Unichem Laboratories Ltd. — Interim / Quarterly Report 2019

Jul 27, 2019

July 27,2019

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, Bandra - Kurla Complex Bandra (East), Mumbai - 400051

Dear Sir,

Ref: BSE Scrip Code -506690: NSE Symbol - UNICHEMLAB .

Sub: Outcome of Board Meeting

We would like to inform you that Board of Directors at its Meeting held today, i.e. Saturday, July 27, 2019 interalia approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2019. Enclosed herewith please find the Unaudited financial Results (Standalone and Consolidated) for the quarter ended June 30, 2019 and the Limited Review of the Auditors thereon.

The Board meeting commenced at 11.45 am and concluded at 1:30 pm

Kindly take the same on your records.

Thanking you, FOR UNICHEM LABOr TORIES LIMITED

Ck.~.~

Neema Thakore Head- Legal & Company Secretary Encl: a/a

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

• N. A. SHAH ASSOCIATES LLP Chartered Accountants

Limited Review Report on quarterly 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 ended 30th June,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).

Management's responsibility for the Statement

1. The Statement is the responsibility of the Company's Management and has been approved by the Board of Directors.

The Statement includes unaudited results for the quarter ended 31st March, 2019 being the derived figures between the audited annual figures in respect of the financial year ended 31st March, 2019 and the published unaudited figures for the nine-months ended 31st December, 2018, which were subjected to a limited review.

Auditor's responsibility

1. 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

1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results, 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 LLPis registered with limited liability having LLPidentification No. MG-7909 B 41-45, Paragon Centre, Pandurarig Budhkar Marg, Wodi. Mumbai 400 013. Tel.: 91-22-40733000. Fax: 91-2240733090. E-mail: info@nashah.com

Limited Review Report on quarterly 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 standalone financial results for the quarter ended 30 th June 2019, which informs that the General Court of the European Union has on 12th December 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to RS.1 0,918.12 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 reported under 'Emphasis of Matter' paragraph in our auditor's report for the standalone and consolidated financial statement for the year ended 3pt March 2019. Our conclusion is not modified in respect of above matter.

17 JUl ²⁰¹⁹

• N. A. SHAH ASSOCIATES LLP Chartered Accountants

Limited Review Report on quarterly 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

1. We have reviewed the accompanying Statement of consolidated unaudited 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 I (loss) after tax and total comprehensive income I loss of its associate for the quarter ended 30th June 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 read with SEBI circular CIR/CFD/CMD1/44/2019 dated 29th March 2019 ('the Circular').

Attention is drawn to the fact that in terms of the requirement of the Circular, consolidated unaudited figures for the corresponding quarter ended 30th June 2018 and quarter ended 31st March 2019 have been approved by the Holding Company's Board of Directors, but have not been subject to limited review. Also refer note 9 of the consolidated financial results for the quarter ended 30th June 2019.

Management's responsibility for the Statement

1. The Statement is the responsibility of the Holding Company's Management and has been approved by the Holding Company's Board of Directors.

The Statement 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

1. 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

• N. A. SHAH ASSOCIATES LLP

Chartered Accountants

Limited Review Report on quarterly 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 ...)

• 1. These 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 Jun, 2019.
• (b) includes results of the associate: Synchron Research Services Pvt. Ltd.

Emphasis of matter

1. We draw attention to note 9 of notes to the consolidated financial results for the quarter ended 30th June 2019, which informs that the General Court of the European Union has on 12thDecember 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to Rs.10,918.12 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 reported under 'Emphasis of Matter' paragraph in auditor's report for the standalone and consolidated financial statement for the year ended 315tMarch 2019. Our conclusion on the Statement is not modified in respect of above matter.

Other Matters

1. We did not review the interim financial statements of five subsidiaries, whose financial statements reflect, total revenues (including other income) of Rs 20,432.20. lakhs and total net profit after tax of Rs 346.66 lakhs and total comprehensive income of Rs.301.14 lakhs for the quarter ended 30th June 2019, as considered in the 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 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. Further, there are no transactions in one subsidiary [Unichem (China) Pvt. Ltd.] incorporated on 27th June,2019.

N. A. SHAH ASSOCIATES LLP

Chartered Accountants

Limited Review Report on quarterly 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 ...)

The consolidated unaudited financial results also include the Group's share of net loss after tax of Rs. 23.14 lakhs for the quarter ended 30th June 2019, as considered in the consolidated unaudited financial results, in respect of one associate, whose interim financial statements have not been reviewed by us. This financial information is unaudited and have been furnished to us by the Management and our conclusion on the consolidated unaudited 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.

Conclusion

1. 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 6 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 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.

For N. A. Shah Associates LLP

Chartered Accountants 'sir registra.tion number: 116560W / W1 00149

IJ

Milan Mody

.o ~Jh ~. sHAH ASSOCIAII2S N. ~~. ~ . * MUM8AI ^~ 0.y * /!/I?, \,>,\0 I2~Q AccoUli1t

Partner Membership number: 103286 UDIN: 19 10~'2-\$?6AA"ADE: 9~ILt Place: Mumbai Date: ² i JUl ²⁰¹⁹

Results for the Quarter ended 30th June, 2019. Statement of Standalone Unaudited					~ Lakhs
Particulars		Quarter ended 30th Jun'19 (Unaudited)	Quarter ended 31st Mar'19 (Unaudited)	Quarter ended 30th Jun'18 (Unaudited)	For the year ended 31st Mar' 19 (Audited)
CONTINUING OPERATIONS
I	Revenue from operations	23,252.14	27,708.14	20,135.44	96,773.89
II	Other income	2,798.35	2,255.82	1,913.59	10,154.23
III	Total income (1+11)	26,050.49	29,963.96	22,049.03	1,06,928.12
IV	EXPENSES
	Cost of materials consumed	10,078.92	10,405.29	11,671.89	44,317.29
	Purchase of stock-in-trade	36.18	10.71	1.91	20.86
	Changes in inventories of finished goods and work-in- progress	(128.76)	1,294.26	(1,490.19)	(3,053.94)
	Employee benefits expense	4,886.44	4,807.09	4,212.65	17,755.75
	Finance costs	4.74	41.15	1.18	61.71 863.42
	Impairment loss on financial assets (refer note 4)	-	460.59 1,772.22	302.83 1,234.94	6,171.25
	Depreciation and amortization expense Other expenses	1,685.60 10,190.77	11,210.89	9,283.64	42,949.80
	Total expenses (IV)	26,753.89	30,002.20	25,218.85	1,09,086.14
V	Profit/(Ioss) before exceptional items and tax (111IV) -	(703.40)	(38.24)	(3,169.82)	(2,158.02)
VI	Exceptional items	-	-	-	-
VII	Profit/(Ioss) before tax (V-VI)	(703.40)	(38.24)	(3,169.82)	(2,158.02)
VIII	Tax expense
	(1) Current tax	-	-	-	-
	(2) Deferred tax (Refer note 6)	(749.82)	(407.52)	(1,104.56)	(2,737.77)
	(3) Short 1 (excess) provision for tax (earlier years) [refer note 5]	-	-	-	(124.45)
IX	Profit/(Ioss) for the period from continuing Operations (VII-VIII)	46.42	369.28	(2,065.26)	704.20
	DISCONTINUED OPERATIONS
X	Discontinued Operations
	A ProfiU(loss) before tax from discontinued operations (refer note 8)	-	974.25	-	246.96
	B. Gain on sale of identified business (net)	-	-	-	-
	Profit/(Loss) for the period from discontinued operations (A+8)	-	974.25	-	246.96
	Tax on discontinued operations	-	349.24	-	71.24
X	Profit/(Ioss) from discontinued operations (after tax)	-	625.01	-	175.72
XI	Profit/(loss) for the period (IX+X)	46.42	994.29	(2,065.26)	879.92
XII	Other Comprehensive Income/(Loss) (i) Items that will not be reclassified subsequently to A profit or loss	0.79	(31.64)	(42.66)	(41.41)
	(ii) Income tax expense 1 (credit) relating to items that	(0.25)	9.87	14.44	12.92
	will not be reclassified to profit or loss (i) Items that will be reclassified to profit or loss B.	-	-	-	-
	(ii) Income tax relating to items that will be reclassified to profit or loss	-	-	-	-
Total of Other Comprehensive Income 1 (Loss)		0.54	(21.77)	(28.22)	(28.49)
XIII	Total Comprehensive Income for the period (XI+XII)	46.96	972.52	(2,093.48)	851.43
XIV	Paid-up equity share capital (Face value of ~ 2/- per share)	1,408.12	1,407.67	1,406.74	1,407.67
XV	Other Equity (Reserves excluding revaluation reserve)				2,71,785.74

Registered Office: Unichem Bhavan, Prabhat Estate, Off S. V. Road, Jogeshwan '()(We, st Mumbai - 400 102 , Maharashtra , Indi a. Tel.: +91 (22) 66888333. Fax.: +91 (22) 26784391 • Website: www.unichemlabs.com • CIN: L99999MH1962PLC012451 Page 1 of 2

XVI	Earnings per equity share (for continuing operation) in ~:
	(1) Basic (2) Diluted	0.07 0.07	0.52 0.52	(2.94) (2.94)	1.00 1.00
XVII	Earnings per equity share (for discontinued operation) in ~ :
	(1) Basic (2) Diluted		0.89 0.89		0.25 0.25
XVIII	Earnings per equity share (for discontinued & continuing operation) in ~:
	(1) Basic	0.07	1.41	(2.94)	1.25
	(2) Diluted	0.07	1.41	(2.94)	1.25

Notes:

• 1 The unaudited standalone financial results for the quarter ended 30th June, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 27th July, 2019. The statutory auditors have carried out a limited review of the standalone financial results for the quarter ended 30th June, 2019.
• 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. During the quarter, the Company has adopted Ind AS 116-Leases effective from 1st April, 2019 and this did not have any material impact on the financial results of the Company. 2
• Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. 3
• Impairment loss on financial assets in standalone financial results include provision for impairment of long-term investments in its subsidiary "Unichem Farmaceutica Do Brazil Ltda" of ~ Nil for the quarter ended 30th June 2019 (~ Nil for the quarter ended 31st March 2019, ~ 302.83 lakhs for the quarter ended 30th June 2018 and ~ 302.83 lakhs for year ended 31st March, 2019). 4
• 5 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.
• 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
• 7 The Company's wholly owned subsidiary at China namely, "Younikaimo Pharmaceutical (Shanghai) Pvt. Ltd." [Unichem (China) Pvt. Ltd.] received a business license for operations on 27th June, 2019. This Subsidiary will cater to the sale in China, of Formulations and Active Pharmaceutical Ingredients manufactured by the Company and will also enable efficient sourcing and supply of materials from China.
• Profit in discontinued operations (Domestic formulation in India and Nepal) for the quarter ended 31st March, 2019 mainly includes reversal of provision for doubtful debts of ~ 521.83 lakhs and other writebacks. 8
• 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 ~ 10,918.12 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 ended 30th June 2019. 9
• 10 The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below:

				~ Lakhs
Particulars	Quarter ended 30th Jun'19	Quarter ended 31st Mar'19	Quarter ended 30th Jun'18	For the year ended 31st Mar' 19
Total R&D expenditure	3,987.10	3,524.99	3,606.17	15,905.26
j ~ ~\ Place: Mumbai Date: 27th July, 2019	@O~ MUMBAI %) , -:I: 400 102. CI) /,,) ~*.~	By Order of ~e For Uniche Dr. pra~EaShA. Chairman & DIN No.· 0012&5	'~~V. BO~ories L~ ~ Y _ naging Director	d

Registered 0 ' iG-e:Wl'liGRe lB~av~n Prabhat Estate, Off S.v. Road, Jogeshwari (West), Mumbai - ⁴⁰⁰ 102, Maharashtra, India. Tel.: +91 (22) 66888333. Fax.: +91 (22) 26784391. Website: www.unichemlabs.com ¹⁰ CIN: L99999MH1962PLC012451 Page 2 of 2

Quarter ended Quarter ended For the year Quarter ended 30th Jun'18 31st Mar'19 ended 31st Mar' 30th Jun'19 Particulars (Unaudited) (Unaudited) 19 (Audited) (Unaudited) (Refer note 9) (Refer note 9) CONTINUING OPERATIONS 1,18,004.68 37,424.26 24,117.03 29,773.52 Revenue from operations I 1,877.35 9,841.29 2,071.38 2,626.23 Other income II 127845.97 25994.38 39495.64 32399.75 Total income 11+11) III EXPENSES IV 13,446.61 47,691.79 11,573.25 10,787.91 Cost of materials consumed 20.86 1.91 10.71 36.18 Purchase of stock-in-trade (3,247.73) (3,117.94) (510.71) (593.70) Changes in inventories of finished goods and work-in-progress 23,932.04 5,625.26 6,465.74 6,711.03 Employee benefits expense 125.54 752.23 283.85 128.04 Finance costs - 560.59 - 460.59 Impairment loss on financial assets 6,736.68 1,385.81 1,850.80 1,825.26 Depreciation and amortization expense 11,614.21 57,396.56 16,835.55 15,099.02 Other expenses 29081.40 133843.02 37215.07 33748.45 Total expenses /IV) (7.70) 28.39 6.52 (23.14) Share of profit/(Ioss) in associate (net of tax) V (5,990.53) 2,272.87 (3,058.63) Profit/(Ioss) before exceptional items and tax (11I-IV+V) (1,371.84) VI - - Exceptional items - - VII /3058.63) (5990.53) /1371.84\ 2272.87 Profit/(loss) before tax (VI-VII) VIII Tax expense IX 91.65 713.83 194.77 713.81 (1) Current tax (1,104.56) (4,02415) (94779) (1,615.06) (2) Deferred tax (Refer note 5) (3) Short 1 (excess) provision for tax (earlier years) - - (124.45) - (Refer note 4) Profit/(Ioss) for the period from continuing Operations (VIII 3,174.12 (2,045.72) (2,555.76) (618.82) X IX) DISCONTINUED OPERATIONS XI Discontinued Operations A. Profit/(Ioss) before tax from discontinued operations (refer - - 974.25 246.96 note 7) - - - B. Gain on sale of identified business (net) - Profit/(Loss) for the period from discontinued operations - - 974.25 246.96 (A+B) - Tax on discontinued operations - 349.24 71.24 Profit/(Ioss) from discontinued operations (after tax) - 625.01 175.72 - XII Profit/lloss) for the period /X+XIl 1618.82) 2045.72) (2380.04) 3799.13 Other Comprehensive Income/(Loss) XIII (i) Items that will not be reclassified subsequently to A. (41.41) 0.79 (31.64) (42.66) profit or loss (ii) Income tax expense 1 (credit) relating to items that will 14.44 (0.25) 9.87 12.92 not be reclassified to profit or loss B. 215.46 (i) Items that will be reclassified to profit or loss (136.65) (104.53) 130.69 (ii) Income tax relating to items that will be reclassified to - - - - profit or loss 1 (t.ossj Total of Other Comprehensive Income (136.11) 126.30\ 102.47 186.97 XIV Total Comprehensive Income for the period (XII+XIII) (754.93) 3,672.83 (1,943.25) (2,193.07) XV Paid-up equity share capital (Face value of ~ 2/- per share) 1,40812 1,407.67 1,406.74 1,407.67 XVI Other Equity (Reserves excluding revaluation reserve) 2,60,583.02	Statement	Results for the Quarter ended of Consolidated Unaudited	30th June, 2019.		" Lakhs

Registered Office: Unichem Bhavan, Prabhat Estate, Off S. V. Road, Jogeshwari-(West), Mumbai - ⁴⁰⁰ 102, Maharashtra, India. Tel.: +91 (22) 66888333. Fax.: +91 (22) 26784391. Website: www.unichernlabs.corn e ClN: L99999MH1962PLC012451 Page 10f2

XVII	Earnings per equity share (for continuing operation) in ~:
	(1) Basic (2) Diluted	(088) (0.88)	4.51 4.51	(291 ) (2.91 )	(3.63) (363)
XVIII	Earnings per equity share (for discontinued operation) in ~ :
	(1) Basic (2) Diluted Earnings per equity share (for discontinued & continuing	- -	0.89 0.89	- -	0.25 0.25
XIX	operation) in ~:
	(1) Basic (2) Diluted	(088) (0.88'	540 540	(291 ) (291 \	(338) (338'

Notes:

• 1 The unaudited consolidated financial results for the quarter ended 30th June, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 27th July, 2019. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 30th June, 2019.
• 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. During the quarter, the Company has adopted Ind AS 116-Leases effective from 1st April, 2019 and this did not have any material impact on the financial results of the Company. 2
• Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. 3
• Short / excess provision for income tax (net) of earlier years is on account of final tax liability as per returns filed and assessments completed. 4
• 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. 5
• The Company's wholly owned subsidiary at China namely, "Younikaimo Pharmaceutical (Shanghai) Pvt. Ltd." [Unichem (China) Pvt. l.td.] received a business license for operations on 27th June, 2019. This Subsidiary will cater to the sale in China, of Formulations and Active Pharmaceutical Ingredients manufactured by the Company and will also enable efficient sourcing and supply of materials from China. 6
• 7 Profit in discontinued operations for the quarter ended 31 st March, 2019 mainly includes reversal of provision for doubtful debts of ~ 521.83 lakhs and other writebacks.
• 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 ~ 10,918.12 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 ended 30th June 2019. 8
• The consolidated unaudited figures for the quarter ended 31 st March 2019 are balancing figures between the audited figures in respect of the full financial year upto 31 st March, 2019 and the unaudited year to date figures upto 31 st December, 2018. The consolidated figures for the corresponding quarter ended 30th June 2018 and for the quarter ended 31st March, 2019 are approved by the Board of Directors and have not been subjected to Limited review by the auditors. 9
• The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: 10

					~ Lakhs
	Particulars	Quarter ended 30th Jun'19	Quarter ended 31st Mar'19	Quarter ended 30th Jun'18	For the year ended 31 st Mar' 19
	Total R&D expenditure	3,987.10	3,524.99	3,606.17	15,905.26
Place: Mumbai		- @. e V MUMBAI 400 \~~	'OO~~ "O~ ~) to 102. /~	By Order of the \o~ For Unichem L ~oratories l-:Ir~ 0. pra ChairmanJ.~~~\9ing	Limited Director
Date: 27th July, 2019		~ ~I)	*;~	DIN No/.O00012 5

Registered Offic : Unichem !Ul!c/vJ.1 , Prabhat Est",te, Off S. V. Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India. Tel.: +91 (22) 66888333. Fax.: +91 22 1. Website: www.unichemlabs.com • CIN: L99999MH1962PLC012451 Page 2 of 2