Your Directors have pleasure in presenting the 20^th Annual Report of the Company together with the Audited Financial Statements for
the Financial Year ended 31^st March 2025.

Standalone and Consolidated Financial Highlights:

Company’s Affairs:

(i) Operations:

During the year under review, your Company has achieved a
turnover of H5,554 crores and registered growth of 10% and
achieved a net profit of H358 crores with a growth of over
122%.

During the year under review -

• Your Company was able to strengthen technology
platforms and process development efforts with focus
on delivering high quality CDMO/CMO development and
manufacturing services to Global customers

- Solidifying position on Flow/Bio-catalysis platform.
Executed top-level projects utilising proprietary
designed flow reactors at high temperature/pressure.

- Commercial scale Peptide Synthesisers of various
scales installed and qualified

- Installed commercial scale continuous Hydrogenation
facility

• New R & D facility operational leveraging advances PD
capabilities for Peptides/ADCs/Oligonucleotides.

• Your Company has invested H659 crores during the year
on ongoing expansion program so that the Company will
be able to achieve its future goals;

• More than 160 quality audits have been completed by
various customers and regulatory agencies;

• Your Company is advancing ESG agenda and enhacing
competitive advantage

- ISO 50001 completed for multiple facilities

- S & P Global Sustainability Year book 2025 featured
Laurus Labs

- Improved S&P ESG scores from 59 to 73

- Consecutive “BBB” ratings in FY22-25 from MSCI
ESG ratings.

- Acquired 26% equity in Kurnool Renewables to access
26 MW of renewable energy (Solar wind) on captive
mode in April, 2025 and is expected to begin by
Dec 2026. This will enable to source around 50% of
energy through renewable energy.

• Your Company was certified as Great Place to Work in
fourth consecutive year.

• Your Company's associate company ImmunoACT,
Mumbai treated around 300 patients suffering with
Lymphoma and Lukemia with NexCAR-19. ImmunoACT
is first company to launch commercial CAR_T therapy
and expanding its facilities to create capacity for over
2000 treatments annually. ImmunoACT also got
approval to carry phase 1 clinical trial for pediatric usage
of NexCAR-19 and also carry phase 1 clinical trial for an
additional program multiple myeloma (BCMA).

(ii) Outlook:

Business prospects may remain positive based on increased
contract development and manufacturing (CDMO)
opportunities for Global customers, CMO opportunities
generic companies, expanded business opportunities for
Generics. Your Company also expects to sustain overall ARV
business despite few challenges.

Management Discussion & Analysis:

Various business aspects including market conditions,
business opportunities, challenges etc. have been discussed
at length in the Management's Discussion and Analysis
(MD&A), which forms part of this Annual Report.

Dividend:

Your directors are pleased to inform you that the Board had
declared the interim dividend @ 20% (i.e., H0.40/- per share
of the face value of H2/- each) and paid to the Shareholders
in November, 2024 and the 2^nd Interim dividend @ 40%
(i.e. H0.80 per share of the face value of H2/- each) and
being paid to the shareholders in May, 2025 aggregating
to 60% dividend i.e. H1.20/- per share of the face value of
H2/- each relating to the FY24-25. The dividend payout ratio
is 17% for the year which is within the stipulated maximum
of 20% under dividend policy.

Transfer to Reserves:

Your Company did not transfer any portion of profits
to Reserves.

Share Capital:

During the year under review -

• Company has allotted 2,86,633 (Two lakh eighty-six
thousand six hundred and thirty-three only) equity shares
of H2/- to various eligible employees of the Company

under ESOP Scheme 2018 and under ESOP Scheme 2016
upon exercise of their vesting rights in May, 2024 and
December, 2024.

• As a result, the paid up share capital as on March 31,2025
stood at H107,85,04,982/- divided into 53,92,52,491
equity shares of H2/- each.

Change in the nature of the business, if any:

There is no change in the nature of the business of the
Company or any of its subsidiaries or associates, during the
year under review.

Material Changes and commitments, affecting the
financial position of the Company:

There are no material changes and commitments affecting
the financial position of the Company that have occurred
between the end of the financial year of the Company to
which the financial statements relate and the date of the
Report i.e. between March 31,2025 to May 15, 2025.

Fixed deposits:

The Company did not accept any fixed deposits.

Subsidiaries, Associates and Joint Ventures:

At the end of the year, the status of the subsidiaries/associates is as follows:

* WOS means Wholly Owned Subsidiary

@ Laurus Generics GmbH, Germany and Laurus Generics Inc., USA are step-down subsidiaries of Laurus Labs Limited

# Balance 49.24% is held by your Company.

During the year under review, KRKA Pharma Pvt Ltd.
became a joint venture company of your Company. There
are no companies which became subsidiaries or associate
companies of the Company during the year nor ceased to
be subsidiaries or associate companies of the Company.

Consolidated financial Statements:

As per Section 129(3) of the Companies Act, 2013, the
consolidated financial statement of the Company and all its
Subsidiaries and Associates prepared in accordance with the
applicable accounting standards forms part of this Annual

Report. Further, a statement containing salient features of
the financial statements of our subsidiaries and associates
in the prescribed form in AOC-1 is attached as Annexure-1
to the Directors' Report.

As per the provisions of Section 136 of the Companies Act,
2013, the Company has placed separately the audited
financial statements of its subsidiaries on its website
www.lauruslabs.com and copies of audited financial
statements of the subsidiaries will be provided to the
Members at their request.

Particulars of Loans, Guarantees and Investments:

The Company has also issued a Corporate Guarantee to the
Bankers for the loans sanctioned to Laurus Generics Inc.,
Laurus Synthesis Private Limited and for Laurus Bio Private
Limited and the guarantees provided are well within the
limits prescribed under Sec.186 of the Companies Act, 2013.

Board of Directors and Key Management Personnel:

During the year, the term of Dr. MVG Rao, Non-Executive
and Independent Director and Chairman of the Company
had been completed. Dr. K. Ravindranath, another senior
independent director was appointed as a Non-Executive
Chairman with effect from May 18, 2024. Further, the
Company has appointed Mr. Krishna Chaitanya Chava and
Mrs. Soumya Chava as Executive Directors of the Company
and Mr. Sekar Karnam and Mr. Ramesh Subrahmanian as
non-executive and Independent Directors on the Board of
the Company.

The five year term of Dr. Satyanarayana Chava as Executive
Director & CEO and Mr. V.V. Ravi Kumar as Executive
Director and CFO had been completed on 31^st March 2025.
The Board of Directors have, subject to approval of the
Shareholders, re-appointed Dr. Satyanarayana Chava for a
further period of five years w.e.f. 01^st April 2025 and Mr. V.V.
Ravi Kumar for a period of two years w.e.f. 01^st April, 2025 in
their respective positions.

As per the provisions of the Companies Act, 2013,
Dr. Satyanarayana Chava and Dr. C.V. Lakshmana Rao will
retire at the ensuing annual general meeting and, being
eligible, seek re-appointment. The Board of Directors
recommends their re-appointment.

Board Meetings:

The Board and Committee meetings are pre-scheduled
and a tentative calendar of the meetings shall be finalised
in consultation with the Directors to facilitate them to plan
their schedule. However, in case of urgent business needs,
approval is taken by passing resolutions through circulation.
During the year under review, 9 (nine) board meetings were
held. The details of the meetings including the composition
of various committees are provided in the Corporate
Governance Report.

Performance Evaluation:

The formal annual evaluation of the performance of
the Board as well as Non-independent directors was
undertaken by the Nomination and Remuneration
Committee. The performance of Board Committees and
of individual independent directors was undertaken by the
Board members.

The manner of the evaluation of the Board and other
Committees has been determined by the Nomination
and Remuneration Committee as per SEBI circular dated
January 05, 2017.

Declaration from Independent Directors:

The independent directors have submitted the declaration
of independence stating that they meet the criteria of
independence as prescribed in sub-section (6) of Section
149 of the Companies Act, 2013 as well as under Regulation
16(1 )(b) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Opinion of the Board:

The Board is of the opinion that all the independent
directors appointed during the year meet the criteria
of independence and the Board is satisfied about their
integrity, expertise and experience (including proficiency).

Policy on Directors’ Appointment and Remuneration:

The policy of the Company on directors' appointment
and remuneration, including criteria for determining
qualifications, positive attributes, independence of a
director and other matters are adopted as per the provisions
of the Companies Act, 2013. The remuneration paid to the
Directors is as per the terms laid out in the nomination and
remuneration policy of the Company.

The nomination and remuneration policy is adopted by the
Board and the salient features of the policy are as follows:

• Non-Executive and Independent Directors (“NEDs”)
will be paid remuneration by way of sitting fees
and commission. The remuneration/ commission/
compensation to the NEDs will be determined by
the Nomination and Remuneration Committee
(“Compensation Committee”) and recommended to
the Board for its approval.

• As approved by the shareholders at the shareholders
meeting held on July 20, 2016, remuneration in the
form of commission will be paid to Non-Executive
Independent Directors not exceeding 1% per annum
of the profits of the Company computed in accordance
with Section 198 of the Act.

• The payment of the Commission to the NEDs will be
placed before the Board every year for its consideration
and approval. The sitting fee payable to the NEDs for
attending the Board and Compensation Committee
meetings will be fixed, subject to the statutory ceiling.
The fee will be reviewed periodically and aligned to
comparable best in class companies.

• NEDs will not be eligible to receive stock options under
the existing employee stock option scheme(s) (“ESOP”)
of the Company.

• The compensation paid to the executive directors
(including the Managing Director) will be within the
scale approved by the shareholders. The elements of
the total compensation, approved by the Compensation
Committee will be within the overall limits specified
under the Act.

• The Company's total compensation for Directors and
Key Managerial Personnel as defined under the Act /
other employees will consist of:

- fixed compensation

- variable compensation in the form of annual incentive

- benefits

- work related facilities and perquisites
Changes made to the policy: Nil

The Nomination and Remuneration Policy is placed on the
Company's website and the following is web address of the
said policy.

https://www.lauruslabs.com/Investors/PDF/Policies/
Remuneration Policy.pdf

Dividend Distribution Policy:

The web link of the Dividend Distribution Policy has been
provided below for the perusal of the shareholders.

https://www.lauruslabs.com/Investors/PDF/Policies/
Dividend Policy.pdf

Risk Management:

Your Company had formulated a risk management policy
for dealing with different kinds of risks that it faces in the
day-to-day operations of the Company. Risk Management
Policy of the company outlines different kinds of risks and
risk mitigating measures to be adopted by the Board. The
Company has adequate internal financial control systems
and procedures to mitigate the risk. The risk management
procedure is reviewed by the Risk Management Committee
and Board of Directors on a regular basis. Further, your
Company had constituted a Risk Management Committee
which lays down various risk mitigating practices that your
Company is required to implement.

Adequacy of Internal Financial Controls:

The internal financial controls with reference to the
Financial Statements, apart from statutory audit, internal
audit and cost audit compliance, are adequate to the size
and operations of the Company.

Directors’ Responsibility Statement:

In terms of Section 134(3)(c) of the Companies Act, 2013,
the Board of Directors of the Company states that:

(a) in the preparation of the annual accounts, the
applicable accounting standards had been
followed along with proper explanation relating to
material departures;

(b) the directors had 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 at the end of the financial year and of the
profit and loss of the Company for that period;

(c) the directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of Companies Act
for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a
going concern basis;

(e) the directors had laid down internal financial controls
to be followed by the company and that such internal
financial controls are adequate and were operative
effectively; and

(f) the directors had devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems were adequate and
operative effectively.

Related Party Transactions:

In accordance with Section 134(h) of the Companies Act,
2013 and Rule 8(2) of Companies (Accounts) Rules, 2014,
the particulars of contracts or arrangements entered into
by the Company with the Related Parties referred to in
Sec.188(1) of the Act, have been provided in Form AOC-2
and attached the same as Annexure-2.

The details of related party disclosures as stated in the notes
to the financial statements forms part of this annual report.

Vigil Mechanism:

The Company established a whistleblower policy in order to
assure that the business is conducted with integrity and that
the Company's financial information is accurate.

Auditors:

(i) Statutory Auditors:

M/s. Deloitte, Haskins & Sells LLP, Firm Registration
No.117366W/W-100018 have been appointed as
Statutory Auditors of the Company for the second
term of five years from the conclusion of 17^th AGM
till the conclusion of 22^nd AGM of the Company at a
remuneration to be decided by the Board.

(ii) Cost records and Auditors:

The Company is required under Section 148(1) of the
Companies Act, 2013 read with Companies (Audit
& Auditors') Rules, 2014 and the Companies (Cost
Records and Audit) Amendments Rules, 2014, the
Company is required to maintain the cost records in
respect of its business and accordingly such accounts
and records are made and maintained.

Your Board has re-appointed M/s. Sagar & Associates,
Cost Accountants, as the Cost Auditors of the
Company for the Financial Year 2025-26. As required
by the Act, the remuneration of the Cost Auditors
has to be ratified by the Members and accordingly
the resolution relating to remuneration of the Cost
Auditors is being placed before the Members for
their ratification.

(iii) Secretarial Auditors & Secretarial Audit Report:

Pursuant to the provisions of Section 204 of the
Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014 read with Regulation
24A of SEBI LODR Regulations, as amended, the
Board, subject to the approval of the shareholders,
has appointed Y. Ravi Prasada Reddy, Practising
Company Secretary (CP No. 5360) proprietor of RPR
& Associates, to undertake the Secretarial Audit of the
Company for a period of five years i.e. from FY 2025¬
26 to FY 2029-30. The Secretarial Audit Report issued
by RPR & Associates for the period under review in
Form MR-3 is in Annexure-3 to this Report. There are
no qualifications, reservations or adverse remarks in
the Secretarial Audit Report.

Auditors’ Qualifications/reservations/adverse remarks/
Frauds reported:

There are no Auditors' Qualifications or reservations
or adverse remarks on the financial statements of the
Company. The Auditors have not reported any frauds to the
Audit Committee as prescribed under Section 143(12) of
the Companies Act, 2013.

Significant and material orders passed by the Courts/
Regulators:

There are no significant and material orders passed by the
Courts or Regulators against the Company.

Rating:

CARE has reaffirmed/revised with its rating of "AA Stable"
to "AA Negative" on the long term bank facilities of the
Company and Reaffirmed A1 on the short term bank
facilities of the Company.

Insurance:

All properties and insurable interests of the Company
including buildings, plant and machinery and stocks have
been fully insured.

Corporate Social Responsibility initiatives:

Pursuant to the provisions of Section 135 and Schedule VII
of the Companies Act, 2013, CSR Committee of the Board
of Directors had framed the policy on Corporate Social
Responsibility and the relevant details have been provided
in Annexure-4 and forms part of this Report.

Annual Return:

As required pursuant to section 92(3) of the Companies
Act, 2013 and rule 12(1) of the Companies (Management
and Administration) Rules, 2014 (as amended), a copy of
the Annual Return of the Company shall be placed on the
Website of the Company at www.lauruslabs.com.

Statement of Particulars of Appointment and
Remuneration of Managerial Personnel/ employees:

In accordance with the provisions of Section 134 and Rule 5 of
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the statement of particulars of
appointment and remuneration of managerial personnel
and employees is attached in Annexure-5 to this Report.

Human resources:

The management believes that competent and committed
human resources are vitally important to attain success
in the organisation. In line with this philosophy, utmost
care is being exercised to attract quality resources and
suitable training is imparted on various skill-sets and
behavior. Various initiatives were undertaken to enhance
the competitive spirit and encourage bonding teamwork
among the employees and could achieve the targeted
growth in the performance of the Company.

Employee Stock Options:

During the year, the Company has allotted 2,86,633 (Two
lakh eighty six thousand six hundred and thirty-three
only) equity shares of H2/- to various eligible employees of
the Company under ESOP Schemes 2016 and 2018 upon
exercise of their vesting rights in May and December, 2024.

The details of stock options are as mentioned in Annexure-6
and forms part of this Report. Further, the details of the
stock options stated in the notes to accounts of the financial
statements also forms part of this Annual Report.

Conservation of energy, technology absorption and
foreign exchange earnings/outgo:

The information required under Section 134(3)(m) of the
Companies Act, 2013, read with Rule 8(3) of Companies
(Accounts) Rules, 2014, is appended hereto as Annexure-7
and forms part of this Report.

Policy on Prevention of Sexual Harassment:

The Company has formulated and implemented a policy for
Prevention of Sexual Harassment of Women at workplace.
During the year under review, the Company has not received
any complaints under the policy.

The Company has many systems, processes and policies
to ensure professional ethics and harmonious working
environment. We follow Zero Tolerance towards Corruption
and unethical conduct. These are ensured through Whistle
Blower Policy, Anti-Corruption Policy, Gift Policy, Sexual
Harassment Policy and Redressal Guidelines.

The Company has complied with provisions relating to the
constitution of Internal Complaints Committee under the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.

Details of application made or any proceeding pending
under Insolvency and Bankruptcy Code - 2016 - Nil

Details of difference between amount of the valuation done
at the time of one time settlement and the valuation done
while taking load from the Banks and Financial Institutions
with reasons thereof - Not Applicable

Statement of deviation(s) or variation(s) in the use of
proceeds:

Pursuant to Regulation 32(1)(b) of SEBI (LODR) Regulations,
this is to state that this Regulation is not applicable to the
Company since the Company has not made public issue,
rights issue or preferential issue during the year under
review and accordingly there are no deviations or variations
in the use of proceeds from the objects stated in the offer
document or explanatory statement to the notice for the
general meeting, as applicable.

Corporate Governance:

A separate section on Corporate Governance practices
followed by your Company, as stipulated under Schedule
V(C) of the SEBI (LODR) Regulations, 2015 is enclosed and
forming part of this report.

The certificate of the Practising Company Secretary
Mr.Y.Ravi Prasada Reddy with regard to compliance of
conditions of corporate governance as stipulated under
Schedule V(E) of the SEBI (LODR) Regulations, 2015 is
annexed to the Report on Corporate Governance.

Business Responsibility and Sustainability Report (BRSR)

The Listing Regulations mandate the inclusion of the BRSR
as part of the Annual Report for top 1,000 listed entities
based on market capitalisation. In accordance with the
Listing Regulations, we have integrated BRSR disclosures
into our Annual Report.

Awards:

• The Company has been honoured with the 2024 DET
Hurun Award for outstanding contribution to India's
manufacturing economy at the prestigious India
Manufacturing Excellence Awards;

• The Company has been recognised as one of the top
75 innovative companies in India for 2024 by the
Confederation of Indian Industry (CII);

• The Company has been awarded with the prestigious
Export Performance Award at the IPHEX Event;

• The following Laurus Labs Units won the Confederation
of Indian Industry (CII), Andhra Pradesh - Industrial
Safety Excellence Awards for the Performance Year
2024: -

- Laurus Labs Limited, Unit-1: Outstanding Safety
Performer Award

- Laurus Labs Limited, Unit-3: Best Safety
performer Award

• Unit-1 has been awarded with the Winner of the Safe
Manufacturing Excellence Award at the GMEA 2024;

• Unit-2 received a Silver Award in the National Awards for
Manufacturing Excellence 2024

Acknowledgements:

Your Directors would like to place on record their sincere
appreciation to customers, business associates, bankers,
vendors, government agencies and shareholders for their
continued support.

Your Directors are also happy to place on record their
sincere appreciation to the co-operation, commitment and
contribution extended by all the employees of the Laurus
family and look forward to enjoying their continued support
and cooperation.

For and on behalf of the Board

Dr. Satyanarayana Chava V.V. Ravi Kumar

Executive Director & Executive Director &

Chief Executive Officer Chief Financial Officer

DIN: 00211921 DIN: 01424180

Hyderabad
May 15, 2025