Jubilant Life Sciences Limited

213369

Contents

02

Board of Directors

03

Senior Leadership Team

04

Chairmen's Message

07

Management Discussion & Analysis

38

Directors' Report

78

Report on Corporate Governance

108

Business Responsibility Report

118

Independent Auditors' Report on

Financial Statements

124

Balance Sheet and Statement of

Profit and Loss

126

Statement of Changes in Equity

128

Cash Flow Statement

130

Notes to the Financial Statements

192

Independent Auditors' Report on

Consolidated Financial Statements

196

Consolidated Balance Sheet and

Consolidated Statement of Profit and Loss

198

Consolidated Statement of Changes in Equity

200

Consolidated Cash Flow Statement

202

Notes to the Consolidated Financial Statements

277

Salient Features of Financial Statements

of Subsidiaries/ Associates/Joint Ventures (Form AOC-1) 280

Corporate Information

Annual Report 2016-17 Jubilant Life Sciences Limited23Annual Report 2016-17 Jubilant Life Sciences Limited23

S Sridhar

Director

Sudha Pillai

Director

Dr. Ashok Misra

Director

Sushil Kumar Roongta

Director

Pramod Yadav

Whole-time Director

Arjun Shanker Bhartia

Director

Priyavrat Bhartia

Director

Vivek Mehra

Director

Board of

Directors

Shyam S Bhartia

Chairman

Hari S Bhartia

Co-Chairman and

Managing Director

Annual Report 2016-17 Jubilant Life Sciences Limited23Annual Report 2016-17 Jubilant Life Sciences Limited23

Senior

Leadership Team

Shyam S Bhartia

Chairman

Hari S Bhartia

Co-Chairman and

Managing Director

GP Singh

CEO

Jubilant Pharma

Pramod Yadav

Co-CEO

Life Science Ingredients

Rajesh Srivastava

Co-CEO

Life Science Ingredients

Steven Hutchins

President

Drug Discovery Solutions

R Sankaraiah

Executive Director

Finance

Ajay Khanna

Group Ombudsman

and Chief Strategic & Public Affairs

Dr. Ashutosh Agarwal

Chief Scientific Officer

Siddhartha Pahwa

Chief of Supply Chain

Dr. Raju Mistry

Chief

Human Resources

Officer

Dr. Rajesh Kapoor

Chief of Quality

Annual Report 2016-17 Jubilant Life Sciences Limited45Annual Report 2016-17 Jubilant Life Sciences Limited45

Chairmen's Message

Hari S Bhartia

Co-Chairman and Managing Director

Shyam S Bhartia

Chairman

Annual Report 2016-17 Jubilant Life Sciences Limited45Annual Report 2016-17 Jubilant Life Sciences Limited45

Chairmen's Message

Dear Fellow Shareholders,

We are pleased to announce that the Company has reported highest ever revenue and profits in FY 2017. The differentiated business model focusing on Specialty Pharmaceuticals - Injectables has enabled us to deliver exceptional results and build a strong base for growth in Pharmaceuticals. The Company has generated strong operating cash flow, which enabled reduction of debt and is expected to deliver better results going forward. Our focus is to strengthen the balance sheet, invest in strategic opportunities without increasing debt levels and build strong pipeline or products across our businesses. India continues to be the fastest growing economy globally and is expected to grow by 7.2% in FY 2017- 18 as per projections of the International Monetary Fund. This growth is expected to further accelerate to above 8% in the medium term due to implementation of structural reforms, including the transformative GST regime under the current government. According to Evaluate Pharma, the global pharmaceuticals market is expected to grow at 6.3% Compound Annual Growth Rate (CAGR) to US$ 1.12 trillion by 2022. The growth of complex therapeutic areas is projected to outpace the growth of the overall pharmaceutical market, emphasising the importance of increased R&D in the value chain. Global agriculture, on the other hand, has faced some challenges in the last few years but is likely to see a better demand this year for crop protection chemicals in terms of volume as per a report by Federation of Indian

Chambers of Commerce and Industry (FICCI).

Business Objectives

We are an integrated global pharmaceutical and life sciences Company present across the entire pharmaceutical value chain and take pride in our positioning as one-stop-shop in the glo bal pharmaceutical and life sciences industry, supplying products and services to customers in over

100 countries. Our diversified businesses are segmented

in three major verticals namely Pharmaceuticals, Life Science Ingredients and Drug Discovery Solutions. Each of these segments is professionally managed by its separate management teams headed by respective CEOs. As a responsible corporate citizen, we are committed to safeguarding the environment and maintaining a triple bottom line approach of sustainability through delivering a high social, environmental and economic performance. The Pharmaceuticals segment is engaged in manufacture and supply of APIs, Solid Dosage Formulations, Radiopharmaceuticals, Allergy Therapy Products and Contract Manufacturing of Sterile and Non Sterile products through 6 US FDA approved facilities in India, US and Canada. Our success in this segment is based on several key strengths including an innovative product

portfolio in specialty injectables with high entry barriers and limited competition, strong R&D capabilities to back

a differentiated pipeline of products, global competitive edge due to low cost from vertically integrated operations, market leadership in key products and business segments, de-risked business model with low concentration risk and a consistent track record of regulatory approvals. As of March 31, 2017, the Company has a total of 922 filings across geographies. Of this, 710 filings have been approved while 212 filings are pending approval.

The Life

Science Ingredients segment is engaged in

Specialty Intermediates, Nutritional Products and Life Science Chemicals through 5 manufacturing facilities in India. In this segment, our strength lies in our integrated business model, strong capabilities in chemistry, low cost of manufacturing through best in class processes and leadership position in key products on a global level. The Drug Discovery Solutions segment provides proprietary in-house innovation for out-licensing purposes and collaborative research and partnership for Drug Discovery through 3 world class research centers in India and US.

Performance Review

Contents

02

Board of Directors

03

Senior Leadership Team

04

Chairmen's Message

07

Management Discussion & Analysis

38

Directors' Report

78

Report on Corporate Governance

108

Business Responsibility Report

118

Independent Auditors' Report on

Financial Statements

124

Balance Sheet and Statement of

Profit and Loss

126

Statement of Changes in Equity

128

Cash Flow Statement

130

Notes to the Financial Statements

192

Independent Auditors' Report on

Consolidated Financial Statements

196

Consolidated Balance Sheet and

Consolidated Statement of Profit and Loss

198

Consolidated Statement of Changes in Equity

200

Consolidated Cash Flow Statement

202

Notes to the Consolidated Financial Statements

277

Salient Features of Financial Statements

of Subsidiaries/ Associates/Joint Ventures (Form AOC-1) 280

Corporate Information

Annual Report 2016-17 Jubilant Life Sciences Limited23Annual Report 2016-17 Jubilant Life Sciences Limited23

S Sridhar

Director

Sudha Pillai

Director

Dr. Ashok Misra

Director

Sushil Kumar Roongta

Director

Pramod Yadav

Whole-time Director

Arjun Shanker Bhartia

Director

Priyavrat Bhartia

Director

Vivek Mehra

Director

Board of

Directors

Shyam S Bhartia

Chairman

Hari S Bhartia

Co-Chairman and

Managing Director

Annual Report 2016-17 Jubilant Life Sciences Limited23Annual Report 2016-17 Jubilant Life Sciences Limited23

Senior

Leadership Team

Shyam S Bhartia

Chairman

Hari S Bhartia

Co-Chairman and

Managing Director

GP Singh

CEO

Jubilant Pharma

Pramod Yadav

Co-CEO

Life Science Ingredients

Rajesh Srivastava

Co-CEO

Life Science Ingredients

Steven Hutchins

President

Drug Discovery Solutions

R Sankaraiah

Executive Director

Finance

Ajay Khanna

Group Ombudsman

and Chief Strategic & Public Affairs

Dr. Ashutosh Agarwal

Chief Scientific Officer

Siddhartha Pahwa

Chief of Supply Chain

Dr. Raju Mistry

Chief

Human Resources

Officer

Dr. Rajesh Kapoor

Chief of Quality

Annual Report 2016-17 Jubilant Life Sciences Limited45Annual Report 2016-17 Jubilant Life Sciences Limited45

Chairmen's Message

Hari S Bhartia

Co-Chairman and Managing Director

Shyam S Bhartia

Chairman

Annual Report 2016-17 Jubilant Life Sciences Limited45Annual Report 2016-17 Jubilant Life Sciences Limited45

Chairmen's Message

Dear Fellow Shareholders,

We are pleased to announce that the Company has reported highest ever revenue and profits in FY 2017. The differentiated business model focusing on Specialty Pharmaceuticals - Injectables has enabled us to deliver exceptional results and build a strong base for growth in Pharmaceuticals. The Company has generated strong operating cash flow, which enabled reduction of debt and is expected to deliver better results going forward. Our focus is to strengthen the balance sheet, invest in strategic opportunities without increasing debt levels and build strong pipeline or products across our businesses. India continues to be the fastest growing economy globally and is expected to grow by 7.2% in FY 2017- 18 as per projections of the International Monetary Fund. This growth is expected to further accelerate to above 8% in the medium term due to implementation of structural reforms, including the transformative GST regime under the current government. According to Evaluate Pharma, the global pharmaceuticals market is expected to grow at 6.3% Compound Annual Growth Rate (CAGR) to US$ 1.12 trillion by 2022. The growth of complex therapeutic areas is projected to outpace the growth of the overall pharmaceutical market, emphasising the importance of increased R&D in the value chain. Global agriculture, on the other hand, has faced some challenges in the last few years but is likely to see a better demand this year for crop protection chemicals in terms of volume as per a report by Federation of Indian

Chambers of Commerce and Industry (FICCI).

Business Objectives

We are an integrated global pharmaceutical and life sciences Company present across the entire pharmaceutical value chain and take pride in our positioning as one-stop-shop in the glo bal pharmaceutical and life sciences industry, supplying products and services to customers in over

100 countries. Our diversified businesses are segmented

in three major verticals namely Pharmaceuticals, Life Science Ingredients and Drug Discovery Solutions. Each of these segments is professionally managed by its separate management teams headed by respective CEOs. As a responsible corporate citizen, we are committed to safeguarding the environment and maintaining a triple bottom line approach of sustainability through delivering a high social, environmental and economic performance. The Pharmaceuticals segment is engaged in manufacture and supply of APIs, Solid Dosage Formulations, Radiopharmaceuticals, Allergy Therapy Products and Contract Manufacturing of Sterile and Non Sterile products through 6 US FDA approved facilities in India, US and Canada. Our success in this segment is based on several key strengths including an innovative product

portfolio in specialty injectables with high entry barriers and limited competition, strong R&D capabilities to back

a differentiated pipeline of products, global competitive edge due to low cost from vertically integrated operations, market leadership in key products and business segments, de-risked business model with low concentration risk and a consistent track record of regulatory approvals. As of March 31, 2017, the Company has a total of 922 filings across geographies. Of this, 710 filings have been approved while 212 filings are pending approval.

The Life

Science Ingredients segment is engaged in

Specialty Intermediates, Nutritional Products and Life Science Chemicals through 5 manufacturing facilities in India. In this segment, our strength lies in our integrated business model, strong capabilities in chemistry, low cost of manufacturing through best in class processes and leadership position in key products on a global level. The Drug Discovery Solutions segment provides proprietary in-house innovation for out-licensing purposes and collaborative research and partnership for Drug Discovery through 3 world class research centers in India and US.

Performance Review