LUPIN LIMITED

Multinational Pharmaceutical Company

Lupin is a global pharmaceutical company Founded over 50 years ago
by Desh Bandhu Gupta in 1968. Lupin is a significant player in the US,
India and Japan. It holds a global leadership position in Anti-TB and
Cephalosporin segments. It has headquartered in Mumbai, Maharastra.
Lupin’s India business is a crucial growth driver and continues to lead
the way with greater profitability and value by consistently delivering
best-in-class results. In FY20, our Domestic Formulations business
crossed the milestone revenue figure of INR 50,000 Million and
registered double-digit growth. Lupin’s branded generic business is
currently placed at 6th position in the Indian Pharmaceutical Market
(IPM). Overall, Lupin retains the 4th position in the high growth chronic
segment. The chronic segment has improved in salience to 62% of total
revenues and the acute segment contributes the balance 38%.
Type- Public
Industry- Pharmaceuticals
Sector- Healthcare
Headquarter- Mumbai, India
Founded – 1968
Key products- Pharmaceuticals, vaccines, generic drugs, diagnostics,
contact lens.
CEO- Vinita D. Gupta

The rules for accounting for financial transactions and preparing financial
statements, are known as the “Generally Accepted Accounting Principles,”
or GAAP. The financial statements have been build in accordance with the
measurement principles laid down by Indian Accounting Standards, as
notified under section 133 of the companies Act 2013.
 1. Business entity concept: A business and its owner are two
different entities and should be treated separately in terms of
financial transactions. Lupin has its own identity and holds its
own legal existence.
2. Money measurement concept: The business transactions of Lupin
Pharma can be expressed in terms of money are only recorded in
accounting and the other types of transactions is recorded separately.
3. Dual aspect concept: For every transaction made in Lupin credit and
debit are go simultaneously i.e, for every credit, a corresponding
debit is made.
4. Going concern concept: The business of Lupin will not be forced to
stop functioning and liquidate its assets. In accounting, a business
will run for a long time and will have to meet its obligations.
5. Cost concept: The fixed assets of Lupin Pharma are recorded on the
basis of their original cost in the first year of accounting. The fixed
assets are recorded minus depreciation without taking into account
the rise or fall in market price. The cost concept is valid only for the
fixed assets.
6. Accounting year concept: All businesses have a specific time period
to complete a cycle of the accounting process—i.e, monthly, quarterly,
or annually as per a fiscal or a calendar year.
7. Matching concept: This principle states that for every entry of
revenue recorded in a given accounting period of Lupin, an equal
expense entry has to be recorded to correctly calculate profit or loss
in a given period.
8. Realisation concept: As per this concept, profit is recognised only
when it is earned. An advance or fee paid is not considered a profit
until the goods or services have been delivered to the buyer.

Accounting Conventions
The are four main accounting conventions are-

1.Conservatism- According to this convention if two values of a

transaction are available, the lower-value transaction is recorded. This will
ensure that the profit is never overestimated, and there will always be a
provision for losses.
2.Consistency-It states that the same accounting principles should be
used from one period of an accounting cycle to the next, so that the same
standards are applied to calculate profit and loss.
Materiality -This means that all material facts should be recorded in
accounting. Accountants should record important data and leave out
insignificant information.
The above figures are financial statements of year 2018-19.
The above figures show the Financial Statement of the
company 2019-20.
 Comparative
Details
Items statement
Sl (Amount in ₹ million, unlesss As at As at As at
Change in
otherwise stated) 31 March 31 March 31 March Difference
%
2020 2019 2018

ASSETS
NON-CURRENT ASSETS
PROPERTY, PLANT AND ₹ ₹ ₹
-5460 (11.12%)
EQUIPMENT 43,655.00 49,115.00 49,074.00
₹ ₹ ₹
CAPITAL WORK IN PROGRESS -2603.4 (25.56%)
7,581.60 10,185.00 9,563.10
₹ ₹ ₹
RIGHT-OF-USE ASSET -5289 (22.22%)
18,514.00 23,803.00 24,484.90
₹ ₹ ₹
INTANGIBLE ASSETS -20738 (54.65%)
17,210.00 37,948.00 30,061.80
₹ ₹ ₹
INVESTMENT IN ASSOCIATES -4396.4 (70.78%)
1,814.60 6,211.00 16,418.00
₹ ₹ ₹
FINANCIAL ASSETS 54 21.51%
305.00 251.00 211.40
₹ ₹ ₹
(i) INVESTMENTS -1548.8 (96.53%)
55.70 1,604.50 55.70
₹ ₹ ₹
(ii) LOANS -338.3 (41.53%)
476.30 814.60 829.20
₹ ₹ ₹
(iii) OTHERS FINANCIAL ASSETS 271.6 62.65%
705.10 433.50 41.90
₹ ₹ ₹
DEFERRED TAX ASSETS (NET) -5596.9 (76.25%)
1,743.10 7,340.00 7,165.60
NON-CURRENT TAX ASSETS ₹ ₹ ₹
-238.5 (16.75%)
(NET) 1,185.60 1,424.10 1,464.30
₹ ₹ ₹
OTHER NON-CURRENT ASSETS 633.1 34.69%
2,458.30 1,825.20 1,588.40
₹ ₹ ₹
TOTAL NON-CURRENT ASSETS -45248.5 (32.10%)
95,706.40 1,40,954.90 1,40,958.40
CURRENT ASSETS
FINANCIAL ASSETS
₹ ₹ ₹
(i) INVESTMENTS 2283.9 10.82%
23,382.50 21,098.60 2,348.60
₹ ₹ ₹
(ii) TRADE RECEIVABLES 2961.3 5.75%
54,459.30 51,498.00 51,922.10
₹ ₹ ₹
(iii) CASH AND CASH EQUIVALENTS 16426.4 287.07%
22,148.50 5,722.10 13,941.10
BANK BALANCES OTHER THAN ₹ ₹ ₹
(iv) -1755.4 (42.30%)
(III) ABOVE 2,394.50 4,149.90 139.20
₹ ₹ ₹
(v) LOANS 121.7 48.99%
370.10 248.40 199.00
₹ ₹ ₹
(vi) OTHERS FINANCIAL ASSETS -2497.9 (39.07%)
3,895.50 6,393.40 4,364.90
₹ ₹ ₹
CURRENT TAX ASSETS (NET) 9.3 3.13%
306.10 296.80 8.00
₹ ₹ ₹
OTHER CURRENT ASSETS 1846 17.15%
12,606.90 10,760.90 12,461.60
₹ ₹ ₹
TOTAL CURRENT ASSETS 15596.3 11.26%
1,54,132.10 1,38,535.80 1,22,095.00
 ₹ ₹ ₹
TOTAL ASSETS -29655.2 (10.61%)
2,49,838.50 2,79,493.70 2,63,053.80
EQUITY AND LIABILITIES
EQUITY
₹ ₹ ₹
SHARE CAPITAL 1 0.11%
906.00 905.00 904.20
₹ ₹ ₹
OTHER EQUITY -12056.3 (8.83%)
1,24,461.00 1,36,517.30 1,34,866.40
EQUITY ATTRIBUTABLE TO
₹ ₹ ₹
EQUITY HOLDERS OF THE -12055.3 (8.77%)
1,25,367.00 1,37,422.30 1,35,770.60
PARENT
₹ ₹ ₹
NON-CONTROLLING INTERESTS -24 (5.12%)
444.60 468.60 400.80
₹ ₹ ₹
TOTAL EQUITY -12079.3 (8.76%)
1,25,811.60 1,37,890.90 1,36,171.40
LIABILITIES
NON-CURRENT LIABILITIES
FINANCIAL LIABILITIES
₹ ₹ ₹
(i) SHARE BUYBACK OBLIGATION 0 -
- - 3,729.30
₹ ₹ ₹
(ii) LEASE LIABILITIES 612.49 -
612.49 - -
₹ ₹ ₹
(iii) OTHER FINANCIAL LIABILITIES -2.84 (100.00%)
- 2.84 2.62
₹ ₹ ₹
PROVISIONS 169.4 176.46%
265.40 96.00 59.31
₹ ₹ ₹
CONTRACT LIABILITIES 399.3 17.38%
2,697.21 2,297.91 1,660.91
TOTAL NON-CURRENT ₹ ₹ ₹
-48529.2 (60.43%)
LIABILITIES 31,774.90 80,304.10 5,452.14
CURRENT LIABILITIES
FINANCIAL LIABILITIES
(i) TRADE PAYABLES
TOTAL OUTSTANDING DUES OF
₹ ₹ ₹
(a) MICRO ENTERPRISES AND -56.7 (5.42%)
989.40 1,046.10 1,063.80
SMALL ENTERPRISES
TOTAL OUTSTANDING DUES OF
CREDITORS OTHER THAN ₹ ₹ ₹
(b) -802.1 (3.35%)
MICRO ENTERPRISES AND 23,133.60 23,935.70 24,690.20
SMALL ENTERPRISES
₹ ₹ ₹
(ii) LEASE LIABILITIES -56.7 (5.42%)
989.40 1,046.10 12,827.20
₹ ₹ ₹
(iii) OTHER FINANCIAL LIABILITIES -48.87 (15.82%)
259.97 308.84 0.18
₹ ₹ ₹
PROVISIONS -28.19 (41.06%)
40.47 68.66 47.94
₹ ₹ ₹
CONTRACT LIABILITIES 593.67 16.67%
4,155.58 3,561.91 2,259.23
₹ ₹ ₹
OTHER CURRENT LIABILITIES -1664.66 (87.02%)
248.24 1,912.90 2,344.40
₹ ₹ ₹
TOTAL CURRENT LIABILITIES 1802.6 24.78%
9,077.10 7,274.50 4,651.60
₹ ₹ ₹
TOTAL LIABILITIES 2440 551.91%
2,882.10 442.10 860.70
 ₹ ₹ ₹
TOTAL EQUITY AND LIABILITIES 30953.4 50.50%
92,252.10 61,298.70 50,955.50
SUMMARY OF SIGNIFICANT ₹ ₹ ₹
0 -
ACCOUNTING POLICIES - - -

From the Annual report 19-20, the financial highlights of Lupin are as
follows-
1.Recorded consolidated sales (from continuing operations) of INR
151,428 Million in FY20, a growth of 5.8%
2.Earnings before Interest, Tax, Depreciation, and Amortization
(EBITDA) from continuing operations was INR 28,386 Million;
3.Profit before Tax (PBT) before Exceptional items (from continuing
operations) was INR 15,054 Million; 9.9% of sales
4.Profit on divestment of Japan operations of INR 12,164 Million
Impairment of intangibles of INR 15,893 Million Settlement with State of
Texas of INR 3,792 Million
5.Profit before Tax and after Exceptional items (from continuing
operations) was INR 7,533 Million
6.Net Profit before Exceptional items (from continuing operations) was
INR 9,088 Million in FY20 as compared to INR 8,521 Million in FY19;
growth of 6.7%
7.Net Debt as of March 31, 2020, stands at INR 15,118 Million as
compared to INR 52,438 Million as of March 31, 2019
8.Net Debt-Equity for the company stands at 0.12:1 on March 31, 2020
as compared to 0.38:1 as on March 31, 2019
9.The Board recommended a Dividend of 300% for FY20
10.Current ratio in FY20 stood at 1.7 compared to 2.3 in FY19 due to
increase in the current portion of longterm debt by US$ 267 Million
relating to the acquisition.
11.Interest coverage ratio in FY20 stood at 5.5 compared to 7.8 in FY19
due to increase in reported finance costs on implementation of IND-AS
116 (Leases) in FY20.

(i) Inventory Turnover: The Company is engaged in the business of

Pharma services. The inventory maintained is for the Company’s
consumption such as pharmaceuticals, vaccines, generic drugs, etc. The
Company does not maintain any inventory for sale therefore, the
2.CURRENT RATIO

The current ratio, also known as the working capital ratio, measures the
business’ ability to pay off its short-term debt obligations with its current
assets.

The formula for calculating the current ratio is as follows:

Current Ratio = Current Assets / Current Liabilities

=8888.19/3201.17

=1.77:1

So, the current ratio is 1.77:1.

3.CASH RATIO

Cash ratio, also called cash asset ratio, is the ratio of cash and cash
equivalent assets to its total liabilities.

The ratio indicates the extent to which readily available funds can pay off
current liabilities. It is often used by lenders and potential creditors to
measure business liquidity and how easily it can service debt.

The formula for calculating the current ratio is as follows:

Current Ratio = (Cash + Cash Equivalent) / Current Liabilities

 =(1305.9+1581.08)/3201.7

=0.901

4. Earnings per Share- EPS is the portion of a company's net

income that would be allocated to each outstanding share.
EPS= Net Income
5.Return on Shareholder’s fund-

Return on Shareholder’s fund = (Net profit after Interest and taxes/Shareholder’s

fund) *100%

=41.15%

6.Return on Asset-
Return on asset= (Net profit after tax/ Total Asset) *100%

= 7533.5 /249838.5

=3.51%

7.Total Debt/ Equity Ratio-

Total debt equity ratio= Total debt/ Equity

= (15118/125811.6) million

=0.12:1

EPS 4.64
Net sales 2020 Rs.3835 crore
share price Rs.936
9.Turnover Ratio

Inventory Turnover Ratio Net Sales / Average Inventory 4.44 4.92 13.6
Debtors Turnover Ratio Net Sales / Average Receivable 7.81 8.95 6.12
Investments Turnover Net Sales / Average
Ratio Investments 0.38 14.04 13.6
Fixed Assets Turnover Net Sales / Average Ficed
Ratio Assets 0.9 1.58 1.71
Assets Turnover Ratio Net Sales / Average Assets 0.53 0.57 0.47

10.Earnings Ratio
Annual Formula FY20 FY19 FY18

P/E Ratio Share Price / Earnings Per Share 201.72414 8.56 12.09

Return on Net Worth Net Profit / Total Equity 8.98 15.52 14.93

Return on Capital Employed EBIT / Capital Employed 12.31 23.52 23.18

11. Profitability ratio

Annual Formula (Percentage) FY20 FY19 FY18

Gross Profit Ratio Gross Profit / Net Sales 15.35 37.08 35.65

Net Profit Ratio Net Profit / Net Sales 23.91 33.21 31.64
Operation Profit Ratio Operating Profit / Net Sales 24.61 41.72 40.38
 Items Details Trend Analysis
(Amount in ₹
million, As at As at As at
Sl
unlesss 31 March 31 March 31 March 2020 2019 2018
otherwise 2020 2019 2018
stated)

ASSETS
NON-
CURRENT
ASSETS
PROPERTY,
₹ ₹ ₹
PLANT AND 88.96% 100.08% 100.00%
43,655.00 49,115.00 49,074.00
EQUIPMENT
CAPITAL WORK ₹ ₹ ₹
79.28% 106.50% 100.00%
IN PROGRESS 7,581.60 10,185.00 9,563.10
RIGHT-OF-USE ₹ ₹ ₹
75.61% 97.22% 100.00%
ASSET 18,514.00 23,803.00 24,484.90
INTANGIBLE ₹ ₹ ₹
57.25% 126.23% 100.00%
ASSETS 17,210.00 37,948.00 30,061.80
INVESTMENT ₹ ₹ ₹
11.05% 37.83% 100.00%
IN ASSOCIATES 1,814.60 6,211.00 16,418.00
FINANCIAL ₹ ₹ ₹
144.28% 118.73% 100.00%
ASSETS 305.00 251.00 211.40
₹ ₹ ₹
(i) INVESTMENTS 100.00% 2880.61% 100.00%
55.70 1,604.50 55.70
₹ ₹ ₹
(ii) LOANS 57.44% 98.24% 100.00%
476.30 814.60 829.20
OTHERS
₹ ₹ ₹
(iii) FINANCIAL 1682.82% 1034.61% 100.00%
705.10 433.50 41.90
ASSETS
DEFERRED TAX ₹ ₹ ₹
24.33% 102.43% 100.00%
ASSETS (NET) 1,743.10 7,340.00 7,165.60
NON-CURRENT
₹ ₹ ₹
TAX ASSETS 80.97% 97.25% 100.00%
1,185.60 1,424.10 1,464.30
(NET)
OTHER NON-
₹ ₹ ₹
CURRENT 154.77% 114.91% 100.00%
2,458.30 1,825.20 1,588.40
ASSETS
TOTAL NON-
₹ ₹ ₹
CURRENT 67.90% 100.00% 100.00%
95,706.40 1,40,954.90 1,40,958.40
ASSETS
CURRENT
ASSETS
FINANCIAL
ASSETS
₹ ₹ ₹
(i) INVESTMENTS 995.59% 898.35% 100.00%
23,382.50 21,098.60 2,348.60
TRADE ₹ ₹ ₹
(ii) 104.89% 99.18% 100.00%
RECEIVABLES 54,459.30 51,498.00 51,922.10
 CASH AND
₹ ₹ ₹
(iii) CASH 158.87% 41.04% 100.00%
22,148.50 5,722.10 13,941.10
EQUIVALENTS
BANK
BALANCES ₹ ₹ ₹
(iv) 1720.19% 2981.25% 100.00%
OTHER THAN 2,394.50 4,149.90 139.20
(III) ABOVE
₹ ₹ ₹
(v) LOANS 185.98% 124.82% 100.00%
370.10 248.40 199.00
OTHERS
₹ ₹ ₹
(vi) FINANCIAL 89.25% 146.47% 100.00%
3,895.50 6,393.40 4,364.90
ASSETS
CURRENT TAX ₹ ₹ ₹
3826.25% 3710.00% 100.00%
ASSETS (NET) 306.10 296.80 8.00
OTHER
₹ ₹ ₹
CURRENT 101.17% 86.35% 100.00%
12,606.90 10,760.90 12,461.60
ASSETS
TOTAL
₹ ₹ ₹
CURRENT 126.24% 113.47% 100.00%
1,54,132.10 1,38,535.80 1,22,095.00
ASSETS
₹ ₹ ₹
TOTAL ASSETS 94.98% 106.25% 100.00%
2,49,838.50 2,79,493.70 2,63,053.80
EQUITY AND
LIABILITIES
EQUITY
SHARE ₹ ₹ ₹
100.20% 100.09% 100.00%
CAPITAL 906.00 905.00 904.20
₹ ₹ ₹
OTHER EQUITY 92.28% 101.22% 100.00%
1,24,461.00 1,36,517.30 1,34,866.40
EQUITY
ATTRIBUTABLE
₹ ₹ ₹
TO EQUITY 92.34% 101.22% 100.00%
1,25,367.00 1,37,422.30 1,35,770.60
HOLDERS OF
THE PARENT
NON-
₹ ₹ ₹
CONTROLLING 110.93% 116.92% 100.00%
444.60 468.60 400.80
INTERESTS
₹ ₹ ₹
TOTAL EQUITY 92.39% 101.26% 100.00%
1,25,811.60 1,37,890.90 1,36,171.40
LIABILITIES
NON-
CURRENT
LIABILITIES
FINANCIAL
LIABILITIES
SHARE
₹ ₹ ₹
(i) BUYBACK - - 100.00%
- - 3,729.30
OBLIGATION
LEASE ₹ ₹ ₹
(ii) - - -
LIABILITIES 612.49 - -
OTHER
₹ ₹ ₹
(iii) FINANCIAL - 108.40% 100.00%
- 2.84 2.62
LIABILITIES
₹ ₹ ₹
PROVISIONS 447.48% 161.86% 100.00%
265.40 96.00 59.31
 CONTRACT ₹ ₹ ₹
162.39% 138.35% 100.00%
LIABILITIES 2,697.21 2,297.91 1,660.91
TOTAL NON-
₹ ₹ ₹
CURRENT 582.80% 1472.89% 100.00%
31,774.90 80,304.10 5,452.14
LIABILITIES
CURRENT
LIABILITIES
FINANCIAL
LIABILITIES
TRADE
(i)
PAYABLES
TOTAL
OUTSTANDING
DUES OF
₹ ₹ ₹
(a) MICRO 93.01% 98.34% 100.00%
989.40 1,046.10 1,063.80
ENTERPRISES
AND SMALL
ENTERPRISES
TOTAL
OUTSTANDING
DUES OF
CREDITORS
₹ ₹ ₹
(b) OTHER THAN 93.70% 96.94% 100.00%
23,133.60 23,935.70 24,690.20
MICRO
ENTERPRISES
AND SMALL
ENTERPRISES
LEASE ₹ ₹ ₹
(ii) 7.71% 8.16% 100.00%
LIABILITIES 989.40 1,046.10 12,827.20
OTHER
₹ ₹ ₹
(iii) FINANCIAL 144427.78% 171577.78% 100.00%
259.97 308.84 0.18
LIABILITIES
₹ ₹ ₹
PROVISIONS 84.42% 143.22% 100.00%
40.47 68.66 47.94
CONTRACT ₹ ₹ ₹
183.94% 157.66% 100.00%
LIABILITIES 4,155.58 3,561.91 2,259.23
OTHER
₹ ₹ ₹
CURRENT 10.59% 81.59% 100.00%
248.24 1,912.90 2,344.40
LIABILITIES
TOTAL
₹ ₹ ₹
CURRENT 195.14% 156.39% 100.00%
9,077.10 7,274.50 4,651.60
LIABILITIES
TOTAL ₹ ₹ ₹
334.86% 51.37% 100.00%
LIABILITIES 2,882.10 442.10 860.70
TOTAL EQUITY
₹ ₹ ₹
AND 181.04% 120.30% 100.00%
92,252.10 61,298.70 50,955.50
LIABILITIES
SUMMARY OF
SIGNIFICANT ₹ ₹ ₹
- - -
ACCOUNTING - - -
POLICIES
Asset includes equipment, machinery, building and other resources
owned by the company. Company also has intangible assets such as
patents, royalties, and other intellectual property.
Lupin has non-current assets of Rs. 95706 million and current asset of
Rs.154132 million. The total assets for the FY20 and FY19 being Rs. 249838
million and Rs. 279493 million respectively.

The cash and cash equivalents of the company include treasury bills,
certificates of deposit, and cash. The company has following assets like
market securities like debt securities or equity that is liquid. The amount of
accounts receivables money owed by customers to be paid in the short-
term and inventory that are goods available for sale or raw materials

Fixed assets are non-current assets that a company uses in

its production or goods, and services that have a life of more than
one year.

The financial liabilities of the group include derivatives that are liabilities
measured at fair value, with changes in fair value being recognized in
the Consolidated Statements of profit and loss. It includes cost (loans,
borrowings and payables) or as derivatives designated as hedging. The
group uses derivative financial instruments, such as foreign exchange
forward contracts, interest rate swaps and currency options to manage
its exposure to interest rate and foreign exchange risks.
Lupin also has the transaction costs that the group incurs in connection
with a business combination, such as finder’s fees, legal fees, due
diligence fees and other professional and consulting fees, are expensed
as incurred.
Lupin has current liability of Rs. 31744.9 million and non -current liability of
Rs.922452 million. The total liability for the FY20 and FY19 being Rs. 249838
million and Rs. 279493 million respectively.
Any goodwill that arises on account of such business combination is
tested annually for impairment also is added in liabilities. Acquisitions of
non-controlling interests are accounted for as transactions with equity
shareholder their capacity as equity holders. The difference any
consideration paid and the relevant share acquired of the carrying value
of net assets of the subsidiary is recorded in equity.

Equity is the shareholder’s stake in the company. Equity represents the

value that would be returned to a Lupin’s shareholders if all of the assets were
liquidated and all of the company's debts were paid off.

Shareholder’s Equity= Assets- Liabilities.

Lupin’s equity share capital for FY20 and FY19 are Rs. 906million and Rs.
905 million respectively. The equity attributed to the owners of the company
are Rs.12567 million and Rs.137422 million for FY20 and FY19 respectively.
Equity is important and it represents the value of an investor’s stake in a
company, represented by their proportion of the company's shares. Here, we
see that Lupin’s equity is positive which indicates that the company has
enough assets to cover its liabilities and is performing well.

Other components of Shareholder’s equity include retained earnings. It is are

the percentage of net earnings that were not paid to shareholders as
dividends. Here we see that the retained earnings of Lupin was growing larger
over time as the company continues to reinvest a portion of its income in
FY18.However the current retain earning of Lupin is Rs.0 which is 100% low
than the other companies in the healthcare sector. This means that the
company is not reinvesting it’s income.

Shares bought back by companies become treasury shares, and their dollar
value is noted in an account called treasury stock.
The cost of an item of Property, plant, and equipment comprises of the
following-

• Its purchase price including the import duties and non-refundable

purchase taxes.
• Any cost was directly attributable to bringing the asset to its
location.
• The initial estimate of the cost of dismantling and removing the
items and restoring it to its new location.
• Income and expenses related to the incidental operations not
necessary to bring the items to location.

Depreciation is an accounting method of allocating the cost of a

tangible or physical asset over its useful life or life
expectancy. It represents how much of an asset's value has been
used up. The depreciable amount for assets is the cost of an asset, or
other amount substituted for cost, minus its estimated residual value.
Depreciation on property, plant, and equipment of the Company and its
subsidiaries incorporated in India has been provided on the Straight-line
method as per the estimated useful life of such assets a

Particulars Estimated useful life

Building 5-50 years

Improvement on leased premises Throughout lease

Plant and equipment 3-20 years

 Furnitures and fixatures 2-20 years

Vehicles 3-7 years

Office equipment 2-21 years

Intangible assets are amortized over their estimated useful life on Straight Line
Method as follows:

Particulars Estimated Useful Life

Computer Software 2-6 years

Trademarks and licences 3-13 years

Dossiers/ Marketing Rights 5-10 years

The estimated useful life of intangible assets and amortization period are
reviewed at the end of every year.

In December 2019, following its annual five-year planning process and renewed
assessment of market competition, the Company recorded asset impairment
losses of $188.0 million related to other intangible assets.
In the above figure from the Annual Report of Lupin 2020, the total
inventory of Lupin is Rs. 34,568.7 million

At the inception of a contract, the Group assesses whether a contract is

or contains a Lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of
the exchange. the group uses the definition of a lease in INDAS 116.
This policy is applied to contracts entered on or after 1st April 2019.
The lease payments will include fixed payments, variable lease
payments, residual value guarantees, and the exercise price of a
purchase option. The group was elected not to apply for the payment of
INDAS 116 to short-term leases of all assets that has a lease term of 12
months or less. A right of lease asset of $3089.9 million and a
corresponding lease ability of $3579.5 million.
The group as finance lease of applying Ind AS 17. Accordingly, an
amount of $1070.9 million has been reclassified from property, plants,
and equipment to right-of-use assets.
There has been no significant impact due to Covid-19.
The Lupin has taken the central stage to fight against Covid-19. Its
contribution included vaccine development, research on repurposed and
novel medicines, production of testing kits, support to the frontline
workers and needy.
The pharma industry witnessed a massive change in the R &D, supply
chain, operations, digital adoption, and talent management. They
continued manufacturing much needed essential medicines.
Lupin contributed a sum of INR 55 million and INR 100 million to set up
a Lupin Covid-19 Relief fund. Lupin has donated 2.38 Million masks,
1.12 Million medical equipment, 130,800 PPE suits, 470,000 sanitizers,
208,200 food kits and supported 93,000 migrants during the COVID-19
crisis.
During COVID-19, Lupin was the first Indian pharma company to
suspend field operations and introduce a Digital platform for customer
engagement through which our field force could connect with doctors
effectively.
During the lockdown, Lupin rolled out close to 200 online programs and
had 15,000 enrolments.

Lupin pharma is the largest pharmaceutical market globally that

accounts for more than 45% of global pharmaceutical sales.
The Chairman Mrs. Manju. D Gupta states that FY20 was a good year
for them and they made significant progress against all odds. Lupin
recorded strong growth with India and the U.S. accounting for 74% of
the global revenues. They invested 10.3% of the revenue in R & D.
Lupin had 43 First-to file products with estimated market size of US
$43.6 billion. Manufacturing is their strength, in Q4FY20 AND Q1FY21
Lupin received positive audit outcomes. Lupin’s India business continues
to outperform the Indian Pharmaceutical Market with 13% YoY growth. In
FY20, they achieved an EBIDTA margin of 18.7%.
Key points to note for FY20- Lupin’s performance
1.Lupin Ltd. key Products include Pharmaceuticals which contributed Rs
10629.06 Crore to Sales Value (96.40 % of Total Sales)
2.Export Incentives contributed Rs 208.62 Crore to Sales Value (1.89 %
of Total Sales)
3.Other Services which contributed Rs 176.77 Crore to Sales Value
(1.60 % of Total Sales)
4.Other Operating Revenue which contributed Rs 11.21 Crore to Sales
Value (0.10 % of Total Sales)for the year ending 31-Mar-2020.
The company’s top management includes Dr.K U Mada, Ms.Christine
Mundkur, Mrs.Manju D Gupta, Mr.Richard Zahn, Mr.R A Shah, Mr.Nilesh
Deshbandhu Gupta, Mr.Jean-Luc Belingard, Mr.Dileep C Choksi,
Dr.Kamal K Sharma, Ms.Vinita Gupta. Company has B S R & Co. LLP
as its auditors.
As on 30-09-2020, the company has a total of 453,240,333 shares
outstanding.
Lupin is leading in the biotechnology industry and healthcare sector. It
has 18,000+ employees and equity type is ORD. FY21 will be important
for Lupin to sustain growth momentum and surge ahead. Lupin is
committed to delivering on differentiated products, flawless execution,
cost optimization, and attaining global quality and compliance standards.
Hence, I would like to conclude that Lupin Limited is doing very well and
has a promising future ahead.