Morepen Laboratories Ltd. — Interim / Quarterly Report 2020

Feb 14, 2020

Date: 14/02/2020

To,

National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 Tel No: (022) 26598100- 8114 Fax No: (022) 26598120 Symbol: MOREPENLAB Scrip Code: 500288

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Phones: 91-22-22721233/4 Fax: 91-22-2272 3121

Subject: Outcome of the Meeting of the Board of Directors of the Company

Dear Sir/ Madam,

This is to inform you that the Board of Directors of the Company, in their meeting held on Friday, 14111 February, 2020 (commenced at 12.00 Noon and concluded at 06.40 P.M), have, inter-alia, considered and approved the following:

1. Un-audited Standalone and Consolidated Financial Results of the Company for the quarter and nine-months 31 st December, 2019.

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. A copy of the 'Results' alongwith Limited Review Report of the Statutory Auditors of the Company.

1. Subject to approval of shareholders, other authorities, if any, amendment in Main Object clause by inserting 5 new clauses in existing Clause III (A) of Memorandum of Association of the Company (details in brief appended below).

At present, the company is engaged in the business of pharmaceutical and other related product manufacturing and trading. Now, the company intends to promote other various business comprising of running of hospitals, diagnostic laboratories, dispensaries, pharmacies, clinics, health care/rejuvenation centres/ clubs, hotels, rehabilitation and/or re-creation centres including carrying on other related activities. In order to make the main object clause of the Memorandum of Association of the company more comprehensive. The Board of Directors, subject to approval of shareholders and such other authorities, as may be required, approve the amendment in Object c;Iause of the Memorandum of Association ofthe company. :~~~~ ,' ··t Delht 00 ))

Morepen Laboratories Limited · ""!;''!

Corp. Off.: 4th F\oor,Antriksh Bhawan, 22 K.G.Marg, New De\hi-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

required, approve the amendment in Object Clause of the Memorandum of Association of the company.

1. Incorporation of a wholly owned subsidiary (WOS) of the company, with a view to increase its focus on diagnostics business independently.

You are requested to take the note of the same in your record.

Thanking you.

Yours faithfully,

For Morepen Laboratories Limited

~v?-~ :r.; ,

(Vipul tava) Company Secretary

Encl.: As stated above.

Morepen Laboratories Limited

Corp. Off.: 4th 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 Standalone Unaudited Financial Results For the Quarter & Nine Months Ended 31st December, 2019
						(Rs.in Lakhs except per share data
		Quarter Ended			Nine Months Ended		Year Ended
		31.12.2019	30.09.20191	31.12.2018	31.12.2019	31.12.2018	31.03.2019
	Particulars			(Unaudited)			(Audited
	I. Revenue
	Revenue from operations (Net)	2I348.62	I9988.49	I 9832.4I	60283.62	51II7.04	7I724.29
	Other Income	460.3I	28J.J2	243.42	769.57	264.4I	367.I8
	Total Revenue	21808.93	20269.61	20075.83	61053.19	51381.45	72091.47
2.	Expenditure
	a) Cost of Material Consumed	I3I85.95	I0633.69	I0939.92	34I 79.24	24695.79 I0247.87	34308.09 I4274.29
	b) Purchase of stock - in - trade c) Changes in inventories of Finished goods,	3668.37	35I 7.82	3596. 7I	9484.33
	Work -in- progress and Stock-in-trade	(2058.85)	(934.59)	(1073.32)	(3087.25)	(1408.68)	(1946.0I)
	d) Employee Benefits Expenses	2497.9I	2431.27	2I72.32	7054.39	6001.80	8474.24
	e) Finance Cost	54.02	38.58	41.66	I34.73	II5.2I	207.08
	f) Depreciation and Amortization	793.I2	763.45	904.53	2646.3I	2705.79	3800.78
	g) Power and Fuel	322.79	34J.J3	321.78	967.96	I009.I9	I3I8. I5
	h) Travelling Expenses	280.07	278. I3	234.69	783.35	699.24	I092.84
	i) Selling and Distribution Expenses	952.80	842.79	896.9I	27I8.50	2283.98	3I 72.2I
	j) Other Expenses	II22.09	1388.42	I066.82	3371.27	3092.0I	4528.44
	Total Expenditure	20818.27	19300.69	19102.02	58252.83	49442.20	69230.11
	3. Profit before Tax (I -2)	990.66	968.92	973.81	2800.36	I939.25	2861.36
	4. Tax Expense
	Tax		I83.85				(2 I2. 70)
	Tax Credit Entitlements		(183.85)				2I2.70
	Income Tax - Earlier period		(5I4.87		(5I4.87
	Total Tax	-	(514.87)	-	(514.87)	-	-
	5. Net Profit for the period (3-4)	990.66	454.05	973.81	2285.49	1939.25	2861.36
	6. Other Comprehensive Income (OCI)
	Items that will not be reclassified to Profit & Loss	(55. 5I)	(91.9I)	(170.05)	(137.94)	(I I5.64)	(171.82)
	Tax Expense		2.04				37.03
	Tax Credit Entitlements		(2.04)				(37.03)
	Income Tax - Earlier period		(37.03		(37.03
	Total Other Comprehensive Income (Net of Tax)	(55.51)	(128.94)	(170.05)	(174.97)	(115.64)	(171.82)
7.	Total Comprehensive Income	935.15	325.11	803.76	2110.52	1823.61	2689.54
8.	Paid-up Equity Share Capital of Face Value ofRs.2/-
	each	8995.86	8995.86	8995.86	8995.86	8995.86	8995.86
	9. Reserves excluding Revaluation Reserve						I8749.80
	10. Earning Per Share (in Rs.) Basic & Diluted			0.22	0.51	0.43	0.64
Notes:		0.22	O.IO
	I. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February I4, 2020. A

q rf (,)>"(! ~ &red AcCP.;s. -

Limited review of the same has been carried out by the Statutory Auditors. 2. The Company is engaged in the Pharmaceutical Business Segment.

1. The Company is implementing the Hon'ble National Company Law Tribunal (NCLT), Chandigarh order dated I2.03.20I8.

For anct..clr1be'ifalf o 'the Board of Directors ''v~ ---..,t,~l ' '\'· ?/ \ , . - - ~E'/i c:=r • · r .J '-- Place : New Delhi ~G ~ ).~ irtil{~ ,..__} (Sushi! Suri) Date : February 14, 2020 o' \p~; · .i {~anaging Director 0: ⁹I * NeiJ ^Dlhi ~ ^I~

506, Ambadeep Building, 14, K.G. Marg New Delhi-110001 Ph. : Oil- 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 December 31, 2019 and year to date from April 01, 2019 to December 31, 2019 (the "Statement") 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 Regulations').
• 1. The preparation of the Statement 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 there under and other accounting principles generally accepted in India, is the responsibility of the Company's Managet?ent 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. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that accompanying Statement, prepared in accordance with

recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Date: 14th February 2020 Place : New Delhi

Morepen Laboratories Limited CIN- L24231HP1984PLC006028 Statement of Consolidated Unaudited Financial Results For the Quarter & Nine Months Ended 31st December, 2019

		. (Rs.in Lakhs, except per share data
	Ouarter Ended			Nine Months Ended			Year Ended
		31.12.2019	30.09.2019	31.12.2018	31.12.2019	31.12.2018	31.03.2019
	Particulars			(Unaudited)			(Audited
	I. Revenue
	Revenue from operations (Net)	23005.60	21342.71	21215.51	64646.43	54982.14	76853.84
	Other Income	460.31	281.42	243.42	769.87	264.41	367.18
	Total Revenue	23465.91	21624.13	21458.93	65416.30	55246.55	77221.02
2.	Expenditure
	a) Cost of Material Consumed	13185.95	10633.69	10939.92	34179.24	24695.79	34308.09
	b) Purchase of stock - in - trade	4617.38	4335.07	4238.69	12044.60	12396.75	17329.47
	c) Changes in inventories of Finished goods,
	Work -in- progress and Stock-in-trade	(2073.08)	(977.98)	(976.24)	(3088.86)	(1396.52)	(1987.78)
	d) Employee Benefits Expenses	2818.00	2731.31	2454.05	7969.79	6806.49	9536.47
	e) Finance Cost	54.37	39.09	42.57	136.23	118.35	211.00
	f) Depreciation and Amortization	853.68	824.01	980.18	2827.99	2875.58	3990.29
	g) Power and Fuel	322.79	341.13	321.78	967.96	1009.19	1318.15
	h) Tra veiling Expenses	369.71	3 70.01	307.42	1045.93	929.99	1432.73
	i) Selling and Distribution Expenses	1045.96	931.48	1043.46	2957.16	2576.57	3273.22
	j) Other Expenses	1188.58	1472.42	1203.30	3601 .77	3386.88	4891.71
	Total Expenditure	22383.34	20700.23	20555.13	62641.81	53399.07	74303.35
3.	Profit before Tax (1-2)	1082.57	923.90	903.80	2774.49	1847.48	2917.67
	4. Tax Expense
	Tax	(0.89)	183.03		(3.84)		(246 33)
	Tax Credit Entitlements		(183.85)				212.70
	Income Tax - Earlier period		(514.87\	12.54	(514.87	12.54
	Total Tax	(0.89)	(515.69)	12.54	(518. 71)	12.54	(33.63)
5.	Net Profit for the period (3-4)	1081.68	408.21	891.26	2255.78	1834.94	2884.04
6.	Share of Minority Interest in Profiti(Loss)	(0.02)	(0.01)	(0.66)	(0.05)	(0.70)	(0.89)
7.	Net Profit after Minority Interest	1081.70	408.22	891.92	2255.83	1835.64	2884.93
8.	Other Comprehensive Income (OCI)
	Items that will not be reclassified to Profit & Loss	(55.94)	(93.85)	(175.91)	(144.16)	(114.04)	(169.11)
	Tax Expense		2.04				36.33
	Tax Credit Entitlements		(2.04)				(37.03)
	Income Tax - Earlier period
			(37.03)		(37.03)
9.	Total Other Comprehensive Income (Net of Tax)	(55.94)	(130.88)	(175.91)	(181.19)	(114.04)	(169.81)
	Total Comprehensive Income 10. Paid-up Equity Share Capital of Face Value ofRs.2/-	1025.76	277.34	716.01	2074.64	1721.60	2715.12
	each	8995.86	8995.86	8995.86	8995.86	8995.86	8995.86
	11. Reserves excluding Revaluation reserve						16,313.42
	12. Earning Per Share (in Rs.)
	Basic & Diluted	0.24	0.09	0.20	0.50	0.41	0.64

Notes:

I. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 14, 2020. A Limited review of the same has been carried out by the Statutory Auditors.

1. The Company is engaged in the Pharmaceutical Business Segment.

2. The Company is implementing the Hon'ble National Company Law Tribunal (NCLT), Chandigarh order dated 12.03.2018.

Place : New Delhi JJ 9 o~- ;'5, ~·'" tfj ~ <>'-?. - ^~e,.ea Acco-s

·-

For an '8-~ift[~ e Board of Directors - ~ ~ ·77 -f}_ ~ NE LH ~ 'o ~ !:; (Sushi! Suri) Date : February 14, 2020 ( * New eJhi -t: l ^~'11,JC aJ11Il ;~anaging Director

Satinder Goyal & Co. Chartered Accountants

Limited Review Re.vort -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 December 31 , 2019 and year to date from April 01 , 2019 to December 31 , 2019 (the "Statement") attached herewith, being submitted by the Group pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 as amended ("the Listing Regulations").
• 1. This Statement, \Vhich is the responsibility of the Parent's management and has been 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, Interim Financial Reporting (lnd AS-34) prescribed under section 133 of the Companies Act 2013 read with 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 Engagement (SRE) 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity", issued by the Institute of Chariered Accountants of India. This standard requires that we plen 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 ir..quiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is subst::n:tially less in scope than an audit sonducted in accordance with Stnndarcls on Auditing and consequently dn~s not e1:able us to obtain assurance that we would become aware of all significant matters that might be identified in a:J. audit. Accordingly, we do ect express an ::ludit opinion.

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.

• 1. We did not review the financial results of one foreign subsidiary considered in the preparation of the Statement and which constitute total comprehensive income of Rs. 5.10 lakhs (comprising of total revenues of Rs. 19.84 lakhs and total expenses ofRs. 14.74 lakhs) for the quarter ended December 31, 2019 and Rs. 26.85 lakhs (comprising of total revenue of Rs. 87.13 lakhs and total expenses ofRs. 60.28 lakhs) for year to date from April 01, 2019 to December 31, 2019. These financial results have been furnished to us by the Management, and our conclusion on the Statement in so far as it relates to the amounts and disclosures included in respect of this foreign subsidiary, is based solely on such management provided financial results.
• 5. Based on our review conducted and procedure:> performed as stated in paragraph 3 abeve, nothing has come to ciur attention that causes us to believe that th~ accompanying statement, prepared in accordance with the recognition and measurement principles bid down in applicable Indian Accounting Standards i· (Ind AS) specified under seclion 133 of the Companies Act 2013 read \Vtth relevant rules issued there under and other recognised accounting practices and policies ha<J not disclosed the informgtion required to be disclosed in terms of the Listing Regulations inducting the m<:nmer in which it is to . be disclosed, or that it contains any material misst~tement.

Dat~: 14th February 2020 Place: New Delhi