SOLARA ACTIVE PHARMA SCIENCES LIMITED — Interim / Quarterly Report 2020

Aug 4, 2020

Communication Address: Solara Active Pharma Sciences Limited Batra Centre No. 28. Sardar Patel Road. Post Box 2630 Guindy. Chennai - 600 032. India Tel : +91 44 43446700. 22207500 Fax : +91 44 22350278 E-mail : investors@solara.com www.solara.co.in

August 4, 2020

The BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001 The National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex Sandra (E), Mumbai - 400 051

Scrip Code: 541540

Scrip Code: SOLARA

Dear Sir/ Madam,

Sub: Newspaper advertisement

Please find enclosed copies of the newspaper advertisement titled 'Financial Results for the quarter June 30, 2020'. The advertisements appeared in today's Business Standard and Lokmat (Marathi version).

This is for your information and records.

This will also be hosted on the Company's website, at www.Solara.co.in

Thanking you, Yours Truly, For Solara Active Pharma Sciences Limited S Muralikrishna Digitally signed by S Muralikrishna Date: 2020.08.04 12:40:41 +05'30'

S. Murali Krishna Company Secretary

Enclosed: - Newspaper clippings

RAM PRASAD SAHU Mumbai, 3 August

Sun Pharmaceutical's June quarter results were weighed down by weak sales in the US market, especially in the high-margin specialty segment. Its American sales slid 24.6 per cent on a sequential basis, as Sun's specialty portfolio, as well as its subsidiary Taro Pharma's sales, dipped 33-38 per cent. Taro Pharma, which accounted for 42 per cent of Sun's US sales, reported its worst quarterly performance in nine years.

The derma (skin) product segment, which accounts for around two-thirds of Taro's sales, was the worst-affected due to pricing pressures. Sales for the specialty portfolio fell on account of the lockdown, while the performance of the generic business was similar to the one reported in the March quarter.

Stocking up in the March quarter had boosted Sun's US sales performance in that quarter, and the company had indicated a softer June quarter. Compared to the year-ago quarter, sales were down by a third, with the base quarter having a one-off in the form of a generic supply contract pegged at \$40-\$45 million.

Analysts at Prabhudas Lilladher believe the company's US business will continue to face challenges due to lower revenues from specialty products, lack of approvals because of the Halol regulatory issue,

Taro's continued weak performance, and research-related spends on psoriasis treatment drug Ilumya for new indications.

At 32 per cent, the India business contribution was the highest to the firm's overall sales. Led by its chronic portfolio, which accounts for 56 per cent of domestic sales, the company posted a better-thanexpected 3 per cent increase in revenues for the quarter. The active pharmaceutical ingredient segment posted a sharp 20 per cent growth over the year-ago quarter.

Despite the 9.4 per cent decline in consolidated revenues, the company managed to post an improvement in operating profit margins by 770 basis points sequentially, to 24.3 per cent. This was led by lower raw material, research, and other expenditure. However, Praful Bohra of Emkay Global believes these gains are unlikely to sustain as marketing costs pick up going ahead. He believes a slow specialty ramp up, higher competition in acne drug Absorica, and an increase in field force will limit gains. These cost pressures and a gradual uptick in revenues will keep margins flat over the next two years.

While net profit was hit by a one-time settlement charge of ~3,633 crore related to Taro, adjusted net profit of ~1,146 crore was better than expectations.

Key positives are an expected improvement in the India business in the coming quarters and the resolution of the US Department of Justice overhang for Taro in the June quarter. While its focus on the specialty segment is positive for the longer term, a steady improvement in US sales over the next few quarters will be the single-biggest trigger for stock in the near term.

Weak US outlook weighs on Sun Pharma's revenue growth

BLOOMBERG 3 August

Oil was steady near \$40 a barrel as Opec+ producers started supplying more crude to a global market where many countries are still struggling to contain the novel coronavirus.

The Organization of Petroleum Exporting Countries and its allies will pump about 1.5 million barrels a day more this month than in July as they started to unwind their historic virus-driven output curbs, with Russia already having lifted its production slightly last month. At the same time, diesel sales in India were down 21 per cent on the previous year in July, a sign of the stuttering demand recov-

ery in one of the world's largest consumers.

Oil has been stuck in a narrow band since June, with rising virus infections in many countries increasing concerns about a renewed hit to the global econsupply, with Royal Dutch Shell Plc and Exxon Mobil predicting there may not be a full demand recovery until next year. "As Opec+ begins to raise its production, the economic outlook is still uncertain and largely

tied to the evolution of Covid-19," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas. "Concerns appear to be developing that a rise in Opec+ production will coincide with an uneven recovery in oil demand."

There's growing evidence that the recovery in oil demand is running out of steam, JPMorgan Chase & Co analysts including Natasha Kaneva wrote in a report. With travel indicators appearing to have stalled, there's a chance global oil consumption could find a new normal at about 90 million barrels a day, according to the report, down from about 100 million previously.

Supply from Opec+ will be increasing as virus cases accelerate in California, a lockdown is being reimposed in Manila, and Australia's second-biggest city of Melbourne institutes a curfew to stem the spread.

BINDISHA SARANG

The Sovereign Gold Bond Scheme (SGB) 2020-21-Series V is open for subscription from August 3-7. The price of this tranche has been fixed at ~5,334 per 1 gram of gold. Investors need to carefully decide whether they should lock in their money in SGBs for the long term at the current high prices or consider more liquid alternatives, like gold exchangetraded funds (ETFs).

The primary factor responsible for the ongoing bull run in the yellow metal is the global economic downturn. Says Feroze Azeez, deputy chief executive officer, Anand Rathi Private Wealth: "Gold prices have seen unprecedented highs due to the economic uncertainty triggered by the Covid-19 pandemic. If not for it, gold would not have seen these levels." Gold had touched ~53,000 per 10 grams in the past month.

Experts caution against the current high prices. Says Pankaj Mathpal, founder and managing director, Optima Money Managers: "Between the April tranche and the latest one, the price of SGB has increased by approximately 15 per cent, making it very expensive right now. It is unlikely that the current momentum in gold prices will continue."

If we are closer to the end of the rally in gold, investors could be disappointed if they lock themselves in an instrument like SGB, which has an eight-year tenure. Experts believe the current rally may not last beyond two years. They believe gold

prices could correct by 20-25 per cent in two years.

omy. It's a precarious time for producers to be adding more Dec 31,'19 Jul 31,'20 Source: Nymex, ICE

Those accumulating gold for a consumption-oriented goal may still buy. If you are buying it in small amounts for your daughter's marriage, which is a decade or so away, you may still buy. But if you are buying for inves tment, your decisionmaking criteria should be different. Ideally, investors should maintain an allocation of around 10 per cent to the yellow metal. Says Mathpal: "Only those who don't have any exposure to gold should consider buying at such high prices." While the annual 2.5 per cent

interest makes SGBs attractive, they have a few disadvantages. One is liquidity. SGBs mature after eight years. Investors can exit prematurely by selling them back to the issuer after five years. These bonds are also listed on the stock exchanges. However, if you trying to exit via this route, you

Those wanting to invest now may avoid the primary issue and buy these bonds at a discount from the secon da ry market and sell when prices climb higher or redeem them at maturity.

Says Azeez: "Listed SGBs are quoting

~51,800 today, i.e., 2 per cent less than the current price." Globally, gold-backed ETFs have seen net inflows of about \$39.5 billion this calen dar year, according to the World Gold Council. Indian investors, too, may consider them. While SGBs offer an interest rate of 2.5 per cent annually, gold ETFs charge an

annual expense ratio. Nonetheless, investors who have a shorter investment horizon and want liquidity may consider gold ETFs, which are easy to exit by selling on the stock exchanges.

Interest earned on SGBs is taxed by being added to income. It is then taxed at the slab rate. Says Gopal Bohra, part ner, NA Shah Associates LLP: "No cap ital gains tax is payable by an indi vi d u al on the redemption of SGBs on ma t u r ity. However, this tax is payable if one transfers SGBs before maturity, just as you would pay on the transfer of phy sical gold, ETFs or gold mutual funds."

Investing in SGBs at high prices could be risky

Entering this long-term instrument could cause distress if the rally ends in some years

YOUR MONEY

Margin gains in the June quarter unlikely to sustain

40 0

-160 -200

WTI futures Brent futures

0

TIGHT TRADING (% change)

GOLD HAS BEEN A STELLAR PERFORMER Return (%)

Regd.Office: 6-3-1109/1, 'Nava Bharat Chambers', Raj Bhavan Road, Hyderabad - 500082 Corporate Identity No.: L27101TG1972PLC001549; Tel.Nos.:040-23403501/40345999; e-Fax No.:080-6688 6121 Email ID: investorservices@nbv.in ; Website: www.nbventures.com STANDALONE CONSOLIDATED Extract of Standalone & Consolidated Unaudited Financial Results for the Quarter ended June 30, 2020 ( Amount in lakhs of unless otherwise stated) Quarter Quarter Year Quarter Quarter Year PARTICULARS ended ended ended ended ended ended 30.06.2020 30.06.2019 31.03.2020 30.06.2020 30.06.2019 31.03.2020 (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Audited) CIN: L32209KA1988PLC009313 Regd. Office: No.10C, 2nd Phase, 1st Main, Peenya Industrial Area, Bangalore-560058 Tel:+91 80 28396102 / 28396291 E-mail: support@adckcl.com Website: www.adckcl.com ADC India Communications Ltd. Notice is hereby given pursuant to Regulation 29 read with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 that a Meeting of NOTICE

सोलारा ॲक्टीव्ह फार्मा सायन्सेस लिमिटेड CIN: L24230MH2017PLC291636

नोंदणीकृत कार्यालय: २०१, देवव्रत, सेक्टर-१७, वाशी, नवी मुंबई - ४०० ७०३. कॉर्पोरेट कार्यालय: नं. २८, सरदार पटेल रोड, गिन्डी. चेन्नई - ६०० ०३२

३० जून, २०२० रोजी तिमाहीसाठी संपलेले संकलित एकत्रित वित्तीय निष्कर्ष_{(प्रति शेअर} डेटा बगळता रु. कोटीमध्ये)

37. क्र.	तपशील	संपलेली तिमाही	मार्गील संपलेली तिमाही	मागील वर्षीतील सुपलेली संबंधीत तिमाही	मागील संपलेले आर्थिक वर्ष
		0505.80.05	0505.50.95	990,05.7099	0909.50.95
		अलेखापरीक्षीत	टिप ३ पहा	अलेखापरीक्षीत	लेखापरीक्षीत
	चालु असलेले संचालन
	प्रवर्तनातून एकूण उत्पन्न	343.00	09.305	338.43	8,388.50
э	कालावधीसाठी करपूर्व निव्वळ नफा	85.35	89.80	२६.५०	888.68
в	कालावधीसाठी करोत्तर निव्वळ नफा	88.80	93.09	२६.५०	888.43
$\mathbf{r}$	कालावधीसाठी इतर सर्वसामावेशक उत्पन्न	0.08	(3,45)	$\qquad \qquad$	(9.98)
ξ	कालावधीसाठी इतर सर्वसामावेशक उत्पन्न (३+४)	39.98	88.84	२६.५०	83.099
v	समभाग भांडवल	28.64	25.64	24.00	28.64
ι	इतर समभाग				80.940,9
ৎ	प्रति समभाग प्राप्ती (प्रत्येकी रु. १० चे)
	(संचालन सुरु ठेवण्याकरिता) –
	मूलभूत (रु.)	84.04	30.5	99.09	88.56
	सौम्यिकृत (रु.)	88.08	95.3	80.99	83.98

टिपा:

वरील माहिती म्हणजे सेबी (लिस्टिंग ऑब्लिगेशन्स ॲण्ड ऑदर डिस्क्लोजर रिक्वायरमेंट्स) रेग्युलेशनस, २०१५ च्या रेग्युलेशन ३३ अंतर्गत स्टॉक एक्स्चेंजेसमध्ये सादर केलेल्या तिमाहीसाठी संपलेल्या 2. वित्तीय निष्कर्षाचा तपशीलवार विवरणाचा एक उतारा आहे. वित्तिल निष्कर्षाचे संपूर्ण विवरण स्टॉक एक्स्चेंनेसच्या वेबसाईट्स एनएससी लिमिटेड (www.nseindia.com) आणि बीएससी लिमिटेड (www.bseindia.com) वर तसेच कंपनीची वेबसाईट (www.solara.co.in) वर उपलब्ध आहे.

वरील निष्कर्षांचे लेखापरीक्षण समितीद्वारे पुनरावलोकन करण्यात आले होते व संचालक मंडळाद्वारे त्यांच्या दि. ०३ ऑगस्ट, २०२० रोजी आयोजित सभेत त्यांना मंजुरी देण्यात आली आहे. दि. ३० जून, ₹. २०२० रोजी संपलेल्या तिमाहीकरिताचे निष्कर्ष हे डीलॉइट हस्किन्स ॲन्ड सेल्स एलएलपी – कंपनीचे वैधानिक लेखापरीक्षक यांच्या मर्यादित पनरावलोकनाच्या अधीन आहेत. वैधानिक लेखापरीक्षकांचा अहवाल हे अपरिवर्तित मत आहे.

वरील निष्कर्षांमध्ये दि. ३१.०३.२०२० रोजी संपलेल्या तिमाहीकरिताच्या निष्कर्षांचा समावेश आहे जी संपूर्ण वित्तीय वर्ष ३१.०३.२०२० आणि गत वित्तीय वर्षांच्या तिसऱ्या तिमाहीपर्यंतच्या प्रसिद्ध वर्ष ते तारीख आकडेवारीसंदर्भातील लेखापरीक्षित आकडेवारी दरम्यान ताळमेळ साधणारा आहे. संचालक मंडळाच्या वतीने आणि साठी

ठिकाण : बंगळुरू दिनांक : ०३ ऑगस्ट, २०२०

सही/-भारत आर.सेशा व्यवस्थापकीय संचालक आणि सिएफओ

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