of Cipla in 1977 and retired
Board of the Company. from executive position from 31st March, 2014 and
continued as the Vice-Chairman in a non-
Brief profiles of Dr. Y. K. Hamied and Mr. M. executive role effective 1st April, 2014.
K. Hamied are stated hereunder:
Mr. Hamied’s association with the Company of
Dr. Y. K. Hamied around 40 years has added value to both the
Dr. Y. K. Hamied (aged 82 years), Non- Company and its shareholders and the employees
Executive Chairman of Cipla, represents the of the Company. He has vast and varied experience
second generation of Company’s founding in all functions of the
family. A world-renowned scientist, Dr.
Hamied obtained his PhD in organic
chemistry in 1960 from the University of
Cambridge under the tutelage of the Nobel
laureate Lord Alexander Todd. Dr. Hamied
was appointed as the Managing Director of
Cipla in 1976 and became the Chairman of
Cipla in 1989. He retired as Managing
Director on 31st March, 2013 and has
continued to be the Chairman in a non-
executive role since 1st April, 2013.
For close to 60 years, Dr. Hamied has been

an insightful R&D leader, a courageous
industry captain, and an outspoken
statesman of global pharma. From affordable
drugs in HIV to enabling one of the world’s
largest portfolio of drugs and devices in
inhalation therapy, his pioneering work and
immense contribution to healthcare have
been celebrated around the world. He has
been named one of India’s 50 Greatest
CEO’s ever by Outlook Magazine and
featured in 20 Global Indians: Riding the new
Wave List by India Today. He has been the
recipient of several lifetime achievement
awards and accolades including, being
bestowed with the Padma Bhushan by the
Government of India in 2005 for his
distinguished service to the pharmaceutical
industry.
Dr. Hamied continues to provide insight in

the pharmaceutical industry with his business
acumen. His legacy in the form of Cipla’s
values and culture still plays a guiding light
for the Company. His vast experience and
continuation in his current role as a Non-
Executive Chairman is in the interest of the
Company.
Mr. M. K. Hamied
Mr. M. K. Hamied (aged 77 years) is the

Non-Executive Vice-Chairman of Cipla,
and represents the second generation of
Cipla’s founding family. He is a science
Company including production, technical areas, quality
The Board recommends the resolution at Item No. 11
management and general administration.
for approval of the members as ordinary resolution.
His understanding of the Company’s functioning,
his vision for Cipla and his continued guidance in his
current role as a Non-Executive Vice-Chairman of the personnel of the Company and their relatives are
Company is in the interest of the Company. concerned or interested, financially or otherwise,
in the resolution.
Detailed profile of Dr. Y. K. Hamied and
Mr. M. K. Hamied is available on the website of the Item No. 12: Ordinary Resolution
Company, i.e. www.cipla.com and has also been provided
At the 77th Annual General Meeting of the Company
in Report on Corporate Governance which forms part
(77th AGM) held on 22nd August, 2013, the members
of the Annual Report. Statutory details of Dr. Y. K.
Hamied and Mr. M. K. Hamied are enclosed in had approved payment of commission not
Annexure 1. exceeding, in aggregate, one percent per annum of
the Company’s net profits calculated in accordance
Being non-executive directors of the Company, with the provisions of the Companies Act, 1956, to
Dr. Y. K. Hamied and Mr. M. K. Hamied are entitled the non-executive directors of the Company, for a
to sitting fees and commission as may be decided period of five years commencing 1st April, 2013. The
by the Board on the recommendation of the approval was valid till 31st March, 2018 and needs to
Nomination and Remuneration Committee.
be renewed.
The Board recommends the resolutions set out at
In terms of the provisions of section 197 and
Item Nos. 9 and 10 for approval of the members of
Schedule V of the Companies Act, 2013 and
the Company as special resolutions.
regulation
Except Dr. Y. K. Hamied, Mr. M. K. Hamied and 17 of the SEBI (Listing Obligations and Disclosure
Ms. Samina Vaziralli (daughter of Mr. M. K. Hamied Requirements) Regulations, 2015, approval of the
and niece of Dr. Y. K. Hamied) and their relatives, members is required for payment of remuneration
none of the directors and key managerial to non-executive directors of the Company.
personnel of the Company and their relatives are in
any way, financially or otherwise, interested or Considering the roles and responsibilities of the
concerned in resolutions set out at Item Nos. 9 and directors, Board seeks approval of the members for
10. the payment of remuneration to the non-executive
directors of the Company up to one percent per
Item Nos. 11: Ordinary Resolution
annum of the Company’s net profits, which is
The Board, on the recommendation of the Audit within the same limit as approved by the members at
Committee, has approved the appointment of the 77th AGM. Thus, the Board recommends the
Mr. D. H. Zaveri as the Cost Auditor to audit the resolution at Item No. 12 for approval of the
cost records maintained by the Company for the members as ordinary resolution.
financial year ending 31st March, 2019 at a
remuneration of H 11,00,000 (Rupees Eleven Lakhs All non-executive directors and their relatives may
only) plus applicable taxes as well as the be regarded as concerned or interested in the
reimbursement of reasonable out of pocket resolution to the extent of the commission they may
expenses on actual basis. receive as non- executive directors. Ms. Samina
Vaziralli (daughter of Mr. M. K. Hamied and niece of
In accordance with the provisions of section 148 of
Dr. Y. K. Hamied) and her relatives may be
the Companies Act, 2013, read with the Companies
regarded as concerned or interested to the extent
(Audit and Auditors) Rules, 2014, the remuneration
payable to the Cost Auditor is required to be of the commission as may be received by Dr. Y. K.
ratified by the shareholders of the Company. Hamied and/or Mr. M.K. Hamied.
Therefore, approval of the members is sought for

By Order of the Board of the Directors
passing an ordinary resolution as set out in Item
No. 11 for ratification of the remuneration payable
to the Cost Auditors for the financial year ending 31st
March, 2019.
Date: 22nd May, 2018 Rajendra Chopra
Place: Mumbai Company Secretary
ANNEXURE 1
PROFILE OF DIRECTORS
[Pursuant to Regulation 26(4) and 36(3) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Secretarial Standard on General Meetings]
Ms. Samina Vaziralli Dr. Y. K. Hamied Mr. M. K. Hamied
Director Identification 00027923 00029049 00029084
Number (DIN)
Age 42 years 82 years 77 years
Original Date of 10th July, 2015 21st July, 1972 16th August, 1977
Appointment
Qualification MSc in International PhD in Organic Science graduate from
Accounting and Finance from Chemistry from Bombay University
the London School of the University
Economics and Political of Cambridge
Science
Experience and Economics, Finance, Business Pharmaceutics, All functions of the
Expertise Development, Strategy, Business Development, Company including
Corporate Governance and Strategy, Corporate Production, Technical Areas,
General Management Governance Quality Management and
General Administration
Remuneration Last As mentioned in the Report on Corporate Governance
Drawn
Number of Board All five Board meetings held during the year
Meetings attended
during the year
Shareholding 2.22% (17909500 equity shares) 20.71% (166742687 3.93% (31640000 equity
equity shares) shares)
Relationship with Daughter of Mr. M. K. Brother of Mr. M. K. Brother of Dr. Y. K.
other Directors and Hamied, Non-Executive Vice- Hamied, Non- Hamied, Non-Executive
KMP Chairman, and Executive Vice- Chairman, and Father of
Niece of Dr. Y. K. Hamied, Chairman, and Uncle Ms. Samina Vaziralli,
Non- Executive Chairman of Ms. Samina Executive Vice-
Vaziralli, Executive Chairperson
Vice-Chairperson
Membership / Chairperson: Nil Chairman:
Chairpersonship of • Investment and Risk • Corporate Social
Committees of the Management Responsibility Committee
Company Committee • Stakeholders Relationship
• Operations and Committee
Administrative Committee
Membership:
Membership: • Nomination and
Nil, except as stated above Remuneration Committee
• Operations and
Administrative Committee
Directorships/ • Cipla FZE, UAE • Globus Healthcare
Designated • Cipla Health Limited Limited
Partnerships held in • Twist Pharma Private
other companies Limited
• Cipla (EU) Limited
• InvaGen Pharmaceuticals
Inc
• Hamsons Laboratories LLP
Memberships /
Chairpersonship of
Nil Nil Nil
Committees held in
other Indian companies
Attendance Slip
Please complete this Attendance Slip and hand it over at the entrance of the meeting hall
Folio No.:________ ___________ _ DP ID No.: ________ _______ _ Client ID No.: ______________ ____ _
Name/s: ______________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ___________ _
(1st name)
__________________________________________________________________________________________________________________________ (Joint Holder)
I/We record my/our presence at the 82nd Annual General Meeting of the Company at Nehru Centre Auditorium,
Discovery of India Building, Dr. Annie Besant Road, Worli, Mumbai – 400 018 on Thursday, 30th August, 2018.
Signature(s) of the Shareholder(s)/Proxy: ______________ ____________ ____________ _

Route map for the venue of the Annual General Meeting
RACE COURSE
GANAPATIRAO KADAM MARG
NEHRU SCIENCE
CENTER
DISCOVERY OF INDIA
PLANETARIUM
PATEL STADIUM BUS STOP
LALA LAJPATRAI MARG
NEHRU CENTER
ACHARYA ATRE CHOWK DR. ANNIE BESANT ROAD HAJI ALI
(WORLI NAKA)
BUS STOP
WORLI DAIRY SHIVSAGAR ESTATE

HAJI ALI’S TOMB
ARABIAN SEA
KHAN ABDUL GAFFARKHAN ROAD
N
Venue: Nehru Centre Auditorium, Discovery of India Building, Dr. Annie Besant Road, Worli, Mumbai – 400 018
Date: 30th August, 2018 at 3.00 pm.
Landmark: Nehru Planetarium

PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014]
Name of the member(s): ______________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ _____ _
Registered address: ________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____ _
Email: ______________ ____________ ____________ ____________ _________ _ Folio No/Client ID and DP ID No.: ______________ ____________ _ _
I/We, being the member(s) of _______________shares of the abovenamed Company, hereby appoint:
1. ________ ____________ ____________ ____________ ____________ ____________ _______ _of ______________ ____________ ____________ ___________ _
having email id_______________________________________________________________or failing him
2. ______________ ____________ ____________ ____________ ____________ ____________ _of ______________ ____________ ____________ ____________ _
having email id_______________________________________________________________or failing him
3. ______________ ____________ ____________ ____________ ____________ ___________ _of ______________ ____________ ____________ ____________ _ _
having email id _______________________________________________________________________________________________________________
and whose signature(s) are appended as my/our proxy to attend and vote (on a poll) for me/us and on
my/our behalf at the 82nd Annual General Meeting of the Company, to be held on Thursday, 30th August, 2018 at
3.00 p.m. at Nehru Centre Auditorium, Discovery of India Building, Dr. Annie Besant Road, Worli, Mumbai –
400 018 and at any adjournment thereof in respect of such resolutions as are indicated below:
Resolution Resolution For Against
Number
1 To receive, consider and adopt the standalone financial statement of

the Company for the financial year ended 31st March, 2018 and the
reports of the Board of Directors and Auditors thereon
2 To receive, consider and adopt the consolidated financial statement of

the Company for the financial year ended 31st March, 2018 and the
report of the Auditors thereon
3 To declare dividend on equity shares
4 To re-appoint Ms. Samina Vaziralli as director liable to retire by rotation
5 To alter the Memorandum of Association
6 To adopt new Articles of Association
7 To authorise issuance of equity shares/other securities convertible into

equity shares up to H 2000 crore
8 To authorise issuance of debt securities upto H 2000 crore
9 To approve the continuation of Dr. Y. K. Hamied as director
10 To approve the continuation of Mr. M. K. Hamied as director
11 To ratify remuneration of the cost auditors for the financial year 2018-19
12 To pay commission to non-executive directors
Signed this ________________ day of_______________________2018.

Affix
Revenue
______________________________________ Stamp
Signature(s) of the Shareholder(s)
______________________________________
______________________________________ ______________________________________
Signature of first proxy holder Signature of second proxy holder Signature of third proxy holder
Notes:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered
Office of the Company, not less than 48 hours before the commencement of the Meeting.
2. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote
on poll instead of himself and proxy need not be a member of the Company.
3. Pursuant to the provisions of section 105 of the Companies Act, 2013 read with the Companies
(Management and Administration Rules), 2014, a person can act as a proxy on behalf of members not
www.sapprints.com
exceeding fifty and holding in the aggregate not more than ten percent of the total share capital of the
Company carrying voting rights. A member holding more than ten percent of the total share capital of
the Company carrying voting rights may appoint a single person as proxy and such person shall not
act as a proxy for any other person or shareholder.
4. Notwithstanding the above, the Proxies can vote on such other items which may be tabled at the
meeting by the shareholders present.
Notes
www.kalolwala.co.in
creative consultant K&A |
Cipla Limited
Cipla House, Peninsula Business Park,
Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013
Tel: (022) 2482 6000; Fax: (022) 2482 6120
Email: contactus@cipla.com; Website: www.cipla.com
Corporate Identity Number: L24239MH1935PLC002380

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Making a difference

02-77 ‘‘The pharma industry

78-166 ‘‘Serving our patients is

Our core technical operations have always been the backbone

In turn, patient needs directly dictate our direction. It was the

We have always viewed ourselves as a member of society.

To reach the top is a difficult climb. To stay at the top as a

This is our OneCipla Credo

Building a healthy world by Fighting global diseases

34 billion 120 million 115 million 1000+ MT

6.7 million 45 million 12.4 million 910 million

Industry leading quality standards

281 Robust cGMP

04 Annual Report 2017-

7.1% Portfolio of 249 ANDAs1 24

Recovering and recycling 600000+ KL of water Zero liquid discharge

Ecosystem of 1400+ global suppliers

Collaborative value creation with channel partners

06 Annual Report 2017-

Bringing innovative learning solutions to students in remote villages

1st in Respiratory in Sri Lanka4

08 Annual Report 2017-

Revenue Growth 11%8

Continuity and Change

Cipla has very much been a part of this constantly-

We have come a long way over the past 82

Our Work Beyond Numbers

1 Annual Report 2017-

erosion in the US, have been in the news.

I am happy to see that we are on track. Many

developments and will contribute in every possible way

It is in this overall scenario that we must carefully

I am particularly pleased that our emphasis on

Apart from this, the Cipla Global Access program

The Cipla Palliative Care Centre in Pune has now

What Next for Pharma

As always, my heartfelt thanks to all of you for

I joined Cipla in 2011, in the midst of a difficult

The Road Ahead very strength that makes us an attractive partner to

All of the above are made possible by our

Governance is a primary area of attention for

Strong Legacy, Stronger Future

To me, corporate culture determines the

14 Annual Report 2017-

These are poignant and humbling reminders of the

Purpose enabled by our sense

Overall, FY18 was a good year driven by growth in key

In India, even though Q1 was expectedly impacted by GST,

In October 2017, we formed a new region called

All generics players faced an eventful year in the US.

Our Europe and Emerging Markets businesses had

Innovation backed by excellence trying to cultivate a vibrant and modern workforce. I am

1 Annual Report 2017-

Outcomes change when

Beyond Drugs and 19

Making Medicines, Making a

Our diverse portfolio of drugs spread

This annual report and its contents is for information of the