r. Provisions:
Provision for legal claims are recognized when the
Company 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
recognized for future operating losses.
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 provisions due to the passage of time is
recognized as interest expense. Provision for litigation
related obligation represents liabilities that are expected
to materialize in respect of matters in appeal.
s. Offsetting financial instruments:
Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a net basis
or realize the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on
future events and must be enforceable in the normal
course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.
t. Current and non-current classification
An asset / liability is classified as current if:
(a) The amount is expected to be realized or sold or
consumed in the company's normal operating
cycle; the liability is expected to be settled in normal
operating cycle.
(b) Asset / liability is held primarily for the purpose of
trading.
(c) Asset / Liability is expected to be realized/settled
within twelve months after the reporting period; or
(d) The asset is cash or a cash equivalent unless it is
restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting
period.
(e) The entity has no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.
All other assets / liabilities are classified as non-current.
The operating cycle is the time between acquisition of
assets for processing and their realization in cash and
cash equivalents. Based on the nature of products
and time between acquisition of assets for processing
and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as
12 months for the purpose of current/non-current
classification of assets and liabilities.
u. Rounding of Amounts:
All amounts disclosed in the financial statements and
notes have been rounded off to the nearest crores as
per the requirement of Schedule III of the Companies
Act, 2013, unless otherwise stated.
Note 39. Audit Trail implementation
Due to standard functionality of SAP application, audit trail for
a specific access in the application and database functionality
of SAP, while changes made are logged, it does not capture
'old value' and 'new value' of changes made for which the
Company is working with the vendor for potential resolution.
The audit trail feature of the payroll application of the
Company was incrementally enabled and is fully operational
since lune 29, 2024.
For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm registration number: 012754N/N500016 Divi's Laboratories Limited
Dr. Murali K Divi N.V. Ramana
Managing Director Executive Director
DIN: 00005040 DIN:00005031
N.K. Varadarajan Dr. Kiran S Divi Nilima Prasad Divi
Partner Whole-time Director and Whole-time Director
Membership number: 90196 Chief Executive Officer (Commercial)
DIN:00006503 DIN:06388001
L. Kishorebabu M. Satish Choudhury
Chief Financial Officer Company Secretary
Membership No: F12493
Date: May 17, 2025 Date: May 17, 2025
Place: Hyderabad Place: Hyderabad
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