February 14,2019

The Manager, Listing Department The National Stock Exchange ofIndia Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 NSE Symbol: P ANACEABIO

BSE Limited Corporate Relationship Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 BSE Scrip Code: 531349

Reg.: Unaudited Financial Results (Provisional) along with Limited Review Report for the quarter and nine months ended December 31, 2018

Dear Sir,

In continuation to our letter dated February OS, 2019 and pursuant to Regulations 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"), we would like to inform you that the Board of Directors of the Company has, at its meeting held today, i.e. February 14, 2019, inter-alia, considered and approved the Unaudited Financial Results (Provisional) of the Company (which have been subjected to Limited Review by the Statutory Auditors) for the quarter and nine months ended December 31,2018. The same were also reviewed by the Audit Committee in its meeting held on February 14, 2019. A copy of the same along with the Limited Review Report is enclosed herewith as Annexure - A.

Further, pursuant to Regulation 46(2)(1) of SEBI LODR Regulations, the abovesaid financial results are being uploaded on the website of the Company i.e. www.panacea-biotec.com.

Further, pursuant to Regulation 47(1)(b) of SEBI (LODR) Regulations, the Extract of Statement of Unaudited Financial Results (Provisional) for the quarter and nine months ended December 31, 2018 in the Format as prescribed in Annexure I of SEBI Circular No. CIRlCFD/FACI62/2016 dated 05.07.2016 is being sent for publication in newspapers.

The meeting of the Board of Directors commenced at 11:30 A.M. and concluded at 04:00 P.M.

We request you to kindly bring the above information to the notice of your members.

Thanking you,

Sincerely yours, for Panacea Biotec Ltd.

Encl: As above.

81 Extn. /G3, Mohan Co-op Indl. Estate, Mathura Road, New Delhi -110044 Email: [email protected] Phone: 0.1.0. +91-11-4167 9015 Fax: +91-11-4167 9070

Panacea Biotec Ltd.

CIN:L33117PB1984PLC022350 Registered Office: Ambala-Chandigarh Highway, Lalru - 140 501, Punjab, India. Ph.: +91-1762-505900, Fax: +91-1762-505906. e-mail: [email protected] website: www.panaceabiotec.com

(Rs in Lakh except per share)

naceaBlotec1r.,dVilC.:t,cr. ,.c' (if,;., $4A	Extract of Standalone Financial Results (Unaudited)for the Quarter and Nine Months ended December 31, 2018
	Quarter ended			Nine Months ended	Year Ended
Particulars	December 31,	September 30,	December 31,	December 31,	December 31,	March 31,
	2018	2018	2017	2018	2017	2018
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Total income from operations	11,385	11,858	15,216	32,754	41,237	57,993
Net Profit / (Loss) for the period (before tax, exceptional and/or extraordinary item)	(2,036)	(4,733)	(739)	(12,252)	(5,591)	(6,124)
Net Profit / (Loss) for the period before tax (after exceptional and/or extraordinary item)	(2,036)	(9,483)	(739)	(14,936)	(5,591)	(6,124)
Net Profit / (Loss) for the period after tax (after exceptional and/or extraordinary item)	(2,302)	(9,749)	(971)	(15,734)	(6,332)	(7,188)
Total comprehensive income for the period (comprising of profit/(Ioss) for the period
(after tax) and other comprehensive income (after tax))	(2,337)	(9,785)	(971)	{15,840)	(6,332)	(7,330)
Equity Share Capital (face value of Re.1 per share)	613	613	613	613	613	613
Earning per Share (of Re. 1 each (annualised, other than Quarter)
Basic:	(3.76)	(15.92)	(1.59)	(25.69)	(10.34)	(11.74)
Diluted:	(3.76)	(15.92)	(1.59)	(25.69)	(10.34)	(11.74)

Notes:

1 The above is an extract of the detailed format of Quarterly and Nine Months Financial Results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the Quarterly and Nine Months Financial Results is available on the Stock Exchanges websites, NSE- http://www.nseindia.com. BSEhttp://www.bseindia.com and is also available on the Company's website, http://www.panaceabiotec.com.

2 The above financial results were reviewed by the Audit Committee of the Board and approved by the Board of Directors at their respective meetings held on February 14, 2019. Further, the limited review of Financial Results for the Quarter and Nine Months ended December 31, 2018, in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been carried out by the statutory auditors.

Place: New Delhi

Date: February 14, 2019 in

Managing Director

Panacea Biotec Limited

Regd. Office: Ambala-Chandigarh Highway, Lalru- 140501, Punjab

CIN: L33117PB1984PLC022350 - Ph. No. 91-11-41679000, Fax: 91-11-41679070,Website: http://www.panacea-biotec.com, E-mail: [email protected]

~nacea			Statement of Standalone Unaudited Financial Resultsfor the Quarter and Nine Months ended December 31, 2018
	8iotecIVA:-{("" I sflt(lf9rt <z-f' (if#<="" th="">(Rs. in Lakh)</z-f'>						(Rs. in Lakh)
S.No	Particulars	Quarter ended			Nine Months ended	Year ended
		December 31,2018	September 30,2018	December 31,2017	December 31,2018	December 31,2017	March 31,2018
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
I	Income:a) Revenue from operations
	b) Other income	11,385412	11,858	15,216	32,754	41,237	57,993
	Total Income	11,797	33012,188	18915,405	1,075	496	1,762
II	Expenditure:				33,829	41,733	59,755
	a) Cost of raw and packing materials consumed	3,343	1,906	4,810	8,383	12,500	17,941
	b) Purchase of traded goods	289	199	681	653	1,636	1,835
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(456)	1,980	(479)	1,366	(321)	(76)
	d) Excise duty	-	-	-		337	337
	e) Employee benefit expenses	3,216	3,763	3,507	10,724	9,771	13,674
	f) Depreciation and amortisation expenses	1,356	1,360	1,449	4,085	4,330	5,705
	g) Finance cost	2,823	2,676	2,510	8,111	7,751	10,323
	h) Other expenditure (net)	3,262	5,037	3,666	12,759	11,320	16,140
	Total expenses	13,833	16,921	16,144	46,081	47,324	65,879
III	Profit/(Loss) before exceptional and extra-ordinary items and tax (I-II)	(2,036)	(4,733)	(739)	(12,252)	(5,591)	(6,124)
IV	Exceptional items (refer note 4)	-	,(4,750)	-	(2,684)	-	-
V	Profit/(Loss) before Tax (III-IV)	(2,036)	(9,483)	(739)	(14,936)	(5,591)	(6,124)
VI	Tax expense:
	a) Current tax	-	-	-	-	-	-
	b) Deferred tax	266	266	232	798	741	1,064
	Total tax expenses	266	266	232	798	741	1,064
VII	Net Profit/(Lossl for the period (V-VI)	(i,302)	(9,749)	(971)	(15,734)	(6,332)	(7,188)
VIIi	Other comprehensive income:
a)	i) Items that will not be reclassified to Profit or Loss	(54)	(55)	-	(163)	-	(218)
	ii) Income tax related to above	19	19	-	57	-	76
b)	i) Items that will be reclassified to Profit or Loss	-	-	-	-	-	-
	ii) Income Tax related to above	-	-	-	-	-	-
IX	Total comprehensive income for the period (VII+VIII)	(2,337)	(9,785)	(971)	(15,840)	(6,332)	(7,330)
X	Paid-up equity share capital	613	613	613	613	613	613
XI	Earning per share for the period (of Re. 1/- each), (not annualised)-
	Basic (in Rs.)	(3.76)	(15.92)	(1.59)	(25.69)		(11.74)
	Diluted (in Rs.)	(3.76)	(15.92)	(1.59)	(25.69)	~o	(11.74)
	--;z:Q1(0~Q				-'""-	P~~;a. I Pan.c •• Bfolec •imNntlDnlnJrHortoflJfr "\1-It,.	t1:)<;)

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Statement of Standalone Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2018
Unaudited Segment-wise Revenue, Results and Capital Employed						(Rs. in lakh)
Particulars	Quarter ended			Nine Months ended		Year ended
		December 31, September 30, December 31,		December 31,	December 31,	March 31,
	2018	2018	2017	2018	2017	2018
	Unaudited	Unaudited	unaudited	Unaudited	Unaudited	Audited
a) Segment revenue
(i) Vaccines	3,028	2,918	4,671	6;879	12,128	18,632
(ii) Formulations	8,357	8,940	9,756	25,874	28,149	38,395
(iii) Research & development	-	-	789	1	960	966
(iv) Unallocated	-	-	-	-	-	-
Sub total	11,385	11,858	15,216	32,754	41,237	57,993
less: Inter segment revenue	-	-	-	-	-	-
Total segment revenue	11,385	11,858	15,216	32,754	41,237-	57,993
	-	-	-	-	-	-
b) Segment results
Profit (+)/Ioss (-) before tax and interest					(179)
(a) Vaccines(b) Formulations	(774)2,803	(1,692)2,367	4782,914	(4,503)7,543	8,896	1,47113,103
(c) Research & development	(764)	(905)	(492)	(3,153)	(2,885)	(4,086)
Sub total	1,265	(230)	2,900	(113)	5,832	10,488
Less: i) Finance cost	2,823	2,676	2,510	8,111	7,751	10,323
ii) Other unallocated expenditure net of unallocated income and exceptional			1,129	6,712	3,672
items	478	6,577				6,289
Total Profit before tax	(2,036)	(9,483)	(739)	(14,936)	(5,591)-	(6,124)
c) Capital employed	-	-	-	-
Segment assets
(i) Vaccines	50,584	51,751	52,948	50,584	52,948	53,118
(ii) Formulations	37,316	38,572	41,219	37,316	41,219	41,894
(iii) Research & development	20!531	20,701	21,101	20,531	21,101	21,084
(iv) Unallocated	50,609	51,283	52,767	50,609	52,767	51,253
Sub total	159,040	162,307	168,035	159,040	168,035	167,349
Segment liability
(i) Vaccines	6,678	7,572	-6,079	6,678	6,079	7,114
(ii) Formulations(iii) Research & development	15,2992,764	17,0703,054	16,561	15,2992,764	16,5612,911	16,5002,573
(iv) Unallocated	111,235	109,481	2,911102,664	111,235	102,664	102,352
-------SubTotal	135,976	137,177	128,2i5	135,976	128,215	128,539
~~<br>Capital employed (Segment assets - segment liabilities)
c?(i) Vaccines1---<		44,179	46,869	43,906	46,869	46,004
0-Cl1(ii) FormulationsQI Panacaa Blelac •	J~~617	21,502	24,658	22,017	24,658	25,394
-{~,. *(iii) Research & development[	17,767	17,647	18,190	17,767	18,190	18,511
~$(iv) Unallocated,~L.	(60,626)	(58,198)	(49,897)	(60,626)	(49,897)	(51,099)
~~lh07Total capital employed;:;,t"' oX	23,064	25,130	39,820	23,064	39,820	38,810

Notes:

1. The above unaudited financial results of Panacea Biotec Limited ('the Company') were reviewed by the Audit Committee of the Board and approved by the Board of Directors at their respective meetings held on February 14, 2019. Further, the limited review of the Financial Results for the Quarter and Nine Months ended December 31, 2018, in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been carried out by the statutory auditors.
1. The financial results have been prepared in accordance with the recognition and measurement principles of applicable Indian Accounting Standards ("IND-AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in section 133 of the Companies Act, 2013. .
1. During the quarter under review, the Company has received WHO pre-qualification for Bivalent Oral Polio Vaccine (Type 1 and 3) from its Vaccine Formulation Facility at Baddi, Himachal Pradesh.
1. During the previous quarter, the Company had settled its dispute with Edelweiss Asset Reconstruction Company Limited ("EARC") as per the terms of CDR scheme. As a result of this settlement with EARC, the Company had booked exceptional loss ofRsA,750 lakh.
1. With respect to the observations of the auditors in their report on the above results:
- a.· Borrowings under Corporate Debt Restructuring: During financial year 2014-15, the Company was sanctioned a Corporate Debt Restructuring ("CDR") scheme under the CDR mechanism of the Reserve Bank of India ("RBI") after attaining super-majority from its lender banks ("CDR Lenders"). The debt obligations, including interest thereon, have been measured, classified and disclosed in these financial statements in accordance with the Master Restructuring Agreement ("MRA") as per CDR scheme, to the extent agreed with the banks. In its meeting held on May 22,2018, the CDR Lenders (other than Indian Overseas Bank) have informed the Company that they are considering the CDR scheme as failed CDR and exit from CDR. Consequently, the CDR Lenders have classified the Company's account as. non-performing asset due to non-compliance with the pending conditions but not due to defaultfor payment of principal! interest as per agreed terms of CDR. Accordingly, management continues to recognize, measure, classify and present its debt obligations as at December 31, 2018 in accordance with the CDR scheme.

During the quarter under review, owing to cash flow constraints, the Company has been unable to repay interest and principal instalments due on borrowings from CDR Lenders. As at December 31~ 2018, interest and principal instalments aggregating to Rs. 5,195 lakhs (March 31, 2018: Rs Nil) remain unpaid towards CDR debts.

Other borrowings: Further, Bank of India had classified the outstanding External Commercial Borrowings ('ECB') amounting USD 25 million as non-performing in view of non-payment of the first installment ofUSD 8.33 million which was due on.September 30, 2017. At the end of quarter under review, two annual instalments ofUSD 8.33 million each (Rs 5,815 lakh each) that were due respectively on September 30,2018 and 2017 and interest ofRs.l,012 Lakh upto December 31,2018 on the entire ECB are overdue.

Based on the management's evaluations and assessments, the Company believes that it will be able to resolve these matters favorably in due course without materially impacting the recognition, measurement, classification and disclosures presented in these financial results for its debt obligations. Accordingly, no other adjustments are considered necessary in the books of accounts at this stage.

b. During the financial year 2007-08, the Company had given an advance ofRs.l,768 lakh pursuant to the agreement with Ilyas & Mustafa Galadari Management Investment & Development (L.L.C.), U.A.E. ("the Developer") for purchase of certain immoveable properties in Dubai. The Developer failed to deliver the said properties to the Company and offered other properties under construction in lieu of the said properties. Owing to continuous delays in completion of construction, the Company has initiated legal recourse and issued a legal notice to the Developer.

During the quarter ended December 31, 2017, with a view to restructure the Company's debt obligations and reduce its interest outlay, the board of directors had approved the assignment of its receivables from the. Developer to its wholly owned subsidiary viz. Radhika Heights Ltd. (RHL) in lieu of adjustment of part of RHL's loan payable by the Company, subject to the applicable provisions of the Foreign Exchange Management Act, 1999 as amended and other applicable laws, if any. The process of assigning the said receivable to RHL is expected to be completed in due course.

In view of ongoing discussions with the Developer and on the basis of the legal advice obtained, the Group believes that it has valid rights to claim the recovery of the advance paid to the Developer, in the form of either a refund or other properties. The management believes that the advance given to the Developer is fully realisable as the market value of the properties under discussion is more than the advance given under the original agreement. Accordingly, no adjustments are considered necessary in the books of accounts.

c. In view of absence of profits during financial years 2013-14 and 2012-13, total remuneration paid to the Managing! Joint Managing and Whole time Directors had exceeded the ceiling prescribed in Section II of Part II of Schedule XIII to the Companies Act, 1956 by Rs.291 lakh for the said years. Further, because of non-compliance to one of the conditions of part II of Section II of Schedule V to the Companies Act, 2013, the remuneration amounting to Rs. 26 lakh paid to a whole time director during the year ended March 31, 2016 and remuneration amounting to Rs. 430 lakh and Rs. 417 lakh paid to six directors (Managing! Joint Managing and Whole time Directors) during the year ended March 31, 2017 and 2018 respectively required approval of the Central Government and the Company had filed the necessary applications in this regard. However, the Company's applications for approval of the aforesaid excess remuneration were not approved by the Central Government and consequently, the Company was required to recover the excess amount thus paid for the said years unless the recovery thereof is waived by the Central Government, on applications submitted by the Company. The Company has also accounted for managerial remuneration amounting to Rs. 274lakh during the Nine Months ended December 31, 2018 for which the Company required prior approval of the Central Government. The Company submitted new applications to the Central Government for waiver of recovery of excess remuneration paid in respect of aforesaid periods. However, in view of the recent amendments in the provisions of Section 197 of the Companies Act, 2013 effective from September 12, 2018, whereby the powers of Central Government for approval of payment of managerial remuneration in excess of limits/ waiver of recovery of managerial remuneration recoverable, etc. have been transferred to the shareholders / lenders of the Company. Accordingly, the said applications stand abated at the Central Government. The Company has accordingly decided to obtain the necessary approval from its shareholders/ lenders in due course in compliance with the aforesaid amended provisions of the Companies Act, 2013. Pending such <I1N, ~~~ Company has recorded an amount of Rs. 1,438 lakh as on December 31, 2018 (March 31, 2018: 1,164 lakh) as recover from ~~ directors towards such excess remuneration paid. The Company is confident of obtaining necessary appr *P8Mo9m.c ~~* shareholders/lenders. .,.. -;. '''''''''''''''''''"'II/j< ;. / {2 (9 /~~i

I ~ - Delhi-~~/

""d. For the Nine-Months ended December 31, 2018, the Company has incurred a loss of Rs. 15,7341akh (March 31, 2018: Loss ofRs. 7,188 lakh). The continuous losses have adversely affected the cash flows of the Company. These conditions, read with note 4 & 5(a) above, indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The Company has undertaken several measures to mitigate this risk, which include scaling up revenues of vaccine SBU, initiating supply of oral polio vaccine to different institutional buyers from Baddi facility, entering into strategic alliances with domestic as well as foreign collaborators for supply of products, launch of new products in IndiaIROW CountrieslUSAIEU markets etc. expediting development of new products and monetization of non-core assets, raising of funds, etc. Based on above measures and continuous efforts to improve the business performance and-as explained in note 5(a) above, the management believes that it would be able to generate sustainable cash flow, recover and recoup the erosion in its net worth through profitable operations, discharge its obligations as they fall due and continue as a going concern.
1. The necessary certificate/ report in respect of the above results in terms of requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been placed before the Board of Directors.
1. Previous period amounts have been regrouped! reclassified in compliance with IND-AS to make them comparable with those of current period! year.
1. The above results are also available on the Company's website http://www.panaceabiotec.com

Place: New Delhi Date: February 14,2019

For and on behalf of the Board of Directors

Dr. Rajesh Jain Managing Director

Panacea Biotec Limited Regd. Office: Ambala-Chandigarh Highway, Lalru-140501, Punjab CIN: L33117PB1984PLC022350, Ph. No. +91-11-41679000, Fax: +91-11-41679070 Website: http://www.panaceabiotec.com. E-mail: [email protected]

Walker Chandiok &'Co LLP

Walker Chandiok & Co llP (Formerly Walker, Chandiok & Co) 21 st Floor, DLF Square Jacaranda Marg, DLF Phase II Gurgaon 122002 India

T +91 1244628000 F +91 124462 s001

Independent Auditor's Review Report on Quarterly Financial Results and Year to Date 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 Panacea Biotec Limited

1. We have reviewed the accompanying statement of unaudited financial results ('Statement,) of Panacea Biotec Limited ('the Company') for the quarter ended 31 December 2018 and the year to date results for the period 1 April 2018 to 31 December 2018, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBr (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Statement is the responsibility of the Company's Management and has been approved by the Board of Directors, Our responsibility is to issue a report on the Statement based on ou.r .review.
1. We conducted our review 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 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. As explained in Note 5(a) to the Statement, the Company's total borrowings as at 31 December 2018 includes balances payable to various lenders amounting to Rs. 78,902 lakhs which are currently recorded based on revised terms agreed with the said lenders as part of the Corporate Debt Restructuring ("CDR") scheme, and are reconciled with the lenders. During the quarter ended 30 June 2018, the lenders had informed the Company that they are considering CDR package as failed CDR and exit from CDR. While there are further discussions, as described in the said note and paragraph 5 below, pending conclusion of the revised resolution plan, we are unable to comment upon the impact, if any, on the carrying values of borrowings and its related classification as at 31 December 2018 and the interest expense (including penal interest, if any) for the period then ended This matter was also modified in our audit report on the financial statements for the year ended 31 March 2018.
1. Based on our review conducted as above, except for the possible effects of the matter described in the previous paragraph, nothing has come to out attention that causes us to believe that the accompanying Statement prepared in accordance with applicable Indian Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and SEBI Circulars CIR/CFD/CMD/15/2015 dated 30 November 2015 and CIR/CFD/FAC/62/2016 dated 5 July 2016, and other recognised accounting practices and policies has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Chartered Accountants Waller ChaOOiok & Co LLP is rellisle"" with limited ~ with identifICation ...-nbor MC2085 III1d its registered ollie. at l"'l CannaoghtCirtus, NewOeh,lHJOO1,_