Unichem Laboratories Ltd. — Interim / Quarterly Report 2019

Nov 14, 2019

November 14, 2019

Department of Corporate Services Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers Dalal Street, Mumbai- 400 001

National Stock Exchange of India Ltd Exchange Plaza, Sandra - Kurla Complex Bandra (East), Mumbai - 400 051

Sub: Disclosure of Related Party Transactions pursuant to Regulation 23(9) of the Securities and Exchange Board of India {Listing Obligations and Disclosure Requirements) Regulations. 2015 ("Listing Regulations")

Dear Sir/Madam,

Pursuant to Regulation 23(9) of Listing Regulations, please find enclosed the disclosure of Related Party Transactions on a consolidated basis for half year ended September 30, 2019 drawn in accordance with applicable Accounting Standards.

Kindly take the same on your records.

Thanking you, For Unichem Laboratories Limited

Pradeep Bhandari Head- Legal & Company Secretary

Re,gistered Office: Unichem Bhavan, Prabhat Estate, Off S. V. Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India. Te--1.: +91 (22) 66888333 • Fax.: +91 (22) 26784391 • Website: www.unichemlabs.com • CIN: L99999MH1962PLC012451

UNICHEM LABORATORIES LIMITED

Notes forming part of standalone financial statements for the half year ended 30th September, 2019

44 RELATED PARTY DISCLOSURES

Disclosure of related parties/ related party transactions pursuant to Ind AS 24 "Related Party Disclosure".

a) List of related parties

(i) Subsidiaries of the Company (Wholly Owned) :	{ii) Enterprises under significant influence of
Niche Generics Limited. (United Kingdom) Unichem SA Ply. LTD. (South Africa) Unichem Farmaceulica Do Brasil Lida (Brazil) Unichem Pharmaceuticals (USA) Inc. (USA) Unichem Laboratories Ud ( Ireland) Unichem (China) Ply Ltd (w.e.f. 27.06.2019)	key management personnel as defined in (iii) (disclosed to the extent of transactions) Uni - Distributors Pvt. Lid. E!emage Wellness LLP Adiwasi Unnali Manda! Uni Trust Also Refer note (f)
(iii) Key management personnel and their relatives: {disclosed to the extent of transactions) Dr. Prakash A. Mody (Chairman & Managing Director CMD,Promoter)	(iv) Independent Directors: Dr. (Mrs.) B. Kinnera Murthy
Mm Anita Mody (Spouse of CMD) Ms Supriya Mody (Daughter of GMO) Ms. Suparna Mody (Daughter of CMD) Mr. Dilip J. Kunko!ienkar (Director- Technical)	Mr. Anand Y. Mahajan Mr. Prafull Anubhai Mr. Prafull D Sheth
(v) Post-employment benefit plans:	{vi) Key management personnel and their:
Unichem Laboratories Ltd- Employees Gratuity Fund Unichem Laboratories Ltd- Employees Superannuation Fund	relatives as per Companies Act, 2013. Mr. Pradeep Bhandari (Head- Legal & Company Secretary) (w.e.f. 01.08.2019) Mrs. Neema Thakore (Head - Legal & Company Secretary) (upto 31.07.2019) Mr. Sandip R.Ghume (Dy. Chief Financial Officer)

b} Disclosure of related party transactions:

		Rs in Lakh
Particulars		' YTD Sep'2019
i) Sale of finished goods/solvents (Net of returns)
Subsidiaries
Niche Generics limited.		479.08
Unichem SA Ply. LTD.		516.10
Unichem Farmaceutica Do Brasil Lida		745.17
Unichem Pharmaceuticals (USA) Inc.		26 258.79
		27 999.14
ii) Recovery of Expenses - Re-imbursements(exctuding indirect tax)
Efemage Wellness LLP
		2.35 2.35
iii) Investments made { including guarantee commission & ESOP)
Subsidiary Unichem Farmaceulica Do Brasil Lida
Unichem Pharmaceuticals (USA) Inc.
Unichem laboratories ltd ( Ireland)		59.56
Niche Generics Limited.		5.37
Unichem (China) Ply ltd		11.67
		143.73 220.33
iv) Guarantees to banks - given /(reduced)
On behalf of Subsidiary Company
Unichem Pharmaceuticals (USA) Inc.		(21,369.00)
Unichem Laboratories Ltd ( Ireland)		(240.87
		121 609,87
v) Rent & Maintenance Paid (excluding indirect taxes) Relative of Key Management Personnel
Mrs Anita Mody
Enterprise under significant influence of Key Management Personnel		9.21
Uni - Distributors Pvt. Lid.
Uni Trust		5.77
		4.50 19.48
vi) Managerial remuneration ( including defined contribution plan)
l <ey management="" personnel<="" td="">
Dr. Prakash A. Mody	//	232.62
Mr. Dilip J Kunko!ienkar	.,",,,	102.81
vii) Salary ( including defined contribulion plan)	,: ;:-'(	335.43
Relative of Key Management Personnel
Ms Supriya Mody
		36.05
		36.05

---,

UNICHEM LABORATORIES LIMITED

Notes forming part of standalone flnanclal statements for the half year ended 30th September, 2019

	R sin L a kh s
Particulars	YTD Sep'2019
viii) Dividend Paid
Key Management Personnel & Relatives
Dr. Prakash A. Mody	1,296.78
Mrs Anita Mody	52.94
Ms Supriya Mody	38.00
Ms. Suparna Mody	38.00
Mr. Dilip J. Kunkolienkar	3.02
	1 428.74
Independent Directors
Mr. Anand Y. Mahajan	0.60
Mr. Praful! Anubhal	0.03
Mr. Praful! D Sheth	0.30
	0.93
ix) Expenses Re-imbursement (Establishment and administrative expenses)
Subsidiaries
Unichem SA Pty. LTD.	6.22
Unichem Pharmaceuticals (USA) Inc.	48.55
	54.77
x) Silting Fees
Independent Directors
Dr. (Mrs.) B. Kinnera Murthy	6.50
Mr. Anand Y. Mahajan	4.00
Mr. Prafull Anubhai	7.50
Mr. Prafull O Sheth	6.00
xi) Corporate Social Responsibility	24.00
Enterprise under significant influence of Key Management Personnel
Adiwasi Urmall Manda!	15.00
	16.00

UNICHEM LABORATORIES LIMITED Notes forming part of standalone financfal statements for the half year ended 30th September, 2019

Disclosure of related party balances :	Rs in lakhs
Particulars	YTD Sep'2019
i) Trade Receivables
Subsidiaries
Niche Generics Limited.	2,152.17
Unichem SA Ply.LTD.	347.20
Unichem Farmaceutica Do Brasil Lida	1,787.28
Unichem Pharmaceuticals (USA) Inc.	20,627.95
Unichem Laboratories ltd ( Ireland)	381.27
	25 295.87
ii) Trade Payables
Subsidiaries
Niche Generics Limited.	2.08
Unichem SA Ply. LTD.	2.62
Unichem Farmaceulica Do Brasil Ltda	10.62
Unichem Pharmaceuticals (USA) Inc.	25.73 41.05
iil) 1nvestmenls in subsidiaries
In equity shares
Niche Generics Limited.	5,856.76
Unichem SA Ply.LTD.	12.14
Unichem Farmaceu!ica Do Brasil Lida•	7,086.72
Unichem Pharmaceuticals (USA) Inc.	3,368.09
Unichem laboratories ltd ( Ireland)	1,269.45
Unichem (China) Ply Ltd	143.73
* fully provided as impairment in value of investment	17 736.88
In preference shares
Niche Generics limited.	1,164.79
	1164.79
iv) Guarantees given
to Banks on behalf of Subsidiary Company
Unichem laboratories lid ( Ireland)	710.96
	710.96
corporate guarantee given on behalf of Subsidiary Company
Niche Generics limited.	2,331.00
	2.331.00
v) Deposits paid
Relative of Key Management Personnel Mrs Anita Mody	45.90
Enterprise under significant influence of Key Management Personnel
Uni - Distributors Pvt. ltd.	5.00
Uni Trust	2.25
	53.16

d} Contribution to post employment benefit plan

	Rs in Lakhs
Partlculars	YTD Sep'2019
Pos!-emp!oyment benefit plans
Unichem Laboratories Ltd- Employees Superannuation Fund	42.36

UNICHEM LABORATORIES LIMITED

Notes forming part of standalone financial statements for the half year ended 30th September, 2019

e) Following are Key management Personnel {not covered above} in accordance with provisions of Companies Act, 2013. Details of transactions and balances are below

	Rs in Lakhs
Particulars	YTD Sep'2019
i) Salary ( including defined contribution plan) Key Management Personnel Mrs. Neema Thakore Mr. Sandip Ghume Mr. Pradeep Bhandari	30.86 21.14 12.17
ii) Share based payments (ESOP) Key Management Personnel Mr. Dilip J. l(unkolienkar	33.59

1 Number of option pending to be exercised by Mr. Dilip Kunko!ienkar as on 30th September, 2019 are 246,176

• 2 Key Managerial Personnel and their Relatives who are under the employment of the Company are entilled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, !he same is not included above. Further, it also does not include actual payments of gratuity and leave encashment. Also, re-imbursement of expenses to KMP and their relatives are not included above.
• 3 Related party contracts / arrangements have been entered in ordinary course of business and are approved by the board of directors/ shareholders as applicable.
• f) In view of the Management, equity lnves!ment in Synchron Research Services Pvt ltd will not result the investee company becoming a related party since there is no control/ influence over operations: The summary of transactions with Synchron Research Services Pvt. ltd are as follows:

	Rs in Lakhs
Particulars	YTD Sep'2019
Rent Income ( net of indirect tax)	21.96
Deoosil received	7.50