Cipla : Annual Report 2022-23 (Single page)

Force for Good

Pioneering | Innovative | Rooted in Care

Cipla Limited Annual Report 2022-23

Table of Contents

Corporate Overview & Integrated Report

About this Report	02
About Cipla	03
Our First Principles	04
Financial Highlights	05
Global Reach	06
Board of Directors	08
Management Council	09
Ten-Year Highlights	10
Corporate Information	11
Chairman's Message	12
Executive Vice-Chairperson's Message	14
MD & GCEO's Message	16
CARE - Our ESG positioning	18
Awards and Accolades	20
Our Strategy towards Building an Integrated
Healthcare Organisation	22
Stakeholder Engagement	40
Materiality Assessment	44
Enterprise Risk Management	46
Manufactured Capital	52
Intellectual Capital	58
Human Capital	64
Relationship Capital	80
Social Capital	88
Natural Capital	96
Financial Capital and Management Discussion and
Analysis	106

Statutory Reports

Board's Report	121
Business Responsibility & Sustainability Report	144
Report on Corporate Governance	165

Financial Statements

Standalone Financial Statements with Auditor's Report	197
Consolidated Financial Statements with Auditor's Report	280
Salient Features of Financial Statements of	371
Subsidiaries and Associates
Independent Assurance Statement	372
GRI Mapping Index	375
GRI Content Index	381

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Force for Good

Pioneering | Innovative | Rooted in Care

A compassionate approach to medicine and healthcare that goes beyond the pursuit of profit. This has been the force impelling Cipla's history over the years. The story of Cipla is one of purpose & resilience - ideals that have remained unchanged in its mission to extend care to the last mile, the rarest disease and to under-served communities.

There's a treasure trove of stories in Cipla that narrate our journey, obstacles, course corrections, successes and most importantly how our business is a real force for good.

From pioneering the development of metered and dry powder inhalers to an unmatched presence across the care continuum, today Cipla is helping millions across the world to breathe free. Armed with this expertise we have set our sights to become global lung leaders.

We are driving our wellness ecosystem with a focus on New Science, Better Reach and a Digital-first approach. Backed by deep consumer insights, the consumer

wellness franchise houses brands across categories including cold and cough, smoking cessation, gut health, derma, feminine hygiene and more. We are passionate about building a strong global wellness franchise and are augmenting our global consumer wellness franchise by identifying brands with high consumer potential and strengthening our Over the Counter (OTC) portfolio across India and South Africa.

Pivoting to an organisation of digital natives, we have set up several foundational elements to drive our digitisation across the value chain right from adopting Industry 4.0 to transforming patient reach and care. Creating 'Plants of the future', our Indore Oral Solid Dosage (OSD) facility received the designation of an 'Advanced 4th Industrial Revolution Lighthouse' by the World Economic Forum (WEF) in 2022. In line with our digital thrust, we have invested in platforms like GoApptiv that help in enhanced engagements across tier 2-6 towns. The Breathefree app

aims to support respiratory patients throughout their journey, from awareness and acceptance of the disease to the adherence of treatment. In South Africa, the Brandmed platform empowers patients to take active charge of their health.

We have now embarked on a journey to create the Cipla of the future by investing in therapies of the future such as biosimilars, mRNA, CAR(T) and other such promising therapies. Be it our partnership for anti- infective drug, Elores; our investment

in Ethris for mRNA-based therapies, bolstering our differentiated portfolio, strong pipeline of in-licensed biosimilars or stepping up our diabetes portfolio.

Pioneering, Innovative and firmly rooted in CARE - that's the Cipla of future and we are gearing up deliver on our commitment, putting smiles on faces and make a difference in the lives of patients.

Force for Good	Cipla Limited | Annual Report 2022-23
Pioneering | Innovative | Rooted in Care

About this Report1

Welcoming our stakeholders to the Integrated Annual Report for FY 2022-23

It is an honour to present to our stakeholders our sixth Integrated Annual Report. We use this report to provide our readers with a holistic understanding of the quantitative and qualitative dimensions of our business. We also present our culture, strategy and performance in creating and delivering long term value to our stakeholders as a responsible pharmaceutical company.

Our reporting guidelines

Our Integrated Reporting process is guided by the principles and content element of the International Integrated Reporting Council's International Integrated Reporting Framework. We have also aligned our report

with some of the best practices and standards in financial and non-financial reporting observed globally.

This report has been prepared in accordance with the latest Global Reporting Initiative ('GRI') Standards. We have also presented a mapping of the United Nations Sustainable Development Goals. The financial and statutory information contained in this report is in compliance with the requirements of the Companies Act, 2013, Indian Accounting Standards, Secretarial Standards, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable laws and regulations.

Our core elements to enhance value creation

This report provides a comprehensive overview of our business model, organisational strategies and governance mechanisms on key topics that are material to us and our stakeholders.

We have outlined our financial and non-financial performance across six capitals which serve as a framework for understanding how our organisation creates and delivers value.

Financial	Manufactured
Capital	Capital

Intellectual	Human
Capital	Capital

Social &	Natural
Relationship	Capital
Capital

Reporting boundary and scope

The Integrated Annual Report for

FY 2022-23 presents information on financial and non-financial performance of Cipla's global operations from

1st April, 2022 to 31st March, 2023. Information on our joint ventures have been disclosed as relevant. Any specific exclusions are provided in respective sections.

Responsibility statement

The Board firmly believes that this report provides an accurate and unbiased overview of the Company's financial, sustainability and operational performance, covering all significant matters relevant to the Company in FY 2022-23 and beyond. The Board recognises that content of this report have been prepared by different functions and business units with direction of Management Council.

Assurance

Assurance on financial statements has been provided by our statutory auditor Walker Chandiok & Co LLP on page no. 197 and 280 of this report. Non-financial information has been independently assured by DNV Business Assurance India Private Limited on page no. 372 of this report.

Feedback

We take this opportunity to thank all our stakeholders for their interest in our company and its performance. Hence, we place a high value on your feedback on this report and encourage you to write to us.

Stakeholder feedback can be sent to: Name: Mr Rajendra Chopra Designation: Company Secretary E-mail:[e-mail]: [phone]

1 GRI 2-2, GRI 2-3, GRI 2-14 and Information in line with BRSR Question no. 13 of Section A

02

Corporate Overview & Integrated Report | Statutory Reports | Financial Statements

About Cipla1

Established in 1935, Cipla is a global pharmaceutical company with a strong commitment to make medicines accessible and affordable to those in need.

Our product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS and various other key therapeutic segments. With a rich portfolio, we are deepening our presence in the home markets of India, as well as South Africa, North America and other key regulated and emerging markets. Our 47 manufacturing sites around the world produces 50+ dosage forms and 1,500+ generic products to cater to our 85 markets2.

Making a difference for patients has been the driving force behind Cipla's work for more than eight decades. Our paradigm changing offer of a triple anti-retroviral therapy in HIV/AIDS

at less than a dollar a day in Africa in 2001 is widely acknowledged as having contributed to bringing inclusiveness, accessibility and affordability to the centre of the HIV movement.

Cipla is the third largest pharmaceutical company in India and the third largest in the private pharmaceutical market of South Africa (IQVIA, March 2023). We are the second largest Indian exporter to emerging markets3 and also among the most dispensed generic players in the US.

Our strategy to use resources efficiently, our efforts to make medicines more available and affordable and our strong financial performance provide a strong foundation for building a responsible business that is committed to sustainable growth.

Cipla is a responsible corporate citizen and is a partner of choice for global health organisations, peers and all stakeholders owing to its humanitarian approach to healthcare, in pursuit of its objective of 'Caring for Life' and its deep-rooted community ties.

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1GRI 2-1, GRI 2-6

2Represent countries/markets where sales are more than USD 0.5 million

3EXIM IntelliMax data for Emerging Markets (ex-SAGA, CIS, China) for FY 2022-23

03