To the Members of
AstraZeneca Pharma India Limited
Opinion
1. We have audited the accompanying financial statements of AstraZeneca Pharma India Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2025, and the Statement of Profit and Loss (including Other comprehensive income), the Statement of changes in equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including material accounting policy information and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (“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 state of affairs of the Company as at March 31, 2025, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Key audit matter
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How our audit addressed the key audit matter
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Appropriateness of provisions recognised and
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Our procedures included the following:
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contingencies disclosed with regards to certain tax and regulatory matters
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•
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Understood, evaluated and tested the design and operating effectiveness of controls over the recognition, measurement,
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(Refer to the note 19 - “Provisions”, Note 20 - “Current
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presentation and disclosure made in the financial statements
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tax liabilities (net)” and Note 32(b) - “Contingent
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in respect of these matters;
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liabilities” to the financial statements)
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•
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Obtained a listing of the litigation matters and, read the correspondence with tax and regulatory authorities and where
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There are certain direct, indirect tax cases and regulatory
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relevant, the advice received by the management from its
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matters pending against the Company.
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•
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external experts;
Evaluated the independence, objectivity and competence of
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As at March 31,2025, the Company has tax demands
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the management experts involved;
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pertaining to direct and indirect tax matters aggregating
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•
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Along with Auditor’s tax and regulatory experts:
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to ' 1,740.9 million (including interest and penalties
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a.
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Gained an understanding of the current status of litigations
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where applicable) of which ' 88.6 million has been
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through our inquiries with the management and determined
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provided for and ' 984.1 million along with regulatory
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impact, if any, based on recent rulings and latest
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demand of ' 1,573.9 million has been disclosed as
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developments in respective laws.
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contingent liabilities, which are significant to the financial
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b.
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Evaluated management’s assessment on the probability of
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statements.
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outcome and the magnitude of potential outflow of economic resources in respect of:
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The Company has filed appeals against these tax
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(i)
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provisions for uncertain tax exposures based on case history
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demands with various appellate forums and with The
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and other available evidence to challenge the valuation
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Honourable High Court of Delhi on the NPPA matter
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and completeness of the provisions recognised by the
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which are currently pending adjudication.
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(ii)
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Management, and regulatory matter.
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Management judgement is involved in evaluation of the
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c.
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Examined the evaluation obtained from the Company’s
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likelihood of ultimate outcome of the tax and regulatory
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internal legal counsel to confirm our understanding of
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disputes and the probable amount of the provisions to be
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outstanding cases;
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recognised and contingent liability to be disclosed and is
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d.
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Evaluated the adequacy of disclosures made in the financial
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hence determined to be a key audit matter.
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statements.
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Appropriateness of restructuring provision
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Our audit procedures relating to provision for restructuring included the following:
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(Refer Note 19 “Provisions” and Note 27B on “Exceptional items” to the financial statements)
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Obtained an understanding and evaluated the management’s process for assessing the need for restructuring cost
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The Company’s management has approved a plan to
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provision.
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shut down and dispose of its manufacturing facility
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Evaluated the design and tested the operating effectiveness
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located in Bengaluru. Management has prepared a
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of financial controls over provision for restructuring costs
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detailed plan for the closure of the manufacturing facility.
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including the assessment of the estimates involved and the
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Accordingly, a provision relating to such restructuring
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timing of utilization of the provision.
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cost has been accounted for in the books amounting to
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Understood and evaluated the management’s plan for
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' 613.2 million. The expense related to the restructuring
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restructuring, which gave rise to a constructive obligation on
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of ' 636.4 million has been presented as an ‘Exceptional
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the Company resulting in recognition of restructuring cost
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item’ in the Statement of Profit and Loss.
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•
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provision.
Verified the accuracy and completeness of the provision for
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Significant management judgement is involved in
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restructuring cost by assessing the basis of restructuring
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estimation of the provision for restructuring, which
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provision and the mathematical accuracy of the computation.
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is based on the Company’s policy, past history of
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Assessed the accounting principles applied by the Company
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settlements and best estimates of current expectations.
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to measure and recognise the restructuring cost provision.
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Hence, this has been considered as a key audit matter.
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Verified the adequacy of disclosures in accordance with the Indian Accounting Standards and Companies Act Schedule III requirements.
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Other Information
5. The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the financial statements
6. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company 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.
7. In preparing the financial statements, Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
8. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the
financial statements
9. |Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
10. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
14. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
15. 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 purposes 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, except for the requirement of maintaining back up of certain books of account and other books and papers (which, however, have been maintained from January 20, 2025) and the matters stated in paragraph 15(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended) (“the Rules”) including the related backup of audit trail.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other comprehensive income), the Statement of changes in equity and the Statement of cash flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2025, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025, from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our remarks in paragraph 15(b) above on reporting under Section 143(3)(b) and paragraph 15(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended).
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.
(h) 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 has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 19 and 32(b) to the financial statements.
ii. The Company was not required to recognise a provision as at March 31, 2025 under
the applicable law or Indian Accounting Standards, as it does not have any material foreseeable losses on long-term contract.
The Company did not have any derivative contracts as at March 31, 2025.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.
iv. (a) The management has represented
that, to the best of its knowledge and belief, as disclosed in Note 44(vi) to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 44(vii) to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
As stated in Note 46 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval
of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. Based on our examination, which included test checks, the Company has used multiple accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and that has operated throughout the year for all relevant transactions recorded in the software, except that:
(a) i n one accounting software, the audit trail was not maintained in case of modification by users with specific access during the period April 1, 2024 to March 5, 2025 and for direct database changes; and
(b) in accounting software which is operated by a third party service provider for maintaining books of account, the audit trail for one software does not contain the pre-modified values for direct database changes; in another software, audit
trail is maintained for direct database changes from October 1, 2024 onwards; and in another software, in the absence of any information pertaining to audit trail for direct database changes in the independent service auditor’s report, we are unable to comment on the audit trail (edit log) feature in that accounting software.
During the course of performing our procedures, other than the aforesaid instances of audit trail not maintained where the question of our commenting does not arise, we did not notice any instance of audit trail feature being tampered with. Further, the audit trail, to the extent maintained in the prior financial year, has been preserved by the Company as per the statutory requirements for record retention.
16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
Sharmila Ramaswamy Partner
Place: Bengaluru Membership Number: 215131
Date: May 30, 2025 UDIN: 25215131BMNPYU4040
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