NOTES TO THE CONSOLIDATED FINANCIAL …

1 275 ANNUAL REPORT 2016-17 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017 CORPORATE OVERVIEWSTATUTORY REPORTS FINANCIAL STATEMENTS01-0708-7980-278 FORM AOC - 1 PURSUANT TO FIRST PROVISO TO SUB-SECTION (3) OF SECTION 129 OF COMPANIES ACT, 2013 WITH THE RULE 5 OF COMPANIES (ACCOUNTS) RULES, 2014 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES` In MillionPart A : SubsidiariesSr NoName of the Subsidiary CompanyDate since when subsidiary was acquiredReporting Currency Rate Capital Reserve Total Assets Total Liabilities Investment Other than Investment in Subsidiary Turnover Profit / (Loss) before Taxation Provision for Taxation Profit / (Loss) after Taxation Proposed Dividend % of Shareholding1 Green Eco Development Centre ( ) ( )- ( )- Pharmaceutical (Bangladesh) , 1, Pharmaceutical Industries, , (16, )53, , , , (9, )(3, )(5, )- Farmaceutica do Brasil (2, ) , 1, Pharma De Mexico DE 1, SPIL De Mexico DE Pharmaceutical Peru ( ) ( )- ( ) "Sun Pharmaceutical Industries" ( ) ( ) ( )- Pharma De Venezuela, (1, ) , ( )- ( )

2 - Chemicals , , , 1, ( )( )( )- Taro Development ( )1, , ( )- ( )- Chemical Company , , , , 1, (1, )- (1, ) Pharmaceuticals UK ( ) ( )- ( )- Pharmaceutical Industries (Australia) Pty , ( )8, , 5, ( )- ( )- Acquisition Company Pharmaceutical Industries (Europe) ( ) Pharmaceuticals Italia ( )- ( )- Pharmaceuticals Spain, ( ) ( )- ( )- Pharmaceuticals Germany ( ) Sun Pharmaceuticals ( ) ( )- ( )- Sun Pharma Global , , , , 35, , 10, Pharmaceuticals (SA) (Pty) ( ) ( )- ( )- Sun Global Canada Pty. ( ) ( )- ( )- Sun Laboratories (1, ) ( )- ( )- Sun Global Development ( ) ( )- ( )- Sun Pharma Japan ( )3, , ( ) ( )- Sun Pharma Philippines, ( ) ( )( )( )- Sun Pharma Healthcare ( ) Pharmaceuticals Korea ( ) ( )- ( )- Pharmaceuticals Private ( ) Sun Pharma Laboratories , , , , , , , , Morley & Company, ( ) Pharmaceutical Industries Ltd.

3 (TARO) , , , , 14, , , , Taro Pharmaceuticals , , , 23, , , , Pharmaceuticals , ( )45, , , Pharmaceuticals North America, , , 5, , 2, Pharmaceuticals Europe ( ) ( )- ( ) Pharmaceuticals Ireland ( ) - - ( ) - ( ) - Taro International - - - Pharmaceuticals (UK) ( ) - ( ) - ( ) - PHARMACEUTICAL INDUSTRIES LIMITED276 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017` In MillionPart A : SubsidiariesSr NoName of the Subsidiary CompanyDate since when subsidiary was acquiredReporting Currency Rate Capital Reserve Total Assets Total Liabilities Investment Other than Investment in Subsidiary Turnover Profit / (Loss) before Taxation Provision for Taxation Profit / (Loss) after Taxation Proposed Dividend % of Shareholding41 Taro Hungary Intellectual Property Licensing Limited Liability - - - - - ( ) - ( ) - Pharmaceuticals Canada, ( ) - - ( ) - ( ) - Alkaloida Sweden ( )

4 - - - Dusa Pharmaceuticals, 5, 11, 6, - 8, 4, 1, 2, - Pharmaceutical Company 4, 4, 9, - 3, ( ) ( ) ( ) - Mercantile Company Private - - Real Estate Private 2, 3, - Multitrade Private - - Skisen Labs Private ( ) - ( ) ( ) - Trading Company Private - - Enterprises Private - - - Pharma Switzerland ( ) 2, 2, - - ( ) ( ) - Sun Pharma 221, (17, ) 204, - - ( ) - ( ) - Pharmalucence, 5, ( ) 6, 1, - 1, ( ) ( ) ( ) - PI Real Estate Ventures 1, 1, - - Pharma East Africa ( ) - ( ) ( ) ( ) - Ranbaxy Drugs 1, 1, - - - Vidyut Investments ( )

5 - - - Gufic Pharma - - Basics 4, 3, - 2, - Ranbaxy - - - - - - "Ranbaxy Pharmaceuticals Ukraine" LLC - - Pharmaceuticals Morocco LLC (Formerly known as Ranbaxy Morocco LLC) ( ) - - Pharmaceutical Industries (Formerly known as Ranbaxy - PRP (Peru) ) ( ) - ( ) - ( ) - Holdings ( ) , , - - ( ) - ( ) - Pharmacie 1, (3, ) 2, - 1, - - Pharmaceutique Industriel Et ( ) - - - Ranbaxy Italia 1, 1, - 1, ( ) ( ) - Pharmaceutical Proprietary (2, ) 6, 7, - 5, - - Pharmaceuticals Proprietary 2, 2, - 6, - - South Africa Proprietary 1, 1, - 1, - Ranbaxy Egypt ( ) - ( ) ( ) - Rexcel Egypt ( ) - ( )- ( ) - Ranbaxy ( ) Limited 1, ( ) 2, - 1, - Ranbaxy (Poland) Sp.

6 Z - - Ranbaxy Nigeria , , ( )( )( ) (Thailand) Company ( ) ( )- ( )- Ohm Laboratories, (2, )5, , , 25, (1, )( )(1, )- Ranbaxy Laboratories, , , , , 14, , , , Ranbaxy Signature ( ) - - Ranbaxy Pharmaceuticals, (4, ) 13, 181, 173, - 29, 2, 1, 1, - Ranbaxy Inc. 3, 11, 57, 42, - - ( ) - Ranbaxy Ireland - 1, - - Ranbaxy (Formerly Known ZAO Ranbaxy) 4, 3, - 5, - Laboratorios Ranbaxy, 1, - 1, - - REPORT 2016-17 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017 CORPORATE OVERVIEWSTATUTORY REPORTS FINANCIAL STATEMENTS01-0708-7980-278` In MillionPart A.

7 SubsidiariesSr NoName of the Subsidiary CompanyDate since when subsidiary was acquiredReporting Currency Rate Capital Reserve Total Assets Total Liabilities Investment Other than Investment in Subsidiary Turnover Profit / (Loss) before Taxation Provision for Taxation Profit / (Loss) after Taxation Proposed Dividend % of Shareholding86 Ranbaxy (Malaysia) Sdn. Bhd. 1, - 1, - Ranbaxy Farmaceutica (1, ) 2, - 1, - - Ranbaxy Europe - - ( ) ( ) ( ) - Pharma ANZ Pty Ltd (Formerly known as Ranbaxy Australia Pty Ltd) (1, ) 1, 1, - 1, - - Pharmaceuticals Canada - 1, ( ) - ( ) - S. C. Terapia 10, 13, 2, - 9, 2, 2, Tabs Investments Proprietary - - - - Ranbaxy (Netherlands) 37, 15, 53, 1, ( ) 1, - Insite Vision 2, 1, - ( ) ( ) ( ) - Pharma Medisales Private Limited (Formerly known as Solrex Pharmaceuticals Company) 2, 2, - - JSC - ( ) ( ) Pharmaceuticals Holdings USA, INC -- for Disease Elimination and Control of ( ) ( ) ( )- Ocular Technologies ( ) Pharmaceutical Medicare ( ) ( ) ( )- : 1 represents amount less than million and rounded off2 In respect of entities at Sr.

8 Nos. 4 to 8, 62, 84, 94, 96, and 99 the reporting date is as of December 31, 2016 and different from the reporting date of the Parent Company. Adjustments have been made for significant transactions of these subsidiaries for the periods from January 01, 2016 to March 31, 2016 and January 01, 2017 to March 31, 2017, on the basis of their management accounts for the said The above does not include 3 Skyline LLC, One Commerce Drive LLC, Sirius Laboratories Inc, Perryton Wind Power LLC, Insite Vision Ltd., Dusa Pharmaceuticals New York Inc., Taro Pharmaceutical Laboratories Inc, Taro Pharmaceutical India Private Limited being subsidiaries of Taro Pharmaceutical Industries Ltd, Caraco Pharma Inc. 2 Independence Way LLC, URL PharmaPro LLC and Dungan Mutual Associates LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the close of their FINANCIAL With effect from March 2, 2017, Sun Pharmaceutical Spain, has been With effect from February 16, 2017, Taro Hungary Intellectual Property Licensing Limited Liability Company has been Taro Pharmaceutical India Private Limited is under With effect from August 16, 2016 Dusa Pharmaceuticals New York, Inc.

9 Has been With effect from February 22, 2017 Sirius Laboratories Inc has been With effect from March 16, 2017, Thallion Pharmaceutical Inc., was acquired and merged with Taro Pharmaceuticals Inc.,10 With effect from April 7, 2016 Perryton Wind Power LLC has been During the year, Solrex Pharmaceuticals Company, a partnership firm has been converted into company which is known as Sun Pharma Medisales Private Limited12 MSD - Sun LLC is under MSD-Sun FZ LLC has been deregistered with effect from September 14, 2015 having deregistration certificate dated December 25, Daiichi Sankyo (Thailand) Ltd. s shares were sold as per agreement dated May 13, With effect from April 01, 2015, URL Pharma Inc., has merged into Mutual Pharmaceutical Company, With effect from April 01, 2015, AR Scientific Inc.

10 Have merged into URL Pharma With effect from April 01, 2015, United Research Laboratories Limited, have merged into URL Pharma During the previous year, the Company has sold its investment in Silverstreet Developers LLP with effect from April 01, With effect from March 01, 2016, Ranbaxy Belgium has been With effect from June 30, 2015 Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda has been Zalicus Pharmaceuticals Limited was acquired during the previous year and subsequently amalgamated in Taro Pharmaceuticals Inc., on October 05, With effect from November 02, 2015, Thea Acquisition Corporation has been merged with Insite Vision PHARMACEUTICAL INDUSTRIES LIMITED278 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017 Part B : Associate Companies and Joint Ventures ` In MillionSr.