Morepen Laboratories Ltd. — Interim / Quarterly Report 2020

Aug 31, 2020

Date: 31/08/2020

To,

National Stock Exchange ^of India Ltd. BSE Limited Exchange ^Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai- ^{400 0}5^{1 D}ala^{l S}treet, Mumbai- ^{400 001 T}e^l No: (022) 26598100 - 8114 Phones: 91-22-22721233/4 Fax No: (022) 26598120 Fax: 91-22-2272 3121 ^Symbol: MOREPENLAB ^Scri^{p C}ode: ⁵002⁸⁸

Subject: Outcome ^{of t}h^e meeting ^{of t}h^e Board ^of Directors ^{of t}h^e Company

Dear ^Sir/ Madam,

This is to inform you that the Board of Directors of the Company, in their meeting held on Monday, 31* August, 2020 (commenced at 12.00 Noon and concluded at 01.30 P.M.), have, inter-alia, considered and approved

(1) The unaudited standalone and consolidated financial results of the Company for the quarter ended 30" June, 2020, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

A copy ^{of t}h^e 'Results' along-with ^th^e 'Limited Review Report' of the Auditors ^{of t}h^e Company ^fo^{r t}h^e quarter ended 30" ^June, 2020 ^is enclosed herewith.

(2) Expansion of APIs (bulk drugs) manufacturing capacity.

A copy ^of disclosure pursuant ^to Regulation ^{30 of} SEBI (LODR) Regulations, 2015, ^as amended, ^is enclosed herewith ^as Annexure-A.

Kindly acknowledge ^th^e receipt and take ^it on your record.

Thanking you.

Yours faithfully,

For Morepen Laboratories Limited ^Mf cf NA.

VON (Vipu^{l K}uafia^{r S}rivastava) ^Compan^{y S}ecretary.

Encl.: As above

Morepen Laboratories Limited

Corp. ^Off.: ⁴t^h Floor,Antriksh Bhawan, 22 K.G.Marg, New Delhi- 110 001, INDIA Tel.:+91-11-23324443,23712025, E-mail: corporate@morepen.com,Website:www.morepen.com CIN NO. L24231 HP1984PLC006028

Plant & Regd. ^Off.: Morepen Village, Malkumajra, Nalagarh Road, Baddi, ^Distt. Solan (H.P.) -173205 Tel.: +91-1795-266401-03, 244590, ^Fax: +91-1795-244591, ^E-mail: plants@morepen.com

	Morepen Laboratories Limited CIN- L24231HP1984PLC006028
Statement of Unaudited Financial Results - Standalone	For the Quarter Ended 30th June, 2020
				(Rs. in Lakhs) Year Ended
	30.06.2020	31.03.2020	30.06.2019	31.03.2020
				(Audited)
	132.88	172.15	28.14	79198.74 941.72
	24458.72	19087.27	18974.65	80140.46
	13315.30	7142.63	10359.60	41321.87 11545.31
				(758.40)
	2667.48	2752.80	2125.21	9807.19
	28.74 746.98	62.02 797.08	42.13 1089.74	196.75 3443.39
	241.55	287.83	304.04	1255.79 1045.96
	944.35	856.87	922.91	3575.37
	1387.70	1587.78	860.76	4959.05 76392.28
	1884.67	947.82	840.78	3748.18
	-	-	(183.85)
		- :	183.85 :	- (514.87)
	-	-	-	(514.87)
				3233.31
	90.54	(79.31)	9.48 (2.04)	(217.25) -
	-	-	2.04	-
	a 90.54	a (79.31)	e 9.48	(37.03) (254.28)
	1975.21	868.51	850.26	2979.03
	8995.86	8995.86	8995.86	8995.86 21728.83
	-	-	-
	0.42		0.19	0.72
	Revenue from operations (Net) a) Cost of Material Consumed b) Purchase of stock - in - trade c) Changes in inventories of Finished goods, Work -in- progress and Stock-in-trade d) Employee Benefits Expenses f) Depreciation and Amortization h) Travelling Expenses i) Selling and Distribution Expenses Profit before Tax (1-2) Tax Credit Entitlements Income Tax - Earlier period Net Profit for the period (3-4) Other Comprehensive Income (OCI) Items that will not be reclassified to Profit & Loss Tax Credit Entitlements Income Tax - Earlier period Total Other Comprehensive Income (Net of Tax) Total Comprehensive Income Paid-up Equity Share Capital of Face Value of Rs. 2/- Reserves excluding Revaluation Reserve 10. Earning Per Share (in Rs.) - Review by the Auditors.	(Unaudited) 24325.84 3125.19 (80.42) 197.18 22574.05 1884.67 The Company is engaged in the Pharmaceutical Business Segment.	Quarter Ended (Audited) 18915.12 2060.98 2328.85 262.61 18139.45 947.82 0.21 company will continue to monitor any material changes to future economic conditions.	(Unaudited) 18946.51 2298.14 (93.81) 225.15 18133.87 840.78 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 31, 2020. A Limited review of the same has been carried out by the Statutory Auditors. Figures of the quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the full financial year and the year to date figure up to the third quarter of the relevant financial year which were subjected to Limited The company continues to monitor the impact of Covid-19 on its operations, supply chain and recoverability of carrying amounts for the financial and non-financial assets. Due care has been taken, in applying significant accounting judgements and estimates, including in relation to recoverability of receivables and inventory, in preparing the company's financial results for the quarter ended June 30, 2020. However, as the impact assessment of Covid-19 is a continuing process, the

⁵06, Ambadeep Building, ¹4, K.G. Marg New Delhi-1 10001 ^Ph.: ^{01 1}- 49425734 mail : satindergoyalandco@gmail.com

Satinder Goyal & Co. Chartered Accountants

Limited Review Report — Standalone Financial Results

Review Report ^to The Board ^of Directors Morepen Laboratories Limited

• 1. We have reviewed the accompanying statement of standalone unaudited financial results of Morepen Laboratories Limited (the "Company"') for the quarter ended June 30, 2020 (the "Statement"), 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 Regulations").
• 2, This Statement, which is the responsibility of the Company's management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind 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. 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 of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review Is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Attention is drawn to the fact that the figures for the quarter ended March 31, 2020 as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the previous financial year, which were subject to limited review by us. " f OOpay

⁵. ^Base^{d on o}u^{r r}evie^{w c}onducte^{d as a}bove, ⁿothin^{g h}a^{s c}om^{e to o}u^{r a}ttentio^{n t}ha^{t c}ause^{s us to b}eliev^{e t}ha^{t t}h^{e a}ccompanyin^{g S}tatement, ^prepare^{d in a}ccordanc^{e w}it^{h t}h^{e r}ecognitio^{n a}n^{d m}ieasuremen^{t p}rinciple^{s l}ai^{d d}ow^{n in t}h^{e a}foresai^{d I}ndia^{n A}ccountin^{g S}tandard^s ("In^{d A}S") ^specifie^{d u}nde^{r S}ectio^{n 133 of t}h^{e C}ompanie^{s A}ct, ²01^{3 as a}mended, ^rea^{d w}it^{h r}elevan^{t r}ule^{s i}ssue^{d t}hereunde^{r a}n^{d o}the^{r a}ccountin^{g p}rinciple^{s g}enerall^{y a}ccepte^{d in I}ndia, ^ha^{s n}o^{t d}isclose^{d t}h^{e i}nformatio^{n r}equire^{d to be d}isclose^{d in t}erm^{s of t}h^{e L}istin^{g R}egulations, ⁱncludin^{g t}h^{e m}anne^{r in w}hic^{h it is to be d}isclosed, ^{or t}ha^{t it c}ontain^{s a}n^y material misstatement.

For Satinder Goyal & Co. ^Chartere^{d A}ccountant^s — ^Firm'^s Regn. ^No: 027334N gloo ^r

CA S.K Goyal (Partner) ^Dat^e ; 31 ^Augus^{t 2}02⁰ Membership ^No. : ⁰8461^{3 P}lac^e : ^Ne^{w D}elh^{i U}DI^N : ²008^{4 6}1³ AAAA AQIWS³

	Morepen Laboratories Limited
	CIN- L24231HP1984PLC006028
				(Rs. in Lakhs)
	30.06.2020	31.03.2020	30.06.2019	Year Ended 31.03.2020
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
	25764.24	20660.26	20298.12	85306.69
	132.88	178.48		948.35 _86255.04
	13315.30	7142.63	10359.60	41321.87 15442.69
				(1022.71)
	2947.95	3020.81	2420.47	10990.60
	28.77 805.76	862.61	1150.30	198.45 3690.60
	241.55	287.83	304.04	1255.79 1383.17
	1065.81	900.53	979.72	3857.69
	1329.58	1624.36		5226.13 82344.28
	1955.50	1136.27	768.03	3910.76
	(18.79)	(33.56)	(185.98)	(37.40)
	-	-	183.85	(515.47)
	(18.79)	(34.16)	(2.13)	(552.87)
	(0.02)	0.02	(0.02)	3357.89 (0.03)
	1936.73	1102.09	165.92	3357.92
	94.69	(82.19)	5.63	(226.35)
	(1.04)	2.29	(2.04) 2.04	2.29
			-	(37.03)
	93.65	(79.90)	5.63	(261.09)
10, Paid-up Equity Share Capital of Face Value of Rs. 2/-				3096.83
	8995.86	8995.86	8995.86	8995.86
Reserves excluding Revaluation Reserve	-	-	-	19410.25
12. Earning Per Share (in Rs.) - Basic & Diluted	0.43	0.25	0.17
	Particulars Revenue Revenue from operations (Net) Other Income Total Revenue Expenditure a) Cost of Material Consumed b) Purchase of stock - in - trade c) Changes in inventories of Finished goods, Work -in- progress and Stock-in-trade d) Employee Benefits Expenses e) Finance Cost f) Depreciation and Amortization g) Power and Fuel h) Travelling Expenses i) Selling and Distribution Expenses j) Other Expenses Total Expenditure Profit before Tax (1-2) Tax Expense Tax Credit Entitlements Income Tax - Earlier period Total Tax Net Profit for the period (3-4) Share of Minority Interest in Profit/ (Loss) Net Profit after after Minority Interest Other Comprehensive Income (OCI) Items that will not be reclassified to Profit & Loss Tax Expense Tax Credit Entitlements Income Tax - Earlier period Total Other Comprehensive Income (Net of Tax) Total Comprehensive Income	25897.12 4134.15 (171.71) 244.46 23941.62 ~ 1936.71 2030.38	Statement of Unaudited Financial Results - Consolidated For the Quarter Ended 30th June, 2020 Quarter Ended 20838.74 3398.09 2066.15 62.22 337.24 19702.47 (0.60) 1102.11 1022.19	28.14 20326.26 3092.15 (37.80) 42.77 306.21 940.77 19558.23 - 765.90 771.55

⁵06, Ambadeep Building, ¹4, K.G. Marg New Delhi-1 1000) ^Ph.. O11- 49425734 mail © satindergoyalandco@gmail com

Satinder Goyal & Co. Chartered Accountants

Limited Review Report — Consolidated Financial Results

Review Report ^to The Board ^of Directors Morepen Laboratories Limited

• 1. We have reviewed the accompanying statement of consolidated unaudited financial results of Morepen Laboratories Limited (the "Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as the "Group") for the quarter ended June 30, 2020 (the "Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind 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. Our responsibility is to express a conclusion on the Statement based on our review.
• 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. of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Lo}

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• ⁴. ^Thi^{s S}tatemen^{t i}nclude^{s t}h^{e r}esult^{s of t}h^{e f}ollowin^{g G}rou^{p e}ntities:
• Morepen Laboratories Limited (the "Parent")
• Dr. Morepen Limited (Indian Subsidiary)
• Total Care Limited (Indian Subsidiary)
• Morepen Inc. (Foreign Subsidiary)
• ⁵. ^Th^{e c}onsolidate^{d u}naudite^{d f}inancia^{l r}esult^{s i}nclude^{s t}h^{e i}nteri^{m f}inancia^{l r}esult^{s of M}orepe^{n I}nc., ^{a f}oreig^{n s}ubsidiar^{y w}hic^{h h}av^{e n}o^{t b}ee^{n r}eviewed/audite^{d by t}hei^{r a}uditors, ^whos^{e i}nteri^{m f}inancia^{l r}esult^{s r}eflec^{t t}ota^{l c}omprehensiv^{e I}ncom^{e of R}s. ¹9.2^{4 l}akh^s (comprisin^{g of t}ota^{l r}evenu^{e of R}s. ³0.5^{6 l}akh^{s a}n^{d t}ota^{l e}xpense^{s of R}s. ¹¹.3^{2 l}akhs) ^fo^{r t}h^{e q}uarte^{r e}nde^{d J}un^{e 3}0, ²020. ^Accordin^{g to t}h^{e i}nformatio^{n a}n^{d e}xplanation^{s g}ive^{n to us by t}h^e Management, these interim financial results are not material to the Group.

^{We h}av^{e a}ls^{o n}o^{t r}eviewe^{d t}h^{e f}inancia^{l r}esult^{s of a}bov^{e s}tate^{d f}oreig^{n s}ubsidiar^{y c}onsidere^{d in t}h^{e p}reparatio^{n of t}h^{e S}tatement. ^Thes^{e f}inancia^{l r}esult^s have been furnished to us by the management.

Our conclusion on the Statenient is not modified in respect of the above matter.

• ⁶. ^Attentio^{n is d}raw^{n to t}h^{e f}ac^{t t}ha^{t t}h^{e f}igure^{s f}o^{r t}h^{e q}uarte^{r e}nde^{d M}arc^{h 3}1, ²02^{0 as r}eporte^{d in t}hes^{e f}inancia^{l r}esult^{s a}r^{e t}h^{e b}alancin^{g f}igure^{s b}etwee^{n a}udite^{d f}igure^{s in r}espec^{t of t}h^{e f}ull ^financia^{l y}ea^{r a}n^{d t}h^{e p}ublishe^{d y}ea^{r to d}at^{e f}igure^{s up to t}h^{e t}hir^{d q}uarte^{r of t}h^{e p}reviou^{s f}inancia^{l y}ear, ^whic^{h w}er^{e s}ubjec^{t to} limited review by ^us.
• ⁷. ^Base^{d on o}u^{r r}evie^{w c}onducte^{d as a}bove, ⁿothin^{g h}a^{s c}om^{e to o}u^{r a}ttentio^{n t}ha^t causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid ^India^{n A}ccountin^{g S}tandard^s ("In^{d A}S") ^specifie^{d u}nde^{r S}ectio^{n 133 of t}h^{e C}ompanie^{s A}ct, ²01^{3 as a}mended, ^rea^{d w}it^{h r}elevan^{t r}ule^{s i}ssue^{d t}hereunde^{r a}n^{d o}the^{r a}ccountin^{g p}rinciple^{s g}enerall^{y a}ccepte^{d in I}ndia, ^ha^{s n}o^{t d}isclose^{d t}h^{e i}nformatio^{n r}equire^{d to be d}isclose^{d in t}erm^{s of t}h^{e L}istin^{g R}egulations, ⁱncludin^{g t}h^{e m}anne^{r in w}hic^{h it is to be d}isclosed, ^{or t}ha^{t it c}ontain^{s a}n^y material misstatement.

For Satinder Goyal & Co. Chartered Accountants Firm's Regn. No: 027334

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CA S.K Goyal (Partner) ^Dat^e : ³1° ^Augus^{t 2}02⁰ Membership ^No, : ⁰8461^{3 P}lac^e : ^Ne^{w D}elhⁱ UDIN : 20084 ⁶); 3AAAAAR AOS 2

Disclosure pursuant to Schedule III, Para A, Para — B of SEBI (LODR), Regulations, 2015, as amended read with SEBI circular no. CIR/CFD/CMD/4/2015 dated September 09, 2015.

09, 2015.		Annexure-A Disclosure pursuant to Schedule III, Para A, Para — B of SEBI (LODR), Regulations, 2015, as amended read with SEBI circular no. CIR/CFD/CMD/4/2015 dated September
1.	S.no. Particulars Existing	Clarification Capacity, It would add 2000 MT per annum of APIs manufacturing
	utilisation proposed	MT annum capacity & capacity 3000 addition per to in capacity already installed.
	addition	The capacity utilisation for existing products at Baddi, API Plant is between 70-80%.
2.	Proposed the capacity be to is added	Period within which The expanded capacity is likely to commence commercial production over the next 3 years.
3		Investment required The total investment required to for expansion is approx. Rs. 178 Crores.
4,		Mode of financing Primarily through internal accruals.
5.	Rationale	The relationale behind expansion of APIs manufacturing capacity to become a global sourcing hub for several bulk drugs and to derive benefits of synergies.

Morepen Laboratories Limited

Corp. ^Off.: ⁴t^h Floor,Antriksh Bhawan, 22 K.G.Marg, New Delhi- 110 001, INDIA Tel.:+91-11-23324443,23712025, E-mail: corporate@morepen.com,Website:www.morepen.com CIN NO. L24231 HP1984PLC006028

Plant & Regd. ^Off.: Morepen Village, Malkumajra, Nalagarh Road, Baddi, ^Distt. Solan (H.P.) -173205 ^Tel.: +91-1795-266401-03, 244590, Fax: +91-1795-244591, E-mail: plants@morepen.com