Lyka Labs Ltd. — Interim / Quarterly Report 2021

Feb 11, 2021

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 Ue.lthc.re Thro~b l.n.n-ov•tioa1

11th February, 2021

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

Sub iect: Outcome of Board Meeting held on 11 February. 2021

In Compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) regulations, 2015, the Board of Directors at its Meeting held on today has;

• 1. Considered and Approved Un-audited Standalone Financial results for the Third Quarter ended 3tst December, 2020;
• 1. CorJsidered and Approved Un-audited Consolidated Financial results for the Third Quarter ended 31st December, 2020;
• 1. Considered Shifting of Registered Office from Ankleshwar Gujarat to any place in Maharashtra at a future date subject to approval of shareholders.

Commencement of Meeting- 2.00 P.M Conclusion of Meeting - j, .55 P , M

Kindly note the same on your record.

Thanking You, Yours Faithfully,

Lyka Labs Limited

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

	Particulars	Quarter Ended			Nine Months Ended		(~in lakhlPrevious
		31stDecember,2020	30thSeptember,2020	31stDecember,2019	31stDecember,	31stDecember,	Year Ended31st March,2020
				. (Unaudited} (Unaudited) (Unaudited) (Unaudited) (Unaudited)	2020	2019	(Audited)
I.	Revenue
	Revenue from OperationsOther Income	1,891.2339.60	1,297.0944.31	1,198.4172.14	4,444.24136.17	3,095.85179.11	4,074.34259.58
	II. Total Income	1930.83	1 341.40	1270.55	4 580.41	3 274.96	4 333.92
	Ill. Expenses
	(a) Cost of Materials Consumed	350.40	202.91	428.16	880.27	1,024.14	1,344.58
	(b) Purchase of Stock in trade(c) Change in inventories of finished goods,work-in-progress and stock-in-trade,	391.9939.90	166.69128.81	180.84186.54	791.38184.40	608.45(2.01)	785.09(28.02)
	(d) Employee benefits expense	332.38	294.01	304.08	917.54	863.42	1,171.14
	(e) Finance Costs	652.60	646.51	1,114.40	1,924.77	1,333.22	1,901.21
	(f) Depreciation and amortisation expense	204.74	203.80	190.99	609.93	580.43	776.69
	(g) Other expenses	3.15.91	258.26	366.61	773.95	840.36	1,123.07
	Total Expenses	2 287.92	1900.99	2 771.62	6 082.24	5 248.01	7073.76
	IV. (Loss) /Profit before Exceptional Items andTaxes (II- Ill)	(357.09)	(559.59)	(1,501.07)	(1,501.83)	(1,973.05)	(2,739.84)
	v. Exceptional Items (Net)	{35.83)	9.10	2,648.20	(26.73)	2,648.20	2,775.29
	VI. (Loss) I Profit before Tax	j 321.261	(568.69}	(4149.27}	(1475.101	(4 621.251	(5 515.13
	VII. Tax Expenses (Deferred Tax)	(14.84)	14.61	9.63	(5.98)	(75.45)	23.52
	VIII. Net (Loss) I Profit after Tax	(306.42)	.(583.30)	(4158.90}	(1 469.12)	(4 545.801	(5,538.65
	IX. Other Comprehensive loss I (Income)	10.25	10.25	6.85	20.49	4.67	40.48
	X. Total Comprehe nsive (Loss) I Income	(316.67}	(593.55}	{4,165.75}	(1489.61}	(4 550.471	{5 579.131
	Paid up Equity Share Capital(Face value~ 10/- each)	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00
	Other EquityXI. Basic and diluted earnin_KS per share	(1.08)	(2.051	(14.641	(5.15)	(16.02)	1,258.93(19.48)

Notes:

• I. The above unaudited standalone financial results as reviewed by the Audit Committee at their meeting held on I O'" February 2021 and have been approved and taken on record at the meeting of the Board of Directors held on 11 ' 11 February 2021.
• 1. The Company operates in one reportable business segment i.e. " Pharmaceuticals".
• 1. The figu res for previous year have been regrouped I rearranged wherever considered necessary.
• 4. As per Scheme of Merger, Lyka .Healthcare Limited, a wholly owned subsidiary ('the Scheme' or 'business combination') with Lyka Labs Limited, holding company has been approved by the National Company Law Tribunal ('NCL T') vide its order dated 12'" October 2020 and a certified copy has been fi led by the Company with the Registrar of Companies, Ahmedabad, Gujarat, on 13'h November 2020. The appointed date as per the NCL T approved Scheme is I st April 2020 and as per the requirements of Appendix C to Ind AS I 03 "Business Combination", the business combination has been accounted for as if it had occurred from the date of acquisition of control i.e. I 51 April 2020. Accordingly, the amounts relating to the financial year ended 31 March 2020 include the impact of the business combination and the corresponding amounts for the previous quarter and year to-date ended 31st December 2019 and the amounts for the quarter ended 301 h September 2020, have been restated by the Company after recognising the effect of the merger.
• S. The statutory auditors of Lyka Labs Limited have expressed an unqualified opinion on the unaudited standalone financials results for the quarter and nine months ended 31'1December 2020.

For L YKA LABS LIMITED

Mumbai

D. KOTHARY & CO. Chartered Accountants

Independent Auditor's Review Report on Quarter and Nine Months ended Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors Lyka Labs Limited

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Lyka Labs Limited (the 'Company') for the Quarter ended 31st December, 2020 and Nine months ended from April 01, 2020 to 31st December, 2020 (the "Statement") (which includes the Statement of Company's branch at Ankleshwar reviewed 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 requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulation").
• 1. The preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (lnd AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, read with the Circular is the responsibility of the Company's management and has been approved by the Board of Directors of the Company. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. A review is substantially less in scope than an audit conducted in accordance with Standards of Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of the Regulation, read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We draw attention to Note 4 of the unaudited standalone financial results which describes the accounting for the Scheme of Merger between the Company and Lyka Healthcare Limited, a wholly owned subsidiary ('the Scheme' or 'business combination'). The Scheme has been approved by the National Company Law Tribunal ('NCLT') vide its order dated 12 October 2020 and a certified copy has been filed by the Company with the Registrar of Companies, Mumbai, Maharashtra, on 13 November 2020. The appointed date as per the NCLT approved Scheme is 1st April 2020 and as per the requirements of Appendix C to Ind AS 103 "Business Combination", the business combination has been accounted for as if it had occurred from the state

102-Ameya House, Next To Azad Nagar Metro Station, Above Standard Chartered Bank, Andheri (W), Whymbai $-40$ Tel (B) +91 22 6865 1155 / 1166 / 1111 • E-mail : info@dkothary.com • Website : www.dkothery.com

D. KOTHARY & CO. Chartered Accountants

acquisition of control i.e. 1" April2020. Accordingly, the amounts relating to the financial year ended 31 March 2020 include the impact of the business combination and the corresponding amounts for the previous quarter and year- to- date ended 31 December 201 9 and the amounts for the quarter ended 30 September 2020, have been restated by the Company after recognising the effect of the merger as above.

Our conclusion is not modified in respect of this matter.

For D. Kothary & Co. Chartered ccountants Firm Regis ation No. 105335W

Mehul N. Patel

Partner Membership No. 132650 UDIN: 21132650AAAACR1587

Place: Mumbai Date: 11'" February, 202'1

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

Lyka Labs Limited

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

			December, 2020				(II! in lakh)
	Particulars		Quarter Ended			Nine Months Ended	Previous
							Year Ended
		31stDecember,	30thSeptember,	31thDecember,	31stDecember,	31thDecember,	31st March,2020
		2020	2020	2019	2020	2019(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)	(Audited)
I.	Revenue
	Revenue from Ope rations	2,681.41	1,745.59	1,835.76	6,198.91	4,634.47	6,141.60
	Other Income	28.50	36.32	92.59	100.76	334.06	308.87
II.	Total Income	2 709.91	1781.91	1928.35	6 299.67	4 968.53	6450.47
	Ill. Expenses
	(a) Cost of Materials Consumed	350.40	202.91	428.16	880.27	1,024.14	1,344.58
	(b) Purchase of Stock in trade	862.21	477,33	689.42	1,695.41	1,856.27	2,301.68
	(c) Change in inventories of finished goods,work-in-progress and stock-in-trade,	108.93	62.73	114.25	286.67	(110.31)	(66.91)
	(d) Employee benefits expense	380.92	340.34	353.67	1,048.24	1,044.76	1,385.84
	(e) Finance Costs	658.59	659.62	1,126.41	1,956.59	1,449.46	2,006.63
(f)	Depreciation and amortisation expe nse	211.59	210.65	197.53	630.48	597.79	800.95
	(g) Other expenses	377.51	316.25	445.95	944.15	1,358.36	1,543.25
	Total Expenses	2 950.15	2 269.83	3355.39	7 441.81	7 220.47	9 316.02
	IV. (Loss) /Profit before Exceptional Items andTaxes (II- Ill)	(240.24}	(487.92}	(1,427.04)	(1,142.14}	(2,251.94)	(2,865.55}
	v. Exceptional Items (Net)	(41.10)	48.28	2,648.20	7.55	2,648.20	3,322.15
	VI. (Loss) I Profit before Tax	(199.14)	(536.20	(4 075.24\	(1149.69)	(4 900.14)	(6187.70)
	VII. Non Controlling Interest	40.92	2.89	28.16	102.67	(111.57)	{207.89}
	VIII. {loss) I Profit before Tax	(240.06)	1539.091	{4103.40)	{1252.36)	{4 788.57)	(5 979.81)
	IX. Tax Expenses (Deferred Tax)	(13.55)	35.87	16.16	16.58	(32.17)	74.34
X.	Net {loss) I Profit after Tax	(226.51	_1574.961	{4119.56)	{1 268.94	(4 756.40)	(6054.15)
	XI. Other Comprehensive Loss I (Income)	10.25	10.25	6.85	20.49	4.67	33.11
	XII. Total Comprehensive (Loss) /Income	j236.76	. (585.21)	{4126.41)	(1289.43}	(4 761.o7	(6 087.26
	XIII. Paid up Equity Share Capital	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00	2,869.00
	(Face value Rs.lO/· each)
	Other Equity						(4,303.46)
	XIV. Basic and diluted earnings per share	(0.80)	(2.01)	(14.50)	(4.45)	(16.76)	(21.291

Contd ... 2

Notes:

• I. The above unaudited consolidated financial results as reviewed by the Audit Committee at their meeting held on I O'h February 2021 and have been approved and taken on record at the meeting of the Board of Directors held 11111 February 2021.
• 1. The Group operates in one reportable business segment i.e. "Pharmaceuticals".
• 1. The figures for previous year have been regrouped I rearranged wherever considered necessary.
• 4. As per Scheme of Merger, Lyka Healthcare Limited, a wholly owned subsidiary ('the Scheme' or 'business combination') with Lyka Labs Limited, holding company has been approved by the National Company Law Tribunal ('NCL T') vide its order dated 12111 October 2020 and a certified copy has been filed by the Parent with the Registrar of Companies, Ahmedabad, Gujarat, on 13th November 2020. The appointed date as per the NCLT approved Scheme is I 51 April 2020 and as per the requirements of Appendix C to Ind AS 103 "Business Combination", the business combination has been accounted for as if it had occurred from the date of acquisition of control i.e. I" April 2020.
• 1. The Group has been incurring losses and has accumulated losses of Rs. 5592.90 lacs as at 31st December, 2020 and its net worth has been fully eroded. However, based on future business plans, the management is confident offunding its operating and capital expenditure and continue business operations in the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
• 1. The statutory auditors of Lyka Labs Limited have expressed an unqualified opinion on the unaudited consolidated financials results for the quarter and nine months ended 3151 December 2020.

For L YKA LABS LIMITED

. Gandhi (DIN 01516156) (Managing Director)

Mumbai 11m February, 2021

D. KOTHARY & CO. Chartered Accountants

Independent Auditor's Review Repcl.rt on Quarter a nd N ine Months ended Un01udited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Hequirements) Regulations, 2015, as amended

Review Report to The Board of Directors Lyka Labs Limited

• 1. We have rl:!viewed th1~ accompanying Statement of unaudited C•msolidated Fin,mcial ~uJts of Lyk a Labs Limited (''the Parent"), which includes its subsidiar)' (the Parent and its subsidiary toge the r referred to as 'the Group'), for the Quarter ended 31'1 December, 2020 and Nine months ended from April OL, 2020 to 31." December. 2020 (the 'St.\tement") c1ttachcd herewith, being s u bmitted by the Parent pursuant to the t.>quir ments of Regulation 33 of the SEBI (Listing O bligations and Disclosure RCI.JUiremc nts) Regulations, 2015, s.1mended ('th.• I b ting R;:g-uliltion ) .
• .., This Statement, \Vhich is the responsibility of the Pc1 rent's Man agement a.nd approved by the Parent's Bo,ud of Directors, hrlS peen prepared in CIC'Cordance with the nition and me asuremt!nt principles laid down in Indian Accounting Standard 34, (Tnd AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies ;\d, 2013 as ame nded, read w ith relevant rul~s issued tlw reunder and other accounting principles generally a cc!'pted in Tnd1a read with the Circul.n. Our responsibility is to express a conclusion on the Stak•1nent based on our revi('\'.
• 1. We ronducteu otu review of the Statement .in rda.nc~ with the Standard on Reviow Eng<1gements (SRE) 2410, "Review of Inte rim Fin.mciaJ nformCti nPe rformed by the Independent Auditor oi the Entity" issued by the In!>titute of Chc\rtered Accounta nts of India A review of inte rim financial informatio n consists of making inquiries, primarily of persons re<;ponsiblt! for financial anJ accounting matters, ilnd applying analytic.tl and other re\·iew procedures. *r* revio>w is su b~ tantially lss in scope than an nud it Cl>nductcd iJ1 <ti:Cordance with tc lards on Auditing ,md consequently docs not enable us to obt<1in assurance that ";e would bt.xome aware of all significant matters thclt might be identified in an audit. AccorJ lllgly, we d o not expn:!SS an aucUt opinion.

We also performed procedures in a ccordance with the C ircular issued by the Secmities and Exchange Board of India under Rt>gulation 33(8) of the SEBT (Listing Obligations and Disdosure Requirements) Regulations, 2015 ,,s amended, to the extent applkable.

• 1. The Statemen t includes the results of foUO\ ing entities: Subsidiaries i) Lyk<~ BDR In ternJtional Limited
  • ii) Ly ka h p01 ts L1mited

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

D. KOTHARY & CO. Chartered Accountants

• 1. We did not review the interim financial results and other financial information in respect of one branch at Ankleshwar, whose interim financial results/information reflects total assets of Rs. 6967.09 lakhs as at 31st December 2020, total revenues of Rs. 1772.31 lakhs and Rs. 3731.07, total net profit after tax of Rs. 461.00 lakhs and Rs. 867.31, total comprehensive income of Rs. 461.00 lakhs and Rs. 867.31 for the Quarter ended 31st December, 2020 and Nine months ended from April 01, 2020 to 31st December, 2020. These interim financial results and other financial information have been reviewed by other auditor, whose reports have been furnished to us by the management. Our conclusion, in so far as it relates to the affairs of branch is based solely on the report of other auditor. Our conclusion is not modified in respect of this matter.
• 1. Based on our review conducted and procedures performed as stated in para 3 above and based on the consideration of the review reports of other auditors referred to in para 6 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standard specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulation, read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For D. Kothary & Co. Chartered Accountants Firm Registration No. 105335W Mehul N. Patel Partner Membership No. 132650 UDIN: 21132650AAAACS2171

Place: Mumbai Date: 11th February, 2021

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