Lyka Labs Ltd. — Annual Report 2021

Jun 2, 2021

Corporate Office : Ground floor, Spencer Building, 30, Forjett Street, Grant Road (West), Mumbai - 400 036. • Phone : 6611 2200 · Fax : 6611 2249 Website : www.lykalabs.com · Email : enquiry@lykalabs.com Hl"·•llh. • .trt." th rn hJnnuv.1 liun

02 June 2021

BSE Ltd	National Stock Exchange of India Ltd
1st floor, New Trading Ring	Exchange Plaza, 5th Floor
Rotunda Bldg, P.J Towers	Plot No. C/1, G. Block
Dalal Street, Mumbai -400 001	Bandra Kurla Complex
	Bandra (East), Mumbai-400 051
Scr!pt Code: 500259	Script Code: L YKALABS

Subject: Outcome of Board Meeting

With respect to above, we wish to inform you that the Board of Directors at their meeting held today have:

• 1. Considered and adopted Standalone Audited Financial Results for the Fourth Quarter and Financial Year ended 31st March, 2021 (enclosed).
• 1. Considered and adopted Consolidated Audited Financial Results for the Fourth Quarter and Financial Year ended 31st March, 2021(enclosed).
• 1. Considered and adopted Standalone Audited Annual Accounts for the Financial Year ended 31st March, 2021.
• 1. Considered and adopted Consolidated Audited Annual Accounts for the Financial Year ended 31st March, 2021.
• 1. Considered and approved Directors' Report for the Financial Year ended 31st March, 2021.
• 1. The Annual General Meeting is convened on 30 July, 2021 through Video conferencing I other audio visual means.
• 1. The Register of Members and Share Transfer Books will remained closed for a period of 7 days from 24 July, 2021 to 30 July, 2021 (Inclusive both days) for the purpose of Annual General Meeting.
• 1. The Board noted that the Company has received permission from Central Drug Authorities, New Delhi for manufacture and market of Liposomal Amphotericin B Injection for treatment of invasive fungal infection.

Meeting Commenced at 04. 00 P.M and Meeting Concluded at t>L, · 4-6 P.M.

Kindly take the above on your record.

Thanking you, Yours faithfully, F Piyush G. Hindia

Company Secretary & Compliance Officer

Corporate Office : Ground floor, Spencer Building, 30, Forjett Street Grant Road (West), Mumbai - 400 036 • Phone: 6611 2200/290 Website: www.tykalabs.com • Email: enquiry@lykalabs.com

	Statement of Standalone Audited Financial Results for the Quarter and Year Ended 31st March, 2021
						(!{in lakh'
	Particulars		Quarter Ended		Year Ended
		31st March,2021(Audited)	31st December,2020(Unaudited)	31st March,2020(Audited)	31st March,2021(Audited)	31st March,2020(Audited)
I.	Revenue
	Revenue from Operations	1,78 2.06	1,891.23	978.50	6,226.30	4,074.34
	Other Income	84.85	39.60	80.47	221.03	259.58
	II. Total Income	1866.91	1930.83	1058.97	6 447.33	4 333.92
	Ill. Expenses
	(a) Cost of Materials Consumed	350.99	350.40	320.44	1,231.26,	1,344.58
	(b) Purchase of Stock in trade	125.81	391.99	176.64	917.19	785.09
	(c) Change in inventories of finished goods,	19.33	39.90	(26.01)	203.73	(28.02)
	work-in-progre ss and stock-in-trade,
	(d) Employee benefits expense	385.04	332.38	307.71	1,302.58	1,171.14
	(e) Finance Costs	630.51	652.60	567.99	2,555.28	1,901.21
	(f) Depreciation and amortisation expense	195.04	204.74	196.26	804.97	776.69
	(g) Other expenses	355.04	315.91	282.71	1,128.98	1,123.07
	Total Expenses	2 061.76	2 287.92	1825.74	8143.99	7 073.76
	IV. (Loss) /Profit before Exceptional Items and	{194.85}	(357.09)	{766.77}	{1,696.66)	{2,739.84}
	Taxes (II - Ill)
	v. Exceptional Items (Net)	169.60	(35.83)	127.09	142.87	2,775.29
	VI. (loss) I Profit before Tax	(364.45)	(321.26)	(893.861	(1839.53'	(5 515.13)
	VII. Tax Expenses (Deferred Tax)	(387.66)	(14.84)	98.98	(393.64)	23.52
	VIII. Net (Loss) I Profit after Tax	23.21	{306.42}	j992.84	{1445.891	{5 538.65_}
	IX. Other Comprehensive Loss I (Income)	(29.37)	10.25	35.82	(8.88}	40.48
	x. Total Comprehensive (loss) /Income	52.58	(316.67)	(1 028.661	(1437.011	(5 579.13)
	Paid up Equity Share Capital	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00
	(Face value~ 10/- each)
	Other Equity				(2,428.08)	(991.07)
	XI. Basic and diluted earnin_gs _l)_er share	0.07	j 1.08j	(3.49)	(5.08)	jl.9.48j

Corporate Office : Ground floor, Spencer Building, 30, Forjett Street. Grant Road (West), Mumbai - 400 036 • Phone: 6611 2200/290 Website: www.lykalabs.com • Email: enquiry@lykalabs.com

	Particulars	As at 31st March,2021	(iii! in lakh)As at 31st March,2020
ASSETS
	1 Non-Current Assets
{a)	Property, Plant and Equipment	6,658.66	7,148.42
(b)	Capital Work- In- Progress	1,618.18	1,660.18
{c)	Intangible assets	2,874.87	3,016.72
(d)	Intangible assets under development	821.76	979.87
		11,973.47	12 805.19
{e)	Financial Assets
	(i)lnvestments	3,240.30	3,240.30
	{ii) Other Financial Assets	1,372.44	1,315.50
(f)	Other Non Current Assets	140.56	124.86
(g)	Non Current Tax Assets	414.71	342.72
(h)	Deferred tax assets(net)	1622.07	1228.42
		6 790.08	6 251.80
2 Current Assets
(a)	Inventories	429.86	570.64
(b)	Financial Assets
	(i)lnvestments	0.77	0.75
	(ii) Trade Receivables	989.91	659.4 8
	(iii) Cash and Cash Equivalents	652.84	840.43
	(iv) Loans	5.70	285.78
	(v) Other Financial Assets	96.47	200.40
{c)	Other Current Assets	397.95	512.34
		2 573.50	3 069.82
	Total Assets	21337.05	22 126.81
	EQUITY AND LIABILITIES
Equity
	(a) Equity Share capital	2,869.00	2,869.00
	(b) Other Equity	(2 428.08)	(991.07)
		440.92	1 877.93
LIABILITIES
	1 Non-Current Liabilities
{a)	Financial Liabilities
	(i) Borrowings	15,105.54	12,569.00
	{ii) Other Financial Liabilities	1,047.23	1,862.99
(b)	Provisions	268.17	283.29
		16 420.94	14 715.28
	2 Current l iabilities
{a)	Financial Liabilities
	(i) Borrowings	1,008.95	1,059.09
	{ii) Trade Payables due to :		-
	- Micro and Small Enterprise	309.58	211.90
	-Other than Micro and Small Enterprise	892.38	1,438.43
	(iii) Other Financial Liabilities	1,874.07	2,234.73
(b)	Other Current Liabilities	228.12	398.21
(c)	Provisions	162.09	191.24
		4 475.19	5 533.60
	Total Equity and Liabilities	21337.05	22126.81

Corporate Office : Ground floor, Spencer Building, 30, Forjett Street Grant Road (West), Mumbai - 400 036 • Phone : 6611 2200/290 Website : www.lykalabs.com • Email : enquiry@lykalabs.com

lyka l abs limitedAudited Cash Flow Statement for the Year Ended 31st March, 2021
Particulars			Current Year Ended 31st Previous Year Ended 31st	(~in lakh1
		March 2021	March 2020
A. Cash Flow from 011erating Activities
(Loss) for t he year before tax		(1,839.53)		(5,515.12)
Adjusted for
Depreciation	804.97		776.69
Interest Income	(139.46)		(69.32)
Finance Cost	2,555.28		1,901.21
Provision for Doubtful Trade Receivables & Advances	45.16		(79.89)
Provision I Credit Balance no longer required Written Back	-		(0.00)
Exceptional It ems	130.87		2,949.92
Return on Investment	(0.03)		(0.04)
		3 396.79		5 478.57
Operating profit before working capital change		1,557.26		(36.55)
Changes in Working Capital :
(Increase) I Decrease in Other Non-Current Financial Assets	(83.32)		(125.36)
(Increase) I Decrease in Other Non-Current Assets	(15.70)		2.78
(Increase) I Decrease in Inventories	140.78		65.84
(Increase) I Decrease in Trade and other receivables	(324.45)		951.63
(Increase) I Decrease in Other Current Financial Assets	103.93		150.23
(Increase) I Decrease in Other Current Assets	114.40		466.60
(Increase) I Decrease in Current Loans	280.08		(905.61)
Increase I (Decrease) in Other Non-Current Financial Liabilit ies	(6.54)		3.38
Increase I (Decrease) in Non-Current Provisions	(15.12)		(7.72)
Increase I (Decrease) in Trade Payables	(448.37)		(686.07)
Increase I (Decrease) in Other Current Financial Liabilities	(414.44)		(2.99)
Increase I (Decrease) in Other Current Liabilities	(170.09)		(1,032.54)
Increase I (Decrease) in Current Provisions	(71.41)		(65.23)
		(910.25)		(1185.06)
Cash generated from operations		647.01		(1,221.61)
Net Income Tax Payment	(71.98)	.(71.98)	76.77	76.77
Net cashflow from operating activities (A)		575.03		(1,144.84)
B. Cashflow for Investing activities
Purchase of fixed assets	(126.78)		(56.70)
Interest Received	139.46		69.32
Net cash used in Investing activities (B)		12.68		12.62
C. Cashflow from Financing activities
Proceed from I (Repayment) of Non Current Borrowings Net	3.44		2,765.23
Proceed from I (Repayment) of Current Borrowings Net	(129.96)		(409.84)
Proceeds from Issue of Equity Shares net (Including Premium)	-		226.88
Interest Paid	(648.78)		(621.60)
Net cash used in financing activities (C)		(775.301		1960.67
Net (decrease) I increase in cash and cash equivalents (A+B+C)		(187.59		828.45
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equ1valents		13.81		11.98
Earmarked Balances		826.62		-
		840.43		11.98
Cash and Cash Equivalents at the end of the year
Cash and Cash Equivalents		11.66		13.81
Earmarked Balances		641.18		826.62
		652.84		840.43

Notes:

• 1. The above audited standalone financial results as reviewed by the Audit Committee, have been approved and taken on record at the meet ng of the Board of Directors held on 2nd June, 2021.
• 1. The Scheme of Merger of Lyka Healthcare Limited with Lyka Labs Limited effective from I st April, 2020 (Appointed Date of Merger) has been approved by NCLT, Ahmedabad vide its order dated 12th October, 2020 which was registered with the Registrar of Companies. Gujarat on 13th November, 2020 (Effective date of Merger). The merged annual accounts of Lyka Healthcare Limited with Lyka Labs Limited is prepared from I st April, 2020. This transaction has been accounted as per Ind AS I 03 using the poolmg of interest method and maintaining the identity of the reserves as those appeared in the standalone financial statements of LHL.

The Company has accounted for this merger under the "pooling of interest" method for common control transactions as per the gujdance m lnd AS I 03 "Business Combinations". Further, in accordance with Ind AS I 03 'Business Combinations', the Company has restated the figures for all the past periods presented in these financial results. Accordingly, Other Equity of the Company as on 3 1st March, 2020 has decreased by Rs. 2827.19 lakh.

1. During the quarter, the Company has capitalized Rs. 82.82 lakhs as "Self- Generated Intangible Assets" upon successful development of respective products.

During the quarter company has charged Rs 26.13 lakhs to profit and loss account under exceptional items for products are abandoned for fUI1her development

4. Exceptional Items:

Exceptional Items consist of: (Rs. in Lakhs)

Sr.No	Particulars	Quarterended3151 March 2021	Year ended3 P' March 2021
I	Irrecoverable advances I receivab es I payableWritten Off I Written Back (Net)	68.07	41.34
	2 CWIP IntangibleWrittenProducts areOff -abandoned for further development	-26.13	26.13
	3 Fixed Assets discarded	75.40	75.40
	Total	169.60	142.87

• 1. Figures for the quarter ended 31 sl March 2021 and 31 $l March, 2020 represent the difference bet ween the audited figures in respect of the fu,l financial year and the publish figures of nine months ended 31st December, 2020 and 31 51 Decembl!r, 20 19 respectively.
• 1. The Company operates in one reportable business segment i.e. "Pharmaceuticals".
• 1. The figures for previous year have been regrouped/rearranged wherever considered necessary.

The Company continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business, including how it has impacted and will impact its customers, employees, vendors and business partners. The management has exercised due care, in concluding on significant accounting judgements and estimates, inter-alia, rl!coverability of receivables, assessment for impairment of investments, intangible assets, inventory, based on the information available to date, both internal and external, while preparing the Companv's financial results for the quarter and year ended 31st March, 2021 .

For LYKA LABS LIMITED

2"11 J une, 202 I (Managing Director)

Independent Auditor's Report on Audited Standalone Quarterly and Year to Date Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Board of Directors of Lyka Labs Limited

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying standalone financial results of Lyka Labs Limited ("the Company") for the quarter and year ended 31st March 2021 ("the Statement") (which includes the Statement of Company's branch at ankleshwar audited by other auditors and relied upon by us, after making such changes as are considered necessary for incorporation) attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us these standalone financial results:

• I. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• II. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net loss and other comprehensive income and other financial information for the quarter and year ended 31st March 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Standalone Financial Results

These quarterly financial results as well as the year to date standalone financial results have been prepared on the basis of the interim financial statements. The Company's Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net profit/loss and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments

and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

The statement includes the results for the quarter ended 31st March 2021 being the balancing figure between audited figures in respect of the full financial year and the published unaudited year to date figures up to the nine months of the current financial year which were subject to limited review by us.

Mehul N. Patel

Place: Mumbai Date: 2nd June, 2021

Corporate Office : Ground floor, Spencer Building, 30, Fo~ tt Street, Grant Road (West), Mumbai - 400 036 • Phone: 6611 2200/290 Website: www.lykalabs.com • Email : enquiry@lykalabs.com

			Quarter Ended			('{in lakh)
	Particulars	31st March,2021(Audited)	31st December,2020(Unaudited)	2020(Audited)	Year Ended31st March, 31st March,2021(Audited)	31st March,2020(Audited}
I.	Revenue
	Revenue from Operations	2,426.22	2,681.41	1,507.13	8,625.13	6,148.89
	Other Income	55.41	28.50	116.92	156.17	308.87
	II. Total Income	2 481.63	2 709.91	1624.05	8 781.30	6 457.76
	Ill. Expenses
	(a) Cost of Materials Consumed	350.99	350.40	320.44	1,231.26	1,344.58
	(b) Purchase of Stock in trade	564.40	862.21	445.41	2,259.80	2,301.68
	(c) Change in inventories of finished goods,work-in-progress and stock-in-trade,	18.94	108.93	43.40	305.61	(66.91)
	(d) Employee be nefits expe nse	408.32	380.92	341.08	1,456.56	1,385.84
	(e) Finance Costs	637.18	658.59	557.17	2,593.77	2,006.63
	(f) Depreciation and amortisation expense	201.89	211.59	203.16	832.38	800.95
	(g) Other e xpenses	459.39	377.51	326.99	1,403.54	1,550.54
	Total Expenses	2 641.11	2,950.15	2 237.65	10 082.92	9 323.31
	IV. (Loss) /Profit before Exceptional Items andTaxes (II -Ill)	(159.48)	(240.24)	(613.61)	(1,301.62)	(2,865.55)
	v. Exceptional Items (Net)	105.24	(41.10)	673.95	112.79	3,322.15
	VI. (Loss) I Profit before Tax	(264.72 1	(199.14)	-(1287.56)	(1414.41)	(6187.701
	VII. Non Controlling Interest	43.71	40.92	(161.68)	146.38	(207.89)
	VIII. (Loss) I Profit before Tax	(308.43	(240.06)	11125.881	(1 560.791	(5 979.81)
	IX. Tax Expenses	(421.93)	(13.55)	105.78	(405.34)	74.34
x.	Net (Loss) I Profit after Tax	113.50	(226.511	11231.661	11155.451	16 054.15)
	XI. Other Comprehensive Loss I (Income)	(31.47)	10.25	28.44	{10.97)	33.11
	XII. Total Comprehensive (Loss) /Income	144.97	1236.761	(1 260.101	(1144.48)	l6087.26)
	XIII. Paid up Equity Share Capital	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00
	(Face value Rs.10/· each)Other Equity				(5,448.67)	(4,303.46)
	XIV. Basic and diluted earnings per share	0.39	(0.80	(5.67)	(4.07)	(21.291

~~mJ

Corporate Office : Ground floor, Spencer Building, 30, Fo~ett Street, Grant Road (West), Mumbai - 400 036 • Phone : 6611 2200/290 Website: www.lykalabs.com • Email: enquiry@lykalabs.com

	As at 31st March,	(~in lakh)As at 31st M arch,
Particulars	2021	2020
ASSETS
1 Non-Current Assets
(a) Property, Plant and Equipment	6,747.66	7,251.98
(b) Capital Work- In- Progress	1,618.18	1,660.18
(c) Intangible assets	3,071.36	3,226.05
(d) Intangible assets under development	957.32	1115.44
	12 394.52	13 253.65
(e) Financial Assets
(i)lnvestments	0.89	0.89
(ii) Loan	11.84	43.83
(ii) Other Financial Assets	1,376.21	1,317.85
(f) Other Non Current Assets	141.45	134.84
(g) Non Current Tax Assets	529.38	449.19
(h) Deferred tax assets( net)	1634.60	1 228.82
	3 694.37	3 175.42
2 Current Assets
(a) Inventories	430.62	673.28
(b) Financial Assets
(i)lnvestments	0.77	0.75
(ii) Trade Receivables	867.21	804.26
(iii) Cash and Cash Equivalents	715.36	1,030.16
(iv) Loans	6.74	8.32
(v) Other Financial Assets	97.80	198.87
(c) Other Current Assets	793.82	872.10
(d) Current Tax Assets	-	-
	2 912.32	3 587.74
Total Asset s	19 001.21	20 016.81
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital	2,869.00	2,869.00
(b) Other Equity	_lS 448.67)	(4 303 4~
Equity attributable to owners of the company	(2 579.67)	(1434.46)
(c) Non-controlling Interest	70.43	(76.68}
	(2 509.24)	(1 511.14}
LIABILITIES
1 Non-Current Liabilit.ies
(a} Financial liabilities
(i} Borrowings	15,136.07	12,609.63
(ii) Other Financial liabilities	1,084.28	1,900.04
(b) Provisions	366.24	386.24
	16 586.59	14 895.91
2 Current liabilities
(a) Financial Liabilities
(i) Borrowings	1,036.53	1,441.37
(ii} Trade Payables due to:
- Micro and Small Enterprise	338.51	211.90
-Other than Micro and Small Enterprise	1,133.41	1,673.58
(iii) Other Financial liabilities	1,916.26	2,354.32
(b) Other Current Liabilities	329.11	728.36
(c) Provisions	170.04	222.51
~~~	4 923.86	6 632.04
N" l,Total Equity and t.	19 001.21	20 016.81
bili ti ~

Corporate Office : Ground floor, Spencer Building, 30, Fo~ett Street, Grant Road (West), Mumbai - 400 036 • Phone: 6611 2200/290 Website: www.lykalabs.com • Email enquiry@lykalabs.com

Audited Consolidated Cash Flow Statement for the Year Ended 31st March, 2021
Particulars			Current Year ended 31st Previous Year Ended 31st	~in lakh)
	March 2021		March 2020
A. Cash Flow from Oeerating Activities
(Loss) for the year before tax		(1,414.41)		(6,187.69)
Adjusted for
Depreciation	832.38		800.95
Interest Income	(110.65)		(98.89)
Finance Cost	2,593.77		2,006.63
Provision for Doubtful Trade Receivables & Advances	98.01		(5.99)
Provision I Credit Balance no longer required Written Back	(0.15)		(0.00)
Exchange rate fluctuation	(4.39)		(31.89)
Exceptional Items	130.87		2,905.35
Return on Investment	(0.03)		(0.04)
		3 539.82		5,576.12
Operating profit before working c.apital change		2,125.41		(611.57)
Changes in Working Capital :
(Increase) I Decrease in Other Non-Current Financial Assets	(84.74}		(79.65)
(Increase) I Decrease in Other Non-Current Assets	(6.61}		0.97
(Increase) I Decrease in Inventories	242.66		26.95
(Increase) I Decrease in Trade and other receivables	(106.61}		795.66
(Increase) I Decrease in Other Current Financial Assets	101.06		208.90
(Increase) I Decrease in Other Current Assets	78.28		(111.46)
(Increase) I Decrease in Non-Current Loans	31.99		637.83
(Increase) I Decrease in Current loans	1.58		{3.22)
Increase I (Decrease) in Other Non-Current Financial Liabilities	(6.54)		1,564.02
Increase I (Decrease) in Non-Current Provisions	(19.99}		(21.61)
Increase I (Decrease) in Trade Payables	(413.40)		(624.10)
Increase I (Decrease) in Other Current Financial liabilities	(490.59)		51.83
Increase I (Decrease) in Other Current liabilities	(399.25}		(1,240.73)
Increase I (Decrease) in Current Provisions	(91.45}		(111.55)
		(1163.631		1,093.84
Cash generated from operations		961.78		482.27
Net Income Tax Payment	(80.63)	(80.63)	50.07	50.07
Net cash flow from operating activities (A)		881.16		532.34
8. Cashflow for Investing activities
Purchase of fixed assets	(126.78)		(109.84)
Interest Received	110.65		98.88
Net cc;sh used in Investing activities (B)		(16.13}		(10.96)
c. Cash flow from Financing activities
Proceed from I (Repayment) of Non Current Borrowings Net	(6.65)		2,206.69
Proceed from I (Repayment) of Current Borrowings Net	(484.65)		(145.05)
Proceeds from Issue of Equity Shares net (Including Prerr ium)	-		226.88
Interest Paid	(688.53)		(1,950.24)
Net cash used in Financing activities (C)		(1179.831		338.27
Net {decrease ) I increase in cash and cash equivalents (A+B+C)		{314.80}		859.65
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents		17.93		19.10
Earmarked Balances		1012.23		151.41
		1030.16		170.51
Cash and Cash Equivalents at the end of the year
Cash and Cash Equivalents		23.59		17.93
Earmarked Balances		691.77		1012.23
				1030.16

Regd. Office : 4801 I B & 4802/ A, G.I.O.C. Industrial Estate, Ankleshwar- 393 002. • Phone : 02646 221422 /220549 • Fax : 02640-250692 CIN L24230GJ1976PLC008738

Notes:

• I. The above audited consolidated fi nancial results as reviewed by the Audit Committee, have been approved and taken on record at the meeting of the Board of Directors held on 2nd June, 2021.
• 2. The Scheme of Mergerof Lyka Healthca e Limited with Lyka Labs Limited effective from 1st April, 2020 (Appointed Date of Merger) has been approved by NCL T, Ahmedabad vide its order dated 12th October, 2020 which was registered with the Registrar of Companies, Gujarat on 13th November, 2020 (Effective date of Merger). The merged annual accounts of Lyka llealthcare Limited with Lyka Labs Limited is prepared from 1st April, 2020. This transaction has been accounted as per Ind AS I 03 using the pooling of interest method and maintaining the identity of the reserves as those appeared in the standalone financial statements of LHL.

The holding Company has accounted for this merger under the "pooling of interest" method for common control transactions as per the guidance in lnd AS 103 "Business Combinations". Further, in accordance with Jnd AS 103 ' Business Combinations', the holding Company has restated the figures for all the past periods presented in these financial results. Accordingly, Other Equity of the holding Company as on 3 I st t~rch, 2020 has decreased by Rs. 2827.19 lakhs.

1. During the quarter, the Holding Company has capitalized Rs. 82.82 lakhs as "Self - Generated Intangible Assets·· upon successful development of respective products.

During the quarter Holding Company has charged Rs. 26.13 lakhs to profit and loss account under exceptional items for products are abandoned for further development.

4. Exceptional Items:

(Rs. in Lakhs)

Sr.No	Particulars	Quarterended3151 March 2021	Year ended3 I 51 March 2021
I	receivables I payableIrrecoverable advances IWritten Off I Written Back (Net)	3.71	11.26
	2 CWIPIntangible Written Off -Products areabandoned for further development	26.13	26.13
	3 Fixed Assets discarded	75.40	75.40
	Total	105.24	112.79

• 1. Considering the continuing substantial losses incurred by the Company, its net worth has been eroded. However, having regard to improved operational performance, financial support from its promoters, further restructuring exerc1se being implemented, non-cancellable customer orders received by the Company etc, the fin1nc1al statements of the Company have been prepared on the basis of going concern and no adjustments are required to the carrying value of assets and liabilities.
• 1. Figures for the quarter ended 3 I st March, 2021 and 3 I st March, 2020 represent the difference between the audited figures in respect oft he full financial year and the publish figures of nine months ended 31st December, 2020 and 3 1st December, 2019, respectively.
• 1. The group operates in one reportable bus ness segment i.e. '·Pharmaceuticals".
• 1. The figures for previous year have been regrouped/rearranged wherever considered necessary.
• 1. The Group continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business, including how it has impacted and will impact its customers, employees, vendors, and business partners. The management has e:\ercised due care, in concluding on significant accounting judgements and estimates, inter-alia, recoverability of receivables, assessment for impairment of investments, intangible assets, inventory, based on the information available to date, both internal and external, while preparing the Group's financial results for the quarter and year ended 31st March, 2021.

Mumbai Ku

For LYKA LABS LIMITED

2"d J unc, 2021 (Managing Directoa·)

Independent Auditors' Report on Consolidated Financial Results of the Company pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended

To The Board of Directors of Lyka Labs Limited

Opinion

We have audited the accompanying Statement of Consolidated Financial Results of Lyka Labs Limited ("the Parent" or " the Company") and its subsidiaries (the Parent Company and its subsidiaries together referred to as "the Group") for the quarter and year ended 31st March 2021 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements and other financial information of subsidiaries, referred to in Other Matters Paragraph, the Statement:

• a. includes the results of the following entities:
• Subsidiaries
  • i) Lyka BDR International Limited
  • ii) Lyka Exports Limited
• b. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, as amended; and
• c. gives a true and fair view, in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of consolidated total comprehensive income (comprising of net loss and other comprehensive income) and other financial information of the Group for the quarter and year ended 31st March 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of the Group, its associates and jointly controlled entities in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to the following matters:

(i)

1 02-Ameya House, Next To Azad Nagar Metro Station, Above Standard Chartered Bank, Andheri (W), ai - 400 058. Tel (B) +91 22 6865 1155 I 1166 I 1111 • E-mail : info@dkothary.com • Website : www.dkothary.com

appropriateness of the said basis is inter alia dependent on the fact that the management is hopeful of better prospects in future.

Our opinion is not modified in respect of these matters.

Management's Responsibilities for the Consolidated Financial Results

These quarterly financial results as well as the year to date consolidated financial results have been prepared on the basis of the interim financial statements.

The Holding Company's Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit/ loss and other comprehensive income and other financial information of the Group including its associates and jointly controlled entities in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and its associates and jointly controlled entities and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for assessing the ability of the Group and of its associates and jointly controlled entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for overseeing the financial reporting process of the Group and of its associates and jointly controlled entities.

Auditor's Responsibilities for the Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates and jointly controlled entities to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associates and jointly controlled entities to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group and its associates and jointly controlled entities to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. For the other entities included in the consolidated Financial Results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matters

The accompanying Statement includes the audited financial results and other financial information, in respect of two subsidiaries, whose financial results include total assets of Rs 1504.38 lakhs as at March 31, 2021, total revenues of Rs 996.60 lakhs and Rs 3,949.05lakhs, total riet profit/ (loss) before tax of Rs. 103.73 lakhs and Rs. 425.12 lakhs, total comprehensive income of Rs. (2.10) lakhs and Rs. (2.10) lakhs, for the quarter and the year ended on that date respectively, and net cash outflows of Rs. 127.21lakhs for the year ended March 31, 2021, as considered in the Statement which have been audited by us.

We did not audit financial results and other financial information in respect of one branch at Ankleshwar, whose financial results/information reflects total assets of Rs. 6,938.47lakhs as at 31st March 2021, total revenues of Rs. 1,227.13 lakhs and Rs. 4,973.01lakhs, total net profit before tax of Rs. 271.51lakhs and Rs. 1138.82lakhs, for the quarter and year ended 31st March 2021 respectively. These audited financial results and other financial information have been audited by other auditor, whose reports have been furnished to us by the management.

Our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

The statement includes the results for the quarter ended 31st March 2021 being the balancing figure between audited figures in respect of the full financial year and the published unaudited year to date figures up to the nine months of the current financial year which were subject to limited review by us.

Partner Membership No. 132650 UDIN: 21132650AAAAEU6815

Place: Mumbai Date: 2nd June, 2021