Jubilant Pharmova Ltd Directors Report.

Your Directors are pleased to present the Forty Third Annual Report together with the Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2021.

OVERVIEW

Jubilant Pharmova Limited (the ‘Company or ‘Jubilant Pharmova) is a company engaged in Pharmaceuticals, Contract Research and Development Services and Proprietary Novel Drugs businesses. Pharmaceuticals business through Jubilant Pharma Limited, Singapore is engaged in manufacturing and supply of Radiopharmaceuticals with a network of 48 radiopharmacies in the US, Allergy Therapy Products, Contract Manufacturing of Sterile Injectables and Non-sterile products, Active Pharmaceutical Ingredients (‘APIs) and Solid Dosage

Formulations through 6 manufacturing facilities that cater to all the regulated markets including the USA, Europe and other geographies. Jubilant Biosys Limited provides Contract Research and Development Services through 2 world class research centers in Bangalore and Noida in India. Jubilant Therapeutics is involved in Proprietary Novel Drugs business and is an innovative biopharmaceutical company developing breakthrough therapies in the area of oncology and auto-immune disorders. Jubilant Pharmova Limited has a team of around 5,800 multicultural people across the globe. The Company is well recognized as a ‘Partner of Choice by leading pharmaceuticals companies globally. For more information, please visit: www.jubilantpharmova.com.

RESULTS OF OPERATIONS AND STATE OF COMPANYS AFFAIRS FINANCIAL RESULTS

( Rs / million)
Standalone Consolidated
Particulars Year ended March 31, 2021 Year ended March 31, 2020 Year ended March 31, 2021 Year ended March 31, 2020
Continuing Operations:
Total Revenue from Operations 27,095 31,399 60,985 59,758
Total Operating Expenditure 22,824 27,690 47,020 44,279
EBITDA (before Other Income) 4,271 3,709 13,965 15,479
Other Income 479 1,732 176 374
EBITDA 4,750 5,441 14,141 15,853
Depreciation, Amortisation and Impairment Expense 1,000 1,074 3,490 3,398
Finance Costs 1,018 1,362 1,841 1,997
Exceptional Items - 17 212 329
Share of profit of an associate - - 113 -
Profit before Tax 2,732 2,988 8,711 10,129
Tax Expenses 587 (223) 2,972 3,351
Profit for the year from continuing operations 2,145 3,211 5,739 6,778
Discontinued Operations:
Profit from discontinued operations - - 3,409 1,976
Tax expense/(credit) of discontinued operations - - 792 (228)
Profit after tax of discontinued operations - - 2,617 2,204
Reported Net Profit After Tax 2,145 3,211 8,356 8,982
Attributable to:
Owners of the Company 2,145 3,211 8,359 8,982
Non-Controlling Interests - - (3) -
Other Comprehensive Income (18) (18) 1,743 331
Total Comprehensive Income for the year 2,127 3,193 10,099 9,313
Retained Earnings brought forward from previous year 11,533 9,869 38,448 31,026
Profit for the year (attributable to owners of the Company) 2,145 3,211 8,359 8,982
Re-measurement of defined benefit obligations (8) (19) (8) (38)
Dividend on Equity Shares - (1,513) - (1,513)
Tax on Dividend on Equity Shares - (15) - (15)
Transfer (to)/ from Legal Reserve - - (2) 6
Stock awards exercised - - 2 -
Adjustment on amalgamation of certain promoter controlled 1 - 1 -
entities pursuant to the Composite Scheme of Arrangement
Adjustment on account of demerger pursuant to the (2,122) - (3,623) -
Composite Scheme of Arrangement
Retained Earnings to be carried forward 11,549 11,533 43,177 38,448

(I) Standalone Financials

Revenue from Operations

In the Financial Year 2020-21, on standalone basis, the Company recorded total revenue from operations of Rs 27,095 million.

EBITDA

For the year ended March 31, 2021, Earnings before Interest, Taxes, Depreciation and Amortisation (‘EBITDA) stood at Rs 4,750 million with EBITDA margins at 17.5%.

Reported Net Profit after Tax and EPS

Reported Net Profit after Tax was Rs 2,145 million in the Financial Year 2020-21. Basic Earnings Per Share (‘EPS) stood at Rs 13.47.

(II) Consolidated Financials

The Consolidated Financial Statements, prepared in accordance with the provisions of the Companies Act, 2013 (the ‘Act), the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations) and Indian Accounting Standards (Ind-AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Act, form part of the Annual Report.

Performance Review

In FY 2020-21, in our continuing business we reported stable revenues, despite COVID-19 challenges, due to the diverse range of our businesses. While our Specialty Pharma business was impacted due to COVID-19 and competition in radiopharma, our CMO, Generics and Contract Research and Development Services businesses delivered strong growth during the year. Revenue from the continuing operations for the year was Rs 60,985 million as compared to Rs 59,758 million in the Financial Year 2019-20. Revenue from the Pharmaceuticals segment grew 1% YoY at Rs 57,897 million as compared to Rs 57,143 million in the Financial Year 2019-20. Revenue from the Contract Research and Development Services was Rs 3,052 million for the year as compared to Rs 2,515 million in the Financial Year 2019-20. Revenue from Proprietary Novel Drugs stood at

Rs 37 million during the year.

The overall revenue (including Life Science Ingredients business) for the year was Rs 89,055 million as compared to Rs 91,544 million in the Financial year 2019-20.

The EBITDA from the continuing operations was

Rs 14,141 million for the year as compared to Rs 15,853 million in the Financial Year 2019-20. The EBITDA of the Pharmaceuticals segment was Rs 13,863 million for the year as compared to Rs 15,555 million in the Financial Year 2019-20 with margins of 23.9% as against 27.2% in the Financial Year 2019-20. Contract Research and Development Services reported EBITDA of Rs 1,085 million as compared to Rs 855 million in the Financial Year 2019-20. This translates into EBITDA margin of 35.6% for the year.

The overall EBITDA (including Life Science Ingredients business) for the year was Rs 19,209 million as compared to Rs 19,945 million in the Financial Year 2019-20. This translates into the EBITDA margin of 21.6% for the year. Profit after Tax from the continuing operations was Rs 5,739 million as compared to Rs 6,778 million in the Financial Year 2019-20. Earnings Per Share (EPS) from the continuing operations was Rs 36.05 per equity share of Rs 1 each. Profit after Tax (including Life Science Ingredients business) for the year was Rs 8,356 million as compared to Rs 8,982 million in the Financial Year 2019-20. EPS for the year was Rs 52.48 per equity share of Rs 1 each. The Company has considered the possible effects that may result from the COVID-19 pandemic on the carrying amounts of receivables, inventories, property, plant and equipment and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions, the Company has used internal and external sources of information, including economic forecasts and estimates from market sources, on the expected future performance of the Company. On the basis of evaluation and current indicators of future economic conditions, the Company expects to recover the carrying amounts of these assets and does not anticipate any impairment to these financial and non-financial assets. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to the future economic conditions.

DIVIDEND

The Board is pleased to recommend a dividend of 500% i.e. Rs 5 per fully paid up equity share of Rs 1 each amounting to Rs 796.41 million for the year ended March 31, 2021. The payment of dividend is subject to approval of the shareholders at the forthcoming Annual General Meeting (‘AGM) of the Company and shall be subject to deduction of income tax at source.

CAPITAL STRUCTURE

(a) Share Capital

Pursuant to the Composite Scheme of Arrangement, authorised share capital of the Company has increased from Rs 655,000,000 divided into 655,000,000 equity shares of Rs 1 each to Rs 1,430,200,000 divided into 1,430,200,000 equity shares of Rs 1 each during the year. There has been no change in the subscribed and paid-up share capital of the Company.

As on March 31, 2021, the paid-up share capital stood at

Rs 159,281,139 comprising 159,281,139 equity shares of

Rs 1 each.

(b) Employees Stock Option Plan and General Employee Benefits Scheme

The Company has an employee stock option plan namely JLL Employees Stock Option Plan 2018 (‘Plan 2018). During the year, Jubilant Employees Welfare Trust has purchased 1,07,140 shares of the Company for implementation of the Plan 2018. No options have been granted under the Plan 2018 during the year. There was no material change in the Plan 2018 during the year and the Plan is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014 (the ‘SEBI ESOP Regulations).

The Company has a general employee benefits scheme namely Jubilant General Employee Benefits Scheme-2019 (‘JGEBS-2019). During the year, the Nomination, Remuneration and Compensation Committee of the Company has approved implementation of JGEBS-2019. The Scheme is in compliance with the SEBI ESOP Regulations and there was no material change in the Scheme during the year.

The details of the Plan 2018 and JGEBS-2019 pursuant to the SEBI ESOP Regulations have been placed on the website of the Company and web-link of the same is https://www.jubl.com/Uploads/image/893imguf_esop_ disclosure2021.pdf.

(c) Debentures

During the year, the Company offered, issued and allotted Secured Redeemable Non-Convertible Debentures (‘NCDs) of Rs 1,000 Million on a private placement basis. NCDs were listed on the Whole-sale Debt Market Segment of National Stock Exchange of India Limited (‘NSE). The net proceeds of the NCDs were used for refinancing the existing debt, capital expenditure, maintenance capital expenditure, long term working capital and for other purposes in the normal course of business. Pursuant to the Composite Scheme of Arrangement, the Company has transferred the NCDs to the Resulting Company, Jubilant Ingrevia Limited. During the year, the Company has also offered, issued and allotted Secured Redeemable Unlisted Non-Convertible Debentures (‘NCDs) of Rs 950 Million on a private placement basis. The net proceeds of the NCDs have been used for refinancing the existing debt, capital expenditure, maintenance capital expenditure, long term working capital and for other purposes in the normal course of business.

COMPOSITE SCHEME OF ARRANGEMENT

The Honble National Company Law Tribunal, Allahabad Bench (‘NCLT) by its Order dated December 23, 2020 sanctioned the Composite Scheme of Arrangement amongst HSB Corporate Consultants Private Limited, Jubilant Stock Holding

Private Limited, SSB Consultants & Management Services Private Limited, JCPL Life Science Ventures and Holdings Private Limited, JSPL Life Science Services and Holdings Private Limited (collectively ‘Transferor Companies), Jubilant Pharmova Limited (name of Jubilant Life Sciences Limited changed to Jubilant Pharmova Limited effective from February 1, 2021 - ‘Transferee Company/ Demerged Company) and Jubilant Ingrevia Limited (name of Jubilant LSI Limited changed to Jubilant Ingrevia Limited effective from October 16, 2020 - ‘Resulting Company) and their respective Shareholders and Creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (the "Scheme"). Demerger of the Life Science Ingredients (‘LSI) business of the Company pursuant to the Scheme became effective from February 1, 2021. Consequently, the LSI business has been demerged into Jubilant Ingrevia Limited. The shareholders of the Company have been allotted Equity Shares of Jubilant Ingrevia Limited in the ratio of 1:1 i.e. for every 1 (One) Equity Shares of Rs 1 each of the Company held as on the Demerger Record Date i.e. February 5, 2021, the shareholders have been allotted 1 (One) Equity Share of Rs 1 each (fully paid-up) of Jubilant Ingrevia Limited.

NAME CHANGE

Pursuant to the Composite Scheme of Arrangement, the name of the Company was changed to Jubilant Pharmova Limited effective from February 1, 2021.

SUBSIDIARIES

As on March 31, 2021, the Company had 39 subsidiaries. Brief particulars of the principal subsidiaries on a stand-alone basis are given below:

Jubilant Pharma Limited

Jubilant Pharma Limited, Singapore (‘Jubilant Pharma) is a wholly-owned subsidiary of your Company. Jubilant Pharma holds the global pharmaceutical business of the Company through its subsidiaries in USA, Canada, Europe, India and rest of the world. These subsidiaries of Jubilant Pharma are engaged in manufacturing, marketing and distribution of various pharmaceutical products and services including APIs, oral dosage forms (tablets and capsules), contract manufacturing of sterile injectables including vaccines, ointment, creams and liquids, allergy therapy products and radiopharmaceutical products. Jubilant Pharma also operates a network of radiopharmacies in the US, through its wholly-owned subsidiary with 48 pharmacies in 22 states of USA. Total income of the company during the Financial Year 2020-21 was

Rs 393.17 million as compared to Rs 1,983.36 million during the Financial Year 2019-20. During the year, Jubilant Pharma has redeemed the principal amount of US$200 million on pro-rata basis out of US$300 million Senior Notes due 2021 ("Notes 2021"). The company had earlier redeemed US$100 million in FY 2019-20. With this, the Notes 2021 have been fully redeemed. The redemption of US$200 million has been refinanced by a term loan of US$150 million and the remaining US$50 million has been paid out of cash balance.

During the year, Jubilant Pharma has entered into a strategic partnership with SOFIE Biosciences, Inc. (‘SOFIE), USA. Under the terms of the partnership, Jubilant Pharma with 25% of equity holding shall be a strategic partner to SOFIE, enabling SOFIE to continue to grow production capacity, advance its theranostics pipeline, and support novel PET diagnostic manufacturing and distribution within the US.

Jubilant Generics Limited

Jubilant Generics Limited (‘JGL) is a wholly-owned subsidiary of the Company through Jubilant Pharma. JGL owns two manufacturing facilities; one at Nanjangud, Karnataka and another at Roorkee, Uttarakhand which are engaged in APIs and Dosage Forms businesses, respectively. It has three state-of-the-art R&D Centres in Noida, Uttar Pradesh, which are equipped with world class infrastructure. These R&D centres are key to delivering innovative, quality products for various advanced regulated markets and providing sustainability to the organisational strategies across value chain of the technologically intensive pharmaceutical industry. With acquisition of the India Branded Pharmaceuticals ("IBP") business from Jubilant Pharmova Limited with effect from 31 March 2020, JGL also caters dosage formulations under its own brand name to the Indian market in therapeutic areas including chronic specialties like Cardiology and Diabetes.

The manufacturing location at Nanjangud, Karnataka, spread over 69 acres, is engaged in manufacturing of APIs and caters to the sales worldwide primarily to the regulated markets. The manufacturing facility is inspected by global regulatory agencies, which include USFDA, Health Canada, TGA Australia, EU GMP from National Institute of Pharmacy and Nutrition Hungary, Japan PMDA, FSSAPS France, KFDA Republic of Korea, ANVISA Brazil, COFEPRIS, Mexico among others. API portfolio is focused on Lifestyle driven Therapeutic Areas (CVS, CNS) and also targets complex and newly approved molecules. The company is among the leading global producers for five APIs in its portfolio helping it to maintain its competitive position in the industry. The dosage formulations manufacturing location at Roorkee, Uttarakhand, with 5 acres of infrastructure, is inspected by global regulatory agencies such as USFDA, Japan PMDA, UK MHRA, Australia TGA, WHO and Brazil ANVISA. This facility primarily manufactures immediate and modified release oral solid dosage forms (Tablets, Capsules and Powder for Suspension) with capabilities on complex processes like fluid bed pellet coating, MUPS (Multi Unit Particulate System) and extended release drug delivery technology based on matrix formulations and functional coatings. In addition to manufacturing and supplies of finished formulations to the US market, JGLs non-US finished formulations business is focussed on various markets in EU, Japan, Canada, Australia as well as various countries in the emerging markets. In selected geographies, JGL also caters to the market under its own brand name. JGLs major therapy areas includes Cardiovascular, CNS and Gastrointestinal products with special focus on vertical integration and in-house APIs leading to greater competitiveness in the market place. JGL has capabilities to develop and transfer the technology for APIs and dosage forms including immediate and modified release oral solids, parenteral and ophthalmic products from its R&D centres at Noida, Uttar Pradesh. During the Financial Year 2018-19, USFDA and Health Canada jointly inspected the Nanjangud facility of JGL. This facility was put under FDAs Inspection Classification status of "Official Action Indicated" (‘OAI) in March 2019. As a result, supplies of the approved products to USA will continue while approvals of pending applications or supplements may be withheld. Health Canada issued a "non-conformance" rating for the facility. JGL undertook a holistic review to implement necessary corrective and preventive actions and also engaged third party cGMP consultants to support and identify areas of improvement and has been voluntarily updating USFDA. During the Financial Year 2019-20, TGA-Australia inspected the Nanjangud facility and granted GMP certificate with a compliant rating of "A1(Good)". Based on the actions taken on various commitments, Health Canada also changed its rating to "Compliant" for the Nanjangud facility in February, 2020. During the Financial Year 2018-19, the USFDA inspected the Roorkee facility of JGL. Consequently, USFDA issued Warning Letter to the Roorkee facility in March, 2019. As a result, supplies of the approved products to USA will continue while approvals of the pending applications or supplements may be withheld. In October 2019, the USFDA conducted an inspection of the Roorkee facility and issued a Form 483 with six observations. JGL has responded to the observations with necessary corrective and preventive actions. JGL has engaged independent third party cGMP consultants to mitigate the gaps identified by the USFDA and is keeping the USFDA updated on its corrective and preventive actions. During the Financial Year 2019-20, TGA, Australia also inspected the Roorkee facility and provided GMP compliant certificate with a compliant rating "A1(Good)". In March 2021, the USFDA conducted an inspection of the Roorkee facility and issued a Form 483 with seven observations. JGL has responded to the observations with necessary corrective and preventive actions.

JGL continues manufacturing of the approved products at both Nanjangud and Roorkee facilities and distribution thereof globally, including US, and is committed to implement the necessary corrective actions required to address the USFDA concerns at the earliest.

During the Financial Year 2020-21, Jubilant entered into a non-exclusive voluntary licensing agreement with Gilead to register, manufacture and sell Gileads investigational drug Remdesivir in 127 countries including India, as a potential therapy for COVID-19 treatment. After getting approval from the Drug Controller General of India to manufacture and market the antiviral drug Remdesivir, JGL successfully launched the lyophilized injection under its own brand name "JUBI-R". JGL was also able to manufacture in-house Remdesivir API. Despite the challenges due to COVID 19 pandemic, JGL has been able to strongly withstand the intermittent operating challenges and continues to run its operations with appropriate precautionary measures. Total income of the company during the Financial Year 2020-21 was Rs 14,771.53 million as compared to Rs 11,670.19 million during the Financial Year 2019-20.

The Company is in compliance with Regulation 24A of the Listing Regulations. Secretarial Audit was conducted for JGL, an unlisted material subsidiary of the Company. Copy of Secretarial Audit Report of JGL is available on the website of the Company. The Secretarial Audit report of JGL does not contain any qualification, reservation or adverse remark or disclaimer.

Jubilant Cadista Pharmaceuticals Inc.

Jubilant Cadista Pharmaceuticals Inc., a corporation incorporated in Delaware, USA is a wholly-owned subsidiary of Jubilant Pharma Holdings Inc. This company is engaged in the business of manufacturing solid dosage forms of generic prescription pharmaceuticals at its USFDA approved manufacturing facility in Salisbury, Maryland, USA. Its customer base includes large wholesalers, retail and pharmacy chains. As on March 31, 2021, there were 25 products marketed in the US with focus in the therapeutic areas of CVS, CNS, Anti Allergic, Steroids, etc. Total income of the company during the Financial Year 2020-21 was Rs 10,100.86 million as compared to Rs 9,106.11 million during the Financial Year 2019-20.

Jubilant HollisterStier LLC

Jubilant HollisterStier LLC is a wholly-owned subsidiary of Jubilant Pharma Holdings Inc. This subsidiary is a fully integrated leading CMO player based out of North America with operations in Spokane, Washington, USA and Montreal, Canada. The facilities offer manufacturing services including sterile injectable (both liquid and lyophilisation), ampoules and sterile and non-sterile ointments, creams, and liquids. This company is among the leading Contract Manufacturers in North America for sterile injectable. Its facilities are approved by regulators across the world including US FDA, Health Canada, ANVISA Brazil, PMDA Japan, Russia, MHRA and various others. The products manufactured at both sites are sold in over 50 countries across the globe. The company lays strong emphasis on compliance and Intellectual Property Rights (IPR). The company will continue to focus on the highest level of compliance with a lean operation setup and supply of right quality products in a timely manner to its customers which helps it further grow the order book. Injectables form an increasing proportion of new approvals by innovators for which there is shortage of capacity for high quality manufacturing sterile sites as available with the company. Its CDMO business has played a very integral role in current pandemic with contracts from Gilead, Eli Lilly and Novavax for manufacturing vaccines and therapeutic drugs to fight the pandemic. Another area of growth for this subsidiary is sterile ophthalmic. With ageing population across the globe, eye ointments are gaining popularity. The company is witnessing a lot of request for proposals in this area as well. Basis this assessment, the company has decided to set up a 200 bottles per minute ophthalmic line in Montreal. The line is currently in validation stage at the vendors site and the company plans to install the same at Montreal site in the current fiscal year. Once operational, the line is expected to further drive growth for the CMO business.

The company is also continuing to invest on its sites to address future growth opportunities. It has already placed orders for a brand new 400 vial a minute isolator injectable line at Spokane with 300 square feet lyophilizer.

Total income of the company during the Financial Year 2020-21 was Rs 15,874.96 million as compared to Rs 11,626.74 million during the Financial Year 2019-20.

Jubilant DraxImage Inc.

Jubilant DraxImage Inc. (‘JDI) is a wholly-owned subsidiary of the Company through Jubilant Pharma. JDI has a solid foundation in speciality pharma. JDI is headquartered in Montreal, Canada, where it operates a highly specialised manufacturing facility approved by USFDA, Health Canada and selected EU countries. JDI develops, manufactures and commercialises radiopharmaceuticals used in Nuclear Medicine for the diagnosis, treatment and monitoring of a broad range of diseases. It serves hospital-based customers (Nuclear Medicine Physicians, Nuclear Cardiologists and Technologists) in addition to specialised commercial radiopharmacies in the United States and Canada. JDI employs about 220 highly skilled professionals dedicated to providing high quality, reliable products and services to healthcare providers around the globe. The foundation of the business is supported by an experienced research and development organisation, specialised radiopharmaceutical manufacturing, strong regulatory affairs, quality systems and marketing and commercial operations. The disease areas of specialisation include cardiology, oncology, neurology, and therapeutics for neuro-endocrine and thyroid diseases.

JDI is a market leader in North America in several specialty areas, including I-131 Therapeutic and Diagnostics (Theranostics) for imaging and treatment of thyroid diseases and thyroid cancer, Macro-Aggregated Albumin (MAA) for lung perfusion imaging and Diethylene Triamine Penta-acetic Acid (DTPA) for renal, brain and functional pulmonary imaging. RUBY-FILL, a cutting edge, novel technology, for PET myocardial perfusion imaging (MPI) under rest and pharmacological stress conditions to evaluate regional myocardial perfusion in adult patients with suspected or known coronary artery disease is approved by USFDA, Health Canada, Swissmedic, Switzerland, BfArM, Germany and Le gouvernement du Grand-Duch de Luxembourg, Luxembourg. JDIs primary mission is to improve lives through nuclear medicine on a global scale. JDI is committed to the development of novel radiopharmaceutical products for diagnostic and therapy, which will enable early and accurate diagnosis and lead to the improved treatment of diseases for better patient management across the globe. Total income of the company during the Financial Year 2020-21 was Rs 9,492.35 million as compared to Rs 15,040.20 million during the Financial Year 2019-20.

Jubilant Pharma NV

This is a wholly-owned subsidiary of the Company through JGL and Jubilant Pharma. This company holds shares of Jubilant Pharmaceuticals NV (99.81%) and PSI Supply NV (99.50%) along with Jubilant Pharma which holds the balance shares.

Jubilant Pharmaceuticals NV

This is a wholly-owned subsidiary of the Company through Jubilant Pharma NV, Belgium, which holds 99.81% of its shares and Jubilant Pharma holds the balance shares. This company is engaged in the business of licensing generic dosage forms and providing regulatory services to generic pharmaceutical companies. Total income of the company during the Financial Year 2020-21 was Rs 7.81 million as compared to Rs 0.46 million during the Financial Year 2019-20.

PSI Supply NV

This is a wholly-owned subsidiary of the Company. 99.50% of its shares are held by Jubilant Pharma NV and the balance by Jubilant Pharma. It is engaged in the supply of generic dosage forms to the European markets. Total income of the company during the Financial Year 2020-21 was Rs 330.99 million as compared to Rs 285.69 million during the Financial Year 2019-20.

Jubilant Biosys Limited

Jubilant Biosys Limited (‘Biosys) provides Drug Discovery Services to global pharmaceutical and biotech companies in:

• Standalone Service Model including functional services in the areas of Medicinal Chemistry, In Vitro Biology, In Vivo Biology, Structural Biology, DMPK, Toxicology and Discovery Informatics on Full Time Equivalent (FTE) or Fee For Service (FFS) based model;

• Collaborative/Partnership Model with integrated discovery program across a single or a portfolio of molecules;

• Synthetic Organic Chemistry, Process Research & Development, Scale up and GMP supplies under Full Time Equivalent, or Fee for Service model The Honble National Company Law Tribunal, Allahabad Bench (‘NCLT) by its Order dated June 29, 2020 (formal order received on July 2, 2020) sanctioned the Composite Scheme of Arrangement among Jubilant Chemsys Limited (Transferor Company), Jubilant Biosys Limited (Transferee Company/ Demerged Company) and Jubilant Therapeutics India Limited (Resulting Company) and their respective Shareholders and Creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and the Rules made thereunder (‘Scheme).

The Scheme became effective from July 28, 2020. On the effective date of the Scheme, ‘discovery and development of novel small molecules for the treatment of cancer business of Biosys has been demerged into Jubilant Therapeutics India Limited.

The shareholders of Biosys have been allotted Equity Shares of Jubilant Therapeutics India Limited in the ratio of 100:631 i.e. for every 631 (Six Hundred Thirty One) Equity Shares of

Rs 10 each of Biosys held as on the Demerger Record Date i.e. October 7, 2020, the shareholders have been allotted 100 (One Hundred) Equity Shares of Rs 10 each (fully paid-up) of Jubilant Therapeutics India Limited.

Total income of the company during the Financial Year 2020-21 was Rs 3,214.49 million as compared to Rs 1,424.62 million during the Financial Year 2019-20.

Jubilant DraxImage Radiopharmacies Inc.

Jubilant DraxImage Radiopharmacies Inc. (‘JDRI) is a wholly-owned subsidiary of the Company through Jubilant Pharma Holdings Inc. JDRI undertakes radiopharmaceutical distribution business through a network of 48 pharmacies in the United States. Total income of the company during the Financial Year 2020-21 was Rs 12,118.23 million as compared to Rs 13,952.10 million during the Financial Year 2019-20.

Other subsidiaries are mentioned below:
Jubilant Pharma Holdings Inc.
Jubilant Pharma Australia Pty Limited
Jubilant Life Sciences (BVI) Limited
Jubilant Innovation Pte. Limited
Jubilant Innovation (USA) Inc.
Jubilant HollisterStier Inc.
Jubilant First Trust Healthcare Limited
Jubilant Drug Development Pte. Limited
Jubilant DraxImage Limited
Jubilant DraxImage (USA) Inc.
Jubilant Discovery Services LLC
Jubilant Clinsys Inc.
Jubilant Clinsys Limited
Jubilant Therapeutics India Limited
Jubilant Business Services Limited
Jubilant Therapeutics Inc.
Jubilant Pharma SA Pty Limited
Jubilant Pharma UK Limited
Jubilant Episcribe LLC
Jubilant Epicore LLC
Jubilant Prodel LLC
Jubilant Epipad LLC
>Drug Discovery and Development Solutions Limited
Draxis Pharma LLC
Draximage Limited, Ireland
Draximage (UK) Limited
6981364 Canada Inc. (Merged into Jubilant Draximage Inc.
effective from May 31, 2021)

TrialStat Solutions Inc.

Jubilant Biosys Innovative Research Services Pte. Limited (Incorporated on July 22, 2020)

During the year, the following changes have taken place pertaining to the subsidiaries of the Company:

1. Jubilant Innovation (India) Limited, Vanthys Pharmaceutical Development Private Limited and Draximage Limited, Cyprus have been liquidated.

2. Jubilant Chemsys Limited has been merged into Jubilant Biosys Limited.

3. Pursuant to the Composite Scheme of Arrangement sanctioned by the Honble National Company Law Tribunal, Allahabad Bench by its Order dated December 23, 2020, the following changes have taken place: a) Jubilant Life Sciences International Pte. Limited, Jubilant Life Sciences (Shanghai) Limited, Jubilant Life Sciences (USA) Inc., Jubilant Infrastructure Limited and Jubilant Life Sciences NV have ceased to be subsidiaries of the Company, on demerger of the Life Science Ingredients business of the Company into Jubilant Ingrevia Limited. b) Jubilant Ingrevia Limited ceased to be a subsidiary of the Company.

Associate Company

During the year, SOFIE Biosciences Inc., USA has become associate of the Company.

PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES

The performance and financial position of the subsidiaries are given in Form AOC-1 attached to the Financial Statements for the year ended March 31, 2021.

PARTNERSHIPS

Jubilant HollisterStier General Partnership

It is a Canada based partnership managed by two subsidiaries of the Company - Jubilant HollisterStier Inc. and Draxis Pharma LLC. This partnership provides contract manufacturing services. It manufactures products in two categories: sterile products and non-sterile products. Sterile products include liquid and freeze-dried (lyophilized) injectables, ampoules, ophthalmic tubes/ solutions and sterile ointments and creams. Non-sterile products include non-sterile ointments, creams and liquids. The products manufactured by this partnership are supplied to over 50 countries. The partnership is currently exploring to invest for growth and will be completing expansion of its ophthalmic offerings by setting up a brand new preservative free line by the end of the year. The manufacturing location at Montreal, Quebec, Canada is approved by Health Canada, USFDA and other regulatory authorities.

Draximage General Partnership

It was a Canada based partnership managed by two Canadian subsidiaries of the Company i.e. Jubilant Draximage Inc. and 6981364 Canada Inc. Consequent to merger of 6981364 Canada Inc. into Jubilant Draximage Inc., the partnership stands dissolved effective from May, 31, 2021.

STATUTORY AUDITORS

In terms of provisions of Section 139 of the Act and the Rules made thereunder, the Shareholders of the Company have at the 40th Annual General Meeting (‘AGM), approved the reappointment of M/s. B S R & Co. LLP, Chartered Accountants as Statutory Auditors of the Company for another term of 5 years from conclusion of the 40th AGM of the Company till conclusion of the 45th AGM of the Company to be held in the year 2023.

The Auditors Reports for the Financial Year 2020-21 do not contain any qualification, reservation, adverse remark or disclaimer.

COST AUDIT

In terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, the cost accounts and records are prepared and maintained by the Company pursuant to the provisions of Section 148(1) of the Act.

Pursuant to Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014, the Central Government has prescribed audit of cost records for certain products. Accordingly, the Company carries out cost audit of its products. Based on the recommendations of the Audit Committee, the Board of Directors has re-appointed M/s J. K. Kabra & Co., Cost Accountants as Cost Auditors of the Company to conduct cost audit for the Financial Year 2020-21.

SECRETARIAL AUDIT

The Board had appointed M/s Sanjay Grover & Associates, Company Secretaries to conduct Secretarial Audit pursuant to the provisions of Section 204 of the Act for the Financial Year 2020-21. The Report of the Secretarial Auditors is attached as Annexure-1 to this Report and does not contain any qualification, reservation, adverse remark or disclaimer.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Mr. Shyam S. Bhartia retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. The Board has re-appointed Mr. Hari S. Bhartia as Co-Chairman and Managing Director of the Company for a period of 3 years effective from April 1, 2022 subject to approval of shareholders at the ensuing AGM. The tenure of Mr. Sushil Kumar Roongta and Mr. Vivek Mehra as Independent Directors shall expire on May 22, 2022. The Board has, at its meeting held on June 4, 2021, recommended re-appointment of Mr. Sushil Kumar Roongta and Mr. Vivek Mehra as Independent Directors for another term of 5 consecutive years effective from May 23, 2022 for approval of Shareholders at the ensuing AGM. In the opinion of the Board, Mr. Sushil Kumar Roongta and Mr. Vivek Mehra possess the requisite expertise, integrity, experience and proficiency for re-appointment as Independent Directors of the Company. Consequent to demerger of the Life Science Ingredients business of the Company into Jubilant Ingrevia Limited, the following changes have taken place in the Board of Directors of the Company:

1. Mr. Pramod Yadav has been appointed as Non-Executive Non-independent Director of the Company effective from February 5, 2021 subject to approval of shareholders at the ensuing AGM.

2. Mr. Rajesh Kumar Srivastava and Mr. Anant Pande have resigned as Directors and Whole-time Directors of the Company effective from the close of working hours of February 5, 2021 pursuant to their appointment in Jubilant Ingrevia Limited.

The Board has appointed Mr. Arvind Chokhany as Group Chief Financial Officer and Whole-time Director of the Company for a period of 3 years in the category of Whole-time Key Managerial Personnel effective from April 1, 2021, subject to approval of the Shareholders at the ensuing AGM.

Mr. Arun Kumar Sharma has been appointed as Head-Group Treasury and Chief Financial Officer of the Company in the category of Whole-time Key Managerial Personnel effective from April 1, 2021.

Mr. Alok Vaish was appointed as the Chief Financial Officer of the Company in the category of Key Managerial Personnel effective from April 1, 2020. He resigned from the services of the Company during the year.

MEETINGS OF THE BOARD

Four meetings of the Board of Directors of the Company were held during the Financial Year 2020-21.

DECLARATION OF INDEPENDENT DIRECTORS

All Independent Directors have given declaration that they meet the criteria of independence as provided under Section 149 of the Act and Regulation 16 of the Listing Regulations.

APPOINTMENT AND REMUNERATION POLICY

The Company has implemented Appointment and Remuneration Policy pursuant to the provisions of Section 178 of the Act and Regulation 19 read with Part D of Schedule II to the Listing Regulations. Salient features of the Policy and other details have been disclosed in the Corporate Governance Report attached to this Report. The Policy is available at the web-link: https:// www.jubilantpharmova.com/investors/corporate-governance/ policies-and-codes/appointment-and-remuneration-policy.

ANNUAL PERFORMANCE EVALUATION OF THE BOARD

A statement on annual evaluation of the performance of the Board, its Committees and of individual Directors forms part of the Corporate Governance Report attached to this Report.

DIRECTORS RESPONSIBILITY STATEMENT

Your Directors, based on the representation received from the management, confirm that:

(i) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; (ii) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2021 and of the profits of the Company for the year ended March 31, 2021; (iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the Directors have prepared the annual accounts on a going concern basis; (v) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively. Based on the framework of internal financial controls including the Controls Manager for financial reporting and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and the reviews performed by the management and the relevant Board committees, including the Audit Committee, the Board is of the opinion that the Companys internal financial controls were adequate and effective during the Financial Year 2020-21; and (vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

COMPOSITION OF AUDIT COMMITTEE

As on date, the Audit Committee comprises Mr. S Sridhar, Chairman, Ms. Sudha Pillai, Dr. Ashok Misra, Mr. Vivek Mehra, Mr. Priyavrat Bhartia and Mr. Arvind Chokhany. The Board has accepted all the recommendations made by the Audit Committee.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo required to be disclosed pursuant to Section 134 of the Act read with the Companies (Accounts) Rules, 2014 is given as Annexure-2 and forms part of this Report.

EMPLOYEES

Particulars of Directors and Employees as required under Section 197(12) of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given as Annexure-3 and form part of this Report.

RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS

Risk-taking is an inherent trait of any enterprise. However, if risks are not properly managed and controlled, they can affect the Companys ability to attain its objectives. Risk management and internal financial control systems play a key role in directing and guiding the Companys activities by continually preventing and managing risks. The Board, Audit Committee and Senior Management team collectively set the overall tone and risk culture of the Company by identifying the risks impacting the Companys business and documenting the process of risk identification, risk minimisation and risk optimisation as a part of the risk management policy through defined and communicated corporate values, clearly assigned risk responsibilities, appropriately delegated authority and a set of processes and guidelines. There exists a critical risk management framework across the Company and the same is reviewed on a periodic basis by the Board. Some of the critical risks identified in various businesses of the Company are:

• Competition, Cost Competitiveness and Pricing
• Dependence on Certain Key Products and Customers
• Foreign Currency and Interest Rate Exposures
• Capacity Planning and Optimisation
• Manufacturing Operations
• Dependence on Single Manufacturing facility
• Research and Development (R&D) Effectiveness
• Risks Related to the Discovery and Development of Our
Product Candidates
• Supply Interruptions due to few Suppliers
• Limited Product Pipeline
• Failure to Supply to Customers
• Human Resources- Acquire and Retain Talent
• Compliance and Regulatory
• Environment, Health and Safety (EHS)
• Protecting Intellectual Property Rights (IPR)
• Information Technology (IT)
• Changes in Tax Legislation
• Mergers and Acquisitions
• Political or Economic Instability or Acts of Terrorism
• Duties by Export Destination Countries
• Acceptance of Our Products in Market
• Policies regarding returns, allowances and charge backs in the United States
• Labour Unions
• Consolidation of Customer Base
• Business Interruption
• Dependence on Third Parties to conduct our Clinical Trials
• Establishing a collaboration
• Impact of Black Swan Events like COVID-19

The Company promotes strong ethical values and high levels of integrity in all its activities, which in itself is a significant risk mitigator. With the growth strategy in place, risk management holds the key to the success of the Companys journey of continued competitive sustainability in attaining the desired business objectives.

Implementation of Internal Financial Controls

To compete globally, world class Corporate Governance and Financial Controls over operations are a must for the Company. The Internal Financial Controls as mandated by the Companies Act not only require a certification from CEO-CFO but also put an obligation on the Board of Directors to ensure that the Internal Financial Controls are adequate and are operating effectively. Besides this, the Statutory Auditors are also required to give an opinion on the adequacy and effectiveness of Internal Controls over Financial Reporting (‘ICFR). To make the Internal Financial Controls framework robust, the Company has worked on three lines of defence strategy which is as under:

- First Line of Defence: Build internal controls into operating processes - To this end, we have ensured that a detailed Delegation of Authority is issued, Standard Operating Procedures (SOPs) for the processes are created, financial decision making is done through Committees, IT controls are built into the processes, Segregation of Duties is done, strong budgetary control framework exists, the Entity level controls including Code of Conduct, Ombudsperson Office, etc. are established.

- Second Line of Defence: Create an efficient review mechanism - We have created a review mechanism under which all the business units and functions are reviewed for performance at least once in a month by the respective CEOs and once in a quarter, by the Corporate team. The formats for these reviews are detailed and finalised with the help of global consulting firms.

- Third Line of Defence: Independent assurance - A Big Four firm has been appointed as our internal auditors to perform systematic independent audit of every aspect of the business to provide independent assurance on the effectiveness of the internal controls and highlight the gaps for continuous improvement. We have implemented a programme under which more than 1,500 internal controls have been established and certified on a quarterly basis by the relevant process owners before the financial results are closed for the quarter. A quarterly certification process is maintained through a work flow based IT tool called ‘Controls Manager and this certification is the basis of the CEO-CFO certification of internal controls as per Regulation 17(8) of the Securities and Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations). We have implemented a web-based automated compliance management and reporting system. The objective of the system is to ensure that the compliances are regularly monitored and controlled with a view to support the Companys business objectives and corporate policy requirements. The system includes a comprehensive check-list for ensuring compliance with the laws and regulations applicable to all plants and offices of the Company. To ensure timely and effective compliances, the compliance status is monitored on a real-time basis by the respective functions. The status is presented by Legal Team and reviewed on a quarterly basis by the Senior Management and the Board of Directors. Pursuant to the Listing Regulations, the Company Secretary and Compliance Officer places a compliance report to the Board of Directors on a quarterly basis.

The Company regularly updates the controls library and Risk and Control Matrix. The updated controls framework was tested for operational effectiveness by the statutory auditors and they have given an affirmative opinion about the adequacy and effectiveness of Internal Controls for Financial Reporting in the Company.

The Company has three business segments namely (a) Pharmaceuticals (b) Contract Research & Development Services and (c) Proprietary Novel Drugs. These Segments have a complete management set up with CEO, CFO, and other functional heads who are responsible for running the operations and report to the Chairman/Co-Chairman and Managing Director (CCMD) and the Corporate Committee. To improve the controls in operations, we have established, for each line of business, the concept of financial decision making through operational committees. The entire purchase, credit control and capital expenditure decisions are taken jointly in committees.

A detailed note on Internal Control Systems and Risk Management is given under ‘Management Discussion and Analysis Report.

HUMAN RESOURCES

In the midst of the crisis presented by COVID-19 pandemic, our attempt has been to let our actions be guided by our core philosophy of Caring, Sharing, and Growing. Uppermost in our agenda is the health and safety of our people while maintaining business continuity. We put all safety and precautionary measures in place at all our workplaces, supported employees and their family with the necessary resources and assistance, established mechanisms for a personal and daily connect with all those effected. To maintain business continuity, we established safe boarding and meals within the workplace which also prevented exposure of the employees to COVID-19. Work from home was encouraged. This demanded a new Mindset, Discipline, Self-governance and Protocols. Training and toolkits to employees and managers were provided to make work from home effective. Sessions on

Mindfulness, Yoga, Meditation, and Resilience were regularly conducted to assist employees in managing their emotional and mental well-being. In the midst of the pandemic, we continued to focus on our talent strategy and our annual exercise of identification of successors for key positions through in-depth, rigorous discussions and application of a uniform potential assessment methodology. A meritocratic, growth oriented culture is key to an organisations sustainable growth. We benchmarked our Performance Management process, critically examined its effectiveness, transparency and simplicity. We launched a renewed, upgraded and contemporary Performance Management Process and backed it up with employee communication and training. Towards the same objective, we revisited our Promotion Policy and introduced role based promotions.

Within the first quarter, we revisited our learning strategy and shifted all our learning programs to a Virtual Instructor led training (VILT) or to eLearning. Our annual learning calendar was replaced by a Quarterly program calendar. The monthly "Leader Speak" series continued to provide our employees opportunities to learn from the best internal and external leaders and subject matter experts. Besides the internal speakers, we had T.N. Hari from Big Basket, R Gopalakrishnan, Patti Sanchez, Dr. Pavan Soni who spoke on topics ranging from managing a crisis, communication, self-leadership and design thinking. We upgraded our eLearning from 100 courses to 3000 courses across topics of business, functional management and leadership skills to hone and foster a culture of continuous learning in the organisation. The Learning Management System has about 80% employee usage. Additionally, we have mandatory programs for employees on the Code of Conduct, Whistle Blower Policy and Policy on Prevention of Sexual Harassment at workplace to reinforce our commitment to governance and adherence to the code of conduct and fair business practices. The Company has constituted Internal Complaints Committee in compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Chairmen Annual Awards, the highest and most prestigious awards at Jubilant were conducted over a digital platform this year. The ceremony telecasted at the same time across India and North America brought all of us to a common platform to applaud our achievers.

Using digital to simply do what you already do, but just better, falls into four categories i.e. cost reduction, improved customer service, new revenue sources, and better decision making. After digitizing the key processes of Talent Acquisition (‘TA) in FY 2020, Global TA analytics with more than 35 data reports were put in place. On a click of a button, one can see the TA process health across the globe and can take faster and better decisions. Further, our global analytics help in maintaining data integrity, ensuring better process governance and control, enhancing processes and delivering higher productivity. In addition to the above, we launched gamified social "Refer a Friend" tool in North America for deeper reach in the talent market. Further, to strengthen our Employer Brand, we launched two digital programs globally to enhance candidate experience and new hire experience.

In the area of compensation and benefits, global job grading exercise was concluded to bring uniformity across geographies and businesses to deliver a well-defined career path framework by enabling smooth cross business movements for employees. From organisation perspective, a clear sizing and scoping of a job to determine grade helps organisation to stay right sized and agile.

In our continuous effort to move into a fully digital environment, we launched workforce budgeting tool globally. The system is well integrated with our core HRMS and has made the entire process very simple, easy and fast that leads to reduced man days and increase productivity. We reviewed and revamped our performance management process to further strengthen the culture of performance. A detailed note on Human Resource Management is given in the ‘Management Discussion and Analysis Report.

INVESTOR SERVICES

With a view to keep the investors well informed of its activities, the Company has taken the following initiatives:

• E-mailing quarterly results and press releases to the Shareholders soon after they are sent to the stock exchanges and e-mailing Annual Reports. Maintaining user friendly Investor Section on the website of the Company www.jubilantpharmova.com;

• A dedicated e-mail address viz. investors@jubl.com for interacting on various matters with respect to share transfer, transmission, dividends and other related issues with the Company Secretary and Compliance Officer;

• The Company has placed an Investor Feedback form on its website www.jubilantpharmova.com under the head ‘Investor Feedback Form to obtain valuable feedback and suggestions of the investors;

• Earnings Presentation and Release detailing the quarterly results are uploaded on the website of the Company www. jubilantpharmova.com. Earnings call is typically conducted post announcement of the results to the stock exchanges as per the schedule mentioned in the Concall Invite which is also uploaded on the website of the Company. Earnings call playback is made available on the Dial-in numbers shared in the Concall Invite and transcripts are uploaded on the website of the Company;

• The presentation and meeting schedule of the Road Shows attended by the Company are uploaded on its website after intimating the same to the Stock Exchanges; and

• Disclosures made to the Stock Exchanges are promptly uploaded on the website of the Company for information of the Investors.

VIGIL MECHANISM

The details of Vigil Mechanism adopted by the Company have been disclosed in the Corporate Governance Report, which is attached to and forms an integral part of this Report.

CORPORATE SOCIAL RESPONSIBILITY

Jubilants sustainability framework reflects the strong focus on Corporate Social Responsibility (‘CSR). The organisation approach towards sustainability is to work continuously on triple bottom line of Economic, Environmental and Social performance. CSR activities at Jubilant are in line with the provisions of Section 135 read with Schedule VII to the Act. The CSR initiatives of the Company are implemented through Jubilant Bhartia Foundation (‘JBF), established in the year 2007, social wing of Jubilant Bhartia Group. CSR Policy of the Company is available on the web-link: https://www.jubilantpharmova.com/ investors/corporate-governance/policies-and-codes/corporate-social-responsibility-policy.

The CSR interventions of the Company are also in accordance with the United Nations Sustainable Development Goals (SDGs), also known as Global Goals. The CSR projects focus on working towards empowering the communities around the area of operations of the Company. The projects work on 4P model (Public-Private-People-Partnership). Jubilant facilitates implementation of the projects and participation of community to bring out the optimal outcomes.

Jubilant has been publishing its Corporate Sustainability Report every year from 2003. The report is externally verified and is in accordance with the Global Reporting Initiative (‘GRI) guidelines.

From 2007, the Company was receiving application level A+ by GRI for our Corporate Sustainability Report. From FY 2017-18, our Sustainability Report is aligned with the Global Reporting Initiatives GRI Standards in accordance with the ‘Comprehensive option. All our reports are available on the Companys website at the weblink: https://www. jubilantpharmova.com/sustainability/sustainability-report. JBFs detailed activities are available on its website www. jubilantbhartiafoundation.com. The Company has a vision to bring progressive social change through strategic multi-stakeholders and bring about a ‘social change involving "knowledge generation & sharing, experiential learning and entrepreneurial ecosystem" through JBF. JBF interventions cover population of more than 3,00,000 in and around the manufacturing locations of the Company. During the Financial Year 2020-21, Jubilant geared up to be with the people and community around its manufacturing locations amidst COVID-19 pandemic. JBF strategized and re-structured its development initiatives for the people in marginalized and remote areas, supporting them to continue their life during the pandemic. The projects were designed keeping in view the safety and vulnerability of the community around the manufacturing locations. To reach out as a support during the trying times, the Company allocated its CSR funds towards health project for the community around and PM CARES Fund as a contribution towards COVID-19 pandemic. The Company transformed its approach towards reaching out the community amidst pandemic by working on 3 essential parameters of Safety, Support and Sustainability:

Saving Lives and Ensuring Safety by

• Creating a safe workplace

• Facilitated sanitization of the workplace as well as surrounding community and government institutions like hospitals

• Launching Remdesivir under ‘JUBI-R and making it available to over 1,000 hospitals providing COVID 19 treatment in India through its distribution network. In order to increase accessibility of ‘JUBI-R to patients below the poverty line and to front line paramedical staff, JBF has launched unique programs aimed at distribution of the drug.

Supporting Community and other stakeholders

• Making a contribution towards PMCARES Fund

• Communication outreach with the community, schools and society through awareness camps at each manufacturing location and distribution of essential items like groceries, medicines, masks and sanitizers, etc. in the community.

Sustaining Lives

• An effort was made to sustain the lives of people in the community realm of education, health and livelihood. JBF strategized and restructured its development initiatives so that people in the marginalized and remote areas can continue their life during the pandemic.

• The projects were designed keeping in view the safety and vulnerability of the community around the manufacturing locations. The 3 key projects are given below: i. JubiCare Tele-clinic- a telemedicine application, conceptualized and developed by JBF. This telemedicine interface provides a real-time Patient

- Doctor consultation through text/audio/video. JubiCare app uses ICT for exchange of information for the diagnosis and treatment of diseases by a certified medical professional. The application aims at addressing the health issues of patients by health workers without unnecessary exposure to infections. The application provides immediate support and delivery of healthcare services to the underserved communities in rural and urban areas without travel. ii. E- Muskaan, Supporting Education through Digital Literacy- ensuring the continuity in learning of students in rural areas by promoting the digital education inclusion of the last mile learners thereby facilitating cognitive growth of a child. Jubilant has partnered with iDream Social Edtech Foundation engaged in facilitating digital education in local languages to provide e-content absolutely for no cost to the students. This facility is being provided to Project ‘Muskaan schools across the locations through iDream Learning App to help in continuity of academic learning. iii. JubiFarm, strengthening livelihood by facilitating access of farmers to modern and sustainable farming methods-JubiFarm is a sustainable and multi-stakeholder initiative that is conceived to enhance the profitability and generate income opportunities in farming for the migrants returning back to their natives. The initiative is recognising both the male and female as equal stakeholders of the farmland. It shall empower farmers by facilitating access to modern and sustainable farming methods. Annual Report on CSR activities for the Financial Year 2020-21 including contents of the CSR Policy is attached as Annexure-4. In compliance with the Listing Regulations, Business Responsibility Report forms part of the Annual Report.

OTHER DISCLOSURES i. Extracts of Annual Return: Pursuant to the provisions of Section 134(3)(a) of the Act, the Annual Return for FY 2020-21 has been uploaded on the Companys website and can be accessed at https://www.jubilantpharmova. com/investors/financials/annual-reports. ii. Public Deposits: The Company has not accepted any deposits from the public during the year. The Company had no outstanding, overdue, unpaid or unclaimed deposits at the beginning and end of the Financial Year 2020-21. iii. Loans, Guarantees and Investments: Details of loans, guarantees/ securities and investments along with the purpose for which the loan, guarantee or security is proposed to be utilised by the recipient have been disclosed in Note nos. 5, 6 and 42 to the Standalone Financial Statements, as applicable. iv. Particulars of Contracts or Arrangements with the Related Parties: The Company has formulated a policy on Related Party Transactions (‘RPTs), dealing with the review and approval of RPTs. Prior omnibus approval is obtained for RPTs which are of repetitive nature. All RPTs are placed before the Audit Committee for review and approval. All RPTs entered into during the Financial Year 2020-21 were in the ordinary course of business and on arms length basis. No material RPTs were entered into during the Financial Year 2020-21 by the Company as defined in the Policy on Materiality of Related Party Transactions and Dealing with Related Party Transactions. Accordingly, the disclosure of RPTs as required under Section 134(3) (h) of the Act in Form AOC-2 is not applicable. Your Directors draw attention of the members to Note no. 38 to the Standalone Financial Statements which sets out the Related Party disclosures. v. Material Changes in Financial Position: No material change or commitment has occurred after the close of the Financial Year 2020-21 till the date of this Report, which affects the financial position of the Company. vi. Orders passed by Courts/ Regulators: No significant or material order has been passed by the regulators or courts or tribunals impacting the going concern status of the Company or its future operations. vii. Secretarial Standards: The Company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.

CORPORATE GOVERNANCE

As a responsible corporate citizen, the Company is committed to maintain the highest standards of Corporate Governance and believes in adhering the best corporate practices prevalent globally. A detailed Report on Corporate Governance is attached as Annexure-5 and forms part of this Report. A certificate from a Practising Company Secretary confirming compliance with the conditions of Corporate Governance, as stipulated in Clause E of Schedule V to the Listing Regulations is attached to the Corporate Governance Report.

The Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for Directors and Senior Management for the year ended March 31, 2021. A certificate from the Co-Chairman & Managing Director confirming the same is attached to the Corporate Governance Report.

A certificate from the CEO and CFO confirming correctness of the financial statements, adequacy of internal control measures, etc. is also attached to the Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report on the operations of the Company as provided under the Listing Regulations has been given separately and forms part of this Report.

ACKNOWLEDGMENTS

Your Directors acknowledge with gratitude the co-operation and assistance received from the Central and State Government authorities. Your Directors thank the shareholders, debentureholders, financial institutions, banks/ other lenders, debenture trustees, customers, vendors and other business associates for their confidence in the Company and its management and look forward to their continued support. The Board wishes to place on record its appreciation for the dedication and commitment of the Companys employees at all levels, which has continued to be our major strength. We look forward to their continued support in the future.

For and on behalf of the Board
Shyam S. Bhartia Hari S. Bhartia
Chairman Co-Chairman & Managing Director
(DIN: 00010484) (DIN: 00010499)
Place: Noida
Date: June 4, 2021