Morepen Laboratories Ltd. — Interim / Quarterly Report 2020

Nov 9, 2020

Date: 09/11/2020

To,

BSE Limited
Phiroze Jeejeebhoy Towers,
D laLS!reet, Muml?<!i- 400 00 ! </td
Scrip Code: 500288

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 Monday, 9th November, 2020 (commenced at 12. 00 Noon and concluded at 02.20 P.M), have, inter-alia, considered and approved the unaudited standalone and consolidated financial results of the Company for the quarter and half year ended 30th September, 2020, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

A copy of the 'Results' along-with the 'Limited Review Report' of the Auditors of the Company for the quarter and half year ended 30th September, 2020 is enclosed herewith.

Kindly acknowledge the receipt and take it on your record.

Thanking you.

Yours faithfully, Limited

Encl.: As above

Morepen Laboratories Limited

Corp. Off.: 4th Floor,Antriksh Bhawan, 22 K.G.Marg, New Delhi- 11 O 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 & Half Year Ended 30th September, 2020
							(Rs. In lakhs)
		Half Year Ended Quarter Ended				Year Ended
		30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
	Particulars		(Unaudited)		Unaudited		I Audited
1.	Revenue -- - - -	- - -	-	-	-- - -	- -- - -	- -- - -
	Revenue from operations (Net)	31459.88	24325.84	19988.49	55785.72	38935.00	79198.74
	Other Income	373.34	132.88	281.12	506.22	309.26	941.72
2.	Total Revenue	31833.22	24458.72	20269.61	56291.94	39244.26	80140.46
	Expenditure
	a) Cost of Material Consumed b) Purchase of stock - in - trade	17991.96 3824.46	13315.30 3125.19	10633.69 3517.82	31307.26 6949.65	20993.29 5815.96	41321.87 11545.31
	c) Changes in inventories of Finished goods,
	Work -in- progress and Stock-in-trade	(363.34)	(80.42)	(934.59)	(443. 76)	(1028.40)	(758.40)
	d) Employee Benefits Expenses	2934.76	2667.48	2431.27	5602.24	4556.48	9807.19
	e) Finance Cost	28.96	28.74	38.58	57.70	80.71	196.75
	f) Depreciation and Amortization	715.54	746.98	763.45	1462.52	1853.19	3443.39
	g) Power and Fuel	320.94	241.55	341.13	562.49	645.17	1255.79
	h) Travelling Expenses	137.56	197.18	278.13	334.74	503.28	1045.96
	il Selling and Distribution Expenses	1274.86	944.35	842.79	2219.21	1765.70	3575.37
	j) Other Expenses	2405.49	1387.70	1388.42	3793.19	2249.18	4959.05
	Total Expenditure	29271.19	22574.05	19300.69	51845.24	37434.56	76392.28
3.	Profit before Tax (1-2)	2562.03	1884.67	968.92	4446.70	1809.70	3748.18
	4. Tax Expense
	Tax			183.85
	Tax Credit Entitlements			(183.85)	-		-
	Income Tax - Earlier period			(514.87)	-	(514.87)	(514.871
	Total Tax	-	-	1514.87)	-	(514.87)	1514.87)
5.	N ct Profit for the period (3-4)	2562.03	1884.67	454.05	4446.70	1294.83	3233.31
	6. Other Comprehensive Income (OCij
	Items that will not be reclassified to Profit & Loss	(53. 79)	90.54	(91.91)	36.75	(82.43)	(217.25)
	Tax Expense	-		2.04	-
	Tax Credit Entitlements			(2.04)	-
	Income Tax - Earlier period			(37.03)	-	(37.03)	(37.03)
	Total Other Comprehensive Income (Net of Tax)	(53.79)	90.54	(128.94)	36.75	(119.46)	(254.28)
7.	Total Comprehensive Income	2508.24	1975.21	325.11	4483.45	1175.37	2979.03
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				-		21728.83
	10. Earning Per Share (in Rs.)
	Basic & Diluted	0.57	0.42	0.10	0.99	0.29	0.72

Notes:

TThe above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 9, 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.

3. Othe1 expenses for the current quarter and half year ending September 30, 2020, include a sum ofRs.1283.51 lakh, as one time debit towards interest and other charges in respect of 47,29,541 Equity shares surrendered for canceJlation, pursuant to Hon'ble National Company Law Tribunal (NCLT), Chandi(',ctrh order dated 12.03.2018.

</unauditedll<>

5.	Statement of Assets and Liabilities -			(Rs. In Lakhs)
	Particulars		<unauditedll< td="">	<audited< td=""></audited<>	<audited< td=""></audited<>
			As at
			30.09.2020	31.03.2020
	A ASSETS
I.	Non Current Assets
	(a) Property, Plant and Equipment		12497.59	13243.52
	(b) Other Intangible Assets		89.91	240.56
	Financial Assets :		-
	(a) lnvesfinents - -		11877.98	11877.98
	(b) Loans		6.80	6.80
	Other Non-Current Assets	Non- Current Assets	6036.30 30508.58	6003.75 31372.61
	II. Current Assets
	Inventories		12132.10	13247.26
	Financial Assets :
	(a) Investments
	(b) Trade receivables		18704.66	12140.53
	(c) Cash and cash equivalents		2894.72	1279.11
	(d) Bank Balance other than Cash and Cash Equivalents		3733.42	2524.13
	(e) Loans		35.02	35.02
	(f) Others Financial Assets Other Current Assets			56.37
		Current Assets	8654. 71 46154.63	5543.56 34825.98
	Total		76663.21	66198.59
	B EQUITY AND LIABILITIES
!.	EQUITY
	(a) Equity Share Capital		8995.86	8995.86
	(b) Other Equity		26212.28	21728.83
		Equity	35208.14	30724.69
	11. Non - Current Liabilities Financial Liabilities :
	(a) Borrowings		69.47	92.46
	(b) Other Financial Liabilities		205.19	205.19
	Provisions		2286.55	2238.01
		Non- Current Liabilties	2561.21	2535.66
	III. Current Liabilities
	Financial Liabilities :
	(a) Borrowings		1523.13	1135.95
	(b) Trade Payables		18569.18	15838.01
	(c) Other Financial Liabilities (d) Other current liablilities		17587.84 1008.60	14987.39 751.50
	Provisions		205.11	225.39
		Current Liabilties	38893.86	32938.24
	Total		~'l.21	66198.59

Statement of Cash Flows for the Period Ended 30th September, 2020 6.		(Rs. In Lakhs
		Unaudited
Particulars	Half Year Ended
	30.09.2020	30.09.2019
A. CASH FLOWS FROM OPERA TING ACTfVITIES:
Profit before Tax	4446.70	1809.70
Adjustments for :
Depreciation & Amortisation	1462.52	1853.19
-- Provision for Employee benefit	36.75	(82.43)
- Einance CosL -- - - __	- -- _5-7.10 - - - - - ~-- -	- --80.11 ~------ -
Operating Profit before changes in Current Assets and Liabilities	6003.67	3661.17
Changes in Current Assets and Liabilities - Trade Receivables	(6,564.13)	(3,347.18)
Loans, Bank balance other than cash & Cash equivalent and other Current Assets	(4264.07)	(3975.44)
Inventories	1115.16	(818.03)
Current Liabilities	5568.46	4197.55
Cash generated from Operations	1859.09	(281.93)
Tax Expense (Net)	0.00	(551.90)
NET CASH GENERATED FROM OPERATING ACTfVITIES	1859.09	(833.83)
B. CASH FLOWS FROM INVESTING ACTfVITIES:
Purchase of Property, Plant & Equipments	(541.02)	(970.99)
Purchase/ Addition oflntangibles (Net)	(25.44)	(1.39)
Proceeds from Sale of Property, Plant & Equipments	0.50	-
Sales/(Purchase) of Investments (Net)		(105.25)
Investment in Other Non-Current Assets	(32.55)	552.08
NET CASH USED IN INVESTING ACTfVITIES	(598.51)	(525.55)
C. CASH FLOWS FROM FINANCING ACTfVITIES:
Finance Cost	(57.70)	(80.71)
Proceeds (Repayments) of Long Term Borrowings (Net)	(22.99)	(27.14)
Proceeds (Repayments) of Short Term Borrowings (Net)	387.18	528.01
Change in Other Financial Liabilities & Provisions (Non-Current)	48.54	226.10
NET CASH USED IN FINANCING ACTfVITIES	355.03	646.26
Net Increase/(Decrcase) in Cash and Cash Equivalents (A+B+C)	1,615.61	(713.12)
Cash and Cash Equivalents as at Begining of the period	1279.11	935.82
Cash and Cash Equivalents as at End of the period	2894.72	222.70
Bank Balances other than Cash and C1sh Equivalents	3733.42	2402.81

Place : New Delhi Date: November 9, 2020

0< ••d o•;;;;.=d ofDIT<dU•

~ ~ (Sushi! Sun) ~I Chairman & Managing Director

Satinder Goyal & Co. Chartered Accountants

Limited ~~vi~w Report -- Standalone Financial Results

Review Report to The Board of Directors Morepen Labor:oltories Limited

• 1. 'Ne have reviewed the accompanying statement of standalone unaudited financial results of Morepen Laboratories Limited (the "Company") for the quarter and half year ending September 3G, 2020 (the: .. Statement"), being submitted by th~ _Company pursuant to tile requirements of Regulation 33 of the SEBI (Listing Obligations and Disclmure Requirements) Regulations, 2015, as arnencled (the "Listing Regulm~ons").
• 1. This Statemern, which is the responsibility of the Company's mamigz>rnent and approved by the: Company's Bc•:trd of Directors, hus been urepared in tccordance with the recognition anJ measurement principles laid dc'Nn in Indian Accouniing Standard 34, (Ind AS 34) ·' 'Interim Financial Repcrting'' prescribed under Section 133 of the Compani~s Act, 2013 as amended, read with relevant rules iss:1ed thereunder and other accounting principles generally accepted in India. Our responsibility is to express a' conclLision on the St::itement based on our revi ew.
• 1. We conducted orn review of the Statement in accordance with the Standard on Review Engagements (SIZE) ·2410 "Review of Interini. Financial ht.formation Performed by the Independent A1,.1ditor of the Entity'' issned by the Institute of Chartered Accountants of India. This standard requires that we pla.!T 2nd perform the review to obtain moderate assurance as to whether the Statement is free of m3tcrial misstatement. A revic.\' of interim financial information consists · of making inquiries, primarily of persons responsible for financial :md accounting matters. and applying anal) tisal and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standard:.; on Auditing and consequently does not P.!table us to obtain assunrnce rhat Wt~ would become aware of <~11 significant matters that mig 1t be identified in an auciit. Accordingly, we do not expres'.;an m1dit opinion.

1. Based on our review conducted as 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 aforesaid Indian Accounting Standards ("Ind AS") 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 Listing Regulations, including the manner in which it is to be disclosed , or that it contains any material misstatement.

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

CA S.K Goyal (Partner) Membership No.: 084613 UDIN: 200846 l 3AAAAA T6526

Date : 9th November 2020 Place : New Delhi

Morepen Laboratories Limited CIN- L24231HP19S4PLC006028 Statement of Unaudited Financial Results- Consolidated For the Quarter & Half Year Ended 30th September, 2020

							(Rs. In Lakhs)
			Quarter Ended		Half Year Ended		Year Ended
		30.09.2020	30.06.2020	30.09.2019	30.09.2020	30.09.2019	31.03.2020
	Particulars		(Unaudited)		(lJ nauditedl		(Audited)
	I. Revenue
	Revenue from operations (Net)	33639.51	25764.24	21342.71	59403.75	41640.83	85306.69
	Other Income	373.34	132.88	281.42	506.22	309.56	948.35
	Total Revenue	34012.85	25897.12	21624.13	59909.97	41950.39	86255.04
2.	Expenditure		--		--	--- --	---
	- - - a)- Cost of"Material Consumed	- 17991.96	- I3315.30	- - - 10633.69	- - 31307.26	20993.29	- - 41321.87
	b) Purchase of stock - in - trade	5247.86	4134.15	4335.07	9382.01	7427.22	15442.69
	c) Changes in inventories of Finished goods, Work -in- progress and Stock-in-trade	(543.83)	(171.71)	(977.98)	(715.54)	(10I5.78)	(1022. 71)
	d) Employee Benefits Expenses	3241.31	2947.95	2731.31	6189.26	5151.78	10990.60
	e) Finance Cost	28.96	28.77	39.09	57.73	81.86	198.45
	f) Depreciation and Amortization	767.88	805.76	824.0I	1573.64	1974.31	3690.60
	g) Power and Fuel	320.94	241.55	341.13	562.49	645.17	1255.79
	h) Travelling Expenses	197.73	244.46	370.01	442.19	676.22	1383.I7
	i) Selling and Distribution Expenses	1410.08	1065.81	931.48	2475.89	1911.20	3857.69
	j) Other Expenses	2597.98	1329.58	1472.42	3927.56	2413.19	5226.13
	Total Expenditure	31260.87	23941.62	20700.23	55202.49	40258.46	82344.28
3.	Profit before Tax (1-2)	2751.98	1955.50	923.90	4707.48	1691.93	3910.76
4.	Tax Expense
	Tax	(35.08)	(18.79)	183.03	(53.87)	(2.95)	(37.40)
	Tax Credit Entitlements			(I83.85)			-
	Income Tax - Earlier period			(5I4.87)		(5I4.87'	(515.47)
	Total Tax	(35.08)	(18.79)	(515.69)	(53.87)	(517.82)	(552.87)
5.	Net Profit for the period (3-4)	2716.90	1936.71	408.21	4653.61	1174.11	3357.89
6.	Share of Minority Interest in (Profit)/ Loss	!0.02'	!0.02)	!O.On	!0.04)	!0.03l	(0.03)
7.	Net Profit after after Minority Interest	2716.92	1936.73	408.22	4653.65	1174.14	3357.92
8.	Other Comprehensive Income (OCI)
	Items that will not be reclassified to Profit & Loss	(52.06)	94.69	(93.85)	42.63	(88.22)	(226.35)
	Tax Expense	(0.44)	(1.04)	2.04	(1.48)		2.29
	Tax Credit Entitlements			(2.04)	-
	Income Tax - Earlier period			(37.03)	-	(37.03)	(37.03'
	Total Other Comprehensive Income (Net of Tax)	(52.50)	93.65	(130.88)	41.15	(125.25)	(261.09)
9.	Total Comprehensive Income	2664.42	2030.38	277.34	4694.80	1048.89	3096.83
	JO. Paid-up Equity Share Capital of Face Value ofRs.2/- each	8995.86	8995.86	8995.86	8995.86	8995.86	8995.86
	11. Rese1ves excluding Revaluation Reserve						19410.25
	12. Earning Per Share (in Rs.)
Notes:	Basic & Diluted	0.60	0.43	0.09	1.03	0.26	0.75

I. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 9, 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.

3. Other expenses for the current quarter and half year ending September 30, 2020, include a sum of Rs. I283.51 lakh, as one time debit towards interest and other charges in respect of 4 7 ,29 ,541 Equity shares surrendered for cancellation, pursuant to Hon'ble National Company Law Tribunal (NCL T), Chandigarh order dated 12.03.2018. - /,--.. Q Ll .,... ........... ⁶ <>.'-1 ~~

5.	Statement of Assets and Liabilities -			(Rs. In Lakhs)
			(Unaudited)	(Audited)
	Particulars		As at
			30.09.2020	31.03.2020
$\mathsf{A}$	ASSETS
I.	Non Current Assets (a) Property, Plant and Equipment		12652.74	13408.94
	(b) Goodwill		7,454.94	7447.42
	(c) Other Intangible Assets		532.42	780.72
	Financial Assets:
	Investment		108.50	108.50
	Loans		6.80	6.80
	Other Non-Current Assets		8293.54	7376.36
		Non- Current Assets	29048.94	29128.74
П.	Current Assets Inventories		13004.35	13847.57
	Financial Assets:
	(a) Investments
	(b) Trade receivables		21103.75	13768.05
	(c) Cash and cash equivalents		3073.72	1363.91
	(d) Bank Balance other than Cash and Cash Equivalents		3733.42	2524.13
	$(e)$ Loans		35.02	35.02
	(f) Others		0.07	56.37
	Other Current Assets	Current Assets	8668.86 49619.19	5622.60 37217.66
	Total		78668.13	66346.39
$\mathbf B$	EQUITY AND LIABILITIES
Ι.	Equity
	(a) Equity Share Capital		8995.86	8995.86
	(b) Other Equity	Equity	24105.05 33100.91	19410.25 28406.11
	II. Minority Interest		(46.38)	(46.34)
	III. Non - Current Liabilities
	Financial Liabilities :
	(a) Borrowings		69.47	92.46
	(b) Other Financial Liabilities Provisions		354.96	367.45
		Non- Current Liabilties	3293.98 3718.41	2382.35 2842.26
	IV. Current Liabilities
	Financial Liabilities :
	(a) Borrowings		1523.13	1135.95
	(b) Trade Payables		20608.14	17230.43
	(c) Other Financial Liabilities (d) Other current liablilities		17882.99 1578.09	15302.68 1203.33
	Provisions		302.84	271.97
		Current Liabilties	41895.19	35144.36
	Total		78668.13	66346.39

PEN

6.	Statement of Cash Flows for the Period Ended 30th Se tember 2020		. In Lakhs
	Particulars		(Unaudited)
		As at
		30.09.2020	30.09.2019
	A. CASH FLOWS FROM OPERA TING ACTIVITIES :
	Profit before Tax	4707.48	1691.93
	Adjustments for:
	Depreciation & Amortisation	1573.64	1974.31
	(Profit)/Loss on Sale of Property, Plant & Equipments
	Provision for Employee benefit	42.63	(88.22)
	Finance Cost	57.73	81.86
	Minority Interest	0.04	0.03
	Operating Profit before changes in Current Assets and Liabilities	6381.44	3659.85
	Changes in Current Assets and Liabilities •
	Trade Receivables	(7,335.70)
	Loans, Bank balance ot~e~an cash & Cash equivalent and othe1: ~rrent Assets Inventories	(4,199.24) - - 843 22
	Current Liabilities	6363.65
	Cash generated from Operations	2,053.37
	Tax Expense (Net)	55.35
	NET CASH GENERATED FROM OPERATING ACTIVITIES	1 998.02
	B. CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchase of Property, Plant & Equipments	(551.51)	(972.87)
	Purchase/ Addition oflntangibles (Net)	(25.44)	(1.39)
	Proceeds from Sale of Property, Plant & Equipments	0.50
	Sales/(Purchase) of Investments (Net)	0.00	(105.25)
	Investment in Other Non-Current Assets	917.18	315.67
	NET CASH USED IN INVESTING ACTIVITIES	(1493.63)	(1395.18)
	c. CASH FLOWS FROM FINANCING ACTIVITIES:
	Finance Cost	(57.73)	(81.86)
	Proceeds (Repayments) of Long Term Borrowings (Net)	(22.99)	(27.14)
	Proceeds (Repayments) of Short Term Borrowings (Net)	387.18	528.01
	Change in Other Financial Liabilities & Provisions (Non-Current)	899.14	1127.93
	NET CASH USED IN FINANCING ACTIVITIES	1205.60	1546.94
	Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) Cash and Cash Equivalents as at Begining of the period		(641.23) 959.51
	Cash and Cash Equivalents as at End of the period		318.28
	Bank Balances other than Cash and Cash E uivalents		2402.81
	Place : New Delhi
	Date : November 9 2020

Satinder Goyal & Co. Chartered Accountants

Limited Review Report - Consolidated Financial Results

Review Report to The Beard 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 and half year ending September 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").
• $\label{eq:2.1} \mathcal{L}^{(n,k)} = \mathcal{L} \cdot \mathcal{L} \cdot \mathcal{L} \cdot \mathcal{L} \cdot \mathcal{L} \cdot \mathcal{L} \cdot \mathcal{L}$ $\label{eq:12} \mathcal{A}^{\mathcal{G}}{\mathcal{G}} = -\mathbb{E}{\mathcal{E}{\mathcal{G}}} = -\mathbb{E}{\mathcal{F}^{\mathcal{G}}{\mathcal{G}}}$ $\mathcal{F}=\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{F}^{\mathcal{F}}{\mathcal{$

$\lambda$ .

.

• 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.
• 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.

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.

• 1. This Statement includes the results of the following Group entities:
• Morepen Laboratories Limited (the "Parent")
• Dr. Morepen Limited (Indian Subsidiary)
• Total Care Limited (Indian Subsidiary)
• Morepen Inc. (Foreign Subsidiary)
• 1. The consolidated unaudited financial results include the interim financial results of Morepen Inc., a foreign subsidiary which have not been reviewed/audited by its auditors, whose interim financial results reflect total comprehensive Income of Rs. 19 .14 lakhs (comprising of total revenue of Rs. 48 .11 lakhs and total expenses of Rs. 28.97 lakhs) and Rs. 38.38 lakhs (comprising of total revenue of Rs. 78.67 lakhs and total expenses of Rs. 40.29 lakhs) for the quarter and half year ended September 30, 2020 respectively. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.

We have also not reviewed the financial results of above stated foreign subsidiary considered in the preparation of the Statement. These financial results have been furnished to us by the management.

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

1. Based on our review conducted as 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 aforesaid Indian Accounting Standards ("Ind AS") 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 Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

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

CA S.K Goyal (Partner) Membership No. : 084613 UDIN : 200846 l 3AAAAAU5797

Date : 9th November 2020 Place : New Delhi