AI assistant
SMS Pharmaceuticals Ltd Interim / Quarterly Report 2020
62302_rns_2020-02-12_8db2f524-8a92-4fdc-bc5b-5bb9c67a4d3f.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Registered & Corporate Office : Piol No. 72, H. No. 8-2-334/3 & 4, Road No.5, Opp. SBI Execulive Enclave, Banjara Hills, Hyderabad - 500 034, Telangana, INDIA. Tel: +91-40-2525 9999, Fax: +91-40-2525 9889 CIN : L24239TG1987PLC008066 Email: [email protected], www.smspharma.com
Date: 12th February, 2020
To , The Manager, Corporate Filings Department, BSE Limited, Phiroze J eejeebhoy Towers, Dalal Street, Mumbai- 400 001
The Manager, Listing Compliance Department, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. Cjl, G Block, Bandra -Kurla Complex, Bandra (E), Mumbai - 400 05 1.
Security Code: 532815
Symbol: SMSPHARMA
Sub: Unaudited financial results (Standalon e and Consolidated) for the quarter and nine months ended 31st December, 2019.
Ref: Regula tion 33 of the SEBI (Listing Obliga tions and Disclosu re Requirements), Regulations, 2015.
Further to our intimation dated 3'" February, 2020, we would like to inform that the Board of Directors of the Company at its meeting h eld on 12th February, 2020 h as, inter alia, approved the Unaudited Financial Results for the quarter and nine months ended 31 st December, 2019.
In terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, we enclose h erewith the following:
-
Unaudited Standalone Financial Results for the quarter and nine months ended 3 1st December, 2019 along with Limited Review Report of the Statutory Auditors thereon.
-
Unaudited Consolidated Financial Results for the quarter and nine months ended 31" December, 2019 along with Limited Review Report of the Statutory Auditors thereon.
The meeting commenced at 11.30 AM and concluded at 16.10 PM
This is for your informa tion and records.
Yours faithfully, For SMS Ph armaceuticals Limited
~ any Secretary
vsComp
SMS PHARMACEUTICALS LIMITED
(CIN : L24239TG1987PLC008066)
Regd. Office: Plot No.72, H.No.8-2-334/3&4, Road No.5, Opp.SBI Executive Enclave, Banjara Hills, Hyderabad-500 034, Telangana, India Tel: +91-40-2525 9999, Fax :+91-40-2525 9889; Email: [email protected]
Statement of Standalone Un-Audited Financial Results for the Quarter and Nine Months Ended 31st December, 2019
| Particulars | Quarter Ended4- | Nine Months ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| S.No | 31.12.2019 | 3009.2019 31 | .12.21 | |||||||
| (Unaudited) (Unaudited (Unaudi | ||||||||||
| Revenue From Operations | 8,044.83 | 11,789.58 | I | I | I46,491.08 | |||||
| 10,125.40 | ,548.0131 | 36,120.11 | ||||||||
| 2 | Other Income | 79.22 | 58.10 | 59.33 | 202.57 | 244.07 | 340.31 | |||
| 3 | Total Revenue | |||||||||
| 4 | Expenses | |||||||||
| (a) Cost of Materials Consumed | 3,394.98 | 7,876.35 | 4,708.43 | 19,804.48 | 23,019.79 | 30,719.13 | ||||
| (b) Changes in Inventories | 669.97 | (500.11) | 1,056.43 | (1,063.21) | (515.43) | (1,448.28) | ||||
| (c) Manufacturing Expenses | 717.52 | 945.08 | 670.63 | 2,494.90 | 2,695.13 | 3,484.18 | ||||
| (d) Employee Benefits Expense | 986.96 | 960.89 | 909.62 | 2,927.51 | 2,672.41 | 3,558.67 | ||||
| (e) Finance Cost | 293.00 | 299.28 | 272.15 | 933.80 | 869.17 | 1,187.34 | ||||
| (I) Depreciation and Amortization Expense | 537.57 | 538.50 | 482.60 | 1,606.31 | 1,439.85 | 1,927.29 | ||||
| (g) Other Expenses | 274.18 | 285.56 | 220.93 | 834.27 | 785.58 | 1,167.63 | ||||
| Expenses -(a to f) | ||||||||||
| 5 | Profit before Exceptional and Extraordinary Items and Tax (3-4) | |||||||||
| 6 | Exceptional items | |||||||||
| 7 | Profit before Extraordinary Items and Tax (5-6) | 1,249.88 | 1,442.13 | 1,863.94 | 4,212.52 | 5,397.68 I | 6,235.43 | |||
| 8 | Extraordinary Items | |||||||||
| 9 | Profit before Tax (7-8) | 1,249.88 | 1,442.13 | 1,863.94 | 4,212.52 | 5,397.68 I | 6,235.43 | |||
| 10 | Tax Expenses | |||||||||
| 290.73 | 320.00 | 450.00 | 940.73 | 1,333.36 | ||||||
| 627.67 | 756.72 | |||||||||
| 11 INet Pro | ||||||||||
| 12 Other Comprehensive Income (OCI): | ||||||||||
| that will not be reclassified to profit or Loss: | ||||||||||
| on Items that will not be reclassified to profit or Loss: | ||||||||||
| 13 ITotal comprehensive Income for the period (11+12) | ||||||||||
| 14 I Earning Per Equity Share | 0.89 I | 1.13 I | 1.44 I | 3.12 I | 4.12 I | 4.90 | ||||
| (of Re.11 each) (not annualised) | ||||||||||
| (a) Basic | ||||||||||
| (b) Diluted | ||||||||||
| 15 I Paid-up equity share capital (Face Value of Re.1/-each) | 846.521 | 52846. | 521846.1 | 52846.1 | 52846.1 | 846.52 | ||||
| 16 | Reserves excluding Revaluatiqn Reserves as per balance sheet of previous | 33,145.84 | ||||||||
| year | ||||||||||
- Notes:
- 1 The above standalone Financial Results have been reviewed and recommended by the Audit Committee on 12th February, 2020 and have been approved by the Board of Directors at its meeting held on 12th February, 2020.
- 2 Results for the quarter ended 31 st December, 2019 were subjected to 'Limited Review' by the Auditors and expressed un modified audit opinion thereon.
- 3 The main reasons for decrease in revenues during the current quarter as compared to previous quarter as well as corresponding period year to year is due to decrease in offtake of Anti-Retroviral drugs which is mainly, delay in bidding process by the customer under CMO. However, the company is more focusing to manufacture & sell . other new own molecules developed by its R&D and penetrating into overseas markets to increase the revenues as well as margins.
- 4 The above results are in accordance with the companies (Indian Accounting Standards) rules, 2015, (Ind AS) as ammended by Company (Ind AS) (ammendement) Rules, 2016, notified under Section 133 of the Companies Act 2013, read with relavent Rules issued there under and other accounting principals generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- 5 The Government of India, on September 20, 2019, vide the Taxation Laws (Amendment) Ordinance, 2019, inserted a new Section 115BAA of the Income Tax Act 1961 , which provides an option to the Company for paying income tax at concessional rates subject to the provisions/conditions specified in the said Section. The Company has evaluated the impact of this ordinance and tax expenses has been continued to be recognised at existing rate of taxation, as it is more beneficial to the company as a whole.
- 6 The Company is engaged in the manufacturing Active Pharmaceutical Ingredients and their intermediates and the same constitutes a single reportable business segment as per Ind AS1 08.
- 7 The Ministry of Corporate Affairs (MCA), on 30th March, 2019 , notified Ind AS 116 "Leases" as part of the Companies (Indian Accounting Standard) Amendment Rules, 2019. The new Standard is effective for accounting periods beginning on or after 1 st April, 2019. The adoption of the Standard did not have any material impact to the financial results of the Company. ~ (r ""'~ For SMS PhtAace icals Limited
a. Hyderabad ;;
8 Figures of previous period have been regrouped / rearranged wherever necessf!§'
<1l . ~ ~
Place: Hyderabad .s> ,<" P amesh Babu Date: 12-02-2020 Chairman & Managing Director
SURYANARAYANA & SURESH Chartered Accountants
Flat # C2, Millenium House , # 8-2-601/B, Road No . 10, Near Zaheer Nagar Cross Road, Banjara Hills, Hyderabad - 500 034. tr : 040-233867~3 / 23386784 [8] : [email protected]
Independent Auditor's Review Report on the Quarterly and Year to Date 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 SMS Pharmaceuticals Limited
We have reviewed the accompanying statement of unaudited standalone financial results of SMS Pharmaceuticals Limited ("the Company"), for the quarter and nine month period ended 31 " December 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").
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 the 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 genera lly accepted in India. Our responsibility is to express a conclusion on the Statements based on our review.
We conducted our rev iew of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial information performed by Independent Auditor of 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 Statements is free of material misstatement. A review of the interim financial information consists of making inquires primarily of compa nies personnel responsible for financial and accounting mattes, and applying analytical and other review procedures. A review is substa ntially less in scope than an audit cond ucted in accordance with Standards on Auditing specified ul s 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significa nt matters that might be identified in an audit. Accordingly we do not express an audit opinion.
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 Companies Act, 2013 as amended, read with relevant rules issued there under and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of ti,e Listing Regulations, including ti,e manner in which it is to be disclosed, or that it contains any material misstatement.
Place: Hyderabad Date: 12-02-2020
SMS PHARMACEUTICALS LIMITED (CIN : l24239TG1987PlC008066)
Regd. Office: Plot No.72, H.No.8·2·334/3&4, Road No.5, Opp.SBI Executive Enclave, Banjara Hills, Hyderabad·500 034, Telangana, India Tel: +91-40·2525 9999, Fax :+91-40·2525 9889 ; Email: [email protected]
Statement of Consolidated Un·Audited Financial Results for the Quarter and Nine Months Ended 31st December, 2019
| ( Rs. In lakhs | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended | Nine Months ended | Year ended | |||||||
| S.No | Particulars | 31.12.2019 | 30.09.2019 31 | .12.2018 | .12.201931 | .12.201831 | .03.201931 | ||
| I (Unaudited I (Unaudited I (Unaudrted IIUnauditedl I (Unaudited | (Audited) | ||||||||
| 1 | Revenue From Operations | 8,044.83 | ,789.5811 | 10,125.40 | ,548.0131 | 36,120.11 | 46,491.08 | ||
| 2 | Other Income | 79.22 | 58.10 | 59.33 | 202.57 | 244.07 | 340.31 | ||
| 3 | Total Revenue | 8,124.05 | ,847.6811 | 10,184.73 | 31,750.58 | 36,364.18 | 46,831.39 | ||
| 4 | Expenses(a) Cost of Materials Consumed(b) Changes in Inventories(c) Manufacturing Expenses(d) Employee Benefits Expense(e) Finance Cost(f) Depreciation and Amortization Expense(9) Other Expenses | 3,394.98669.97717,52986,96293.00537.57274.18 | 7,876.35(500.11)945.08960.89299.28538.50285.56 | 4,708.431,056.43670.63909.62272.15482.60220.93 | 19,804.48(1,063.21)2,494.902,927.51933.801,606.31834.27 | 23,019.79(515.43)2,695.132,672.41869.171,439.85785.58 | 30,719.13(1 ,448.28)3,484.183,558.671,187.341,927.291,167.63 | ||
| (a to flTotal Expenses - | 6,874.171,249.88 | 10,405.551,442.13 | 8,320.791,863.94 | 27,538.064,212.52 | 30,966.505,397.68 | 40,595.966,235.43 | |||
| 5 | Profit before Exceptional and Extraordinary Items and Tax (3-4) | ||||||||
| 67 | Exceptional itemsProfit before Extraordinary Items and Tax (5-6) | ·1,249.88 | ·1,442.13 | ·1,863.94 | ·4,212.52 | ·5,397.68 | ·6,235.43 | ||
| 8910 | Extraordinary ItemsProfit before Tax (7-8)Tax Expenses | ·1,249.88 | ·1,442.13 | ·1,863.94 | ·4,212.52 | ·5,397.68 | ·6,235.43 | ||
| (1) Current Tax (MAT)(2) Oelerred Tax | 290.73209,11 | 320.00167.31 | 450.00194.56 | 940.73627.67 | 1,250.00.05661 | 1,333.36756.72 | |||
| 111213 | Net Prolitt (loss) lor the Period (9·10)Share of profit I (loss) of associatesMinority Interest | 750,0411.70· | 954,8233.63· | 1,219.38(277.62)· | 2,644.12(126.00)· | 3,486.63(822.20)· | 4,145.35(140.51 )· | ||
| 14 | Net Profit I (Loss) after taxes, minority interest and share of profit /(loss) 01 associates (11+12·13) | 761.74 | 988.45 | 941.76 | 2,518.12 | 2,664.43 | 4,004.84 | ||
| 15 | Other Comprehensive Income/(loss) (DC I):(A) Items that will not be reclassified to statement of Profit & LossRemeasurement Gain/(Loss) of the defined benefit plans16 Share of Other Comprehensive Income in Associates17 Income Tax effect on the above | (3.88)0.53(1 .22 | (3.56)0.61(1.09 | (2.52)0.6410.72' | (10.68)1.6813.30 | (6.47)1.7011 .82 | (12.95)2.1313.97) | ||
| 18 Other Comprehensive Income/(Loss) after tax for the Year (16-17) | 2.13 | (1.86 | 11.17 | 15.70 | 2.95 | 6.85) | |||
| 20 | 19 Total comprehensive Income for the period/year (14+18)Earning Per Equity Share(01 Re.l/ each) (not annualised)(a) Basic(b) Diluted | 759.610.900.90 | 986.581.171.17 | 940.591.111.11 | 2,512.422.972.97 | 2,661.483.153.15 | 3,997.994.734.73 | ||
| 21 | Paid-up equity share capital (Face Value of Re.lI-each) | 846.52 | 846.52 | 846.52 | 846.52 | 846.52 | 846.52 | ||
| 22 | Reserves excluding Revaluation Reserves as per balance sheet of previousaccounting year | 31,345.32 |
Notes:
- The above consolidated Financial Results have been reviewed and recommended by the Audit Committee on 12th February, 2020 and have been approved by the Board of Directors at its meeting held on 12th February, 2020.
- 2 Results for the quarter ended 31st December, 2019 were subjected to 'Limited Review' by the Auditors and expressed un modified audit opinion thereon.
- 3 The main reasons for decrease in revenues during the current quarter as compared to previous quarter as well as corresponding period year to year is due to decrease in offtake of Anti-Retroviral drugs which is mainly, delay in bidding process by the customer under CMO. However, the company is more focusing to manufacture & sell '. other new own molecules developed by its R&D and penetrating into overseas markets to increase the revenues as well as margins.
- 4 The consolidated financial results of the Company have been prepared in accordance with the companies (Indian Accounting Standards) rules, 2015, (Ind AS) as ammended by Company (Ind AS) (ammendement) Rules, 2016, notified under Section 133 of the Companies Act 2013, read with relavent Rules issued there under and other accounting principals generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- 5 The Government of India, on September 20, 2019, vide the Taxation Laws (Amendment) Ordinance, 2019, inserted a new Section 115BAA of the Income Tax Act 1961 , which provides an option to the Company for paying income tax at concessional rates subject to the provisions/conditions specified in the said Section. The Company has evaluated the impact of this ordinance and tax expenses has been continued to be recognised at existing rate of taxation, as it is more beneficial to the company as a whole.
- 6 VKT Pharma Pv1 Ltd is considered as associate of the Company for consolidation in which the Company holds 42.62% in their equity. Accordingly, the results include appropriate share of the company in the results of the said associate.
- 7 Consolidated Financial Statements have been prepared by applying Accounting Standard "Ind AS" 27 "Accounting for Investments in Associates in Consolidated Financial Statements" as applicable under the Companies Act,2013 and applicable rules there under.
- 8 The Company is engaged in the manufacturing Active Pharmaceutical Ingredients and their intermediates and the same constitutes a single reportable business segment as per Ind AS1 08.
- 9 The Ministry of Corporate Affairs (MCA), on 30th March, 2019 , notified Ind AS 116 "Leases" as part of the Companies (Indian Accounting Standard) Amendment Rules, 2019. The new Standard is effective for accounting periods beginning on or after 1 st April, 2019. The adoption of the Standard did not have any material impact to the financial results of the Company. t (!\ace<'l ForSMSPha aeu· alsLimited
- 10 Figures of previous period have been regrouped / rearranged wherever nece . //.:,
QHydera '" bad - Place: Hyderabad ~\ . en P Ramesil Babu Date : 12-02-2020 ~ * ~.::- Chairman & Managing Director
Flat # C2, Millenium House, # 8-2-601/B, Road No. 10, Near Zaheer Nagar Cross Road, Banjara Hills, Hyderabad - SOO 034 . 'a : 040-233867Q3 / 23386784 [8] : [email protected]
Limited Review Report
To the Board of Directors SMS Pharmaceuticals Limited
-
- We have reviewed the accompanying Statement of Unaudited Consolidated Financial results of SMS Pharmaceuticals Limited ("the Parent") and share of the net profit after tax and total comprehensive income of its associates for the quarter ended 31st December, 2019 (the "statement"), being submitted by the parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
-
- This statement 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", prescribed under Section 133 of the Companies Act, 2013 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 Engagement (SRE) 2410, Review of Interim Financial information performed by the Independent Auditor of the Entity, issued by Institute of Chartered Accountants of India. 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 sib>nificant 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 SEBl (Listing Obligations and Disclosure Requirements) Regulations, 20I5, as amended, to the extent applicable.
-
- The Statement includes the result of the following Associates:
- a. VKT Pharma Private Limited
Flat # C2, Millenium House, # 8-2-601/6, Road No. 10, Near Zaheer Nagar Cross Road, Banjara Hills, Hyderabad - 500 034. 'al : 040-233867Q3/ 23386784 r8J : [email protected]
-
- Based on our review conducted and procedures performed as sta ted in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, 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 Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, 01' that it contains any material misstatement.
-
- We did not review the interim financial statements of associate included in the consolidated unaudited financial results, whose interim financial statements reflects the Group's share of net profit after tax of Rs. 11.70 lakhs and total comprehensive income of Rs. 28.39 lakhs for the quarter ended 31st December, 2019 as considered in the consolidated unaudited financial results, in respect of associate, whose interim financial statements have not been reviewed by us. These interim financial statements have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the sta tement, in so far as it relates to the amounts and disclosures included in respect of the associate is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matters.
Place: Hyderabad Date: 12-02-2020
For Suryanarayana & Suresh., Chartered Accountants Reg. No.006631S ~ Nagendra Rao
V Partner M. No. 227679
