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Unichem Laboratories Ltd. Interim / Quarterly Report 2019
61109_rns_2019-11-02_ddc81653-2507-4586-ad57-787067984f1b.pdf
Interim / Quarterly Report
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November 2, 2019
Department of Corporate Services Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001
Mr. Hari K Asst. Vice President - Operations National Stock Exchange of India Ltd Exchange Plaza, Sandra - Kurla Complex Sandra (East), Mumbai - 400 051
Dear Sir.
Ref: BSE Scrip Code -506690: NSE Symbol - UNICHEMLAB
Sub: Outcome of Board Meetin
We would like to inform you that Board of Directors at its Meeting held today, i.e. Saturday, November 2, 2019 inter-alia approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2019. Enclosed herewith please find the Unaudited financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2019 and the Limited Review Reports of the Auditors thereon.
~- 3o pm
The Board meeting commenced at 11.45 am and concluded at J:Jrpm
Kindly take the same on your records.
Thanking you, FOR UNICHEM LABORATORIES LIMITED
Pradeep Bhandari Head- Legal & Company Secretary Encl: a/a
| UNICHEM LABORATORIES LIMITED | |||||||
|---|---|---|---|---|---|---|---|
| CIN: L99999MH1962PLC012451 | |||||||
| Statement of Standalo.ne Unaudited Results for the Quarter & Half Year ended 30th Seotember, 2019. | f Lakhs | ||||||
| Particulars | Quarter ended 30th Sep'19 (Unaudited) |
Quarter ended 30th Jun'19 (Unaudited) |
Quarter ended 30th Sep'18 (Unaudited) |
Half year ended 30th Sep'19 (Unaudited) |
Half year ended 30th Sep'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
| CONTINUING OPERATIONS | |||||||
| I | Revenue from operations | 22,509.74 | 23,252.14 | 24,494.19 | 45,761.88 | 44,629.63 | 96,773.89 |
| II | Other income | 2,904.90 | 2,798.35 | 3,255.81 | 5,703.25 | 5,169.40 | 10,154.23 |
| Ill | Total income (1+11) | 25,414.64 | 26,050.49 | 27,750.00 | 51,465.13 | 49,799.03 | 1,06,928.12 |
| IV | EXPENSES Cost of materials consumed (including provisions) |
||||||
| Purchase of stock-in-trade | 10,218.16 21.07 |
10,078.92 36.18 |
10,472.11 8.24 |
20,297.08 57.25 |
22,144.00 10.15 |
44,317.29 20.86 |
|
| Changes in inventories of finished goods and work-in-progress | 418.75 | (128.76) | (451 00) | 289.99 | (1,941 .1 9) | (3,053.94) | |
| Employee benefits expense Finance costs |
5,212.35 23.08 |
4,886.44 4.74 |
4,132.34 6.66 |
10,098.79 27.82 |
8,344.99 7.84 |
17,755.75 61.71 |
|
| Impairment loss on financial assets (refer note 4) | - | - | - | - | 302.83 | 863.42 | |
| Depreciation and amortization expense | 1,786.42 | 1,685.60 | 1,481.32 | 3,472 .02 | 2,716.26 | 6,171.25 | |
| Other expenses | 10,221.19 | 10,190.77 | 10,148.39 | 20,411 .96 | 19,432.03 | 42,949.80 | |
| V | Total expenses (IV) Profit/(loss) before exceptional Items and tax (Ill- IV) |
27,901.02 (2,486.38) |
26,753.89 (703.40) |
25,798.06 1,951.94 |
54,654.91 (3,189.78) |
51,016.91 (1,217.88) |
1,09,066.14 (2,158.02) |
| VI | Exceptional items | - | - | - | - | - | - |
| VII | Profit/(loss) before tax (V-VI) | (2,486.38) | (703.40 | 1,951.94 | (3,189.78) | (1,217.88) | (2,158.02) |
| VIII | Tax expense | ||||||
| (1) Current tax | - | - | - | - | - | - | |
| (2) Deferred tax (Refer note 6) | - | (749.82) | 183,81 | (749.82) | (920 75) | (2,737.77) | |
| (3) Short/ (excess) provision for tax (earlier years) frefer note 51 |
- | - | - | - | (124.45) | ||
| IX | Profit/(loss) for the period from continuing Operations (VII- Vllll |
(2,486.38) | 46.42 | 1,768.13 | (2,439.96) | (297.13) | 704.20 |
| DISCONTINUED OPERATIONS | |||||||
| X | Discontinued Operations | ||||||
| A. Profit/(loss) before tax from discontinued operations /refer note 81 |
- | - | (359.35) | - | (359.35) | 246.96 | |
| Proflt/(Loss) for the period from discontinued operations | |||||||
| (A+B) | - | - | (359.35) | - | (359.35) | 246.96 | |
| Tax on discontinued operations | - | - | (112.00) | - | (11200) | 71 .24 | |
| X | Profit/(loss) from discontinued operations (after tax) | - | - | (247.35) | - | (247.35) | 175.72 |
| XI XII |
Profit/lloss) for the oeriod (IX+X) Other Comprehensive lncome/(Loss) |
(2,486.38) | 46.42 | 1,520.78 | (2,439.96) | (544.481 | 879.92 |
| (i) Items that will not be reclassified subsequently to | |||||||
| A. profit or loss |
(158.09) | 0.79 | 138.02 | (157.30) | 95.36 | (41.41) | |
| (ii) Income tax expense/ (credit) relating to items that will not be reclassified to profit or loss |
- | (0.25) | (44.19) | (025) | (29.75) | 12.92 | |
| B. (i) Items that will be reclassified to profit or loss |
- | - | - | - | - | - | |
| (ii) Income tax relating to items that will be reclassified to orofit or,,., |
- | - | - | - | - | - | |
| Total of Other Comprehensive Income/ (Loss) | 1158.09) | 0.54 | 93.83 | (157.55) | 65.61 | (28.49) | |
| XIII | Total Comprehensive Income for the period (Xl+XII) | (2,644.47) | 46.96 | 1,614.61 | (2,597.51) | (478.87) | 851 .43 |
| XIV Paid-up equity share capital (Face value off 2/- per share) | 1,408.12 | 1,408.12 | 1,406.86 | 1,408.12 | 1,406.86 | 1,407.67 | |
| xv XVI |
Other Equity (Reserves excludina revaluation reserve) Earnings per equity share (for continuing operation) in{: |
2,71,785,74 | |||||
| (1) Basic | (3.53) | 0.07 | 2.51 | (3.46) | (0.42) | 1.00 | |
| (2) Diluted | (3.53) | 0.07 | 2.51 | (3.46) | (0.42) | 1.00 | |
| XVII Earnings per equity share (for discontinued operation) in ~ : | |||||||
| (1) Basic (2) Diluted |
- - |
- - |
(0.35) (0.35) |
- | (0.35) (0,35) |
0.25 0.25 |
|
| XVIII | Earnings per equity share (for discontinued & continuing | ||||||
| operation) in t : | |||||||
| (1) Basic /2) Diluted |
(3.53) (3.53) |
0.07 0.07 |
2.16 2.16 |
(3.46) (3.46) |
(0,77) (0.77) |
1.25 1.25 |
Notes :
- 1 The unaudited standalone financial results for the quarter and half year ended 30th September, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 2nd November, 2019. The statutory auditors have carried out a limited review of the standalone financial results for the quarter and half year ended 30th September, 2019.
- 2 The above unaudited standalone financial results have been prepared in accordance with the guidelines issued by the Securities and Exchange Board of India ("SEBI") and the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Effective from 1st April, 2019, the Company has adopted Ind AS 116-Leases and this did not have any material impact on the financial results of the Company.
- 3 Operating Segment : The Company has a single reportable segment i.e. 'Pharmaceuticals'.
- 4 Impairment loss on financial assets in standalone financial results include provision for impairment of long-term investments in its subsidiary "Unichem Farmaceutica Do Brazil Lida" oft Nil for the quarter ended 30th September 2019 (t Nil for the quarter ended 3oth June 2019, ~ Nil for the quarter ended 30th September 2018, ~ Nil for the half year ended 30th September 2019, f 302,83 lakhs for the half year ended 30th September 2018 and t 302.83 lakhs for year ended 31st March, 2019).
- 5 Short/ excess provision for income tax (net) of earlier years is on account of final tax liability as per returns filed and assessments completed.
- 6 Deferred tax assets is recognised on tax loss (which includes weighted deduction in respect of R&D expenditure and excludes exempt income), unabsorbed tax depreciation and other temporary differences which will be offset against deferred tax liability.
- 7 During the quarter ended 30th September 2019, the Company has invested ~ 143.73 lakhs in equity of wholly owned subsidiary at China namely, "Younikaimo Pharmaceutical (Shanghai) Pvt. Ltd." [Unichem (China) Pvt. Ltd.].
- 8 Loss in discontinued business for the quarter and half year ended 30th September 2018 mainly includes additional provision made towards doubtful recovery of amount receivable from the government authorities oft 328.90 lakhs. Further, profit in discontinued operations (Domestic formulation in India and Nepal) for the year ended 31st March. 2019 mainly includes reversal of provision for doubtful debts off 521.83 lakhs and other writebacks.
- 9 The General Court of the European Union had on 12th December 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to~ 10,846.82 lakhs) imposed by the European Commission jointly and severally on the Company and its subsidiary (Niche Generics Limited, UK). The Company and its subsidiary based on legal advice and merits have filed appeals against the decision of General Court before the Court of Justice of the European Union and outcome of the appeals are awaited. In the view of the Management no provision for the aforesaid fine is considered necessary. The statutory auditors have given Emphasis of Matter in their limited review report on standalone financial results for the quarter and half year ended 30th September 2019.
- 10 The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below:
| f Lakhs | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended 3oth Sep'19 |
Quarter ended 30th Jun'19 |
30th Sep'18 | Quarter ended Half year ended 30th Sep'19 |
Half year ended 30th Sep'18 |
For the year ended 31st Mar' 19 |
| Total R&D expenditure | 3,941.67 | 3,986.24 | 4,104.78 | 7,927.92 | 7,710.95 | 15,905.26 |
11 Statement of Standalone Assets and Liabilities:
| f Lakhs | ||
|---|---|---|
| Particulars | As at 30th Sep,2019 |
As at 31st Mar,2019 |
| Unaudited | Audited | |
| I. ASSETS | ||
| Non-current assets | ||
| (a) Property, plant and equipment | 76,796.52 | 78,515.58 |
| (b) Right of use assets | 148.71 | - |
| (c) Capital work-in-progress | 22,488.99 | 9,025.44 |
| (d) Investment property | 362.75 | 365.90 |
| (e) Financial assets | ||
| (i) Investments | 24,423.17 | 24,169.70 |
| (ii) Loans | 7.29 | 6.39 |
| (iii) Other financial assets | 984.66 | 974.19 |
| (I) Other non-current assets | 5,621.26 | 4,655.20 |
| 1,30,833.35 | 1,17,712.40 | |
| Current assets | ||
| (a) Inventories | 26,188.67 | 27,417.85 |
| (b) Financial assets | ||
| (i) Investments | 48,688.67 | 80,075.13 |
| (ii) Trade receivables | 32,640.00 | 33,134.65 |
| (iii) Cash and bank balances | ||
| Cash & cash equivalents | 27,997.42 | 18,865.82 |
| Other bank balances | 251.35 | 236.85 |
| (iv) Loans | 4.34 | 5.71 |
| (v) Other financial assets | 3,295.29 | 2,365.48 |
| (c) Other current assets | . 26,950.92 | 23,121.29 |
| 1,66,016.66 | 1 85 222.78 | |
| Non Current Assets held for sale | - | 87.19 |
| TOTAL ASSETS | 2,96,850.01 | 3,03,022.37 |
| 11. EQUITY AND LIABILITIES | ||
|---|---|---|
| Equity | ||
| (a) Equity share capital | 1,408.12 | 1,407.67 |
| (ti) Other equity | 2,65,949.53 | 2,71 ,785.74 |
| 2,67,357.65 | 2, 73,193.41 | |
| Liabilities | ||
| Non-current liabilities | ||
| (a) Financial liatlilities | ||
| (i) Lease liat>ilities | 130.97 | - |
| (ti) Provisions | 2,247.95 | 1,459.90 |
| (c) Deferred tax liat>ilities (net) | - | 749.57 |
| (d) Other long term liat>ilities | 469.21 | 469.21 |
| 2,848.13 | 2,678.68 | |
| Current liabilities | ||
| (a) Financial liat>ilities | ||
| (i) Borrowings | 1,387.45 | - |
| (ii) Trade payat>les | ||
| Total outstanding dues of micro enterprises and small enterprises |
561.07 | 258.04 |
| Total outstanding dues of creditors other than micro enterprises and small enterprises |
16,478.75 | 19,011 .33 |
| (iii) Lease liat>ilities | 13.57 | - |
| (iv) Other financial liat>ilities | 3,443.20 | 3,344.79 |
| (b) Other current liabilities | 4,053.61 | 3,411 .06 |
| (c) Provisions | 706.58 | 1,125.06 |
| 26,644.23 | 27,150.28 | |
| TOTAL EQUITY AND LIABILITIES | 2,96,850.01 | 3,03,022.37 |
12 Statement of Standalone Cash flows:
| Particulars | Six months ended | Six months ended | f Lakhs | |
|---|---|---|---|---|
| A.Cash Flow from Operating Activities | 30th September, 2019 | 30th September, 2018 | ||
| Net ProfiV(loss) t>efore tax from continuing operations | (3,189.78) | (1,217.88) | ||
| Net ProfiV(loss) before tax from discontinued operations | - | (359.35) | ||
| Net Profit/(Loss) before tax | (3,189.78) | (1,577.23) | ||
| Adjustments: | ||||
| Depreciation / amortisation (including investment | ||||
| property) | 3,475.18 | 2,527.29 | ||
| Loss/ (profit) on sale/ discard of property, plant and | ||||
| equipment (net) | 28.93 | 644.26 | ||
| Unrealised exchange difference (net) | (631.35) | 243.54 | ||
| Rent income | (22 .05) | (127.70) | ||
| Guarantee commission income | (76.59) | (128.50) | ||
| Finance cost (including interest impact on financial assets | ||||
| / liabilities) | 27.82 | 7.83 | ||
| Provision for dout>tful det>ts, loans , advances & deposits | ||||
| (net) | 33.90 | (72.59) | ||
| Employees compensation expenses (ESOP) | 112.28 | 53.63 | ||
| Fair value gain on investments (net) | (2,024.23) | (274.63) | ||
| Interest income | (2,137.60) | (2,329.84) | ||
| Excess provision for expenses written t>ack | (29.09) | (6.77) | ||
| Impairment loss on financial assets - investments in sutisidiary |
||||
| Dividend income | - | 302.83 | ||
| (157.62) | 11,400.42) | (654.83) | 184.52 | |
| Operating ProfiV(loss) Before Working Capital Changes | (4,590.20) | (1,392.71) | ||
| Working capital Adjustments: | ||||
| Trade receivables & other assets | (2,495.19) | (12,732.97) | ||
| Inventories | 1,229.18 | (2,950.50) | ||
| Trade payat>le & other liat>ilities | (1 339.90\ | 2 942.56 | ||
| {2,605.91) | (12,740.91) | |||
| Cash Generated from / (used in) Operations | (7,196.11) | (14,133.62) | ||
| Direct taxes refund received (payment made) | 269.13 | (300.72) | ||
| Net Cash Flow from/(used in) Operating Activities (A) | (6,926.98) | (14,434.34) |
| B. Cash Flow from Investing Activities | ||
|---|---|---|
| Purchase of property, plant & equipment including Capital | ||
| WIP | (16,399.45) | (6,423.27) |
| Proceeds from sale of property, plant and equipment | 80.98 | 43.80 |
| Investments made | ||
| - in subsidiaries (at cost) | (143.72) | (3.611.13) |
| Sale / (purchase) of current investment (net) | 17,785.61 | 17,226.89 |
| Inter - Corporate deposits (placed)/Matured | - | (500.00) |
| Rent received (including amount received in advance) | 22.05 | 22.77 |
| (Increase) I decrease in escrow bank accounts | (14.53) | 1,121.22 |
| Interest received | 964.75 | 422.98 |
| Dividend received | 157.62 | 654.B3 |
| Net cash flow from/(used in) Investing Activities (B) | 2,453.31 | 8,958.09 |
| C. Cash Flow from Financing Activities | ||
| Increase/ (decrease) in working capital borrowings (net) | 1.387.44 | - |
| Proceeds from employee stock option plan | 10.35 | 21 .27 |
| Payments of Lease liabilities | (7.17) | - |
| Receipt/ (payment) of long term loan from BIRAC | - | (5.79) |
| Finance cost paid (Incl. interest impact on financial | ||
| assets / liabilities) | (30.12) | (173.32) |
| Dividend paid (inclusive of dividend tax) | (3,381 .19) | (4.246.71) |
| Net cash flow from/(used) In Financing Activities( C) | (2,020.69) | (4,404.55) |
| Net (Decrease)/ Increase in Cash and Cash Equivalents (A+B+C) |
(6,494.36) | (9,880.80) |
| Cash and Cash Equivalents at the beginning of the | ||
| period | 18,865.82 | 66,030.88 |
| Add: Current Investments reclassified as cash and cash | ||
| equivalents during the period | 15 625.96 | 24 856.63 |
| 34,491.78 | 90,887.51 | |
| Cash and Cash Equivalents at end of the period | 27,997.42 | 81 ,006.71 |
The figures for the half year ended 30th September, 2018 are approved by the Board of Directors and have not been subjected to Limited review by the Auditors.
Place: Mumbai Date: 2nd November, 2019
Ch<ti1'5ffl!fri& Managin, Im rector, DIN No.: 00001285
| UNICHEM LABORATORIES LIMITED | ||
|---|---|---|
| -- | ------------------------------ | -- |
| UNICHEM LABORATORIES LIMITED | |||||||
|---|---|---|---|---|---|---|---|
| CIN: L99999MH1962PLC012451 | |||||||
| Statement of Consolidated Unaudited Results for the Quarter & Half Year ended 30th September, 2019. | f Lakhs | ||||||
| Particulars | Quarter ended 30th Sep'19 (Unaudited) |
Quarter ended 30th Jun'19 (Unaudited) |
30th Sep'18 (Unaudited) |
Quarter ended Half year ended 30th Sep'19 (Unaudited) |
Half year ended 30th Sep'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
| I | CONTINUING OPERATIONS Revenue from operations |
29,560.64 | 29,773.52 | 26,115.14 | 59,334.16 | 50,232.17 | 1, 18,004.68 |
| II | Other income | 2,813.28 | 2,626.23 | 3 163.54 | 5,439.51 | 5 040.89 | 9,841.29 |
| Ill | Total income (1+11) | 32 373.92 | 32,399.75 | 29,278.68 | 64 773.67 | 55 273.06 | 1 27 845.97 |
| IV | EXPENSES Cost of materials consumed (including provisions) Purchase of stock-in-trade |
10,732.24 21.07 |
10,787.91 36.18 |
12,329.72 8.24 |
21,520.15 57.25 |
25,776.33 10.15 |
47,691.79 20.86 |
| Changes in inventories of finished goods and work-in- progress |
(286.31) | (593.70) | 217.76 | (880.01) | (2,900.18) | (3,247.73) | |
| Employee benefits expense Finance costs |
6,776.15 185.53 |
6,465.74 128.04 |
5,477.02 134.51 |
13,241.89 313.57 |
11,102.28 260.05 |
23,932.04 752.23 |
|
| Impairment loss on financial assets Depreciation and amortization expense Other expenses |
- 2,098.15 |
- 1,825.26 |
- 1,605.91 |
- 3,923.41 |
2,991.72 25 093.32 |
560.59 6.736.68 57 396.56 |
|
| Total expenses (IV) | 14 998.09 34 524.92 |
15 099.02 33 748.45 |
13.479.11 33 252.27 |
30,097.11 68 273.37 |
62 333.67 | 1 33 843.02 | |
| V | Share of protiU(loss) 1n associate (net of tax) | (2.27) | (23.14) | (57.32) | (25.41) | (28.93) | 6.52 |
| VI | Profit/(loss) before exceptional items and tax (Ill- IV+V) | (2,153.27) | (1,371.84) | (4,030.91) | (3,525.11) | (7,089.54) | (5,990.53) |
| VII VIII |
Exceptional items Profit/lloss) before tax (VI-VII) |
- (2,153.27) |
- {1 371.84) |
(4,030.91) | - (3,525.11) |
- (7,089.541 |
- (5,990.53) |
| IX | Tax expense | ||||||
| (1) Current tax | 69.46 | 194.77 | (91.65) | 264.23 | - | 713.83 | |
| (2) Deferred tax (Refer note 5) | (1.85) | (947.79) | (83.38) | (949.64) | (1,187.94) | (4,024.15) | |
| - | (3) Short/ (excess) provision for tax (earlier years) (Refer note 4) |
- | - | - | (124.45) | ||
| X | Profit/(loss) for the period from continuing Operations (VIII-IX) |
(2,220.88) | (618.82) | (3,855.88) | (2,839.70) | (5,901.60) | (2,555.76) |
| XI | DISCONTINUED OPERATIONS Discontinued Operations |
||||||
| A. ProfiU(loss) before tax from discontinued operations (refer note 6) |
- | - | (359.35) | - | (359.35) | 246.96 | |
| Profit/(Loss) for the period from discontinued operations (A+B) |
- | - | (359.35) | - | (359.35) | 246.96 | |
| Tax on discontinued operations | - | (112.00) | - | (112.001 | 71.24 | ||
| Profit/Uossl from discontinued operations (after tax) | - | 1247.35) | - | 1247.351 | 175.72 | ||
| XII | Profit/(loss) for the period (X+XI) | (2,220.88) | (618.82) | (4,103.23) | (2,839.70) | (6,148.95) | (2,380.04) |
| XIII | Other Comprehensive lncome/(Loss) | ||||||
| {i) Items that will not be reclassified subsequently to A. profit or loss |
(158.09) | 0.79 | 138.02 | (157.30) | 95.36 | (41.41) | |
| (ii) Income tax expense/ (credit) relating to items that will not be reclassified to profit or loss |
- | (0.25) | (44.19) | (0.25) | (29.75) | 12.92 | |
| B. Ii) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified |
165,10 | (136.65) | 275,62 | 28.45 | 406.31 | 215.46 | |
| to profit or loss | - | - | - | - | - | - | |
| Total of Other Comorehensive Income/ (Loss} | 7.01 | 1136.11 | 369.45 | (129.101 | 471.92 | 186.97 | |
| XIV | Total Comprehensive Income for the period (Xll+XIII) | (2,213.87) | (754.93) | (3,733.78) | (2,968.80) | (5,677.03) | (2,193.07) |
| xv | Paid-up equity share capital (Face value of~ 2/- per share) | 1,408.12 | 1,408.12 | 1,406.86 | 1,408.12 | 1,406.86 | 1,407.67 |
| XVI | Other Equity (Reserves excluding revaluation reserve) | 2,60,583.02 | |||||
| XVII | Earnings per equity share (for continuing operation) in ~: (1) Basic |
(3.15) | (0.88) | (5.48) | (4.03) | (8 39) | (3.63) |
| (2) Diluted | (3.15) | (0,88) | (5.48) | (4.03) | (8.38) | (3.63) | |
| XVIII Earnings per equity share (for discontinued operation) in ~ : (1) Basic |
- | - | (0 35) | - | (0.35) | 0.25 |
XIX Earnings per equity share (for discontinued & continuing
operation) in ~:
(2) Diluted - - (0.35) - (0.35) 0.25
(1) Basic (315) (0.88) (5.83) (4.03) (8.73) (3.38) 12\ Diluten !3.15\ !0.881 (5.83) (4.03) 18.741 (3.38 1
Notes :
- 1 The unaudited consolidated financial results for the quarter and half year ended 30th September, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 2nd November, 2019. The statutory auditors have car,rie~ out a limited review of the consolidated financial results for the quarter and half year ended 30th September, 2019. ·,
- 2 The above unaudited consolidated financial results have been prepared in accordance with the guidelines issued by the Securities and Exchange Board of India ("SEBI") and the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Effective from 1st April, 2019, the Company has adopted Ind AS 116-Leases and this did not have any material impact on the financial results of the Company.
- 3 Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'.
- 4 Short I excess provision for income tax (net) of earlier years is on account of final tax liability as per returns filed and assessments completed.
- 5 Deferred tax assets is recognised on tax loss (which includes weighted deduction in respect of R&D expenditure and excludes exempt income), unabsorbed tax depreciation and other temporary differences which will be offset against deferred tax liability.
- 6 Loss in discontinued business for the quarter and half year ended 30th September 2018 mainly includes additional provision made towards doubtful recovery of amount receivable from the government authorities of~ 328.90 lakhs. Further, profit in discontinued operations (Domestic formulation in India and Nepal) for the year ended 31st March, 2019 mainly includes reversal of provision for doubtful debts of~ 521.83 lakhs and other writebacks.
- 7 The General Court of the European Union had on 12th December 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to~ 10,846.82 lakhs) imposed by the European Commission jointly and severally on the Company and its subsidiary (Niche Generics Limited, UK). The Company and its subsidiary based on legal advice and merits have filed appeals against the decision of General Court before the Court of Justice of the European Union and outcome of the appeals are awaited. In the view of the Management no provision for the aforesaid fine is considered necessary. The statutory auditors have given Emphasis of Matter in their limited review report on consolidated financial results for the quarter and half year ended 30th September 2019.
- 8 The aggregate amount of revenue expenditure incurred on Research and Development as included 1n the relevant expense heads is as tabulated below:
| f Lakhs | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended 30th Sep'19 |
Quarter ended 30th Jun'19 |
Quarter ended 30th Sep'18 |
30th Sep'19 | Half year ended Half year ended 30th Sep'18 |
For the year ended 31st Mar' 19 |
| Total R&D exoenditure | 3,941.67 | 3,986.24 | 4,104.78 | 7,927.92 | 7 710.95 | 15,905.26 |
9 Statement of Consolidated Assets and Liabilities:
| ~ Lakhs | ||
|---|---|---|
| Particulars | As at 30th Sep,2019 |
As at 31st Mar,2019 |
| Unaudited | Audited | |
| I. ASSETS | ||
| Non-current assets | ||
| (a) Property, plant and equipment | 78,724.67 | 80,449.82 |
| (b) Right of use assets | 2,373.44 | - |
| (c) Capital work-in-progress | 22.452.41 | 9,238.89 |
| (d) Investment property | 362.75 | 365.91 |
| (e) Goodwill | 154.51 | 154.51 |
| (f) Other intangible assets | 159.69 | 24.55 |
| (g) Investment accounted for using the equity method, | 520.80 | 546.21 |
| (h) Financial assets | ||
| (i) Investments | 12,007.24 | 12,008.12 |
| (ii) Loans | 7.29 | 6.39 |
| (iii) Other financial assets | 984.66 | 974.19 |
| (i) Deferred tax assets (net) | 1,873.33 | 1,668.45 |
| U) Other non-current assets | 6,797.17 | 5,595.50 |
| 1,26,417.96 | 1, 11,032.54 | |
| Current assets | ||
| (a) Inventories | 33,572.15 | 33,866.46 |
| (b) Financial Assets | ||
| (i) Investments | 48,688.67 | 80,075.13 |
| (ii) Trade receivables | 38,721.38 | 43,604.89 |
| (iii) Cash and bank balances | ||
| Cash & cash equivalents | 29,489.17 | 19,704.67 |
| Other bank balances | 626.87 | • 394.26 |
| (iv) Loans | 4.34 | ·' ',i5.71 |
| (v) Other financial assets | 3·,295.29 | 2,36/j:48 |
| (c) Other current assets | 27;714.36 | 23,824.82 |
| "• · 1,82; 112.23 |
' 2;03,IJ41.42 | |
| Non Current Assets held for sale | 87.19 | |
| TOTAL ASSETS | 3,08,530.19 | 3,14,961.15 |
| 11. EQUITY AND LIABILITIES | ||
|---|---|---|
| Equity | ||
| (a) Equity share capital | 1,408.12 | 1,407.67 |
| (b) Other equity | 2,54,376.54 | 2,60,583.02 |
| 2,55,784.66 | 2,61,990.69 | |
| Liabilities | ||
| Non-current liabilities | ||
| (a) Financial liabilities | ||
| (i) Lease liabilities | 1,928.93 | - |
| (b) Provisions | 2,247.95 | 1,459.90 |
| (c) Deferred tax liabilities (net) | - | 749.57 |
| (d) Other long term liabilities | 469.20 | 469.21 |
| 4,646.08 | 2,678.68 | |
| Current liabilities | ||
| (a) Financial liabilities | ||
| (i) Borrowings | 18,670.83 | 19,966.55 |
| (ii) Trade payables | ||
| Total outstanding dues of micro enterprises and small enterprises |
561 .07 | 258.04 |
| Total outstanding dues of creditors other than micro enterprises and small enterprises |
19,900.76 | 21,882.49 |
| (iii) Lease liabilities | 432.45 | - |
| (iv) Other financial liabilities | 3,477.04 | 3,371 .17 |
| (b) Other current liabilities | 4,350.72 | 3.474.26 |
| (c) Provisions | 706.58 | 1,125.06 |
| (d) Current tax liabilities (net) | - | 214 .21 |
| 48,099.46 | 50,291.78 | |
| TOTAL EQUITY AND LIABILITIES | 3,08,530.19 | 3,14,961.15 |
10 Statement of Consolidated Cash flows :
| f Lakhs | ||||
|---|---|---|---|---|
| Particulars | Six months ended 30th September, 2019 |
Six months ended 30th September, 2018 |
||
| A.Cash Flow from Operating Activities | ||||
| Net Profit/(ioss) before tax from continuing operations | (3,525.11) | (7,089.54) | ||
| Net Profit/(loss) before tax from discontinued operations | - | (359.35) | ||
| Net Profit/(Loss) before tax | (3,525.11) | (7,448.89) | ||
| Adjustments: | ||||
| Depreciation / amortisation (including investment property) |
3,926.58 | 2,998.01 | ||
| Loss/ (profit) on sale/ discard of property, plant and | ||||
| equipment (net) | 31 .03 | 644.26 | ||
| Unrealised exchange difference (net ) | (437.08) | 463.07 | ||
| Rent income | (22.05) | (127.70) | ||
| Share of (profit) / loss from associate | 25.41 | 28.93 | ||
| Finance cost (including interest impact on financial | ||||
| assets / liabilities) | 313.56 | 260.05 | ||
| Provision for doubtful debts, loans ,advances & deposits (net) |
||||
| Employees compensation expenses (ESOP) | 33.90 146.30 |
65.41 63.44 |
||
| Fair value gain on investments (net) | (2,024.23) | (274.63) | ||
| Interest income | (2,143.85) | (2,333.75) | ||
| Excess provision for expenses written back | (29 09) | (6.77) | ||
| Dividend income | 1157.62\ | 1654.831 | ||
| (337.14) | 1,125.49 | |||
| Operating Profit/(loss) Before Working Capital Changes | (3,862.25) | (6,323.40) | ||
| Working capital Adjustments: | ||||
| Trade receivables & other assets | 1,523.06 | (16,313.58) | ||
| Inventories | 294.31 | (1.68520) | ||
| Trade payable & other liabilities | (635.35l | 2 475.72 | ||
| 1182 02 | (15,523.06) | |||
| Cash Generated from / (used in) Operations | (2,680.23) | (21,846.46) | ||
| Direct taxes refund received (payment made) | (211.45) | (753.96) | ||
| Net Cash Flow froml(used in) Operating Activities (A) | 12,891.681 | (22,600.42) |
| B. Cash Flow from Investing Activities | ||
|---|---|---|
| Purchase of property, plant & equipment including | ||
| CapitalWIP | (16,535.48) | (6,803.49) |
| Proceeds from sale of property, plant and equipment | 89.08 | 49.94 |
| Sale I (purchase) of current investment (net) | 17,785.61 | 17,226.89 |
| Inter - Corporate deposits (placed )/Matured | - | (500.00) |
| Rent received (including amount received in advance) | 22.05 | 22.77 |
| (Increase) / decrease in escrow bank accounts | (232.74) | 1,330.22 |
| Interest received | 971 .00 | 426.89 |
| Dividend received | 157.62 | 654.83 |
| Net cash flow from/ (used in) Investing Activities (8) | 2,257.14 | 12,408.05 |
| C. Cash Flow from Financing Activities | ||
| Increase/ (decrease) in working capital borrowings (net) | (1 ,295.73) | 4,923.30 |
| Proceeds from employee stock option plan | 10.35 | 21 .27 |
| Payments of Lease liabilities | (224.49) | - |
| Receipt/ (payment) of long term loan from BIRAC | - | (5.79) |
| Finance cost paid (Incl. interest impact on financial | ||
| assets / liabilities) | (315.86) | (425.54) |
| Dividend paid (inclusive of dividend tax) | (3,381 .19) | (4,246.71) |
| Net cash flow from/( used) in Financing Activities( C) | (5,206.92) | 266.53 |
| Net (Decrease)/ Increase in Cash and Cash Equivalents (A+B+C) |
(5,841 .46) | (9,925.84) |
| Cash and Cash Equivalents at the beginning of the | ||
| period | 19,704.67 | 66,607.28 |
| Add: Current Investments reclassified as cash and cash | ||
| equivalents during the period | 15 625.96 | 24 856.63 |
| 35,330.63 | 91,463.91 | |
| Cash and Cash Equivalents at end of the period | 29,489.17 | 81,538.07 |
11 The consolidated figures for the corresponding quarter ended 3oth September 2018 and for the half year ended 30th September 2018 are approved by the Board of Directors and have not been subjected to Limited review by the auditors . \/ Fo, ''~~ "'.•h•m ~ ca :.,,,~ Umi ,/
Dr. Pral<ash A. Modl( \ Place: Mumbai Chairman & Managing irector Date: 2nd November, 2019 DIN No.: 0000,1286
,, \
N. A. SHAH ASSOCIATES LLP Chartered Accountants
Limited Review Report on quarterly and half yearly unaudited standalone financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)
To The Board of Directors Unichem Laboratories Limited
1 We have reviewed the accompanying statement of unaudited standalone financial results ("the Statement") of Unichem Laboratories Limited ("the Company") for the quarter and half year ended 30th September, 2019, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, which has been initialed by us for identification purpose.
Attention is drawn to the fact that the figures for net cash inflows for the corresponding period from 1st April 2018 to 30th September,2018, as reported in these unaudited standalone financial results have been approved by the Board of Directors of the Company, but have not been subjected to review. Also refer note 12 of the unaudited standalone financial results for the quarter and half year ended 30th September 2019.
Management's responsibility
- The Statement which is the responsibility of the Company's Management and has been approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
Auditor's responsibility
- Our responsibility is to issue a report on this Statement based on our review.
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 Statements are free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion .
Conclusion
- 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 recognition and measurement principles laid down in the applicable Indian Accounting Standards i.e. '.Ind AS' prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms 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.
N. A. Shah Associates LLP is registered with limited liability having LLP identification No. MG-7909 Regd. Off.: B 41-45, Paragon Centre, Pandurang Budhkar Marg, Worli, Mumbai 400 01.3. Tel.: 91-22-40733000 •Fax : 91-22-40733090 •E-mail: [email protected]
Limited Review Report on quarterly and half yearly unaudited standalone financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (continued ... )
5. Emphasis of matter
We draw attention to note 9 of notes to the unaudited standalone financial results for the quarter and half year ended 30th September 2019, which informs that the General Court of the European Union had on 12th December 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to Rs.10,846.82 lakhs) imposed by the European Commission jointly and severally on the Company and its subsidiary (Niche Generics Limited, UK). The Company and its subsidiary based on legal advice and merits, have filed appeals against the decision of General Court before the Court of Justice of the European Union and outcome of the appeals are awaited. Considering the above, in view of the management, no provision for the aforesaid fine is considered necessary. This matter was also reported earlier under 'Emphasis of Matter' paragraph in our report for the quarter ended 30th June 2019 and year ended 31 st March 2019.
Our conclusion is not modified in respect of this matter.
For N. A. Shah Associates LLP
Chartered Accountants F ' registration number: 116560W / W100149
IJ. ~ .- '"!...· ' ~•t.,r, LAI Milan Mody Partner Membership number: 103286 urnN: 191 o 2> 2-~, AAAA KS gs 1y Place: Mumbai Date: -2 NOV 2019
Limited Review Report on quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements} Regulations, 2015 (as amended}
To The Board of Directors Unichem Laboratories Limited
- We have reviewed the accompanying statement of unaudited consolidated financial results of Unichem Laboratories Limited ('the Holding Company'), comprising its subsidiaries (the Holding and its subsidiaries collectively referred to as 'the Group') and its share of the net profit / (loss) after tax and total comprehensive income / loss of its associate for the quarter and half year ended 30th September, 2019 ('the Statement'), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, which has been initialed by us for identification purpose.
Attention is drawn to the fact that in terms of the requirement of the Circular, unaudited consolidated figures for the corresponding quarter and half year ended 30th September, 2018 have been approved by the Holding Company's Board of Directors, but have not been subject to limited review. Also refer note 11 of the unaudited consolidated financial results for the quarter and half year ended 30th September 2019.
Management's responsibility
- The Statement which is the responsibility of the Holding Company's Management and has been approved by the Holding Company'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" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India.
Auditor's responsibility
- Our responsibility is to issue a report on this Statement based on our review . .
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 Statements are free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and, 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.
Chartered Accountants
limited Review Report on unaudited quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (continued ... )
-
- These unaudited consolidated financial results:
- (a) includes results of the following subsidiaries:
- i. Niche Generics Limited, United Kingdom
- ii. Unichem Pharmaceuticals (USA), Inc., USA
- iii. Unichem Laboratories Limited, Ireland
- iv. Unichem SA (Pty) Limited, South Africa
- v. Unichem Farmaceutica Do Brasil Ltda, Brazil
- vi. Younikaimo Pharmaceutical (Shanghai) Pvt. Ltd., China [Unichem (China) Pvt. Ltd.], incorporated on 27th June, 2019.
- (b) includes results of the associate: Synchron Research Services Pvt. Ltd.
Conclusion
- Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 7 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, or that it contains any material misstatement.
Emphasis of matter
- We draw attention to note 7 of notes to the unaudited consolidated financial results for the quarter and half year ended 30th September, 2019, which informs that the General Court of the European Union had on 12th December 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to Rs 10,846.82 lakhs) imposed by the European Commission jointly and severally on the Company and its subsidiary (Niche Generics Limited, UK). The Holding Company and its subsidiary based on legal advice and merits, have filed appeals against the decision of General Court before the Court of Justice of the European Union and outcome of the appeals are awaited. This matter was also reported earlier under 'Emphasis of Matter' paragraph in our report for the quarter ended 30th June 2019 and year ended 3P1 March 2019.
Our conclusion on the Statement is not modified in respect of above matter.
Other Matters
- We did not review the interim financial statements of five subsidiaries, whose financial statements reflect total assets of Rs.47,597.79 lakhs as at 30th September 2019, total revenues (including other income) of Rs.21 ,093.02 lakhs and Rs.41 ,577.98 lakhs, total net profit after tax of Rs.295.50 lakhs and Rs.654.19 lakhs and total comprehensive income of Rs.472.71 lakhs and Rs.773.85 lakhs for the quarter and half year ended 30th September,2019 respectively and cash inflows (net) of Rs.533.47 lakhs for the half year ended 30th September 2019, as considered in the unaudited consolidated financial results. These financial results have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the unaudited consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), in so far as it relates to aforesaid subsidiaries located outside India is based on the report of other auditors.
Limited Review Report on unaudited quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (continued ... )
-
- We also did not review the interim financial information of subsidiary at China whose financial information reflect total assets of Rs.133.89 lakhs as at 30th September 2019, total net loss after tax of Rs.7.25 lakhs and total comprehensive income of Rs.(9.84 lakhs) for the quarter and half year ended 30th September, 2019 respectively and cash inflows (net) of Rs.124.56 lakhs for the half year ended 30th September 2019, as considered in the unaudited consolidated financial results. This financial information is not subject to limited review and have been furnished to us by the Management and our conclusion on the unaudited consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of this subsidiary is solely based on the information provided by the management. According to the information and explanations given to us by the Management, this financial information is not material to the Group.
-
- The unaudited consolidated financial results also include the Group's share of net loss after tax of Rs.2.27 lakhs and Rs.25.41 lakhs for the quarter and half year ended 30th September 2019 respectively, as considered in the unaudited consolidated financial results, in respect of one associate, whose interim financial statements have not been reviewed by us. This financial information is not subject to limited review and have been furnished to us by the Management and our conclusion on the unaudited consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of the associate are solely based on the information provided by the management. According to the information and explanations given to us by the Management, this financial information is not material to the Group.
Our conclusion on the Statement is not modified in respect of above matters.
For N. A. Shah Associates LLP
Chartered Accountants Firm's registration number: 116560W / W100149
/,) l!J. lbJt:L " ~':!-~ - 'L At1 ,. (_ n I'! ( ( ~'L,MEAI , ½~}. Milan Mody ~ '<'l · EJ:<1:.0 AccoU1• - Partner --- Membership number: 103286 UDIN: \C\ I 032-i, AAAA KT I ·:::,--~ 9 Place: Mumbai Date: :- 2 i!OY 2019